A 69-year-old woman named Regine Norman, also known as Regine Ellis, was sentenced to up to seven years in prison for her role in a fraudulent real estate auction scheme. This scam, which lasted several years, led her to steal nearly $1 million from nine victims. The sentencing, which occurred in the Brooklyn Supreme Court on Wednesday, marked the end of a long investigation into her deceitful activities.

The Elaborate Scam: Pretending to Buy Cheap Properties

Regine Norman’s scheme was both calculated and deceptive. She falsely claimed to be a member of a private real estate auction group, a supposed organization that had exclusive access to discounted properties in Brooklyn. Using this story, she convinced her victims that she could purchase these properties on their behalf, at prices far below market value. The allure of buying property in a booming real estate market like Brooklyn, especially at a discount, was enough to persuade her victims to part with significant sums of money.

Norman requested that her victims wire her the funds needed for the down payments on these properties. She assured them that once the auction was complete, they would own valuable real estate in one of New York City’s most desirable boroughs. However, instead of using the money as promised, she pocketed the funds, leaving her victims with nothing but empty promises.

How She Tricked Her Victims: Fake Contracts and False Assurances

Norman’s scheme was particularly effective because she went to great lengths to make it seem legitimate. Between 2018 and 2021, she managed to deceive nine people into believing that they were making wise investments in Brooklyn’s real estate market. To maintain the illusion, Norman created and presented her victims with fraudulent contracts of sale. These contracts appeared authentic and even included forged signatures from the actual property owners, making it difficult for her victims to detect the fraud.

In addition to the fake contracts, Norman manipulated her victims by telling them they were part of an exclusive group. She warned them not to speak to anyone else involved in the auction process, claiming they lacked authorization since they weren’t official members of the private group. This tactic effectively isolated her victims, preventing them from seeking advice or uncovering the truth about the scam.

The Truth Unveiled: A Nonexistent Auction Group and Nonexistent Properties

The truth about Regine Norman’s scheme began to unravel as authorities dug deeper into her activities. Investigators discovered that the auction group she claimed to be part of, NY Private Auction Inc., was entirely fictitious. This organization never existed, and the properties she claimed to have access to were never available for purchase.

Norman’s scheme began to fall apart as some of her victims grew suspicious and started demanding their money back. In an attempt to keep her scam going, Norman resorted to using funds stolen from newer victims to “refund” earlier ones. This tactic, known as a Ponzi scheme, allowed her to repay some victims while continuing to deceive others. Despite these efforts, seven of her nine victims never received any money back.

The Outcome: Guilty Plea, Sentencing, and a Warning from Authorities

After being indicted in 2021, it was revealed that Regine Norman had managed to return only $306,000 of the approximately $1.3 million she had stolen. This left more than $900,000 still outstanding. Faced with overwhelming evidence against her, Norman pleaded guilty to six counts of second-degree grand larceny and three counts of third-degree grand larceny earlier this year.

On March 27, Norman was sentenced to a prison term ranging from three-and-a-half to seven years. In addition to her prison sentence, the court ordered her to pay $842,000 in restitution to her victims, though it remains uncertain whether they will ever fully recover their lost funds.

DA Warns Against Fraudulent Auction Deals After Brooklyn Woman Sentenced in $1 Million Scam

Brooklyn District Attorney Eric Gonzalez, who oversaw the case, expressed satisfaction with the outcome, stating that the court had delivered justice. He used the case as an opportunity to caution others about the dangers of investing in too-good-to-be-true real estate deals. Gonzalez emphasized the importance of thoroughly vetting individuals and companies before entrusting them with significant sums of money, particularly in an industry as complex and risky as real estate.

In his statement, Gonzalez highlighted the greed that fueled Norman’s actions. “The defendant sought to take advantage of Brooklyn’s rising real estate values to steal money from investors,” he said. “I would caution individuals to carefully consider with whom they invest their savings.” This case serves as a stark reminder that even in a booming market, not every deal is legitimate, and due diligence is essential to avoid falling victim to fraud.