Hilton Head Properties scammed by Investors trying to hide $1mil cash??? or attempting fraud???
My name is Paul Parker. I am an executive with Hilton Head Properties and several subsidiaries and I have first-hand knowledge of the actions of Mr David Gill (real name is Armadeep Gill), Katie Maan (real name is Kawadeep Maan), Prem Maan and the new entity they formed MacGyver Finance, LLC.
Mr Gill approached Hilton Head Properties in late 2006 attempting to find out what the company owed to other investors that was expected to come due in the next month or so. It appears he was seeking to purchase debt so he could re-negotiate it for a high interest or possibly to attempt to take control of Hilton Head Properties. And in that effort, he did begin discussions with the company's largest investor without advising the company he was doing so. In an attempt to purchase the investors debt, he advised our President he intended to seek a board seat as well as one for Ms Katie Maan in exchange for renegotiating the debt he was going to purchase. When it was advised to him that contracts with our investors preventing our investors from selling any' company debt without Board approval, Mr Gill decided instead then, he wanted to invest in the company - but advised the money belonged to a Mr Prem Maan - but Mr Maan would never be present and that Mr Gill would represent him.
We were never allowed to talk to Mr Maan yet even though he was suppose to be the true investor and Ms Katie Maan (real name is Kawaldeep Maan) was his daughter. All are natives of India.
The company allowed Mr Gill to have access to company information, after signing a non-disclosure agreement, to determine if he wanted to invest. Mr Gill advised he was well versed in business matters and was a qualified investor handling many millions of dollars for Mr Prem Maan. And he appeared to be fairly' knowledgeable. Boy was he.
Therein, Mr Gill began a process of attempting to dictate what' HHP was going to give him and at what price. Due to several projects that HHP had at the time that they wanted to move forward on due to considerable profit involved, HHP and Mr Gill did come to some terms for an investment exceeding $1 million in exchange for almost $2 million in debt payable to their newly formed company MacGyver Finance, LP, and approximately $1mil in equity in various projects HHP owned and equity in HHP. Much of that debt would be paid to Gill and Maan July, 2007, 7 months after the investment by HHP.
Helluva of a profit for Gill and Maan in VERY short time frame - but still a good deal for HHP as they had even more profit to earn from the numerous projects they had available.
But - timing was very important.
However, even though HHP provided all assets to Gill and his investors, including debt and equity in projects and some equity in HHP - MacGyver NEVER finished paying for the purchase.
Further the money they did pay, about $950,000 in cash was delivered in a duffle bag, with the balance owed on Feb/2007 for their purchase' - unpaid. And when the money was delivered - Mr Gill wanted someone else to sign at the bank for the deposit - not wanting his name to be related to the cash. Mr Fonteno refused - stating the company does not deal in 'cash' and required a check or cashiers check - Mr Gill refused.
After discussing the issue for days with attorneys, IRS, Homeland Security and other entities, HHP took the cash even though Gill still refused to sign anything related to 'cash' by HHP's bank, however, based on HHP's research, HHP Officers signed for it (that included me) and therein HHP filed a cash transaction document with the Federal Gov't identifying Gill and Maan as investing large amounts of 'cash'.
And HHP proceeded to invest in some of the projects and line up the others - putting up large sums of cash to ensure they stayed in place until the projects were funded with the rest of the funds due from the investors.
But those investors never provided the balance of the purchase even as of this date.
Now some of the investments that HHP owns ('owned' and were given to Gill and Maan) are paying off - Gill and Maan are demanding their 'full' profit on investments they have not paid for. HHP refused and sought to 'be fair' and reduce the investors percentage by the percentage they did not pay for.
MacGyver/Gill and Maan acknowledged they had the funds to finish paying HHP, but decided to use it elsewhere - but still wanted their full profit share.
And Gill contacted HHP and advised them that MacGyver was not going to give the rest of the funds they owed right then - maybe later?
But he "did" have money that he wanted to invest in the projects that HHP was suppose to fund with the investors money Gill/MacGyver/Maan already owed... But - only for an 'additional' share of profit.
Hmmm... isn't that like double-dipping on profit, and not even paying for the first investment? So HHP decided to sue, seeking a judge to determine what HHP's proper liability to Gill, Maan and MacGyver should be due to their breach of contract.
HHP filed suit in March/2007 - suing Gill, Maan and MacGyver for fraud, breach of contract and more. That suit is filed in Dallas County, Texas 134th District Court under Cause No. 07-02537. You can access it at: http://courts.dallascounty.org/Search.aspx Then enter in case number DC07-02537.
In July,2007 when the notes HHP would owe to MacGyver (if they paid for them) came due and of which Gill, Maan and MacGyver are in the lawsuit HHP filed over, instead of properly addressing it with the Judge, Gill tried a blast to the public to seek HHP to roll over. Did not work. Suit is moving forward.
Also - the Judge ordered mediation. Well - after 8 hours of mediation, they finally agreed to terms of settlement proposed by HHP in the very beginning - and after the agreement was drafted - they told the mediator "we will take it home and think about it'. Not the way mediation works.
Due to Gill and Maan constantly advising HHP that the cash due to them in Feb/2007 was forthcoming - even for a month after it was due - the large cash HHP put up of their own to secure various projects planned with the MacGyver funds that MacGyver never paid (even though MacGyver was given the assets for such non-paid funds) - were lost. Approx. $200,000+ All due to Gill's, Maan's, and MacGyver's actions. Also - an estimated $2.9 million in lost profits tied to those projects that were not realized by HHP due to MacGyver's actions.
Why did they do it? Was this done by them intentionally?
Looking now at their actions - it appears to me and a number of HHP's executives that theywere seeking control of HHP? Can't prove it but it appears suspicious how these guys work.
HHP is now having serious issues as to where the cash 'came from' and if HHP has any liability and was this cash is being parked with HHP to hide it???
Why carry around that much cash???
In a duffel bag?
Almost a $1 million ???
To date Gill and Maan and MacGyver have refused to produce 'most' of the discovery requested in the case and even failed to show up at depositions. HHP's attorney in July filed a Motion with the Court to demand Gill, Maan and MacGyver produce discovery. Trial is set for early October.
Hilton Head's President 'Chase' Fonteno has built over 30 companies and assist charities regularly since mid-1985.
In 1993 he owned a large investment brokerage firm, and during that time - unknown to himself and without intent, he violated a technicality of the state securities law. That technical violation, related to corporate loans by individual investors that became classified as 'securities' and if' classified as securities, was considered fraud for not properly documenting it. Mr Fonteno agreed to a probation for such securities violation and agreed to pay all cost related to such actions. Mr Fonteno is the son of Commissioner Jim Fonteno, a well known politician in the Houston area.
Hilton Head has purchased millions of dollars of single family and multi-family properties since I started with the firm in 2005. Mr Fonteno was the founder of the company, which has over 30 employees and he has a reputation with employees and investors as a hard worker and someone that is always fair and respectful. Further, he always seeks to allow everyone involved in a project (employees, investors and related parties) to always have full knowledge of all aspects of whatever project or action is being contemplated.
Hilton Head Properties is a real estate investment company that acquires seriously distressed property at deep discounts, turns the property around and either holds for long term investment or resells for a profit. Hilton Head has an excellent report with the Better Business Bureau and is listed with Dun & Bradstreet.
The Phoenix Foundation, I have personally seen and helped Mr Fonteno build that charity and know he has had HHP invest over $40,000 into that project. Mr Fonteno does not get paid for it, never will. It is his passion to help women and children that are in battered Women/Children's shelters obtain short term homes at nice apartment projects, making use of the apartments vacancy factor for good, allowing them to get on their feet and also providing them free computers and free internet access to help them find a job, a new life and be able to contact family members.
It is unfortunate that Mr Gill would try to harm HHP and/or Mr Fonteno by his actions - including one sided, biased and untruthful statements Mr Gill made publicly as an attack - but that is the beautiful part of living in America - everyone has an opinion and they are allowed to express it, and I appreciate this site for allowing me to make this RipOff Report.
Oh.. and just for legal purposes - while I directly saw the majority of the actions stated here - to deal with any slander issue - these are my opinions.
Chief Strategy Officer
Hilton Head Properties, Inc.