How to conduct your own Real Estate Scam.

How to conduct your own Real Estate Scam.    (Three examples)

 

The Elder Cleansing cases (and in particular the Mary Sykes case) contains a text book example of how to separate a senior citizen from his or her real estate.

 

1.        Quick shot deed.      Take mother to a lawyer under the guise of helping her engage in estate planning and suggest a ‘living trust.’   This is a trust in which mother declares herself as trustee and beneficiary of a necessary trust.    The successor trustee is the person who desires to absorb the assets to the exclusion of mother and the other heirs.      With the help of an unprincipled and co-conspirator lawyer, mother is declared incompetent and the miscreant successor trustee is now the trustee and in control of the real estate.        As trustee the miscreant now can create deficiencies that allow the property to be sold at a bargain price and through a series of mesne transactions the proceeds find their way to more deserving beneficiaries.

 

a.        For this transaction to be consummated you need a series of strawmen.     It has been suggested that one of the guardian ad litem had (or has) a husband who regularly engages in such activities and that the real estate track book reveals a large number of such transactions.  The strawman provide for legitimacy appearance.    At the end of the transaction all the conspirators are rewarded with a generous payout reported on the 1040 tax form as a capital gain.   (No corrupt judge is required to cover up the perfidy.

b.      There are some interim steps.     Maintenance costs increase, mortgage payments fall into semi-defaults, esthetics are neglected *****.    A ragged throw rug, or a smelling rag left on the sink can turn off a prospective purchaser.     A broken window in the bathroom can reduce the value of a home to a prospective buyer by a $100k.   The smell of urine also does wonders.

 

2.        Poor mother has run out of money scam.      With the co-operation of a corrupt judge, corrupt judicial officials, corrupt lawyers the home of a person who has been subjected to a guardianship can be sold off by a judicially managed sale at a bargain price.    The difference between the Quick shot deed transaction and this transaction is that a corrupt judge provides the cover.    The Judge acts out of pretended compassion so that grandma will not have to be evicted from her exploitative nursing home or similar facility.     In Sykes money was short because about two million dollars escaped inventory.   Protests have gone unanswered.

 

3.       Friendly foreclosure.      In the Sykes case, Gloria’s payments were allegedly escrowed by the HOlder of the mortgage at the request of one of the attorneys for the guardian.    The escrowed funds were not credited to the mortgage and thus the mortgage went into default.     The guardian ad litem used her clout and a series of statements that were unfounded to tie up Gloria’s funds.    Thus, the mortgage holder was quite content.    It has the money and the security.    The lawyers having special relationship with the holder of the mortgage either purchased the note, or made a special fee relationship with the holder.    The net was the mortgage foreclosed and title cleared by the decree of foreclosure.     Again a series of mesne transactions yielded full value to the dwelling.     Of course a deficiency judgment is available to stop overt complaints by the victim as the miscreants are aware that in most instances the only bidder at a judicial sale is the holder of the mortgage.    If the property is particularly valuable you might obtain outside bidders.   At that point in time, the bank just bids in its mortgage, accrued interest, attorney fees and other costs and the chips fall where they may.

 

There are variation on these schemes including contesting title, lien claims etc.

    Right now in Florida Kevin P’s mother in law’s property in South Florida is being primed for such a sale.    Like the Mary Sykes case the property has value for high end development   The guardians for profit recognize the potential and you can bet your bottom dollar that a judge is going to order the property sold and bargains are going to obtained.    Why pay a fair price for a senior’s property when it can be stolen?       Offering the Judge’s family members such as the wife, daughter in law, et al a piece of the actions speeds up the transaction.     (This is what Janet is finding in California).

JUST TO MAKE THE RECORD CLEAR - THE BREACH OF A FIDUCIARY RELATIONSHIP IS A TAXABLE EVENT.   THE TRUSTEE AND/OR THE GUARDIAN ARE FIDUCIARIES.    WHEN THE FIDUCIARY TAKES CONTROL OF THE CORPUS OF THE TRUST OR THE GUARDIANSHIP ESTATE WITH THE PURPOSE OF DEFRAUDING THE WARD, THAT IS THE TAXABLE EVENT AND HE AND ALL HIS 18 USCA 371 CO CONSPIRATORS INCUR TAX LIABILITY AT THAT POINT AND HAVE TO DISCLOSE THE TRANSACTION TO THE TAX PEOPLE ON THEIR TAX RETURNS FOR THAT YEAR.   THE PROCEEDINGS OF THIS FRAUD IN NOT A CAPITAL GAIN, BUT IS ORDINARY INCOME.

As the guardian for profit or the trustee has a continuing obligation that fraud continues every day until it is cured.

Why do the taxing authorities ignore the collection of taxes due from these corrupt lawyers, corrupt judges, corrupt judicial officials?

 

Ken Ditkowsky