Flagler Beach Real Estate Agent Linda Kasper Charged in $9M Real Estate Fraud
The FDLE investigation was triggered in December 2007 when GoToby.com provided details of 18 highly suspicious Palm Coast real estate transactions to the Florida Office of Financial Regulation.
Palm Coast, FL – March 15, 2011 – A three year mortgage fraud investigation culminated yesterday with the arrest of well known local Flagler County real estate agent Linda Kasper. The Florida Department of Law Enforcement investigation was triggered in December 2007 when real estate news website GoToby.com provided details of 18 suspicious Palm Coast real estate transactions to the Florida Office of Financial Regulation. The scheme, which included 23 transactions netted $9 million in losses.
Shortly after I began publishing GoToby.com, I heard a buzz about potential fraudulent activity in the Palm Coast/Flagler County real estate market. Examination of MLS sales data and public records at the time uncovered 18 home sales that closely fit a pattern of deception. In each sale:
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The contracted sale price was several thousand dollars above the current listing price.
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The MLS listing price was raised to a new listing price equal to or slightly exceeding the contract price (in order to avoid drawing attention to the transaction after it was closed).
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Using "straw buyers" the transactions were financed, typically for 100% of the purchase price. (The charging affidavit defendant list includes mortgage brokers and appraisers.)
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Linda Kasper was listed as the buyer’s agent on 17 of the 18 transactions. At the time, Kasper was an agent associated with Tavolacci Realty. The Florida Department of Professional Regulation still list Kasper as an active licensee with Tavolacci Realty.
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All the mortgages resulted in foreclosure proceedings commencing soon after the transactions closed.
The pattern reminded me of a phone call I had received earlier when I had one of my own properties for sale. The caller represented himself as a real estate agent with a client willing to pay my "asking" price. He said that the client wanted to include the cost of anticipated improvements in the mortgage so the contract would be written for an amount in excess of the contracted price. I would still receive my asking price. I was on the golf course at the time with no way of taking good notes and the deal smelled fishy so I blew the caller off. I don’t remember his name.
I was tipped off in June 2007 by a fellow Realtor who had noticed suspicious transactions while doing a "comparable analysis." Realtors guide their clients by comparing a subject house with the selling prices of nearby comparable houses. The suspicious transactions stood out as having sold for amounts well above current market values.
Once the pattern was known, it was simply a matter of searching the MLS records for transactions where the "sale" price exceeded the "previous" listing price. For those transactions, I looked for a listing price change (increase) close to the contract date. The 18 suspicious transactions stood out clearly. Most changes were shortly after the contract date.
On June 26, 2007 I contacted the Jacksonville office of the FBI to report my discovery. An agent informed me that their focus was on terrorism at the time. Mortgage fraud was not on top of their list. He suggested the Secret Service or state agencies. At the time, none of the transactions had gone into foreclosure according to public records. "No harm, no foul," he said. So I sat back and watched for foreclosures. I didn’t have to wait long.
I called the State of Florida Mortgage Fraud hot line where I was referred to the Florida Office of Financial Regulation. I met with Elizabeth Peters, Financial Examiner for the Office of Financial Regulation’s Jacksonville field office December 5, 2007 and presented my documentation package. I was told an investigation would commence soon; that I would be contacted by an investigator.
After waiting four months, I became impatient and contacted State Assemblyman Bill Proctor’s office for assistance. I heard from Office of Financial Regulation the next day. My file had apparently been "misplaced." I provided a duplicate set of documents and an investigation was begun in April 2008. The investigation was ultimately turned over to FDLE. FDLE agent Molly Akins developed most of the additional evidence contained in the charging affidavit.
GoToby.com provided the detailed sales information for the following 18 Palm Coast homes:
|
Address |
Contract Date |
Sale Price |
Listing Price |
Previous Listing Price |
Price Change Date |
|
10 Pier Ln |
1/11/07 |
$250,000 |
$300,000 |
$196,900 |
1/27/07 |
|
32 Palmyra Lane |
8/1/06 |
$290,000 |
$299,900 |
$220,900 |
8/3/06 |
|
11 Port Lane |
4/29/06 |
$290,000 |
$299,900 |
$249,900 |
6/2/06 |
|
17 Rymshaw Drive |
7/31/06 |
$290,000 |
$300,000 |
$215,000 |
8/1/06 |
|
42 Pine Hurst Lane |
7/25/06 |
$290,900 |
$295,000 |
$219,000 |
7/27/06 |
|
29 Prince Eric Lane |
9/18/06 |
$290,000 |
$299,900 |
$229,900 |
9/20/06 |
|
36 Pittwick Lane |
9/16/06 |
$290,000 |
$295,000 |
$230,000 |
9/18/06 |
|
25 Porcupine Drive |
9/4/06 |
$295,000 |
$305,000 |
$249,900 |
9/1/06 |
|
27 Buffalo Grove |
6/16/06 |
$300,000 |
$300,000 |
$259,000 |
6/22/06 |
|
46 Pickering Drive |
8/2/06 |
$300,000 |
$310,000 |
$249,900 |
8/4/06 |
|
35 Riverside Lane |
9/6/06 |
$300,000 |
$305,000 |
$224,900 |
9/5/06 |
|
154 London Drive |
9/1/06 |
$330,000 |
$330,000 |
$239,900 |
9/1/06 |
|
22 Seashark Path |
9/19/06 |
$330,000 |
$349,900 |
$249,900 |
9/19/06 |
|
27 Piermount Lane |
7/17/06 |
$335,000 |
$340,000 |
$267,900 |
7/17/06 |
|
18 Putter Dr |
7/19/06 |
$335,000 |
$335,000 |
$262,000 |
7/21/06 |
|
27 Roxanne Lane |
9/1/06 |
$335,000 |
$340,000 |
$245,000 |
9/1/06 |
|
38 Russo Drive |
8/13/06 |
$340,000 |
$340,000 |
$364,900 |
10/5/06 |
|
96 Bird of Paradise |
9/9/06 |
$340,000 |
$345,000 |
$299,900 |
9/12/06 |
Source: Flagler County MLS
The investigation, named "Operation Fast Cash Kickback," resulting in Kasper’s arrest was announced jointly by the Florida Department of Law Enforcement (FDLE), the Florida Office of Financial Regulation, the Office of the Attorney General’s Office of Statewide Prosecution, and the Flagler County Sheriff’s Office yesterday. The scheme spanned Flagler, Volusia and Lake Counties, involved 23 homes (including the 18 provided by this website) and resulted in more than $9 million in losses. All 15 individuals are charged with one count of criminal racketeering and one count of conspiracy to commit racketeering, both first-degree felonies.
The announcement states; "The two-year investigation, named “Operation Fast Cash Kickback,” focused on a complex scheme involving home buyers, realtors, appraisers, and mortgage brokers. Investigators allege the charged individuals artificially raised home prices, falsified appraisals, and pocketed large amounts of cash by facilitating a series of fraudulent home sales. The scam involved using “straw buyers” to purchase a home. The straw buyer’s realtor then asked the seller to raise the price of the home in order for the difference to be provided back to the straw buyer for alleged “renovations.” The appraiser would then inflate the price of the home to meet the contract sales price. At closing, a designated third party individual or shell company received the proceeds for “renovations,” which ranged from $25,000 to $320,000 for each sale. The third party recipient then returned a majority of the funds back to the straw buyer via check or wire transfer. No renovations were ever conducted on the homes and each of the properties foreclosed a short time after the sale. The estimated loss to date is approximately $9 million."
The following individuals were arrested:
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Jonathan Bravo, 33, of Miami
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Cristian Diaz, 34, of Doral
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Jamie De La Roche, 42, of Lake Worth
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Carlos Esteller, 43, of Miami
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Edith Esteller, 51, of Miami
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Patricia De La Espiella, 49, of Miramar
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Carmen Ganem, 30, of Miami
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Claudia Ganem, 36, of Miami
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Argenis Lugo, 33, of Doral
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Adrian Pena, 34, of Miami
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Linda Kasper, 64, of Flagler Beach
The following individuals are still being sought by authorities. Individuals with information about their location should contact their local authorities.
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Nieves Alvarez, 50, of Miami
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Nelson Pinzon, 48, of Delray Beach
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Cruz Urbano, 44, of Hialeah
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Randy Ly, 45, Seattle Wash.
$9M Real Estate Fraud
Who was the appraiser that provided over valued appraisal reports to the lender(s)?
"Integrity is doing the right thing even
And nobody else at Tavolacci had any knowledge of this of course. Or at least that’s what their lawyer told me after a few martinis at the club.
Bravo Toby
Well done Toby. So glad some of you hard work and sleuth like abilities got some of these crooks what they deserve. Are you planning to post the arrest affidavit? That would make for interesting reading.
Name recognization? Coincidence?
Is that the same Randy Ly, formly of Palm Coast, that bought several homes.. with huge mortgages etc. that are now foreclosed… including 2 different million dollar plus homes on Island Estates?
Brought to our knees
This is what has brought our country to it’s knees. This has given our county a black eye along with the rest of what is reported through out our country. You just get to some form of recovery in our houseing industry and get hit again. This type of unethical actions and selfishness has caused so many honest Realtors, Mortgage Brokers and Title Companies as well as Appraisal Companies to go under. Your honest mom and pop shops working for an honest wage and giving it their all to the community to serve it’s patrons well have suffered. Protecting them with good guildence still leaves them blemished with others actions. The suffering of the victems of these crimes are shameful. This is unacceptable. When does the greed stop and the recovery begin? I love my community and want to see it thriving not diving.
Fraud
I heard from friends of his kids Randy Ly fled to Vietnam and left his family in Seattle…way to go loser
Thanks for you hard work
I am so pleased that you pushed for justice even when others would not take action at first. The real estate market has enough problems with normal pressures let alone fraud.
Bill
How many more to Follow Linda
Glad to see that thru your hard efforts in pushing to get justice in this case we now have some results. the real question is how many more "agents" "brokers" and others will be investigated for similar schemes and other illegal Real Estate practices over the years here in Palm Coast and Flagler. Graet Job on this one. How many more to come?
http:www.Real386.com
Randy Tuan Ly
Randy Tuan Ly is an honorable, honest young man who did not flee to Vietnam. He and his family moved there for business reasons. In Florida he had every intention to fix up the houses he purchased as he had done with previous houses. Like many of us, when the market tanked, he was caught short. When the truth is known, the guilty ones in this scheme will be further exposed. I have known Randy since he was in high school. Anyone one who blames him for this fiasco is only trying to project blame outward and cover their own tracks. The truth will come out in this legal process and the guilty will be punished. Randy is not one of them.
Fight the scammers
Good job Toby. I’m sure there is more like her in Palm Coast.
The greedy of this people helped the economy to stagnate.
The Realtor who "helped" my dad buy his home was a real scammer. She took advantage of my dad, because he never bought a home before. I wish I could find something to void her license, she still doing damage here in Palm Coast. Take care of yourself and keep the good work.
BS
What a bunch of fucking bullshit!! Doesnt law enforcement have a better way to spend their time????????????????????
BS
I have known Linda Kasper all of my life!! She is the most honest person I know!! She would NEVER do this shit that she was accussed of!!!! She is someone’s SCAPEGOAT…probably someone who doesnt want to gat off their ass and do their job!!!!!!!!!!!!! What PROPAGANDA!!!!!!
PIG kevin
Hey you f——PIG! How DARE YOU try to degrade my friend!!!
I heard about your comment, but fortunately for you, have not been able to view it!!
ITS ON MOTHERFUCKER!!! Come to CA to see!!!!!!!
Scheme
I know Randy Ly is a real estate investor was trying to fix up some homes and flip them but doubt he was involved in fraud.
Who were the players
The Charging Affidavit lists Madrigale Appraisals as the company that appraised most of the homes. Loretta Madrigale is deceased, assumed to have committed suicide in August 2007. A Mortgage Solutions USA originated 15 mortgages with Jonathan Bravo as originator. Royal Title & Escrow was the closing agent.
Reply to Lin
Yes, the same Randy Ly
Anonymous Tip Line
IF YOU KNOW THE WHEREABOUTS OF RANDY LY CONTACT THE FBI OR US MARSHAL SERVICE. 407-875.9976