Harbor Funding Group is being investigated for fraud....beware!!!!!!
DO NOT DO BUSINESS IN MISSISSIPPI WITH GLOBAL FUNDING COMMUNITY DEVELOPMENT, LLC.....based in Florida building under Go Zone in Mississippi....beware....they approximately 5 companies setup that funnel money into Global Development.....flips are involved.....Dream Developers, LLC, Land Solutions, LLC, The Squad, LLC, among others.....someone buys the lots under Land Solutions employed by them....get the picture now
I can add some actual info to this thread. There are several boiler room operations out of Ft. Myers FL and Gulfport MS that ran ads on the internet for the go zone. They put on seminars and took you to see properties in MS that they would build for you. Most were in Bayside Park, an old downtrodden development in Bay St. Louis, MS. It all looked good and you'd be told by a lender, Harbor Funding by way of C & W funding they'd get you a loan for x amount. This would cover the const, points and when it closed, you'd receive a rent guarantee and decor allowance of 10% back in your pocket, basically 90% loan.
Example-$240K duplex . You place $24K with the developer, Blue OAK CONST (had other names before) who then placed funds into escrow with JPO Title . This is where it gets wierd.
Harbor Funding then requested the funds to go to their escrow agent, Michael D. Garber, a NY and NJ attorney from JPO. The wizard pulling the strings behind the curtain of Harbor Funding is Bill Lange, and supposedly,he requested the funds from Garber. It appears he received them and used them to leverage with a hedge fund overseas by putting up millions to get hundreds of millions to lend.
The developer continued selling pre builds based on the info and potential loans from Lange. I "purchased" 2 duplexes from Blue Oak-Gulf Stream Dev and sent them $48,000. I've been trying to get money back for 6 months. Garber has had his accounts frozen by the Bar in NJ. Lange has now disappeared from Seattle but keeps promising a return of my funds.
I don't know if I'll ever see my $ and I don't know a sINGLE investor that has had a closing on property through these guys. There are still some of those involved above ground in Ft. Myers, and still doing seminars, now selling foreclosures in SW FL.
Be very careful. These folks are in over their heads, or crooks, or slick or all of the above. I have lots of info on all this and would love to join any action or furnish my info to the investigators or FBI. It is a can of worms.
As to any assets of Harbor Funding. Lange pledged a LOT of funds and the ruse was a goldmine or gold stocks he had plus the cash. He closed his office last week and did give me the new phone # for him, but I haven't tried it yet.
Scott- the investigation needs to start right where you are with Garber. He is the key to knowing where the money went. There is an attorney /lender in MN that is out 800K and thinks he'll see his funds returned from the court. He doesn't return calls now. He quoted me 3K to file my request with the court, but I'm not sure he's received anything nor whether Garber or Lange has the funds!!
JPO title is no longer where they were in Ft Myers. I think everyone is scrambling for under ground.
Hows' that for more info on this mess? Rich.
Douglas- I don't know about everyone elses' situation, but I do know mine.
1. My earnest money asked for was 10% and WAS delivered to a Ttitle company, JPO Tittle.
(the previous poster in this thread asked me for a TWENTY % earnest money check to let the seller know I was serious. I didn't consider the 10% to a title company outrageous)
2. The title company was evidently directed by the lender to send deposits to an attorney(Garber) who was sellers' escrow person.
3. Once at Garber office(licensed in NY and NJ), Seller requested funds be sent to himself, the lender, Bill Lange.
4. These transfers of my $48,000 were unknown to me, the buyer.
In most areas, the SELLER will dictate the title company and or escrow agent. In a perfect world, a buyer would be able to send his money to who he wants (uncle Louie) but not in most real estate deals.
The reason this entangled so many people in its' web was not that it was such a great deal, but rather the owner financing offered, as well as the Go Zone Benefits. I've also walked away from more deals than I could count.
If you do enuff deals, you'll have some crooks screw you and this seems to be the situation here. Only time will tell.
To Jeff, Most people didn't go into this because it was "a secret or short cut". I don't even know in this case what you mean.
There were many people that didn't know what go zone was and this seller did. That didn't make it a short cut to anything nor a secret, just something that not many people really understood.
There are many people on this board that ask for help on different subjects. Those subjects aren't "secrets". Just not well known by all, imo.
I also feel sorry for the other folks that have lost funds on this. I doubt any of us will see our funds returned and hope all in the chain of events will be brought to justice.
This "deal" was brought to me by an experienced real estate investor and an experienced loan financing professional who is a friend of the family, and who had his own money and some family members in the deal. We were not looking for a short cut. We trusted that this was a solid investment. In hindsight the escrow documents were loose, but we thought this was a regulated industry. Wouldn't regulations prevent escrow companies and finance companies to be independent? The link is still obscured. I get alternately stonewalled or lied to by them all.
So what can we do? Our $17,880 is a lot, but is it enough to hire an attorney? And what would that do if the crooks are broke. Would we pursue it in CA, MS, or FL? I understand that Scott has the DOJ on this, so we are hopeful, but I have nothing substantial to confirm what is going on on that end. I will do my part for a class action but I do not want to lose another dime on this scam unless I see it going somewhere.
Look, I am a rookie real estate investor. I trusted professionals who are family friends. Other experienced investors like Rich got duped as well. Here is a question for the floor: who can be trusted in this business? How can that be verified? A license seems meaningless.
I absolutely admit to being duped. It wasn't the first time and probably won't be the last time, unfortunately. The same thing has happened to folks when the realtor, seller and appraiser join forces and turn crooked. Nothing to do about it until the crap hits the fan and prosecution begins.
On a side note, I haven't been able to find Bill Lange at his new # for about a week. He may have gone underground. Will keep trying. Rich.
Since I am personally at risk of loosing almost 6 figures on this, I think the biggest lesson I am learning is that licenced and reputable companies are just as easily tricked as novice investors. If the contracts allow for release of funds too easily, there is a risk that someone will abuse that liberty. We need to stop thinking that the other people are going to be watching out for us because their reputation, licence, or financial liability is at risk (that was my own assumption). Remember that the motivation for developers and other intermediaries is to get paid out of a transaction, they are less likely to be thinking about how to reduce the risk to us investors and that needs to be our job. I think that the scammers on this understand our legal and regualtory systems very well and know that most people are not going to spend the money to sue and if they do, there are so many loopholes to prevent us from collecting (like bankrupcy or moving funds to other legal entities).
I am not giving up on recovering my funds, but it is clear to me that I need better legal advice to avoid getting in to these tyoe of messes in the future and a shift in mindset that our legal system is a deterrent for misconduct and fraud.
I am happy to partner with others to go after Harbor Funding.
Rich and Gera
You both are correct. It does not matter it seems like everyday someone is licensed to become a crook. Attorneys, appraisers, realtors and contractors alike. I really believe that you will see justice in one shape form or fashion. Don't give up and don't give in. I think more people should know about these crooks and scams and please continue to notify us of YOUR CONTINUED SUCCESS in tracking these CLOWNS. My deepest apologizes to all of you and I mean that. Some how you will receive your JUSTICE.
SUCCESS BREEDS SUCCESS
Misery loves company, so thanks, guys. Here is a contact update for anyone duped by RC Realty and Escrow. Roger Campagnolo (RC) III moved without telling anyone to:
Home 1st Lending
47th St #3,4
Cape Coral, FL
239-471-7128
His contact info was:
Roger RC Campagnolo
Home 1st Lending / RC Realty & Assoc
12610 World Plaza Lane
Bldg 61 Unit 1
Fort Myers, FL 33907
Cell: 239.770.7308 Ph: 239.415-2010 FX: 239.790.2638
[email protected]
and from http://www.dbcf.state.ms.us/
Company Name : Roger Campagnolo
Doing Business As: Home 1st Lending LLC
Street Address: 1973 Longwood Lake Mary Rd #1007
City, State, Zip: Longwood, FL 32750
He has a number of businesses down there including a restaurant. The last contact I had with him was his advice that I get an attorney to sue Bill Lange. I asked him for the agreement that sent my money to Bill from him and he said, "you can pursue whatever remedy you like."
Is anyone here in a position of going after RC Realty more effectively or locally?
Thanks, guys.
Seems like affiliates of Lange are beginning to pitch alternative financing already. I was shocked. They must have HUGE ba!!s. Anyway, once again, if anyone needs to contact me please PM me. I will get your information to the proper authority at the U.S Attorney's Office where they are handling this investigation.
Carlos, I hope you are now satisfied that you have been contacted by the DOJ.
Scott,
Unbelieveable update. They're still at it.
I am hopeful, but not optimistic. Stay on em.
Scott-
What do I need to do to get in contact with the DOJ? I've e-mailed you a couple times and left a message or two. I have excellent info also for them to use, from Haag to JPO Title, thru Harbor, RC and Lange. How about a reply
Carlos- How do I go about getting the same treatment ? I'd love to talk to DOJ. Thanks. Rich in TX.
Hey I have read the blog and would like to join the ranks. I got duped too. I just got a call from a woman playing middleman for an attorney seeking to start a class action against Lange and more importantly Garber.
Lange's home already has liens against it and it is doubtful he has any funds to recover at this time. Garber on the other hand has a insurance policy that covers him a one time sum of can possibly get some of our funds back. However, reading the posts $25 Million is far beyond his insurance coverance if we look a the difference between the $15Million Garber had in his account around Dec vs. the $40 Million that should of been there.
Needless to say all parties I have spoken to in regard to the Civil Action believe Lange will do some jail time. The economy tanked and the Bernie Madoffs got exposed for what they were.
So what did Lange do with our monies?
The rep today told me that he was doing some backdoor trading and running a ponzi scheme in effect. He used our monies to trade stocks and pay his prior expenses.
I believe there are some good people that worked for Lange that can shed the light on a lot of what was going on. After he closed his offices most of those people fell off the radar too.
Well this all I know. I am recieved a contract from the rep and an agreement that requests 25% of my investment upon settling (which I don't agree with) however, I don't have the time to pursue this wholeheartidly.
Who did you get your letter from? Was the attorney Boynton out of MN? I'd like the contact info also. Rich
Hi all - I'm a UK novice investor and came across this thread during my search to help with exactly this problem. this appears to be the most informed I have found.
We decided to invest our retirement fund in the GO zone, not just because of the potential returns but also we felt it was an ethical investment to help those people so badly affected by hurricane katrina and the terrible aftermath that ensued. We can only begin to imagine the pain and suffering so many have gone through, and the struggle many continue to endure.
Unfortunately, we have been had somewhere along the line.
We invested almost $70000 as deposit on 2 x duplexes in Bayside Park, Biloxi. This was in May 2008. The agents who marketed the deal to us were a firm known as 'Property Direct America' and the director and contact is Danny Silver (he has now chosen to end communications with me as I have been pointing others to threads such as this).
The escrow company is The Title Connection linked to the builder Global Community Development, both based in Florida (St Myers I believe). The fund provider was Harbor Funding Group.
Despite all sorts of chasing information around we are faced with the situation that Global Community Development allegedly deny receiving funds necessary to complete our purchase and build. The title connection allegedly claim the escrow funds were released to Harbour Funding group which was allegedly recommended by a colleague of Mr Silver's, Jeff Pettracco - it is not clear if either have any direct links with Harbor Funding, it is however clear that the lawyer who is available to take up a class action on behalf of clients, (at cost up front of $2k plus 25% of any funds recovered) that a Mr Lang is likely to be a defendant in any action brought. I note the previous posts as to the viability of this!
As we stand, we completed escrow release forms in June 2008 which were clearly understood only to be used upon presentation of appropriate evidence of ownership and exchange of mortgage funds
It now transpires that generic legal advice is suggesting the escrow funds are unrecoverable because the escrow release forms had been signed affording them (title connection) the right to release funds to harbour funding. My only difficulty with this is that no-one, to my knowledge at least, has actually seen an accounting confirming this exchange has taken place
The class action is one that will sue for damages rather than recovery of escrow and I have serious doubts that even by winning the action, there is little chance of recovering the actual cash owed
We have yet to see any form of an accounting from either the title connection, harbor funding or GCD as to any funds that have been exchanged - as far as I am aware at this time, they could even be with the title connection as they have yet to confirm in anything other than emails to agents/individuals and verbal exchanges that they have sent the money to harbour funding - unlikely scenario but again we have absolutely nothing in the form of a legal accounting document that for sure tells us exactly who we should be chasing and why. Needless to say, all 3 firms/parties are now uncontactable which simply adds fuel to the notion of fraudulent activity.
The secondary form of advice is that we should be suing GCD for breach of contract by not completing the build within the contractual timescales - I have difficulty with this as, again, we have no evidence of any exchange of funds to GCD to reasonably allow them to do this
Thirdly, we have a written guarantee from property Direct America, (that is worthless in the circumstances) that they will buy back the properties should we fail srap funding application - again, we need to actually own the properties for this guarantee to be worth anything, and of course, the duff information and advice we have received from the outset has ensured none of us even got a US social security or tax number which is critical to srap.
With no disrespect at all intended to the lawyer recommended by Mr Silver and Mr Pettracco, I have no faith in placing any chance I may have of justice with someone recommended by the same people who recommended Mr Lang. Clearly it is evident their judgement is flawed by virtue of the fact I invested my retirement funds based on their say so and seemingly have lost the lot, so I'm sure anyone reading this can relate to this, and put bluntly, I do not know who to trust from any of the parties involved so an independent path seems appropriate
We are so disheartened by what seemed to be an exciting opportunity to secure not only the future of ourselves, but help others across the other side of the globe as well.
That said, we are also determined not to let this lie and we are building in numbers with other investors who have lost a fortune on this. There are over 100 investors I am aware of in this 'batch' alone, some with much more invested than us and many in our position of having nothing left to lose other than to fight on. It is not yet clear how many will be partaking in the class action, my view is still reserved on this issue and would welcome any advice from more experienced members
We are trying to co-ordinate activity from this side of the pond and as a start point would welcome the kind offer of help from Scott Allan and anyone else who can point us to the appropriate DOJ department dealing with the existing instances of what is quite clearly a fraudulent activity on a massive scale.
I am quite happy for anyone to get in touch with any help through the forum or via PM, email : [EMAIL AND PHONE REMOVED]
Many thanks for reading this post in anticipation of any help anyone can give
Regards
Steve
I don't have time to go into reply in detail right now. Leaving on cruise. Read through the thread. There are others working on this. I wouldn't send any funds to the go between lady that is providing the name of the attorney. Read posts first. I'll help when I have more. Rich.
Not sure if this is already mentioned somewhere here but a new forum has been created to find all the investors / victims
of the Go-zone project involving Global Community Development (Leslie Younger) / Property Direct America (Danny Silver) / Major Financial Services (Jeff or Ellen Petracco)
http://groups.google.com.au/group/go-zone-investors?hl=en-GB
It is called "Go-Zone Investors" . It perhaps should be called "Go-Zone Investors Fraud / Scam Victim Meeting Point"
If you are a investor / victim or you can help in some way
you can also contact me at [REMOVED]
Thanks
Are Jeff and Ellen Involved in this?
They either run or used to run a REIA type group?
Wealth Builders, REEA
Contact: Ellen Petracco
Telephone: (727) 593-3353
When: 3rd Tuesday of every month, 6:15pm
Where: Egypt Shrine Temple, 4050 Dana Shores Dr., Tampa
Jeff- I don't know about those names, but here are some updates.
1. Bill Lange no longer has a contact #. The last one was 253-441-0066.
2. There is a Grand Jury investigating at least part of this scheme.
3. A (or the) U.S. Postal Inspector is also investigating this matter. I have name, # and fax if you have info to provide. PM or e-mail if you have something for him
4. There are several groups out there forming class action suits.
Rich in FL.
For newbie investors reading this thread please understand that there are real estate scam artists all over the place and they have gotten the better of many experienced investors.
Make sure to do as much diligence as possible, and always run contracts and legal paperwork by a qualified and competent attorney.
Remember to check this site, and others like it, for more information about anyone you might be doing business with, certainly on those "too good to be true" deals.
Hi Rich - hope the cruise went well!
We are now pulling together our own independent class action (and other) details for our group. Would welcome any details you have that can help with the enquiries you are making as a number of ours have links to mr lange in terms of particulars of claim and his attorney. We now have details of approx 170 investors affected by this in the same way by the same people, some of whom are referral agents with significant numbers on their books in addition to this as well. Looking at circa $8 million USD so far and counting. A few have spoken recently with Bill Lange and he is selectively answering emails from one of the 17 web domains he has registered, latest being from FCC. Gave us the office number 253 857 2300 and a (really poor) copy of a notice of intent to repay, (what he says) is $2 million in funds he has received back to investors. Said just to ring, speak with Judy with contact details and he could then return the funds - the number contacted through and my colleague spoke with him last thursday. We won't be holding our breath waiting for our money back from him. Mr Lange was insistent that his firm had 'only' received $2 million USD and that GCD had the rest as far as he knew. GCD are saying (not us) that the rest went to Mr Petraccos company Major Financial. Lot of other stuff not appropriate for the forum but would welcome PM if possible. Hope the number still works for you guys who need it!
no surprises here, I'm sure but for information, Property direct America has closed down and is now saying they will comment no further as the case is with their lawyers. GCD and title connection all refuse reasonable communications as do harbour funding and major financial. GCD is reportedly operating under supervision of the chief financial officer, USPIS have formally taken on the investigations as have other law enforcement and licensing body authorites
If anyone reading this has been affected by the main parties to this and would like to join our legal pursuit for return of your funds please place your details on the website http://www.cashneed.co.uk . [Please it is important]at this stage that your case refers to at least one of the lenders- Harbor funding Group or Major Financial Services, the builder - Global Community Development, escrow - the title connection/the squad llc and salespeople Property Direct America if your case is going to be relevant to this action. time is tight and closing for submissions is tuesday 8th september so unfortunately we will need to exclude anyone not meeting this criteria as not to do so would detract from our focus
Thanks all and good luck!
Regards
Steve
Sorry I have been MIA from this board in a while. If there are some people looking to get in touch with me, please send me an e-mail or PM. I have literally hundreds of investors calling me now because of this thread. I don't mind at all because there is strength in numbers and I believe if we work together, justice will be served.
Mr. Tumbarello: Interesting that you mention Ellen Petrecco. That last name has come up quite a few times. Any relation to Jeff Petrecco?
hi scott - ellen is jeff's wife, my colleague spoke with her last week as jeff declined the call - all he got was the usual excuses and denials and how everything was the fault of global etc. hope this helps.
regards
steve
Scott- are you again able to e-mail and return calls? Thanks. Rich.
I did just speak with Bill Lange. Funds will be here next week. I think they're being re-routred through some Nigerian account so PLEASE send in those lottery tickets NOW. Rich
Is there anybody else out there who was not buying GoZone properties through RC Realty but went through Roger C to get financing for properties in another area? That's what happened to me. My "escrow statement" with RC Realty said nothing about the deposit going to Bill Lange or European traders, yet that's what happened. Sounds like fraud to me. Let me know if you're in a similar boat and we could have another lawsuit on the way....
Current update. I spoke with Bill Lange today. Same old story. Hes' expecting the funds to be returned.
Then tonight, there was a huge conference call set up. Several BP members were on the call as well as Brian Haag(Blue oak const),Kevin Haag(Gulf realty ) Steve Boynton(attorney from MN starting class action suit) and Bob Cohen ?? from Toronto(attorney). It was basicly a CYA for Brian, but the others were very helpful. If you want more info on this, PM or e-mail me. I'll be speaking with Boynton tomorrow. I plan on being involved in this class action suit. Rich in Fl today.
Rich:
I believe Blue Oak recommended this rotten financing arrangement. I think Blue Oak should cough up the $250 I paid them to process my SRAP application, since it was mismanaged and denied. That said, I don't see how they are criminally liable for either, and I didn't see that call as a big CYA for Brian Haag. He lost a lot of his own cash and at this point he is helping initiate this class action. I think we all want that, so I'm ready to support the effort as long as it doesn't dent my pocket even more.
My buck stops at Roger Campagnolo, so I'd rather see you focus your sarcastic crapstorm on that jack-hole than BO, but it's your dime.
I was surprised to not hear S.A. on the call...I hope he's still fired up...
-Carlos