Friendswood property fraud: DA investigates identity theft scheme targeting deceased homeowners

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Man accused of stealing late Friendswood woman's estate

While a Friendswood lays to rest at a morgue, a man was allegedly working to steal her property. FOX 26's Sherman Desselle explains the allegations.

While Carol Lynn Smith lay unclaimed in a Harris County morgue, a sophisticated scheme was allegedly underway, according to court documents obtained by FOX 26 Wednesday.

Hefty theft allegations

Investigators state 29-year-old Phyllip Herrera used forged judicial signatures, a false notary, and a defunct county clerk’s seal to seize control of Smith’s estate—including her home, her vehicle, and more than $60,000 in cash. He was arrested by a Harris County Precinct 1 Constable in January. 

Phyllip Edward Herrera booking photo from January 2026. Investigators say he used forged judicial signatures, a false notary, and a defunct county clerk’s seal to seize control of a dead woman's estate—including her home, her vehicle, and more than $ …

The investigation, led by the Harris County District Attorney’s Office, began after red flags were raised regarding the estate of Carol Smith and her mother, Marlene Smith. Marlene passed away in September 2023 and left Carol Smith her property years before her death; Carol followed exactly one year later in September 2024. No immediate heirs were initially present.

According to a search warrant affidavit, Herrera presented probate documents "riddled with errors" to Wells Fargo, claiming to be the lawful heir. Despite the documents bearing the name of a County Clerk who had not been in office since 2019 and a forged judge’s signature, documents read the bank issued Herrera a cashier’s check for $61,290.48.

Family member reacts

"It's very upsetting that there are people who prey on dead people," said Dale Ray East, 73, Carol Smith’s half-brother. East, who was only recently tracked down by investigators, said the ordeal has been a nightmare.

The alleged fraud extended to the Smith family home on Mae Street in Friendswood. Investigators say a "Gift Warranty Deed" was filed to transfer the property to a "Joyce Smith" of Illinois—a person authorities believe was fabricated. The property was then funneled to a shell company, "ROI Wholesalers LLC," which has been linked to other property fraud investigations.

Documents state Herrera allegedly used "Proof," an online notary platform, to electronically sign and notarize documents. In one instance, a notary's physical stamp that had been reported stolen years prior was used to authenticate a deed.

The scheme even touched the victim's driveway. Herrera is accused of selling Carol Smith’s 2012 Volvo on Facebook Marketplace for cash, providing the unsuspecting buyer with a title forged with the deceased woman's signature.

East was told by investigators that squatters were living inside the home, and says the home has also faced foreclosure and was recently auctioned off by the bank due to an outstanding mortgage. Neighbors spoke off-camera to FOX 26 Wednesday and said they met Herrera, who once introduced himself as a family member of the deceased and rightful heir to the property. 

"People should stay in better contact with their relatives," East told FOX 26. He says that the experience has forced him to re-evaluate his own end-of-life planning. "As soon as the property becomes vacant, it needs to go on sale."

Search warrants mentioned that investigators targeted an iPhone 17 Pro in his possession, which investigators believe contains digital evidence of the coordinated identity theft.

"The bank will probably end up replacing the money because they didn't know what they were involved in," said FOX 26 Senior Legal Analyst Chris Tritico. "It's not a lot of money as far as the bank is concerned—but to these individuals who lost it, it’s a lot."

Tritico notes that the breakdown often happens because major institutions rely more on computers than humans to verify documents. "Unless the machine flags it, the human may not catch it," he said.

New Texas legislation protects heirs 

For future victims of similar crimes, a new Texas law may offer a faster path to justice than was previously possible. Tritico pointed to Senate Bill 1734, which went into effect on September 1, 2025. The law allows real property owners to file a simplified petition and affidavit in state district court to claw back stolen titles.

"It doesn't have to stay in litigation—it can be done in 30 to 45 days," Tritico said. "The legislation actually has a draft of the petition and the affidavit in the statute. All you have to do is print it off, fill in the blanks, and file it."

Experts advise family members to do as much advanced planning as possible, before valuable assets get held up in court. 

Tritico also offered a low-tech tip to combat high-tech forgery: "When you sign a document, sign it in blue ink. Now we know what the original is. With these new printers, if it's black ink, we don't know."

What's next:

The Harris County District Attorney's Office is continuing to investigate this case. Herrera faces potential charges of felony theft, tampering with government records, and fraudulent use of identifying information. He's out on bond and set to appear in court in March, according to records.

FOX 26 also requested information from Wells Fargo on this particular case and its procedures. A spokesperson for their office tells us they're currently reviewing the case and will reach back out to us with their findings. 

The Source: Fox 26's Sherman Desselle reviewed court documents, gathered information from the District Attorney's Office, requested information from Wells Fargo, and spoke with next of kin and neighbors of the deceased. 

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