How This California Scammer Used the Competitive Real Estate Market to Steal MillionsAdolfo Schoneke, his sister Bianca Gonzalez and other co-conspirators orchestrated a scheme that spanned years.

Many prospectivehome buyershave found thereal estatemarket frustrating and competitive over the past few years, and some people have taken advantage of that.

Adolfo Schoneke, 45; his sister Bianca Gonzalez, 39; and other co-conspirators orchestrated an elaboratereal estatescheme and stole nearly $12 million from 750 victims,The Los Angeles Timesreported.

Related:This Army Veteran and Real Estate Investor Shares His Top Tips

"Playing on the dream of home ownership and seemingly out-of-reach home prices, [Schoneke] figured out a way to 'sell' homes that he did not own and had no business in listing for sale," prosecutors stated.

Indeed,buying propertyhas been more difficult than ever before for many Americans. According toRedfindata, U.S. home prices were up 7.6% in September 2022 compared to the year prior, with a median selling price of $403,667.

Schoneke and his co-conspirators listed properties they didn't own for sale — even if the real owners had no intention of selling — and advertised them asshort-sale opportunities, using that as a convenient excuse when the fraudulent process dragged on for years, in some cases.

Schoneke directed office workers to open bank accounts in their names to hide the co-conspirators' involvement and receive down payments and other sums from the victims. Although nearly $12 million was stolen in total, some of the victims were reimbursed; almost 400 people are still out more than $6 million.

Related:Former Yale Administrator Stole More Than $40 Million From the University to Fund Lavish Lifestyle

Schoneke was sentenced to nine years in prison last month after pleading guilty to one count of conspiracy to commit wire fraud, and his co-conspirators await sentencing. A restitution hearing is scheduled for December 12.