Archives For Notary Fraud

Local Non-Profit Director Charged in Pernicious “Deed Fraud” Scheme

Stephanie Abbott —  February 28, 2024 — Leave a comment

Zina Thomas, 60, Detroit, Michigan, was charged in a criminal complaint filed in United States District Court for her role orchestrating a fraud scheme that stole houses from dozens of Detroit residents.

The complaint charges Thomas with conspiracy to commit wire fraud, wire fraud, money laundering, and aggravated identity theft. Thomas was arrested today.

According to the complaint, Thomas, while serving as the Director of Homeownership Programs for the United Community Housing Coalition (UCHC), conspired with other individuals to steal over 30 properties across Wayne County, predominately located in the City of Detroit.  The complaint alleges that Thomas and others perpetrated a scheme to defraud by filing multiple fraudulent quitclaim deeds, frequently transferring the target properties from the victim-owners to non-existent “interim owners” before ultimately selling the properties to unwitting third parties.  It is also alleged that these fraudulent deeds were falsely notarized by Thomas or another person, which made them appear legitimate and thus enabled them to be filed with the Register of Deeds. The complaint also alleges that Thomas emailed a Wayne County Treasurer’s Office employee fake driver’s licenses and other documents, which were then uploaded into the Treasurer’s Property Tax Administration system to halt pending foreclosures.  According to the complaint, Thomas received payment for at least some of the properties via wire transfer into a bank account in the name of her realty company, and Thomas then transferred proceeds from that account to her personal bank account. And the scheme targeted low-income individuals who were facing potential tax foreclosure. According to the complaint, Thomas currently resides in one of the properties involved in the scheme.

The United Community Housing Coalition (UCHC), is a 501(c)(3) nonprofit organization providing housing assistance to Detroit’s low-income residents.  The UCHC and its executive leadership cooperated with the investigation.

United States Attorney Dawn N. Ison made the announcement.

Ison was joined in the announcement by Special Agent-in-Charge Cheyvoryea Gibson, Federal Bureau of Investigation; Special Agent-in-Charge Machelle L. Jindra, Department of Housing and Urban Development Office of Inspector General; Detroit Police Chief James E. White; and Wayne County Register of Deeds Bernard J. Youngblood.

United States Attorney Ison stated, “This scheme targeted some of our most financially vulnerable citizens and was perpetrated by an individual whose job it was to help those very people avoid losing their homes to foreclosure. This arrest is the result of a multi-agency, cooperative investigation involving both federal and state law enforcement, and is reflective of our ongoing efforts to identify and disrupt fraud schemes like this as quickly as possible.”

“While working in a capacity to provide assistance to residents experiencing financial hardships, Ms. Thomas allegedly exploited individuals in the process of losing their homes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI and its law enforcement partners will continue to investigate these reprehensible acts of fraud.”

“Thomas allegedly abused her position to help fraudulently sell properties facing tax foreclosure for her own personal gain,” said Special Agent-in-Charge Machelle Jindra with the U.S. Department of Housing and Urban Development Office of Inspector General.  “HUD OIG will continue to work with its law enforcement partners to bring bad actors to justice and protect the integrity of HUD housing programs.”

“I want to thank U.S. Attorney Dawn N. Ison for her continued collaboration to ensure that those who victimize Detroit residents face the fullest consequences of the law,” said Detroit Police Chief James E. White. “The DPD remains committed to addressing all aspects of crime and working with our partners across law enforcement to keep Detroiters safe.”

“A rash of incoming complaints to my Deed Fraud Task Force, followed with methodical investigative teamwork, culminated in today’s announcement,” said Wayne County Register of Deeds Bernard J. Youngblood.  “Wayne County is the national leader in combating this new crimewave and we are proud to partner with local, state and federal law enforcement to protect the property rights of our citizens.”

A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.

This case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development Office of the Inspector General, and the Detroit Police Department.  Significant investigative assistance was provided by the Wayne County Register of Deeds’ Mortgage & Deed Fraud Unit.  The case is being prosecuted by Assistant United States Attorney Ryan A. Particka.

 

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Man Found Guilty in Scheme to Steal Residential Real Estate Using Fraudulent Deeds

Stephanie Abbott —  February 12, 2024 — Leave a comment

Jeffrey M. Young-Bey, 67, Washington, D.C was found guilty today on twelve federal charges stemming from a scheme in which he used a fake notary stamp, forged signatures, and fraudulent property deeds to steal residential real estate property. The scheme generated more than $850,000 in fraudulent loans obtained through mortgages taken out against the value of the stolen real estate.

According to the government’s evidence, beginning in November 2019, Young-Bey conspired to steal a residential townhome located in LeDroit Park in order to obtain mortgage financing against the stolen property. Specifically, Young-Bey identified a target property owned free and clear by an elderly homeowner located in the District. Young-Bey then prepared a fraudulent property deed, including forged signatures of the true owners and used a fake notary stamp to make the deed appear legitimate. Young-Bey filed the deed with the District of Columbia Recorder of Deeds, transferring the title from the true owners to a corporate entity. Young-Bey passed a check to the D.C. Recorder of Deeds to pay for the transfer taxes but put a stop payment order on the check before the D.C. government could cash the check.  Young-Bey caused the fake deed to be recorded with the D.C. Recorder of Deeds and then falsely told a mortgage services business that another individual had inherited the property and wanted to take a large loan against the value of the home. Young-Bey created a fake rental lease on Rocketlawyer.com and sent the lease to the mortgage company to convince them that his associate owned the home and rented the property for profit. The mortgage company was deceived into loaning Young-Bey’s associate approximately $360,000 against the value of the home they did not own, which was split evenly between the two. Young-Bey used his half of the proceeds to buy a BMW 3-Series valued at approximately $23,000.

After succeeding on the first scam, Young-Bey executed a second fraudulent scheme on a Shephard Park property in the District, forging the names of the two owners, using the fake notary stamp, and recording the deed at the D.C. Recorder of Deeds Office. Young-Bey again put a stop payment order on the transfer tax check before it could be cashed. Young-Bey used the recorded deed to obtain a construction loan in excess of $500,000 against the value of the house.  Young-Bey took a portion of the loan and purchased a BMW 7-Series worth approximately $120,000. He promptly sold the home to a legitimate real estate company for an additional $42,000 in profit. The fraud was discovered when the real estate company began performing renovations on the home and the rightful owners were alerted to the construction and demolition by their neighbors.

The jury verdict, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office’s Criminal and Cyber Division.

Young-Bey was found guilty before the Honorable Colleen Kollar-Kotelly on one count of conspiracy to commit mail fraud and bank fraud, two counts of bank fraud, two counts of mail fraud, two counts of money laundering, and five counts of aggravated identity theft. A sentencing date is pending. Young-Bey’s conspiracy and fraud convictions carry a maximum sentence of 20 years in prison. The money laundering counts carry a maximum sentence of 10 years. The aggravated identity theft charges call for a mandatory sentence of two years in prison.

This case was investigated by the FBI’s Washington Field Office with assistance from the Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorneys Christopher R. Howland and Kevin L. Rosenberg of the Fraud, Public Corruption, and Civil Rights Section with the assistance of Paralegal Specialist Gina Torres. Valuable assistance was provided by Assistant U.S. Attorney Joshua S. Rothstein, former Assistant U.S. Attorney Virginia Cheatham, former Special Assistant U.S. Attorney Viviana Vasiu, and Paralegal Specialist Lisa Abbe who investigated the case. The prosecution team was also assisted by Tonya Jones from the Victim Witness Assistance Unit and Assistant U.S. Attorney Daniel Lenerz from the Appellate Section.

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CON MEN & CORPORATION PLEAD GUILTY IN DEED FRAUD SCHEME

Stephanie Abbott —  December 27, 2023 — Leave a comment

Russell Carbone, 69, Queens, New York, and Terrell Hill, 40, Long Island, New York, pleaded guilty to a wide-ranging scheme to steal residential properties by filing forged deeds with city officials.

Carbone and Hill, pleaded guilty to scheme to defraud in the first degree and six counts of offering a false instrument for filing in the first degree. RC Couture Realty Inc., a corporation run by Carbone and his wife, Galyna Couture, 61, pleaded guilty to criminal possession of stolen property in the first degree and six counts of offering a false instrument for filing in the first degree.

Carbone and Hill worked together to target homes where the owners died and their heirs had not taken title to them. To help find the properties, Hill, a landscaper, would alert Carbone, a disbarred attorney, to homes that appeared abandoned. Most turned out to have gone into foreclosure.

As part of the plea, the court voided deeds to seven homes in Queens and two in Nassau County, New York so they could be returned to their rightful owners.

In addition to forfeiting the ill-gotten deeds, Carbone will pay $56,960 in restitution. The money represents rent payments he collected after illegally taking over properties and leasing them out. The money will go to the heirs of the legitimate property owners. Carbone’s license as a notary was also revoked.

R.C. Couture Realty must pay a $100,000 fine.

Hill is also expected to face up to three years in prison when he is sentenced on January 30, 2024.

The Queens homes stolen were located on 116th Road, 115th Avenue, 148th Street and 192nd Street in Jamaica; on 131st Avenue in Laurelton Gardens; and on 104th Avenue and 192nd Street in St. Albans.

In Nassau County, the homes were on Pinebrook Avenue in West Hempstead and Advent Street in Westbury.

In some instances, the deeds were transferred more than once among the defendants and entities connected to them, resulting in 14 deeds for nine homes.

In two additional cases that were part of the charged scheme to defraud, Carbone and Hill had already agreed to relinquish deeds to the legitimate owners.

And in another case, the duo had already sold a home on 148th Street in Jamaica to a third party. The District Attorney’s office will file a motion to apply a state statute and restore that deed to its rightful owner, sparing the victim the time and expense of additional legal proceedings in civil court.

According to the charges and plea agreements:

  • Between November 8, 2019, and February 14, 2023, Hill and Carbone forged signatures on property records to transfer to themselves the ownership of multiple properties.
  • The signatures were notarized with fraudulent notary stamps that Hill ordered from Amazon in the names of actual notaries. Carbone also used his own, legitimate notary stamp on some documents.
  • The fraudulent documents were filed with the New York City Department of Finance.

In the case of the home on 116th Road in Jamaica, Hill called a Bronx woman in November 2019 about possibly selling the house, which she had inherited with her brother. Following the phone conversation, Hill introduced the victim to his “business partner,” Carbone, who met the woman at a local coffee shop to discuss the sale. The woman declined the purchase offer.

A deed transferring title to the property was filed nonetheless on March 12, 2021, indicating that RC Couture Realty, Inc. and Terrell Hill each owned a 48% interest in the property and the victim and her sibling each owned a 1% share.

Hill and Carbone forged the siblings’ signatures on the deed transfer documents, which were stamped with a fraudulent notary stamp and Carbone’s legitimate stamp.

The actual notary told investigators that the stamp was not hers. Hill’s Amazon records showed he ordered a notary stamp with this notary’s information and had it shipped to his home in West Hempstead.

In another case, a 2021 deed transfer for a home on Sutter Avenue in Jamaica included the purported signature of an heir to the property’s original owner. The document said the home was transferred to Carbone and Hill with the heir retaining 1% ownership.

The heir said he did not sign the document. The notary whose stamp is on the paperwork also said he did not sign, nor stamp, the document. Hill’s Amazon records showed another purchase shipped to his home in West Hempstead for a notary stamp with this notary’s information as well.

A nephew of the property’s original owner was living in the home and Carbone wrote to him, portraying himself as the new owner trying to “make a deal” to get him to leave. Carbone then started eviction proceedings against him.

Facing a civil lawsuit, Hill and Carbone agreed to void the deed, returning the home to the rightful owner.

Queens District Attorney Melinda Katz made the announcement.

District Attorney Katz said: “When I started the Housing and Worker Protection Bureau three years ago, I promised to protect homeowners from predatory real estate scams that often target vulnerable neighborhoods. Since then, we have undone the criminal handiwork of scammers and con artists and pioneered the use of a state statute to return stolen properties to their rightful owners. With the conclusion of this prosecution, the largest we have undertaken so far, our office will have restored a total of 14 homes to their rightful owners.”

Assistant District Attorney Rachel Stein, Chief of the Real Estate Theft Unit, in the District Attorney’s Housing and Worker Protection Bureau prosecuted the case under the supervision of Assistant District Attorneys William Jorgenson, Bureau Chief, and Christina Hanophy, Deputy Bureau Chief, and under the overall supervision of Executive Assistant District Attorney for Investigations Gerard A. Brave.

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