The News 3 Investigative Team continues to dig into how the hot housing market is causing some criminals to prey on victims looking to rent.
Since the start of our investigation, we've uncovered more and more cases.
Investigative Reporter Margaret Kavanagh learned first-hand just how big this problem is after she put her home up for rent.
Investigations
How to protect yourself from fake online rentals in Hampton Roads
She tracked down the person illegally posting the home on Craigslist back in July over the phone.
Recently, she spoke to Portsmouth resident Richard Hardy, a man convicted of mail fraud for his role in a scheme that spanned across the entire country.
Hardy pleaded guilty and is waiting to be sentenced.
Court records outline how 19 victims from all over the country lost over $87,000 in total over a two-year period.
They were victims of romance and real estate schemes, and several were trying to rent homes in different states, according to federal court records.
Hardy said people online also took advantage of him as well.
“Hindsight is 20/20. If I would’ve known, I wouldn’t have gotten involved with these individuals,” said Hardy.
He said it all started a few years ago when he was contacted by four women online claiming to work in the real estate industry. He said he thought these connections were romantic at first.
He said they asked for his help after they placed ads online.
Hardy explained that the women got people to send money, or money orders, to his address and he followed the instructions, cashed the money orders and sent the money to Bitcoin.
“That’s how the scam worked,” said Hardy.
Hardy claims he was trying to help the women and he didn't know it was illegal.
He said he realized there were problems when law enforcement raided his home.
He said he would make between one and ten percent of the various money orders being sent to him.
“I put my trust in those individuals, and I shouldn’t of. At the time, I just couldn't see it until it was too late,” said Hardy.
He said he felt sorry for the victims but wished they would have done his due diligence before sending money.
He said he too should have been more careful. “I shouldn't have enabled these individuals, but I was going through some emotional distress at the time and lost my way,” said Hardy.
The News 3 Investigative Team continues to find more rental fraud throughout the region.
In two separate cases in Newport News, two people told police they sent money through CashApp for a property that wasn’t for rent.
Police said they are still investigating and no one has been arrested.
The FBI reported a spike in these kinds of scams in 2022.
News 3 previously spoke to Chesapeake police about these issues back in July.
Chesapeake Police Department Detective Douglas Hatcher said, “It’s a crime that they can get a lot of money in a little amount of time.”
Frustration is felt by many people as this problem continues to grow, especially for those who work legitimately in the real estate world, including Christian Phillips, the principal broker and owner at Inlet Realty and Property Management.
“It is rampant out there,” said Phillips.
He said one of the most prevalent scams that they have seen is when somebody hijacks one of their legitimate listings and posts it on another website like Craigslist.
He said he’s also seen fraudsters prey on those with bad credit, who have trouble getting approved.
He said they promise to help those with bad credit by giving them false hope saying they can get the person approved.
But he said the criminal will apply for the house for the person with bad credit by using a stolen identity on the application.
“Without even knowing it you’re thinking you’re getting legitimate help, but what you’re doing is hiring a criminal to commit fraud on your behalf,” said Phillips.
He said it’s heartbreaking to see people taken advantage of.
“Everybody deserves a place to live,” said Phillips, “I hate seeing innocent people getting scammed like this and I try to do everything I can to prevent it.”
As for Hardy, he has a warning to others.
“If someone approaches you online pretending to be a realtor and they are having difficulty cause they can’t accept the payment but they want you to accept the payment, that is a red flag and I wish I would have paid attention to that and I didn't,” said Hardy.
For information from the FBI on how to protect yourself, click here.
