HomeMy WebLinkAboutMINUTES - 06151999 - C162 C. 162
THE BOARD OF SUPERVISORS OF
CONTRA COSTA COUNTYg CALIFORNIA
Adopted this Order on June 15,1999, by the following vote:
AYES: Supervisors Gioia, Uilkema, Gerber and Canciamilla
NOES: None
ABSENT: Supervisor DeSaulnier
ABSTAIN: ?done
Re: Report on Ileal Estate Fraud Prosecution Program
On this date, the Board of Supervisors considered acknowledging the
Report on Real Estate Fraud Prosecution Program (as attached) by Gary
Yancey, District Attorney. This was an item on the consent portion of the
agenda.
The consent iters were discussed. Following Board discussion,
Supervisor Uilkema moved to accept the items. Supervisor Gioia seconded
the motion.
IT IS BY THE BOARD ORDERED that the deport on Real Estate
Fraud Prosecution Program. is ACKNOWLEDGED.
I hereby certify that this is a true and correct copy of
an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
Attested: .] , e 1 , 1999_
Phil Batchelor,Cleek of the Board
of S,pervisors and County Administrator
By. }�A,Deput CI
t
Office Of District AttorneyGaryT.Yancey
Dis4rici Ai4orttsy
cou�t House,Fourl'h Floor Contra
Costa
R a+`s°,Box 670 uougang
ty
Board of Supervisors `
Contra Costa County ;
651 fine Street �c`
Martinez, CA 94553
May 24, 1999
Dear Board Members:
RE: Report on Real Estate Fraud Prosecution Program.
Pursuant to Government Code § 27388, I am reporting to your Board on the Real Estate Fraud
Prosecution Program I operate for the County. Effective July of 1996, your Board authorized
the addition of a Deputy District Attorney and District Attorney Senior Inspector to any staff for
the investigation and prosecution crimes of real estate fraud, to be offset by revenue generated by
filing fees on certain real estate instruments.
1996 Activity
My Real Estate Fraud Prosecution team was formed July of 1996 and is housed within the
District Attorney's Special Operations, which is also responsible for prosecution of
environmental law violations, white collar crime, political corruption, and consumer fraud. After
the completion of administrative start-up duties, including selection investigative staff and
research of law and case law in this area, the team began accepting cases. During 1996, the
Team accepted five real estate fraud cases. The aggregated monetary loss suffered by victims in
cases investigated in 1996 exceeded$150,000. These cases involved suspected lease option
fraud, foreclosure fraud, and grand theft. Investigation of these cases by Team staff revealed
insufficient evidence to justify the filing of criminal charges at that time. However, one of these
cases whose investigation began in 1996 resulted in a felony conviction in 1999.
1997 Activity
In 1997, the Team investigated twenty-one cases of suspected real estate fraud. We filed four
felony cases of real estate fraud in 1997, and continued the prosecution of two other felony level
real estate fraud cases filed before 1997. New cases involved six citizen victims and nearly
twenty defrauded lenders and title companies. The total aggregated monetary lass suffered by
individuals, associations, institutions, corporations and other relevant public entities exceeded
S 400,000 for cases investigated in 1997. The total aggregated monetary loss suffered by victims
(individuals and entities) in cases filed that year exceeded $ 300,000. In 1997, we also
participated in several felony restitution hearings for a criminal defendant who earlier had been
placed on felony probation for real estate prosecution fraud. Our efforts helped to convince the
trial court to increase the amount of monthly restitution payments ordered.
1998 Activity
In 1998 the Team investigated fifteen real estate fraud cases with total monetary loss suffered by
by citizen victims, associations, institutions,corporations and other relevant public entities,
exceeding $ 200,000, We filed one new felony and one new misdemeanor real estate fraud case.
Total monetary loss for the eight citizen and public entities victimized in these cases exceeded
$ 50,000. In addition,Team continued the prosecution of four real estate fraud cases filed before
1998. During 1998, we obtained felony convictions in three of the 1997 real estate fraud filings.
Multiple felony convictions on these cases included grand theft, embezzlement of real estate
funds, fraudulently acting as an unlicensed real estate appraiser, forgeries of real estate appraisal
forms, false personations,recording of forged instruments, forgeries of deeds of trust, forgeries
of promissory noted, forgeries of deeds of reconveyance and fraudulent sales of real estate
securities. We obtained restitution orders in 1998 in excess of 200,000.
Funds Received and Expended
Funds raised by the filing fees from the Real Estate Fraud Trust Fund is applied as revenue to the
District Attorney's budget based on documentation maintained by project staffs Daily time and
attendance records show time Team staff spend on real estate fraud activities. Funds have been
used to offset salary and benefit costs,to the extent documented by the time records, of Team
staff directly responsible for the operation of the Real Estate Fraud prosecution Program. The
records are subject to audit by the County Auditor-Controller. In 1996, $ 83,515 was expended
and received by the District Attorney's Office for real estate fraud investigation and prosecution..
Comparable figures for 1997 and 1998 are $108,321 and$51,286,respectively.
Concluding Comments
Real estate fraud cases are very labor intensive for investigative and attorney staff in any Office,
ever.when the case work-up does not lead to a determination to file criminal charges. These
cases arrive at my office with little or no preliminary police investigative work, in contrast to the
"non-document" crimes more frequently handled by the rest of my Office, Even in cases referred
by police, police officers frequently lack the skills an experience necessary to work up this type
of case so that an attorney can determine the appropriateness of criminal filing. Substantial
investigation time is required on the part of theTeam inspector,under attorney guidance. In
addition,there is often more voluminous documentary material to be reviewed and evaluated by
the attorney before making a filing decision. It should be also be noted that, in many of these
cases where we did not file criminal charges due to insufficient evidence, our Special Operations
Unit,which handles a combination of criminal and civil matters,took f u-ther action.
To advance their investigation and prosecution work., staff have maintained contact with the
Contra Costa Association of Realtors, the Contra Costa County Recorder's Office,the Contra
Costa County Assessor's Office and with counsel for various local title insurance companies.
Police agencies within.the County have are also been made aware of our special team, so that
they may serve a source of referrals. In addition, my staff attorney is active in the Real Estate
Fraud Committee of the California District Attorney's association to improve our°investigative
and prosecutorial expertise in this specialized area and to address legislative needs at the State
level related to real estate fraud.
I am proud of the record of this new program in my Office and Dope to continue our success in
deterring, investigating and prosecuting real estate fraud crimes in Contra Costa County.
f s truly,
Card 4. Pare e
Dis't°t attoy