State shuts down real estate scam in Branson area

The order was placed against Randy Allen Rippee and his son, Frankee Lee Allen Rippee, and includes their companies – RCH Investment Group Inc., RCH Investment Corp. and Rippee Custom Homes LLC.

Investigators with Carnahan’s securities division uncovered evidence that suggests the Rippees solicited more than $1.2 million in investments via the Internet beginning in 2004 for new-home construction near Branson. The men promised a guaranteed return, according to a news release from Carnahan’s office.

Financial records show the investors’ money allegedly went to personal expenses, including payments to automobile dealerships, a baseball team, a resort, a dentist, a funeral home and more than $300,000 to themselves in payroll and cash expenses, according to the release.

The Rippees are prohibited from offering or selling securities until they are properly registered with the securities division, and Carnahan’s office announced further actions could result in tens of thousands of dollars in penalties and costs.

“This case is an example of why investors should be on the lookout for those who claim to have investments that are guaranteed or are a sure thing,” Carnahan said in the release. “Always check out claims that sound too good to be true, because they probably are. One call to the investor-protection hotline at my office can help stop a scam before it starts.”

Carnahan’s toll-free hotline is at (800) 721-7996.

This story originally appeared in SBJ’s Feb. 15 free e-news Daily Update. Click here to register.[[In-content Ad]]