LOS ANGELES (CN) – A large group of buyers of what were supposed to be luxury condominiums in Baja, Mexico have sued developers Donald Trump, Irongate Development, and a group of related companies for allegedly misrepresenting the extent of Trump’s involvement in the failed project and squandering funds.
According to a 197-page complaint filed in Superior Court, however, Trump did not invest in “Trump Ocean Resort Baja” but instead was merely a “talking head” promoting it.
The project developers allegedly failed to properly use money deposited on the condominiums and also failed to properly register the sales under U. S. law and make full disclosures. They also allegedly misrepresented the progress of construction of the buildings.
Among other things, the suit also claims the developers never had financing for the buildings, failed to get a building permit, and squandered funds for purposes not related to the dvelopment. They also did not disclose that certain “favored” buyers did not share the risks of other buyers.
The complaint was filed Daniel J. King and Bart I. Ring.