Originally Syndicated on May 8, 2024 @ 1:59 am
Marat Lerner, 41, of Brooklyn, New York, the former president of a debt relief services company, pleaded guilty today to one count of conspiracy to commit wire fraud and one count of wire fraud while on pre-trial release. Lerner acknowledged deceiving his victims and stealing funds they intended to use for their home mortgage payments.
Court documents and details shared during the guilty plea hearing revealed that Lerner was the owner of the “Lerner Group,” a business claiming to offer debt relief services, particularly mortgage modifications, targeted at the Eastern European immigrant community in Brooklyn. Many of his victims were already facing financial difficulties and sought Lerner’s help to decrease their monthly mortgage payments. Lerner promised to assist them in negotiating lower payments with their mortgage lenders through loan modifications or federal assistance. To perpetuate his scheme, Lerner instructed victims to grant him access to their bank accounts for direct payments to mortgage banks, claiming these would be sent to an escrow agent holding funds until the mortgage modifications were completed, or to entities linked with their lenders. He also advised victims not to communicate directly with their mortgage lenders, positioning himself as the intermediary.
In reality, Lerner embezzled over $2.5 million from these victims—money they intended for their mortgage payments. After obtaining access to their accounts, he diverted funds to companies and accounts under his control, using most of the money for personal and business expenses such as a BMW, luxury items, and fine dining. To mask his crimes, he instructed victims to ignore communications from their lenders about missed payments and overdue balances.
In January 2023, Lerner was indicted by a federal grand jury in the Eastern District of New York and arrested in relation to this fraud. Following an order from the United States District Court for the Eastern District of New York, he was released on bail with specific conditions, including a prohibition against committing further crimes. Despite this, Lerner continued to defraud his victims, stealing at least $10,000 from them between his arrest in January 2023 and May 2023. His bail was later revoked.
As a consequence of Lerner’s prolonged fraudulent activities, several victims are now facing foreclosure actions from their mortgage lenders. As part of his plea agreement, he has consented to pay approximately $2,554,217.11 in restitution to his victims.
The plea proceeding was presided over by United States District Judge Nicholas G. Garaufis. When sentenced, Lerner could face up to 50 years in prison. In addition to his restitution agreement, he is also required to pay back $2,554,217.11. He was indicted in January 2023. Announcements regarding the guilty plea were made by Breon Peace, United States Attorney for the Eastern District of New York, along with James Smith, Assistant Director-in-Charge of the New York Field Office of the FBI, and Thomas Fattorusso, Special Agent-in-Charge of the IRS Criminal Investigations New York Field Office.
“As he admitted today, Marat Lerner turned the victims’ American dreams into a nightmare by promising mortgage and debt relief, and instead preyed on their hard-earned life savings for his own personal gain,” stated United States Attorney Peace. “My Office will continue to protect immigrant communities against those who choose to use their positions of trust to defraud and steal from them.”
“Marat Lerner operated as an underground broker in his local community; but instead of completing his end of the bargain by paying their mortgages, he pocketed the money of his unsuspecting victims to live a life of luxury. This wasn’t just a money scam, this fraud affected his own community’s homes and families. Those who fell prey to Lerner’s deceit defaulted on their mortgage payments, and some fell into foreclosure. Today’s guilty plea and agreed restitution is just one step towards his victims getting justice, and his sentencing is the next,” stated IRS CI Special Agent-in-Charge Fattorusso.
The case is being managed by the Business and Securities Fraud Section of the Office. Assistant United States Attorneys Nicholas Axelrod and Genny Ngai are leading the prosecution, with support from Paralegal Specialist Jacob Menz.
