A Boca Raton man has been arrested for allegedly orchestrating a sophisticated real estate investment scam, defrauding 16 investors out of over $410,000 with promises of extravagant returns. The scheme, which operated under FAS Creative Concepts LLC, lured victims with guarantees of 200% to 338% returns and a 100% money-back assurance.
The Investment Scheme Unveiled
Felipe Souza, 27, presented himself as a real estate investment expert, seeking funds to secure collateral for large loans intended for property acquisition and flipping. Investigations initiated by the Florida Office of Financial Regulation (OFR) in November 2022, following complaints to the U.S. Securities and Exchange Commission (SEC), revealed a pattern of deception. Investors were promised high yields, but when returns failed to materialize, Souza reportedly offered various excuses for the missing funds.
Financial Misappropriation and Deception
Between February 2021 and January 2022, Souza collected $413,800 from 16 investors by providing false information. While he returned approximately $62,600 to some investors, a significant balance of $351,200 remains unaccounted for. Bank records indicate that nearly half of the invested funds were transferred to Michael Campbell, who was presented as a successful businessman with substantial connections. Campbell, operating through Campbell Elite Consulting LLC and 700 Club Worldwide, further lent credibility to the fraudulent operation, with some investment contracts bearing his company’s letterhead.
Lack of Licensing and Personal Spending
Crucially, neither Souza nor Campbell held the necessary licenses to sell securities or real estate in Florida. An analysis of bank records revealed that the investors’ funds were not utilized for legitimate business purposes. Instead, Campbell reportedly used his share for personal expenses such as shopping, dining, and entertainment, while Souza spent his portion on utilities and travel.
Arrest and Charges
Souza was apprehended by the Palm Beach County Sheriff’s Office. He faces serious charges, including sixteen counts of selling unregistered nonexempt securities and one count of defrauding to obtain property valued at over $50,000. The investigation highlights the importance of due diligence when investing and the severe consequences of fraudulent financial schemes.
Key Takeaways
- A Boca Raton man, Felipe Souza, has been arrested for a real estate investment scam.
- He defrauded 16 investors out of over $410,000.
- Souza promised unrealistic returns and a money-back guarantee.
- Funds were allegedly transferred to Michael Campbell and used for personal expenses.
- Neither Souza nor Campbell were licensed to sell securities or real estate in Florida.
- Souza faces multiple felony charges, including securities fraud.