Landlord Indicted for Mortgage Fraud Scheme at 43 Essex Street, Faces 25 Years

Posted on: April 7th, 2017 at 5:15 am by
galasso-mug-shot

Photo: New York Attorney General’s Office

The dominoes continue to fall…

Local landlord Dean Galasso was indicted yesterday for six felony charges in a scheme to fraudulently obtain a multi-million dollar mortgage to buy 43 Essex Street (formerly home to G&S Sporting Goods), Attorney General Eric Schneiderman announced.

He’s being charged with submitting bogus documents to a bank, including a phony rent roll, to secure a $5 million mortgage to purchase the Lower East Side tenement. Galasso allegedly forged leases for several apartments in the ten-unit rent stabilized building to support the false information in the rent roll. This info was then used to mislead the bank that he’d be making enough to justify the loan.

Galasso, 49, faces one count of Grand Larceny in the First Degree, a Class B Felony, two counts of Forgery in the Second Degree, Class D Felonies, two counts of Criminal Possession of a Forged Instrument in the Second Degree, Class D Felonies, and one count of Falsifying Business Records in the First Degree, a Class E Felony. If convicted, he faces up to 25 years in prison.

This indictment resulted from an investigation led by the two-year-old Tenant Harassment Prevention Task Force.

gs-essex-1

“Bad landlords are now on notice: if you attempt to break the law, we will find you and prosecute you to the fullest extent of the law,” Schneiderman said in a public statement. “Our task force will continue to identify, investigate, and prosecute those who try to game the system.”

“These felony charges should serve as a reminder to bad landlords in the Lower East Side, Chinatown, and throughout my Council District that fraud and tenant abuse come with serious consequences, including jail time,” said Councilwoman Margaret Chin. “I thank Attorney General Schneiderman for leading this joint state and city effort to hold this landlord, and others seeking to game the system, accountable for their actions.”

There was also a civil suit against Galasso that settled back in December.  As previously reported, residents filed the lawsuit two years prior, after the landlord assumed a campaign of harassment, deploying myriad deplorable strategies including hiring tenant relocator Michel Pimienta. All this with the same old end game of making lives intolerable (e.g. no cooking gas for a year), and forcing out the rent regulated.

Recent Stories

See the Subways with the MTA’s Live Subway Map

It’s been a long time coming, but the MTA map is finally going digital. Now officially in beta, the MTA’s “Live Subway Map” is a dynamic interface showing real time train locations, arrival times, and service alerts, among other pertinent info for New York denizens. And it arrives at a time when subway ridership numbers […]

When a Rat Skeleton Falls through Your Ceiling

This is not a Halloween story, but may as well be. As reported yesterday, deaf and hearing-impaired tenants living at 174 Forsyth Street are demanding remedy for deplorable living conditions. Those affected allege years of neglect that led to extreme disrepair and lack of security, and are holding a press conference this morning to train […]

Woman Punches Uber Driver in the Face on Ludlow Street

A woman jumped into an Uber on Ludlow Street and assaulted the driver, police said. On Sunday night, approximately 10:00pm, the woman entered the cab outside 121 Ludlow Street, unwarranted, and allegedly punched the driver in the face. He sustained a fat lip, and is otherwise okay. It’s unclear what prompted the belligerence. However, the […]

Economy Candy and the Pandemic Halloween

With Halloween just a few days hence, we checked in with local love Economy Candy, to see how owners Skye and Mitchell Cohen are managing the pandemic during a peak holiday for the Lower East Side confectioners. As you can imagine, Halloween has always been a big deal in the Economy Candy family. “Growing up, […]

Deaf Tenants Allege Years of Neglect and Poor Living Conditions on Forsyth Street

Deaf tenants in HUD housing on the Lower East Side are organizing to demand better living conditions after years of purported neglect. The buildings comprising 174-184 Forsyth Street were constructed in March 1994 specifically for low-income deaf and hearing-impaired tenants. New York Society for the Deaf owns the six-story, half-block complex, which was financed by […]