Alleged Long Island Deed Scammer Defrauded Latino Families In The Hamptons Out of Millions Of Dollars
A Long Island deed scammer promised dream homes in the Hamptons. However, dozens of Latino immigrants were victims of fraud, faced financial ruin and years of broken promises instead.
Who Is Alleged Long Island Deed Scammer Michael O’Sullivan?
Michael O’Sullivan founded Hampton Dream Properties after attending a real estate seminar in the wake of the 2008 financial crisis. His pitch was straightforward: track down homeowners who had abandoned their Hamptons properties after the market collapse, offer them fast cash for their deeds, and then resell those properties to buyers eager for a deal in one of the most expensive real estate markets in the United States.
On the surface, it sounded like a win-win. Struggling homeowners got quick cash. Buyers got a rare shot at Hamptons real estate at below-market prices. And O’Sullivan made a profit in the middle.
But according to more than a dozen lawsuits, what followed were years of alleged fraud, threats, and financial devastation.
How the Alleged Long Island Deed Scammer Pulled Off The Scam
The alleged Long Island deed scammer reportedly traveled as far as North Carolina and South Florida to hunt down distressed homeowners. He would show up with a certified bank check and persuade owners to sign over the deed to their home. At times, O’Sullivan would sometimes get the homes for as little as $15,000 to $25,000.
The scheme allegedly turned predatory when Long Island deed scammer began selling those deeds to new buyers. However, O’Sullivan never paid off or cleared the underlying mortgages. Plaintiffs allege O’Sullivan:
- Sold properties he didn’t legally own.
- Misrepresented title and lien status to buyers.
- Used deeds to take out high-value personal loans.
- Funneled buyer payments into new acquisitions instead of paying off existing debts.
The former associate put it plainly:
“He sort of figured out how to take advantage of it from both ends. Like an evil, f–ked-up genius.”
The Long Island Deed Scammer Targeted Latino Immigrants
Many of the alleged victims the alleged Long Island deed scammer were Latino first-time homebuyers. They also had limited English proficiency. The lawsuits say they were told they didn’t need their own attorneys — a red flag that went unheeded in the excitement of what seemed like a life-changing opportunity.
Diana, a Colombian housekeeper who has lived in the Hamptons for 15 years, paid O’Sullivan nearly $200,000 under a private mortgage agreement and then spent an additional $300,000 rebuilding a home in East Hampton from the ground up. Two years later, she and her husband Mauricio received a foreclosure notice from the Bank of New York Mellon.
For the next seven years, O’Sullivan and his attorneys allegedly assured her the situation was under control. When the property was close to going to auction, he reportedly pushed the couple to file for bankruptcy — twice.
In 2022, O’Sullivan allegedly summoned Diana and Mauricio to a Panera Bread in Hampton Bays. where the Long Island deed scammer slammed what appeared to be a police badge on the table.
He later claimed it was honorary recognition for sourcing PPE during COVID. The couple says they were pressured into signing what turned out to be a short-sale contract, transferring the home back to O’Sullivan’s company. Hampton Dream then sold it to a corporation created just four days earlier and took out a $900,000 mortgage on the property.
Other victims tell equally troubling stories:
- Juan Amon, who had paid over $350,000, was told by East Hampton police that he was not the legal owner of his home.
- Rosa Quituisaca discovered multiple liens on her property — including some tied to O’Sullivan’s own traffic tickets.
- Milton Barrera came home to find a stranger claiming he had purchased the house from the bank.
O’Sullivan’s Defense and the Attorney General Investigation
O’Sullivan insists his business was legitimate. The alleged Long Island deed scammer maintains that buyers were fully aware they were purchasing distressed foreclosure properties. He told the New York Post:
“It was crystal clear from day one that these were foreclosures and they were risky.”
He has also claimed he could have resolved outstanding cases if buyers hadn’t pursued legal action.
The New York State Attorney General has opened a formal investigation into O’Sullivan for deed and mortgage fraud. Just two days before a scheduled deposition in May, O’Sullivan filed for personal bankruptcy. Thus, effectively freezing all active litigation against him.
What Hamptons Homebuyers Should Know
This case is a stark reminder that deed fraud and title scams are real risks, even in high-value markets like the Hamptons. Buyers should always:
- Hire an independent real estate attorney — never rely solely on the seller’s representation
- Conduct a full title search before any money changes hands
- Verify that existing mortgages are resolved prior to closing
- Work with licensed, vetted real estate professionals
If you or someone you know has been affected by deed fraud on Long Island, contact the New York State Attorney General’s office or a licensed real estate attorney immediately.
Legal Disclaimer:
This blog post is for general informational purposes only and is not legal advice. Reading this page does not create an attorney–client relationship. Every situation is different; you should speak with attorney Kevin T. Conway about your specific circumstances at 888-576-2221.