Branson Missouri

Branson Edge

Thursday, April 26, 2007

Southwest Missouri Real Estate Schemes

outhwest Missouri leads state in real estate schemes

Real estate schemes are on the rise in Missouri and particularly in the Springfield-Branson area, according to Secretary of State Robin Carnahan.

Carnahan is warning Missourians to be wary of real estate investments because of a recent increase in complaints to the Missouri Securities Division, according to a news release. The division has 12 open investigations and ongoing administrative actions regarding schemes occurring across the state.

Missouri Commissioner of Securities Matt Kitzi said in the release that the increase in schemes is attributed to the downturn in the housing market and concerns in the subprime lending market.

Complaints have been filed about time shares, mortgages, nonexistent commercial properties and fraudulent real estate investments offered and sold by unregistered individuals.

Scams have included individuals offering fellow church members a fake opportunity to make a fortune in house flipping, a Springfield couple allegedly selling a 50 percent ownership interest in the same property to six different investors and an unregistered individual enticing a Missouri resident to invest more than $250,000 in nonexistent commercial real estate and spending the investment on personal expenses.

"Real estate has been a particularly popular investment in the past several years that attracts many novice investors," Carnahan said in the release. "But with a downturn in the current real estate market, we are beginning to hear more and more about corrupt individuals seeking to cash in by taking advantage of Missouri investors."

Carnahan's warning comes on the heels of the FBI's ongoing investigations into Springfield-area mortgage fraud, which officials also say is on the rise. Alleged schemes have involved disproportionately high list prices in some subdivisions and a surge in foreclosures.

Carnahan's office offers a toll-free hotline for investors and other individuals to file complaints; the number is (800) 721-7996.



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