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Somerville real estate broker charged with embezzlement

Posted by Marcia Dick  August 17, 2010 10:04 AM

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Somerville and Peabody Police yesterday arrested a real estate broker believed to be a flight risk at her Peabody home on several charges, including embezzlement.

Real estate broker, Kandy Farkhanda Shah of 13 Abby Ellen Lane, Peabody, was arrested on a Somerville warrant at 10 a.m. Monday and charged with broker embezzlement, larceny over $250 by false pretense and larceny over $250, said Somerville Deputy Police Chief Paul Upton.

Shah was arraigned late yesterday in Somerville District Court and released. She is expected to come back to court for a pre-trial hearing later this fall, according to a spokesman in the clerk’s office, who could not provide a date for the hearing.

Somerville Police Detective Alex Capobianco since Aug. 3 had been investigating allegations against Shah made by an unidentified man who claimed Shah had embezzled $7,200 from him in a real estate transaction dating back to February 2009, said Upton.

Shah, who is the owner of K Realty at 367 Broadway in Somerville, claimed she was the listing broker of a single-family home in Everett and accepted an offer and down payment from the alleged victim, said Upton, When the deal did not go through, Shah refused to refund the man his $7,200, said Upton.

Capobianco’s investigation revealed that Shah’s real estate license had been suspended earlier this year and that there were several other complaints against her regarding real estate transactions, said Upton. Capobianco and the alleged victim’s attorney made repeated attempts over the past few weeks to speak with Shah, but she refused to come into the police station or return calls, said Upton.

Capobianco sought a warrant for Shah’s arrest since he believed she is a flight risk, said Upton, and asked for assistance from the Peabody Police to make the arrest yesterday morning at Shah’s home.

The Massachusetts Division of Professional Licensure in March 2010 suspended Shah’s broker’s license when they received several complaints that Shah had bilked several people out of thousands of dollars during real estate transactions, said Charles Borstel, spokesman for the agency. As part of the suspension terms, Shah agreed that she would not ever seek real estate licensure in the state again, he said.

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