L.A. real estate fraud suspect arrested in LV

Wednesday, Sept. 15, 2004 | 10:55 a.m.

A man accused of committing up to $50 million in real estate fraud in Los Angeles County during the last two years was arrested by Metro Police detectives at a Strip hotel Monday night as he waited in line to enter a restaurant.

Austin James Lorenzana was allegedly in Las Vegas to sell a portion of shares he held in a $40 million Santa Maria, Calif., vineyard. The Los Angeles County Sheriff's department had tipped off Metro that Lorenzana would be on the Strip, Metro Sgt. Edward Lee Kravetz said.

His detectives fanned out in the hotel and found Lorenzana Monday about 6:30 p.m. It was the culmination of a two-year investigation that followed a trail of identity theft and alleged manipulation of the real estate appraisal market in the Los Angeles area.

"I don't think I've ever seen anybody do so much damage," Kravetz said.

Kravetz noted that real estate fraud in Clark County is usually handled by the district attorney's office as per state law -- though his office receives about 100 complaints a year.

Lorenzana remained jailed this morning without bail, pending extradition to California, police said.

An Internet search under Lorenzana's name produced a notice of "desist and refrain orders for unlicensed activities" at the California Department of Real Estate's Web site. The orders were filed July 24, 2001. The current status of those orders was not immediately available this morning.

Kravetz would not disclose the name of the hotel where Lorenzana was arrested, nor would he say exactly why he wouldn't disclose it. He did say, "These properties have shareholders."

Locations of arrests are public record, but Kravetz would only say it was one of the older properties on the Strip.

Sgt. Patrick Libertone of the L.A. County Sheriff's Department Identity Theft detail said he knew of no other dealings Lorenzana may have had in the Las Vegas area.

In a twist on Las Vegas' famous marketing slogan, Kravetz said, "Most often, what occurs in L.A. gradually gravitates to Las Vegas."

Kravetz also said an increase in identity theft and the booming real estate market locally may add up to other crimes like this in Las Vegas in the future.

"I think this is a harbinger of things to come," he said. "It's an up and coming crime. Real estate can be a vehicle to steal cash."