We believe he is a crook
It is hard to tell if it is laziness, incompetence, hubris, greed or corruption. A case is can be made that is is a bit of all five, especially when the courts turn a blind eye to the problem.
What really remains to be seen is.... how much deed fraud is too much for the system of property transfer in NYC to withstand?
It is really quite simple. Deeds are the currency of real estate. There are strict rules that must be followed lest the whole thing go sideways.
It is so important that those rules are followed that whoever lends you money to buy real estate almost always requires that you get title insurance from someone who will research the chain of title step by step from time immemorial to the date of the transaction to make sure that you are getting something with a legit title. The title company insures the bank/buyer to the amount of the purchase price based on paying a premium.
- Sometimes Title Companies make mistakes. They pay for those to the amount of insurance.
- Sometimes Title Companies work fast and loose with the truth. They pay for those to the amount of insurance.
- Sometimes Title Companies don't do due diligence. They pay for those to the amount of insurance.
- Sometimes Title Company clients fraudulently induce them into insuring something. They either pay or tell their client that they are not required to pay because fraud cannot be the basis for a contract.
Where it gets really interesting is when the banks are too cozy with the developers and loan based on the property itself as collateral. If the buyer fails to pay they take the property. Simple, no?
But what happens if the deed itself is bad and there is no collateral for the bank to attach to?
This article is about a purportedly bad deed. It is pretty clear to anyone without a vested interest that this is a bad deed. The question is, Who did bad in the bad deed?
Did Old Republic Title knowingly file a false deed with the City Register or did Greystone (Jeffrey Simpson) scam Old Republic?
You see, the deed in question by Referee Gregory Cerchione described more fully in later tabs is sworn to have occurred in the future already, some five (5) days after the notarization by his employee at Subin Associates, Theresa Caruso.
This would seem to be something that a title company would catch, a deed that is dated in the future is problematic on several levels.
In later sections we dig into what that really means to have a deed dated after it is notarized with a special focus on some officers of the court who seem to take this situation a bit casually.
PNC bank issued a loan backed, in part by the real estate described in the bad deed (described more fully in next few sections).
It would seem that PNC Bank loaned based on the insuring of the deed by Old Republic Title.
Unfortunately, a deed is backed solely to the amount of the purchase price of the deed, some $7,600,000.
Since PNC bank has loaned approximately $17,000,000 on the combined property of the Brooklyn Lyceum and the 12 story building next door and 1/2 the 12 story building next door goes away if the deed to the Brooklyn Lyceum is faulty... It appears that PNC may have lost upwards of 60% of their collateral. Without a personal guarantee by Stephen Rosenberg of Greystone... PNC could get almost nothing if the deed goes south.
HIGHEST LEVEL HERE
The Growler is now grinding thru almost 900,000 deeds to see if, as claimed by Gregory T. Cerchione, he is authorized to lie by the court.
We figure, if the probability that this is a normal action is low enough, someone at the DA's office will take action.