Former Tulsa Apartment Complex Owner Indicted On Federal Fraud Charges

Monday, August 31st 2020, 9:29 pm
By: Erick Payne

TULSA, Okla. -

The former owner of Ivy Place Apartments in Tulsa faces federal fraud charges Monday.

In February, Ivy Place residents had their water cut off by the city because the owner owed $23,000 in unpaid water bills.

41-year-old Michael Fein of Israel is now indicted for wire and bank fraud, accused of getting $28 million in fraudulent bank loans.

Fein has been under investigation for several months for how his company treated residents, not just at the Tulsa complex, but complexes in St. Louis and Kansas City as well. The indictment was filed in Missouri.

Resident Steve Kendall said living at Ivy Place is much better now.

"A lot of good changes, the new people who are running this now are really great, they've cleaned the place up, they've gotten rid of a lot of the troublemakers. The property is kept up immaculate," Kendall said.

That's a lot different than back in February when residents had their water cut off and the city had to bring a tank of water for the people to use until the owner paid the bills. Even the property manager seemed at a loss for words back then, on a phone call with city leaders.

City: "So when we cut them off, that's when it's going to start getting real, I guess, huh?"
Property Manager: "Yes, and maybe that's what they need to make payments"
City: "The owner?"
Property Manager: "Yes."

The indictment against Michael Fein said he lied when refinancing to get a $7.7 million loan for Ivy Place.

It said he told lenders Ivy Place was nearly 97% full, when it was 67% full. It said he also inflated the property's income statement.

U.S. Attorney Tim Garrison said Fein and his companies "defrauded several financial institutions, illegally enriching himself even as he provided substandard living conditions for his low-income tenants."

Tenants in Tulsa said they're just grateful things here have improved.

"This is an old complex, but they're bringing the pride back. This used to be the Cadillac of Tulsa at one time," Kendall said.

TV stations in Missouri are reporting Fein is overseas right now. That means the U.S. Marshals would take over.