Dominatrix Den Linked to $50M Mortgage Scam

By Jim Scott
|  Thursday, Mar 26, 2009  |  Updated 8:15 AM PDT
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Dominatrix Shop Linked to $50M Mortgage Scam

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What happened to the good old days when a trip to the S&M club just meant kinky sex?

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Dominatrix Shop Linked to $50M Mortgage Scam

A Manhattan dominatrix business morphed into a massive mortgage scam.
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Dominatrixes from a Manhattan S&M club were used to recruit people in a $50 million mortgage scam involving dozens of Hamptons properties, police said.

Five people, including the owners of the bondage den Arena Studios in Soho, were arrested for defrauding banks of millions over a seven-year span. 

Donald MacPherson, 65, and Carrie Coakley, 39, ran the Broome Street bondage den and allegedly used dominatrixes to recruit people into the mortgage scam.  

"Some of the straw buyers were patrons of the club and the dominatrixes approached them and asked if they wanted to make some easy money," Suffolk County spokesman Robert Clifford told The New York Daily News.

The recruits would be given fake papers to make it look like they had high paying jobs in order to fool banks into giving them mortgages for expensive Hamptons properties, authorities said.

The mortgage scam ringleaders created false documents saying the buyers earned up to $45,000 a month, police said.

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