Real Estate Capital Management, LLC (RECM) was introduced to our company approximately one year ago by their affiliate, RUI Financial Services. Both companies are located Los Angeles, CA. RECM offered to provide investment capital and real estate loans for our offshore real estate project. The program was supposed to be guaranteed funding based on the investment capital and loans being secured by a Bank Guarantee (BG) arranged by RECM, from a top 25 bank based in Europe. We were told that the issuer of the BG would be either HSBC or Deutsche Bank. Access to the program would cost $25,000 USD, payable upfront, in advance. The funding process was expected to take 4 to 6 weeks.
We engaged RECM on June 23 and provided all required information and documentation on our company and project, divulging proprietary and personal information. After a few reasonable delays, RECM presented our company with a Structured Finance & Asset Management Agreement and Funding Master Drawdown Schedule that was supposed to provide funding on or before October 1. As we got close to the October 1st funding date, we were presented with a series of delays that culminated in RECM advising us on January 21 that we should seek a cheaper source of funding on our own through one of their relationships.
RECM, RUI and all of their affiliates are a scam. They have taken $25,000 or more from numerous legitimate companies without the ability or perhaps the intention of providing any legitimate funding or sources of funding. RUI recruits clients and RECM perpetrates the scam. We believed that RECM engaged in schemes and scams with the intent to defraud unsuspecting legitimate businesses. We also believe that they engaged in mail and wire fraud and have since found out that they are under investigation by the FBI and by Securities and Exchange Commission. RECM and RUI has caused irrevocable damage to our reputations and to our project and we will seek damages to the full extent of the law.
Buyer beware!
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