Florida authorities are searching for a man who they say scammed residents out of nearly $6 million.
Jacksonville resident Cedric Dewayne Griffin, 47, is accused of selling real estate promissory notes to members of the Black community, authorities say. But instead of investing the money he earned into real estate, he allegedly pocketed it.
According to the Securities and Exchange Commission, Griffin defrauded at least 103 investors in Jacksonville and elsewhere out of at least $5,895,024.
The SEC's complaint alleges that from at least January 2020 to December 2021, Griffin lured individuals into investing in promissory notes issued by two of his companies, G8 Equity LLC and G8 RE Capital LLC, promising investors high monthly returns ranging from 10% to 33%. Griffin sold a total of at least 546 promissory notes to investors, according to the SEC.
"To locate potential investors, Griffin relied on word of mouth within
the local Jacksonville, Florida community and his church," the SEC said. "Griffin solicited prospective investors from at least seven states, including Georgia, North Carolina, New Jersey, New York, South Carolina, and Virginia, but the majority of investors were from Jacksonville, Florida and were African-American."
Griffin allegedly represented to investors that he would use their money to purchase, rehabilitate, and resell real estate for a profit, and provide investors monthly returns from those profits.
"This was false. Griffin did not purchase any real estate," the SEC said. "Instead, Griffin used investor funds to line his own pockets and to pay prior investors their purported investment returns in Ponzi-like fashion."
The SEC said Griffin bamboozled investors who were interested in passive investments by assuring them he had 20 years experience buying and selling real estate, that he was able to make a profit reselling homes quickly and that's how he could pay investors high monthly returns. He told investors he would use their funds exclusively to purchase homes at wholesale prices and sell the homes within 45 days for more than what he paid for them, thereby generating investment returns in a practice commonly referred to as
"flipping properties," the SEC said.
"Griffin's representations to investors about the use of investor funds
were false," according to the SEC's complaint. "From no later than July 23, 2021 until at least December 17, 2021, Griffin used at least $3,950,000 of investor money to repay other investors their purported investment returns."
The SEC said Griffin also used investor funds for personal expenses, including payments to luxury retailers, jewelry stores, church donations and living expenses.
In March 2022, the Jacksonville State Attorney's Office charged Griffin
with three counts of grand theft in connection with his real estate business. A court date was scheduled for earlier this month, but Griffin never showed.
Additionally, the SEC has filed a federal lawsuit against Griffin, alleging six counts of fraud.
Griffin remains at large. Police in Jacksonville are asking anyone who knows where Griffin is to give them a call.
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