North Carolina beach rental owners stiffed thousands; businessman faces investigation

Monday, November 11, 2024
HOLLY SPRINGS, N.C. -- Homeowners who rent out their homes along the North Carolina coast said a Holly Springs, North Carolina man owes them thousands of dollars.

Many of the homeowners 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. "Everyone trusted him and trusted our money was safe, and at the end of the day it wasn't."

"This year is going to be tough. I don't know how we're going to get through the winter months when we don't have bookings; we don't have income coming in when, you know, that's what that money was for," Lyndsey Gibson said.

Gibson lives in Durham, North Carolina but said it has 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 home, and all was fine until September 2024.

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"The last week of September was when I noticed that I had not been paid for August bookings," Gibson said.

The amount owed for August rentals at Gibson's beach house in Ocean Isle was more than $23,000.

"August is our biggest month because, you know, summer rentals are when we make our money to sustain it for the off season," she said.



By October, GIbson still had not received August's payment, and she said she was owed another $5,000 for September's rentals.

Gibson isn't alone, Boukedes is another property owner who used Stellar to manage their Holden Beach house.

"For the renters that actually stayed in my house in August and September, we are owed about $31,000," Boukedes said.

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

"They put down deposits of anywhere from $5,000 to $9,000 per rental," Boukedes said.



Boukedes said she talked to the owner of Stellar also about the money she's owed.

"I don't have the money," Kozak allegedly told her.

When she inquired why the money wasn't protected in an escrow account, she said Kozak said, "Don't have an answer to that question."

In September, Stellar homeowners got an email from Kozak that stated in part, "I am aware of the delay on your payout from Stellar Beach Realty and Rentals, we are working on getting your entire payment out asap."

October then brought another email from Kozak, this one stating in part, "I'm working daily to find a resolution to the impact on you and your property."

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The North Carolina Attorney General's Office shared with Troubleshooter Diane Wilson the 20 complaints it has received on Stellar. All complaints state Stellar owed the property owners thousands for rentals that happened at their beach homes. The attorney general sent those customers of Stellar a letter that states, "based on the allegations, this appears to be a criminal matter and handled by law enforcement and the North Carolina Real Estate Commission." It goes on to say the AG's office has been informed both of those parties investigating Stellar.



The legal counsel for the NCREC said Stellar Beach Realty and Rentals "is indeed a problem." As the company's investigation was concluding, it agreed to surrender its broker license. Kozak is not licensed, just an unlicensed owner of the firm.

"We suspect there are a number of victims and we are trying to direct them to the steps to our recovery fund," NCREC legal counsel said.

The Stellar website no longer has any rentals on it, but it does say "COMING SOON! Come back soon for your next vacation!"

Wilson did call, email and text Kozak, but he did not respond. His attorney did, only stating, "Mr. Kozak intends to cooperate with any law enforcement investigations. Beyond that, we can't comment any further."

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As for Gibson and Boukedes, they have filed police reports and talked to the SBI.

"I don't know how we get financial restitution for our loss. However, what I want to see is him to be held criminally liable," Boukedes said.

Wilson also reached out to Ocean Isle Police Department and the SBI but has not heard back from either group.
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