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Recently in Real Estate Fraud Category

Seal Beach Man Faces $300,000 Foreclosure Scam Fraud Charges

A Seal Beach businessman now faces 34 counts of fraud and elder abuse in Orange County for allegedly scamming six people out of $300,000.

Real estate fraud in Anaheim is a hot topic these days as the country's housing market has utterly collapsed. Houses that were worth millions at one point have dropped by as much as 50 percent.
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As the troubles continue, many investors have looked for someone to blame. They have lost their savings, their retirement or even their play money, but nonetheless, they have lost and now they want someone to blame. Many times, these investors file civil lawsuits and sometimes they complain to the state that their non-guaranteed investment opportunity went south and is somehow a scam.

For those who organize investment opportunities and ended up with something that didn't go as planned, they are often left with a target on their back and facing charges. But these people mustn't lay down, but rather fight the charges head-on by hiring an experienced Orange County Criminal Defense Lawyer.

Police say they arrested the man after an eight-month investigation. They say he enticed investors into an opportunity of buying foreclosed homes in Los Angeles; the deal sought quick returns on their investment after rehabbing and reselling them.

Investigators allege he e-mailed investors updates about the properties, sent them deeds of ownership and said he was investing the profits into new investments. But when the investors demanded their money, he stopped communicating.

Police say the man only purchased one house, for $292,000, and it later went into foreclosure itself. They say the properties he described in communication with investors were real but that he never owned them.

When real estate fraud arrests like this one are made, investigators almost always say that the alleged perpetrator "promised investors" high returns on their investments, as if that is so bad. Think about every sales call you've ever gotten or any opportunity to make money that has come around. Who would start an investment opportunity sales pitch with "We may or may not make money under my plan?"

It's just not realistic. Every investment opportunity is planned out to make money, but there are factors that can make the investment not pan out. It's just like the stock market -- it's far from guaranteed and it's a gamble.

What must be done in these complex cases is an attorney must be able to review financial records of the accused and have access to every relevant document to put together a strong defense to the charges. The moment a person learns they are being investigated or suspect something is up, they must consult with an experienced Orange County Criminal Defense Attorney.

Continue reading "Seal Beach Man Faces $300,000 Foreclosure Scam Fraud Charges" »

Economic Climate Ripe for Allegations of Real Estate Fraud in Santa Ana

A 57-year-old woman pleaded "absolutely not guilty" to charges of real estate fraud in Santa Ana after authorities accuse her of swindling nuns out of $285,000 in a fraudulent property deal, according to the Orange County Register.

A Santa Ana real estate defense lawyer should be consulted as early as possible in such investigations. Allegations have skyrocketed since the downturn in the economy. In many cases, it is the same banks or mortgage companies that caused the meltdown that are now claiming fraud over no-doc mortgage loans and other questionable deals. In other cases, legitimate investors were caught holding property when the music stopped and were financially ruined only to face charges of criminal wrongdoing.
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And in still other cases investors made bad deals and now want to claim criminal wrongdoing.

These are complex cases. And what has not increased through this process is the resources dedicated to them by state and federal government -- even as the number of allegations and prosecutions exploded. The resulting chances of being caught up in a questionable prosecution are significant. In many cases, authorities hope to just move clients through the system by offering them pleas.

In this case, the defendant surrendered to the Federal Bureau of Investigation to face three counts of wire fraud. The U.S. Attorney's Office for the Central District of Florida claims the defendant used the money to pay for personal expenses, including pet sitting and lingerie. She is accused of defrauding the U.S. Province of the Religious of Jesus and Mary, Inc. a congregation of Roman Catholic sisters based in Rhode Island.

The defendant operated Rose Enterprises Inc, in Tustin, a business that assisted clients with delinquent mortgages and real estate transactions. When she learned the sisters were interested in purchasing property in San Diego, she allegedly used a fake letter from a California attorney to convince the nuns to wire the funds.

In other fraud news this month, The Orange County Register reports a broker is facing charges of real estate fraud in Irvine after a longtime friend accused him of stealing $1.75 million.

The allegations involve a plan to buy, rehab and sell distressed homes for a profit.

Continue reading "Economic Climate Ripe for Allegations of Real Estate Fraud in Santa Ana" »