George Slowinski & Rebuilding America, LLC, between September 2013 and June 2014, allegedly raised over $20 million from more than 600 investors as part of an offering fraud scheme involving real estate in Chicago, according to an SEC Complaint filed in the U.S. District Court Northern District of Illinois Eastern Division and under review by investor rights attorney Alan Rosca.
By 2017, however, Rebuilding America had purportedly collapsed, according to the aforementioned SEC Complaint, its real estate projects had reportedly failed, the State of Illinois revoked Rebuilding America’s corporate status, and investors allegedly received less than half the promised interest payments and none of their principal investment.
In sum, said investors lost more than $17 million, the Complaint notes. Said securities involved real estate investments in Chicago, and Slowinski and his businesses allegedly primarily used investor funds to purchase, renovate, and develop Chicago residential properties, the Complaint reports.
George Slowinski, age 67, is currently a resident of Texas, but during the period at issue in the Complaint, Slowinski reportedly resided in Homer Glen, Illinois, the SEC notes.
Investor rights attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm, is investigating activity related to George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate. Goldman Scarlato & Penny PC lawyers have considerable experience representing investors from Singapore and East Asia in cases arising out of fraudulent real estate investment programs in the United States, and we have represented investors in 62 countries including Singapore, Hong Kong, and Taiwan, among others. Investors who believe they may have lost money in activity related to George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
Slowinski and Rebuilding America allegedly lured investors by promising to pay out 38% returns in only two years, the Complaint notes. Slowinski, in order to solicit investments from the aforementioned investors, allegedly presented himself as a real estate expert with a successful track record of building and refurbishing residential properties, the Complaint reports.
Slowinski and Rebuilding America also allegedly made statements to investors that the firm would generate such generous returns via the profits of a successful real estate development program, the SEC Complaint reports.
Slowinski and Rebuilding America, specifically, allegedly informed investors that Rebuilding America would purportedly pool investor proceeds to acquire, refurbish, and sell for profit residential real estate primarily located on the South Side of Chicago, the SEC notes.
Slowinski, however, allegedly hid the the fact from investors that between 34% and 42% of every invested dollar would be diverted, upfront, to Slowinski and his partners in the form of undisclosed fees and commissions, the SEC Complaint reports.
Said alleged hidden fees purportedly resulted in Rebuilding America having significantly fewer funds to devote to its real estate projects and would need to achieve unrealistic and outsized margins in an unreasonably short timeframe in order to pay investors the promised returns, the Complaint notes.
Slowinski, the SEC reports, allegedly came to realize that Rebuilding America’s business model was untenable, and that Rebuilding America would allegedly not be able to generate the margins or complete the volume of development projects needed to repay investors.
Despite this realization, however, Slowinski allegedly continued to solicit investors, accept the hidden fees, and use investor moneys to fund his real estate and construction businesses, the Complaint reports.
Slowinski allegedly further compounded his fraud by diverting more than $2.8 million of investor funds to improperly pay for his companies’ payroll, overhead, and cost overruns on other projects, the Complaint states. Said funds had allegedly been earmarked for construction on specific Rebuilding America projects, the SEC notes.
The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at email@example.com, or through the contact form on this webpage.