Homestead Investments

Posted on Tuesday, September 27th, 2005 at 12:00am CDT by 395d97bf

Company: Homestead Investments

Category: Other

Homestead Investments

September 26, 2005

Homestead Company

6929-75th Str.

Kenosha, WI 53142 My complaint is against a company that no longer exists, Homestead Investments in Kenosha, WI. There are lessons I've learned however, that can benefit others. Homestead Investments was started by Kenneth Hackbarth. I met him through his son, Mark, with whom I had become good friends. The idea was simple, give him a minimum of $30,000 for a period of at least three years and he would invest that money in real estate. You would earn 15% interest a year on your principal. One small problem, it was all a lie. Both Ken, and Mark, who worked for his father the last five years, said they owned various buildings including the one in which they had their office. It was all a Ponzi scheme. The money they received was either given to their church, Assembly of God, or it was used to pay off previous investors. After 15 years it finally collapsed when they couldn't make payments to their investors, someone complained and the F.B.I. began investigating. 117 people lost a total of 6.3 million dollars, a million of which had been given to their church. Ken is now serving a ten-year sentence in a federal prison in Indiana. Mark meanwhile, despite working for his father the last five years, denied knowing anything. The things he told me were very different than what he told the F.B.I. He also was aware of what his father was saying as he asked me that night to tell him what his father told me. At a meeting that they held for victims the authorities refused to even discuss Mark. Mark was never charged with anything. I did some research the last time I was home and he has been named on four civil suits. There are lessons here. First, trust no one. Ken was a lifelong, retired, Kenosha resident. He was married to a retired school teacher and had raised four children. He was an usher at his Assembly of God church and respected by many. A number of the victims were fellow church members. At the time of the collapse I had known his son Mark for 17 years, spending countless hours with him. So this wasn't a case of trusting an unfamiliar source. They were perfect examples of wolves in sheep's clothing. Second, I was shown a check by Ken made out for $20,000 to his church. But nowhere in his prospectus did it say that the church would get a set percentage of the profits. This should have raised a red flag, but they were after all, long time friends! Finally, I knew from researching local ponds to fish, that all you had to do was get an address and the property appraiser's office could tell you who the owner was. A simple trip down there with the address of the office building which they said they owned, just to verify what I was being told, would have stopped me in my tracks before I wrote them a big, fat check! Never take anything at face value, always verify no matter how familiar you may be with the people in the firm. Hopefully my loss will save someone else. A simple Google search under "Kenneth Hackbarth" should turn up newspaper articles for further research which will confirm

what I've said. Paul Click this link to e-mail the message author: COMPLAINTS.COM_FORM_MAIL_58105#


1 Comment

e5981c50, 2008-04-22, 11:15AM CDT

April 22, 2008

RE: Homestead Investment Company

Dear Author,

JK Harris / 165 Services, LLC a specialty tax consulting firm which concentrates its entire business on assembling the required analysis and documentation for tax return preparers in order to substantiate tax deductions under 165(c)(2).

I have information regarding how IRC 165 (c)(2) may help you realize substantial tax refunds associated with investment losses that you may have suffered with Kenneth Hackbarth. Due to the circumstances surrounding the unrecoverable investment losses, you may be entitled to take an immediate dollar-for-dollar write-off against taxable ordinary earned income. The result is either a substantial reduction in tax liability or a significant refund from prior years taxes.

By working with you and your CPA we can identify the eligibility for this deduction and assemble all of the required documentation needed to support your claim to the IRS. Instead of taking a loss as a capital loss at the current rate of $3000 per year, you may be able to use the loss to reduce your ordinary taxable income, which may be taxed at rates up to 35 percent. You may also be able to recapture taxes paid in previous years, at even higher rates, and avoid future taxes. Additionally, legal fees incurred in pursuit of your losses have been held to be deductible as well.

To discuss the specific circumstances surrounding your investment losses, I can be reached directly at 1.800.830.7617 Ext. 240 or email address [email protected] You may also visit our web site www.165services.com, for more detailed information about our services. We look forward to assisting you with the same trust and professionalism that has helped injured investors claim millions in tax benefits.

Respectfully,

Joe Jelks

Fraud Consultant

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