J
uan Amon purchased a Victorian-style home in East Hampton's Springs section for $800,000 in 2020. The house was his son John's dream home, with multiple floors and an in-ground pool. However, one day last summer, a stranger told the boy that the house didn't belong to them and they had to leave. This threat motivated Amon to contact OLA of Eastern Long Island, which connected him to legal help.

    Amon is among at least 10 families who allege property investor Michael O'Sullivan and his company Hampton Dream Properties defrauded them by selling homes in foreclosure while falsely representing the properties' status. The majority of these families are Latino. Noelle Eberts, a senior supervising attorney, described this case as "brazen and expansive" real estate fraud.

    The families gained a new ally when New York State Attorney General Letitia James' office announced an investigation into O'Sullivan and Hampton Dream Properties for deed and mortgage fraud. This development has paused the eviction proceeding in Suffolk County Supreme Court. Amon's attorney, Oscar Michelen, said his client was misled by O'Sullivan, who hid the status of a pending foreclosure.

    Mauricio Ocampo and Diana Ramirez, another family affected by this case, have spent nearly $1 million on payments to O'Sullivan and renovations to their home in Springs. They claim O'Sullivan lied, intimidated, and threatened them. The couple has enlisted Michelen's help as they fight to stay in their homes.

    Amon first heard about the opportunity to buy a house from a friend who had purchased from O'Sullivan five years ago. He paid an initial $300,000 down payment, over $70,000 in mortgage payments, and at least $280,000 on renovations. However, Amon discovered that O'Sullivan had purchased his home while it was in foreclosure in 2012 and didn't disclose this when selling it to Amon.

    Ocampo and Ramirez have endured a decade of uncertainty, fearing they could lose their home at any moment. They claim O'Sullivan used funds meant to clear the foreclosure to secure a new mortgage on the property. The couple's lawsuit includes additional attorneys and lenders as defendants.

    The attorney general's investigation has brought hope to the families involved, but the experience of the past decade has left them wary of what's to come. Minerva Perez, executive director of OLA of Eastern Long Island, believes that people and institutions are taking this case seriously.