Sarasota real estate scam forces sellers, closing agents & real estate agents to tighten standard operating procedure to STOP disgusting scam!
<<<UPDATE >>> Real estate agents, house sellers & title agents throughout the US have contacted me both privately and publicly, sharing their experience with (this) scam.
- One email came from a lady who claimed they have LOST ~$6,000 to this scam. She claims they paid to move out of their home, expecting to sell. She paid movers, cleaners and a short-term leasing agent for the place they no longer need. Wow.
- A couple emails allegedly have come from people identifying themselves as “closing agents” who (on condition of anonymity – I understand why) claim they violated their own policy by refunding escrow before clearing funds. If true, Ouch!
- I’ve heard from MANY real estate agents whose quick thinking has stopped this scam from wasting time, energy & MONEY! One of those agents is Rich Vinesett of ReMax United in Cary, NC. Rich sent me a copy of a passport (see below) that the scammers provided him when Rich demanded proof of identification. Rich adds, “Notice the signature line in English looks nothing like Hirao Noriaki.”
Is it REAL or is it Memorex?
PLEASE inform everyone you know (including real estate agents, house sellers, real estate attorneys & title agents) to beware a real estate SCAM targeting HOUSE SELLERS throughout the United States.
What you are about to hear is a scam that could have been WORSE. In fact, in the past few hours I have received emails from realtors and closing agents admitting they too faced a similar scam.
SADLY, some of these real estate agents and closing agents admitted damage much, much worse than I faced. No doubt, these scammers really are causing damage beyond lost time & lost opportunity to sell at list price.
NOTICE: If you are out of the area (or country) and want to buy a Sarasota home for sale, for instance, PLEASE understand we must confirm you are legitimate before taking seriously your request to purchase. This is how it is now….
Last week, I received an email from a person identifying herself as an assistant to a person (buyer) identified as “Seiichiro Matsubayashi“. Here’s where the SCAM begins….
PLEASE click Read More below now to grab the rest of this shocking scam, already sucking in many real estate and closing agents, spitting out home sellers as well.
REAL ESTATE SCAM HITS SARASOTA COUPLE
Instantly, I recalled a businessman from Japan with Canadian ties named Seiichiro (same name as this person) whom I had helped purchase a property a few years ago in Orlando, Florida.
If not for this recollection, I would not have let down my guard. As it was, I let down my guard for just a second to a scammer also named Seiichiro Matsubayashi.
Mr. “M” Is Not “S. Matsubayashi”
I *THOUGHT* I was hearing once again from a legitimate buyer.
I *THOUGHT* I already had confirmed this Mr. M.
Therefore, I didn’t question my point of contact (an assistant to Mr. Matsubayashi), who informed me Mr. Matsubayashi requested I serve as his Sarasota Realtor with the following criteria:
- Minimum 4 bedrooms, 2 baths
- Private, safe neighborhoods
- $400,000 – $500,000
- Close quickly as possible
Clearly, the Mr. M. I had known (of) was a private or very busy person, who assigned an assistant to be my point of contact and who did NOT want (or plan) to SEE the property. It was sight unseen then as it was to be sight unseen this time as well.
Years ago, I never received much help from Mr. M’s assistant regarding what Mr. M. wanted, i.e. specific location & amenities. On price alone, I sent listings then as I did this time.
You see, I sincerely *thought* I was dealing with a LEGITIMATE buyer (Mr. M) who this time wanted to buy a Sarasota home for sale.
I sent listings as requested. Within days (both times), I received an email pointing out a specific property and terms on which to submit an offer, similar to what you see below:
“Thanks so much for your email. I will like to offer $499,000.00 on MLS#A39xxxx because I love the curb appeal of this property. Please send me the contract for me to sign and return immediately. This will be my retirement home and it will be a cash buy.1. I will want to close on 8th July, 20102. I want to put down $5,000.00 Earnest money + $150,000.00 down payment towards home.3. I want to put contingency on inspection on the contract.4. Please include all requisite disclosures.
Obviously, I demanded proof of funds – which promptly arrived as an email attachment (see image below):
Bank statement "proves" legitimacy...right? Gotta love that nice round number ~ $3.4 MILLION in a "chequing" account 
And then I received the following information from this fraudster:
My legal name is Seiichiro Matsubayashi of 2000 Sheppard Avenue, Toronto Ontario Canada M3N 2J1. I will not be in Canada before the closing date to wire the funds to the closing attorney so I will advice (sic) you to send me the closing attorney information for a check to be drawn to give enough time for check clearance since I wont (sic) be in Canada to wire funds for closing.Please forward me a purchase contract agreement in docusign format, docusign format is an electronic way of signing document.My Canadian Rep Mr. Edward Brown Esq will Issue payment in US Funds $155,000.00USD for the earnest money and the down payment for the property payable to closing attorney, the check will deliver to the closing attorney.My Rep Mr. Edward Brown Esq can be reach at:1-416-824-1768 Email: edbrown@lawyer.comPlease I need the following information for the closing attorney immediately at my own expenseClosing Law Firm Name……………………………………………Law Firm Address……………………………………………….Law Firm Telephone………………………………………………Lawyer’s Name…………………………………………………..RegardsSeiichiro Matsubayashi
From past recollection, Mr. “M” had presented a similar proof of funds. Keep in mind, all this time I’m associating this Seiichiro with a LEGITIMATE person who really closed on a property.
Anatomy Of A Scam!
Everything about this attempted transaction normally WOULD have set off alarm bells:
- Most buyers do NOT buy sight unseen.
- Most buyers provide detailed guidance regarding what they want in a house.
- Most buyers are available by phone or at least an assistant is available.
- Most buyers in this income bracket and their representatives are well-spoken AND well-written, even if English is not their primary language. They’re bright, articulate & professional.
On a Friday, I presented the buyer’s offer in person to the sellers and the seller’s agent.
The seller countered on minor items including the closing date, to which FAKE buyer agreed. With all paperwork completed with a scheduled August 2 closing date, I could not stop questioning two nagging issues – small but just enough to nag at me:
- Buyer’s “assistant’s” writing skills were atrocious — not so previously.
- Buyer insisted I front the home inspection fee – not so previously.
By Friday night when I should have been happy to have an “executed” contract with a closing date, I’m disturbed instead. 2 issues prompt (rather FORCE) me on Saturday to research.
On Saturday, I unearth another shocking “nail in the coffin”:
- Turns out “Mr. M” from years ago was not this Mr. M”. Definitely not the same name. Yes, it was a name I couldn’t pronounce but not THIS last name: Matsubayashi.
- Google search points me to other real estate agents scattered throughout the country who also faced this SCAM. For some agents, the buyer’s name was different. For some agents, this scam went too far – sellers actually moved out in anticipation of closing. Perhaps worse, a couple title agents did not wait to clear funds before REFUNDING the fake buyer’s money.
Smells Like A Scam; Must Be A Scam!
On Monday, I quickly contacted CIBC, the Canadian Bank from which this bank statement provided proof of funds. As expected, no Seiichiro Matsubayashi banked there with $3.4MM.
Then, I called Barnes-Walker Title in Bradenton, Florida, to alert them. Kathi, title agent, had not yet received the cashier’s check for $155,000. Nonetheless, she passed me to Garrett Barnes, who appreciated my head’s up, adding a Weichert Realtor had experienced something similar recently as well.
Just off the phone with Barnes-Walker and I received a call indicating Barnes-Walker had received the cashier’s check for $155,000:
- Check arrived in a plain white envelope – no return address.
- Check was drawn on a noted Canadian law firm’s account – see check image below
- Envelope was not even metered – just a single stamp.
A fake $155,000 never looked so...close to perfect!
Cassels Brock, Canadian Law Firm on which FAKE cashier's appears drawn, publishes FRAUD ALERT!
With sufficient proof to warrant FRAUD, I emailed the “buyer,” asking him/her/them if this was attempted FRAUD. I didn’t expect a response or the truth.
Surprisingly, I received an email saying, “No not at all we know who did that it was one of our employee who was sack did all that but the case is in court.”
Yeah, right, the case is in court…a “sacked” employee. The old days of providing cashier’s checks to close are gone – or should be gone – for out-of-area property buyers.
New “Rules” – No Money; No Deal!
Buyers’ ALERT: If you want to submit an offer on Sarasota real estate, please understand the need for wired funds to open escrow and proceed to closing. Should you provide earnest money and immediately try to cancel for a refund of earnest money, you will wait for average of 10 days according to various title agents and attorneys.
At the center of this unfortunate SCAM are two people (SELLERS) who in good faith entered into what they thought was the sale of their home. Even though we caught this early – earlier than some apparently facing a similar scam – these people are inconvenienced.
If you or someone you know wants to buy or sell a house in or around Sarasota (FL), please call me now at 941-914-9980. I will help you avoid scams. PLEASE also go below to leave a comment. If you’re a real estate agent or attorney, have you experienced this scam? How far did it go before someone caught it?
Sarasota real estate SCAMS force all of us to be more vigilant & LESS trusting. Please pass this to any friend, family member or co-worker who is selling a house; real estate agent; real estate attorney; and/or closing agent you know who works with sellers. PLEASE alert ALL of them.
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{ 19 comments… read them below or add one }
This same scammer or group of scammers contacted me as well. He used the same scenario he used with Rich Vinesett of ReMax United in Cary, NC. The only real difference was that he used the name Hishida Sayo and his email was Hishida_Sayo@mail.com. Here is a copy of what his initial email said:
“Hello my name is Mr. Hishida Sayo and I am a businessman from Japan, I frequently travel and recently visited your city for a short stay on a business trip, I was overwhelmed at the nice homes and beautiful communities I seen while I was there and I am looking into buying a home. I only stayed about two days and wasn?t able to talk to a real estate agent while I was there, but I hope you can be of assistance. I forgot the name of the place I was in, but a quiet and safe community would be a great way to start. I am planning to make it my retirement home. I am interested in a 4 bedroom single family house with at least 2 to 4 bathrooms, spacious living room, and garage within a very nice community without a swimming pool. The price range I am most comfortable with is between $400,000 to $600,000 and about 2,500ft. Again I am very interested in looking for a home here and would need some assistance. Please send me list of homes to choose from asap. My email address is hishida_sayo@mail.com Thank you”
I made an assumption of the area he was asking me about (first red flag) and sent him about 23 listings. He emailed me back and said:
” Thanks so much for the email; I have to say all the homes you sent me were very nice but there was one that really caught my eye and I am very interested in. I did some research on the community in which the house is in and seems to be pretty good. Having said that I will like to offer $404,900.00 on MLS# 6XXXX ,
I have to say I love the structure and curb appeal of this property, please send me the contract (asap). If possible use docusign format so I can sign it and return immediately. This will be my retirement home and it will be a cash buy.
1. I will want to close on 1st September, 2010
2. I want to put down $5,000.00 as the Earnest money
3. And an additional $150,000.00 should be put aside towards the closing but not to be added on the contract until all closing payment are completed.
I currently reside at 2000 Sheppard Avenue, Toronto Ontario Canada M3N 2J1,at this time I will prefer for you to recommend me a trusted lawyer instead of a title company. I will not be in Canada before the closing date to wire the funds to your attorney, so please send me your attorney?s information so I can consult with him/her, issue a payment and secure the home for now.
From this point, my account manager Mr. Larry Jackson will be representing me, I am currently communicating with him and letting him know what to do. Mr.Jackson is located in Toronto,Ontario. I authorized Mr.Jackson to issue payment in US Funds of $155,000.00USD. The payment will be for the earnest money, down payment, and any fees applied from here on payable to your attorney, I will have my account manager send the check to your attorney when ready.
Please email me the following information for your attorney so I can inform my account manager immediately:
Closing Law Firm Name……………………………………………
Law Firm Address……………………………………………….
Law Firm Telephone………………………………………………
Law Firm Email Address???????????.”
Lots of red flags! I then asked him for a phone number for himself and Mr Jackson. He responded only with Mr. Jackson’s number which was 905-781-8053, which is a Canadian number. I did not ever call it.
I emailed him the contact info of a local attorney and called the attorney to give him a “head’s up” that something sounded fishy and to be on alert. The same day he sent the attorney an email asking him if the firm would be willing to be on retainer for Mr Sayo, that he had gotten this attorney’s name from me, and to please send him the appropriate paperwork.
I then sent him an email with disclosures on the property, a sample Offer to Purchase and other NC residential brochures. I asked him a few questions about inspections and needing verification of funds. He emailed me back about the inspections he would like and attached his bank statement which was identical to the one that Rich Vinsett had received except for the name on the account.
I called another office and asked the Office Administrator if they had heard of anything like this going on in their office. She had not, but became curious and found the information here on Mike’s page. After reviewing Rich Vinsett’s experience and seeing the items he provided, I was sure it was a scam! I am just so thankful it did not go any further for the seller’s sake. What an awful thing to do to someone.
“
Thank you, Missy, for sharing your experience. You are so right…thank goodness Rich, you and the sellers did not suffer inconvenience or loss of money as many others have. Together, we hopefully will call these scammers out to all our colleagues.
Mike
Rich: They came up with a passport???
I told them they had to pay for their legal fees upfront and never heard back!
Hey Mike,
I’m a realtor in Raleigh, North Carolina. Thank you for posting the article
about the scam alert. I was contacted by Hiroa Noriaki who wanted to
purchase a home sight unseen. My seller and I came across your post and Mr.
Noriaki’s correspondence matched your examples exactly.
Even Mr. Ed Brown was supposed to contact me. I knew it was a scam.
On this occasion, I asked him to provide Identification and he sent me a
passport that looked so real, I almost did believe it.
Unbelievable.
Sincerely,
Rich Vinesett
ReMax United Cary, NC
919-349-6315
Thanks, Rich. I’m glad you caught on quickly. No loss of time, money or identity with your quick thinking.
Unfortunately, others haven’t been as lucky.
Together, we can (& must) STOP this scam! Many markets across the US are stressed enough without adding this potentially costly and stressful scam to the mix. I really appreciate your taking time to leave a comment. Hearing froom many agents (sellers) throughout the US confirms how wide these scammers are casting their net.
Mike
This is happening here in Des Moines, Iowa as well. I have received numerous emails from a Mr. Wu Qian who located me on Trulia. Same names and bank statements they are using in other states. SCAM. BE AWARE.
Thanks, Brett.
And here I thought this was a scam mostly targeting hyper-distressed markets such as Florida, Michigan, Ohio, Arizona, California, Arizona & Nevada. Rather, that’s from where I’ve received the most emails.
Ever vigilant.
By the way, I know Des Moines well. Nice, clean town. Most of my wife’s family are in Omaha. I’ve made that short little 128 mile drive a couple times.
Thanks for spreading the word about this scam, Brett.
Mike
Well, this scam is in Charlotte as well. One of my associates just sent me an identical email and asked if it was a scam. Thank you for sharing!!!!!!!
~Donna
Thank you, Donna, for helping a colleague. This is the ONLY way we are going to STOP these scammers…by alerting all our colleagues and FIZZBOs as well who will be targeted once we agents no longer respond to these scammers.
Mike
GREAT job, Jane!
Vigilance (is) left to us to help our colleagues, house sellers & closing agents.
Mike
I just posted this on Active Rain (186,000 Realtors-networking site) and have included your link. Weak on Trulia’s part. They get to carry shame with that decision. Here is the link… http://activerain.com/blogsview/1741647/heads-up-scam-alert
hopefully, this will help spread the word.
I have recieved the exact same letter, except a closing date of 23rd July, 2010. The lead came from Trulia a few days ago and the letter came two day’s later. I, too, believed it was a scam and am so pleased that I googled the name mr wu qian…up popped this post.
Thank you, Jane.
Seriously, how many people really connect phishing to this scam or will read something so generic? Heck, I did the work for Trulia. All they needed to do was use the details I gave them.
Serious “thumb’s down” to Trulia for NOT regarding visitors (and contributors) to THEIR site more seriously. You’d better believe if I managed/owned Trulia and I knew scammers were using my site to troll for (potential) victims, I sure as hell would do anything/everything I could to STOP the scam.
Trulia has NO problems sending me junkmail – why can’t they take a minute to send every person signed up an email with details about this widespread scam? Why can’t Trulia take a minute to post a warning on their home page and banner at the top of every member’s home page warning them about this scam?
Mike
I just got one of these letters also. The same one that Ms. Swanson received. In your opinion, what is the best way to respond back to this scammer? Thanks!
Hi Jane,
I’m sorry to hear it you’re now a member of the “club.” My suggestion for responding is to ignore them. Instead, I suggest you make certain every realtor friend and closing agent you know is aware. I worry FIZZBO sellers will be targeted next on these scammers’ hit list, with a different objective.
Thanks, Jane, for adding your name to the growing list.
Mike
Thank you for the posting. below is the email I recieved this morning.
I’m a little confused as to what is in this for the scammers?
Debbie
Thanks so much for your email, I would like to purchase this property Listing price $325,000 I will like to offer $317,000 MLS# 423906 because I love the curb appeal of this property, please send me the contract for me to sign and return immediately this will be my retirement home and it will be a cash buy, the contract should be a DocuSign please.
1. I will want to close on 20th August, 2010
2. I want to put down $5,000.00 Earnest money + $150,000.00 down payment towards home.
3. + additional $150,000.00 should be put aside towards the closing but not to be added on the contract until all closing payment are completed.
My legal name is Eiji Suzuki of 2000 Sheppard Avenue, Toronto Ontario Canada M3N 2J1 and I am single, I will not be in Canada before the closing date to wire the funds to an attorney so I will advice you to send me an attorney information for a check to be drawn to give enough time for check clearance since I wont be in Canada to wire funds for closing.
Please forward me a purchase contract agreement in docusign format, docusign format is an electronic way of signing document.
My Canadian Rep Mr. Edward Brown Esq will Issue payment in US Funds $155,000.00USD for the earnest money and the down payment for the property payable to your attorney, the check will be deliver to your attorney
I strongly advice that I need an attorney to represent my interest in this transaction, my lawyer can pay to seller or title company so therefore I would like to deposit all payment with the lawyer.
Please I need the following information for your attorney immediately at my own expense
Law Firm Name……………………………………………
Law Firm Address……………………………………………….
Law Firm Telephone………………………………………………
Check Payable to…………………………………………………..
Regards
Eiji Suzuki
Debbie, thank you for sharing your experience. As more realtors & closing agents make public this scam (& other scams), we can stop these people from causing more damage.
You ask a good question: What’s in it for these scammers?
Their motive is two-fold:
1. They want to exploit some careless escrow agents who don’t clear funds before issuing refund when scammer cancels contract. I was surprised to hear that some closing agents throughout the US will refund earnest money BEFORE it’s cleared the bank. These scammers’ MO (as I understand) is to open escrow in enough places throughout the US that one careless closing agent will REFUND their earnest money before discovering the cashier’s check is a FAKE. In my area, escrow agents require WIRE TRANSFERS – no cashier’s checks, especially from out of state or out of country buyers. No wire, no escrow.
2. They’re “phishing” for as much private information as they can get.
Thanks, Debbie, for posting. Please spread the word. You and I both know many of our colleagues are wasting time and money on this scam that also hurts many sellers and closing agents.
Several real estate and closing agents admitted losing money over this scam as well as some agents’ sellers spending money to move out in anticipation of a sale.
TRAGIC!
Mike
Thank you for this posting. I googled the phone number on the email I received and your posting came up. I was sure it was a scam but you confirmed it for me. Here is the content of the email he sent to me.
==========================================================
July 10, 2010
Thanks for your response. I am Mr. Wu Qian a Japan origin. I need a property urgently. I am a very busy man, but let me just tell you how I want the house and conclude the deal in a short time frame.
I need a 4 bed room single family home to buy, in gated community in your city with a garage and 2 bath with or without swimming pool price should be between $400,000 to $600,000 please send me some listings or MLS you can reach me at Tel: +81-3388-73121 also my Canada representative is Edward Brown Tel: 416-824-1768 .
If you can be fast about getting this house, I will appreciate as this will be my retirement home and it will be a cash buy. I will want you to send me the MLS listing and a contract form to sign.
1. I will want to close on 23rd July, 2010
2. I want to put down $5,000.00 Earnest money + $150,000.00 down payment towards home.
3. I want to put contingency on inspection on the contract.
My legal name is Mr. Wu Qian of 45685 Patten Ave. Chilliwack B.C., V2P 1S3 Canada and I am single, I will not be in Canada before the closing date to wire the funds to an attorney, so I will advice you to send me an attorney information for a check to be drawn to give enough time for check clearance since I wont be in Canada to wire funds for closing.
Please forward a purchase contract agreement to me in docusign format, docusign format is an electronic way of signing document.
My Canadian Rep Mr. Edward Brown Esq., will Issue payment in US Funds for the earnest money and the down payment for the property payable to your attorney, the check will be delivered to your attorney. My Rep Mr. Edward Brown Esq. can be reach at:1-416-824-1768, I strongly advice that I need an attorney to represent my interest in this transaction, my lawyer can pay to seller or title company so therefore I would like to deposit all payment with the lawyer.
Please I need the following information for your attorney immediately at my own expense
Law Firm Name……………………………………………
Law Firm Address……………………………………………….
Law Firm Telephone………………………………………………
Lawyer’s Name…………………………………………………..
Regards,
Mr. Wu Qian
Thank you, Victoria, for sharing the email you received. Looks like the scammers have used yet another alias. I’m sorry you experienced (this) scam, though you wisely “googled” before anyone got hurt. Good for you…. Hopefully, all of us can expose this scam & put these guys out of business.
At the very least, they force us to waste time.
Mike
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