Title Scammer Pleads Guilty To Using Sham Companies, Collusive Lawsuits, Fraudulently-Obtained Court Judgments To Create Impression That Mortgages Were Invalidated, Then Pocketing $1.7+ Million In Proceeds From Subsequent Sale Of Purportedly 'Free & Clear' Homes

From the Office of the U.S. Attorney (San Francisco, California):

• Robert Jacobsen pleaded guilty today [July 19] to wire fraud and money laundering charges(1) in connection with a scheme to use sham companies and collusive lawsuits to create the appearance that mortgage liens had been invalidated, [...].
  
  According to the plea agreement, Jacobsen, 69, formerly of Lafayette, Calif., admitted that from October 2012 through October 2013, he executed a scheme to sell homes to buyers who were duped into believing that the homes had clear title.
  
  Jacobsen admitted that he identified homes with mortgage deeds of trust that were recorded for the benefit of an entity called “American Brokers Conduit” (ABC). Jacobsen also admitted that he registered a separate entity in New York called “American Brokers Conduit Corporation” (ABC Corp.). Jacobsen then hired an attorney to file lawsuits against his phony ABC Corp., claiming that mortgages that had been originated by the real ABC were invalid.
  
  Controlling both sides of the lawsuits, Jacobsen caused the attorneys to enter into stipulated judgments, agreeing that the mortgage deeds of trust were invalid. The courts then entered judgment based on these fraudulent agreements, which Jacobsen recorded with county recorder’s offices. The result created the impression that the deeds of trust had been legitimately invalidated by federal or state courts.
  
  Jacobsen admitted that two homes that were the subjects of such lawsuits were in Danville, Calif., and San Francisco, Calif. Jacobsen admitted that, after obtaining fraudulent judgments, he sold the Danville home for $540,000 and the San Francisco home for $1.2 million. Jacobsen admitted that in both cases, his representations regarding the fraudulent court judgments had a natural tendency to influence the buyers to purchase the homes.
  
  As part of his plea agreement, Jacobsen further admitted that proceeds from the sale of the Danville and San Francisco homes were used to pay for a 54’ Hylas sailboat that the government seized at a marina in Beaufort, North Carolina on November 18, 2015. Jacobsen agreed that his interest in this sailboat was subject to forfeiture.

Source: East Bay Real Estate Agent Pleads Guilty To Wire Fraud And Money Laundering In Connection With Scheme To Defraud Homeowners And Mortgage Holders (Defendant Admits to Orchestrating Sham Lawsuits to Create the Appearance that Mortgages Were Invalidated).

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(1) See Indictment - U.S. v. Jacobsen.