Another One Bites the Dust, Part 2

So, my first blog posting a few weeks ago was regarding a case where a few Realtors, a builder, and some other people were convicted of fraud involving the purchase of real estate. Here is the follow- up story from the Columbus Dispatch on December 09, 2010. As I said before, I don't take satisfaction when others get punished but I am glad that justice was served here, for the benefit of the public at large and for the real estate community.

Realty agent gets 18 months in fraud case

Thursday, December 9, 2010 02:55 AM

By Kathy Lynn Gray

THE COLUMBUS DISPATCH

A real-estate agent for convicted builder Thomas Parenteau was sent to prison yesterday for helping Parenteau set up fraudulent real-estate deals in Franklin County and lying about it.
U.S. District Judge Michael Watson sentenced Bonnie Helt to 18 months for conspiring to commit bank fraud, then the same amount of time for conspiring to obstruct justice and tamper with witnesses. Watson ordered, however, that the sentences run concurrently.
Helt was indicted in June 2009 along with Parenteau and his accountant, Dennis G. Sartain, for a tax-evasion scheme and a plot to defraud lending institutions of millions of dollars.
Helt, 61, pleaded guilty in January to the bank fraud and obstruction charges.
As part of a plea agreement, she agreed to forfeit $124,544, the amount she earned in commission on the fraudulent deals.
Prosecutors had recommended a sentence of two years and nine months.
"She was one of the last of his (Parenteau's) co-conspirators to take responsibility for her actions and to offer to cooperate," the government's sentencing memorandum states. Greed led her into the conspiracy, it says.
"As the licensed real-estate professional in the transaction, she should have been the one to say 'no' to this conduct," it says.
William A. Settina, Helt's attorney, requested a sentence of nine to 13 months. He argued in court that his client was naive and unsophisticated, and didn't really understand until it was too late that what she was doing was wrong.
"Ms. Helt clearly was Mr. Parenteau's dupe, easily manipulated and too unsure of herself to object or question methods and motives," he said.
Settina said Parenteau used Helt's belief that she had spiritual powers and could talk to the dead to control her behavior.
Settina said Helt lost her home and her license to practice real estate, and has filed for bankruptcy.
Parenteau's sentencing date has not been set.
Sartain was sentenced to 11 years in prison. Co-defendant Todd M. Gongwer, also a real-estate agent, was given two years in prison.
kgray@dispatch.com

Another One Bites the Dust

I've been in real estate for some time now yet it never ceases to amaze me what kind of shenanigans go on in some circles within the industry. Yeah, we've all heard the jokes about Realtors, some that are true, but most Realtors are upstanding individuals, possibly even former Boy Scouts or Brownies.

And then there are the others. The scammers. The shady ones. The opportunists gone wild. Yep, our industry has them. Of course, out of 1,000,000 Realtors nationwide you know that there have to be a few bad apples.

So every few years a handful of people get arrested locally in some type of real estate scheme. I've know OF many of the Realtors that have been arrested and/or convicted but I don't know any of them personally. I haven't transacted business with any of them and I don't have any ties to their co-conspirators. Maybe I stay away from things that just don't feel right, or maybe I'm just lucky.

Greed is usually the driving force behind most of the antics. Of course, greed can be traced to a lot of questionable activity.

There are three things that amaze me about these kinds of stories:

1. The people involved are not petty criminals and the schemes are elaborate and well-thought.
2. The greed is over-the-top. They steal and cheat in order to feed their lives of luxury.
3. They seem to think that they will never get caught but almost almost always do.

There have been several of these "rings" that have been broken up over the years. I had a friend that actually worked for one of the ring-leaders in one of them for a short time. I'm pretty sure that my friend had no idea. Or at least they haven't caught up with him yet. (I haven't seen him in years, he moved out of state)

The reason I wanted to post this is because a recent follow-up to a story about one of these incidents. One of the Realtors involved was recently sentenced to jail. Here is the initial story and the follow-up:

U.S. Justice Department

http://www2.nbc4i.com/news/2010/nov/10/columbus-real-estate-agent-sentenced-mortgage-tax--ar-286656/


This lovely little scam involved two Realtors, a builder, the builder's wife, an accountant, and who knows who else. They were charged with money laundering, tax fraud, wire fraud, and obstruction of justice. Did they get caught? Yes. But in the meantime they defrauded people out of millions of dollars. As a Realtor I am not "happy" that my fellow Realtors are going to prison. I try not to take pleasure in the displeasure of others. However, I am glad that justice was served and people are going to pay. I hope that is a lesson to those "questionable" people in this industry who may be teetering on the edge of bad judgment. Just remember: you likely will get caught.