437 Group Holdings Kenneth Brown and Robbieal AlexisTerry Fraudulent contractor and manager in Detroit Detroit Michigan

We are investors in Detroit since Dec 2012. In Feb 2013, we have hired Kenneth Brown to do a rehab job for our properties.

He finished the first two houses ok. So we wired funds. His attitude was always positive and told us every time that he would do what we wanted him to do, as long as we were happy.

So in the mid of April, we asked him how many he could handle at one time. He said he could handle 8-10. We let him try 3 houses first. This time, he used company 437 Group Holdings for the new contract.  He needed 50% advance payment. Because we did 3 houses at one time, he said he could buy bulk and gave us big discount, so we only need to pay $10,000 to rehab each property. We wired $15,000 to his company. He started to rehab 3 houses in the end of April. My husband travelled to Detroit to inspect his work in mid of May. He arranged a few workers in each house on the day when he visited. The work completion was very minimal. After we left for about a week, he emailed us and said the job was 50% completed. We thought Ken probably needed money to pay his workers in order to continue. We wired 25% of the balance ($7,500). Since then, we didn’t hear Kenneth or his wife Robbieal much. When we called, they used all kinds of excuse for the delay. In early June, we sent someone to inspect the properties. We realized he has lied.

In about one month, all three houses have barely started, maybe 10-15% of work done. They just did a performance for us when we visited Detroit. To make it worse, they didn’t remove the debris in the front yard of the properties, we received Blight violation for over $1100. In another property, Kenneth ordered a bin, and didn’t pay the bin company, so they probably dumped the garbage back to the back yard. It has caused double work and double payment for this property. 

Later on we found out that our case is not the first or only case Kenneth has done. He did similar thing to another investor in our city too. We are all off-shore investors. Filing with local legal and administrative departments have been done.

Never pay contractors any deposit. Only find reputable companies to work with. Nowadays, we always go to Angies' list or read other reviews whenever we use any contractors or managers.