The Graceland - Notary Scams: How Notaries Can Protect Against Real Estate Scams?
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This article was Posted 05/25/2024 by CLIN Staff
The recent controversy surrounding the alleged foreclosure of Elvis Presley's iconic Graceland mansion has captured national attention. This case, laden with accusations of fraud and forgery, offers critical lessons for notaries public about vigilance, verification, and ethical practices.
The Graceland Foreclosure Scam
The scandal began when Naussany Investments & Private Lending LLC claimed that Lisa Marie Presley, Elvis's daughter, had taken out a $3.8 million loan in 2018 using Graceland as collateral. Following her death in 2023, the company moved to foreclose on the property, citing unpaid debts. However, Riley Keough, Lisa Marie's daughter and the sole heir to Graceland, filed a lawsuit asserting that the loan documents were fraudulent and that her mother's signatures were forged.
Key Evidence: Fraudulent Notarization
A crucial piece of evidence in this case is the alleged notarization of the loan documents by Florida notary Kimberly Philbrick in May 2018. Philbrick has sworn in an affidavit that she never met Lisa Marie Presley nor notarized any documents for her. Additionally, the notarization certificate included language suggesting remote notarization, which was not legal in Florida until 2020, casting further doubt on the document's authenticity.
Legal and Notarial Implications
For notaries, the Graceland case underscores the importance of thoroughness in notarization processes. Riley Keough's lawsuit revealed that the notary public allegedly involved, Kimberly L. Philbrick, stated in an affidavit that she never met Lisa Marie Presley nor notarized any document for her. This situation exemplifies the potential pitfalls and severe consequences of fraudulent notarizations.
Best Practices for Notaries
Verify Identities Rigorously: Always ensure that the person signing the document is who they claim to be. This can include checking multiple forms of identification and asking pertinent questions to confirm their identity.
Keep Detailed Records: Maintain comprehensive records of all notarizations, including ID information provided and specifics about the document notarized. This can serve as vital evidence in case of future disputes.
Stay Informed: Keep up-to-date with the latest scams and fraudulent activities in the real estate and financial sectors. Awareness is a powerful tool in preventing fraud.
Report Suspicious Activities: If you suspect any fraudulent activity, report it immediately to the appropriate authorities, such as local law enforcement.
Continuing Education: Regularly participate in continuing education programs to stay informed about the latest laws, regulations, and best practices in notarization.
The Graceland foreclosure scam is a stark reminder of the vulnerabilities within the foreclosure and notarization processes. Notaries play a critical role in maintaining the integrity of legal documents and financial transactions. By adhering to best practices and remaining vigilant, notaries can help prevent fraudulent activities and protect the interests of all parties involved.
By learning from the Graceland case, notaries can better safeguard the public and uphold the trust placed in their profession.
