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MANHATTAN--A Manhattan attorney has been indicted on charges of stealing $500,000 from individuals involved in real estate transactions.
Gwenerva Cherry, 50, or Morningside Ave. in New York City, had a firm in the name of Cherry and Marshburn at 305 Broadway, Suite 303. The investigation leading to the indictment revealed that Cherry was well-known in the Harlem area as an expert in removing buildings from Single Room Occupancy (SRO) status and representing clients who wanted to purchase townhouses in need of renovation. The defendant also represented a number of corporations in bankruptcy.
One of these corporations, Rapsil Construction Corp., was in bankruptcy proceedings and attempted to sell off some of its Harlem properties. In the fall of 2005, Rapsil, represented by Cherry, entered into contracts with several prospective buyers, who gave the defendant down payments totaling over $300,000. Cherry deposited those funds into her firm's IOLA account (Interest on Lawyer Account) and allegedly proceeded to steal those funds. Prosecutors said Cherry used the funds to pay office expenses and make payments to other clients.
Among the victims in this scam is a woman who gave the defendant $95,000 as a down payment on a Manhattan Avenue townhouse and a man who gave Cherry $80,000 for a West 140th Street townhouse. Both of these victims lost their money. Many of the victims had known the defendant for many years, either as clients or through other business transactions.
The investigation also revealed that in April 2006, Cherry allegedly received $200,000 from two clients for an alleged real estate investment that never existed. Prosecutors said Cherry told investors that they would be able to invest money in the purchase of a block of apartments in a Brooklyn building. Cheryy had the clients wire money to an account she held in the name of a business she ran independently from the law firm. The defendant claimed that the real estate deal was closing within days and that she needed the money immediately, or the clients would lose the opportunity to invest. The day after the money hit defendant's account, she transferred it to another account and used it to make payments to other clients and to herself.
Cherry has been charged with second and third degree grand larceny and first degree scheme to defraud. 2-27-07
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© 2007 North
Country Gazette
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