Desert Management Group President: Mark Thorne Also lost $18,000. No properties were offered for serveral weeks. Called them for a full refund and was told that it would take 30-45 days to process. Continued to call and e-mail. No money back. Internet

Crashing the plane he was piloting on "December 9th" is terrible and we truly wish him a full and speedy recovery.  We were not notified by anyone of this tragic event until Dec. 28th.  Please attempt to understand those of us who were less fortunate than you were in receiving the services and attention as initially promised.  We simply wish our hard earned funds returned to us within a reasonable time frame and not have to resort to chasing after it.  It has been over 9 months now since we requested for a return of initial funds and a verbal assurance from Mr. Thorn that a refund was forthcoming.  Return phone calls and responses to my e-mails from a DMG account service representative stopped several months before Mr. Thorn's terrible accident.  I had run out of options before I resorted to this medium - and now legal assistance.  I am awaiting a response from DMG's company attorneys.

I wish you good fortune on your Michigan property.

This company is not a rip off. my husband and I are in $15,000 with them also and own a home in michigan because of that investment. If you have done any research or gave the company your email address you would have found out that Mark Thorne is currently in acoma because of a plane crash that happened in November 2009. So obviously he is not going to be returning any calls and they have probably turned off all the phone lines to the business also since he is the heart of the business and can't do anything for it right now. His family is is desperate need of our prayers and the last thing they need is for a lawsuit to come of this because people don't care about anyone other then themselves and can't wait to see whether he is ok or even care.

google mark thorne plane crash... (the company emailed me this information to give us all a heads up right after it happened.) Here is a few links to get you started.

http://www.heraldextra.com/news/local/article_fe4506cd-3d3f-5ffa-8e1e-024ae284de98.html

 http://www.deseretnews.com/article/705350359/Small-plane-crashes-near-Lehi.html

http://www.upi.com/Top_News/US/2009/12/10/Pilot-critically-hurt-in-airplane-crash/UPI-31201260477625/

Isnt it intriguing, that Brenda J chooses to rebut my Consumer Comment, within just four (4) days after it was posted, but never even attempts to address Gs original complaint, posted on November 16, 2009? The nine (9) complaints with the Better Business Bureau, were never responded to at all, so I guess we should all be pleased that any response from Desert Management Group is a sign of something. At least that someone is still working there, since Erik is gone, and now Cameron is leaving, the phones are no longer operable, and one of two web sites have been expunged. Its also intriguing, that the speed of Brenda Js rebuttal exceeds the speed of responses to all of the complaints by others, including me, about the fact that Desert Managements communication with its clients, is and continues to be at the very root of everyones complaints. Is this the only way that investor-clients can communicate with Desert Management Group? I guess we have Brenda J to thank for any response at all, even if it is false, misleading, misguided and blatantly manipulated and misrepresented!

So, Brenda J, what about Gs $18,000.00? Is this just another complainer, like Monte McConnaughy and his $18,000.00? What about Wilhelmina, from Custer, Washington and her $15,000.00 and shmyers21 and their $15,000.00? Were already over $80,000.00, when you add in my $15,000.00! How about Roy Ong in British Columbia, and his $17,000.00 reported to the Utah FBI, along with Monte and my complaints? The list is growing rapidly, and the dollars just in these complaints totals $98,000.00, not including the debt servicing costs (interest on our credit cards)!

And perhaps, Brenda J, you can address the fact that Mark and his wife have been the target of several lawsuits for fraud in the recent past, including a conviction for failing to deliver an automobile title upon the sale of the vehicle, and the fact that he, along with Big Bear Holdings, are co-defendants in a Federal Suit for Securities Fraud with total dollars of $343,500.00! When I read that complaint document, it is even more intriguing, since the modus operandi is nearly identical to all of our complaints must act immediately, inflated appraisals, failure to communicate in a timely manner, and failure to deliver.

You are correct, Brenda J, regarding me accepting the April 20, 2009 purchase agreement, but then you selectively present a completely false representation of all of the facts.

All of us entered into these contractual agreements with Desert Management, with the verbal and written understanding, that we would be building and/or improving our equity position and thus improving our net worth. Our initial investment was defined by Mark Thorn, as a down payment on the first of numerous properties that would be presented within the first 90 days, and then learn to leverage our holdings, to acquire more properties. Once we had attained $50,000.00 in profit, we would then pay a $15.000.00 fee to Desert Management.

Paragraph four (4) of the User Agreement, specifically states, We guarantee that within 90 days of your loan qualification Desert Management Group will provide you with a real estate investment opportunity. If after 90 days Desert Management Group is not able to provide you with an investment opportunity, upon your request, Desert Management Group will issue a full refund. Remember this provision, as well refer back to it again, later.

As stated in the addendum to our agreements, As per your conversation with Mark Thorn, Desert Management Group, LLC is prepared to make all mortgage payments on real estate acquired through/with Desert Management Group. This includes the entire mortgage payment or any negative cash flow as well as any HOA or community fees. This agreement will be in effect until Desert Management Group deems it necessary and completes the sale of the property or properties. Once a successful transaction has taken place and you have realized profits in excess of $50,000.00, [investor/client] agree to pay Desert Management Group, LLC a fee of $15,000.00 for services rendered.

This document goes on to state, If Desert Management Group is not able to place [investor/client] into investment property (s) that increase your NET worth, Desert Management Group will refund the initial $15,000.00 investment.

In September 2007, our Limited Liability Company was formally established in Illinois. The Desert Management Group web sites, one of which mysteriously disappeared after receipt of my October 3, 2009 letter of demand for a full refund, asserted that Desert Management Group was established in 1999, yet official records indicate that the corporate name, Desert Management Group Real Estate, LLC was reserved in the State of Nevada, on December 4, 2007 at 4:00:57 PM, and the Articles of Organization for Desert Management Group Real Estate, LLC, were finally filed with the State of Nevada, on March 14, 2008 at 8:00:00 AM. This means, that although Desert Management Group may have been loosely organized in 1999, it was not an official business entity until March 14, 2008, some six (6) months after our entity was established and formally recognized. Further, the initial cover letter we received, claims Desert Management Group has over 50 years of real estate investing experience, which would be difficult for Mark to claim personally, unless he began investing at age 2, and most of the employees weve dealt with are in their 20s and 30s. Therefore, this claim is questionable at best.

Now for the un-kept promises in the main agreement with Desert Management Group: all of the online claims made by Desert Management Group on its two web sites (one of which has now disappeared strangely), contended that New members to Desert Management Group should have 3-5 properties completed within the first 12 months. Our established members will complete 7-15 properties within a 12 month period, consistently. It hasnt happened yet not even the first property!!! How patient must we be?

It took Desert Management Group from April 12, 2008 until August 13, 2008, and three attempts, just to get the User Agreement correct. Thats right 121 days, and were guaranteed a property within the first 90 days, during which time, we were to be working and training with Mark Thorn and other staff and professionals, wherein WE were required, under the terms of the agreement, to work on assignments given to us, get paperwork, contracts, etc. done in a timely manner, but I guess this timeliness only held true for us. WE were to show up for appointments with Mark or other professionals. This would be a little difficult, since Mark was in Utah, we are in Illinois, and no appointments or training sessions were ever scheduled, even by phone or internet. WE were to complete all assignments as outlined (?) to get our entities established. Since we were already a formal LLC before Desert Management, we fail to understand what other entities needed to be established, since we never received any outlines, or other instructions, which we and our attorneys could have handled expeditiously.

Now lets look at the presented properties. On Friday, November 14, 2008, at 5:06 PM (Illinois Time), some seven (7) months 210 days into our Platinum Membership, we received a standard Real Estate Purchase Contract (REPC), setting the sellers Time of Acceptance as 5:00 PM Mountain Time (Utah) on Tuesday, November 18, 2008. No other documents were included (e.g. MLS listing, property description, dimensions, photos, appraisals, comparables, etc.) NOTHING! We were expected to sign this contract for $142,000.00, without knowing anything about the property except the address, at Desert Dusk, and the name of the seller Big Bear Holdings, which we now find out that Mark Thorn is/was a principal in this entity. If you read the federal legal complaint where Mark and Big Bear Holdings (remember them?) are co-defendants to Securities Fraud, youll see that the modus operandi are generally the same act now or the deal goes away! Since we had nothing to go by, we didnt even know if the price was inflated! We took a chance, and signed the contract, and sent it back by fax, on Monday, November 17, 2008. On Tuesday, November 25, 2008, a week later, we received an email, indicating that Big Bear Holdings (youve got to read the federal complaint to understand their inflated appraisals), had countered the offer at a significantly higher amount. It was suggested, in this electronic communication, that we be moved to a Florida property with information forthcoming. We never heard another word about this Florida property.

On Thursday, December 18, 2008, we were presented with a package of information on a Las Vegas property, the Meridian, about a block off the strip. We knew this area well, and had actually seen the complex, and had a great deal of information about the property. We signed and returned the final and corrected REPC on Sunday, December 28, 2008, at a price of $152,000.00. The same evening, we found a listing for an exactly identical unit, in the same complex, for $89,000.00, more than $60,000.00 below the price we were going to pay. We made a phone call to Desert Management the next day about the extreme price difference, and this was the last we ever heard about that property.

Alright Brenda J, now its your turn.  On Friday, April 17, 2009, now over one (1) year, 365 days since my Credit Card charge of $15,000.00, 12 months of Debt Service costs, and still no property to show for it (remember the 90 day clause in the User Agreement?), we finally received a package, including the REPC, regarding a property in Detroit. The package included pictures, descriptions, and a certified appraisal. Since we were already looking at some other properties on the fringe areas of metro-Detroit, that we could purchase for $30,000.00, and rent immediately, as is, for $600.00 monthly, I was concerned about the $69,000.00 purchase price for an inner-city property.  As had been Desert Managements performance record to date, the REPC had clerical errors, as usual. The corrected REPC, once received, was signed and returned on Monday, April 20, 2009, and we sat and waited, again.

On July 14, 2009, almost 90 days later, after being repeatedly assured that we qualified and were approved for financing, we received a denial from Flagstar Bank, indicating We Do Not Grant Credit To Any Applicant On The Terms And Conditions You Have Requested. From my understanding, what this means, is that they dont grant Fannie Mae, 30-year, fixed rate mortgage loans for investment or rental properties. We knew that, and Desert Management should have known it as well. We are actively investing elsewhere, and through other sources, without Desert Management, and were making money. On July 31, 2009, we received a mortgage note for $48,300.00, showing Desert Management Group as the lender, a 7% interest rate, when the going rates were at or below 5%, and the deal breaker was (Article 6 - Occupancy), wherein, we were required to occupy, establish, and use the Property as Borrowers principal residence within 60 days after execution of this Security Instrument and shall continue to occupy the Property as Borrowers principal residence for at least one year after the date of occupancy. Although an occupancy exception was possible, such was required in writing from the lender (Desert Management Group). Immediately upon receipt of this document, we began attempting to obtain such an exception in writing, and to communicate directly with Mark with additional questions and concerns. Attempts were made by phone and electronic mail on July 30, August 6, August 7, August 13, August 14, August 18, and August 24, 2009. On September 3, Mark finally made contact, but not directly with me. He was rude and insulting, challenging even our attorneys. He indicated he wanted to talk directly to me, and would call at 6:00 PM CDST, on Friday, September 4, 2009. To date, he has not made this call, and now, given his current circumstances and condition, he may never make this call.

On October 3, 2009, after a full month of waiting, and since no part of our agreement had been accomplished on Desert Managements part, I demanded, in writing, the Guaranteed refund of my $15,000.00 initial investment.

You are correct Brenda J, the deal was to obtain investment properties. I dont consider a provision requiring me to reside in the property for one year, an investment. I already own my own residence, and Im not about to relocate to Detroit, when I work in Illinois.

Now lets just see! Brenda J contends that all contractual obligations were met by Desert Management Group, and I decided to change my mind, my initial investment of $15,000.00 was a FEE, my life has changed and I dont like the way things are going in my neck of the woods.

Perhaps Brenda J needs to go back and read the file again, along with the emails, the phone logs, the dates of the financial updates with Heather and the User Agreement as many times as it takes to sink in. Perhaps a remedial reading course might be helpful.

Remember, If after 90 days Desert Management Group is not able to provide you with an investment opportunity, upon your request, Desert Management Group will issue a full refund.

It took four (4) months 121 days just to get the User Agreement correct, seven (7) months 210 days for the paper work for the first property (Desert Dusk), received on November 14, 2008, signed and returned on November 17, 2008 3 days withdrawn by Desert Management Group on November 25, 2008 Florida property never submitted to us eight (8) months 240 days for the paper work for the second property (Meridian), received on December 18, 2008, signed and returned after corrections on December 28, 2008 10 days never culminated by Desert Management Group twelve (12) months 365 days for the paperwork for the third property (Detroit), received on April 17, 2009, signed and returned on April 20, 2009 3 days Flagstar mortgage denial received on July 14, 2009 fifteen (15) months 455 days Desert Management Mortgage note received July 31, 2009 fifteen and  one half (15 ) months 470 days. I dont consider that following through on every part of the agreement, and  I dont know of anyone else who would, unless theyre living in a turnip patch! To any sensible person,  that kind of extensive time, to meet the contractual obligations, is a dismal failure by Desert Management Group, if not an outright fraud. On July 30, 2009, I asked specifically for only three things a phone call directly from Mark, which I had to continually request seven (7) more times over the next month, the appropriate Occupancy Exception documentation, and an explanation of an interest rate that was at least 2% above the current  rate at that time. It took a month to get the call from Mark even though it was later than the prescribed time, and Im still waiting for the call-back and one-on-one conversation demanded by Mark, as well as the Occupancy Exception, and the interest rate explanation. Had Mark and Desert Management met its contractual obligations, and in a timely manner, these postings would not be necessary. Since I didnt change my mind, my life hasnt changed, except for the failure of Desert Management Groups to meet its contractual obligations, I am quite pleased with the way things are going in my neck of the woods, and all of the above clearly demonstrates that it was, without question, the failure of Desert Management Group, YES, I do demand my guaranteed refund, and until I receive it, I do consider it a swindle, since Im the one who has met EVERY provision of the agreement, in a timely manner, not Desert Management Group, as you have tried to misrepresent.

Now lets deal with the FEE. Since the fee was only due and payable, for services rendered, if and when we realized profits in excess of $50,000.00. Even with the $20,700.00 equity position on the Detroit property, if culminated, that equity/profit still falls $29,300.00 short of the contractual obligation, and is thus not due or payable as a FEE. I followed the agreement to the letter, and Desert Management Group has taken over 1 years to meet the obligation it had in the first 90 days, even if the Detroit property deal is ever culminated. I made my formal written request/demand for a full refund on October 3, 2009, have received no communication or refund from Desert Management Group or communication from Mark Thorn, nor the Occupancy Exception, since that time. Ive had no indication that these funds will ever be returned, and YES, Brenda J, I consider that a fraud and swindle.

Now that weve dealt with MY complaints, perhaps you should focus your efforts on responding to G and Wilhelmina, and Roy Ong, and shmyers21, and all of the rest of the victims of this scam and scam artist, because you certainly cant manipulate my facts, since Ive now shared them with everyone who reads these postings. Perhaps you could just pick up the phone and place a call to me, since we cant call you with your numbers changed or disconnected. You have my numbers in the file, and if you devoted as much time to providing the Occupancy Exception document I require, as you have manipulating the facts in all of the other complaints, postings and rebuttals, perhaps we could get the Detroit property resolved, but then well need to deal with the other $29,300.00 shortfall, before Desert Management Group is entitled to a FEE for services rendered.

Sue

After reading Sue's report, I decided to go and grab her file from our records. She was actually offered a property and SIGNED A PURCHASE CONTRACT (on a specific property)! Wasn't that the deal? To help find you investment homes? Well according to my records we did just that! On the 20th of April 2009, you signed the purchase agreement on an investment property, and then you decided to change your mind... how is that Desert Management being a swindler? The FEE you sent was applied to the down payment on the house YOU SIGNED FOR. For whatever reasoning you changed your mind, that still does not change the fact that it was not the fault of Desert Management Group. We followed thru on every part of the agreement signed by you in the beginning of the relationship. Because your life changed or you dont like the way things are going in your neck of the woods doesnt mean you have been wronged. We wish you the best of luck with your investing.

You are not the only victim of this swindler. Please read the other reports about Desert Management Group and Mark Thorn. My own story goes back over 18 months ago, and is virtually the same as everyone else. At least he only got me for $15,000.

Check Monte McConnaughy's original report. If you can find his Facebook page, we can all connect and pursue action. Reports have been filed with the Utah Attorney General and the FBI. A federal suit has also been filed in Utah for securities fraud. We're trying to connect with those victims as well. The numbers are rapidly approaching half a million dollars, so it will be key for all of us to work together.

Good luck and hope to connect with you soon. You can find our site at (((REDACTED))) I don't know if Ripoff Report will let it go through, but check Facebook for Monte's page.

Sue