Empire State 'theft' shows deed fraud risk

NEW YORK, Dec. 3 (UPI) -- The New York Daily News announced it was the new "owner" of the Empire State building after forging the necessary paperwork to file with the city.

The intrepid tabloid said Wednesday it had drawn up some bogus documents and used a fake notary stamp to transfer the deed of the $2 billion building to illustrate a dangerous loophole in the city's recording system.

The newspaper said the Web-based system enables scam artists to bypass the honest bankers and mortgage brokers who act as gatekeepers and simply file deed transfers without the knowledge of the true owner.

Once the deed is recorded, the property can be used as collateral on mortgages and other loans that are never paid back and wind up in the laps of the true owners.

"Crooks go where the money is. That's why Willie Sutton robbed banks,

and this is the new bank robbery," Brooklyn Assistant District Attorney Richard Farrell told the Daily News.

The newspaper said it used the fake company name Nelots Properties LLC -- "Stolen" spelled backward -- to complete the transaction.

Editors said they "returned" the Manhattan landmark to its rightful owner Wednesday and did not take out any loans.