Tenant Forging Electronic Payment Receipts

Tenant Forging Electronic Payment Receipts

Kathleen J.Pro Member
Real Estate Agent · Naperville, IL · Member since 2014 · 15 posts · 8 votes

We have billed our tenants through Quick Books for several years.  In August I unwittingly took on a "Professional Tenant" who is making my life a nightmare.

His September rent was 21 days late.  He insisted his payment issues were due to traveling out of town for his Grandmother's funeral, then some kind of bank glitch.  I became very suspicious of him at that time and started digging deeper into all of his claims during the application process, so I knew that it was likely he was lying.

October & November rents were paid electronically through Quick Books without event.  December nothing came through.  In fact, Quick Books does not even show that he has even VIEWED the December invoice.  When I contacted him after the expiration of my grace period (the 5th) to let him know that if he didn't pay I'd begin the eviction process, he acted offended, claiming that he paid, and forwarded me what appeared to be a PAID email receipt from Quick Books.  The invoice # matched the December invoice, and it showed a payment date in November.  But, the hyperlink did NOT link to the December invoice, but rather to the old November invoice.  My reasonable deduction is that he changed his November payment confirmation to show the December invoice # and an on-time payment.  I was even able to reproduce this by paying creating a small invoice and paying it, and then typing over the details in the message in my email.  

So, we have court next week at which time I need to be able to prove that he did not pay us.  He is the only tenant since 2012 to have ANY problems paying electronically, and I have had 14 tenants across 7 properties.  

How do i prove that he did not pay us?  He seems to be forging his bank statements too to make it seem like he paid.  He also seems to be creating emails that I NEVER received, in which he offered to re-carpet an entire 1700 sf townhouse, as well as a list of repairs that he claims to have undertaken.  I am a FANTASTIC landlord--we fix everything well beyond what is required or expected.

Can my other tenants write letters attesting to my honesty and responsiveness?  Will this have any impact on the court?  This tenant has FIVE residential evictions that were not discovered by my (then) screening service.

0Reply
93 views

Most Popular Reply

Grant ShipmanPro Member
Rental Property Investor · Estes Park, CO · Member since 2017 · 282 posts · 1k+ votes
8y
wow that super blows! the suggestions I had have already been offered. could you share what your old screening service was? good luck with this all!
See this reply in the discussion

26 Replies

Jump to latestLatest
  • Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
    8y

    Unfortunately, people who are good at photoshop can edit and create just about any document. However, take your laptop to court with you so you can log in while in court to show he didn't pay. Demand for that tenant that he pay cash from now on! I had a tenant purchase a money order, fill it out so he would have the carbon copy receipt, and then get a refund on the money order. When people do that type of thing you want to get them out as soon as possible.

  • Kathleen J.Pro Member
    OP
    Real Estate Agent · Naperville, IL · Member since 2014 · 15 posts · 8 votes
    8y

    Yes, we are trying to get him out now.  Hopefully the judge can see past the guy's charisma quite easily.

  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    8y

    Take your bank statement with you .Showing the deposits 

  • Rental Property Investor · Everywhere, USA · Member since 2012 · 689 posts · 525 votes
    8y
    Take screenshots, and bank statements as proof. If you have a tablet with data bring it so you can log in, but have screenshots printed in case the judge won’t look at the tablet. Make sure to bring copies of your late notice as well. You want to have proof you did it all by the book.
  • Grant ShipmanPro Member
    Rental Property Investor · Estes Park, CO · Member since 2017 · 282 posts · 1k+ votes
    8y
    wow that super blows! the suggestions I had have already been offered. could you share what your old screening service was? good luck with this all!
  • Rental Property Investor · New York City, NY · Member since 2017 · 493 posts · 386 votes
    8y

    I agree he is a "Professional Tenant" . Get an Eviction Lawyer, dont cut any corners. It sucks that original screening service did not catch evictions, dont give this guy any more chances and get yourself a good Eviction Lawyer hopefully someone from BP can recommend someone from your area.

     You mentioned he's been thru 5 Evictions, can you mention which screening service you used so we can avoid them :)? For the very least screening service company should compensate you for Legal fees, dont be afraid to ask. 

     He has experience on his side, he knows the process very well. What he is doing is fraud plain and simple and he knows enough to electronically manipulate documents which tells me he is tech Savvy. 

    Good luck keep us posted

  • Kathleen J.Pro Member
    OP
    Real Estate Agent · Naperville, IL · Member since 2014 · 15 posts · 8 votes
    8y

    I used Real Serious (formerly called Amer USA).  I have been working with an attorney since December, and he represented me in court today for our first hearing.  I could probably give a short seminar on all this guy's lies and how I'm piecing them together.  

    Quick lessons:

    Paystubs are easy to fake, especially for those who claim to be self-employed.  Insist on 2 years of tax returns if renting to a self-employed person.

    Company websites are easy to fake, but with a bit of effort easy to call out.  This guy's website was a mash of plagiarized material from legitimate companies in the same industry he claims to be in.

    Colleague/HR references are easy to fake if your applicant works with a network of similarly shady people--this guy's ex-wife is super dirty too, and he listed her under her maiden name (I tracked it down through her dad's obituary) as the VP of his company.

    Search ALL surrounding counties for eviction records or judgments.  Tonight I found 2 judgments against this guy in Cook County.  One was for more than $150k!!  I had already found 4 judgments against him in another county, about 40 miles away from the other one.

    Do not let tenants delay establishing utilities in their own names.  Doing so helps them to hide their residential rental history if they cannot be easily tracked through utility bills.  He currently owes more than $1000 in water bills, including a $500 fee for turning his own water back on after the city shut him off due to non-payment and a bad check.  The city turned his bad check over to the police.  

  • Royal Oak, MI · Member since 2015 · 257 posts · 230 votes
    8y

    I would definitely let this guy go in with his bad evidence and let him get charged with contempt for bringing in forged documents. Some judges, I would hope all, should take that very seriously. Combined with all the other dirt you've found on him I don't think you will have a hard time in court.

  • Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
    8y
    Unfortunately you have a professional tenant and a con man whom knows the housing court system better than you do. I would hire a lawyer with expertise in this area to represent you so that the tenant does not drag this out in court for months causing you even more lost income in rent.
  • Real Estate Agent · San Antonio, TX · Member since 2017 · 523 posts · 362 votes
    8y

    @Kathleen J. I'm sorry to hear this but I congratulate you on sharing this story that takes guts to admit that you messed up. I believe you are handling this situation just as well as any other professional would. I think it's sad that you have to go through this especially since you are an outstanding landlord like most are. I completely agree with what others have said as far as bringing in your laptop and bank statements to show the court the evidence in person so it can prove that he is lying about emails and such. I would also bring proof of his previous past evictions and debts. Good luck and don't let this discourage or deter you these people are one in a million. I'm sure you will gain plenty of wisdom from this and will come out an even better landlord than before!

  • Property Management · Marietta, GA · Member since 2015 · 45 posts · 25 votes
    8y
    You need to go to quick book mechant site and download the statement for the month the tenant claims they paid. To show you never received the payment. Good Luck.
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    8y

    @Kathleen J. forgery is a crime. Contact your local non-emergency police and talk to a detective. You need some third party validation of the forgery, so I would also contact Quick Books (hopefully they have a cyber security group that can help). I would tell the tenant that you believe they forged the payment receipt and tell them you are filing a criminal report. They may decide to leave quickly or back down in court. 

    The receipt is not enough for the tenant to prove payment. They need copies of bank statement or some other document that supports payment was sent. They could forge more documents, but it just tangles their web more.

    If the tenant goes into court and swears under oath that the receipt is real, that becomes perjury. This could turn quickly from an eviction to jail time for this tenant. 

  • Kathleen J.Pro Member
    OP
    Real Estate Agent · Naperville, IL · Member since 2014 · 15 posts · 8 votes
    8y

    at this point I'm almost wondering if he's actually looking for a trip to jail for some free room and board.  I laugh, because otherwise I'd cry, and there's no crying in real estate :)

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    8y

    I'm sure quickbooks would not take too kindly to someone forging their documents. They might even be willing to help get him charged, as it doesn't look good for their business, if there's regular forging going on. Can be a PR nightmare for them and could hurt their business. They have an interest in proving him a forger. 

  • Olive Branch, MS · Member since 2016 · 29 posts · 7 votes
    8y

    I would not try to press the forgery issue.  As mentioned...If he shows up with those fake receipts in court though that is when he would have a problem.  My concern would be over this tenant filing bankruptcy on you.  Let us know how it turns out.

  • Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
    8y

    @Kathleen J., Quickbooks should have some metadata that the tenant is unable or doesn't know to copy. An email from Quickbooks may be sufficient that he didn't pay.

  • Real Estate Consultant · Norfolk, VA · Member since 2017 · 345 posts · 201 votes
    8y

    @Kathleen J. If you have to bring evidence, as suggested by others, print/pull the activity on your QB merchant account around the date he claimed he paid, bank statements showing that the other deposits have cleared except his, and also take a screenshot of the online activity tab showing that he has not viewed or paid the invoice. You can bring another example of good invoice he paid showing how it supposed to look like if he actually viewed or paid the invoice electronically. Also, I would show the email along with the incorrect hyperlink (he messed up on that part) to show that he forged the receipt. If you setup QBO to attach the pdf copy of the invoice then that will explain how he got the December invoice number and used it to forge the receipt. 

    Goodluck on your case!

  • Kathleen J.Pro Member
    OP
    Real Estate Agent · Naperville, IL · Member since 2014 · 15 posts · 8 votes
    8y

    Victory in the courtroom today.  I'm not going to see a penny from this guy, but he has been ordered to vacate in 7 days.  Crossing our fingers that he doesn't or hasn't damaged the house.  

    His evidence was just a screenshot of what he claimed to be his bank's mobile app.  No actual statements.  No bank name or his name on the screenshot.  Judge totally didn't understand what I meant about him altering the November payment email confirmation to show December, but the judge didn't believe him.

  • Jennifer T.Pro Member
    Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
    8y
    Originally posted by @Kathleen J.:

    I used Real Serious (formerly called Amer USA).  I have been working with an attorney since December, and he represented me in court today for our first hearing.  I could probably give a short seminar on all this guy's lies and how I'm piecing them together.  

    Quick lessons:

    Paystubs are easy to fake, especially for those who claim to be self-employed.  Insist on 2 years of tax returns if renting to a self-employed person.

    Company websites are easy to fake, but with a bit of effort easy to call out.  This guy's website was a mash of plagiarized material from legitimate companies in the same industry he claims to be in.

    Colleague/HR references are easy to fake if your applicant works with a network of similarly shady people--this guy's ex-wife is super dirty too, and he listed her under her maiden name (I tracked it down through her dad's obituary) as the VP of his company.

    Search ALL surrounding counties for eviction records or judgments.  Tonight I found 2 judgments against this guy in Cook County.  One was for more than $150k!!  I had already found 4 judgments against him in another county, about 40 miles away from the other one.

    Do not let tenants delay establishing utilities in their own names.  Doing so helps them to hide their residential rental history if they cannot be easily tracked through utility bills.  He currently owes more than $1000 in water bills, including a $500 fee for turning his own water back on after the city shut him off due to non-payment and a bad check.  The city turned his bad check over to the police.  

    Unfortunately, tax returns are easy to fake also.  I rented to tenants where the wife was self-employed in an at-home business that involved products and was the "bread winner".  They sent me their last two years of tax returns.  Either they tax returns were completely false or the business was discontinued, after moving.  They rented the other side of my double and had it been "real", there should have been packages all the time going in and out.  There weren't.  By the third month, things had gone very downhill.  They moved out at the end of month 4, without notice...still owing me some money and stealing items out of the unit on their way out.  I discovered many lies they told me, after the fact.  My "spidey" sense was going off while I was vetting them and I should have listened to it.

    They were only the third tenants I'd ever had and were at least a good lesson in setting up more stringent screening!

    I'm not sure if it is possible to "double check" with the IRS when tax returns are submitted as proof of income, but I'll look into that if I am ever in a similar situation.

  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    In the future if you suspect fraud, why not just require cash/money order and dual signature (yours/theirs) for acceptance. 

  • Rental Property Investor · Charlotte, NC · Member since 2017 · 298 posts · 232 votes
    8y

    @Kathleen J. rather than rely on a tenant's copy of paperwork (tax returns, etc), ask them to sign a tax form release for the IRS, and authorization for information disclosure from employers, etc. That allows you to independently verify any information they provide and ensure they aren't lying. Also, try to ask questions when checking references that a reference wouldn't expect to verify that they aren't lying to you also.

  • Kathleen J.Pro Member
    OP
    Real Estate Agent · Naperville, IL · Member since 2014 · 15 posts · 8 votes
    8y

    You can request transcripts of a tax return to be sent to you from the IRS.  From the IRS' website: "To request an individual tax return transcript by mail or fax, complete Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript. Businesses and individuals who need a tax account transcript should use Form Form 4506-T, Request for Transcript of Tax Return."

  • Kathleen J.Pro Member
    OP
    Real Estate Agent · Naperville, IL · Member since 2014 · 15 posts · 8 votes
    8y

    Matt K., in reply to your good suggestion, this was our request to the tenant, but he insisted that he paid and QB goofed.  He claimed to be "working on it," and when we suggested meeting to collect cash or a money order he claimed he was out of town--a FAVORITE excuse of scammers.

  • Rental Property Investor · Charlotte, NC · Member since 2017 · 298 posts · 232 votes
    8y
    Kathleen J. also, since he sent falsified documents over the internet you may want to contact the internet crimes division at the FBI as he likely committed wire fraud.
  • Kathleen J.Pro Member
    OP
    Real Estate Agent · Naperville, IL · Member since 2014 · 15 posts · 8 votes
    8y

    I'm not sure how far we want to pursue it.  The guy has a potentially violent, or at least threatening,  history.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.