If you are at all concerned about the problems associated with Real Estate and Mortgage Fraud, hop on a plane and get yourself to Las Vegas for next week’s inaugural Mortgage Fraud Blog Conference–the first national conference to bring together Realtors, mortgage brokers, bankers, attorneys, appraisers, industry vendors, federal employees, media and others to share best practices and methods in detecting and preventing the fastest-growing white collar crime in America today.

Many of the top people involved in Real Estate and Mortgage Fraud prevention will be attending and speaking at the conference, including:

• William Brewster: Fannie Mae’s Director of Anti-Fraud Initiatives.
• Ellen L. Cohen: Assistant United States Attorney in the West Palm Beach office of the United States Attorneys Office for the Southern District of Florida.
• Kathy Coon: Chief Appraiser-Director of Appraisal Quality Control at FNC, Inc.
• Jon R. Daurio, Esq.: Chairman & CEO of Kondaur Capital Corporation.
• Rachel Dollar, CMB: California attorney and recognized expert in the mortgage lending industry. Rachel is the editor of the acclaimed public service industry website Mortgage Fraud Blog.
• Carl R. Ernst: CEO of Ernst Publishing Co., LLC, and co-chair of the Land Fraud Workgroup of the Property Records Industry Association.
• Timothy Ervin: EMC Mortgage Corporation’s FPD/EPDAudit Team and supervisor of fraud investigations at EMC Mortgage.
• Linda S. Finley: Baker, Donelson, Bearman, Caldwell & Berkowitz, PC.
• Ann Fulmer: Vice President at Interthinx and a former victim of mortgage fraud.
• William P. Heller: Akerman Senterfitt.
• Douglas C. McNabb: McNabb Associates.
• Geoffrey K. Milne: Partner in the Litigation Department of Hunt Leibert Jacobson, PC.
• Barbara E. Nelan: Assistant United States Attorney in the Northern District of Georgia.
• James R. Park: Senior Vice President and Chief Appraiser for Aurora Loan Services, a Lehman Brothers Company.
• Michael R. Pfeifer: Managing Partner of Pfeifer & Reyolds, LLP — a law firm that concentrates on representation of mortgage lenders, brokers, servicers, and investors.
• Ralph Roberts, CRS, GRI: Founder of FlippingFrenzy.com, Realtor, author, blogger, consultant and coach who works alongside enforcement agencies, regulators, and financial institutions to educate, prevent and inform on the problems associated with Real Estate and Mortgage Fraud.
• Robert Russell: Counsel to Office of Thrift Supervision (OTS) Director John Reich.
• Merle Sharick: Business Development at Mortgage Asset Research Institute (MARI).
• Robert Strupp: Director of Research and Policy with the Community Law Center, in Baltimore, Maryland.

The Inaugural Mortgage Fraud Blog Conference is being held from Wed., Nov. 14 through Thurs., Nov. 15 at Circus Circus Casino & Hotel in Las Vegas, Nevada. For more information or to register before it’s too late to attend, visit the Mortgage Fraud Blog Conference website.

To help kick off RISMedia’s 2nd Annual CEO Exchange (July 23 & 24 at the Sanctuary Golf Course and Clubhouse in Salida, Colorado), I will be providing each attendee a complimentary copy of my latest book, Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership, co-authored with Rachel Dollar, a legal expert in the mortgage lending industry.

If you’re unfamiliar with RISMedia’s CEO Exchange, it’s an exclusive gathering of over 100 top brokers and Real Estate industry leaders for the purpose of discussing the most pressing issues facing the residential real estate industry today, and as Rachel and I point out in the new book, the most pressing issue is the proliferation of fraud in the Real Estate and lending industries. Real estate and mortgage fraud are a cancer that is eating away at the very foundation of the American Dream of homeownership.

According to the FBI, Real Estate fraud is one of the fastest growing white-collar crimes in the U.S. From 2003 to 2004, reports of mortgage fraud jumped 146%, and another 28% from 2004 to 2005. Reported dollar losses from mortgage fraud increased 90% from 2003 to 2004 and 136% from 2004 to 2005. Currently, lenders report over $1 billion in losses annually from mortgage fraud, and this accounts for only about a third of the losses actually suffered (only a third of the industry is subject to mandatory reporting requirements).

Industry leaders have long known about this growing problem, but con artists are able to adapt as quickly as new legislation is passed. In my experience, the best defense is education–teaching Real Estate professionals as well as consumers exactly what constitutes fraud, how to spot the signs of fraud, how to stop it, and how to get the word out about con artists and their accomplices.

I view the CEO Exchange as the perfect opportunity to further the crusade against Real Estate and mortgage fraud. By getting our book into the hands of industry leaderswe can take advantage of the trickle-down effect. Once industry insiders and thought leaders read the book, they will sound the alarm, and the rest of the industry will begin to take the threat more seriously. By becoming educated and joining forces, we can defeat the con artists and preserve the health of the Real Estate.

Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership provides real-world examples illustrating exactly how real estate and mortgage fraud are committed, pointing out the common signs of each scam, and providing tips on how professionals and consumers can protect themselves from becoming unwilling victims or unwitting accomplices. Topics covered in the book include:

• Defining real estate and mortgage fraud.
• Demonstrating the catastrophic effects of fraud on individual homeowners; the real estate industry; and local, state, and national economies.
• Differentiating between fraud for profit and fraud for housing.
• Identifying common schemes and schemers, including asset rental, air loans, chunking, double sales, straw buyers, nominees, and faulty appraisals.
• Spotting the warning signs of a fraudulent real estate deal.
• Proven tips and tricks for avoiding fraud and steering clear of gray areas in your real estate transactions.
• Practical advice for real estate agents, appraisers, mortgage brokers, investors, title companies, lawyers, and homeowners.
• Reporting fraud: One person can shut down a shady deal. Why you need to be that person and what you should do when you suspect fraud.
• Guidance on what to do if a con artist has victimized you or a relative, friend, or acquaintance.
• Advice on what to do if you or a loved one has knowingly or unwittingly been involved in a fraudulent deal.

This is just the beginning of a revolution in the real estate and lending industries to take back control from the con artists and other opportunists who are committed to milking the industry dry for their own benefit.

From my co-author, Attorney Rachel Dollar of Lanahan & Reilley, LLP, and MortgageFraudBlog.com:

Matthew Bevan Cox, 37, pled guilty to mortgage fraud, identity theft, passport fraud, and probation violation charges arising from a Northern District of Georgia indictment, criminal informations filed by the Middle Districts of Florida and Tennessee, and a Middle District of Florida revocation petition.

“Cox was the subject of a three-year nationwide manhunt while he continued to commit mortgage fraud under stolen identities in multiple states, leaving a trail of victims and missing money, said United States Attorney David E. Nahmias in Atlanta. “The repeated use by Cox of the stolen identities of minor children, the homeless and others to place multiple fraudulent loans on the same property without the knowledge or consent of the true owners has resulted in clouded property titles in several states and years of unresolved litigation. He will now face the long prison sentence he deserves for his crimes.”

According to the information presented in court: Cox rented or agreed to purchase properties from true owners, fraudulently erased prior mortgage liens and assumed the identity of the owners, used a stolen identity or paid straw borrowers to obtain multiple mortgage loans on the same property. Cox then changed locations and committed similar mortgage fraud schemes in other states. Cox and his co-conspirators used stolen identities to execute the mortgage fraud, including identities of minor children and those he received from conducting “Federal Surveys” of the homeless and drug rehab patients. Cox also used these stolen identities to obtain drivers licenses and state identification cards, purchase vehicles, lease mail drops and virtual offices, rent apartments, obtain credit cards, open bank accounts, and to apply for birth certificates and a passport used for travel to Jamaica, Greece and other foreign destinations while a federal fugitive.

Click here for the rest of Rachel’s write-up.

More, from our good friend Jeff Testermann of the St. Petersburg Times:

• In Tampa, according to the newly filed charges, Cox committed $8.6-million in fraud on transactions involving 77 properties in the Tampa Heights and Ybor City areas.
• In Nashville, Cox committed $2.35-million in fraud on 22 properties, according to the new charges.
• Cox was helped by 22 unnamed co-conspirators in Tampa and Nashville, the new charges reveal.
• Now, in a deal with the government, Cox, 37, says he will plead guilty to the new charges as well as to charges in a 42-count indictment filed in Georgia in August 2004, when he was a fugitive whose name topped the Secret Service’s most-wanted list.
• Facing as many as 422 years in prison, Cox’s plea deal presumably will save him from a life term in return for his cooperation in pursuing accomplices.
• The charges in Tampa list 16 unnamed co-conspirators, identified by initials only. The charges covering Cox’s activities in Nashville list six more unnamed co-conspirators.

Dateline NBC aired “Thief of Hearts” last night–a one-hour profile of noted real estate and mortgage fraud con artist, Matthew Cox. Unfortunately, the entire balance of the show focused not on the problems, warning signs, and societal issues associated with real estate and mortgage fraud–a crime that can only be described as a runaway cancer that is eating away at our floorboards. No, in typical big media fashion, NBC chose to position Cox as a ‘Don Juan’ who stole women’s hearts while attempting to overcome some sort of inferiority or superiority complex by stealing millions of dollars and the identities of close associates and “friends.”

The truth is that Matthew Cox and his known accomplices–namely, Rebecca Hauck, Alison Arnold, and Amanda Gardner (all of whom were interviewed for the piece)–literally ruined people’s lives and damaged entire neighborhoods, all in the name of greed and corruption. (To her credit, Alison Arnold turned herself in, served time in prison, and is now paying off a stiff penalty for her part in Cox’s schemes.)

Rather than focus on the damage Cox did or God forbid, the warning signs of real estate and mortgage fraud, NBC Correspondent Keith Morrison took his viewers on an hour-long journey that touched solely on Cox’s artistic ambitions, dyslexia, ability to woo women, and his writing (Cox wrote a novel called The Associates with a plot that closely resembles the time he spent committing real estate and mortgage fraud).

It’s not as though the producers of Dateline NBC were unaware of my efforts and those of my colleague Rachel Dollar in educating the public about threats from real estate and mortgage fraud. In early December of 2006, Joe Kraynak, a writer who worked with Rachel and me on the book “Protect Yourself from Real Estate and Mortgage Fraud” (to be published by Kaplan, this August, 2007), emailed the following message to the producers of Dateline NBC:

‘To Catch a Predator’ gave me an idea for another series centering around a sting operation. I’m currently co-authoring a book with the top two mortgage/real estate fraud experts in the nation–Ralph R. Roberts and Rachel Dollar. Ralph works alongside law enforcement to catch real estate con artists and educate industry professionals. I think a documentary complete with sting operations would be intriguing. Check out FlippingFrenzy.com and www.mortgagefraudblog.com. I can also provide you with additional contact information for Ralph and Rachel. Please let me know if you need additional information.

NBC had the perfect opportunity to educate and inform an alarming number of people on the dangers and warning signs associated with Real Estate and Mortgage Fraud. Instead, it only added to the problem by sensationalizing Cox’s efforts.

Recommended reading from this morning’s Wall Street Journal:

Recommended Reading for March 12, 2007
By Keith Huang - The Wall Street Journal

Detroit-based realtor Ralph Roberts has been selling real estate for more than 25 years. In recent years, Mr. Roberts has turned his attention to real-estate and mortgage fraud.

Mr. Roberts has even worked with federal officials to educate state and local law enforcement, regulators and financial institutions on how to detect and avoid common real-estate scams.

Some of the more common schemes include property flipping with false statements to lenders, or the use of fraudulent qualifications, such as a buyer fabricating an employment history or credit record.

Mr. Roberts says con artists have increasingly been turning to the Web to perpetrate their scams. To combat this rise, he has helped nurture an online network of fraud busters.

According to a recent report by the Internal Revenue Service, the booming real-estate market has been complemented by an increase in real-estate-related schemes. In fact, the IRS said the number of real-estate fraud investigations the agency initiated doubled between fiscal 2001 and fiscal 2003.

Mr. Roberts, who has written numerous books on the subject, runs FlippingFrenzy.com, a blog about real estate fraud. He’s also a contributing author to “Flipping Houses For Dummies.” More recently, he and Rachel Dollar co-wrote Protect Yourself Against Real Estate and Mortgage Fraud,” which is scheduled for publishing this summer.

Here is a selection of Web sites from Mr. Roberts.

MortgageFraudBlog.com, MortgageFraudBlog.com

“Hosted and maintained by nationally recognized mortgage-fraud expert, Rachel Dollar, this blog delivers the daily buzz on mortgage fraud. Visitors can also learn about what mortgage lenders, real-estate professionals, law enforcement agencies, legislators, and community activists are doing to stop it.”

Georgia Real-estate Prevention and Awareness, GREFPAC.org

“Georgia is the first state to have officially declared mortgage fraud a crime, and one of the key driving forces behind the legislation was Georgia Real Estate Prevention and Awareness (or GREFPAC). Here, you can learn more about the group and find out what you can do in your own community to curb real-estate and mortgage fraud.”

Stop Mortgage Fraud, StopMortgageFraud.com

“This is an excellent site for consumers who may suspect that they’re about to become the victim of predatory-lending practices. The site features a borrower’s bill of rights, a list of warning signs that commonly indicate abusive lending practices, as well as information on how to report suspected incidents of predatory lending.”

Freddie Mac’s Don’t Borrow Trouble, DontBorrowTrouble.com

“On behalf of mortgage lenders and homeowners, Freddie Mac has created this site to promote its ‘Don’t Borrow Trouble’ program. Homeowners who have trouble maintaining their monthly mortgage payments can learn how to regain their financial footing without falling prey to predatory lenders. This is also an excellent Web site for homeowners who are facing foreclosure.”

U.S. Department of Housing and Urban Development (HUD), HUD.gov

“HUD provides a vast amount of reliable information about renting, buying, owning, and financing the purchase of homes. The site also features articles on fair housing, foreclosure, subsidized housing and home improvements. This site is excellent for first-time buyers and established homeowners.”

Realty Times, RealtyTimes.com

“Realty Times is the leading Real Estate News site on the Internet for both consumers and real-estate professionals. Although the site’s offerings are not exclusively dedicated to topics related to real-estate and mortgage fraud, it regularly features articles about the overall health of the real-estate industry.”

Inman News, Inman.com

“Inman News features articles and commentary from a wide selection of the top residential and commercial real-estate experts across the country. Articles cover everything from current mortgage-interest rates to tips for real-estate professionals and investors. The site also includes regular features on real-estate and mortgage fraud.”

RISMedia, RISMedia.com

“Founded in 1980 by CEO and Publisher John E. Featherston, RISMedia is committed to being the definitive source for news and information pertaining to residential-real estate. The site’s content is primarily directed toward residential real-estate professionals and includes regular features on real-estate and mortgage fraud.”

Conference of State Bank Supervisors, CSBS.org

“Whether you’re in the mortgage loan industry or a consumer, this site shows how CSBS and other mortgage banker associations are working together to curb abuses in the industry.”

Star Power, GoStarPower.com

“Headed by Howard Brinton, Star Power is dedicated to bringing top producing real-estate agents [Stars] together to share their proven tips and strategies. Click the Products link to find out more about STAR POWER Systems ‘Detecting and Preventing Real Estate Fraud’ program.”

FlippingFrenzy.com’s good friend and colleague, mortgage fraud attorney Rachel Dollar, has joined the Santa Rosa, CA, law firm of Lanahan & Reilley LLP, where she will serve as Chair and founding partner of the firm’s Mortgage Banking Group. For anyone unfamiliar with Rachel, in addition to her work as an attorney, she is a certified mortgage banker and editor of the widely acclaimed website, MortgageFraudBlog.com. As does FlippingFrenzy.com’s founder Ralph Roberts, Rachel routinely speaks at real estate industry events and presents mortgage fraud-related seminars and classes for law enforcement, regulators, lenders and other real estate professionals.

Rachel’s reputation in the mortgage industry is a result of her advocacy for heightened fraud awareness. In 2005, she was recognized as one of 100 most influential people in the real estate industry, and she regularly represents some of the most prominent mortgage lenders and investors. Under Rachel’s leadership, Lanahan & Reilley will provide aggressive representation in mortgage fraud, lender liability and servicing matters, as well as assist clients with regulatory compliance, documentation, best practices, licensing, default servicing and securitizations.

FlippingFrenzy.com congratulates Rachel and Lanahan & Reilley on this new relationship. With Rachel on its side, Lanahan & Reilley LLP is bound for nothing less than greatness.