A former Vornado Realty Belief leasing government who as soon as managed a few of Occasions Sq.’s splashiest signage is staring down a jail sentence as a substitute.
Jared Solomon was found guilty on all counts in his federal fraud trial, capping five days of proceedings that peeled again what prosecutors described as a yearslong scheme to siphon tens of millions from the actual property funding belief. The decision got here rapidly — jurors deliberated for about 90 minutes — and U.S. District Decide Loretta Preska ordered Solomon taken into custody instantly, citing issues he posed a flight threat.
The federal government’s case hinged on a easy however profitable setup: whereas working in Vornado’s leasing division, Solomon allegedly created a trio of sham brokerage companies that operated on the alternative facet of his personal offers. He then steered commissions to these entities, billing his employer for that work. In complete, Solomon pocketed roughly $9.5 million, based on prosecutors.
Prosecutors argued he used the proceeds to bankroll a high-end way of life, together with multimillion-dollar houses in Westchester and on the Higher East Aspect, together with luxurious perks like a Porsche and membership to an unique nation membership.
The protection, in the meantime, tried to border the association as undisclosed however reliable outdoors brokerage work. That argument took a hit mid-trial when prosecutors revealed Solomon had beforehand admitted throughout a proffer session that one of many key entities, Margoux Media, was not an actual firm and that he falsified paperwork tied to it.
These contradictions undercut the protection’s opening declare that “there’s no pretend firm,” and gave prosecutors a gap to painting the scheme as deliberate deception reasonably than an business grey space.
Witness testimony strengthened that narrative. Vornado leasing head Glen Weiss informed jurors he had no motive to suspect Solomon was successfully on each side of offers, saying, “I trusted Jared Solomon.”
Among the many property tied to the scheme was the high-profile digital billboard at 1540 Broadway, the place Solomon allegedly performed dealer for landlord and tenant alike.
Solomon, who spent greater than a decade at Vornado, now faces a most sentence of 13 years. Sentencing is scheduled for Aug. 4.
The case lands as a cautionary story for broker-adjacent roles inside main landlords, the place blurred traces round commissions and facet offers can rapidly veer into felony territory — particularly when the paper path doesn’t maintain up.
If we held a TRD draft for the most effective New York Metropolis tales from the ultimate full week of April, these are the articles that will hear their names referred to as.
“Bags of cash”: Steven Ostad accused brothers of exclusion and mismanagement
Steven Ostad sued his older brothers, Michael and Edward, for allegedly excluding him from their joint actual property portfolio and lending enterprise.
Steven claims that Michael and Edward skimmed rental revenue, which was typically acquired as “baggage of money,” to maintain off the books and artificially deflate property values.
Attorneys for Michael and Edward denied the claims, calling the lawsuit a “baseless” try to seize money.
Michael Stern seeks to unmask anonymous “smear campaign” operator
JDS Growth Group founder Michael Stern filed a petition in New York State Supreme Court docket to establish the nameless operator of a web site, JDSPulse.com, and affiliated social media accounts, which he claims are waging a “coordinated and sustained nameless smear marketing campaign” towards him and his agency.
The web site and social media accounts accuse Stern of being a “convicted felon” and working a enterprise “constructed on deception, solid paperwork, and monetary manipulation” — claims Stern calls “demonstrably and categorically false.”
Stern is asking the court docket for permission to subpoena firms like Meta, X, Cloudflare, Namecheap and Google to unmask the nameless poster, whose actions have allegedly strained investor relationships and been cited in separate litigation.
Roosevelt Island hotel lender looks to claw back $77M
ACRES Capital is suing an affiliate of AJ Capital Companions for over $79 million after the Graduate by Hilton resort on Roosevelt Island ceased operations.
The lawsuit stems from the resort defaulting on a $76.5 million mortgage from ACRES and having its 65-year floor lease terminated by Cornell College.
The bottom lease termination triggered a full recourse warranty, permitting ACRES to hunt the complete mortgage worth from the AJ Capital fund entity, the corporate argues.
Developers scoop up site at center of Brooklyn rezoning fight
A trio of builders acquired an assemblage at 962 Pacific Road and the adjoining property at 863 Dean Road that was as soon as on the middle of a contentious rezoning battle.
The three way partnership plans to construct a mixed-use challenge per town’s newly-approved Atlantic Avenue Blended Use Plan.
Avery Corridor and Brodsky will lead the event, whereas Monadnock will function the overall contractor; Maxim Capital Group supplied the acquisition mortgage.
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