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In September 2015, a Tucson, Arizona resident contacted local law enforcement and the FBI to report the theft of their closing funds in the amount of $189,500. The would–be home buyer had wired the closing funds to a bank account in the name of a logistics services company after receiving an email indicating the bank account information for the title company closing the transaction had changed. The home buyer believed the email came directly from the title company representative and sent the funds via wire transfer to the account noted therein.

The following day, while signing documents at the title company the settlement agent asked the home buyer for the wire transfer to complete the closing. The home buyer panicked when they found out the funds had been sent to a fraudster's account and not to the title company. They immediately reported the incident to the FBI.

During the FBI's investigation of the crime, another Tucson home buyer fell victim to the same crime and sent $202,000 to the account of that same logistics company. The second home buyer also contacted local authorities and the FBI.

The FBI discovered that the account to which the funds were directed was actually in the name of a shell company controlled by a person by the name of Alysia Franco, who was also known as Martha Orozco.

As a result of their investigation, the Arizona Attorney General's office was contacted, and they moved swiftly to seize the bank account containing the wire transfers. Luckily, the funds were still in the account and the bank returned the funds to both victims so they could complete their home purchases.

Then, law enforcement took action against Franco. They had enough evidence to take the case to trial. A state grand jury indicted Franco for involvement in a scheme to steal closing funds during real estate purchase transactions.

The indictment alleged Franco committed two counts of theft, one count of money laundering in the second degree, one count of illegally conducting an enterprise and one count of conspiracy.

On November 11, 2019, the Arizona Attorney General announced Franco pleaded guilty to participating in a real estate fraud scheme. She pleaded guilty to one count of attempted money laundering in the second degree. She faces up to 3.75 years in prison.

 

 
 

MORAL OF THE STORY

We often hear horror stories of home buyers being victimized by the diverted wire transfer scam, but rarely do we hear follow–up stories of the fraudsters being caught and brought to justice. It is encouraging to know local law enforcement, the FBI and the offices of attorneys general in all 50 states are working in harmony to combat the evergrowing crime. It is stories like this one that will serve as a future deterrent to criminals.

 
 

 

 
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