Greg DeRosa, the founder of Huntington-based G2D Development Group, was arrested on Sunday, March 23, by Suffolk County Police. He faces charges related to issuing a bad check from a bank account with insufficient funds in June 2024. This charge is part of a broader set of legal issues for DeRosa, who has been named in numerous lawsuits over the past year.
DeRosa, whose firm has been involved in several multifamily development projects, is accused by lenders and business partners of defaulting on payments. The check fraud charge marks the first law enforcement action against him, though investigations into his business dealings are ongoing. FBI agents have reportedly questioned several of DeRosa’s associates and investors, hinting at further developments.
Though many in the Long Island real estate scene were already aware of DeRosa’s legal battles, the extent of his financial troubles came to light following a halted project in Riverhead, which was first reported by RiverheadLocal.com in September 2024.
Once a prominent developer, DeRosa’s reputation has been tarnished by broken promises and lawsuits from investors. Just last week, an investor, John Paci, secured a $5.42 million default judgment, accusing DeRosa of fraud regarding the purchase and mortgage default of a Huntington office building at 175 W. Carver St. Court documents allege that DeRosa and his wife, Nicolle, diverted funds from G2D projects for personal use, including luxury goods and homes. DeRosa did not respond to requests for comment.
Observers attribute DeRosa’s initial success in the real estate sector to his early ventures. A former principal of Roanoke Sand & Gravel, DeRosa has a background in the construction materials business, including providing sand for the concrete used in building Manhattan’s Freedom Tower. He founded G2D in 2007, acquiring commercial properties to build a real estate portfolio for long-term stability.
Some of G2D’s earlier projects included mixed-use developments in Huntington, such as 30 Stewart Ave., 226 New York Ave., and 71 New St. The company also redeveloped an office building in Hicksville and the $24 million Gateway Plaza project in Huntington Station.
However, DeRosa’s business practices have come under scrutiny as multiple investors and lenders have claimed losses running into the millions. Many of these parties have declined to comment on the situation due to ongoing legal advice.
DeRosa is scheduled to appear for arraignment at Suffolk 1st District Court in Central Islip on Friday, April 11.
