Salt Lake City, UT / September 27, 2007 / Press Release / --  For the many who have called Utah home, it has always been a place of tranquility and the great outdoors.  Utah's mountainous slopes beckon the world's talent for a challenge that brings them back year after year. 

But with time comes change and with change comes opportunity.  Utah has for the past five years gained momentum as a hot bed for real estate fraud.  And although some may point to outside influence as the cause, much of the damage seems to occur from networks deeply imbedded within the state.

The resounding question seems to be, "What is law enforcement going to do about it?"

Victims of Utah's housing fraud schemes turn to places like Utah's Division of Real Estate, the Salt Lake City FBI Field Office, and Utah Attorney General's Office for help.  All are government resources stretched to budget capacity while lacking adequate resources to stay apprised of new and emerging fraud schemes holding Utah in financial distress. 

But two days ago, just as the verdicts were being read in the Warren Jeffs trial another series of events took place that have many believing that public trust in the system has failed.  Two men, one of whom is a well known sports anchor for a local television station pleaded guilty in abeyance to communications fraud in a case stemming from housing fraud. 

While others involved in the case have yet to be prosecuted, the debate over who is a victim and who is the conspirator rages on. 

"The thing that is concerning here is that once consumers realize that they are involved in a fraudulent transaction, they are willing to come forward, this case could change that," says Sheri Fitzpatrick, CEO of the non-profit Perfect Home Living.  "That's not to say that all are innocent but most of these people are told what to do by those facilitating the transaction and based off that advice or recommendation the uninformed consumer or family member, complete the transaction believing it to be safe and legal," Fitzpatrick added. 

Still the debate over who knew what and when is an argument that the Appeals Courts all over the nation are listening to.  But what is perplexing is the state's position of charging uninformed consumers or families as co-conspirators in these types of cases.  The sentiment of having consumers come forward and tell their story only to result in their arrest and prosecution further drives the wedge of consumer confidence. 

But as long as consumers are willing to relive one of the most traumatic experiences of their lives and testify against those higher up the food chain in the world of real estate fraud, the state is willing to drop all previous charges - but how long does that take?

In other industries the consumer is not charged with a crime where instructions to perform tasks are given or stated by a third-party professional, consultant or person with greater knowledge. 

Consider the case reported by Shepherd Smith & Edwards this past August involving 250 clients who from 2000 to 2005 were defrauded by three hedge fund companies; KL Group LLC, Shoreland Trading LLC and KL Triangulum Management LLC with losses of approximately $195 million.  None of the clients were charged.

More recently the conviction of Warren Jeffs according to juror Ben Coulter, 26 said Jeffs' special position in the FLDS society made him liable.  "He was the only one who could have released her," he said.  "He ultimately held all the keys to saying you don't have to be in this marriage, and there won't be any consequences."  Neither the rape victims friends or her parents were charged with any crimes, however the husband of the rape victim, Allen Glade Steed was charged with first degree felony rape. 

The State of Utah has sent a strong message and for those unaware here it is.  Families and individual consumers who rely upon the guidance and expertise of real estate professionals and unlicensed real estate investors during the home buying process where fraud occurs, will be viewed as criminals and prosecuted for consenting to the transaction. The philosophy of caveat emptor (or let the buyer beware) as Utah law interprets it has been taken to a new level. 

After the verdict of Warren Jeffs was read Utah Attorney General Mark Shurtleff gave the following statement, "Everyone should know that no one is above the law, religion is not an excuse for abuse and every victim has a right to be heard."

But does that hold true for the thousands of victims of Utah families and individuals across the state of Utah that have been financially ruined by real estate fraud scams?  According to this latest case, the answer is no.

About Perfect Home Living 

Perfect Home Living is a nationally recognized leader that assists in implementing programs and providing training and education to financial lenders , government entities, consumers and licensed professionals to red flags within today's  real estate market.   For more information or to request assistance please visit us online at:  http://www.PerfectHomeLiving.com