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Ken Akira/Chan Lee Scam: How It Works

By
Managing Real Estate Broker with Coldwell Banker Heart of Oklahoma OREC#86951

 

I have had several questions about how this works, so here is my explanation:

 

They use a cashier’s check or money order that is bogus (either on a real bank but a fake account or a real bank and a real account, but not an account they own. This allows the local bank to verify the bank and account number and it is only when the account holder protests that the problem arises.).

The EM is deposited and the Buyer does an immediate inspection and finds something they don’t like. They request an immediate refund of the EM, so they can buy another home. People assume, since it was a cashier’s check, it was good, but…

 

When you refund the EM then YOU are liable for the fraudulent cashier’s check or money order that was deposited in your account. In other words, you deposit $10,000 then refund the $10,000 and 2 weeks later then cashier’s check gets returned as a fake. YOU are then responsible for making up the $10,000.

 

(The banks wrote the law, so they are immune from the liability, just like your are guilty if you receive counterfeit money. If you try to deposit/spend counterfiet money, you are the one that gets arrested.)

  

Posted by

Licensed to SELL - Dedicated - Experienced - Honest - Than Maynard - Purcell, OK

Head shot

Than Maynard
REALTOR, CRB, Certified Short Sale agent, Certified Foreclosure Agent, Accredited REO Agent
Coldwell Banker Heart of Oklahoma Real Estate
1726 N Green Avenue, Purcell, OK 73080
CELL: (405) 990-8862
OFFICE: (405) 527-3012
www.cbheart.com

 

 

We never stop moving 3d

Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Than - I'm amazed that this ever works - I don't know a single escrow account holder here in CO that would write a refund check on uncleared funds, but I assume there must be some some places that do, since I'm still getting these e-mails, along with the ones from our friends in Nigeria that want to give us all that money for just a little help.

Aug 22, 2011 05:32 AM
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

Well, the problem is, it looks like it has funded. The bank will actually deposit the money in the escrow account. It is later when the true account holder protests the check that the funds get removed from the escrow account. At that point, you have refunded the money, but 2 weeks later  the "check" comes back as fraudulent and they take the money out of your account. (My simplistic interpretation of how it works.)

Again, the bankers wrote the law to save themselves from the fraud, so it falls on the person that made the deposit.

Aug 22, 2011 08:18 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Than,  I may be missing something here but it validates in my mind why I will never handle an escrow account for my brokerage. If I don't receive and deposit the check it's not of my concern or liability.

Aug 22, 2011 04:32 PM
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

John: I would hope it is "of your concern" that you would not want to be involved in fraud. I don't think that is what you meant, but it sounded like "Oh well, if someone else gets burned, no skin off my nose."

Aug 23, 2011 03:34 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

That's scary!

Aug 24, 2011 07:01 AM