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2/10
🔴 Elevated Concern
Case Study #3 · Minkow 1–10 Fraud Risk Report · July 2025–July 2026

Storage Units Capital

"Storage Units Capital claimed $200M AUM and 6,500 units under management — but notarized loan documents reveal $249M in total debt against assets that cannot support those obligations, while the principals falsely claim to co-invest 'a substantial fund co-investment' alongside investors with no evidence of any principal capital at risk."
🔴 2 Class A Flags 🟠 6 Class B Flags 🟡 2 Class C Flags Score: 2 / 10 SEC TCR Filed DHS Referral Filed Florida AG Contact 15 Title Reports Arete SEC Complaint 2025 Self-Storage · Reg D investinselfstorage.com
🏢 Entity Facts
Legal Entity
Storage Units Capital Group, LLC
Brand / Website
"Your Storage Units" · investinselfstorage.com
FEIN
854-13-9699
Principal Address
9000 W Colonial Dr #401, Ocoee, FL 34761
Prior Address
698 N Maitland Ave #203, Maitland, FL 32751
AUM Claimed
$200M / 6,500 units
Returns Advertised
12–18% Avg Annual Returns
Equity Multiple Claimed
1.5× – 2.0× targeted
Total Debt (Title Records)
$249,000,000+
Selling Broker-Dealer
Arete Wealth Management LLC
Arete SEC Action
Case 1:25-cv-00616 (Jan 17, 2025)
SEC TCR Number
17518-476-122-976
🧮 Section 1 — Minkow 1–10 Algorithm Trace
Deterministic Score Calculation
Same inputs always produce the same score. No subjectivity.
Starting score10
Class C flags: 2 × (−1) = −2−2 → 8
Class B flags: 6 × (−2) = −12 → would be −4−12 raw
B ≥ 4 cap: score = min(score, 3) → forced to 3→ 3
A ≥ 1 cap: score = min(score, 3) → already at 3→ 3
2nd Class A flag: −1 additional penalty−1 → 2
Final Minkow Score 2 / 10 — 🔴 Elevated Concern
score = 10 score -= 2 × C_count → 10 - 2 = 8 score -= 2 × B_count → 8 - 12 = -4 (raw) if B≥4: score = min(score, 3) → 3 if A≥1: score = min(score, 3) → 3 score -= max(0, A_count-1) → 3 - 1 = 2 score = max(score, 1) → 2 FINAL: 2 / 10 — CRITICAL RISK — WALK AWAY
2×
Class A Flags
Disqualifying
6×
Class B Flags
Serious
2×
Class C Flags
Contextual
🚩 Section 2 — All 10 Fraud Flags Identified
Class A — Disqualifying #1 False / Unverifiable AUM & False Co-Investment Claim
"One of the best ways to demonstrate the belief we have in our investment philosophy and our team's ability to execute is to put our own money into our offerings. Our principals are invested alongside our investors with a substantial fund co-investment." — Storage Units Capital official website
Title records and notarized loan documents reviewed as of June 2025 show no evidence of any principal capital at risk in the Storage Units Capital portfolio. The "co-investment" claim is a material misrepresentation. Separately, the $200M / 6,500-units AUM claim is unsupported by the actual debt load revealed by county title records: $249M+ in total debt against a portfolio that cannot support 12–18% distributions after debt service. Both the portfolio size claim and the co-investment claim are Class A because they create false safety signals that directly induce investor commitment.
Class A — Disqualifying #2 Negative Equity / Debt Exceeds Assets (Irrational Ratios)
Total debt: $249M+ (per notarized loan documents). Marketed equity multiple: 1.5× – 2.0×. AUM claimed: $200M. Debt-to-AUM ratio: >1.25×.
If the portfolio is only worth $200M (their own claim) and is encumbered by $249M in debt, the enterprise is insolvent by approximately $49 million on a mark-to-market basis. The claimed 1.5×–2.0× equity multiple is mathematically impossible. Even if properties were marked at their debt amount ($249M), investors would receive 0× equity at liquidation — not 2×. Any cash distributions paid to investors while the fund is technically insolvent would constitute distributions from new investor capital (a Ponzi payment structure) rather than operations. This is the definitive Irrational Ratios red flag — the signature Class A indicator from every major case in this whistleblower's portfolio.
Class B — Serious #1 Buffett-Zone Returns (12–18%) Advertised to General Public
Marketing claim: "12-18% average annual returns" — investinselfstorage.com public website
Warren Buffett's 50-year average annual return is approximately 19.8%. Any firm promising returns consistently in the 12–18% range in the current interest rate environment is either (a) taking on massive leverage (confirmed — $249M debt), or (b) fabricating returns. The public advertisement of these returns to all web visitors without verification of accredited investor status is a potential Reg D 506(c) general solicitation issue if investors were not properly verified as accredited.
Class B — Serious #2 Unregistered Securities Sold Through Broker-Dealer Under SEC Investigation
Arete Wealth Management, LLC sold 6 Storage Units Capital offerings over a 2-year period. SEC filed complaint against Arete on January 17, 2025. Case No. 1:25-cv-00616, U.S. District Court, Northern District of Illinois.
The SEC complaint against Arete Wealth Management (defendants: Arete Wealth Management LLC, Arete Wealth Advisors LLC, Joey Dale Miller, Jeffrey Scott Larson, Randall Scott Larson, UnBo "Bob" Chung) involves securities fraud allegations. A broker-dealer selling private placement offerings while itself under federal investigation — and while having sold Storage Units Capital's Reg D offerings — creates a catastrophic due diligence failure for investors who relied on Arete's recommendations. Under Regulation Best Interest (Reg BI, Release No. 34-86031), Arete had an affirmative obligation to disclose conflicts and ensure suitability. The SEC's own action raises the question: did Arete receive compensation from Storage Units Capital while concealing the fundamental debt math from investors?
Class B — Serious #3 Mass Social Media / Internet Solicitation to General Public
investinselfstorage.com — public website accessible to any internet user; return claims (12–18%), equity multiples (1.5×–2.0×), and AUM claims ($200M / 6,500 units) all published without accredited investor verification gates
Regulation D 506(c) permits general solicitation but requires reasonable steps to verify that all purchasers are accredited investors. Publishing explicit return percentages and investment minimums on a public website to unverified visitors — without a clear accredited investor confirmation gate — potentially violates Reg D if any non-accredited investors purchased. The email to SEC on July 6, 2025 specifically flagged this as a Reg D violation concern for SEC review.
Class B — Serious #4 No Audited Financials / Concealed Debt Load
Storage Units Capital has not provided audited fund-level financials to investors. The $249M total debt was discovered only through independent county title record analysis across 15+ properties.
The debt concealment is particularly egregious because Storage Units Capital actively markets "1.5×–2.0× targeted equity multiples" — a claim that presupposes positive equity — while the title-documented debt load proves negative equity. If audited financials existed and were provided to investors, this discrepancy would be immediately visible. The absence of audited financials is therefore not merely a procedural gap — it is functionally necessary to sustain the false equity multiple claims. This is debt concealment by omission.
Class B — Serious #5 Principal Background Issues / Bankruptcy History (Bill Johnston)
BILL NORMAN JOHNSTON — Age 63, SSN 157-98-####, DOB 07/##/1961 — background report shows: Bankruptcy: YES, Property: YES, Corporate Affiliation: YES, High Risk Indicator: YES. 19 associated addresses. Most recent: 320 Saint George St, Saint Augustine FL.
A principal of an investment fund with a documented bankruptcy history and high-risk indicators must disclose this background to prospective investors under SEC disclosure standards. Investors relying on Storage Units Capital's representations about principal financial stewardship — particularly the "co-investment" claim — are entitled to know that a principal has a prior bankruptcy record. Failure to disclose material negative principal history in Reg D offering documents is a potential 10b-5 violation.
Class B — Serious #6 Complex Multi-Entity / Nominee Structure Obscuring Debt & Ownership
Corporate structure: Storage Units Capital Group LLC (FEIN 854139699) · Storage Units Capital Partners I LLC (FEIN 853867805) · Storage Units Capital Partners II LLC · Storage Units Capital Aviation LLC · Multiple property-level LLCs: "Storage Units Pcb LLC," "Storage Units Properties I Augusta LLC," "Storage Units Properties I Apopka LL," "Storage Units Properties I Kissimmee LLC," "Storage Units Mauldin Road LLC," etc.
The deliberate use of numerous property-level LLCs (each holding one or two assets), combined with a tiered GP/LP fund structure, makes it virtually impossible for investors to perform independent debt-to-equity analysis without title record research. This fragmented structure is not operationally necessary for a self-storage operator — it is structurally optimal for debt concealment. Each property LLC can carry its own debt while the fund marketing materials aggregate only the "assets under management" number without the corresponding debt. The inclusion of "Storage Units Capital Aviation LLC" — an aviation entity managed by Sean Casterline, William Johnston, Alex Petsos, and others — raises additional questions about commingling of investor funds across unrelated business activities.
Class C — Contextual #1 Cherry-Picking / Best-Case Presentation
Website claim: "24% historical AAR" (some properties) vs. "12–18% average annual returns" in core marketing
Marketing materials selectively present best-performing properties or exit scenarios while concealing distressed assets. The wide range of return claims (12% to 24%+) suggests cherry-picking of high-performing outliers to imply a portfolio average that the debt-encumbered portfolio cannot consistently deliver. No losing or flat deals are disclosed in marketing.
Class C — Contextual #2 Pressure Tactics / Urgency Language
"Open to Accredited Investors" with limited availability framing on investment portals; time-limited offering windows across 6 separate Arete-distributed offerings
Six separate Reg D offerings distributed through Arete Wealth Management over two years, each with limited subscription windows, creates a sustained artificial urgency. Legitimate self-storage operators do not need to run six sequential fundraising campaigns with urgency framing if their existing portfolio is performing as advertised. The accelerating pace of fundraising — despite growing debt — is consistent with a Ponzi growth pattern where new capital is needed to service prior obligations.
💣 Section 3 — Smoking Gun: Irrational Debt Ratios
The Math That Makes the Marketing Impossible
Source: Notarized county loan documents · 15 property title records · July 2025
Claimed AUM
$200,000,000
Website claim · "6,500 units under management"
Total Debt (Title Records)
$249,000,000+
Notarized loan documents · 15 properties researched
Implied Net Equity
($49,000,000+)
Negative. Insolvent. 1.5×–2.0× equity multiple is impossible.
⚡
Storage Units Capital simultaneously claims a "1.5× – 2.0× targeted equity multiple" for investors, while title records prove total debt of $249M against a claimed $200M portfolio. These two facts cannot coexist. If the portfolio is worth $200M (their claim), investors are already underwater by ~$49M before a single distribution is paid. If distributions are being paid — which is implied by the "12–18% average annual returns" marketing — those payments are coming from new investor capital, not from operations. That is the legal definition of a Ponzi payment structure.
"[T]his Reg D self-storage company appears to be a financial crime in progress in that their total debt is $249M and [assets do not support investor returns]." — Barry Minkow, Email to SEC Philadelphia, July 6, 2025 (re: Arete Wealth Management)
"On its official website, the company claims: 'Our principals are invested alongside our investors with a substantial fund co-investment.' However, notarized loan documents reviewed as of June 2025 show no evidence of principal capital at risk." — DHS Referral Letter to Special Agent Kevin Knipp, July 6, 2025
Debt Evidence: Sample Property Loan Records
From county recorder records, the following mortgage/loan documents were identified across Storage Units Capital-affiliated properties. Each represents a notarized loan obligation that accumulates to the $249M+ total debt figure:
Orange County FL (MTG 2024.344805)
9000 W Colonial Dr, Ocoee FL — 44-page mortgage document
Printed: Jun 6, 2025 1:41 AM
Polk County FL (MG 11900.171)
187 Ronald Reagan Pkwy, Davenport FL — 20-page mortgage
Printed: Jun 6, 2025 12:15 AM
Lake County FL (LN 6322.2409 + LN 6322.2382)
14003 County Road 455, Clermont FL — dual lien documents
Printed: Jun 5, 2025 9:48 PM
Aiken County SC (DED WTD 4877.535)
522 Cork Tree Bnd, North Augusta SC — 6-page warranty deed with debt
Printed: Jun 2, 2025 9:17 PM
Osceola County FL (DED SWR 5610.1791)
2965 N Orange Blossom Trl, Kissimmee FL — deed with encumbrances
Printed: Jun 2, 2025 9:00 PM
Duval County FL (ML 2022.240613)
5701 Beach Blvd #570157, Jacksonville FL — 4-page mortgage lien
Printed: Jun 6, 2025 1:05 AM
📋 Section 4 — Property Title Records (15 Properties · 4 States)
All 15 property owner LLCs consistently show the Maitland FL (698 N Maitland Ave #203) or Ocoee FL (9000 W Colonial Dr #401) mailing addresses — confirming these properties are genuinely held by Storage Units Capital-affiliated entities. The debt encumbrances, however, reveal the fund is operating at negative equity.
# Property Address State County / APN Title Owner LLC Notable Debt / Encumbrance Data As Of
1 1329 W 15th St FL Bay · 18673-010-000 Storage Units Pcb LLC
1476 Jefferies Hwy, Walterboro SC		 ORB 4296 P 2168 05/19/2025
2 7100 W Highway 98 FL Bay · 27916-001-000 Storage Units Properties I Panama City Beach LLC
698 N Maitland Ave #203, Maitland FL		 ORB 4416 P 963 · 7.267 ac 05/19/2025
3 14003 County Road 455 FL Lake · 09-22-26-1000-60A-00000 Storage Units Capital entity
Dual liens: LN 6322.2409 + LN 6322.2382		 2 ACTIVE LIENS 05/22/2025
4 187 Ronald Reagan Pkwy FL Polk · MG 11900.171 Storage Units Capital entity
20-page mortgage instrument		 LARGE MORTGAGE (20pp) 06/06/2025
5 2335 Old Canoe Creek Rd FL Osceola · 27-26-30-0109-0001-0030 Storage Units Properties I St Cloud LLC
698 N Maitland Ave STE 203, Maitland FL		 Canoe Creek Corners Condo · $484,169 assessed 06/02/2025
6 2965 N Orange Blossom Trl FL Osceola · 03-25-29-4266-0001-0010 Storage Units Properties I Kissimmee LLC
698 N Maitland Ave #203, Maitland FL		 DED SWR 5610.1791 (deed w/ debt) 05/20/2025
7 3290 Pleasant Hill Rd FL Osceola · 30-26-29-4722-0001-0010 Storage Units Properties I Kissimmee II LLC
200 S Biscayne Blvd #3550, Miami FL (Rialto)		 Pleasant Hill & Reaves Condo · BK 5851/2399 05/20/2025
8 2400 Wiggins Rd FL Orange · 27-20-27-0000-00-049 Storage Units Properties I Apopka LL / Rialto Capital Advisors LLC
200 S Biscayne Blvd #3550, Miami FL		 RIALTO LENDER ON TITLE 05/23/2025
9 5701 Beach Blvd #570157 FL Duval · 135084-0050 Storage Units Capital entity
ML 2022.240613 (mortgage lien, 4pp)		 MORTGAGE LIEN ON TITLE 05/23/2025
10 16511 Old Airport Haul Rd FL Lee · 06-46-26-L4-1100L.0000 Storage Units Capital entity
Fort Myers FL 33913		 Title research complete 05/23/2025
11 9000 W Colonial Dr FL Orange · MTG 2024.344805 Francis R Webster / Danielle Grace Gavagni
HQ address of Storage Units Capital Group		 44-PAGE MORTGAGE (2024) 06/06/2025
12 757 Mauldin Rd SC Greenville · M012.03-01-001.09 Storage Units Mauldin Road LLC
9000 W Colonial Dr #401, Ocoee FL (HQ addr)		 Wenwood Business Park · Est. value $222K 05/28/2025
13 522 Cork Tree Bnd SC Aiken · DED WTD 4877.535 Storage Units Capital entity
North Augusta SC — 6-page warranty deed + debt		 DEED WITH DEBT ATTACHED 06/02/2025
14 1573 Hamilton Dr SC Aiken · R2024104515 Storage Units Properties 1
East side Silver Bluff Rd · Assessed $407,540		 Tax Notice current · Appraised value confirmed 2024 Tax Year
15 171 Cooper Dr GA Richmond · 011-1-022-00-0 Storage Units Properties I Augusta LLC
698 N Maitland Ave #203, Maitland FL		 Cooper Dr Lots 9 & 10 · Parcel 2 04/16/2025
⚠ Note: Rialto Capital Advisors LLC (200 S Biscayne Blvd #3550, Miami FL) appears on title as a lender/senior creditor on at least 2 properties (Apopka, Kissimmee II). This institutional creditor senior position further subordinates equity investor returns.
👤 Section 5 — Corporate Structure & Principal Analysis
STORAGE UNITS CAPITAL GROUP, LLC
Main operating entity · FEIN: 854-13-9699
698 N Maitland Ave STE 203, Maitland FL (Oct 2020–Apr 2025)
9000 W Colonial Dr #401, Ocoee FL (current)
BUS ID: 4983191941
STORAGE UNITS CAPITAL PARTNERS I, LLC
Fund vehicle #1 · FEIN: 853-86-7805
698 N Maitland Ave STE 203, Maitland FL
Nov 2020–Feb 2025
BUS ID: 4995709711
STORAGE UNITS CAPITAL PARTNERS II, LLC
Fund vehicle #2 · FEIN: undisclosed
698 N Maitland Ave address lineage
Active (date TBD)
Additional fund series
STORAGE UNITS CAPITAL AVIATION, LLC
Aviation entity · FEIN: 934-24-6952
Mgrs: Sean Casterline, Megan Johnson, William Johnston, Matt McMahan, Alex Petsos
Ph: (216) 630-2945 / (407) 792-4478
BUS ID: 4983191941 — RED FLAG: Aviation entity associated with self-storage fund
STORAGE UNITS CAPITAL GROUP LLC (prior)
Oct 2020–Feb 2022 · 99 S New York Ave, Winter Park FL
BUS ID: 4983171755 — Original address, now abandoned
STORAGE UNITS CAPITAL PARTNERS I LLC (prior)
Oct 2020–Feb 2022 · 99 S New York Ave, Winter Park FL
BUS ID: 4997618030
Francis Richard Webster
Principal / Resident at HQ Address
Age 49 · DOB: 09/##/1975 · SSN: 770-18-####

Current address: 9000 W Colonial Dr STE 401, Ocoee FL 34761 (May 2023–Jul 2025) — the same address as Storage Units Capital Group headquarters.

Prior address: 15141 Pendio Dr, Bella Collina FL 34756 — luxury gated community in Montverde FL (May 2018–Feb 2025).

Background indicators: Criminal/Traffic Conviction: YES · Property: YES · Corporate Affiliation: YES · 27 associated addresses.
⚠ Criminal/Traffic Conviction ⚠ 27 Associated Addresses
Bill Norman Johnston
Principal (William Johnston — President)
Age 63 · DOB: 07/##/1961 · SSN: 157-98-####

Background indicators: Bankruptcy: YES · Property: YES · Corporate Affiliation: YES · High Risk Indicator: YES

Associated addresses: 19 records found, including: 320 Saint George St, Saint Augustine FL; 1510 Woodland St, Orlando FL; 4460 Lower Park Rd, Orlando FL (multiple units).

Listed as PRES / PRESIDENT of Storage Units Capital Aviation LLC. The documented bankruptcy history was not disclosed in any known investor communication.
⚠ BANKRUPTCY ON RECORD ⚠ HIGH RISK INDICATOR
Sean Casterline
Manager — Aviation Entity
Listed as MANAGER of Storage Units Capital Aviation LLC. The role of an aviation management entity within a self-storage fund raises investor fund commingling concerns. No public record of securities industry licensure found.
Aviation Entity Link
Alex Petsos
President / VP — Aviation Entity
Listed as PRES, PRESIDENT, VICE PRESIDENT, VP of Storage Units Capital Aviation LLC. Multiple title assignments suggest governance confusion. No public record of securities industry licensure found.
Multiple Officer Titles
⚖️ Section 6 — The Arete Wealth Management Connection
SEC LAWSUIT ACTIVE
Arete Wealth Management, LLC — Charged by SEC January 17, 2025
Arete Wealth Management LLC was the registered broker-dealer that sold six separate Storage Units Capital Reg D offerings over a two-year period to accredited investors. On January 17, 2025, the SEC filed a securities fraud complaint against Arete and five individual defendants in the Northern District of Illinois.

SEC Complaint Defendants: Arete Wealth Management, LLC · Arete Wealth Advisors, LLC · Joey Dale Miller · Jeffrey Scott Larson ("Jeff Larson") · Randall Scott Larson ("Randy Larson") · UnBo "Bob" Chung

The complaint alleges that from approximately [date stated in complaint] the defendants engaged in securities fraud. A broker-dealer under active federal securities fraud investigation — while simultaneously recommending and selling Storage Units Capital offerings — has created a cascading due diligence failure for investors who relied on Arete's Regulation Best Interest (Reg BI) obligations.

Under SEC Release No. 34-86031, Arete had an affirmative obligation to: (1) act in the best interest of retail customers, (2) disclose all material conflicts of interest, and (3) reasonably believe recommendations were suitable. Selling Storage Units Capital offerings — with a documented $249M+ debt load against a $200M claimed portfolio — while under federal investigation is incompatible with these obligations.
Case: 1:25-cv-00616 · Filed: January 17, 2025 · U.S. District Court, Northern District of Illinois, Eastern Division · SEC v. Arete Wealth Management, LLC et al.
Reg BI Violation
6 Offerings Sold During Investigation Window
Arete sold six Storage Units Capital offerings over approximately 2 years. If the SEC investigation into Arete was active during any portion of this sales period, investors were not informed that their recommending broker-dealer was under federal scrutiny.
Math Disclosure Failure
$249M Debt Math Not Disclosed to Investors
Arete's Reg BI obligation required it to independently verify the solvency of offerings it recommended. Title record analysis showing $249M in debt against a $200M claimed portfolio was obtainable from public county records. Arete failed to obtain or disclose this information.
SEC Notification
Barry Minkow → SEC Re: Arete + Storage Units Capital
On July 6, 2025, Barry Minkow emailed SEC staff (phillipse@sec.gov, gleichor@sec.gov) specifically flagging Arete Wealth Management's role as distributor for Storage Units Capital offerings, asking the SEC to connect the existing Arete case with the Storage Units Capital debt math.
From: barryminkow3@gmail.com · Jul 6, 2025 · To: phillipse@sec.gov · CC: Kevin.M.Knipp@hsi.dhs.gov
TCR Filed
SEC TCR #17518-476-122-976
Formal SEC TCR submission confirmed with submission number 17518-476-122-976. This is the 4th TCR filing in the InvestSafe Pro™ whistleblower's public record related to the Storage Units Capital matter, following three prior Viking Capital submissions.
🏛️ Section 7 — Florida AG Contact & Governor DeSantis Letter
Florida Attorney General — Consumer Protection Division
Ellen K. Lyons, Special Counsel — Contacted Minkow July 17, 2025
On July 17, 2025, Ellen K. Lyons, Special Counsel to the Consumer Protection Division of the Florida Attorney General's Office, contacted Barry Minkow about the Storage Units Capital investigation. This represents the first state-level regulatory engagement on this case.

On July 20, 2025 (letter dated July 21, 2025), Barry Minkow sent a personal and confidential letter directly to Governor Ron DeSantis regarding "The Florida Attorney General's Office and the Crisis of Reg D Financial Fraud," with copies to:

• James Uthmeier (DeSantis Chief of Staff) — james.uthmeier@eog.myflorida.com
• Kevin M. Knipp, DHS/HSI Special Agent (Santa Ana CA) — kevin.knipp@hsi.dhs.gov
• Luther A. Selby, DHS/HSI Special Agent (Indianapolis) — luther.selby@ice.dhs.gov
Subject: (Personal and Confidential) Florida Attorney General's Office and the Crisis of Reg D Financial Fraud
From: Barry Minkow <barryminkow3@gmail.com>
Date: Sun, Jul 20, 2025
To: governorron.desantis@eog.myflorida.com
Florida Nexus
Why Florida AG Has Jurisdiction
Storage Units Capital is incorporated in Florida. Its principals' addresses are in Ocoee and Maitland (Orange County). The majority of its self-storage properties are in Florida counties. The broker-dealer (Arete) sold to Florida-based accredited investors. Florida securities law (Ch. 517 F.S.) provides the AG independent enforcement authority over securities fraud affecting Florida investors.
Multi-Agency Coordination
SEC + DHS/HSI + Florida AG + Governor
The simultaneous referral to SEC (TCR), DHS/HSI (two separate special agents in two field offices — Santa Ana CA and Indianapolis IN), Florida AG, and the Governor's office represents the broadest multi-agency coordination in the InvestSafe Pro™ whistleblower record to date.
📅 Regulatory Action Timeline
Jun 2025Research Phase
TITLE RESEARCH 15 county title reports pulled across FL, SC, GA. Notarized loan documents from Orange, Polk, Lake, Osceola, Duval, Lee, Bay, Aiken, Richmond counties. Total debt: $249M+ documented.
Jul 6, 2025TCR Filed
TCR FILED SEC TCR #17518-476-122-976 submitted to U.S. Securities and Exchange Commission. Email simultaneously sent to phillipse@sec.gov and gleichor@sec.gov flagging the Arete Wealth Management connection to Storage Units Capital offerings.
Jul 6, 2025DHS Referral
DHS REFERRAL DHS/HSI referral letter to Special Agent Kevin M. Knipp, 34 Civic Center Plaza Room 1027, Santa Ana CA 92701 (kevin.knipp@ice.dhs.gov). Letter documents: $200M AUM claim, $249M total debt, false co-investment claim, 15 property title evidence.
Jan 17, 2025Prior Action
SEC CHARGES ARETE SEC v. Arete Wealth Management et al., Case 1:25-cv-00616, Northern District of Illinois. Arete is the registered broker-dealer that sold 6 Storage Units Capital Reg D offerings. SEC action predates and contextualizes the whistleblower's TCR.
Jul 17, 2025FL AG Contact
FLORIDA AG Ellen K. Lyons, Special Counsel to Consumer Protection Division, Florida AG's Office, contacts Minkow. First state-level engagement on the Storage Units Capital fraud investigation.
Jul 20–21, 2025Governor Letter
GOVERNOR DESANTIS Personal & confidential letter from Barry Minkow to Governor Ron DeSantis RE: "The Florida AG's Office and the Crisis of Reg D Financial Fraud." CC: James Uthmeier (Chief of Staff), DHS/HSI SA Kevin Knipp, DHS/HSI SA Luther Selby.
🎭 Section 8 — The False Co-Investment Claim
The Most Dangerous False Statement
Published on the investinselfstorage.com public website — read by every prospective investor before committing capital
"One of the best ways to demonstrate the belief we have in our investment philosophy and our team's ability to execute is to put our own money into our offerings. Our principals are invested alongside our investors with a substantial fund co-investment."
⚡ DISPROVED BY NOTARIZED LOAN DOCUMENTS:
Notarized county loan documents reviewed as of June 2025 show no evidence of principal capital at risk in the Storage Units Capital portfolio. The principals appear on title as managers/operators — not as equity co-investors in the same tranche as limited partners. The loan instruments do not reflect any principal subordinated equity alongside LP investor capital.
⚖️
Under SEC Rule 10b-5, a material misrepresentation made in connection with the offer or sale of securities — including website statements read by prospective investors before they commit capital — constitutes securities fraud. A claim that "principals are invested alongside investors with a substantial fund co-investment" when no such investment exists is textbook 10b-5 fraud. This is not a forward-looking projection. It is a present-tense factual claim that is provably false.
✈️ Section 9 — The Aviation Entity Anomaly
Storage Units Capital Aviation, LLC — Unexplained
Why Does a Self-Storage Fund Own an Aviation Entity?
Storage Units Capital Aviation, LLC (FEIN: 934-24-6952, Business ID: 4983191941) shares the same phone numbers and principal structure as Storage Units Capital Group LLC. Its managers include Sean Casterline, Megan Johnson, William Johnston, Matt McMahan, and Alex Petsos.

A self-storage investment fund operating a separate aviation entity under the same brand umbrella raises serious investor fund commingling concerns:

1. Investor capital raised for self-storage acquisitions may be flowing to aviation-related expenses
2. The aviation entity may be used for principal personal travel charged to fund operating accounts
3. The existence of this entity was never disclosed in marketing materials as a related-party entity
4. No PPM or investor disclosure reviewed mentions an aviation business within the fund structure

This is consistent with the classic self-dealing pattern documented in NRIA (vertically integrated fee extraction) and other Ponzi schemes where founder lifestyle expenses are buried in fund operating costs.
STORAGE UNITS CAPITAL AVIATION, LLC · FEIN: 934246952 · Ph: (216) 630-2945 / (407) 792-4478 · Managers: Sean Casterline, Megan Johnson, William Johnston, Matt McMahan, Alex Petsos
✅ Section 10 — Investor Due Diligence Checklist
AUM Verification: Request the complete property portfolio with individual property addresses and APNs. Pull title records for at least 5 properties from county recorders. Compare deed holder names against fund marketing. Estimated 1–2 hours. Cost: ~$75 in title report fees.
Debt Verification: For each property address, search county mortgage records for all encumbrances. Total all mortgage amounts. Compare to claimed AUM. If total debt exceeds claimed AUM, the fund is insolvent — full stop. This is the single most important step.
Co-Investment Verification: Demand proof — not a website claim — that principals have personal capital at risk in the same tranche as LP investors. Request the actual subscription agreements signed by each principal and their capital account statements. If they cannot produce these, the co-investment claim is false.
Broker-Dealer Background: Run BrokerCheck (brokercheck.finra.org) on every person recommending this investment. Check if the recommending firm (here: Arete Wealth Management) is under SEC or FINRA investigation. If a broker-dealer is under federal securities fraud charges, any investment they recommend is presumptively tainted.
Principal Background Check: Run background checks on ALL principals. Look for: bankruptcy filings, criminal convictions, securities bars, high-risk indicators. The absence of full principal disclosure in PPM documents is a material omission.
Related Party Entities: Research all entities under the same FEIN or sharing the same address. An aviation entity operated by the same principals as a self-storage fund is unexplained and warrants immediate disclosure demands.
Distribution Mathematics: Request cash flow statements for every property. Divide annual distributions by total debt service. If total debt service exceeds total NOI from operations, distributions can only come from new investor capital — a Ponzi payment structure by definition.
Audited Financials: Demand independent audit by a named, verifiable CPA firm. If only "reviewed" statements are available, or if only property-level summaries (not fund-level statements) are provided, the consolidated debt position is being concealed.
SEC EDGAR Check: Search SEC EDGAR (efts.sec.gov) for all Form D filings by this entity and related entities. Verify that all offerings were properly filed, all amendments recorded, and no filing delinquencies exist. A 6-offering history should show 6 Form D entries.
📬 Section 11 — Regulatory Referral Guidance
SEC Whistleblower Program
SEC TCR Already Filed — Supplement With New Evidence
TCR #17518-476-122-976 is on file. Any investor with additional evidence (PPM, subscription agreement, capital account statements, email communications with Arete or Storage Units Capital) should file a supplemental TCR at sec.gov/tcr. Reference the existing submission number.
sec.gov/tcr · Whistleblower awards: 10–30% of sanctions exceeding $1M
DHS/HSI — Two Field Offices Active
SA Kevin Knipp (Santa Ana) + SA Luther Selby (Indianapolis)
Two DHS/HSI special agents have been briefed: Kevin M. Knipp in Santa Ana CA (kevin.knipp@ice.dhs.gov) and Luther A. Selby in Indianapolis IN (luther.selby@ice.dhs.gov). Wire fraud, mail fraud, and money laundering charges typically accompany SEC securities fraud cases of this type.
Florida AG — Consumer Protection Division
Ellen K. Lyons, Special Counsel — Active Contact
The Florida AG's Consumer Protection Division has made direct contact. Florida investors who lost money in Storage Units Capital offerings should file complaints with the Florida AG at myfloridalegal.com and cite the active DHS and SEC referrals. Florida has independent enforcement authority under Ch. 517 F.S.
myfloridalegal.com · Florida Securities Violations: (850) 414-3300
Media Amplification
Florida Business Journal, Sun Sentinel, Orlando Sentinel
The Florida location of this fraud — with properties across Orange, Osceola, Polk, Lee, Duval, Bay counties — creates natural jurisdiction for Florida business press. The Governor DeSantis letter creates a news hook. Investigative reporters covering Florida real estate or securities fraud should be briefed.
📁 Section 12 — Source Document Index (25+ Files)
01LEGAL
RightStorageUnitsCapitalfraudcase.docx — DHS Referral Letter to SA Kevin Knipp, July 6, 2025 · Full fraud analysis with $249M debt figure, false co-investment claim, 15-property evidence
02TCR
TCRStorageunitscapital.docx — SEC TCR Submission Confirmation #17518-476-122-976
03EMAIL
EmailSECAretewealthmanagementLLClobbyingaction.docx — Barry Minkow to SEC (phillipse@sec.gov), Jul 6, 2025: Arete Wealth Management / Storage Units Capital connection
04EMAIL
desantisemail.docx — Barry Minkow to Governor Ron DeSantis, Jul 20–21, 2025: RE Florida AG & Crisis of Reg D Financial Fraud · CC: Uthmeier, Knipp, Selby
05SEC
areteSEC.pdf — SEC v. Arete Wealth Management LLC et al. · Case 1:25-cv-00616 · Filed Jan 17, 2025 · NDIL · 57 pages
06REG
SECRegDBrokerduediligence.pdf — SEC Release No. 34-86031 · Regulation Best Interest Final Rule · Standard of Conduct for Broker-Dealers
07BG
FRANCIS RICHARD WEBSTER - Comprehensive Report - 2025-07-01.pdf · Principal at 9000 W Colonial Dr · Criminal conviction, 27 addresses
08BG
BILL NORMAN JOHNSTON - Comprehensive Report - 2025-06-05.pdf · President of Aviation entity · Bankruptcy on record, High Risk Indicator
09CORP
STORAGE UNITS CAPITAL AVIATION, LLC - Premium Business Report - 2025-06-05.pdf · FEIN 934246952 · 5 principals including Casterline, Johnston, Petsos
10CORP
STORAGE UNITS CAPITAL FL - Business Search - 2025-06-05.pdf · All FL entity filings: Group LLC (FEIN 854139699), Partners I (FEIN 853867805), Partners II, Aviation
11EXCEL
abrightexcelstorageunitcapital.xlsx — Financial analysis worksheet · Debt accumulation and portfolio comparison
12TITLE
1329 W 15th St, Panama City FL — Bay County APN: 18673-010-000 · Owner: Storage Units Pcb LLC · ORB 4296 P 2168
13TITLE
7100 W Highway 98, Panama City Beach FL — Bay County APN: 27916-001-000 · Owner: Storage Units Properties I Panama City Beach LLC
14TITLE
14003 County Road 455, Clermont FL — Lake County APN: 09-22-26-1000-60A-00000 · Dual liens: LN 6322.2409 + LN 6322.2382
15TITLE
187 Ronald Reagan Pkwy, Davenport FL — Polk County · MG 11900.171 (20-page mortgage)
16TITLE
2335 Old Canoe Creek Rd, Saint Cloud FL — Osceola County APN: 27-26-30-0109-0001-0030 · Storage Units Properties I St Cloud LLC
17TITLE
2965 N Orange Blossom Trl, Kissimmee FL — Osceola County APN: 03-25-29-4266-0001-0010 · DED SWR 5610.1791
18TITLE
3290 Pleasant Hill Rd, Kissimmee FL — Osceola County APN: 30-26-29-4722-0001-0010 · Storage Units Properties I Kissimmee II LLC · Rialto Capital senior lien
19TITLE
2400 Wiggins Rd, Apopka FL — Orange County APN: 27-20-27-0000-00-049 · Rialto Capital Advisors LLC on title as lender
20TITLE
5701 Beach Blvd #570157, Jacksonville FL — Duval County APN: 135084-0050 · ML 2022.240613 (4-page mortgage)
21TITLE
16511 Old Airport Haul Rd, Fort Myers FL — Lee County APN: 06-46-26-L4-1100L.0000
22TITLE
9000 W Colonial Dr, Ocoee FL — Orange County · MTG 2024.344805 (44-page mortgage, 2024) · HQ address of fund
23TITLE
757 Mauldin Rd, Greenville SC — Greenville County APN: M012.03-01-001.09 · Storage Units Mauldin Road LLC · Est. value $222K
24TITLE
522 Cork Tree Bnd, North Augusta SC — Aiken County · DED WTD 4877.535 (6-page warranty deed with debt)
25TITLE
1573 Hamilton Dr, Aiken SC — Aiken County Account R2024104515 · Storage Units Properties 1 · Assessed $407,540
26TITLE
171 Cooper Dr, Augusta GA — Richmond County APN: 011-1-022-00-0 · Storage Units Properties I Augusta LLC
27PROP
Property-Report-for-757-Mauldin-Rd-Greenville-SC-29607.pdf · PropertyRecs.com · July 6, 2025 · Ownership timeline: Azalea Developers LLC → Storage Units Mauldin Road LLC (2021–present)
28PROP
Property-Report-for-9000-W-Colonial-Dr-Ocoee-FL-34761.pdf · PropertyRecs.com · June 8, 2025 · Est. value $1.78M–$1.82M · Residents: Francis R Webster, Danielle Grace Gavagni
⚠ Legal Disclaimer: This report presents independently verifiable public record information and is provided for educational and investor protection purposes only. All facts cited are derived from publicly available county records, federal court filings, SEC EDGAR, and documents obtained through proper investigative channels. This report does not constitute legal advice, investment advice, or a determination of guilt. All persons named are presumed innocent of any criminal wrongdoing absent a final court determination. The Minkow 1–10 scoring system is an analytical framework — not a legal conclusion. Readers are encouraged to independently verify all information and consult qualified legal and financial professionals before making investment decisions. Barry Minkow is a convicted felon who has served his sentences; his methodology and public record are independently verifiable by any receiving party. InvestSafe Pro™ is a due-diligence research tool only.