A New York-based lending firm is facing serious allegations of exploiting Black families in Chicago, pushing them into foreclosure as part of a scheme to seize valuable land near the future site of the Obama Presidential Center on the city’s South Side.
The lawsuit, which has captured the attention of the local community, accuses the firm of using deceptive tactics to entrap inexperienced Black investors, ultimately stripping them of their homes and financial security.
The controversy centers around iFLIP Chicago, a real estate coaching company that allegedly recruited at least 20 amateur investors with promises of lucrative house-flipping opportunities. Many of these investors, eager to participate in the booming real estate market, were drawn in by the company’s assurances of comprehensive support.
Ameera Haamid, one of the investors, recalls being told that iFLIP would handle every aspect of the process.
“[iFLIP] had a team that’s already built to assist you through the process. So they will locate the property for you. They will put you in touch with the lending company, provide financing,” Haamid said.
However, the reality proved to be far from what was promised. According to the lawsuit, after securing loans through Roc360, investors found themselves burdened with hefty default interest fees, even after making timely payments.
For some, the financial strain became unbearable, leading to foreclosure and leaving them in a precarious financial position.
Tatianna Barnett, a Chicago realtor who also invested through iFLIP, described the devastating impact of the firm’s actions. “We have no idea where the money is. I have lost $169,000. I have a lender that’s saying ‘I’m not going to give you this money…your money’s gone,” Barnett told NBC 5.
The lawsuit alleges that the loan agreements forced on these investors allowed the lender to withdraw funds from their accounts to cover any perceived late fees or defaults on other loans, creating a cycle of debt that was nearly impossible to escape.
Furthermore, Ramo Bey, the owner of iFLIP Chicago, is accused of using these real estate contracts to transfer his own debt onto the investors, further exacerbating their financial woes.
Attorney Alex Loftus, who is representing nearly 20 iFLIP investors, argues that the real culprit behind the financial ruin is Roc360 Capital. “This is a big venture firm in New York taking advantage of the little guys in Chicago,” Loftus said. “I think from the perspective of the folks in New York, if you have this group of African Americans doing business on the South Side of Chicago, that’s an easy group to take some risks with.”
The lawsuit paints a grim picture of the predatory practices allegedly employed by Roc360, suggesting that the firm saw an opportunity to profit by preying on inexperienced investors in a predominantly Black community. The implications of this case are far-reaching, particularly given the location of the properties involved—just steps away from the highly anticipated Obama Presidential Center.
For Roc360’s part, the firm has denied any wrongdoing. In a statement provided to NBC 5, the company said, “Roc360 has, at all times, acted in good faith and fully complied with the terms of the commercial loan documents signed by the borrowers. Roc360 does not and has never funded consumer loans—all its loans are to companies. Each borrower signs a business purpose affidavit.”
The firm further stated: “The plaintiffs in the instant action were represented by counsel and should have been aware of the terms of the loans they were agreeing to. Roc 360’s fees were fully disclosed on the closing statement, and the plaintiffs were under no obligation to proceed with the loan. Roc 360’s fees are fully in line with industry norms.”
As the lawsuit unfolds, the case is shedding light on the broader issue of predatory lending practices and the vulnerability of marginalized communities in real estate transactions.
For the families involved, the fight for justice is about more than just reclaiming lost money—it’s about standing up against what they see as a systematic effort to exploit their community.
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