Urgent: Investors Claim Major Losses in Chicago Housing Scheme

URGENT UPDATE: A nationwide group of investors is speaking out, claiming they have lost significant amounts of money in an alleged housing scheme involving vacant homes in Chicago. These properties, many boarded up and dilapidated, have been marketed as lucrative investments, but numerous investors are now filing lawsuits against Steeve Raymond, CEO of Selective Real Estate Investments, for failing to deliver on promised returns.

The ABC7 I-Team has confirmed that at least eight investors from across the country report losing anywhere from $75,000 to $550,000 after funding renovations for four homes on the city’s South Side. “I need that money very badly,” said Arash Motedaeiny from northern Virginia. “It’s devastating my life.”

The accusations allege that Raymond solicited these investors to loan money for property rehabilitation, promising returns of 30% to 33% in interest, yet many have been waiting over a year for repayment. “Oh, it’s a great loss to me,” lamented Belinda Rowe from South Carolina. “I don’t have millions of dollars to retire on.”

These complaints have caught the attention of local officials like Ald. William Hall, who expressed concern over the impact on communities. “It hurts the neighborhood,” Hall stated, highlighting the distress caused by the neglected properties in the East Woodlawn neighborhood.

Attorneys representing the investors, including Ana McNamara from McNamara Law Office, Ltd., claim that some payments may have been sourced from other investors, hinting at a potential Ponzi scheme. “When you’re ghosted like this… it’s unsettling,” said Kathy Bradshaw of Ohio.

In a recorded January 2024 Zoom call, Raymond claimed, “I am a licensed general contractor,” touting his success in the Chicago market. Yet, many investors are questioning those assertions as they face mounting financial pressure. “This is a huge loss,” said Ammon Jensen from Washington, describing the anxiety stemming from the situation.

Raymond’s attorney has denied any wrongdoing, stating, “There is no Ponzi scheme or other fraudulent conduct whatsoever.” However, the attorney acknowledged that some properties are nearing completion and will soon be listed for sale, with efforts underway to repay investors.

As this situation unfolds, community members are expressing frustration. “We’ve had squatters in the house,” said neighbor Kelle Martin, voicing concerns about the safety and aesthetics of these vacant homes.

The I-Team’s investigation urges potential investors to conduct thorough research before committing funds, especially if returns sound too good to be true. As the story develops, the emotional toll on these investors remains palpable, with many feeling the weight of their financial losses.

Stay tuned for updates as this urgent situation continues to unfold.