MAYS LANDING — Two Atlantic County men have been sentenced after pleading guilty to a real estate scam involving fake deeds for properties in Atlantic City. Richard Toelk Jr., 54, also known as “Richard Donato,” of Atlantic City, and his business partner, attorney Keith Smith, 60, of Egg Harbor Township, were involved in a scheme that defrauded real estate investors of over half-a-million dollars.
Richard Toelk Jr., after an unsuccessful attempt to withdraw his guilty plea, was sentenced on Monday, May 8, 2023, for theft by deception. State Superior Court Judge Donna Taylor, presiding in Mays Landing, denied Toelk’s motion and sentenced him to a three-year prison term in accordance with a previously reached plea agreement.
Keith Smith, on the other hand, received a non-custodial five-year probationary term on Monday, May 15, from state Superior Court Judge Bernard DeLury.
As part of their sentencing, both individuals were jointly ordered to pay restitution of approximately $580,000 to their victims.
The investigation, led by the Office of Public Integrity and Accountability (OPIA), uncovered the fraudulent activities of Toelk and Smith. Between November 2018 and January 2019, they produced at least 20 fake deeds for real estate in Atlantic City, which they filed with the Atlantic County Clerk’s Office.
Toelk kept some of the fraudulent deeds for himself, while he marketed and sold others to investors in New York City and Philadelphia. However, most of the properties in question were actually owned by the Atlantic City municipal government, with only a few being privately owned. The defendants had no authority or legal title to sell these properties, which were not up for sale in the first place.
The fake deeds falsely transferred ownership of the properties, including a valuable parcel owned by Atlantic City along the boardwalk worth over $1 million, to limited liability companies owned by the defendants. The scammers used these bogus deeds to deceive out-of-state investors, who paid a combined total of approximately $580,000, believing they were acquiring real estate when, in reality, they were obtaining nothing.
Attorney General Matthew J. Platkin emphasized the trust that the defendants exploited, leading investors to suffer significant financial losses. He commended the Office of Public Integrity and Accountability for unraveling the scheme and securing plea agreements that allow the victims to potentially recover their losses.
OPIA Executive Director Thomas J. Eicher highlighted the defendants’ manufacturing of an illegitimate paper trail, filing false documents with the county, and claiming public property as their own. The sentences handed down are seen as a just outcome for their actions, which victimized unsuspecting buyers and the Atlantic City government.