UNREAL ESTATE

By RICHARD WILNER

July 6, 2005 -- Federal and state authorities are probing a Manhattan company selling seniors the dream of hassle-free existence in assisted-living facilities for $250,000 a pop without owning any such real estate or possessing any license to run such an operation, The Post has learned.

The company, Rainmaker Managed Living, is also raising red flags among investigators because it's offering investors in the facilities a sky-high 25 percent return on their money — guaranteed in the first year — with possible returns of 37 percent, 49 percent and 60 percent over the first three years.

As if to deflect attention from its lack of operations, Rainmaker seeks to calm wary investors by promising to make good on the sky-high 25 percent return by tapping into unconventional revenue sources.

"The interest payments during [an early ramp-up period] will be derived from short-term investment in real-estate bridge loans, government securities, foreclosed rollovers, income from the operations of [the] managing partners' law firm, proceeds from collections on pending litigation" and other nontraditional revenue streams, Rainmaker claims on its Web site.

Nowhere in Rainmaker literature is there a mention that any person is licensed to sell securities.

"It's a real source of concern for us, and their conduct raises serious issues," said a person in New York Attorney General Eliot Spitzer's office, who spoke on the condition of anonymity. The AG recently started an informal probe of Rainmaker, The Post has learned.

The FBI, Securities and Exchange Commission and the California Department of Corporations are also looking into Rainmaker, sources tell The Post. The company is trolling for investments in West Coast properties, as well.

Investors have already handed over to Rainmaker more than $10 million, according to statements company executives made to one investor.

Rainmaker is one of many developers that have charged into the assisted-living industry, drawn by the growing market in services for the aged.

One of the more troubling areas of Rainmaker's operation is its attempt to purchase a 37-bed facility on Long Island .

Alireza Dilmaghani, 41, a lawyer at the center of the Rainmaker Managed Care partnership, led the company's attempt to buy the Sunken Meadow Adult Home in Kings Park , N.Y. , for $1 million earlier this year. The facility is home mostly to U.S. military veterans.

Dilmaghani wanted to evict the veterans from the facility, according to a lawyer for the adult home, presumably to make room for his senior citizen investors. The owners would have nothing of that plan, the lawyer said yesterday.

Dilmaghani even went as far as to contact the Veterans Administration to instruct it not to send any more veterans to the location, a source familiar with Rainmaker's intentions told The Post.

The lawyer for the adult home called Dilmaghani's behavior during the negotiations "unprofessional" and said it was replete with threats to file fraud charges against the home's owners.

The deal ultimately fell through when Rainmaker balked at applying to the state for licenses to run the facility.

In addition to its actions on Long Island and promises of sky-high investment returns without running any facility, Rainmaker also allowed Dilmaghani to act as real estate broker and lawyer on the same deal, which is against state bar ethics.

Dilmaghani, when confronted yesterday about Rainmaker's suspect operation, refused to answer any questions.

He later phoned The Post and maintained that Rainmaker operations were fully within the law.

Rainmaker has not been charged with any crime.

Rainmaker's actions came to light after an extensive report compiled by Barry Minkow, the convicted felon turned fraud-buster. Minkow, whose Fraud Discovery Institute has uncovered more than $1 billion in fraud, was contacted by an investor in Rainmaker who'd become suspicious.

Minkow later forwarded his report to regulators and investigators.

IT WAS TOO GOOD TO BE TRUE

By RICHARD WILNER

July 6, 2005 -- Josh Kriteman thought it was the perfect opportunity.

The 34-year-old consultant saw Rainmaker's come-on ad in the newspaper, the one promising a 25 percent return on his investment — guaranteed — and decided to cut a check for $110,000.

"My wife and I had made some money on two parcels of real estate and were looking to cut back on the 9-to-5, so this seemed like a good way of doing it," Kriteman said.

But almost immediately, he began to suspect the worst. "I asked for deeds, for documentation to back up the real estate, and they never produced them," Kriteman said.

So when he happened to come across Barry Minkow's name, and learned how Minkow had sussed out $1 billion in frauds, Kriteman decided to give the convicted felon a chance to repeat his magic.

Minkow hired legal, financial and real estate experts to sniff around Rainmaker's operation.

In a matter of weeks, the experts reported back to Minkow's Fraud Discovery Institute about Rainmaker's alleged shortcomings. The felon-turned-fraud buster thought investors weren't being given all the information an investment of this nature called for.

Kriteman demanded his investment cash back and was elated when the check arrived — and cleared. "Rainmaker was accepting $250,000 investments from senior citizens without having one property up and running," Minkow said.

Rainmaker has not been charged with any crime.

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