Sanford Solny, a real estate investor previously convicted of stealing properties in New York City, was jailed this week. The action followed a probation hearing where he was found to have violated the terms of his sentence. This development marks a significant turn in a long-running legal battle involving dozens of homes.
Key Takeaways
- Sanford Solny, a real estate investor, was jailed for violating probation.
- He had previously pleaded guilty to possession of stolen property in 2018.
- The probation violation stemmed from stealing another home in Brooklyn in 2019.
- Solny was recently convicted of stealing 11 homes in a separate trial.
- His sentencing for the 11-home conviction is expected later this month in Brooklyn.
Investor Accused of Extensive Deed Theft
Prosecutors have accused Sanford Solny of building a significant real estate operation through a scheme known as deed theft. This practice involved targeting homeowners who were experiencing financial difficulties, often those behind on their mortgage payments. The scheme operated for over a decade, impacting numerous properties across New York City.
Mr. Solny presented himself to these homeowners as a legal professional. He offered to negotiate with banks to arrange a short sale, a process where a home is sold for less than the amount owed on its mortgage. This offer often appeared to be a beneficial solution for homeowners facing foreclosure, promising a small payment and the elimination of their debt.
Fact: Deed Theft
Deed theft occurs when someone fraudulently transfers the title of a property without the owner's knowledge or consent. This can leave the original homeowner without their property but still responsible for the mortgage.
The Deceptive Practice Uncovered
The reality of Mr. Solny's operation differed significantly from his promises. Homeowners, believing they were signing documents for debt relief, unknowingly transferred the titles of their properties to him. Crucially, the original mortgages often remained in the homeowners' names. This meant the former owners were still legally responsible for the loans, even though they no longer owned the homes.
Following the fraudulent transfer, Mr. Solny would then install renters in these properties. He collected rent payments, effectively profiting from homes still legally encumbered by the original owners' debts. This deceptive practice formed the core of his alleged real estate empire.
Initial Conviction and Probation
In 2018, Sanford Solny entered a guilty plea in the State Supreme Court in Queens. He pleaded guilty to the charge of possession of stolen property. A year later, in 2019, he received a sentence of five years of probation. This sentence came with specific conditions he was required to follow.
However, Mr. Solny violated his probation terms less than three months after his sentence began. He committed another act of deed theft, acquiring a property in Brooklyn through illicit means. This subsequent theft became a central point in later legal proceedings.
"Mr. Solny built a real estate empire through deed theft, prosecutors said. He targeted homeowners who had fallen behind on their payments, presenting himself as a lawyer who could negotiate with banks to arrange a short sale."
Further Legal Proceedings and Recent Conviction
The Brooklyn deed theft, which initiated a New York Times investigation, became the focus of a State Supreme Court trial in Brooklyn. This trial concluded in the summer of the current year. During these proceedings, Mr. Solny was convicted of stealing 11 additional homes.
Despite this conviction, Mr. Solny was allowed to remain free as he awaited his sentencing. This sentencing was scheduled to take place in Brooklyn later in October. The decision to allow him to remain free pending sentencing was a standard legal procedure.
Background on Short Sales
A short sale is an agreement between a mortgage lender and a homeowner to sell the property for less than the amount owed. It is typically pursued by homeowners facing financial hardship to avoid foreclosure. The process involves extensive negotiation and approval from the lender.
Unexpected Custody During Probation Hearing
The situation changed unexpectedly this week. On Tuesday, during a probation hearing in a Queens courtroom, Mr. Solny was taken into custody. This development was not anticipated, according to his defense team. James Kousouros, one of Mr. Solny’s criminal defense lawyers, stated that his client was "sandbagged."
Mr. Kousouros also noted that the 68-year-old Mr. Solny suffers from high blood pressure and had not brought his medication to the hearing. The unexpected nature of the custody order meant he was unprepared for detention. This immediate jailing resulted from the probation violation, separate from the impending sentencing for the 11-home conviction.
The jailing underscores the legal system's response to repeated offenses, particularly concerning probation terms. The ongoing legal process highlights efforts to address fraudulent real estate practices that affect vulnerable homeowners across New York City.
