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In what is becoming a significant concern for residents and authorities alike, individuals across the county are claiming to be victims of a purported housing scam. The scheme has centered on derelict properties in various Chicago neighborhoods, marketed deceptively as promising “investment” opportunities.
The ABC7 I-Team is delving into a series of lawsuits filed by several individuals who allege they were deceived into handing over substantial amounts of money to a man who promised to renovate these neglected homes. Unfortunately, these properties remain in a state of abandonment, contributing to neighborhood blight rather than revitalization.
Adding to the frustration is the visible deterioration of these buildings, especially on the city’s South Side, where many homes are left vacant and boarded-up. The presence of these dilapidated structures has sparked concern among local officials, including an alderperson who has voiced their displeasure over the negative impact on community aesthetics.
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Attorney Ana McNamara highlighted the broader implications of this issue, noting, “It hurts the neighborhood, because people who live here think that something nice is going to happen.” The hope for neighborhood improvement is dashed when investments supposedly intended for revitalization lead instead to community disappointment.
“It hurts the neighborhood, because people who live here think that something nice is going to happen in the neighborhood,” attorney Ana McNamara said.
Four homes, which are supposed to be rehabbed, are now at the center of several lawsuits filed by eight investors from all over the country.
“I need that money very badly,” said Arash Motedaeiny of northern Virginia. “I mean, you know, I’m married with two kids providing for my family and it’s putting me in debt… So it’s devastated my life.”
They say they’ve lost thousands investing in the Chicago homes with Steeve Raymond. He is the CEO of an Illinois-based company, Selective Real Estate Investments.
“But when you’re ghosted like this… it’s unsettling,” said Kathy Bradshaw of Ohio. “I’m angry. I’m upset.”
The investors are represented by Ana McNamara with McNamara Law Office, Ltd.
“And it started with one or two phone calls and then it steamrolls into numerous,” McNamara said.
Raymond can be seen in YouTube videos in an announced recorded Zoom call from January of 2024.
“I am a licensed general contractor that is one main reasons of my success is I can control you know not only the purchases but the rehab of the property,” Raymond said in a video.
The videos are cited in another one of one of McNamara’s lawsuits representing a ninth investor. She says it shows how he pitches his business to potential investors.
“I do business in four different markets, and 90% of my business is Chicago simply because there is a huge upside to investing in Chicago,” Raymond said in a video.
The lawsuits from investors allege that Raymond solicited these investors to loan money for the rehab of his boarded-up properties, and that investors would get 30% to 33% in interest payments from Raymond upfront.
“And at the end of the six months, they would get all their principal back,” McNamara explained.
But the consumers say they’ve all been waiting at least a year for those returns of the initial investment, and that interest payments have stopped.
“Oh, it’s a great loss to me,” said Belinda Rowe of South Carolina. “I mean, that’s a lot of money to lose in my book because I don’t have millions of dollars to retire on.”
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“This is a lot of my savings that I put forward,” said Andres Morales of Indiana.
The investors say with principal and interest and attorney fees, that Raymond now owes them anywhere between $75,000 to $550,000.
Derek Robinson of North Carolina invested the most.
“But it’s part of my retirement is like me up slowly building this up to get to a point to where I can retire comfortably and not have to worry,” Robinson said. “And yes, this was a huge setback.”
Some of the consumers say they did get some interest money, but the majority of lawsuits also allege that it came from the money they invested, alleging a Ponzi scheme.
“I just need some answers as to if you did not rehab these properties,” said Ashley Brown of California.
Raymond’s attorney, who is also named in many of the lawsuits, told the I-Team: “Mr. Raymond is not willing to comment on pending litigation, other than to deny that there was any wrongdoing or fraudulent activity. Rather, this appears to be an attempt by the attorney for these various individuals to gain an advantage in the pending litigation by using the media to exert pressure on Mr. Raymond. There is no Ponzi scheme or other fraudulent conduct whatsoever. These cases are nothing more than foreclosure actions, and any assertions other than that are wholly without merit.”
“We’re not going to tolerate it, not only in Chicago, but especially in the 6th Ward,” Ald. William Hall said.
Two of the homes in question are in Ald. Hall’s ward, in the East Woodlawn neighborhood.
“It is something that is a distressful, stressful for neighbors,” Hall said. “And no neighbor should have to wake up to an abandonment that they could have possibly bought.”
The neighbors are also complaining about the vacant homes.
Kelle Martin/ neighbor RT 12:50 “We’ve had squatters in the house,” neighbor Kelle Martin said.
Meanwhile, Raymond’s investors say they’re struggling with empty wallets.
“This is a huge loss,” said Ammon Jensen of Washington. “I mean, there’s no words I can put that that can describe like the anxiety that I’ve had.”
Raymond’s attorney also added that several properties are close to being completed and they will be listed for sale soon, and then he’s working on getting loans repaid as diligently as possible. Raymond has not yet filed official legal responses to the lawsuits in the I-Team’s report.
Before investing with anyone, consumers are urged to research them. If the return sounds too good to be true, it probably is.