Investor Warning – Experience with Stuart Fox / Fox Financial (Orem, UT)
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Investor Warning – Experience with Stuart Fox / Fox Financial (Orem, UT)
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Member since 2024 · 18 posts · 6 votes
6moSpecial Agent (Redacted)
HIS/DHS Financial Crimes
Dear Special Agents (Redacted);
The enclosed information arose serendipitously during the research into the Reg D multifamily real estate sector, which thus far includes completed reports on, Cardone Capital, Bam Capital , Gray Capital, LLC, Viking Capital, QC Capital, and Vonfinch Capital. The reasons for this report? Fox Financial, LLC, by their own admission, is a hybrid between a hard money lender guaranteeing investors 18% annual returns and a "multifamily real estate company." According to their website, Fox Financial, LLC is a:
“real estate investment company - we're a team of professionals who are passionate about helping you achieve your financial goals. Whether you're a seasoned investor or new to the game, we've got the knowledge, expertise, and dedication to make sure your money works for you,” ( Link ).
As it relates specifically to Fox Financial LLC's multifamily presence, an important, clarifying social media post states that:
“At Fox Financial, we specialize in multifamily investing, bringing you opportunities to enjoy significant cash flow and tax advantages,” ( Link )
Given the use of proceeds for the “loan notes” to invest in two smaller apartment buildings, this case should be categorized as a multifamily Reg D apparent financial fraud.
Corporate filings from the state of Utah reveal that Fox Financial, LLC began in July, 2020 (articles of incorporation included as an addendum) and the company has an address on their Facebook page in Orem, Utah, ( Link ). The company website explains their entrance into the lending business by stating:
“In addition to our focus on real estate investment, we also operate a mortgage company and a hard money lending company, giving us a comprehensive understanding of the real estate market,” - ( Link )
Approach
There are rare instances in financial investment fraud cases where the evidence supports the presence of “hard fraud”, enabling a “fast-track” approach to presenting law enforcement with the necessary evidence. This appears to be one of those instances. Our background check on Mr. Fox reveals his involvement with numerous corporations and companies, including Fox Capital ( Link ), “Connected Investors” ( Link ), and Fox Management Company ( Link ). These were not the focus of this report due to sufficient evidence of blatant fraudulent 18% "guaranteed" returns promised through the unregistered Fox Financial, LLC offering to fund two apartment buildings.
This report aims to present everything law enforcement needs to determine the high likelihood of financial crime in progress. We obtained primary source documentation, including websites, emails, legally taped calls with President Stuart Fox, actual loan notes guaranteeing 18% annual returns, searches on the Utah Division of Real Estate and the Utah Division of Professional Licensing, a deep background search on Mr. Stuart Fox and Fox Financial, LLC (included as addendums), social media posts, YouTube videos, regulatory filings, and public records.
Several Red Flags for Fraud at Fox Financial, LLC
Red Flag One, Irrational Ratios Compared to Industry Standards:
Fox Financial, LLC's most recent pitch qualifies them as a "mini" Reg D multifamily real estate offering. This classification is due to the "use of proceeds" in the loan note to purchase two apartment buildings, a 22-unit project in Illinois and a 9-unit residential apartment building in Ohio. The guaranteed 18% annual interest payment to investors makes Fox Financial LLC's cost of capital unsustainable and inconsistent with the industry average. Despite being smaller than Cardone Capital, Mr. Fox is a multifamily promoter without the Reg D exemption filing.
The research of Craig McCann and Joshua Mallet is relevant in establishing an objective, accepted gross profit and net profit margin for the industry. Their study comparing private REITS versus public REITS ( Link ), conclusively demonstrated that public REITS outperform private REITS by at least 8% annually. When investing in an equity REIT, you invest in a real estate company that owns and operates a portfolio of properties, paying investors dividend income. Although the Mallet-McCann study included various real estate types, the conclusions are still applicable to the multifamily model for comparison purposes.
Private Reg D real estate companies that offer 18% returns, must compete with other promoters offering similarly untenable returns and deal with inflation and escalating borrowing costs. For a private Reg D multifamily company to guarantee returns not seen or sustained over long periods of time in the public REIT market clearly demonstrates that Fox Financial, LLC is offering an irrational return unsupported by industry standard understood gross profit margin and annual net return to investors. On page two of the Mallet-McCann report, the findings are summarized as follows:
Public REITS dominate due to better capitalization, access to the public markets, accountable senior management, independent proof of profitability, transparent reporting requirements, and the ability to purchase properties with better terms. Arguing that Mr. Fox can somehow generate returns that public REITS cannot achieve defies logic. Given the current real estate market conditions, including foreclosures and halted distributions by firms like Ashcroft Capital which has been covered by the WSJ—( Link ), Fox Financials’ guaranteed returns seem implausible. Stuart Fox’s claim of achieving 18% guaranteed returns is unrealistic, especially without independent proof of profitability or audited financials.
Fox Financial, LLC began in 2020, has had plenty of time to confirm guaranteed returns to investors via CPA-audited financial statements. The only way to differentiate between truthful and false promised returns is through an independent auditor. If a promoter cannot generate enough revenue to pay investors 18% annually and knew this at the time of funding, it constitutes a material misrepresentation. Meaning, projections are fine, but guarantees are fraud if the promoter knew they cannot be achieved at the time of the acceptance of the funds. Independent proof of profitability crucial, yet often absent in Reg D multifamily real estate. This strategy is common among fraudulent promoters, as highlighted in the Bam Capital report.
Sadly, the only proof of profitability provided by Mr. Fox is the testimony of satisfied investors who have received their funds. Perpetrators rely on these investors to promote their offerings without independent verification. The absence of real business generating the promised returns necessitates timely payments to maintain the illusion of profitability. This strategy is common among fraudulent promoters, including Fox Financial, LLC.
Finally, and the hope of the perpetrator, is that the family and friends, when referred to invest, perform their due diligence with their hearts (“my brother Jimmy just made a killing in this deal, he got paid on time all the time, must be legit, I’m all in”), and not with their heads (“can you please provide me with independently prepared financial statements that corroborate the returns you are offering?”). If the latter, from the head approach is used and not the heart approach there would be no trillion-dollar multifamily Reg D fraud to worry about.
Red Flag Two, Security of Investment Misrepresented:
The second red flag we identified involves material misrepresentation regarding the security of the investment. In addition to the unsustainable guaranteed returns a short video on the official Fox Financial, LLC website specifically says that investor funds are, "meticulously secured by the property itself,” and also secured by “collateralized by our extensive portfolio of properties nationwide” assuring investors that they are “in first position on the property,” ( Link ). The exact quote is between 28 and 49 seconds. This clear promise that investments are secured by real estate is reiterated on social media, where ads state: “Ready to invest & earn 18% annual interest? First lien position mortgage 👊🏻 - text 801-900-XXXX,” ( Link ).
The claim of “meticulous” security by the property itself is critical as investors rely on these assurances to protect their principal investment. However, what is preached is not practiced. For example, the loan note sent for the proposed $750,000 loan, included in the addendum below, and the email dated May 16, 2024 omit any reference to the promised secured investment. Despite multiple assurances of a secured investment, the loan agreement lacks any mention of collateral.
When pressed about the lack of promised collateral, Mr. Fox responded vaguely, referring to "other properties" owned by Fox Financial, LLC nationwide. However, no property addresses or breakdowns of loan-to-value ratios (LTVs) were provided to determine if these properties had viable equity and legal ownership to secure the $750,000 loan. In summary, the May 16, 2024 loan note, sent directly from Stuart Fox to a potential investor, contains no security (collateral), making Mr. Fox's assurances materially misleading. This also affects Keith Werner's potential $155,000 investment. The clear representation in the video and the material misrepresentation in the loan note leave the investor with no legal recourse despite the promises made to induce investment.
Red Flag Three, Points of Similarity with Known Frauds:
We identified several points of similarity between Fox Financial, LLC and other known fraudulent schemes, such as Par Three Financial, Titanium Capital and most importantly Woodbridge Group of Companies, LLC
In the case of Par Three Financial ( Link ), Melvin Ruth raised $8 million from 120 investors, promising 2% monthly returns for “loan notes”, which turned out to be a Ponzi scheme. The loans were purportedly to provide check cashing companies with working capital. In December 2023, the SEC shut down Titanium Capital in Florida for raising $5.3 million from 160 investors for a “multicurrency investment scheme” that was also a Ponzi scheme. I was involved in uncovering both cases. In the Titanium Capital case, I was given a promissory note by the promoter, Mr. Abdu, guaranteeing an 18% annual return. This exact 18% annual, guaranteed-interest rate is what Mr. Fox currently offers in social media ads and actual loan notes to investors
The most significant loan note fraud in recent years is Woodbridge Group of Companies, LLC. The points of similarity with Fox Financial, LLC are undeniable. According to charging documents, the Woodbridge business model involved soliciting money from investors (Mr. Fox is doing that on social media); and issuing investors promissory notes in exchange. Investors were promised high monthly interest rates, some as high as 6% per month for investments of 100k or more ( Link ) ( Link ).
Woodbridge offered higher interest rates for investors meeting certain investment amounts, and Fox Financial, LLC uses the same strategy. Their 90-second video outlines the following structured returns:
- 1. Category One Investors: 18% guaranteed returns (fixed), dispursed through a balloon note after 12 months.
- 2. Category Two Investors: 2% guaranteed annual returns with monthly interest payments over 24 months and a lump sum payout at the term's conclusion.
- 3. Category Three Investors: For $100,000 or more, equity partnerships are offered, though the video is vague about the specifics of this third category.
The similarities between Fox Financial, LLC and Woodbridge Group of Companies, LLC are clear. Both engage in aggressive solicitation of investors through platforms like Instagram and Facebook, use "loan notes" as the investment vehicle, offer high returns, and have structured returns escalating by investment amount.
Finally, FINRA warned investors in an article titled, “Loan Notes Can be Less Than Promised,” ( Link ), that loan notes are securities. Remember there was no Reg D exemption filed for this investment offering, and such offerings are often promise “guaranteed returns.”
Red Flag 4, Lack of Licensing and Regulatory Compliance:
Another problematic find involves the guaranteed, unusually high returns and loan notes offered by Fox Financial, LLC, which are essentially doomed by design. Almost every state and federal regulatory agency warns investors that any investment offering a "guaranteed return,” especially one with unusually high 18% annual return (especially when T-bills only fetch about 5. 5%) is a huge red flag for fraud, ranking at the top of regulator “warning” lists. Consider the following from the SEC that provides several good examples of past fraud cases that had offered investors guaranteed, untenable returns:
“In one major regulatory crackdown on the fraudulent sales of promissory notes, securities regulators nationwide brought 370 actions against firms that defrauded more than 4,500 investors of $170 million. The sellers of bogus notes promise high, fixed-rate returns ranging as high as 15 to 20 percent coupled with “guaranteed safety.” They market these notes to individual investors, hoping to lure buyers who won’t ask how such a high-yield investment could carry such a low risk,” - ( Link )
The marketing for Fox Financial, LLC like most Reg D multifamily real estate company's and loan note offering entities, defaults to social media (Instagram and Facebook) to peddle their investment opportunities. A sample social media post from Fox Financial, LLC is included as an addendum.
The above quote practically describes Fox Financial, LLC's offering word for word: 18% guaranteed return (within the 15-20% range) and no risk because of collateral explicitly promised by Fox Financial, LLC's official website and later by Stuart Fox personally. However, the language of collateral security is ironically absent from the loan note itself. To induce investment, investors are promised real estate collateral and trust deeds on properties, but these promises are omitted during the actual funding process.
Moreover, the loan note does not include mortgage liens on any past or current property, any mention of security for the investor, or any UCC-1 filings showing the investor as the secured party. The only mention of “collateral” is in an email response from Stuart Fox, accompanied by a double fist emoji.
And Lastly, Fox Financial, LLC has no licensing as a lender or even a mortgage broker, nor have they filed Reg D exemptions with the SEC. Peter Del Greco, a longtime lawyer at the Los Angeles office of the SEC always used to tell me that he would typically not file an action on an investment company if the only issue was an absence of proper registration. However, he was quick to follow up and add that in these instances where there is an absence of proper registration (including a simple, Reg D exemption filing), there is likely the presence of material misrepresentations or more serious securities violations.
Although Mr. Fox is careful to pitch to "accredited" investors only, a thorough search of the SEC website using "Stuart Fox" and "Fox Financial, LLC" showed that no exempt offerings had been filed. Mr. Fox does have a license as an "insurance producer" (license number 481705), and a previous real estate brokers license which expired in 2019 (license number 201207661). This license appears to have been used with a company called Premier Property Group ( Link ) with the latest post in 2014.
An online search with the Utah Division of Professional Licensing and the Utah Division of Real Estate showed that neither Mr. Stuart Fox nor Fox Financial, LLC had a current and active lending license. In Utah and other states, such as California, Arizona, Nevada, Idaho, Oregon, Minnesota, South Dakota, North Dakota, and Vermont, a lending license is required for non-owner-occupied BPL, even if limited to "hard money lending." Despite the October ruling from the 2nd Circuit, which fell short of determining that loan notes are securities, the minimal requirement is a Reg D filing to ensure the audience is limited to accredited investors.
Consequently, Fox Financial LLC's failure to file an exemption for his latest offering is consistent with a "flying under the radar" regulatory approach. To summarize, from the absence of registering an exempt offering with the SEC to the failure to obtain a lending license in Utah, Mr. Fox is an unlicensed broker-dealer selling a loan note opportunity with a guaranteed return, despite neither he nor Fox Financial, LLC being legally allowed to lend money.
Conclusion
Fox Financial, LLC appears to be a financial crime in progress. Offering a guaranteed return in a multifamily Reg D real estate deal (minus the actual registration) aggressively on social media in an industry on the financial ropes with no collateral (preached, not practiced) is ample evidence that the company and Mr. Stuart Fox are dangers to the investment community.
Addendum Emails and Loan Notes, Social Media Post(s)
9 Unit Cash Flow Scenario:
Source: ( Link
)
37 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes6mo
There are other posts here on BiggerPockets about this topic
7e investments53 Reviews - Member since 2026 · 45 posts · 23 votes6mo
The other thread about Staurt Fox I see has been deleted as "advertising." I think that is very unfair, the purpose of the threads was to make people aware of a notorious scammer who is up to 7 million dollars of missing money.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes6moI am curious why they remove that as I do not believe those advertising and typically can just remove one person's comment and not the entire read post.
Quote from @Jack Swanson:
The other thread about Staurt Fox I see has been deleted as "advertising." I think that is very unfair, the purpose of the threads was to make people aware of a notorious scammer who is up to 7 million dollars of missing money.
7e investments53 Reviews - Member since 2026 · 45 posts · 23 votes6moChris, thank you for responding to this, I see you are also a mod here. A mod named
Quote from @Chris Seveney:
I am curious why they remove that as I do not believe those advertising and typically can just remove one person's comment and not the entire read post.Quote from @Jack Swanson:
The other thread about Staurt Fox I see has been deleted as "advertising." I think that is very unfair, the purpose of the threads was to make people aware of a notorious scammer who is up to 7 million dollars of missing money.
Sandra Lei M. is the one who pulled down the entire Stuart Fox thread. It seems unfair because no one on there was advertising anything, it was more information/warning for people to steer clear of Stuart Fox.
As I had posted in that thread, the total amount scammed is now over 7 million, and another new victim contacted me via Reddit just this morning. We are lately averaging one new victim per day contacting me via Reddit or via this site.
What's scary is that Stuart Fox was soliciting new investors on TikTok as recently as last month with his 18% interest pitch.
Stuart Fox is also a member here for a long time, so if there is an explanation for everything he is accused of, IDK why he wouldn't come on these threads and explain all of this to everyone. I see no valid reason why that thread should have been deleted.
Has this site every thought of having a scam warning category? That would be a perfect place for info about Stuart Fox. The thing about Stuart Fox is that these are not just empty accusations, there is concrete proof contained in legal pleadings filed in court by attorneys that support 100% everything that Stuart is accused of beyond any reasonable doubt.
- 6moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Swanson:
Chris, thank you for responding to this, I see you are also a mod here. A mod namedQuote from @Chris Seveney:
I am curious why they remove that as I do not believe those advertising and typically can just remove one person's comment and not the entire read post.Quote from @Jack Swanson:
The other thread about Staurt Fox I see has been deleted as "advertising." I think that is very unfair, the purpose of the threads was to make people aware of a notorious scammer who is up to 7 million dollars of missing money.
Sandra Lei M. is the one who pulled down the entire Stuart Fox thread. It seems unfair because no one on there was advertising anything, it was more information/warning for people to steer clear of Stuart Fox.
As I had posted in that thread, the total amount scammed is now over 7 million, and another new victim contacted me via Reddit just this morning. We are lately averaging one new victim per day contacting me via Reddit or via this site.
What's scary is that Stuart Fox was soliciting new investors on TikTok as recently as last month with his 18% interest pitch.
Stuart Fox is also a member here for a long time, so if there is an explanation for everything he is accused of, IDK why he wouldn't come on these threads and explain all of this to everyone. I see no valid reason why that thread should have been deleted.
Has this site every thought of having a scam warning category? That would be a perfect place for info about Stuart Fox. The thing about Stuart Fox is that these are not just empty accusations, there is concrete proof contained in legal pleadings filed in court by attorneys that support 100% everything that Stuart is accused of beyond any reasonable doubt.
maybe the threads would stay up if there was education for investors on how to protect themselves . There were millions probably 100 million plus lost in syndication deals the last few years and BP start a how to vette syndicator area. But I think its a fair point the norada posts stay up with hundreds of posts.. The clayton MOrris debacle .
So maybe if the post explained what the investors did ( of course many I dont think really know what they acutally did or invested in) and then details on how to protect themselves by doing basic commen sense due diligence and making sure money for mortgage or trust deed investments goes through a title company with corresponding lenders title insurance. that would have prevented what I am seeing your Post Jack probably 80% of the folks from this situation. - Member since 2026 · 45 posts · 23 votes6mo
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Chris, thank you for responding to this, I see you are also a mod here. A mod namedQuote from @Chris Seveney:
I am curious why they remove that as I do not believe those advertising and typically can just remove one person's comment and not the entire read post.Quote from @Jack Swanson:
The other thread about Staurt Fox I see has been deleted as "advertising." I think that is very unfair, the purpose of the threads was to make people aware of a notorious scammer who is up to 7 million dollars of missing money.
Sandra Lei M. is the one who pulled down the entire Stuart Fox thread. It seems unfair because no one on there was advertising anything, it was more information/warning for people to steer clear of Stuart Fox.
As I had posted in that thread, the total amount scammed is now over 7 million, and another new victim contacted me via Reddit just this morning. We are lately averaging one new victim per day contacting me via Reddit or via this site.
What's scary is that Stuart Fox was soliciting new investors on TikTok as recently as last month with his 18% interest pitch.
Stuart Fox is also a member here for a long time, so if there is an explanation for everything he is accused of, IDK why he wouldn't come on these threads and explain all of this to everyone. I see no valid reason why that thread should have been deleted.
Has this site every thought of having a scam warning category? That would be a perfect place for info about Stuart Fox. The thing about Stuart Fox is that these are not just empty accusations, there is concrete proof contained in legal pleadings filed in court by attorneys that support 100% everything that Stuart is accused of beyond any reasonable doubt.
maybe the threads would stay up if there was education for investors on how to protect themselves . There were millions probably 100 million plus lost in syndication deals the last few years and BP start a how to vette syndicator area. But I think its a fair point the norada posts stay up with hundreds of posts.. The clayton MOrris debacle .
So maybe if the post explained what the investors did ( of course many I dont think really know what they acutally did or invested in) and then details on how to protect themselves by doing basic commen sense due diligence and making sure money for mortgage or trust deed investments goes through a title company with corresponding lenders title insurance. that would have prevented what I am seeing your Post Jack probably 80% of the folks from this situation.Jay, I agree with you but it doesn't give people like Stuart Fox the right to steal people's money via frauds and swindles. And it doesn't explain why the other thread was deleted by a moderator when nothing was being advertised in that thread. There were no "after scammers" offering to get anyone's money back.
By now everyone realizes that Stuart is likely judgment proof, most of his buildings have been long since lost to foreclosure and the other money likely burned off on his extravagent lifestyle, which is illustrated by the many lavish foreign trips/travels he posted on his TikTok.
- Member since 2024 · 18 posts · 6 votes6mo
Special Agent (Redacted)
HIS/DHS Financial Crimes
Dear Special Agents (Redacted);
The enclosed information arose serendipitously during the research into the Reg D multifamily real estate sector, which thus far includes completed reports on, Cardone Capital, Bam Capital , Gray Capital, LLC, Viking Capital, QC Capital, and Vonfinch Capital. The reasons for this report? Fox Financial, LLC, by their own admission, is a hybrid between a hard money lender guaranteeing investors 18% annual returns and a "multifamily real estate company." According to their website, Fox Financial, LLC is a:
“real estate investment company - we're a team of professionals who are passionate about helping you achieve your financial goals. Whether you're a seasoned investor or new to the game, we've got the knowledge, expertise, and dedication to make sure your money works for you,” ( Link ).
As it relates specifically to Fox Financial LLC's multifamily presence, an important, clarifying social media post states that:
“At Fox Financial, we specialize in multifamily investing, bringing you opportunities to enjoy significant cash flow and tax advantages,” ( Link )
Given the use of proceeds for the “loan notes” to invest in two smaller apartment buildings, this case should be categorized as a multifamily Reg D apparent financial fraud.
Corporate filings from the state of Utah reveal that Fox Financial, LLC began in July, 2020 (articles of incorporation included as an addendum) and the company has an address on their Facebook page in Orem, Utah, ( Link ). The company website explains their entrance into the lending business by stating:
“In addition to our focus on real estate investment, we also operate a mortgage company and a hard money lending company, giving us a comprehensive understanding of the real estate market,” - ( Link )
Approach
There are rare instances in financial investment fraud cases where the evidence supports the presence of “hard fraud”, enabling a “fast-track” approach to presenting law enforcement with the necessary evidence. This appears to be one of those instances. Our background check on Mr. Fox reveals his involvement with numerous corporations and companies, including Fox Capital ( Link ), “Connected Investors” ( Link ), and Fox Management Company ( Link ). These were not the focus of this report due to sufficient evidence of blatant fraudulent 18% "guaranteed" returns promised through the unregistered Fox Financial, LLC offering to fund two apartment buildings.
This report aims to present everything law enforcement needs to determine the high likelihood of financial crime in progress. We obtained primary source documentation, including websites, emails, legally taped calls with President Stuart Fox, actual loan notes guaranteeing 18% annual returns, searches on the Utah Division of Real Estate and the Utah Division of Professional Licensing, a deep background search on Mr. Stuart Fox and Fox Financial, LLC (included as addendums), social media posts, YouTube videos, regulatory filings, and public records.
Several Red Flags for Fraud at Fox Financial, LLC
Red Flag One, Irrational Ratios Compared to Industry Standards:
Fox Financial, LLC's most recent pitch qualifies them as a "mini" Reg D multifamily real estate offering. This classification is due to the "use of proceeds" in the loan note to purchase two apartment buildings, a 22-unit project in Illinois and a 9-unit residential apartment building in Ohio. The guaranteed 18% annual interest payment to investors makes Fox Financial LLC's cost of capital unsustainable and inconsistent with the industry average. Despite being smaller than Cardone Capital, Mr. Fox is a multifamily promoter without the Reg D exemption filing.
The research of Craig McCann and Joshua Mallet is relevant in establishing an objective, accepted gross profit and net profit margin for the industry. Their study comparing private REITS versus public REITS ( Link ), conclusively demonstrated that public REITS outperform private REITS by at least 8% annually. When investing in an equity REIT, you invest in a real estate company that owns and operates a portfolio of properties, paying investors dividend income. Although the Mallet-McCann study included various real estate types, the conclusions are still applicable to the multifamily model for comparison purposes.
Private Reg D real estate companies that offer 18% returns, must compete with other promoters offering similarly untenable returns and deal with inflation and escalating borrowing costs. For a private Reg D multifamily company to guarantee returns not seen or sustained over long periods of time in the public REIT market clearly demonstrates that Fox Financial, LLC is offering an irrational return unsupported by industry standard understood gross profit margin and annual net return to investors. On page two of the Mallet-McCann report, the findings are summarized as follows:
Public REITS dominate due to better capitalization, access to the public markets, accountable senior management, independent proof of profitability, transparent reporting requirements, and the ability to purchase properties with better terms. Arguing that Mr. Fox can somehow generate returns that public REITS cannot achieve defies logic. Given the current real estate market conditions, including foreclosures and halted distributions by firms like Ashcroft Capital which has been covered by the WSJ—( Link ), Fox Financials’ guaranteed returns seem implausible. Stuart Fox’s claim of achieving 18% guaranteed returns is unrealistic, especially without independent proof of profitability or audited financials.
Fox Financial, LLC began in 2020, has had plenty of time to confirm guaranteed returns to investors via CPA-audited financial statements. The only way to differentiate between truthful and false promised returns is through an independent auditor. If a promoter cannot generate enough revenue to pay investors 18% annually and knew this at the time of funding, it constitutes a material misrepresentation. Meaning, projections are fine, but guarantees are fraud if the promoter knew they cannot be achieved at the time of the acceptance of the funds. Independent proof of profitability crucial, yet often absent in Reg D multifamily real estate. This strategy is common among fraudulent promoters, as highlighted in the Bam Capital report.
Sadly, the only proof of profitability provided by Mr. Fox is the testimony of satisfied investors who have received their funds. Perpetrators rely on these investors to promote their offerings without independent verification. The absence of real business generating the promised returns necessitates timely payments to maintain the illusion of profitability. This strategy is common among fraudulent promoters, including Fox Financial, LLC.
Finally, and the hope of the perpetrator, is that the family and friends, when referred to invest, perform their due diligence with their hearts (“my brother Jimmy just made a killing in this deal, he got paid on time all the time, must be legit, I’m all in”), and not with their heads (“can you please provide me with independently prepared financial statements that corroborate the returns you are offering?”). If the latter, from the head approach is used and not the heart approach there would be no trillion-dollar multifamily Reg D fraud to worry about.
Red Flag Two, Security of Investment Misrepresented:
The second red flag we identified involves material misrepresentation regarding the security of the investment. In addition to the unsustainable guaranteed returns a short video on the official Fox Financial, LLC website specifically says that investor funds are, "meticulously secured by the property itself,” and also secured by “collateralized by our extensive portfolio of properties nationwide” assuring investors that they are “in first position on the property,” ( Link ). The exact quote is between 28 and 49 seconds. This clear promise that investments are secured by real estate is reiterated on social media, where ads state: “Ready to invest & earn 18% annual interest? First lien position mortgage 👊🏻 - text 801-900-XXXX,” ( Link ).
The claim of “meticulous” security by the property itself is critical as investors rely on these assurances to protect their principal investment. However, what is preached is not practiced. For example, the loan note sent for the proposed $750,000 loan, included in the addendum below, and the email dated May 16, 2024 omit any reference to the promised secured investment. Despite multiple assurances of a secured investment, the loan agreement lacks any mention of collateral.
When pressed about the lack of promised collateral, Mr. Fox responded vaguely, referring to "other properties" owned by Fox Financial, LLC nationwide. However, no property addresses or breakdowns of loan-to-value ratios (LTVs) were provided to determine if these properties had viable equity and legal ownership to secure the $750,000 loan. In summary, the May 16, 2024 loan note, sent directly from Stuart Fox to a potential investor, contains no security (collateral), making Mr. Fox's assurances materially misleading. This also affects Keith Werner's potential $155,000 investment. The clear representation in the video and the material misrepresentation in the loan note leave the investor with no legal recourse despite the promises made to induce investment.
Red Flag Three, Points of Similarity with Known Frauds:
We identified several points of similarity between Fox Financial, LLC and other known fraudulent schemes, such as Par Three Financial, Titanium Capital and most importantly Woodbridge Group of Companies, LLC
In the case of Par Three Financial ( Link ), Melvin Ruth raised $8 million from 120 investors, promising 2% monthly returns for “loan notes”, which turned out to be a Ponzi scheme. The loans were purportedly to provide check cashing companies with working capital. In December 2023, the SEC shut down Titanium Capital in Florida for raising $5.3 million from 160 investors for a “multicurrency investment scheme” that was also a Ponzi scheme. I was involved in uncovering both cases. In the Titanium Capital case, I was given a promissory note by the promoter, Mr. Abdu, guaranteeing an 18% annual return. This exact 18% annual, guaranteed-interest rate is what Mr. Fox currently offers in social media ads and actual loan notes to investors
The most significant loan note fraud in recent years is Woodbridge Group of Companies, LLC. The points of similarity with Fox Financial, LLC are undeniable. According to charging documents, the Woodbridge business model involved soliciting money from investors (Mr. Fox is doing that on social media); and issuing investors promissory notes in exchange. Investors were promised high monthly interest rates, some as high as 6% per month for investments of 100k or more ( Link ) ( Link ).
Woodbridge offered higher interest rates for investors meeting certain investment amounts, and Fox Financial, LLC uses the same strategy. Their 90-second video outlines the following structured returns:
- 1. Category One Investors: 18% guaranteed returns (fixed), dispursed through a balloon note after 12 months.
- 2. Category Two Investors: 2% guaranteed annual returns with monthly interest payments over 24 months and a lump sum payout at the term's conclusion.
- 3. Category Three Investors: For $100,000 or more, equity partnerships are offered, though the video is vague about the specifics of this third category.
The similarities between Fox Financial, LLC and Woodbridge Group of Companies, LLC are clear. Both engage in aggressive solicitation of investors through platforms like Instagram and Facebook, use "loan notes" as the investment vehicle, offer high returns, and have structured returns escalating by investment amount.
Finally, FINRA warned investors in an article titled, “Loan Notes Can be Less Than Promised,” ( Link ), that loan notes are securities. Remember there was no Reg D exemption filed for this investment offering, and such offerings are often promise “guaranteed returns.”
Red Flag 4, Lack of Licensing and Regulatory Compliance:
Another problematic find involves the guaranteed, unusually high returns and loan notes offered by Fox Financial, LLC, which are essentially doomed by design. Almost every state and federal regulatory agency warns investors that any investment offering a "guaranteed return,” especially one with unusually high 18% annual return (especially when T-bills only fetch about 5. 5%) is a huge red flag for fraud, ranking at the top of regulator “warning” lists. Consider the following from the SEC that provides several good examples of past fraud cases that had offered investors guaranteed, untenable returns:
“In one major regulatory crackdown on the fraudulent sales of promissory notes, securities regulators nationwide brought 370 actions against firms that defrauded more than 4,500 investors of $170 million. The sellers of bogus notes promise high, fixed-rate returns ranging as high as 15 to 20 percent coupled with “guaranteed safety.” They market these notes to individual investors, hoping to lure buyers who won’t ask how such a high-yield investment could carry such a low risk,” - ( Link )
The marketing for Fox Financial, LLC like most Reg D multifamily real estate company's and loan note offering entities, defaults to social media (Instagram and Facebook) to peddle their investment opportunities. A sample social media post from Fox Financial, LLC is included as an addendum.
The above quote practically describes Fox Financial, LLC's offering word for word: 18% guaranteed return (within the 15-20% range) and no risk because of collateral explicitly promised by Fox Financial, LLC's official website and later by Stuart Fox personally. However, the language of collateral security is ironically absent from the loan note itself. To induce investment, investors are promised real estate collateral and trust deeds on properties, but these promises are omitted during the actual funding process.
Moreover, the loan note does not include mortgage liens on any past or current property, any mention of security for the investor, or any UCC-1 filings showing the investor as the secured party. The only mention of “collateral” is in an email response from Stuart Fox, accompanied by a double fist emoji.
And Lastly, Fox Financial, LLC has no licensing as a lender or even a mortgage broker, nor have they filed Reg D exemptions with the SEC. Peter Del Greco, a longtime lawyer at the Los Angeles office of the SEC always used to tell me that he would typically not file an action on an investment company if the only issue was an absence of proper registration. However, he was quick to follow up and add that in these instances where there is an absence of proper registration (including a simple, Reg D exemption filing), there is likely the presence of material misrepresentations or more serious securities violations.
Although Mr. Fox is careful to pitch to "accredited" investors only, a thorough search of the SEC website using "Stuart Fox" and "Fox Financial, LLC" showed that no exempt offerings had been filed. Mr. Fox does have a license as an "insurance producer" (license number 481705), and a previous real estate brokers license which expired in 2019 (license number 201207661). This license appears to have been used with a company called Premier Property Group ( Link ) with the latest post in 2014.
An online search with the Utah Division of Professional Licensing and the Utah Division of Real Estate showed that neither Mr. Stuart Fox nor Fox Financial, LLC had a current and active lending license. In Utah and other states, such as California, Arizona, Nevada, Idaho, Oregon, Minnesota, South Dakota, North Dakota, and Vermont, a lending license is required for non-owner-occupied BPL, even if limited to "hard money lending." Despite the October ruling from the 2nd Circuit, which fell short of determining that loan notes are securities, the minimal requirement is a Reg D filing to ensure the audience is limited to accredited investors.
Consequently, Fox Financial LLC's failure to file an exemption for his latest offering is consistent with a "flying under the radar" regulatory approach. To summarize, from the absence of registering an exempt offering with the SEC to the failure to obtain a lending license in Utah, Mr. Fox is an unlicensed broker-dealer selling a loan note opportunity with a guaranteed return, despite neither he nor Fox Financial, LLC being legally allowed to lend money.
Conclusion
Fox Financial, LLC appears to be a financial crime in progress. Offering a guaranteed return in a multifamily Reg D real estate deal (minus the actual registration) aggressively on social media in an industry on the financial ropes with no collateral (preached, not practiced) is ample evidence that the company and Mr. Stuart Fox are dangers to the investment community.
Addendum Emails and Loan Notes, Social Media Post(s)
9 Unit Cash Flow Scenario:
Source: ( Link ) - Member since 2024 · 18 posts · 6 votes6mo
The date of the report, only posted because of the numerous inquiries, was May 27, 2024 Report Issued to SEC et al on Fox FInancial
- 6moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Barry Minkow:
The date of the report, only posted because of the numerous inquiries, was May 27, 2024 Report Issued to SEC et al on Fox FInancial
2 years later and nothing has happened ?
- Member since 2024 · 18 posts · 6 votes6mo
I cannot comment nor do I speak for law enforcement but it would appear the status may change but again, my opinion, Jay...
- Member since 2026 · 45 posts · 23 votes6mo
Barry, I agree 100% that Stuart Fox's operation reeks of a Ponzi.
Every red flag and alarm bell screams Ponzi. There are now almost 30 victims in a Google group who have collectively been scammed out of over 7 million dollars.
I think when the smoke clears this scam will be well into double digit millions at the rate new victims keep popping up via the big reddit thread on Stuart Fox's scam.
I sent you a private message here, I'd like to chat with you.
- Member since 2026 · 45 posts · 23 votes6mo
Stuart Fox of Orem Utah trades or has traded as:
Penn Buyers LLCFox Financial LLC
Fox Capital LLC
Midwest Cap LLC
Nomadic Flips LLC
Pixel Marketing LLC
- Member since 2026 · 2 posts · 0 votes5mo
I cannot believe that law enforcement is telling the victims of the Fox Financial LLC scam that nothing can be done now while scammer Stuart Fox is living the high life with millions of dollars stolen from the public.
- 5moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Valery Jean:
I cannot believe that law enforcement is telling the victims of the Fox Financial LLC scam that nothing can be done now while scammer Stuart Fox is living the high life with millions of dollars stolen from the public.
How do you know this is what law enforcement is saying ??? Just curious. are they saying then its a civil matter and accredited investors are more knowledgeable on how to protect themselves than just the random public .. So law enforcement is saying you need to sue in Civil court ??? is that what they are telling you ?
- Member since 2026 · 45 posts · 23 votes3mo
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
- 3moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Swanson:
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
Conventus is a HML out of SF Bay Area. Sounds like fire insurance checks that one will get that requires dual sigs to cash.. one of the rare exceptions were dual sigs are required. However this is a good learning moment. Just because they are dual sig required banks dont honor the dual sig anymore they will cash with just one sig as evidence by this complaint. authorities take the easiest case to prove as opposed to the complicated situations many investors have talked about on the Fox threads. In other words they like the slam dunks.. Plus Conventus and the owner Keith they are pretty powerful group and many of their loans are sold to hedge funds so you have that as well Wall st. lawyers jumping in.
- 3moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Swanson:
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
PS I think this pretty much seals it any investor who is not in first position on a decent asset will be wiped out their money is gone and never coming back. Or if the investor owns a decent asset in their name alone .. if those two things exist some recovery could be possible. Not sure BK is in the cards as BK is expensive and the person filing needs to be truthful other wise they can be charged with BK fraud which is no good either.. so its just a walk away situation. - 3moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Swanson:
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
have you contacted the reporter who wrote this ? - Member since 2026 · 45 posts · 23 votes3mo
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
Conventus is a HML out of SF Bay Area. Sounds like fire insurance checks that one will get that requires dual sigs to cash.. one of the rare exceptions were dual sigs are required. However this is a good learning moment. Just because they are dual sig required banks dont honor the dual sig anymore they will cash with just one sig as evidence by this complaint. authorities take the easiest case to prove as opposed to the complicated situations many investors have talked about on the Fox threads. In other words they like the slam dunks.. Plus Conventus and the owner Keith they are pretty powerful group and many of their loans are sold to hedge funds so you have that as well Wall st. lawyers jumping in.
There's a civil case filed against Stuart in Ohio which claims Stuart forged a phony LLC operating agreement to sell a property out from under an investor, who lost about 300 K or so on the deal. It's very clear that Stuart acts with criminal intent. The current charges should hopefully get him some jail time. The FBI have an open case on him as well for the investor fraud from his Facebook ad scam, the Fed charges should hopefullly lock him up for life, wire fraud is 20 years per count.
- 3moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
Conventus is a HML out of SF Bay Area. Sounds like fire insurance checks that one will get that requires dual sigs to cash.. one of the rare exceptions were dual sigs are required. However this is a good learning moment. Just because they are dual sig required banks dont honor the dual sig anymore they will cash with just one sig as evidence by this complaint. authorities take the easiest case to prove as opposed to the complicated situations many investors have talked about on the Fox threads. In other words they like the slam dunks.. Plus Conventus and the owner Keith they are pretty powerful group and many of their loans are sold to hedge funds so you have that as well Wall st. lawyers jumping in.
There's a civil case filed against Stuart in Ohio which claims Stuart forged a phony LLC operating agreement to sell a property out from under an investor, who lost about 300 K or so on the deal. It's very clear that Stuart acts with criminal intent. The current charges should hopefully get him some jail time. The FBI have an open case on him as well for the investor fraud from his Facebook ad scam, the Fed charges should hopefullly lock him up for life, wire fraud is 20 years per count.
google Chad Duecher marquis properties Utah.. this guy did about the same thing that folks are claiming fox did .. he got 7 years.. the taking of the insurance money was just a slam dunker for the authorities these other cases are more complex and really depends on how much time and effort they want to put into it.. all sorts of fraud goes on every day but only a fraction are ever arrested or indited. The authorities will default to telling investors its a civil matter sue the guy. - Member since 2026 · 45 posts · 23 votes3mo
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
Conventus is a HML out of SF Bay Area. Sounds like fire insurance checks that one will get that requires dual sigs to cash.. one of the rare exceptions were dual sigs are required. However this is a good learning moment. Just because they are dual sig required banks dont honor the dual sig anymore they will cash with just one sig as evidence by this complaint. authorities take the easiest case to prove as opposed to the complicated situations many investors have talked about on the Fox threads. In other words they like the slam dunks.. Plus Conventus and the owner Keith they are pretty powerful group and many of their loans are sold to hedge funds so you have that as well Wall st. lawyers jumping in.
There's a civil case filed against Stuart in Ohio which claims Stuart forged a phony LLC operating agreement to sell a property out from under an investor, who lost about 300 K or so on the deal. It's very clear that Stuart acts with criminal intent. The current charges should hopefully get him some jail time. The FBI have an open case on him as well for the investor fraud from his Facebook ad scam, the Fed charges should hopefullly lock him up for life, wire fraud is 20 years per count.
google Chad Duecher marquis properties Utah.. this guy did about the same thing that folks are claiming fox did .. he got 7 years.. the taking of the insurance money was just a slam dunker for the authorities these other cases are more complex and really depends on how much time and effort they want to put into it.. all sorts of fraud goes on every day but only a fraction are ever arrested or indited. The authorities will default to telling investors its a civil matter sue the guy.You are 100% correct. Stuart has stolen about 7 to 10 million from his Facebook investment ad scam that is known from people sharing info on Reddit etc. Pretty small potatoes by today's standards, this theft/fraud of 290 K only got action because the people he stole from are powerful and connected.
Stuart's just a common grifter and low IQ loser with no exit plan or endgame, I guess he enjoyed pretending to be some big shot real estate mogul for a couple years with his crap properties in bunghole Midwest towns. Probably most of the money he stole is long gone, these grifters usually have drug or gambling addictions or both, especially when they also feign religious hokum like Stuart.
- 3moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
Conventus is a HML out of SF Bay Area. Sounds like fire insurance checks that one will get that requires dual sigs to cash.. one of the rare exceptions were dual sigs are required. However this is a good learning moment. Just because they are dual sig required banks dont honor the dual sig anymore they will cash with just one sig as evidence by this complaint. authorities take the easiest case to prove as opposed to the complicated situations many investors have talked about on the Fox threads. In other words they like the slam dunks.. Plus Conventus and the owner Keith they are pretty powerful group and many of their loans are sold to hedge funds so you have that as well Wall st. lawyers jumping in.
There's a civil case filed against Stuart in Ohio which claims Stuart forged a phony LLC operating agreement to sell a property out from under an investor, who lost about 300 K or so on the deal. It's very clear that Stuart acts with criminal intent. The current charges should hopefully get him some jail time. The FBI have an open case on him as well for the investor fraud from his Facebook ad scam, the Fed charges should hopefullly lock him up for life, wire fraud is 20 years per count.
google Chad Duecher marquis properties Utah.. this guy did about the same thing that folks are claiming fox did .. he got 7 years.. the taking of the insurance money was just a slam dunker for the authorities these other cases are more complex and really depends on how much time and effort they want to put into it.. all sorts of fraud goes on every day but only a fraction are ever arrested or indited. The authorities will default to telling investors its a civil matter sue the guy.You are 100% correct. Stuart has stolen about 7 to 10 million from his Facebook investment ad scam that is known from people sharing info on Reddit etc. Pretty small potatoes by today's standards, this theft/fraud of 290 K only got action because the people he stole from are powerful and connected.
Stuart's just a common grifter and low IQ loser with no exit plan or endgame, I guess he enjoyed pretending to be some big shot real estate mogul for a couple years with his crap properties in bunghole Midwest towns. Probably most of the money he stole is long gone, these grifters usually have drug or gambling addictions or both, especially when they also feign religious hokum like Stuart.
I dont know if you googled Chad like I mentioned.. its the exact same situation. Utah man from Orem. multiple bene's etc.. his partner Clatfelter came to my office in Oregon looking for a money partner once he described the model they were doing I passed. As odd as all of this is at the same time I knew and did some deals with Fox but fox had not moved to Orem yet. Quite the coincidence. And your right conventus is a very large HML I know them well also the owner Keith is a no BS guy. And as I stated they sell a lot of their loans to wall st hedge funds so those boys dont fool around. Having known Stu fox for 30 years in the industry and his family background along with his brothers. My take on this is the classic rob peter to pay paul and once you start down that path its darn near impossible to catch up and one keeps going thinking the next deal will get folks paid back when in fact it just gets worse and worse as it appears has happened here.. It still blows me away that someone can raise this kind of money using tik tok or facebook I guess because I am not on either of those sites it obviously works.
- Member since 2026 · 45 posts · 23 votes3moYou are probably correct in the Peter/Paul analogy, but Stuart clearly crossed over to the dark side big time and began acting with pure criminal intent.
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
Conventus is a HML out of SF Bay Area. Sounds like fire insurance checks that one will get that requires dual sigs to cash.. one of the rare exceptions were dual sigs are required. However this is a good learning moment. Just because they are dual sig required banks dont honor the dual sig anymore they will cash with just one sig as evidence by this complaint. authorities take the easiest case to prove as opposed to the complicated situations many investors have talked about on the Fox threads. In other words they like the slam dunks.. Plus Conventus and the owner Keith they are pretty powerful group and many of their loans are sold to hedge funds so you have that as well Wall st. lawyers jumping in.
There's a civil case filed against Stuart in Ohio which claims Stuart forged a phony LLC operating agreement to sell a property out from under an investor, who lost about 300 K or so on the deal. It's very clear that Stuart acts with criminal intent. The current charges should hopefully get him some jail time. The FBI have an open case on him as well for the investor fraud from his Facebook ad scam, the Fed charges should hopefullly lock him up for life, wire fraud is 20 years per count.
google Chad Duecher marquis properties Utah.. this guy did about the same thing that folks are claiming fox did .. he got 7 years.. the taking of the insurance money was just a slam dunker for the authorities these other cases are more complex and really depends on how much time and effort they want to put into it.. all sorts of fraud goes on every day but only a fraction are ever arrested or indited. The authorities will default to telling investors its a civil matter sue the guy.You are 100% correct. Stuart has stolen about 7 to 10 million from his Facebook investment ad scam that is known from people sharing info on Reddit etc. Pretty small potatoes by today's standards, this theft/fraud of 290 K only got action because the people he stole from are powerful and connected.
Stuart's just a common grifter and low IQ loser with no exit plan or endgame, I guess he enjoyed pretending to be some big shot real estate mogul for a couple years with his crap properties in bunghole Midwest towns. Probably most of the money he stole is long gone, these grifters usually have drug or gambling addictions or both, especially when they also feign religious hokum like Stuart.
I dont know if you googled Chad like I mentioned.. its the exact same situation. Utah man from Orem. multiple bene's etc.. his partner Clatfelter came to my office in Oregon looking for a money partner once he described the model they were doing I passed. As odd as all of this is at the same time I knew and did some deals with Fox but fox had not moved to Orem yet. Quite the coincidence. And your right conventus is a very large HML I know them well also the owner Keith is a no BS guy. And as I stated they sell a lot of their loans to wall st hedge funds so those boys dont fool around. Having known Stu fox for 30 years in the industry and his family background along with his brothers. My take on this is the classic rob peter to pay paul and once you start down that path its darn near impossible to catch up and one keeps going thinking the next deal will get folks paid back when in fact it just gets worse and worse as it appears has happened here.. It still blows me away that someone can raise this kind of money using tik tok or facebook I guess because I am not on either of those sites it obviously works.
I do believe the FBI is going to sledgehammer him sometime in the near future for the Facebook ad scam for the house flipping funds.
Stuart is one of those people who just quickly got way out of their depth, he should have just been a fast food fry cook, restroom attendant, or some other menial job. Real estate just wasn't his calling. - 3moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Swanson:
You are probably correct in the Peter/Paul analogy, but Stuart clearly crossed over to the dark side big time and began acting with pure criminal intent.Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
Conventus is a HML out of SF Bay Area. Sounds like fire insurance checks that one will get that requires dual sigs to cash.. one of the rare exceptions were dual sigs are required. However this is a good learning moment. Just because they are dual sig required banks dont honor the dual sig anymore they will cash with just one sig as evidence by this complaint. authorities take the easiest case to prove as opposed to the complicated situations many investors have talked about on the Fox threads. In other words they like the slam dunks.. Plus Conventus and the owner Keith they are pretty powerful group and many of their loans are sold to hedge funds so you have that as well Wall st. lawyers jumping in.
There's a civil case filed against Stuart in Ohio which claims Stuart forged a phony LLC operating agreement to sell a property out from under an investor, who lost about 300 K or so on the deal. It's very clear that Stuart acts with criminal intent. The current charges should hopefully get him some jail time. The FBI have an open case on him as well for the investor fraud from his Facebook ad scam, the Fed charges should hopefullly lock him up for life, wire fraud is 20 years per count.
google Chad Duecher marquis properties Utah.. this guy did about the same thing that folks are claiming fox did .. he got 7 years.. the taking of the insurance money was just a slam dunker for the authorities these other cases are more complex and really depends on how much time and effort they want to put into it.. all sorts of fraud goes on every day but only a fraction are ever arrested or indited. The authorities will default to telling investors its a civil matter sue the guy.You are 100% correct. Stuart has stolen about 7 to 10 million from his Facebook investment ad scam that is known from people sharing info on Reddit etc. Pretty small potatoes by today's standards, this theft/fraud of 290 K only got action because the people he stole from are powerful and connected.
Stuart's just a common grifter and low IQ loser with no exit plan or endgame, I guess he enjoyed pretending to be some big shot real estate mogul for a couple years with his crap properties in bunghole Midwest towns. Probably most of the money he stole is long gone, these grifters usually have drug or gambling addictions or both, especially when they also feign religious hokum like Stuart.
I dont know if you googled Chad like I mentioned.. its the exact same situation. Utah man from Orem. multiple bene's etc.. his partner Clatfelter came to my office in Oregon looking for a money partner once he described the model they were doing I passed. As odd as all of this is at the same time I knew and did some deals with Fox but fox had not moved to Orem yet. Quite the coincidence. And your right conventus is a very large HML I know them well also the owner Keith is a no BS guy. And as I stated they sell a lot of their loans to wall st hedge funds so those boys dont fool around. Having known Stu fox for 30 years in the industry and his family background along with his brothers. My take on this is the classic rob peter to pay paul and once you start down that path its darn near impossible to catch up and one keeps going thinking the next deal will get folks paid back when in fact it just gets worse and worse as it appears has happened here.. It still blows me away that someone can raise this kind of money using tik tok or facebook I guess because I am not on either of those sites it obviously works.
I do believe the FBI is going to sledgehammer him sometime in the near future for the Facebook ad scam for the house flipping funds.
Stuart is one of those people who just quickly got way out of their depth, he should have just been a fast food fry cook, restroom attendant, or some other menial job. Real estate just wasn't his calling.
His father was a very successful RE developer builder in the Spokane WA market for many years So he grew up in RE And as I mentioned before I use to compete with him and his brothers in the mid 2000s in the Portland or court house steps activities. Thats were I first met him.. His Dad gave them access to a very large credit line. And they bought property there and in Vegas.
However when he ventured out to the mid west I warned him a few times on properties he was buying and warned him of spreading to thin to quick.. which I think its obvious now I was right and he just kept going with his success in raising investor capital on social media.
Regardless at this point does not look good legal defense for criminal white collar can run deep into 6 figures to try to keep one out of jail. I suspect and I think he would be smart to just try to plea these out as quick as possible. - Member since 2026 · 45 posts · 23 votes3mo
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
You are probably correct in the Peter/Paul analogy, but Stuart clearly crossed over to the dark side big time and began acting with pure criminal intent.Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
Stuart Fox of Utah has been arrested for fraud, stealing 290 K in checks, this is likely just the tip of the iceberg:
https://www.ksl.com/article/51508484/utah-man-accused-of-ste...
Conventus is a HML out of SF Bay Area. Sounds like fire insurance checks that one will get that requires dual sigs to cash.. one of the rare exceptions were dual sigs are required. However this is a good learning moment. Just because they are dual sig required banks dont honor the dual sig anymore they will cash with just one sig as evidence by this complaint. authorities take the easiest case to prove as opposed to the complicated situations many investors have talked about on the Fox threads. In other words they like the slam dunks.. Plus Conventus and the owner Keith they are pretty powerful group and many of their loans are sold to hedge funds so you have that as well Wall st. lawyers jumping in.
There's a civil case filed against Stuart in Ohio which claims Stuart forged a phony LLC operating agreement to sell a property out from under an investor, who lost about 300 K or so on the deal. It's very clear that Stuart acts with criminal intent. The current charges should hopefully get him some jail time. The FBI have an open case on him as well for the investor fraud from his Facebook ad scam, the Fed charges should hopefullly lock him up for life, wire fraud is 20 years per count.
google Chad Duecher marquis properties Utah.. this guy did about the same thing that folks are claiming fox did .. he got 7 years.. the taking of the insurance money was just a slam dunker for the authorities these other cases are more complex and really depends on how much time and effort they want to put into it.. all sorts of fraud goes on every day but only a fraction are ever arrested or indited. The authorities will default to telling investors its a civil matter sue the guy.You are 100% correct. Stuart has stolen about 7 to 10 million from his Facebook investment ad scam that is known from people sharing info on Reddit etc. Pretty small potatoes by today's standards, this theft/fraud of 290 K only got action because the people he stole from are powerful and connected.
Stuart's just a common grifter and low IQ loser with no exit plan or endgame, I guess he enjoyed pretending to be some big shot real estate mogul for a couple years with his crap properties in bunghole Midwest towns. Probably most of the money he stole is long gone, these grifters usually have drug or gambling addictions or both, especially when they also feign religious hokum like Stuart.
I dont know if you googled Chad like I mentioned.. its the exact same situation. Utah man from Orem. multiple bene's etc.. his partner Clatfelter came to my office in Oregon looking for a money partner once he described the model they were doing I passed. As odd as all of this is at the same time I knew and did some deals with Fox but fox had not moved to Orem yet. Quite the coincidence. And your right conventus is a very large HML I know them well also the owner Keith is a no BS guy. And as I stated they sell a lot of their loans to wall st hedge funds so those boys dont fool around. Having known Stu fox for 30 years in the industry and his family background along with his brothers. My take on this is the classic rob peter to pay paul and once you start down that path its darn near impossible to catch up and one keeps going thinking the next deal will get folks paid back when in fact it just gets worse and worse as it appears has happened here.. It still blows me away that someone can raise this kind of money using tik tok or facebook I guess because I am not on either of those sites it obviously works.
I do believe the FBI is going to sledgehammer him sometime in the near future for the Facebook ad scam for the house flipping funds.
Stuart is one of those people who just quickly got way out of their depth, he should have just been a fast food fry cook, restroom attendant, or some other menial job. Real estate just wasn't his calling.
His father was a very successful RE developer builder in the Spokane WA market for many years So he grew up in RE And as I mentioned before I use to compete with him and his brothers in the mid 2000s in the Portland or court house steps activities. Thats were I first met him.. His Dad gave them access to a very large credit line. And they bought property there and in Vegas.
However when he ventured out to the mid west I warned him a few times on properties he was buying and warned him of spreading to thin to quick.. which I think its obvious now I was right and he just kept going with his success in raising investor capital on social media.
Regardless at this point does not look good legal defense for criminal white collar can run deep into 6 figures to try to keep one out of jail. I suspect and I think he would be smart to just try to plea these out as quick as possible.That figures he was a silver spooner, the old "born on 3rd base and thought he hit a triple" routine. Seen that many times.
- New to Real Estate · Orange County, CA · Member since 2018 · 18 posts · 2 votes2mo
Stuart absolutely took advantage of folks out of state who didn't know basic due diligence (I'm one of them). In my case he was shotgunning mortgages, handing out multiple ones on the same property without disclosing this to the previous investors. Sure this information could have been looked up, but clearly there was bad intent on Stuart's part. I lost $550k which was a hard lesson for me, but apparently one I "deserved" by investing in real estate without properly performing my own due diligence. Apparently in real estate there's always someone looking to rip you off, and unless you already know someone knowledgeable who can show you the ropes, you're better off sticking to mutual funds. I just hope Stuart sees jail time, and I'm willing to spend some money on seeing to it that it happens and he doesn't keep ripping off other folks.
- 2moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Bryan Price:
Stuart absolutely took advantage of folks out of state who didn't know basic due diligence (I'm one of them). In my case he was shotgunning mortgages, handing out multiple ones on the same property without disclosing this to the previous investors. Sure this information could have been looked up, but clearly there was bad intent on Stuart's part. I lost $550k which was a hard lesson for me, but apparently one I "deserved" by investing in real estate without properly performing my own due diligence. Apparently in real estate there's always someone looking to rip you off, and unless you already know someone knowledgeable who can show you the ropes, you're better off sticking to mutual funds. I just hope Stuart sees jail time, and I'm willing to spend some money on seeing to it that it happens and he doesn't keep ripping off other folks.
WOW I take it you did not understand how escrow and title insurance works for a lender ? just for folks reading this .. is you always fund through a title escrow company and you ALWAYS get a copy of the title commitment or on the West coast we call them preliminary title reports.. U dont trust the escrow company or closing attorney to just say title is fine.. you need to get the report read it and understand it.. If there are recorded mortgages they will show up there. I know this is too little to late but hopefully folks that are considering loaning money will understand this and at least do this little bit of due diligence before they launch their funds.
then you have Due diligence on the asset it self.. which google earth is a good one for someone sitting at home you can at least see a picture and a street scene. Then you can order a 3rd party appraisal for a few hundred bucks as well.. So for 500 to600 bucks you can have title researched and property looked at. And you can do these yourself no one needs to give you permission to do these things.. Title is public record.. and appraiser can at least do a drive by for you.
- Member since 2026 · 45 posts · 23 votes2mo
The FBI launched a dedicated victim page specifically for Staurt Fox's scam victims. Stuart's scam must be in the double digit millions to warrant this kind of action:
https://www.fbi.gov/how-we-can-help-you/victim-services/seek...
- 2moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Swanson:
The FBI launched a dedicated victim page specifically for Staurt Fox's scam victims. Stuart's scam must be in the double digit millions to warrant this kind of action:
https://www.fbi.gov/how-we-can-help-you/victim-services/seek...
Wow.. this is not good for Fox and pretty much will seal the deal that investors most likely are going to lose all their money with little hope of any recovery.. Not that there was any hope in the first place after all that has been communicated about the deals the investors went into and how screwed up the titles are. - Member since 2026 · 45 posts · 23 votes2mo
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
The FBI launched a dedicated victim page specifically for Staurt Fox's scam victims. Stuart's scam must be in the double digit millions to warrant this kind of action:
https://www.fbi.gov/how-we-can-help-you/victim-services/seek...
Wow.. this is not good for Fox and pretty much will seal the deal that investors most likely are going to lose all their money with little hope of any recovery.. Not that there was any hope in the first place after all that has been communicated about the deals the investors went into and how screwed up the titles are.Stuart must have been mentally ill, his scam had no endgame other than a long prison term. Real estate clearly wasn't his calling but I guess he wanted to be a mogul and just stole money and pretended to be a big-time investor. A lobotomized circus monkey would never have bought most of the properties that Stuart bought.
- 2moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Swanson:
Quote from @Jay Hinrichs:
Quote from @Jack Swanson:
The FBI launched a dedicated victim page specifically for Staurt Fox's scam victims. Stuart's scam must be in the double digit millions to warrant this kind of action:
https://www.fbi.gov/how-we-can-help-you/victim-services/seek...
Wow.. this is not good for Fox and pretty much will seal the deal that investors most likely are going to lose all their money with little hope of any recovery.. Not that there was any hope in the first place after all that has been communicated about the deals the investors went into and how screwed up the titles are.Stuart must have been mentally ill, his scam had no endgame other than a long prison term. Real estate clearly wasn't his calling but I guess he wanted to be a mogul and just stole money and pretended to be a big-time investor. A lobotomized circus monkey would never have bought most of the properties that Stuart bought.
while his chosing of markets and properties is certainly very suspect ( he was spread way to thin and not really familiar with those back east markets) I warned him time and again when I saw what he was buying.. I just think its a case as well of he just did not know what he did not know. And then it became a very classic case of robbing peter to pay paul.. I have seen that play more than once it happens and once you start down that slippery slope there is generally no coming back and you just do what it appears has happened here a massive crater with no recovery possible. And very pissed off investors many of who did not really understand how to protect themselves in a very basic way.. Its too bad. It makes it tough for companies like mine who do things correctly but once folks lose like this they basically sour on RE.
And I am the first one to say not every deal I have done made money because they did not however the money has always gone to where it was suppose to go. IN the GFC I lost millions although at the time I did not have investors it was all my company money but loss's you bet.
- Member since 2026 · 45 posts · 23 votes1mo
Rumor is the FBI arrested Stuart Fox in early July, but I don't see an official press release anywhere. I hope this grifter gets the maximum, between the Fox Financial ponzi scam and the check forging scam he should get at least 20 years flat, at age 55 that's close to a life sentence.
- Member since 2026 · 7 posts · 1 vote1mo
Jack: I googled AI regarding a property Stu borrowed money from me in Roanoke Illinois. the Mortgage was written up by a Law Firm and a Title Company gave me a $390 k insurance policy on it but doing a little research found out that Stuart was the owner of the property to begin with, Market value of around only $40K and when i sent the money he just deducted some minor closing costs and then forwarded it to another one of his quick LLC's back in Utah. Strange that the law firm and the Title insurance company didn't view that as a little off color.
Anyhoo, when I asked AI about if this sounded right and mentioned Stuart W. Fox, i got a reply from them that Fox was formally arrested by the FBI on July 2 2026 involving Fox Financial , Midwest Capital LLC and Nomadic Flips LLC. I can't find any verification either from maybe that news station back in Utah that exposed the insurance check fraud. maybe we should ask them to dig in it for us. The FBI is usually very mum on disclosing info like this. - Member since 2025 · 1 post · 0 votes2w
I did some investing with Stuart I'm sad to report. Early on, when rates were low, his business model worked. He was buying heavily discounted properties and flipping them. He actually paid me off on several deals and was current on interest payments.
Then he wasn't.
Stuart doesn't call or take calls (red flag) and was hard to even contact via email or text. To date I've got 9 properties still financed to him. Guess I'll get a lesson in how to work these deals out and try to mitigate the loss.
I may reach out to the FBI and see if I can help them.
- Member since 2026 · 7 posts · 1 vote2w
Jim: Did you add your name to the Fox victims group where we all share our stories? There are 38 victims and counting and if you are a victim , here is the link the FBI set up for all of us to report your story
fbi.gov/foxfraudvictims
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