Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x

Posted almost 15 years ago

Our First Deal Fed a SCAM!

I can't believe that our credentials were used to scam 2 elderly men, ages 77 and 79 out of $60,000.

Imagine my surprise , when I got a letter in the mail with a copy of a promissary note in my name, a copy of a "Deed of Trust with Assignments of Rents" on the property we rehabbed in Riverside and a copy of the 2 deposited checks of $30,000 into an account called Carlton Financial at Wells Fargo, a copy of the appraisal on the property, and a letter asking me to pay the monthly installments directly to the investors.

We bought the property in Riverside late July. In August I inquired with a broker about getting some cash out of the house so we could accelerate our investing activities. The broker ordered an appraisal which came in at a rediculously low amount. That meant that we wouldn't be able to get enough cash to do anything significant so we turned it down, and decided to wait for it to sell.

According to these elderly gentlement, this lady presented them with the appraisal and drove them to the property. They also thought the property was worth more than the appraisal and felt confident in taking $60,000 out of their CD to fund a secure property earning a much higher interest rate. She even paid their interest payments for a couple of months and then she disappeared.

I'm not out any money, and the county records are executed properly. The only ones financially affected from this deal is these poor men, but I still feel violated and am appauled that someone falsly used my credentials and our property to steal money from the elderly.

Comments (12)

  1. I understand she is paid $25 per quarter - all of which is earmarked towards her restitution. Somewhat unsatisfying for those waiting for repayment.



  2. Glad to see this lady getting what she deserves. I hope those defrauded will be able to get some of the money they spent back but, it usually doesn't happen in these types of deals. Any idea how she ended up getting ahold of the appraisal?


  3. Sounds like a just sentence. Glad to hear that she won't be doing this to anyone else for awhile.


  4. The word is in. According to http://whathappenedtothemoney.blogspot.com/2011/03/i-owe-i-owe-off-to-prison-mary-goes.html, Mary Perkins was sentenced to 121 months of prison, 3 years probation and over $17 million in restitution. It sounds like the victims have supported each other and actually went to the court for the sentencing. The judge was unforgiving. I'm not really sure why she got house arrest until her appointed time to arrive for jail later this month. What a brush with evil!


  5. Unfortunately the sentencing was postponed once again - this time until January 31, 2011. I wonder how many more times they can postpone sentencing?


  6. I hope she ROTS in jail for the rest of her life. Scum!


  7. What's worse is I met the lady - and she was as non-plussed as anyone. Not slick, just a normal middle aged lady that supposedly has a family, etc. Who knows about her motivations - but 90 people and $7mil? I was shocked for days. The court has been nice to her and delayed her sentencing several times, hopefully to allow her to straighten out her financials and return what she can. I doubt these poor guys will get their money back. I'll post here if I learn differently. Thanks so much for your comments!


  8. Wow... that's scary. I must say though... to come up with a plan the way she did was brilliant. Too bad there's a lot more people out there who's just like her. I feel so bad for the parties who were involved in such a scam. Perhaps they should only deal with people they trust. I am so happy that she's been caught and I hope she learns her lesson. Don't these scammers know that doing people wrong to gain wealth is short lived. Hmmm... I guess she's not that brilliant after all. Thanks for the update!


  9. Are the 2 victims going to be made whole? Thanks for the update.


  10. wow, I hope they throw the book at her. People like her need to be dealt with in the highest order to set an example for others to not try these again. I am going to post a story soon from a couple I met recently that was scammed by some "guru". Its important to share your story. Thank you for sharing it.


  11. Update: Mary Perkins, the scammer, plead guilty to mail fraud to scamming over 90 people out of $7 million. Her sentencing is currently scheduled for December 7.