Office of Citizen
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Con Artist Gus Frangos ( President of Cuyahoga County Land Bank) + Con Artist Safeguard Properties = ORGANIZED CRIME
Submitted by Lily M. on Tue, 03/05/2013 - 19:46.
The City of Cleveland has announced major plans for the Slavic Village area in Cleveland, Ohio.
The county land bank will team up with Safeguard Properties, Forest City Enterprises, Neighborhood Progress, and Slavic Village Development to create Slavic Village Recovery LLC.
According to the Plain Dealer, Neighborhood Progress and Slavic Village Development expect to sign an operating agreement this week with Forest City and Robert Klein, Safeguard's founder and chairman. The nonprofits each will own 10 percent of Slavic Village Recovery LLC, with the rest split between Forest City and Klein's RIK Enterprises LLC.
Slavic Village Recovery intends to acquire 50 vacant houses in the Slavic Village area - and could tackle HUNDREDS more- with the intention of acquiring the property for free and then renting or selling the property.
Klein believes lenders will give away those troubled houses, starting in Slavic Village, to get the burden off their books.
Klein's goal: Get a house for free or for very little money. Invest $40,000 to $50,000 in renovations, using Safeguard's national network of contractors to lower the cost. Then sell the house for $60,000, turning a small profit and providing affordable housing in a city neighborhood.
Slavic Village Recovery LLC will also work with the county's land bank to acquire some of the property that the land bank has hoarded for such an occasion.
Safeguard Properties should have no problem lowering the cost by using their own contractors since they don't like paying their contractors after the work was performed. Safeguard Properties is well known across the country for ripping off their contractors after their work was completed.
I investigated Safeguard Properties for years and this company has received more complaints than any other company that I am aware of. Contractors across the country have resorted to creating their own websites to complain and spread the word about Safeguard Properties con game:
A few of the MANY websites can be found here http://www.ripoffreport.com/directory/safeguard-properties.aspx here http://www.complaintsboard.com/complaints/safeguard-properties-c265331.html and here https://www.facebook.com/pages/Anti-Safeguard-Properties/119559144758948
If you google 'Safeguard Properties Complaints Lawsuits" you will find hundreds and hundreds of complaints and lawsuits.
Another major complaint regarding Safeguard Properties is with contractors entering occupied homes that are in the beginning stages of foreclosure. Contractors are hired in an attempt to secure these properties and protect the mortgage holder's interest.
Property owners across the country come home to their still LEGALLY owned and occupied homes , only to find locks changed and personal items stolen. No foreclosure was even granted in court. Some homeowners were completely wiped out by these thieves. THOUSANDS of property owners have complained about this issue.
Safeguard has been working with the county land bank for years and has received tons of federal funds. It is no surprise to read about the County Land Bank's willingness to give this company property that the county land bank has hoarded from other possible investors. Again, another selective beneficiary of taxpayer property.
Meanwhile, Gus Frangos - President of the County Land Bank - has engaged in very suspicious activity regarding real estate in Cuyahoga County. It is my opinion that Gus Frangos has engaged in MORTGAGE FRAUD.
Gus Frangos has purchased property in his own name, transferred the property into numerous self-created LLCs, received large sums of money via mortgages, failed to pay his property taxes, collected rent money, and then he failed to pay the mortgage. I believe that Gus Frangos had no intention of ever paying the mortgage and hid the property behind the self-created LLC while collecting rent money.
Gus Frangos has several foreclosure cases filed against him and his self-created LLCs. One property tax foreclosure regarding property located at 1158 East 61st Street and owned by Gus Frangos' self-created LLC ( 1158 East 61 LLC) was recently foreclosed upon and will soon go to sheriff foreclosure sale.
It is interesting to note that the mortgage in the amount of $175,000 (documented below) was never released by National City Bank. I searched high and low to find the mortgage release relative to this property and came up empty handed. National City Bank was also served a copy of the foreclosure decision- which backs up my research since National City was served court documents- meaning they have an interest in this property- the loan was NOT repaid:
Despite collecting rental income for years, the large loan and delinquent property taxes in the amount of $17,220.24 were never paid.
However, the collection of rent money continued. And if the renters failed to timely pay their rent, there were consequences. Numerous evictions were filed relative to this property:
Ladon Ruffin was named as an agent for Gus Frangos' self-created LLCs. Ruffin swore under oath- under the pains and penalties of PERJURY- that Gus Frangos hired him to collect and hand over rent money for several rent generating LLC properties:
This property is NOT worth $175,000 ( the loan amount) and never was:
According to county records, 1158 East 61 owes $17,220.24 in delinquent property taxes.
NO tax lien was ever sold to a predatory tax collector- despite those in charge of selling out others for delinquent property taxes were selectively nickle and diming others- who owed much less money. The County Treasurer's office - were Gus Frangos was previously employed -was in charge of selling out folks to predatory tax collectors and taking the property of other delinquent property tax payers via tax lien sales. The county treasurer's office was able to pick and choose which property owner to sell to the predators:
Tax Lien Certificate Sales
The Treasurer’s Office has full discretion to select and remove certified delinquent parcels from the Tax Certificate Sale.
The Treasurer’s Office is the statutory administrator of the Tax Lien Certificate Program and will receive all forms of redemption payments and will generate all statutory and pertinent correspondence. http://treasurer.cuyahogacounty.us/en-US/tax-lien-certificate.aspx
They overlooked this one and several other of Gus Frangos' self-created LLCs:
And GUS FRANGOS is the person who created legislation for the tax lien sales- of all the nerve:
Gus Frangos was the primary drafter of Ohio’s House Bill 294 and S.B. 353 establishing enhanced-capacity County Land Banks, and expedited administrative tax foreclosure policy.
In September 2004, Mr. Frangos was retained by the Cuyahoga County Treasurer to craft legislation to help expedite the tax foreclosure process, specifically on vacant and abandoned properties.
County and city officials, and others have ignored my complaint made in August 2012 regarding Gus Frangos and his highly suspicious property transactions. They can not say they were not warned when I take my complaint further down the road.
It is a major conflict of interest to have the PRESIDENT OF THE COUNTY LANDBANK engaging in such activity that has resulted in unpaid delinquent property taxes and foreclosures.
And giving property to Safeguard Properties is another scam- at taxpayer's expense.
READ more on Gus Frangos and his con game here http://realneo.us/content/gus-frangos-president-cuyahoga-county-land-bank-con-artist-jesus
Connecting dots and tons of LLC's, and then finding this TEN MILLION DOLLAR dot is just a bit concerning:
* My blogs expressing my Freedom of Speech Rights, especially on matters of public concern, are my opinion and not the opinion of my friends, family or employer*
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