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Recent Cases: Investors recover $1.4 million invested in fraudulent development deals. |
In mid 2005, a group of investors pooled their money and invested a total of $1.2 million in four residential subdivisions that Cobblestone Builders claimed to be developing. Pursuant to written agreements, Elephant Tract’s investments were to be secured by specific land lots and Cobblestone was to use Elephant Tract’s investments to develop and resell the lots, thus generating a return for Elephant Tract on its investment. However, after receiving the funds, Cobblestone did not develop the lots, as agreed. Moreover, in many cases, Cobblestone did not even own the lots, as represented, and thus, Elephant Tract never received valid security interests for about half of its land investments. In one case, Cobblestone sold the property to a third party without making any payments to Elephant Tract.Through litigation in North Carolina, the Firm recovered $925,000 in cash plus real estate worth approximately $500,000. The case was handled by Ed Dovin and Allison Ficken. |
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