Saturday, March 09, 2019

Long Island Woman Arrested for Stealing More Than $10 Million in Fraudulent Real Estate Investment Scheme

Defendant Promised Investors Profits from the Sale of Three Skyscrapers in Japan that She Falsely Claimed to Have Inherited

An indictment was unsealed today in federal court in Brooklyn charging Grace Kay with wire fraud related to a long-running scheme to solicit funds from real estate investors.  Kay was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge James Orenstein.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

According to the indictment, between January 1, 2010 and April 15, 2018, Kay and co-conspirators falsely represented to investors that she had inherited real estate in Japan, including three skyscraper buildings, and required funds to pay various fees and taxes in order to sell the properties and return a large profit to the investors.  Relying on Kay’s false representations, investors provided Kay with more than $10 million, which she stole for her personal use.

“As alleged in the indictment, Kay devised a real estate scheme built on tall tales to fleece investors out of millions of dollars,” stated United States Attorney Donoghue.  “With today’s arrest, this Office begins the process of bringing justice to the victims.”

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of wire fraud, Kay faces up to 20 years’ imprisonment.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorney Matthew S. Amatruda is in charge of the prosecution.

The Defendant:

Age:  74
Manhasset, New York

E.D.N.Y. Docket No. 19-CR-113 (DLI)

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