Fraud victim searching for info/advice 7 posts by 6 users

Posted: 02/11/2008 at 09:45AM

Hi,

I'm not comfortable posting my real name but I read an article about this site in my local newspaper. The caption mentioned that this blog helped victims of an investment fraud scheme connect. I also believe that we have been victims of an investment fraud.

We took out a second loan on our home and invested over $160,000 with our neighbor and owner of a corporation. We were supposed to be partners in converting a 10 unit apartment bldg. into condos. Well, long story short, he sold the buildings (without converting them) and says that he doesn't have the money to pay us back. Now he says that we invested in his corporation and we have to wait until he earns an " appropriate interest" before he will pay us back. He has endless reasons for not paying us back.

He refuses to give us any detailed accounting from his corporation and now we discovered that he has opened several corporations in his name, his son's name, etc. We are struggling not to lose our home while he just bought a new Mercedes, etc.

I'm just looking for info on how to get our money back. We talked with attorneys and they all agree that he committed fraud but we don't have the money to retain them. Besides, two of the attorneys told us that while we may win a civil suit against him, it's only a piece of paper and we will probably have trouble collecting any money.

On attorney told us specifically NOT to contact the District Attorney because the DA is only interested in shutting this guy down, not getting our money back and it would only lock up his assets.

We don't know who to believe or what to do.

Posted: 02/11/2008 at 07:20PM

You're going to have to scrape up the money to hire an attorney, unfortunately. Nothing is going to happen without a lawsuit being filed. From what you say, its pretty clear something untoward is going on. If its like a typical arrangement, though, there were tons of warnings in the operating agreement for the company, or in the investment documents that give him plenty of wiggle room. The fact he has multiple corporations means he understands how to arrange assets into different entities. Even with a lawsuit, and if you do get a judgment, it may be difficult to get a payment. Nevertheless, that's about your only hope of seeing any of the money again.

If there was any sort of advertising for investors, you might be able to get the SEC or your state securities office involved.

You might look into refinancing your house. Rates are down now, and if you credit and income is good, you might be able to get your interest down a fair bit. Not the same as getting your money back, but might avoid you losing your house.

Jon

Posted: 02/11/2008 at 09:47PM

Sorry to hear you are having a tough go with all this.

I am not a lawyer but, what the lawyer you saw, said to you does make sense. What you are after makes sense as well.
I haven't heard of any cases where a victim of fraud felt as though they won in the end. It seems there are only degrees of losing.

I agree with what Wheatie has told you about finding a way to get a lawyer. Try scanning the fraud blogs because there are lawyers who look to the blogs to find fraud victims and to let others know they are wanting to help with civil cases.

If I was in your situation, I would look for a lawyer to try to recover your money.

I would also contact or go to the FBI in person.
Their website is: www.fbi.gov

You would need to report this to the White Collar Crime department. Their homepage has information about fraud schemes as well.

I hope you are able to prevail in some way with this and please... Go to the FBI before the DA. You can file a complaint with the Attorney General as well.

Posted: 03/19/2008 at 08:00PM

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