Iowa insurance commissioner to control companies on behalf of defrauded investors
July 29, 2024 by Press Release
Iowa Insurance Commissioner Doug Ommen was appointed the receiver of Beckstone Partners, LLC (Beckstone), DesFined, LLC (DesFined), East King Management, LLC, and The Corporate Leasing Company, LLC to wind down the operation of the businesses and marshal the remaining assets for the benefit of defrauded investors in an order issued in Polk County District Court on July 8, 2024.
The order followed a petition filed by Iowa Attorney General, Brenna Bird, and the Iowa Attorney General’s office on behalf of the Iowa Insurance Commissioner on June 20, 2024 and a previous order issued in Polk County District Court on June 21, 2024 freezing the assets of the four defendants. The four companies were all formed and operated by Polk County Resident Brett Timothy Immel.
“Every day, Iowans are targeted by manipulative scams,” said Attorney General Bird. “Scammers not only hurt people’s pocketbooks, they flip Iowans’ livelihoods upside down. That’s why my office is working to support fraud victims and help people recognize the red flags of a scam before it’s too late. If you ever suspect a scam, call local law enforcement or reach out to my office. We’re here to help.”
The petition was filed after conducting an investigation into whether Beckstone and the other companies allegedly sold unregistered securities related to real estate investors. The petition alleges that Immel and the companies sold investments related to properties they did not own at the time of the sale and properties to which they never obtained a free and clear title.
The petition additionally alleges that the properties that were part of these investments were routinely sold to investors at roughly a 35% mark-up. Beckstone and Immel sold the properties to investors at this mark-up despite the fact that Immel and the defendants were using the investors own money to purchase Beckstone’s interest in the property, which Beckstone and Immel had already purportedly sold to the investor.
Immel and Beckstone/DesFined also sold promissory notes to investors; Beckstone and DesFined failed to consistently make interest payments to its investors and failed to return any of the principal owed when the promissory notes matured in March of 2024. Neither Immel nor any of the companies were licensed to sell securities; the securities offered by the defendants were also not registered.
“We are committed to holding fraudsters accountable for their actions and pursuing relief for victims of illegal scams,” said Ommen. “My advice to all Iowans who are making investments is to always double-check with the Iowa Insurance Division to make sure that both the investment is registered with our office, and that you are dealing with a licensed professional.”
As part of the receivership process, the Iowa Insurance Division has to determine what the assets and liabilities of the companies are. The principal liability of the companies will be obligations owed to investors under the various securities Beckstone and Immel sold. To that end, the Iowa Insurance Division has sent correspondence to investors to ensure that it has the full picture of what money investors provided to Immel and these companies.
Anyone who has invested with Immel or any of the companies under this order is encouraged to reach out to Jason A. Bryan with the Iowa Insurance Division at 515-654-6600 or enforcement@iid.iowa.gov.
