THE SCAM:
Ephi Ullman preys on real estate developers who have lost their funding and will soon lose their properties to the lenders. Based on his excellent relationships with Top tier Euro banks, Ullmann is able to put together what he calls a “Regulated fund” that is set up in the UK and established under UK regulatory authority. You’re told that there are 21 established investors in this program. They are a combination of the largest bank and insurance company institutional in the world. Credit Suisse was the lead investor (syndicator) on the last deal they did. You’re told that Prudential, Barclays Bank, Bank Paribas and Credit Suisse are all involved in the Fund. You’re then told that this sponsor group has been doing 2 deals per month for the last couple of years. Access to the Fund submission process is not that easy and the developers need to be vetted and their first Project needs to pass muster. They assure you that based on the information you provided that yours has already made it through that filter and they are anxious to fund.

THE SOPHISTICATION:
Ephi Ullman is out of New York and claims to be working with UK legal counsel and a Surety Bond provider to put together a fund financing that is in the form of a corporate bond issued by a regulated fund. He goes onto say that the bond has a CUSIP number and is privately placed with several high profile European financial institutions that take part in the regulated fund concept. The surety wrap provider guarantees return of principal to the financial investors of the bond investment.
The fund is allowed for pre-underwritten qualified projects. The bond is in the form of a fixed rate coupon with a 5- 7 year term. The term is extendible for another 5-7 years if needed.
The Sponsors require the developing organization to post $250, 000 cash for setup costs. Setup costs are a combination of UK legal, US accounting and UK regulatory fees. You are told that the money is escrowed and no more than 10% will be spent on these items. Timing is 6 – 8 weeks and immediately upon funding the bond, first draw on the bond fund facility allows for repatriation of the $250, 000 setup costs. You transfer the money overseas.

They spend a bit of money putting together very professional looking info on your project, etc.

THE RESULTS:
Now the timing starts to get hazy. Placement within the ranks of financial institutions proves more difficult, and all of a sudden your “qualified” project becomes, well….no longer qualified. You are led on to believe that lawyers in Gibraltar (Hassans) are working out the kinks, and making sure the fund managers are reputable.

Next our project that is no longer as suitable as it once was gets placed in a basket of properties that ARE already in the process. Basically, you’re linked to another fund, and that fund merely underwrites for a larger sum. This fund is controlled by the Manager, or developer of the main development deal in the basket, so essentially your project and money are in the hands of a stranger.

Months go by, letters without corporate addresses are written from fictitious firms stating everything’s “ok”. Excuses after excuses. Claims of partnership issues arise, Ephi Ullman puts the mismanagement blame on the folks overseas, who he claims will not release our monies until their fees our paid.

Over one year later…..Money gone.

PLEASE CONTACT FBI AND SEC AUTHORITES IF APPROACHED BY Ephi Ullmann!