Business

Bolingbrook developer sued in scheme

Posted June 07, 2010 11:00 pm

Attorney General Lisa Madigan filed a lawsuit in Cook County Circuit Court against a Bolingbrook real estate developer for allegedly operating a fraudulent investment scheme in which the developer secures personal loans from his investors but fails to complete services for which he is contracted.

Madigan's lawsuit names Richard Calloway, and the companies that he operates: R.E.C. Real Estate Development Group, E.C. Enterprises of Chicagoland, Neighborhood Housing Development of Chicagoland, are all based in Bolingbrook.

Calloway allegedly charges consumers a $5,000 fee for help in locating, purchasing, rehabbing and selling investment properties but fails to provide the promised services and instead uses his client relationships to secure personal loans that he rarely repays. Despite promising to repay the loans with interest, Calloway fails to repay most of his investors, according to Madigan's complaint.

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