George Slowinski Allegedly Perpetuated a Fraud Scheme Involving Chicago Real Estate
Former broker George Slowinski, who was a principal and owner of Rebuilding America, LLC (Rebuilding America), allegedly perpetuated an offering fraud scheme involving real estate in Chicago, according to an SEC Complaint filed in the U.S. District Court Northern District of Illinois Eastern Division, and under review by investor rights attorney Alan Rosca.
Rebuilding America, between September 2013 and June 2014, allegedly raised more than $20 million from more than 600 investors, according to the aforementioned SEC Complaint.
Slowinski and Rebuilding America allegedly lured investors by promising to pay out 38% returns in only two years, the Complaint notes.
Former broker George Slowinski and Rebuilding America also allegedly told investors that the firm would generate such generous returns via the profits of a successful real estate development program.
Slowinski and Rebuilding America, specifically, allegedly told investors that Rebuilding America would pool investor proceeds to acquire, refurbish, and sell for profit residential real estate primarily located on the South Side of Chicago, the SEC notes.
However, Slowinski allegedly concealed from investors that between 34% and 42% of every invested dollar would be diverted, upfront, to Slowinski and his partners in the form of undisclosed fees and commissions, the SEC Complaint states.
Said alleged hidden fees purportedly resulted in Rebuilding America having significantly fewer funds to devote to its real estate projects and would need to achieve unrealistic and outsized margins in an unreasonably short timeframe in order to pay investors the promised returns, the Complaint notes. Slowinski purportedly concealed said actions, the Complaint reports.
Investor rights attorney Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to former broker George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate. Rosca Scarlato lawyers have considerable experience representing investors from Singapore and East Asia in cases arising out of fraudulent real estate investment programs in the United States, and we have represented investors in 62 countries including Singapore, Hong Kong, and Taiwan, among others. Investors who believe they may have lost money in activity related to George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
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Slowinski Allegedly Diverted over $2.8 million of Investor Funds
Under the purported pretense of soliciting investments, Slowinkski allegedly presented himself as a real estate expert with a successful track record of building and refurbishing residential properties, according to the aforementioned SEC Complaint.
However, he purportedly soon realized that Rebuilding America’s business model was unsustainable, and that Rebuilding America would allegedly not be able to generate the margins or complete the volume of development projects needed to repay investors, the Complaint reveals.
In spite of said revelations, Slowinski allegedly continued to solicit investors, accept the hidden fees, and use investor moneys to fund his real estate and construction businesses, the Complaint states.
Former broker George Slowinski also allegedly further compounded his fraud by diverting more than $2.8 million of investor funds, which had purportedly been earmarked for construction on specific Rebuilding America projects, to make improper payments for his companies’ payroll, overhead, and cost overruns on other projects, the Complaint reports.
Rebuilding America could not pay investors the promised returns, the Complaint informs, as a result of the hidden fees and Rebuilding America’s inability to make even modest profits from its real estate projects.
Rebuilding America, rather, simply allegedly paid investors one year’s worth of interest payments, the SEC further alleges, yet these first year payments were purportedly Ponzi-style returns which, unbeknownst to investors, came from investor principal as opposed to the profits from any real estate projects.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of former broker George Slowinski’s alleged perpetuation of an offering fraud scheme involving Chicago real estate may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
