Now, people are being prosecuted for this fraud!

That's fraud and should be prosecuted.

I have never seen or heard of anyone being prosecuted for this.

Investing is not their job and the likelihood of someone like this being prosecuted for referring properties to someone would be very unlikely.I have seen some discussion about the legalities of someone offering a referral fee for deals, and I would say technically it would violate the RE laws if you pay that fee to an unlicensed person.

I don't know how often a reported occurrence is prosecuted, but it appears to be minimal.

Someone who moves out on day 336 a few times could likely be banned by HUD, no prosecution, just banned from secondary market loans, not good.....unless they have a reason like moving due to employment or other issues as there is the intent to game the system.

Initially, every law or regulation on the books is initially considered in enforcing and prosecuting any violator, from murder to J-walking.

There are several successful prosecutions nationwide on people doing this exact same thing.

Call me cynical, but I see them prosecuting a bunch of financial lightweights & ignoring the big fish who really did the damage.That said, I was happy to see a $500k IRS Lein filed against the original purchaser of my house - at least he's out of commission for a few years!

So in other words good luck getting the guy prosecuted.