What Can Happen If You're Charged with Real Estate Fraud?
We're now seeing an increasing number of real estate fraud-related offenses, which can take the form of many different types of crimes and circumstances.
For example, someone can be a real estate agent or broker and manipulate the numbers to help their clients qualify for a loan.
They can allow them to use their employment to show they make more money than they do, and there's a whole bunch of other different things that can be done.
This would be real estate fraud, and the person would face prosecution at the California state level, which I see most of the time, or at the federal level if other factors and circumstances apply.
California's criminal law provisions cover fraudulent conduct in many ways during the real estate transaction and mortgage loan acquisition process.
Simply put, real estate fraud occurs when someone commits fraud related to the purchase, sale, rental, or financing of real estate property. Real estate fraud laws address criminal conduct involving mortgages, housing, rental agreements, and foreclosures.
This type of fraud often results in significant financial losses, and prosecutors will aggressively pursue credible allegations. Our Los Angeles criminal defense lawyers will review the laws below.
Grand Theft – Penal Code 487 PC
Several statutes for real estate fraud, such as grand theft, are defined under California Penal Code 487. If the prosecutor uses grand larceny in the context of real estate fraud, they must be able to prove certain factors to obtain a conviction.
For example, they must also show that the defendant intentionally deceived the property owner with false claims or representation and that the unlawful conduct allowed them to take ownership of the property.
Under this statute, real estate or mortgage fraud occurs when someone makes false statements or promises to a buyer or seller with a specific intent. The other party is misled and then gives them something of value to which they would not otherwise be entitled.
This includes lying over the ownership of a piece of property during the sales process and concealing defects with the property, among others. Other specific provisions also apply to real estate fraud cases. These include:
- foreclosure fraud in violation of California Civil Code Section 2945.4,
- rent skimming as prohibited by Civil Code Section 890,
- presentation of forged documents as prohibited under California Penal Code Section 115 PC and
- forgery under Penal Code 470 PC.
Punishments for Real Estate Fraud Cases
Currently, the Attorney General's office is aggressively prosecuting numerous real estate fraud cases, with the aim of securing prison sentences for the accused.
They're looking to cause real estate agents and brokers to lose their licenses. They take this kind of business very seriously.
They do because they perceive this to affect our economy: When people get loans when they shouldn't, they don't pay them.
It puts banks in challenging situations. People are foreclosing on homes, and the banks are losing money. They don't want to see another crash like the one in 2008 when these banks loaned people money they could not repay. So, any form of real estate fraud will be dealt with harshly.
Defending Real Estate Fraud
I've defended people charged with various types of real estate fraud for the past 30 years. The first thing we have to do is get you into the office to discuss the case and decide if you're being investigated.
It's an excellent move to sit down with the authorities and talk to them and give them your story or perspective, or it's best to keep your mouth shut and let your attorney do the talking. This is the first thing we have to look at.
If you've already been charged with real estate fraud, we now have to evaluate whether the police/prosecutors have a good case against you.
In other words, if you go to trial, you must review all the evidence closely. You're entitled to do that. You can go to trial. Will you win if you decide to go to trial in a real estate fraud case?
It's best to evaluate it with someone like me, who's been doing this for 30 years, who's done over 250 jury trials, who's seen what it takes to win, and who's seen when people make the wrong decision to go to trial.
So, if you go to trial, we will do the investigation and set the case up to win the chance at a jury trial. If, on the other hand, it's not in your best interest to go to trial because you're going to be too low, you won't waste time, money, effort, and stress only to have a bad result.
In that case, we'll have to mitigate the circumstances. We will have to put together a mitigation package on your behalf. Let me speak to the authorities, whether the police, the prosecutors, or the judge, and see what we can do to get you the best possible result.
Through a process known as prefiling intervention, it might be possible to drop or reduce charges before your case proceeds to court. Effective representation by an experienced defense lawyer is crucial to maximizing the chances of a successful outcome in your case.
If you or a loved one is facing real estate fraud charges, you're in the right place. With my extensive experience and proven track record, I know what it takes to navigate these complex cases. Don't hesitate to reach out for a meeting with Ron Hedding. I'm here to support you.
Located in Los Angeles County, Hedding Law Firm offers a free case evaluation. If you're facing real estate fraud charges, don't wait. Contact us today to start building your defense.
