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real estate fraud: CA Attorney General Launches Real Estate Fraud Strike Force - 05/24/11 10:49 PM
There is much that I disagee with our new Atorney General Kama Harris, but she's got a winner here. I sincerely hope that the strike force will be heavily utilized and that it isn't just window dressing.
Attorney General Kamala D. Harris today announced the creation of the California Attorney General's Mortgage Fraud Strike Force, staffed by Department of Justice attorneys and investigators charged with protecting innocent homeowners and bringing to justice those who defraud them.
Composed of both civil and criminal enforcement teams, the Mortgage Fraud Strike Force will monitor and prosecute violations at every step of the mortgage process, … (3 comments)

real estate fraud: Updated: CA State Bar v. Michael T. Pines. SHARK ATTACK! - 03/15/11 05:56 PM
Last October I wrote about a local attorney by the name of Michael T. Pines who was making quite a name for himself in local real estate circles. (Another Real Estate Scam to beware of.) Counselor Pines was making the evening news by advising clients who had been foreclosed on and evicted to break back into their former homes under the theory that since the debt had been satisfied through foreclosure, they could now own their former home free and clear. 
To say this hadn't worked would be an understatement. Clients who actually followed his advice were summarily re-evicted if they … (5 comments)

real estate fraud: Rental Scam Rearing Its Ugly Head Again. Beware. - 11/10/10 08:28 PM
They're baaaaack.
Or more likely, they never really left. Last year (and the year before) I wrote a warning about people renting out houses that didn't belong to them. The most recent cases come from Lake Elsinore where two families have become recent victims, according to the Sheriff's Department. 
Someone posted signs along Highway 74 advertising homes for rent on Marquise Street and another on Sunsprite. In each case, the victims called the number, met a man at the property, signed rental contracts on the spot and paid cash for first and last months rent. Shortly after moving in they were … (4 comments)

real estate fraud: Long awaited Riverside County Mortgage Fraud Trial gets Underway. - 11/10/10 03:22 PM
At long last the trial has begun for the perpetrators of the so-called Stonewood Scam in Southwest Riverside County. Long time readers are acquainted with the basics of this story from my years-long chronicle of events. Our local association tried to bring this to the attention of law enforcement beginning in late 2004 but were unsuccessful in catching anybodys ear until the scam had nearly run its course and started to collapse under its own weight. 
The real estate part of it consisted of representatives from Stonewood Financial buying homes at significant premiums over asking price. As this was at a time … (2 comments)

real estate fraud: Another RE Scam to beware of... - 10/29/10 07:06 PM
Last week our local paper bestowed their 'Raspberry' award to a SoCal based attorney by the name of Michael T. Pines. Pines qualified for this award by virtue of the fact that his business model apparently involves advising clients who have been through foreclosure and been evicted from a home to break back into the home and set up residency. Of the four families he has recently convinced that his advice is sound, he has accompanied them to the house with attendant locksmith and whatever press he can scrounge up.
He garnered a couple headlines.
But most figured it for … (67 comments)

real estate fraud: Folks, If it sounds too good to be true... A Raspberry for you. - 10/25/10 01:32 PM
The Californian today bestowed a raspberry entitled:
The "Uncommon Law' award.
A raspberry to attorney Michael T. Pines, who has been advising his clients to break into their foreclosed homes.
Pines claims the actions are justified because lenders committed loan fraud and violated the Truth in Lending Act of 1968. A bankruptcy judge called his ideas frivolous and ordered him to pay $16,430 in legal fees to the defendants in one case for wasting their time. Other local real estate lawyers are skeptical about his interpretation of the law.
While not every homeowner facing foreclosure is a victim, many are. They … (4 comments)

real estate fraud: Reverse Mortgage - Know What You're Signing. And to whom. - 09/13/10 08:58 PM
My wife and I were having dinner with her mother yesterday. Her mom's getting up in years and still lives in the big family home on an acre and has seen some decent appreciation even considering the recent bust.
Over dinner she asked if I knew anything about reverse mortgages? I told her I know 2 things about reverse mortgages -
For the right person a legitimate reverse mortgage can be a wonderful thng.
They are currently the most prevalent form of real estate fraud being perpetrated on elderly people.
Now Jan has had a reverse mortgage for 16 … (4 comments)

real estate fraud: Title Compliance Office - Homeowner FRAUD Alert - 09/09/10 06:01 PM
I posted an article about the Title Compliance Office Scam back in April. It currently sits at #2 on Google thanks to ActiveRain. But what's even better news is the responses I continue to get from people who have read it and avoided getting scammed. Not only did they save $167 but they avoided sending a copy of their signature in to scamsters who would proceed to do who knows what with it.
So to make it even easier, I've put a warning notice up on YouTube describing the problem. It's not just Riverside County, where I live, but people have … (2 comments)

real estate fraud: New Scam aimed directly at Realtors. Don't get bit. - 07/07/10 07:04 PM
This is a variation of the Craigslist scam and the Nigerian bank fraud. I sincerely hope no real estate professional has fallen for this grift ut since NAR is publicizing it - it's probably bit a few folks.
NAR Legal Affairs has learned of a new scheme designed to trick unwary real estate professionals
NAR Legal Affairs has learned of a new scheme designed to trick unwary real estate professionals into forwarding money to the scheme operators. The scheme works in the following manner: 
Salesperson receives an inquiry via email from an individual who identifies himself (no known female aliases … (13 comments)

real estate fraud: Another Scam Artist Heads For Club Fed - 02/17/10 03:23 PM
 
LONG BEACH MAN PLEADS GUILTY IN $33 MILLION PONZI THAT LURED INVESTORS WITH PROMISES OF PROFITS IN REAL ESTATE
Ahhhh another great headline. This one about a 33 year old guy by the name of Jon James who scammed as many as 50 people out of their savings and IRA's in his get-rich-quick scheme. 
See if this sounds familiar - James would often meet his marks face-to-face or at presentations hosted at restaurants. He'd promise them returns way better than those available elsewhere by investing in his real estate investment operation. He actually invested in a few properties but made … (0 comments)

real estate fraud: If You're Gonna Commit Fraud At Least Pay Your Dang Taxes - 02/01/10 05:58 PM
Fraud in the news. Our US Attorneys Office has been busy lately getting some miscreants off the streets. They appear to be stepping up efforts and between their office and Attorney General Jerry Brown, they have been putting a lot of these people behind bars. That's good - that's real good. This is a big state and these cases are just a drop in the bucket but it is really gratifying to see people who have given our industry a real black eye being held accountable. 
The only thing better than cracking them now would have been to bust them … (2 comments)

real estate fraud: HALLELUJAH! Mortgage Fraud Scamsters Finally Arrested (just 5 years too late). - 11/19/09 09:37 PM
Here's today's update "Seven Accused of Defrauding Investors of Millions"
HALLELUJAH!!!! 
If I sound ecstatic it's because the biggest fraudsters in our area have finally been charged! These three, Montecastro, Duncan and McLeod started their mortgage fraud scheme in Murrieta in 2004. Our association and our chief counsel started documenting the problem late that year. We took it to the District Attorney, the FBI, the Dept. of Real Estate, the Attorney General, local law enforcement, lenders, etc. - and nobody NOBODY would give us the time of day. 
This scam was the incentive for our Association (SRCAR) to join our neighboring … (61 comments)

real estate fraud: New Day - New Scam. Beware - be aware. - 08/05/09 04:18 PM
A number of you have reported being approached by investors to perform some level of service in conjunction with this type of transaction. If you are going to try it, make sure you follow the guidelines outlined by Fannie Mae or you and your investor/buyer/ client may be indictable.

… (8 comments)

real estate fraud: Ocwen Bank - Outsourcing Realtors to India? - 04/15/09 03:30 PM
I've had a few phone calls recently requesting information on an organization called Ocwen Bank. They have a couple listings in our local mls and when you call the 800# for info your call is answered in India. That in itself has raised questions as to whether the person giving out financial information from Punjab is a licensed Realtor qualified to give out that information. A second question has been raised about their ethics because when you go to their site to check on a property, they also provide a complete list of every offer that has been submitted on the … (20 comments)

real estate fraud: California AG Issues New Fraud Warning. - 03/12/09 05:07 PM
Once again California Attorney General Jerry Brown rides to the rescue of homeowners by issuing a timely warning. This is what we need MORE of - but we'll be lucky if this info makes the papers at all.
This is a pretty sophisticated scam involving forged letterhead and people who apparently know the lingo, even got a business license from the City of LA. I swear if these people put the same degree of diligence toward a legitimate career, they would probably prosper as well. This is no fast street scuffle but was set-up to extract repeated payments from the victims.
… (15 comments)

real estate fraud: California AG Jails RE Fraud Group - 03/09/09 06:32 PM
Our Attorney General Jerry Brown has been raising some hell with scam artists this year. Prosecuting these cases is proving difficult for local DA's, especially with the current budget crunch impacting their offices. But Jerry is stepping up, he's cracking down on some of these perps very quickly, acting to reduce the impact on communities and giving them real jail time. Probably not enough jail time - but it's a start.
Locally we're still working on indictments for scams that occurred back in 2004 and 2006. While the DA diddles with figuring out why they paid $150,000 over asking price, that … (1 comments)

real estate fraud: Cash For Keys Scam Goes Bust - 02/12/09 01:55 PM
This is an update to last weeks post 'Fraudster Claims Inalienable Right to Scam'. A take off on  the well honed rental fraud scheme, this agent and the illegal occupiers had posted prominent signs warning authorities that they enjoyed the 'inalienable right to self-preservation to repel by force, self-defense and justifiable homicide'. (Understand this is in a neighborhood where nearby homeowners include the owners of the Sacramento Kings and other business luminaries of our state Capitol.)
Well, police were not in the least intimidated. Yesterday they visited the property and kicked their way into the home finding nobody around to answer … (11 comments)

real estate fraud: California AG Issues Prop 8 Tax Relief Scam Alert - 02/12/09 10:47 AM
In case you missed my warning last week on this subject, Attorney General Brown today issued the following warning about Property Tax Scams. There is a company right here in Murrieta offering this same service (at least there was one last year). Why somebody would pay for something they can get for free is beyond me but these shysters make it sound like if you don't use them you don't get the tax relief.
Please pass this along to your clients. Use it as an opportunity to get in touch with them and offer to run comps for them at … (5 comments)

real estate fraud: FRAUD - Slam the Door, The Horse is Gone. - 02/07/09 01:06 PM
Much like errant weeds after a spring rain, real estate fraud scams continue to pop up and victims continue to volunteer their reputations and their resources. Me, I can't find a qualified buyer for a bargain priced home. These guys find suckers ready to shell out tens and hundreds of thousands of dollars to invest in housing they'll never own for returns they'll never see.
This latest revelation involves a Roseville-based 'investment' company called Loomis Wealth Solutions, formerly known as the Advantage Financial Group about one of their employees known as Christopher J. Warren, formerly known as Mark A. Seagraves. Folks, if … (4 comments)

real estate fraud: Property Tax Reduction Scam Alert - 02/05/09 05:30 PM
I know some of you have started providing a service to your clients whereby you send them comps that might help them reduce their property taxes next year. If you don't do this you might want to think about it. It's an excellent way to keep in touch with past clients/contacts offering an opportunity for them to save some money on that overpriced hunk of real estate you sold them (not overpriced at the time, however). Along with the comps, you can send them the PDF of the form they need from the Assessors Office - the Prop 8 Decline in … (8 comments)