RALEIGH, N.C. (CN) – The court-appointed receiver claims the Village of Penland, a purported real estate development, was a Ponzi scam that took “tens of millions of dollars” from hundreds of investors. Five of the insiders have pleaded guilty to federal charges, the receiver says.
The receiver claims defendants Delano Dubuisson and Fast Motors Inc. were paid $300,000 in net payments, including land, for recruiting investors.
In a second, related complaint, the receiver claims Ferrukh Ijaz Sheikh and Arya Development got $254,000 for recruiting victims.
The receiver describes Penland as “a classic Ponzi scheme” from which “the debtors and their insiders diverted tens of millions of dollars obtained from investors by purchasing grossly overvalued lots in a purported real estate development called the Village of Penland,” which they “failed to develop as promised”.
Both complaints were filed in Wake County Court.