New York State Probes Orlando, Fla., Developer for Role in Possible Fraud.
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May 19–An Orlando developer stripped of his builder’s license in Osceola County last month is being investigated in New York state in a possible fraud involving a gated community near Orlando International Airport that authorities say cost investors millions of dollars. Jeffrey Klein is being investigated for his role in what authorities describe as an elaborate Ponzi scheme, which operates by paying earlier investors with money deposited by later investors, since at least 1996. One of the investments was Spring Lake Village near the Orange-Osceola line, where about half of the 71 homeowners filed complaints of late and shoddy work, which resulted in Klein losing his builder’s license in Osceola. New York officials are investigating whether Klein and Niagara Falls financial adviser Richard Muto — who is listed as a director in both Spring Lake Village Inc. and its parent company, Newport Holdings — made false promises of guaranteed profits to up to 300 investors. In all, up to $14 million may be lost. “It’s big,” said Patricia Carrington, the assistant deputy New York… |