Thursday, May 11, 2006

Solomon Dwek Arrested

The Asbury Park Press reported that Solomon Dwek was arrested this morning “and accused of scheming to defraud PNC Bank of $50 million, according to the FBI.”

This story is going to be interesting from a couple of different angles in the coming weeks. Although it looks like Dwek allegedly tried to defraud PNC Bank, I’m guessing that PNC is going to come under scrutiny for apparently accepting such a large check. In the context of the national housing bubble, questions should naturally arise as to just how willing many banks have become during the boom to accommodate customers flashing big real estate portfolios. I don’t know if PNC actually lent Dwek any money, but I would think an important relationship already existed between them if Dwek thought he could make a $25 million deposit.


From another angle, what will become of the Dwek houses? Before we jump to the wrong conclusion, it seems possible that Dwek owns the houses legally and therefore none of the houses will have to be put up for sale. Also, Dwek’s rich uncle may end up being the rightful owner, which might mean that there does not have to be a fire sale liquidation that could severely damage the property market in Ocean. If the bank ends up being the owner though, then a less orderly liquidation of Dwek’s portfolio could be forthcoming. In any event, we do not know the full story yet. In the meantime, a look at the MLS shows that there are 247 houses for sale in Ocean Township. According to the APP, Dwek owns 48 properties (commercial too) in Ocean Township. It seems likely that whether the homes are owned legally, or were obtained through some fraudulent means, that many, if not most of the houses will eventually be placed back on the market adding to the already high supply in Ocean.

Plenty of people have posted to the comment section what they know about Dwek, which is a lot more than I know. For important information about this story be sure to read all of the comments.

9 Comments:

Blogger njcoast said...

One of his proerties MLS # 10056457m in West Allenhurst already put in the listing- Title is impaired. Sale subject to court approval. The house was purchased in late 2005 for $1,225,000. with furnishings. Put right back on the market for $1,499,000. Went under contract but it evidently fell through because it is back on the market for $1,549,000. Dweck has a $1,050,000. mortgage on the property.

Thursday, May 11, 2006 7:52:00 PM  
Anonymous Anonymous said...

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Friday, May 12, 2006 12:35:00 AM  
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Thursday, May 18, 2006 4:31:00 AM  
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Thursday, May 18, 2006 4:38:00 AM  
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Thursday, May 18, 2006 4:43:00 AM  
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Thursday, May 18, 2006 4:44:00 AM  
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Thursday, May 18, 2006 4:48:00 AM  
Anonymous Anonymous said...

The FBI should out an ankle bracelet on this guy before he pulls a "Crazy Eddie" and flees the country!

Friday, May 19, 2006 8:47:00 PM  
Anonymous Anonymous said...

You guys obviously don't know Mr. Dwek. He definitly did not intend any criminal action. As to an explanation of apparent facts, we all have to sit back, and wait. The truth always prevails.

Sunday, May 21, 2006 1:35:00 AM  

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