Donald Trump Sued In New Lawsuit Over Failed Project

by Deidre Woollard (RSS feed)
Mar 9th 2010 at 11:01PM

Looks like the saga of the failed Trump Ocean Resort Baja is far from over. Radar Online has documents that show a new lawsuits has recently been filed by seven investors in the project. The individuals sued not just Donald Trump but his children, Donald Trump Jr. and Ivanka Trump and others saying they were " duped into buying hotel-condominium units that were never built." The plaintiffs have asked for punitive damages of no less than $10 million dollars.

The lawsuit details the many ways that the plaintiffs feel like they were swindled by Trump. They were led to believe that Trump was directly involved when instead it was a licensing deal. The lawsuit produces evidence including newspaper stories to prove that the project was widely known as a Trump project and that Ivanka Trump and Donald J. Trump, Jr. attended key sales events for the project and announced that they would be purchasing units in the project.

What was to be a 526-suite luxury project with a spa, swimming pool, restaurants and shops has instead turned into an abandoned excavation site with six cement pads sitting on it. The lawsuit papers say that Trump and the developer Irongate did not have financing and construction permits approved before the sales and that the site itself had contamination and mold issues. There is also an allegation that certain "favored" buyers were allowed to purchase without a deposit while others including the plaintiffs were forced to tender hefty sums before purchase.

Last year after a first lawsuit in which investors sued Donald Trump and Los Angeles developer Irongate Wilshire over the failure of the Trump Ocean Resort Baja Mexico, Trump filed a lawsuit of his own. His lawsuit accessed Irongate Wilshire's principals of not following through on the plans for the five-star resort which bore his name. At that time Trump claimed that he was "unfairly targeted" by the buyers' lawsuit because he was not a developer of the project but the latest lawsuit does indicate that his family's involvement may have gone deeper than a name.

Tags: donald trump, failed condo project, irongate, trump baja

Filed under: Real Estate Developments

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Reader Comments (Page 1 of 2)

LeMarbeResGroup Mar 11th 2010 6:36AM

Trump should join Madoff, when are people going to wake up to see how this man conducts business (if that is what you call it).

BTDT Mar 11th 2010 9:55AM

It takes a certain kind of fool to do business with this guy.

peterpiper Mar 11th 2010 7:21AM

This is news? It never fails to amuse in that as many who deal with big business tycoons and then end up on the short end of the stick end up are always whining and complaining when in reality they were initially trying to do the same to the other. That's big business- screw the other guy before he screws you! It's been the credo for centuries and any amateur finding themselves "duped" should had either researched or insured themselves a bit more, or should not be on that business level in the first place. It's by no means the place for the weak and incompetent.

Arthur J Caputo Mar 11th 2010 7:55AM

Mr big shot has no clothes. Trump has more debt than the USA. This is what happens to people where money is their God. The arrogant bastard takes no responsibility ,of course. Even when he and his family go around pushing sales from suckers. This is not the first time he is sued and it won't be the last.

Arthur J Caputo Mar 11th 2010 7:56AM

Mr big shot has no clothes. Trump has more debt than the USA. This is
what happens to people where money is their God. The arrogant bastard
takes no responsibility ,of course. Even when he and his family go
around pushing sales from suckers. This is not the first time he is
sued and it won't be the last

mcptginc Mar 11th 2010 9:50AM

Last week we were at the Jones Beach State Park in NY and we witnessed the Trump by The Ocean fiasco. Empty, windblown, abandoned, thought I saw a few tumbleweeds blow through, and this is the real Trump; blow hard, salesman, and living off of borrowed monies. These scenes are what lies deep in his own character. He's more promoter than anything else. Heck he thinks '"his" T.V. show is the best the medium can offer. P.T. Barnum would be proud. Hopefully justice is served and some of this gold plated phony is rubbed off to expose him for what he is. And he is humorless to boot!

WminPhoenix Mar 11th 2010 9:19AM

The funniest thing about Don Trump is that if he did not have dad's money and connections he might have been where he is today. Yes, the NYC real estate has made money but Atlantic City has been a bust and the money boys in Vegas have kept him out. The condo project in Baja Mexico was doomed from the start simply because the "developers" turned dirt before the permits were issued. The Trump's did actively promote the project.
Don's a self promoting huckster and a very amusing person.

CHABSENTIA Mar 11th 2010 9:14AM

Trump filed a lawsuit of his own after the first "Buyer" lawsuit. Trump filed it against Irongate, This means one of two things. Either Trump is trying to lessen his Liability or Irongate was the culprit and Trump didnt follow up. The Courts will decide who has the greatest fault and apportion the damages. I have no doubt that certain "favored" people got in for no money down,however, Trump was not collecting the money as this is the responsibilty of the developer. So we do not know if the favored treatment was because of developer or if Trump recommended it. From soem of the comments it is obviuos that people dont understand it. Madoff conducted a Ponzi scheme in which early investors were paid off by later investors. This is not the case here.The only question is whether Trump was naive to a certain extent or how much he tolerated the actions of irongate. It would be simple to check on the status of the various permits etc so why wasnt it done by both the investors and Trump? I would think that the Investors werent that bright or they would have checked up on it before giving large sums of money.

debi Mar 11th 2010 9:20AM

HE DID THE SAME IN TAMPA, FLORIDA. THOUSANDS ARE OUT OF THEIR MONEY. HOW DOES HE GET AWAY WITH THIS? HE OBVIOUSLY KNOWS WHAT HE'S DOING. HE SHOULD BE LOCKED UP W/MADOFF, FOR SURE.

rudewaitress Mar 11th 2010 11:40AM

I hope they nab that SOB and his cohert kids too. You just get sick of all the crap this jerk gets away with. Yet isn't it interesting that each time one his his garbage TV shows is about to debut, along comes some sort of controversy.

nibsca Mar 11th 2010 9:38AM

The real problem is that Americans are too trusting. We believe what we see and hear. We are enamored by big names and fame and we think that other people care about us and our money, and their own reputation. They only care about getting our money, no matter what they have to promise us or how they have to slide, cheat, steal and weasel. They will say anything they think will sell their garbage. And they always have a convenient way out with forms and legalities. They practice their art regularly and are slicker than an eel in a barrel of snot.

nibsca Mar 11th 2010 9:42AM

I posted a comment, where the hell is it?

BTDT Mar 11th 2010 9:57AM

Look up.

tpwf Mar 11th 2010 12:29PM

Sorry. There were just so many typos in this article that I could not finish it. Should be embarassing for the writer.

Elliott Marshall Mar 11th 2010 10:53AM

All you have to do is think about the last names of Madoff ("Made off" with the money), and "Trump".... you got "Trumped." I was a victim of the Madoff scheme, but I'll be hell bent if I fall for something that the Trumpster is involved in. These creeps relied on their "good name," and both men made shit from gold.

OINKJOHNSON2 Mar 11th 2010 10:59AM

Why would anyone put up a substantial deposit for a condo, based on artist's rendition of what it will eventually look like? That is, before a shovel full of dirt has been turned. Only a fool, in my opinion. One who does such a stupid thing likely deserves to lose his/her money.

Karen Mar 12th 2010 10:54AM

The reason people like Bernie Madoff and Donald Trump can get away with their schemes is because of greedy people wanting to get something for nothing. It's all about what drives the particular market. If there were no crack addicts,the demand for crack would dry up and the dealers would all go out of business. If an average Joe like you or I had EVER filed for bankruptcy, we would be avoided like the plague. I cannot understand why people keep going to him. He is arrogant and he looks like a sow's ear dressed in a silk purse,know what I mean? As long as there are greedy people,there will be people like Donald Trump trying to make money off of them. I call them parasites...living off of other people.

westronandnan Mar 11th 2010 10:52AM

Trump always escapes while investors lose their shirts. Look at his Atlantic City casinos. When will people wise up to the ahole.

Joe Papierz Jr Mar 11th 2010 10:44AM

Since when does reading about a project in the newspaper and seeing a commercial on TV substitute for reading a contract before your sign? It is a pretty sad person who buys a Condo based on who they think will also live in the complex. As though Trump would actually invite them over tor drinks in the evening or Christmas Dinner? A fool and his money are soon parted. Forget the law suit and save the additional money you would waste on a lost cause. The only winners here are the lawyers for both sides and the writers of comic pages everywhere who can now take a day off.