Another victim of Scott Carson, We Close Notes and Inverse Assets

Another victim of Scott Carson, We Close Notes and Inverse Assets

Flipper · Clermont, FL · Member since 2015 · 6 posts · 30 votes

Like Gerry's earlier post, I was very reluctant to share my story.  But now the time has come for me to share like Gerry so that no one else gets themselves in a bad deal with Scott or anyone else.  I specifically waited 2 months from Gerry's post and started a new feed because I want this to be fresh and I want everyone to read it again to hammer home the message about investing with Scott Carson, We Close Notes, or Inverse Asset Fund

My story is very similar to others who have posted and shared. I followed Scott for a very long time. I did his online workshops, notecamps, joined his Note Crew, and etc. I flew to DME in California where I met him in person. I believed him to be a genuine guy. I loved his message of integrity and to always take care of your partners before you took care of yourself. I really thought this was the JV opportunity I was looking for. A professional who knew what they were doing and would keep my investment safe with good returns and also give me an opportunity to learn.

After I wired the money the true story began. It now has almost been 24 months and I have yet to receive any of my funds or stated returns back. I have had to hire an attorney to take it to the next level. In those near 24 months, I have watched Scott continue to take in money from his coaching, masterminds, and online workshops. He has continued to take some of the longest and most luxurious vacations imaginable while my inquires as to where our JV deals are headed go unanswered and ignored. I terminated the deal per the agreement and still have not received a dime. On a few occasions, I did get responses from Scott I feel they were disingenuous and a delay tactic. I have deals come across my desk every day where I can be putting this money to work but instead, I have had to invest more money in the dead deal by hiring an attorney.

I am most disappointed in Scott because I believed in him.  I promoted local events in Orlando for him to my local investor community.  I invited my friends and family to come see him and listen to his podcasts.  I referred everyone to Scott if they wanted more note training.  I've had drinks and socialized with him.  Every conversation started with "we are cashing you out next month".  Then it was next month and next month and any day now.  All this time I continued telling myself surely this is not really happening.  Surely he would not take advantage of me of all people.  Then I went to the Travis county courts and started doing a public records search.  Go look for yourself.  You will find me and many other people with similar stories.

I wouold not recommend anyone invest with Scott or any of his entities.  If you already have I would recommend you start working on getting your money back now because it will be a long journey.  Before you invest with anyone do your due diligence on the partner and the underlying security of your funds.  Don't do it just because they seem to be a nice guy with charisma!

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
6y

@Todd LaPierre

If he is not returning calls maybe you or your attorney could visit him when he is in Orlando in November at his NOTE MASTERMIND November 15th, 2019 – November 17th, 2019.

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  • Real Estate Agent · Cape Canaveral, FL · Member since 2016 · 6 posts · 3 votes
    6y

    Todd, I read your message with both shock and dismay! I know you were always very encouraging and enthusiastic in your endorsements of Scott. We both were. It is unimaginable what has transpired. Unfortunately, I now know of several investors who trusted and have been betrayed. It's even more disheartening when it has happened to people, like you and Denise, that I consider my friends.

  • Investor · Houston, TX · Member since 2009 · 9 posts · 3 votes
    6y

    I have a similar story. Scott is not a good person and I would stay away from doing business with him. I have been trying to get him to answer my emails and phone calls to no avail he just continues to ghost me. I was warned about him but I didn't see it. The way he uses the Veteran thing is also Not good. Giving free membership into his virtual boot camps in hopes that you invest with him only to take your money is a crime. Morally, ethically if not legally. Scott Carson if you read this contact me and do the right thing.

  • Specialist · Grand Rapids, MI · Member since 2017 · 6 posts · 0 votes
    6y

    @Todd LaPierre goodness! I can’t believe this has happened to you too! My heart goes out to you and everyone who is a victim.

  • Real Estate Agent · Cape Canaveral, FL · Member since 2016 · 6 posts · 3 votes
    6y

    Wylea, were you scammed also?

  • Specialist · Grand Rapids, MI · Member since 2017 · 6 posts · 0 votes
    6y

    @Gail Villanueva I never invested in any notes with Scott. I paid for training and the mastermind. I did pay for a chapter in the note tales book that I’m waiting to hear more information on the publishing.

  • Specialist · Grand Rapids, MI · Member since 2017 · 6 posts · 0 votes
    6y

    @Gail Villanueva this is truly saddening. I remember how active Todd was on the wcn crew and the trainings.

  • Real Estate Agent · Cape Canaveral, FL · Member since 2016 · 6 posts · 3 votes
    6y

    Yes, it is very sad. Todd referred many people to Scott and sang him praises. Until this happened.

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    6y

    @Todd LaPierre

    If he is not returning calls maybe you or your attorney could visit him when he is in Orlando in November at his NOTE MASTERMIND November 15th, 2019 – November 17th, 2019.

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  • New to Real Estate · Coldwater, OH · Member since 2018 · 105 posts · 61 votes
    6y

    It seems like this has went on for awhile, the OP said something about 24 months? If this is happening so blatantly, how is the guy not in jail? Surely there has to be legal recourse, not? I thought notes were a safe thing and that if one party started doing foul play then they would be playing with fire (the law). Am i wrong?

    I just had an email pertaining to note investing. 8% - 10% gains over 1 to 5 years is what they were proclaiming. I am quite interested, I would do my due diligence before proceeding.

  • Real Estate Investor · Amherst, VA · Member since 2015 · 386 posts · 400 votes
    6y
    Originally posted by @Jeffrey Grieshop:

    I thought notes were a safe thing and that if one party started doing foul play then they would be playing with fire (the law). Am i wrong?

    You're correct but there's something you aren't taking into account:

    They don't want to antagonize him and probably gave him the benefit of the doubt for a long time. You know, paperwork got lost. Email went to spam. The borrowers filed bankruptcy.

    Also, people don't want to spend more time/money chasing after it when realistically the only way they'll get money back is him scamming someone else to pay them. In which case once he does get caught, the government will try to collect from them to pay off the other victims. Then they get f'd a second time. I'm not an expert and don't claim to be one but you see this often on American Greed.

  • Investor · New Haven, CT · Member since 2012 · 285 posts · 175 votes
    6y

    @Chris Seveney

    I would go picket outside the hotel he is having a seminar at and call the news.

    I would also post scam alerts on all his social media pages.

  • Specialist · Dallas, TX · Member since 2014 · 900 posts · 392 votes
    6y
    Originally posted by @Patrick Desjardins:
    Originally posted by @Jeffrey Grieshop:

    went to spam. The borrowers filed bankruptcy.

    Also, people don't want to spend more time/money chasing after it when realistically the only way they'll get money back is him scamming someone else to pay them. In which case once he does get caught, the government will try to collect from them to pay off the other victims. Then they get f'd a second time. I'm not an expert and don't claim to be one but you see this often on American Greed. 

    We are now in Ponzi scheme terrority...

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jeffrey Grieshop:

    It seems like this has went on for awhile, the OP said something about 24 months? If this is happening so blatantly, how is the guy not in jail? Surely there has to be legal recourse, not? I thought notes were a safe thing and that if one party started doing foul play then they would be playing with fire (the law). Am i wrong?

    I just had an email pertaining to note investing. 8% - 10% gains over 1 to 5 years is what they were proclaiming. I am quite interested, I would do my due diligence before proceeding.

    I think the difference is these are NOTE  partnerships or fractional with multiple investors on one note..  if you buy a NOTE and own the entire NOTE yourself risk goes way down.. its just a form of syndication really. So as such the sponsor is critical.. bad sponsor bad out come. 

    if you wish to get into notes you may want to consider just buying them lock stock and barrel with no partners.  then the risk is all yours and decisions are yours etc etc.. 

  • Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Wylea Griggs:

    @Gail Villanueva I never invested in any notes with Scott. I paid for training and the mastermind. I did pay for a chapter in the note tales book that I’m waiting to hear more information on the publishing.

    Oh you mean the 50 chapter book that he charged $600 per chapter for?  Another $30K raked in but no one will ever see the light of day.   

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Chad U.:
    Originally posted by @Wylea Griggs:

    @Gail Villanueva I never invested in any notes with Scott. I paid for training and the mastermind. I did pay for a chapter in the note tales book that I’m waiting to hear more information on the publishing.

    Oh you mean the 50 chapter book that he charged $600 per chapter for?  Another $30K raked in but no one will ever see the light of day.   

    shoot wish I thought of that one  LOL   yup these folks should picket the event.. big signs.. 

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    6y

    @Chad Urbshott

    It’s better than the thousands he was charging 3-5 years ago and never published. An investor told me they spent $2-3k (could not remember amount) for a chapter in a book. Still in editing I guess.

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  • Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    6y

    @Todd LaPierre 

    This is all news to me and reading through the comments is so disheartening to see these many people affected. 

  • Real Estate Investor · Amherst, VA · Member since 2015 · 386 posts · 400 votes
    6y

    You have to give him credit, he's creative. Never of that one before about selling chapters.

    More importantly though.. aside from suing him locally, can anyone confirm reporting him to the authorities as a ponzi scheme? Since that's the only way to really shut him down.

  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    6y

    @Jay Hinrichs

    Jay, you are so right. When you buy into any partnership, joint venture, etc., you are relying on the sponsor/manager/GP. So not only do you have the investment risk, you also have the sponsor honesty and competence risk.

    Someone send me a link to a little BP thread spat I had with Scott Carson about three years ago. He took offense to my comment that Most of what was available to the small investor in terms of non performing notes was picked over junk, which was fine, he’s entitled to his opinion. But he then went on to state that my experience, expertise and judgement was obviously not as I presented it, or I would know better. LOL. I responded that his information was obviously biased as he had something to sell based on the information, whereas mine was unbiased. I did some further research on Scott and called him out as a lightweight, not believing any of his claims. Afterward, I remember feeling a little bad, thinking perhaps I was mistaken about him. Evidently I was correct; people resort to outright thievery when there investments go south. Seems to be easier to do in the real estate field for some reason.

    Everyone seems to be concentrating on the “ponzu” scheme aspect. I think another big lesson is that it’s awfully hard to make money, long term, with non performing notes, especially when your experience, expertise and capital is limited. The Commercial note field is nowhere near as competitive, but the expertise required is much greater than that required for residential.

    Private Mortgage Financing Partners, LLC
  • Specialist · Dallas, TX · Member since 2014 · 900 posts · 392 votes
    6y
    Originally posted by @Don Konipol:

    @Jay Hinrichs

    Someone send me a link to a little BP thread spat I had with Scott Carson about three years ago. He took offense to my comment that Most of what was available to the small investor in terms of non performing notes was picked over junk, which was fine, he’s entitled to his opinion. But he then went on to state that my experience, expertise and judgement was obviously not as I presented it, or I would know better. LOL. I responded that his information was obviously biased as he had something to sell based on the information, whereas mine was unbiased. I did some further research on Scott and called him out as a lightweight, not believing any of his claims. Afterward, I remember feeling a little bad, thinking perhaps I was mistaken about him. Evidently I was correct; people resort to outright thievery when there investments go south. Seems to be easier to do in the real estate field for some reason.

     I was just thinking of that thread, Don, you were so spot on and he replies with LOL, OMG, WTF, all these childlike replies. Do you still have that link as I was going to start a long search to find it. 

  • Steve HodgdonPro Member
    Investor · Novato, CA · Member since 2015 · 432 posts · 321 votes
    6y

    Soooo, again. @

    @Dion DePaoli and I have been preaching counter party risk is more important even that the asset for a long time. Because we both learned the hard way. I get requests for mentoring, etc from new folks from time to time. Amazes me anyone who knows my story would think I'm a guru. To be clear, I'm a cynic. 

    I wonder if @Mindy Jensen and BP will remove his podcast? Seems like if you get a BP podcast episode you have instant credibility. People will still listen to it thinking NPN is the answer. Maybe a look back at their guests to see if they are still in the biz, pivoted, failed, went to jail would be interesting.

  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y

    Sorry to hear about your experience. Thank you for sharing.

  • Investor · La Crescenta, CA · Member since 2013 · 174 posts · 50 votes
    6y

    For those thinking that notes are 'safe', there are few of the protections such as title companies and required disclosures which are part of real estate transactions.  It is much more of the wild west.  I have been scammed by two note 'mentors'.  (It is not just Scott.)

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    6y

    @Jim Workman

    It would be helpful to know who they are so others also do not fall prey

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  • Specialist · Dallas, TX · Member since 2014 · 900 posts · 392 votes
    6y

    Everyone with a horror story about Carson or any other note Guru's fraud & theft, please start a fresh thread with as much info as possible, as the more seperate threads will counter his pedal to the metal continuation of his quest for more victims... Incredibly he is still acting like nothing is wrong...

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