$10 Billion in Fraudulent Flips

The Sarasota Herald-Tribune launched a six-day series and interactive online package looking at how flipping houses led to inflated prices and $450 million in defaulted mortgage loans. Using public records to get mortgage filings and deeds, the paper concluded that the fraudulent flip transactions totaled about $10 billion.

Investigative reporter Matthew Doig said the story started when a county property appraiser analysis showed frequent sales of certain properties as well as repeat buyers and sellers. And Michael Braga’s experience covering real estate helped them see the connections between the parties.

“He has a ‘Rain Man’ quality with a memory that serves him well. He knows all the players,” Doig said.

The paper also created its own database of 19 million property sales records dating to January 2000. The paper’s Web site provides details about the reporters’ calculations.

Today’s Tip: Public records searches can shed light on business connections because sometimes companies use several names for various partnerships.

The Florida Division of Corporations’ Sunbiz Web site helped the Herald-Tribune connect the flippers. To get started on your own investigation, check out this toolbox from the Society of Professional Journalists that lists several online options for accessing public records.