Home Builders
The Reed Group Elite Homes, LLCFind BBB Accredited Businesses in Home Builders.
Information and Alerts
Alert Details
This business has 2 alerts.
Government Actions
A Nassau County homebuilder was arrested for fraud. Customers say his company took their money and ran
A Nassau County home builder has been arrested and is facing 12 charges related to construction fraud.
Michael Chad Reed, the owner of the Reed Group Elite Homes, is charged with organized fraud, misapplication of construction funds, and grand theft. He bonded out of jail quickly after he was booked on Thursday.
The contracts between The Reed Group and their customers required a 15% deposit and had a 365-day completion deadline. Many paid well over 15% after the warrant said Reed “induced” victims to pay for additional draws before work was completed.
“After the victims paid their deposits, construction either began on their homes and then was abandoned and left unfinished, or construction never began,” investigators wrote in the report. “During the construction, Reed hired several subcontractors to complete different tasks, and it was brought to the attention of the homeowners that Reed did not pay them.” Investigators also said that there isn’t any proof Reed used the funds from his customers entirely for the construction of their homes.
In some cases, Reed also sued his clients or placed liens on their property.
The company filed for bankruptcy in February, listing dozens of local subcontractors to whom they owe money. It all adds up to more than $1.3 million in debt.
Bankruptcy
On 02/28/2024, the business filed for bankruptcy under Chapter 7 (Liquidation) of the federal Bankruptcy Act, case# 3:24-bk-00571. Those with monetary claims against the business are advised to obtain a Proof of Claim form by writing to Florida Middle Bankruptcy Court 300 N Hogan St #3-350 Jacksonville FL 32202 for resubmission to that court. The case number should be entered on the form. Claims must be submitted by 02/28/2024
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