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experience with Hughes Private Capital
I would like to know the experience of other people with Hughes Private Capital. In recent days I have been contacted by several investors and lawyers who claim to have a problem with Hughes Private Capital.
We do not have any NDA with Hughes Private Capital and we filed a lawsuit against them to get part of our principal back. Never received any interest after lawyer fees. Everything I am expressing here was part of a deposition where either Hughes Private capital owners or their CPA were engaged. During deposition they never refuted any of the facts that I mention here. We have proof of everything below. If you have similar experience, please contact my lawyer Noel Stout (Nstout at abdmlaw dot com) or Rich at NVlawyers dot com.
We invested in one of their funds (assuravest llc). We had to sue to get our money back. In the discovery process we found that most of the things they said were lies and they even misrepresented their experience credentials in the note world. Both the owners are uneducated in the finance world (one has a high school degree only). They used our principle to pay other investor's investment returns (which is very definition Ponzi scheme). They created a second fund using the same name and invested in similar instruments (non-performing notes). The notes they bought were not recorded in proper databases and they used 2 tabs of an excel document to track the 2 funds (how easy it is to cheat). While the fund was performing very poorly, they sent us statements every quarter regarding how our fund was growing as intended. When we asked for documents through court, they created a folder called (investor_name_waste of time). They gave away millions of our money to some note broker without getting much of the actual notes. So, the money was never put in any escrow account (which idiot would do so). The notes they received were never recorded anywhere other than excel documents. They also mocked us by sending us a book called "how we sleep at night" etc. We have all the documents and proof in black and white. They paid themselves fat fees even though fund was losing money hand over fist. We were promised that we can withdraw any time after a certain period. When we asked for our money back they immediately halted all payments (or they said so). Does this ring a bell? That is when we decided to sue them. They settled with us just before the actual trial date. We did not get any interest, so it was a loss for us. The extra money we got went to lawyer and we had to pay some from our pocket. There were many many more inappropriate actions as related to financial transactions and record keeping
They also mixed funds by lending to other funds and then draining our principal in paying interest to themselves and other funds. If you decide to sue them, please include their CPA firm because this firm enables these 2 owners. The CPA firm knew about much of the fraud. I hope at some point Nevada Securities Commission will look into this case because this is pure play ponzi.
I can be reached through this website or pinaki at utexas dot edu. I will be more than happy to help anybody who may have questions about this company.
A pretty incriminating excerpt from HPC email to its investors back in March.
//How We Arrived at this Point
Home Partners is the acquisition company owned by Hughes Capital. Home Partners borrowed money from Guardian to purchase and rehab homes. Once the properties were completed, they would be sold back to Guardian at an increased price. Guardian purchases the home at an increased price, and Home Partners would pay off the original loan. The difference in the price the home was purchased by Home Partners and the price that the home was sold to Guardian is what generated the revenue for this property. The loan would be paid off and the delta on the price would be the income generated for Hughes Capital.//
Has anyone heard anything about problems with the Hughberry Fund? Supposedly, it's another scam. Does anyone know if they comingled money with the Guardian Funds?
I spoke with Hughes several year ago and decided not to use my 1031 proceeds to purchase their properties. The sales lady could not answer if they have a cpa opinion on the legitimacy of their funds payouts. She also said that I could not get an appraisal on the purchase of my properties. She also did not provide a good explanation on how they can guarantee 8% return after expenses when other similar funds only pay 3 to 6%. These were all big red flags for me!
I dodged a bullet in this one! My heat goes out to everyone who was conned by these scammers.
As some of you know HPC and the multiple funds and corporations they managed are actively under a formal criminal investigation. I’m not looking to communicate for the purpose of dwelling on the recent unfortunate events, but if any investor feels we could be beneficial to one another or the collective investor-group please connect with me on LinkedIn with a note that you’re an investor. I am a substantial investor who lives in Reno, NV and very easy to search on LinkedIn. I hope the best for all!
You may all know that Hughes Private Capital has filed for Chapter 7 bankruptcy. The second 341 meeting was held 29 June 2023. I listened in and heard several questions about my lawsuit against HPC fund Assuravest which I settled in 2021. Attorney Ms. Fletcher (I think) asked a question about the Assuravest deposition. She asked whether HPC admitted that investor funds were used to pay the returns to other investors. Greg Hughes denied all of it. The sworn deposition of my lawsuit says otherwise. Here is the relevant portion of the deposition:
".....
Q. Then what is the source of the funds that is being used to repay -- or to pay these preferred returns to Mr. Hartwell and Mr. Adreini?
A. Investor capital.
Q. So it would appear that Assuravest, LLC was using investor capital to pay dividends. Is that correct?
A. Yes.
Q. So, for instance, Mr. Hartford -- or Hartwell is a -- is an earlier investor, so whoever is making the investments that are referenced on the dep -- on these -- on any of the deposits, those investors' funds are being used to pay the earlier investors their dividends?
A. Correct.
Q. Why were dividends being paid when there wasn't money from the notes that was coming in which would be sufficient to pay the dividends?
A. That was how it was structured.
Q. And who made the decision to structure it that way?
A. We did.
Q. We being you and Mr. Hughes?
A. Correct?
Q. What were the -- what was communicated to these investors about the ability to have these preferred returns paid to them?
A. That they had the option.
Q. To get their preferred returns paid?
A. Yes.
Q. And is it fair to say that all of the preferred returns that are referenced on Exhibit 62, and it goes through February of 2016 through September of 2017, it totals about $169,880.40, virtually all of these preferred returns would have been paid by another investor's money as they invested?
A. Virtually all, yes.
........"
Source:
Oral deposition of Steve Sixberry appearing remotely from Nevada, January 22, 2021.
In the United States District Court for the Western District of Texas, Austin Division
Victoire van der Pas, Plaintiff versus Assuravest, LLC and Hughes Private Capital, LLC, defendants
Case: 1:20-CV-00235-RP
Note: HPC stopped paying returns after September 2017. My redemption request in 2018 was denied. Filed suit in the district court of Travis County, Texas in July 2018, D-1GN-18-002929. Moved to Federal court in 2020, 1:20-CV-00235-RP.
#1 Market Trends & Data Contributor
Quote from @Adam Anderson:
I spoke with Hughes several year ago and decided not to use my 1031 proceeds to purchase their properties. The sales lady could not answer if they have a cpa opinion on the legitimacy of their funds payouts. She also said that I could not get an appraisal on the purchase of my properties. She also did not provide a good explanation on how they can guarantee 8% return after expenses when other similar funds only pay 3 to 6%. These were all big red flags for me!
I dodged a bullet in this one! My heat goes out to everyone who was conned by these scammers.
THey used to be able to use appraisal with condition, but after some lengthy conservation and DD, they refuse to do appraisal. The very reason they don't want to do appraisal is all their assets are in very bad condition so can't be appraised. It's very strange business, once you do DD to their inventory, you can start seeing all these sh**t
Regarding the IRA accounts, has this been traced and documented anywhere?
Is there a class-action case? Who should I contact to join?
Quote from @Jim Workman:
Is there a class-action case? Who should I contact to join?
Not sure. I know about a year ago I heard their radio commercials a few times a day and I even called the stations to tell them they should cancel their account with his Hughes. They did recently.
#1 Market Trends & Data Contributor
I heard one of their apartment is handled by receivership though.
12 bridges is the other llc
Nevada
https://opencorporates.com/companies/us_nv/E0104042017-2
Ohio
https://opencorporates.com/companies/us_oh/4148866
12B Residential
https://12bridgespayment.autopal.info/apps/projects/autopal/...
