Five defendants accused of turning fake property investments into luxury spending while leaving families buried in debt
Queens, NY — Five people have been indicted in an alleged real estate investment scam that drained nearly $3 million from victims, left families buried in debt and even put a Connecticut couple at risk of losing their home after it was secretly mortgaged without their knowledge.
Queens District Attorney Melinda Katz announced the 78-count indictment against defendants accused of convincing investors to take out personal loans and credit cards to fund what they believed was a profitable house-flipping business.
Instead of delivering promised real estate profits, prosecutors allege the defendants spent portions of the money on luxury merchandise, restaurants, airfare, hotels and personal expenses while maintaining the appearance of a legitimate investment operation.
The five defendants face charges including grand larceny, identity theft, conspiracy and criminal possession of stolen property. Each faces up to 25 years in prison if convicted.
Investors promised profits but ended up buried in debt
According to the Queens District Attorney’s Office, the alleged scheme centered on World Business Holdings, a company that purported to purchase distressed residential properties, renovate them and resell them for a profit.
Mauricio Villamarin, 55, of Maspeth, allegedly presented himself as the businessman behind the operation, while Julian Velez, 46, of Rego Park, helped recruit investors.
The two men also taught entrepreneurship and real estate investment courses, which prosecutors say helped attract potential victims.
When people said they lacked the money to invest, Villamarin and Velez allegedly offered a solution that would ultimately leave many victims facing serious financial trouble.
They told prospective investors that a third-party consultant could help them obtain loans and credit cards in their own names.
Victims were then encouraged to turn over loan proceeds and authorize charges against their credit cards, supposedly allowing World Business Holdings to invest the money in real estate.
The defendants allegedly promised monthly payments through Zelle to cover the victims’ loan and credit card obligations until the investments began producing profits.
Instead, prosecutors say some investors received no meaningful updates about their money, while others were told their funds had been invested in properties the company never purchased.
Connecticut family faces foreclosure after alleged home theft
Among the most troubling allegations involves a Spanish-speaking Connecticut couple who prosecutors say were tricked into signing paperwork that ultimately transferred ownership of their home.
The defendants allegedly used the couple’s signatures and a fraudulent notarization stamp to convey the property to a company they controlled.
They then obtained a mortgage on the home without the couple’s knowledge, using the borrowed money to help finance the alleged scheme.
The family now faces the possibility of losing its home to foreclosure.
Katz said the defendants left victims with devastating financial consequences.
“Now the victims are saddled with debts they cannot pay, ruined credit scores, lawsuits and bankruptcy,” Katz said.
She added that the Connecticut family was in danger of losing its home because the defendants allegedly obtained a mortgage without the owners’ knowledge.
Luxury shopping and personal spending funded by investments
Prosecutors allege that the defendants used investment proceeds to pay for an array of expenses unrelated to the promised real estate investments.
Those purchases included goods from luxury retailers such as Louis Vuitton, along with restaurant meals, airline tickets, hotel stays, Lyft rides and Netflix.
Some funds were allegedly spent on office space in Long Island City, helping World Business Holdings maintain the appearance of a functioning investment company.
Investigators also uncovered questionable claims about properties supposedly being renovated and resold.
Victims were told their money was invested in homes in Corona, Long Island and Westchester County.
Public records showed that the company never purchased the identified properties in Corona and Westchester County, according to prosecutors.
A company controlled by the defendants did purchase, renovate and sell a Long Island property, but investigators allege the proceeds went into accounts controlled by the defendants rather than benefiting the investors.
Linoshka Guzman, 35, of the Bronx, allegedly visited victims’ homes to complete loan and credit card applications using their personal information.
Prosecutors claim the applications frequently inflated victims’ incomes to obtain larger loans and higher credit limits.
Five indicted with one defendant still at large
The defendants named in the case include Villamarin, Guzman, Velez and Diana Leal, 44, formerly of Jackson Heights and now residing in Florida.
A fifth defendant, 61, formerly of Forest Hills, was also indicted but remains at large. Prosecutors did not identify that individual by name in the announcement.
Three defendants were arraigned Tuesday before Queens Supreme Court Justice Leigh Cheng and ordered to return to court October 29.
Leal was apprehended in Florida and is expected to be arraigned at a later date.
The indictment includes charges of criminal possession of stolen property in the first degree, fourth-degree conspiracy, first-degree scheme to defraud, identity theft, grand larceny and falsifying business records.
The defendants face varying counts based on their alleged involvement in the operation.
Secret Service joins Queens investigation
The investigation was conducted by the Queens District Attorney’s Financial Frauds Bureau in partnership with the United States Secret Service and the NYPD Financial Crimes Task Force.
Matt McCool, special agent in charge of the Secret Service’s New York Field Office, said the arrests reflected the agency’s commitment to investigating financial crimes that exploit victims’ trust.
“Working with our law enforcement partners, we will continue to investigate complex financial fraud schemes and pursue those who use deception to leave victims with devastating financial losses,” McCool said.
Assistant District Attorneys Joshua Trachtenberg and Nicholas Kania are prosecuting the case.
The allegations underscore the financial damage that can result from real estate fraud, particularly schemes involving personal loans, credit cards and identity theft.
The investigation also highlights ongoing efforts to combat financial fraud and crime in New York.
All defendants are presumed innocent unless proven guilty in court.