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 — A local man has been arrested on charges related to a significant real estate investment scam that defrauded investors out of more than $410,000. Felipe Souza, 27, was taken into custody following an investigation that uncovered a extensive “bait and switch” scheme preying on unsuspecting investors through false promises of high returns.
Details of the Fraudulent Scheme
Souza is accused of duping 16 investors by promoting fictitious real estate deals with the promise of extraordinary returns, ranging from 200% to 338%. He also claimed that investors would receive a 100% money-back guarantee on their investments. Sales pitches conveyed that the funds were to be used for acquiring and flipping properties, with Souza presenting himself as a knowledgeable real estate investment expert seeking funding to secure large collateralized loans.
From February 2021 to January 2022, Souza allegedly collected a total of $413,800 from his investors. Despite the large sum collected, only $62,600 was returned to some investors, leaving an outstanding balance of approximately $351,200 that remained unpaid. As complaints from investors grew regarding the lack of promised returns, Souza provided various excuses about the status of the funds, raising suspicion about the legitimacy of his operations.
Investigation and Evidence
The Florida Office of Financial Regulation (OFR) initiated an investigation into Souza’s business, FAS Creative Concepts LLC, in November 2022 after complaints were filed. The U.S. Securities and Exchange Commission (SEC) also received reports that prompted further scrutiny of the business practices.
Bank records obtained during the investigation revealed that the funds collected from investors were not used for any legitimate real estate transactions or business purposes. Instead, investigators found that nearly half of the money was transferred to Michael Campbell, a man who falsely portrayed himself as a successful businessman.
Alleged Misappropriation and Personal Spending
Michael Campbell owns companies including Campbell Elite Consulting LLC and 700 Club Worldwide. He reportedly assisted Souza by helping to mislead investors, despite neither man holding any licenses to sell securities or engage in real estate transactions in Florida. Campbell allegedly spent his share of the funds on personal expenses such as shopping and entertainment, while Souza used the remaining funds for utilities and travel.
Legal Charges and Arrest
Following the investigation, Souza was arrested by the Palm Beach County Sheriff’s Office. He faces multiple charges including sixteen counts of selling unregistered nonexempt securities and one count of defrauding to obtain property valued over $50,000. These charges reflect the seriousness of the alleged scheme and the impact on the victims involved.
Ongoing Legal Proceedings
Souza is currently in custody and will face court proceedings related to the allegations. The case highlights ongoing concerns about unlicensed real estate and securities activities, emphasizing the importance of verifying credentials before making investments.
Background Information
Authorities have stressed that neither Souza nor Campbell held the necessary licenses to legally sell securities or real estate in Florida. The investigation continues, and legal processes are expected to establish the full scope of the scheme and determine restitution for the victims.
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Additional Resources
- CBS12 News
- WPBF News
- The Real Deal
- Miami Herald
- Boca Raton Tribune
- Wikipedia: Fraud
- Google Search: Real Estate Fraud
- Google Scholar: Real Estate Investment Scams
- Encyclopedia Britannica: Fraud
- Google News: Real Estate Fraud
Author: STAFF HERE RALEIGH WRITER
RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
