Illinois real estate developer accused of misusing investors' money
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.
The AG's office has received eight separate complaints about Calloway practices. The suit alleges violations of the Illinois Consumer Fraud and Deceptive Business Practice Act. The suit asks the court to prohibit these companies from buying and purchasing securities in the state as well as restitution for consumers.
Attempts to reach R.E.C Real Estate Development Group, Inc., and E.C. Enterprises of Chicagoland, Inc., found both lines disconnected. No number could be found for Neighborhood Housing Development of Chicagoland, Inc.