A Boca Raton man has been arrested for allegedly orchestrating a real estate investment scam that defrauded 16 investors out of over $410,000. Felipe Souza, 27, is accused of promising exorbitant returns on non-existent real estate deals through his company, FAS Creative Concepts LLC.
The Investment Scheme Unraveled
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 a pattern of deception. Souza allegedly marketed a "high-yield investment opportunity" with guaranteed returns ranging from 200% to 338%, coupled with a 100% money-back assurance. He presented himself as a real estate investment expert seeking funds for property acquisition and flipping.
Key Takeaways
- Souza promised high returns and money-back guarantees.
- 16 investors were defrauded of over $410,000.
- Funds were diverted for personal use by Souza and an associate.
- Neither Souza nor his associate were licensed to sell securities or real estate in Florida.
Misappropriation of Funds
Between February 2021 and January 2022, Souza reportedly collected $413,800 from investors by providing false information. While he returned a portion of the funds to some investors, a significant balance of $351,200 remained outstanding. Bank records indicate that nearly half of the invested money was transferred to Michael Campbell, who was presented as a successful businessman. Campbell, operating through Campbell Elite Consulting LLC and 700 Club Worldwide, allegedly used his share for personal expenses, including shopping, dining, and entertainment. Souza also used his portion for personal expenditures like utilities and travel.
Legal Ramifications
Investigators found that neither Souza nor Campbell held the necessary licenses to operate in Florida’s securities or real estate markets. Souza was arrested by the Palm Beach County Sheriff’s Office and faces charges including sixteen counts of selling unregistered nonexempt securities and one count of defrauding to obtain property valued over $50,000.
Sources
- Woman defrauds man of over $1.6M with promises of Miami-Dade real estate investment, WPLG Local 10.
- Boca Raton man nabbed for $410K real estate scam, duping 16 investors, WPEC.