• Report: #1096731

Complaint Review: USA Property Investor

  • Submitted: Mon, November 04, 2013
  • Updated: Tue, November 10, 2015

  • Reported By: fd54 — SOUTHPORT Other
USA Property Investor
(U.K) 35A Victoria Road East, Thornton-Cleveleys, , Select State/Province United Kingdom

USA Property Investor Detroit property refurb ripoff Thornton-Cleveleys, Lancashire, UK

*General Comment: Claim against UPI regarding NDD losses

*Consumer Comment: Oliver Booth USA Property Investor

*Author of original report: AIPP involvement

*Consumer Comment: respond or comment to you

*Consumer Comment: UPI FRAUD

*Consumer Comment: I have also been ripped off by USA PROPERTY INVESTOR

*Author of original report: Update

*Author of original report: Not a rebuttal

*REBUTTAL Owner of company: Usapropertyinvestor bad investment

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I was forced to take early retirement two and a half years ago and, as my pension was smaller than I had anticipated I decided to use my lump sum to provide me with a bit of extra income. I believed (foolishly as it turned out) that property was the best bet and statred attending seminars and sales events. One of these was run by a company called Property Secrets in tandem with an associate USA Property Investor (though I did not know there were two separate companies at the time). They offered what they claimed to be hands-off deals in Detroit with good rental returns. The properties were fully refurbished (they claimed) and it was just a question of investing and sitting back and letting the income flow in.

Almost from the outset their promises were hollow. A deal they said would take six weeks to complete and be up and running took 6 months and they had my money for a good proportion of this time. I told them I was unhappy and wanted to pull out at this stage but they just ignored me. When the property was finally ready it became quickly apparent that this was not a genuine arrangement. Firstly the US agent hit me with around $1100 of charges that they had made no mention of and then with around $800 of repairs on what was supposed to have been a newly refurbed preoperty. Then the $850 per month rent they promised turned out to be $800. And this was only the start.

The company registering the property to me failed to check or follow up and the property has never appeared in my name meaning I didn't recedive any tax demands and the taxes and penalties mounted up without my knowledge or ability to do anything. The agent has consistently claimed that repairs and maintenance was needed on this 'newly refurbished' property and has hit me with $9k of expenses for this. Then, about a year ago, the supposed long-term tenant left and the agent hasn't bothered to find a new one in a year so I have lost about $10k rental income.

 

During all of this I kept telling USA Property Investor what was happening but their only response was 'it is between you and the agent' (the agent they appointed). If I didn't like it they suggested I change agents and recommended - the agent I was already with at their instigation! They are now threatening to foreclose on my mortgage as I have had no income at all for 18 months (in fact I have paid around $8k in taxes and mortgage payments in that time) and have no money to pay the outstanding amounts. They now seem to be hiding behind the fact that the other company, Property Secrets, made all the claims and promise and it is their fault and responsibility.

Most of what was claimed in the original literature is either inaccurate or misleading and the USA Property Investor site continues to claim these are hands-off investments. I quote from their website: 

'UPI helps its clients to acquire high yield property investments in well established, stable environments in the USA.

With operations in both the UK and USA, we provide access to exclusive below-market-value opportunities from a variety of sources, including REO, bank foreclosures, distressed sales and trustee sales.'

Well they haven't helped me in the slightest - unless you count helping me lose $40k. The environment they sell you into seems anything but stable and the below-market-value claim is laughable. I had someone value the property I paid them $44k for and they thought it was worth about $10k in its present state. As for refurbishment he also told me that the kitchen and bathroom were very old and outdated and most of the fittings needed replacing. So exactly what did they refurb?

My guess is - and I have no evidence for this yet - is they bought the property off the county for $5k or $6k spent a couple of thousand tarting it up and then sold it as a full refurb. There is at the very least misrepresentation here, possibly passing off and maybe even fraud and negligence. Avoid these people at all costs if you want to preserve your investment.

 


This report was posted on Ripoff Report on 11/04/2013 06:44 AM and is a permanent record located here: http://www.ripoffreport.com/r/USA-Property-Investor/Thornton-Cleveleys-Select-StateProvince-FY5-5BU/USA-Property-Investor-Detroit-property-refurb-ripoff-Thornton-Cleveleys-Lancashire-UK-1096731. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
3Author 5Consumer 1Employee/Owner
Updates & Rebuttals

#1 General Comment

Claim against UPI regarding NDD losses

AUTHOR: Anna (UK investor in NDD) - (United Kingdom)

Could the Spanish author who filed a compensation claim with regard to his NDD losses please let me know if he was successful in recovering any money? I also invested in Phase 3 and lost $57,000. 

UPI still seem to be operating and sending out various emails marketing a variety of products. 

To the Detroit investor: if you still have your Detroit property then I suggest you use Garner Property Management Detroit. They take 10% but they are efficient and a legitimate company. They manage two units for me that have stayed tenanted. for four years I am not sure the 'refurb' ever took place either tbh. 

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#2 Consumer Comment

Oliver Booth USA Property Investor

AUTHOR: Matt - (United Kingdom)

I purchased a property through Oliver Booth @ USA Property Investor as well (my report is on this website as well) and can't believe that this guy is still operating!

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#3 Author of original report

AIPP involvement

AUTHOR: - ()

Ii is interesting (and perhaps revealing) given the amount of negative  comments about UPI and their dealings and their current situation with NDD etc that when I complained to the AIPP about them a couple of years ago they basically told me UPI were sound and it was my fault that I was ripped off by them. what a joke! And they are supposed to protect consumers' interests in these areas. Exactly how they do this is a total mystery to me. It took them a year to come to a most bizarre conclusion in my case and then didn't address any of the points or issues I raised. In the meanwhile I lost the property and my money and it was too late to do anything. Don't waste your time expecting AIPP to help you. If you have a case get on and do what you can for yourself.

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#4 Consumer Comment

respond or comment to you

AUTHOR: ARGSPAIN REAL INVESTMENT LLC - (Spain)

me too, are you commencing litigation against UPI due to its bogus offering of units in NORTH DAKOTA under NDD?

Please let me know, you can email me at gasdon@aol.com

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#5 Consumer Comment

UPI FRAUD

AUTHOR: ARGSPAIN REAL INVESTMENT LLC - ()

I have just uploaded my case against UPI after months of work up and evidence gathering.

 

I have finally filed the complaint for financial compensation at the Property Ombudsman, UK legal Body.

 

Good luck!

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#6 Consumer Comment

I have also been ripped off by USA PROPERTY INVESTOR

AUTHOR: ARGSPAIN REAL INVESTMENT LLC - ()

RE: USA PROPERTY INVESTOR

( U.K) 35A Victoria Road East, Thornton-

Cleveleys, FY5 5BU

 

Case outlined of events:

Mr. Oliver Booth is a managing director of Usa Property Investor (USAPROPERTYINVESTOR.COM). UPI worked in connection with North Dakota Developments Lt., both AIPP as international property professionals.

UPI is a non-regulated business nor a registered company in the financial conduct authority.

Mr. Booth has an individual responsibility as the main approved international affiliated sales company for the marketing and promotion, marketing, adverstisement of an unregistered investment product for North Dakota Developments Lt.

Mr.Booth with UPI has aided and abetted North Dakota Developments in the mis-sale of housing units in form of single studios in large horizontal buildings in the state of North Dakota and Montana, United States.

These units do not have title in deeds, which is unlawfull. Furthermore, it is collective owned property scheme, which is unlicensed there unlawful.

Mr. Booth has never verified the authenticity of this product which makes him equally responsible.

Mr. Booth has already four complainants for his past property selling activities that carried out negative consequences for these clients resulting in the loss of great amount of monies.

Mr. Booth offered a purchase investment based on false information, knowingly these facts, but proceeded to recommed them unsuitably to me and many others.

Mr. Booth offered this product without disclosing his previous records of complaints against him and his company but also NDD disciplined by the financial conduct authority. A practice called misrepresentation.

This investment was not offered directly and marketed by NDD but bt UPI which should have scrutinized it for legitimacy. A practice called "selling awaw"

The importance of the sale end in an offer/demand is the final product. However, Mr. Booth sold me since November 2013 a product that failed to be delivered at all. Which it should have been done within a reasonable period of time.

 

A first contract signed on November 2013 in three stages for a total sum of $ 57400 plus a $2900 booking fee. The location was to be Watford City for the phase 3 of this development.

The objective of this purchase was to obtain up to 42% Return on rental sales (See brochures)

The promised date of opening was set for January 2014'. It s today that this phase three has no sign of completion nor opening. Nevertheless, Mr. Booth led me to release a second staged payment aiding NDD gaining access to my funds. Much later, asking for the whatabouts, I found out that the lodge was not registered in the State of North Dakota secretary state until November 17th, 2014 (of public online record).

The units weren't built at the factory, neither land ready to place them on. Which according to contract a second release of funds must be made when conditions were met: units built ready to ship from factory and land ready to be placed them on.

(see 3/17/2014 asking for second stage payment)

Its completion and opening has been periodically pushed back since March 2014 with a false date of opening (see emails).

I believe UPI/Mr. Booth has wronfully conducted, misrepresented and aided and abetted NDD to breach my purchase contract agreement, lease agreement, management agreement when they requested me the second stage inducing fraud activity.

I would like to add that North Dakota Developments LLC was a subsidiary of United Kingdom-based real estate investment firm Property Horizons. - The firm managed by the same Robert Gavin CEO and Daniel Hogan COO was investigated by the FCA (Financial Conduct Authority and determined that an illegal collective scheme was carried out. This was the initial set up. (See precedents below)

Delay after delay, the weather was blamed so I decided and requested to move to the supposedly new to open Montana site. (see email request to move if a definite).

So, by now, the other GAL Eastern Montana Culbertson City, was previously set date for Opening March 2014. I signed new contracts on MAY 7, 2014 .The fact was that no land was prepared for the units, nor the units built.

Mr. Booth utlized a sales pitch tactic in a hurry to aid NDD (see pressuretosell email pdf)

Needless to say, but NDD is under investigation for the North Dakota Securities Commission for allegedly de-fraud between 50 and 100 million USD by creating a sofisticated Ponzi scheme type. A never endless investments to continue to fund existent ones.

Since late 2013' my committment was unconditional and abiding by it. But Mr. Booth didn't keep his in representation of UPI.

A third payment was relinquised as well as further endeavor on this fraud. A total amount had been released until today of $43, 735.-

The dates for opening the Montana site were pushed back periodically to May, June, September, late November early December 2014. Shouldn't all this have been done previous to the sale and promising opening dates?. (See emails)

Mr. Booth never expressed empathies. Mr. Booth allegedly tried to contract NDD directors at no avail. Mr. Booth never offered a solution but a charge of $6,000 to seek for a replacement owner. However, he failed at it.

Recently, I reminded him that NDD was chasing for final payments. I noted that default or failure to release a final payment, despite ongoing fraud, all earnest monies were to be considered liquidated damages to be kept by NDD.

Obiously, that I won't do that. Therefore , I reiterated him but he sought to stop to see a solution and referred the matter to his council.

I may add, I will not aid UPI nor NDD in finding a replacement owner and it would transfer the problems to the next owner. But he continues the aiding and mis-selling of these units in connection with NDD.

Finally, I urge the property ombudsman to issue an order for 25,000 sterling pound as financial compensation. I understand that this is the limit, despite a higher loss, but for the my sake and end I kindly request the available sum as full and final settlement.

Not to mention the emotional distress and inconveniences that followed this actions still haunts today.

 

PRECEDENTS:

thisismoney.co.uk/money/experts/article-2638177/TONY-HETHERINGTON-Your-refund-1-795-booking-fee.html (finanacial conduct authority strike down of Property Horizons)

Funds Release Requirements:

35% of contract price (plus purchasing costs) on signing of purchase contract

35% on confirmation that the modular sections are ready to ship from the factory**

30% on confirmation that the building is complete and ready for occupation

**All modular units will be constructed and shipped to site before all suites are sold

This sentence states otherwise as contracted in the agreement.

Many investors lead to release monies aided by NDD's affialited sales managers, like UPI:

All those on the Montana project were asked to fund their second stage payments from around the 14th May 2014 (Mine on March 17th). units were not ready at the factory at this point in time, updates in relation to Montana seems like they contradict themselves several times. The most important point to note is that they are only due the second stage payment when units are ready to be delivered to site. This was clearly not the case when they reported on the 22nd October 2014 that the "production line had come to a halt" due to the factory having problems (BELOW) Then why did NDD group ask for all their investors on Montana for stage 2 funds if they were not ready to be delivered? . This means and I concluded they illegally led investors to this belief to gain illegal access to OUR money.

 

Securities and Exchange Commission similar example:

eenews.net/stories/1059985974

SEC comments about above example case: "These projections were wholly speculative,"

"projections were "flatly contrary to actual results".

The % of annual return on investment differs from their sales brochures.

In the following case another misrepresentation: a broker from Australia shows a NOW 30% annual return, compared to 41% in the paragraph described.

fbcgroup.com.au/north-dakota-investments/

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#7 Author of original report

Update

AUTHOR: fd54 - ()

Since I filed the original report I have also discovered that the property I was sold for 44,500 dollars was purchased by UPI a few months earlier for 13,088 dollars. I have also found out that the agent they arranged to manage the property a Jason Horvath of PropertyOne management is not licensed to practise in Detroit.

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#8 Author of original report

Not a rebuttal

AUTHOR: fd54 - ()

 This isn't a rebuttal but there doesn't seem to be a mechanism for just commenting. If anonymous1 reads this could they perhaps provide more details. I am taking legal action against UPI and any extra ammunition would be helpful.

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#9 REBUTTAL Owner of company

Usapropertyinvestor bad investment

AUTHOR: Anonymous1 - ()

Almost the same happened to me. Have spent tens of thousands of dollars fixing bad property investments from upi.

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