Special offer

The Ambiguous Face of Greed

By
Real Estate Agent with Integrity Real Estate

Regrettably, many people have come to identify Matthew Cox as the face of greed in the industry.  I'm pretty sure that everyone reading this post has heard of him.  While it's true Cox is an infamous and notorious criminal, his profile more closely resembles that of a street thug than it does the typical white collar criminal. 

The truth about real estate fraud is hidden in countless files, in countless offices, in countless cities and towns across the nation.

 A recent arrest in California accurately illustrates the fraud that routinely infects real estate transactions.  A 34 year old woman stands accused of abusing her notary privileges.  She notarized a single document that was ultimately recorded even though it contained a forged signature.  The authorities place a great deal of importance on a notary commission, as should you.  Notary abuse, a common element in fraud cases, undermines the integrity of court documents.

The California case is notable for a number of reasons.

They are:

  • The arrest was initiated by officials for a local jurisdiction, San Bernardino County.  Until recently, real estate crime was primarily the purview of federal authorities due to it's sophistication and the prosecutorial intricacies. 
  • The press release mentions nothing about a financial loss to any individual or financial institution. 
  • The criminal charges stem from a single act, not from a pattern of actions affecting a number of properties.
For the real estate professional, the appearance of impropriety is equivalent to committing a crime.  This woman's career has ended regardless of the outcome of the proceedings. 

No one wants to believe that the person sitting in the adjoining cubicle is capable of committing a crime.  They are after all a colleague and a friend.  We eat lunch with them while talking about the things that everyone talks about over lunch.  Mortgage fraudsters look like us, live in the same community as us, and go to the same church as us.

Fraudsters often believe that they won't get caught or that they can talk themselves out of any situation.  Sometime they convince themselves that an act isn't serious enough to elicit a consequential response by authorities. 

Many corporations now closely examine a prospective employee's driving history before making a hiring decision.  A patten of past parking tickets or moving offenses often points to an "above the law" type personality trait.

Women, like the notary mentioned above, go to prison every day for committing white collar crimes.  Often, they're mothers leaving children behind.

There's a general misconception that real estate fraud is prosecuted only when it's highly orchestrated, involves major losses, and has wide spread implications.  It's simply untrue. 

Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Melody

I'm very guilty of trusting others as well.  It has gotten me into more trouble than I can say.  Thanks for commenting. 

Jul 10, 2007 10:32 AM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Grant

You can say that again about Matthew Cox.  He's dangerous, that's for certain. 

Jul 10, 2007 10:36 AM
Paula Henry
Home to Indy Team @ HomeSmart Realty Group - Avon, IN
Realtor - Indianapolis Real Estate - 317-605-4174
Ed - What a charachter......I have to admit I had not heard of him. The abuses in our industry have become rampant in recent years. I have seen those who started in real estate imagining they would have a very lucrative career, then turn to small acts of dishonesty for the almighty dollar. Once a person turns that corner, it is another small step to more serious crimes.
Jul 10, 2007 01:17 PM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Paula

There's no question that small acts of impropriety often give way to more heinous types of behavior.   We see it all the time in title company's when employees think nothing of forging signatures and all of a sudden money's missing from an escrow account.  Corporate boundaries are so very important.  There's a right way and there's a wrong way.  Thanks for commenting.

Jul 10, 2007 01:40 PM
Fran Gatti
RE/MAX Integrity - Medford, OR
Managing Principal Broker - RE/MAX Integrity

Ed,

I can't imagine any of the people I know in my real estate market committing any kind of fraud, but statistically it's gotta be happening.  Thanks for continuing to stress the importance of being on the look out for fraud and abuse.

Fran

Jul 10, 2007 01:48 PM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Fran

You're very welcome.   White collar crime is very difficult to accept because the perpetrators look just like us. 

Jul 10, 2007 10:23 PM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Specialist - Agent
Funny that you post this.  I had a past customer ask me for listing to take to a friend he is visiting out of state.  I said no problem.  Then he asked for a finders fee, and he's unlicensed.  Uh, no way!
Jul 10, 2007 11:00 PM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

What is amazing, is the number of people willing to trust a stranger for the promise of a quick buck.

 

Jul 11, 2007 03:37 AM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Ed,

I saw your comments on another blog and decided I had to come for a visit. I read your interesting profile. I think that we are headed for a major crack-down on mortgage fraud and they are going to use the short sale process to gather evidence. I've writen a couple articles on short sales. I would really appreciate your visiting my blog and commenting.

Thank you for what you are doing.

Bill Roberts

Jul 11, 2007 04:48 AM
Jo-Anne Smith
Oakville, ON

Ed, Thanks for this enlightenment.
Interesting, I didn't realize mortgage fraud was that widespread.  We have just started learning about it and taking courses on it in the past few years here in Ontario.  Now it seems I am constantly reading about new mortgage fraud schemes to watch for in our industry's journals and enewsletters. Some of the scenarios are very frightening !

Jo 

Jul 11, 2007 06:03 AM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Chris

The improprieties are everywhere.  Matters are getting worse, not better.

Jul 11, 2007 09:02 AM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Tom

That's a great point.   

Jul 11, 2007 09:04 AM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Bill

You're very welcome.  I'll take a look at your blog. 

Jul 11, 2007 09:05 AM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Hi Jo

There's definitely a worsening problem in Canada.  Last fall, I sat on a panel at an international symposium where Canada was well represented. 

Jul 11, 2007 09:07 AM
Chris Lengquist
Ad Astra Realty - Olathe, KS
Kansas City Real Estate Investing
Ed - good post.  But the link was fascinanting.  I had not heard the story. I'm always amazed at the creativity out there.
Jul 12, 2007 03:24 PM
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management

Ed,

Thanks for the post. Unfortunately, greed gets the best of far too many people. Hopefully, this young ladies p[light will help to be a disincentive.

I also wanted to thank you for stopping by To Be 50 Plus In The Rain. 

 

 

Jul 15, 2007 12:48 AM
Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA
Ed. Never quite understood what part of conflict of interest is so difficult to understand..
Jul 15, 2007 07:51 AM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Chris

I'm glad you enjoyed the post.  Matthew Cox is definitely an intriguing and frightening character. 

Jul 15, 2007 08:24 AM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

William

Thanks for the comment and I always look forward to your posts. 

Jul 15, 2007 08:28 AM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Kaye

It's clearly a more elusive concept for some than it is for others.  Thanks for stopping by. 

Jul 15, 2007 08:30 AM