Manhattan District Attorney Cyrus R. Vance, Jr., today announced the indictment of Alan Gorelick, 68, for stealing nearly $611,000 from Harway Terrace, a Mitchell-Lama housing complex in Brooklyn. Gorelick is charged with Grand Larceny in the Second Degree and Criminal Possession of a Forged Instrument in the Second Degree.
“Affordable housing in New York is a vital but scarce resource, which must be stewarded with honesty and integrity,” said District Attorney Vance. “This defendant is accused of stealing from not just a residential building, but also from the taxpayers, who subsidize affordable housing through our city’s Mitchell-Lama program.”
The Mitchell-Lama housing program offers affordable rental and cooperative housing to middle-income New Yorkers by providing the building owners with tax abatements and low interest mortgages. The New York City Department of Housing Preservation and Development oversees 132 housing complexes under this program.
Gorelick is the Vice President of Saparn Realty, Inc. (“Saparn”), a real estate management company located in midtown Manhattan. Between 2001 and 2011, Saparn managed Harway Terrace, a Mitchell-Lama residential complex in Brooklyn that includes rentals and limited-equity cooperative units.
According to documents filed in court, starting in approximately December 2006, Gorelick began depositing money entrusted to Saparn as Harway Terrace’s managing agent into the company’s business account instead of the building’s account. The unauthorized deposits included checks provided to Harway Terrace at the closing of an apartment sale, as well as tenants’ rent and maintenance checks. To disguise these unauthorized deposits, Saparn provided Harway Terrace with falsified bank statements that omitted the unauthorized deposits and transfers.
In total, Gorelick is accused of stealing nearly $611,000 from Harway Terrace, and using the stolen money for business expenses and personal expenditures, including dining out, clothing, travel, car leases, charitable contributions, and personal care.
The investigation is continuing.
Assistant District Attorney Om Gillett is handling the prosecution of the case, under the supervision of Assistant District Attorneys Judy Salwen and Archana Rao, Deputy Chiefs of the Special Prosecutions Bureau, and Assistant District Attorney Thomas Wornom, Chief of the Special Prosecutions Bureau. Investigators Matt Winters and Wei Man Tang and Analyst Steve Moran assisted in the investigation of this case. The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Alan Gorelick, D.O.B. 12/31/1945
New York, NY
· Grand Larceny in the Second Degree, a class C felony, 1 count
· Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 9 counts