Real Estate Broker Accused of Embezzlement

Somerville and Peabody Police yesterday arrested Kandy Farkhanda Shah, a real estate broker on several charges, including embezzlement and larceny. Kandy was mentioned to be the real estate agent representing the listing. A woman submitted an offer to Shah to purchase the house with a $7200 deposit. According to The Summerville News, she then asked Shah to provide documentation of the sale’s approval which Shah allegedly refused to do, police said. When the deal did not go through, Shah refused to refund the woman’s money, police said. A few of Kandy’s other alleged victims can be found at too.

Not sure about Massachusetts law so I’m not sure how the agent could have received the payment. In Texas, downpayments, in the form of earnest money, are made to the title company and option fees are made out to the seller. I could never see a situation where you make an offer to buy and cut a check to the agent. Can a MA real estate agent please tell me what I’m missing? I don’t understand how she got away with it so many times.

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3 thoughts on “Real Estate Broker Accused of Embezzlement

  1. I’m not in Mass., but in Ohio the “earnest money” is usually held in a non-interest bearing trust account by the buyer’s broker. The contract legally determines where it goes, but minus additional instructions it would be handled by the buyer’s broker.

    It is also customary – regardless of whom holds the money – for the buyer’s agent to collect the earnest money and transfer to the holding party.

    • In Texas, it’s turned over to the title company and they adhere to the contract. I think this is the best solution because it’s a neutral third-party that’s not a party of the contract or a party representative.

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