COURTS: Falls house flipper going to jail

Local News

August 7, 2008

Jospeh Furan sentenced to 30 days for continuing to sell property over the Internet

Staff Reports The Niagara Gazette Thu Aug 07, 2008, 05:13 PM EDT

A Niagara Falls man was found guilty of criminal contempt of court after he tried to flip properties on the Internet in direct violation of a court order, according to Attorney General Andrew Cuomo’s office.

Justice Kevin M. Dillon found Joseph Furan, 39, of Lockport Road, guilty of criminal contempt of court for seven violations of a prior court judgment by advertising properties on the Internet classified site Craigslist. Dillon sentenced Furan to 30 days in jail beginning Aug.15.

“Ignoring a detailed court order, Mr. Furan continued to attempt to defraud unknowing investors by using the anonymity of the Internet,” said Cuomo. “He engaged in persistent fraud with respect to the sale of properties over the Internet, and he flouted the law. My office does not ignore violations of court orders, and for his continued acts of defiance, he is going to jail.”

In April, Cuomo sought contempt charges against Furan for violating a court order that banned Furan from using the Internet to sell any properties in the state unless he posted a $100,000 performance bond. He was also barred from conducting any transactions regarding securities or commodities and from engaging in any deceptive business practices. In that case, Furan placed multiple ads on the Internet site eBay in an attempt to lure investors to buy properties he did not own, among other schemes.

An investigation by the Attorney General’s Office discovered that Furan — after the court order was issued, and without posting a court imposed $100,000 bond — began advertising properties for sale on Craigslist. According to court documents, Furan violated the original court order in numerous respects. Furan continued to place ads on the Internet and fake his credentials and companies that he claimed to own and operate. He repeatedly told the Attorney General’s Office that the actions taking place after the order was issued were actually done on behalf of a licensed real estate broker. However, the real estate broker said he had no knowledge of — and did not consent to — any of Furan’s actions and that he merely rented Furan office space.

Justice Dillon found that Furan, in violation of his court order:

• Did not file a $100,000 performance bond

• Posted listings on the Internet to sell properties on seven occasions

• Did not have an agreement with a real estate broker to post the listings

Furan is also facing a pending charge of third-degree grand larceny for allegedly selling two Niagara Falls properties over the Internet to a buyer from England, using the money to pay off various debts and never providing the titles to the properties. According to the felony complaint, Furan sold a property on Linwood Avenue for $19,000 to an investor from England. However, Furan did not own the property at the time of the sale, as it had already been foreclosed when it belonged to his wife. Furan also sold a property on 18th Street to the same investor for $32,000 without ever transferring the title. The charge carries a maximum prison sentence of seven years.

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