A Brooklyn man faces up to nine years in prison after pleading guilty to grand larceny, criminal possession of a weapon and bail jumping.
“This defendant filed phony deeds and mortgage documents against multiple properties in a brazen real estate scheme that defrauded homeowners and lenders. Today’s plea sends a strong message to any would-be fraudsters that we will vigorously pursue justice on behalf of fraud victims and seek serious penalties for offenders,” said Brooklyn District Attorney Eric Gonzalez.
Derrick Johnson, who also goes by Jay Rendell, 60, of Clinton Hill, pleaded guilty to a grand larceny indictment on Aug. 9 before Brooklyn Supreme Court Justice Laura Johnson.
Earlier this year, Derrick Johnson was indicted on five counts of second-degree grand larceny for a deed fraud scheme in connection with two properties — one in Bed-Stuy and the other in Bushwick, as well as a mortgage fraud related to a third property in Park Slope.
In total, he stole approximately $775,000 using shell corporations to file fraudulent deeds and mortgage documents.
According to court documents, an investigation began into Johnson's activities on Nov. 25, 2020.
Investigators discovered that the defendant fraudulently obtained a mortgage on an apartment building at 349 17th Street in Park Slope by using fake documents to induce a commercial lender to issue him a mortgage of $337,825.
Additionally, from June 10, 2021, through June 24, 2021, the defendant, acting with an indicted alleged accomplice, fraudulently transferred title to 1517 Broadway in Bushwick to a shell corporation and induced a different commercial lender to issue them a mortgage of $107,607.
The mortgage proceeds were shared with Johnson in the amount of $50,000, with the remainder allegedly going to his co-defendant.
Finally, Johnson fraudulently transferred title to an apartment building at 323 Malcolm X Blvd. in Bed-Stuy to a shell corporation that he controlled and induced a third commercial lender to issue his corporation a mortgage of $329,332.
Following a five-count indictment, Johnson pleaded guilty on Aug. 9. He is expected to serve an indeterminate term of three-to-nine years in prison.
In addition to the grand larceny charges, Johnson is also looking at an additional six years in prison for a previous weapons charge and for skipping out on bail.
According to court documents, Johnson was charged with second-degree attempted criminal possession of a weapon, which he pleaded guilty to on Jan. 6, 2023.
He was supposed to be sentenced on May 8, but failed to appear, and a bench warrant was issued. He was subsequently arrested in Georgia and returned to New York.
Johnson was then indicted for and pleaded guilty to bail jumping. He was sentenced to five years in prison on the gun case and one year on the bail-jumping case.
The defendant will return to Brooklyn Supreme Court on Aug. 30 for a sentencing hearing, which will apply sentences for all three cases. The three sentences are expected to run concurrently.
