Lawsuit Filed in California for Fraudulent Home Sale Investment Enterprise

admin —  July 19, 2007 — 23 Comments

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.

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23 responses to Lawsuit Filed in California for Fraudulent Home Sale Investment Enterprise

  1. I am the lawyer who sued Marshall Reddick in Los Angeles Superior Court. I am trying to find as many people as possible who have been hurt by Marshall Reddick to see if a class action lawsuit is doable. My office number is (818) 710-3813. I will talk to anyone who calls. While I am very interested in those who bought in the Port Charlotte/Cape Coral areas, I will help anyone who bought anywhere else.

  2. Dear Ms. Dollar, I have heard that the MARSHALL REDDICK REAL ESTATE NETWORK of Irvine Calif., is now or was affilaited (or part owner) of First Guaranty Mortgage. Can you verify this or direct me to a source of verification?
    Thank you.
    Keith Ridgway

  3. Hi,

    I am looking for anyone who has invested in the Baja Golden Beach developed by CIMA, who also was the developer in San Felipe Mexico. Marshall Reddick was involved in the selling of this project. If anyone is interested in networking and trying to do something with other investors (that I’ve put together), please give me a call at 415.722.0157.

  4. I also invested/purchased properties in Florida through Marshall Reddick. One is a condo, which I believed was overpriced, overtaxed, and cost too much for HOA. I am about $400.00 negative on this unit that I decided to let it go (in process of foreclosure). I also had a contract for another property (a land) in Fl., put $3500 down + appraisal fee ($350.00). The contract was cancelled: builder and realtor blaiming each other, but my money is gone too. MRN is not helping. I bought a total of 5 properties through MRN. My FICO is messed up.

  5. I bought a property at “San Felipe by The Sea” from a developer call CIMA Group of MX thru MRREN in 2005. Our deposit money was never return, the project is at stand still. I am looking for investors who purchased this same project to joint force for legal action. Please email or call me ASAP. Chris 310-270-3446

  6. I bought properties thru MRN and right now 3 of them are in forclosure. I used my promary home equity to purchase properties and now I am losing my primary home to forclosure. I bought properties in Florida, Arizona, Oregon and California. I felt that the homes I bought from this areas are overpriced due to the commisions placed on top of the sale price and that the broker exclusively contracted the seller that they can sell the properties thru MRN investors. The Brokers have used false advertising by quoting that these areas are MRN favorites. In total I have 4 properties with NOD and another one coming up soon to be in default. Three other people I know lost almost all of their investment properties and just like me their primary homes are with NOD’s too.,My lenders are Market Street Mortgage, Countrywide, First Guarantee which are all MRN preferred lenders.

    Can you help us

  7. I to got involved with MRN and Missouri Partners Inc in 2005 and purchased 2 lots in Branson Missouri at Stonebridge/forest lakes which are now in foreclosure.Has anyone else had problems trying to sell or been mislead about what they were worth? Most of the lots were sold to out of state investors.

  8. Hello-
    I bought two props thru M.R. in 2006, (AZ) and both are about to go into foreclosure. M.R. continues to email me to join in THEIR lawsuit against Brewer Caldwell in Phoenix when I feel they misrepresented as well.
    any help?
    Debbie Kasper

  9. My wife purchased 18 properties through Marshall Reddick, many are in foreclosure. I couldn’t stop her from doing this. If I had been forceful enough, I would have divorced her before she bought that first property. I was against all of it from the start but impossible to prove my case with certainty. Early on we both read “The COming Real Estate Crash” in April 04! She didn’t listen!!! We’ve been married 25 years. In many cases, she did not disclose purchase of properties until after the fact.

    We are still clinging desperately to our marriage and trying to make payments on the properties as much as we can, but it’s TOUGH. I think about half the properties are going unrented. What a mess — all this paperwork. We haven’t yet filed taxes for 2007.

    EVen on our 100,000 + income, bankruptcy is a real possibility. I should consult an attorney, but can’t afford it. Trying to ride this out.

  10. My sister Janet used to own a home in Cape Coral Florida. She lost her home due to uneployment & also to the amount of mortgage payment she had and was not able to pay. she also had a second property that the realtor told her to buy and transfer to another relagtive a year from the inception date, Also the paymenrts were too high since a credit was approved without her holding a permanent job. I would like to get more information about this matter.

  11. I am still fighting to get my 20k deposit back. I was stupid to trust Marshall Reddick and the developers at Playa Del paraiso in San Felipe MX. These guys are crooks and nobody seems to care to fix the real estate scam problems down there.

  12. Does anyone know Gordon Carlson, he was involved with these guys and ruined my parents for life! they bought over 8 properties all in foreclosue

  13. Does anyone know Brewer Caldwell (AZ) and the Arriva Condominiums? These guys along with Marshall Reddick have ruined me. I’m trying to find more people who brought thru Brewer Caldwell and Marshall Reddick an Arriva Condominium in Mesa, AZ. I’m currently suing them both.

  14. Eileen Keledjian March 28, 2009 at 10:21 pm

    I would like to be a participant of the class action against Marshall Reddick. Details will be provided upon request.

  15. Does anyone know Martha Lane? It sounds like her parents couldn’t take responsibility for their own actions and blamed everyone around them for their failure. For the record … Gordon Carlson doesn’t sell Real Estate and never did. As a matter of fact he is not even associated with MRN. Maybe her parents should contact Gordon Carlson for help.

  16. jon forsythe May 2, 2009 at 2:16 pm

    Marshall Reddick is not an honest man. As a professor, he had zero integrity and mostly pitched his schemes rather than teach, such is the crime of tenure.

    Marshall got is act down so to speak by the old confidence routine. Fatherly approach, “here, let me invest some of my money along side yours…”

    “I”ll float you the first few payments…you sign here and we’ll take care of the details later..”

    I know because I wrote them for him to use as a writer of pitches for many marketing firms that he has hired to perfect his brand of con.

    Sorry everyone but he ain’t no saint and I did not commit a crime, just wrote numerous speeches and jingles.

  17. Heads up to those suing Marshall Riddick he is trying to hide his assets in a trust called ocean Pacific group it is controlled bye an attorney Daniel E Carpenter of Simsbury CT

  18. Looking for other “reddick” investors who got bilked out of our investments in Kauai Hilton condo hotel. The developer, Brian Andersen, stole money from all of us and went bankrupt. reddick inflated the prices, and the rest is history. Please email, doesnt’ the real estate board have an insurance fraud fund?
    Also, anyone invest in the Florida Bermuda Dunes condo mess? Suntrust mortgage was involved with that fraud also.

  19. From 2001 to 2005 I told as many people as possible to sell when everyone was buying! And I begged the HOT LOOKING WOMEN that BOUGHT WITH THIS MARSHALL RIDDICK, not to buy! I begged them to sell into GREED and take profits! No, they did not listen and are now “penny less”. They are “older, wiser, poorer”. Me? I’m Double Major Finance & Real Estate University of Hawaii Grad. 4 semesters of Calculus, and 8 x-licenses in Hawaii and Calif. I sold 198 of my properties while everyone was buying like a dog. I was selling like it’s D-day from 2001 to 2007. Now I’m buying land at 1 to 6 cents on the dollar! My goal is to get on the Forbes 500 list by 2020 and to write a book about investing. Till then, I can only pray & giggle at the stupid dumb mistakes these real estate buyers did with feelings vs. math, charts, graphs and other tools of “science”. Real estate is not a game, it’s a 4-6 year degree of science & math! It requires & demands learning & reading, as much as 100 pages a day! Oh, giggle, I averaged 49% a month gross profit on my 198 sales from 2000 to 2007. Average hold 23.67 months with no debt and average gross profit of 1165%. As God is my witness!

  20. I’m interested in hearing from anyone who bought places in Stonebridge, in Branson, MO. I’ve kept careful notes.

  21. It’s a wounder no one has “beat up” this guy for messing up so many others! Sad, this guy Marshall Riddick is a SOB and Jerk at the same time. If he did this to me? I would buy a “mexican contract” on him…. “but I made money off his BS”!!!

  22. Marshall Buyers are DUMMIES!
    All Dummies like Obama!
    Emotional “investors” with no brains!
    Obama & Marshall are “Professors”.
    They only “boss around” students!!!
    They have no Success Track Record with business or lawsuits! I have over 600 sides in real estate and 114 court cases all making profits! LIKE DUH!!!

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