David Saks: Affordable Housing Developer Indicted for Alleged Fraud

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Affordable Housing Developer Indicted for Alleged Fraud

Here's another press release from the Department of Justice, the United States Attorney's Office and the Federal Bureau of Investigation. The press releases are provided for the ActiveRain community to better inform you of the many problems facing the real estate today.

Affordable Housing Developer Indicted for Alleged Fraud, Diverting Public Funds from Trenton Projects

U.S. Attorney’s Office July 18, 2013
  • District of New Jersey (973) 645-2888
 

TRENTON, NJ—A federal grand jury in New Jersey has indicted the developer of three Trenton affordable housing projects for allegedly diverted money intended for the developments, announced New Jersey U.S. Attorney Paul J. Fishman.

A federal grand jury returned a 25-count indictment today charging Robert Kahan, 67, of Sunny Isles Beach, Florida, with 10 counts of making false statement in a loan application, three counts of bank fraud, three counts of mail fraud, two counts of fraud against a local government receiving federal benefits, and seven counts of transacting in criminal proceeds. Kahan will be required to appear in federal court to face the charges on a date to be determined.

“As alleged in the indictment, Kahan took money intended for projects designed to help those in need of affordable housing and used it for his own ends,” said U.S. Attorney Fishman. “It isn’t just defrauded financial institutions and programs that lose: it’s the people of our cities who are the most vulnerable. They can’t afford it, and we won’t stand for it.”

“Mr. Kahan allegedly took advantage of the system and the good faith of banks, credit lenders, and the local and federal government by diverting funds procured for the development of affordable housing,” said FBI Special Agent in Charge Aaron T. Ford. “The Newark Office of the FBI remains committed to bringing to justice those individuals that insist on misusing funds through fraud and deception. Today’s plea is the result of the hard work of the men and women of the FBI and our federal partners at the Internal Revenue Service and U.S. Department of Housing and Urban Development, Office of Inspector General. Together with our federal partners, we will continue combating fraud at all levels of society.”

According to the indictment:

Kahan was a developer of three affordable housing projects in Trenton between 2006 and 2010—the Canal Plaza Homeownership Project, the Southwest Village II Project, and the Catherine S. Graham Project—for which he obtained both private and public funding.

When seeking loans for projects, including the three Trenton projects, Kahan caused personal financial statements to be submitted to banks on behalf of himself and his spouse that falsely overstated the value of his assets.

Kahan also falsely represented in payment applications, when requesting advances of loan and subsidy money in connection with the three Trenton projects, that all money he was previously paid had been used to pay costs for labor, materials, and other obligations for a particular project. Kahan allegedly caused substantial portions of the money to be diverted for his own personal use, his other development projects, and other uses that were not authorized.

The false statement in a loan application, bank fraud, and mail fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The charges of fraud against a local government receiving federal benefits and transacting in criminal proceeds each carry a maximum potential penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford; IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Cary Rubenstein, Special Agent in Charge, Northeast Region, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Eric Moran in Trenton and Senior Litigation Counsel J. Fortier Imbert in Newark, both of the U.S. Attorney’s Office Special Prosecutions Division.

The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.

source: FBI



David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • July 19 2013 03:09PM

Comments

This blog does not allow anonymous comments