Rental scams: Stellar Beach Realty and Rentals, owned by John Kozak, accused of owing North Carolina homeowners $1,000

HOLLY SPRINGS, NC — Landlords who rent out their homes along the North Carolina coast say a man from Holly Springs, North Carolina, owes them thousands of dollars.

Many of the owners said their property management company, Stellar Beach Realty and Rentals on Ocean Isle, owes them $10,000 or more. The company is owned by Holly Springs resident John Kozak.

“We’re upset, you know,” Danielle Boukedes said. “They all trusted him and trusted that our money was safe, and at the end of the day it wasn’t.”

“This year will be tough. I don’t know how we’ll get through the winter months when we don’t have bookings; we don’t have income when, you know, that’s that money. it was for,” Lyndsey Gibson said.

Gibson lives in Durham, North Carolina, but said it’s been a family tradition for her husband’s side of the family to vacation at Ocean Isle for 50 years. When they had the chance to buy their own home on Ocean Isle and not only enjoy it as a family, but also rent it out for income, it seemed like the perfect combination.

For three years, she and her husband used Stellar to manage their beach house, and all was well until September 2024.

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“The last week of September was when I noticed I hadn’t been paid for the August bookings,” Gibson said.

The August rent owed on Gibson’s Ocean Isle beach house was more than $23,000.

“August is our biggest month because, you know, summer rentals are when we make our money to support them in the off-season,” she said.

As of October, Gibson still hadn’t received payment for August and said she was still owed $5,000 for September’s rent.

Gibson is not alone, Boukedes is another homeowner who used Stellar to manage his Holden Beach home.

“For the tenants that actually stayed in my house in August and September, we’re owed about $31,000,” Boukedes said.

Stellar also took deposits from tenants for next summer, she said.

“They put $5,000 to $9,000 in deposits per rental,” Boukedes said.

Boukedes said he spoke to the owner of Stellar and about the money he owes.

“I don’t have the money,” Kozak allegedly told him.

When she asked why the money wasn’t being protected in an escrow account, she said Kozak said, “I don’t have an answer to that question.”

In September, Stellar owners received an email from Kozak that read in part: “We are aware of your late payment. from Stellar Beach Realty and Rentals, we are working to obtain full payment as soon as possible.”

October then brought another email from Kozak, this one stating in part: “I am working daily to find a solution to the impact on you and your property.”

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The North Carolina Attorney General’s Office shared with Diane Wilson, who troubleshoots the 20 complaints he received on Stellar. All complaints allege that Stellar owed property owners thousands for rentals that occurred at their beach homes. The attorney general sent those Stellar customers a letter saying “based on the allegations, this appears to be a criminal matter and is being handled by law enforcement and the North Carolina Real Estate Commission.” It goes on to say that the AG’s office has been briefed on both parties investigating Stellar.

NCREC’s legal counsel said Stellar Beach Realty and Rentals “is really a problem.” As the company’s investigation was winding down, it agreed to surrender its broker’s license. Kozak is not licensed, just an unlicensed business owner.

“We suspect there are a number of victims and are trying to direct them to the steps towards us recovery fund”, said the legal advisor of NCREC.

Stellar website no longer has any rentals but says “COMING SOON! Come back soon for your next vacation!”

Wilson called, emailed and texted Kozak, but he did not respond. His attorney did, saying only, “Mr. Kozak intends to cooperate with any law enforcement investigation. Other than that, we can’t comment any more.”

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As for Gibson and Boukedes, they filed police reports and spoke with the SBI.

“I don’t know how we get financial restitution for our loss. However, what I want to see is for him to be prosecuted,” Boukedes said.

Wilson also contacted the Ocean Isle Police Department and the SBI, but did not hear back from either group.