R.A. North Development, Inc., R.A., North Development, LLC, Southeastern Waterfront Marketing, Inc., William Garith Allen, Randolph M. Allen, R Douglas Therrell, Kenneth Bednar, and Michael Woolard are the subjects of a consent judgment for their roles in a real estate scam.
The above defendants were developers and marketers behind Cannonsgate at Bogue Sound, North Carolina, and Summerhouse at Everett Bay, North Carolina. According to the consent judgment, each are barred from misleading any future buyers about the value or investment potential of lots offered for sale in North Carolina.
As alleged by the Attorney General’s Office, some sales agents marketed lots in Cannonsgate in Carteret County and Summerhouse in Onslow County as good investments, giving consumers the impression that they could re-sell the lots quickly for a profit. Sales agents also sometimes unfairly led buyers to believe that it was urgent that they buy immediately or the lots would be unavailable, and they advertised “developer pricing” to make buyers think they were getting a discount when they were not. In addition, agents were involved in flip transactions where other sales agents simultaneously bought lots and re-sold them for a substantial profit, using funds from the sale to pay for the initial purchase.
North Carolina Attorney General Roy Cooper, who announced the consent judgment, stated, “While many real estate opportunities are legitimate and live up to their promises, some take advantage of buyers. Beware of sales pitches that lead you to believe you’re getting a special deal and will be able to make a quick profit.”