Promises of High Returns
Investors were drawn in by promises of significant returns on investments with Atlanta real estate investor Don Demick. They believed Demick to be a credible professional and were enticed by potential earnings of $100,000 to $200,000 in 18 months.
Initial Investments
Ben Lee paid a $5,000 coaching fee and invested $15,000. Daphne Bia invested $20,000 with an agreement for a 20% return within 90 days. Zuri Farallo, along with a partner, invested $30,000 to flip houses in Atlanta.
Issues with Returns
All investors reported a lack of communication and failure to see returns. Demick stopped responding to communications, and investors did not receive property details or their expected returns.
Demick’s Explanation
Demick attributes the failure to changing market conditions, citing skyrocketing interest rates and inflation. He claims materials and costs increased unexpectedly.
Legal and Financial Discrepancies
Demick insists that it is the dissolved LLC, GWP Consulting, that owes the money, not him personally. Daphne Bia’s investment is still tied up in an incomplete project. Ben Lee received multiple unfulfilled promises of payment. A Cobb court ordered GWP Consulting to pay $30,000 plus attorney fees to the Farallos, which has not been received.
Ongoing Lawsuits
Several lawsuits are ongoing, including one from the Farallos against Demick directly, and separate suits by other investors.
Advice for Future Investors
The investors emphasize the importance of thorough research and due diligence before making investments, expressing regret for not doing so initially.
