A HOMEOWNER has told of his shock after fraudsters were able to take out a $45,000 loan in his name for a renovation that never happened.
David Bryan risked losing the huge sum of cash thanks to fraudulent home improvement loans and an automated signature.
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Bryan and his wife Annemarie Ellgaard decided to retire in New Orleans, Louisiana, where they both grew up.
But the couple’s dream retirement was nearly jeopardized when Bryan received a letter in the spring of 2023.
From the California lender GoodLeap, the letter said Bryan owed $45,000 on a loan in his name, reported local CBS affiliate WWL-TV.
The loan, obtained without his knowledge, was intended to cover the cost of new doors and windows that he did not request and were never installed.
“GoodLeap paid the construction company directly,” said Bryan.
“They didn’t have any proof that the work was done or anything. They just took their word for it that the work was done, paid them directly the $45,000… If it didn’t happen to me, I’d sit back and think, boy, this is ingenious.”
The lender has accepted over 35 loan applications featuring the real names and addresses of New Orleans property owners, but automated signatures as well as fake Social Security and phone numbers.
They didn’t have any proof that the work was done or anything. They just took their word for it that the work was done, paid them directly the $45,000… If it didn’t happen to me, I’d sit back and think, boy, this is ingenious.
David Bryan
GoodLeap directly paid loans for around 20 of the applications to a contractor named Deep South Renovations based on automatic signatures from the contractor’s owner, Samantha McGee.
The lender claims to be a fraud victim and is working with the Sacramento FBI.
However, homeowners felt GoodLeap neglected to conduct essential due diligence to verify the accuracy of their personal information before disbursing funds to Deep South and imposing UCC liens on their properties.
These liens obstructed some property owners from obtaining valid loans or selling their homes.
“To protect consumers and GoodLeap itself, GoodLeap has an extensive due diligence and fraud prevention process,” said Jesse Comart, GoodLeap’s executive vice president for communications.
“GoodLeap is also a victim of this fraud. And we certainly regret that these innocent consumers were also swept up in this fraud.”
GoodLeap was victimized by “a highly sophisticated group that appears to have the ability to create or obtain fraudulent [Social Security Numbers], and then associate the SSNs with innocent property owners,” said Comart.
The lender has since canceled all the loans it identified as fraudulent.
LOAN SCAM
Deep South reportedly used multiple lenders to collect fake home-improvement loan money.
Quentella Livers discovered that Deep South collected $45,000 on a loan from GoodLeap to install solar panels on her home using a fake application with her maiden name.
The homeowner never received solar panels and also found a second UCC lien for new floors and other home improvement work that did not take place.
Livers realized that a second California lender, Dividend Solar Finance, had paid Deep South $54,000 for the fake loan.
Top tips on avoiding scams from a bank
As scams become more sophisticated with the use of artificial intelligence, it is important you know how to spot a scam:
- Be skeptical of online deals that seem too good to be true, especially on social media.
- Scammers will often use tactics to make you panicked so you make quick decisions – be cautious if you are told to take immediate action and verify who has contacted you.
- Chase Bank warns customers to “never return any unexpected funds without calling Chase first.”
- Never send money to someone you have only spoken to online or by phone as this is likely a romance scam.
- Unless you 100% know who you are talking to, never give someone remote access to your device.
- Never accept help from strangers at an ATM and always be vigilant when making withdrawals.
- Do not send money or click any links indicating that you have won a prize.
Source: Chase.com
Real estate scams are not uncommon, as fraudsters resort to automated signatures to forge property deeds and sell homes without the consent of the lawful owners.
However, UCC liens “are a new kind of fraud that we haven’t seen before,” according to real estate attorney Lauren Griffin.
“Fraudsters are trying anything they can right now,” she said.
Deep South seems to have made out with nearly $1 million in fake loans, despite having its state contractor’s license revoked and its office vacant.
Additionally, McGee is facing multiple court cases and financial challenges.
The New Orleans Police Department confirmed its White Collar Crimes Unit is investigating the situation.
The U.S. Sun contacted the Sacramento FBI and New Orleans Police Department for comment.
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