Missouri Secretary of State Jason Kander's office announced it has shut down an area real estate investment scheme.
An investigation by Kander's office revealed Ozark resident Renee Goodman and her company, Investment Midwest, took in at least $635,000 from investors, promising quick returns on real estate properties but not delivering. Goodman allegedly commingled the investor money with personal funds, withdrawing $400,000 in cash and spending part of the remainder on personal expenses, according to a news release.
Goodman, who is not registered to sell investments in Missouri, directed only a portion of the investment funds toward their intended purpose. She originally promised investors above-market returns on the proceeds of businesses including auto lubrication shops and Waffle House, Kander's office said.
The investigation found at least six investors were pulled into the scheme.
Goodman allegedly told one investor a quick-lube shop in Forsyth would generate a 100 percent return after one year and that a $40,000 investment in a nearby Waffle House would yield a 180 percent annual return. Another investor put $37,500 into Investment Midwest for an ownership stake in a home to be built in Branson, with Goodman allegedly convincing the investor to reinvest the principal in another, adjacent home to be constructed. She allegedly told the investor the first property was under contract and set to close. The investigation revealed the original house never sold and the second home was never built, according to the release.
None of the offerings by Goodman or Investment Midwest were registered with the state, a requirement by law.
Kander's action bans Goodman and Investment Midwest from continuing the scheme and begins the process of recovering investors' money and imposing penalties, according to the release.
"Real estate scams are one of the top threats to investors, and my No. 1 goal in this investigation is recovering these investors’ hard-earned money," Kander said in the release. "It’s always a good idea for prospective investors to call my office to make sure the salesperson and investment product are appropriately registered because it is a red flag for a scam if they are not."
The secretary of state's securities division may issue enforcement orders, administrative actions or court orders to prohibit violations of investor laws, according to its website.
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