Developer Gregory DeRosa arrested, charged with issuing a bad check, police say

Gregory DeRosa — a Huntington-based developer named in several lawsuits alleging fraud — has been arrested and charged with issuing a bad check, according to Suffolk County police.

DeRosa was arrested at a Broadhollow Road address in Melville on March 23, police said. The check was issued, with knowledge of insufficient funds to cover it, last June, they said.

DeRosa, 43, of Oyster Bay, declined to comment on the arrest or pending lawsuits Tuesday but provided a phone number for his attorney, Kevin Keating, who also declined to comment.

DeRosa is founder of G2D Development Group, a real estate investment company. He also has a stake in Spectre Consulting Group LLC, Newsday previously reported. He has been named in a slew of lawsuits alleging fraud and misuse of funds.

In September, John P. Paci III, a former Huntington school board member and real estate investor, alleged in a lawsuit he provided DeRosa’s G2D Development company $4.6 million to purchase a building at 175 W. Carver St. in Huntington, Newsday previously reported. The suit, which also named DeRosa's wife, Nicolle, says DeRosa misrepresented the likelihood that United Healthcare would become a tenant for the building.

Paci also alleged DeRosa took out a $2.5 million purchase-money mortgage on the property despite having all the funds needed to close, according to the lawsuit.

Suffolk County Supreme Court Justice John Andrews last week granted default judgment and awarded $5.4 million to Paci in the case heard in Riverhead.

"I intend to hold the DeRosa's, G2D and all who aided their fraudulent efforts accountable to the fullest extent of the law," Paci said in a text. 

Among the individuals and companies who are suing DeRosa in a raft of more than a dozen complaints filed since last summer is Brian Darby, who, according to his suit, advanced DeRosa more than $4.1 million to build a home in Laurel Hollow.

Darby hired G2D in early 2023, making monthly payments as building slowly progressed. But as of September, G2D had “not even finished the framing of the house,” according to his complaint.

Another claim against DeRosa, by Jerome Wood, accuses the developer of “misappropriation of moneys” for the purchase of two investment properties: one at 140 Hospital Rd. in Patchogue and another at 2283 Grand Ave. in Baldwin.

Wood alleges he invested $910,000 with DeRosa and his firm, “with the full sum presently unaccounted for,” according to his complaint. Wood is asking for damages of more than $2.1 million.

Attorneys for Darby and Wood did not immediately respond to requests for comment.

Not all the cases are Long Island based. Clearview Funding Solutions filed a case in Monroe County in October, alleging that after inking a “revenue purchase agreement” with DeRosa in January of last year to buy 18% of G2D’s future receivables up to $1,232,500, DeRosa allegedly stopped making payments toward the agreement in September. He allegedly owes Clearview $735,431, including default payments and interest, the suit claims.

In January, Huntington Town Board member Sal Ferro, after being criticized over his relationship with DeRosa, announced he would not seek a second term. Ferro had been advocating for two resolutions that would have increased housing and businesses in Melville, transforming the hamlet. One of the resolutions could have benefited DeRosa.

DeRosa was issued a desk appearance ticket after his arrest and will be arraigned April 11, according to police and an online database of criminal cases.

With Jonathan LaMantia