Former real estate broker Farkhanda “Kandy” Tara Shah has pleaded not guilty in her real estate scam case.
Before her arrest, Shah, 61, was both a real estate agent, as well as a licensed mortgage broker who owned K-Realty in Somerville. Both her real estate and mortgage licenses have since been suspended by state officials.
Now, she has been charged with taking more than $200,000 from over a dozen different clients whom she represented. The clients were all potential buyers of “short sale” homes.
Prosecutors released a statement saying that Shah has been charged with embezzlement, felony larceny and being a common and notorious thief. She was indicted by a Middlesex County grand jury.
A spokesperson for District Attorney Gerry Leone stated that Shah had to relinquish her passport in exchange of being released on her own recognizance.
Prosecutors stated that between 2007 and 0209, Shah used deposits made by her clients for her personal, as well as business expenses. These funds are supposed to be kept in a separate business account to avoid “commingling”, or mixing business funds with personal funds.
Since the purchases involved homes with different financial issues, many of the purchase contracts fell through. However, when buyers requested that their deposits be returned they learned that Shah was unable to do so because she had already spent the money.
Shah’s pretrial hearing is scheduled for June 25.
