Marat Lerner, the former president of a Brooklyn-based debt relief services company, was sentenced to prison for 11 years and three months on Tuesday for conspiracy to commit wire fraud and wire fraud.
The victims, many of whom are Brooklyn residents from the Eastern European community, were clients of the Lerner Group, a company that offered debt relief services, including mortgage modifications, according to a press release.
United States District Judge Nicholas G. Garaufis handed down the sentence in federal court in Brooklyn, ordering Lerner to forfeit approximately $2.34 million to the government. Restitution to the victims will be determined later.
Lerner, 44, pleaded guilty to the charges in February 2024. Prosecutors said he continued his fraudulent activities even while out on pretrial release, stealing an additional $50,000 from clients.
“Today the defendant learned there are serious consequences for stealing his clients’ money, even after he was arrested, and ruthlessly spending it on a luxury car for himself, on-line dating and expensive meals,” said United States Attorney for the Eastern District of New York Breon Peace.
“His victims were hard-working people, many from the Eastern European community, who went to him for help saving their homes and livelihoods. Instead of helping them, Lerner took advantage of their trust and vulnerability to steal their money," he added.
Court documents revealed that Lerner gained access to his clients’ bank accounts under the guise of paying their mortgage lenders. Instead, he transferred $2.5 million into his personal accounts, spending it on luxury items, including a BMW and expensive meals.
Several victims defaulted on their mortgages, declared bankruptcy or faced foreclosure. “His underground brokerage was not just a simple money scam; it led to victims defaulting on their mortgage payments and some falling into foreclosure,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr.
Despite being arrested in January 2023 and released on bail, Lerner continued defrauding clients, leading to the revocation of his bail in September 2023.
