NY Attorney General: Joseph Makhani of Kings Point swindled owners out of Harlem brownstones

A Kings Point man accused of swindling two owners out of their Harlem brownstones, including an elderly man forced into a homeless shelter, pleaded not guilty Monday to criminal charges in a Manhattan court, New York Attorney General Letitia James said. 

Joseph Makhani, 60, also tried to evict tenants from one of the brownstones he had allegedly obtained through forged and falsified documents, James said. 

“Shameless deed thieves like Joseph Makhani target vulnerable homeowners and steal their most valuable and personal asset,” James said in a news release.

The elderly owner of one brownstone, valued at about $2.9 million, was forced to live in a homeless shelter, according to the attorney general’s office.

“This crime harms entire communities, especially those facing population displacement and gentrification," James said. "The fear and confusion unleashed on New Yorkers when they learn their homes have been stolen out from under them is something no one should have to endure.”

Makhani pleaded not guilty to two counts of first-degree criminal possession of stolen property and one count of first-degree scheme to defraud in Manhattan. If convicted, he faces between eight-and-a-third and 25 years in state prison. He is scheduled to return to court on Nov. 20, according to court records. 

Makhani was arrested and indicted on the same crimes in 2021, but the charges were dismissed after an appeals court ruled James lacked jurisdiction in the case because it had not been referred to her office from a state agency. 

“Mr. Makhani denies all of the allegations,” said his attorney, Susan Necheles. “The case was dismissed once and we expect it to be dismissed again.” 

James said Makhani used forged deeds, fraudulent documents and shell companies to illegally obtain a brownstone on West 118th Street from the elderly owner. A Makhani-controlled corporation said in a New York State tax filing that it had paid just $10 for the brownstone. 

In a mortgage application, Makhani allegedly made a false claim that he paid $975,000 for the brownstone and had received a $650,000 loan for renovations. He refinanced and received a $1.2 million long-term mortgage loan on the property, according to James' office.

Makhani also applied to the New York City Department of Housing Preservation and Development (HPD) to convert the building into market-rate apartment rentals. From 2016 to 2023, Makhani rented each unit out for about $3,000 and $3,400 per month, allowing him to collect a monthly rent income of more than $12,000. The elderly owner never received any money from Makhani and continues to live in a homeless shelter, James said. The brownstone was recently valued at $2.9 million, according to the attorney general.

Makhani also took over a property on West 131st Street, allegedly using falsified documents, shell companies and other fraudulent tactics, James said. Around 2012, Makhani approached one of the building’s tenants, told them that he had purchased the brownstone, and allegedly got the man’s signature by pretending to offer him a job. 

Makhani filed a new deed with that tenant’s forged signature, misrepresenting the tenant as the owner. Makhani then transferred the brownstone to a company he controlled, the attorney general said. 

Makhani’s ownership of the brownstone and the deed was questioned in eviction cases brought by his company against the tenants, Makhani filed a new fraudulent deed, according to James, that said the heirs of the last recorded owner transferred the property to his company. 

The city housing and development agency sued Makhani in 2013, and in 2015, obtained a more than $1 million judgment for his failure to appropriately maintain the brownstone, which was estimated to be worth $1.8 million. Soon after, Makhani abandoned the property, which was then foreclosed on by the City of New York, James said.