MINUTES
of the
REAL ESTATE FRAUD
PROSECUTION TRUST FUND COMMITTEE
Thursday, May 11, 2006 at 10:00 a.m.
City Hall, Room 408
1 Dr. Carlton B. Goodlett Place
I. CALL TO ORDER AND ROLL CALL
The meeting was called to order by Chair Edwin Lee at 10:05 a.m.
Present: Edwin M. Lee, City Administrator
David Carrillo, for the City Attorney
Michael A. Troncoso, for the District Attorney
II. DISCUSSION AND ACTION REGARDING ALLOCATION OF REAL ESTATE FRAUD PROSECUTION TRUST FUNDS
- Assessor-Recorder: Craig Dzeidzic, Tax Manager reporting.
Each fiscal year, $300,000 allocated for this fund. Report shows fiscal years from 2003 through 2006. For FY 2005-06, as of May 10, 2006, the total collected is $204,662, which is 68.22% of what has been budgeted. Shortfall believed to be due to: increase in interest rates, slowdown in recordation of documents. Two-dollar fee imposed on documents that do not trigger a transfer tax, e.g., a deed of trust, refinancing documents; as interest rates increase, there will be a slowdown in recording of documents. Consequently, anticipate fund will be 80% of what has been budgeted.
- District Attorney: Alan Kennedy, Deputy District Attorney reporting.
While funding from the Assessor-Recorder's Office has dropped in the last two fiscal years, office has used balance carried over from preceding years to insure that the office fulfills budget requirements. Prior year collections were higher. Balance from last fiscal year was approximately $294,000. For this current year, the balance is $267,000 and department is dipping into surplus from higher collection years to meet obligations. Anticipates being able to use surplus for next three years if fund continues to decline.
- Police Department: Greg Ovanessian, Acting Lieutenant, Fraud Unit.
In the past two-year period, 71real estate cases with an aggregate total loss amount of approximately $32 million have been prosecuted. Work with other departments and send officers to real estate training to understand types of documentation and transactions. Majority of cases involve elderly victims. Inspector Robert Steger, CPA, Fraud Detail, author of the written report, stated that although there is a balance of $188,268, the fund is trending downward, and expenses are increasing; during the last fiscal year the Dept. authorized Fraud Detail to hire a part-time, retired inspector to assist with the case load. Majority of expenses goes to overtime, training and equipment. Have requested two part-time positions for the next fiscal year. Average case load is high at present; ten inspectors average about 40 cases per each, real estate cases included. Re real estate fraud perpetrated on the elderly, is department policy to prosecute any case where victim is 65+ years, the case is assigned for investigation.
IV. ADJOURNMENT
The meeting was adjourned at 10:25 a.m.
