Professional squatters are reportedly using fake leases, forged documents, and legal loopholes to take over homes in Los Angeles, according to a former police lieutenant and a veteran private investigator who spoke with Fox News Digital. Former LAPD Lt. Moses Castillo and private investigator Michael Youssef said some of these cases go far beyond ordinary landlord-tenant disagreements, allegedly involving fraud, identity theft, forged property documents, and beyond.
Castillo and Youssef both said Los Angeles should consider setting up a dedicated anti-squatter task force to help law enforcement tell the difference between legitimate tenant disputes and cases that involve criminal conduct.
Castillo said creating such a task force is “way overdue,” and argued that California’s laws have too often favored unlawful occupants over property owners. “These professional squatters know how to work the system,” he said. “They know how to cause the worst nightmare for a property owner.” According to Castillo, many homeowners are forced to deal with months of financial losses, legal costs, and emotional stress while trying to get their properties back.
Investigators say cases are often treated as civil matters rather than crimes
Castillo said one of the biggest issues, in his view, is that many squatter complaints are treated as civil disputes instead of criminal investigations. “When somebody breaks locks, breaks windows, gains access to a vacant property and then claims residency, that’s not a housing dispute,” he said. “That’s a burglary. You’re breaking and entering to commit a crime. It should be investigated as a crime from the very beginning.”
Castillo said police officers responding to these situations often have to figure out whether they’re dealing with a legitimate tenancy dispute or a criminal act, but he argued that clear cases of unlawful entry should not automatically be pushed into civil court.
“But they’re not doing that,” he said. “They’re saying it’s a civil matter, go to the courts and get an eviction. They wash their hands of it and leave the victims, the clients and the landlords hung out to dry.” In another case, a California tenant received an email about a rent change that left everyone blindsided.
Youssef, who serves as chief investigator for Blue Systems International and has more than three decades of experience investigating property fraud and unlawful occupancy, said many squatter cases involve more than a simple disagreement between an owner and a tenant. “They basically hijack the property and they hold it hostage until you pay them off,” he said. “Most landowners describe it as hijacking. Their houses get hijacked.” He added, “It’s almost like the property is being held for ransom.”
According to Youssef, some squatters have reportedly turned to online forums and social media groups run by people he calls “criminal consultants,” who allegedly provide step-by-step instructions on how to exploit tenant-protection laws. “They have forums and I call them criminal consultants that actually teach these people how to squat and what to do and how to deal with law enforcement,” Youssef said. “They give you step-by-step what to do and what laws to invoke.”
Youssef said many occupants learn how to take advantage of procedural delays and create documents meant to support false residency claims. “They’ll make fake leases. They’ll try to get mail to them so they can prove their residency to law enforcement,” he said. “It’s crazy.” A similar dispute involved a Texas tenant warned for smoking on his patio after a neighbor reported burnt bacon.
Castillo said professional squatters are often not worried about police getting involved because they reportedly understand how the system works. “They’re not afraid of the police. They’re not afraid of attorneys,” he said. “What they do fear is when a private investigator gets involved because they know somebody is going to start digging into their background and exposing what they’ve been doing.”
One case that Youssef described involved individuals allegedly tied to documented gang activity who occupied a home in Long Beach. According to Youssef, the occupants allegedly attempted to transfer ownership through a fraudulent quitclaim deed and demanded approximately $500,000 in exchange for leaving the property. “They were asking for half a million bucks,” Youssef said. “They fraudulently transferred title to the house.”
Youssef said the homeowner’s wife had died and the homeowner was hospitalized when the alleged scheme took place, which allegedly allowed the occupants to establish themselves at the property. Youssef alleged the property later became linked to gang activity, drug activity, prostitution and violence, including a shooting.
Youssef said investigators helped expose the fraudulent ownership claims and helped the owners get the property back without paying the $500,000 demand. He said a background check conducted during the investigation revealed that one occupant had an outstanding warrant for battery and assault. “If they had simply identified him and ran his name, they would have found the warrant,” Youssef said.
Castillo described the emotional impact on homeowners as severe. “I’ve heard this described when a victim of a sexual assault gets violated, it’s a huge violation,” he said. “These squatters, it’s like a house rape. It’s horrible to even say that, but that’s what it’s like for these homeowners. Their castle has been taken over.”
Castillo said some homeowners reportedly end up paying so-called “cash for keys” settlements just to get unlawful occupants to leave, citing demands such as “You want me out? Then pay me $20,000. Pay me $40,000.”
Castillo said he believes a task force could give property owners and investigators quicker access to officials who can assess complaints and step in when criminal activity is suspected, and suggested other cities could follow a similar approach if Los Angeles creates one.
Published: Jul 6, 2026 03:15 pm