A group of investors has filed a lawsuit against First National Realty Partners LLC (FNRP), First National Realty Advisors LLC (FNRA), and several individuals associated with these entities, accusing them of orchestrating a massive Ponzi scheme. The complaint was lodged by the Securities Arbitration Law Group, PLLC on behalf of plaintiffs James May, Anthony Musto, Patricia Thomas, Jonathan Ciangiulli, Abba Kader, Cory Tereick, and Stanley Gruber
The plaintiffs allege that the defendants engaged in a systematic pattern of deception and fraud in connection with their investments in various limited liability companies (LLCs) managed by FNRP. According to the complaint, the defendants violated the Racketeer Influenced and Corrupt Organizations Act (RICO), New York General Business Law § 349, and other laws by conspiring to defraud investors through misleading marketing practices. The lawsuit claims that FNRP executives falsely represented investment opportunities as stable and conservative while secretly overvaluing properties and financing them with variable interest-rate loans. This allegedly left investors with shares in overvalued properties that could not yield promised returns.
The plaintiffs further accuse the defendants of paying illegal commissions to salespersons without proper licensing under SEC Regulation D. They also claim that unauthorized transfers were made to entities owned by the defendants to siphon funds from investor properties. In one cited example involving Summerdale Plaza Realty Fund LLC, an investment touted as conservative resulted in significant losses when sold at a fraction of its purchase price.
The lawsuit seeks several forms of relief from the court: rescission of investments made by plaintiffs in defendant LLCs; disgorgement of all wrongfully collected monies including initial investments and guaranteed returns; injunctions against ongoing deceptive practices; actual damages amounting to at least $12 million; treble damages under RICO provisions; consequential damages; exemplary damages; pre- and post-judgment interest; attorneys’ fees; litigation expenses; costs of suit; punitive damages due to willful misconduct by defendants.
Representing these allegations are attorneys from the Securities Arbitration Law Group led by Mack Press. The case was filed in the United States District Court for the Eastern District of New York under Case ID 2:25-cv-00780.