The Expert Podcast

Description:

• What is Deed Theft?
  • Deed theft occurs when scammers forge a deed transfer to claim ownership of a property.
  • This process involves reviewing public real estate records to create a fake deed and transfer ownership to a fraudulent entity.
• How Does Deed Theft Work?
  • Scammers access public records to find properties with absentee owners (no mortgage and different mailing address).
  • They create a forged deed transferring the property to a fake company, often using a signature from a previous deed.
  • These forged deeds are filed with the county recorder, who simply processes documents without verifying the authenticity of signatures.
  • Once the forged deed is filed, scammers may list the property for sale, take out a mortgage, or sell it, running off with the money.
• What Happens When You Discover Deed Theft?
  • The real property owner may start receiving notices of sale or liens they know nothing about.
  • A title search will reveal the fraudulent deed, and the property owner must take steps to undo the damage, including legal actions.
  • In some cases, the property may have been sold to an innocent third party who cannot recover the money.
• How to Prevent Deed Theft:
  • File a notice of intent or a freeze on your deed to protect against unauthorized transfers.
  • Always perform due diligence when purchasing property, including verifying the seller’s identity and using reliable escrow services.
  • Be cautious of properties with no mortgages and absentee owners, as these are prime targets for scammers.
• Real-World Example:
  • Scammers used disbarred attorneys with fake Social Security numbers and IDs to carry out a deed theft scheme.
  • Be aware: deed fraud is still ongoing, and taking preventive measures is crucial to protect your property.

Tune in to learn how to avoid becoming a victim of deed theft and safeguard your property. 

What is a background check?

• Background checks are commonly used for employment, renting real estate, and business deals.
• Understanding when and how a criminal history can be used is crucial, but laws vary by state.

Case study: A California example

• A private investigator was hired to perform a background check for a prospective employer.
• The investigator found criminal history on the applicant and provided it to the employer.
• The employer declined the job offer based on the information.
• The applicant sued both the employer and the background check agency, citing California law that prohibits using criminal records for employment purposes if the conviction occurred more than 7 years ago.

Legal limitations on background checks

• In California, the conviction record cannot be used for employment decisions if it’s older than 7 years.
• Different states and federal laws may have limitations on the use of criminal history for various purposes (employment, renting apartments, issuing insurance policies, etc.).

Seeking legal advice before using background checks

• If you are considering using a criminal background check, seek legal advice to ensure you comply with local, state, and federal laws.
• Private investigators must be cautious when providing criminal records to third parties. Ensure your clients know how to use the information legally.

Risks of using third-party background checks

• Third-party agencies might not always provide accurate or complete information.
• Criminal records might be linked to the wrong individual or include arrests without convictions.
• Some third-party services use inexpensive databases that may not be 100% accurate or comprehensive.

How to obtain accurate criminal records

• For the most reliable criminal record information, directly visit the relevant government agency (police department, prosecutor, courthouse).
• Be cautious when relying on online background check services as they may not access all jurisdictions or provide complete records.

Takeaway

• Knowing how and where criminal records are obtained is as important as obtaining them.
• Understand the legal restrictions surrounding background checks to avoid legal issues when making decisions based on criminal history.

 Description

• Topic: Exploring Third-Party Liability as a Recovery Strategy for Fraud Victims
• Overview:
  • Discussing the role of third-party liability in recovering losses from fraud, scams, Ponzi schemes, or lawsuits.
  • Highlighting how principal fraudsters often hide or squander assets, making direct recovery difficult.
  • Introducing third-party liability as an effective strategy, recently reinforced by case law in Pennsylvania.
• Key Points:
  • Third-Party Liability Defined:
    • Legal theory allowing victims to pursue damages from businesses or individuals that indirectly enabled or extended fraudulent activities.
    • Now established as case law, confirming civil liability for aiding and abetting fraud.
  • Examples of Third-Party Involvement:
    • Banks opening accounts negligently for fraudsters.
    • Accountants, sales companies, or other entities enabling fraud through negligence.
    • Newspapers or media outlets promoting fraudulent schemes.
  • Legal Implications:
    • Willful blindness or negligence can result in punitive damages.
    • Third parties with errors and omissions insurance or professional liability insurance often settle claims through policy payouts.
  • Investigative Process:
    • Identifying third parties requires proactive investigation.
    • Holding principals accountable when they divert funds for personal use (e.g., cars, houses, planes).
  • Real-Life Cases:
    • From Bernie Madoff to FTX crypto fraud cases, third-party liability has helped recover funds.
    • Recent Pennsylvania case highlights the significance of holding banks accountable.
  • Practical Application:
    • Leverage third-party liability to recover funds when principals are judgment-proof or hiding assets.
    • Third parties may also help locate hidden assets.
• Takeaway:
  • If you've experienced fraud, embezzlement, or scams, consider pursuing third-party liability.
  • Explore opportunities to connect liable third parties to recover your judgment or losses.
  • Always consult an attorney for specific legal advice.

 In this episode, we discuss:

• How to Identify a Good Judgment for Investment:
  • Differences between default judgments and litigated jury verdicts.
  • Challenges with asset recovery for default judgments.
• Seasoning a Judgment:
  • Why judgments should ideally be 6-8 months old but not exceed 4 years.
  • The importance of understanding statutory limitations and tolling times.
• Preliminary Asset Evaluation:
  • Observing the lifestyle of the debtor without conducting a full asset search.
  • How to perform non-intrusive checks like social media or online searches.
• Conducting a Full Asset Search:
  • Importance of pulling original source records for real estate, vehicles, and bank accounts.
  • How to access corporate records, intellectual property, and other assets.
  • Why certified and licensed investigators are essential for accurate searches.
• Understanding the Return on Investment (ROI):
  • Weighing the costs and effort of asset searches against potential recovery.
  • Examples of small but significant assets, such as websites, insurance policies, or even personal items like jet skis.
• Leverage Through Small Details:
  • Using assets like websites or personal property as negotiation points.
  • Tracing funds and connections between accounts for hidden assets.
• Ensuring Proper Paperwork:
  • The critical role of error-free documentation for garnishments or liens.
  • Avoiding situations where rejected paperwork could tip off the debtor.

This episode provides practical insights into evaluating, purchasing, and recovering value from court judgments. Whether you're an investor or a judgment holder, these strategies can help you maximize your returns while minimizing risks. 

 Description

• How Online Scams Typically Work
  • Explore the common patterns of online fraud, from fake investments to luxury item scams.
• Examples of Scams
  • Investment schemes promising high returns.
  • Luxury items like Rolex watches or hard-to-find goods (e.g., PlayStation 5) at unrealistically low prices.
• Social Media's Role
  • Scams often originate from platforms like Facebook, Instagram, or Telegram.
  • Scammers may use dating sites or social media posts to create curiosity and lure victims.
• Typical Scam Tactics
  • Hard-to-get offers or exclusive investment opportunities.
  • Fake account statements showing exaggerated profits.
  • Requests for additional payments (e.g., taxes, fees) to withdraw funds.
• Escalation of Losses
  • Scammers manipulate victims into investing more by showing fake returns.
  • Victims are often convinced to pay taxes or fees, further losing money.
• Red Flags to Watch For
  • Unrealistic promises of doubling your money quickly.
  • Difficulty withdrawing funds or additional charges to access your money.
  • Vague or overly complex investment explanations.
• If You're a Victim
  • Step 1: Investigate to uncover the scammer’s true identity (fake names, emails, addresses, etc.).
  • Step 2: Conduct an asset search to locate their bank accounts, properties, or corporate assets.
  • Step 3: File a writ of garnishment to seize the scammer's assets legally.
• Key Takeaways
  • Many scams follow a predictable pattern: casual introduction, enticing offer, and escalating demands for money.
  • Be vigilant for red flags and always conduct due diligence before investing.

Stay informed and protect yourself from online fraud! Check out our other episodes for detailed guidance on recovering from scams. 

 Description:
In this episode, we explore how individuals can leverage their investigative skills to uncover fraud and potentially benefit financially through whistleblower programs.

Key Points:

• Are You an Amateur Investigator?
  • Discover how your online research and investigative skills can uncover fraud.
  • Learn how whistleblower programs reward individuals who report fraud against the government.
• What Kind of Fraud Can Be Reported?
  • Examples include:
    • Tax evasion.
    • Fraudulent government contracts.
    • Unregulated securities or illegal investments.
• How Does It Work?
  • Fraud against the government can be reported under the False Claims Act (Qui Tam cases).
  • Properly filing as a whistleblower allows you to receive a percentage of recovered funds or prevented losses.
• Important Notes:
  • We are not attorneys and do not provide legal advice.
  • Always consult legal professionals for guidance on whistleblower filings.
• Why Use Your Investigative Skills?
  • Turn your passion for online research and data sleuthing into a potential income source.
  • Be aware that these cases can take years to resolve, but the financial rewards could be significant.
• Learn More:
  • Visit activeintel.com for free resources on how to conduct investigations.
  • Access tools and tips to get started with uncovering fraud and navigating whistleblower processes.

Use your skills to make a difference—and maybe even earn a financial reward while doing so! 

 Description: In this episode, we discuss how third-party liability can play a crucial role in recovering money lost to fraud, scams, or Ponzi schemes.

• The Problem of Short Recovery:
  • Victims of scams may only recover a portion of their losses (e.g., 40-60 cents on the dollar) after the asset recovery process.
  • How does this get resolved?
• The Role of Third Parties:
  • In many fraud cases, the majority of recovered funds come from third parties, such as banks, attorneys, or marketing companies, who indirectly enabled the fraudster.
  • Third parties may not have been directly involved in the scam but contributed by not performing enough due diligence or missing critical information.
• Real-World Example:
  • A $7 billion Ponzi scheme where victims were short $1.2 billion.
  • TD Bank was involved by opening accounts for the scammer, despite not knowing about the fraud.
  • Banks, unlike scammers, are not hiding assets, and they often have readily available resources like real estate and insurance policies.
• Investigating Third Parties:
  • As part of any fraud investigation, it's important to examine which third parties might have liability.
  • Banks and other institutions have assets that are easier to locate and access compared to scammer's hidden accounts.
• Insurance and Liability:
  • Third parties like banks, accountants, and attorneys often carry insurance policies (e.g., professional liability insurance) that could pay out if they are found liable.
• Action Steps for Victims:
  • Include third-party involvement in your investigation, as they may owe you money.
  • Attorneys often look into these third-party liabilities to ensure their clients are not left without recovery.

Remember, we are not offering legal advice, but understanding third-party liability can be a crucial aspect of recovering what you’ve lost.

Disclaimer: The contents of this episode are for informational purposes only and should not be considered legal advice. Always consult a professional attorney when dealing with fraud recovery. 

 Episode Show Notes:

• Introduction to Online Fraud and Scams
  • Many clients fall victim to online fraud, losing money through wire transfers to fraudulent parties.
  • Common types include escrow fraud (in real estate transactions) and fake investment schemes.
• The Financial Fraud Kill Chain (FFKC)
  • The FBI has a procedure called the "Financial Fraud Kill Chain" that can help recover funds from fraudulent wire transfers.
  • This procedure is not well known, and sometimes even banks are unaware of it.
• Requirements for the FFKC
  • The wire transfer must meet specific criteria:
    • The amount must be $50,000 or more.
    • It must be an international transfer (sent overseas).
    • The transfer must occur within the last 72 hours (though exceptions may apply).
  • Information required to initiate the process:
    • Victim's details (name, location).
    • Original bank details and account numbers.
    • Transaction details, including the SWIFT code and the recipient's bank details.
• Fincen's Rapid Response Program
  • The Financial Crimes Enforcement Network (Fincen) manages a rapid response program that has recovered over a billion dollars for U.S. victims.
  • This program works through the Financial Intelligence Unit (FIU) and activates the financial fraud kill chain.
  • Success rate of the program is 74%, with more than 2,000 incidents responded to.
• Types of Fraud and How It Happens
  • Fraudsters often manipulate banking systems to redirect funds to accounts they control, especially in real estate transactions.
  • Criminals spoof or hack emails from title companies and send fake wire instructions to victims, causing them to wire money to the wrong account.
• How to Protect Yourself
  • Before sending a full payment, consider sending a small test payment (e.g., $20, $200, $1,000) to verify the account.
  • Contact the title company directly by phone or in person to confirm they received the test payment.
• Conclusion
  • If you fall victim to fraud, the FFKC offers a potential way to recover your money.
  • To initiate the process, your transaction must meet the criteria mentioned.
  • For more information or to arrange a consultation, contact the company.

 Description:

• Can You Get an Electronic or Digital Copy of Your Car Title?
  • Why can't you just download or print a car title from your phone like other documents (boarding passes, passports)?
  • Vehicle titling is done at the state level, so there's no national car title yet.
  • California is leading the way by digitizing car titles, reducing the need for paper titles.
• Benefits of Digital Car Titles
  • You won’t need to deal with DMV bureaucracy or fill out forms.
  • Everything can be handled electronically via your phone.
  • Proof of ownership becomes easier, even with a lien on the vehicle, through QR codes or electronic signatures.
• State-Level Progress on Digital Titles
  • California is pioneering the shift towards digital titles.
  • Other states, like Virginia, New Hampshire, and Vermont, are also moving towards this digital transition.
• How Does an Electronic Car Title Work?
  • Blockchain technology is used to verify and store the title’s data.
  • Vehicle details (VIN, owner, lien holder) are stored in the cloud with a blockchain signature.
  • Ownership records are easily transferred electronically, making the process faster and simpler.
• Electronic Transactions for Buying/Selling Cars
  • Transactions can be completed on your phone, with fund transfers and ownership switches happening instantly.
  • Dealerships can transfer ownership immediately after a purchase, avoiding the long wait for titles and plates.
• The Role of Digital Wallets and Blockchain
  • California will use digital wallets to hold and transfer tokenized car titles.
  • The DMV will act as an overseer, ensuring the process is secure and efficient.
• Why This is a Game Changer
  • Car titles don’t get updated regularly, which can lead to them being lost or forgotten.
  • With digital titles, the risk of misplacing them is minimized.
  • Digital records help prevent title fraud, ensuring transparency about liens, salvage history, and stolen vehicles.
• Future of Vehicle Title Management
  • Digital titles will simplify ownership, eliminate fraud, and make the entire process more secure and efficient.

 Introduction:

• Auto leasing has significantly impacted the used car market over the past few years.
• Used cars don't come from a "used car factory"—they are sourced mainly from trade-ins and auctions.

Sources of Used Cars for Dealers:

• Trade-ins: Customers who trade in old cars for new ones provide a small portion of used car inventory.
  • Typically, dealers receive fewer trade-ins than the number of new cars they sell.
  • Some trade-ins are not suitable for resale (e.g., older, high-mileage, or mismatched cars).
• Auctions: The bulk of used car inventory comes from car auctions.
  • Manheim Auctions: One of the largest auction companies where dealers can bid on used cars.
  • Sources of Auction Cars: Rental cars (e.g., from companies like Hertz, Enterprise, Avis, Budget) and off-lease vehicles (cars returned at the end of a lease).

The Decline of Leasing and Its Impact:

• Historically, auto leasing accounted for a significant portion of new car purchases, and off-lease vehicles were a vital source of high-quality used cars.
• With fewer people leasing cars today, fewer off-lease vehicles are entering the used car market.
• The shift away from leasing has led to a shortage of desirable used cars, reducing the overall quality of available inventory.

Rental Cars vs. Off-Lease Cars:

• Rental Cars: Typically less well-maintained and with more wear and tear due to multiple drivers.
• Off-Lease Cars: Generally in better condition, as they are maintained by their original owners who typically take better care of them.

The Market Shift:

• Fewer off-lease cars mean dealers rely more on rental cars, which are now in higher demand and thus more expensive.
• Off-lease cars, which were once abundant, are now rare and highly valuable.

Lease Buyouts and Their Effects:

• In the past, lease buyout options were often set higher than the actual car value.
• With the rise in used car values, many customers are opting to buy out their leases, keeping cars off the market.
• The surge in buyouts has further reduced available used car inventory.

Decreased Popularity of Leasing:

• The used car market turmoil and the competitive new car market have reduced the appeal of leasing.
• Fewer leasing options are available, and those who do lease are less likely to return their cars to the market.

The Bigger Picture:

• The combination of fewer leased vehicles and increased buyouts has left a void in quality used car inventory.
• Buyers looking for high-quality used cars are now forced to purchase new vehicles, driving up prices and creating a tough market for both used and new car buyers.