- This topic has 1 reply, 5 voices, and was last updated 14 years, 6 months ago by
.
-
Posts
-
I am another one who bought an acre of land in Heights of Pacifica in 2005 from Paragon Properties…
I had certain doubts about the deal immediately after I bought it and Bill Gates called my house to tell my husband and I that he will be glad to refund the money and sell it to a higher price to one of the many clients who were waiting for the opportunity to invest in CR.
He was very adamant on the fact that it was a good investment and we could be losing it if he refunded the money. He sent a lot of documents regarding the land, highway, black books and the constitution of a company with our names on it as well as a letter from a Mortgage company. This letter to see if we wanted to borrow money to start building on the land. The Mortgage company’s letterhead is Custom Mortgage Solutions. This letter was signed by Charlie N. Arena.
I have gone to see the land in two opportunities and they have actually taken me to the site. The second time the land had been cleaned and there were paving and digging to put the sewage and water pipes as well as electricity. They also showed me house models to see which one I might be interested in.
After this visit I did not have more doubts… until now…
What’s next?
Did you see our most recent article?
Class Action Lawsuit Filed Against Paragon Properties of Costa Rica April 2010
You might want to contact the attorney listed at the bottom ….
We have cautioned our VIP Members about this company and companies like it for five years, we have had HUNDREDS of complaints and concerns posted in the Discussion Forum, so I must confess that I am very much looking forward to the day when we never again see the names of Paragon Properties of Costa Rica, William Gale or Stephen Tashman.
Scott
Monica,
My friend Kathy and I owned 3 acres total in Phase 1 aka Heights of Pacifica, which we purchased outright at $12,500 each. We were issued deeds and plot drawings all legal-like and stamped and sealed, then found out our properties went downhill at a 45 degree angle into a ravine. These were eventually swapped out for three acres in Phase 2 aka Hills of Pacifica, for which we now have the deeds.Do you have your deed, and is your property buildable? What did you pay?
Contact the attorney in Scott’s acticle. It costs $500 to join the class action, and the attorney will take something like 35% of the first million dollars, a little less on the second million, etc. IF they can get a judgement against these guys. But then, how do you make them pay? They will declare bankruptcy, end of story, nobody gets paid, paragon owners live happily ever after on their stolen assets. Doubtful (to me) that they’ll get jail time, but that’s just my two cents’ worth.
I own $25K worth of deeded rough campground accessible probably only by 4×4…not sure if I want to throw good money after bad, to maybe collect $16K. I’m pretty sure the attorney can get a judgement against them, but if there’s any money in it, I’ll be amazed.
daboss06 – You say you were given replacement land and now have the Title. I would like to know if Paragone commited to build infrastructure of any sort in the contract – could you or indeed any buyer shed some light on this..thank you.
[quote=”simondg”]daboss06 – You say you were given replacement land and now have the Title. I would like to know if Paragone commited to build infrastructure of any sort in the contract – could you or indeed any buyer shed some light on this..thank you.[/quote]
My friend Kathy and I purchased in August 2004. The contract then stated infrastructure (roads, electricity, phone, water,) would be in place one year after the lots were paid in full. That was a lie that was later extended to 18 months–again, another lie. We were issued titles for the 3 phase 1 properties which were unbuildable, later on these were swapped for 3 acres in Phase 2 (“Hills of Pacifica”). In Feb or March of 06 My friend Kathy and I drove down to Ft. Lauderdale/Hollywood supposedly to meet with Julian Siegel (Steve Tashman’s son-in-law) but instead encountered Bill Gale himself entering the building as we pulled up. Gale spent the next 2 hours showing us photos of roads being built, water lines and electricity poles, bragged about how he was going to pave all the roads with clay pavers from his own paver factory and how he was installing a huge 75,000 gallon water reservoir to serve Phase 1,2 aand 3–also sewage treatment (not septic) for these first Paragon properties, which he called his “pet project” because they were the first properties sold. He said we could probably start building in May of 06, when everything would be completed. LIE. We were then directed to various other Paragon “Customer Service Representatives” (Lyle Wexler, who tried to use the “rainy season” excuse on me–I’d had that excuse used myriad times from Gale to Wexler to David Valentine–these guys were all bullsh*tters and liars). They did build their models, and I actually got a VERY slick package showing home models, pricing, upgrades, etc.). I do actually think Gale and company were sincere about completing Phases 1,2 and 3 infrastructure, but then the global financial meltdown happened and the balance of payments from the rest of their deals fell through, and they ran out of money when people couldn’t come up with the extra $40K on their $60K+ hectare lots, which were the size lots they sold after Phase 1,2 and 3 (aka Heights, Hills, and Valley of Pacifica) 1 acre lots were sold out. I read in their Oct 29, 2009 deposition that they had collected $25 million, had refunded $16 million, and had spent the remaining $9 million on cutting rough roads and water lines and some gatehouses–that could all certainly be BS anyway, certainly didn’t look much like $9 million worth of work–where’s the money, Gale, Tashman, Siegel, and Soto?
daboss06 – “The contract then stated infrastructure (roads, electricity, phone, water,) would be in place one year after the lots were paid in full. That was a lie that was later extended to 18 months–again, another lie”.
I wonder if you could clarify something for me – the commitment to build infrastructure states that they would build it after all lots were paid in full? From what you seem to be saying, and please correct me if I am wrong, the vast majority of people didnt complete their payments.
[quote=”simondg”]daboss06 – “The contract then stated infrastructure (roads, electricity, phone, water,) would be in place one year after the lots were paid in full. That was a lie that was later extended to 18 months–again, another lie”.
I wonder if you could clarify something for me – the commitment to build infrastructure states that they would build it after all lots were paid in full? From what you seem to be saying, and please correct me if I am wrong, the vast majority of people didnt complete their payments.[/quote]Phase 1, 2, and 3 aka Heights, Hills, Valley of Pacifica were the only lots sold as 1 acre plots. I wasn’t aware of any financing when I purchased two lots for a full payment of $25,000. My understanding was that each project was a separate entity, and since they were sold for cash first, they were to get the first infrastructure. Gale always told me he made no money from selling dirt, that he wanted to make money on the homes he planned on building for his clients. All properties sold after Phases 1,2, and 3 were the hectare plots (2.47 acres) that people bought for $60K+ with the $25-30K down payment and balance due 5 years later.
Then global financial meltdown caused many to not be able to come up with the balance, and that was money Gale & Co. were counting on to be used for the infrastructure.Phase 1, 2, and 3 aka Heights, Hills, Valley of Pacifica were the only lots sold as 1 acre plots. I wasn’t aware of any financing when I purchased two lots for a full payment of $25,000. My understanding was that each project was a separate entity, and since they were sold for cash first, they were to get the first infrastructure. Gale always told me he made no money from selling dirt, that he wanted to make money on the homes he planned on building for his clients. All properties sold after Phases 1,2, and 3 were the hectare plots (2.47 acres) that people bought for $60K+ with the $25-30K down payment and balance due 5 years later.
Then global financial meltdown caused many to not be able to come up with the balance, and that was money Gale & Co. were counting on to be used for the infrastructure.[/quote]Therefore if Phases 1,2, and 3 also offered financing (although you say you werent aware of any) then the offer appears to be that they are only committed to commencing infrastructure after the balance of payments some five years later. Certainly this appears to be the case with the later Phases. You may think I am taking their side but really I would be happier if everybody got what they were supposed to get and who knows, it could still be possible if the owners of each property formed their own investors group and cooperated to figure out who owes what and if this would be enough to cover the costs of building out the project. I would have thought it far more productive to get together to take control of each project than to line the pockets of a lawyer here with a case that will likely produce very little for a very long time.
Without seeing the contract it’s hard to form an opinion here and certainly if deposits that were sold as refundable were never returned there is a case to be answered. Why not form a web site and try to make it happen. If though, your new partners were only in this as speculation and now don’t want to proceed because they can’t flip it then it’s unlikely they will want to particpate. Having said all this it seems to me that the price of $12 including infrastruture is very low.
If you search this site you will find many posters who stated infrastructure would be completed 18 months from contract date. This is one reason they built out two model homes two years ago, they planned to complete the infrastructure. I occasionally looked at their website which bragged about the progress of said infrastructure. Of course it was also pointed out this was just silly, 18 months from which contract? the first, 5oth?
Whether you believe, as Simon does that you (possibly) got what you signed up for(buyer beware) or like many others, you got taken; you are screwed. Class action is probably a waste of time I agree. Taking over the projects with a bunch of folks who bought via a lot of bs promises and a high pressure sales force working out of Florida and completing these train wrecks, doubtful. A rock and a hard place sounds just about right.
[quote=”*Lotus”]If you search this site you will find many posters who stated infrastructure would be completed 18 months from contract date. This is one reason they built out two model homes two years ago, they planned to complete the infrastructure. I occasionally looked at their website which bragged about the progress of said infrastructure. Of course it was also pointed out this was just silly, 18 months from which contract? the first, 5oth?
Whether you believe, as Simon does that you (possibly) got what you signed up for(buyer beware) or like many others, you got taken; you are screwed. Class action is probably a waste of time I agree. Taking over the projects with a bunch of folks who bought via a lot of bs promises and a high pressure sales force working out of Florida and completing these train wrecks, doubtful. A rock and a hard place sounds just about right.[/quote]
Lotus – So these people should just give up? If the buyers no longer like the state of the real estate market today and, like some of the banks here on other projects (Sonasty Jaco One), they decide not to complete their payments, then yes there is no way it will happen. If the project land is free and clear and the owners can take control are they not in a better postion than they are now?
I don’t have all the details but if they have five projects that should equate to around 300 clients per property. If they only put in another $10k each they could a lot done in each project with $3m – it goes a long way in this market. Simply being negative because of the sales tactics employed some two years ago is frankly not helpful.
- You must be logged in to reply to this topic.
