A Boca Raton man has been arrested and charged in connection with a sophisticated real estate investment scheme that defrauded 16 investors out of over $410,000. Felipe Souza allegedly promised exorbitant returns on non-existent real estate deals, ultimately leading to his apprehension by the Palm Beach County Sheriff’s Office.
Key Takeaways
- Felipe Souza, 27, is accused of running a "bait and switch" real estate investment scam.
- Sixteen investors were allegedly defrauded of more than $410,000.
- Souza promised guaranteed returns ranging from 200% to 338%.
- Funds were allegedly transferred to an unlicensed associate, Michael Campbell, and used for personal expenses.
- Neither Souza nor Campbell were licensed to sell securities or real estate in Florida.
The Deceptive Scheme Unveiled
The investigation, initiated in November 2022 by the Florida Office of Financial Regulation (OFR) following complaints to the U.S. Securities and Exchange Commission (SEC), revealed that Felipe Souza, operating under FAS Creative Concepts LLC, lured investors with promises of high-yield opportunities. He claimed to be an expert in real estate investments, seeking funds to secure collateral for large loans intended for property acquisition and flipping.
Investors were reportedly enticed by guarantees of returns between 200% and 338%, coupled with a 100% money-back assurance. However, as investors began questioning the lack of promised returns, Souza allegedly provided various excuses for the whereabouts of their money.
Financial Misappropriation and Unlicensed Activity
Between February 2021 and January 2022, Souza collected a total of $413,800 from sixteen investors by providing false information. While he returned approximately $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 with substantial connections. Campbell, who owned Campbell Elite Consulting LLC and 700 Club Worldwide, had his company’s letterhead on some investment contracts, further misleading investors.
Crucially, the investigation uncovered that neither Souza nor Campbell held the necessary licenses to sell securities or real estate in Florida. Analysis of bank records showed that the investors’ funds were not utilized for any legitimate business purposes. Instead, Campbell reportedly used his share for personal spending, including shopping, dining, 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 serious charges, including sixteen counts of selling unregistered non-exempt securities and one count of defrauding to obtain property valued at over $50,000.