Another Adverse Possession Crackpot Stakes Claim To Foreclosed Home; Recent Target: Vacant $2.5M Boca Raton Waterfront Mansion; Cops Befuddled As BofA Fiddles

In Boca Raton, Florida, ABC News reports:

• The neighbor of a Florida man invoking an obscure real estate law to stake a claim to an empty $2.5 million mansion said he believes that the man is a pawn in a attempt to cash in on the empty property.
  
  Andre "Loki" Barbosa has lived in the five-bedroom Boca Raton, Fla., waterside property since July, and police have reportedly been unable to remove him. The Brazilian national, 23, who reportedly refers to himself as "Loki Boy," cites Florida's "adverse possession" law in which a party may acquire title from another by openly occupying their land and paying real property tax for at least seven years.
  
  The house is listed as being owned by Bank of America as of July 2012, and that an adverse possession was filed in July.
  
  After Bank of America foreclosed on the property last year, the Palm Beach County Property Appraiser's Office was notified that Barbosa would be moving in, according to the South Florida Sun-Sentinel.
  
  The Sun-Sentinel reported that he posted a notice in the front window of the house naming him as a "living beneficiary to the Divine Estate being superior of commerce and usury."
  
  On Facebook, a man named Andre Barbosa calls the property "Templo de Kamisamar."
  
  A neighbor of the Boca property, who asked not be named, told ABCNews.com that he entered the empty home just before Christmas to find four people inside, one of who said the group is establishing an embassy for their mission, and that families would be moving in and out of the property. Barbosa was also among them.
  
  Police were called Dec. 26 to the home but did not remove Barbosa, according to the Sentinel. Barbosa reportedly presented authorities with the adverse possession paperwork at the time.
  
  The neighbor said he believes that Barbosa is a"patsy."
  
  "This young guy is caught up in this thing," the neighbor said. "I think it's going on on a bigger scale."
  
  Bank of America responded to ABCNews.com, saying that it is in communication with the Boca Raton police department regarding concerns at the house.(1)
  
  "There is a certain legal process we are required by law to follow and we have filed the appropriate action. The bank is taking this situation seriously and we will work diligently to resolve this matter," the bank said in a statement.
  
  Barbosa could not be reached for comment.
  
  The Florida Department of revenue even posts the form to establish adverse possession on its website, but it is not the equivalent of a lease.
  
  The neighbor says that although the lights have been turned on at the house, the water has not, adding that this makes it clear it is not a permanent residence. The neighbor also says that the form posted in the window is "total gibberish," which indicated that the house is an embassy, and that those who enter must present two forms of identification, and respect the rights of its indigenous people.
  
  "I think it's a group of people that see an opportunity to get some money from the bank," the neighbor said. "If they're going to hold the house ransom, then the bank is going to have to go through an eviction process.
  
  "They're taking advantage of banks, where the right hand doesn't know where the left hand is. They can't clap."

Source: Brazilian Man Attempting 'Adverse Possession' of $2.5 Million Boca Mansion.

For story update, see Bank files to evict Boca Raton mansion squatter.

(1) Regrettably, the longer this crackpot is able to continue his charade, the more the Boca Raton cops come away looking stupid. It is clear that legitimate adverse possession claims only apply to property that is abandoned. The mere fact that the home has been vacant for some time, without the existence of other factors, doesn't establish abandonment. It seems to me that since the premises was the subject of a recently-concluded foreclosure action by the bankster, that, in itself, is enough to establish that the property is not abandoned and, consequently, enough to establish probable cause for the befuddled cops to arrest this idiot.

By the way, adverse possession claims and other bogus claims like the one made here have not insulated the crackpots making them from arrest in other jurisdictions. See, for example:

• $105K Bail Set For Suspected "Deadbeat Dad" Pinched By Cops For Allegedly Hijacking Vacant Homes & Renting Them Out In Adverse Possession Racket,
  
  
• Accused Home Title-Snatcher Faces Charges Of Forgery, Obtaining Property By False Pretenses, Breaking & Entering For Hijacking Vacant F'closed Mansion,
  
  
• Broke C. Fla Man Unable To Mount Defense To Charges Of Hijacking, Renting Out 100+ Vacant F'closures Under Claim Of Adverse Possession Commits Suicide,
  
  
• Orange County DA Slams Suspect With Multiple Felony Charges In Alleged Vacant Home-Hijacking, Title-Swiping, Rent-Pocketing Racket,
  
  
• C. Fla. Man Claims "Adverse Possession" Defense After Arrest On Home Hijacking Charges; Swiped 72 Houses, Rented Out 31 To Unwitting Tenants, Say Cops,
  
  
• Florida Man Accused Of Using Bogus Deeds, Adverse Possession Claims In Alleged Massive Foreclosed Home Hijacking Scam Faces New Charges,
  
  
• Atlanta Cops Pinch 'Sovereign' Pair On Theft By Deception, Racketeering Charges; Duo Accused Of Hijacking F'closed Homes w/ Adverse Possession Claims,
  
  
• Cops Pinch Two In Adverse Possession Home-Hijacking Scam; Use Of Forged Lease To Turn On Utilities Could Lead To More Charges,
  
  
• Florida AG Takes Active Role In Vacant Home Hijacking Prosecutions As 'Adverse Possession' Rackets Span Multiple Counties,
  
  
• Alleged Vacant Home Hijacker Asserts Adverse Possession To Claim Ownership Of Abandoned Houses; Bogus Docs Recorded To Cloud Property Titles: Cops,
  
  
• Accused Central Florida Vacant Home Hijacker Bagged Again On New Charges; Vows To Continue Snatching Homes, Claiming Adverse Possession Defense,
  
  
• Vacant Foreclosed Home Hijacker Scraps "Adverse Possession" Defense; Cops Plea To Organized Fraud, Dodges Jail Time, Gets Two Years Probation.

Self-Proclaimed "Soverign King" On The Loose In Memphis Hijacking Possession Of & Claiming Title To Vacant Homes In Foreclosure

In Memphis, Tennessee, WREG-TV Channel 3 reports on Michael Cobbs, a self-proclaimed soverign king who is running around town hijacking physical possession of vacant homes and claiming title to them:

• When [Jonah Asher] arrived [at his newly-purchased home], he noticed 'No Trespassing' signs in the yard, the locks were changed, and deeds posted in the windows saying Michael Cobbs owned the property. "Oh it's my house, because I can claim an abandoned home!" Cobbs said. Cobbs didn't pay for the house, because he says, he doesn't have to. "These is abandoned homes, every foreclosure is. If people knew what we knew right now, it'd be the end of American society, because these banks, these realtor companies, they're very evil," Cobbs said.

• Cobbs says man-made laws don't apply to him, because he's sovereign. He filed papers with the Shelby County Register of Deeds declaring that he is exempt from federal, state, and local laws. "This guy thinks he's a sovereign king and he can take what he wants when he wants, and nobody can do anything about it," Asher said.

• "This guy is talking bout I think I'm a sovereign king, I am a sovereign king! And he gonna find out. Yahweh gonna put him out of his house in Mississippi," Cobbs said. Cobbs says he follows the teachings of Yahweh ben Yahweh, the leader of a black supremacist movement. "We study real deep. We learned all of this from Yahweh Ben Yahweh," Cobbs said.

***

• Cobbs says he filed deeds on six properties across Shelby County - from a $500,000 home in Collierville to a $4.6 million motel on Mount Moriah. Cobbs says, he's not done yet. "This ain't the only home I'm gonna take, I'm bout to take over everything I can!" Cobbs said.

• Asher's doing what he can to keep Cobbs out of this house, by changing the locks and boarding up the windows, trying to protect what he's paid for. Cobbs says nothing -- not even a court order -- will keep him away. "Soon as the police and cops leave, we'll be bound to come, and kick the place back in, and take control of it again," Cobbs said. Both sides will have their day in court next week.

• Meanwhile, we're told the Shelby County Attorney's Office and the District Attorney's Office have launched a criminal investigation into Michael Cobbs.

Source: Man Takes Homes Without Paying For Them.

In a related story, see NC3 Investigates: House Stealing Scheme.

Seattle-Area Man Faces Felony Attempted Theft Charge For Allegedly Trying To Sell Foreclosed House After Filing Phony Claim In Home Hijacking Racket

In King County, Washington, the Seattle Post Intelligencer reports:

• A former real estate agent who landed in the news for assisting squatters who'd taken over a Kirkland mansion(1) may be headed to the big house, after prosecutors filed felony charges against him.

• Filing attempted-theft charges earlier this month, King County prosecutors contend Edmonds resident James C. McClung tried to use a bogus legal action to sell a home he didn't own to a young couple. Prosecutors claim the move by McClung came to light in October when one of the Shoreline home's new owners stopped by and found McClung's "tenants" around the house.

***

• In the current case, prosecutors claim McClung acted as an intermediary for the Shoreline home's former owner, who lost the house through foreclosure earlier in the year. McClung, prosecutors claim, filed a false claim to the house and began renting out the residence.

• Writing the court, Senior Deputy Prosecutor David Seaver noted that McClung has cast himself in public statements as an enemy of the banks and a friend to the little guy. "The defendant has acknowledged to a number of media outlets that he is engaged in a self-proclaimed 'mission' to interfere with financial institutions," Seaver told the court.(2)

***

• According to [King County Detective Robert Inn's] account, McClung said he was "taking advantage of confusion in the lending industry" and could sell the property. The Edmonds man offered that the foreclosure sale during which Chase bank bought the home was illegal, and suggested he had as much right to sell the house as the bank.(3)

For more, see Charge: Man who helped Kirkland mansion squatter tried to bilk Shoreline couple (Edmonds man claimed to be on a 'mission' to hurt banks, tried to break young couple, prosecutors claim).

(1) According to the story McClung, 42, had caught the attention of Kirkland police in June after they arrested a woman -- Jill Lane -- squatting in a bank-owned $3.2 million mansion. According to charging documents, McClung, a former real estate agent, had signed his name to a bogus claim filed by Lane.

(2) For earlier reports on this home hijacking racket, see:

• The Seattle Times: Mansion squatter not finished,
• KOMO-TV Channel 4: Police investigating man claiming million dollar Eastside mansions,
• Kirkland Reporter: Man connected with Kirkland squatter targets more Eastside homes.

(3) Reportedly, Detective Inn found, among other things, a self-titled 'deed of release' taped to a front window of the home McClung was allegedly trying to unload, purporting to identify him as the representative of the lawful owner of the property.

S. Calif. Man Suspected Of Openly Hijacking Title To Vacant Homes & Renting Them Out, Leaving Owners Frustrated, Neighbors Rattled, Cops Flat-Footed

In Southern California, The Orange County Register reports:

• California's foreclosure crisis has spawned an unusual operation by a bankrupt Orange County businessman who takes control of vacant homes and rents them out, according to police, property records and neighbors.

• From an office at an Anaheim massage clinic, Blair Hanloh has recorded deeds on at least 12 vacant houses in Southern California that he does not own. Property records show no evidence that the owners deeded interest to him—and five owners interviewed by The Orange County Register said that they had not.

• Hanloh uses his deeds, to homes in Orange, Los Angeles, San Bernardino and San Diego counties, to line up tenants and to placate police, who are inevitably called by neighbors to oust new residents they believe to be squatters. (Click to learn more about the properties.)

• Hanloh's scheme has rattled neighbors, befuddled police and frustrated the properties' real owners – who say they must spend thousands of dollars in legal fees to evict the tenants.(1)

For more, see Owners say they lost vacant homes to 'renters'.

See also, D.A. to examine vacant home scheme:

• Orange County prosecutors have begun examining the law behind an unusual Southern California scheme in which an Anaheim businessman deeds vacant homes to himself and then installs renters. The District Attorney's fraud unit is working with Orange County Recorder Tom Daly to gather information about the operation by Anaheim businessman Blair Hanloh, officials said.

(1) According to the story, Hanloh twice declined comment, saying only that he is doing everything legally. "I will tell you that what I do is fight the banks," Hanloh reportedly said. Reportedly, the Orange County Sheriff's Department and Anaheim police say they are investigating. "We're getting an education, just like you are," said sheriff's Lt. Mark Levy, who oversees police services in Dana Point. "These quitclaim deeds, if misused, certainly muddy the water." Hanloh's official-looking paperwork has reportedly kept police officers from immediately taking action.

The story states that Hanloh's scheme appears similar to one in Pasco County, Fla., where a man took over 72 homes under a law called "adverse possession," renting out half of them, according to published reports. He was arrested in February on fraud charges. See C. Fla. Man Claims "Adverse Possession" Defense After Arrest On Home Hijacking Charges; Swiped 72 Houses, Rented Out 31 To Unwitting Tenants, Say Cops.

Mass. AG Charges Attorney With Recording Forged Mortgage Assignments In Attempt To Hijack $1M+ In Loan Payoff Proceeds From Pending Real Estate Sales

From the Office of the Massachusetts Attorney General:

• [A] Marblehead attorney was arraigned in Cambridge District Court in Medford for his role in a million dollar mortgage hijacking scheme. Leon Gelfgatt, age 49, is charged with Attempted Larceny, and Uttering (2 counts).

• Massachusetts State Police assigned to Massachusetts Attorney General Martha Coakley’s Office arrested Gelfgatt [...] as he allegedly attempted to retrieve over $1.3 million dollars in mortgage funds in connection with a sophisticated mortgage fraud scheme.

***

• According to authorities, Gelfgatt allegedly identified properties which were under agreement and scheduled for an imminent sale. He then allegedly recorded false documents at the Registry of Deeds indicating that his fake company was the new holder of any mortgages on those properties. He allegedly sought through this scheme to cause mortgage payoff funds to be delivered to the fake company, rather than to the rightful mortgage holders.

For the Massachusetts AG press release, see Marblehead Attorney Arraigned in Connection with Million Dollar Mortgage Hijacking Scheme.

(1) According to the press release, Gelfgatt entered a plea of not guilty and was ordered held on $1 million cash bail by Judge Roanne Sragow. In the event that Gelfgatt posts bail, he has to surrender his Russian passport and wear an electronic monitoring bracelet, the press release states.

Broke C. Fla Man Unable To Mount Defense To Charges Of Hijacking, Renting Out 100+ Vacant F'closures Under Claim Of Adverse Possession Commits Suicide

In Sarasota, Florida, the Sarasota Herald Tribune reports:

• When Joel McNair committed suicide last week, he left behind a broken management company and a string of legal issues that threatened to land him in prison. For some time, McNair found vacant homes, many of them in foreclosure, and rented them out — even though he did not own the homes. McNair moved more than 100 people into foreclosed homes along Florida's Gulf Coast.
• He was arrested in November on charges of fraud and grand theft and was awaiting trial. McNair contended that renting empty properties was legal under Florida's adverse possession statute, which was created in 1869. The law allows someone to occupy an abandoned property as long as that person takes care of the property and pays the taxes, said Bob Hurt, an Internet blogger who had become fascinated with McNair's program of occupying foreclosed homes. And McNair was doing just that.
• But law enforcement officials and legal experts say McNair was simply a con man stealing money from people down on their luck.

***

• [A]cquaintances said the thought of going back to prison and having no money to mount a defense also was difficult for McNair to deal with. He spent seven years in Sumter County and Zephyrhills prisons from 1987 through 1993 after being convicted of racketeering and 52 counts of grand theft for collecting millions in commissions on more than 100 bogus time-share sales.
• "He saw himself spending the rest of his life and dying in prison," said Hurt, the Internet blogger. "He was broke," he said. "It cost him $12,000 to get out of jail in November and he had to pay an attorney on to of that. His trial was coming up and he saw his life disappearing."(1)

For more, see Landlord left messy legal issues behind in suicide.

(1) See The Lord of Squat: Mark Guerette Got Busted for Putting Families in Foreclosed Homes for another example of an individual who got into the vacant home hijacking business and who, when faced with criminal charges, pleaded "no contest" to organized fraud, a felony. According to that story, "His lawyer was willing to fight the charges, but Mark said he didn't want to risk ending up in jail and leaving his wife and kids stranded without a husband and father."

Orange County DA Slams Suspect With Multiple Felony Charges In Alleged Vacant Home-Hijacking, Title-Swiping, Rent-Pocketing Racket

In Orange County, California, the San Clemente Times reports:

• According to a June 4, 2010 Orange County District Attorney’s press release, Blair Christopher Hanloh, 46, of Long Beach was charged with grand theft for stealing more than $3.5 million in a fraudulent real estate scheme, renting out houses in Dana Point, San Clemente and Anaheim. The problem with him renting these homes?—he neither owns them nor acted as an agent on behalf of the owners.(1)

• Hanloh would allegedly look for vacant properties that were in foreclosure, post a notice on the home labeling it an “abandoned property,” then return a few weeks later, drill the locks and “take possession” of the home. He would then change the locks and post “no trespassing” signs at the properties.

• Hanloh would then file fake quitclaim deeds on the properties via his company, Blair Hanloh Trustee of Diversified Management Trust, to change “ownership” from himself to his company in order to perpetrate his scheme. [...] He would then advertise the homes for rent [online, on Craigslist] and lease them to unsuspecting tenants via fraudulent lease agreements and begin collecting rent.(2)

For more, see Man Charged With Renting Out San Clemente and Dana Point Homes He Did Not Own.

For the Orange County DA press release, see Man Charged With Grand Theft Over $3.5 Million In Fraudulent Scheme Of Real Property Theft And Renting Out Houses.

For an earlier post on this story, see S. Calif. Man Suspected Of Openly Hijacking Title To Vacant Homes & Renting Them Out, Leaving Owners Frustrated, Neighbors Rattled, Cops Flat-Footed.

(1) Hanloh is charged with eight felony counts of grand theft, five felony counts of recording false and forged instruments, one felony count of second degree commercial burglary, and sentencing enhancement allegations for property theft over $65,000, $200,000, $1.3 million, $3.2 million, and aggravated white collar crime over $100,000 and $500,000, according to the Orange County DA press release.

(2) Go here for a map of a slew of homes Hanloh is suspected of swiping, including five in Orange County.

More On "Hijacking" Of Foreclosure Process By Mortgage Lenders

(original post 11-17-07)
Cuyahoga County, Ohio (Cleveland and surrounding municipalities) is one area that is reportedly taking a tremendous beating when it comes to its residents losing their homes to foreclosure. So when word got out that Federal Judge Christopher Boyko slammed Deutsche Bank National Trust Co. in a court ruling recently for attempting to foreclose on Cleveland-area homes without being able to provide the legal documentation demonstrating that it actually owned the mortgages, the Cleveland Plain Dealer chimed in with several pieces that ran in its publication. For those interested, see:

• Federal judge accuses mortgage lenders of hijacking foreclosure system for profits (Criticism joins wave of dismissed cases ),
• Judge's order trips up banks trying to foreclose (Judge insists on key document),
• Excerpts from Judge Boyko's comments on mortgage lenders,
• Judges are right to make lenders follow the rules before foreclosing on peoples' homes (an editorial) (Cleveland federal judge's ruling puts lenders on notice that the rules apply to them as well as to borrowers).

Some of the highlights from the Plain Dealer coverage:

• Boyko's colleague, Judge Kathleen O'Malley ... , threw out 32 foreclosure cases this week for the same reason.

• Stephen Bucha, chief magistrate of Cuyahoga County Common Pleas Court, has dismissed hundreds of foreclosure cases for not having paperwork. He said it can be time-consuming and expensive for lenders to produce and record the documents, adding, "They wait until they have to do it." Bucha said judges in his court, which has about 10,000 pending foreclosure cases, are studying ways to adopt the federal court's rule.

• In an interview Friday, U.S. District Judge Dan Polster said he expected more foreclosure cases dismissed in federal court, including from his own docket. [...] Polster said the court has become more vigilant in foreclosure cases because they are too one-sided. Many homeowners do not contest the foreclosure, so the lenders face no defense lawyers in court proceedings. "It's up to us to supervise it," said Polster. "When you're taking people's homes, it falls to the integrity of the court."

• It's true, even now, that the banks are free to refile the cases. But the symbolism of Boyko's well-reasoned and well-written ruling is huge. It puts investment banks on notice that although many of them suspended careful lending practices and other rules in the rush to buy and pool subprime loans into junky bonds and drive up profits at almost any cost, the courts won't be taking such holidays from their rules.

• In the frenzy to underwrite and sell these bonds, lenders got sloppy. It's inevitable that some won't be able to hand over the proper documentation showing which mortgages they legally hold. That means thousands of foreclosure suits stand a good chance of getting tossed out or at least delayed.

Go here to view Judge Boyko's Court ruling.

For other posts that reference the failure of some mortgage lenders and their attorneys to file the required loan documents when starting foreclosures, Go Here, Go Here, Go Here and Go Here. missing mortgage foreclosure docs alpha

Phoenix Cops Sound Alert On Scammers Hijacking Possession Of Vacant Homes In Foreclosure, Then Pocketing Cash From Duped Renters

In Phoenix, Arizona, The Arizona Republic reports:

• Phoenix police are investigating a scam that has people pay a deposit on a rental home that turns out to be in foreclosure and not available for renting, Phoenix police said Thursday. The scammers are targeting people throughout the Valley, Phoenix police Sgt. Trent Crump said at a Thursday news conference.
• One arrest has already been made in connection to four of these scams in Phoenix, Glendale and Avondale. Raul Juarez, 35, was arrested on April 16 in connection with the case.
• Crump said the scam works like this: After breaking into foreclosed homes and switching the locks on the doors, scammers use the Internet to target potential home renters. They place ads on websites such as Craigslist and mostly involve month-to-month rentals with no credit checks. These scams also target people who have recently had homes foreclosed, Crump said.

***

• There have been six known scams of this sort in Phoenix, Crump said. Other victims have reportedly lost between $800 to $1,900 per incident. Like the scammers, police used the Internet to track down Juarez. "If you put (ads) up there, it might be police that are responding to check or to verify now," Crump said.
• Crump also warned renters to be aware of "red flags," [...]. These include supposed proprietors only accepting cash, not wanting a contract or having abnormally small deposits. Some scammers also might not have a vehicle around in case someone takes note of the license plate, Crump said.

For the story, see Phoenix police warn about foreclosure rental scam.

Go here for other posts on real estate-related hijacking scams. hijack

Accused Home Title-Snatcher Faces Charges Of Forgery, Obtaining Property By False Pretenses, Breaking & Entering For Hijacking Vacant F'closed Mansion

In Raleigh, North Carolina, the News Observer reports:

• Police have arrested and charged a Tarboro man with squatting for at least seven months in a North Raleigh home valued at nearly $2 million.



• The 7,664-square-foot home in Wakefield Plantation has six bedrooms, six full bathrooms, theater and game rooms, a wine cellar, vaulted ceilings and an elevator. There is also a swimming pool and a Jacuzzi whirlpool bath.



• Thomas Everette Jr., 31, apparently enjoyed the [...] luxury home so much that he created a fake company with forged documents to transfer the property to himself at no cost, according to police reports.



• But the scam fell apart when a concerned neighbor did some investigating and called police.

***

• Everette is charged with one felony count each of breaking and entering, obtaining property by false pretenses and forgery of deeds or wills, according to arrest warrants filed at the Wake County Magistrate's Office.



• His arrest came about two weeks after state Attorney General Roy Cooper announced that a group of Triangle residents had filed bogus paperwork at the county's Register of Deeds office to try to claim ownership of six foreclosed homes in Wake County.(1)



• Anne Redd, a spokeswoman with the Wake County Register of Deeds, said she was contacted by the state Attorney General's Office before Everette's arrest. "They told me they were fixing to get him because he had been living there since December," she said.



• The neighbor, who called the 911 operator last week, said he had called earlier in February about people going into the house because he thought it was a burglary. Everette avoided arrest, however, by showing paperwork that claimed he was trustee of the property to the police officer who responded, the neighbor said.



• The house is actually owned by the New York Bank of Mellon and Bank of America after it went into foreclosure last year, according to Wake County real estate records.

***

• Investigators say Everette set up a fictitious company, International Fidelity Trust, and filed it with the Secretary of State's Office on April 20. He then created a false deed that listed International Fidelity Trust as the owner of the Victoria Park Lane house, state records show.



• Next, he filed paperwork giving the home's "occupants" 90 days to satisfy all financial obligations or waive their right to the home. The home was vacant, so there was no one to respond to the bogus claim to the home, county records show.



• Everette filed another document with the Register of Deeds on July 13, showing that International Fidelity Trust had transferred the home to him at no cost, court records show. On that document, police say Everette forged signatures of a Bank of America official and a South Carolina notary public to gain control of the $1,941,949 property for which he never paid a dime.

***

• Everette apparently is not a novice at running scams. He has a 28-page record of previous charges that include breaking and entering, trespassing, violation of a domestic violence order, impersonating a bail bondsman, identity theft, larceny, resisting arrest, obtaining property by false pretense and insurance fraud, state records show. He is being held at the Wake County jail, his bail set at $85,000, a jail spokeswoman said Tuesday.

For the story, see Man accused of being a squatter in N. Raleigh.

(1) See Criminal, Civil Charges Brought In Vacant Home Hijacking Scam; NC AG: Phony Deeds, Bogus Liens "Filled With Gibberish ... A Fraud On The Whole System".

Recently-Convicted Scammer Bagged For Hijacking Possession Of Home & Renting It Out Now Suspected In Rent-To-Own Racket; Victim Says He Began Remodeling Home After Paying It Off Only To Discover He May Not Have Clean Title

In Chicago, Illinois, WLS-TV Channel 7 reports:

• He was convicted of hijacking a home - and now the I-Team has learned the same man is being accused in another real estate scheme known as "deed shifting."
  
  It involves a program in which people can rent-to-own a home - a less expensive way to achieve the American Dream. But one homeowner discovered that a house he paid for was never really his.
  
  Lauren Lake takes pride in his home on the city's far South Side. He started remodeling it after paying it off in May. "I can't even explain to you the joy of owning a home because I had been homeless before," Lake said.
  
  So imagine Lake's devastation when he learned the home isn't his. "My dream could have been a nightmare," he said.
  
  The Cook County Recorder of Deeds says Lake is a victim of what's known as "deed shifting." Recorder Karen Yarbrough and her fraud investigators say Ralph Schrader gave Lake a deed after completing his rent-to-own program.
  
  
  ***
  
   The recorder says Schrader shifted the deed from his personal name to his company "Chicagoland Rent to Own Homes" before Lake could record his deed, making Lake's worthless and giving Schrader the ability to sell the home again or take a mortgage out on the property.
  
  "It is individuals who are many ways the most vulnerable individuals who cannot go to a traditional bank and get the financing, are looking to take advantage of what Schrader is offering," said Mario Reed, Cook County Recorder of Deeds Office.
  
  In May, Schrader slammed the door on the I-Team when asked about a separate case - a guilty plea to a charge of theft by deception.
  
  The Cook County State's Attorney said he broke into Joanne Simmons' vacant home last September, changed the locks and falsely posed as a landlord. The renters refused to leave and Simmons lost her home to foreclosure.
  
  ***
  
  The Cook County Recorder of Deeds says Schrader owns at least 20 other properties, many being offered as rent-to-own homes.
  
  "These properties are vacant and, in some cases, I don't think the banks even want them, the banks don't even want them at all," Yarbrough said. "And sometimes they haven't even gone through, they are called zombie properties, in between foreclosure."
  
  Schrader says there is nothing illegal about his business, but he did admit that he owes property taxes.
  
  "Based on public records we have found, with 20 properties, he owes over $40,000 in property taxes," Reed said.
  
  Fraud investigators say their priority now is to convince Schrader to come in to the Cook County Recorder of Deeds Office to properly put Lake's home in his name.
  
  "To take a poor person's , hard-working person's dream, their money, and have no regard for that - you are a very heartless person," Lake said.
  
  The Cook County Recorder of Deeds says it's handed over evidence on Schrader to the Cook County State's Attorney.
  
  If you're buying a home directly through an owner, you should hire an attorney and quickly register your deed with the Cook County Recorder of Deeds. You can also check their website to verify the owner of a property and sign up for fraud alerts.
  
  The office says it's easier to steal a home than it is to steal a car.

For the story, see Deed shifting: Man convicted in real estate scheme faces new allegations.

Central Florida Woman Succeeds In Costly Effort To Move Back Into Home That Was Hijacked By Outfit Engaged In Adverse Possession Scheme

In Hillsborough County, Florida, Newschannel 8 reports:

• After a costly, four-month ordeal, Danuta Brown regained the house and property taken out from under her. When she walked into the Dover house on Raven Manor Drive on Wednesday, she wiped tears from her eyes. They weren't tears of happiness - the four-bedroom, three-bath house was filthy. "I can't believe people would leave a house like this," Brown said. "This is such a mess, I can't believe it."

• Brown eventually won back her property after a company called Chateau Lan took possession of her vacant house, citing Florida's adverse possession law. That law allows a person to take possession of abandoned property if he lives on it and pays taxes on it for seven years.

• Though she was ultimately successful, Brown's long trip through the legal system was costly and time-consuming, and ended with her cleaning up a mess created by someone she had never intended to have live in her house.

• It's a fight that's become increasingly common as several companies try to use adverse possession claims to put people in homes they don't own. Chateau Lan's Chris McDonald Sr., of Plant City, says he's taken possession of about 20 houses in this manner.(1) Records at the property appraiser's office show Chateau Lan has laid claim to a dozen properties through adverse possession.

For more, see Woman regains vacant home after court fight.

In another Central Florida real estate hijacking story, investigators have an arrest warrant for George Williams who they say is running an elaborate scheme to defraud by moving people into empty properties with out the owners' consent and collecting money.

Go here for other posts on real estate-related hijacking scams.

(1) In a related story, see Company owner says takeover of homes 'helps people' (Chris McDonald says there's a good reason he and his company, Chateau Lan, have taken over houses he doesn't own and allowed people to move in without the homeowners' permission. It helps people, he says).

Brooklyn Victim Of Title Hijacking Racket Says Brazen Scammers Keep Coming To Her Door In Effort To Drive Her Out Of Her Home Of Nearly 30 Years; Case Is Only One Of Over 500 Open Investigations Involving Nearly 700 Properties Throughout NYC

In Brooklyn, New York, WPIX-TV Channel 11 reports:

• Imagine someone else claiming they own your home after you've lived there for almost 30 years. That's exactly what one Brooklyn family says happened to them after a scam artist got the deed to their property.
  
  "They want to put us out so they can take the house," said Brenda Pearson.
  
  Pearson says she and her family have lived at 216 Hancock for almost 30 years. But for the past 12 months men have been knocking down her door claiming they own the house. Sometimes, she says, the men have even impersonated law enforcement.
  
  "Marshals have come here several times to put us out and the paperwork wasn't legal," Pearson said.
  
  Public records show the house was sold in 2014 by Calvin Traylor, Pearson's common law husband. The only problem is, the family says Traylor passed away three years earlier.
  
  When Pearson fought back, she says a man named Gregory tried to pay her to go away.
  
  "He told me that he'll give me $50,000 to leave the house or give him the information, asking me all these questions, and I told him no, I can't sell the house," said Pearson.
  
  If the claims are true, Pearson isn't alone. Hundreds of families have filed complaints with the Department of Finance after their homes were allegedly stolen right out from under them.(1)  But there are ways you can fight back against the scam artists.
  
  "Well I think the first thing everyone should do, regardless of your financial status is go online to the Department of Finance and register your home so that when anyone attempts to get information on your deed, they will send you an alert," said Councilwoman Julissa Ferreras-Copeland who chairs the Committee on Finance.
  
  Ferreras-Copeland says the Department of Finance currently has more than 500 open investigations involving almost 700 properties across the five boroughs. The majority in Brooklyn and Queens.
  
  "It is just incredibly easy, which is what we found out in the hearing," said Ferreras-Copeland. "Someone just has to go basically register a deed at the City Registers and they can potentially own your home."
  
  We tried to contact two men Pearson believed to be with 216 Hancock Corp – the company she says stole her home.
  
  One, a man named Greg, never returned our phone calls. The other, a man named Henry, said he had no part of the scam, but blamed his former partner. "He brought me to the scheme, to scheme to take the house from those people," said Henry.
  
  Ferreras-Copeland says seniors and those about to go into foreclosure are the most vulnerable to deed scams.
  
  If you think you've been a victim, she says to contact the Department of Finance and the Attorney General right away.
  
  "Unfortunately these scammers are getting wiser, they're getting smarter and they're out there and we really need to protect people, because our homes often times are everyone's biggest investment."
  
  As for Pearson, she says she's not going anywhere without a fight.
  
  "I'm not gonna let them just kick me out of here. I've been here 30 years. That's crazy."

Source: Brooklyn woman fights back as scam artist tries to steal home of 30 years, she says.

-----------------------

(1) See generally:

• NYC Officials: Real Estate Title Hijacking Racket Has Become Such A Thriving Industry That Deed Snatchers Now Have Their Own Corps Of Lawyers, Banksters, Notaries, & Real Estate Brokers,
  
  The City’s Efforts to Combat Real Property Deed Fraud, Testimony of Jacques Jiha, Ph.D., New York City Commissioner of Finance (February 1, 2016).

$105K Bail Set For Suspected "Deadbeat Dad" Pinched By Cops For Allegedly Hijacking Vacant Homes & Renting Them Out In Adverse Possession Racket

In Hillsborough County, Florida, The Brandon News & Tribune reports:

• A Valrico man whose company is accused of taking over homes and renting them without the owners' permission was jailed [last week] on a string of charges. George Williams, 41, was arrested at the Orient Road Jail [last week], records show. He is being held on $105,000 bail.

• Williams is charged with five counts of burglary of an unoccupied dwelling, four counts of grand theft of $100,000 or more, two counts of second-degree grand theft, organized fraud for less than $20,000, organized fraud over $50,000 and a failure to pay child support. The Hillsborough County Sheriff's Office issued a warrant for Williams on Tuesday.

• Last month, an 8 On Your Side investigation profiled Williams in a report that revealed his company, Brevkam Ventures LLC, took possession of several vacant properties, gained access to the houses, then rented them out. Williams' Brevkam Ventures filed paperwork with the property appraiser's office claiming an interest through Florida's adverse possession law in nine Hillsborough County properties.

• Adverse possession allows someone to take possession of an abandoned property if they live on it and pay property taxes on it for seven years. In a January telephone interview, Williams denied any involvement. "I have put nobody in no houses,'' Williams said. "I am not involved in any of the work.'' The name George Williams appears on each adverse possession form filed at the property appraiser's office.

• Two other companies, Homes for Americans LLC, and Chateau Lan LLC, are also actively taking possession of properties, claiming they are following the adverse possession law.

For more, see Valrico man charged with renting out homes he doesn't own.

Go here for other posts on real estate-related hijacking scams.

Feds, State Authorities Bust Global I.D. Theft Ring For Allegedly Hijacking Homeowner HELOCs; Millions In Equity Drained Out Of Homes

The Washington Post reports:

• Federal authorities [last month] announced a series of arrests and convictions in connection with a global identity theft ring that stole millions of dollars by hijacking home-equity lines of credit issued to thousands of consumers.

***

• The cases highlight what the FBI calls an "emerging scheme" afflicting the struggling real estate and mortgage market. In such crimes, thieves target people with good credit and large, untapped home-equity lines of credit, digging through public records -- such as property deeds and mortgages -- as well as publicly available Internet databases to obtain credit applications, credit reports and victim signatures.

• "Home-equity lines of credit are an expanding front in the battle against mortgage fraud," said New Jersey U.S. Attorney Christopher J. Christie. "Homeowners should carefully review their statements to make sure their hard-earned equity is not disappearing from under their noses."

For more, see Thieves Stole Identities to Tap Home Equity.

NYC In Early Stages Of Real Estate Title Hijacking Epidemic? Local Sheriff Aware Of Nearly 1,000 Cases - Befuddled Gov't Regulator Suspects Number Is But A Fraction Of Actual Tally; City Spokesperson: “No One's Talking About It, But We’re Seeing This Every Day ... I Don’t Think Anyone Realizes How Big This Story Is!”

A recent story in The Nation magazine alludes to what may be the beginning of a real estate title hijacking epidemic in the City Of New York in the following excerpts:

• Much like the housing bubble that sparked the Great Recession, the Brooklyn real-estate market is rife with crime, as developers at all levels snatch at quick profits in once-poor neighborhoods. Deed fraud—in which someone fakes documents to illegally claim ownership of a property—is one of the most acute problems.
  
  New York City Sheriff Joseph Fucito says his office was aware of nearly 1,000 possible cases of deed fraud as of August 2015. State regulatory officials, who are overwhelmed by the sheer volume of transactions in the market, suspect that number is a fraction of the actual tally.
  
  “No one is talking about it, but we’re seeing this every day,” says Sonia Alleyne, press secretary for the New York [City] Department of Finance, which is the agency that processes property deeds for the [city]. “I don’t think anyone realizes how big this story is.”
  
  
  ***
  
  Eventually, Zi was indicted for five instances of deed fraud, thanks in part to recordings obtained by Falero in which Zi admits to stealing documents from Queen Dobbins—and identifies the Makhanis as his partners. In one conversation, Zi can be heard describing a scheme organized by the Makhanis to “hijack” titles throughout the city. And yet the Makhanis are still in the real-estate business today.
  
  
  ***
  
  Sonia Alleyne at the [NYC] Department of Finance says that Commissioner Jacques Jiha is looking for remedies for the broader deed-fraud crisis, mostly by tightening the filing rules. “We made recent changes to LLC disclosures, and now we’re also introducing some legislative changes around the notaries.” Meanwhile, Sheriff Fucito says he knows of 15 deed-fraud arrests in the last year. That number is dwarfed by the more than 1,000 leads and 125 criminal investigations and, just beyond those, a literally uncounted number of unexamined deed transfers.
  
  “The problem is this open process that allows people to just walk in and file false instruments,” says Christie Peale, executive director of the Center for New York City Neighborhoods, an organization that studies deed and mortgage fraud. The Department of Finance has strikingly basic standards for accepting deed paperwork: As long as the documents are in “recordable form”—that is, completed—they are processed. “That has to change,” Peale adds, “because right now the Department of Finance doesn’t have a comprehensive approach to picking out problematic documents before they are accepted for processing.”

For the story, see How a Gentrification Scam Threatens New York’s Community Gardens (Shady developers know one easy way to build luxury condos: Claim ownership of communal land).

Florida Man Accused Of Using Bogus Deeds, Adverse Possession Claims In Alleged Massive Foreclosed Home Hijacking Scam Faces New Charges

In West Palm Beach, Florida, The Palm Beach Post reports:

• Carl Heflin, 51, of suburban West Palm Beach was arrested June 4 and charged with organized scheme to defraud and committing a criminal process under color of law. [Wednesday] morning he was marched back into a courtroom at the Palm Beach County Jail to face burglary and grand theft charges related to his "elaborate scheme," which authorities said affected dozens of foreclosed homes in the Westgate neighborhood and surrounding areas.

• Heflin, who worked a short stint as a West Palm Beach police officer in the 1980s, used bogus warrant deeds and a junk legal justification he called "adverse possession" to seize and plunder as many as 30 houses, which he then would rent out to unsuspecting tenants, said Detective Michael Antinoro of the Palm Beach County Sheriff's Office. The scheme netted about $6,000 a month in rent, Antinoro said.

Reportedly, there are at least 25 victims in this alleged massive house-stealing scam west of West Palm Beach.

For more, see West Palm Beach ex-cop charged with hijacking foreclosed homes, now charged with burglary, too.

Go here, Go here, Go here, Go here, Go here, Go here, Go here, Go here, and Go here for other posts related to deed or refinancing scams by forgery, swindle, power of attorney abuse, etc.

Go here, Go here, go here, and go here for posts on phony landlord rent scams. KappaPhonyLandlordScam DeedContraTheft

School Teacher, Hubby Face Grand Theft Charge For Use Of Adverse Possession Claim In Attempted Hijacking Of Home In Foreclosure; Sheriff On 2nd Such Bust In Month: "We Gave This Teacher A Field Trip To The County Jail!"

In Lakeland, Florida, ABC Action News reports:

• A Polk County school teacher and her husband face charges of grand theft after changing locks, purchasing electricity, and moving into a home they didn't own.
  
  It's the second adverse possession case, or "squatters", busted by the Polk County Sheriff's Office in less than a month.
  
  "They just move in, turn the electricity on, and take over," said Sheriff Grady Judd. "That's like suggesting that, after Walmart closes tonight, if you stay there, it's your store."(1)
  
  Cherie Fields, 25, and her husband, Owen Fields, 27, filed for adverse possession on the $160,000 residence located at 6861 Echo Lane near Lakeland on March 27, 2013.
  
  The home is in foreclosure, but still owned by a woman in California. PCSO contacted her, and she confirmed that no one had legal access to it.

***

• The couple only lived in the home for a month, but because their crime is considered grand theft over $10,000, they may call jail their new home for several years.
  
  "Come on, girl! You've got a college education. You should know better than that," Sheriff Judd said. "Some people aren't learning very quickly, even when they are school teachers. In fact, some of your best lessons in life, are learned outside of the classroom. We gave this teacher a field trip to the county jail."

For the story, see Fort Meade teacher charged with squatting - second adverse possession case by PCSO in one month.

(1) Fortunately for Walmart, many of their stores are open 24 hours.

L.A. Man's Identity Hijacked, Used In Foreclosure Rescue Bankruptcy Scam; Petition Filed Under His Name & Used To Dump Eight Homes In Foreclosure On Opened Case

In Los Angeles, California, KPCC Radio 89.3 FM reports:

• Software systems engineer Ajamu Azibo seems to have it all. He's young and healthy, with a great job at UCLA, a happy marriage, and dreams of owning a house someday.
  
  But during a coffee break on campus he recalled the day, five months ago, when everything seemed to fall apart. He'd been waiting for a call to hear whether he qualified for a new car loan.
  
  "I was sitting at work; I got a phone call from my car company, from the loan. And they asked me if I planned on going forward with the bankruptcy that I'd filed on June 22nd. This was completely out of the blue, I hadn't gone to the court to file, so I had no idea what they were talking about," Azibo said.
  
  He rushed to the federal courthouse in downtown Los Angeles and asked whether someone had filed for bankruptcy under his name. A clerk handed him a folder with documents containing signatures that were not his.
  
  The report listed that he was single and that he owned a Honda Accord, a property in San Diego and another in Carson. None of that was true. He discussed this with one of the agents at the bankruptcy court-and soon they realized that someone else had filed for him. Unfortunately, the court told him, his case is typical.
  
  Maureen Tighe is a federal bankruptcy court judge for the Central District of California.
  
  "We had a lot of people coming to court saying 'there's been a bankruptcy filed on my name, and I've never authorized the bankruptcy filing. And once you got talking to the person, they usually had some sort of a foreclosure problem. And they had consulted one of these outfits that do loan modifications, or foreclosure rescue," Tighe says.
  
  Azibo hadn't sought a loan modification, or a foreclosure. But he remembers meeting four years ago with a friend of a friend, a man who identified himself as a lawyer. This person suggested that Azibo could solve his money problems by filing for bankruptcy. Without thinking twice about it, he gave the man his name and Social Security number, and the rest is history. No one knows if this same man is responsible for Azibo's bogus bankruptcy filing.
  
  Since the summer, Azibo has become the victim of yet another scam: a bankruptcy hijacking. That's when a third party fraudulently files for a loan, or property, on behalf of someone's bankruptcy case without his or her knowledge. Turns out that somebody dumped eight different properties facing foreclosure on Azibo's open bankruptcy case. That further complicated his financial record.

For more, see Immigrants, minorities especially vulnerable to bankruptcy scams.

Oregon Man Pinched On Suspicion Of Hijacking Possession Of Vacant Foreclosures, Then Pocketing Cash From Subsequent Rentals; Suspect Allegedly Used Online Craigslist Ads To Reel In Unwitting Tenants

In Sherwood, Oregon, KPTV Channel 12 reports:

• If 40-year-old Jason Dimicelli is your landlord, deputies want to hear from you. Lincoln County deputies say he is responsible for a Craigslist scam that has put renters in multiple counties out of their homes.
  
  Dimicelli was arrested in May for renting out a Newport home without the owner's permission. Further investigation has linked Dimicelli to residential properties in Lincoln, Clatsop, Yamhill and Washington counties.
  
  In Sherwood, Shelly Taylor believes she was a victim of the scam. She had been renting a home there from Dimicelli for only two weeks when she started noticing red flags – the home had no smoke detectors, and basic maintenance had been neglected. Further research showed the home was actually bank-owned.

***

• Although she only actually lived there two weeks, Taylor says she had already paid Dimicelli $2,000 and done hundreds more in upgrades to the home – including replacing the missing smoke detectors. Now Taylor says she is out the money, and out of a place to rent.
  
  Deputies say many of the homes in the investigation were either in foreclosure or bank-owned. They are currently investigating how their suspect was able to get into the homes and change the locks.

For the story, see Deputies: Lincoln City man rented out homes without owner's knowledge.