Housing scam sends victim into hiding

Apr 17, 2011 News

– Claims police are unwilling to pursue reports of death threats

By Rabindra Rooplall

A young man caught in the web of a housing fraud is appealing to the police to investigate a swindler who reportedly robbed several persons, by promising them their own house lot at Sarah Johanna, East Bank Demerara (EBD) that was to be developed with their desired house.
According to Mohamed Deen, of La Jalousie, West Coast Demerara, he made a contract with a man who claimed to be capable of providing house lots for persons desirous of building their own homes.
He said the man goes by the name, Fazil Arzan, and he resides in Canal Number Two, West Bank Demerara.
The frustrated Deen said on July 20, 2009, he signed a contract with Fazil Arzan that entails that he receive a house lot at Sarah Johanna, East Bank Demerara, and a two-bedroom flat concrete house would be built on the plot of land.
Deen explained that he handed over $400,000 and signed a contract together with two witnesses; however, the deal was that Arzan was to solicit the bank’s assistance in obtaining a $5M loan which he would accept for the house lot.
Nevertheless, Deen enthusiastically agreed and waited for the process to begin. He said that on several occasions he visited the proposed site for the house lot, but Arzan procrastinated and told him that persons were squatting on the land and that he had to get them off to start construction, which never happened.
Mohamed recounted that he is also in the construction business and was employed by Arzan for three weeks while he was building two flat houses in Sarah Johanna, East Bank Demerara but the construction for both houses abruptly stopped and he eventually found employment elsewhere.
“I believe in this man plan because I did see him building two places there. Until now the houses ain’t done. When I ask him to see the title for the plot of land he always giving excuses. Now there are five unfinished flat houses that people can’t live in.”
Adding that as the months grew into years, Deen said that most of the time when he would try contacting Arzan, the man’s cell phone would be switched off and the call would be forwarded to voicemail. However, when he recently called Arzan answered, “He say Mohamed, let me tell you something if you want your f!@#ing money, you come by me and get your money and let me put a bullet in your mouth’ and he hang up.”
“Then I called back. He then tell me if I want to show off myself he gon pass by me with couple men.”
Adding that he then visited the Brickdam Police station, Deen said that he was told to visit the Eve-Leary Police Station with his complaint. He said that he did that but was however told to return to Brickdam and lodge his complaint.
The frustrated Mohammed said that he then visited the Wales Police Station and made a report, since Arzan lives not too far from the Clay Brick Factory in Canal Number Two, West Bank Demerara.
“This man come by the house where I am staying with my relatives with a carload of men in La Jalousie. I made a dash back in the house. I can’t live there anymore and I am scared…The Wales police say if Brickdam give them a call and tell them to apprehend the man they will do that.
“Now if I got to make a report that a man want to kill me I got to wait until higher authority say something or they gon wait till the man done shoot me and kill me.”
According to Mohammed, the perpetrator is about 60 years old and it appears as if the law enforcement officers are reluctant in carrying out their duties and to assist the persons that are taken advantage of in the country.
“The police claim that they ain’t know where the man lives. Now I tell them I will follow them and show dem where he lives. The police tell me, suppose them ain’t find the man what them gon do then. I didn’t know this thing turn a 50/50 thing now when you go to the police station to make a complaint. This is the type of police we got to deal with.”
The irate Deen said that while he was working with Arzan he heard the man on the phone talking about the millions of dollars that he collected from persons. He is now certain that those unsuspecting victims were unaware of the type of fraudulent activities that Arzan perpetrated while masquerading as a housing developer.
Investigations by this publication revealed that Fazil Arzan in 2009 promised to build 2,600 state-of-the-art homes at Friendship Mews, and Sara Johanna Gardens. And the gated community that was to be set up on the East Bank Demerara was slated for completion in three years’ time which suppose to be in 2012.
It was also disclosed that Fazil Arzan is the Chief Executive Officer of Umana Developments Company, and was supposed to build 100 acres of land to accommodate 600 homes, while the Friendship community will sit on 200 acres of land and will have 2,000 homes.
At that time the cheapest house was touted to cost $4.6 million while the cheapest house at Friendship would cost $9 million; the prices were already inclusive of VAT.
Clients were promised that the Umana Development Company would provide assistance in acquiring loans from the New Building Society (NBS) and Scotia Bank at payback rates of 7.6 per cent per annum. Insurance was to be provided by Apex Insurance Company.
Several other persons who requested anonymity said that Arzan told them that they should grab the offer before it’s too late. They paid over their money but the houses were never completed as he gave excuses about finishing their respective projects.
When this publication tried contacting Fazil Arzan on several occasions on his cell phone,671-5468, the phone was always turned off and it kept forwarding to voice mail. However, it was revealed that he had an office on Carmichael Street and later moved out to Sandy Babb Street Kitty which is also closed.
This publication was made to understand that Arzan rents the clay brick factory in Canal Number Two from the Neighbourhood Democratic Council (NDC), and when a visit was made to the site yesterday persons disclosed that Fazil Arzan was not in office at the time and was unable to say when he would return.
Two other clients that were also involved in the fraud were Tajewattite Raghubeer, and overseas-based Guyanese Drupattie Gravious.
Gravious, of Flushing, New York, deposited the equivalent of $1 million into Umana Development’s bank account as down payment. She too wants her money back but is unable to contact the developer.

Mohamed Deen

Raghubeer said she wanted a property at Sarah Johanna Gardens, East Bank Demerara. The property was going to cost $5 million. She was told she would need to deposit $500,000 so that the company could help her start a loan application at the New Building Society.
She deposited $300,000 in February, 2009 and signed a contract for Umana Developments to build her a two-bedroom house. Then she made two further payments of $100,000 each.
Once this was done, she said that she kept calling the company for further details about the progress of the project, but was constantly told to wait.
When Raghubeer’s frustration reached its limit, she told the company to cancel her contract and return her money. She said the company agreed but kept delaying. When she threatened to take the matter further, an official of the company called to say that it was restarting operations.
Raghubeer was not interested and still insisted that she wanted her money back. The company promised to pay back, but since she has been unable to contact the owner of the company.