Keller Williams Realty

On February 29, 2012, I signed an Operating Agreement and 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 and she contributed $25, 000 for a total ownership of 25% (or 25 shares). A total of 14 other investors came together and contributed an additional $250, 000 towards the formation of Keller Williams Realty Homes & Estates. The total balance at opening was $300, 000.

For the first couple of months all seemed to be going well. However, 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, without warning and for no apparent reason. We found out later that it was personal.

When members of the group began questioning Ms. McKenna as to what happened she would not respond, became elusive and aloof and she systematically began ex-communicating any investor in the group that dared to question any of her decisions.

Below, is a list of things Ms. Cynthia McKenna did while acting as Managing Member that were not in the best interest of the company, in some cases were not legal, and 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 and Ms. McKenna sold shares to 2 members that were not 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 cannot 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 and she allowed him to perform the duties of the Broker. NYS Real Property Law that specifically states that these practices are illegal.

Of course there are many other things that Ms. McKenna has done to mis-manage the LLC, however, the most offensive and blatantly illegal thing that Ms. McKenna has done occurred in March 2013.

In March 2013 Ms. McKenna mailed each member of the LLC a new and 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 cannot be changed without the consent of all parties to the contract. Ms. McKenna claims that the changes are ministerial in nature and 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.

Ms. McKenna has not only made illegal changes to the Operating Agreement (which is a contract in the state of NY) she has also now stolen the shares of 10 members who questioned her.

These members invested $180, 000 into purchasing shares. She sent us all a letter where she gave everyone 10 days to respond to her low ball offer of 10% of the initial investment, or receive nothing at all.

To add insult to injury Ms. McKenna offered repayment over an eighteen (18) month period.

It is important to note that on March 2013, during one of our shareholders meeting, Ms. McKenna offered to purchase everyone out at cost, however, when multiple members accepted her offer to be bought out she rescinded and decided to take the shares for free instead.

On August 12, 2013, Ms. McKenna sent a letter to the 10 members transferring their ownership interest in the company to an unclear destination (her pocket) and cancelled our stock certificates. She further concluded in this transfer that each member must hold her harmless for doing so. It is clear to me that Ms. McKenna has very little grasp of the law and stole my shares and that of the other members.

I sent numerous Fed Ex packages to Keller Williams International directed to Gary Keller, Mo Anderson, Mark Willis and Mary Tennant in regards to the actions of Cynthia McKenna and Keller Williams Realty Homes & Estates, LLC and never once received a response. I spoke to the regional manager at Keller Williams Realty, Bryan Fair and again was told there was nothing they could do.

I also find it curious how Cynthia Mc Kenna was awarded a franchise by Keller Williams Realty International with the shady past of her husband and multiple failed businesses and even multiple judgments. (Judgments are available for view to the public at the Suffolk County's Clerks office on line). It seems to me like her franchise application and personal back round were not looked into as it should have been by Keller Williams Realty Regional or Corporate.

I am near certain that there are other illegal activities that are happening within the company beyond my knowledge and this is why Ms. McKenna is feverishly attempting to remove anyone that questions her business practices.

Here we are years later and its July 2014 and she is still in business and I just found out that they did this to someone else. Another set of shares were sold to a local agent for $25, 000 and now he is in the same predicament the rest of us are in.
So now the total stole from us is over $200, 000.!

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.