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The Real Estate Pyramid in São Paulo That Used Construction as Collateral Moved More Than R$ 200 Million and Left Projects Stalled, Investors Without Returns and a Chain of Unfulfilled Promises.
The real estate pyramid in São Paulo investigated by the Civil Police exposed a scenario of stalled constructions, unfinished buildings and families who believed in apartments and monthly profits. The company presented as the developer, Nelin, allegedly raised more than R$ 200 million by offering properties off-plan and an investment model that would pay 2% per month until the units were delivered, but the structure did not hold up and led more than 1,000 people to losses, according to reports gathered by investigators and victim groups.
Behind the barriers and the projects publicized in videos and events, the police claim that what existed was a financial pyramid with a real estate facade, which functioned while new investors were coming in. When payments began to delay and the projects did not advance, reports arose, leading to police operations and the blocking of assets of those responsible.
Investment Promising 2% Per Month and Property as Collateral
Nelin presented itself as a developer, a company that designs and manages real estate projects, and launched eight projects, six of them in the eastern zone of São Paulo, boasting modernity, panoramic elevators, and striking façades.
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In addition to selling off-plan apartments, the company offered a financial product linked to the constructions. The argument was seductive. Those who invested, for example, R$ 100,000 would receive R$ 2,000 per month until project completion, a rate well above the market.
The key point that led many to invest was the promise that, if the investment did not succeed, the investor would receive a finished apartment. Property as collateral is a strong trigger in a market with high housing deficits.
Some people even sold cars and houses to invest more money. In the first few months, payments came through, reinforcing confidence and leading many victims to invest larger amounts.
When New Money Stopped Coming In
According to the Civil Police of São Paulo, the structure had the classic shape of a pyramid. It works at the beginning because new investors are constantly coming in. When funding decreases, the pyramid collapses. That’s what happened. Until April, payments were made; then, justifications of a bad market and poor management began, even with the sector booming, according to the customers themselves.
From that moment on, projects that were stalled began to emerge, empty lots where buildings were supposed to be ready and construction sites showing signs of abandonment. The promises of apartments and monthly returns ceased to be honored exactly when the base of the pyramid could no longer sustain itself.
More Than 1,200 Victims and R$ 200 Million Under Investigation
Lawyers following the case estimate that about 1,200 people were affected. There are reports of families who invested R$ 60,000, R$ 410,000, and even R$ 700,000 believing they would receive monthly returns or the property. One investor said he depended 100% on this money to survive and pay his son’s support and now finds himself without income and without an apartment.
The police mention suspected misappropriation or movement of more than R$ 200 million, with various atypical bank transfers and even the use of a child’s account of an investigated person as a pass-through account, raising suspicions of money laundering. Thus, in addition to fraud and crimes against popular economy, those involved are also being investigated for criminal association and laundering.
The Role of Marketing and the Figure of the Businessman
One element that amplified the scam was marketing. Nelin invested heavily in social media, events, and motivational speeches, with entrepreneur Daniel Bernal at the forefront, speaking of purpose, transformation, and dignified housing. This impactful discourse gave the appearance of solidity to the business and created a sense of community among the investors.
When payments delayed and clients began to pressure, audios from the entrepreneur himself asking for patience surfaced, and in some cases, responding harshly, claiming there was enough assets to pay. This contrast between the inspiring public discourse and the harsh private responses increased the feeling of fraud among the victims.
Police Operation and Projects That Did Not Leave the Paper
In September, the Civil Police launched Operation Sand Castles, seizing passports of Daniel Bernal and four partners and conducting searches at addresses linked to the company. Investigators found the structure practically deactivated, computers turned off, and properties in the finishing stages that were never delivered.
At the visited locations, there were clear signs of abandonment, infiltration, scraps of material, and even people living in makeshift conditions. For those who bought into the idea of living in a modern condominium, this scenario is concrete proof that the project did not move forward.
The Dispute Is Now Judicial
After the operation, the company’s lawyers filed for judicial recovery and stated that there was merely poor management and that the clients’ money would be in properties, buildings under construction or land. The court blocked assets and ordered the breaking of bank secrecy of the investigated to trace the money trail.
The central point for the victims is whether this asset truly exists and if it is sufficient to pay everyone. The police themselves admit that the settlement will depend on the recovery judgment. In the meantime, the shells of constructions remain scattered throughout the city as a physical reminder of the real estate pyramid in São Paulo.
The case exposes a dangerous combination. Real product, promise of high returns, property guarantee, and aggressive marketing. When these elements appear together, investors need to be suspicious, request documentation of the project, check registration, timelines, the developer’s CNPJ, and project status.
In the serious real estate sector, there is no payment of 2% per month for extended periods simply because the building has not yet been delivered.
For you, in light of this case of the real estate pyramid in São Paulo, who should be held accountable first so that the victims are compensated more quickly?
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