LOS ANGELES (CN) – Marshall Reddick Realty bilked people around the country in a racketeering scheme called “Armchair Investing” where the realtor broke promises to build homes and absconded with the money, leaving the investors to pay off the loans, according to a host of plaintiffs in superior court.
Reddick and his many alleged co-conspirators are accused of pushing scam through a booklet called “Armchair Investing.” In it, they claim to have “formulated a concept whereby home builders and developers build us new homes for the rental market. … (W)hen you successfully purchase a property through our Network, the builder pays the agent a commission. They, in turn pay us a referral fee.”
But the plaintiffs claim, among other things, that many of the promised homes were never built; that Reddick failed to do due diligence; that it lied when it promised to “buy back” homes in which investors were not satisfied; that it refused to fix problems in homes that were built; that its co-defendants went broke and absconded with money, leaving investors responsible for the loans; that Reddick’s associates and co-defendants committed a slew of other unethical actions, including buying employees’ silence; and that Reddick concealed these and other problems in its operations in 40 states.
Represented by Andrew Wyatt of Woodland Hills, plaintiffs demand punitive damages for RICO violations, fraud, unfair advertising, negligent misrepresentation, breach of contract, violations of state and federal laws, and other charges.
Here are the defendants: Marshall Reddick Realty, Inc.; Marshall Reddick Seminars, Inc.; Marshall Reddick; Christopher Minter; Mary Ellen Brennan dba Re/Max Realty Select; S B of Naples, Inc.; Wilfred Arthur Morin; William Dacey III; Johnathan Shirey; Atlantic Contractors & Development Corp.; Jack Tralongo, Sr.; Jack Tralongo, Jr.; Timothy M. Murphy; Market Street Mortgage Corp.; National City Mortgage Co.; Hansen Homes of South Florida Inc.; Paul Hansen; Anne Hansen; Transland Financial Services, Inc.; Legend Custom Builders, Inc.; Charles Davis; Dee Harding; Suntrust Mortgage, Inc.; Joseph Scott Properties, Inc.; Joseph Bonora; and Scott Bonora.