Case Study 15000 Composit

This letter is in reference to the $15000 deposit that Shawn DiBella and Brian Hartley (HartZito Properties LLC members) made to Global Capital Group during the process of securing financing for and ownership of property on Sigourney Street in Hartford, Connecticut.

As you are well aware, we provided that escrow/title deposit ONLY after verbal and written assurances by Carl Cherchie that this deposit was fully refundable if the deal did not close. We sent this $15000 deposit check via overnight/express mail on May 9th, 2007. We notified Carl Cherchie on May 24, 2007 that this deal was now impossible because 1) the seller became uncomfortable and unwilling to do the seller financing in the manner required by Carl Cherchie and your firm to obtain us the necessary financing terms, and 2) Carl Cherchie indicated to us that the best terms possible, considering that the seller was not willing to physically loan us the funds PRIOR to closing, was a rate in the mid-7% range. These terms were not acceptable according to our investment criteria and made the deal impossible to pursue further. At this point the seller is pursuing other offers from other buyers. We had every intention of pursuing this deal to completion IF satisfactory financing was obtainable.

As of the date of this

We have also consulted local counsel and have begun the process of securing counsel in California to pursue this matter further – if that step becomes necessary. It should also be noted that the specific structure of the loan and seller financing (as suggested by Carl Cherchie and James Pechulis) might very well be seen as encouraging fraud in the eyes of the regulatory bodies mentioned