Texas Man Agrees to Plead Guilty in $1.5 Million Scheme to Sell Land He Did Not Own

A Texas man has agreed to plead guilty to his alleged role in a deed fraud and money laundering scheme, according to the U.S. Attorney's Office for the District of Massachusetts. The announcement was made by U.S. Attorney Leah B. Foley and FBI Boston Special Agent in Charge Ted E. Docks.

What happened

Court filings say the man and co-conspirators identified vacant, unencumbered properties in Massachusetts, Georgia, Indiana and Tennessee. The properties were owned by people who lived out of state. The group allegedly impersonated those owners to list and sell the properties to unsuspecting buyers, then laundered the proceeds. The scheme allegedly involved more than $1.5 million in fraudulent property sales.

Why it matters to homeowners

This case shows why certain properties can be attractive to fraudsters. Vacant land with no mortgage or liens, owned by someone who lives far away, may go unwatched for long stretches. If someone poses as the owner, the real owner may not learn about a sale until well after the money has moved. Buyers are also harmed, since they may pay for property that the seller never had the right to sell.

The case is a reminder that deed fraud is not limited to people who live in the home. Owners of vacant lots, inherited land, and second properties can be targets too.

What you can do

• Check your county recorder's website periodically to confirm that the records for your property look correct.
• Sign up for property fraud alerts if your county offers them, so you are notified when a document is filed in your name.
• Watch your mail. Unexpected letters about your property, taxes, or a sale are worth following up on right away.
• Keep your contact information current with the county assessor and tax office, especially if you own property away from where you live.
• Be careful if you are buying land. Use a reputable title company or attorney, and be cautious about sellers who avoid meeting in person or insist on moving quickly.
• If something looks wrong, contact your county recorder's office and local law enforcement promptly, and consider speaking with a real estate attorney.

Source: U.S. Attorney's Office, District of Massachusetts (Department of Justice)