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Developer Builds $1.5 Million Dollar Home on Lot Sold to Them by Fake Seller

The real estate sector is full of opportunities, but like every other industry, it's not immune to fraudulent activities.

A recent case from Fairfield, Connecticut demonstrates just how elaborate and damaging these schemes can be.


The Case of 51 Sky Top Terrace

At 51 Sky Top Terrace in Fairfield, a half-constructed house stands as a testament to a devastating real estate scam. Gina Leto and Greg Bugaj, the developers and partners of a real estate venture, found themselves embroiled in a fraud case when it emerged that they had purchased the lot from a fake seller.


Daniel Kenigsberg, the legitimate owner of the land, had no knowledge of the sale. His family had owned the property for seven decades, and to his surprise, upon returning to the place of his childhood, he discovered a $1.5 million house being built on his land.


Leto and Bugaj, who had no direct contact with the impersonator, were blindsided. They had paid $350,000 for the lot, trusting the real estate professionals involved in the transaction, who had also been duped. As the realization set in, they were confronted with potential losses of hundreds of thousands of dollars and possible damage to their reputations.



How to Avoid Falling Prey to Such Frauds:

The Connecticut scam serves as a wake-up call for real estate professionals everywhere. To shield oneself from such scams, understanding the S.I.M.P.L.E. framework that was formulated by Investor's Title is paramount. It stands for "Seller Identity Must Precede Literally Everything." This tenet emphasizes the importance of verifying the seller's identity as the foremost step in any real estate transaction. Here are steps, based on guidelines provided by Investor's Title, to prevent such frauds:


1. Verify Seller Identity:

  • Direct Contact: Always contact the seller directly using an independently verified phone number.

  • Documentation: Request government-issued identification and scrutinize it for signs of tampering.

  • Validation: Use identity verification platforms like CertifID.

  • Physical Mail: Mail the owner at the property address and see if they respond.

  • Engage Neighbors: They can often provide insights into the property owner's identity.

  • Signature Verification: Compare the seller's signature on various documents.

  • Virtual Meetings: Use platforms like Zoom to visually confirm the seller's identity.

  • Broker Verification: If a real estate broker is involved, ascertain their relationship with the seller.

2. Verify or Select Notary:

  • Credentials: Always verify the notary's credentials.

  • Direct Contact: Establish direct contact with the notary using verified contact details.

  • Use Known Notaries: Opt for notaries known to your organization or those vetted and approved by authorities.

  • Physical Verification: Encourage sellers to execute deeds at known places like an attorney's office or bank.

3. Investigate Property:

  • Online Research: Search the property online to see if it's listed for sale elsewhere.

  • Physical Inspection: Visit the property, talk to neighbors or tenants. This provides firsthand insights.

  • Property-Related Questions: Pose detailed questions to the seller that only the real owner would know.



Additional Tips Based on the S.I.M.P.L.E. Framework:

Watch out for:

  • REMOTE SELLER: Be wary if the seller is always unavailable for physical meetings.

  • EXTERNAL EXECUTION: If property transactions are being executed externally or abroad, exercise caution.

  • UNKNOWN NOTARY: Always verify the notary’s legitimacy.

  • VACANT LAND OR NON-OWNER-OCCUPIED PROPERTY: These can be prime targets for fraud.


The Sky Top Terrace scam is a potent reminder of the importance of due diligence in real estate. Leto and Bugaj's unfortunate experience underscores the need to approach transactions with vigilance. While technology and globalization have made real estate transactions faster and more convenient, they've also opened the door to sophisticated fraud. Adopting a S.I.M.P.L.E. approach to transactions, emphasizing verification, and being continually vigilant can help professionals safeguard their clients and their own reputations.


Has a fraudulent seller ever attempted to work with you? Share your experience in the comments below or with a colleague in an upcoming CE Class!

Haar, Dan. (2023, August 2). Connecticut developers of $1.5M house on contested Fairfield lot say they’re victims of scam. CT Insider.

Investor's Title. (2023, April). S.I.M.P.L.E.: Know Your Client & Know the Signs. Investor's Title Brochures.

 
 
 

21件のコメント


Ethan Hunt
Ethan Hunt
6月22日

A $1.5M home was built on land sold by a scammer, not the real owner—costing developers huge losses.The real owner, unaware, returned to find a house on his family’s land.This case stresses the need to verify sellers using the S.I.M.P.L.E. method.Always check ID, meet virtually, and confirm with neighbors. Check Amber Menu

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ws4969240
6月16日

This story is a powerful reminder that even with experience, anyone can fall victim to sophisticated scams if basic verification steps are skipped. It really emphasizes how trust must be built on process, not assumption. Reading this made me reflect on how, just like in real estate, health decisions also require diligence and trust in the right providers. That’s why I appreciate resources like the Calla Women’s Health blog — they not only offer trusted services but also run a helpful blog that educate readers with transparent and timely information. Whether it's a medical choice or a property deal, doing your homework and verifying before acting is everything.

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This case is a strong reminder of how crucial proper verification is in real estate. Just like buyers should verify property ownership, I always make sure to shop from trusted platforms like The LastPrice for Mobile phones and Accessories. It’s not just about getting the best deal—it's about peace of mind. Technology, when used wisely, protects us from unnecessary risks. Hope more people take these lessons seriously in every type of transaction.

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Matthew Aaron
Matthew Aaron
5月20日

A developer recently built a $1.5 million dollar home on a lot that was later discovered to have been sold by a fake seller, leaving them in a legal and financial nightmare. The situation has raised serious concerns about property fraud and the importance of verifying ownership before purchasing land. While dealing with the stress of this unexpected situation, the developer mentioned finding some peace by listening to Surah e Yaseen MP3 download during moments of reflection.

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