A clever, but simple mortgage fraud scheme
using chutzpah and conspiracy

By HEINZ DINTER, PhD

Obdurate is a descriptive opener. Stubbornly persistent in wrongdoing is a sickness which drags the victim into the abyss and lets the wrongdoer drive a shiny Mercedes luxury sedan unless and until the authorities with sufficient eyesight, oomph, and integrity take the appropriate action. In the meantime, they play their game of pocket lining and fainaigue their way out of repaying the huge sums they borrowed based on wildly inflated, immoral  appraisals.

 

The purpose of this article is threefold:
      • Open the reader's eyes on the evil of real estate mortgage fraud and the devastating impact such fraud can have on the economic well-being of the American taxpayer and the stability of the American economy. This awareness must be strong and objective to cause action by appropriate authority to stop such plunder and bring wrongdoers to justice.
      • Save the Coconut Grove Playhouse in Miami's Coconut Grove, once a highly acclaimed cultural institution now at the brink of collapse, which needs us citizens to step into the fray to save the Playhouse from real estate developers whose track record raises a red flag. Careful scrutiny of Gino Falsetto's dealings with the nonprofit's volunteer members of the board of directors is a must.
      • Serve the public good with my knowledge — the long-term acquaintance with those developers/promoters and having witnessed first-hand their disrespect for honesty and fair play, and their use of influence peddling to boot. We must bring the truth to light.
                                       A personal note and commitment
      My documenting the misdeeds of real estate developers/promoters Pierre Heafey and Gino Falsetto, and member of The Florida Bar Dennis Bedard, in the service of my neighbors at the Hilton Doubletree Grand condominium complex in Miami and the public for well-nigh a quarter century triggered six lawsuits all of which I successfully defended because every word I ever wrote was true and continues to be true to this day. As is well known and eventually prevails in all such confrontations, the truth is an absolute defense.
      Then trickery, misrepresentations, lies, and perjury committed by Pierre Heafey turned the court against me and opened the flood gates of revenge: punishment of $1,000 for each day that I publish anything relating to the Heafey-Falsetto-Bedard troika, their relatives and associates in violation of the 8th Amendment of the United States Constitution. The erroneous court ruling (erroneous because it is based on false testimony) does not give anyone the right to silence and muffle my defense exposing the troika's motives for silencing me and inflicting harsh vengeance.
      Pierre Heafey's ill-intended accusation that I have "absolutely no respect for the court or its rulings" is just one example of the troika's desperate attempt to smear my character. Judges Joseph Farina, Ronald Friedman, Jon Gordon, Robert Kaye, and Stuart Simons can testify otherwise. As to the court's March 7, 2013 order, no citizen enjoying the protection of the Constitution is required to blindly respect a court ruling which is the result of false testimony and conspiracy.
      Would I have published the following articles in Grand Lifestyle with disrespect for the court dominating my soul?
            A Judge To Respect. The Man To Look Up To
            On Life's Experience: Law and Role Model
            Voice Of Compassion
            We Must Reach Further Back
            More Recognition of Authority and More Emphasis on Commitment
      And here is what Pierre Heafey and Gino Falsetto think of our court:
            Notice of Voluntary Dismissal.
      Res ipsa loquitur!
      My conscience will no more close my eyes when wrongdoing causes pain to others than when the threat of economic ruin constitutes flagrant abuse of legislation dictating appeal to a higher court of authority.
      My book, Truth Will Come To Light Whilst Judge Wilts, tells the story and is available at www.Amazon.com. The FREE eBook edition is available if you click here.
      The truth I am reporting here may raise your eye brows, but will do little ("nothing" is a better term) to bring wrongdoers to justice. That objective can only be reached through the efforts of duly authorized law enforcement channels and culminate in our courts of law.
      Let us not forget, a statement made without supporting evidence is a falsehood; and he who's desperate in hiding the truth is a dishonest human being.
      Saving the Coconut Grove Playhouse continues high on my list of service to the community, and cooperating with those better able to deal with a problem shall continue to be honored.
      Those who carefully read what I have written about the troika's doings are not members of the camp accusing me of stalking respected businessmen. Reporting the truth is not stalking.
      My reporting has had little impact except, perhaps, the $800,000 fine paid to the United States by Pierre Heafey's Canadian company following my report of selling Grand condo units to Canadian citizens in a tax shelter scheme (and which would rob the Grand homeowners of peace-of-mind living) concocted by Pierre Heafey. Instead it has turned my life, devoted to bringing the truth to light, into a quagmire.
      As long as I am, too, a victim of the troika's lying and bribing in and out of the court of law I must not hide the wrongdoers' identity and must vigorously expose their motives in defense of their lynch mob mentality.

 

Mathematical finance in action

We offer here a case study in mathematical finance recommended for students at Harvard and the Wharton School guaranteed to earn each an "A" if each step is carefully applied. This case study is not recommended for eager entrepreneurs in the Donald Trump School of Higher Achievement because The Donald may frown a bit and fire you.

There are, however, two most serious aspects lurching behind the curtain:

(1) the ugly aspect of mortgage fraud and conspiracy to defraud which threatens the stability of our economy and, in the case of government-sponsored enterprise involvement, steals from all taxpayers;

(2) the real-life case discussed here has a direct connection to the Coconut Grove Playhouse in Miami's Coconut Grove whose return to prominence in the world of culture is in serious jeopardy caused by Gino Falsetto's yet to be carefully and thoroughly audited financial dealings with the Playhouse's board of directors and politicians.

 

A fictitious example of this type of mortgage fraud explains how this scheme, including the use of conspiracy, works:

 

The Basic Steps To Become a Million Dollars Richer Without Hard Work

Steps 

Description 

He Gave 

He Received 

Step 1 

Swap something worth $300,000 for vacant land valued at $100,000 but worth much more if development plans come to fruition, and assign a value of $1,000,000 to the transaction 

$300,000 

$800,000 

Step 2 

Have an appraiser value the land at $1,000,000 based on the transaction in Step 1 and obtain a 70% mortgage loan 

 

700,000 

Step 3 

Don't repay the loan, go into foreclosure, and lose the vacant lot 

800,000 

 

Step 4 

An intimate business partner buys the lot at the foreclosure auction for $180,000 

 

 

Step 5 

Using a quitclaim deed, buy the lot from the partner for $200,000

200,000 

800,000 

Step 6 

Summary: 

$1,300,000 

$2.300,000 

Step 7 

Net Gain: $700,000 cash and $800,000 real estate for a planned development less $300,000 for the condo and $200,000 to buy the land from the partner

 

$1,000,000 

The above is a fictitious demonstration of how cleverness and conspiracy can result in great, easily acquired wealth at the expense of an innocent third party — oftentimes the general public/tax payers.

 

The real deal

To help the reader follow the chain of events more easily and not get entangled in the corporate identity labyrinth (a popular scheme often employed to dodge the long fingers of the law), we will refer at all times to the real principles and point to the corporate camouflage with a numerical identifier.

Well, here we go on this mathematical adventure excursion.

Gino Falsetto (1) developed the Grove Garden Residences condominium in Miami’s Coconut Grove.

With his eyes on the financially strapped, closed Coconut Grove Playhouse for acquisition and development into a commercial complex, he aimed for the two vacant lots behind the theater. These two lots totaling 10,620 square feet, zoned single-family residential are located at 3227 and 3247 Charles Avenue in Coconut Grove.

The deal sounds wonderful. The sellers of the two lots took title to two Grove Garden Residences condo units which financial whiz Gino arbitrarily (but with an eye on the next step) valued at $500,000 each — that’s one million dollars for two overgrown lots that generate no income, not even legitimate parking fees.

Gino Falsetto (2) is now the proud owner of real estate abutting the Coconut Grove Playhouse and promptly secures a $700,000 mortgage loan. After all, the two lots overgrown with weeds are worth a million smackers. Right?

What about the bank? They want to get their money back, don’t they? But Gino Falsetto didn’t repay and the bank initiated foreclosure proceeding just 21 months after they had filled Gino’s pockets with $700,000.

Gino Falsetto didn’t put up a fight and didn’t deliver an offer to make good on his loan obligation. Why should he? Gino's no fool. The judge handed down a final judgment of $720,546.28; and the two empty lots were picked up by Pierre Heafey (3) for $200,100 in the foreclosure auction.

Just nine months later, Pierre Heafey sold the property to Gino Falsetto (4) with a quitclaim deed for $215,800. Please note, it's now a different company that owns the property, but still in the hands of Falsetto. Is it to fool the creditor, the bank that handed Gino $700,000 and got back $200,100? Does the IRS not tax such windfall profits? Perhaps they don't know what's happening here.

Not bad for a day of hard work by an immigrant who came to this country with empty pockets some 20 years ago and in one single transaction stuffed his pockets with close to half a million dollars in cash and is now the proud owner of Coconut Grove real estate worth plenty if the ramshackle Coconut Grove Playhouse is torn down to make way for developer Gino Falsetto’s dream at the expense of the people of Coconut Grove, Miami’s cultural history, and Coconut Grove’s African-American heritage.

Would it be inappropriate and downright rude to mention that this type of escapade of pocket-lining is only one selected from a list of others that help Gino Falsetto stuff his pockets with cash and leave the banking institutions in a quandary trying to explain to their investors why they let themselves get screwed?

Thirteen real estate mortgage foreclosures against Gino Falsetto in Miami and spanning three years give testimony to the Québécois real estate wheeler-dealer's modus operandi. Oh yes, and then there are private investors and others who placed their trust and money into Gino Falsetto’s slippery hands.

 

(1)    Aries Development Group LLC/Gino Falsetto, Manager

(2)    3247 Charles LLC/Aries Management & Development LLC, Manager/Gino Falsetto, Manager

(3)    Heagrand Inc/Pierre Heafey, President

(4)    3227 Charles LLC/Aries Management & Development LLC, Manager/Gino Falsetto, Manager

Source: Miami-Dade County and State of Florida public records

 

Let us summarize the scheme in table form:

 

How Gino Falsetto and Pierre Heafey moved in on the Coconut Grove Playhouse with a clever real estate acquisition scheme and, in addition, lined their pockets

Steps 

Description 

He Gave 

He Received 

Step 1 

Falsetto swaps 2 condos worth $419,050 for vacant land valued at $87,615 but worth much more if development plans come to fruition, and assigns a value of $1,000,000 to the transaction 

$419,050 

$800,000 

Step 2 

Falsetto has an appraiser value the land at $1,000,000 based on the transaction in Step 1 and obtains a 70% mortgage loan 

 

700,000 

Step 3 

Falsetto does not repay the loan, goes into foreclosure, and loses the vacant lot. The final judgment is $720,546.28 

800,000 

 

Step 4 

Heafey, an intimate business partner, buys the lot at the foreclosure auction for $200,100

 

 

Step 5 

Using a quitclaim deed, Falsetto buy the lot from Heafey for $215,800

215,800 

700,000 

Step 6 

Summary: 

$1,434,850

$2,200,000 

Step 7 

Net Gain: $700,000 cash and $800,000 real estate for a planned development of the Coconut Gove Playhouse complex less $419,050 for the condo and $215,800 to buy the land from Heafey

 

$765,150 

The above is a factual report of how cleverness and conspiracy can result in great, easily acquired wealth at the expense of an innocent third party — oftentimes the general public/tax payers.

 

 

The outline in red depicts a tantalizing real estate developer's dream of a mega condo complex:
1 — Playhouse, 2&3 — Vacant Lots, 4 — E.W.F. Stirrup House, 5 — Grove Garden Residences
Condominium, 6 — Regions Bank, 7&8 — Vacant Land, 9 — Two-Unit Residence,
10-12 — One-Family Residences, I (green) — Bridge Across Charles Avenue.
To the left of Main Highway: A historic African-American neighborhood of single family homes.
To the right of Main Highway: Beautifully landscaped multi-million-dollar homes.

 

 

 

 

A historical marker in front of the vacant lots 2&3 and the historically significant E.W.F. Stirrup House.

 

 

The Heafey-Falsetto-Bedard troika benefits from apathy

Other Transactions of Interest
Ο Pierre Heafey picked up the following condo units at Gino Falsetto's Grove Garden Residences condominium complex:
Unit 206 for $179,100 (assessed/market value $227,530)
Unit 302 for $287,700 (assessed/market value $446,560)

Unit 405 for $234,700 (assessed/market value $295,370).
Ο Stunning move by Florida Bar member Dennis Bedard: he had previously purchased unit 206 at the Grove Garden Residences for $100 that was lost in foreclosure by a man who had paid $800,000. Now Bedard loses the unit in foreclosure and gets hit with a $506,172.49 final judgment, but keeps what he had borrowed from the lender).
Pierre Heafey buys the unit at the foreclosure auction for $179,100.
Ο Officer of the court Dennis Bedard was hit with three (3) mortgage foreclosure actions in a two-year time span exceeding $1,000,000.
Ο Nathalie Heafey, daughter of multi-millionaire Pierre Heafey, was hit with three (3) mortgage foreclosure actions in a one-year time span exceeding $1,000,000.
Ο More details are here.
A detailed investigation of the above transactions will open eyes in disbelief.

We introduced you to the Gino Falsetto shenanigan, backed up and financed by Pierre Heafey, a story of unbelieving chutzpah and stunning thievery.

Let us not fool ourselves. The Falsetto-Heafey swindle, desperately attempting to find protection in the court of law under the obsessive tutelage of attorney Dennis Bedard, cannot be classified as pot-valiant — brave only as a result of being drunk — because there must not be apathy when it comes to thievery. Of course, it can safely be assumed that any drunkenness of the players here, it's the Heafey-Falsetto-Bedard troika, is not alcohol related. Obsessed with avarice is considered by many an evil sickness not easily cured with calls for abstinence. You will find more details by clicking here.

Let's review the vacant lots' stunning history

Long-time Coconut Grove residents George and Dazelle Simpson were the owners of the two lots. It should be noted that Dazelle is a proud descendant of E.W.F. Stirrup who built the historically well-recognized E.W.F. Stirrup House and began the historically well-documented ascent of Bahamian immigrants to African-American prominence and proud heritage of Coconut Grove. George and his wife Dazelle are very prominent retired physicians who continue to make their home in the Grove.

The E.W.F. Stirrup House is not for sale because Mr. Stirrup stipulated that this property remain forever a Stirrup property. That did not keep rapacious developer Gino Falsetto away; he entered into a 50-year lease with the Stirrup family. That lease agreement, kept hidden and under lock and key, will shed even more light on Falsetto's dream of the neighborhood's real estate development. What happened next is documented in great detail by blogger Headly Westerfield who in great detail documents immoral "demolition by neglect." Reading his blog sheds a bright light on Gino Falsetto, especially his latest blog entry titled

Is Gino Falsetto Breaking The Law Again?
► A Charles Avenue Update
.

In July 2007, the Simpsons sold the two lots to Gino Falsetto (title was taken in the name of 3247 Charles LLC). As payment, Falsetto handed over two condominium units (#304 and #403 at the Grove Garden Residences) and valued each unit at $500,000 in the transaction.

Falsetto promptly secured a mortgage loan on the two vacant lots (let us be reminded they are residential lots totaling just 10,620 square feet) in the amount of $700,000 based on the "market value" of $1,000,000 Gino had concocted when he "purchased" this piece of barren land, home of stray cats and rats, for one million dollars. (How dumb were those bank officers who approved this wild loan? Perhaps pockets were lined to secure this dumbfounded windfall and negates any thought of inferior or missed education.)

In April 2009, less than two years later, the bank could no longer wait for Gino Falsetto to repay what he owed and filed a foreclosure lawsuit.

In January 2010, the bank's attorneys walked out of the Miami courthouse with a final judgment in the amount of $720,546.28.

What will happen next? Will Gino Falsetto pay what he owes? One's honesty and integrity is normally judged by one's conduct in the past. A review of developer Falsetto's curriculum vitae and a careful review what this immigrant from Quebec funneled into his bulging pockets and failed to return those he swindled provides a blunt, though sad answer. How much are you willing to loan to or invest in Gino Falsetto?

The climax of this financial drama will shock you

In December 2010, Pierre Heafey purchased the two lots for $200,100 at the foreclosure auction and took title in the name of one of his many companies, Heagrand Inc.

In September 2011, Gino Falsetto purchased the two lots from Pierre Heafey's Heagrand Inc. for the sum of $215,800 and took title in the name of yet another of Falsetto's companies, this time the honor goes to 3227 Charles LLC. As an aside, it's worth commenting on the incredible flexibility and value of our corporation laws. They add additional challenges to the IRS when it comes to tracking the flow of monies. They also serve a useful purpose when it comes to fooling creditors, especially those who are either very naive or infested by crooked employees.

Immediately the following question arises: What did pauper Falsetto use for money to purchase the two lots from Heafey? Remember, he couldn't pay the bank that loaned him $700,000 (and that money was not used to purchase the parcels; two condos did that trick). Surely, Pierre Heafey didn't accept an IOU; such financial instruments do not create massive wealth. Perhaps the bank that was fleeced the 700 grand, better yet, the bank's stockholders should ask that question. Will they?

What's the bottom line?

Amorality + Avarice + Apathy = Abuse

Simple arithmetic reveals and documents for all to see the details and extent of Gino Falsetto's plunder, aided and abetted by Pierre Heafey.

The moral of the story

Inasmuch as we have learned of the many more financial stunts of the Québécois developer and his landsman and "partner in crime" Pierre Heafey, would it surprise you to learn — would you be astounded is a more appropriate tag line — that the Gino Falsetto and Pierre Heafey escapades will fill tomes. And they will as time goes by.

Naive minds — so very poorly informed or driven by ulterior motives — question our reportage: Why do you say such ugly things about successful entrepreneurs — one creating a chain of well-known restaurants in Canada and then developed the multi-use condominium complex known as Grove Garden Residences, and his mentor and lord master, having risen from most humble beginnings to amassing wealth climbing close to the one billion dollar pinnacle?

The answer is simple and easy to understand: We report the truth and nothing but the truth. The ugly aspect of what is being reported is that of, and only of those, who are the originators of these facts.

There's a clincher to the story presented here: It is simply the tip of the iceberg. Don't believe if we tell you here that there are more, much more stories to tell which in mathematical terms reach into the millions — wait for the horrifying truth to be published and any beliefs you may have entertained turn into cold reality.

Then, and perhaps only then, will you understand why Pierre Heafey and Gino Falsetto must never get control of the Coconut Grove Playhouse and surrounding properties. It will spell doom for the Playhouse and its historical significance in the world of culture. And it will destroy Coconut Grove's African-American heritage. More details are being reported here.

Let us add one additional observation so understandingly uttered more than 2,000 years ago by Cicero:

When money is unreasonably coveted,
it is a disease of the mind which is called avarice.

 

Pierre Heafey and Gino Falsetto must serve the people of Coconut Grove

Let  us make one thing crystal clear: We renew our commitment to serve the people of our community until this noble goal is reached: Pierre Heafey and Gino Falsetto will return Coconut Grove to the people with the following actions:

  1. Cancel any and all obligations by The Coconut Grove Playhouse, Inc.

  2. Donate the two vacant parcels of land at 3237 and 3247 Charles Avenue in Coconut Grove to The Coconut Grove Playhouse, Inc.

  3. Cancel the lease for the property at 3242 Charles Avenue, Miami, FL 33133, known as the E.W.F. Stirrup House.

We shall not waver in our resolve come hell or high water — The Coconut Grove Action Forum.

The cultural history and African-American heritage of Coconut Grove are in danger! Join the fight.

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