While Gov. Hochul vowed to provide funding to adequately finance MTA projects, at press time no firm plans have been released.
According to the FBI’s 2023 Internet Crime Complaint Center Report, there were more than 101,068 complaints filed by individuals over 60 years old resulting in more than $3.4 billion in losses in 2023.
A well-known business leader, Weale was perhaps best known for co-founding Country Bank in Carmel and later serving as President and CEO of the Putnam County Economic Development Corp. for 13 years.
According to the FBI’s 2023 Internet Crime Complaint Center Report, there were more than 101,068 complaints filed by individuals over 60 years old resulting in more than $3.4 billion in losses in 2023.
On July 12, 2024, the Office of the Attorney General announced the conviction of the leader of a deed theft ring in Queens that stole homes owned by the elderly, disabled individuals, or their estates [see https://bit.ly/3Y1EAY3]. Unfortunately, deed theft (also known as home title theft) and real estate fraud have been on an alarming rise not only in New York State but throughout the entire country. An individual was charged in Detroit for stealing more than 30 homes [see https://bit.ly/4dmNOmf]. This devastating crime leaves its victims and their family members devasted. As with all fraud and criminal activity, while it will be impossible to eliminate it entirely, it is very important for the public, and particularly real estate professionals, to be aware of these threats and predatory schemes so they may be prevented as much as possible.
Real estate and other financial fraud involving the elderly include forged, coerced or fraudulently obtained signatures on legal documents, illegal use of powers of attorney and scams that target an individual’s money or property are increasing year after year. According to the FBI’s 2023 Internet Crime Complaint Center (IC3) Report [see https://bit.ly/3WsebQT], there were more than 101,068 complaints filed by individuals over 60 years old resulting in more than $3.4 billion in losses in 2023. This represents a 14% increase over 2022. The FBI’s IC3 also prepares an annual Elder Fraud Report [see https://bit.ly/3W5TREC]. The 2023 IC3 Elder Report indicates that 1,498 individuals over the age of 60 lost more than $65 million in real estate scams in 2023, which was an increase of more than 14% over 2022.
There are many different ways that criminal actors perpetrate these frauds. These individuals search for properties that do not have mortgages and are free from liens. Many times, these criminals will target properties owned by elderly or disabled individuals, or individuals who may not live in the area, live out-of-state, or who own rental properties.
These predators also target properties owned by individuals who have recently passed away. The criminals will read obituaries published in the newspapers or on funeral home websites or search the Internet. They then conduct a search of public real estate records to determine whether the deceased individuals owned any real property.
Once an individual, an estate, and a specific property are targeted, the perpetrators then engage in the usual methods of identity theft, such as e-mail fraud, direct phone calls, mail theft, and a variety of other means, in order to obtain Social Security numbers, driver’s license information and other personally identifiable information. Oftentimes, they use forged or false identity documents to pose as the owner of the property and sell the property to an unsuspecting purchaser. Other times, they simply transfer the property to themselves or to an entity formed by them so they may subsequently sell it to an unsuspecting purchaser.
Another common, and even more pernicious, method these criminals use is to target elderly individuals who may be suffering from dementia, Alzheimer’s, or may be affected by some other form of physical or mental ailment, or are in financial distress. They usually target an individual who does not have any family, has limited family interaction, or has family members who do not visit frequently or do not live locally. These criminals befriend these vulnerable individuals and work their way into their lives, seemingly being seen as a savior; then when least expected, these criminals have the victim unknowingly execute a power of attorney, sign the deed to the property over to them, or, in some instances, even have them sign a Will leaving everything to the criminal.
Once these criminals have stolen their victim’s identity, or have obtained title to the property through some fraudulent manner, they then attempt to sell the property to an unknowing purchaser. The real estate agent then becomes the next target. The Secret Service has issued an advisory relating to real estate scams involving vacant land which should be utilized as a tool by all real estate agents to discern potential red flags when contacted by a client who may be involved in a fraudulent transaction [see https://bit.ly/4czL2db]. The Secret Service Advisory points out the following:
The Secret Service also provides the real estate agent and other real estate professionals with the following prevention tips:
It is important for real estate agents, and other real estate professionals, to ensure the person they are working with is the actual person he or she portends to be. If there is any doubt, an enquiry should be made for additional identification. It is not uncommon for prospective clients to reach out to real estate agents and attorneys and indicate they are out-of-state, and they own property locally and need assistance. It is important, especially with the availability of video-conferencing tools, to have video conferences with all prospective clients. If they are local, then it is recommended to have a live in-person meeting with all clients. If the client refuses, this should raise a red flag. It is important for all real estate brokers to educate their licensed salespersons on this growing fraud so they may deal with and report any issues before it is too late.
The Attorney General’s Office provides additional tips for homeowners to discover potentially fraudulent activities [see https://bit.ly/3y8Q4yb]. For homeowners who are in financial distress, they should beware of any individuals or entities who “promise” or “guarantee” certain results, such as loan modifications or other assistance or outcomes with existing mortgages. Homeowners should avoid paying any upfront fees for loan modifications. Homeowners should also never agree to sign over their deed to a mortgage assistance company or individual. A reputable company will never request that a deed be transferred to receive any mortgage assistance.
For individuals who reside in New York City, it is recommended that they register to receive notifications of legal changes, including ownership changes, to their property [see https://bit.ly/3LsDVr5]. Homeowners should check with their local County Clerk’s Office to see if there is a similar notification option. It is also recommended that homeowners proactively and periodically check the tax department’s records and County Clerk’s deed records at least annually, and even more frequently.
It is also important to be aware of sudden changes, such as not receiving tax, utility or other bills. New York City’s ACRIS System allows individuals to easily access property records. Other counties may offer similar access. The Westchester County Clerk’s office sends a letter to the homeowner alerting them to the fact that a new deed has been filed. Many towns and villages also allow homeowners to search tax records, which should be done periodically, as any changes to the record owner appearing on the tax records usually indicate that a new deed has been recorded.
For those victims who are elderly or who may be suffering from mental or physical ailments, it is much more difficult for these individuals to proactively take steps to avoid or prevent deed fraud, home title theft, or mortgage fraud. It is incumbent on family members, or close friends, if they are able, to take these steps on behalf of their vulnerable relatives and friends. It is also important for members of the public, and neighbors, to alert the authorities of any potential fraud or criminality if they witness any suspicious activity taking place.
New threats are introduced every day when it comes to fraud and criminal schemes, and everyone can do their part to fight these threats. If anyone has any information regarding home title theft, the Office of the Attorney General should be contacted by calling 1 (800) 771-7755, by emailing deedtheft@ag.ny.gov, or by filing an anonymous complaint online by accessing the following link: https://bit.ly/46arbPb. The local authorities should be contacted as well.
A real estate transaction is one of the most significant financial transactions an individual undertakes in a lifetime and a person’s home is usually the largest single (if not the only) asset that person owns. Deed theft can strip this asset from individuals instantly, the effects of which are not only devastating to the victims, but to their families as well. It is important for the public and real estate professionals to be vigilant and remain informed of all types of fraud so that these crimes can be prevented.
Legal Column author John Dolgetta, Esq. is the principal of the law firm of Dolgetta Law, PLLC. For information about Dolgetta Law, PLLC and John Dolgetta, Esq., please visit http://www.dolgettalaw.com. The foregoing article is for informational purposes only and does not confer an attorney-client relationship and shall not be considered legal advice. The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views or positions of HGAR, its affiliates, or any other entity.
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