Peabody Chase Consulting

Review: Our architecture firm (Ream Hauser Architects) in conjunction with Revere Healthcare and [redacted] signed up with Peabody Chase in order to get financing for a progressive aging community we were trying to get funding to build in DeKalb, Illinois. We were referred to [redacted] and Peabody Chase by another one of our clients. Initially Peabody Chase wanted a full payment of 22.3k upfront before starting any of the work. We did not feel comfortable with the full amount up front so talked with Peabody and agreed to a contract that required 10k upfront with 12.3k being paid at closing when the project was funded. Over the next few months [redacted] worked on getting us financing using a variety of contacts in the Chicago area. Around December 2012 [redacted] began asking us for additional funds above the 10k already paid in order to pay one of these contact, [redacted], who was trying to get us set up with Metropolitan Capital Bank and Trust. We did not feel comfortable with this, but both [redacted] and [redacted] made it clear that the project wouldn't move forward without payment. We drafted and signed an addendum to the contract along with [redacted] that we would start making payments on the 12.3k in order to keep the project moving. We did not realize that these funds were going to be paid to [redacted] as part of an agreement that [redacted] had worked out with him. Even as we made the payments, [redacted] was emailing and calling me saying he wasn't working without payment. We later learned that despite wire transferring the funds to [redacted] he was not passing along the funds to [redacted]. Eventually, I believe after many phone calls and emails [redacted] got his money, but eventually the project fell through due to requirements of MetCap and other factors created by extending out this process beyond the timeline we had established. According to our contract [redacted] owes RHA the 10k that was paid to him to cover the months following December of 2012. RHA and its partners only paid 10k of the 12.3k remaining on the contract due to the problems that arose with getting the money from [redacted] to [redacted]. We have been emailing and attempting to call [redacted] several times a week since the end of April / early May and though we initially received promise of payment and that the check was going out, no funds have ever been returned to RHA. Since June [redacted] no longer responds to our emails requesting information about our situation.Desired Settlement: We would like a payment to be made to us for $10,000 as per our contract with [redacted]. We are not asking for the initial payment back as that was part of the contact and compensation for the work the [redacted] and his representatives did do. As the project was never funded, however, we are due back those funds give in good faith to Peabody Chase.

Business

Response:

This complaint arises out of a contract dispute. First Peabody Chase consulting never entered into any contract with Revere Health Care. Ream Hauser was referred to us by a client we had successfully found funding for. Ream Hauser in an architectural firm who came to us to seek funding to build a 17million assisted living project. While vetting the client it was bought to our attention that the client had no prior experience in taking on such a large project. We also were made aware that our client had very limited resources finically . In short our task was to provided 100% financing. After reviewing the project and the logistics of finding a financial partner we determined our expenses would exceed 25,000. After about three weeks of negotiating it was determined that Ream Hauser would pay our consulting fee in two parts, the first 10,000.00 would be paid on the signing of our contract the 2nd portion would be paid when we solidified a financial partner to back the project.

Immediately within three weeks of signing our contract we deployed one of our colleagues to Chicago to meet both with Ream Hauser and potential financial partners to fund the project. After conducting hours of due diligence and speaking to our resources we where able to bring a financial partner to the table who agreed to fund the project. Despite Ream Hauser inexperience and lack of financial resources ,we were able to leverage our relationships to bring the 17million to the table. Our agreement stated that after we found the viable partner Ream Hauser was to pay an additional 12,000.0 to cover for expenses which included several trips to and from Chicago attorney fees and overall compensation for time. When it was time for Ream Hauser to pay the additional 12k they explained to me that they did not have the money. At no time did any of my people stop working on the deal even though they were frustrated with the issue of non payment from Ream Hauser. Even though Ream Hauser never paid as agreed I still forwarded money to the team I had working to secure funding. Finally after several weeks Peabody Chase Consulting entered into an agreement that stated Ream Hauser would pay the additional 12k ,if the we failed to provide financing then the money would be refunded. Ream Hauser only sent 10 of the 12k that we agreed on and the money came in spurts. Even though Ream Hauser failed to live up to their agreement the work towards closing continued.. Peabody Chase Consulting lived up to our obligation of securing a financial partner for the project. Ream Hauser met several times with the capital partner. Finally the deal could not move forward because of Ream Hauser's involvement with Revere Health. In the complaint it states there where several calls to our office to resolve this. I can assure you there where no such calls. I encourage Ream Hauser to contact us ASAP so we may work out a solution that everyone will be happy with. Peabody Chase Consulting can provide documentation backing up the facts. WE hope to hear from [redacted] soon.

Peabody Chase llc

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID# [redacted], and have determined that my complaint has NOT been resolved because: