Arizona Attorney General Terry Goddard is suing multiple real estate agencies and professionals over alleged home foreclosure fraud.
Goddard filed the suit against 13 real estate entities, targeting an alleged three-part multi-million dollar real estate fraud scheme.
The complaint states that the defendants deceived under-qualified investors into buying homes and then sold the properties to rent-to-own buyers.
Among the accused are a real estate agent, a real estate broker and several loan officers.
According to an AZBiz.com article the broker, Vince Volpe of RE/Max All Executives, says he wasn’t involved and is cooperating with the AG’s office. The accused agent, Andrew Silverstein, is not longer at Volpe’s office.
Therein lies one of the risks of being a real estate broker. You are liable if someone in your brokerage does something stupid, a category that clearly fraud falls under.
Here’s something I struggle with:
Under the investments scheme, Goddard said, the defendants deceived more than 130 investors into buying multiple investment homes under a "worry free" guarantee requiring little or no startup capital. However, once the down payment was made, the investors stopped receiving rental payments. (my emphasis)
There is no “worry free” investment. Ever. Period. I suppose Treasury Bills are about as worry free as they come, they are backed by the U.S. government after all. So unless it fails”¦. well, so maybe nothing is truly worry free.
In all seriousness, if some investment group promises you untold riches, or makes claims of guaranteed success or proclaims some fool-proof process, don’t walk away.