WILLIAM GRAUSSO, ESQ U.S. Trustee to Investigate for Bankruptcy Fraud Patchogue New York

MAY 3, 2022: FOR IMMEDIATE RELEASE U.S. TRUSTEE TO INVESTIGATE HAMPTON DREAM PROPERTIES, LLC FOR BANKRUPTCY FRAUD The controversial bankruptcy case of Hampton Dream Properties, LLC, filed June 18, 2018 (EDNY Case # 8-18-74000), controlled by Michael O’Sullivan of 24 Wisteria Drive, Remsenburg NY, and allegedly by one of his attorney’s, William Grausso, Esq, a partner of Grausso & Foy, LLP, with law offices located in Patchogue and Riverhead, will be investigated for allegations of bankruptcy fraud if Judge Louis A. Scarcella grants the U.S. Trustee’s Motion to Reopen the case which is returnable on June 16, 2022, at 10:00am.

During a pivotal hearing held on April 28, 2022 the trustee stated, "…unfortunately your honor I think there is very clear evidence that the bankruptcy petition filed was not truthful and accurate, the motion to dismiss was not truthful and accurate.” After the Trustee referred to a sworn affidavit signed by O’Sullivan falsely claiming there was "no other assets” he pointed to a lawsuit filed by Hampton Dream Properties, LLC demanding payment for an unexpired lease that was not disclosed on the bankruptcy petition for real property located at 332 Van Buren Dr, Centerport NY, then continued, "I am very concerned that this is one example and I’m concerned there are numerous others.

I now believe that whether or not there are creditors who have claims to be paid I think the integrity of the court process would require that the case be reopened to at least let the trustee investigate the voracity of those schedules against the information Mr. Patisso has brought to light. I do know that based on the documents that Mr. Patisso produced there is clear documentary evidence that the bankruptcy petition and the Motion to Dismiss were not truthful and accurate and that concerns me.”

Judge Scarcella then stated: "We now have a different set of issues that we have to deal with. We have the former Chapter 7 Trustee coming here and giving us the explanation with respect to reasons to reopen this case. I’ll just mention a very important point, and that goes to the integrity of the court, the integrity of the bankruptcy court system.”

The judge then gave Mr. Mark Cohen, Esq, attorney for debtor Hampton Dream Properties, LLC an opportunity to be heard but he did not deny, object or otherwise oppose any of the addition allegations of bankruptcy fraud examples perpetrated by Michael O’Sullivan with the help of his attorney William Grausso, Esq, alleged by Mr. Patisso, an unnamed creditor, which included dozens of homes not listed on the bankruptcy schedules, approximately $1,000,000 in cash held by Debtor at the time he filed bankruptcy, rental income of approximately $30,000+/- per month, dozens of additional unnamed creditors, and many victims who were ripped off for several hundred thousands of dollars each.

Judge Scarcella then stated, "This is the first time we are hearing very persuasive argument made by [the trustee] as to what did occur here.” I take very seriously the issue of the integrity of the bankruptcy system, the integrity of the administration of the estate, and the integrity of the bankruptcy court - that all resonated with me this morning.

Putting aside Mr. Patisso’s Motion for Reconsideration I have a new set of issues before me thankfully brought to our attention by [the trustee] and that is what I am most interested in addressing.” The Trustee concluded the hearing by stating, "I’m certainly happy to move to reopen this case your honor, to complete an investigation based on the information that has been brought to light by Mr. Patisso and as I said just one, only one reference, out of the numerous documents provided by Mr. Patisso, I think provides documentary evidence that the Motion to Dismiss and the Bankruptcy Petition were not accurate and complete in that the debtor had an agreement of lease, was actively collecting rent at the time, certainly something Mr. O’Sullivan knew and certainly something that was concealed from the Trustee, and again, Mr. Cohen (attorney for debtor) had two go-rounds here your honor, he [Cohen] has the original retention of the filing of the Chapter 11 case….and the Chapter 7 Case.”

Now, Mr. Patisso comes forward, claims he is a creditor, suggest there are other creditors, but again, more importantly, provides documentary evidence of a state court lawsuit commenced by Hampton making reference to a lease…so, there has clearly been a misrepresentation. The level it rises to, I guess we will find out if the Motion is granted and the trustee does his investigation but your honor I get the sense that this case is far from over.” -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Individuals who believed they may have been defrauded after purchasing a home from Michael O’Sullivan or Hampton Dream Properties, LLC should file their complaint online at https://osullivangraussoponzischeme.com.

Tenants renting properties not legally owned by Hampton Dream Properties are not legally required to continue to pay rent and may be able to recover all of past rents. They should also file a complaint on the same whistleblowing website above. Anyone targeted with any threats or harassment by Michael O’Sullivan or William Grausso, Esq. should report the matter to their local county police department while the Federal Investigation is pending.