Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:08/15/2024

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I INVESTED $15,000 WITH THIS COMPANY 2 MO AGO AND STILL HAVE NOT SEEN ANY RETURNS ON MY INVESTMENT. ***** ANSWERS TO PHONE WHEN CALLING, ONLY RECORDED messages.

  

  Business Response

  Date: 08/15/2024

  ********************, you may call ************, ask for *** and he can help you.

   

• Initial Complaint

  Date:08/13/2024

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I have written an official letter to ****************** of Phoenix American REIT asking to liquidate my assets and return my money on July 15, 2024. As of today, I have not heard anything from **************** in this request. I would like **************** to reply and send me my liquidated assets and funds to my bank as shown in my profile or to my home address on file. My Order# **********.My email is: ********************* Thank you.

  

  Business Response

  Date: 08/14/2024

  The investor agreed to the terms and conditions of the investment upon placing the investment. Offering material clearly discloses and states that is an illiquid real estate investment.

  However, we have the right to make an exception if the investor wishes to describe their circumstances. An explanation of changing one's mind or needing funds returned for other uses is not an acceptable reason.

  Additionally, since ************ invested in Feb '24, he has received four monthly distributions.

   

• Initial Complaint

  Date:08/10/2024

  Type:Product Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Invested $5000 in May 24, received one distribution for $41.00 then everything stopped. There is not a clear process to get your money back, I emailed, messaged on their site requesting a refund but haven't heard back from anyone. I think we may have been hustled/scammed out of our money.

  

  Business Response

  Date: 08/12/2024

  This is an illiquid real estate investment as disclosed in the offering materials and these terms and conditions were agreed to by Me. ******** upon placing the investment.

  However, if he wishes to request a liquidation, he can do so by making the request and explaining his circumstances. He should send the email to *****************************.

   

  Customer Answer

  Date: 08/12/2024

  The liquidation offer by **************** is very comforting, I have requested the liquidation/refund per the message, would prefer to wait for the refund before we close to complaint. 

  Customer Answer

  Date: 08/13/2024

  I have reviewed the business response and accept this resolution. The  ****************, president and CEO has agreed to allow us to liquidate in September after the SEC investigation.

• Initial Complaint

  Date:08/09/2024

  Type:Customer Service Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I have only received one distribution this year, which was in January. I have attempted to contact the business several times, I've left Voice Mails I've sent emails, no one will contact me. I'm getting very frustrated at how hard it is to find a way to contact them and then of course their lack of response. I really just want someone to talk to me so I can get this resolved and get my distributions.

  

  Business Response

  Date: 08/12/2024

  Please email your issue to ***********************

  Customer Answer

  Date: 08/12/2024

  I have reviewed the business response and accept this resolution. Thank you very much, I'm sorry you had to get involved, if only they had returned my calls and emails initially.

• Initial Complaint

  Date:07/25/2024

  Type:Product Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I invested $250000 in mid 2023, this in hindsight was a horrible decision, that I would never repeat. The is***s began in January 2024, when PHOENIX AMERICAN HOSPITALALOTY, changed the company that did the monthly disbursements, in a cost savings measure. To date, I recieved one disbursement timely. Though both *** and their dispursment company verified the account number where my dispursments were to go. As of July 2024 they have yet to put the disbursement into the correct account. Getting support there is non-existent. Even on a simple matter, I had to go to ****************** for help, useless. I've requested to be released from my involvement 4 times, there wasn't a single response. Now, they have completely collapsed. I asked a simple question by phone 3 weeks ago. I was told that due to the upcoming 4th of July holiday; my answer could be a few days after. They have yet to respond, despite my repeated phone messages since they never return a call, or pick up a ringing phone. I've expressed fear in having any money invested, and have asked for release, it's never been addressed. Can it get worse? Yes! I recently received a vague and poorly detailed email, again from company head ******************. In this email he explained that no REIT investor would be receiving any dispurments whatsoever going forward, including the disbursement scheduled a day after the email was sent, 2 days prior to the scheduled June disbursement. In a weak and vague email, ****** explained that the company was under investigation, and due to this fact, his council suggested all disbursements be immediately stopped. Who would announce this 2 days prior to a scheduled dispursment, rather then making that disbursement, and having 30 days to figure out exactly what the complaint entailed? The Attorney I'm using to *** them, said that any company stopping disbursements on disbursement day, knows they are in trouble, and will need that money, thus the reason the *** is highly disconcerting. RUN FOLKS.

  

  Business Response

  Date: 07/26/2024

  We have had significant communication with **************** and hope to get to the bottom and resolve his issue in the next two (2) weeks.

  ******************

  Customer Answer

  Date: 08/22/2024

  The response from PAH is false and I totally dismiss it. They have never contacted me, unless responding to my ongoing begging to be freed and released from this horrible company, and it's been far more then 2 weeks, and they're making no attempts to resolve my issue. Though CEO ****** has a staggering net worth, they treat my 250K investment as trash, and me worse. Yesterday by mistake, CEO ****** responded to my latest and 6th attempt to sever all ties with this horribly run company by responding to me by mistake while attempting to forward my email to a junior employee. The response was disgusting and inappropriate. When I made **************** aware of his continued lack of effort in even in the properly handling of my email, he cowered, refusing to even respond to his lazy effort. Meanwhile, the government investigation into the illegal business practices at *** continues. Spending and receiving huge sums of money both advertising and receiving for the latest REIT, that recently closed. **************** and his company continued to be paid as I remain ignored. A class action lawsuit is in the works, though I was holding out hope that this company that I trusted, would do the right thing. It's obvious that it's a scam, that finally caught up to them. Please folks, don't ever consider investing or working with PAH. They only make money while making you miserable. I'm going to meet **************** to discuss this matter. I'll travel to ****** to meet him, and an attorney who's confident that with the documents I have, that he may be able to get ****** into court. It will be expensive, but only a drop in the bucket compared to what this company is attempting to steal from me already.

  
  

  

  Business Response

  Date: 08/29/2024

  ******************** issue has been resolved.

  Customer Answer

  Date: 09/02/2024

  After sending an extremely inappropriate email to me that he intended to go elsewhere, **************** was just out of options but to deal with me. Escaping PAH, is glorious, despite how I was treated. Good riddance. 

• Initial Complaint

  Date:07/22/2024

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I've invested $20,000 dollars to this company with the promise of the 10% contribution monthly, it has not been coming in. I've asked for assistance to retrieve my account, for I have not able to access my account. I believe they may have deleted it. I have call for an assistance to reset my passwords, and they are not providing assistance which is to me a refusal. That wasn't even my dilemma, a family member of mine has been going in and out of the hospital which led to my request to liquidate. They refused to give me answers. They refused to return my calls. They refused to refund my money. I honestly feel this sort of responds to their Client is an act of criminal and corruption. In the beginnig, Mr. ****************** stated to this Writer " that if I needed to refund my funds due to a medical reasons, they'll be able to do so." I feel that this was a lie. Is this company trying to run away with my funds that I've invested. Did they change their number?

  

  Business Response

  Date: 07/23/2024

  This matter was resolved.

• Initial Complaint

  Date:05/14/2024

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  We invested $100,000. In Phoenix American Hospitality with the understanding of there payment of 12% return annually. It is paid out as 10% monthly with a 6% bonus paid each quarter. We were paid for *** of 2023 through November of 2023 and then nothing. I have called all the contacts I have to get this resolved and Im getting nothing but a run around. They told me they did pay it all but had the wrong account number on it. My SDIRA company who they make payments to said nothing has been received on this account since last November. Not sure where else to go to get this straighten out.

  

  Business Response

  Date: 05/29/2024

  ************, your custodian has the funds. We have confirmation that they received the funds.

  The banking account was incorrectly provided to us, however the routing information for the custodian is correct.

  You also should know; custodians will not discuss their client's accounts with us, or any program manager. So, it's really the investor or custodian client has to sort this out.

  If you are agreeable, we will send you a check today for the amount in question. However, these original funds held by the custodian still need to be returned to us or credited to your account.

  The check will be made out to the investor of record, and you may then deposit however you wish.

   

  Customer Answer

  Date: 05/29/2024

  I am rejecting this response because:   The custodian has told me they did not receive the funds so if you have something to show other wise I would like a copy of it. Our banking info has not changed since day one when this was opened last year. The first six months of payments went in just fine. What changed was who the business used to make payments. They had one number wrong on our account which Im guessing is how the problem started. We do not want a check sent to us as this is a *************** and needs to stay in the ****. I have spoken with all parties involved in this case and thus far in two months I have been unable to get our missing funds. 

  

  Business Response

  Date: 05/29/2024

  ************,

  I have sent you the payment confirmation information you requested this morning, to your email.

  Please let me know how you wish to proceed.

  

  Business Response

  Date: 06/06/2024

  The payments in question have been re-submitted to her bank of choice.

• Initial Complaint

  Date:10/09/2023

  Type:Product Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  SCAM - BEWARE - Shockingly low level of transparency and integrity.I have requested audit annual reports, not provided.I have requested a general investor update on multiple quarters, not provided.Was told the **** Perch, was going to send a Q2 update. In Q4 now and still not provided. I requested unaudited financial statements of q1 or any financial performance they show me for year to date or 1-2 quarters ago, not provided. The reasoning was that they can't provide any information outside of what's submitted to the SEC but other regulation A and D offers I'm in share openly and frequently.After 12 emails from June 30th to October 4th, Perch and the team has not returned my money (even though ***** personally agreed to return the money and actively ignores my follow ups).Stay far away from this investment.

  

  Business Response

  Date: 10/09/2023

  **************, first I object to being accused as a scam. Phoenix American has literally thousands of Investors whom are very happy with their returns. You sent an email to me on September 15th,an email requesting information that was over and above SEC required information and specific to your interests, more than any other of our investors. For example, you required P&L's  for each of our hotels. We simply are not in the practice of providing each investor a set of information as they may desire. I responded to your email that same day, Septemeber 15th that we would not provide this additional information. I also stated that I will refund your additiuonal capital and we are processing that request.

  I find it very odd that you invested in us AFTER you performed your diligence. None of these issues appeared to have come up before you invested. It is also odd that you filed complaint AFTER we agreed to refund your capital. I also will remind you that, in the investment terms and conditions that you agreed to, you acknowledged that this was an illiquid investment and that you had reviewed offering circular as filed.

  However, Phoenix American will refund your original capital.
  

  I doubt very seriously there are scams out there that both have many, many satisfied investors and are willing to refund you capital. All agreed to in advance to your complaint. 
  

  

  Business Response

  Date: 10/23/2023

  **************, first I object to being accused as a scam. Phoenix American has literally thousands of Investors whom are very happy with their returns. You sent an email to me on September 15th,an email requesting information that was over and above SEC required information and specific to your interests, more than any other of our investors. For example, you required P&L's  for each of our hotels. We simply are not in the practice of providing each investor a set of information as they may desire. I responded to your email that same day, Septemeber 15th that we would not provide this additional information. I also stated that I will refund your additiuonal capital and we are processing that request.
  I find it very odd that you invested in us AFTER you performed your diligence. None of these issues appeared to have come up before you invested. It is also odd that you filed complaint AFTER we agreed to refund your capital. I also will remind you that, in the investment terms and conditions that you agreed to, you acknowledged that this was an illiquid investment and that you had reviewed offering circular as filed.
  However, Phoenix American will refund your original capital.
  
  I doubt very seriously there are scams out there that both have many, many satisfied investors and are willing to refund you capital. All agreed to in advance to your complaint. 

  Customer Answer

  Date: 10/24/2023

  I am rejecting this response because: 

  1) I was not requiring P&L statements per property, I was asking for any financial update of the fund for the year 2023. I was provided with data from 2022. 
  
  2) I was happy with my due diligence and my dividends. I wanted to invest additional six figures and before doing so, I wanted confirmation that I'm making the right decision. I wanted to make that decision on the latest financial information not on the fact that I just received dividends. That was not provided even though I have 10+ documented emails requesting that information. Therefore, I didn't invest and am requesting my funds back.
  
  3) Perch did not respond to my request on the same day. Attached are emails that he did not respond to (nor did his team) on 3 separate occasions over 59 days. I first cc'd Perch on July 18, Sept 11 and Sept 13 with no response.

  4) Then when ***** did respond on September 15, he has refused to respond to any additional emails on Sept 26, Sept 28 and October 4 requesting the return of funds or any timeline. Zero courtesy or context. If the *** of an organization doesn't respond when he committed to returning funds, one must assume the organization will NOT be returning funds and escalate the situation. So here I am.

  5) I'm sure there are a lot of "satisfied" investors who are blind to any financial or performance updates. That's reckless as an investor and I'm not one of those "satisfied" investors.

  

  Business Response

  Date: 10/24/2023

  We can argue about this all he wishes to. But that will resolve nothing.

  However, I will authorize the return of funds to this investor about his acceptance.

   

  Customer Answer

  Date: 10/24/2023

  I am rejecting this response because while I agree, I will not accept response until I receive funds

  

  Business Response

  Date: 10/25/2023

  A full refund has been authorized for ************** via ACH. Funds should be credit to his account tomorrow, Thursday 10/26 or Friday 10/27.

  Customer Answer

  Date: 10/30/2023

  I have reviewed the business response, received funds and accept this resolution. 

• Initial Complaint

  Date:01/27/2023

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I bought $10350 of funds in year 2015 with account number KWA-XXXXXX-XXX. I received year-2021 tax form showing the $10350 was distributed to me, but I did not receive the money. The form showing $10350 is the taxable amount, so my *** filed the $10350 as my income, but it is my purchase cost. I sent many emails and phone calls to the company, but did not receive response. I need to know where is my $10350 located, and need a corrected tax form showing $10350 is not the gain but my purchase cost.

  

  Business Response

  Date: 03/23/2023

  Business Response /* (1000, 5, 2023/02/07) */
  I had an opportunity to review this file. **** *** did invest $10,350 from his *** on June 11, 2015. (See attached Subscription and Request for Transaction to ***)
  The custodian of the *** at that time was ***. However, we were instructed to transfer the account to a new custodian in November of 2015. Copies of our correspondence notifying ****************** and **** *** are attached.
  On April 2016 Mr. ***'s new Representative, ****** *********** contacted us, inquiring as to where the account had been transferred. We did notify Mr. ********** on April 16 that the account had been moved to**************.
  It's important to note that the custodian relationship is in place to comply with IRS rules regarding IRA non taxable retirement saving. Its is a 3rd party. PHX has no ability to make decisions or communicate in any way with the custodian, other than by written correspondence.
  Phoenix did not issue the tax form Mr. *** refers to; nor do I know who may have issued it.
  Phoenix has no ability to ensure that actions are taken with an Investors custodial account; as in transferring from one to custodian to the other. We are only responsible for delivering proof of ownership to the custodian as directed by the Investor or their Representative.
  There is a fix that I would suggest to Mr. **** He should work with custodians. It's likely that whoever issued this tax form was unaware that the account had been transferred and thus not a taxable event.
  In response to the question about how the capital was invested, it was invested in a portfolio of seven (7) select service hotels.
  
  
  Consumer Response /* (3000, 7, 2023/02/10) */
  (The consumer indicated he/she DID NOT accept the response from the business.)
  1) I made numerous calls and sent many emails to Phoenix American Hospitality, why not response to me?
  2) I need to know the contact information of my account custodian.
  3) I can see my money from a website at ********************* who is the owner of this website?
  4) I need to know if I have question to ask Phoenix American Hospitality, who should I call or send email?
  
  
  Business Response /* (4000, 9, 2023/02/20) */
  1) I cannot respond to you comment about responding to you without knowing whom you tried to contact and what contact information was used. However, should you have a question in the future, you can reach out to me at ************@pahmgt.com.
  2) Our records show that your custodian is *************************** and your account number is ***-XXXXXX. We only have information required to pay distributions, account number and routing. It's a third-party custodian, non-affiliated to PHX that was established by yourself or your broker.
  3) Our transfer agent is KoreconX and the owner of the website you refer to.
  4) You may always react out to me at ************@pahmgt.com
  
  
  Consumer Response /* (4200, 11, 2023/02/22) */
  (The consumer indicated he/she DID NOT accept the response from the business.)
  Following the response, I sent an email to ***** ****** asking how to access my account statement, ***** said will ask ****** to email me the statement. I never receive email from ******. I need to know how to access my statement online, not asking some one to email me my statement.