Michael B., a real estate broker, has changed his mind. He’s now pleading guilty in a felony fraud case involving deed theft. In Florida, fraudulent real estate schemes are not unusual. But when a real estate broker in active status is pursued for deed fraud, that’s the kind of case that stands out.
Yes, you read that right. This is a case of house stealing by a real estate broker. Licensed by the state of Florida, this person could and did list homes on the MLS. Not only is this person alleged to have stolen and sold other people’s homes; now, he has actually admitted to the scheme. The broker might manage to avoid any jail time.
According to Florida’s state prosecutor, the Tampa-area broker faked deeds and mortgage documents in order to sell ill-gotten titles to innocent people. He also used his stolen real estate to secure loans.
Six Homes Stolen; Sentencing This Wednesday
Investigators charged the broker in connection with six properties. The alleged scheme includes people pretending to be witnesses; fake signatures on fake deeds and, a bogus notary stamp — and even bogus mortgage payoff letters. All so deeds would make their way into names that the broker could use to get secured financing or sell the homes.
Quitclaims frequently turn up when detectives investigate fraudulent real estate transactions. If you are a senior homeowner, or your title is free and clear of mortgages, you could be at heightened risk.
Michael B. will be sentenced this Wednesday, December 6. He must pay a total of $177,000 back to the one victim he harmed financially. Failure to adhere to the terms of the plea deal will result in something between two and 30 years in prison.
He’ll get supervised probation if he pays the restitution and meets the terms of the plea deal. But is this enough of a deterrent for such noxious fraud?
An Online Search for a Home Becomes a Tip-Off
The confessed fraudster had pleaded not guilty earlier this year. Why the change of plea? The prosecutor — who’d been pursuing the case for four years — was willing to offer five years of supervision instead of prison.
Other than the person who’s unfairly named as the debtor on a $177K mortgage, no one got hurt. At least that’s the rationale for what looks like it’s going to be a light sentence.
John Whitt Jenkins was one of those who ultimately weren’t financially harmed. But Jenkins went through weeks of uncertainty, not knowing if he could get his beloved home back. His signature had been faked on a deed. In one day, he lost the deed to a home that he personally built, now worth around $350K.
This “lucky” forgery victim just happened to be looking up his house on Zillow.com, where it showed a very recent sale. The victim reported the problem and detectives jumped in. Quick action by all involved managed to repair the harm.
Will the Real Estate Broker Keep His License?
Real estate brokers in Florida can be convicted of a misdemeanor or felony in the state and continue working in the profession.
According to Goldman Wetzel, a criminal defense law firm in the Tampa Bay area, brokers have an obligation to report their criminal charges to the Florida Real Estate Commission. The Commission can permit Florida brokers to work as licensed professionals if they have criminal records.
According to the current Florida Statutes, the Florida Real Estate Commission regulates brokers, real estate schools, and appraisers. For professionals who are convicted of a crime, whether inside or outside of Florida, several things could happen:
- The Commission may suspend the person’s real estate license for up to 10 years, or completely revoke it.
- The person might be placed on administrative probation.
- The person might have to pay a fine (up to $5,000 per criminal count).
Plus, there are other potential penalties for various breaches of professional responsibility that occur during the course of crimes.
In Florida, Convicted Criminals Can Sell Real Estate
While a convicted real estate broker will clearly have a lot of red tape to sort out, the Florida Real Estate Commission hears out these matters on a case-by-case basis, and takes any mitigating evidence into account.
On the other side of the coin, notes Goldman Wetzel, “this type of in-depth case review could also lead to additional penalties.” Permission to keep working as a broker is more likely, we can infer, for a misdemeanor conviction than in a felony case.
The Goldman Wetzel firm further notes the state’s Administrative Code has additional guidelines for real estate license suspension and fines. But unlike some other states that bar convicted felons from dealing with home sales at all, Florida allows people with felonies or misdemeanors to join or stay in the profession. Whether they actually get to do so is a question for the state’s Real Estate Commission.
Who Is at Most Risk for Deed Theft?
Deed thieves often target cash-strapped people, who depend on their homes as a stable base for their households. Deed thieves also look for deeds to senior-owned homes, and deeds to homes with no mortgage liens.
Often, these vulnerable groups of homeowners overlap. Some elders leave primary or secondary homes empty so they can get necessary healthcare. They probably won’t notice if someone’s marketing their homes. Some have owned their homes long enough to pay the mortgages off. Bad actors may gravitate to such homes. They may think it’s less likely, with these homes, that an improper deed transfer could be quickly tracked down.
Wherever a mortgage lien exists, there’s a company that keeps abreast of deed transfers and claims. And when homeowners live in their own homes, they are likely to read the mail and learn of issues. For those who own homes but don’t live in them, checking the home and its deed records is a great habit to adopt.
In a growing number of U.S. counties, residents may register online for deed alerts. A recent example of a county rolling out an alerts system is Snohomish County, Washington. Counties with these notification systems generate messages if there’s any activity on a participating resident’s deed.
Stay alert, friends. House stealing is no joke. And when it’s done by professionals we depend on to keep real estate safe? That’s a special kind of nasty.
Supporting References
Shannon Behnken for Better Call Benken on WFLA News – Tampa Bay, Florida’s Channel 8 On Your Side, via Nexstar Media Inc.: Real Estate Broker Pleads Guilty to Scheme to Steal Homes Through Deed Fraud (Nov. 3, 2023; updated Nov. 6, 2023). More about one of the victims in this scheme appears courtesy of WFLA News Tampa Bay via YouTube.com).
Florida Statutes (2023), Section 475.25(1)(f).
Goldman Wetzel Tampa Bay Criminal Defense via GoldmanWetzel.com law blog: Will I Lose My Real Estate License After an Arrest?
Mark Puente for the Tampa Bay Times: Criminal Record Not Often an Impediment to Getting a Florida Real Estate License (Dec. 4, 2011).
Deeds.com: In the News: Struggling and Elderly Homeowners Targeted by Deed Fakery (Mar. 13, 2023).
And as linked.
More on topics: Florida, deed theft: protect seniors
Photo credits: Sora Shimazaki and Kindel Media, via Pexels.