A Long Island developer facing a laundry list of legal action was charged with check fraud.
Suffolk County Police arrested G2D Development Group founder Greg DeRosa on March 23, Long Island Business News reported. DeRosa was charged with check fraud after he allegedly knowingly issued a bad check in June from a bank account that lacked sufficient funds.
Associates and investors have also reportedly been approached by the FBI regarding DeRosa’s business dealings. He could not be reached for comment by LIBN. He is set to be arraigned on Apr. 11.
Legal issues have piled up against DeRosa. At least a half-dozen lawsuits have been filed by business partners and lenders in the last year, claiming he defaulted on payment obligations.
The developer’s financial issues emerged publicly in the fall, when RiverheadLocal.com reported the pause in work on a project in the town.
Last week, an investor in two G2D projects won a $5.42 million default judgment in a case alleging fraud in the purchase and eventual mortgage default of a Huntington office building, according to court records. The investor alleged DeRosa and his wife diverted funds for “personal residences, luxury goods, vehicles, yachts, and other self-serving investments.”
DeRosa formerly served as a principal of Roanoke Sand & Gravel, which supplied the sand used for the concrete in the Freedom Tower in Lower Manhattan.
G2D developments include a 12-unit redevelopment of a former industrial building in Huntington, an 18-unit mixed-use redevelopment of an office building in Hicksville and the $24 million Gateway Plaza project in Huntington Station, which encompassed 64 rental apartments atop 14,000 square feet of retail and office space.
G2D also built a $15 million project with 36 apartments in Riverhead before abandoning work on a $22 million project on Osborn Avenue in the same town.
— Holden Walter-Warner
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