Cabot Investment Properties Under Investigation

Posted on July 29th, 2015 at 9:01 AM
Cabot Investment Properties Under Investigation

From the Desk of Jim Eccleston at Eccleston Law LLC:

Timothy J. Kroll and business partner Carlton P. Cabot were arrested for allegedly defrauding investors in various Cabot Investment Properties LLC-sponsored real estate investments.

The men allegedly defrauded investors by taking funds belonging to tenants-in-common investments and providing false financial reports to investors to conceal their illegal actions.

The two are accused of misappropriating over $17 million. According to the U.S. Attorney’s Office, the money was used for expensive cars, apartments, and private schools.

While Cabot Investment Properties LLC legally was allowed to collect “excess” income from TIC investments, the two allegedly transferred funds from the bank accounts before the money could be used for expenses and disbursements among the investors. In 2012, when Cabot Investment Properties LLC folded, Kroll and Cabot owed the $17 million to TIC investments. Investors also lost $240 million in their overall principal investment in the company.

Kroll and Cabot have since been released on a $1 million bond, but face a maximum prison sentence of five to 20 years.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law, Cabot Investment Properties,

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