New York: 914-722-9400

Real Estate & Mortgage Fraud Analysis

Mr. Levy was Senior Vice President of Chemical Bank and Managing Director of Chase Manhattan Bank (both predecessors to the current JP Morgan Chase Bank) and he served as a Senior Member of the Credit Committee. He is now President of Gerald M. Levy & Co. LLC, Real Estate and Banking Consultants and a Professor at New York University’s Schack Institute of Real Estate.

Mr. Levy is an MAI Member of the Appraisal Institute, a CRE Member of the Counselors of Real Estate, and an FRICS Fellow of the Royal Institution of Chartered Surveyors (London). He is also a Licensed Real Estate Broker and Certified General Appraiser in the State of New York and is eligible for reciprocal licensing in most states.

Mr. Levy is an Associate of the Mortgage Bankers Association of New York, an Academic Member of the CRE Real Estate Finance Council and an Educator Associate Member of the Association of Certified Fraud Examiners.

He is prepared to analyze the body of evidence in a specific real estate and/or mortgage situation to determine, in his opinion, whether or not, negligence, misrepresentation or fraud has occurred.

Common usage definitions of negligence, misrepresentation and fraud, generally, are as follows: Negligence is a failure to exercise the care that a reasonably prudent person would exercise in like circumstances. Misrepresentation is a false statement made by one person to another for the purpose of inducing that person to enter into a contract. Misrepresentations may be fraudulent, negligent or innocent. Fraud is an intentional deception often motivated by personal gain or for the purpose of damaging another individual or entity. Definitive definitions of negligence, misrepresentation and fraud are tied to specific legal jurisdictions.

Examples in the real estate, banking, and construction industries relating to one or more of these general concepts include:

  • Conflicts of Interest Leading to Possible Improper Advice or Actions
  • Overstatement of Demand or Understatement of Supply
  • Incorrect Statement of Property Characteristics
  • Incorrect Space Measurements
  • Made-up vs. Actual Rent Rolls
  • Double Counting in Revenue Projections
  • Exaggerated Revenue Growth Estimates
  • Inaccurate Expense Estimates
  • Understated Expense Growth Estimates
  • Unreliable Assumptions in Discounted Cash Flow (DCF) Analysis
  • Unreliable Appraisal Reports
  • Unreliable Marketing Statements or Actions
  • Fraudulent Sales Contracts
  • Improper Nominee Substitutions
  • Fictional Tenant Estoppels
  • Inappropriate Market Comparables
  • Inappropriate Omissions
  • Front End Loading in Estimating Construction Trade Costs
  • Exaggeration of Quantities of Construction Materials Utilized
  • General Understatement or Overstatement of Cost Estimates
  • Misallocation of Overhead Expenses
  • Incomplete Borrower Analysis
  • Incomplete Project Analysis
  • Incomplete Market Analysis
  • Incompetent Loan Underwriting
  • Incompetent Loan Administration
  • Unreliable Financial Reporting
  • Documented Bid Rigging or Bribery