Brooklyn Attorney Charged In $4 Million Real Estate Scam: Feds

BROOKLYN, NY — A Brooklyn attorney who scammed real estate investors out of millions of dollars has been charged with wire fraud, prosecutors announced.

Shimon Rosenfeld, 59, was arrested Wednesday after a federal investigation into his years-long scheme, which included at least $4 million "investments" in properties in Crown Heights, Greenpoint and in Philadelphia, Pa., according to court documents.

Rosenfeld told at least four investors that he would put their money into real estate projects, but instead ended up using the money for his own trades out of a brokerage account, prosecutors said. He is charged with wire fraud and could face 20 years in prison if convicted.

"Through this alleged scheme, Rosenfeld abused his position as an attorney and betrayed his victims’ trust for his own selfish gain,” stated Acting United States Attorney Seth DuCharme. Those who commit fraud, including lawyers, must be brought to justice, and this Office will continue to work tenaciously to ensure integrity in the practice of law.”

Rosenfeld often told investors that he planned to purchase real estate and sell it to a prospective buyer at a higher price, also known as “flipping” the property, according to the documents.

Among Rosenfeld's victims was an investor who gave the lawyer $150,000 to invest in a property deal in Crown Heights. The investor told law enforcement that Rosenfeld "kept coming up with excuses and stories" about why the deal was delayed, according to court documents.

But really, Rosenfeld had transferred nearly all of the money, the same day the victim invested it, into an account used for securities trading, the documents show. The investor sustained more than $500,000 in damages from the scam, prosecutors said.

Rosenfeld took the most money, about $2 million, from another investor who thought he was putting money into three different real estate deals, according to the documents.

The schemes lasted from May 2014 to March 2018, prosecutors said.

Rosenfeld pleaded not guilty to the charges, according to his attorney.

"He welcomes his day in court," his attorney, Charles Clayman, told Patch.