New York, NY – October 17, 2013 – (RealEstateRama) — Manhattan District Attorney Cyrus R. Vance, Jr., today announced the indictment of ALICE BELMONTE, 47, who resigned from the New York Bar in February 2013, for defrauding investors and stealing millions of dollars through a wide-ranging real estate investment scheme. The defendant has been indicted in New York State Supreme Court on charges of Grand Larceny in the First, Second and Third Degrees, Criminal Possession of a Forged Instrument in the Second Degree, Identity Theft in the Second Degree, Scheme to Defraud in the First Degree, and Issuing a Bad Check.1
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“This lawyer mortgaged her future,” said District Attorney Vance. “Attorneys have a responsibility to be trustworthy and honest with their clients, and stealing from them for personal enrichment is an embarrassment to our profession. If you are a victim of a financial crime by an attorney or legal services provider, please call my Office’s Special Prosecutions Bureau at (212) 335-8900.”
According to the charges and statements made in court, between August 2011 and January 2013, BELMONTE’s fraudulent real estate investment scheme caused approximately $4 million in losses from more than ten victims. BELMONTE convinced the victims to invest in Real Estate Owned (“REO”) listings, more commonly referred to as foreclosures, with the promise of fast and large returns on their investments. The victims were assured that their money would remain in BELMONTE’s escrow account. However, BELMONTE did not enter into real estate transactions with the victims’ money, but instead used it to reimburse prior investors in her Ponzi scheme, or for her own purposes.
According to the indictment, the defendant also forged documents, including an amendment to a malpractice insurance policy that would have protected victims from intentional attorney misconduct. BELMONTE also created fraudulent documents to indicate that she bought and sold property, forging the necessary signatures; created fraudulent bank records of completed wire transfers; and forged numerous documents assuring the victims that their payments were forthcoming. BELMONTE also issued a series of bad checks to victims who demanded the return of their investments, bouncing more than $6 million in checks over the indicted period.
Assistant District Attorney Amy Justiniano of the Special Prosecutions Bureau is handling the prosecution of the case under the supervision of Judy Salwen, Deputy Chief of the Special Prosecutions Bureau, and Thomas Wornom, Chief of the Special Prosecutions Bureau. Rackets Investigator Behzad Ahdout and Financial Investigator Elaine Li assisted with the investigation.
Defendant Information:
ALICE BELMONTE, D.O.B. 6/26/1966
Wading River, NY
Charges:
Grand Larceny in the First Degree, a class B felony, 1 count
Grand Larceny in the Second Degree, a class C felony, 7 counts
Grand Larceny in the Third Degree, a class D felony, 1 count
Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 26 counts
Identity Theft in the Second Degree, a class E felony, 3 counts
Scheme to Defraud in the First Degree, a class E felony, 1 count
Issuing a Bad Check, a class B misdemeanor, 10 counts
1 The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty
Contact
Erin Duggan
(212) 335-9400
