FREEZE order in the Dominican Republic in USD 170 Million real estate fraud case

The Judiciary of the Dominican Republic has issued a FREEZE order no 038-2009-00410 on April 30, 2009 in connection with a USD 170 Million Dominican real estate fraud involving Sun Village Resort & Spa Puerto Plate and Sun Village Juan Dolio.

The Canadian father-and-son team were operating Ponzi Scheme real estate businesses in the Dominican Republic. They defrauded thousands of people in the U.S. and Canada who invested USD 170 million in luxury vacation properties, according to a lawsuit filed in federal court in Miami.

The lawsuit contends that Frederick and Derek Elliott, through a web of offshore companies and other entities, improperly used investor cash for such things as a yacht, a private plane and investments in movies and to pay off gambling debts. One project was an annual Dominican film festival.

"Some people are very greedy. They will stop at nothing to scam someone out of their money," says the lawsuit, filed on behalf of investor Klaus Hofmann of Palm Harbor by attorneys Michael Diaz and Hilda Piloto. About 700 other investors are seeking to join the lawsuit. From the Elliott Committee website you will find all news and updates about the court case including a PFD.file of the very detailed Dominican FREEZE order.

The lawsuit mainly involves two developments in the Dominican Republic: the Sun Village Resort in Puerto Plata and a former Sheraton Hotel in Juan Dolio located next to the financially distressed Marbella by Metro Country Club project.

The Sun Village property, according to the lawsuit, "remains significantly incomplete" and is losing money and the Juan Dolio development is about 60 percent complete. Much of the investors' money intended to finish these projects was allegedly diverted by the Elliotts for personal expenses or other ventures, the lawsuit claims.

In this forum you can also follow the case and other investors comments.

The Elliots are also defendants in this USD 3 Million filed by the State of Idaho as mentioned in March on Dominican Watchdog.

Dominican Watchdog advice all possible investors coming to the Dominican Republic to read our Dominican Property Guide - 10 simple rules on how to avoid fraud and corruption on the Dominican real estate market. You should only use Dominican estate agents and lawyers that are trusted by Dominican Watchdog.

Dominican Watchdog has issued a Blacklist over estate agents in the Dominican Republic. Dominican Watchdog has also in the interest of better consumer protection, issued a Watchlist on real estate developments in the Dominican Republic, that are not using escrow accounts or a title guarantee company. Dominican Watchdog recommends that you only buy real estate from agents and developers through escrow or Stewart title guarantee company.


Go back | Date: 21 May 2009
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