Archives For forged deeds

Man Sentenced for Stealing Homes, Illegally Transferring Titles & Filing False Documents

Stephanie Abbott —  January 9, 2019 — Leave a comment

Danny Noble, 49, Baldwin, New York was sentenced today to 4.5 to nine years in prison in connection with illegally transferring the titles of seven houses in Brooklyn, New York and two in Queens, New York from their true owners to himself or a corporation, then renting out some of the properties and selling others.

According to the indictment, between June 29, 2010 and March 31, 2015, the defendants falsely transferred title to seven Brooklyn properties: 71 Carlton Avenue, 104 Vanderbilt Avenue, 45 North Oxford Street and 70 Clermont Avenue, Fort Greene,; 1391 East 95th Street in Canarsie, 357 Jefferson Avenue in Bedford-Stuyvesant; 729 Essex Street in East New York all in Brooklyn, New York and two properties in Queens, New York: 94-05 108th Street in Jamaica and 187-05 Liberty Avenue in Hollis.

Five of the properties were transferred from the actual homeowners to Noble, according to the indictment, three were transferred to 69 Adelphi Street, LLC, and one to a third party. The defendants allegedly targeted the properties because the owners did not live in the houses and rarely visited them.

Once the titles were transferred, according to the indictment, the defendants carried out various scams in order to cash in on them. For example, Noble maintained control of 45 North Oxford Street, a recently renovated brownstone in Fort Greene, whose owner lived outside of the United States. Noble rented out two apartments in the brownstone, collecting $1,500 a month in rent for each of them. He also maintained control of the two houses in Queens, renting them out for various amounts.

In another facet of the scheme, concerning 1247 Putnam Avenue, Brooklyn, New York, Noble filed a fraudulent satisfaction of mortgage.

Furthermore, for example, with respect to 71 Carlton Avenue, 104 Vanderbilt Avenue, 70 Clermont Avenue, and 1391 East 95th Street, the defendants transferred the properties’ titles into the names of other, third parties.

Noble pleaded guilty to first-degree criminal possession of stolen property and fourth-degree conspiracy before Brooklyn Supreme Court Justice Danny Chun on April 27, 2016 and was sentenced today to an indeterminate term of 4.5 to nine years in prison. His co-defendant, Romelo Grey, 41, Freeport, New York, pleaded guilty to falsifying business records on August 16, 2016, and was sentenced to 1.5 to 3 years in prison.

Brooklyn District Attorney Eric Gonzalez made the announcement.

The District Attorney said that, according to the investigation, the scheme was discovered after Grey and Noble transferred the title to the Canarsie house at 1391 East 95th Street to a third party. Grey visited the house with the buyer to inspect it, and told the tenants living there that they had to move out. The buyer then began renovating the house and those workers caught the eye of an employee of a business across the street, which was actually owned by the true owner of 1391 East 95th Street. That employee called the owner of the property, who called police. Further investigation led to the defendants’ connections to the other properties.

As part of the scheme, Noble, the leader, filed false documents with the New York City Department of Finance, Office of the City Register, which maintains land records and other real property filings in New York City, including records relating to ownership and encumbrances, such as liens and mortgages.

District Attorney Gonzalez said, “In Brooklyn, we take real estate scams very seriously. The houses targeted in this fraud are worth millions of dollars. My prosecutors and investigators worked diligently to expose this fraudulent scheme and bring this defendant to justice.”

The case was prosecuted by Assistant District Attorney Richard Farrell, Chief of the District Attorney’s Real Estate Fraud Unit, under the overall supervision of Assistant District Attorney Patricia McNeill, Deputy Chief of the Investigations Division.

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Deed Theft of Two Residential Properties Gets Woman Sentenced

Stephanie Abbott —  January 8, 2019 — Leave a comment

Marilyn Sanchez, 49, Brooklyn, New York was sentenced today for filing two fraudulent deeds and supporting documents with the New York City Register’s Office in order to fraudulently acquire ownership of two separate residential homes in Brooklyn, New York.

According to the indictment and statements made at Sanchez’s arraignment in Kings County Supreme Court, in January 2016 Marilyn Sanchez illegally transferred ownership of 477 Christopher Avenue, Brownsville, Brooklyn, New York from the lawful owners to herself by recording a deed and five supporting documents containing forged signatures with the New York City Register’s Office.

Additionally, in November 2016, Sanchez illegally transferred ownership of 271 East 32nd Street, East Flatbush, Brooklyn, New York by recording a deed and five supporting documents containing the forged signatures of the lawful owners with the New York City Register’s Office.

In both instances, the owners never signed the deed nor the supporting documents and they never gave Sanchez, or anyone else, permission to sign on their behalf.

On October 5, 2018, Sanchez pleaded guilty to two counts of Grand Larceny in the Second Degree, a class C felony, before the Honorable Judge Miller in Kings County Supreme Court.

Sanchez was sentenced to 60 days in jail, followed by five years of probation. Sanchez also agreed to transfer ownership of the two property deeds back to the lawful owners. Today’s sentencing marks the first deed theft ruling resulting from an OAG investigation.

Attorney General Letitia James made the announcement.

“Too often scammers turn the American Dream of homeownership into a nightmare,” said Attorney General Letitia James. “I’m pleased our office’s investigation has resulted in the return of these stolen deeds to their rightful owners. No one should have to worry about their property being stolen by scammers, and I encourage New Yorkers to follow my office’s tips to help protect themselves from potential foreclosure scams. I remind anyone who tries to harm hardworking New Yorkers that we will hold you accountable.”

“The DOF Office of the Sheriff remains committed to investigate and arrest those responsible for deed fraud,” said New York City Sheriff Joseph Fucito. “The Attorney General’s prosecution of this case sends a strong message about the severity of the crime and the commitment to protect the homes of all New Yorkers. I want to commend Sheriff’s Detectives Francesca Rosa and Nene Kodjoe for their efforts in this investigation.”

“After years of working with New York homeowners, we’ve seen hundreds of scam and fraud cases, many of which result in major losses for families and their communities. But deed fraud cases are some of the most painful and complicated, because homeowners are often forced to fight for years to regain their properties,” said Christie Peale, CEO/Executive Director for the Center for NYC Neighborhoods. “We congratulate the Attorney General’s Office here in making sure that these homes were returned to their lawful owners. The OAG’s significant investments in fighting mortgage scams and deed theft through education and prosecution are particularly welcome, given how easy it is for bad actors to steal homes from hardworking families.”

Launched in December 2016 by the Attorney General’s office, the Foreclosure Rescue Scam Prevention Initiative is a grant program focused on enhancing outreach, education, and referral services for homeowners at risk of fraudulent foreclosure rescue schemes. The Foreclosure Rescue Scam Prevention Initiative is part of the office’s broader efforts to direct resources to at-risk homeowners, including investing $130 million in the Homeowner Protection Program (HOPP). Since 2012, HOPP has provided free, high-quality assistance to over 90,000 families to help avoid foreclosure of their homes.

To protect yourself from becoming a victim of a foreclosure rescue scam, Attorney General James offered the following tips:

  • Be skeptical of online ads or telephone callers that promise they can get you a mortgage modification or save your home from foreclosure. Only your bank or loan servicer can approve a loan modification.
  • Visit homeownerhelpny.com for information on how to avoid or report scams.
  • Do not give your personal financial information, such as your bank account number, social security number, or the name of your loan servicer, to a caller offering to help save you from foreclosure. Your bank will already have this information.
  • Never pay an up-front fee for mortgage-related services. It is a violation of New York law to charge upfront fees for such services, and violations should be reported to the Attorney General’s hotline at 1-855-HOME-456.
  • If you believe you have been scammed by a foreclosure rescue operator or a debt relief organization, submit a complaint to the New York State Attorney General’s Office: ny.gov/consumer-frauds/Filing-a-Consumer-Complaint

The case is being handled by Assistant Attorneys General Don Nguyen and Herman Wun of the Public Integrity Bureau, under the supervision of Real Estate Enforcement Unit Chief Travis Hill and Public Integrity Deputy Bureau Chief Stacy Aronowitz. The Criminal Justice Division is led by Chief Deputy Attorney General José Maldonado.

The Attorney General’s investigation was conducted by Investigator Walter Lynch under the supervision of Deputy Chief John McManus. The Investigations Bureau is led by Chief John Reidy.

The Attorney General thanks the New York City Sheriff’s Office for its assistance on this matter.

 

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Man Sentenced For Using Forged Deeds to Steal Homes

Stephanie Abbott —  October 19, 2018 — Leave a comment

Robert McCloud, 39, most recently of Warrenville, South Carolina, was sentenced today to 18 months in prison on a federal wire fraud charge stemming from a real estate scheme in which he and others used forged deeds and fake driver’s licenses to fraudulently transfer ownership of District of Columbia homes from the rightful owners.

According to the government’s evidence, McCloud and others identified vacant or seemingly abandoned residential properties in the District of Columbia, and then prepared and filed forged deeds with the District of Columbia’s Recorder of Deeds transferring the properties into fictitious names. Next, they agreed to sell these properties to legitimate purchasers and arranged with unsuspecting title and escrow companies to finalize the sale and transfer ownership. Finally, they shared the fraudulently-obtained sales proceeds amongst themselves.

In his guilty plea, McCloud admitted taking part in two such fraudulent transactions within a two-month period of 2015, which generated a total of $580,482 in proceeds.

In the first, in April 2015, McCloud filed a forged Intra-Family deed with the District of Columbia’s Recorder of Deeds purporting to show that a home in the unit block of K Street NW, Washington, D.C., was transferred from the true owners to a fictitious person.  The true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to transfer their home. McCloud then appeared at the title company pretending to be the owner in order to close the transaction, presenting a California driver’s license with his photograph but in the name of the fictitious person, signing the settlement documents and selling the property. The title company sent by wire transfer $195,527 to a bank account opened in the name of the fictitious person. McCloud withdrew approximately $43,000 of the funds before the crime was discovered; the rest of the funds were returned to the title company.

In the second transaction, in May 2015, a conspirator arranged for a forged deed with respect to another home, in the 6400 block of 16th Street NW, Washington D.C., to be filed with the Recorder of Deeds. As with the other property, the true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to sell the residence. In June 2015, McCloud appeared at the title company pretending to be the owner and using another fake California driver’s license with his photograph.  He again signed the settlement documents in the fictitious name. The title company sent by wire transfer $384,955 to a bank account opened in the name of the fictitious person. McCloud was arrested the following day.

The true owners of the homes, who are elderly, have faced difficult and lengthy proceedings in order to retitle the properties in their own names. Unwinding the fraudulent transfer is merely the first step for the victims to reclaim their ownership and interest in the properties and each must now settle various outstanding bills.

Although McCloud received $580,482 in proceeds from his wire fraud scheme regarding both real properties, law enforcement seized a total of $369,990, which was later administratively forfeited.  These forfeited funds, and the partial return of funds to the title company from the K Street transaction, reduced the amount owed in forfeiture to $57,965, which is the amount of the forfeiture money judgment.

McCloud pled guilty in June 2018, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amit P. Mehta. In addition to his prison term, McCloud must pay restitution in an amount to be set later by the Court, as well as a forfeiture money judgment of $57,965. Following his prison term, he will be placed on three years of supervised release, the first six months of which is to be spent in home confinement. McCloud also will be required to perform 150 hours of community service.

The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work performed by those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Stephanie Miller, former Paralegal Specialist Christopher Toms, Paralegal Specialist Aisha Keys, and Litigation Technology Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.

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57 Month Sentence in Scheme to Defraud Financial Institutions

Rachel Dollar —  September 28, 2015 — Leave a comment

Ray M. Mubarak, 56, Knoxville, Tennessee, was sentenced to serve 57 months in prison for conducting a scheme to defraud financial institutions and engaging in an unlawful monetary transaction with fraudulently-obtained loan proceeds.  He was also ordered to pay $1,993,938.44 in restitution to three banks and a title insurance company that lost money as a result of the scheme.

Mubarak pleaded guilty in May 2015 to federal charges stemming from his scheme to defraud multiple banks into loaning him over $6 million. He submitted false tax returns and personal financial statements which grossly inflated his income and net worth in order to qualify for the loans. Mubarak also admitted to defrauding the banks by causing them to rely on a fraudulent title opinion letter and forged loan closing documents and deeds.

The trial for Mubarak’s co-defendants, Dianna Mubarak and Blythe Bond Sanders, III, is scheduled for March 1, 2016.

Marbarak was sentenced by the Honorable Pamela L. Reeves, U.S. District Judge.  The investigation was conducted by the Internal Revenue Service – Criminal Investigation and Federal Bureau of Investigation.  The investigation and prosecution of Mubarak was coordinated with the Office of the District Attorney General, 6th Judicial District.  Matthew T. Morris, Assistant U.S. Attorney, represented the United States.

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Spiritual Help Through Mortgage Elimination Scheme?

Rachel Dollar —  September 25, 2015 — 1 Comment

John Michael DiChiara, 57, Nevada City, California; James C. Castle, 51, formerly of Santa Rosa, California; Remus A. Kirkpatrick, 58, formerly of Oceanside, California; George B. Larsen, 54, formerly of San Rafael, California; Laura Pezzi, 59, Roseville, California; Larry Todt, 63, formerly of Malibu, California; and Michael Romano, 68, Benicia, California, were charged by a federal grand jury in a 42-count indictment, with conspiracy, bank fraud, false making of documents, and money laundering in connection with a mortgage elimination scheme. Tisha Trites, 49, San Diego, California and Todd Smith, 44, San Diego, California, pleaded guilty to related charges before U.S. District Judge Garland E. Burrell Jr. on September 4, 2015.

DiChiara was arrested in Cool, California. Pezzi and Romano were arrested at their homes. The other four defendants listed in the indictment have yet to be arrested. Continue Reading…

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Beware of Fake Sales Transactions

Rachel Dollar —  July 31, 2015 — Leave a comment

  This scam is operating across the country and is not limited to properties in Lansing Michigan.  (It is also being perpetrated against potential renters who are “rented” homes that are not owned by the scammers.)

In the Craig’s List scams, a home buyer can generally protect themselves by depositing the earnest money with their own real estate agent or with an escrow company rather than handing money over to the scammers.  The fact that the scammers don’t actually own the property will be discovered during the title search that is conducted while the sales transaction is pending.

This is not the only scam that involves fake sales.  In another common scam, fake sellers actually forge quit claim deeds and ‘transfer’ the property to themselves.  Sometimes these scammers also rent the property from the real owners so that they can ‘show’ the property to potential buyers.

Looking at current ownership in these fake sales transactions may not be enough.  Home buyers and real estate professionals also need to look at the last transactions recorded against title to the property.  If the property has recently transferred by way of quit clam deed, a little more due diligence may be in order before handing over the earnest money deposit or purchasing the property. It is as easy as contacting the “prior” record title holder – who may not even be aware that their property has been transferred.  Quit claim transfers are not always fraudulent.  And fake transfer can be done by way of regular grant deeds.  We just see more fake transfers by quit claim.

In the Craig’s List scam, the fake sellers walk away with the earnest money deposit or down payment.  In a fake sales transaction, if it is not detected by the title company, the scammers walk away with the entire purchase price.

If a homeowner falls for one of these fake sales transactions and purchases a property that doesn’t actually belong to the seller and was transferred by way of a forged deed, the new homeowner’s only real recourse will be their title insurance policy.

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