SEC Charges Self-Proclaimed ‘Queen of Mobile Homes’ and Three Salespeople with Fraud in Mobile Home Investment Scheme

Today, the U.S. Securities and Exchange Commission (SEC) lodged a complaint in the U.S. District Court for the Western District of Texas. The complaint accuses Outstanding Real Estate Solutions, Inc. (ORES), its CEO and founder Chimene Van Gundy, along with salespeople Michael Trofimoff, Santos Kidd, and Maria Tosta, of their involvement in an alleged fraudulent mobile home investment operation. The scheme reportedly raised around $18.5 million from at least 600 investors.

The SEC’s complaint outlines that from June 2018 to November 2021, Van Gundy, self-styled as the “Queen of Mobile Homes,” and her company, ORES, collected millions from investors under the pretense of utilizing the capital to buy, renovate, and resell mobile homes. However, the complaint claims that Van Gundy and ORES failed to possess numerous mobile homes that they asserted were purchased with investor capital. The complaint suggests that instead of employing the funds as stated, Van Gundy and ORES purportedly made Ponzi-like payments to earlier investors, disbursed concealed sales commissions, and financed Van Gundy’s personal expenses. Additionally, the complaint accuses Van Gundy, Trofimoff, Kidd, and Tosta of acting as unregistered brokers and making deceptive statements or omissions to investors during the offering and selling of ORES mobile home investments.

ORES and Van Gundy are charged in the SEC’s complaint with breaching the securities-registration stipulations of Sections 5(a) and 5(c) of the Securities Act of 1933. Moreover, the complaint levels further charges against ORES, Van Gundy, Trofimoff, and Kidd for violating the anti-fraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Tosta is also charged with violating Section 17(a)(3) of the Securities Act, while Van Gundy, Trofimoff, Kidd, and Tosta are accused of breaching the broker-registration provisions of Section 15(a) of the Exchange Act. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties against all defendants, and an officer-and-director ban against Van Gundy. Without admitting or denying the SEC’s allegations, Tosta has consented to settle her charges, agreeing to a final judgment ordering permanent injunctions, disgorgement, and pre-judgment interest amounting to $117,917.57, as well as a civil penalty of $60,000. Tosta’s settlement awaits court approval.

The SEC’s investigation is still underway, led by Kendrack Lewis and Melvin Warren of the SEC’s Fort Worth Regional Office, under the supervision of Sarah S. Mallett and Eric R. Werner. The SEC’s litigation will be directed by Matthew Gulde and overseen by B. David Fraser. The SEC extends its appreciation for the support and collaboration of the State of Hawaii Department of Commerce and Consumer Affairs, Securities Enforcement Branch.