Plaintiff Financial Fraud

  • Real Estate Fraud: There are numerous techniques by which unscrupulous operators commit fraud related to real estate. One way is for a con artist to arrange for an appraiser to give an inflated valuation on a property. With the inflated appraisal, the con artist may arrange a gullible buyer to take out a loan on the property for more than its real value. As a way for the operator make money on the deal, he or she arranges to get a cut of the inflated loan, leaving the buyer with a low-value property and a high-liability loan. http://www.freddiemac.com/singlefamily/preventfraud/flipping.html.
  • Securities Fraud: Some con artists persuade trusting persons to invest in sham money-making enterprises. The artist promises a certain percentage of the profit in the company. What really happens is the con artist uses the investor’s money to pay for the artist’s own personal expenses. The investor loses everything. http://www.freddiemac.com/singlefamily/preventfraud/investment_property.html.
  • Ponzi Schemes: Other operators pretend to be investment experts. Under the cover of impressive-sounding financial corporations and LLCs, the con artists promise unsuspecting victims rates of return that are generally higher than legitimate investments. Based on those false promises, the operators persuade the victims to put their money into the company. Then, the operators move on to more victims, using money from those later persons to pay so-called profits to earlier investors. Eventually, the entire scheme collapses and investors are left with the losses. http://www.sec.gov/spotlight/secpostmadoffreforms.htm.
  • Fraudulent Conveyance: Sometimes, when a bad actor realizes that a victim may be about to bring a lawsuit, the bad actor will take steps to hide assets from a potential judgment. One common way is with a fraudulent transfer or fraudulent conveyance.       For instance, if a con artist knows that a fraud victim is about to bring a lawsuit, the con artist might transfer a valuable piece of real estate to a family member or some shell corporation. If the transfer is for less than the true value of the property, under some circumstances, the victim bringing the lawsuit can sue for the original fraud and sue to have the fraudulent real estate transfer reversed. That way, if the victim is successful in the original fraud lawsuit, he or she may be able to collect on the fraudulently transferred property. http://codes.ohio.gov/orc/1336.04.
  • Debt/Foreclosure Counseling: Victims who lose their money in one of these schemes sometimes end up facing foreclosure on their houses or large debts that they cannot repay. That is when a new wave of operators may come on the scene. Some such operators offer made-up solutions to foreclosure or debt reduction. Really what the operators are doing is taking the victims’ last dollar in exchange for useless advice.       https://www.supremecourt.ohio.gov/rod/docs/pdf/0/2010/2010-ohio-6257.pdf.
  • Bankruptcy Adversary Proceedings: Sometimes bad actors themselves end up in bankruptcy. The legitimate purpose of bankruptcy is to eliminate old debts and liabilities and provide that debtor with a fresh start. It is different, however, when a con artist declares bankruptcy. Based on a process called “adversary proceedings,” a victim of fraud can prevent such bad actors from escaping debts and liabilities. http://govinfo.library.unt.edu/nbrc/report/07consum.html.

  • Real Estate Fraud
  • Securities Fraud
  • Ponzi Scheme
  • Fraudulent Conveyance
  • Debt/Foreclosure Counseling
  • Bankruptcy Adversary Proceedings