4 New York Lawyers Indicted in Alleged $1.4M Equity-Stripping Scam

Four New York lawyers are among eight individuals indicted in an alleged $1.4 million equity-stripping scheme involving four homeowners in the New York City suburbs.

They are accused of having defrauded four Westchester County homeowners and two lenders by purchasing homes from owners facing foreclosure at lowball prices, then taking out large mortgages based on fictitious inflated purchase prices to strip them of their equity, according to an Associated Press article reprinted in New York Lawyer (reg. req.).

Meanwhile, the owners were conned into selling with assurances that they could regain title after they put their finances back into order, says Westchester County District Attorney Janet DiFiore.

The indicted attorneys are: David Rebeck, 67, and Eileen Potash, 57, of Rebeck & Potash; Mildred Didio, 44, a sole practitioner, and Frank Carigliano, 44, another sole practitioner, the AP recounts. Each is charged with second-degree grand larceny, first-degree scheme to defraud and fourth-degree conspiracy, and each has pleaded not guilty.

Rebeck's lawyer said he did nothing wrong; lawyers for the other defendants did not immediately return phone calls, the news agency reports.