Police are looking for a suspect who schemed with a Morgan Hill man to defraud several victims out of a total of at least $3.5 million in a real estate scam, authorities said.
Terrence Brown, 48, and Antranik Kabajouzian, 35 of Morgan Hill – co-founders of the Bay Area Equity Group – are charged with multiple felonies including grand theft and securities fraud, according to a press release from the Santa Clara County District Attorney’s Office. They are accused of fraudulently misusing their clients’ money in a scheme that included investing unwitting clients’ money into dilapidated homes in Detroit.
Brown is currently wanted on a $3.5 million warrant, according to authorities. Kabajouzian was arrested Oct. 22 and remains in custody in lieu of $3.5 million bail.
“We are looking for more victims in this case,” prosecutor Katharina Wells said. “Unfortunately, these defendants preyed on many people with promises of unrealistic profits.”
Kabajouzian and Brown allegedly induced individuals to invest in out-of-state properties, representing that the properties were habitable, rehabilitated and occupied, the press release said. The suspects guaranteed the investors a 15 percent rate of return.
In fact, many of the properties were located in the depressed real estate market of Detroit, Mich., authorities said. The properties had not been rehabilitated. Many were empty, uninhabitable and vandalized. Some had been condemned, and title was never transferred to investors as promised. Some properties were sold simultaneously to other investors.
Anyone with information about Brown’s whereabouts can contact DA’s investigator Santiago Trejo at (408) 808-3757, or call local police.
The DA’s Office has set up a hotline dedicated to receiving criminal complaints from the public regarding Bay Area Equity Group, Brown and Kabajouzian, the press release said. The hotline number is (855) 350-7232. Callers will be instructed to leave their contact information, and DA’s office staff will follow up by contacting the callers.
