Former Beverly Hills appraiser sentenced in real estate fraud ring

A Beverly Hills real estate appraiser was sentenced to 3 years in federal prison for “inflated appraisals” (used for real estate loans). The multi-million dollar real estate fraud led to jury criminal convictions for loan fraud, bank fraud and conspiracy.

The same evidence which supported the criminal convictions may support an Investor’s “theft loss” deduction for damages (determined under state law).
 
Taxpayers, who have been defrauded, may be eligible for a tax loss deduction for their fraud damages if the fraud is considered theft under their state’s law (see Gerstell v. Commr. 46 T.C. 161 (1966)).

Please see Former Beverly Hills appraiser sentenced in real estate fraud ring by Nathan Olivarez-Giles, Los Angeles Times, January 30, 2010.

February 2, 2010 | Filed Under real estate 

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