WARNING: Harbor Funding Group

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WARNING: Harbor Funding Group

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Real Estate Consultant · Fort Myers, FL · Member since 2008 · 2 posts · 1 vote

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

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Rich Weese
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
17y

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.

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  • William Bannister
    Commercial Landlord · Oshkosh, WI · Member since 2013 · 299 posts · 88 votes
    13y

    Whats sucks is i could have gotten all of you investors nice little rentals you would own free and clear for 17k to 24k. All would have cap rates in the high teens and have professional management. Nice cashflow for all.
    Its sad the investment industry has this much corruption. Its everywhere stock market bond market real estate market even commodities w naked trading and ect. i hope u get resolution to this matter and the people involved taking advantage get due punishment.

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    12y

    It looks like Feb will be the court time. Brooklyn NY and I'll keep you posted. I'm scheduled to testify as of now. Rich

    0Reply
  • Robin Harris
    Graham, WA · Member since 2014 · 1 post · 0 votes
    12y

    Two defendants (Brad Russell and Kristofor Lange) were convicted and a DoJ press release posted here:

    http://www.justice.gov/usao/nye/pr/March14/2014Mar6.php

    They have not been sentenced yet. William C. Lange and Frank Perkins are set for trial September, 2014.

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    12y

    I hope they get the max. I'm scheduled as a potential witness against Lange, but that trial has been delayed 4 times now. It amazes me how long the court stuff takes to put the bad guys away.My 48K was part of the 9 million they got. Rich

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Will Barnard

    Well since I am new to BP I am 6 years behind this thread. At the time of Katrina I was the largest HML in the state of MS. I also bought 11 Go zone SFR's and it was one of the best tax plays I ever made.. Along with buying an airplane and writing off 90% of it year one.. Between those 2 moves I paid very little tax.. But I also saw a ton of riff raff come into the go zone.. And all manner of folks trying to skate around the rules. In addition I got audited by the IRS the first year I took the Go zone bonus depreciation. Many unscrupulous dudes were selling these to anyone when In fact to take the Go Zone bonus deprecation the investment had to be part of your trade and bizz that you were basically full time engaged in.. So a doctor buying a gozone home got it disqualified.. Some like me who was a lender builder developer RE broker I easily qualified and my audit took only 30 minutes.

    In addition you had to BUY NEW construction existing houses did not qualify I had a friend from Oregon buy a used home and said he was going to take the deprecation I had to save him he cancelled the deal but the guy selling it to him told him NP

    Caveot Emptar with all these things.

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    0Reply
  • John Henry
    Glendale, CA · Member since 2014 · 1 post · 0 votes
    12y

    damn, thanks for the heads up.

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    12y

    Bill Lange is scheduled to plead guilty Tomorrow! Hopefully something bad will happen to him and something good for those of us that lost money.

    Rich

    0Reply
  • Ryan Craig
    Realtor · Nashville, TN · Member since 2014 · 148 posts · 46 votes
    12y

    Any updates on this situation? Did anyone ever recoup any of their money?

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    12y

    My automatic update from the Dept. Of Justice has not arrived yet. No one has recouped funds that I know of.

    Rich

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    12y

    Bill Lange and Frank Perkins with Harbor Funding Group pled guilty of 2 counts of fraud, including intent to defraud the U.S. Government. Sentencing is in Feb., 2015.

    Rich

    0Reply
  • Jerry Shriner
    Member since 2009 · 5 posts · 0 votes
    12y

    Do you think he will serve any time?  

    Jerry

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    12y

    I would hope so.

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    11y

    I don't know how to find the original thread on this subject. If someone can find it, please move this post to that thread.

    The dominoes are FINALLY falling. Brad Russell was sentenced to 10 years in prison and a $10,700,000 fine. Kristofer Lange received 5 years probation and $780,000 in fines. The big one that everyone is waiting for is Bill Lange and his sentence. I wish it could be for life.

    Rich

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    11y

    Is this the one you were thinking of, @Rich Weese ?

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    11y

     YES!!!!!

    Thanks Jon.

    Rich

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    11y

    First defendant just sentenced. Brad Russell got 10 years in prison followed by 3 years of supervised probation. Others to follow with sentencing. One down and more to come.

    Rich

    0Reply
  • Edward Ross
    Real Estate Investor · Novato, CA · Member since 2015 · 6 posts · 4 votes
    11y

    Based on this discussion I am officially freaked out about investing money in real estate ventures. How does one effectively investigate/research a fund or investment group prior to investing money?   Over the past 15 years I have lost about $200k on various different third party investments. In three different cases people went to jail due to fraud....doesn't help my wallet, but I guess I got an ounce of satisfaction.  Clearly I don't have the magic formula for screening these ventures/funds.

    0Reply
  • Scott Allan
    Real Estate Investor · Fort Myers, FL · Member since 2008 · 115 posts · 27 votes
    11y

    If anyone is still reading this blog article, I am very pleased to tell everyone that Bill Lange was sentenced to 22 years in Federal Prison yesterday.  This was a long time coming and closure for us all.  Nobody wins here, but this criminal won't be hurting citizens anymore.  At the very least, I'm glad I was able to use my connection withe US Attorney's Office and be personally involved in bringing this jerk to justice.  The prosecutor wanted 18 years, and the judge gave him 22.  He will likely die in jail in a cold concrete cell.  Sorry for this, but :-)  

    1Reply
  • Scott Allan
    Real Estate Investor · Fort Myers, FL · Member since 2008 · 115 posts · 27 votes
    11y

    And here is the article for everyone to hang on their refrigerator:  http://mobile.nytimes.com/2015/03/13/nyregion/after-bilking-victims-of-10-million-serial-swindler-is-sentenced-to-nearly-22-years.html?referrer

    0Reply
  • Scott Allan
    Real Estate Investor · Fort Myers, FL · Member since 2008 · 115 posts · 27 votes
    11y

    One last thing that I'm not sure if anyone is apprised of.  Roger Campagnolo died of a massive heart attack in 2012 while playing intramural soccer, ironically right before he was rumored to be charged.  Died right there on the soccer field.  Roger was a very good friend of mine for years since 2002.  He was about 40 years old with a young daughter.  He got me involved with Bill Lange and in the end I think Roger's intent was to believe in Lange's scam so much that he sold his soul to satan.  I truly believe that Roger was in too deep to tell even his closest friends the truth on what he believed from the beginning was a massive scam.  I believe the heart attack was due to him being a bit overweight, and much worstened by the severe stress of this case.  I've only known Roger as a good, kind hearted guy.  Roger C was sold hook, line, and sinker by Lange.  The GFC was at it's worse and perhaps he was looking for a payday.  Money is the root of all evil ??  

    1Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    11y

    hi Scott,

    I think Lange was actually sentenced several weeks ago. I had several discussions with the Brooklyn district attorney's office and the people that were forming this case against Lange. I also was flown to Brooklyn for a meeting with the Dist. Atty. to add my information to the prosecutor's case. They also asked me for a victim statement which I supplied but it was not used in the sentencing.

    It was pretty obvious that Lange was going to get a significant sentence after Brad Russell received 10 years. Lange was one of the better liars I have ever come in contact with and I think he lied so often that he may have even believed what he was saying somewhat. He was definitely the mastermind but had many people surrounding him that helped to perpetuate the crime.I never saw what the sentence was that the lady in the office received. She was always the one that seemed to answer the phone when I called and was definitely lying for Lange. I'm glad to see that they got everyone that had lied to me about the situation.

    I believe there were two Roger Campagnolos and I met with one in an office across from the crooked title company that had helped with all this information and closings in Fort Myers. I believe he was the same individual you are referring to and not his father. I cannot vouch for his earlier life, but I believe he was as big of a scumbag as was Mr. Lange. He was very smug and not helpful at all in trying to obtain information. May he rest in peace.

    I'm glad all of them eventually received their just due.

    Rich

    2Reply
  • Carlos Mendoza
    Carlsbad, CA · Member since 2009 · 13 posts · 0 votes
    11y

    Scott:  Yes, the audience is still here, including this victim of the crime.  

    All:  Did any money get recovered?  We did not want to throw good money after bad.  I know some folks got attorneys.  Was anyone successful?  

    Rich:  Would appreciate your insight from the front row on the case.

    0Reply
  • Carlos Mendoza
    Carlsbad, CA · Member since 2009 · 13 posts · 0 votes
    11y

    We were hoping to participate in a class action if an attorney wanted to take the case on a contingency, but we did not hear about any takers.  I imagine because of the many details surrounding individual situations.  There were so many individual scams involved.  A shame that all that work was not focused on legitimate business.  Plenty of money and trust was squandered.  What a shame!  Thanks for the updates, Scott & Rich.  Good to see the Karma and Justice system working, however slowly that may seem to be.

    0Reply
  • Lew Payne
    Property Manager · Boise, ID · Member since 2014 · 160 posts · 192 votes
    11y

    That's the problem I find with forums in general, regardless of specialty... anyone can claim anything they want, without facts to back them up.  Anyone can disparage anyone else, or tarnish a company's reputation, without cause or supporting evidence... and do so without public consequence as a result of being able to post anonymously or with a made-up name.

    If posters were somehow grouped (perhaps using banking, credit card, or paypal info) into "identity verified" and "identity unconfirmed" categories and shown as such in their posts, we'd have something meaningful with which to judge their disparaging comments... since verified users run the risk of having to defend their actions in civil court.

    It's a shame that mankind has yet to (and probably never will) transcend beyond the knee-jerk reaction of name-calling and lumping every personal experience as the "only kind of experience others could possibly have" with a company or product.  It's like reading the one-star reviews on Amazon, where the product and company is denigrated because the post office failed to deliver it on time.

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  • Scott Allan
    Real Estate Investor · Fort Myers, FL · Member since 2008 · 115 posts · 27 votes
    11y

    Rich-

    I did not know RC's father, just the younger RC.  I'll admit as a past friend of his, he was never the sharpest spoon in the drawer.  He never had good business sense but as a friend, I did trust him and I fell for it at the time of me holding a very high financial position, so I should have known better.  

    I'm happy you were able to provide the DOJ info as I'm sure many victims did.  I met with them several times in Brooklyn and it was my connection with the DOJ who graciously pushed this in front of the prosecutors for the case to be investigated.  Nobody will know his name on this forum, but I will be taking him for a beer next time I'm in NY.  It was a very long process but a huge win for them and all of us.  I was nearly a government witness, however I'm pretty sure the DOJ saw that my temper was very short and that I probably would have kicked the **** out of Lange on the stand and blew up the case :-)

    Carlos: At this point, I don't believe there is money to go after.  The government seized assets that will likely be distributed, but I'm not familiar with that part right now.  At this point, I have closure knowing that Lange is done.  Hoping everyone can move on or find additional closure down the road with some type of reimbursement.

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