Real estate developer sentenced for brownstone fraud scheme

Makhani, 63, was found guilty of swindling properties valued at approximately $5 million. Among the victims was Veronica Palmer, an 83-year-old former corrections officer who had owned her Harlem brownstone since 1985. Palmer, who was displaced and briefly lived in a homeless shelter, never intended to sell her property at 107 W. 118th St., according to prosecutors.

Makhani allegedly falsified documents to gain possession of Palmer’s home and subsequently secured a $1.2 million loan he was not entitled to. Prosecutor Matthew Luongo characterized Makhani’s actions as demonstrating a disregard for others and a “callous and conniving” approach.

The state Attorney General, Letitia James, initially indicted Makhani in 2021. The case was dismissed on a technicality, but James refiled the indictment two years later.

Makhani was also convicted of fraudulently acquiring a second brownstone at 135 W. 131st St. by manipulating tenant Tyrone Boozier into falsely claiming ownership and transferring the property, despite the actual owner’s death. Boozier testified during the seven-week trial.

Makhani was convicted of two counts of criminal possession of stolen property in the first degree and one count of scheme to defraud in the first degree. His lawyer, Susan Necheles, attempted to portray him as someone who “made a mistake,” seeking a sentence of less than five years. However, Manhattan Supreme Court Justice Michele Rodney followed the prosecution’s recommendation.

In addition to the prison sentence, Makhani was fined $500,000 and ordered to pay $500,000 in restitution by May 2027.