How I lost 30k in one day by getting fooled by a con artist

[Pavel Sakurets]

We had a commercial property listed for sale or rent at 809 Main St Hopkins, MN.

I showed it to Phillip (Blain) Bundy, he liked it and said that he wanted to purchase it on rent to own option and asked me to reduce rent from $3500/month to $2000 for the first three months, in return, he would remove some old magazines and catalogs that were in the building and some other minor junk.

He offered to me, none refundable option fee of 20k, that I accepted.

Everything was subject to conducting a due diligence and him providing his tax returns.

On the day when we had to execute the contract, he said that he had some issues with his bank ( this is what he said), but he brought me an Iphone 6 which I took from him as a down payment and said that he would bring me a set of stainless steel appliances to one of my houses, because he got new appliances on auction and he could sell them to me at discounted price (30%) which I agreed, since I had to pay 2k for appliances anyway.

I trusted him, we signed the lease in front of the notary and I gave him keys.

Two weeks later, I still have not received my option fee of 10k or rent, or appliances...

One time when he was delivering appliances the fridge tipped over the stove and bent it (this is what Phillip has told me). And I believed it... and agreed to wait until I get a new set.

Meanwhile I had to put that house on the market and 4 weeks later from all appliances that I supposed to get, I got only a dishwasher for $200 from Phillip.

During all this time Phillip was telling me that he knew owners of Menards, regional Home Depot's managers where he could get a returned merchandize at 30 cents on the dollar and he could sell me Hoedepot gift cards at 60 cents on the dollar. Which I though, was a win-win scenario for me and him, since my workers spend 20-30k per month on building materials and they might as well save money by using Home Depot's gift card that I could buy from Phillip at a discount. So, I gave him my credit card so he could charge it and pay me rent with Home Depot cards. In one week he charged 30k on my credit card and gave me Home Depot gift cards. I was very happy, because I thought I saved at least 20-30K on my future purchases of building materials.

I gave these gift cards to my workers, so they could start using them right away.

To my surprise, 3 of my workers called me the same day when I gave them the cards and said that 3 HD cards that I gave them had 22 cents, $1.20, and $0.75 cents. Of course I called Phillip (Blain) Bundy and he assured me that it was a mistake and said that funds will be back on Home Depot cards in a few days.

A week later, nothing was added to those cards. I called visa and filed a fraud claim and ''big thank you to them'' that they refunded me the whole amount.

We are approaching 1.5 month Phillip being in my building and he only paid me $200 by selling me a dishwasher and $225 by selling me an Iphone.

I told Phillip that I didn't feel right about the whole situation and I needed to get the rent from him ASAP, he agreed to meet me at the gas station and bring me cash.

First time he didn't show up, second time he came but said that his sales people didn't bring him enough cash that day to pay for rent and offered to pay me through PayPal and sent me a confirmation number that the payment has been made.

Finally I felt well, even though Paypal said that the funds would be available only in 10 business day. On 11th business day I saw the funds,

but on the 12th business days the payment was cancelled. I called Blain and he explained that there was a mistake with his Discover card and he would call Discover and funds would become available again.

To my surprise, funds did become available in a several days and I transferred them to my checking account. Phill only owed me for one month, plus option fee, 12k, so no big deal I thought, he would pay me, because he moved all his stuff in my building.

But several days later, I received a letter from Pay Pal that funds got cancelled again and my account was 2k negative.

Only after 1.5 month I realized that I was dealing with a professional cone artist.

I filed for an eviction, he didn't show up in court, we changed the locks, kept all his ''junk'' in my building for 30 days and then I hired movers who removed it for 1k.

Damage: lost rent and utilities for 3 months 8k, attorneys and eviction fees 1k, 1k to movers, (potential option fee of 20k), plus my time.

I learned a very good lesson, if a tenant or buyer can't provide you with their financials, there is something wrong. Phillip has told me that he shows loss on his tax returns for last 20 years because he had a huge business with China 20 years ago and he lost it over 1M, that's why he was writing the loss off every year and he had not to pay any taxes because of that loss:-)

Thank you very much, Phillip Bundy for this lesson!!!

By the way he is from Eau Claire, WI, about 46 years old in 2015