Philly notary charged in house-theft scheme that resulted in 21 stolen homes

A Philadelphia-based notary public faces a lengthy list of charges for her alleged role in a house-theft scheme that affected nearly two dozen properties around the city, officials announced Wednesday.

Officials have charged Gwendolyn Schell, 67, with criminal conspiracy, identity theft, forgery, tampering with records, and other related crimes in connection with the scheme. In total, Schell faces nearly 250 counts — 31 counts for each of the eight charges against her, the Philadelphia District Attorney’s Office said in a statement.

“A notary public is supposed to be someone whose very job is to act as a gatekeeper to prevent fraud in these cases,” Assistant District Attorney Kimberly Esack said at news conference Wednesday. “Instead of doing that, Gwendolyn Schell not only allowed the fraud to occur here, but actively engaged in and arranged for the theft of multiple properties here in our own communities.”

The case dates back to at least 2018, when the Department of Public Records alerted the Office of Inspector General to a series of anomalies in a number of house deed documents connected to Schell, officials said. In many of the deeds, Schell allegedly notarized documents approving the transfer of homes from their owners to another party, despite the actual owner being deceased at the time of the transfer, the District Attorney’s Office said.

Investigators found that many of the fraudulent deeds also included backdated execution dates, forged signatures of dead owners, falsified price considerations, and notarial stamps from Schell indicating she witnessed deceased parties sign the documents, officials said.

In total, 21 properties were allegedly stolen in the scheme. The investigation remains ongoing, and investigators have multiple arrest warrants and search warrants pending, officials said Wednesday.

The case is an unusual one, in that notaries are often the ones who tell authorities that their stamp and signature are being forged or have been stolen, Esack said. It is rare that the notary is an actual participant in the crime, she added.

Officials on Wednesday described house theft in Philadelphia as a long-running issue, but one that authorities have worked to combat more proactively in recent years. In 2019, for example, Records Commissioner James Leonard announced the city’s Fraud Guard system, which helps prevent house theft by automatically contacting people when their names appear on real estate records filed in Philadelphia.

That service is free to enroll in, which can be done online on the City of Philadelphia’s website. Officials on Wednesday recommended that all property owners in the city sign up for the service.

House deed fraud can also be reported to the District Attorney’s Office’s House Deed Fraud hotline at 215-686-9902.

District Attorney Larry Krasner on Wednesday vowed to prosecute individuals who steal houses, noting that Philadelphia’s now historically low number of prisoners in city custody gives authorities “more room” for those found guilty of the crime.

“Here’s the good news,” Krasner said. “We have a place for you to stay.”