California Real Estate Fraud Report

You have just entered the #1 private-sector resource on the Internet for real estate fraud. In doing so, you have voluntarily left the dimension of the conventional real estate world and crossed over to the Dark Side, the realm where greed, dishonesty and evil are the order of the day. Sign up for a free subscription to this comprehensive news resource and receive weekly, timely news reports about real estate fraud, mortgage fraud, short sale fraud, REO fraud, title fraud, loan fraud, appraisal fraud, affinity fraud, loan modification scams, securities fraud and elder financial fraud.


Attorneys and Others Arrested in Fresno Adverse Possession Scheme

According to a press release by the California Department of Justice, five individuals were arrested in mid-January and charged with allegedly running a statewide housing scheme by using adverse possession laws to fraudulently take control of at least 23 homes in nine counties,  Fresno, Kern, Los Angeles, Madera, Merced, Santa Barbara, San Mateo, Sonoma and Tulare.The

Sandra Elaine Barton, 30, Christopher Spencer Barton, 31, Daniel Paul Vedenoff, 29, Sheldon W. Feigel, 50, and Craig Merrill Mortensen, 60, all of Fresno, were arrested and charged with 288 felony counts including perjury, filing false court records and preparing false evidence. A sixth defendant, Cambria Lisa Barton, 21, turned herself in to authorities last week and entered a general time waiver.

Mortensen and Feigel are attorneys. According to the filing by the AG’s office, the non-attorneys were alleged to have identified abandoned homes and then filed for adverse possession with the courts in order to obtain title, after which the property would be sold or rented.

Under California law (Code of Civil Procedure 325), an individual can claim adverse possession of real property if he or she has occupied or claimed it continuously for at least five years and paid property taxes for that period of time, among other requirements.

The scheme unraveled when Nancy Zelepsky, the actual owner of a home in Santa Barbara County, contacted a title company to see if there were any liens against her property before applying for a home equity loan in 2010. The title company informed her that Sandra Barton was listed as the deed holder that same year and that the documents had been filed by Craig Mortensen.

Zelepsky received assistance from the Legal Aid Foundation of Santa Barbara County and her property was restored to her after the court found that Sandra Barton’s claim was fraudulent. The court then contacted the California State Bar regarding Craig Mortensen and the California Attorney General’s office opened its own investigation in June 2011.

If found guilty, the defendants all face long prison sentences.

The Attorney General’s Office was assisted in this case by the State Bar of California, Santa Barbara County District Attorney’s Office, Kern County Sheriff’s Department, Clovis Police Department and Fresno Police Department.

Following his arrest, Sheldon Feigel’s attorney held a press conference denying the charges filed against his client. He has since filed a lawsuit against the State of California seeking $1 million in damages for unreasonable search and seizure, being denied access to his attorney and for emotional distress inflicted on his children.

Read a copy of the felony complaint by clicking here.

© Copyright 2007-2017 Monique Bryher

Legal Disclaimer.

The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

ALL RIGHTS RESERVED. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the author, except for the inclusion of BRIEF QUOTATIONS in a review.


Copy Protected by Chetan's WP-Copyprotect.