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District Attorney recommending the Board:
1) Receive and file the 20th Annual Report on Real Estate Fraud for Fiscal Year 2024-25; and
2) Adopt and authorize the Chair to sign Resolution 104-2025 extending the suspension of the Real Estate Fraud recording fee of $2.00 per recording for an additional one-year period, through September 30, 2026.
FUNDING: Real Estate Fraud Prosecution Fund.
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DISCUSSION / BACKGROUND
In accordance with Government Code Section 27388(d), the Board of Supervisors is required to annually review the effectiveness of the District Attorney’s (DA) Office efforts in deterring, investigating, and prosecuting Real Estate Fraud crime based upon information provided by the District Attorney via an annual report. The report is attached.
As presented during the 20th Annual Real Estate Fraud Committee held on July 9, 2025, the overall number of FY 2024-25 Real Estate Fraud cases reported to the District Attorney’s Office has increased as compared to the year prior. As of June 30, 2025, a total of 39 cases had been reported to and investigated by the office. The number of Notice of Defaults by homeowners has increased by 3% and the number of Notice of Trustee Sales has decreased by 45% as compared to prior year data.
This year, the office has witnessed a significant increase of organized fraudulent listing attempts originating from outside the United States. This trend is not surprising to El Dorado County and through conversations with Real Estate Fraud Investigators across the state, vacant land is being actively targeted by criminal fraud rings. In the efforts of remaining proactive, the Real Estate Fraud Program Investigator continued to meet with personnel from the El Dorado County Recorder Clerk’s Office to establish avenues of communication for better reporting of potential real estate fraud discovered by their office.
Additionally, the DA’s Office has continued to pursue outreach through social media to alert the public to the signs of vacation rental fraud. This year the office published a video to the public to help educate and provide awareness regarding rental fraud and the Program Investigator continues to participate in local outreach events, as well as attend monthly collaborative meetings with multiple law enforcement agencies, Adult Protective Services, Public Guardian’s Office, County Senior Legal Services, and other Health and Human Services Agency divisions.
As part of the discussions had during the annual committee meeting, the subject of the Real Estate Fraud recording fee suspension was reviewed. On July 26, 2022, with Legistar file 22-1294, the Board Chair executed resolution 115-2022 which suspended the $2.00 recording fee for a period of three years, effective October 1, 2022 - September 30, 2025. The recording fee is the primary funding source for the Real Estate Fraud Program/Fund. The fee was initially suspended due to decreased workload resulting in less revenue drawdowns and an increasing fund balance. As the expiration of the fee suspension approaches, it was determined to extend the suspension an additional year through September 30, 2026, at which time the fund balance would be re-assessed during the FY 2025-26 annual committee meeting. Although current FY 2024-25 casework has increased, the remaining fund balance is well over the required gap variance.
ALTERNATIVES
Should the Board opt not to approve the Chair to sign enclosed resolution, extending the Real Estate Fraud recording fee suspension an additional year through September 30, 2026, the suspension would be lifted and funds would begin to accrue at a much faster rate than they can be expended at this time.
PRIOR BOARD ACTION
07/26/2022 Legistar file 22-1294: The Board received and filed the seventeenth annual report on Real Estate Fraud for FY 2021-22 and signed a resolution to suspend the $2.00 recording fee for a term of 3 years, effective October 2022.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Real Estate Fraud Committee
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The Real Estate Fraud Prosecution Trust fund beginning balance as of July 1, 2024 was $515,087.73. The FY 2024-25 interest accrued totals $19,558.15, leaving an unadjusted ending balance of $534,645.88 as of June 30, 2025. The total FY 2024-25 investigation and prosecution expenditures for the Real Estate Fraud Program are billable at $137,921. Following the transfer of expenditures from the Real Estate Fraud Prosecution Fund to the District Attorney’s Office, the FY 2024-25 ending fund balance will be $396,724.88. There is no impact to Net County Cost for this program.
The Real Estate recording fee of $2.00 will continue to be suspended through September 30, 2026 or until otherwise noted.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon approval, Clerk of the Board to provide one copy of the executed resolution to the CAO Central Fiscal Unit; Attn: Justene Cline.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Vern Pierson, District Attorney