One of the biggest real estate investment fraud schemes in recent
history has been exposed. Wells Real Estate Investment promised
investors that their money would be used to buy, renovate, and develop
commercial and residential properties across South Florida. Instead,
they gambled $28 million of $58 million in investor funds on speculative
options and futures trading.
Surprise, surprise—they lost almost $12 million in the process.
The 660 investors who trusted Wells with their money are undoubtedly in a
tough position. However, while the SEC has filed a complaint against
the company, who knows if investors will ever see recourse for the
crimes committed?
So let this be a cautionary tale: Fraudsters are out there. Wells had
been in operation since 2017—not all that long, comparatively, but seven
years is plenty of time to scam people.
So how do real estate investors—especially those just entering this
industry—avoid fraudsters, scammers, and ne’er-do-wells?
Keep reading the article here: https://www.biggerpockets.com/blog/principles-for-avoiding-real-estate-fraud
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How Investors Can Avoid Fraud Schemes | BiggerPockets Daily podcast - Listen or read transcript on Metacast
