Spotting & Preventing Fraud in Real Estate Transactions - 1 CLE hour
Real estate transactions are particularly susceptible to fraud – actual fraud and fraudulently inducement. Appraisers may receive payments to overstate the value of property. Developers or others seeking debt or equity financing may overstate their industry expertise or financial capacity. Concerns about environmental or other forms of latent liability may be shaded to the point of outright misrepresentation. These and many other forms of fraud creep easily into real estate transactions. Identifying these risks in due diligence and drafting protective provisions into the underlying documents of the transaction – or spotting red flags after the deal has closed – are essential to protecting client interests. This program will provide you with a real-world guide to the circumstances in which fraud most frequently occurs, the most important elements of investigatory due diligence, and practical preventive measures to combat fraud.
• Transactions and common fact patterns in real estate where fraud is most commonly seen
• Types of fraud – actual fraud v. fraudulent inducements, civil v. criminal
• How to ask the right due diligence questions depending on the type of transaction
• Categories of diligence – credibility and integrity of counter-parties, rent roll accounting, environmental
• Review of common types of fraud – appraiser kickbacks, overstating financial capacity
• Understanding the opportunities and limits of investigatory diligence
• Preventive measures to mitigate the risk of fraud in transactions
Craig B. Kravit is the chairman and CEO of iVision International, LLC, a national firm providing clients a multi-disciplinary approach to fact-development and intelligence gathering. His company has deep experience conducting investigative diligence in connection with internal corporate matters, in support of litigation, and relating to a wide range of business and real estate transactions. He formerly served as managing director and associate general counsel of world’s leading corporate investigations firm. Mr. Kravit received his B.S. from Franklin & Marshall College and his J.D. from St. John’s University School of Law.
Joshua Stein is the principal in the New York City office of Joshua Stein, PLLC, where he has wide has wide experience in commercial real estate transactions, defaulted loans, and other real estate disputes. He is a Fellow of the American College of Real Estate Lawyers, a member of the Anglo-American Real Property Institute, and formerly served as chair of the Commercial Leasing Committee of the New York State Bar Association’s Real Property Section. He is the author of five books, including “A Practical Guide to Real Estate Practice” (ALI-CLE 2001). Mr. Stein earned his B.S. from the University of California at Berkeley and his J.D. from Columbia University Law School.