Former tenant accused of grand larceny, fraud

A Philipstown man accused of causing the popular owners of a dry cleaner and Cambodian restaurant on Route 9 to lose their property to foreclosure has been indicted in Putnam County on grand larceny and fraud charges.

Derek Keith Williams, a self-described "sovereign citizen" who has been serving a six-month sentence in the county jail for driving an unregistered vehicle without a license, was arraigned Wednesday (Feb. 25) on six felony counts: four for grand larceny and two for filing a false instrument with the intent to defraud.

Williams pleaded not guilty before Judge Anthony Mole and was ordered held on $100,000 cash bail, $200,000 insured bond and $200,000 partially insured bond. He is due back in court on April 8.

Before the indictment, Williams had been accused of convincing Sokhara Kim and Chakra Oeur that he paid off the mortgage on 3154 Route 9, where the couple ran Nice & Neat Dry Cleaners and sold Cambodian food in a landscaped garden along Clove Creek. Kim and Oeur also lived in a residence at the property, rented space to a nail salon and showcased Oeur's artwork in a gallery.

A meeting with Williams, whose girlfriend used to run the nail salon, upended that existence, leading to the couple's eviction on Dec. 9. In a lawsuit they filed to reclaim the property, Kim said a personal loan she used to rebuild the property after a fire in 2005 had been taken over by M&T Bank when she met Williams through the girlfriend, Mauny Bun, in 2019.

Kim said that Bun, whose mother she had known for over 30 years, "reminded me a lot of my daughter … and I put a lot of trust and faith in her." She decided to accept Williams' offer to buy the property for $1.2 million and transfer it to an entity called DKW Trust, none of which happened.

That decision triggered a 17-month foreclosure process that began in August 2022 after Kim stopped making payments on her $570,000 mortgage. Judge Gina Capone ordered the foreclosure in February 2024. Four months later, an M&T subsidiary, Chesapeake Holdings, paid $620,200 for the property at an auction.

Williams hid the foreclosure by demanding that Kim "turn over any mail or paperwork" and "treated questions as disobedience … responding with rage, profanity and intimidation," according to court documents.

Their loss of the property is a "deeply tragic — and profoundly avoidable — result" of the actions of "an unhinged and dangerous criminal who exercised coercive control over them," said Jacob Chen, their attorney. He is asking Capone to vacate the foreclosure and give Kim and Oeur a chance to regain the property.

Williams has described himself as a sovereign citizen, a fringe movement whose members broadly believe they are exempt from laws and reject documents such as Social Security cards and driver's licenses, according to the Southern Poverty Law Center, a civil rights group that tracks extremists.

One standard tactic is "paper terrorism" — bombarding clerks' offices and courts with phony and often indecipherable filings that can exceed 100 pages and are filled with grandiose language, references to treaties and patents and widespread use of capital letters and the copyright and trademark symbols.

Williams spent more than $5,000 on nearly 30 filings with the Putnam County Clerk's Office. Many of them were fruitless attempts to prevent M&T Bank from evicting Kim and Oeur from 3154 Route 9, where Williams had taken over the art gallery as a living space.