It sounds like a term out of an old Mafia movie, doesn’t it? With everything else going on in real estate, the newest investigation reveals real estate lawyers and real estate agents laundering money for foreign governments and “big wigs”.

Evidently the banks have rules based on the “2001 Patriot Act” to use due diligence to find out where the money comes from before it gets deposited. Due to the Patriot Act, if you’ve tried to open a bank account lately, they want to know everything down to the size of your underwear almost.  So foreign dignitaries, etc. have found a way to launder money through our American system, because really, when it comes to buying and selling something, what American doesn’t like “green”?

Tens of millions of dollars pass through our system. Foreigners buy million dollar mansions here, jets there, etc. Due to an exemption given to real estate and escrow agents by the Treasury Dept. in 2002, it makes the real estate market very easy to manipulate with “ill-begotten” funds.

What cracks me up is here we are again, where the rights of others come before those of our own. When I have a buyer for a house, I have to be able to show a complete “paper trail” for where those funds have come from. From this investigation, if you’re a foreign dignitary, etc. all you have to do is have the funds. Nobody seems to care where they come from. Of course if you’re doing a multi-million dollar transaction and most of it is cash, guess what? Yes, cash is still “king”.

One article stated “The report said Nagler worked with a colleague in the insurance industry to provide insurance coverage for Obiang’s 32 motorcycles and cars, which included seven Ferraris, five Bentleys, four Rolls-Royces and two Lamborghinis.” Must be rough, aye?

At least we’re not in it alone this time. Money laundering in real estate is happening with the help of not only real estate agents and escrow officers, but lobbyists, insurance agents, and real estate lawyers. The corruption and greed will never cease to amaze me.

On a different note, I’ll be holding an open house in Mountain View,

2/10/2010

California this Wednesday from 11:30 am to 2:30 pm. For information about this lovely home, visit http://www.whismanhomeforsale.weebly.com

If you have any questions regarding real estate in California, please feel free to contact me. I’d be happy to help.