A Boca Raton man has been arrested for allegedly orchestrating a "bait and switch" real estate investment scheme that defrauded 16 investors out of over $410,000. Felipe Souza, 27, is accused of making false promises of extravagant returns on non-existent real estate deals.
Key Takeaways
- Felipe Souza arrested for a real estate investment scam.
- 16 investors defrauded of over $410,000.
- Promises of high returns and money-back guarantees were made.
- Funds were allegedly diverted for personal use by Souza and an associate.
- Neither Souza nor his associate were licensed to sell securities or real estate in Florida.
The Scheme Unveiled
The investigation, initiated by the Florida Office of Financial Regulation (OFR) in November 2022 following complaints to the U.S. Securities and Exchange Commission (SEC), revealed that Souza, operating under FAS Creative Concepts LLC, lured investors with promises of guaranteed returns between 200% and 338%, coupled with a 100% money-back assurance. He presented himself as a real estate investment expert seeking funds for a large loan to buy and flip properties.
Misappropriation of Funds
According to OFR reports, from February 2021 to January 2022, Souza collected $413,800 from 16 investors. While he returned a portion ($62,600) to some investors, a significant balance of $351,200 remains outstanding. Bank records indicate that nearly half of the invested funds were transferred to Michael Campbell, who was presented as a successful businessman. Campbell, who owned Campbell Elite Consulting LLC and 700 Club Worldwide, had his company’s letterhead on some investment contracts, further misleading investors.
Lack of Licensing and Personal Spending
Crucially, neither Souza nor Campbell were licensed to sell securities or real estate in Florida. Investigations into bank records showed that the investors’ money was not used for legitimate business purposes. Instead, Campbell reportedly used his share for personal expenses like shopping, food, and entertainment, while Souza spent his portion on utilities and travel.
Arrest and Charges
Souza was arrested on Sunday by the Palm Beach County Sheriff’s Office. He faces charges including sixteen counts of selling unregistered nonexempt securities and one count of defrauding to obtain property valued over $50,000.