A real estate developer has been charged and has pleaded guilty to a multi-year investment fraud scheme. Jay Clayton, the United States Attorney for the Southern District of New York, along with Edward Gallashaw, Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (USPIS), announced that Barry Breeman has been charged with defrauding investors who believed they were investing in real estate developments. Breeman entered a guilty plea before U.S. Magistrate Judge Stewart D. Aaron, and the case is assigned to U.S. District Judge Gregory H. Woods.
U.S. Attorney Jay Clayton stated: "As he admitted today in federal court, Barry Breeman stole more than $13 million dollars from dozens of investors. He falsely represented to investors that they were investing in valuable real estate projects, but in reality, Breeman had no connection to these investments and pocketed their money. Breeman’s conduct has led to his conviction, and he now faces serious time in federal prison for his fraud scheme."
Edward Gallashaw from USPIS commented: "Investors placed their trust in Breeman, who devised a scheme to mislead and defraud investors out of more than $13 million. His arrest demonstrates that the U.S. Postal Inspection Service is dedicated to investigating fraud and bringing to justice those who break the rule of law."
The Information alleges that from 2018 through 2024, Breeman solicited investments through false statements and misappropriated funds for personal use instead of developing real estate projects as promised.
Breeman worked as a real estate developer specializing in Latin American projects until 2018 when he began soliciting investments in non-existent projects after facing professional setbacks. He allegedly fabricated investment opportunities by sending promotional materials promising returns but had no authority or connection to sell interests.
During this period, Breeman obtained over $13 million from about 30 investors while using their money for personal expenses rather than development purposes.
Breeman, aged 75 from Tuxedo Park, New York, faces one count of securities fraud with a maximum sentence of 20 years imprisonment.
The prosecution is managed by the Office’s Securities and Commodities Fraud Task Force with Assistant U.S. Attorney Daniel G. Nessim leading the case.