Real Estate Investment Scams in Colorado’s Hot Market
Investors have been lured to real estate investing through get-rich-quick schemes pitched by Armando Montelongo and his company Armando Montelongo Seminars, LLC. According to the North American Securities Administrators Association, real estate-related investments and promissory notes are two of the top threats to investors.
Colorado’s hot real estate market is part of Montelongo’s appealing pitch for his “fix and flip” program. Montelongo recommends that students of his high-priced real estate investment courses work together to pool their resources. Unfortunately, these transactions do not always work out, leaving the capital investors holding an empty bag.
Investments through promissory notes purportedly secured by deeds of trust may in some circumstances be considered securities under the Colorado Securities Act (“CSA”). The CSA may provide remedies for investors who have lost money in these types of real estate investment schemes. Investors caught up in these scams should consult a securities litigation attorney to evaluate their potential options for recovery.
This communication is provided for your information only and is not intended to constitute legal advice or legal opinion as to any particular situation. You should not take, or refrain from taking, any action based on information in this article, without seeking legal counsel from an attorney on your particular facts and circumstances. Jones & Keller would be happy to provide you with specific advice about particular situations, if desired. Do not hesitate to contact us.