Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Thursday, July 20, 2017
Feds Bag Suspect In $20 Million Real Estate Ponzi Scheme Who Allegedly Used Forged Deeds To Sell Apartment Complexes That He Didn't Own To Unwitting Investors
In Fresno, California, The Business Journal reports:
A Clovis resident was arrested Thursday [July 6] on charges of running a $20 million Ponzi scheme.
Seth Adam Depiano, 36, was arrested in Las Vegas, and faces criminal charges of mail fraud, wire fraud and money laundering.
According to court document, Deplane is accused of operating a Ponzi scheme that lured real estate investors into investing more than $20 million into businesses he controlled, operating under names including The Rental Group, U.S. Funding and Home Services LLC and Draymond Homes.
Depiano is suspected of fraudulently promising investors he would use their money to purchase residential properties and either manage them for rental income or arrange for them to be renovated and resold.
Depiano is accused of presenting investors with document that falsely represented high occupancy rates at the properties, but according to court document, he often had no authority to purchase or sell the properties, and misled investors with fraudulent documents misrepresenting the properties’ ownership.
Several of the properties in question are located in Fresno.
One of the properties is the 16-unit North Roosevelt Apartment Complex in Fresno, according to court documents. Depiano is accused of selling the property to investors for $795,000, though he did not own it or have the authority to sell it.
Another property named in court documents was the 96-unit “Winery Complex” at 1190 S. Winery Ave. in Fresno, which was marketed and allegedly “sold” for $1.7 million as an apartment complex, though it is actually a collection of individually owned condos.
The FBI investigation was initiated in September 2015, stemming from a report to the Los Gatos Police Department from a notary who said her signature had been forged on a grant deed document for the North Roosevelt complex.
He is also suspected of paying investors rental income that, in fact, was money other investors had given him for investment purposes.
Some of the properties he marketed did not actually exist, alleges the U.S. Attorney for the District of Nevada, who investigated the case along with the Federal Bureau of Investigation.
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The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
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The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
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Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
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Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
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ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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