Category: In the News

On the heels of the Philly Fiasco, property thieves in Texas have gone from the ridiculous to the preposterous.

A Texas man has allegedly been performing deed fraud from prison, where they are currently serving 10 years on deed fraud they committed before they went to prison.

How Easy is It?

We took a closer look and found that it’s too easy and no one has wanted to take any responsibility to ensure the records are correct.

The division of Property Records says that it is not their duty. They claim that without a significant increase in staffing and funding that trying to stop fraud would bring the home buying process to a standstill.

There’s no way for us… to determine if it’s a clean deed or a dirty deed.

Dallas County Clerk John Warren

So, who does not pass the buck? Everyone is trying to put the blame on title companies, but title companies can only go on public records. If the records are wrong, it stands to reason the title search will be wrong as well.

How did This Happen?

Shell companies, forged documents, paying off homeless people, others claiming they were duped, and truthfully, who knows what else at this time.

The 23 year old offender said it was simple, after they pled guilty to 25 counts of theft.

But, according to officials, that has not stopped them. They are now alleged to have done at least nine more fraudulent closings behind bars.

They have been alleged to mail fraudulent titles from jail to the County Records Office. We understand that people do need to get documents notarized while they are in prison.

But, maybe we might want to give these documents a little more scrutiny?

Will Emerging Technology Like RON and the Blockchain Fix This?

No. No it won’t.

There are several startups claiming that digital nature will provide more security, and the new tech super system, the blockchain will prevent cases of fraud.

Don’t fall for the hype.

As we reported earlier this year, at least one RON signing was used to steal a home in Philly. We mentioned inherent security flaws in remote online signings, but did not go into depth. We won’t here either, but expect an article on it soon.

In the short term, remote notarizations are likely to lead to more fraud. What is going on off camera can be more important than what is recorded on the webcam. We are hearing about facial recognition and all kinds of things to validate ID. These are not ready now. They are a hope to prevent fraud down the road.

And they may not even be good ones.

What About the Blockchain?

The blockchain, made famous by Bitcoin, and the web’s new data security savior. It is alleged that it cannot be broken, it cannot be used to commit fraud, and it preserves all records in a way to allow complete accounting until the end of time.

In other words, it is the Harry Potter of computing.

The problem cities and states are having is because of bad records. In computing they have a saying, bad data in, bad data out. The government already stores records, many being publicly available.

These fraudulent sales are only being caught after the fact. How will the blockchain prevent that?

There is nothing in the blockchain to prevent bad records from being added. Just to prevent editing those records after the fact. You know, like the publicly recorded documents already do. The ones that are providing evidence to law enforcement to make these arrests.

Another touted feature is real time analytics, to spot people doing a lot of purchasing. But, many investors already buy each home under a different company name or trust, so the question is a lot harder to answer than simply searching for names.

And the accused had no problem using bank officials to back stop the fraud. Under what system is a real estate document signed by a mortgage official going to raise a red flag? Even if it is forged.

There are a lot of great things about the blockchain, but it is most likely not the panacea that we have been hearing about.

The Feds Are Fed Up

Though no specifics have been revealed, federal law enforcement agencies are putting together a task force to help stop the acts.

Federal and local law enforcement agencies across the county will work together to investigate these cases more thoroughly and more quickly, stopping the damage earlier, cutting off these schemes, and hauling these criminals out into the daylight. We will also identify solutions to make it harder to cheat the system, to protect future would-be victims.

Dallas County Assistant District Attorney Phillip Clark

Where Do We Go from Here?

The fact is notaries are getting tied up in all of this. From Philly to Kansas City, to Texas and probably beyond.

Some are completely fraudulent and some notaries claim they were duped. But either way, the real ones are getting caught in the middle, and even being on the periphery of a criminal allegation can be enough drive you up a wall or damage your reputation.

That is one reason we do our best not to name names. The fact is that reputable notary names, as well as companies are being throw around.

So, where do we go from here?

Maybe it is time that you make sure your local representative(s) hear what you have to say about how to improve the system.

After all, no one has more experience and knowledge on this topic than you do.

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Supporters of RON in Florida have overseen the passing of a bill legalizing remote online notarizations in the state. Governor Ron DeSantis signed the bill into law, which is scheduled to take effect on January 1st, 2020.

Florida has become the next state to institute remote online notarizations, which now number in the twenties.

Notaries Will Bear the Cost

The days of being a notary in Florida just got more expensive.

Notaries must provide audio and video of the notarial act and post execution document record. On top of that, notaries must pay a comprehensive vendor security system.

Notaries will be required to keep all audio and video data for a minimum of five years.

This is kind of onerous considering one of the main drivers behind RON are banks and real estate companies, who are looking to drive down the prices they pay to do closings.

Technology, Technology, Technology

• Comprehensive vendor security system.
• 3rd parties to make notaries ask signers personal questions that only they, and the third party service, are only supposed to know
• Facial Recognition Services
• Data Security
• Secure Online Seal

We could keep going, but will spare you.

The bill is touted to make things easier for consumers, but who is to bear the cost of paying for all of this technology.

Do you know the price to store five years of video, with multiple backups in different secure locations?

It is hard to see from where we are sitting at, how you can attempt to reduce the cost of signings, while at the same time making each signing more expensive for the notary or business.

It just does not work that way.

New Notary Requirements

There is a rather logical new notary requirement under the new law. Notaries will now have to use two separate certificates. One for in person signings and one for remote online notarizations.

You can continue to to procure or create your certificates as you do now. The state of Florida has a template on its site, that you can use as a guideline, even if you have to make a minor update or two.

The Inevitable Blowback

Where do we start.

• Convenience stores and others that do low cost signings.
• Individuals (and we love you for it) who perform signings for those most in need, be if for a low cost or free.
• Diversity of notaries available to you locally.
• Is this really going to make $10 signings cheaper?

The fact is, we could write an entire article on just this point.

Like we keep saying, intentions do not matter if you do not have the knowledge, means and will of properly executing those intentions.

Will It Really Work as Intended?

Will this really make it easier for the average Joe, after all the local stores who notarized documents have stopped because they are money losers?

How about many who were able to eat the cost and help people who really needed it? Will they be able to continue when the costs to help people rise?

There may not be as many as in years past, but what about those who do not have easy access to the internet?

Will this really make signings cheaper? Or will it only make a handful cheaper while driving up the cost of others?

How will the cost of new required technology be integrated into the cost of notarial acts?

One small step for RON, one giant bag of questions for the rest of us.

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Perfection is required. So is being there for many of a person’s most important days. Even though they don’t always realize it, you have their back when they need it most.

So, get out the kazoos and give yourself your best self high five. And if you see any other notaries today, give them one, too.

You work in an ancient profession that is still just as important today as it was 5,000 years before the first known language called cuneiform.

A profession that continues to evolve, from ancient mud pieces called tokens, to rubber stamps and fax backs and into a digital future and beyond.

So, think about giving a thumbs up when you see a green light today, because without notaries many vital functions in our lives and in our economy would stop in their tracks.

Or maybe don a top hat like the Monopoly guy, as without you, too many people would not get to pass go and would not get their $200. Because we all know you can’t close on Baltic Ave. without a proper notary public.

Jump to the sky. Eat some cake. Enjoy your favorite beverage. Tell your family you expect breakfast in bed … and a foot rub. Make your dog walk you for a change.

And if you feel like dancing? It’s the perfect time of the year to break out the Ickey Shuffle. Just don’t twerk. You’ll thank us later.

So, today, November 7th, feel free to walk with a little pep in your step because you are a notary. You make sure that our most important moments are set properly in stone. And you do it every day.

And some of you do it 24 hours a day, and you’ll be there in less than four hours, even in rural areas.

You are the real MVPs.

So, from Sunshine Signing to you, have a very happy Notary Public Day.

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Philadelphia has announced a crackdown on house thefts. Yes, you did read that right, and if you are a regular reader here, you already know what we are talking about.

But, that doesn’t mean it still doesn’t sound ridiculous.

We first reported on a story we called the Philly Fiasco in March of this year. Con artists and forgers figured a way to defeat the system in Philly, resulting in the theft of several dozen houses, and a huge black eye for the city.

The scandal even went international when some of the accused fled the country. One of them was even able to forge documents from a foreign country.

And really, who can get the mortgage or owned home straight out from under their feet, with little to no recourse.

A Series of SafeGuards

Mayor Jim Kenney, in rolling out the measures at City Hall, called deed fraud a “terrible crime” that all too often victimizes the city’s poorest residents, who can least afford the up to $10,000 in legal costs to attempt to win back properties they owned or inherited.

Philadelphia Inquirer

Who can’t agree with that?

But, the sad fact? The scandal has continued unabated since the last time we wrote about it. If anything, it has become more hectic, with reports that even house thieves are stealing homes from other house thieves.

And the worst part? (all parts of this are bad) Victims and their advocates are saying their calls are still being ignored by police, who seem overwhelmed by the crisis.

So How Do They Plan to Stop It?

Officials have started by rolling out a program they are calling Fraud Guard, which creates a database of home owners, alerting them whenever their name is used in a deed or mortgage.

It is a optional service that a homeowner, notary or real estate professionals can sign up for.

The system is also supposed to use advanced analytics to spot patterns in real estate purchases that may point to fraud. That claim is probably exaggerated. These types of systems do not have a great history, and to get right, will probably need years and years of updated programming.

Will Fraud Guard Help Philly Homeowners?

We hope so, but we have a hard time believing it. And we are going to list some reasons:

• It is an optional, you must sign up for it system.
• It is done online, and only contacts you through email.
• It does not have enough safe guards to ensure accuracy.

And thoughts on that:

• How will vulnerable homeowners know?
• Aren’t the people most likely to be affected by this the least able to participate?
• 20% of Philly households have no internet service.
• Dead people don’t check their email.
• A decent percentage of these homeowners were duped in person into signing documents. Is an email going to help at that point?
• How is possibly catching fraud after it happens going to fix this?
• How will they ensure accuracy. Let’s look at their disclaimer.

Neither Tyler Technologies nor the county that provides the information makes any representation or warranty regarding the accuracy, legality, or completeness of the services.

Assessing the accuracy and reliability of the materials is the responsibility of the user.

So, they won’t guarantee it is accurate, and it is up to the end user to assess the accuracy of the information.

That is not exactly a paragon of confidence.

Some words from the quote were omitted for brevity. They have zero impact as to the accuracy of the quote, and in no way change the context of it. You can see the full terms here.

Should Notaries Sign up for Fraud Guard?

That is something that you will need to decide for yourself.

Being an early signer might be good. It might be good for your records or accounting receiving an email that a document you signed has been filed.

Waiting a little might be an option. While we laud the intention of the program, it is the execution of those intentions that is most important.

And maybe, you don’t want to be on another service, or you don’t want to get more emails (don’t we all feel that way sometimes). Or you don’t believe in the execution of the system.

They are all valid reasons.

The only other point we’d make is how an investigation will play out. Will notaries come under investigation for no reason because they performed several legal signings for a party?

Of note here, it that rhetoric is going against property wholesalers. While these sales are completely legal, politicians are calling them unethical. So it is possible there are some future intentions there as well.

A Continued Black Eye for Philly

Public confidence in local government in Philadelphia has taken a hit over this fiasco. And by extension, so has our industry, even if most documents were forged.

This is a failure of government. Not of notaries.

All we can do is continue to do signings in a proper manner, keep meticulous records, and ensure all of our signings are done in a professional and legal manner.

In other words, do our jobs like we always do.

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As we explained in our last article, Remote Online Notarization (RON) is here to stay, and at this point notaries need to be ready for it, if not making sure notary voices are heard.

So, what can a notary do at this stage, to protect their interests?

Understand What Proponents of RON Want

Now, we can’t say everyone who is in favor of RON sees the same vision, but for all intents and purposes, it’s all about about money.

There are those who want to save a significant amount of money on signings, to those behind new technology and the money behind them, and even some in the industry itself.

They all either want to save money or make money.

Whether it is diluting the costs of signing, carving out part of the industry for themselves, or even selling products or services to those in the industry.

It’s About Money for Mobile Notaries (and Static), Too

It’s simple. Businesses run on money. It is the gasoline that powers our economic engine. And the gasoline price keeps rising, which is just a cost of business, unfortunately.

Supplying, protecting, diversifying, and growing our business all require money.

Fortunately, those with more experience tend to make better decisions. And that is what you have. Knowledge gained by experience. Established contacts in the industry. And so much more.

The American Dream

You are living the American Dream right now, and just like everyone that lives it, you don’t want to give it up.

You decided to forgo normal employment and start your own business. Which was probably a little scary, but was also a huge rush. And you haven’t only made it work, you have thrived, or are in the process of thriving.

You’ve already beaten the odds.

Where else can you start with a dream, start a business on your back porch, and grow into a business with dozens of full time employees? One who does business with tens of thousands of contractors and clients each year, and so many other businesses.

As the famous comedian Yakov Smirnoff used to say: “What a Country!”.

You are Already Ready

It’s not just RON, entrepreneurs who have thrived have to prepare themselves for all kinds of things. Expenses, competition, regulations, record keeping and a lot more.

RON is a new challenge, but you’ve already excelled and remote online notarization is just another bump in the road.

Find Those with Similar Concerns

You all know others in the mobile notary industry. Heck, some of them are probably your competition right now. But, sometimes what is good for us is also good for our competition. And the same things could be said about the other people you know, that are not your immediate competition.

Talk, debate ideas and make and prepare a formal plan. Just because you may not have been able to stop RON (California notaries have!), does not mean regulations going forward cannot ensure current notaries are protected.

But, if you can not present legitimate reasons to your local state lawmakers, and maybe even policy guidelines that are largely aligned nationally, it will be hard for them to join your cause.

Remember, “United we Stand, Divided we Fall”.

• Part 1: Remote Online Notarization (RON) and the Mobile Notary
• Part 2: You are Reading
• Part 3: How Will Signings Be Performed Under Remote Online Notarization (RON)?
• Part 4: Real ID, the Notary, and RON

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We’ve all heard of Bitcoin and new cryptocurrencies.

We may not understand what bitcoin is, how it works, or why people would use it. But, we’ve heard of it. If we’ve been paying attention, we would know that everyone and their grandmother are creating their own crypto currencies.

Isn’t Bitcoin a Bit Shady?

In short, yes.

While there are many benefits to currencies like bitcoin, they are also used for nefarious reasons and to evade the law. The “anonymous” nature of the transactions allows, if not encourages it.

Also, the fluctuation of the currency is massive.

Why? Because the currency attracts a lot of the wrong people looking to clean their cash. Even worse, that same technology has attracted a lot of venture capitalists, who can use their massive investments to manipulate the prices and make themselves billions of dollars.

Look at it this way. Bitcoin is like the New York Stock Exchange without any rules. And large investors, often working together, use that to their advantage to manipulate bitcoin prices, making themselves millions and leaving others invested in the currency in the lurch.

What do Notaries Have to Do with Bitcoin?

Remember when we said people use bitcoin to skirt the law?

They are now using it to circumvent notary laws, avoid taxes and other legal responsibilities under the law.

Documents and transactions that are required to be notarized, are now being pushed through the bitcoin network, allowing users to make their industries the wild west once more.

Can I get a Current Example?

There is a shortage of coffee in the world right now, causing a crisis in the market, and sending prices for a cup of joe and other caffeinated products up.

But, is there really a crisis?

If you read the news, it is black and white. In reality, there is a whole bunch of gray there. The answer might just lie in how coffee is being traded.

Coffee producers are manipulating the market, using bitcoin as their weapon of choice, saving themselves money, evading notary law, and secretly filling orders that make it look like the market is short a whole bunch of coffee.

That is not to say definitively that there is not less coffee beans this season. As we said, there is a whole bunch of gray here. But, bitcoin and other cryptocurrencies are exacerbating the problem.

Small Farmers Start to Drive up Profits and Prices

Let’s start by saying we have no problems with small farmers. Most are paid a pittance of a wage for a job that is very rough on the body. So, seeing a situation where they make more money, how can we argue with that?

But, we do have a problem.

The coffee growers and their buyers are evading tax law, notarial law and regulations by selling in cryptocurrency. They make more money than if they went to market, and the buyer gets a better deal than on the open market.

Sounds like a Win-Win.

We love Win-Wins, except when the notaries are adversely affected or pushed out of the process.

Like we said the buyers and sellers are avoiding notary requirements. They are not just earning more for themselves, they are putting notaries out of business.

So, Would We Call That an Attack on Notaries?

Of course it is.

Notaries might just be caught in the crossfire now, but if current trends continue, notaries might just be pushed out of the process. What is now transparent will go dark, and eventually the public will suffer for it.

If allowed to continue this is going to affect a lot more than coffee beans. It very well could be a scourge across industries and push those who bring accountability to the market fewer opportunities.

And while that may be a good thing for bitcoin (inside bitcoin joke), it probably won’t be a good thing for notaries, whether they sign for individuals, large companies, or both.

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We were reviewing the blog and most of the recent stories have been downers, so we thought it was time to lighten the mood.

This story comes from our friends on our northern border, Canada.

So Who Is This Notary?

This notary is 33 year old Andrew Swidzinski. About a year ago he contracted a very rare disease, which has left him in really bad shape.

He was put on a ventilator for six months.

Despite the debilitating ordeal, Swidzinski has steadfastly remained engaged — from the confines of his hospital bed — in a feisty citizens-led movement to halt the demolition of the Pioneer bar and preserve the heritage of the iconic Pointe-Claire Village.

Montreal Gazette

One Brave and Relentless Notary

When Swidzinski was at his most dire, he still continued his activism.

Despite being partially paralyzed, nothing was going to stop him. He still was able to write a rousing letter, that his mother delivered at an appeal meeting. The speech was met with a standing ovation from people on both sides of the issue.

I wrote that with the one hand, when I didn’t have the ability to talk because there was a period where I was not able to talk or swallow,” Swidzinski recounted.

It took five hours because I could only write for so long.

Montreal Gazette

Despite still living in the hospital, Swidnzinki remains an ardent member of his activist group, SSPPC, where he remains vice president.

While the group told him to rest and focus on himself, Swidzinski refused, saying that this is his life calling, and he would see it through to the end.

The ordeal has lasted since last August and Swidzinski is concerned he will never be able to able to resume his notarial duties.

But, after all this, we wouldn’t bet against him. What a way to set him apart from the pack.

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Can one person really get multiple notary stamps under different names?

More to the point. Can someone who has DID (dissociative identity disorder), more commonly known as multiple personality disorder, have multiple notary stamps for their different personalities.

Is This a Joke?

Unfortunately, no.

Although, it is probably worse than a joke. Worse because it is being used as a defense to an alleged infraction.

If you’ve watched more than an episode or two of Law and Order, you realize that there are a lot of wacky defenses out there, even if the show itself is fiction.

And That is a Defense in Court?

They can try.

Maybe they do have multiple identities. Maybe they are just delusional. Or maybe they are just throwing stuff at the wall to see what sticks.

And how does one navigate between an actual disorder and the television portrayal that makes people misunderstand what the disorder really is?

Maybe the other personality goes on an extended vacation.

Why Would Someone Do This?

Corruption is a strong drug. Just like a problem gambler, every time you do it you get a rush. And soon you are shoulders deep chasing that original feeling.

And, so when your house of cards comes crashing down, you are more than willing to do whatever it takes to retain your previous lifestyle.

So, it This Legit?

We would not recommend trying it, okay?

And we fully expect the judge to toss it right out the door. There is no precedent for one person to obtain multiple notary commissions under multiple names, even under the extraordinary circumstances outlined so far.

Assuming the alleged is telling the truth (we don’t buy it).

Are There Further Implications?

Besides the part where someone is going to take a long vacation at taxpayer expense?

We would say maybe this is one condition that should be looked farther into.

With Seriousness.

Thankfully, it’s a one in a million possibility. But, if someone does have a second personality that takes over, or experiences lack of consciousness with no memory, should they be able to hold a stamp?

These people are not allowed to drive and many are subject to six month medical examinations if and when they do get their license.

The same rules apply to someone who has certain types of epilepsy.

So their career as a mobile notary is over. They would have to consider doing remote online signings.

Moreover, if someone can perform signings, but cannot remember doing so, and therefore cannot personally attest to the document’s provenance, should they be signing documents?

Again, thankfully this is the edge case of all edge cases. We are talking about something that wouldn’t impact more than a handful of notaries. The vast majority of people with this disorder are able to live full and happy lives.

Again, it’s not television and these are real people. It’s not up for us to decide (it never is).

But, we find questions where others see something unrelated. And saying you had multiple personalities that all wanted their own notary license, well most people see someone trying to game the system.

We see someone that allegedly took advantage of some of the most vulnerable among us. And has done so brazenly.

But, we also see past the story, to the question or questions that the story may raise. And that is, if a person has a bad case of one of a few disorders (very rare), is it proper to let them sign documents?

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