I invested a large amount of money to purchase a property in California.
The "buyer" (not me) entered escrow with the seller stating that he and a partner (developer) were going to buy the 5,000 acres and develop it. The buyer then went around trying to raise money from unknown investors to meet escrow requirements, and most of the unknown "investors" deposited the money directly into escrow. The buyer lied to seller (by not informing her that he was raising money through unknown people) and lied to many investors about facts of sale and repayment or terms of investment (which I believe violate SEC rules). The seller received 2/3 of the money through escrow (aprox 2 million)..and the buyer kept 1/3 that was given directly to him by some investors (approx. 1 million). The deal fell out of escrow, and the seller is stating that she can keep the money because it was option money and valid through escrow contract. Buyer has since disappeared. I have been told I cannot win in civil court because the contract was valid. But I feel the buyer was a fraud. I do not believe he had real intention (or ability) to purchase property and opened escrow with only the appearance that he intended to, but really defrauded everyone and basically stole 1 million. What is the appropriate course of action? File a criminal complaint against buyer...and seller has to return money because she has "received stolen property"?
The "buyer" (not me) entered escrow with the seller stating that he and a partner (developer) were going to buy the 5,000 acres and develop it. The buyer then went around trying to raise money from unknown investors to meet escrow requirements, and most of the unknown "investors" deposited the money directly into escrow. The buyer lied to seller (by not informing her that he was raising money through unknown people) and lied to many investors about facts of sale and repayment or terms of investment (which I believe violate SEC rules). The seller received 2/3 of the money through escrow (aprox 2 million)..and the buyer kept 1/3 that was given directly to him by some investors (approx. 1 million). The deal fell out of escrow, and the seller is stating that she can keep the money because it was option money and valid through escrow contract. Buyer has since disappeared. I have been told I cannot win in civil court because the contract was valid. But I feel the buyer was a fraud. I do not believe he had real intention (or ability) to purchase property and opened escrow with only the appearance that he intended to, but really defrauded everyone and basically stole 1 million. What is the appropriate course of action? File a criminal complaint against buyer...and seller has to return money because she has "received stolen property"?
