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     An update to the article I posted Monday.  The fake landlord has been charged with 20 counts of submitting fake warranty claims.  From what I have read and heard, nothing about ripping off the people looking for places to rent.

Article and video below.

Rental rip-offs suspect faces judge, new victim talks
Reported by: Jesse Chavez

WEST PALM BEACH, FL — He’s the suspected ring leader in what authorities call one of the biggest mortgage fraud cases in Palm Beach County history.

Carl Heflin faced a judge on a day when another one of his alleged victims came forward.

"Court is now in session. The honorable judge Ted Boors presiding," said a bailiff.

Heflin, a former West Palm Beach cop, is now on the wrong side of the law.

In court this morning, he faced 30 counts of fraud, burglary and grand theft.

Sheriff’s detectives arrested Heflin yesterday, saying he submitted fake warranty deed forms.

Heflin reportedly claimed he owned 20 homes in the Westgate and Belvedere areas of West Palm Beach.

Julio Elvir learned from us that Heflin claimed to own and live in a house on 2328 Beech Road.

Elvir and the bank are the actual owners.

"Oh! I’m surprised because I never expected something like this," said Elvir. "I thought the bank had already taken possession of the property. But, last July, I went there and noticed two men living there."

Two weeks ago, we caught the suspected scammers, Heflin’s associates, on camera, trying to rent a home they did not own.

It’s located on Wabasso and Oswego.

"I’m the landlord," said one of the men who did not give his name.

"We’re the property managers," said a female associate. "

"Why are you asking me questions?" ask the man.

"Because I’m a reporter," said NewsChannel 5’s Jesse Chavez. "That’s what I do for a living."

One of the associates is George Chambers.

He claimed to be renting Elvir’s house from Heflin since last July.

You can hear dogs barking inside, even though it’s supposed to be empty.

"It’s the first time this has happened to me," said Elvir. "I’m happy to hear that he has been captured. What he was doing was wrong."

A neighbor says a woman, possibly Heflin’s wife, still lives in the home… at least for the time being.

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     Interesting and timely.  That’s all I can say about this news article from WPTV in West Palm Beach Florida.  In my article last week I spoke of landlord and tenant scams.  Here is an apparent scam where 30 people were bilked by a fake landlord.  The alleged fake landlord is a former police officer.

     I’m not sure of the details of each scam but I am sure there were red flags that would have tipped off the potential tenants of what was happening. 

     Strange part is, he is being charged with submitting fake warranty claims on the properties.  I’ll bet if he just stuck to ripping off people he would have been in "business" much longer.

Article and video below.

Fake landlord suspected of scamming 30 renters
Reported by: Jesse Chavez

WEST PALM BEACH, FL — NewsChannel 5 cameras rolled when a would-be tenant confronted her alleged scammers.

Now, the suspected mastermind of a huge rental rip-off is behind bars.

The former officer is now facing 30 criminal charges.

NewsChannel 5’s Jesse Chavez was the first reporter to investigate what authorities now call one of the largest mortgage fraud schemes in Palm Beach County history.

"Who owns this property right here?" asked multi-media journalist Jesse Chavez.

"Who are you?" asked a man who claimed to be a homeowner.

"It don’t make no difference," said an associate.

"How about we just call the sheriff’s department and I’m telling you, get that camera out of my face," said another man who was confronted by us.

Our cameras were rolling two weeks ago, when a group agreed to meet a woman at a home on Wabasso and Oswego.

She had offered to give them $800 to rent it.

"Are you really the landlord then?" asked multi-media journalist Jesse Chavez.

"I own this property," said one man.

"No, we’re property managers," said the woman.

"No, I own it," replied the man. "I could do what I choose to do with it."

It turns out, the group works for former West Palm Beach police officer, Carl Heflin.

None of them own the house in question or any others involved in the alleged scheme.

Heflin was arrested this morning and charged with submitting 20 fake warranty deed forms claiming he owned homes in the Westgate and Belvedere areas of West Palm Beach.

"All the properties are in some sort of foreclosure," said Detective Michael Antinoro of the Palm Beach County Sheriff’s Office. "Some of the people are still trying to work it out to pay the payments and some of people just walked away from the property. They’re still technically owned by the person."

Leslie Walker is one of the renters looking for justice.

After paying rent, she even moved into this home before the real owner called the sheriff’s office and had her removed.

"It’s not right, what he’s done," said alleged victim Leslie Walker. "He’s hurt a lot of people and he doesn’t care. He didn’t care what he did."

Walker says she’s now homeless, broke and embarrassed about what happened.

"I’m snake bitten by it, the whole thing. Shocked, angry, victimized is what I am," said Walker.

Heflin is charged with 30 counts of fraud, burglary and grand theft.

Detectives have not charge his associates, but that may change in light of what we caught on camera.

"Listen carefully, back the hell up with your cameras and move on," said the man who claimed to own the house.

"Well if you’ve got nothing to hide, then what’s the problem?" replied multi-media journalist Jesse Chavez.

"This is mine and if you don’t like it, that’s too bad," said the man.

Detectives say the investigation is not complete and others may be charged in the future.

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While I am a landlord, I am a citizen and see both sides of the equation here.  With the economy in a tailspin we have set the stage for scams to be rampant.  The increase in foreclosures has forced both homeowners and tenants out into the street.  Most appear with a sense of urgency and will need a place fast.  This urgency can cause people to cut corners or to rush through things and not pay attention to the details.  This is a scam artist’s dream.  They can prey on the urgency and need to bilk people out of their hard earned, and much needed, money.

I’ve compiled a list of some scams, both landlord and tenant scams, for us all to keep an eye on.

Non-Owner Scam:
Non-owner showing a property.  These guys got the keys to a place one way or anotehr and are looking to rent it out.  They will rent the same place out to multiple people and collect security deposits, first and last months rents from all the "tenants".  this usually ends with no one’s lease being valid and everyone out their money.

This can be accomplished a couple ways.

• Renting with the intent of renting to others. This scam works just how it sounds. A scam artist rents a property so they can show it to other prospective renters. They will collect first and last month’s rent, security deposits and any fees or charges they can squeeze out of their victims before skipping town with the loot. There have been reports of a single property being leased or rented to dozens of people before the crook vanished with their money.
• Renting on behalf of the owner. This scam is similar to the previous one but there’s one major difference: the scam artist claims to be helping someone else rent the property. They might be sick, or overseas, or just too busy to do it themselves for whatever reason. Once the scammer collects first, last, deposits and fees they skip town. The renter then discovers the home wasn’t for rent. The owners or renters may have been away for business or pleasure, or it’s a vacation home, or it could be a foreclosed property. Either way you’re out the money if you fall for it.
• Let and run scam.  In this scam the perpetrator poses as someone interested in renting a property. they will come and view the property once with the owner or manager.  they will then stop by and ask to see the place again, usually trying to get the manager or owner to agree to allow them to view the place alone or very quickly.  Once hey get the key from the owner they will have a copy made and return it.  If the landlord checks out the property everything seems fine.  The "prospective tenant" will then perform one of the above scams.

In these scams, there are really two victims.  First, the landlord now has squatters in their property and, second, the tenants have an illegal tenancy and will face eviction.

Ad Copying:
Here a scammer will copy a Craigslist ad or other rental ad exactly.  They will then post this ad, many times pictures and all, and just change the rent amount and contact information.  Here everything looks good.  If you drive by the property you may even see a "For Rent" sign in front.  Neighbors will know it is for rent, etc.  This scam plays on the "too good to be true" emotion.  If all properties are renting for around $900 and the one you are looking at is great and also $700, something is wrong.  This is most likely the start to one of the above mentioned scams.

Identity Theft:
In today’s online world it may seem Ok to handle things electronically.  Maybe even an application to rent a property.  Remember folks, you are giving out your personal information here.  Think identity theft.  Some scammers aren’t necessarily looking to rip you off now.  Some may just want your personal information.  These people will most likely try to keep everything over the phone or the Internet.  They will try to get you to fill out an application and give them personal information.  Here they are mainly looking to steal your identity.  You may not even realize you were scammed until it is too late.  Follow some good advice.  Never give out your personal information over the phone…or the Internet.

Nigerian type Scams:
This tried and true scam has now made it’s way into the hearts of all areas of business.  This scam preys to both tenants and landlords.  There are two main variants for each.

• With landlords it is generally a tenant coming into the country.  The prospective tenant will send a cashier’s check to you.  "Accidentally" they will have sent too much and they want you to wire them the difference back, keeping a little bit for your won trouble of course.  Once you wire the money to them they will have it and you will find out the check has bounced.  Remember, it can take a couple weeks before the bank knows that the check has bounced.  Once it does they will come after you for the money.  Either way, you will be out the money you wired to them.
• For tenants, it is different.  It is a play on the Ad Copying Scam above.  Generally you will never meet this person but they have a great place for rent.  They will try to conduct all business over the phone and via the Internet.  Once they have your money they will disappear. 

Things to watch out for:

• If it is too good to be true run, don’t walk.
• Cash only up front
• Overpayment then asking for a refund
• Offering you something that doesn’t pass the smell test, like the “homeboy hookup” in the video below.

Safe practices:

• Deal locally with people you can meet in person.
• Avoid deals involving shipping or escrow services, and be wary of a transaction “guarantee.”
• Never give out your financial information and definitely do not wire funds.
• Ask plenty of "qualifying" questions.
• Verify owners of property at the tax board.
• Ask the landlord if you can see their ID.
• If a property management company is managing the condo, home or community, call them and ask whether the person you’re dealing with actually owns the property.
• Considering how many homes are being foreclosed, don’t be afraid to ask if the landlord is current on their mortgage payments.
• Ask potential tenants for references and follow up by checking them.
• Change the locks frequently if you rent the property often. If your previous tenants kept a copy of the keys, they have access to the home!
• Verify your tenant’s employment by contacting their employer.
• Run a credit check on potential tenants before renting to them.
• Don’t let a tenant pay more than you asked for then demand a refund. If you give it to them, you’re out the money.

Sorry for the long post.  It ended up being a lot of information to put here. 

Check out the video below.  The original story is here: 

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    Well, I’ve gotten some additional information about the companies that are doing business.  While it seems like one heck of a coincidence, It appears that there is an  Ann Tate doing business in Toledo as RidgeCrest Ventures who purchases homes for sale in full cash deals.  Additionally there is an Ann Tate doing business out of Florida as RidgeCrest Ventures who tried to purchase properties using a lease-purchase and then doing rent to own on the properties with tenants, as was done by Pearce Enterprises, In Faith Properties, KACW Investments and WH Investments.  I’ll admit, in today’s world where you can be in one location (say maybe Florida) with a telephone number from another location (say maybe Toledo) I am still skeptical.  I have, through a separate person, asked this woman to contact me.  Hopefully she will so I can try and get some more information on this.

    I’ve also received the FAQ’s that Eric and Joanne Pearce of Chi Rho Investments send out with their offers.  This is suprisingly similar yet strangely different from the FAQ that Ann Tate and Matt Pearce of RidgeCrest Ventures send out with their offers.  The FAQ’s are very long so I’ve just included the last entry which gives descriptions of the two companies and their principals.  I’ve included it as it was forwarded to me because I am unsure if the formatting of this is the tru way it was sent out.  If so, they need to learn proper typing skills.  As always, you be the judge of what you read here.

Q. Who is Ridgecrest  Ventures
A.  Ridgecrest Ventures  is a subordinate company of Pearce Enterprises Inc.  
Ridgecrest  ventures consists of Matt Pearce, the owner of the company, Anne  
Tate, partner, along with six other employees. Pearce Enterprises  Inc. was
started in Oklahoma in 2002. The company mostly dealt in commercial  real
estate and development at the time, but since then has spread their wings  and
handles every kind of real estate transaction . In 2001 Matt Pearce  graduated
from Oklahoma State University respectively, with accounting and  business
degrees.  And moved the company to Florida.  Anne Tate  graduated from Florida
State, with business and Interior  Design/Architecture.  Anne Tate decided to join
Matt Pearce and  in their first year brought in over 4 million in sales for
the  company with 1.3 million of the sales in lease purchases. In 2003 they   
expanded the business, and they closed their first year with 7.5 million in  
sales with 6.3 million of the sales toward lease purchases.  They closed  2005
with over 9.6 million in sales and 7.9 million toward lease  purchases.  In 2006
they closed the year out with 8.1 million in sales  and 5.3 million toward
lease  purchases.
It is our goal to ensure that the process of selling  your home is a smooth
and easy one for you. We strive for a win-win-win  situation in all of our
lease option deals. You, as the seller of the house,  win by receiving the
assurance of knowing that while the house is being sold,  all of the expenses are
taken care of, and the house is maintained. Our  tenant/buyer wins by getting to
own a home in a shorter amount of time than it  would take them if they were
trying to buy conventionally, as well as being  able to immediately occupy
their new home, while qualifying for a loan. We win  by profiting from the sale of
the home, as well as gaining two more satisfied  customers. The reason that
we are in business is, of course, to make a profit,  as well as use our
expertise in real estate transactions to assist home buyers  and sellers in making
the sale or purchase of their home an easy  one.

Q. Who is Chi Rho Investments
A.  Chi Rho Investments  is a subordinate company of Pearce Enterprises Inc.  
Chi  Rho Investments consists of Eric & Joanne Pearce, the owners  of the
company with six other employees. Pearce Enterprises Inc. was started  by Bill
Pearce in Round Rock, TX, in 1986. The company mostly dealt in real  estate
development at the time, but since then has spread their wings and  handles every
kind of real estate transaction . In 2001 Eric  & Joanne Pearce graduated from
Oklahoma State University and Oklahoma  University respectively, with
accounting and business degrees. They decided to  join the family business and in
their first year brought in over 4  million in sales for the company. In 2003
they moved to Orlando, FL to  expand the business, and they closed their first
year with 7.5 million in sales  and 94 lease option/purchase contracts.  They
closed 2004 with 6.2 million  in sales and closed on 178 lease option/purchase
contracts. They closed 2005  with over 9.6 million in sales and 169 lease
option/purchase contracts.   And in 2006 they topped 15 million and 215 lease
option/purchase  contracts.
It is our goal to ensure that the process of selling your home  is a smooth
and easy one for you. We strive for a win-win-win situation in all  of our
lease option deals. You, as the seller of the house, win by receiving the  
assurance of knowing that while the house is being sold, all of the expenses are  
taken care of, and the house is maintained. Our tenant/buyer wins by getting to  
own a home in a shorter amount of time than it would take them if they were  
trying to buy conventionally, as well as being able to immediately occupy their
 new home, while qualifying for a loan. We win by profiting from the sale of
the  home, as well as gaining two more satisfied customers. The reason that we
are in  business is, of course, to make a profit, as well as use our
expertise in real  estate transactions to assist home buyers and sellers in making the
sale or  purchase of their home an easy one.

    Last week I received the email that is below.  It's about my "Honest Company or Scammers? You decide" post.  I've reprinted the letter, with permission, removing the names protect the writer's identity.

I was so glad to read this blog on Joanne Pearce. I have been searching for info of any kind for months. I have a house for sale and it has been on the market for over a year. I received an offer from Chi Rho Investments in March that was a great offer. I spoke with 2 different people. Eric and Joanne Pearce. The said they originally were Pearce Enterprises. I was trying to get them to give me any info that I could check their validity. They said they were not able to give out that info but they were on public record in the state of Florida so I could find out that way. I spoke with the bbb and could find nothing. I spoke with the chamber of commerce. nothing. I spoke with the board of realtors. No one had heard of this company. When I questioned them and said I would love to do business with them if I could find just one piece of positive evidence about the people or company they withdrew the offer. I was glad. 2 weeks ago I was contacted again about the same house which is still for sale. This time it was Matthew Pearce and Ann Tate from RidgeCrest Ventures . A Florida Company. The offer was very good and I have until Sept 7 to let them know if I want to move on to the next step. I received a second notice yesterday from Ridgecrest wanting to know if I had any questions about the offer. This time it was signed by Joann Pearce. How in the world can we get this company investigated? I have some computer knowledge but not enough for this. Thanks for your help.

    Here are a couple of the Red Flags that I see in this offer.

1. Anytime you get an unsolicited offer from an individual or company your antenna should go up.  Not because it could be a scam, but because you know you are dealing with professionals.  If you are dealing with professionals, you need a professional on your side too.  Also in today's worldwide market place where we have scammers sending messages out looking for people to nibble at the hook, we need to be especially diligent to make sure we are dealing with honest and real companies/people.
2. The company changed their name.  Most companies try to hold on to their name for dear life.  It's their business identity, it's branding, it's just smart business….unless you are trying to hide something.  Also, if you are forced to change your name, you usually try to get something as close to the original as possible unless you have huge amounts of money at your disposal for a marketing campaign to announce to the world your new identity.  If I were Pearce Investments and I needed to change my name, I would not have chosen Chi Rho Investments.  I would have gone with Pearce Enterprises, The Pearce Group, or just Pearce, Inc., something that keep the identity, and thus the reputation of the company, around.  It appears that Eric Pearce and Joanne Pearce, formerly of KACW Investments, WH Investments, In Faith Properties, and Pearce Investments, does not follow the same thought process I do.
3. Any company that tells you they can't give you their company information is trying to hide something, or they don't have a company.  I'm not sure which it is,  but I wouldn't deal with them.  Companies have to file paperwork to be legitimate companies.  There are business licenses, professional licenses, tax records, etc.  Asking to see copies of licenses is not too much to ask of a company that wants to enter into a business relationship with you.
4. They pulled out when pressed for company info.  When you have a company and are doing business with people sight unseen, your company is your lifeblood.  You should have a vast amount of independent information available for people to access.  How else would they be able to know that Chi Rho Investments or RidgeCrest Ventures is a true, respected, honest, legitimate company?  Following that train of thought how will they know what to expect from Matthew Pearce, Joanne Pearce, Eric Pearce or Ann Tate?  When the company refused to give me the information I would be glad they walked away.  I would also believe completely that I just saved myself from a headache.
5. The last set of red flags I will lump together.  Having had the company pull out in the manner they did would keep me on guard.  Being contacted by another company soon after having the first one pulled out would have the cynic in me out in full force.  When one of the principals has the same last name as the previous company my sonar would begin blipping like I was running straight into the Rock of Gibraltar.  It could be coincidence but the cynic in me wouldn't allow my brain to accept it as such.  I would think something is up.  Lastly, after dealing with Matthew Pearce and Ann Tate during the negotiations receiving an offer letter from Joanne Pearce would send me through the roof.  Do you think that Joann Pearce, Helen Pearce, Helen Joanne Pearce…you get the idea and Ann Tate are the same person?

    Could it be possible that Matthew Pearce, formerly of KACW Investments, WH Investments, In Faith Properties, and Pearce Investments, has begun operating under a different name also?  Could he be Eric Pearce or has another Pearce has decided to get into the family business?  From the letter above, it appears that there is now an Eric Pearce working with Joanne Pearce at Chi Rho Investments.  Could this be the same Joanne Pearce that was working at KACW Investments, WH Investments, In Faith Properties, and Pearce Investments?  I know the Real Estate Market is bad, but they were switching companies around like this at the height of the Real Estate Boom!  If the people and the companies are truly separate then Joanne Pearce is moonlighting over at RidgeCrest Ventures along with Matthew Pearce and Ann Tate.  I'm still waiting for Helen Joanne Pearce to get involved in all this.  That cynic in me is screaming.  I don't know if I should believe him or not but he thinks it's possible that KACW Investments, WH Investments, In Faith Properties may have reincarnated themselves yet again as Chi Rho Investments and RidgeCrest Ventures.

    As a final note, I'd like to talk about doing your due diligence.  When someone has a property for sale for an extended period of time it can seem like a Godsend when an offer finally does come in on the property.  Especially in this market, the temptation to jump at an offer will make many people forget to do their due diligence on the person or company making the offer.  While everyone should be on the guard in all real estate dealings, ones like the offer above should send red flags.  Luckily, the person involved knew how to handle everything right from the start by asking for company information and going to check them out.  They may have saved themselves a huge headache by taking a little bit of time to investigate the company "Chi Rho Investments" and subsequently "RidgeCrest Ventures".

    I'm continuing to gather information on these companies and people.  I've actually got a couple leads that I am following.  I'll keep everyone posted as I get more information.

web log for us – those that know to do their due diligence on all possible business partners.