UES Developer Indicted For Mortgage Fraud Scheme, DA Says

UPPER EAST SIDE, NY — An Upper East Side real estate developer is facing charges for running a mortgage fraud scheme to finance her lavish lifestyle, Manhattan District Attorney Cyrus Vance announced this week.

Penny Bradley, 54, was arrested and indicted on charges of residential mortgage fraud, grand larceny, forgery and criminal possession of a forged instrument, proseuctors said. Bradley ran a scheme where she stole funds from her development company in relation to the redevelopment of a townhouse on East 82nd Street, prosecutors said.

The developer founded a company called 46 East 82nd Street LLC to redevelop and sell a townhouse at that location. Bradley served as the sole member of an entity called Norfolk Street Management LLC, which was the managing member of 46 East 82nd Street LLC. The position meant Bradley was solely responsible for safeguarding the company's money including investments and bank loans, prosectors said.

Bradley is accused of stealing $500,000 from 46 East 82nd Street LLC between 2014 and 2016 to pay off unrelated business debt and for personal expenses such as her rent payments, vacations and her auto loan for a new Range Rover, prosecutors said. During this time, Bradley lied to banks and presented forged documents to secure more than $12 million in loans against the East 82nd Street property. The developer is accused of forging at least two signatures of other members of 46 East 82nd Street LLC to acquire the loans.

"Penny Bradley cashed in on her insider position and stole company funds to support her lavish lifestyle," Vance said in a statement. "My Office is dedicated to protecting the integrity of our City’s residential mortgage market and holding those who attempt to undermine it criminally responsible."