Buffalo, NY – Company Cited for House Flipping Scheme

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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.

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    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.

    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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    11 Comments
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    sami
    sami
    15 years ago

    so you cant trust heimshe people

    Anonymous
    Anonymous
    15 years ago

    Why you didn’t make money?

    Anonymous
    Anonymous
    15 years ago

    Loshen hora

    Anonymous
    Anonymous
    15 years ago

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

    Anonymous
    Anonymous
    15 years ago

    thats how much they cost in buffalo

    Anonymous
    Anonymous
    15 years ago

    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.

    Anonymous
    Anonymous
    15 years ago

    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.

    BUFFALO?
    BUFFALO?
    15 years ago

    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

    Take it from me
    Take it from me
    15 years ago

    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!