Paragon Properties of Costa Rica – Third Amended Class Action Complaint Filed June 2011
On the 16th June 2011 the Sarelson Law Firm filed a third amended class action complaint against Paragon Properties of Costa Rica, S.A., William Gale and Esteban Soto, its American subsidiary, Properties of Costa Rica, Inc., its owners and many others.
This lawsuit arises from a massive land fraud orchestrated by a number of individuals and the entities they controlled. The exact details of the fraud remain hidden, but,upon information and belief, the Plaintiffs know the following facts based upon the deposition testimony of William Gale and documents obtained outside of this litigation.
“This was my last chance to make a big score.”Bill Gale, Chairman of Paragon Properties.
Paragon’s spelling leaves a lot to be desired www.BuyCostaRicanLad.com instead of www.BuyCostaRicaLand.com and if you’re wondering about the “developing Costa Rica” advertisement above? The ocean club, the “executive golf course”, the shopping plaza, the Club House, the tennis courts, the swimming pool, the basketball courts and football field were never started never mind “developed.”
You can see the new Complaint on the Florida Consumer Lawyer Blog in case you don’t have the time to read all 73 pages, here are a few exact quotes taken directly from the attorney’s complaint:
- According to Gale, “this [Paragon] was going to be my last hurrah. This was my last chance to make a big score.”
- Paragon, like the paradise it purported to sell, is a myth. Years after making these promises, the vacant and unimproved land remains vacant and unimproved, the deposit money and the installment payments are gone, and valid deeds have not been provided to those buyers who made their full payments.
- Approximately 900 to 1,100 individuals were victimized by Paragon. The transactions always involved the same form contracts, substantial upfront payments, and the guarantee that all monies paid were 100% refundable if the transaction did not close — a promise that Paragon knew it could not keep because it was transferring the funds it received to its principals and their designees, thus intentionally under capitalizing itself.
- Paragon Properties of Costa Rica, LLC was created to perpetuate a fraud and to mislead investors, creditors and the public.
- Stephen Tashman “… has a long history of fraudulent business activity in South Florida,most notably being sued by the Federal Trade Commission and being ordered to pay $28 million for a fraudulent calling card scheme.
- This is a Rule 23(b)(3) opt-out class action. There were approximately 2400 lots sold by Paragon. It is believed that there are approximately 900-1100 individual investors, with some investors purchasing multiple lots. The average investor (including those who bought multiple lots) deposited approximately $50,000 with Paragon. The total amount of money in controversy is estimated at $50 million in actual damages.
- As the masterminds and principal beneficiaries of the scheme, Defendants Stephen Tashman and William Gale are liable for all of the financial injury caused by the scheme.
- It is estimated that the Paragon Enterprise received approximately $50 million from its racketeering activities, which was controlled,disbursed and hidden by Defendants Stephan Tashman and William Gale.
Paragon Properties of Costa Rica Articles On This Site
Long time VIP Members of WeLoveCostaRica.com will remember me writing about how much caution should be taken with this company – and companies like it – for about five years.
- Paragon, Paramount Parrita Land Sales
- Costa Rica Land Sales in Parrita – True? Or too good to be true?
- Paragon Properties in Parrita – Their Attorney Responds by Attorney Michael Fingar
- Costa Rica Paragon Photographs of Model Homes from Parrita – 13th October 2005
- Costa Rica’s Invisible New International Airport
- Paragon Properties Of Costa Rica – VIP Member claims projects in Parrita appear to be abandoned.
- Paragon Properties Chairman writes he is “very proud to have been involved with” a development featured in ‘Planning in the Wake of the Florida Land Scams’ report.
You may also find the following website articles of interest because Stephen Tashman has been friends with William Gale and involved with Paragon for a very long time:
- Psst, Sucker. Beachfront Property! It’s hard to keep a good hustler down. This link is over 5 years old and no longer works…
- The Grift of Gab – Stephen Tashman
- Telecard Dispensing Corporation
- Federal Trade Commission – [ http://www.ftc.gov/opa/2000/06/telecard2.htm ] and [ http://www.ftc.gov/os/1998/10/troord.htm ]
- Kiosk Scams – [ http://www.kioskscams.com/menu1.html ]. This site is no longer active.
- Boiler Room Operators/Telemarketers Criminally Charged in Multi-Agency Crackdown of Business Opportunity Schemes
Search the WeLoveCostaRica.com ‘Discussion’ forum and you’ll also find hundreds of references to Paragon and a 21 page report (available only to our Premium VIP Members) entitled The Disgrace Of A Company Called Paragon Properties of Costa Rica is available in our Download Library here.
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Do you have questions about this Paragon lawsuit?Please contact the law firm of
Matthew Seth Sarelson, Esq1401 Brickell Avenue, Suite 510Miami, Florida 33131(305) 379-0305(800) 421-9954
Andrew Makarik
to@welovecostarica.comAndrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.
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