Realtors learn of the latest real estate scams

Jennifer Dalton, an investigator with the Real Estate Fraud Unit of the Santa Clara County District Attorney’s office, recently informed members of the Silicon Valley Association of Realtors that elder fraud and wire fraud are still quite prevalent in Santa Clara County. People also continue to fall for Nigerian email scams.

Dalton is one of three investigators in the county DA’S office. They investigate rental scams, Ponzi schemes involving the financing, sale and transfer of property, wire fraud and other scams, many of which are instigated by persons outside the county. Nigerian email scams are generated from outside the U.S. and perpetrators use money mules, some who are local and many who are from out of the county.

There are numerous cases of loan modification scams in the area, warned Dalton. “There’s a lot of money here and lots of investors. Majority of the scammers are not from the area. We want to get these people out.”

Dalton said justice is served in many ways, but the priority is getting the victim’s money back. “It’s money or their freedom,” she said.

Dalton noted the unit is also dealing with an increase in elder fraud. Seniors are duped into reverse mortgages or signing away their property to a family member. Some cases are difficult because you must prove intent by the family member. Dalton noted some banks can be complicit, too, because even if names on a document don’t match, as long as the bank account numbers match, some banks release the money.

Sovereign citizens who do not believe the law applies to them are usurping the role of agents and other officials. They file liens and notices seeking to wipe out mortgages and cancel foreclosures, then charge homeowners for their services. They convince homeowners to deed the property to them, have them make payments to them with the promise that after a few years they would deed the property back. In the meantime, these criminals strip the property of all its equity, or sell the property to someone else.

Despite warnings, compromised business emails and wire fraud continue to happen on the real estate side. To protect your account, Dalton suggests periodically changing your passwords.

“It’s a simple tip, but this tip will save you in the long run,” said Dalton.

Here are more safety tips to protect homeowners from real estate fraud from the Real Estate Fraud Unit and the Silicon Valley Association of Realtors:

• Avoid doing business with strangers you meet on the internet or elsewhere who tell you they have a “great business deal” for you.

• Do not give out your social security number or other personal identifying information until you have thoroughly checked out the individual or company you are doing business with.

• Never pay for real estate deals with cash.

Pay with a check so your payments can be traced if needed.

• You are never required to pay money for a loan modification up-front. No one can demand money before they perform their services.

• Read all documents before you sign them. Be suspicious of anyone who tells you to “just sign” the documents without reading them. Ask for a copy of everything you sign.

• Before wiring any money, call the intended recipient to verify the wiring instructions. Only use a verified telephone number to make this call.

• Do not trust contact information in unverified emails. Sophisticated hackers recreate legitimate-looking signature blocks with their own telephone number.

• If it sounds too good to be true, it probably is!

If you suspect you have been a victim of real estate fraud, contact the Santa Clara County District Attorney’s office at (408) 792-2879.