Real Estate Exec Scams $17 Million

On Aug. 28, 2008, Adam Hochfelder, former chairman and chief executive officer of New York City-based Max Capital Management Corporation, was indicted on the following:

Six counts of first degree larceny;

Two counts of second degree grand larceny;

24 counts of second degree larceny;

24 counts of first degree falsifying business records;

One count of first degree scheme to defraud; and

One count of offering a false instrument for filing.

Prosecutors allege that from Oct. 2002 to March 2007, Hochfelder intentionally misrepresented his financial status and took on a series of personal loans from family friends, business partners and banks that totaled over $17 million.

Between January 2003 and April 2003, Hochfelder used forged signatures and documents to get $10 million in loans from North Star Bank and Bank of America. Also, in exchange for a $2 million dollar loan, he offered his lavish Park Avenue apartment as collateral, but he failed to disclose the fact that he’d already borrowed $4 million dollars against it.

If convicted of the most serious charge— grand larceny— Hochfelder could face up to 25 years in prison.

Source: New York Sun