A real estate fraudster is accused of managing to own two Harlem brownstones now worth $4.7 million, which forced the elderly real owner to live in a homeless shelter.
Long Island man Joseph Makhani, 60, of Kings Point, has been charged and arraigned for stealing two brownstones located on West 118th Street and West 131st Street.
Makhani allegedly robbed the two homes in 2012 as part of a scheme involving the use of forged and falsified documents with shell companies to cover up and carry out the thefts.
New York Attorney General Letitia James said Makhani claims he only paid $10 for each property, according to New York state tax returns.
In reality, the homes had an estimated combined value of over $4.7 million.
Joseph Makhani, 60, was charged with stealing two Harlem brownstones by deed theft and mortgage fraud
At the $1.9 million West 118th Street home, Makhani forged deeds and used other fraudulent documents, and shell companies to steal the brownstone from an elderly and vulnerable owner.
At Makhani’s second illegal property on West 131st Street, also obtained through forged documents, shell companies and other fraudulent tactics, the house was previously in the name of an elderly owner who died in 1975.
But Makhani’s actions went further than simply owning the buildings and led to a vulnerable and elderly landlord, Veronica Palmer, 81, being forced to live in a homeless shelter.
Palmer, a former city corrections officer, is the true owner of one of the properties, now valued at around $2.9 million, but authorities and her family members could not reach her. .
Palmer’s younger brother, John Jackson, 78, told the New York Post that he believed his sister had suffered from mental illness for decades, but knew she would never have sold the brownstone.
“We are concerned about Ronnie and his research,” Jackson said.
Jackson explained how Palmer repeatedly avoided help from family and mental health professionals and at one point lived without heat, water and electricity, ending up in a homeless shelter in Brooklyn.
Makhani claimed to have only paid $10 for each house, which are now valued at $2.29 million and $1.9 million.
Joseph Makhani is arraigned in Manhattan Supreme Court on a 7-count indictment by State Attorney General Letitia James
Joseph Makhani is charged with mortgage fraud for stealing the home of 81-year-old Harlem resident Veronica Palmer by offering her $10 for the property she never received
State Attorney General Letitia James is pictured in Manhattan Supreme Court on Monday
In the other building that Makhani claimed to have owned, he attempted to evict the tenants, causing them stress and confusion.
Makhani was arraigned in New York County Supreme Court on Monday where he pleaded not guilty to two counts of first-degree criminal possession of stolen property and one count of first-degree fraud.
He faces a maximum sentence of 8 to 25 years in state prison.
“Badne deed thieves like Joseph Makhani target vulnerable property owners and steal their most precious and personal possession,” Attorney General James said.
“This crime harms entire communities, especially those facing population displacement and gentrification. The fear and confusion that is unleashed on New Yorkers when they learn that their homes have been robbed from under them is something no one should have to endure. I will continue my efforts to fight deed theft and hold people like Joseph Makhani accountable.
Makhani’s actions saw one of the real owners of the buildings forced to live in a homeless shelter while Makhani collected rent of $12,000 a month from tenants.
“Badne deed thieves like Joseph Makhani target vulnerable property owners and steal their most precious and personal possession,” Attorney General James said.
At the West 118th Street home, Makhani forged deeds and used other fraudulent documents, and shell companies to steal the brownstone from an elderly and vulnerable owner.
In a New York state tax return, a company controlled by Makhani claimed to have paid only $10 for the dilapidated brownstone while the real owner picked up the cans from the street.
A mortgage application then filed by Makhani falsely claimed that he had paid $975,000 for the brownstone, subsequently obtaining a construction loan of $650,000 for the renovations.
Makhani then refinanced and received a $1.2 million long-term mortgage on the property he used to renovate and convert into apartments.
Makhani then asked the New York City Department of Housing Preservation and Development (HPD) to convert the building into market-priced rental apartments.
Between 2016 and 2023, Makhani rented each unit for between $3,000 and $3,400 per month, earning him monthly rental income of over $12,000.
Meanwhile, the true owner of the brownstone, now worth an estimated $2.9 million, lives in a homeless shelter in Brooklyn having never received money from rentals.
At Makhani’s second illegal property on West 131st Street, also obtained through forged documents, shell companies and other fraudulent tactics, the house was previously in the name of an elderly owner who died in 1975.
In 2012, Makhani approached one of the building’s tenants and told him that he had bought the brown stone.
Makhani obtained the tenant’s signature by pretending to offer him a job before filing a new deed with a fake signature, impersonating the tenant as the landlord.
As with the previous property, Makhani transferred the brownstone to a company he controlled before evicting the tenants.
When Makhani’s ownership of the brownstone was questioned by those he was evicting, he filed a new fraudulent deed claiming that the heirs of the last recorded owner had transferred ownership to his company.
HPD sued Makhani in 2013, and in 2015 won a judgment of over $1 million for his failure to properly maintain the brownstone, estimated at $1.8 million.
Rather than pay, Makhani gave up the property seized by the City of New York.
