A Long Island resident, Joseph Makhani, has received a prison term ranging from seven to 21 years following his conviction in a plot to illegally acquire two Harlem brownstones. The New York Attorney General’s Office revealed the sentencing, which includes back-to-back sentences for each property theft alongside a concurrent penalty for fraud-related charges.
Makhani was found guilty of stealing property and engaging in a fraudulent scheme. As part of the judgment, he must also compensate Flushing Bank with $500,000 in restitution.
How the Theft Unfolded
The fraud targeted two properties, 107 West 118th Street and 135 West 131st Street, valued together at roughly $4.7 million. Makhani exploited forged paperwork and dummy corporations to seize control of the deeds.
Prosecutors allege that Makhani first pursued these properties in 2012. He falsely claimed to have paid $975,000 for one of them, then secured a $650,000 loan for renovations. Later, he refinanced and obtained a $1.2 million mortgage on the same property.
Between 2016 and 2023, Makhani leased out four units in the building for monthly rents between $3,000 and $3,400 after securing approval from the New York City Department of Housing Preservation and Development to convert the home into market-rate housing. This move allowed him to generate substantial income from the illegally obtained property, reinforcing his ownership.
A Long Record of Deception
Makhani’s history of fraudulent schemes dates back over two decades. In 1999, he and his brother, Kamran Makhani, admitted guilt in a separate scheme involving foreclosed homes in Queens, resulting in fines and three-month prison sentences.
A separate proceeding will address the legal status of the deeds and mortgages tied to one of the two buildings. Makhani faced a seven-week trial in July, with jurors reaching a guilty verdict after just 90 minutes of discussion. Authorities noted that he exploited the death of a property beneficiary in 2010 and, around 2012, convinced a tenant, under the pretense of offering employment, to sign documents falsely suggesting he had purchased the brownstone.
Nine years after his earlier guilty plea, companies linked to Makhani admitted in state court to submitting false deeds as part of a broader Queens housing fraud, each fined $5,000. This pattern of dishonesty culminated in his recent conviction for the Harlem brownstone scheme.
