MINUTES
of the
REAL ESTATE FRAUD
PROSECUTION TRUST FUND COMMITTEE
Thursday, November 1, 2007
City Hall, Room 408
1 Dr. Carlton B. Goodlett Place
I. CALL TO ORDER AND ROLL CALL
Chair Edwin Lee called the meeting to order at 10:30 a.m.
Present: Edwin M. Lee, City Administrator
Molly Stump, for the City Attorney
Michael A. Troncoso, for the District Attorney
II. DISCUSSION AND ACTION REGARDING ALLOCATION OF REAL ESTATE FRAUD PROSECUTION TRUST FUNDS
A. Assessor-Recorder: Maurilio Leon, CFO, reporting.
Based on the 06-07 anticipated budget of $300,000, the Real Estate Fraud Prosecution Trust Fund is showing a 32% deficit. Over the past two to three fiscal years, the trend has been downward. The Assessor-Recorder expects that the revenues will continue to drop at 15-20%. Consequently, an anticipated allocation of less than $300,000 appears to be more realistic.
B. District Attorney: Alan Kennedy, Deputy District Attorney reporting.
While the collections, as noted by the Assessor-Recorder, are down, as of June 30, 2007, the District Attorney's Office had $196,000 in funds to meet its current and future obligations for prosecutions. The one change from last year indicated in the budget report for the D.A.'s office is a line for contractual services. In November 2006, the D.A. hired a Legal Abuse Specialist under the Real Estate Prosecution Trust Fund to assist the department in prosecutions of real estate fraud through case preparation and community outreach. Because the fraud disproportionately impacts the elderly, the public training and outreach is critical for future prosecutions.
C. Police Department: Greg Ovanessian, Lieutenant, Fraud Unit.
Some aspects of this year's report are consistent with last P.D. report in terms of main use of monies provided from fund. Criminal complaints of real estate fraud usually involve predatory lending, fraud and notarial fraud. Seeing an increase in fraud related to real estate loans and foreclosures. Main use of monies provided to the P.D. from the Real Estate Fraud Prosecution Trust Fund is for the following activities:
" Officer training
" Purchase of equipment to facilitate investigations
" Outreach with D.A. to community groups, churches, seniors
" Produce informational brochures to better prepare officers and patrols who are first responders
Inspector Robert Steger, a Certified Public Accountant, produced the report.
D. Approval of Reports
City Administrator Lee especially commended the District Attorney and the Police Department for their efforts on behalf of seniors and non-English speaking minorities. Deputy City Attorney Stump advised Lieut. Ovanessian to report the department's real estate fraud prosecution efforts to the Police Commission.
Deputy City Attorney Stump moved to accept the reports and the distribution of the funds as presented. Seconded by Deputy District Attorney Troncoso, the motion was unanimously approved.
IV. ADJOURNMENT
The meeting was adjourned at 11:30 a.m.
