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CaboRon
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| Quote: | Originally posted by Barry A.
She is a graduate of the Wharton School of Finance---------I would like to discuss her studies with her anytime.
Barry |
I want to discuss something else with her 
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Nancy Drew
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Donald Trump project Collapses
http://www.hotelsmag.com/articleXml/LN937098028.html
http://blogs.iht.com/tribtalk/properties/roof/?p=664
Anyone watching The apprentice these days?
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CaboRon
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From the Union Trib
Trump sued by investors over failed resort
69 believed they were buying into his project
By Leslie Berestein (Contact) Union-Tribune Staff Writer
2:00 a.m. March 14, 2009
Nearly 70 plaintiffs who invested millions of dollars in the Trump Ocean Resort, a planned luxury oceanfront development in Baja California that was
never built, are now suing Donald Trump, his son and daughter, and the project's developers on a fraud claim.
The lawsuit was filed yesterday in Los Angeles Superior Court. It alleges, among other things, that buyers who put down deposits on the planned
development's 526 condo-hotel units were deceived into believing they were buying into a Trump development when the Trump name was merely licensed by
the developers.
Included among the defendants are Trump, Donald Trump Jr. and Ivanka Trump, as well as principals of the project's Los Angeles-based developers,
Irongate Development, its partner company Punta Bandera Investors USA, and its real estate brokers S&P Destination Properties.
Among the 41 causes of action listed are allegations of fraudulent inducement, negligent misrepresentation, deceit and breach of fiduciary duty.
The developers of the Trump Ocean Resort lost their financing after a construction loan of about $150 million from a German bank fell through last
summer. Late last year, buyers learned their deposit money had been spent; last month, they received a letter saying the project had been scrapped
because of the poor condition of the financial markets.
Aside from some ground preparation and foundation work, there is nothing on the site, 10 miles from the border.
The Trump Organization terminated its license agreement with the developers in January, after the project had gone belly-up.
However, beginning in 2006, the project was marketed as a Trump development, said Bart Ring, an attorney representing 69 plaintiffs.
"The Trump name appears ubiquitously in marketing for the project, including on advertisements, on billboards advertising the project, on letterheads,
stationery, and cover letter," the 197-page complaint says.
A DVD was taken from the project's Web site of Donald and Ivanka Trump plugging the development, Ring said. The Trump brand name provided a sense of
security for buyers who would not have otherwise considered investing in Mexican real estate, he said.
"None of these people would have done a thing without Trump being substantially involved," Ring said.
In a phone interview yesterday, Donald Trump maintained his distance from the developers, saying he was "not happy" with what occurred.
"I have never been there," he said of the site. "They licensed my name."
Trump, who had not seen the complaint, said buyers were informed in writing, on a project fact sheet, that he was a licensor and not the developer.
Trump had already partnered with Irongate for a project in Hawaii; he said he decided to work with them in Baja California because he considered the
Hawaii project a success.
He said he terminated his licensing agreement with the developers because they were in default.
"They did not live up to the terms of the agreement," Trump said.
An attorney for Irongate and a former company principal did not return phone messages seeking comment.
Nearly 200 buyers are believed to have deposited more than $32 million for ocean-view units priced at $300,000 to $2.5 million.
Tammy Willis, 38, a city employee in Oakland, put down three installments totaling $150,000 for a one-bedroom unit costing $525,000. She said she paid
her last installment in early 2008.
By that time, the developers were already in financial trouble, Ring said.
Willis, who has not yet taken legal action, traveled to San Diego for a sales reception in December 2006, where prospective buyers were served
appetizers and drinks as they chose color schemes. She paid her first $50,000 then.
"I was never told the (Trump) name was only licensed," she said. "It could have been in the legal documents, but I didn't know that. I thought it was
what it said, Trump." Leslie Berestein: (619) 542-4579; leslie.berestein@uniontrib.com
Leslie Berestein: (619) 542-4579; (Contact)
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oldlady
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That last paragraph says it all..people will stand in a supermarket reading teeny print on the ingredients of a can of Campbell's Soup, but fork over
thousands for another brand...no questions asked.
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David K
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>>> "I have never been there," he said of the site. "They licensed my name."
Trump, who had not seen the complaint, said buyers were informed in writing, on a project fact sheet, that he was a licensor and not the developer.
Trump had already partnered with Irongate for a project in Hawaii; he said he decided to work with them in Baja California because he considered the
Hawaii project a success. <<<
Hawaii is not Baja... Maybe he didn't know Baja was not part of the United States? 
Have you seen it called: Baja, California ? That makes it look like a town: Santee, California for example! 
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k-rico
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The lawsuit alleges violation of federal disclosure laws; i.e, the buyers were not told of the true arrangement until December 2008. It would be
interesting to read the contracts that were used when deposits were made.
Where's the $32 million collected? American or Mexican hands? The fact the parties involved are saying the money is "gone" sure adds fuel to the fraud
accusations. Nothing was built.
http://biz.yahoo.com/ap/090314/trump_mexico.html
[Edited on 3-15-2009 by k-rico]
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Woooosh
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| Quote: | Originally posted by k-rico
The lawsuit alleges violation of federal disclosure laws; i.e, the buyers were not told of the true arrangement until December 2008. It would be
interesting to read the contracts that were used when deposits were made.
Where's the $32 million collected? American or Mexican hands? The fact the parties involved are saying the money is "gone" sure adds fuel to the fraud
accusations. Nothing was built.
http://biz.yahoo.com/ap/090314/trump_mexico.html
[Edited on 3-15-2009 by k-rico] |
Lots of new coverage on the Trump debacle in todays (Sunday) Union Trib. Seems the buyers may have recourse through the CA courts- since everything
took place there.
Where did the money go? What's the going commission on Real Estate sales in Baja these days? I'll bet every Trump salesperson was paid upfront from
the deposit money- so there goes a third of the $32 Million right away. I'll bet the Meixco City family got paid for that worthless piece of polluted
land too.- there went the other $20 Million.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Packoderm
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| Quote: | Originally posted by David K
>>> "I have never been there," he said of the site. "They licensed my name."
Trump, who had not seen the complaint, said buyers were informed in writing, on a project fact sheet, that he was a licensor and not the developer.
Trump had already partnered with Irongate for a project in Hawaii; he said he decided to work with them in Baja California because he considered the
Hawaii project a success. <<<
Hawaii is not Baja... Maybe he didn't know Baja was not part of the United States?
Have you seen it called: Baja, California ? That makes it look like a town: Santee, California for example! |
So, what Trump is saying is that when his name is put on a project, it doesn't mean squat. His name, therefore, doesn't stand for squat. I say they
should do an investigation and see if his name needs to be placed on the list of people in need of arrest and imprisonment. They put Martha Stewart in
prison for less.
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Woooosh
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I think the Donald and his investors in Trump Baja both got what they deserve- nothing. Plenty of greed and bankruptcies top go around now that the
bubble has burst.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Bronco
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Pucker Factor
I am too a billionaire, wha, wha,wha
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Bajahowodd
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Trump has never meant squat. It's all about celebrity. So, who are the fools?
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CaboRon
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| Quote: | Originally posted by Bajahowodd
Trump has never meant squat. It's all about celebrity. So, who are the fools? |
Why the buyers, of course
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nancyinpdx
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I never could stand Donald Chump. I soooo wish they would have to experience excruciating poverty for the rest of their lives!
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Woooosh
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What a prince this guy Trump is! He sues the Mexican developer today for just $10 Million when the Mexican crooks he was working with took and ran
with over $32 Million. Maybe he was just suing to get Ivankas money back from her penthouse purchases. Since over 100 "owners" are suing him
directly- I gues he figures why help them recover their losses too.
"Real estate mogul Donald Trump filed suit in New York yesterday against a Mexican developer that he said took $32 million in buyers' deposits but
failed to build an oceanfront resort in Baja California that was to bear the Trump name.
The lawsuit, filed in Manhattan federal court, said the developer, PB Impulsores, and its principals, Jason Grosfeld and Adam Fisher, breached an
agreement with Trump to develop and build the Trump Ocean Resort Baja, about 10 miles south of the border. The lawsuit seeks at least $10 million in
damages.
The lawsuit was filed in response to a series of lawsuits filed in California by more than 100 buyers of the resort's condominiums. They sued the
developers for skipping out on the project and Trump for attaching his name to it.
Izwyers for Trump said the Mexican developer was responsible for overseeing all aspects of the project. "
[Edited on 4-10-2009 by Woooosh]
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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k-rico
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Mexican developers and crooks Jason Grosfeld and Adam Fisher???
hahaha
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Dave
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| Quote: | Originally posted by k-rico
Mexican developers and crooks Jason Grosfeld and Adam Fisher???
hahaha |
Don't know about Grosfeld but Fisher was a principal in Irongate that has done business with Trump. PB Impulsores was simply a Mexican shell. Der
Donald filed against PB 'cause PB sued Donald. Anyways, it's all for show. Grosfeld, Fisher and Trump are probably a$$hole buddies. After they
couldn't get the construction permits and the financing fell through, the three probably cut up the 32 mil.
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Bajahowodd
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Doesn't Look Like Any Mexicans were Involved
From LA Times
REAL ESTATE
Donald Trump sues developer of Baja California condo project bearing his name
A billboard advertises the site of Trump Ocean Resort Baja Mexico about 10 miles south of the border.
The tycoon accuses Irongate Wilshire's principals of failing to follow through on promises to build a five-star resort called Trump Ocean Resort Baja
Mexico.
By Stuart Pfeifer
April 10, 2009
Real estate tycoon Donald Trump filed a lawsuit Thursday against a Los Angeles developer that paid to use his name for an oceanfront condominium
project in Baja California but then failed to build it.
Filed in federal court in New York, the lawsuit comes one month after dozens of buyers sued Trump and Los Angeles developer Irongate Wilshire,
demanding return of $32 million of down payments they made in 2006 and 2007 for the planned luxury condos.
The earlier lawsuit accused Trump and Irongate of misleading buyers about Trump's role in the project, having described him as a co-developer when he
had merely accepted a licensing fee to lend his famous brand to the 525-unit project.
In his $40-million lawsuit, Trump accuses Irongate principals Jason Grosfeld and Adam Fisher of failing to follow through on promises to build the
five-star resort, at which units sold for $275,000 to $3 million. Grosfeld and Fisher could not be reached. Trump declined to comment.
The legal battle centers around plans for a three-tower project to be built on 17 oceanfront acres about 10 miles south of the U.S. border. Trump
Ocean Resort Baja Mexico was intended to achieve a five-star rating, with a fine-dining restaurant, full-service spa, swimming pools, tennis courts
and hiking trails.
Buyers lined up at a San Diego hotel in 2006 for the first opportunity to buy, snapping up 80% of the available units. Many units in a second tower
were sold in 2007. Buyers were required to make 30% down payments to secure their purchases.
In February, Trump announced that he had withdrawn from the project because the developer had run out of money and was not able to complete the job.
A month later, the developer disclosed that it was not going to complete the Baja development.
Trump said in an interview Monday that he was unfairly targeted in the buyers' lawsuit. He said he played no role in managing the development and was
unhappy with what happened.
"We're looking into the whole situation because it doesn't make me happier than it makes them. I don't like to see people lose money," Trump said.
His lawsuit seeks $40 million in compensatory and punitive damages and a full accounting of what the developer did with the $32 million in down
payments it collected from condo buyers. Trump has told associates in his organization that he wants to use the lawsuit as a mechanism to help buyers
recover those down payments, according to a source familiar with the lawsuit.
"Defendants, as the developers of the project, were entrusted with ensuring that the project would be constructed and developed in accordance with the
buyers' purchase contracts and in keeping with the high standards of luxury, quality, reliability and dependability associated, throughout the world,
with the Trump name," the lawsuit said.
Concerns about the project surfaced in mid-2008 as buyers started to grumble about a lack of progress. In December, Irongate's subsidiary, PB
Impulsores, disclosed in a letter to buyers that Trump did not invest in the project and had no role in managing it. The company said it had spent all
of the deposits and was unable to secure additional financing to complete the job.
In a one-page accounting provided to buyers, the developer said it had spent $45.3 million and was out of money. The accounting said that $8.7 million
went to advertising and marketing, $8.3 million to acquire the land, $6.9 million on architecture and engineering, $6.4 million on loan fees and $2.6
million on "site and building costs."
An attorney representing dozens of buyers in the lawsuit against Trump and Irongate said he hoped that Trump's efforts would make it easier for buyers
to recover their down payments.
"We would welcome any and all efforts by anyone, including Donald Trump and his organization, to rightfully return the deposits that were made," said
Bart I. Ring, one of the attorneys representing buyers.
"It doesn't matter where the money comes from. If Mr. Trump was able to do that, it would be good for everyone."
stuart.pfeifer@latimes.com
Bloomberg News was used in compiling this report.
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vandenberg
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| Quote: | Originally posted by k-rico
Mexican developers and crooks Jason Grosfeld and Adam Fisher???
hahaha |
Wonder if they knew Madoff.
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Dave
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| Quote: | Originally posted by vandenberg
Wonder if they knew Madoff. |
With names like Grosfeld and Fisher? I'd bet money on it.
I'd also bet that Madoff gave them a haircut.
When Madoff got P-nched the JDP went down 10%.
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Bajahowodd
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I suppose it is possible that Trump's only involvement was a licensing fee. After all, he did file bankruptcy not too long ago. But the alleged
accounting for all the money seems incredible. An awful lot of money for a billboard and a bulldozer.
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