Federal lawsuit accuses real estate investors of $277,500 fraud scheme

A New Jersey investor has filed a federal RICO suit in New Jersey accusing Amogh Karney, associate Luke Dickinson and related entities of a real estate investment scheme that allegedly took at least $277,500. The complaint says the deals involved foreclosed or disputed properties, backdated agreements and bad checks.

Why it matters: - The lawsuit alleges a coordinated investment fraud that affected real estate transactions tied to multiple properties in New Jersey. - The complaint says the plaintiff sent at least $277,500 and recovered only a fraction of that amount. - The case could test whether the alleged conduct rises to a civil RICO pattern, which can carry treble damages.

What happened: - A New Jersey investor filed a 56-page federal civil RICO complaint in U.S. District Court for the District of New Jersey, Case No. 2:26 cv 08713 EP MAH. - The plaintiff is represented by Nima Ameri of Ameri Law Firm. - The complaint names Amogh Karney, also known as Mo Karney, Lukas Dickinson, identified as Luke Dickinson in the complaint and CEO of Next Level Roofing, and multiple related entities. - The lawsuit alleges the defendants induced investments tied to Brookside Apartments, Park Avenue Apartments, Sunset Village and a related refinance transaction. - The complaint says the transactions were presented through property tours, rent rolls, title and loan documents, operating agreements, property personnel and REIT discussions.

The details: - The complaint alleges Luke Dickinson acted as a buyer, co-investor, finance participant, property participant and REIT participant. - The complaint says Dickinson joined property tours, communicated about acquisitions and finances, and signed Park Avenue-related documents through Dickinson Holdings LLC. - For Park Avenue Apartments, the complaint alleges foreclosure proceedings were already pending, a receiver was appointed on Feb. 7, 2023, and default relief was entered on Feb. 24, 2023 before the plaintiff invested. - For Brookside Apartments, the complaint alleges the property already faced a lender lien, lis pendens, competing investor claims and foreclosure litigation. - For Sunset Village, the complaint alleges another company owned the property when the plaintiff invested and that later ownership disputes followed. - The complaint alleges operating agreements were backdated to March 15, 2023. - Karney allegedly said the dates were needed for REIT tax and ownership purposes, while the plaintiff says the dating concealed foreclosure issues, ownership disputes and lack of transfer authority. - The plaintiff says at least $277,500 was transferred, only $2,376 in distributions was received, and two later checks totaling $6,217.29 allegedly did not clear as payment. - The complaint also says $75,000 was routed through a law firm account. - The plaintiff reported the transactions and bad checks to the Cliffside Park Police Department. - The complaint includes claims for federal civil RICO, RICO conspiracy, fraud, fraudulent concealment, aiding and abetting fraud, civil conspiracy, conversion, unjust enrichment, breach of contract and related causes of action.

Between the lines: - The lawsuit centers on whether the defendants used the appearance of legitimate real estate ownership and financing to secure investor money. - The allegations about tours, documents, personnel and a proposed REIT suggest the plaintiff says the scheme relied on credibility signals, not just promises. - Because the case is newly filed, the allegations remain unproven and have not been adjudicated.

What's next: - The defendants are expected to respond to the complaint in federal court. - The court will decide whether the case proceeds on the RICO and fraud claims and whether the plaintiff can trace and recover the disputed funds. - The plaintiff is seeking losses, treble and punitive damages, restitution, accounting and other relief.

The bottom line: - The lawsuit turns a real estate dispute into a federal racketeering case, with the plaintiff alleging a paper trail of foreclosures, backdated agreements and failed payments hid the true status of the properties.