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FBI Investigation: Rip-off Artists Use Cast Deed and Counterfeit ID’s to Steal Harmony, MA Property; Native Actual Property Agent, Developer, and Attorneys Caught Up In Fraudulent Transaction

Utilizing a counterfeit driver’s license and passport (proven at proper), pretend e-mail handle impersonating the actual proprietor, and a cast deed and notary stamp, rip-off artists had been one way or the other in a position to dupe an area actual property agent and two seemingly skilled actual property attorneys, and get to the closing desk, the place a Harmony, MA lot was fraudulently offered to an area developer, and the scammers getting away with practically $500,000 in stolen sale proceeds. The transaction had red-flags all over, but all of the purported professionals appeared to have buried their head within the sand and ignored the clear warnings of fraud, based on a lawsuit just lately filed by my workplace on behalf of the victims. With a looming FBI monetary crimes investigation and energetic federal grand jury continuing in Boston, my shoppers are in search of to revive their title and possession and recuperate damages for this title theft rip-off.

Title Theft: A Transient Historical past

With the proliferation of publicly searchable land information, web search capabilities, and reliance on digital communications, “title theft” has turn out to be an more and more prevalent felony scheme to switch properties from unsuspecting homeowners and steal hundreds of thousands of {dollars}. Property homeowners throughout the nation have been focused by scammers who put together deeds purporting to convey title to property the scammers don’t personal. Typically, the true homeowners are totally unaware of those bogus transfers. In different situations, the scammers use misrepresentation to induce unsophisticated homeowners to signal paperwork they don’t perceive.

Massachusetts isn’t any stranger to the wave of title theft schemes. In 2018, convicted felon Allen Seymour and accomplices orchestrated a posh scheme utilizing cast paperwork, bogus notary stamps, and faux driver’s licenses to defraud a number of harmless house homeowners, patrons and lenders in reference to fraudulent gross sales of properties in Cambridge, Brookline and Somerville, leading to over $1.5 Million in losses. I represented a number of victims in these circumstances which had been efficiently prosecuted by the Legal professional Common’s Workplace, with Seymour sentenced to 6-8 years in jail.

Rip-off Artists Goal A Vacant Lot in Mattison Farms Subdivision in Harmony

My shoppers are an older married couple now residing in South Carolina. Again in 1991, they bought a 1.8 acre lot within the Mattison Farms subdivision in Harmony. They initially meant to construct a house on the lot, nevertheless, the husband’s observe as a heart specialist took the household out of state for a number of many years. The couple stored the property and paid the actual property taxes all alongside, hoping sooner or later possibly they might transfer again to Massachusetts or reward the lot to considered one of their three grownup sons so they might sometime construct a house right here. The lot is now seemingly value north of $1 Million.

In some unspecified time in the future in 2023, utilizing a pretend electronic mail account, the rip-off artist contacted an area actual property agent, and satisfied him that she was the true proprietor of the Harmony lot and taken with promoting it. Profitable, the dealer positioned the Property on the A number of Itemizing Service with an inventory worth of $699,900, promoting that it was “an excellent alternative to construct your dream house within the ultra-exclusive, wanted and prestigious Mattison Farm neighborhood. One of many solely remaining tons and nestled on a 1.84 acre parcel. Shut proximity to Harmony & Nashawtuc Nation Membership.” The dealer shortly discovered an purchaser in an area actual property agent and developer who had his sights set on constructing a brand new luxurious house on the Property. Utilizing a pretend digital signature, the imposter signed a suggestion and buy and sale settlement with the client, agreeing to promote the lot for $525,000 – lots of of thousand of {dollars} lower than the truthful market worth of the lot.

Purple Flags: Counterfeit South Carolina Driver’s License, U.S. Passport, an Residence in Dallas, Texas

One of many keys to this profitable rip-off was that the rip-off artist offered the gamers concerned with a replica of a pretend South Carolina driver’s license and US Passport (proven above). Nonetheless, each identifications show tell-tale indicators of counterfeit. The driving force’s license and passport each use the identical {photograph} – which is unattainable as a result of the state registry of motor autos and U.S. Passport Workplace work off impartial methods. The driving force’s license format is clearly pretend when in comparison with an actual South Carolina ID, and there’s no proof of a hologram.

Much more suspicious, regardless of the ID’s exhibiting a South Carolina residential handle, the rip-off artist suspiciously instructed the vendor lawyer to ship the deed and energy of lawyer to a nondescript condo in Dallas, Texas. And when these “signed” paperwork got here again to the vendor lawyer there have been different tell-tale indicators of forgery and fraud. Important parts of the notary clause had been left clean; the county of notarization is misspelled as “Tourrant,” as a substitute of Tarrant County, Texas; the notary’s signature is clearly bogus; and the notary stamp was lifted from different paperwork and transposed utilizing a PDF enhancing program.

City Permits and Entry

With the actual homeowners blissfully unaware and the professionals apparently not selecting up on the fraud, the transaction proceeded ahead with the client making use of for numerous city approvals for building. Utilizing a pretend digital signature, the rip-off artist signed numerous functions for these approvals, which had been submitted by the client to the City of Harmony. The true homeowners bought a licensed letter in regards to the city approvals, and instantly contacted the Harmony Pure Useful resource Director who knowledgeable them that the Property was “up on the market.” My consumer advised the director that they completely didn’t listing the Property on the market and had no information of any pending sale, and despatched her an electronic mail demanding that every one proceedings be terminated. After that, based on our lawsuit, the director knowledgeable the client group of my consumer’s name, nevertheless, nothing was finished to research the potential fraud and cease the approval course of. Shockingly, the City authorized the permits with none additional inquiry.

Regardless of All The Purple Flags for Forgery and Fraud, the Closing Goes Ahead

As of late March into April 2024 – months previous to the scheduled closing – all events and their attorneys knew or ought to have identified of the existence of irregularities, fraud and/or forgery on this transaction, based on our lawsuit. But, none of them put the transaction on pause with the intention to additional examine whether or not actually the transaction concerned forgery or fraud, as could be affordable to do within the circumstances. Regardless of all the seen pink flags, discover of the true proprietor’s declare of possession and certain forgery, the closing of the transaction went ahead on Could 13, 2024, with the vendor lawyer executing the closing paperwork pursuant to the solid energy of lawyer.

The ultimate and maybe most telling pink flag got here on the very finish of the closing course of with the rip-off artist instructing the attorneys to ship the practically $500,000 vendor proceeds examine to a UPS Retailer handle in Philadelphia, PA. So at this juncture we have now a South Carolina handle on the motive force’s license and passport, a Dallas, Texas condo handle for the deed and energy of lawyer supply, and UPS storefront in Philly for the proceeds examine. Because the saying goes, “make it make sense.”

The rip-off artist obtained the examine, deposited it right into a Charles Schwab account, and the cash is now gone, together with the title to my consumer’s property.

To make issues far worse, there may be now a $1.8 Million building mortgage mortgage on my consumer’s title, and the “purchaser” is nicely into web site work and building on the Property. The land has been cleared and graded with quite a few bushes lower down, a basis poured and a big home framed out, parts of the septic system put in, and utility service introduced in, as proven above.

The Aftermath: FBI Investigation And Superior Court docket Lawsuit

When my consumer in the end found that their property had been formally offered and {that a} home was being constructed on the land, she began shaking and screaming, after which fainted, spending the following days and weeks riddled with nervousness and nightmares. My shoppers then went to the FBI, Harmony Police and the Middlesex District Legal professional’s Workplace to report the matter. The FBI Monetary Crimes Squad in Boston is conducting an energetic investigation of this matter, and FBI brokers have already interviewed the 2 attorneys concerned within the transaction who’re cooperating. Grand jury subpoenas have additionally been issued. The rip-off artists haven’t been discovered as of but.

On September 11, 2024, we filed the lawsuit under for quiet title, trespass, civil conspiracy, and negligence towards the patrons, the developer and the attorneys concerned within the transaction. My shoppers are hopeful that they’ll restore their possession to their property and get some measure of compensation for this ordeal, which ought to have by no means occurred. I’ll preserve you posted as to developments. This story is a painful warning to all actual property professionals to be on the look out for title theft scammers from out of state who goal vacant properties or unsophisticated homeowners. And for sure, at all times buy proprietor’s title insurance coverage whenever you purchase any actual property! There are additionally “Title Lock” companies which declare to observe your title and possession however I can not vouch for them in any respect.

The CBS 4 Boston I-Workforce just lately did a phase on the case, under.