New Western, the Dallas-based fix-and-flip marketplace formerly operating under the legal name United InvestexUSA, has faced one significant federal lawsuit and a steady stream of investor complaints, though public reporting on the New Western lawsuit and investor complaints shows a mixed picture: the company won summary judgment in the only major court case brought against it, while individual investors continue to describe sales pressure, non-refundable deposits, and questionable property data that they say cost them tens of thousands of dollars.
The Benson Federal Lawsuit Ended in Summary Judgment
The case most directly targeting New Western’s corporate entities and leadership is Benson v. United InvestexUSA 10, LLC, filed in 2019 in the U.S. District Court for the Northern District of Texas, Dallas Division. Koye “Cory” Temilola Benson brought claims under the Fair Labor Standards Act against a wide slate of defendants: United InvestexUSA 10, LLC and United InvestexUSA 2, LLC (both doing business as New Western Acquisitions), UI Holdings, LLC, and three individuals — co-founders Stuart Denyer and Kurt Carlton, along with Paul Hess.1Leagle. Benson v. United InvestexUSA 10 LLC
On March 18, 2021, Judge Ada Brown granted the defendants’ motion for summary judgment, ending the case before trial.1Leagle. Benson v. United InvestexUSA 10 LLC Court records list the matter as a federal employment liability case.2GovInfo. Benson v. United InvestexUSA 10 LLC et al, Case No. 19-1161
Investor Complaints About Sales Practices
Outside the courtroom, investors have posted detailed accounts of losing money on New Western deals. These are complaints, not judgments, but they describe consistent friction points in the company’s model.
A $70,000 Loss on an Unpermitted Dallas House
Dallas-area investor Femi Ibrahim reported losing $70,000 on a property he bought through New Western in June 2019 for $140,000, financed with $125,000 in hard money and his own cash. After closing, he found the structure had been built without permits, lacked a proper foundation, and had a driveway and carport encroaching on the neighbor’s lot. The city denied renovation permits and determined the structure would have to be demolished.3BiggerPockets. How New Western Acquisitions Made Me Lose My Life Savings ($70K)
Ibrahim said the model discouraged thorough due diligence: fast decisions, a non-refundable $5,000 deposit, and restricted property access until after closing. Co-founder Kurt Carlton responded publicly, calling the outcome an “extremely rare” and “unique calamity.” Carlton said New Western’s agent had included an existing survey in the initial packet showing boundary issues and had offered to order a new one, and that an experienced fix-and-flip lender had independently approved and funded the deal. He said the company would contact Ibrahim to “arrange to return the profit New Western made related to the deal.”3BiggerPockets. How New Western Acquisitions Made Me Lose My Life Savings ($70K)
Comparables Pulled From the Wrong Subdivision in Houston
Houston investor Glenn Dickson said he lost a $7,500 deposit after discovering that the comparable sales New Western supplied came from an adjacent subdivision with values roughly 20% higher than the subject property’s actual location. Dickson said the company ignored 20 available data points within the correct subdivision and called the practice “deceptive trade practices.” Other agents in the same discussion said wholesalers sometimes cherry-pick comparables to justify inflated after-repair values, and noted that New Western’s customer agreements put the burden of verifying financial and valuation data on the buyer.4BiggerPockets. Avoid New Western Acquisitions Houston
Recurring Themes
The same criticisms show up across multiple accounts: pressure to decide quickly, non-refundable deposits that raise the cost of backing out, and limited pre-closing access that makes independent inspections difficult. Carlton has disputed the idea that New Western targets inexperienced investors, saying most sales go to experienced repeat buyers. The company’s own disclosures warn that “real estate investment is speculative in nature and risk of loss can be substantial,” and its terms of use state that no New Western associate represents the buyer in any capacity.5New Western. Terms of Use
What the Terms of Use Say About Suing New Western
Anyone thinking about a lawsuit against New Western has to reckon with its dispute resolution clauses first. All disputes must go to binding arbitration in Tarrant County, Texas, under the Federal Arbitration Act. Users waive the right to a jury trial and the right to bring or join a class or collective action. Aggregate company liability to any single user is capped at $100. The terms also carry a two-year non-circumvention and non-solicitation clause with a penalty of $25,000 per violation plus attorney fees.5New Western. Terms of Use
Those provisions explain in part why complaints against New Western tend to appear on investor forums rather than in court dockets.
Other Litigation on the Record
New Western entities have also appeared as plaintiffs. A complaint filed December 7, 2020, in the Central District of California lists ManPow, LLC, United InvestexUSA 11 Inc., and United InvestexUSA 7 Inc. as plaintiffs in United InvestexUSA 7 Inc. et al v. Matthew Miller et al.6PacerMonitor. United InvestexUSA 7 Inc. et al v. Matthew Miller et al, Complaint The available record shows the filing but not the substance of the claims.