A Forest Hills home in Queens that was once owned by two brothers convicted in a major counterfeiting case is now headed for a federal auction, more than two decades after they bought it for $850,000.
asserted
they → own → 850,000
, the five-bedroom property at 110-37 69th Ave. is scheduled to be sold online on October 23, with bidding starting at $900,000.
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bidding → schedule → 900,000
The 3,572-square-foot house became entangled in federal forfeiture proceedings as authorities pursued the brothers' involvement in a racketeering conspiracy involving counterfeit US currency and money structuring.
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authorities → become → currency
The home the brothers bought in 2003
Eduard and Arkadiy Bangiyev purchased the Forest Hills property in 2003 for $850,000, using a $750,000 mortgage, according to a 2023 ruling by the US Court of Appeals for the Fourth Circuit.
uncertain
Bangiyev → buy → Circuit
The house, built in 1930, sits on a roughly 5,000-square-foot lot.
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house → build → lot
It has five bedrooms and 4½ bathrooms, along with an enclosed porch, finished basement, additional bedroom and bathroom, sauna and detached two-car garage.
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It → have → porch
More than 20 years after the brothers purchased it, the property is being offered at a starting price only $50,000 above what they originally paid.
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they → purchase → what
But the house's journey from a family residence to a federally auctioned property is tied to a much larger criminal case.
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journey → auction → case
How the property became connected to a counterfeiting operation
Beginning in 2004, the Bangiyev brothers participated in a criminal enterprise involved in manufacturing and distributing counterfeit US currency, according to federal prosecutors and court records cited by Realtor.com.
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brothers → connect → Realtor.com
The operation produced counterfeit notes in Israel and the US and moved them into the country, including shipments concealed inside containers carrying machinery.
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operation → produce → machinery
At its height, the organisation was reportedly bringing as much as $3 million in counterfeit currency into the US every three months.
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organisation → bring → US
Federal authorities ultimately linked the operation to more than $80 million in counterfeit currency that was passed or seized around the world.
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that → link → world
The brothers were involved in financing and distributing the counterfeit money.
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brothers → involve → money
They also operated businesses in the jewellery and gold industries, including a retail jewellery store on Long Island and later a gold-refining business in Manhattan's Diamond District.
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They → operate → District
Both brothers eventually pleaded guilty in January 2015 to participating in a RICO conspiracy involving counterfeiting and money structuring.
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brothers → plead → counterfeiting
The brothers were later sentenced to federal prison, and their plea agreements also required them to forfeit property connected to or derived from their racketeering activity.
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agreements → sentence → activity
The Forest Hills house later became part of the broader forfeiture dispute.
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house → become → dispute
The property had another complicated legal history
The home's legal problems did not end with the counterfeiting case.
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problems → have → case
According to the Fourth Circuit, a federal district court found that money used to pay off the property's mortgage and home-equity lines of credit in 2012 came from a separate scheme in which the brothers allegedly defrauded a jewellery customer of $1 million.
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brothers → accord → million
The appellate court noted that this alleged fraud was separate from the RICO conspiracy for which the brothers were later convicted.
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brothers → note → which
The government had already initiated civil-forfeiture proceedings involving the Forest Hills home and another property in 2009.
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government → initiate → 2009
That earlier case was dismissed in 2011 after the brothers and their sister, Ilana Bangiyeva, agreed to a $662,500 settlement.
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brothers → dismiss → settlement
Ownership then became the subject of another legal fight following the brothers' convictions.
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Ownership → become → convictions
Years of dispute over who owned the home
Before the convictions, the deed divided ownership among family members.
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deed → own → members
Arkadiy held one-third, their sister held another third, while Eduard and his wife, Irina Alishayeva, jointly held the remaining third.
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Eduard → hold → third
Ilana argued that she had acquired interests in the home and other assets using proceeds from a gold investment she had made with her brothers.
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she → argue → brothers
Courts rejected that argument, finding that there was not enough evidence to show the claimed investment had generated the money used to acquire the properties.
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investment → reject → properties
A district court ultimately determined that the Forest Hills property provided a “source of influence” over the brothers' racketeering enterprise and ordered it forfeited.
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it → determine → enterprise
The government eventually obtained a two-thirds ownership interest, while Alishayeva retained one-third.
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Alishayeva → obtain → third
A federal judge initially allowed Alishayeva, whose primary residence was the property, to remain there for the rest of her life as long as she remained married to Eduard.
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she → allow → Eduard
That effectively prevented the government from selling its majority interest.
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That → prevent → interest
The government challenged that decision.
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government → challenge → decision
In 2023, the Fourth Circuit sided with the government, ruling that the lower court had exceeded its authority by preventing the government from exercising the property rights attached to its two-thirds ownership stake.
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court → side → stake
The appeals court vacated that part of the forfeiture order and sent the matter back for further proceedings.
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court → vacate → proceedings
Home now headed for federal auction
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Home → head → auction
The long legal battle has now brought the Forest Hills property to the auction block.
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battle → bring → block
The US Treasury Department is scheduled to conduct the online auction on October 23.
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Department → schedule → October
Bidding will begin at $900,000, and prospective bidders must provide a $150,000 deposit to participate.
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bidders → begin → deposit
The property is being sold “as is.”
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property → sell → ?
Public inspections are scheduled for October 11 and October 18 before the auction.
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inspections → schedule → auction
…and 4 more, not listed.
The Aporia
