The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-09-27
FRAUDS IN REAL ESTATE.
A New wav In which Knavish Brokers aud
Lawyers Fleece the Unwary.

To THE EDITOR OF THE SUN-Sir: A
prominent dealer in real estate has called my
attention to a new species of fraud that Is be-
coming very frequent In the city and has sue-
sted the proprety Of warning the public against
1t through the daily press. The principal actors
In these frauds are certain disreputable real
estate brokers and equally disreputable LAWYERS,
and their purpose, briefly stated, Is to obtain
the legal title to heavily mortgaeed houses and
collect the rents until driven out by legal
process.
ibe following Ia the usual plan Of operation:
Inc brokers' viii purch Sc In the name of one OF
their party piece Of country property Of ltttle
value, and DIVIDE II among their numher.
Armed with the deeds to TINS property and fire.
queutly assisted 10y fraudulent mtps procured
from unscrupuous country surveyors, they seek
some heavily mortgaged house which yie.ds a
good rental and ~ owned by some heIpiess
woman or conndinc German Tney apuronch
the victim with hatterinR descriptions OF their
country property and finally indu . biin-de-
spairing of Ills abilitv To pay the encumbrdnoes
on his house-to mako an exchange. To effect
their object they will II necessary, lake him to
the DeigubOrhoOd OF their land and, indicating
some pleasing prospect. say that IL their md,
but That the portion to he sold u not vet marked
on. one broker, particularly well known In
connection with these frauds. prefers To operate
with worthless mining shares and other stocks,
which he Offers instead of the country property
III the Intended victim doubts the value OF he
stock Us IL Is represent d to him, he Is referred
to a troker-a party u tue fraud who corrObo-
rates what has Oeen said to him.
The exchange effected, the victim fnds him
self utterly helpless. lie goes to the broker
with his mining snares, aud il blandly Informed
by that gentleman tn t he does not deal ~ that
Particular stock aud would not buy II, and that
he stated It's value Ut the figure he named be-
use he had known IL 20 sell at That price. Inc
conspirat ors are now In possession. the title be-
ing legally in one Of their number. Ibey pay
neither taxes nor assessments. and allow the IN
terest on the mortgages to GO amp Ia and the
property to 90 to waste for want OF necessary
repairs. The new owner simply appropriates
The rent.
The second stage OF the fraud, and the one at
which the lawyer appears, consists IN del yinR
impendng suits to foteciOse the mortgages. To
effect ttis, the real estate ~ transferred and re
transferred on tue records VI the registers
office, ana is vested in infants or In persons who
are not to be found in the State or 10 leased upon
long leases to non-roridents, to make the mort
gage advertise the summons To those persons,
thereby alone forming a delay OF ABOUT six
weeks. ne time thus gained IL employed, 20
use the language Of tue conspirators In skin
Mug" the house. The lawyer, for round sum,
Will consent to enter an opDearance for tue miss
Ing defendants. or point out where they may 90
with processes, when does away with the ne.
cessity for ADVERTISING and the foreclosure Is
then permitted TO proceed without further
biDdrance. Ii the NOR galee refuses TO compro-
mise with the Conepirators, they collect the
rents untl the house Is sold. or until a receiver
Is appointed to collect the rents. The latter
remedy Is possible only unoer p,rticular circum-
stances, but wnen II effected. the couspiratOrs,
unable to make any more out OF their game,
quietly retire.
bese frauds have been frequent. the same
persons being Identified with many Of tuen.
The circumstances attending most OF tnom re-
veal the last uegree OF he sr.lessness and cruel
Ia the persons engaged in this ylllianOus bust
ness. They have helped Largely to prevent cap
italists from dealing in second mortgages on
tenement property.
1t NAV be a source OF comfort to those who
have suffered FROM frauds OF this kind to know
that these "skinners" are conspirators under
the laws OF tbs State, ana are liable TO criminal
prosecution and punish ment as such. Tue VIC
TINS OF these frauds are mostly Germans, and
Il is they mainly who should tie cautioned
against them. 5. Is. LIVINGSTON.
No. 90 Nassau street, Sept. Is.