FOR IMMEDIATE RELEASE
Dec 16 2008
Contact: Laura Egerdal; Ryan Hobart, (573) 526-0949; (573) 526-4734
Carnahan Halts Springfield Company’s Real Estate Investment Scheme
Greenleaf allegedly sought out Missouri investors with good credit, offering an investment return of $10,000 in exchange for use of their credit to obtain financing for single-family homes. The investigation found that each investor purchased a home recommended by Greenleaf, assured that the company would make monthly payments and manage the property. The Secretary of State's office received formal complaints from investors when their payments stopped in June 2008.
"This type of scheme has no place in Missouri," said Carnahan. "Missourians have a right to get the facts they need to make informed investment decisions. Greenleaf failed these investors at every turn. In these tough economic times, my office will aggressively investigate and stop those who wish to defraud Missourians."
The order states that Greenleaf promised to send the investor funds each month to pay the principal, interest, taxes and insurance on the home, and The Real Estate Company of Missouri or Greenleaf would manage and maintain the property for three years. At the end of the three years, Greenleaf would sell the property and pay off the purchase loan. Greenleaf allegedly guaranteed to some investors that it would purchase the property if it did not otherwise sell.
The Order charges that Greenleaf began missing principal, interest, tax and insurance payments to investors for the houses in May 2008. Many Missouri investors have received no payments since June 2008, and several homes involved in these investments have been foreclosed upon or are scheduled for foreclosure.
The investments sold by Greenleaf and a related company, The Real Estate Company of Missouri, and their organizers Eric Gagnepain and Scott Dasal, were not registered as required by law. Both of the companies, Gangepain and Dasal are alleged to have also failed to provide material information about these offerings to their investors.
For more information regarding investments and fraud protection, visit the Secretary of State's online Missouri Investor Protection Center at www.MissouriSafeSavings.com or call the toll free Investor Protection Hotline at 1-800-721-7996.
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