A fraudulent lawsuit by a company that represents itself as a one-stop shop for flipping homes has been certified as a class action by a federal judge in Cincinnati.
Ohio-based Build Realty and other companies, including Edgar Construction, First Title, Gary Bailey and George Triantafilou, advertised through seminars, social media, websites and other media that they would teach people how to flip homes with little or no down payment and no credit check, WCPO reported.
But lawsuits filed in federal court allege that between 2013 and 2019, students in Ohio and Kentucky were deceived by the company in a massive, organized scheme of fraud and mail fraud, the outlet reported.
According to the lawsuit, the alleged victims believed they were purchasing real estate for themselves when in fact they became beneficiaries of a trust.
“In many ways, this was a scam,” attorney Bill Markovits, who represents the plaintiffs, told the outlet. “They said, 'We're going to buy in bulk and pass the savings on to you,' but that wasn't the case. They bought off the market, marked up the properties, and you paid the marked-up prices.”
The group of plaintiffs consists of 200 to 300 people who have paid the company at least $10,000, according to the media outlet. The judge also approved a lawsuit from another group of smaller plaintiffs (up to about 40 people) who lost property to Build Realty.
According to the Finney Law Firm, some people have lost their entire fortunes in this scam, with losses estimated to run into the millions of dollars.
Olga Ferry said she lost tens of thousands of dollars she paid Build Realty to renovate her two-family home.
“They're always feeding me this nonsense and trying to lead me on and say, 'Oh, this is a great investment,'” Ferry told the outlet. “They're sneaky and they create company upon company, so you can't do anything.”
Build Realty did not respond to requests for comment but defended itself in court documents as a legitimate business. Lawyers for the company have challenged the class action ruling and filed an appeal with the 6th U.S. Circuit Court of Appeals.
Ted Glanzer
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