Urgent: Nationwide Investors Claim $550K Loss in Chicago Housing Scam

URGENT UPDATE: Nationwide investors are sounding the alarm over a shocking housing scheme involving vacant homes in Chicago. Numerous individuals claim they have lost substantial sums of money—some up to $550,000—to Steeve Raymond, CEO of Selective Real Estate Investments, who allegedly solicited funds for property renovations that never materialized.

Reports confirm that at least eight investors from various states have filed lawsuits, asserting they were misled into funding the rehabilitation of boarded-up properties on the city’s South Side. Attorney Ana McNamara, representing the investors, states that victims were promised returns of 30% to 33% on their investments within six months, yet many have waited over a year without seeing any repayment.

“It hurts the neighborhood because people who live here think that something nice is going to happen,” McNamara stated, highlighting the emotional toll on both investors and local residents. Ald. William Hall echoed these sentiments, describing the vacant homes as an “eyesore” that distress local communities. “No neighbor should have to wake up to abandonment,” he added.

Investors have expressed their anguish at losing life savings. Arash Motedaeiny from Northern Virginia shared, “I need that money very badly… it’s putting me in debt.” Belinda Rowe of South Carolina emphasized the gravity of her situation: “That’s a lot of money to lose in my book because I don’t have millions to retire on.”

The lawsuits allege that Raymond pitched his business during a recorded Zoom call in January 2024, claiming he was a licensed general contractor capable of managing property renovations effectively. However, many investors suspect that the interest payments they received were funded by the contributions of newer investors, raising suspicions of a Ponzi scheme.

“This is a huge loss,” lamented Ammon Jensen from Washington, expressing anxiety over the situation. Investors report that, along with principal and interest, they are now collectively owed between $75,000 and $550,000.

As the situation develops, Raymond’s attorney has denied any wrongdoing, asserting that the claims are merely foreclosure actions and labeling the allegations of fraud as “wholly without merit.” “Mr. Raymond is not willing to comment on pending litigation,” the attorney stated, while emphasizing that some properties are nearing completion and will soon be listed for sale.

Local residents are also feeling the impact of this alleged scheme. Neighbor Kelle Martin reported issues with squatters taking over the vacant homes, further contributing to the distress in the community.

WHAT’S NEXT: Investors and residents alike are left waiting for answers. With the ongoing lawsuits and the potential for financial recovery still uncertain, many are urging others to thoroughly research investment opportunities before committing funds.

As this story continues to unfold, those affected by the alleged scheme are hopeful for justice and repayment. The urgency of this situation cannot be overstated, as the repercussions are being felt far beyond Chicago, reaching investors nationwide.

For more updates on this developing story, stay tuned.