Urgent: Investors Claim Major Losses in Chicago Housing Scam

UPDATE: A shocking housing scheme has left investors across the nation facing significant financial losses in Chicago. Reports confirm that individuals from various states have lost thousands after investing in vacant, boarded-up homes, purportedly to be rehabilitated by Steeve Raymond, CEO of Selective Real Estate Investments.

The ABC7 I-Team is actively investigating multiple lawsuits filed by eight investors who allege they were defrauded by Raymond. These homes, located on the city’s South Side, have become symbols of despair for local neighborhoods, as empty properties continue to blight the community.

“We’re devastated,” said Arash Motedaeiny from northern Virginia. “I need that money very badly. It’s putting me in debt.” Motedaeiny isn’t alone; other investors echo similar sentiments, revealing the emotional toll and financial strain caused by this alleged scam.

Raymond, who promotes his services through YouTube videos, claimed in a January 2024 Zoom call: “I am a licensed general contractor… I can control not only the purchases but the rehab of the property.” However, investors now report that promised returns have not materialized, with many waiting over a year for their investments to be returned.

Kathy Bradshaw from Ohio expressed her frustration: “When you’re ghosted like this, it’s unsettling. I’m angry. I’m upset.” With principal and interest owed to investors ranging from $75,000 to $550,000, the situation has escalated into a crisis for those involved.

Ald. William Hall, representing the affected East Woodlawn neighborhood, voiced his concerns: “It is something distressful for neighbors… No neighbor should have to wake up to an abandonment they could have possibly bought.” Community members are growing increasingly frustrated with the conditions of these vacant homes, fearing further decline in their neighborhoods.

This alarming situation has prompted attorney Ana McNamara, representing the investors, to take action. “This started with one or two phone calls and then steamrolled into numerous,” she stated, highlighting the widespread impact of Raymond’s alleged actions.

Investors claim that Raymond initially promised returns of 30% to 33%, with the full return of their principal after six months. Yet, many have reported that interest payments have ceased, leading to accusations of a Ponzi scheme. “It’s a great loss to me,” lamented Belinda Rowe from South Carolina. “I don’t have millions of dollars to retire on.”

Raymond’s attorney, also named in several lawsuits, denied any wrongdoing, stating, “There is no Ponzi scheme or other fraudulent conduct whatsoever.” However, as the legal battles continue, the investors are left in a precarious position.

Among the investors, Derek Robinson of North Carolina described the situation as a significant setback for his retirement plans. “This was a huge setback,” he said. Meanwhile, Andres Morales from Indiana added, “This is a lot of my savings that I put forward.”

As the community and investors await justice, some neighbors report issues with squatters in the abandoned properties, compounding the distress felt by many.

With several lawsuits pending, the urgency for accountability is palpable. Investors are not just facing financial ruin; they are grappling with the emotional fallout of trusting a system that has left them vulnerable.

Investors and community members alike are calling for immediate action to address the plight of these neglected properties and the alleged scam that has taken advantage of their hopes for financial security. The situation remains fluid, and further developments are expected as the I-Team continues its investigation.

Before investing in real estate or any venture, experts urge consumers to conduct thorough research. If an offer sounds too good to be true, it probably is.