Businessman Pilfers $2.5M From Vulnerable Brooklynites, Feds Say

BROOKLYN, NY — The president of a debt relief services business pleaded guilty on Thursday to defrauding investment clients out of millions of dollars through a wire fraud conspiracy, according to federal authorities.

Marat Lerner, a 41-year-old from Brooklyn, admitted to defrauding clients and stealing money meant for mortgage payments, pleading guilty to one count of wire fraud conspiracy and one count of committing wire fraud.

Through this scheme, Lerner stole over $2.5 million from his clients—money that they had intended to use to pay their mortgages.

Once Lerner gained access to the victims’ bank accounts, he would transmit funds from their accounts to companies and/or bank accounts that he controlled, U.S. Attorney Breon Peace said.

"Marat Lerner turned the victims’ American dreams into a nightmare by promising mortgage and debt relief and instead preyed on their hard-earned life savings for his own personal gain,” Peace said.

As part of his guilty plea, Lerner has agreed to pay approximately $2,554,217.11 in restitution to the victims, prosecutors said.

Between August 2016 and January 2021, Lerner was the owner of the "Lerner Group," a corporation that claimed to provide debt relief services, including mortgage modifications, mostly to Brooklyn's Eastern European immigrant community.

On Thursday, Peace said that many of the victims that Lerner defrauded were already experiencing financial hardship and had specifically sought Lerner’s assistance to help reduce their monthly mortgage payments.

Lerner pledged to assist homeowners in reducing their monthly mortgage payments through negotiations with their mortgage lenders, promising mortgage loan modifications or federal homeowner aid.

To carry out his scheme, Lerner instructed victims to grant him access to their bank accounts so he could make direct payments to the mortgage banks on their behalf. He claimed these payments would either be held by an escrow agent until their mortgages were modified or sent to entities affiliated with their mortgage lenders.

Lerner also directed victims not to contact their mortgage lenders directly, insisting he would act as the intermediary between them, Peace said.

In reality, Lerner stole that money, spending it on personal and business expenses, including a BMW, luxury goods and expensive meals.

To cover up his fraud, Lerner advised the victims to ignore any notifications from their mortgage lenders about late payments or outstanding balances.

"Marat Lerner operated as an underground broker in his local community, but instead of completing his end of the bargain by paying their mortgages, he pocketed the money of his unsuspecting victims to live a life of luxury. This wasn’t just a money scam; this fraud affected his own community’s homes and families," Tom Fattorusso, an agent with the IRS, said.

In January 2023, Lerner faced charges after being indicted by a federal grand jury in the Eastern District of New York for the aforementioned fraud. He was arrested but later released on bail with strict instructions, including refraining from further criminal activity.

Despite these conditions, Lerner persisted in his illicit activities, continuing to defraud his victims even after his initial arrest. Between January and May 2023, he managed to steal at least $10,000 from his victims, Peace said.

Due to Lerner's prolonged fraudulent activities, mortgage lenders have commenced foreclosure proceedings against several of the victims.

A spokesperson with the U.S. Attorney's Office said on Thursday that when sentenced, Lerner faces a maximum sentence of 50 years behind bars.