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January 31, 2006

One Womanizer, Four Sales and a Fire

fire
We missed this story when it broke last week--and suspect most people did as it only seems to have received limited attention in the Daily News--but were pleased to be emailed a set of exclusive photos this weekend. It appears that the brownstone at 600 St. Marks Avenue in Crown Heights was torched on January 7th by arsonists, the last step in an elaborate mortgage financing scam that saw the value of the property artificially pumped up over a series of transactions between colluding parties. According to the Daily News, Delbert Baptiste was already indicted last August for inflating the price of the property but the real mastermind is a Mercedes-driving womanizer named Owen Larman who is currently a fugitive in connection with similar scams involving 20 properties and over $12 million. Here's how the Daily News laid out the course of events:

March 24, 2000 — Owen Larman buys 510 Lafayette St. in his own name for $30,000 from Lorenzo Distant, a legitimate owner. April 6, 2000 — Larman sells building to straw buyer Andrea Clark in a paper sale for $245,000. No money changes hands but Larman gets mortgage of $220,500, which he allegedly steals. Profit after costs and expenses is about $170,000.

May 29, 2001 — Straw buyer Clark sells building back to Larman for $363,000 in another paper sale. No money changes hands but Larman allegedly steals a new mortgage of $304,200. Profit after costs and expenses is about $250,000.

August 12, 2003 — Larman files a fake satisfaction of the $304,200 mortgage with the city of New York, so it looks like mortgage is paid off and he owns the property free and clear.

September 5, 2003 — Using a fake appraisal, Larman executes a paper sale of the building to another straw buyer, Sabrina Robinson, for $435,000. No money changes hands. Larman takes out a $391,500 mortgage in Robinson’s name, which he again allegedly steals. Profit after costs and expenses is $323,790.

Larman walks away from the building. Sabrina Robinson is stuck with the mortgage payments.

Total profit for Larman on 510 Lafayette St.: $743,790

Photo Credit: M. Fager GMAP P*Shark
Masters of the Unreal Deal [NY Daily News]
Gentrification Brings Arsonists [NY Daily News]
Playing with Fire [Daily Heights]




Posted by Brownstoner at 8:55 AM | Comments (14)

Comments

Nice work if you can get it!

Posted by: Anonymous at January 31, 2006 9:39 AM

Now had the guy simply held onto the property at 510 lafayette he probably would have made almost as much and done it legally.

He bought the place for $30k, that's the real scam.

Posted by: Anonymous at January 31, 2006 10:09 AM

I'm not getting why he had to burn the place. . . he just attracted attention to the scam that wouldn't have been there otherwise.
And am I missing somehting or is the biggest problem here with the idiot banks that OK'd the mortgages to fake people?

Posted by: tripster at January 31, 2006 10:32 AM

I wish someone would report on the buildings that have been torched by Josh Guttman in DUMBO, all in the name of 'development'....

Posted by: Gidget at January 31, 2006 10:34 AM

Here, here Gidget. I've been wondering why Guttman and all of his shenanigans don't get more (or any, really) coverage here. Given everyone on Brownstoner's love for juicy Brooklyn real estate gossip, seems like there could be a Guttman story everyday.

Posted by: been here for 8 at January 31, 2006 10:55 AM

test

Posted by: Anonymous at January 31, 2006 11:53 AM

Calling Guttman an arsonist is about the nicest thing you can say about him.

Posted by: Anonymous at January 31, 2006 12:47 PM

There was a big fire this weekend over by the Brooklyn Jewish Hospital -- any idea what it was?

Posted by: babs at January 31, 2006 1:34 PM

Who is Guttman?

Posted by: Anonymous at January 31, 2006 2:07 PM

re:Guttman

http://www.villagevoice.com/news/0411,schuerman,51863,5.html

Posted by: Anonymous at January 31, 2006 4:38 PM

The voice article is surely just the tip of the iceberg. What about the 50 Bridge renovation? And its duplexes (not shacks) built on top of the roof without permits. Or the weird catwalk astroturf "terraces" built out the back of the 3rd floor. Talk about ugly unaffordable shoddy work!

Posted by: just anon at January 31, 2006 4:52 PM

Back to the fire- does anyone have any idea what happens to these buildings after the fire? The owner is now someone who can not be found and if found is in serious legal troubles. How long does it take the bank to foreclose and auction?

Posted by: ameraleed at January 31, 2006 5:29 PM

Sorry, don't know anything about that fire, Ameraleed. I do know that Guttman is quite ready and able, I mean corrupt, to weasle his way out of anything. He owns quite a few buildings in DUMBO, and one by one, they are all being renovated into ugly condos. Next week there is a hearing RE: one of his buildings being re-zoned from commercial to residential, and a few of my friends are going to protest its going forward. However, I'm certain he'll do what he wants with it...he always does. There's one building here in DUMBO which he is renovating into 'office condos', complete with bathrooms, kitchens, etc. Sounds like a great office to me!

Posted by: Gidget at January 31, 2006 11:06 PM

Delbert Baptiste financed Grenada's opposition party the National Democratic Congress [NDC] in 2003 elections, this leaves one to wonder if they would return the money to the many persons defrauded by Delbert Baptiste. I heard the NDC is coming to New York soon, I think I will come over the New York and ask them about Delbert Baptiste financing them.

The NDC http://www.youtube.com/watch?v=rb2erAfkyp8

Posted by: guest at September 21, 2007 12:02 AM

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