One of the biggest real estate investment fraud schemes in recent history has been exposed. Wells Real Estate Investment promised investors that their money would be used to buy, renovate, and develop commercial and residential properties across South Florida. Instead, they gambled $28 million of $58 million in investor funds on speculative options and futures trading. Surprise, surprise—they lost almost $12 million in the process. The 660 investors who trusted Wells with their money are undoubtedly in a tough position. However, while the SEC has filed a complaint against the company, who knows if investors will ever see recourse for the crimes committed? So let this be a cautionary tale: Fraudsters are out there. Wells had been in operation since 2017—not all that long, comparatively, but seven years is plenty of time to scam people. So how do real estate investors—especially those just entering this industry—avoid fraudsters, scammers, and ne’er-do-wells? Keep reading the article here: https://www.biggerpockets.com/blog/principles-for-avoiding-real-estate-fraud Subscribe to the BiggerPockets Channel for the best real estate investing education online! Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices