(CN) - A senior citizen in Illinois says a real estate investment company swindled him out of his retirement savings by falsely promising above market returns on a "Cash Partner/Credit Partner" investment that turned out to be a scam.
In his state court complaint, William O'Donovan says he fell victim to Mega Cash Flow Investments and Buy Right Homes Network when he sunk $50,000 of his retirement savings into its "Cash Partner/Credit Partner" program in 2007.
The alleged scheme calls for one person to make a cash investment in a real estate purchase, and for a credit-worthy individual to guarantee a mortgage refinance loan.
Allegedly, the loan would be used to repay the cash investor plus the promised return.
O'Donovan claims owner Robert McAvoy and investor Darcey Folkerts falsely promised him a 14 percent annual return on his investment, which he now says has been been lost.
He says he has never received a dime from the company.
"Defendants are engaged in a real estate investment scam," O'Donovan says in the complaint. "Under the guise of legitimate investment opportunity, Defendants procure funds from unwitting investors by promising, among other things, exorbitant returns. However, upon information and belief, Defendants fail to deploy the investment funds for the stated purpose and, accordingly, fail to make the promised interest payments and return principle."
O'Donovan says since the investment went south, he's made numerous attempts to contact the company by phone and by email. However, the company has thus far, not responded to his messages, he says.
O'Donovan seeks $150,000 in compensatory and statutory damages for breach of contract, fraud, violation of the Illinois Securities Law, breach of fiduciary duty and conversion.
He is represented by Adam Tracy of Naperville, Ill.
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