ADI
A rise in solicitations for investments in real estate projects that are not found on any stock exchange has prompted the Arizona Corporation Commission’s Securities Division to warn investors unregistered real estate ventures.
Recently, the Securities Division brought action against two fraudulent real estate investment scams. The Commission ordered USA Barcelona Realty Advisors, LLC, to pay $1,215,353 in restitution and $450,000 in administrative penalties for securities violations relating to a capital raising plan to build hotels because investors were not told that certain promoters had a prior failed real estate venture and a prior criminal conviction related to investment fraud. The Commission also ordered, Jason Todd Mogler and Tri-Core Companies, LLC, to pay a total of $4,399,834 in restitution and $400,000 in administrative penalties relating to a promissory note scheme in connection with a Mexican land investment.
According to the Commission, unregistered real estate scams tout above-market returns with little-to-no risk to investors, and very little effort required of investors outside of contributing capital to fund the projects.
