• Report: #954631
Complaint Review:

California Foreclosure Institute

  • Submitted: Sat, October 13, 2012
  • Updated: Thu, November 15, 2012

  • Reported By: Steve — Los angeles California United States of America
California Foreclosure Institute
2450 Colorado Avenue Santa Monica, California United States of America

California Foreclosure Institute Lloyd Segal Lured me into investing on a property, by misrepresenting all facts Santa Monica, California

*REBUTTAL Owner of company: Steve's (Hamid) allegations are false!

*REBUTTAL Owner of company: Sam Sadat is innocent and this person has created false accusations against him.

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I was lured into investing on an investment property with Lloyd Segal and Sam Sadat.  I met Lloyd through his "so called" California foreclosure institute workshops.  I didn't have the fee to pay for his class, so as I dug into my pocket after the first free teaser workshop "which is nothing but hype" I didn't have the $300 fee to pay and so I was shocked at the way he reached for my $243 cash that I had on me!  He took that and did not provide me with a receipt.  So from there I attended his weekend "foreclosure institue" and the whole thing seems very legit when you're new and green to this real estate business, then after watching him really closely I realized the guy is a fraud.  Too bad I googled his name "after" I had already given them 20K for partnering on a property!  Ater that it was one misrepresentation after another.  He gives himself and his partner "sam sadat" shares of every property they purchase with unsuspecting innocent students who have no clue on what's happening, plus they charge them all kinds of fees for rehabbing the property, managing it, creating an LLC. They never supplied me with any paper trail on anything, all they gave me was a spread sheet with their own numbers plugged in and as soon as I hesitated to sign a 37 page contract that pretty much stated I had NO rights to this property they immediately kicked me out of the partnership without my consent and mailed me my check back and this was all after they had refinanced this property and so they didn't need my money any more.  At this point they'd be taking over my share as well as the 20% share that they had already given to themselves without investing a penny out of their own pocket.  It took them 6 weeks to let me know where and what my money was invested on, who the partners were and what the terms where going to be.  You see they tell you one thing but wait until the very last minute where you're under a lot of pressure to sign something and that is when they switch all terms on you!  After I looked up Lloyd Segal on Google that's when I realized that this was the reason why he had his law license taken away from him.  He was convicted of credit card fraud, bankruptcy fraud, bad checks and all kinds of stuff... but he's an X lawyer / weasel, who knows the law and always walks that fine line without getting caught.  As soon as some one like myself protests to his crooked ways of conduct he immediately serves them with a cease and deseas letter and uses his attorney scare tactics to scare them away and eventually walk away from their rights.  Then he moves on to his next victim.  I really wish some one would investigate these guys and stop them from doing this to innocent unassuming investors.  I'm willing to provide all emails, paper work, agreements to any one who is willing to bust these two crooks.

This report was posted on Ripoff Report on 10/13/2012 04:24 PM and is a permanent record located here: http://www.ripoffreport.com/reports/california-foreclosure-institute/santa-monica-california-90404/california-foreclosure-institute-lloyd-segal-lured-me-into-investing-on-a-property-by-mis-954631. 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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Updates & Rebuttals

#1 REBUTTAL Owner of company

Steve's (Hamid) allegations are false!

AUTHOR: Lloyd - ()

Quite simply, Steve's allegations are false!

Frist, Steve is not his true name.  His real name is Hamid Panah.  (What does it say about a person who falsely criticizes people by name, but doesn't use his real name?)

Second, most of what Hamid wrote is incorrect and/or grossly distorted! Without reviewing every thing misrepresentation in his complaint, the simple truth is that Hamid invested $20,000 in our Pomona Project.  Several weeks later he changed his mind and wanted his investment refunded.  We immediately complied and refunded the entire amount.  Period.

But Hamid wasn't satisfied.  He then demanded $300 interest on his investment.  However, Hamid wasn't entitled to interest.  His contract with us did not provide for interest on his investment.  Further, paying him interest would be unfair to our other investors (who weren't receiving interest either).  Which is ironic since Hamid conveniently fails to mention that when the property was sold, all of our investors made a healthly profit on their investment.  

So when we refused to pay Hamid interest, he threatened to disparage our names on Rifoff.com and other websites, whihc is of course exactly what he did.  Then, when that didn't work, he filed more bogus complaints against us on this website (using other people's names).

Then, to make matters worse, he was able to access this website again and add the rebuttal from Sam.  Of course, Sam never wrote these comments!  And if you don't believe me, you can call Sam direclty at ((REDACTED)) and ask him.  Also, please feel free to call me direclty at 310-409-8310 if you want to discuss Hamid's allegations.  That is what wrong with these webstites; anyone can write anything.  Further, no one verifies the veracity of these vicious claims.   



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#2 REBUTTAL Owner of company

Sam Sadat is innocent and this person has created false accusations against him.

AUTHOR: Sam Sadat - (USA)

This person calling himself Steve has misrepresented himself and this situation in its entirety.  I have done nothing wrong.  Once you read the facts as they truly transpired you would agree with me that this Steve is a desperate man looking for quick bucks at the expense of breaking every rule on the book and many laws along the way.  Please read my response to the end before judging for yourself who is telling the truth. 

His real name is Hamid Panah and not Steve.  Here are the facts of this case and they are indisputable, as they are fully documented. 

This all started when Hamid, AKA Steve attended one of the Lloyd Segals Foreclosure Bootcamps in Los Angeles.  I was a guest speaker at this bootcamp and thats how Steve found his way to one of my real estate club meetings at Beverly Hills Country Club.  He approached me later claiming he had felt a connection with me and wished to be a student of mine.  So, he enrolled in my most affordable Mentoring Program and paid a whopping $499 for a slew of benefits.  Check out my website for more information.  My staff and I put in numerous hours and went many extra miles to get him trained.  I personally mentored him far beyond what was required and offered him several investment opportunities in which he never performed.  I have all his emails, in a few of which he stated how grateful he was to know me and that he has learned a great deal from my Mentoring Program. Theyre all available upon request.    

 Later he decided to invest $20K in one of my investment opportunities, a duplex in east LA that I was syndicating. Please note that I have been involved in numerous syndications over the past couple of years.  These syndications involve many investors who are happy and satisfied with my services and are continually coming back for more! A list of references is available upon request.  Anyway, Steve aka Hamid was given all the facts up front like other three investors who were involved in this duplex. He agreed to participate, signed the initial documents, and went to check the property, talked with contractors and my associate Lloyd Segal who was managing the project for a percentage of ownership.

By the way, after Steve contributed his $20K, and prior to my finding the duplex, I had noticed his strange/suspicious behavior at times.  As a professional real estate broker, I do not like to have unhappy investors as my partners.  So, twice I offered him his money back plus 6% interest and he declined to accept my offers both times. He said he trusted me full heartedly and wants to stay in and learn as much as he could and make some money.  

I finally bought the duplex at the trustee sale at 20% below retail value and excellent cashflow, as I had represented to my investors.  This meant all investors gained instant equity!  I informed him and other investors to execute the final documents to secure their interest in the newly formed LLC, which held title to this property.  All other investors responded with enthusiasm, signed the documents and voiced their full support except Steve!

When I inquired about why he had balked he suggested having coffee with me to discuss some issues.  I welcomed his offer, although at the time I was hectically preparing to visit my ailing father abroad, but he never showed up. Instead, a day later, I got a nasty email from him in which he accused me of all kinds of fabricated stories. His email was menacing and indented only for blackmailing and extortion. He basically said I didn't know what I was doing and therefore he was entitled to money damages from me.  My noncompliance meant he would ruin my solid reputation online.  He continued with a string of malicious emails, calls and texts all written with one thing in mind:

"Give me thousands of dollars or else."  And he wasn't talking about getting his $20K investment back; he knew d**n well it was his anytime he wanted it. He was talking about getting his profit in the property right now!  In other words, he was saying he didn't want to invest in this property but he was entitled to his profit!  How insane is that statement?  I finally had to have my attorney put a stop to his insanity. 

Hamids possible excuses for acting so irrationally are:

1. My association with Lloyd Segal whom I used to help me rehab and manage this duplex. 
2. His total ignorance of how real estate syndications work.
3. He got cold feet, wanted his money back and felt justified to bully his way through for some easy money. 

Lets first look at the number #1 above. I used Mr. Segals expertise in rehabbing and managing of this duplex for a share of the profit.  At no point did I allow him to touch the investors money or even be a signer on the bank account.  In fact, he and I had never been partners in any business, before or since, including real estate.  When it comes to my investors money, Im fanatical.  I account for every dime and treat their hard earned dollars just like my own.  So, contrary to what Steve/Hamid had thought or even alleged, Mr. Segal had never been involved with any legal or monetary aspect of this duplex.  I pride myself in meeting my financial obligations and thats the reason my credit score has always been over 800 over 35 years of track record.  Id like to see what Hamids score is...

You can tell a lot about someones financial ethics and fiscal responsibilities by his/her credit score.
Mine is available anytime upon request.

Now lets look at #2 above.  Steve acts smart but he is very ignorant about real estate and he is not a good businessman either. His own emails recounted his inability to succeed in the business world.  He said he didnt know I was getting 25% ownership in the duplex for my services and tried to use that as his leverage with my other investors.  When I refused to bow down to his extortion tactics, he sent a few emails to other investors claiming foul play!  Well, other investors called him crazy, ignorant, etc. and voiced their complete trust and support for me. I can share these investors information with you upon request.

And heres a look at #3 above. Steve needed his money but didnt want to do it ethically or professionally.  He thought he could use his malicious extortion and blackmail tactics to force me to give in but he failed miserably.  I have nothing to hide and I stand firm on matters of principle. 

I have an impeccable record with the California DRE since 1990 as a broker and with the NMLS since its inception. This year alone I have been involved in over 100 units of syndicated and JV real estate and ALL my investors stand behind me and my services. References and testimonials are available upon request.   

Heres the bottom line. I immediately refunded Steve his $20K PLUS three months of interest at 6% for $300.  His money was with me for only nine weeks BUT I STILL PAID HIM HIS FULL THREE MONTHS IN INTEREST AS GOOD FAITH!  Steve quickly cashed his $20K check but still decided to smear my reputation by going viral with his false and wicked accusations.  For this, hell be dealt with legally on a different front but the bottom line is that he got all his money back and then some for simply parking it with me.  His money would have earned him zip at the bank!  All he was hoping for was to win by intimidation which when it failed caused him to write this phony report. 

One final note: I have decided that its not worth the headache and my stellar reputation to utilizeMr. Segals services in any capacity moving forward.  In fact, this property was the first and last time I do business with him.  Unfortunately, I think his past actions could have caused this problem to get out of hand and one which I plan to never repeat again. 

My full bio and background is available on my website, www.samsREclub.com.   There you can find my real estate license number so you could perform your own due diligence on me and my companies.  Since 1990 when I became a real estate broker, Ive been involved in over two thousand real estate transactions with complete integrity.  I can provide dozens (if not more) references regarding my dealings which were all done with the highest level of professionalism.  Please feel free to contact me anytime with any questions or concerns you may have with me, my company or anyone else I am or have been affiliated with over the years.  My goal is to clear up any misunderstanding you may have about me or my services and to help you gain confidence in my ability to get you closer to your goal of financial freedom in real estate.   

Sam Sadat

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