Agencies Investigate Florida Real Estate Agent’s Deals

The Florida attorney general has opened a criminal investigation into inflated real estate transactions in Pinellas and Hillsborough counties.

A second state agency that oversees real estate professionals is asking appraisers and at least one real estate agent for records connected to the deals, the Tampa Tribune reports.

Attorney General Charlie Crist said the economic crime division, based in Tampa, will look into a possible scam involving 36 sales by Tampa real estate agent Dawn L. Molen.

Reports say some of Molen’s sales had recorded housing prices of an average of $60,000 above the original list price. The unaccounted money - at least $2 million collectively - was paid to companies associated with Molen.

“Others may turn their heads to this kind of activity in a slow Florida housing market, but the attorney general’s office will not,” said Crist, who is a candidate for Florida governor.

Among the Tribune’s findings:

• In two cases, different sets of settlement documents were drawn up. One was sent to the Florida mortgage lender and the other filed with Molen’s broker.
• In one transaction, the broker’s documents show a $120,000 “payoff” going to one of the companies Molen worked with. The lender’s set does not.
• Misrepresenting where money goes on closing statements is against federal and state laws.
• Settlement documents do not disclose the true amount paid to the seller or who received the difference between that and the recorded sales price.
• In all of the sales, the same title company and same buyers agent were used.

Frank Gregoire, head of the Florida Real Estate Appraisal Board, said the Florida Department of Business and Professional Regulation (DBPR) also opened an investigation. The agency regulates appraisers and others who sell real estate. The agency can revoke licenses of industry professionals and issue fines — up to $5,000 per incident — for appraisal professionals.

Thomas Butler, deputy press secretary for the regulatory board, said he can “neither confirm nor deny” whether the agency is investigating.

But two professionals with knowledge of the transactions say the agency asked them Monday to turn over contracts and records.

Molen did not return a message left on her cell phone Monday. Chad Evans and Chris Malcom, who run companies that documents show received money out of the deals, did not return calls Monday. None of the three would answer detailed questions about their possibly-falsified Florida home mortgage transactions during the Tribune’s five-week investigation.

Molen was fired by two real estate brokers who grew suspicious of her deals. A Florida mortgage broker she did loan work for also fired her recently.

Meanwhile, pending deals that Molen was at one time involved in may be on hold indefinitely. Three of the transactions that were supposed to close Monday at a new title company, Linsky and Reiber Real Estate & Title Services in Tampa, have been terminated.

The COO, Terry Hannah, said representatives from the company’s underwriter, Fidelity National, spent the morning combing through records. The company underwriter issued “cease and desist” orders for any transactions involving Molen, Malcom or Evans.