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 Nearly $410,000 Real Estate Fraud Scheme
BOCA RATON — A local man has been arrested after allegedly orchestrating a fraudulent investment scheme that defrauded 16 investors of over $410,000 in a real estate-related scam. Felipe Souza, 27, faces multiple criminal charges stemming from accusations that he ran a deceptive “bait and switch” operation designed to lure investors with false promises of high returns.
Details of the Alleged Fraudulent Scheme
Authorities say Souza promoted a high-yield investment opportunity claiming investors could earn returns between 200% and 338%, backed by a guarantee of their initial investment. Souza identified himself as a real estate investment expert and claimed that funds collected would be used to secure large collateralized loans for purchasing and flipping properties, aiming to generate significant profits for his investors.
Between February 2021 and January 2022, Souza is alleged to have collected a total of $413,800 from these investors. Despite promising high returns, many investors reported not receiving any returns or the original investment back, prompting complaints. Souza reportedly provided various excuses about the whereabouts of the funds, claiming delays or issues with his supposed business activities.
Of the total funds collected, Souza returned only $62,600 to some investors, leaving approximately $351,200 unaccounted for. The authorities determined that Souza transferred nearly half of the investor funds to another individual, Michael Campbell, who presented himself as a successful businessman and owned several companies, including Campbell Elite Consulting LLC and 700 Club Worldwide.
Connections and Deception
Investigators discovered that neither Souza nor Campbell held any valid licenses to sell securities or engage in real estate transactions in Florida, indicating their operation was unregulated and illegal. Bank records showed that the funds obtained from investors were not utilized for legitimate business activities. Instead, Campbell reportedly spent his share on personal expenses such as shopping and entertainment, while Souza used some of the money for utilities and travel.
Legal Actions and Charges
Following the investigation, Souza was arrested by the Palm Beach County Sheriff’s Office. He now faces sixteen counts of selling unregistered nonexempt securities and one count of defrauding to obtain property valued over $50,000. The criminal charges allege that Souza engaged in fraudulent practices designed to deceive investors and illegitimately benefit from their funds.
Background and Investigation Timeline
The Florida Office of Financial Regulation (OFR) initiated its probe into Souza’s business, FAS Creative Concepts LLC, in November 2022 after receiving multiple complaints. The U.S. Securities and Exchange Commission (SEC) also became involved, leading to a deeper investigation into the fraudulent activities. The investigation revealed that Souza actively solicited investors with false promises of high, guaranteed returns, while diverting their funds for personal use or unauthorized transactions.
Summary of Key Facts
- Felipe Souza, 27, arrested for a real estate fraud scheme in Boca Raton.
- Accused of defrauding 16 investors out of over $410,000 through false investment promises.
- Promised returns between 200% and 338% with a 100% money-back guarantee.
- Collected $413,800, returned only $62,600; $351,200 remains unreturned.
- Transferred nearly half of the funds to Michael Campbell, also unlicensed.
- Funds were not used for legitimate business purposes; spent on personal expenses.
- Charges include 16 counts of selling unregistered securities and one count of property defraudment.
As the legal process continues, authorities emphasize the importance of verifying licenses and scrutinizing investment opportunities to prevent similar scams. This case highlights ongoing concerns about unregulated schemes exploiting investor trust under the guise of real estate and high-yield investments.
Deeper Dive: News & Info About This Topic
HERE Resources
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Mint Hill Realtor Pleads Guilty to $1.7 Million Fraud
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 INDIANAPOLIS WRITER
INDIANAPOLIS STAFF WRITER The INDIANAPOLIS STAFF WRITER represents the experienced team at HEREIndianapolis.com, your go-to source for actionable local news and information in Indianapolis, Marion 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 Indianapolis 500, Indy Jazz Fest, and the Indiana State Fair. Our coverage extends to key organizations like the Indy Chamber and Visit Indy, plus leading businesses in motorsports and healthcare that power the local economy such as Indianapolis Motor Speedway and IU Health. As part of the broader HERE network, we provide comprehensive, credible insights into Indiana's dynamic landscape.
