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, Florida — A local man has been taken into custody for allegedly orchestrating a substantial financial scam involving millions of dollars through real estate and securities fraud. Felipe Souza, 27, is accused of defrauding multiple investors in a scheme that promised high returns from nonexistent real estate deals, resulting in losses exceeding $410,000.
Details of the Fraudulent Scheme
The crime was uncovered after investigations began in November 2022, initiated by the Florida Office of Financial Regulation (OFR). The U.S. Securities and Exchange Commission (SEC) also received numerous complaints from investors, prompting further inquiry into Souza’s activities.
Souza allegedly operated under the business name FAS Creative Concepts LLC, claiming to be a real estate investment expert. He persuaded at least 16 investors to part with a combined total of approximately $413,800 between February 2021 and January 2022. Souza offered purportedly lucrative investment opportunities, claiming the potential for returns between 200% and 338%, along with a supposed 100% money-back guarantee.
The investor pitch involved seeking funds to secure large collateralized loans intended for buying, renovating, and flipping properties. However, the promised high-yield returns never materialized, leading investors to raise complaints about not receiving their profits or principal. Souza offered various excuses regarding the whereabouts of the funds, further raising suspicion.
Misappropriation of Funds and Lack of Regulatory Compliance
Investigators found that a significant portion of the collected funds was misappropriated. Of the total amount collected, Souza returned only $62,600 to certain investors, leaving approximately $351,200 unaccounted for. Bank records revealed that the funds were not used for legitimate business transactions or real estate activities.
Further scrutiny uncovered that nearly half of the investors’ money was transferred to Michael Campbell, who falsely portrayed himself as a successful businessman. Campbell owned several companies, including Campbell Elite Consulting LLC and 700 Club Worldwide, which were used to deceive investors into believing their funds were supporting legitimate ventures.
Legal Violations and Arrest Details
Both Souza and Campbell lacked the necessary licenses to sell securities or engage in real estate transactions in Florida. Their actions violated securities laws by offering and selling unregistered securities. The investigation confirmed that neither man had proper authorization to conduct such financial activities.
Bank and financial records indicated that the funds used in the scheme were allocated for personal expenses by Campbell, such as shopping and entertainment, and by Souza for utilities and travel, rather than for any real estate investment or business purpose.
In connection with these allegations, authorities arrested Souza through the Palm Beach County Sheriff’s Office. He now faces multiple criminal charges, including sixteen counts of selling unregistered securities and one count of defrauding investors of property valued over $50,000.
Background and Broader Implications
This case highlights ongoing risks associated with unregulated investment schemes, especially those promising high returns with little transparency. Securities laws require registration and licensing to protect investors from fraudulent activities. The investigation continues as authorities seek to hold Souza and his accomplices accountable for their actions and to recover lost funds for victims.
In Florida, regulatory agencies remain vigilant against schemes that exploit investor trust, emphasizing the importance of verifying licensing and conducting due diligence before engaging in financial transactions or investments.
As this case proceeds through the legal system, the outcome will serve as a reminder about the importance of transparency and regulation in financial dealings, particularly within the real estate and securities sectors.
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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 CLEVELAND WRITER
CLEVELAND STAFF WRITER The CLEVELAND STAFF WRITER represents the experienced team at HERECleveland.com, your go-to source for actionable local news and information in Cleveland, Cuyahoga 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 Cleveland International Film Festival, Rock & Roll Hall of Fame Induction Ceremony, and the Cleveland Air Show. Our coverage extends to key organizations like the Greater Cleveland Partnership and Destination Cleveland, plus leading businesses in manufacturing and healthcare that power the local economy such as Cleveland Clinic and Sherwin-Williams. As part of the broader HERE network, we provide comprehensive, credible insights into Ohio's dynamic landscape.
