Due to their special training, lawyers are in a unique position to conduct fraud, and real estate is no exception from the rule. In Chicago, a notoriously corrupt city, attorney Robert Lattas admitted his role in a $22.9 million mortgage fraud.
Real estate fraudsters are a dime a dozen these days, but crossing the $1 billion mark certainly makes a scheme noteworthy. In this story, they doubled that, and an Aspen home is up for seizure by the Federal Government in the case.
A former bank president at failed Oklahoma bank First State Bank of Altus is facing life in prison for his role in a massive fraud case. Paul Doughty was president and chairman of Altus, and has been convicted of 10 charges including bank fraud, conspiracy to commit bank fraud, misapplication of bank funds, making a false bank entry and unauthorized issuance of a bank loan.
The former owner of Cabot Investment Properties LLC, Carlton Cabot, is under fire for his role in a $17 million fraud. This is far from the first time a leading investor pleads guilty to a real estate fraud scheme.
In the multi-year scheme, Cabot took investor funds for his own personal use. The money was spent on expensive private school tuition and a luxury vacation apartment, among other lavish lifestyle expenses. Continue reading
Financial fraudsters do not only harm their direct victims. The entire economy falls victim when real estate and other financial fraud strikes.
For example, North Carolina home developer Christopher Deans pleaded guilty to a scheme where he paid other bidders at foreclosure auctions not to bid on properties, artificially lowering the price paid for the property and indirectly lowering the values of all homes in the neighborhood. Continue reading
Former Minnesota Viking Stu Voigt and business partner Jeffrey Gardner went to trial in January for their role in a multimillion dollar real estate fraud case. They touted their firm, Hennessey Financial LLC, as an avenue for healthy real estate investment profits. Instead, it operated like a Ponzi scheme. Continue reading
San Diego businessman Courtland Gettel and Tucson attorney Jeffrey Greenberg pled guilty to a massive $33 million California fraud scheme involving wire fraud and mansions in San Diego suburbs La Jolla and Del Mar. Continue reading
Credit repair scams are nothing new, but prospective home buyers have to be particularly aware of the risks of dealing with these predatory agencies. As a general rule: if it sounds to good to be true, it probably is.
Interest rates have held near record lows for much of the last half-decade, and credit repair companies tout their services to potential borrowers looking to increase their credit score to qualify for a home loan. Continue reading
Real estate agent Leslie Rae Young came under fire from regulators in Nebraska and Alaska for flat fee listings in the two states. While a flat fee listing is not against the law, doing it when you are not licensed in the state is against the law. A law Young is charged with breaking. Continue reading
A real estate appraisal executive, William Daddono, pled guilty to tax evasion in an egregious example of a wealthy executive in the real estate industry industry. This tax fraud is one of the biggest we’ve ever seen here at Really Rotten Realty. Continue reading
Alicia Garcia appeared to be a selfless, upstanding citizen on the surface. Her Cuban rights activism gained the attention of Miami-Dade county elected officials, but they had no idea about her shady past. Continue reading
Due to the nature of real estate transactions, scams can be very lucrative. In this $200,000 scam, a New York man scored big. Continue reading
Real estate fraud happens all the time, but team fraud involving the lender, agent, and borrower is a new one even to this team at Really Rotten Realty. In Kansas City, that exact event took place. Continue reading