NASSAU COUNTY, Fla. – Michael Chad Reed, owner of Reed Group Elite Homes, has been arrested and is facing 12 charges related to construction fraud, including organized fraud, misapplication of construction funds, and grand theft. He was booked on Thursday and quickly bonded out of jail.
According to Reed’s arrest warrant, the alleged fraud involved home projects started between 2021 and 2023. While five victims are listed in the affidavit, more individuals have come forward with similar complaints. The contracts between The Reed Group and its customers required a 15% deposit and stipulated a 365-day completion deadline. However, many customers reported paying well over the initial 15% deposit, as Reed “induced” them to pay for additional draws before any work was completed.
The investigation revealed that after paying their deposits, victims either found their homes abandoned and unfinished or saw construction never begin. Investigators noted that Reed hired several subcontractors for different tasks but failed to pay them, leading to complaints from homeowners about unpaid bills.
In February, the I-TEAM reported a surge of complaints against the company, with many customers sharing similar stories of custom homes left incomplete. Some victims, like Craig Seabrooks, experienced significant hardships, with their homes sitting unfinished for over a year while they lived in an RV.
The Reed Group filed for bankruptcy in February, listing debts exceeding $1.3 million owed to numerous local subcontractors. Reed, 39, was released on a $135,000 bond following his arrest.