SEC Charges Texas Man in Real Estate Investment Scam
The Securities and Exchange Commission has charged George Slowinski with perpetrating a more than $20 million offering fraud involving real estate in the South Side of Chicago, Illinois impacting more than 600 investors.
The Securities and Exchange Commission has charged George Slowinski with perpetrating a more than $20 million offering fraud involving real estate in the South Side of Chicago, Illinois impacting more than 600 investors.
According to the SEC’s complaint, Slowinski, a Texas resident, was a principal and owner of Rebuilding America LLC, which purportedly offered real estate investments. Slowinski allegedly told investors that Rebuilding America would pool investor proceeds to acquire, refurbish, and sell for profit residential real estate primarily located in the South Side of Chicago.
Slowinski allegedly lured investors by touting Rebuilding America as a successful real estate program and promised to pay investors 38 percent returns in only two years. They allegedly raised more than $20 million from more than 600 investors with assistance from London-based Project Kudos Group Limited and Singapore-based Infinity Treasures Private Limited.
According to the complaint, Slowinski hid from investors that between 34 percent and 42 percent of every investment dollar would be diverted upfront to Slowinski and other Rebuilding America principals in the form of undisclosed fees and commissions.
The SEC claims that Slowinski diverted more than $2.8 million of investor funds, which had been earmarked for construction on specific Rebuilding America projects, to improperly pay for his companies’ payroll, overhead, and cost overruns on other projects.
The SEC’s complaint seeks injunctive relief, disgorgement of ill-gotten gains, and civil penalties.
