East Meadow Real Estate President Pleads Guilty in Foreclosure Scam

The former president of an East Meadow real estate company pleaded guilty in federal court in Manhattan on Friday in a foreclosure scam that bilked $1.5 million from investors, officials said.

Elviston Ramasir, 27, of Manorville, the former president of Home Free Realty Inc., he was investing their money in foreclosed properties, according to the U.S. Attorney’s Office. He guaranteed investors a 40 percent profit on their money in as little as 90 days, said federal prosecutors, who added that Ramasir did not actually own any of the properties.

Using phony documents, including a forged check and fake deeds, to make it seem legitimate, Ramasir lulled his victims into believing that their funds were being invested in real estate, prosecutors said.

During an 18-month period from June 2008 through December 2009, Ramasir was given more than $2 million to invest on behalf of five clients, federal prosecutors said. Some of the money was handed over to investors as purported returns on their investment, but most of the funds were used for Ramasir’s personal benefit. He transferred $600,000 of the stolen money to an E*Trade account and used $200,000 to pay off credit card debt, more than $40,000 to cover student loans, almost $30,000 to finance a Mercedes-Benz, and the rest for air travel and stays in luxury hotels in Paris, Las Vegas and Atlantic City, according to the U.S. Attorney’s Office.

Ramasir tricked investors by telling them that he took ownership of 38 properties in Brooklyn and Queens for their benefit. However, all but one of the properties either did not exist or were owned by others who had no affiliation with Ramasir.

“Schemes that prey on the investing public are particularly deplorable in difficult economic times,” said U.S. Attorney Preet Bharara, who blasted Ramasir for “living large on $1.5 million stolen from others.” Bharara added that his office “will continue to pursue and prosecute those who would cheat others out of their hard-earned savings.”

Joseph Demarest Jr., the FBI’s assistant director-in-charge, said, “Any investment opportunity entails an element of risk. But the risks should pertain to market factors, not dishonest financial fraudsters.”

In addition, while out on bail Ramasir and his father Ezekiel, 57, of Manorville, were arrested late last year and charged with swindling a family out of more than $3,100 by taking rent money for a Long Beach home that did not belong to them, authorities said.

In that case, they were each charged with third-degree grand larceny and first-degree scheme to defraud. Additionally, Elviston was charged with third-degree grand larceny and second-degree forgery for allegedly presenting fraudulent checks of more than $33,000 to his landlord for office space he rented in East Meadow, detectives said.          

In the federal case, Elviston Ramasir reportedly faces fines and a maximum 70-year prison term on three counts of wire fraud, plus violation of bail terms. According to his plea agreement, he reportedly will forfeit a maximum of $1.52 million, as well as reimburse his five victims.

His attorney, Lawrence Schoenbach, could not be reached for comment.