They always go after the little guy when they want to set an example. Look at this guy who sold overpriced Florida swamp land on Ebay to a bunch of dumb suckers who don't want to claim responsibility for their actions or lack of due diligence.
news-journalonline.com
'DAYTONA BEACH -- Authorities investigating online sales of unbuildable swampland near Daytona Beach have seized $178,000 worth of cars, including a Hummer and Dodge Viper.
A warrant served at the 2,700-square-foot Ormond Beach home of James A. Kelly last week was just the start in a state investigation of real estate fraud for peddling "paper subdivisions" in wetlands to unsuspecting victims, mostly from South Florida.
The locations of the sales, in vast water recharge areas east of DeLand off U.S. 92, are called University Highlands and Cape Atlantic, according to an affidavit filed by the state Attorney General's Office this week in circuit court.
Among real estate transactions Kelly handled, records show Beata Jeune of Spring Valley, N.Y., bought five acres from him for $32,000 in August 2005. But the land has a listed value of $2,500, according to the Volusia County property appraiser.
Nearly two dozen sales by Kelly's Ormond Beach company, Volusia Wholesale Land and Property Investment, could lead to charges of grand theft and/or organized scheme to defraud, according to investigators and court records. Little comment was available Thursday.
"It's an active, ongoing investigation," said Susie Murphy, a Florida Department of Law Enforcement spokeswoman. To date, no criminal charges have been filed against Kelly.
Marketing such properties is nothing new; books and newspaper stories have been printed on the subject statewide since at least the 1960s. The same hooks for speculators and dreamers remain, but the Internet has made it easier to reach out to faraway buyers. Kelly used the Ebay Internet auction site to make some sales, officials said.
According to the affidavit, Kelly's company used his Web site to drum up sales of properties here and statewide, totaling $2.4 million in deposits to his bank accounts between March and November 2005. Many buyers were from the Palm Beach area.
Kelly bought the land in different transactions, including a purchase in July 2005 of 1,200 acres for $1.3 million. About 15 to 20 acres of that was in University Highlands, records show. Kelly is being investigated for then selling the "low wet land" for "many times what the property was worth," the affidavit states.
Some evidence shows Kelly paid more for some of the University Highlands property than it was worth, the affidavit states. Among allegations raised in the affidavit, Kelly wasn't registered with the state to sell subdivided property.
Several buyers claimed they were bilked; buying without seeing the property and only learning they could not build on the sites after they had paid. And when they tried to get answers from Kelly, the report states, their calls went unanswered.
All said they would not have bought the land if they knew they could not get building permits for the lots, the affidavit states.
Some, according to the affidavit, claim Kelly got angry when they asked "why he was doing business on the side of the road."
"All the individuals who questioned Kelly felt extremely pressured to make the purchase," the affidavit states.
On his company's Web site, potential buyers are told pictures of parcels are taken from "airial (sic) photos from the Volusia County website (sic)." There is also a link: CLICK ON THIS TEXT TO SEE PICTURES OF WHAT YOUR MONEY IS DOING FOR HAITI.
Then, the disclaimer.
"We have not visited all of the lots we own and are making no representation to the condition or buildability of these lots, as some of the lots we sell are raw virgin uncleared lots without road access and/or utilities."
"Please be sure before making a purchase to do your own due diligence."
A man identified in court records as Antoine Joseph bought several parcels from Kelly, and then started to find buyers for a referral fee. Joseph, who records state later learned he could not get a building permit for his purchase, could not be reached Thursday.
Jeune of New York did not return a message left at her home.
Records show Kelly had paid in full for the cars and custom motorcycle that were carted away by officials last week.
Court documents say the property was seized under state law because it was used in commission of a felony or otherwise acquired with illegally obtained money. Kelly referred calls to his attorney.
Daytona Beach defense lawyer Peyton Quarles confirmed he is representing Kelly. He's requested a preliminary hearing to contest the seizures.' |
