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Investors looking for millions lost after real estate company collapse

According to the Epic Alliance, LaFlame & Thompson had 504 properties in Saskatoon and North Battleford, worth a total of $126 million before the separation.

He had established and run three primary businesses.

One business was a loan program whereby people gave Epic anywhere from $50,000 to $500,000 in exchange for a one-page promissory note; The notes indicated that interest rates varied from 15% to 20%. Through another business called “Fund-a-Flip,” buyers will buy homes through Epic, make improvements and upgrades, and sell for a profit.

Finally, its “hassle-free homeowner program” invited investors — mostly from out-of-province — to purchase homes acquired by Epic through the Fund-a-Flip program. With the promise of a 15% guaranteed rate of return, investors mortgaged the home they bought, while Epic took responsibility for finding tenants, maintaining the property, and other aspects of management.

The promissory note program attracted the attention of the Financial Consumer Affairs Authority of Saskatchewan (FCAA). It noted that Epic Alliance and its owners were purporting advice and information about investing in securities, including real estate investments and promissory notes, without ever registering as a dealer or advisor.

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