William Bronchick

I hired William Bronchick to set up my S-Corp and also to set up a single member LLC for investment in securities he was selling. I also invested $100K with him because he was the investment attorney. Unfortunately, I paid for and trusted his legal advice for 4 years. Bronchick, of Bronchick Cons...ulting Group, LLC, through his Legalwiz training, and Phuongvi An “Vi” Nguyen, of PVC, Inc., marketed Valois Dynasty, LLC. While acting as investment managers, they sought $600K to purchase Arkansas apartments. Bill’s Investment Summary said “Also involved in the investment and management of the Company will be William Bronchick, … an attorney with 20 years experience. … [His] experience is primarily being used in this transaction to review the legal issues, paperwork and advise the Company.” Bill claimed this as the deal of the century and he was investing $100K. After he got the investors’ money, he only contribution $50K, and soon resold his share. He later got 2 new investors to pay $200K into the failing property. His blast email said, “I wanted to let you in on a lucrative apartment deal in Little Rock, AR. It's three buildings … purchased about 2.4M below appraisal. It needs a turnaround to make it profitable … which means it needs money from investors. The game plan is to take it up to 90% occupancy, then sell in about 3-4 years for a big back-end number.” For the first year Bronchick alleged that the entity had an accountant. This was untrue. He held 1 annual meeting in 4 years. When members complained he said, “…the operating agreement states that annual meetings are not required, in which case holding any meeting held is a courtesy for the members. The Managers are not interested in extending that courtesy so long as the complaints and attacks continue.” The complaint was asking for a meeting. His Summary said, “The syndicators want 25% of the equity for bringing the deal to the table. Thus, cash on cash return for investors … = 29.74%. The Seller wants an additional $400,000 … thus a cash on cash return for investors is near zero for first two years, then near 30% thereafter.” Also, “Mrs. Nguyen and Bronchick will receive a 25% interest in the Company in exchange for negotiating and syndicating the deal and agreeing to manage … the Properties.” Bill’s Summary said, “Management will enact strict tenant quality and credit review procedures to ensure the Company’s revenues will not be interrupted by tenant default.” “Average Vacancy: 10%” They refused to disclose records for the first 1.5 years which showed actual vacancy increased from 50% to 70+%, and 83% economic vacancy. Bill didn’t disclose canceled property insurance or a $43,000 delinquent water bill. His response was “Insurance company inspected the properties in early February. We have received notice that as of April 7th we are cancelled, due to our low occupancy and their assertion that over 50% of our tenants were section 8 tenants. … We are currently uninsured for replacement or loss on the property, but we still have liability and umbrella coverage. …, we hope to resolve it within the next few weeks from new capital infusions.” While Bill cashed out his interest, the property was foreclosed on 12/3/14 with a judgment for @ $4,152,299. The investors lost their $800,000. Bill encouraged the investors to use IRA/ Roth funds. While he markets, “Bill Bronchick’s Bullet Proof Asset Protection System,” he failed to tell the investors that their lifetime IRA losses couldn’t be offset.