Industry News

Lawsuit charges family with mortgage-based securities fraud

Alleges $42 million obtained from investors in massive scheme

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The New Jersey Attorney General's Office and the New Jersey Bureau of Securities have filed a lawsuit against a New York City man, several members of his family and 68 corporations they allegedly created to carry out a massive securities fraud scheme. The suit claims individual defendants obtained more than $42 million from more than 100 real estate investors, and diverted millions to pay their personal expenses. The complaint was filed in Superior Court in Essex County against Joseph Greenblatt; his wife, Alexandra Horvath; his father, Max Greenblatt; the estate of Joseph Greenblatt's mother, Vera Greenblatt; and Maywood Capital Corp., a New Jersey corporation based in Paramus that allegedly was the umbrella company for the investment scheme. According to a statement from the Attorney General's office, defendants allegedly placed newspaper ads offering interests in "safe" mortgages. Joseph Greenblatt solicited investors in California, Florida, Massachusetts, New Jersey and New Y...