NASSAU COUNTY, Fla. – A Nassau County home builder has been arrested and is facing 12 charges related to construction fraud.
Michael Chad Reed, the owner of the Reed Group Elite Homes, is charged with organized fraud, misapplication of construction funds, and grand theft.
He bonded out of jail quickly after he was booked on Thursday.
The home projects were all started between 2021 and 2023, according to his arrest warrant. Five victims are listed in the affidavit but more have come forward.
The contracts between The Reed Group and their customers required a 15% deposit and had a 365-day completion deadline. Many paid well over 15% after the warrant said Reed “induced” victims to pay for additional draws before work was completed.
“After the victims paid their deposits, construction either began on their homes and then was abandoned and left unfinished, or construction never began,” investigators wrote in the report. “During the construction, Reed hired several subcontractors to complete different tasks, and it was brought to the attention of the homeowners that Reed did not pay them.”
Investigators also said that there isn’t any proof Reed used the funds from his customers entirely for the construction of their homes.
Back in February, the I-TEAM received a wave of complaints about the company. Many customers of The Reed Group had the same story. They paid for custom homes that were never finished.
In some cases, Reed also sued his clients or placed liens on their property. The legal issues stopped customers like Craig Seabrooks from hiring another contractor to finish their home build.
Seabrooks’ home sat unfinished for more than a year while he and his wife lived in their RV.
The company filed for bankruptcy in February, listing dozens of local subcontractors to whom they owe money. It all adds up to more than $1.3 million in debt.
Reed,39, was released on a $135,000 bond.