Heaven Investments Holding Corp PONZI Scheme An unbelievable account of manipulating the system to rip people off Sacramento California

I worked for this 'company' for approximately six weeks, and within the first week figured out most of what was gonig on. The rest of my 'employment' there I was searching for a new job. As a Notary Public, I was asked several times to falsify documents, leave my notary journal and stamp, etc., etc. Each time I refused, and each time I was offered more money from the staff to leave my notary supplies behind. I never did, nor would I ever. I was not surprised when I was called to testify at several hearings and meetings with FBI and investigators. Now I am just wanted to know if any of the fraud victims have been compensated or had any of their monies returned, and when the sentencing for these idiots is going to happen. Shameful what these people did under the guise of a company to hard-working and mostly retired people!

Sincerely,

Lori A. Dean
Certainly not affiliated, and no problem leaving my name.

I N THE UNITED STATES  D I S T R I CT COURT 
FOR THE EASTERN  D I S T R I CT OF  C A L I F O R N IA 
UNITED STATES OF AMERICA 
P l a i n t i f f , 
v . 
AKBAR BHAMANI, 
Z A IN BHAMANI, 
KEN SARNA, 
ALY BHAMANI, 
FEROZA BHAMANI, 
L A I LA BHAMANI, 
JOHN PIERRE QUINTANA, 
a k a J.P.  Q u i n t a n a ,  a nd 
SHAUN BHAMANI, 
D e f e n d a n t s 
CASE NO 
V I O L A T I O N S: 18 U.S.C.  1 3 41 -
M a i l  F r a u d  ( 10  c o u n t s ) ; 18 
U.S.C.  1 3 43 -  W i r e  F r a u d (5 
c o u n t s ) ; 18 U.S.C.  
1 9 5 6 ( a ) ( 1 ) ( A ) ( i ) a n d  ( i i ) -
M o n ey  L a u n d e r i n g (7  c o u n t s ) ; 18 
U.S.C.  1 3 41 -  M a i l  F r a u d (8 
c o u n t s )

I am rebutting not the original report/letter talking about their Ponzi schemes. I actually will admit to being an ex-employee (thankfully for only a brief 4 months), and my name. I was hired back in 2005, before the "alleged" fraud really got rolling. I was hired to organize the marketing campaigns. Why? Because I am smart, blue-eyed, blonde-- the "anti-Pakistani."  Then I was replaced -- without warning, Ken Sarna just showed up one day for work -- by a tall, blonde blue eyed man. An even better "front man" to meet with potential investors than moi.

I am rebutting all of Akbar's claim to innocence, and how "honest" he and his family are. I will say that while I was there, there was a brother with an actual real etate license. But apparently he hightailed it out of there when things got even too shady for him to handle. Honest? Please. I wasn't told I was being replaced, I wasn't told I was being "laid off" -- he left that chore to the NEW blonde, and hid in his office with the door closed, and wouldn't answer it. They also forced the then office manager to get a notary license, I now realize to have an in-house notary to authorize some of the shadier legal paperwork. I think she left shortly after I did, and like me, had no dealings with the fraud and money laundering.

They were indicted on multiple counts of fraud and money laundering by the Sacramento Grand Jury in Aug. 2010. I am trying to find out when they go to trial since I want to be in the back of the court to share my wild applause when they are convicted.

Yeah, I know this way after the first post.... but better late than never, I always say. I only did a search on Heaven (Hell) Investments since I am updating my resume.

Yours in Gratitude (that I left when I did, and they were indicted),

Stacy S

Akbar Bhamani
CEO, Heaven Investments
(916) 922-2085
akbar@hihcorp.com
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To our colleagues, clients, family and friends,

I want to thank you for informing us of the misleading and defamatory posting that has appeared on the Internet. Our reputation is very important to us and we felt it necessary to respond to this immediately.

First, we would like to bring to your attention the anonymous nature of the posting. If this was a legitimate client or individual who had bad experiences with our company, they would have certainly felt comfortable with using their name.

We believe that this misleading and defamatory posting is the act of a disgruntled former employee who left the company after their ability to perform was questioned and their unreasonable request for a considerable raise and bonuses were denied. It appears that the interest of this individual is to discredit and hurt our legitimate business in order to secure our clientele for them self.

It is not our intention to respond to slander with slander and so we will refrain from naming the individual. Further, we wish only the best for them and hope they develop themselves personally and grow out of this sort of behavior.

At the same time we feel compelled to address the market hurdles we've faced in the recent past and acknowledging that this situation is common to the whole real estate industry. Over the last several months we have been diligently working to adjust to these market changes so that we can provide quality real estate products and a higher level of client service.

The author claims an elaborate Ponzi scheme is at play. Again, we are saddened to have to address this ridiculous statement, but we are all too aware of what the Internet and bad press can do to ones reputation. You have only to look at our track record to dispute this and we invite anyone to visit us and personally review our work. Over the past eight (8) years we have acquired, renovated, and sold approximately 200 homes, turning depressed forgotten properties or infill lots into cornerstones of new neighborhoods. In fact, our principals have been involved in the real estate business for over thirty years.

An ever tightening lending market coupled with a dramatic correction of property values has made it more prudent to stretch out on some developments, as they don't warrant immediate completion with the current real estate inventory built-up and sluggish sales. To expand and strengthen our business we have diversified into hospitality and other forms of secure commercial property.

We recently purchased a 296 room hotel in Oakland, California through a joint venture. This project has been one of our most rewarding investments to date. We signed an agreement for 15.1 million to purchase the closed hotel located on a 5.4 acre lot in one of the most visible and fastest growing areas in the East Bay hospitality and airport submarket. The author of the above post contends that we were trying to inflate the price of the hotel beyond what the property merited. An independent appraisal by Integra Realty Resources, an MAI certified appraiser and one of the Bay Areas most respected groups, valued the hotel as is (in its current state) at $26.2 million and $31.1 million at the time of stabilization. This value is also considering a bare minimum renovation. Our plans include a total exterior remodel ( http://www.hihcorp.com/site/sharing/oaklandhotel/Coliseum-Slide-Show.ppt ) and a complete upgrade of all the rooms from 3 to 4 Stars. A five year projection has the project valued at $36.5 million. This is well in line with industry standards and is supported by the areas growth and development. The City of Oakland is extremely excited about our project as it contributes to the greater areas multi-billion dollar revitalization plans.

The author mentioned numerous LLC's were created for our developments. Yes, there certainly are. Our business model like most developments includes an initial LLC or Corporation for acquisition/entitlement, followed by another LLC to fund construction. It is a common method of acquisition, financing, development, and holding, and not, as the author of the above referenced post implies, a crafty devise to steal. Many professional and development companies support the legal strategy of using different levels of LLC's to acquire and develop real estate.

The authors posting also mentioned our investment property in Lake Tahoe, California, referring to it as a personal vacation home. This is a property that we purchased and redeveloped into a beautiful vacation rental on Pioneer Trail near Lake Tahoe. While we certainly contemplate using it for company vacations, client perks, and personal family use, that is not the primary goal or plan for the property. The loan to purchase and develop this property is under a corporate officer's personal name and is from a single investor who has funded many properties for Heaven Investments. The return on this project will be substantial over time and again substantiates a good business and investment strategy by our company.

We understand the effect of bad press and the reaction of potential clients to postings such as the one referenced to above. It is natural to place merit in these statements and feel partial to the author's claim. However, please note the author's anonymity and unwillingness to disclose their connection to our business and their motive for providing such misleading and defamatory information. If this individual was as concerned about consumer rights as they claim to be, perhaps they would have taken additional and more helpful steps to communicate such matters directly with us. We believe that the author has not done so because they know that their allegations are baseless. Nevertheless, we hope that our clients and associates will have faith in our good business practices and communicate directly with us with regard to any concerns they may have.

We are honest hard working individuals and care deeply for all of our clients. We believe that every project we initiate should succeed. We also believe that in the sphere of professionalism there is no place for speculation. We are ever mindful of our duty to our many clients and act wisely in investing their capital in order to maintain their confidence in us. Lastly, we believe that compensation should be linked to results.

Heaven Investments principals' paramount intent is in developing an honest and nationally renowned company. We invite anyone who desires to discuss the subject matter of the posting to contact us directly. The fact of the matter is that in our developments no one has ever lost their capital or returns. There are situations in this market that have been creating funding delays (even for major developers), but we are otherwise now in a favorable position to continue developing quality real estate projects. Through our efforts we have been providing and will provide quality real estate properties to clients who are looking for viable real estate investments and development.

We appreciate your time in reviewing our response and we hope you will inquire further and come to a better understanding of who we are. The staff and families here at Heaven Investments thank all of you for your continued understanding and support.

Sincerely,

Akbar Bhamani, CEO

Again, I am not and have never been an employee or owner of Heaven Investments, but
as a lender over the past five years, I do have considerable knowledge in certain areas.
Please do not print the above as they will know who wrote these comments.

The hotel by the Oakland Airport may actually have value beyond what they paid for it.
They apparently put money into the project and did work contacting hotels and they
should wind up as a Ramada if they can get the funds to rehab the property.

I have read what appears to be a professional and rather complete and realistic appraisal that was done on the property. The property is not worth anywhere near thirty-seven million dollars according to the appraisal, but worth somewhere in the
twenties.

The hotel had been updated by the former owners. According to the appraisal it needs a few hundreds of thousands of dollars, primarily cosmetic and could be completed in
a couple of months.

The problem that Heaven and the Bhamanis are going to have is getting the money to
do the work, keeping the mortgage current, and dealing with all of their other problems.
There is also their history of being inept in things completed in a timely manner and one
would have considerable doubt as to their ability to run a hotel. They claim they will use management company with experience in this area. They still need to do some
management which is obviously not their strong point.

I am not and have not been an employee or principal in Heaven Investments, but I do
have considerable knowledge regarding their business as a lender over the past five years. (Please do not use this portion as it will clearly identify me to them.)
The house in Tahoe is owned by Zain Bhamani and is his own investment. He purchased
the property with an existing house which had to be torn down. His purpose was to build a large house and then sell it for a large profit.

Like just about everything else the Bhamanis do the house has never been completed.
He received draws from his lender by claiming the work had been completed, but this is not the case. There are permits for building the house. A notice of default has been filed by the lender.

The lender and other lenders have filed notices of default against various properties owned by Heaven Investments and by Zain Bhamani. The Fremont property's notice
of default was filed in early March.

The Bhamanis generally have gotten permits on house they have rehabilitated or built
from scratch. There have been some instances where this was not done and there is at
least one instance where they were caught and it took several years before they were
able to complete the project.