Five Indicted in Alleged Queens Real Estate Investment Scheme That Took Nearly 3 Million Dollars

By: Laura Soukkavong

Investors were promised a share of real estate profits. Instead, prosecutors say, a fraudulent investment operation took nearly $3 million, financed personal spending and left victims facing loan payments, credit card debt, lawsuits and bankruptcy.

Five defendants have been indicted in Queens in a 78-count case involving World Business Holdings, a firm that purported to purchase distressed homes, renovate them and sell them for profit. The defendants are variously charged with first-degree criminal possession of stolen property, fourth-degree conspiracy, first-degree scheme to defraud, first-degree identity theft, first-degree falsifying business records and second- and third-degree grand larceny.

Three defendants were arraigned Tuesday before Queens Supreme Court Justice Leigh Cheng and ordered to return October 29. A fourth was apprehended in Florida and awaits arraignment, while a fifth remains at large; each faces up to 25 years in prison if convicted.

According to District Attorney Katz’s account of the charges and investigation, Mauricio Villamarin, 55, of Maspeth, told prospective investors that World Business Holdings was buying and renovating residential properties. Julian Velez, 46, of Rego Park, was represented as an employee, and the two pitched nearly all the victims while also teaching courses on entrepreneurship and real estate investing.

When prospective investors said they lacked money, Villamarin and Velez allegedly offered a way around that obstacle: a third-party consultant could obtain loans and credit cards in their names. Victims were told to surrender the loan proceeds to the company and authorize charges on those cards as their investments.

The two allegedly promised most victims monthly Zelle payments to cover their loan and credit card obligations until their investments produced profits. Prosecutors say Linoshka Guzman, 35, of the Bronx, visited victims’ homes, often with Villamarin, to complete applications using their personal information.

Those applications often overstated the victims’ incomes to induce banks to approve larger loans and higher credit limits, according to the investigation. After committing their money, some victims received no official updates explaining how it was being used.