Bellevue real estate firm ran a Ponzi scheme, say bankruptcy filings

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Ya need ta know who yur investing with!

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Feb. 28, 2024 at 2:06 pm Update https://www.seattletimes.com/business/real-estate/bellevue-r...

Oct 28, 2023 National. "Cash Flow King" real estate podcaster accused of $11M Ponzi scheme. A King County judge barred iCap from selling properties and froze iCap's accounts, leading the company to file ...

According to bankruptcy filings, iCap owes 1,800 investors a total of $250 million. Investors included Chinese citizens and Chinese Americans, who lawsuits allege the company targeted for investment. The bankruptcy process and other lawsuits will determine whether investors — and other entities, including local governments owed property taxes — will ever see repayment.

A Bellevue-based real estate investment firm that allegedly failed to repay hundreds of investors operated a Ponzi scheme, the third-party company now overseeing the firm contends in recent bankruptcy filings.

Founded in 2011, investment firm iCap raised money promising to invest in Seattle-area real estate projects. But after the firm allegedly extended timelines for repaying investors and stopped paying monthly interest payments, some investors sued iCap last year in King County Superior Court. ICap filed for Chapter 11 bankruptcy in September and the restructuring company Paladin took over.