Kings Point Man Indicted In Harlem Brownstones Fraud Scheme

GREAT NECK, NY — A Kings Point man has been indicted on charges he stole two Harlem brownstones, one of which belonged to an elderly disabled woman.

Joseph Makhani, 58, is accused of swiping the two properties — located at 107 West 118th St. and 135 West 131st St. — by using forged and falsified documents, numerous limited liability corporations under his control, and multiple property transfers. He still owns the first building, while the second was repossessed in 2018 due to unpaid tax liens, New York Attorney Gen. Letitia James said.

The alleged scheme began in 2012, when Makhani swiped the 118th Street building from its elderly disabled owner — then filed taxes claiming he had paid just $10 for it, according to an indictment. He separately claimed he had paid $975,000 in order to get a $650,000 construction line of credit, and got a $1.2 million mortgage loan by falsely claiming he owned the building legitimately, prosecutors said.

Makhani later renovated the building to create separate rental apartments, from which he drew about $12,000 in monthly income, authorities said. The brownstone is now worth about $2.29 million, but the elderly owner has never gotten a cent, according to prosecutors.

The brownstone at 135 West 131st St. was acquired through a mix of "fraudulent deeds, shell companies, and strawmen," James said.

After the rightful owner died in 2010, Makhani approached the brownstone's tenant and got their signature by falsely claiming he was offering them a job, James added. He then used the signature to claim the tenant was the brownstone's owner, and later filed a forged deed to transfer the brownstone to his shell company, prosecutors said.

Makhani continued to file forged documents even after the tenant went to court to dispute the deed, according to prosecutors. In 2015, Makhani and his company were fined more than $1 million for the building's dilapidated state, including roach infestations and a missing roof, prompting him to eventually abandon the building.

The brownstone was eventually transferred to a nonprofit and is now worth $1.9 million.

"Homeownership is a critical part of every community, but far too often, individuals like Joseph Makhani conduct elaborate schemes designed to steal New Yorkers' homes," James said. "Deed theft continues to be a crime that permeates our neighborhoods, and preys upon our most vulnerable, leading to a cycle of displacement and grief. New Yorkers should never have to fear that their homes will be targeted by predatory individuals."

This isn't the first time Makhani has been accused of unlawfully obtaining properties in New York. In 1998, the Kings Point man pleaded guilty in federal court to taking part in a scheme involving the bid-rigging of foreclosed properties in Queens and for submission of a false tax return, prosecutors said. He was fined and sentenced to two months in prison.

In 2008, three companies allegedly owned by Makhani pleaded guilty to falsifying business records. Citing the criminal complaint, prosecutors said Makhani personally, or through one of his corporations, forged signatures on deeds filed with the New York City Department of Finance to unlawfully gain control of three properties in Queens from their legal owners.

Makhani currently faces a raft of charges in the Harlem brownstones scheme. He has been charged with:

• One count of criminal possession of stolen property in the first degree
• One count of criminal possession of stolen property in the second degree
• One count of residential mortgage fraud in the first degree
• One count of residential mortgage fraud in the second degree
• Two counts of falsifying business records submitted to a New York bank
• One count of scheme to defraud in the first degree

Patch's Nick Garber contributed to this report.