In this world, there are things we cannot fully control. One of these is the existence of crime. No matter how many laws the government implements, and no matter how grave the punishments are, there are still people who commit crimes. There were about 8,171,087 crimes recorded in 2019 alone. In a data published by Pew Research Center it appears that most crimes did not reach the police desk, and most reported crimes remain unsolved. In its yearly analysis, the Bureau of Justice Statistics asked crime victims whether they reported the incident to police. Surprisingly, only 43% of violent crimes and only about a third (34%) property crimes were reported.
Nobody can tell when a crime will happen, except, of course, from the criminal. They watch their target from afar, and in less than a minute, they fulfilled their motive. And while you are reading this article, a crime is actually being committed. The Federal Bureau of Investigation website says that a violent crime occurs every 26.2 seconds, and every 4.4 seconds, the more common category of property crime occurs.
Now, let us take a look at some real estate crimes happened in the past few months and desperately hope that none of these will happen again in the future:
A Real Estate Agent was kidnapped, killed in Minneapolis
For some people, the new year means new life. However, this was not the case for the 28-year old mother and Minneapolis Real Estate Agent. What was supposed to be a "Happy New Year" became a nightmare for the family of the young realtor. On the night of December 31, 2019, a 41 years old man shot Monique Baugh. The police identified the suspect as Cedric Lamont Berry. He is now facing multiple kidnapping cases, second-degree murder for the abduction and killing of Baugh, and attempted murder for shooting Baugh's boyfriend.
According to police reports, Berry enticed Baugh to a house viewing in Maple Grove. He allegedly forced the victim to a van he rented. The same van was seen in an area near the residence where another shooting incidence occurred. The victim was Baugh's boyfriend, who, at that time, was with his two small children.
Based on the report, Berry was able to secure the key to the residence. At around 5:30 in the afternoon of that same day, the culprit entered the house and began to shoot Baugh's boyfriend. The children were out of sight and were spared from the heinous act. An hour later, the police found Baugh's lifeless body 4 miles away. Her hands were tied, and has a gunshot in the head and another two in her torso.
There was still no apparent motive for the killing, though, according to some hints, the incident may have been induced by Baugh's boyfriend inadvertent display of wealth on social media.
According to the attorney's office, when the police officers took Berry into custody, they found a black mask and 13 baggies of what appears to be heroin inside his car.
Maybe you might agree when someone says, "in life, you can run, but you cannot hide." Indeed, we can always run from our fears or problems, but we cannot hide all the time just to avoid them. Life will always find its way to let us experience what living is. Despite our efforts to run and prevent different things, we cannot deny that we cannot hide from our past mistakes. It will always haunt us wherever we go. We can all see in the next article in this feature. This news is related to the previous real estate crime we just discussed.
Second suspect in Minneapolis killing surrendered
The second suspect in the kidnapping and brutal killing of the real estate agent Monique Baugh in Minneapolis, is now in custody.
According to the local news outlets, criminal charges were filed against the 28-year old suspect named Elsa Segura.
The real estate agent was abducted on New Year's Eve from the property she was showing. She was driven in a truck rented by the suspects into an alley, where she was shot multiple times.
According to the prosecutors, Segura was the one who is responsible for setting up the showing at a home where the real estate agent was kidnapped. The suspect also used a fake name when she called Baugh. The cellular phone was only used for contacting Baugh and was bought under the alias.
The police record states that Segura confirmed the voice on the message was hers. The suspect voluntarily turned herself in.
In the earlier part of January 2020, the suspect named Cedric Berry was charged with kidnapping and second-degree murder. The prosecutors believe there is a connection between Segura and Berry. They also linked Segura to the man who shot the boyfriend of the real estate agent.
This news rocked the real estate world and made the agents and brokers all over the country fear for their safety. This has brought new talks regarding the security measures in place to protect the welfare of all real estate agents.
For most people, the time has stopped during the pandemic; for criminals, the pandemic cannot stop them—unlawful individuals are grabbing the opportunity to take advantage of unknowing victims. This is the case in Pasadena, where property-related crimes are increasing. Yes, you read it right. Despite the pandemic we are all experiencing, the thieves do not stop.
Property-related crimes in Pasadena, Increases amid Pandemic
According to the Police Department of Pasadena, property-related crimes are increasing. This includes theft from homes, vehicular robberies, vehicle break-ins, and the likes.
Lt. William Grisafe from the Pasadena Police Department reminded the residents to practice safe protection to prevent these opportunistic crimes.
The police officer recommended locking up items and have asked people not to leave their valuables in their vehicles. Grisafe also suggested never leaving the garage door open as it allows criminals to easily come in and take what does not belong to them. People think property-related crimes are not possible when, in reality, it is still happening and increasing, he added.
The Preliminary Monthly Statistical Report of the Pasadena Police Department shows a 5.50 % increase in reported crimes from January to September compared to the same period last year.
They reminded the public to call the police should they notice something unusual in the area. This way, they can prevent further damage and injuries. They also warned everyone not to leave valuable belongings inside their cars to keep thieves from breaking car windows. Also, double-check if the doors of the vehicle are locked. Never leave things (such as bicycle or lawnmower) in plain sight. Let the people know that someone is inside your home. Pick up newspapers daily, regularly check the mailbox, bring out trash, and maintain the garden. When nobody is at home, activate a timer so the lights will automatically turn on and off. By doing this, people might think there is someone inside the house. Lastly, switch on the alarm system when leaving the house.
Following these simple steps can help prevent further loss and damage to your property. Like they always say, it is better safe than sorry. We all know that because of this pandemic, most people lose their jobs or have their work life otherwise impacted. Some people might think that stealing and breaking into somebody else's house is the fastest way to acquire money. We cannot blame them for responding to humanity's call, but we can always prevent these from happening by being educated and alert.
Let us look at another real estate crime involving a group of property owners in South Florida. Reports say newly leaked bank documents revealed that the homeowners are connected to global money laundering.
South Florida Real Estates Linked to Money Laundering
According to Miami Herald, a family who owns a home worth over 2 million U.S. dollars in the neighborhood of Jockey Circle in Davie and a man who bought a Tudor cottage with drug money worth $850,000 are among the property owners that surfaced from an amassment of suspicious activity reports.
FinCEN or the Financial Crimes Enforcement Network collected and analyzed the documents to find the culprits. The Ceballos family were identified for their suspicious bank transactions from April 2013 to January 2014, amounting to 260 million U.S. dollars, the Herald reported. The agencies who made a large payment to Ceballos companies are Venezuela's oil company and an anti-poverty program.
Anthony Santos Gomes, the Tudor cottage owner, was arrested in 2017. He pleaded guilty to collaborating in a money-laundering scheme—Gomes used money generated by distributing illegal drugs to purchase properties. The report states that the leaked bank documents show he is part of a group associated with the flagged transactions amounting to $403,000 between 2012 and 2017.
The leaked records also reveal how Miami resident Martin Lustgarten, who was previously accused of laundering millions of dollars for drug traffickers from Latin America, collected and transferred at least $346 million in transactions with clients around the globe between 2007 and 2016.
U.S. law enforcement has continued its drive to deter the use of illegal money in South Florida. In August of this year, a high ranking official of a Venezuelan energy company pleaded guilty after being charged with money laundering for purchasing real estate in South Florida. Meanwhile, authorities identified 11 properties in Palm Beach County as part of an alleged money laundering scheme last July.
With the emergence of automated technology, the culture of instant also blooms. Nowadays, people are used to instant noodles, instant coffee, etc. We rush things to the point that we settle for less. Why? Aside from being in a hurry is the reality that we don't want to be left behind. We wish to avoid sold-outs. For that reason, we get lesser things, and roughly, other people are taking advantage of this. In rushing things out, we tend not to think. We don't want to evaluate things if these are legit or not.
This is what transpired in the next article. A couple got too excited and have failed to investigate. As a result, they got scammed.
Rental Home Scam, Victimized Couple
As of this writing, rental homes are seemed to be short in supply because of the high demands. The people who are finding properties to rent tend to get the first one they see.
But, according to a couple in Lockland, Ohio, you need to be extra careful in looking for a place to rent. You need to ensure that this is not a sort of scam. Delah and JiJi Ndiaye said that a fake landlord took their deposit. The individual to whom they paid the promised amount was not the actual owner of the property they would like to rent.
The couple detailed that they found a little one-bedroom cottage on Craigslist. The advertisement says that the rent only costs $475 a month. They went on and called the bogus landlord. He told the couple to meet him over to look at it.
When they arrived at the place, they met a woman who appeared to be the landlord's wife. There, they signed a seemingly official lease paper. They paid the woman $475 as what they have agreed. The couple started to move their furniture and personal belongings. The excited couple bought a new rug and even had their Wi-Fi turned on. After several days of staying in the property, the real landlord visited them. According to Delah, the incident left them clueless as the real landlord locked them out. They do not know what was going on.
The couple has finally realized that they got scammed. The advertisement, the owner, and the lease that was signed were all faked. To force them to move out, the owner turned off the water supply.
The Craigslist house-rental scam victimized the couple, and this scam is getting slipperier as time passes by. As per the Consumer Reports Magazine, the scammers will find a house or apartment for rent. They will copy the advertisement and repost it on Craigslist. They will make sure that the listing address and pictures look real. The scammers will just put a price lower than their actual leasing price to catch the attention of those looking for a place to rent. Sometimes, they will only ask the potential renters to wire a deposit.
But, some well-experienced scammers will meet the renters outside the property. They will give a realistic lease paper to sign then; they will get the money and go away as if nothing happens. According to Delah, the fake landlord didn't have the keys to the property; they only have a code. That's why they managed to enter the property. It seems that the fake landlords had disguised as renters to get the passcode to the property. According to Delah, she and her husband felt lost, and they can't do anything about the situation. The couple went to the police station to report the said incident; however, luck isn't on their side with this case.
According to the Police Chief, the couple's current situation is civil, and they are hoping to work things out with the landlord and tenants presently living there. He goes on to assume that the couple will have to pay the landlord for their rent.
The legitimate owner of the property, the Reinvest Consultants of Reading, was contacted. The man who answered the call let the Ndiaye couple stay thirty days to reapply and fill out an application. The man added that the company would be happy to work things out, but they need a new deposit because the first one didn't come to them. Delah Ndiaye is still doubtful if they can afford to pay for another month's rent. Delah admittedly stated that she and her husband do not know what to do with the incident. She added that the scammers got away with their money, leaving them at a loss on how to pay their rent for the next month.
The local police who are handling the case do not believe that the scammers live in Lockland. The enforcers also suspect that the scammers already moved on to other neighborhoods. They tried to contact the phone number listed in the lease; however, it turns out to be a disposable cellular phone number, which was now disconnected.
To avoid this kind of real estate crime, the Consumer Report has tips to protect ourselves from these scammers:
- Be observant of the listings posted on Craigslist, especially those that offer low prices for the neighborhood.
- Avoid immediately sending wires or deposits to a landlord or owner that you are not acquainted with much in the very first place.
- If the landlord doesn't have keys to the property, be suspicious enough. They might not be the real landlord of that property.
To avoid being a victim of these types of people, we need to think and evaluate every decision we make. Don't waste your time and money on your failed decisions. It is not easy to earn money; thus, be wise in spending it.
According to FBI data, wire fraud in real estate is one of the fastest-growing cybercrimes in the U.S. Record shows that in 2018 alone, victims of wire fraud in the real estate and rental sector reached the 11,300-mark, a 17% jump from 2017. This accounts for a loss of more than $150 million. This year, a staggering $220 million in wire fraud schemes has been documented, a 13% increase from last year. Despite being widely known, there are still unsuspecting victims who fall to this type of scheme.
Family's Illustration of Wire Fraud in Real Estate
Aaron, a psychology professor at UC Berkeley, and Lindsey Fisher, his wife, found the house of their dreams in a place not far from where they live. The Northern California property has a value of 1.4 million U.S. dollars. It includes an enormous backyard and a trail near the house.
According to Lindsey, this house is what her family exactly wanted, and it is too good to be true. Because of the inheritance, the family was able to buy the property easily. However, things did not turn out fine. Aaron made a bank transfer amounting to $921,235.10 to an account number he would never forget.
Two days after the said transaction, the mortgage company called him, asking about the transfer details. When asked where the money is going to, Aaron nervously answered that it should go to Wells Fargo. It turns out that he wired the money to an account that does not belong to the company. The mortgage company asked him to call his bank immediately. In a split second, their money is gone.
Now, the question here is, how did the robbers come into the picture?
According to the reports, the couple was having a conversation with the legitimate representatives of the company. The hackers made their way into the conversation, using an altered email address similar to the person they were initially talking to. Aaron never thought that the person on the other end is no longer the person they intend to have business with.
Based on the documents compiled by the Fisher couple, the criminals emailed them digital copies of the real closing documents and wire instructions. These documents look like the real ones, and all of these came from the fake email account. When Aaron opened the PDF, he inspected them, and all the information seems right. Hidden in these documents are the wiring instructions containing incorrect account information. The couple's money got wired into a real account number; however, the account name was fake.
According to Paul Llewellyn, the couple's attorney, the fraudsters somehow got hold of the real closing documents. This information gave the couple some comfort that the emails they received are genuine ones. This kind of real estate crime has already been around for years based on FBI data. The criminals target high-end markets such as New York, Los Angeles, Palm Beach, and other expensive homes. The FBI's financial crimes section chief, Steven Merrill, said that one person could lose tens of millions of dollars in specific markets. He also added that the most lucrative markets are the ones criminals usually target.
Fisher's case is something that neither the Bank of America nor Wells Fargo has verified before proceeding to transfer because there is no federal law that requires them to do such a thing. Rep. Brad Sherman, D-Calif., has been advising the Federal Reserve to add protections for home buyers. According to him, they don't want to solve the problem because they've got a computer system that would have to be modified.
The Internet Fraud Prevent Act was filed by the congressman to address the issue. The legislation would require the Federal Reserve to perform a cost-benefit analysis matching the mechanism used in the U.K. Regulators anticipate that this change will reduce these activities at least 90 percent.
After two stressful weeks, when the couple thought they had lost all their money, Bank of America called them. The bank was able to get the couple's money back. After verifying that all the money was in their account, the Fisher couple closed their bank account and opened a new one in a different bank.
Fortunately, the property that they wanted to buy was still available. This time, the couple made sure the right people they are dealing with are the right ones. They used a certified check to pay the closing costs. The stress is now over. The couple is now living peacefully in the home of their dreams.
To avoid falling victim to these fraud activities, experts advise that we look closely at the emails to ensure that the address is correct. The criminals and hackers are fond of changing one letter so, better keep your eyes sharp. Also, be watchful of the last minute changes that might happen. This sign is a real red flag and looks suspicious. Do not wire your money until you are confident with the information presented.
Drug trafficking is one of the most common illegal activities that has been around for years and is rampant worldwide. From selling drugs to its illegal usage, this type of crime is also not an exception to crimes happening in the real estate industry. According to the Department of Homeland Security's Official Website, one particular case got recorded for this specific type of real estate crime.
Multi-Million Dollar Scheme for Marijuana Houses, L.A. Real Estate Agent Pleads Guilty
In Los Angeles, a Chino real estate agent pleaded guilty to federal criminal charges involving a multi-million dollar scheme. The residential homes they bought were converted into marijuana grow houses.
The real estate agent in question, Lin Li, a.k.a. Aaron Li, 38, admitted to charges filed against him regarding the illegal marijuana activities. According to official reports, he spent millions of dollars to purchase nine houses in San Bernardino County to process and grow at least 1,000 marijuana plants in these nine properties. He pleaded guilty to committing such serious and illegal acts.
The crime was on its ongoing process between May 2013 and September 2017. During this period, Li led the purchase of the nine residential homes in Chino, Chino Hills, and Ontario; while he takes control of these residential houses, Li admitted to having allowed these properties to be the homes of marijuana grow operations. He also added that he took part in trafficking and selling marijuana to different places such as New York, Nevada, and California.
In addition to his plea, Li admitted that he wrote and signed fake lease documents for seven of the homes he purchased to turn them into marijuana grow houses in disguise and avoid suspicions of marijuana conversion pointed at him. Li and his co-conspirators also allegedly stole electricity from electric companies by directly diverting electricity from power lines. According to court papers, in early 2018, a neighbor filed a complaint to law enforcement about the staggering smell of marijuana coming from the Chino homes.
Due to complaints filed relating to this incident, HSI Special Agents issued search warrants in 2018 and 2019 to investigate illegal marijuana grow operations in nine of the said homes, including Li's house in San Bernardino County. The agents have retrieved approximately 4,342 marijuana plants and 91.72 kilograms of processed marijuana during the searches. Additionally, 85,995 US dollars of drug proceeds got seized from Li's home. According to court reports, the seven purchased homes' overall price between July 2013 to September 2017 was 4, 067, 882 dollars.
Li got a statutory maximum of life imprisonment due to his affirmation of the charges filed against him. There were other conspirators of the marijuana operations aside from Li. Jimmy Yu, 45, of Pasadena, was the second defendant of the case, and his trial got scheduled to commence in February 2021. Yu is alleged marijuana grow caretaker in one of the Chino marijuana grow houses. Another marijuana grows caretaker, Ben Chen, 43, of Alhambra, pleaded guilty to manufacturing, distributing, and possession of marijuana.
Crimes inflict a terrifying impact not just on individual victims alone but also on their families and friends as well as the neighborhood to where they belong. Being exposed to violent crime can result in health and development damage. It can also turn communities into vicious circles of decay. The sadder part is that violent crime can bring home prices to a lower degree, according to some studies.
With the generational and technological advancements in the present time, criminals are also upgrading their tactics to continue doing illegal activities, and the article mentioned above proves such claims. Thus, both real estate agents and homebuyers should be vigilant in selling and buying residential homes in neighborhoods. Dangers and crimes can lurk in every corner at any place - who knows if one of your neighbors is a marijuana trafficker all along?
These were the crimes that happened only this year. There are a lot more from the previous years, and roughly, there will be a lot more in the next years to come. We might not feel right now the pain and agony of these victims. We may not be one of them but, let us also remember that these criminals and thieves excuse no one. Better safe than sorry.
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