A new form of real estate fraud is roaring through the metroplex, literally costing people their homes.
Take the case involving victim Travis Burton of Aledo. In 2019, Burton wanted to sell his house in Burleson.
He got fleeced.
“When we actually filed the sheriff’s report, originally with this, they didn’t even know what to do with it and how to file charges because they said this is civil, this isn’t criminal. We can’t even prosecute the guy for this,” said Burton
Burton found himself in an unbelievable legal vortex by unknowingly signing up with a thief. A self-described investor named Daniel Heskett contacted Burton and seemed willing to partner. Heskett convinced Burton to sign a promissory note. Under terms, Heskett would sell the house and they would divide up the profits.
But Heskett had another plan. According to court records, Heskett used the signature from the promissory note to photoshop onto a deed. Heskett then filed the fresh deed with the Tarrant County clerk. Nobody questioned, what seemed to be, a normal business transaction.
The new deed passed a review by a title company. Heskett was able to sell the house to another buyer who sold the house again.
Burton was no longer the owner of his own home. He had trouble getting police to look at the case because they all said it was a civil matter.
“These guys that commit this title fraud have found a loophole where it’s considered a civil offense,” he said.
Eventually the Tarrant County District Attorneys office did get ahold of it. Dan Heskett pleaded guilty to theft and deception charges. He was sentenced to three years in prison. Ends up...three others had also been defrauded by Heskett and lost their homes. All were in the courtroom for the sentencing hearing
“He had to bring $20,000 deposit for restitution for the four people on the one docket. And they split that up among us for restitution.”
He says it is a far cry from what he is out. Burton says a civil suit over the deal went nowhere, because nobody else could be held liable for Heskett’s actions. Unbelievably, Burton is out of his house.
Prosecutors say this is going on more and more, and you could be in the crosshairs.
Prosecutors explain why it's important to be mindful of records
When homeowner Travis Burton learned he had been scammed out of his house by a crook who was posing as an investor, he went to law enforcement. He found himself in a quagmire. Police agencies were reluctant to take the case.
Burton had signed a promissory note with a crook named Daniel Heskett. The note was clear to Burton: Heskett would market and sell the house and the two would split the profits. But that promissory note would come back to bite Burton in three ways. First, was the note itself.
“A promissory note is exactly what it sounds like,” said Nathan Martin, a Tarrant County Assistant District Attorney who prosecutes major theft cases. “It’s a promise to pay a certain amount. But with as many con artists as there are out there, they may have no intention of paying you on that promissory note.”
Heskett had refused to pay. In fact, he sold Burton’s home before Burton ever knew it.
How?
By using the promissory note to make a copy of Burton’s signature. Then he copied a notary’s stamp and forged both onto a copy of a warranty deed that was found online. Heskett had filed the new deed with the county clerk before Burton knew it had happened. Two buyers later, Burton learned he had lost his home.
He took his case to the sheriff’s office, but Burton was told this was a civil matter because he had signed that promissory note. It took months of calls and letters before Burton could find someone to take the case as a criminal matter.
“It can simultaneously be a criminal matter at the same time,” Martin said. “Those two worlds do overlap from time to time. And when you find somebody like Heskett who has victimized multiple folks, then you can see there is a level of deception that rises to a criminal offense.”
Heskett has nothing on Arnoldo Ortiz of Dallas County. He used a similar method to steal 27 homes from residents before he was caught, prosecuted, and sentenced to prison.
It did not end there.
“Some months or maybe a year later, a new deed came through the system, which he filed from prison,” Dallas County prosecutor Phillip Clark said. “It resulted in another investigation with more properties, and he was sentenced to even more time in prison as a result of that.
So how do you protect yourself? Both Martin and Clark strongly urge all homeowners to use county-sponsored sites called Property Fraud Alert. The links to various counties are listed below. The site tracks and alerts homeowners to any transactions that may affect their property.
Property fraud resources are available here:
Collin County
Dallas County
Denton County
Tarrant County
Scammers use technology to prey on unsuspecting homeowners
The endless apps online are giving home sellers and buyers new avenues in real estate. They are also giving thieves new targets.
“They are getting more sophisticated and we are seeing more of them coming up,” said Matt Troiani, senior counsel and director of legal affairs for the National Realtors Association. “We see it as a part of our role to protect our members, as well as the consumers and clients they represent.”
Thieves like Heskett have used technology to their benefit. Heskett managed to partner with at least four victims in real estate deals. He then used documents to forge signatures onto phony warranty deeds, which were filed with unsuspecting clerks in Tarrant County. Home ownerships were transferred and the properties were sold before the owner knew they had been had.
Prosecutors say Heskett’s case is an example of the ongoing fight with scammers who try to stay one step ahead of the law with their unscrupulous dealings. Realtors, who are fighting to keep clients, are fighting back. Both national and local associations are constantly giving training and bulletins to agents.
“We see a lot of cases of people saying, ‘Oh yeah, you just need to wire this money to a foreign country.’ And we say, 'No, wait a minute,'” past president of the Greater Fort Worth Association of Realtors Shelby Kimball said.
Both Kimball and Troiani say an agent knows the ins and outs of the business and knows to do basic checks of tax records and use reputable title companies that will verify property ownership.
For those who do fall victim to property scammers, a quick response can be critical in getting money back.
“Time is not your friend,” said Phillip Clark, a Dallas County assistant district attorney. “Someone who is trying to move quickly will sell it cheap, take the money and run.”
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