Craig Adams, a resident of Raleigh, North Carolina, is caught in a bizarre and frustrating real estate fraud case. His 8,300-square-foot mansion, located in an exclusive gated community, was mysteriously transferred to a stranger named Dawn Mangum without his knowledge or consent. The property is now listed for sale at a staggering $4.25 million.
Adams discovered the fraudulent transfer when his homeowner’s association contacted him about a potential sale. Mangum had contacted the HOA, requesting access to the community, raising suspicions. Further investigation revealed that Mangum had forged documents and filed them with the Wake County Register of Deeds, claiming ownership of the property under the Dawn Mangum Trust. These documents were approved and recorded without any verification of their authenticity.
Adams is outraged by the lack of due diligence. “There’s no effort to authenticate the validity of the change of deed,” he lamented. “Nobody verifies who owns the house that’s trying to be transferred to a different owner.” Despite presenting evidence of his ownership, including mortgage and tax documents, county officials informed him that they were powerless to intervene. Adams was left with no choice but to hire a private attorney to file a civil suit against Mangum.
The incident highlights a significant loophole in North Carolina law. County registers of deeds are not required to verify the authenticity of submitted paperwork, nor do they check the validity of notaries or the legal right of the person submitting the deed. This allows for numerous documents to be processed daily without thorough investigations, unless signs of fraud are blatantly obvious. In Adams’ case, no red flags were raised.
Mangum claims the situation was a misunderstanding. She believed the property was abandoned and in foreclosure, and that she was legally entitled to claim ownership. She expressed her willingness to correct the paperwork and return ownership to Adams.
The Wake County Sheriff’s Department is investigating the case. The Register of Deeds states they will assist in any way possible but are limited by state law. This case serves as a stark reminder of the vulnerabilities within real estate systems and the importance of robust verification processes to protect homeowners from fraud.
