Costa Palmas is a luxury resort by the Los Angeles-based real estate firm Iron Gate. Costa Palmas is the resort’s area of operation. At Costa Palmas, homes range from $2.5m to $250,000 for waterfront properties.
In 2021, Jason Grosfeld said in a lengthy interview that the virus impacted Costa Palmas’s 1 billion dollars worth of property transactions. Many Costa Palmas residents, however, believe the Iron Gate, a modern-day Bernie Madoff, is using its profits from its luxury properties to extort or steal money from homeowners to boost the earnings of Iron Gate.
Costa Palmas Brings A Claim:
Sources tell us they know that Iron Gate, its Mexican subsidiaries, and its representatives have filed criminal. And civil lawsuits throughout Mexico against them over racketeering, fraud, conspiracy, extortion, and other crimes. Sources claim that Two Costa Palmas homeowners have filed an action with Iron Gate and some of its representatives in the United States. Further legal proceedings are in the process of being prepared. Many police departments across Mexico and the US, as well as other authorities, are conducting investigations.
Jason Grosfeld Fraud In the public filings made regarding the matter of Iron Gate before the federal courts in California, two homeowners of the Costa Palmas GS 1975 LLC TRG CP and GS 1975, LLC TRG CP accuse the CEO, founder Jason Grosfeld as well as the directors of development, marketing and Michael Radovan, along with the General Counsel Mitch Laufer of luring potential buyers to buy homes by promising them millions of dollars in building.
The suit claims that Iron Gate misled customers by declaring that homes could be built in 18 months. They used the funds to fund other projects or construct new houses. Iron Gate has billed homeowners millions of dollars for construction places; however, they were only used briefly.
Jason Grosfeld’s Online Reputation: Statements on the Court Cases That Hurt:
In addition, lawsuits allege the Iron Gate, its agents, and its personnel threatened to end contracts or cease construction if the money wasn’t paid. The result was extortion, which led to the demand of thousands of dollars from plaintiffs. The plaintiffs in both cases allege that Iron Gate retaliated immediately. They attempted to defend themselves from the wrongdoings committed by Iron Gate by threatening to stop the subscriptions. And memberships to the Costa Palmas Beach & Yacht Club.
According to the state’s court records from GS 1975 LLC, Iron Gate. He asked that the case be transferred for arbitration to Mexico. Steve Anderson, a representative of GS 1975 LLC, claims that Iron Gate was at the heart of the arbitration process in Mexico. GS 1975 LLC has filed an action in the case of Iron Gate seeking more than $20 million in damages.
Jason Grosfeld’s Father:
TRG CP, LLC has yet to respond to our attempts to reach TRG CP, LLC. They have yet to respond. According to the Real Deal reports, Jason Grosfeld‘s father, James Grosfeld, was a famous investor at the Black Rock firm. Where James Grosfeld had invested $94,000,000 in shares. James Grosfeld served as the Pulte Group CEO and Chairman between 1974. And when the directorships were dissolved because of disputes with the company regarding management decisions. James Grosfeld was in both roles for a total of 16 years.
Final Judgements in the Case
Iron Gate made numerous false claims about the duration. And the expense of finishing construction to obtain funds, which totaled thousands of dollars. Iron Gate invested over five million dollars of the plaintiff’s money, however, the building was just an unfinished concrete shell.
These accusations are similar to those that were made in the lawsuit filed by GS 1975 LLC. Iron Gate is holding the plaintiff in his home. And refuses to move until he has paid millions more to cover the legal fees. We have tried to contact TRG CP LLC for clarification but haven’t received a response.
Based on our source, other Costa Palmas buyers may have similar experiences or allegations. This could indicate the Iron Gate and its representatives may be liable for additional legal actions. We’ve also heard authorities from the Mexican as well as the American Federal Authorities are investigating the situation.