Real Estate Developer Admits $13M, Yearslong Investment Fraud

TUXEDO PARK, NY — A Hudson Valley real estate developer has admitted to his role in scamming investors out of millions of dollars with fake projects.

Jay Clayton, the U.S. Attorney for the Southern District of New York, and Edward Gallashaw, the Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service, announced on Friday the filing of an Information charging 75-year-old Barry Breeman, of Tuxedo Park, with defrauding investors who thought they were investing in real estate developments.

He pleaded guilty on Friday, with his charge of securities fraud carrying up to 20 years in prison.

"As he admitted today in federal court, Barry Breeman stole more than $13 million dollars from dozens of investors," Clayton said. "He falsely represented to investors that they were investing in valuable real estate projects, but in reality, Breeman had no connection to these investments and pocketed their money. Breeman's conduct has led to his conviction, and he now faces serious time in federal prison for his fraud scheme."

According to court documents, from 2018 to 2024, Breeman solicited investments in different real estate projects through false and misleading statements, and then misappropriated investor funding for his personal use.

Breeman worked as a real estate developer for years, specializing in Latin American projects. However, the DOJ says, in 2018, after suffering a professional setback, he began to solicit investments in fake real estate projects to make up for the loss of income in his legitimate business.

Prosecutors say that Breeman encouraged prospective investors to buy limited partnership interests in certain Latin American real estate deals by sending them promotional photographs, prospectuses, and business projections, and by promising quarterly distributions. The DOJ says, however, that he fabricated the investment opportunities, and often had no connection to the projects he promoted, and no authority to sell partnership interests in them.

When investors did send Breeman money, he applied their funds to personal expenses, among other things, the feds discovered,

Breeman fraudulently obtained more than $13 million from an estimated 30 investors during the course of his scheme.

"Investors placed their trust in Breeman, who devised a scheme to mislead and defraud investors out of more than $13 million," Gallashaw said. "His arrest demonstrates that the U.S. Postal Inspection Service is dedicated to investigating fraud and bringing to justice those who break the rule of law."

Clayton praised the work of the USPIS.