A Texas real estate investor has filed a $200,000 lawsuit charging fraud and deceptive business practices by an Atlanta businessman and his real estate education company for accepting money and failing to renovate properties as promised and failing to account for the investor’s money. Bobbie Schumacher of Katy, Texas, filed suit in Chicago against Andrew Cordle, Guidant Investments, LLC, and Financial Momentum, LLC under the Illinois Consumer Fraud and Deceptive Business Practices Act. The suit states that Schumacher met Cordle in 2012 in Houston at an event called the REI Expo, where Cordle was pitching Financial Momentum’s proffered real estate formula of “create change, create capital and create cashflow.” As a result of that meeting, Schumacher paid Cordle $19,997 for coaching and mentoring services, including, among other things, monthly online mentoring, a one-to-one consulting call with a financial person, access to four to five wholesale real estate investment deals, and lifetime access to Cordle’s education seminars, according to the suit. Also, the suit states that Cordle offered Schumacher an “investment opportunity” where she would front all the money for the acquisition and improvement of residential real estate opportunities and Cordle would purchase, repair and sell the residential real estate at a maximum profit of which Schumacher would receive 50 percent. He represented to her that her profit would be a minimum of $15,000 on the first property. The suit states that three properties were involved. The first property was sold and she received only $3,730, not the $15,000 promised by Cordle, and that the other two properties have not been repaired and remain unsold. The suit states she wired money to Guidant Investments for the acquisition and improvement of the two additional properties, including $90,000 on Feb. 21, 2013, for the second property and $100,000 on March 1, 2013, for the third property. All properties were located in Illinois. The suit states the property renovation was never done, Cordle refused to return her calls and never provided the promised coaching and mentoring services. Joseph Messer of Messer, Stilp, & Strickler, Ltd., Schumacher’s attorney in Chicago, said, “This has every indication of being a Ponzi scheme. It is unfortunate this happens to innocent investors. We hope to right the wrongs.” Messer said other investors can contact him at 312-334-3440 if they need help recovering funds. Related stories include, “Complaints about Andrew Cordle forwarded to the FBI” and “Are you missing promised investment funds from a relationship with Andrew Cordle.” The suit charges that Cordle and Guidant Investments “employed unfair and deceptive acts or practices in violation of the Fraud Act, including but not limited to the use of fraud, false pretense, false promise, deception, misrepresentation and concealment of material facts” with regard to the following: Misrepresenting Schumacher’s future profit share from the investment properties Misrepresenting the turnaround time on the investment properties Falsely promising to maintain insurance on the investment properties Failing to account as to the use of Schumacher’s monies Withholding material information regarding the status of Schumacher’s investment Misrepresenting the status of the second and third investment properties Failing to account as to the status of the properties Misusing Schumacher’s money The suit also states that Schumacher approached Cordle in Houston in February 2014 at a Lifestyles Unlimited Expo event and was told by Cordle that “the second investment property was in the process of being rehabbed and that the funds on the third investment property would be wired back” to her. He also told her that she would receive all the profits from the second investment, not just the 50 percent. The suit was filed in late August and states that to date no rehabilitation work has been performed on the two properties, the properties remain unsold, insurance has been cancelled on the properties for non-payment and Cordle failed to provide any one-on-one consulting or other promises made when Schumacher paid the $19,997. Schumacher “has made repeated demands to Cordle and Guidant Investments for information and/or the return of her investment monies. All requests have been ignored or refused,” the suit states. The suit was filed in the Circuit Court of Cook County, Illinois, as Guidant Investments maintained an office in Chicago, but was not registered to do business in Illinois, according to the suit. The suit was filed by the Chicago law firm Messer, Stilp & Strickler, Ltd. Schumacher declined comment and referred all questions to her attorney. Efforts to reach Cordle for comment were unsuccessful.
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