Industry News

Developer pleads not guilty to $4M real estate fraud

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A Greenwich, Conn., real estate developer already under indictment for alleged multimillion-dollar mortgage fraud pleaded not guilty last week to embezzling nearly $4 million from his Manhattan co-op, media reports said. Andrew M. Kissel was accused of embezzling the money from the reserve fund of his Manhattan co-op apartment building while serving as treasurer of the board, the New York Times reported. The theft was discovered when the board's finance committee began investigating overcharges for renovations, prosecutors told the Times. Kissel, 45, paid back nearly $4 million and about $700,000 in interest and other fees in a civil settlement with the co-op board in October 2003, the Times reported. Then the Manhattan district attorney began a criminal investigation, reports said. Kissel was indicted in July by federal prosecutors, charged with bank fraud, saying he hid old mortgages to get new loans from banks, the Connecticut Journal News reported. The federal complaint involves...