Title fraud is becoming an alarming issue in the real estate industry, as luxury properties like Spelling Manor in Los Angeles and Graceland in Tennessee have recently fallen victim.
Fraudsters increasingly use advanced technologies to forge documents and file fake deeds, claiming property they don’t own. Resolving these disputes can take months or even years, putting properties and their owners in legal limbo.
So, what happened?
One high-profile case involves Spelling Manor, a renowned luxury estate listed for $137.5 million. The owners, 594 Mapleton LLC, allege that scammers Mirga Phipps White and Nicholas Phipps White filed a fraudulent deed with Los Angeles County in June 2024.
This act has prevented the owners from legally selling the property, even as former Google CEO Eric Schmidt shows interest in purchasing it.
The Whites have denied the allegations, claiming ownership and stating that the mansion was wrongfully purchased with stolen funds by The Real Housewives of Beverly Hills cast member Erika Girardi and her former husband, attorney Thomas Girardi.
Thomas Girardi has already faced legal trouble, being convicted of embezzling over $15 million from clients. Despite these claims, a judge dismissed the Whites’ lawsuit, describing their accusations as “fantastical.”
However, the property remains in legal limbo as the situation continues through the courts.
This isn’t an isolated case. Federal authorities recently arrested a Missouri woman for allegedly stealing ownership interest in Graceland, Elvis Presley’s historic mansion.
The suspect, Lisa Jeanine Findley, used fake identities to pose as representatives from a private lender. She claimed the Presley family had defaulted on loans to seize the property. Findley was indicted for mail fraud and identity theft.
Experts note that technological advancements make it easier for fraudsters to forge documents, identification, and notary stamps. These fake deeds are often filed online, allowing scammers to remain anonymous and avoid in-person encounters.
According to Sarah Frano, vice president and real estate fraud expert at First American Title Insurance Company, 28% of title insurance companies reported experiencing seller-impersonation fraud attempts in 2023 alone.
Attorney David Fleck, who specializes in title fraud cases, explains that once these fraudulent documents are filed, scammers may attempt to take out mortgages, sell the property, or rent it out.
Property owners are then left with the burden of proving their ownership in court, which is often lengthy and costly.
Final thoughts
In light of these developments, property owners must work with trusted title search companies to verify ownership and safeguard their properties.
At PippinTitle, we use advanced technology and a team of
