On February 29, 2012, I signed an Operating Agreement & I gave Cynthia McKenna checks for $25, 000 to purchase five (5) membership shares of Braveheart Real Estate Enterprises, LLC dba Keller Williams Realty Homes & Estates. At that time Ms. McKenna was named Managing Member & she contributed $25, 000 for a total ownership of 25% (25 shares). A total of 14 other investors got together & contributed an additional $250, 000 towards forming Keller Williams Realty Homes & Estates. The total balance at opening was $300, 000. In July of 2012 Ms. McKenna severed her working partnership with a Controlling Principal with a 27% share in the company, without discussion with the group. We found out later that it was personal.When members of the group began questioning Ms. McKenna as to what happened she wouldnt respond, & systematically began ex-communicating any investor in the group that dared to question any of her decisions. Ms.McKenna while acting as Managing Member didnt act in the best interest of the company, in some cases did things that were not legal, & in other cases were purely self serving:
1. Ms. McKenna sold shares to 2 members that did not have an Associate Broker or Broker’s license & Ms. McKenna sold shares to 2 members that werent licensed at all. Under NYS Real Property law, any owners in a real estate brokerage must be either a Broker or Associate Broker.
2. Ms. McKenna hired her husband Charles McKenna to act as the Market Center Administrator/Accountant. Mr. McKenna did not have any accounting experience, nor did he hold a degree in finance. In fact, due to his past shady history, he cant even get a Real Estate license in NYS.
3. Ms. McKenna stopped providing the investors with monthly or quarterly financials. When investors asked for financials we were ignored.
4. Ms. McKenna began terminating real estate agents at the office, basically, she terminated anyone who questioned decisions that she made, or the behavior of her husband they were terminated. To my knowledge over 12 agents were terminated resulting in a large financial loss to the company.
5. The K-1 statements were sent to the investors after the IRS filing date deadline
6. Over time Ms. McKenna allowed her unlicensed husband Charles McKenna to begin acting as the Office Manager & she allowed him to perform the duties of the Broker. NYS Real Property Law that specifically states that these practices are illegal.
In March 2013 Ms. McKenna mailed each member of the LLC a new & drastically altered Operating Agreement. Ms. McKenna altered the Operating Agreement to be entirely in her favor. It is my understanding of Contract Law that contracts cant be changed without the consent of all parties to the contract. Ms. McKenna claims that the changes were ministerial in nature & therefore allowed under her authority of the original Operating Agreement. However, there was nothing ministerial about the changes that were made whatsoever..
No members of the group besides Cynthia McKenna signed the “new” Operating Agreement, however, Ms. McKenna insisted that this new Operating Agreement was in force whether we signed it or not.
On August 12, 2013, Ms. McKenna sent a letter to the 10 members transferring their ownership interest in the company to an unclear destination & cancelled our stock certificates stealing $180k of our investments. I just found out yet another person just purchased another $25, 000 worth of shares who also now is going through the same thing.