NCJ Number
47134
Date Published
1978
Length
18 pages
Annotation
THE BOOM PERIOD FOR ARIZONA LAND INVESTMENT IS EXAMINED IN LIGHT OF REVELATIONS OF LAND-SALE FRAUD AND OTHER UNETHICAL REAL ESTATE PRACTICES.
Abstract
DURING THE PAST TWO DECADES ARIZONA HAS EXPERIENCED A LAND BOOM. ONE FACTOR BEHIND THE BOOM WAS A SCARCITY PSYCHOLOGY. PRIVATE LAND AND WATER ARE NOT ABUNDANT IN ARIZONA; IF A DEVELOPER PROMISED CLEAR TITLE AND WATER IT WAS NOT DIFFICULT TO CONVINCE PROSPECTIVE BUYERS TO ACT FAST, A KEY TO MOST FRAUD ACTIONS. IT WAS RELATIVELY EASY AND INEXPENSIVE TO BUY UP PARCELS OF DESERT OR MARGINAL HIGH COUNTRY AND PRINT ATTRACTIVE BROCHURES PROMISING THE DEVELOPMENT OF A RETIREMENT OR RECREATIONAL COMMUNITY. THE LAND-FRAUD PHENOMENON OPERATED FOR NEARLY 15 YEARS. THE PRACTICES OF MANY DEVELOPERS VARIED FROM SIMPLE MISREPRESENTATION TO CLEAR-CUT FRAUD IN THE SALE OF SECURITIES. THESE PRACTICES MAY BE CLASSIFIED WITHIN SIX CATEGORIES: (1) DECEPTIVE SALES TECHNIQUES; (2) DELAY OR DEFAULT ON DEVELOPMENT PROMISES; (3) SALE OF UNOWNED LAND; (4) MULTIPLE SALE OF THE SAME PROPERTY; (5) SELLING BUYER CONTRACTS OR MORTGAGES WITH INTENT TO DEFRAUD; AND (6) THE PROLIFERATION OF COMPANIES TO TAKE ADVANTAGE OF THE HUGE PROFITS. IN THE MIDDLE 1970'S THE ECONOMY SLUMPED BADLY AND LAND OWNERS WERE EITHER READY TO BUILD OR RESELL. THIS LED TO A GRADUAL REALIZATION OF THE EXTENT OF BOOM-RELATED CRIMINAL ACTIVITY. THE VIOLENT DEATH OF SEVERAL LAND-FRAUD FIGURES AND THE MURDER OF AN INVESTIGATIVE REPORTER MARKED THE END OF THE LAND BOOM IN THE REGION AND LED TO THE UNCOVERING OF DOCUMENTATION OF THE SCOPE OF THE CRIMINAL PRACTICES. THE INTRICATE NATURE OF LAND FRAUD IS EXPLORED AS IS THAT OF THE LAND DEVELOPMENT BUSINESS ITSELF. THE CONTROL, COMPLICITY, AND CORRUPTION OF REGULATORY AGENCIES IS ALSO EXAMINED. REFERENCES ARE PROVIDED. (KBL)