The recent sentencing of Jasmine Shante Faniel, also known as Teresa Dennis, for her role in a wire fraud scheme serves as a stark reminder of the increasing threat to real estate transactions. Faniel was sentenced on October 30, 2024, by the Ventura County District Attorney’s Office for a fraud scheme that deceived a local family out of their savings as they attempted to purchase their first home. Together with co-defendant Abdoul Aziz Bah, Faniel played a crucial role in laundering funds stolen from unsuspecting victims, who unknowingly wired their money into fraudulent accounts.
In this case, like many others, the fraudsters infiltrated the transaction by impersonating trusted professionals such as escrow officers and title representatives. Through compromised email accounts and deceptive manipulation, they redirected closing funds and laundered them internationally. According to District Attorney Erik Nasarenko, “This case highlights the sophisticated measures scammers use to gain trust and access in real estate transactions.”
Understanding Wire Fraud in Real Estate
Wire fraud in real estate has become a widespread issue in recent years, fueled by the digital nature of real estate transactions and international syndicates adept at intercepting and manipulating communications. Once fraudsters gain access to the transaction, they may target various financial sources—buyer’s closing funds, seller’s proceeds, lender’s funds, and even commissions—by crafting emails that look genuine but provide fraudulent wire instructions.
A 2023 report from the FBI’s Internet Crime Complaint Center (IC3) revealed that U.S. real estate wire fraud losses exceeded $200 million. These scams often involve “money mules,” like Faniel and Bah, who open accounts to receive stolen funds, which are then laundered and transferred overseas, usually beyond the reach of local law enforcement. These “mules” frequently keep a small portion of the funds before moving the remainder to accomplices in foreign countries. In this case, the stolen $201,000 was laundered through international auto auctions in Nigeria.
Staying Safe: Key Preventative Measures
Senior Deputy District Attorney Dominic Kardum emphasized the importance of vigilance, especially in the digital realm: “This case serves as a warning to always verify wire transfer requests by placing a phone call and speaking to a known member of the transaction to confirm the request is valid before ever wiring funds.”
For buyers, sellers, and agents, here are some steps to protect against wire fraud:
- Verify Every Wire Request by Phone: Always contact a known person involved in the transaction to confirm wiring instructions. Scammers frequently impersonate familiar contacts, so direct voice verification is critical.
- Watch for Last-Minute Changes: Fraudsters often attempt to alter wiring instructions at the last moment, hoping to catch victims off guard. Legitimate escrow and title companies will rarely change wire instructions.
- Use Secure Communication Channels: Avoid discussing sensitive financial information through email, as email accounts are particularly vulnerable to hacking. Secure document-sharing platforms or encrypted channels are preferable.
- Double-Check URLs and Email Addresses: Scammers often use email addresses or URLs that look similar to those of legitimate companies. Always inspect these carefully for any minor alterations.
The Role of REFAT in Combatting Real Estate Fraud
The Real Estate Fraud Advisory Team (REFAT) continues to work closely with the Ventura County District Attorney’s Office and law enforcement agencies to raise awareness about real estate fraud and educate the public on how to avoid these scams. By offering resources and holding seminars, REFAT aims to empower individuals with knowledge about fraud detection and prevention. Real estate professionals are also encouraged to educate their clients on best practices for avoiding scams.
In this case, thanks to the collaborative efforts of the District Attorney’s Office Real Estate Fraud Unit and the Ventura County Sheriff’s Office Fugitive Unit, $38,500 has been recovered and returned to the victims. Nonetheless, this amount represents only a fraction of the losses often incurred in wire fraud schemes. As cases like this one illustrate, vigilance and adherence to best practices are essential for protecting against wire fraud in real estate transactions.
Final Thought
The rise of wire fraud schemes targeting real estate highlights the need for caution in every step of the transaction process. As scammers grow more sophisticated, buyers, sellers, and agents alike must prioritize secure practices and verify any wire instructions to safeguard their hard-earned funds. Through education, proactive prevention, and rigorous law enforcement efforts, Ventura County’s Real Estate Fraud Advisory Team and the District Attorney’s Office are committed to protecting the community from these deceptive schemes.
For more information on preventing real estate fraud, visit the REFAT at refat.org or dial (805) 751-5899