Nassau Property Manager Sentenced From Stealing From Tenants

A New York City property manager, who was the landlord of a strip mall in Hewlett, was sentenced on Wednesday for stealing more than $327,000 from his tenants.

Leon Austern, 71, pleaded guilty on Sept. 8, 2017 to second-degree grand larceny. He was sentenced to one to three years in prison, and has to pay $163,636.90 in restitution.

“This defendant stole from innocent business owners and used the money to pay for his daily expenses,” said Nassau County District Attorney Madeline Singas. “With all the pressures on small business owners, the last thing they should worry is having employees and contractors stealing from them. My office remains committed to prosecuting fraud cases and returning stolen money to victims.”

Austern was the manager of a strip mall in Hewlett with five commercial tenants. From May 3, 2010, to Dec. 18, 2012, Austern embezzled a net amount of $327,273.80 from Harbro, the property owner, by diverting checks drawn by Harbro’s tenants for rent and taxes to two bank accounts that he created in the name of Harbro. The accounts were opened secretly without the permission of the company. For his services, Austern was entitled to receive three and a half percent of the gross rents collected from its tenants.

Austern spent the stolen money to pay for personal expenses including loan payments, insurance, legal fees, investments, restaurants, health-related products, food, beverages, gasoline, household appliances, pool maintenance, utilities and storage fees.

The district attorney's office received the case in August of 2014 after a member of the owning company opened a complaint. Austern was arrested in August 2016.

Photo courtesy Nassau County District Attorney's office