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Buffalo, NY - Company Cited for House Flipping Scheme

Published on: October 1, 2008 10:45 PM
By: Business Journals
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Buffalo, NY - An investment company that allegedly defrauded investors in real estate transactions has been shuttered through a court order obtained by the state Attorney General’s office.

The order is said to be the first of its kind in the region, according to the AG’s office.

According to court documents, East Coast Capital LLC and its operator, Norman Dansker, bought more than 50 residential properties and had investors provide mortgages that exceeded the distressed properties’ market value.

Investigators said Dansker told investors that the company sold the properties to contractors for rehabilitation and that they would receive a high return from the resale of the renovated property. East Coast Capital then provided short-term bridge loans to the contractors with the investors’ money, based on the supposed worth of the property, the AG’s office said.

The company is said to have paid $1,074,700 for 53 properties in the Buffalo area, and then received private investor mortgages totaling $2,901,500.

The company and Dansker may not purchase investment property nor issue, promote or sell securities in the state unless they post a $1 million performance bond. They also have a money judgment against them for more than $3 million in restitution to be paid to the defrauded investors.

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Actions are still pending against consulting firm IMA Equities Inc. and its owner Moshe Freidlander as well as JD Realty & Management Inc. owners Elizabeth Doucette and her children, Joshua Doucette and Jessica Doucette.

Over 40 of the properties owned by either East Coast Capital or Jessica Doucette were cited for various building code violations. Doucette failed to appear at multiple court appearances and was briefly imprisoned last year.


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Read Comments (11)  —  Post Yours »

1

 Oct 01, 2008 at 11:50 PM sami Says:

so you cant trust heimshe people

2

 Oct 02, 2008 at 12:14 AM Anonymous Says:

Loshen hora

3

 Oct 02, 2008 at 12:09 AM Anonymous Says:

Why you didn't make money?

4

 Oct 02, 2008 at 12:43 AM Anonymous Says:

53 properties? They paid less than $20,000 per house on average?
Sounds pretty shrewd.

5

 Oct 02, 2008 at 04:28 AM Anonymous Says:

thats how much they cost in buffalo

6

 Oct 02, 2008 at 05:47 AM Anonymous Says:

I know for a fact that ima and its owner mr friedlander was cleard of any charges and can do and still does buisness in ny.

7

 Oct 02, 2008 at 06:18 AM Anonymous Says:

I know for a fact that ima and its owner moshe freidlander was cleard of all charges and is alloud and is doing buisness in NYS. I don't know the other company so I can't comment on that.

8

 Oct 02, 2008 at 10:05 AM formaly Says:

Reply to #6  
Anonymous Says:

I know for a fact that ima and its owner mr friedlander was cleard of any charges and can do and still does buisness in ny.

not true


Actions are still pending against other parties involved in the scheme, including consulting firm IMA Equities, Inc. and its owner Moshe Freidlander; the owners of JD Realty & Management, Inc., siblings Joshua and Jessica Doucette; and their mother Elizabeth Doucette. Jessica Doucette is a college student who ECC told investors was supposed to rehabilitate many of the properties.

9

 Oct 02, 2008 at 10:53 AM BUFFALO? Says:

bUFFALO $20,000? Thats to much . You could get houses there for $5000 and $10,000 all day ..The city has tens of thousands of homes that are empty and no one wants it

10

 Oct 02, 2008 at 02:23 PM Take it from me Says:

I bought a property from Norman Dansker in Newburgh, NY for $55,000 he gave me a $50,000 private mortgage from one of his private investors. I fixed up the property and then refinanced it (with a cash out) and paid back the private loan.

I think he was just a regular business man as trying to make a living. It is the investors obligation to do their Due Diligence. And like always; If you make money you claim you were smart, but if you loose you try to blame everybody else!

11

 Oct 02, 2008 at 06:58 PM robroy560 Says:

Reply to #10  
Take it from me Says:

I bought a property from Norman Dansker in Newburgh, NY for $55,000 he gave me a $50,000 private mortgage from one of his private investors. I fixed up the property and then refinanced it (with a cash out) and paid back the private loan.

I think he was just a regular business man as trying to make a living. It is the investors obligation to do their Due Diligence. And like always; If you make money you claim you were smart, but if you loose you try to blame everybody else!

Good points... But how many more Chilluel HaShem's do we have to have?

12

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