A real estate executive in New York has been indicted for allegedly committing bank fraud in a scheme to steal millions from a real estate investment in Manhattan.
“As alleged, Kevin Gao orchestrated a complex scheme to create a fraudulent, unauthorized bank account and use the account to steal $30 million from a real estate investor,” Danielle Sassoon, then-U.S. attorney for the Southern District of New York, said in a statement.
“Bank fraud schemes undermine the integrity of our financial system by corrupting it for criminal purposes, and I commend the FBI and our dedicated team of prosecutors for their outstanding work in uncovering this massive fraud.”
Gao allegedly committed bank fraud by opening an unauthorized account in the name of “Company 1,” which managed a “luxury real estate development project” located near midtown Manhattan, according to the indictment. The project included condominium residences.
To deceive the bank into opening the account, Gao allegedly presented a fake copy of Company 1’s operating agreement, according to the indictment.
The real estate project was developed as a joint venture between “Company 3” and a Connecticut-based real estate company, which was identified only as “Company 2” in the indictment.
In June 2017, an investment company, which the indictment did not name, agreed to invest $30 million in the real estate project and transferred the money to Gao’s allegedly fraudulent account.
Gao allegedly then dispersed the $30 million to bank accounts under his control and that of his coconspirators.
“This alleged establishment of an illicit bank account wrongfully diverted a significant sum from its intended use. The FBI remains dedicated to apprehending all individuals who implement deceitful measures to steal what is not owed to them,” FBI Assistant Director in Charge James E. Dennehy said in a statement.
