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

Clayton’s Corner: At the Memorial for LES Documentarian, Toyo Tsuchiya [PHOTOS]

If, in the early ’80s, Toyo Tsuchiya’s ambition was to be remembered as a serious New York City documentary photographer, he could not have picked a more overlooked and neglected piece of landscape than the Forsyth and Rivington Street area, between Delancey and Houston. At the time, it was a drug- and crime-infested subdivision. As […]

175 Ludlow Street Sells to NJ Steel Supplier

Lately, real estate is trading rather briskly in the confines of Hell Square. At least four area buildings sold since last summer. Time to add another onto the heap. Word crossed our desk this week that 175 Ludlow Street, just south of Houston, likewise changed hands. Residents there received a notice from the new ownership […]

Health Department Shutters ‘The Skinny’ on Orchard Street

It’s lights out for The Skinny bar on Orchard Street. Nearly three months after pissing off (or, on) Hell Square with its Christmas “Jingle Hell’s” holiday stunt, the rowdy nightclub was subject to a city inspection yesterday. The Department of Health came down to 174 Orchard Street and ordered the establishment shut. The requisite yellow […]

First Rendering of the 14-Story Hotel Rising at Vacant Eldridge Street Lot

What the neighborhood doesn’t need is another large-scale hotel. But that’s precisely what’s happening at 79 Eldridge Street, where construction last week commenced on a new context-killing fourteen-story lodge. And now we have our first sight of what to expect from this long-vacant lot. It’s amazing how these illustrations completely gussy up neighborhoods to make […]

The Neon Lights of Sunshine Cinema Have Gone Dark

The Sunshine Cinema on East Houston is one step closer to its grave. While the brickwork of the building remains bathed in orange glow, the marquee lettering was not as lucky. As of this week, its token neon signage has gone dark. Shadows are now cast on the sidewalk below. Demolition is nigh. This latest action […]