R
osa Quituisaca, a mother of four from Ecuador, bought an East Hampton home in 2022 for $475,000 from Michael O'Sullivan. However, she soon discovered that the deed had never been filed properly and there was an undisclosed mortgage against the house. Now, she faces foreclosure and may lose her down payment and renovations totaling nearly $175,000.

    Quituisaca's case is one of several alleged real estate scams targeting Latino immigrants in the Hamptons. Since 2016, at least 17 buyers have sued O'Sullivan for fraud or breach of contract, with over half being Latino. Some buyers waited years for deeds that were never filed, while others were unaware their properties were in foreclosure.

    Maribel Gomez, president of the Long Island Hispanic Bar Association, said O'Sullivan preyed on the Latino community due to language barriers. "It made it that much easier for him to do what he did," she stated.

    O'Sullivan's attorney, David Besso, claimed buyers came through referrals and real estate agents seeking below-market deals and were warned of foreclosure risks. However, many plaintiffs signed affidavits acknowledging those risks after the fact.

    New York Attorney General Letitia James is investigating O'Sullivan for allegedly selling properties to vulnerable immigrant buyers while concealing information on existing liens, mortgages, and foreclosures. A Suffolk County Supreme Court judge has halted an eviction proceeding pending the investigation.

    Quituisaca's friend, Juan Marquina, who alerted her to potential issues with her deal, is now one of the buyers suing O'Sullivan after purchasing a home that was in foreclosure. The house went to auction but failed to attract a buyer and will be taken back by the lender.

    OLA of Eastern Long Island has been fielding complaints about O'Sullivan's real estate dealings since 2020. Erika Padilla, a legal advocate at the nonprofit, warned a Latina woman not to buy from O'Sullivan after finding a 2015 article about a couple who said they'd bought a house from him and were later evicted.

    O'Sullivan founded Hampton Dream Properties in 2013 and focused on buying foreclosed homes cheaply and reselling them. He aimed to clear titles, but many buyers say he sold homes before resolving foreclosures, resulting in auctions to other buyers. O'Sullivan acknowledged making mistakes, failing to satisfy mortgages in at least three cases.

    Buyers said they trusted O'Sullivan because of his association with Lourdes Alban, a real estate agent who allegedly steered them to Hampton Dream Properties. Several families are suing O'Sullivan and Alban, alleging they were defrauded and targeted due to language barriers.

    A Suffolk County Supreme Court judge halted an eviction pending a response from the company that bought the house at auction. Oscar Michelen, an attorney representing several buyers, said the momentum is shifting in their favor as O'Sullivan will have to answer questions under oath.