I am a former employee of this scam artist, doug fonteno... He has an investment company called, www.hiltonhead properties.net. That is far from the truth and here is where it connects to the IRS and Linebarger, Goggan, Blair and Sampson in Dallas.
He has a large number of single family properties in Dallas and Houston and to my knowledge has never paid a single dime of taxes on any of them. He acquires them thru a technique called adverse possessi9on and closes them in his in house title department. THere is no regulation on paying the taxes or anytyhing. He currently owee hundreds of thousands of dollars in taxes in dallas county.
The scheme goes like this— he has employees called associates or partners find houses that are vacant and he puts a for sale sign in the yard and waits for a call. He then in turn sells the property to them, in house, without any form of clean title. And they put a small down payment, and start making payments. Most clients are low income moinorities and they really don't understand the issues surrounding the property
san antonio attorney general has issued an opinion that there is possible fraud in the procedure.
Anyhow-taxes are owed and are never paid. His buyer continues to pay monthly and the tax burden rises and the buyer is unaware until a taxs suit is filed. The Hilton head grorup has no way to ever give a clean title to the client... Not ever without paying the taxes as they go.
Many clients have filed suits, class action issues against fonteno, but he continues to escape... The scheme never ends in thatthe client pays, fonteno doesn't own the property and many times the faxes owed are higher than the note or the value of the property... So his minority client is buying nothing - just paying fonteno to live on ranchero drive and drive his hummer... By theway - that ranchero property, there is over 225k in taxes owed on this...
And why is Lineberger so dumb as to let this happen... Well. Fonteno is a clever little fart... He forms LLC's with each of his associates and the houses are in different names, alll under fonteno's control... Such as, blue roan, silver west, bright horizons, gatsby, camden, hyde, novo,
and saige properties to name a few... This way it frees hilton head from any tax liability and tax suits, or lawsuits... Suits come into tthe office at elm street but directed to the LLC's and they have few assets or money..
And guess what - he doesn't pay payroll taxes either... Hundred of dollars owed currently, and the doors are still open, that is unless he doesn't pay rent, and that happens, because he doesn't pay that either... The Irs NEEDS TO WAKE UP AND SMELL THE COFFEE OR SMELL THE POOP
Fonteno is a convicted felon, for mostly the same type stuff&ponzi, I mean a real ponzi scheme... He takes money from investors, gives them all the same collateral (either those run down s. Dallas adverse possession houses he does not have title to or those condemned condos in houston, which are somewhat worthless... They all think they are getting a real prize for their money, but actually fonteno never spends their money where they think it went, but buys cars, pays company payroll, lavish parties and running women like an olympic sprinte...
This guy needs to be stopped before everyone looses everything... I can think of dozens of employees who left unpaid, and many investors who put money in the deal, and there was only one deal — fonteno...
What does it take to put someone out of his misery — wake up lineberger and IRS... Your inaction is hurting everyone...
Ps: oh yes - word is out that the SEC is after him for about 135k — I wonder what investor will pay for that... Don't let it be you...
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