Urgent: Investors Lose Thousands in Chicago Housing Scheme

BREAKING: A nationwide group of investors has reported staggering losses in an alleged housing scheme centered on vacant homes in Chicago. Victims claim they were deceived into investing large sums of money for property rehabilitations that never materialized, leaving them financially devastated.

The ABC7 I-Team is currently investigating the situation, which involves at least eight investors from across the country who collectively lost between $75,000 to $550,000 each. The individuals had invested in properties managed by Steeve Raymond, CEO of Selective Real Estate Investments, who is now facing multiple lawsuits.

The properties in question are located in the East Woodlawn neighborhood, notorious for its boarded-up, dilapidated homes. Local officials, including Ald. William Hall, have expressed outrage over the situation, emphasizing the detrimental impact on community aesthetics and safety. “It is distressing for neighbors,” Hall stated. “No one should have to wake up to an abandoned property they could have bought.”

Investors, including Arash Motedaeiny from northern Virginia and Belinda Rowe from South Carolina, are reeling from the fallout. Motedaeiny described the financial strain on his family, saying, “I need that money very badly… it’s putting me in debt.” Rowe added, “Oh, it’s a great loss to me. That’s a lot of money to lose in my book.”

The lawsuits allege that Raymond solicited funds for property renovations, promising returns of 30% to 33% within six months, but many investors claim they have not received any payments since the initial investments more than a year ago. “This is a huge loss,” said Derek Robinson of North Carolina, who invested his retirement savings. “It was a huge setback.”

Raymond has denied any wrongdoing through his attorney, who insists that the legal actions are an attempt to pressure him. “There is no Ponzi scheme or other fraudulent conduct whatsoever,” the attorney stated, arguing that the cases are merely foreclosure actions and lack merit.

The impact of this alleged scheme extends beyond financial losses, as the empty homes have attracted squatters and contributed to neighborhood decay. Local resident Kelle Martin expressed frustration, saying, “We’ve had squatters in the house,” highlighting the urgent need for resolution.

As the situation continues to unfold, investors are left in limbo, anxiously awaiting any sign of their money. The community’s response has been swift, with calls for accountability and transparency in property management practices.

As of now, Raymond has not filed official legal responses to the lawsuits. He has, however, mentioned in January 2024 YouTube videos that several properties are nearing completion and will be listed for sale soon, indicating a potential path to repay investors.

This developing story serves as a stark reminder for potential investors to conduct thorough research before committing funds. As one investor poignantly noted, “If the return sounds too good to be true, it probably is.”

Stay tuned for further updates as the ABC7 I-Team continues its investigation into this alarming situation.