A property sale listing could mean your dream home, or something far more sinister. San Luis Obispo County officials say organized real estate fraud is targeting local property owners and real estate agents.
The San Luis Obispo County District Attorney's Office says this is how the scheme works:
- Fraudsters begin by impersonating legitimate property owners.
- They then remotely contact unsuspecting real estate agents and request that the property be listed for sale.
- When an offer is accepted from a legitimate buyer, a transaction is initiated with a title company.
- The impersonators request that the documents be sent to them by way of email, citing that they are out of the area and cannot meet with the escrow officer in person.
- Often, the impersonators claim they are undergoing cancer treatment and must utilize their own notary. The required escrow documents containing forged signatures and a fraudulent notary stamp are then shipped back to the title company.
Robert Mariani says the price of homes and other properties has been on the rise in San Luis Obispo County since 2012, and after 23 years as a real estate agent in the area, organized real estate fraud doesn’t come as a complete shock.
“Honestly, it's concerning," Mariani said. "It's not surprising. It's the high values and people who are dishonest that think they're going to make a fast buck.”
Graham Updegrove is the owner of California Coastal Real Estate. He said he’s seen many instances of real estate fraud in SLO County, especially in the last five years.
“It is almost entirely focused on vacant land," Updegrove said. "Fraudsters are savvy. They know that if they're trying to impersonate a homeowner, that they're not going to have access to that property, whereas vacant land, there's nothing on the property and it's a lot easier.”
He said fraudsters will call agents asking for help to sell property, but give the excuse that they don’t have any of the necessary paperwork and they can’t meet face to face. Updegrove said messages will usually include bad spelling and come in outside of business hours because most fraud cases are initiated abroad.
Mariani said he’s heard of a handful of incidents where agents have sold fraudulent properties in SLO County. He said experienced agents are more likely to recognize the signs.
“There are consumers that are wondering if they should work with a professional or if they should go at it alone, and it really protects them in a big way and minimizes those big risks,” Mariani said.
Just last month, a man from Nigeria was sentenced to a year in San Luis Obispo County Jail for attempted grand theft related to a real estate fraud scheme.
According to the district attorney’s office, the man attempted to sell a vacant lot by posing as a family member of the property owner. He was arrested after meeting with undercover investigators at the SLO County Airport.
The DA’s office says that since creating an information-sharing network with local realtors back in 2023, investigators have identified 120 local properties that have been targeted, and in almost all cases, a potential sale was blocked.
They’ve also identified 24 notaries whose commission stamps have been compromised, and 70 bank accounts that were being used for the movement of funds.
To report suspicious activity related to real estate, contact SLO County District Attorney Investigator Eric Vitale at (805) 781-5868.
