Multiple investors from across the United States claim they have lost significant sums of money in an alleged housing scheme involving vacant properties on Chicago's South Side. Lawsuits have been filed against Steeve Raymond, CEO of Selective Real Estate Investments, by individuals who say they invested in home rehabilitation projects that never materialized.
Key Takeaways
- Eight investors have filed lawsuits alleging losses in a Chicago real estate scheme.
- Steeve Raymond, CEO of Selective Real Estate Investments, is named in the lawsuits.
- Investors claim they loaned money for home rehabs with promises of high interest and principal return.
- Many investors report waiting over a year for returns, with interest payments ceasing.
- Some lawsuits allege a Ponzi scheme, where early interest payments came from new investor funds.
Investors Seek Answers and Lost Funds
Eight investors from various states, including Virginia, Ohio, South Carolina, Indiana, North Carolina, California, and Washington, have come forward with claims against Steeve Raymond. They allege that Raymond solicited them to loan money for the rehabilitation of boarded-up properties in Chicago neighborhoods. The promised returns were substantial, with investors expecting 30% to 33% in upfront interest payments.
According to attorney Ana McNamara of McNamara Law Office, Ltd., who represents the investors, the agreements included a provision for investors to receive their entire principal back after six months. However, investors report waiting at least a year for their initial investments to be returned. Many also state that interest payments have stopped.
"I need that money very badly. I mean, you know, I'm married with two kids providing for my family and it's putting me in debt... So it's devastated my life."
Investment Amounts
Investors claim Raymond owes them between $75,000 and $550,000, factoring in principal, interest, and attorney fees. Derek Robinson of North Carolina reportedly invested the largest sum.
Promises of Lucrative Chicago Market
Steeve Raymond, in recorded Zoom calls from January 2024, is seen pitching his business to potential investors. These videos are cited in a ninth lawsuit filed by McNamara's office. In the videos, Raymond asserts his expertise as a licensed general contractor, claiming this allows him to control both property purchases and rehabilitation processes effectively.
He highlights Chicago as a prime investment location. "I do business in four different markets, and 90% of my business is Chicago simply because there is a huge upside to investing in Chicago," Raymond stated in one video.
Company Background
Steeve Raymond is the CEO of Selective Real Estate Investments, an Illinois-based company. The lawsuits specifically target his alleged activities related to these Chicago properties.
Allegations of Ponzi Scheme and Neighborhood Impact
While some investors reportedly received initial interest payments, several lawsuits allege these payments came from new investor funds, suggesting a possible Ponzi scheme. Investors are seeking clarity on the fate of their money and the promised property renovations.
"I just need some answers as to if you did not rehab these properties," said Ashley Brown, an investor from California.
The condition of the vacant properties also concerns local officials and residents. Alderman William Hall, whose 6th Ward includes two of the homes in question in the East Woodlawn neighborhood, expressed frustration.
"It is something that is a distressful, stressful for neighbors. And no neighbor should have to wake up to an abandonment that they could have possibly bought."
Neighbors have also reported issues, including squatters in some of the dilapidated homes. "We've had squatters in the house," said Kelle Martin, a local resident.
Raymond's Attorney Denies Wrongdoing
Raymond's attorney, who is also named in several lawsuits, has denied any wrongdoing or fraudulent activity. The attorney stated that Raymond is not willing to comment on pending litigation. They suggested that the lawsuits are merely foreclosure actions and that the media attention is an attempt by the investors' attorney to gain an advantage.
Raymond's attorney also indicated that several properties are nearing completion and will soon be listed for sale. They added that Raymond is working diligently to repay loans.
As of now, Raymond has not filed official legal responses to the specific lawsuits mentioned in reports.
Advice for Potential Investors
Authorities and financial experts consistently advise consumers to conduct thorough research before investing with anyone. If a promised return on investment seems too good to be true, it often is. Verifying licenses, checking company reputations, and consulting independent legal and financial advisors are crucial steps to protect investments.
The ongoing legal proceedings will determine the outcome for the investors and the future of the properties involved in this alleged scheme.
