Jessica Vargas Has Stolen At Least $442,000 and Is Attempting to Sell Low-Income Residential Building for Personal Profit Despite Having No Ownership Claim to Property
New York Attorney General Letitia James today sued Jessica Vargas, a Florida resident, for running a scheme to fraudulently claim control over the Housing Development Fund Corporation (HDFC) at 13 Scholes Street (13 Scholes), a low-income residential building in Williamsburg, Brooklyn. An Office of the Attorney General (OAG) investigation found that Vargas created false documents to assume control of the corporation, collected at least $442,000 in rent meant for the cooperative, and is now attempting to sell the building for personal profit. Attorney General James’ civil lawsuit seeks to remove Vargas from her claimed position within the corporation, recover all stolen rent, and permanently bar her from any further business related to the property.
“Jessica Vargas declared herself president of a building she had no claim to, exploiting New Yorkers for her personal gain while living over a thousand miles away,” said Attorney General James. “What was meant to be affordable housing for New Yorkers has now been manipulated into a Floridian’s personal piggy bank. That is unacceptable. We are suing to take this building out of Vargas’ hands and ensure it remains available to low-income New Yorkers.”
13 Scholes HDFC is a low-income cooperative corporation established in 1996 exclusively to develop a housing project for low-income New Yorkers. HDFCs are affordable housing co-ops collectively owned and operated by their residents, or shareholders, who together make decisions about care and upkeep of the building. All the original resident shareholders of 13 Scholes have passed away, and the OAG investigation revealed that Vargas, a former shareholder’s daughter, has since exploited the corporation for her own personal benefit while leaving the building in debt. Attorney General James alleges that Vargas has attempted to deceive business associates, courts, and regulators into believing that she has control and ownership of the building, with the ultimate goal of selling the building for additional profit.
The OAG investigation revealed that although Vargas was once the administrator of the estate of her later father, Albert Rivera, the estate never contained any assets related to 13 Scholes, and it was closed in 2021. Despite never holding any legal position within the 13 Scholes HDFC, Vargas has falsely claimed to be its President, Secretary, Treasurer, and sole shareholder on multiple occasions.
Attorney General James alleges that Vargas fabricated stock certificates, falsely reported ownership to city agencies, and diverted hundreds of thousands of dollars that should have gone toward maintaining the cooperative to line her own pockets. The OAG investigation determined that Vargas unlawfully collected at least $442,000 in rent from a private company under an invalid lease agreement and failed to pay over $40,000 in property taxes, as well as over $3,000 in water bills, leaving the building in financial distress. Now, Vargas is seeking to sell the building and pocket the profits, despite not having the legal right to do so.
Attorney General James is suing to remove Vargas from her fraudulent position as an officer of 13 Scholes HDFC and is seeking a permanent ban on Vargas doing any business related to the property or company. Attorney General James is also seeking to recover all misappropriated funds, totaling at least $442,000.
No comments:
Post a Comment