Home > Blogs > Pacita Dimacali > Pacita's Quick Bytes of Real Estate

All cash international buyer ---- scam is still going on

By Pacita Dimacali

Real Estate Agent with Alain Pinel BRE 01367196

February 17, 2011 12:32 PM

In the last few weeks, I received several calls and emails from agents who said they googled a potential buyer's name, number, other identifying information and found my blog about this scam.

SCAM ALERT: cash buyer from out-of-area/country even provides "passport" and "proof of funds"

It may bear repeating to make sure none of us fall for this scam.

What is this scam about?

Agent receives email about one of his listings
Buyer claims to live out of country, wants to buy agent's listing and wants to use agent for the transaction(Woo hoo! Double-end!)
Gives his name --- and it could be any of these
Seiichiro Matsubayashi, Otake Iwao, Noriko Ine, Wu Quian, Tanaka Satomi
Says he'll pay cash, but wants 30 days to close escrow (red flag)
Wants agent to work through buyer's "attorney" Edward Brown 1-416-824-1768. He'll deposit
he'll deposit escrow funds through this "attorney" (but why not local title company?. Other "attorneys" mentioned: Peter Smith, Perry Owen (red flag)
Buyer has such a large budget range, from $400,000 to $2,000,000 (depends on which property he's looking at)
Provides address where he lives, but address 2000 Sheppard Ave. Toronto ON, M3N 2J1. Google that address and you'll see it associated with various other names, all part of the scam (BIG RED FLAG)
Claims he's seen the property (shown by whom?)
Says he wants to have home that befits his Chinese culture (but the name is Japanese?)

So how is it a scam?

Many realtors receive the same email, the same instructions to send the contract so he can sign via Docusign (yep, he mentions it) the same proof of funds, the same "passport with different names.

At least a couple realtors in some of the forums where this scam was reported, mentioned how they fell for this:

One realtor went ahead and scheduled inspections and paid for them.. the deal didn't materialize, so she had to absorb the costs of the inspections
Another realtor received a note from the scammer saying that the scammer deposited too big an amount in the escrow account, and would like to be reimbursed for the difference, and wanted the realtor to send him the funds (NO, NO, NO!)

So if you receive such a tempting email from a "buyer" who wants to pay cash, at full price, for one of our listings...do your research. If it sounds too good to be true, it is!

Go to the FBI's website on Common Fraud Schemes.

Re-Blog

Comments(13)

Comment

Show All Comments

Sort:

Jim Patton

Aspire Home Real Estate 209-404-0816 - Modesto, CA

Realtor - Stanislaus ,Merced, San Joaquin Counties

Pacita - Seems like there is always someone out there trying to take advantage of someone else. Thanks for the warning.

Feb 17, 2011 12:44 PM

Ted Tyrrell

RE/MAXCamosun (Chatterton) - Victoria, BC

Selling Homes in Beautiful Victoria

Pacita, thanks for the heads up on this guy. It is a legitimate address (apartment building).

Feb 17, 2011 12:49 PM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Jim -- it's amazing how many realtors called me to confirm it's a scam. There was such a deep sigh of loss

Ted --- Looked like a nice building, too! Maybe the scammer IS from Canada because he keeps referring to his attorney in Canada.

Feb 17, 2011 01:01 PM

Fred Griffin Florida Real Estate

Fred Griffin Real Estate - Tallahassee, FL

Licensed Florida Real Estate Broker

Pacita, what is amazing is how many Real Estate Agents fall for this Scam.

I get them once or twice a week, from Trulia, from Zillow, from other websites.

DELETE it without opening it. You WILL lose money if you engage these Thieves in a conversation.

Feb 17, 2011 02:42 PM

FN LN

Toronto, ON

Pacita - I have seen others report this particular scam on ActiveRain in the past.

The postal code provided does not relate to any address on Sheppard. Sheppard Avenue should either be Sheppard Avenue East or Sheppard Avenue West. There is no "Sheppard Avenue" in Toronto.

We also do not use title companies in Ontario.

Feb 17, 2011 03:31 PM

Kathleen Daniels, Probate & Trust Specialist

KD Realty - 408.972.1822 - San Jose, CA

Probate Real Estate Services

Pacita, Thanks for the reposting. I am amazed at how many agents fall for these scams.

Feb 18, 2011 04:43 AM

An Bui

DocuSign - Seattle, WA

Pacita, thanks for sharing about this scammer. DocuSign has published a blog post, "Before you eSign a Contract Online" to reiterate two things: First, that scammers are using the DocuSign name to make their messages seem legitimate. Second, that you should know who are you dealing with in online transactions before you sign a contract online.

Feb 21, 2011 04:44 AM

Kevin J. Roy Sr.

ERA Bettinger Realtors, Inc. - Austin, TX

Well this scam has resurfaced in Austin as of last week, this time under the name of Tom Shung, same home address and offer outline. CIBC of Toronto has confirmed that the statement provided was not valid nor did Mr. Shung have an account with CIBC. Even on multiple request a government issue picture ID reflecting current address, one was never provided.

We all need to be on our toes when it comes to accepting documents from an unkown wishing to sign by an electronic means or e-signature.

Situations like this have been my concern when it comes to e-signatures, what verification do we have that the person on the other end is in fact the person as signed. I had called Docusign regarding Mr. Shung and their response was that "his name and information looked valid".

Feb 21, 2011 07:52 AM

Diane Corliss

Coldwell Banker Schmitt Real Estate - Big Pine Key, FL

this is what i got.

1). Name: Mr. Haruka Kagawa and Mrs. Akemi Kagawa
2). Address: Higasi-Mikuni 3-9-3-513,
Yodogawa-ku, Osaka-shi, Osaka 532-0002 Japan
3). It is cash buy on the property. Will like to make an Offer: $560,000
4). Closing date: 30 of September, 2015.
5). I will like home inspection to be done on the property.
6). Please note the first payment is going to be paid by a cashier’s check.

Sincerely,
Mr. Haruka Kagawa

Aug 11, 2015 03:54 AM

Pacita Dimacali

Oakland, CA

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Diane Corliss --- this is still going on after all these years? Wow

Aug 11, 2015 04:04 AM

Lydia Maranville

Chandler, AZ

This is what I received today!

Thank you for your respond to my mail, this property listed MLS #:5296768/$499,000/ is of my interest and I and my wife will like to put in an offer to purchase. we will like to retain the service of an attorney in this transaction to handle the financial part of this purchase and also to represent my interest at the closing on this chosen property. Please recommend an attorney for me. Because of time difference, it may not be possible for me to reach the attorney on the telephone during business hour. we will like to ask you to contact the attorney on my behalf or send me their email address so that we can introduce myself to them regarding this transaction.

We will be very delightful if you can send to my attention the documents (the purchasing contract offer) that require my signatures via electronic signature software like DocuSign or any other software because we do not have a scanner at home. Attached is a copy of my bank statement as a proof of funds for this transaction. Below are the information’s you will need before you can write the purchasing contract.

1). Name: Mr. Haruka Kagawa and Mrs. Akemi Kagawa
2). Address: Higasi-Mikuni 3-9-3-513,
Yodogawa-ku, Osaka-shi, Osaka 532-0002 Japan
3). It is cash buy on the property. Will like to make an Offer: $480,000
4). Closing date: 30 of September, 2015.
5). I will like home inspection to be done on the property.
6). Please note the first payment is going to be paid by a cashier’s check.

Sincerely,
Mr. Haruka Kagawa

Aug 19, 2015 07:21 AM

Sharon Wayman

Crye-leike, Realtors - Nashville, TN

My goodness! I received the exact same email but for a home in Nashville, TN.

Thanks for the heads up. I googled the names and addresses. I thought it was a scam, I emailed him and asked for a photo id and passport.

Aug 19, 2015 09:06 AM

Anne Johnston

Adams, Cameron & Co. Realtors - Deland, FL

Detail-oriented real estate professional

I received the same email for a home in Ormond Beach FL today. The name used was Yoshiko Teiko.

Thanks to Active Rain I didn't fall for this scammer!

Oct 13, 2016 11:26 PM