UES Developer Convicted Of Mortgage Fraud, Stealing Company Funds

UPPER EAST SIDE, NY — An Upper East Side real estate developer has been convicted of fraud and theft after prosecutors said she stole $500,000 from an investor and forged signatures to obtain an $11.5 million mortgage loan.

Penny Bradley, 59, of New York City, was convicted by a New York State Supreme Court jury of first-degree residential mortgage fraud, two counts of second-degree grand larceny, and other charges, Manhattan District Attorney Alvin Bragg announced Friday in a news release.

"Penny Bradley not only stole more than $750,000 from investors, she forged their signatures to obtain an $11.5 million loan in an attempt to cover up the theft," Bragg said in a statement. "In order to perpetuate her fraud and continue to live beyond her means, she also stole hundreds of thousands of dollars from a second company that invested in her supposed townhouse renovations."

Bradley is expected to be sentenced on June 24, Bragg said.

In March 2014, Bradley formed 46 East 82nd Street LLC to buy, renovate and sell a townhouse at the same address. As a managing member, Bradley was solely responsible for overseeing the renovation and sale of the townhouse as well as safeguarding company money and property.

According to prosecutors, Bradley stole from the company to cover her personal debts as well as fund personal expenses and unrelated business ventures.

Prosecutors said the thefts took place between 2014 and 2016.

In 2015, prosecutors said Bradley took out a $2.6 million mortgage against the townhouse without informing investors to pay a personal debt. The funds were obtained through Global Payment Services Limited and Bradley later defaulted on the loan, prosecutors said.

A year later, Bradley attempted to refinance the mortgage with Atlas Union Corp. and First American Title Insurance Co. In July and August 2016, prosecutors said Bradley attempted to finalize a new operating agreement required to get the loan by lying to her investors about the loan's purpose. She also failed to gather all the necessary signatures, prosecutors said.

In late August 2016, Atlas agreed to refinance the existing loans with a loan for $11.5 million to 46 East 82nd Street LLC. To obtain funds, Atlas required Bradley to get written consent from all LLC members.

Prosecutors said Bradley later emailed her attorney the written consent but had forged the signature of at least two LLC members. She signed the loan two days later, prosecutors said.

Additionally, prosecutors said Bradley lied about the status of a second townhouse renovation to convince a Chilean company to give her transmit $500,000 as an investment in the project. Over the next two months, Bradley used the money on personal expenses unrelated to the townhouse project.