Lewisville man arrested in reported home-buying fraud scheme
DENTON (CBSNewsTexas.com) - A Lewisville man is in jail for allegedly creating fake financial records in an attempt to buy multiple homes in Denton County in what detectives describe as a years-long scheme.
Charles Roe, 63, was charged with forgery of a financial instrument and false statement to obtain property or credit for a value more than $300,000.
Flower Mound police arrested him last week.
Court documents detail an alleged pattern of fraud for at least seven different home purchases, accusing Roe of "…using the same tactic of being a cash buyer, providing fictitious bank documentation to entice sellers, failing to deliver earnest money & closing funds, and constantly making excuses to delay closing, only to never close; therefore causing financial harm to the sellers."
In a hot real estate market, cash offers tend to rise to the top.
"So in this case, we have a fake cash offer that was never going to close," said veteran realtor Jay Marks. "Meanwhile, that seller probably missed out on a well-meaning, well-intentioned financing offer, and then when they go back and call them, that person may have already bought another house and that seller lost out."
According to Marks, there are several victims in each transaction who lost time and money.
"Not only real estate agents," he said. "Home sellers, title clerks, anyone that got involved and did work on this."
Marks says he was one of the realtors who fell for Roe's alleged home-buying scheme back in 2020.
"I'm a 30-year agent and we were fooled," said Marks. "We had proof of funds. We actually had a bank statement from a bank that looked real. Everything was checking boxes right down the line, until we got under contract."
That's when Marks said Roe failed to deposit earnest money and started making excuses. Marks suspected something was wrong and recommended the seller terminate the contract.
The biggest question is why Roe allegedly did this over several years and in multiple deals.
"Why in the world would someone do this?," he said. "Are they trying to obtain a property fraudulently? Are they trying to catch someone in a mistake? Are they trying to take advantage of someone's insurance? I don't know. It makes no sense. It's a mystery."
In the affidavit for Roe's arrest, the detective said, "it is my belief [Roe and his wife] never had the intent to follow through with the complete purchase of these residences."
According to Flower Mound police, after the detective interviewed Roe's wife, it was determined she was not involved in the scheme.
Roe didn't gain anything financially through the transactions described in the court documents.
The detective went on to say Roe's actions were responsible for "…ultimately causing the seller to be defrauded and suffer various means of financial harm in regards to his residence."
Roe could face additional charges as the investigation continues, according to Flower Mound police, since detectives believe this wasn't an isolated incident.
Since Roe's arrest, police say at least one other alleged victim has come forward.
"We're hoping that anyone who sees this and recognizes the name, if they were entered into a contract and the buyer just disappeared or didn't perform, please let the police know," said Marks.
Marks says what happened should serve as a warning to both homeowners and realtors who are trying to close deals as fast as possible in a tight market.
"Take your time, slow down, verify everything," he said. "I think to the real estate professionals out there, the very minute someone steps out of contract – cancel the deal."
CBS News Texas did reach out to Roe by phone and through email for comment on the allegations but were unable to reach him.