Marshall Reddick Real Estate Network, Inc. (MRREN), a prominent California-based real-estate-investment club, and 11 other individuals and businesses in the real-estate and lending industries based in Florida and Ohio were named as defendants in a lawsuit filed in Los Angeles Superior Court relating to an alleged fraudulent real-estate-investment program involving the sales of homes in Florida.
In the lawsuit, filed by the Law Offices of Andrew M. Wyatt, a Los Angeles-based law firm, the Irvine, California-based MRREN and its founder, Marshall Reddick, along with the other defendants were charged with 11 counts of illegal actions, including: Fraud; Racketeer Influenced and Corrupt Organizations (RICO) Act; Untrue or Misleading Advertising; Negligent and Intentional Misrepresentation; and Unlawful, Unfair and Fraudulent Business Acts and Practices.
Through the lawsuit, Plaintiffs Randy Mosner, a shipping and receiving supervisor from Sherman Oaks, California, and Caroline E. Hidalgo, a loan consultant in Azusa, California, request unspecified damages, attorney fees and legal costs.
Other defendants named in the lawsuit are Reddick individually, Christopher Minter, National City Mortgage of Ohio and the following individuals and businesses based in Florida: Mary Ellen Brennan (RE/Max Realty Select), Johnathan Shirey, SB of Naples, Inc., Wilfred Arthur Morin, William Dacey III, Atlantic Contractors & Development Corp., Jack Tralongo, Sr., Jack Tralongo, Jr., Timothy M. Murphy and Market Street Mortgage Corporation.
According to the lawsuit, Reddick, a retired economics professor, has built his reputation through seminars held at community colleges and universities. MRREN has 80,000 members, of which half have purchased property through its system of “armchair investing.” MRREN purports to have a network of high quality developers, builders and lenders who are professional and reliable, assuring investors of “worry free investing.”
In 2005 and 2006, Mosner and Hidalgo invested in the development of three single-family homes in Port Charlotte and Englewood, Florida. The lawsuit alleges that the bulk of the loan money went to the defendants for commissions and “overhead” costs. Little of the money was used for construction of the homes.
As a result of the builder’s failure to start construction, the plaintiffs were declared in default by the lenders. Besides adverse credit reports, Mosner and Hidalgo are potentially liable for hundreds of thousands of dollars.