Illinois real estate developer accused of misusing investors' money
The Illinois Attorney General is suing a real estate developer who it says collects money for investment but then uses the money to take out loans or buy cars, and doesn't pay back what's owed.
The state says Richard Calloway, who runs R.E.C. Real Estate Development Group, Inc., E.C. Enterprises of Chicagoland, Inc., and Neighborhood Housing Development of Chicagoland, Inc. charges consumers $5,000 for services related to property investment, but instead of providing the specified service, Calloway uses the client relationship to secure personal loans. According to a statement from the Attorney General, those loans are seldom repaid.
In addition to his real estate investment practices, the state also accuses Calloway of obtaining personal vehicles through consumers' names. He is said to tell consumers he will not only make the payments but also pay them between $1,000 and $2,500 for buying them. Consumer complaints allege these payments are never made.