Another fraud frequently practiced is the multiplying of mortgages on the same piece of property. This can be effectively guarded against by proper entries on the real estate ledger, by the record of each mortgage, and by reference to the periodical lists of the above-mentioned recording officials.

Cases have occurred in which books, records, and accounts appeared to be in perfect order, and auditors therefore granted favorable certificates, which were, however, based solely on the financial records and an accompanying certificate. For each loan included in the assets there was a mortgage technically correct in all details, but it was not considered necessary to bring the financial transactions on to the tract books or plat books, and, in the case of a large business with some hundreds of mortgages outstanding, the auditors failed to discover that certain lands were covered by one, two, or even three mortgages.