In the high-stakes world of real estate and investment partnerships, fraud is an unfortunate reality that can wreak havoc on your finances and reputation. Whether you’re a passive investor, a co-GP, a Syndicator or Fund Manager, safeguarding your investment against fraudulent activity is crucial. Join Attorney Kim Lisa Taylor as she interviews Marc Hurwitz of Crossroads Investigations about his extensive expertise in fraud prevention and resolution. Crossroads is uniquely positioned to help you navigate these challenges. 

Summary:

This podcast episode of Raise Capital Legally features a discussion on protecting investments from fraud, particularly in real estate syndication. Hosted by Krisha Young and attorney Kim Lisa Taylor, the episode features Marc Hurwitz from Crossroads Investigations. Marc, a former CIA officer, discusses various types of fraud prevalent in real estate investments, including partner fraud, email scams, and international investment risks. He emphasizes the importance of thorough background checks, due diligence, and using proper investigative methods. The conversation covers topics such as the 'triangle of fraud', the significance of using unrelated individuals for financial controls, and the challenges of verifying foreign investors. Marc details Crossroads' services, including comprehensive background checks starting at $500, and more in-depth investigations at $350/hour. The episode also addresses how to respond to suspected fraud and the importance of documenting communications. The discussion concludes with practical advice on protecting investments and ensuring proper due diligence.

Chapters: 

Introduction to Crossroads Investigations and Fraud Prevention (00:00:02)

Marc Hurwitz introduces Crossroads Investigations, based in Miami, founded in 2008. He shares his background as a former CIA officer and explains the company's comprehensive investigative services, including asset searches, background checks, employee screening, and international research.

Common Types of Fraud in Real Estate Investments (00:03:42)

Marc discusses various fraud schemes, including partners taking money and disappearing, email impersonation scams, and sophisticated methods used by fraudsters to hide their tracks, such as using crypto and anonymous LLCs.

Understanding the Triangle of Fraud (00:06:44)

Kim explains the triangle of fraud concept, detailing how access, unshareable need, and justification create a pathway for fraudulent behavior. She shares a case study illustrating how small thefts can escalate into larger fraud schemes.

Importance of Background Checks and Due Diligence (00:14:50)

Marc emphasizes the necessity of thorough background checks, including bad actor checks for syndication partners. He discusses the importance of context in evaluating past criminal records and financial issues.

International Investment Risks and Due Diligence (00:26:03)

Marc explains how Crossroads conducts background checks on foreign investors, including checking US federal databases and using local agents for manual records checks in other countries.

Responding to Suspected Fraud (00:35:43)

Marc outlines steps to take if fraud is suspected, including documenting communications, knowing which law enforcement agency to contact, and considering legal guidance for reporting.

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