D.C. Real Estate Thief Gets 11.5 Years

WASHINGTON – Jeffrey M. Young-Bey, 68, of the District of Columbia, is headed to federal prison after being sentenced to 138 months for orchestrating a brazen scheme to steal homes from unsuspecting residents. The con man used forged deeds, fake notary stamps, and a network of deceit to siphon over $850,000 in fraudulent loans, according to federal prosecutors.

Young-Bey was found guilty on February 12, 2024, on a staggering 12 federal charges: one count of conspiracy to commit mail fraud and bank fraud, two counts of bank fraud, two counts of mail fraud, two counts of money laundering, and five counts of aggravated identity theft. U.S. District Judge Colleen Kollar-Kotelly didn’t just hand down the prison sentence; she also tacked on five years of supervised release after he serves his time.

The scheme began in November 2019, targeting a townhome in the LeDroit Park neighborhood. Young-Bey identified an elderly homeowner and then fabricated a property deed, complete with forged signatures and a phony notary stamp. He filed the fraudulent deed with the D.C. Recorder of Deeds, illegally transferring the title to a shell corporation. To add insult to injury, he sent a check to cover transfer taxes, then immediately put a stop payment on it, ensuring the D.C. government wouldn’t see a dime.

The fraud didn’t stop there. Young-Bey then falsely claimed to a mortgage services business that someone had inherited the stolen property and wanted to take out a hefty loan. He created a fake rental lease to further the deception, successfully obtaining a $360,000 loan, which he split with an associate. He then blew $23,000 of his share on a BMW 3-Series, flaunting the ill-gotten gains. A second, similar scheme unfolded in Shephard Park, netting Young-Bey over $500,000 in construction loan proceeds and another luxury vehicle – a $120,000 BMW 7-Series. He even managed to sell the stolen property for an additional $42,000 profit before the scheme unraveled.

The whole operation came crashing down when a legitimate real estate company purchased the Shephard Park property and began renovations. Neighbors alerted the rightful owners to the construction, exposing the fraud. The FBI’s Washington Field Office led the investigation, with assistance from the Metropolitan Police Department. Assistant U.S. Attorneys Christopher R. Howland and Kevin L. Rosenberg of the Fraud, Public Corruption, and Civil Rights Section prosecuted the case, with contributions from a team of dedicated legal professionals.

This case serves as a stark reminder of the vulnerability of property ownership and the lengths to which some individuals will go to exploit the system. The 11.5-year sentence sends a clear message: stealing homes and defrauding financial institutions will not be tolerated in the District of Columbia.