News Summary

A Boca Raton man, 27, has been arrested for a real estate fraud scheme that defrauded 16 investors of over $410,000. Felipe Souza promised high returns on non-existent deals but misused the funds for personal expenses. He faces multiple charges, including selling unregistered securities. The investigation revealed connections to an associated individual who also lacked proper licenses, highlighting the prevalence of real estate scams among young entrepreneurs.

Boca Raton Man Arrested for $410,000 Real Estate Fraud Scheme

Boca Raton, FL — Felipe Souza, a 27-year-old resident of Boca Raton, has been arrested on suspicion of orchestrating a large-scale real estate fraud scheme that defrauded investors out of over $410,000. The arrest follows an investigation by state and federal regulators into Souza’s business activities and alleged deceptive practices.

Details of the Fraudulent Scheme

Souza operated under the business name FAS Creative Concepts LLC. Starting from November 2022, the Florida Office of Financial Regulation (OFR) began an inquiry based on complaints received from investors to the U.S. Securities and Exchange Commission (SEC). These complaints prompted further investigations into Souza’s business operations and the legitimacy of his investment promises.

Souza allegedly engaged in a classic “bait and switch” method, promising investors high returns on real estate deals that did not exist. He portrayed himself as a real estate investment expert, claiming he was seeking funds to secure large collateralized loans for purchasing and flipping properties. He advertised potential returns of between 200% and 338% with a 100% money-back guarantee, enticing 16 investors to part with their money.

Financial Transactions and Use of Investor Funds

Between February 2021 and January 2022, Souza collected a total of $413,800 from investors. While he returned approximately $62,600 to some investors, a substantial amount remained unrecovered, with an outstanding balance of about $351,200. Bank records indicated that the funds had not been used for legitimate real estate endeavors, raising suspicions about their disposal.

Investigators discovered that nearly half of the investor funds were transferred to Michael Campbell, who falsely portrayed himself as a successful businessman. Campbell owned multiple companies, including Campbell Elite Consulting LLC and 700 Club Worldwide. The records showed that Campbell helped facilitate Souza’s scheme by misleading investors about his financial background and credentials.

Legal Violations and Arrest Details

Neither Souza nor Campbell held the necessary licenses to sell securities or real estate in Florida, which is a violation of state laws. Souza was charged with sixteen counts of selling unregistered nonexempt securities, as well as a count of defrauding investors to obtain property valued at over $50,000.

Authorities also found that investor funds were diverted to personal expenses. Campbell reportedly spent his share on shopping and entertainment, while Souza used funds for utilities and travel, rather than for genuine business purposes.

Law Enforcement Actions

The Palm Beach County Sheriff’s Office took Souza into custody. He is currently facing multiple criminal charges related to securities fraud and theft. The charges reflect the seriousness of the alleged scheme and the significant financial harm caused to investors.

Background and Context

This case highlights the risks of unregulated investment schemes, especially those promising unusually high returns with little transparency. Regulatory agencies continue to monitor such activities to protect consumers and maintain market integrity. Both Souza and Campbell lacked proper licenses, which is a common issue in such fraudulent schemes.

Investors affected by these schemes are advised to verify the credentials of anyone offering investment opportunities and to consult with licensed financial professionals before making financial commitments. Authorities remind the public that legitimate investments are subject to regulatory oversight and transparent disclosure of how funds are used.

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Boca Raton Man Arrested for Major Real Estate Fraud Scheme