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Thursday, January 2, 2014


Less than two months after being unceremoniously booted out of Battle Creek's historic Fell Mansion at 200 Wahwahtaysee Way after a land contract forfeiture action was filed against her and her erstwhile fiance Robert Buckhannon on August 29, Kelly Demoss pulled together a down payment and a new mortgage and moved into a new home she purchased in the same neighborhood. 

And although she and Buckhannon reportedly spent the interim bunking at a local hotel after being bounced from the Fell Mansion for non-payment, official Calhoun County records show Demoss financed the $172,000 purchase of the formerly vacant home from Bank of America with a $137,600 Amerifirst Financial mortgage.

Miss Fortune was not a math major, but calculating a down payment, closing costs, and property registration fees still leaves a gap of roughly $40,000. Wondering where the money came from? So am I.

But more about the new house.

Located at 224 Wahwahtaysee Way, the home is a step down from the large home Demoss shared with Buckhannon for nearly 18 months.

Shown in a photo at left, Demoss' former home was originally acquired by Robert Buckhannon on April 16, 2012 and financed with a land contract. However, on October 1, 2012, Buckhannon filed a quit claim deed, granting the property solely to Demoss.

A bit of background about Robert Buckhannon, for those who are just joining this movie midway through the first reel:
In 2010, Buckhannon agreed to pay nearly $1.5 million to settle a federal complaint that he participated in a $34 million investment fraud victimizing hedge fund investors.

The Securities and Exchange Commission filed suit in federal court in Tampa, Florida, against Buckhannon, and codefendants involved with two now-defunct Bradenton-based hedge funds, Arcanum Equity Fund LLC and Vestium Equity Fund LLC.

The SEC said the funds, which worked with investment advisor Imperium Investment Advisors LLC (run by Chris Paganes), told investors they would earn handsome profits through conservative investments. Instead, much of the money was misappropriated, the SEC alleged in its lawsuit.

The defendants from early 2008 through April 2010 "commingled investor money from three separate offerings and then looted and bankrupted the hedge funds by steering millions of dollars to themselves,'' the lawsuit alleged.

For example, the SEC said Buckhannon was involved in deal to steer $6 million in investor money to Shea Mining and Milling LLC for a project called the "Tonopah Mine.'' Buckhannon, however, didn't disclose he had a conflict of interest because he was a founder of Shea Mining and planned to enter into an employment contract with Shea and receive a share of the firm's revenue, the SEC alleged. 
The SEC also complained Buckhannon funneled at least $390,000 of investor money to himself, his father, two brothers, his fiance's cousin and a friend. The SEC said in August 2008 he wired $60,000 out of a fund account to a jewelry store for the purchase of an engagement ring for his fiance and in July 2009 he wired another $80,000 to a title company for the down payment on a Las Vegas home.

Now back to the real story--the money!

Is it possible that the "hard money" mortgage deal Demoss signed on October 8 had anything to do with her sudden rush to become a homeowner?

Would the fact that she, in her capacity as the "Managing Member" of the On Deck Sports Bar and Grill, just borrowed $456,000 have been the reason she could buy a home--when less than a few weeks before couldn't pay her land contract?

Just sayin'.


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