08/03/2010 // West Palm Beach, FL, USA // Tara Monks // Tara Monks
New York, NY – Donald Trump and his three children are facing a 180-page lawsuit seeking $1.7 million in refunds, more in punitive damages and the nullification of purchase contracts made by investors to his SoHo Grand hotel, as reported by Reuters. The lawsuit was filed in Manhattan Monday, August 2, 2010.
Attorneys for 15 buyers claim Trump fraudulently boasted a higher percentage of units were sold in order to gain more interest from potential buyers. According to the suit, Trump and his three children claimed the condo/hotel property was up to 60 percent sold.
Buyers learned that the building was only 16 percent sold after offering plan went effective.
Trump SoHo is a joint project between the Trump Organization, Bayrock Group LLC and Sapir Organization LLC.
The smallest of the 391 units were priced over $1 million.
The lawsuit claims, “The defendant’s false, deceptive and misleading statements were aimed at inducing consumers to enter into purchase agreements.”
It further declares, “Had the defendants not engaged in these fraudulent and deceptive practices, the plaintiffs would not have entered into their purchase agreements, would not have made their initial deposits and would not have made their additional deposits.”
While The Trump Organization is merely the manager of the hotel, not the developer, the lawsuit asserts the building is “a signature project of Trump’s three children, Donald Trump Jr., Ivanka Trump and Eric Trump, who have both an equity interest in the project and have publicly used the project to try to establish some independent credibility in the real estate business beyond their mere status as Trump’s children.”
The case is Palmer Gardens LLC v. Bayrock/Sapir Organization LLC, U.S. District Court, Southern District of New York, No. 10-05830.
Phone: (561) 865-6021