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 detained following allegations of orchestrating a large-scale real estate investment scam that defrauded multiple investors of over $410,000. Felipe Souza, 27, is accused of running a scheme that promised high returns on non-existent property deals, leading to criminal charges and ongoing investigations.
Details of the Scheme and Arrest
Felipe Souza was arrested by the Palm Beach County Sheriff’s Office on charges including sixteen counts of selling unregistered securities and one count of defrauding to obtain property valued over $50,000. The arrest follows an extensive investigation spearheaded by the Florida Office of Financial Regulation (OFR) and prompted by complaints filed with the U.S. Securities and Exchange Commission (SEC).
Nature of the Fraud
Souza reportedly operated under the business name FAS Creative Concepts LLC, claiming to be an expert in real estate investments. He enticed 16 investors with promises of high returns, ranging from 200% to 338%, alongside a purported 100% money-back guarantee. Souza claimed that funds would be used to secure large collateralized loans, which he intended to utilize for purchasing and flipping properties.
However, investigators discovered that the promised real estate deals were non-existent, and the business lacked the proper licensing to sell securities or real estate in Florida. From February 2021 to January 2022, Souza collected approximately $413,800 from investors. Of this amount, he returned about $62,600, leaving an outstanding balance of roughly $351,200.
Flow of Funds and Misuse
Bank records revealed that a significant portion of the collected funds was transferred to Michael Campbell, a man who represented himself as a successful businessman. Campbell owned companies including Campbell Elite Consulting LLC and 700 Club Worldwide. Despite this, neither Campbell nor Souza held the necessary licenses to legally sell securities or real estate investments in Florida, raising concerns about the legitimacy of their activities.
Investigators also found that the funds did not support legitimate business activities. Instead, Campbell allegedly used his share of the money on personal expenses such as shopping and entertainment. Similarly, Souza’s expenditures included utilities and travel costs, with no evidence of any real estate transactions or investment activity.
Legal Proceedings and Charges
Felipe Souza faces multiple criminal charges, including the sale of unregistered securities and fraud to obtain property valued over $50,000. The investigation continues to determine the full scope of the scheme, and prosecutors are working to recover the remaining funds owed to investors.
Background and Context
This case highlights the risks associated with unregulated real estate investments and the importance of verifying the credentials of individuals offering such opportunities. Both Souza and Campbell’s actions demonstrate how unscrupulous actors can exploit investor trust, especially when legal oversight is absent. State and federal authorities continue to monitor and combat similar schemes to protect consumers and uphold securities laws.
Investors who believe they may have been affected are advised to report their cases to relevant authorities and seek legal counsel. The authorities emphasize the importance of conducting thorough due diligence before committing funds to any investment opportunity.
As investigations unfold, further updates are expected, and authorities remain committed to pursuing justice for those involved in this fraud scheme.
Deeper Dive: News & Info About This Topic
HERE Resources
Wyoming Pioneers Digital Land Registry Transformation
Realtor Pleads Guilty to $1.7 Million Wire Fraud Scheme
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 MILWAUKEE WRITER
MILWAUKEE STAFF WRITER The MILWAUKEE STAFF WRITER represents the experienced team at HEREMilwaukee.com, your go-to source for actionable local news and information in Milwaukee, Milwaukee 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 Summerfest, Milwaukee Film Festival, and the Milwaukee Boat Show. Our coverage extends to key organizations like the Metropolitan Milwaukee Association of Commerce and Visit Milwaukee, plus leading businesses in manufacturing and brewing that power the local economy such as Harley-Davidson and MillerCoors. As part of the broader HERE network, we provide comprehensive, credible insights into Wisconsin's dynamic landscape.
