GLVAR works with authorities to stop mortgage fraud

Q: With all the news lately about investigations into mortgage fraud, I was wondering what you think about this situation and who should you call if you want to report such things? -- Paula S., Las Vegas

A: Recent news reports have certainly illustrated what can happen when greed or other misguided motivations lead people to violate their professional ethics and the law.

I suspect you're referring to news that broke in June, when the Southern Nevada Mortgage Fraud Task Force, a group of local, state and federal law enforcement agencies, made headlines by announcing a series of arrests and convictions in an ongoing case called "Operation Stolen Dreams." Law enforcement officials said the nationwide investigation is the largest collective enforcement effort ever aimed at combating mortgage fraud.

As we now realize, it took special aim at Southern Nevada, where at least 123 defendants have been charged, convicted or sentenced since Operation Stolen Dreams began. Those defendants from various aspects of the mortgage and real estate industries are accused of committing hundreds of fraudulent transactions involving straw buyers, causing an estimated total loss of more than $246 million in our market.

This kind of illegal and unethical activity must stop and can't be tolerated.

You should know that the Greater Las Vegas Association of Realtors has and will continue to cooperate with law enforcement officials and the state Real Estate Division.

I'd like to share the statement GLVAR sent in response to media inquiries we received after the task force announced its progress in June:

"On behalf of the nearly 12,500 members of the Greater Las Vegas Association of Realtors, we support and cooperate with such efforts by local, state and federal regulators and law enforcement agencies to aggressively investigate and prosecute anyone in the real estate industry suspected of fraud. The fraudulent activities alleged by the Southern Nevada Fraud Task Force are harmful to homeowners, law-abiding members of the real estate industry and the public at large. GLVAR members receive the highest level of professional training and must abide by a strict code of ethics that prohibits such behavior."

It's this code of ethics, along with our education and expertise, that distinguishes Realtors from those who simply have a state-issued real estate license. If you want to read this code, need more information or have a complaint involving a GLVAR member, call GLVAR's Professional Standards Department at 784-5052 or visit lasvegasrealtor.com.

You can also contact the Nevada Real Estate Division, which has the ability to revoke a real estate license when warranted. Call 486-4033 or visit red.state.nv.us.

Of course, you should report any type of criminal activity to the police.

As I have reminded our members and the public, we all need to do whatever we can to help police our industry, which is a vital part of the local and national economy. By doing so, we can also protect the reputation of our profession and our community from the few bad apples found in all walks of life who choose to break the law.

Especially in these trying times, ethics are everything. Thanks for giving me a chance to address these important issues.

Rick Shelton is the president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for 20 years. GLVAR has 12,500 members. To ask him a question, e-mail him at ask@glvar.org. For more information, visit lasvegasrealtor.com. Questions may be edited for space and clarity.