Bill Bronchick, of Bronchick Consulting Group, LLC, through his Legalwiz training, and Phuongvi An “Vi” Nguyen marketed Valois Dynasty, LLC. While acting as managers of the investment, they were seeking $600K to purchase Arkansas apartments.
Bronchick’s 2010 Investment Summary said “Also involved in the investment and management of the Company will be William Bronchick, … an attorney with 20 years experience. … [His] experience is primarily being used in this transaction to review the legal issues, paperwork and advise the Company.”
Bronchick claimed this was the deal of the century and he was investing $100K. After he got the investors’ money, he only contribution $50K, and soon resold his share. He later got 2 new investors to pay $200K into the failing property. His blast email said, “I wanted to let you in on a lucrative apartment deal in Little Rock, AR. It's three buildings totaling 188 units, C class, purchased about 2.4M below appraisal. It needs a turnaround to make it profitable and cash flow, which means it needs money from investors. The game plan is to take it up to 90% occupancy, then sell in about 3-4 years for a big back-end number.”
For the first year Bronchick alleged that the entity had an accountant. This was untrue.
Bronchick held 1 annual meeting in 4 years. When members complained he said, “…the operating agreement states that annual meetings are not required, in which case holding any meeting held is a courtesy for the members. The Managers are not interested in extending that courtesy so long as the complaints and attacks continue.” The complaint was asking for a meeting.
The Summary said, “The syndicators want 25% of the equity for bringing the deal to the table. Thus, cash on cash return for investors … = 29.74%. The Seller wants an additional $400,000 … thus a cash on cash return for investors is near zero for first two years, then near 30% thereafter.” Also, “Mrs. Nguyen and Bronchick will receive a 25% interest in the Company in exchange for negotiating and syndicating the deal and agreeing to manage and oversee the onsite property manager and the income and the expenses for the Properties.”
The Summary said, “Management will enact strict tenant quality and credit review procedures to ensure the Company’s revenues will not be interrupted by tenant default.” “Average Vacancy: 10%” They refused to disclose records for the first 1.5 years which showed actual vacancy increased from 50% to 70+%, and 83% economic vacancy.
They didn’t disclose canceled property insurance or a $43,000 delinquent water bill. Their response was “Insurance company inspected the properties in early February. We have received notice that as of April 7th we are cancelled, due to our low occupancy and their assertion that over 50% of our tenants were section 8 tenants. … We are currently uninsured for replacement or loss on the property, but we still have liability and umbrella coverage. …, we hope to resolve it within the next few weeks from new capital infusions.”
The Summary said “an independent accounting firm chosen by the members will audit the files on a monthly basis for accuracy and submit monthly reports to the members of the Company.” There were no audit reports. Records and books of account were also withheld.
They originally said there were no code violations and mostly cosmetic work was needed. One member later found exterior doors missing and wild animals inside. The managers said: “All Life/Safety code items were completed, including GFIs, smoke detectors, broken windows, exposed wires … Electrical work was required due to issues preventing us from powering up building ... Water runs towards the building … causing the slab to crack and mold to grow inside. During rains other units have standing water … We have frequent issues with the old sewers.” This includes raw sewage pouring out on the property; “Many of the decks at Willow Creek need repair or replacement.
While Bronchick cashed out his interest, the property was foreclosed on 12/3/14 with a judgment for @ $4,152,299.
The investors lost their $800,000. Bronchick encouraged the investors to use IRA/ Roth funds. While he markets, “Bill Bronchick’s Bullet Proof Asset Protection System,” Bronchick failed to tell the investors that their lifetime IRA losses couldn’t be used to offset for tax purposes.
As I write this on Christmas Eve my heart breaks for more than a dozen people I know that were scammed out of their retirement money by this con artist. They misrepresented the status of the investment, their roles, their participation in the deal, the potential for return - everything. All while telling innocent people they were "mentoring" them - and charging them for the mentoring! It's like paying a thief to empty your bank account - except in this case an IRA. Coal for William Bronchick! And Vi Nguyen. Total FRAUDS.
Bronchick Consulting Group Reviews
Bill Bronchick, of Bronchick Consulting Group, LLC, through his Legalwiz training, and Phuongvi An “Vi” Nguyen marketed Valois Dynasty, LLC. While acting as managers of the investment, they were seeking $600K to purchase Arkansas apartments.
Bronchick’s 2010 Investment Summary said “Also involved in the investment and management of the Company will be William Bronchick, … an attorney with 20 years experience. … [His] experience is primarily being used in this transaction to review the legal issues, paperwork and advise the Company.”
Bronchick claimed this was the deal of the century and he was investing $100K. After he got the investors’ money, he only contribution $50K, and soon resold his share. He later got 2 new investors to pay $200K into the failing property. His blast email said, “I wanted to let you in on a lucrative apartment deal in Little Rock, AR. It's three buildings totaling 188 units, C class, purchased about 2.4M below appraisal. It needs a turnaround to make it profitable and cash flow, which means it needs money from investors. The game plan is to take it up to 90% occupancy, then sell in about 3-4 years for a big back-end number.”
For the first year Bronchick alleged that the entity had an accountant. This was untrue.
Bronchick held 1 annual meeting in 4 years. When members complained he said, “…the operating agreement states that annual meetings are not required, in which case holding any meeting held is a courtesy for the members. The Managers are not interested in extending that courtesy so long as the complaints and attacks continue.” The complaint was asking for a meeting.
The Summary said, “The syndicators want 25% of the equity for bringing the deal to the table. Thus, cash on cash return for investors … = 29.74%. The Seller wants an additional $400,000 … thus a cash on cash return for investors is near zero for first two years, then near 30% thereafter.” Also, “Mrs. Nguyen and Bronchick will receive a 25% interest in the Company in exchange for negotiating and syndicating the deal and agreeing to manage and oversee the onsite property manager and the income and the expenses for the Properties.”
The Summary said, “Management will enact strict tenant quality and credit review procedures to ensure the Company’s revenues will not be interrupted by tenant default.” “Average Vacancy: 10%” They refused to disclose records for the first 1.5 years which showed actual vacancy increased from 50% to 70+%, and 83% economic vacancy.
They didn’t disclose canceled property insurance or a $43,000 delinquent water bill. Their response was “Insurance company inspected the properties in early February. We have received notice that as of April 7th we are cancelled, due to our low occupancy and their assertion that over 50% of our tenants were section 8 tenants. … We are currently uninsured for replacement or loss on the property, but we still have liability and umbrella coverage. …, we hope to resolve it within the next few weeks from new capital infusions.”
The Summary said “an independent accounting firm chosen by the members will audit the files on a monthly basis for accuracy and submit monthly reports to the members of the Company.” There were no audit reports. Records and books of account were also withheld.
They originally said there were no code violations and mostly cosmetic work was needed. One member later found exterior doors missing and wild animals inside. The managers said: “All Life/Safety code items were completed, including GFIs, smoke detectors, broken windows, exposed wires … Electrical work was required due to issues preventing us from powering up building ... Water runs towards the building … causing the slab to crack and mold to grow inside. During rains other units have standing water … We have frequent issues with the old sewers.” This includes raw sewage pouring out on the property; “Many of the decks at Willow Creek need repair or replacement.
While Bronchick cashed out his interest, the property was foreclosed on 12/3/14 with a judgment for @ $4,152,299.
The investors lost their $800,000. Bronchick encouraged the investors to use IRA/ Roth funds. While he markets, “Bill Bronchick’s Bullet Proof Asset Protection System,” Bronchick failed to tell the investors that their lifetime IRA losses couldn’t be used to offset for tax purposes.
Bronchick SCAM
As I write this on Christmas Eve my heart breaks for more than a dozen people I know that were scammed out of their retirement money by this con artist. They misrepresented the status of the investment, their roles, their participation in the deal, the potential for return - everything. All while telling innocent people they were "mentoring" them - and charging them for the mentoring! It's like paying a thief to empty your bank account - except in this case an IRA. Coal for William Bronchick! And Vi Nguyen. Total FRAUDS.