BUYER BEWARE!!!!!!!
AN ANALYSIS OF THE BUSINESS PRACTICES OF FRANK R. PARLATO JR. AND HIS REAL ESTATE CORPORATION
Complied by Councilmember David A.Franczyk and County Legislator Gregory B.Olma
Researched & Written Andrew T. Rusiniak & Michal Kuzma
Photo’s Andrew T. Rusiniak
Housing issues are a big concern on the East Side of Buffalo and in the 5th Legislative District in general.

In 1997 Greg Olma joined forces with Buffalo City Councilman David Franczyk to investigate Frank Parlato, Jr. and the various corporations set up by Mr. Parlato. This site contains a full-text version of that report. Scroll down for the entire report or click on any of the indexed sections listed below.
Frank Parlato’s method of operation Frank Parlato Jr.’s Corporations Erie Development, Inc.
City of Buffalo Building Permits
Foreclosures
Parlato’s Negative Effect On Ruhland Avenue (including photo’s of various properties)
An interview with Parlato employee, Mike Niman
An interview with Parlato customer, Dorothy Bobb
An interview with Parlato Customers, Joseph & Teressa Doodigan
An interview with Parlato customer, Rudolph Lewis
An interview with Parlato customer, Roosevelt Showers
An interview with John Harezga, the person who sold a property to Parlato

FRANK R. PARLATO JR’S METHOD OF OPERATION

STEP 1 – THE PURCHASE: Frank R. Parlato Jr. scours the real estate listings in search of homes to purchase. He usually searches in neighborhoods that are beginning to experience declining property values, increased rates of crime, and a dwindling sense of community. These neighborhoods are beginning to worsen, but are not totally undesirable, yet. Properties for sale in these neighborhoods are for the most part-owned by the elderly. These elderly individuals are usually looking to relocate to the suburbs, to escape the blight and decline that appears to be inevitable for their neighborhood. Unfortunately, they are willing to sell their homes for only a fraction of what they should receive. Parlato offers to purchase their homes for an extremely deflated price and in desperation they accept.

STEP 2 – MARKETING THE PROPERTY: For the most part, Frank R. Parlato Jr. doesn’t do much to prepare the property for resale. The homes he buys are usually in acceptable condition, with some exceptions. The homes may need a couple of repairs, but Parlato usually chooses not to perform these repairs. The only improvements that Parlato usually performs is the addition of some fresh paint or maybe a new carpet. These types of improvements are visually pleasing and give the prospective buyer a feeling that the home is in decent condition. Repairing the plumbing or electrical system in the home doesn’t make sense to Parlato, because these repairs go virtually unnoticed at the time of sale. After Parlato has completed the minimal preparation of the home to make it visually presentable, it is ready for sale. Parlato runs an ad in the Buffalo News classified section that advertises a home, “Rent to Own”. Each home is listed according to location, such as “East Side”, “Lovejoy”, or “Cheektowaga”, to name a few. After each listing, there is a dollar amount representing what the prospective buyer can expect to pay each month. These figures can range from $300.00 to $600.00. On occasion, Parlato places a “Rent to Own” sign in front of the property as well.

STEP 3 – THE SALE: Individuals begin to contact Parlato’s real estate office about the properties advertised. Frank R. Parlato Jr. himself or a representative of his company shows the prospective buyer a home from Parlato’s current stock. The first home that Parlato shows to the prospective buyer is not always the home that the individual will end up purchasing. The original home displayed is an above-average Parlato home that he may keep in his possession for a while to entice prospective buyers into doing business with him. After a prospective buyer appears to show some enthusiasm about doing business with him and is excited about becoming a homeowner, Parlato breaks the news to the prospective buyer that they cannot afford the home that was originally showed to them. Parlato then reassures the customer that he will find them a home that is more suited to their price range. Parlato then shows the customer a home with less value and appeal, possibly in a more deteriorated neighborhood of the city. But the customer usually accepts this second home, because they are already excited about the prospect of homeownership. After the customer makes the decision to purchase the home, Parlato begins to “herd” his customers through the home buying process.

STEP 4 – PROCESSING THE SALE: Parlato works with and refers his customers to certain mortgage lenders on a regular basis. For the most part, Parlato customers are automatically approved for a mortgage with these lenders. In some cases, it is only necessary for the customer to go to the lender’s office to sign the proper paperwork. If a formal application is necessary, and the customer has credit problems, Parlato offers to help the customer clear up the credit problems. He usually accomplishes this by offering to pay off any debts that the customer may have. Very often though, these customers do not have the financial means to successfully hold a mortgage, and a short time after purchasing the home, they find themselves in poor financial condition once again. Lending institutions such as Countrywide and The United Bank of Texas enjoy dealing with Parlato’s real estate company because he brings them volume business and because the mortgages are guaranteed by the U.S. Department of Housing and Urban Development. There is virtually no risk to the mortgage lender since the federal government guarantees the mortgage. If the homeowner defaults on the mortgage, the federal government will suffer the financial consequences. Furthermore, the federal government doesn’t send out their own real estate appraiser to determine the value of a property before it guarantees the mortgage, because it is no longer required to as a result of deregulation. The federal government accepts the appraisal of an outside real estate appraiser hand-picked by Parlato. As a result, Parlato can ask an absurd price for a home as long as he has his licensed appraiser back him up. After the customer has obtained their mortgage, it is time to close on the property. Parlato may “help” his customer once again by providing a closing attorney for them. Parlato’s acquaintance, Russell Perla is an attorney that has been known to provide legal representation for Parlato’s customers at closing time. It is unfortunate that these home buyers go into the closing session with legal representation that may have the seller’s best interests in mind instead of theirs.

STEP 5 – HOME OWNERSHIP: Many of those that have purchased homes from Parlato, find that homeownership is not as easy and inexpensive as they originally thought. First, the homes that Parlato sold to them have begun to deteriorate fast and are in need of major and expensive repair. Now, these homeowners may have to pay a contractor to make repairs to their home, that they cannot afford. Many of these homeowners have no choice but to go without the necessary repair. Some of them call Parlato’s office hoping to get some action, but the most they may ever receive is a visit from an unqualified repairman that makes the problem worse. Second, many of Parlato’s customers begin to experience trouble making their monthly mortgage payments. It was explained to most of Parlato’s customers that their mortgage was a fixed-rate mortgage. However, in some cases the monthly mortgage payment has increased as controlling interest in the mortgage has changed hands. This makes it very difficult for these homeowners to budget their money effectively. In other cases, the customers that Parlato helped obtain mortgages never had the financial resources to be homeowners in the first place. As a result, many of these properties are foreclosed on by the mortgage lender, who in turn puts a claim into the U.S. Department of Housing and Urban Development for the amount of the unsatisfied mortgage, plus interest and penalties. In the end, the people with the dream of homeownership no longer own their homes and their credit rating is worse than ever. Furthermore, the U.S. government pays an overinflated price for an unwanted piece of property, in a deteriorating neighborhood. For an unterminated amount of years after that, taxpayers will pay to maintain and inevitably demolish the home.

FRANK R. PARLATO JR.’S CORPORATIONS
Frank R. Parlato Jr. began to purchase and sell property in the City of Buffalo during the early 1980s. He originally purchased the properties under his own name, Frank R. Parlato Jr., and under a business name, Parlato Enterprises Inc. The certificate of incorporation of Parlato Enterprises Inc. was filed with the Erie County Clerk’s office on September 2 1, 1982 at 9:48 a.m. It was filed with the State of New York Department of State on August 23, 1982. The corporation’s office address was listed as 1868 Niagara Falls Blvd., Tonawanda, New York 14150. Under the names Frank R. Parlato Jr. and Parlato Enterprises, Parlato was successful in purchasing and selling approximately 220 properties in the City of Buffalo. Approximately 22 of them were located within the boundaries of the Fillmore District. The majority of these properties were purchased and sold between the summer of 1983 and the fall of 1987. A small amount of these properties were sold at later dates, during the late 1980s and early 1990s. Most of the real estate transactions under the names Frank R. Parlato Jr. and Parlato Enterprises occurred between 1983 and 1987.

In 1986, Frank R. Parlato Jr. began to use a new corporation name, First Builders Corp. The certificate of incorporation of First Builders Corporation was filed with the Erie County Clerk’s office on November 18, 1986, at 11:08 a.m. It was filed with the State of New York Department of State on October 20, 1986. The corporation’s office address was listed as 192 Grant St., Buffalo, New York 14213. Under the name First Builders Corp., Parlato purchased and sold approximately 145 properties in the City of Buffalo.

Approximately 14 of these properties were located within the boundaries of the Fillmore District. The majority of these properties were purchased and sold between the fall of 1987 and the spring of1989. Others were sold at later dates.
In 1988, Frank R. Parlato Jr. began to use another new corporation name, Franklin Enterprises Inc. The certificate of incorporation of Franklin Enterprises Inc. was filed with the Erie County Clerk’s office on October 25, 1988, at 9:38 a.m. It was filed with the State of New York Department of State on August 15, 1988. The business address was listed as 192 Grant St., Buffalo, New York 14213. Under the name Franklin Enterprises Inc., Parlato purchased and sold approximately 340 properties in the City of Buffalo. Approximately 80 of these properties were located within the boundaries of the Fillmore District. The majority of these properties were purchased and sold between the fall/winter of 1988 and the spring of1995.

In 1995, Frank R. Parlato Jr. created his current corporation name, Erie Development Inc. The certificate of incorporation of Erie Development Inc. was filed with the Erie County Clerk’s office on April 10, 1995, at 10:30 a.m. It was filed with the State of New York Department of State on April 18, 1995. The business address was listed as 192 Grant St., Buffalo, New York 14213. Parlato’s residential address of 209 Sweet Briar Rd., Tonawanda, New York 14150, was also listed on the certificate of incorporation. Under the name Erie Development Corp., Parlato purchased and sold approximately 80 properties in the City of Buffalo. Approximately 30 of these properties were located within the boundaries of the Fillmore District. The majority of these properties were purchased and sold between the summer of 1995 and the present day.

Frank R. Parlato Jr. may have also used the corporation’s name, Ellicott Enterprises Inc., but a certificate of incorporation was not available at the time of this report. It is my belief that Parlato used the name Ellicott Enterprises Inc. between December 1993 and December 1995. Ellicott Enterprises Inc. purchased and sold approximately 76 properties in the City of Buffalo, approximately 27 of them within the boundaries of the Fillmore District.

ERIE DEVELOPMENT INC.
Under the corporation’s name Erie Development Inc., Frank R. Parlato Jr. purchased and sold approximately 80 properties in the City of Buffalo. Approximately 30 of these properties were located within the boundaries of the Fillmore District. The first property purchased by Parlato in the Fillmore District was 64 Sweet Avenue. Parlato purchased this property on June 26, 1995, for $17,750. On September 6, 1995, Parlato sold this property to Teny Jones for $34,900. Parlato turned a profit of$17,150 after only possessing the property for just over 2 months.

Parlato’s business practice of buying properties at a low price and selling them for an overinflated price continued in the Fillmore District for the next couple of years. He sold the properties within months of acquiring them and he turned an enormous profit.

Address Purchase Date Purchase Price Date of Sale Selling Price
206 Loepere 9/20/95 $12,500 1/31/96 $29,900
75 Loepere 5/20/96 $9,000 7/30/96 $29,900
131 Playter 7/25/96 $8,250 11/14/96 $32,000
63 Ashley 5/2/96 $12,500 7/2/96 $36,900
16 Goodyear 3/8/96 $7,400 4/10/96 $31,900
68 Liddell 11/15/95 $10,500 7/22/96 $36,900
49 Liddell 12/27/95 $15,000 1/26/96 $34,900
249 May 3/29/96 $7,000 6/21/96 $34,900
94 Swinburne 5/22/96 $14,000 7/25/96 $34,900
56 Rother 8/4/95 $8,500 11/16/95 $29,900
77 Loepere 7/16/96 $12,500 11/15/96 $34,000
145 Lombard 7/16/96 $12,000 9/13/96 $34,900
16 Geneva 4/15/96 $15,000 8/15/96 $27,000
60 Liddell 11/9/95 $13,500 3/6/96 $34,000
127 Burgard 4/11/96 $11,000 5/31/96 $34,900
85 Woltz 6/24/96 $12,000 9/24/96 $32,900
189 May 11/7/96 $5,000 2/7/97 $36,000
161 Kosciuszko 7/19/95 $9,000 2/9/96 $25,500
285 Woltz 8/18/95 $9,000 9/27/95 $29,900
18 Goodyear 9/22/95 $14,000 9/27/95 $29,900
81 Bryson 8/9/96 $11,000 9/20/96 $32,900
115 Shepard 10/2/95 $17,000 12/29/95 $35,900
118 Playter 12/22/95 $15,500 4/24/96 $34,900

In the Fillmore District, Frank R. Parlato Jr. and his Erie Development Inc. turned a profit of approximately $572,200 between the summer of 1995 and the present day. That is an average of approximately $21,193 per home. He sold all but one of the properties that he purchased in the Fillmore District. To this day, Parlato still owns 79 May St. He purchased this property on 12/10/96, for $9,000. Parlato also sold 75 Quincy St. for $37,900 and 41 Titus St. for $34,500. Erie Development’s purchase price for these two properties was unavailable at the time of this report. Parlato almost never applies for City of Buffalo building permits, which implies that he didn’t make any major improvements to the properties. Therefore, Parlato sold the properties in roughly the same condition that he purchased them in. How can Frank R. Parlato Jr. explain or justify the enormous profit made on these properties when few improvements had been performed? Parlato’s Erie Development Inc. is now purchasing and selling property in other areas of the City of Buffalo. The Lovejoy District, University District, and North District have become Erie Development’s latest targets. Parlato has also began to operate in the Town of Cheektowaga.

In the Fillmore District, Frank R. Parlato Jr. and his Erie Development Inc. turned a profit of approximately $572,200 between the summer of 1995 and the present day. That is an average of approximately $21,193 per home. He sold all but one of the properties that he purchased in the Fillmore District. To this day, Parlato still owns 79 May St. He purchased this property on 12/10/96, for $9,000. Parlato also sold 75 Quincy St. for $37,900 and 41 Titus St. for $34,500. Erie Development’s purchase price for these two properties was unavailable at the time of this report. Parlato almost never applies for City of Buffalo building permits, which implies that he didn’t make any major improvements to the properties. Therefore, Parlato sold the properties in roughly the same condition that he purchased them in. How can Frank R. Parlato Jr. explain or justify the enormous profit made on these properties when few improvements had been performed? Parlato’s Erie Development Inc. is now purchasing and selling property in other areas of the City of Buffalo. The Lovejoy District, University District, and North District have become Erie Development’s latest targets. Parlato has also began to operate in the Town of Cheektowaga.

CITY OF BUFFALO BUILDING PERMITS

The City of Buffalo requires that an individual or a corporation apply for a building permit if the work to be done to the property will cost in excess of $750.00. This includes any electrical work, plumbing work, additions, and/or renovations. In all the years that Frank R. Parlato Jr. purchased and sold properties in the Fillmore District, he almost never applied for any building permits. When he actually did apply for a permit, it was usually only one permit for either building, electrical, or plumbing work. Out of the approximately 146 properties that Parlato purchased and sold in the Fillmore District, he only applied for building permits at 10 addresses.

Address Permint Type Corporation Name
23 Ruhland Plumbing Franklin Enterprises
18 Gibson Electrical Franklin Enterprises
121 Gibson Electrical Franklin Enterprises
123 Playter Building Franklin Enterprises
131 Playter Electrical Franklin Enterprises
160 Clark Building Erie Development
272 Loepere Electrical Franklin Enterprises
282 Loepere Electrical Franklin Enterprises
230 Lathrop Building Franklin Enterprises
318 Sobieski Building & Electrical Franklin Enterprises

Frank R. Parlato Jr. may have made repairs and/or renovations costing more than $750.00 at the 10 properties listed above, but what about the other 136 properties located in the Fillmore District that he purchased and sold? Either Parlato didn’t improve the other properties in any way or he did so without applying for a proper permit. If he didn’t improve the properties in any way, shape, or form, then how can he justify making such an enormous profit on each property in such a short amount of time? If he indeed made improvements to each of the properties but didn’t apply for the proper building permit, how can he justify that?

FORECLOSURES
An employee of Frank R. Parlato Jr. was once quoted as saying, “Parlato is giving people the dream of homeownership.” If this was true, why did over 25% of all properties that Parlato sold in the Fillmore District end up in foreclosure? Out of the 146 properties sold by Parlato in the Fillmore District, 37 of them have been foreclosed on by the U.S. Department of Housing and Urban Development. In other words, approximately 1 out of 4 Parlato customers with the dream of homeownership are now without homes of their own.
The following is a list of properties in the Fillmore District that were sold by Parlato and have been foreclosed on by the U.S. Department of Housing and Urban Development. Click on any highlighted address to view a picture of the property.

129 Hirschbeck 21 Koons 65 Koons 74 Koons 251 Person 47 Titus 25 Ruthland 29 Ruhland 33 Ruhland 76 Oberlin 510 Goodyear 527 Goodyear 37 Gittere 53 Gittee 199 Titus
102 Bissell 41 Howlett 36 Gibson 74 Gibson 86 Gibson 235 Clark 201 May 127 Burgard
380 Curtiss 272 Loepere 306 Loepere 25 A St. 51 B St. 55 B St. 144 Box 84 Hannonia 127 Baitz 25 Kosciuszko 230 Lathrop 1003 Fillmore 28 Townsend 183 Townsend 53 Gittere 235 Clark

AN INTERVIEW WITH PARLATO EMPLOYEE – MIKE NIMAN
The following is the result of an interview with Mike Niman, an employee and consistent supporter of Frank R. Parlato Jr.
* Frank R. Parlato Jr. does in fact use the business names, Erie Development & Franklin Enterprises.
* Parlato has purchased and sold 500 homes in the City of Buffalo.
* A mortgage cannot be obtained on many of the houses that Parlato sells. Therefore, it is a cash business for the most part.
* Parlato invests approximately $5,000 into each house he acquires.
* Parlato does purchase most homes for $7,000 to $15,000 and sells them for around $35,000.* Parlato claims to turn down about 99% of the prospective buyers that attempt to purchase a home from him.
* Parlato claims that it is difficult to find qualified buyers.
* Parlato claims that there are no U.S. government dollars involved with his business.
* Parlato claims to have sold properties to only 9 problem individuals out of500.* Parlato has improved his screening process and has stopped using unlicensed contractors ever since a disgruntled Mike Niman wrote an incriminating article against Parlato. Niman supports Parlato once again.
* Parlato claims that the foreclosure rate of properties he has sold is close to normal. He also claims that the U.S. Department of Housing and Urban Development has looked over his activities and they have given him a clean bill of health. * Parlato is giving people the “dream” of homeownership.

Mike Niman also wrote an investigative piece that was highly critical of Mr. Parlato. The complete text of that piece can be found by clicking here.

AN INTERVIEW WITH PARLATO CUSTOMER – DOROTHY BOBB Interview Date:
September 24, 1997
Frank R. Parlato Jr. (using the corporation name Franklin Enterprises Inc.) purchased 66 Ruhland Avenue from Daniel & Emilia Przywuski on August 6, 1991, for $15,000. Parlato then sold the property to Dorothy M. Bobb on May 5, 1995, for $27,000.

Ms. Bobb stated that she originally made contact with Parlato’s real estate company after she saw an advertisement in the Buffalo News classified ads that advertised a home, rent to own. Frank R. Parlato Jr. acted as a representative for Franklin Enterprises Inc. and he was the individual that showed her the home at 66 Ruhland Avenue.

Ms. Bobb purchased the property from Parlato for $27,000, with an initial deposit of$1,500. Ms. Bobb’s mortgage was handled through Empbanque Capital Corporation and was represented by Parlato and the lender as a fixed-rate mortgage. This however was not the case. Ms. Bobb’s original mortgage payment with Embanque Capital Corp. was $311.00 per month. Shortly thereafter, Chase Manhattan Bank acquired Ms. Bobb’s mortgage and increased the payment to $340.00 per month. Finally, Marine Midland Bank took control of Ms. Bobb’s mortgage and the payment increased to $361.00 per month. Furthermore, it was never explained to Ms. Bobb that her mortgage was guaranteed by the U.S. Department of Housing and Urban Development.

At the time that Parlato showed 66 Ruhland Avenue to Ms. Bobb, he implied that improvements had been performed on the home. However, in the time that Parlato owned the property, he did not apply for any City of Buffalo building permits. This implies that he did not perform any major repairs on the property in the time that he owned it. According to Ms. Bobb, it appeared that the only improvement to the property was a freshly painted front porch. Unfortunately, the porch was painted with a glossy finish and when it was wet, Ms. Bobb slipped and fell on the slippery surface. Shortly after Ms. Bobb moved into the home, the furnace stopped working. Parlato sent a workman to the property to investigate the broken furnace. The workman took her thermostat (which he has never returned) and installed an electric space heater which ignited her living room carpet on fire, a short time later. Ms. Bobb further states that her front porch has many rotten boards, her roof has developed water leaks, and the electric ceiling fan in her living room ignited on fire one evening. Ms. Bobb has spent approximately $700.00 repairing the faulty electrical system in the home.

At the time that Ms. Bobb purchased 66 Ruhland Avenue, she was renting a home at 54 Fosdick Street in the City of Buffalo. She had never been a homeowner before purchasing the home from Parlato. Ms. Bobb did not have a full or part-time job at the time of purchase but was receiving a limited income of Erie County SSI benefits. Ms. Bobb did not have any past credit problems, but I do not believe that she was in the greatest of financial conditions to be purchasing a home from Parlato at his inflated price and at what turned out to be a non-fixed rate mortgage.
Ms. Bobb would never purchase a home from Parlato again and would not recommend his real estate company to anyone.

AN INTERVIEW WITH PARLATO CUSTOMERS – JOSEPH & TERESSA DOODIGAN
Interview Date: October 29, 1997
Frank R. Parlato Jr. (using the corporation’s name Erie Development) purchased 63 Ashley Street from John Harezga on May 2, 1996, for $12,500. Parlato then sold the property to Joseph & Teressa Doodigan on July 2, 1996, for $36,900. The Doodigans originally made contact with Parlato’s real estate company after they saw an advertisement in the Buffalo News classified ads that advertised a home, rent to own. James Parlato & Robin Milbrand both acted as representatives for Erie Development Inc. and were the individuals that showed the Doodigans the home at 63 Ashley Street.

The Doodigans purchased the property from Parlato for $36,900, with an initial deposit of$1,300. The Doodigans’ mortgage was handled through the United Bank of Texas, based in Houston, Texas. The lender does have a branch office on Main Street, in the Village of Williamsville. The United Bank of Texas still holds controlling interest in the Doodigans’ mortgage to the present day. Furthermore, it was explained to the Doodigans that their mortgage was guaranteed by the U.S. Department of Housing and Urban Development.

Buffalo building permits. This implies that Parlato either didn’t perform any major improvements on the property or he did so without the necessary building permits. According to the Doodigans, Parlato did perform improvements to the home. He converted the home from a two-family home to a one-family home, he added a bathtub to the upstairs bathroom, and he put in a laundry room on the second floor. Furthermore, he added an electric ceiling fan to the living room and installed a space heater.

However, these “improvements” didn’t improve the property, because Parlato’s workmen performed substandard work. First, to install the bathtub plumbing, Parlato’s workmen cut a couple of main support beams in the wall. Second, there is now a hole in the floor of the upstairs bedroom where the wiring was installed for the living room fan. Third, the vent pipe from the top of the laundry room’s new hot water tank is not properly secured. Finally, the space heater placed between the living room and the dining room is not sufficient to heat the entire house. Parlato’s workmen do not appear to be skilled or licensed. If they do possess City of Buffalo contractor’s licenses, they should be revoked.

At the time that the Doodigans purchased 63 Ashley Street, they were renting a home at 98 Gelston Street in the City of Buffalo. They had never been homeowners before purchasing a home from Parlato. Both Joseph and Teressa held full-time jobs at the time of purchase, but they did have some credit problems. Parlato offered to help the Doodigans satisfy their debts so that they could go forth and purchase the home from him.

When the Doodigans decided to purchase 63 Ashley Street, Parlato suggested that they use Russell Perla as their closing attorney. According to the Doodigans, Perla is an acquaintance of Parlato and used to spend fair amounts of time at Parlato’s office at 192 Grant Street. It appears to be in Parlato’s best interest for his customers to use his friend as their closing attorney. Furthermore, when it came time for the Doodigans to seek out a mortgage company, Frank’s be other James Parlato already had a mortgage approved for them at the United Bank of Texas.

The Doodigans didn’t even have to apply, they just went to the branch office in the Village of Williamsville and signed the necessary paperwork. Parlato’s system of selling homes “herds” potential buyers through the home buying process so fast that they don’t know they are being ripped off and underrepresented.

An interesting twist to the Doodigans’ story is that both of them were once employed by Parlato. In the mid-1980s, Joseph Doodigan performed home improvements for Parlato, and his wife Teressa worked in the office. Both of them left Parlato’s company because of the unethical business practices taking place there. The Doodigans thought that they knew enough about Parlato, that they could avoid getting shammed by him when purchasing a home. Unfortunately, they were wrong.

AN INTERVIEW WITH PARLATO CUSTOMER – RUDOLPH LEWIS
Interview Date: September 24, 1997
Frank R. Parlato Jr. (using the corporation name Erie Development Inc.) purchased 115 Shepard Street from Norris Dean Ruhland on October 2, 1995, for $17,000. Parlato then sold the property to Rudolph Lewis on December 29, 1995, for $35,900. Mr. Lewis stated that he originally made contact with Parlato’s real estate company after he saw a Parlato sign on the front lawn of 115 Shepard Street. Both Frank R. Parlato Jr. and his father Frank R. Parlato Sr. acted as representatives for Erie Development Inc., and they were the individuals that showed Mr. Lewis the home at 115 Shepard Street.

Mr. Lewis purchased the property from Parlato for $35,900, with an initial deposit of $2,000. Mr. Lewis’s mortgage was handled through Countrywide Inc., based in Simi Valley, California. Countrywide still holds controlling interest in Mr. Lewis’s mortgage to the present day. Furthermore, it was never explained to Mr. Lewis that his mortgage was guaranteed by the U.S. Department of Housing and Urban Development.

At the time that Parlato showed 115 Shepard Street to Mr. Lewis, he implied that improvements had been performed on the home. However, in the time that Parlato owned the property, he did not apply for any City of Buffalo building permits. This implies that he did not perform any major repairs on the property in the time that he owned it. According to Mr. Lewis, Parlato claimed to have replaced the sinks and repaired the furnace in the home. On the day that this interview occurred, Mr. Lewis was preparing to contact Parlato’s office regarding other repairs that were necessary at his home.

At the time that Mr. Lewis purchased 115 Shepard Street, he was renting a home at 49 Northumberland in the City of Buffalo. He had never been a homeowner before purchasing the home from Parlato. Mr. Lewis held a part-time job (20 hours per week) with “Rides Unlimited” at the time of purchase but did have some credit problems. Parlato offered to pay off Mr. Lewis’s delinquent bill to improve his credit, but he never did. Mr. Lewis received the mortgage through Countrywide anyway.

AN INTERVIEW WITH PARLATO CUSTOMER – ROOSEVELT SHOWERS
Interview Date: September 24, 1997
Frank R. Parlato Jr. (using the corporation’s name Erie Development) purchased 103 Grimes Street from Stanley Kolis on August 30, 1995, for $14,000. Parlato then sold the property to Roosevelt Showers on November 30, 1995, for $34,000. Mr. Showers originally made contact with Parlato’s real estate company after he saw an advertisement in the Buffalo News classified ads that advertised a home, rent to own. James Parlato (Frank R. Parlato Jr.’s brother) acted as a representative for Erie Development Inc. and was the individual that showed Mr. Showers the home at 103 Grimes Street.

Mr. Showers purchased the property from Parlato for $34,000, with an initial deposit of$500.00. Mr. Showers’ mortgage was handled through Countrywide Inc., based in Simi Valley, California. Countrywide still holds controlling interest in Mr. Showers’ mortgage to the present day. Furthermore, it was never explained to Mr. Showers that his mortgage was guaranteed by the U.S. Department of Housing and Urban Development.
In the period of time that Parlato owned 103 Grimes Street, he never applied for any City of Buffalo building permits. This implies that Parlato either didn’t perform any major improvements on the property or he did so without the necessary building permits. According to Mr. Showers, Parlato didn’t advertise any improvements to the home. Why then does Parlato feel he deserves to increase the price of the home by $20,000 more than what he paid for it?

At the time that Mr. Showers purchased 103 Grimes Street, he was renting a home at 79 Davidson Avenue in the City of Buffalo. He had never been a homeowner before purchasing the home from Parlato. Mr. Showers held a full-time job (40 hours per week) with “MCI Retail” at the time of purchase but did have some credit problems. Parlato offered to pay off Mr. Showers’ delinquent bills to improve his credit, but he never did. On the day that this interview was conducted, Mr. Showers had just begun filing for bankruptcy.

AN INTERVIEW WITH JOHN HAREZGA – SOLD TO PARLATO
Interview Date: October 17, 1997
63 Ashley Street had been the property of the Harezga family for over 48 years. However, at the end of 1994, John Harezga decided it was time to sell the home. The condition and safety of the neighborhood began to change and Harezga felt a strong desire to leave. Harezga originally listed 63 Ashley Street with a Realtor, for $35,000. It was on the market for approximately one and a half years without a sale. In the spring of 1995, Harezga was approached by Frank and James Parlato who were acting as representatives for Erie Development Inc. The Parlato brothers saw 63 Ashley Street in the real estate listings and became interested in purchasing the property. They offered Harezga $12,500 for his home, which he accepted. The Parlatos wrote Harezga a check for a sum of $22,500 less than he originally desired for the property.
According to Harezga, the home was in very good condition at the time of sale. The only discrepancy with the home was that it was missing a bathtub in the upstairs bathroom. Originally, 63 Ashley Street was a two-family home, but Parlato indicated that he was going to remodel the upstairs with the purpose of turning the home into a one-family home.
Today, Harezga rents an apartment in the Williamstowne Retirement Community in the Town of Cheektowaga. The $12,500 that Harezga received for his home only covered his rent for approximately 2 years. Parlato sold 63 Ashley Street to Joseph & Teressa Doodigan only 2 months later, for $36,900.