Boca Raton Man Arrested for Real Estate Investment Fraud

An illustration showing the complexities of a real estate fraud investigation involving multiple investors.

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 Investment Fraud

Boca Raton, FL — A local man has been taken into custody following allegations of operating a significant real estate fraud scheme that defrauded 16 investors out of more than $410,000. The arrest of Felipe Souza, 27, marks a major development in a case involving deceptive practices and unregistered securities sales.

Details of the Alleged Scheme

Investigators allege that Souza engaged in a deceptive “bait and switch” scheme, promising high returns to investors on non-existent real estate deals. Souza reportedly claimed that investments in his business, FAS Creative Concepts LLC, could generate returns ranging from 200% to 338%. Additionally, he offered a 100% money-back guarantee to lure in potential investors.

Souza portrayed himself as a real estate investment expert seeking funding to secure large collateralized loans aimed at purchasing and flipping properties. He solicited funds from investors under the guise of funding legitimate real estate transactions, but authorities say the funds were not used for such purposes.

Investigation and Legal Actions

The Florida Office of Financial Regulation (OFR) began investigating Souza’s business activities in November 2022 after receiving complaints. Subsequent inquiries from the U.S. Securities and Exchange Commission (SEC) also contributed to uncovering the scheme. The investigation revealed that Souza collected a total of $413,800 from investors between February 2021 and January 2022.

Despite promises of high returns, Souza returned only $62,600 to investors, leaving an outstanding balance of approximately $351,200. The missing funds raised suspicion among investors, many of whom did not receive their promised returns or any other benefits.

Misappropriation and Transfers to an Associated Individual

Further investigation uncovered that nearly half of the collected funds were transferred to Michael Campbell, a man who falsely presented himself as a successful businessman. Campbell, owner of companies such as Campbell Elite Consulting LLC and 700 Club Worldwide, allegedly helped mislead investors by endorsing or facilitating Souza’s schemes.

Bank records confirmed that neither Souza nor Campbell held licenses to sell securities or real estate in Florida. The records also indicated that the funds were not used for legitimate business purposes, but instead for personal expenses. Campbell reportedly spent his share of the funds on shopping and entertainment, while Souza used the money for utilities and travel.

Charges and Arrest Details

The Palm Beach County Sheriff’s Office arrested Felipe Souza on charges related to securities fraud and property theft. Souza faces sixteen counts of selling unregistered nonexempt securities and one count of defrauding to obtain property valued over $50,000. The case highlights ongoing concerns over unlicensed securities activity and real estate investment scams in the region.

Background Context

This case underscores the risks associated with investment opportunities that promise high returns without proper licensing or regulatory oversight. Both Souza and Campbell lacked the required licenses to legally sell securities or real estate in Florida, raising concerns about unregulated investment schemes targeting unsuspecting individuals. The investigation remains ongoing, and authorities continue to warn the public about potential fraudulent schemes in the real estate and securities sectors.

Residents are advised to exercise caution and verify the licensing and registration status of anyone offering investment opportunities, particularly those promising unusually high returns with little risk.