Arizona Corporation Commission Press Release – May 2019
PROMISSORY NOTE INVESTORS DEFRAUDED IN $27.67 MILLION MEXICAN REAL ESTATE PROJECT by Daniel C. Butterfield, AZ Investment Property Experts, LLC and Sandy Beach Esmeralda Development, LLC
The Commission ordered Daniel C. Butterfield of Phoenix and his affiliated companies to pay a total of $27.67 million in restitution and $125,000 in administrative penalties for defrauding investors with promissory notes funding a Mexican real estate project.
The Commission found that the companies promoted the real estate investment to at least 136 investors, including through advertisements on a Phoenix-area radio station and with seminars. The Commission found, however, that AZ Investment Property Experts, LLC failed to disclose that it had no ownership interest in the Mexican real estate project.
Additionally, the Commission found that Butterfield and his affiliated companies failed to inform investors of the previous revocation of Butterfield's real estate license in Minnesota based upon fraud allegations and to disclose the risks of promissory notes funding foreign real estate investments.
In settling this matter, the respondents agreed to the entry of the consent order and admitted to the Commission's findings only for purposes of the administrative proceeding.
For more details on this case, view the full text of the Corporation Commission's order S-21043A-18-0069.
LINK to Order -