Nationwide Investors Claim Losses in Chicago Housing Scheme

URGENT UPDATE: Investors across the country are raising alarms after allegedly losing significant sums in a suspected housing scheme involving vacant homes in Chicago. Residents and investors are reporting that properties, many boarded up and dilapidated, have been falsely marketed as lucrative investment opportunities by Steeve Raymond, CEO of Selective Real Estate Investments.

The ABC7 I-Team is investigating multiple lawsuits filed by eight investors from various states, claiming they were defrauded after contributing large amounts to rehabilitate properties that remain in disrepair. One investor, Arash Motedaeiny from northern Virginia, expressed his despair: “I need that money very badly… it’s devastated my life.”

The financial stakes are high, with investors alleging losses ranging from $75,000 to $550,000. They claim that promised interest payments of up to 33% have ceased, leaving them in financial distress for over a year. “This is a lot of my savings that I put forward,” said Andres Morales from Indiana, emphasizing the emotional toll of the situation.

In a recorded Zoom call from January 2024, Raymond touted his success as a licensed general contractor, promising investors substantial returns on their money. “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,” he stated. However, many investors feel misled, alleging they received interest payments from their own investments, raising suspicions of a Ponzi scheme.

Chicago Alderman William Hall has publicly condemned the situation, stating, “It is something that is distressful, stressful for neighbors,” as empty homes contribute to neighborhood decline. Two of the affected properties are in Hall’s ward in the East Woodlawn neighborhood, where community members have reported issues with squatters.

The investors, represented by attorney Ana McNamara of McNamara Law Office, Ltd., are demanding accountability. “It started with one or two phone calls and then it steamrolls into numerous,” McNamara recounted, highlighting the growing concerns of her clients.

Raymond’s attorney denied any wrongdoing, asserting that the claims are attempts to gain leverage in ongoing litigation. “There is no Ponzi scheme or other fraudulent conduct whatsoever,” the attorney stated, maintaining that the issues are merely foreclosure actions.

As the situation unfolds, investors remain anxious, with many expressing feelings of betrayal. Kathy Bradshaw from Ohio articulated her frustration: “When you’re ghosted like this… it’s unsettling.”

The I-Team also noted that Raymond’s attorney mentioned that some properties are nearing completion and will soon be listed for sale, suggesting a potential resolution for investors. However, as of now, legal responses to the lawsuits have not been officially filed.

With the stakes high and emotions running strong, these developments are a stark reminder for potential investors to conduct thorough research before committing funds. As echoed by Ashley Brown from California, “I just need some answers as to if you did not rehab these properties.”

The urgency of this situation continues to grow, and officials are calling for immediate action to protect investors and restore trust within the community. Stay tuned for further updates on this developing story.