Franklin Olaitan, a D.C. real estate investor, isn’t building wealth through legitimate deals. He’s building a prison record. Olaitan pleaded guilty to wire fraud this week, admitting he stole a Northwest Washington D.C. property from its rightful owner and flipped it for a hefty profit. The feds say Olaitan’s scheme cost victims over half a million dollars.
The con began in 2016, while the property sat vacant. Olaitan allegedly forged the signatures of the homeowner – who’d owned the place since 1996 – and a notary on a bogus sales contract and deed. He then used these fraudulent documents to transfer ownership to one of his shell companies. It was a calculated move designed to make it look like a legitimate sale.
Olaitan didn’t stop at forging documents. He presented these fakes to a lender and a Maryland settlement company, securing financing and enabling the fraudulent transfer. The settlement company, unwittingly complicit, filed the false deed with the D.C. Recorder of Deeds, solidifying the illusion of a legal transaction. The proceeds from the sham sale were then deposited into one of Olaitan’s company accounts.
The stolen property wasn’t left vacant for long. Olaitan quickly resold it to an unsuspecting third-party buyer, who poured at least $600,000 into renovations before discovering the property’s true ownership. This buyer, now a victim themselves, was left holding a renovated house built on a foundation of fraud. The original owner only learned of the theft when the new owner listed the property for sale.
Olaitan’s scheme wasn’t sophisticated, but it was effective – until now. He faces sentencing in early 2024 before U.S. District Court Judge Paul L. Friedman, after initially entering his guilty plea before Judge Carl J. Nichols. Federal prosecutors are likely to seek a substantial prison term, given the brazen nature of the fraud and the significant financial harm inflicted on the victims.
This case serves as a stark warning: in the cutthroat world of D.C. real estate, due diligence isn’t just good practice, it’s a necessity. Olaitan’s actions demonstrate how easily property titles can be manipulated, and the devastating consequences for those who fall victim to such schemes. The feds will undoubtedly be scrutinizing other deals Olaitan was involved in, looking for further evidence of fraudulent activity.
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