Costa Rica Real Estate Fraud
Real Estate fraud plagues Costa Rica with the announcement that police arrested four persons in connection with a $50 million dollar Real Estate fraud. According to numerous news sources the four arrested are lawyers and notaries. In Costa Rica all notaries have to be licensed attorneys. The paperwork that routinely passes through National Registry must be notarized. Since most land purchases are purchased in a Costa Rica Corporation. Generally, attorneys are given power of attorneys over the transactions. In contrast to the United States, a notary cannot notarize a negotiable instrument or conveyance to which he is a party. Here that is not the case. With that kind of power, it is easy and tempting to do something less than honest or correct. In this particular case according to the news source, the victim is an elderly German woman who appears to have lost ownership of her properties in southern Costa Rica due to inappropriate paperwork. Although the accused have yet to be identified the police are saying that have arrested a 61-year-old woman and a 65-year-old man in Alajuelita.
Also arrested were a 37-year-old woman in Cartago and a 60-year-old man in Coronado. According to police documents the crimes allegedly happened between 2010 and 2012.
The two persons arrested in Alajuelita are also notaries but are not active now. The pair is charged with improperly administering the woman’s property in Punta Uva and Bahía Ballena, which is located in the southwestern area of the country. According to police documents, both had access to $5 million in cash.
The suspects that were arrested lived in Cartago and Coronado and are active notaries. Police said that they assisted in the creation of 19 corporations that play a role in the fraud. Police alleged that the suspects tricked the elderly woman into signing papers so that she lost the properties.
Agents also reported that when they searched the offices of the suspects they found two unregistered pistols.