Better Business Bureau suspends Greenleaf accreditation

The Better Business Bureau of Southwest Missouri has suspended accreditation of Greenleaf Cos. LLC and sister company The Real Estate Co. following a cease and desist order and preliminary injunction filed against them earlier this month.

Springfield-based Greenleaf signs on investors to purchase homes and then markets the homes to third-party buyers with poor credit who sign a contract for deed. Payments made on the homes are pooled by Greenleaf, which then sends checks to investors who cover their mortgages. Greenleaf's unorthodox business practices have been under scrutiny lately, as more and more of the company's investors report that they've stopped receiving payments.

Investigators with the Missouri Attorney General's Office searched Greenleaf's South Campbell Avenue offices on Dec. 9, seizing more than 80 boxes of financial records, real estate documents and credit applications, cell phones, compact discs and DVDs. A week later, Missouri Securities Commissioner Matt Kitzi signed a cease and desist order prohibiting the company and its owners from selling securities in the state.

Company officials also agreed to conditions of a preliminary injunction drawn up by the Attorney General's office that says Greenleaf is required to "clearly and conspicuously" disclose the details of its investment program.

Missouri Secretary of State Robin Carnahan has described Greenleaf's operation as an "investment scheme" and has accused owners Scott Dasal and Eric Gagnepain of failing to provide "material information" to investors.

The BBB Board of Directors Ethics and Standards committee will hold a hearing, and Greenleaf has been given the opportunity to present its case to the committee to remain accredited, according to a BBB news release. The committee will decide after the hearing whether to reinstate or fully revoke the company's BBB accreditation.[[In-content Ad]]