Feds probe Paterson tax lien sale | Paterson Times

Feds probe Paterson tax lien sale


The city’s $1.8 million tax lien sale conducted last month is being probed by federal authorities. An FBI investigator visited City Hall last week to obtain documents related to the sale, according to municipal officials.

Some had raised questions about the tax sale three weeks ago. Councilman Kenneth Morris questioned business administrator Nellie Pou about the tax lien sale during a public meeting on May 29.

Morris asked whether a certified tax collector conducted the sale. Pou reassured him everything was done according to procedure.

“Who conducted that sale?” asked Morris.

“Our tax collector,” replied Pou. She said the city has an interim tax collector, who conducted the sale on May 17.

Morris asked whether the interim tax collector was certified and licensed.

“We have a tax collector that’s certified and licensed,” said Pou.

The city’s longtime tax collector Kathleen Gibson retired last year. Morris asked for the name of the person, who conducted the sale. The city hasn’t hired a full-time tax collector to replace Gibson. Instead, the role has been filled by someone working part-time.

Pou at the meeting did not name the interim tax collector.

In its newspaper advertisement for the tax lien sale, the city listed Sonia Schulman as the certified tax collector, who would conduct the sale.

Municipalities are required by the state to conduct an annual tax lien sale. Investors buy the liens to collect interest or foreclose after two years.

The city’s chief attorney Domenick Stampone confirmed to the Paterson Press that investigators visited City Hall last last Thursday to secure documents from the tax collector’s office.

Stampone on Wednesday morning said an agent from the FBI’s Woodland Park office requested the public documents showing list of buyers and those who participated in the sale. He said there was no subpoena or warrant. Anyone can request those documents from the city, he noted.

Stampone cautioned on the use of the word “investigation” to describe the public records request.

“The proper legal process for conducting the sale was done by the tax collector’s office,” said Pou on May 29 when Morris raised questions about the sale.

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  • Plumber

    tax lien sale in Paterson are full of shit, Paterson has their choice groups of investors who have first picks prior to opening to the public, the house next door to me was sold by a tax lien sale last year from under me, I was always interested in buyer this property, I can reach out my kitchen window and literally touch this house, I was never inform of this sale, when I went down to city hall and asked why none of the neighbors around this house were not inform of this up coming sale, no one could answer me, but florio was quietly inform because he purchased this house as a result of a tax lien sale that no one knew about, inside job crooked ass paterson

    • Charles Florio

      Plumber once again you say lies. What tax lien did I purchase “with a inside job” you are a moron there were two public auctions In which I purchased city owned real estate. #1 feb 2016 I purchased the rights to foreclose the Tax liens from the city of Paterson. 2 years later I still do not have all of the property.

      #2 a few months ago at yet another open public auction I purchased city property

      Both auctions I purchased at were open auctions and heavily advertised by multiple local papers and auction companies. I have never purchased a back door deal. The truth is plumber your a moron who states half truths which is always the best lie! Get your god dam facts straight before mentioning my name to make you relevant.

      • Paterson Pulse Paterson Pulse

        Plumber if the FBI is looking in the right place and the right documents he should be worried. Yes, as the article said he is a "Slum Lord" many reports of him getting property to capitalize on the Section 8 programs. Paterson residents calling me that he is kicking them on the street and many court charges to show he is not keeping up the appartments conditions, only fixing it for the money, they said.
        "Every evil deed, will come to light."

        • Charles Florio

          Crazy man how is Dallas treating you? I’m patiently waiting for your return.