Illustration depicting the concept of real estate fraud with a skyline and caution symbol.
A Boca Raton man, 27, has been arrested for a real estate fraud scheme that defrauded 16 investors of over $410,000. Felipe Souza promised high returns on non-existent deals but misused the funds for personal expenses. He faces multiple charges, including selling unregistered securities. The investigation revealed connections to an associated individual who also lacked proper licenses, highlighting the prevalence of real estate scams among young entrepreneurs.
Boca Raton, Florida – A local man has been taken into custody following allegations of orchestrating a substantial real estate investment fraud that defrauded 16 investors out of more than $410,000. The arrest comes after investigations revealed deceptive practices involving false promises of high returns and the misuse of investor funds.
Felipe Souza, aged 27, is accused of running a “bait and switch” scheme through his company, FAS Creative Concepts LLC. Starting in late 2022, authorities initiated an inquiry into Souza’s business activities, prompted by complaints received by the U.S. Securities and Exchange Commission (SEC). The SEC’s investigation uncovered that Souza falsely portrayed investment opportunities as lucrative real estate deals, claiming potential returns between 200% and 338%. He also assured investors of a 100% money-back guarantee, promising high-yield, low-risk investments.
Souza claimed he was seeking funds to secure a large, collateralized loan to purchase and flip properties, portraying himself as a reputable real estate investment expert. However, as investors began questioning the status of promised returns, Souza reportedly provided various excuses regarding the whereabouts of their funds. Between February 2021 and January 2022, Souza collected approximately $413,800 from investors.
Despite the total collected, Souza returned only $62,600 to some investors, leaving an outstanding balance of roughly $351,200. Bank records revealed that the funds were not used for legitimate business activities related to real estate. Instead, investigators found that nearly half of the investor money was transferred to Michael Campbell, a man who claimed to be a successful businessman. Campbell’s involvement helped lend credibility to Souza’s scheme but also involved misrepresentation.
Neither Souza nor Campbell possessed the necessary licenses to sell securities or real estate legally in Florida. Financial documents indicated that the money was diverted into personal expenditures. Campbell reportedly used his share of the funds for shopping and entertainment, while Souza spent investor money on utilities and travel expenses, further demonstrating the fraudulent nature of the scheme.
Souza was detained by the Palm Beach County Sheriff’s Office and faces multiple criminal charges. He is charged with sixteen counts of selling unregistered nonexempt securities and an additional count of defrauding to obtain property valued over $50,000. These charges stem from the allegations that he misrepresented the nature of the investments and misappropriated investor funds for personal gain.
This case highlights ongoing issues with unlicensed investment schemes in Florida, where individuals exploit investor trust through false promises of high returns in real estate. The investigation emphasizes the importance of verifying licensing status and scrutinizing the legitimacy of investment opportunities before committing funds. Regulatory agencies remain vigilant in pursuing and prosecuting such financial crimes to protect consumers and maintain market integrity.
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