A 28-year-old woman from Pontiac, Michigan, is facing ten felony charges in connection with an alleged real estate fraud scheme. Prosecutors say Amanda Escalante-Lopez collected thousands of dollars from multiple victims by creating verbal agreements for homes that she did not legally own.
The Oakland County Prosecutor’s Office announced the charges, which stem from allegations that Escalante-Lopez defrauded prospective home buyers through false land contracts and promises of property titles.
Key Takeaways
- Amanda Escalante-Lopez, 28, of Pontiac, faces 10 felony counts related to real estate fraud.
- She is accused of selling properties she did not own through verbal land contract agreements.
- The charges include multiple counts of false pretenses and larceny by conversion, involving amounts up to $50,000.
- The case is being handled in Michigan's 50th District Court, where a warrant was issued on October 10.
Details of the Alleged Scheme
According to the Oakland County Prosecutor's Office, the investigation revealed a pattern of fraudulent activity targeting individuals seeking to purchase homes. Escalante-Lopez is accused of identifying prospective buyers and entering into verbal agreements with them for land contracts.
A land contract is a form of seller financing where the buyer makes payments to the seller over time but does not receive the legal title to the property until the full price is paid. In this case, the prosecution alleges that the defendant had no legal authority to sell the properties in question, as she did not hold the titles.
The victims allegedly made significant financial payments to Escalante-Lopez, believing they were securing legitimate ownership of the homes. The scheme reportedly unraveled when the buyers discovered they had no legal claim to the properties they were paying for.
Understanding Land Contracts
Land contracts can be a legitimate path to homeownership, often used by buyers who may not qualify for a traditional mortgage. However, they carry risks. Because the seller retains the property title until the contract is fulfilled, buyers have fewer protections than with a bank-financed mortgage. Experts advise that all real estate transactions, especially land contracts, should be in writing and reviewed by a legal professional.
A Breakdown of the Criminal Charges
The ten felony charges filed against Amanda Escalante-Lopez cover a range of financial crimes, reflecting the varying amounts of money allegedly stolen from different victims. The charges demonstrate the seriousness of the allegations and the potential for significant prison time if convicted.
The charges are divided into two main categories: false pretenses and larceny by conversion. Both address different aspects of the alleged financial deception.
Charges of False Pretenses
False pretenses involves intentionally misrepresenting a fact to obtain someone else's property or money. In this context, it alleges that Escalante-Lopez falsely claimed ownership of the homes to induce payments from buyers. The specific counts are:
- Three counts of False Pretenses – $20,000 to $50,000
- Three counts of False Pretenses – $1,000 to $20,000
Charges of Larceny by Conversion
Larceny by conversion occurs when a person legally has possession of someone else's property but then uses it for their own purposes without permission. Here, it suggests that after receiving money for the purported home sales, the defendant illegally kept and used the funds instead of fulfilling any legitimate transaction. The specific counts are:
- One count of Larceny by Conversion – $20,000 or more
- Three counts of Larceny by Conversion – $1,000 to $20,000
Financial Thresholds in Michigan Law
In Michigan, the severity of theft and fraud charges often depends on the value of the money or property involved. For example, a false pretense charge involving $20,000 to $50,000 is a felony punishable by up to 10 years in prison and significant fines.
Legal Proceedings and Current Status
The legal process began after an investigation into complaints from the alleged victims. According to records from the 50th District Court in Oakland County, a warrant for Escalante-Lopez's arrest was formally issued and signed on October 10.
Following the issuance of the warrant, the next step in the judicial process is an arraignment. At an arraignment, the defendant is formally read the charges against them and is given the opportunity to enter a plea of guilty, not guilty, or no contest. The court also addresses the conditions of bond during this hearing.
As of October 13, court records indicated that the arraignment for Escalante-Lopez was still pending. The case will proceed through the district court system, where preliminary hearings will determine if there is enough evidence to move forward to trial at the circuit court level.
Protecting Against Real Estate Fraud
This case highlights the potential dangers facing home buyers, particularly those who engage in non-traditional real estate transactions. Law enforcement and real estate experts frequently warn consumers to take specific precautions to avoid becoming victims of fraud.
Key recommendations for prospective buyers include:
- Always Get It in Writing: Verbal agreements for real estate are difficult to enforce and are a common feature of fraudulent schemes. A comprehensive written contract is essential.
- Verify Property Ownership: Before any money changes hands, a buyer should conduct a title search through a reputable title company or real estate attorney. This confirms who legally owns the property and if there are any liens or claims against it.
- Work with Licensed Professionals: Using a licensed real estate agent and a real estate attorney provides layers of protection and expertise throughout the buying process.
- Be Wary of High-Pressure Tactics: Scammers often create a sense of urgency to rush buyers into making decisions and payments without performing due diligence.
Authorities urge anyone who believes they may have been a victim of a similar real estate scheme to contact their local police department to file a report. Early reporting can help prevent others from being defrauded and assist investigators in building a case.
