In 1907, Paris and McDougal were accused of graft and fraud after they attempted to sell of land back to the city at inflated prices, earning $140,000 as a result. A grand jury was convened to investigate the transaction. Joseph Bermel, the Queens borough president at the time, was later found to be involved in the deal, having allegedly received $12,000 from the transaction. In March 1908, the grand jury recommended that those involved be found guilty of graft. Later that month, Bermel was charged with perjury and bribery after he tried to hide his involvement in the scandal. He resigned his post as borough president in April 1908 and was subsequently scheduled to give testimony at a grand jury trial, but fled the United States the day before he was to testify. Bermel's lawyer and brother were also charged with perjury.