EXCALIBUR - Private Investigation Blog - EXCALIBUR PRIVATE INVESTIGATION

THE HOLLYWOOD CON

11/28/2022

Zach Horowitz Con Man investigation

Colorado Springs, Colorado

Having worked more white collar fraud cases than I can count, I'm always intrigued that new con men are able to convince people to part with hard earned money. The one common denominator that I've found is present in every one of these cases are the "friends and family" hook. The guy above, Zach Horowitz, also known as Zach Avery, used that hook to scam money from a variety of people under the guise that he was buying the rights to movies and then leasing those rights to HBO, Netflix, primarily, and other streaming services. Needless to say none of these services had ever heard of the guy which a little due diligence on the part of the victims could have figured that out early in the con. This guy ran a typical Ponzi scheme that caught up with him as all Ponzi schemes do.

What is a Ponzi scheme? The dictionary defines a Ponzi scheme as:

"a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors".

Once Zach Horowitz got those first investors on board, all family and friends, promising returns of 42% after 9 months (a red flag if I've ever seen one), he would repay the initial investors with money coming in from new investors. I'm always bewildered that people think there are investments that pay 42%, or more, in a short period of time with no risk. In the end over $600 million was scammed in this Ponzi scheme with some $200 million still unaccounted for.

Don't think that schemes such as these are ongoing here in Colorado? Don't be too sure. In the last three weeks I've been introduced to individuals, who didn't know my background, pitching investments that are too good to be true and will, ultimately, lead to loss of investment funds. In both instances I gathered as much information as I could about the principles and shared with a local detective I know so that she could be on the lookout for potential victims.

If someone approaches you with an investment that just seems too good to be true, contact me or one of my investigators and let us conduct due diligence on your behalf.

Lee Walters
President
EXCALIBUR Private Investigation
719.208.4088

SKandal! Bringing Down Wirecard

10/22/2022

As someone who's worked literally hundreds of white collar crime fraud cases, bank fraud, wire fraud, con games, you name it, whenever I come across a documentary of that type of crime I'm drawn to it. Often times the documentary doesn't do the investigation justice, but over the last two days I had a chance to watch Skandal! Bringing Down Wirecard on Netflix and it's an excellent treatment of how a long-running, fraudulent business, was a German FinTech darling when it was actually a fraud scheme all along.

I have to admit, I had never heard of Wirecard until watching this but, for those of you not familiar with them as I wasn't, they were selling themselves as the PayPal, Zelle, etc of Europe. Not to give away too much, but there's all kinds of intrigue. Spies, lots of private investigators, at one point the company had 28 PI's on their payroll looking into reporters and others writing negative articles and short selling their stock, and foreign agents from numerous countries.

As with all cons, even people who think there's something fishy going on, will dismiss their doubts under the misguided thinking that this government agency or that government agency is surely monitoring the company. When I hear that I laugh and promptly think of Bernie Madoff and how the Securities and Exchange Commission wqw asleep at the wheel for years. And take my word for it, there are still fraudulent companies operating as we speak even though our investigative agencies, who should be on the lookout for these, seem to be more interested in solving everything but true crime these days.

If you have Netflix I can strongly recommend this one as it will have you on the edge of your seat the entirety of the film.

About to enter into a large investment, partnership, or other business arrangement? Invest a few dollars and have a background investigation completed of all the principles and have some business intelligence conducted to see if everything that's being presented is really as it's being presented. Our Colorado based professional private investigators will either verify what is being presented as true, or save you from making a large financial mistake that could be devastating. We also have a forensic accountant on staff who can dig through those financials to see if they are a true reporting of the financial health of the company. Call us today to discuss your needs.

Lee Walters
President
EXCALIBUR Private Investigation
719.208.4088

Are you Penny Wise and Pound Foolish?

9/22/2022

Colorado Springs Private Investigator Penny Wise Pound Foolish

Many of us have heard the phrase "penny wise and pound foolish", but have you ever thought about it in the context of due diligence? Not to provide a history lesson to everyone, but this phrase has long been attributed to Benjamin Franklin when it was actually coined by Robert Burton in his 1621 work, yes that long ago, The Anatomy of Melancholy.

This phrase popped into my head when reading an article recently about a businessman who lost over $2 million dollars to a con man, for lack of a better term, who had a long history of defrauding his business partners. After the money had been lost, the defrauded businessman hired a professional investigator to see if any of the funds could be recovered, kind of "closing the barn door after the horse has bolted" to quote yet another well known phrase. The professional investigator discovered a trail of previously defrauded business parters this con man had taken to the cleaners over the years and that the $2 million dollars was long gone.

Every time I read a tale of someone losing their hard earned money in a fraudulent scheme, my first thought is "I wonder if they did any due diligence?" In most instances I'd bet good money that they didn't. Otherwise smart business men and women try and save money when a small investment into a due diligence background check by a professional investigator could have found any red flags that exist. In the example above, by spending $3,500, the average cost for a due diligence background investigation, less than 1/4 of 1% of the $2 million lost, the defrauded businessman would still have their $2 million dollars and would have had a lot less sleepless nights that I guarantee they suffered through and probably continue to do so.

Are you in the process of entering into a business deal or other investment of any size and think you can't become a victim of fraud? Think again. Even individuals you may have known for years can be capable of defrauding you. Spend a little time, and money, and reach out to a professional investigator as a trusted adviser to make sure you don't become a victim. My firm and our team of Colorado Springs-based professional investigators have conducted numerous due diligence investigations and would be happy to discuss your needs. Just give us a call or send us a quick email and someone will respond as soon as possible.

Lee Walters
President
EXCALIBUR Private Investigation
Colorado Springs, Colorado
www.excaliburlegalsupport.com
719.208.4088

FAKE ART? FBI CRACKS DOWN ON PRETEND ART DEALER

6/9/2022

Art Crime article and Colorado Springs Private Investigator

As a former member of the FBI's Art Crime Team, I'm always on the lookout for new cases being worked by the team. Recently a Florida gallery owner was arrested on federal charges for peddling fake art pieces, claiming the cheap reproductions were in fact originals by Andy Warhol, Banksy, Roy Lichtenstein, Jean-Michel Basquiat and others, federal prosecutors said.

A complaint filed in South Florida federal court Thursday accused the Palm Beach art dealer Daniel Elie Bouaziz of mail fraud, wire fraud, and money laundering in his alleged scheme to sell forged copies of high-end art.

Bouaziz, a French citizen of Algerian descent, was ordered released on $500,000 bail after an initial hearing Friday. As of Friday he had not yet entered a plea to the charges, according to court records. He's looking at several years of federal prison time, but we'll see what he actually ends up getting. It was my experience that judges didn't see art crime as big of a deal as, say, bank robbery.

Bouaziz sold some of the forged art pieces for hundreds of thousands of dollars apiece, prosecutors said. An FBI criminal affidavit said undercover agents put $22 million down for several of the fake pieces which was a heck of a lot more than anything I've seen spent on an art crime case before. Glad to see there's plenty of money for investigations these days.

Claiming to be an art expert and an official appraiser, Bouaziz appraised the inauthentic artwork he sold to the victims at an increased rate, the FBI affidavit said. In one extreme example, the FBI says Bouaziz bought a Warhol reproduction print for $100 and sold it for $85,000.

He operated two art galleries on Palm Beach's famed Worth Avenue, one of the wealthiest places in the U.S. Con men understand that looking the part is a huge piece of the con if you want it to be successful. Of course he had to lay out funds to open galleries in those high-rent districts, but he knew it was a good investment if he could continue to get away with selling fake pieces of art.

The FBI did not observe a single transaction in his bank accounts in which Bouaziz, or his galleries, purchased high-value artwork, the affidavit says. Bouaziz purchased low-cost reproductions from online auction sites that he then resold to unsuspecting victims, as originals, at drastically increased prices. In an overheated art market there are victims literally lining up to be taken advantage of, all suffering from FOMO (Fear of Missing Out).

For example, an original Andy Warhol painting would likely sell for millions of dollars. Bouaziz, according to the FBI, sold one of Warhol's works called Superman, of which there were several versions, for just $25,000.

"I buy about 200 paintings in auction every year and I guarantee my stuff. I mean I am behind my stuff," Bouaziz said in a conversation recorded by the FBI. "I'm not buying things that everybody has. That's why you don't see them in the other galleries."

The affidavit does not say how many people were victimized. Bouaziz will have a plea hearing on June 15 and no trial date has been set as of yet. Many times victims are too embarrassed to come forward so it will be interesting to see if the government ever gets a true accounting of how many fake pieces were sold.

Lee Walters
President
EXCALIBUR Private Investigation

HELP. SOMEONE STOLE MY IDENTITY!!!

4/12/2022

Identity theft in Colorado

From 2018 - 2020 there were 1.66 million cases of identity fraud reported to authorities. Who knows how many went unreported because the victim was too ashamed or embarrassed to admit they had been a victim of identity fraud. What can the average person do to keep their identities from being stolen? Here's a couple of ideas that we recommend to clients as well as friends and family:

Initiate a freeze on your credit. It's very easy to do and makes it much more of a challenge for a cybercriminal to steal your identity. Each of the three main credit bureaus, Equifax, Experian and TransUnion have information on their main website page that explains how you can place a freeze on your credit. Make sure to place a freeze on your kid's accounts as well as cybercriminals know those accounts are very rarely reviewed by the owners or their parents.

Place fraud alerts on your credit accounts. Anyone can place a fraud alert with the three aforementioned credit bureaus. You only have to place the alert with one of the three and then that credit bureau will instruct the other two to do the same. This will require a business to verify your identity before opening a new line of credit in your name.

Enroll in two-factor authentication. We know this can be a pain, but it's something you should enable on all your accounts when it's presented as an option. With this option, you'll have to enter your credentials and then follow up with a code, usually, that's texted or emailed to your known telephone number or email address.

Review your accounts closely. Even with all of the above in place, you should monitor your credit reports and account statements closely. Don't just throw those unopened statements in a drawer thinking everything is fine and be sure to review your credit reports at least once a year, I recommend quarterly, to make sure nothing is amiss.

With a little precaution you can help ensure that you don't become a victim of identity theft. If you feel like you may have become a victim of identify theft, please give one of our Colorado-based private investigators a call for a free, no-obligation consultation.

Lee Walters
President
EXCALIBUR - Private Investigation

PART VI: REAL ESTATE SCAMS

3/11/2022

Real estate scams investigated by Colorado Springs private investigator

In our newest post on scams, some sobering statistics from the FBI in regards to real estate fraud:

Total financial loss in 2020: $213,196,082

Total United States victims in 2020: 13,638

Yes, you're reading those numbers right. Over $213 million lost to real estate scams in 2020 alone with over 13,500 victims. What type of real estate scams are the most prevalent?

Loan flipping: it's a predatory practice that happens when a lender
convinces a homeowner to repeatedly refinance their mortgage, accruing high
fees and points with each refinance.

Escrow wire fraud: where scammers, many times in other countries, infiltrate a legitimate real estate transaction and cause monies to be wired to accounts they control as if they are the closing company when, in fact, they aren't. Victims have reported that everything looks real, has the right names, numbers, addresses, etc, yet the account number for the wire transfer has been changed. Most victims never receive the lost funds back so this is one everyone should be aware of.

Escrow wire fraud investigated by private investigators in Colorado Springs, Colorado

SerRental scams: in this scam the conman places a rental listing on various real estate rental websites and takes a deposit for either a vacation or long-term rental for housing. There's been many cases where the renter shows up thinking they have this nice place to stay, only to learn that the occupants/owners have no idea what they are talking about.

Moving scams: moving scams are also classified as real estate scams and they take many forms. We've seen so-called moving companies hold a truckload of household goods hostage for additional payments over and above what their "estimate" was. Make sure you use a well-known, stable company with a track record whenever moving from point A to B, even if it may cost you a little more than the ad on Craiglist you saw.

Homebuyers and real estate agents should be especially diligent. Keep
personal information secure, use licensed lenders and realtors for all
transactions, never pay upfront fees for home services, and educate yourself
on how to spot a scam. Be aware of anyone pressuring you to make quick
decisions, and be wary of improper documentation and requests for wire
transfers of large sums of money.

Never resist the temptation to not follow up when you have a funny feeling about something or when any large sums of money are involved. Check and double-check and get on the phone to verify everything or, better yet, go in person to make sure you don't become the victim of one of these real estate scams.

Lee Walters
EXCALIBUR Private Investigation
719.208.4088
Serving all of Colorado and beyond

BOA fraud right here in the Springs!

2/23/2022

Fraud Investigation Bank of America Colorado Springs Investigator

It's almost like scammers read our last post about the Zelle and Wells Fargo scam, but didn't believe anyone read it. Including us! Our lead investigator received this text first thing this morning about their Bank of America debit card, they actually don't have one, and the fraud that had occurred along with the "restriction" that has been placed on their card. Two things to note on this text message: 1. It came from 804-215-6923 which a quick Google search showed that the scammer didn't even bother to spoof the number to make it look like it came from Bank of America even though it's most likely not the true number this text came from. Lazy scammer!!! 2. The number the recipient is supposed to call is also not a Bank of America number. I'm guessing this is a scammer who's just starting out as those are two things that could easily be made to look like BofA was calling.

Don't fall for this scam. If you have, or any other scam, please give us a call to see how we can assist.

EXCALIBUR Private Investigation
719.208.4088
Serving all of Colorado and beyond

!!!!!SCAM ALERT!!!!!

2/20/2022

Bank Scams investigated by Colorado Springs Private Investigator

The Zelle text scam has reared its ugly head again! First it was Bank of America customers, now Wells Fargo customers are being targeted. If you receive this text, or something similar purportedly from your bank, delete and block the number immediately. THIS IS NOTHING BUT A SCAM!!! How does it work? Like this:

The mark, or victim, receives the text, or something very similar, from what looks like their bank. As soon as they reply NO they get a call on their cell phone. The victim is told by the "bank employee" that someone is withdrawing money from their account and that they need to go into their Zelle account and replace the number listed with their first name. The caller ID even shows the call is coming from Wells Fargo Fraud Protection or something else that looks official and like it's from the bank. The scammers are then able to withdraw as much money as the account contains as they have the keys to the castle namely the name listed as a Zelle recipient.

How is the scammer able to be successful with this scam? First they play on people's fear of having their money stolen and the texts play on that fact. Second when the call comes in from "the bank" the scammers use a spoofing service that will display whatever the scammer wants it to display. Private investigators and law enforcement use these type of services quite often and they cost next to nothing to use. In some instances an astute victim has even Googled the person who claims to be from the bank and discovered that the name matches. All the con has done is a similar search themselves and knows to use a real bank employee's name when calling the victim.

Unfortunately if you are the victim of this scam your chances of recovering the money are almost zero. The banks have no requirement to return stolen funds from scams like these so you must be aware that you're going to be out the money if you do.

Our Colorado Springs professional investigators have years of experience working all types of cons/scams. If you suspect someone is trying to con or scam you, please, please, give us a call before you move forward. A conversation doesn't cost a thing and we're more than happy to provide our opinion based on over thirty years of experience. Stay safe.

EXCALIBUR Private Investigation
Colorado Springs, Colorado
Serving all of Colorado and beyond

THE EMOTIONAL CON

2/3/2022

Colorado Springs Dating Sites Investigator

In an exceptionally well done documentary now playing on Netflix, The Tinder Swindler, perfectly illustrates the lengths a person will go to con someone out of their money using a dating site, this time Tinder, but which we've seen on almost all of the mainstream, and some not so mainstream, dating sites.

Some of the takeaways from this documentary and proven out by all of the social media/dating site investigations we've conducted, is how the con man, or woman, sets the hook. In this case, Simon Leviev, not his actual name, claimed to be the son of a wealthy, Israeli diamond dealer. In order to set the hook with his first victim, he met her at the Four Seasons, initially, then that very same day invited her to fly with him on a private jet to a business meeting. Little did she know that all of this was being paid for by another woman who knew nothing about this new woman. Leviev waited eight months, which is not unusual when a big con is in play, to actually ask the young woman for money, ostensibly a loan. Cecile Fjellhoy, the first victim, thought she was in love, Leviev had played The Emotional Con exquisitely, and gladly gave him the money. When it was all said and done, she was out over $200,000. Leviev operated what was a ponzi scheme, a scheme were the con man takes money from one person and provides it to another. We usually see ponzi schemes involving investments, but he used it to convince his next mark that they were meant for each other and that he was a rich, billionaire businessman.

We won't provide any more details in case you end up watching this, but it is truly a cautionary tale and happens more than anyone ever thinks.

Concerned that the person you met on an online dating site or other social media may be pulling, or trying to pull, a con on you? Give us a call. We'll find out in no time if they are legitimate or not.

THE PUPPET MASTER on Netflix

1/20/2022

Private Investigators and Netflix and Colorado Springs

In a rare chance to watch something on Netflix, or any other streaming service for that matter, I had a chance to view The Puppet Master which is a fascinating look at a true conman in England who plied his wares for many years through his master manipulation of a variety of people, primarily women but several men as well. (SPOILER ALERT UPCOMING)

Going by the name of Rob and David, to name just a few, Robert Hendy-Freegard masqueraded as an MI-5 Agent for years conning his victims, and their parents, out of their life savings in many instances. After being tried and convicted in 2005 to life in prison, he was released in 2009 after his kidnapping charges were overturned. I highly recommend it as it shows how the police were mostly powerless to stop him for quite some time as most of his victims were willing victims although the argument could be made they were brainwashed, willing victims.

This limited series also shows how professional private investigators can fill the void when the police can't, or are unwilling, to look into this type of crime.

If you suspect someone isn't who they say they are, possibly has a shady background, or just gives you a bad feeling, call us at EXCALIBUR Legal Support - Private Investigation for a free consultation and we'll discuss options that you may want to explore. Located in Colorado Springs, but our cases take us all over the country and we're here to help you no matter where you may live.