Industry News

California man sentenced for real estate fraud

Charged with forging names on documents, pocketing escrow proceeds

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

A man in Contra Costa County, Calif., was sentenced Thursday to four years in state prison for securities fraud, forgery and theft that involved 11 victims and their home equity. David Steven Scott was serving a suspended sentence for securities fraud when he advertised that he could help individuals clean their credit through his company, Advanced Financial Solutions. Through his credit counseling, Scott obtained information about the amount of equity people had in their homes, and helped them obtain loans. Scottt also convinced 11 victims in Contra Costa County to invest about $150,000 in a series of transactions involving trust deeds and promissory notes, according to the California Department of Corporations. Scott did not disclose that he had a previous felony conviction for securities violations. He also misrepresented to his victims that they would earn up to 25 percent interest if they invested some of their loan proceeds with him, according to the Department o...