Ginn Sur Mer Lawsuit Filed
Ginn sur Mer update – a new lawsuit is filed, infrastructure construction continues, sales are suspended, and the Credit Suisse joint venture has not been finalized.
Palm Coast, Florida – March 23, 2009 – Real estate developer Bobby Ginn and his financial partner, Lubert Adler continue to adjust The Ginn Company to the harsh realities of today’s market. Ginn sur Mer, their $4.9 billion project in the Bahamas is no exception. A lawsuit was recently filed by 7 Ginn sur Mer property owners and sales have been suspended, but construction of the infrastructure continues. Meanwhile, Ginn sur Mer remains the only unresolved issue of the $675 million Credit Suisse loan default. The purported joint venture between the developer and lenders has not been finalized.
Lawsuit
A lawsuit was filed December 18, 2008 by 7 Ginn sur Mer property owners. Attorney for the plaintiffs is Dana Ballinger, one of the property owners named in the suit. Named as defendants are:
Ginn-LA West End, LimitedGinn Financial ServicesStewart Title Guaranty CompanySimon ConwayPicket Fence RealtyRobert F. MastersEdward R. (Bobby) Ginn, III
The lawsuit alleges several violations of the Interstate Land Sales Full Disclosure Act (ILSA). ILSA requires disclosure of specific and pertinent information. Failure to provide this information is a violation. It also alleges Unlawful, Fraudulent or Misleading Sales Practices as well as Conspiracy to Defraud.
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Count I – Alleges that the Property Report failed to disclose title issues regarding clear title to the land on which Ginn sur Mer was to be developed. Specifically, 80 acres are in dispute. A separate lawsuit ("Williams Litigation") alleges wrongdoings by the previous owners of the Ginn property, as well as lawyers and Bahamian officials to defraud the Williams family of their land. Ginn Development agreed to accept title subject to this litigation. The litigation is ongoing.
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Count II – Property Reports did not include the required information about property taxes including:
"When will the purchaser’s obligation to pay taxes begin?"
"To whom are the taxes paid?"
"What are the annual taxes on an unimproved lot after the sale to a purchaser?"
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Count III – Alleges that the Property Report failed to "explain the effect of any release provisions of any blanket encumbrance, mortgage or lien." This is in reference to the Credit Suisse loan.
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Count IV – Alleges that the Property Report did not include the required Agent Certification.
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Count V – Alleges that the Property Report failed to include material facts concerning the manner of recording of a Conveyance Deed in the Bahamas and the related risks to a purchaser.
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Count VI – Alleges the Property Report failed to include material facts concerning the financial ability of Defendant Ginn-LA West End to develop and operate the development as marketed. This count also relates to the Credit Suisse loan.
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Count VII – Plaintiff Contracts failed to include required language concerning remedies after default. Remedies in the Property Report are not consistent with remedies in the contract.
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Count VIII – Unlawful Sales Practices – Defendant Conway and Ginn Sales Executive Howie Malloy, over the radio to the general public, repeatedly represented that the lots had good investment potential and would increase in value without the mandatory supporting written documentation required.
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Count IX – Fraudulent or Misleading Sales Practices – Ginn-LA West End agents Chris Matoska and John Douglas Hardy swore that they witnessed plaintiff signatures. The lawsuit alleges that they did not witness the signatures.
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Count X – Conspiracy to Defraud – Alleges that Defendants Ginn-LA West End, Masters, Bobby Ginn, Stewart Title and Ginn Financial conspired to conceal the true facts about the title to prospective purchasers.
Some Plaintiffs have filed claims to Stewart Title on their title insurance but have not received a reply. Others have written letters rescinding their contracts. No reply has been received. Several Plaintiffs did not receive a copy of a recorded Conveyance Deed.
This 112-page lawsuit has some very interesting tidbits. You may want to see it. If so, click here.
Meanwhile, sales are suspended. Ginn has pulled their HUD report. Ginn’s closing of its real estate division included the Bahamas. The negotiated outcome of the Credit Suisse default resulted in the sale of Laurelmor, near Blowing Rock, N.C. and the chapter 7 bankruptcy of Ginn-owned property at Tesoro, in Port St. Lucie, FL and Quail West, near Naples, FL. The settlement was also reported to include a Ginn sur Mer joint venture between the Credit Suisse lenders and Ginn. A Ginn spokesperson reports that the terms of the joint venture are still being negotiated.
Bobby Ginn and his wife, yacht and fishing boat were seen at Old Bahama Bay a few weeks ago. Old Bahama Bay is another Ginn-owned property adjacent to Ginn sur Mer. It was not part of the Credit Suisse loan default. Also, a recent visitor reports that an Arab sheik has been seen trolling around the property looking for a bargain.
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GINN SUR MER LAWSUIT
SO…IS THE BOTTOM LINE..LOTS WERE SOLD THAT DID NOT HAVE CLEAR TITLE?
Good info…..but then
All good info to report. But you had to go a little "gossip girl" there at the end, reporting that a man and his boat were seen at a secret island in the Bahamas? Could it be the second shooter? Maybe Loch Ness or Bigfoot? Will he escape his island paradise in one piece? Is the name Ginn a secret code for to signal aliens from another galaxy? Tune it tomorrow, same bat time, same bat place (cue days of our lives music as we fade out–lots of drama in hand).
To follow up on your diligent reporting, it has been alledged that the strange man on the island had egg salad for lunch. I repeat, egg salad. How do we verify that for sure. Reports are also coming in that, if all goes as planned, Mr. Ginn will be napping sometime tomorrow after lunch. All pertinent stuff, at least for this website.
I’m not trying to be a jerk, but really man, providing info is a great service that many appreciate, but leave the juvenile gossip crap out of it. You are on a witch hunt and don’t care if facts are right or not–be careful or the next law suit you report on will have your name in it…….tune in tomorrow to see if that comes true!
Witch hunt
Men u are on a witch hunt here. Why dont just stay with the facts???At this economy its bad every were…but at leased Ginn is trying to hold what hew can…which means saving Jobs.
Reg the boat u forgot to mention, that he didn’t use it and that it is most prob the smallest( and oldest) in the Marina.Maybe jump on some Jerks u know as well who still have kicked out all there staff, ride in a private jet and have a 118 Ft yacht.
Stay with the facts and keep the rest for yourself.
Only Question left?
So I guess the only question that remains is why weren’t these property owner’s filing lawsuit’s from 2001-2005???
how about an article regarding why property owner specific lawsuit’s were’nt filed against Ginn during those years? just to be balanced of course.
Its great to see how people are so quick to blame everyone else except for thier own common sense!!
Common sense??
Read the Complaint. All of the property owners bought in 2006. Not quite possible to sue before you purchased the property.
mikey j ,ralph
you guys must be bobby [ the horses are coming ] and bobby jr.[the water is almost here ginn ]. theses are the guys that lied and cheated us all. they deserve any bashing they get. they should get on their horses and ride off into the sunset and hope we never see them again.
wow
toby, thanks for the great reporting as usual,and sorry for the comments by gobby ginns crew. its time the phonys that write in to you to get on thoses horses that frankie was refering to…the ginn empire is gone, the only ruins left is bella,and that will be gone shortly. how anyone with a second grade education can defend this crook even in jest is just mind boggling…one disagreement toby, if these new guys coming in to run hammock and reunion dont have a concrete plan from day one which includes being honest with the members they will fail pretty fast. the dues have to be lowered at least until the promises are fullfilled or else all the remaining members will stop paying.
futhermore
where is any of this getting the city of palm coast, florida? Have we now achieved our dream of half completed developments with shut down developer sales center’s and slowed growth due to lawsuits?
Have we officially started going backwards yet like most of this city seems to want us to? And also bobby ginn does not ride a horse… its 2009 he drove in a car or flew in a plane.
As much as you want it to be its not the 1800’s and this isn’t the wild west so grow up tonto.
not true
oh, bobby has been misleading and mischevious in the past for sure, but he has also completed the majority of his projects. He has always had marketing that promoted his final community product and lifestyle.
The sales reps have always been relatively aggressive and have pitched appreciation, but again usually on completed product and for a long time to much gain for the core group of followers.
Where were the "failure to disclose and fraud charges" in the years that were fun for all?
See it really all leads back to the market because when it was healthy nobody cared, but when its rusty you all have nothing better to do then sue.
If they all thought so badly of bobby, why did they buy at old bahama bay in the first place???
bobby jr.
WHAT KIND OF MEDS. ARE YOU TAKING. I BEEN AT REUNION LAST 5 YEARS. TELL ME BOBBY, WHERE ARE THE HORSES, WORLD CLASS SPA , WORLD CLASS GYM, MEMBERS CLUBHOUSE,ETC.. THEY SOLD EVERY PIECE OF PROPERTY W/IN MINUTES EXCEPT RECENTLY SOME VILLAS. SO DON"T TELL ME ABOUT COMLETED PROJECTS.[TAKE A RIDE TO BELLA, HE HAS ALL THEIR MONEY, DOES THAT LOOK COMPLETED TO YOU? DON’T RESPOND I KNOW THE ANSWER PS " THE YEARS OF FUN " MYSELF AND A LOT OF PEOPLE I KNOW ARE STILL WAITING
Caveat Emptor
Definition: "Literally means let the buyer beware. The buyer is responsible for finding out the condition of the property by survey and any matters affecting the legal title to the property by using a lawyer to check the title and carry out searches." I think this says it all to the Monday Morning Quarterbacks who are now blaming Bobby Ginn for all their troubles. He did not cause the real estate market to come to a screeching halt!
creative
hey you two bobs…you could have been more creative with your first name bob…like joe or sid….how could you use your real names????bobby sr and bobbyjr…frankie is telling you how you screwed over the buyers at reunion and you two bobbys have the same answer as usual….but truth always prevails …like mr madoff you two bobs will have justice prevail as well
YIKES
I am sure most of Ginn’s actions over the years have been legal but ethical? He is a teflon developer and unfortunately he is leaving his troubles behind, with millions stuffed into his pockets. Greed – it’s the American nightmare!
going foreign
Reports of a sheik investor , maybe Bobby has run out of people in the US to con , going offshore and hopefully from there do an exchange for property in a prison cell for the misrepresentations and frauds he has woven with all his corporate veils
amazing
so funny how all these people want to blame someone else for their mistakes. the bitterness!! & this toby guy acting like a tabloid. i thought he was a teenager the way he reported things. shocked he isnt being sued for slander yet!!
Reply to Dean
The title issue affects only 80 acres, not the rest of the property. I assume (I am not a lawyer) any settlement of the title lawsuit would be monetary between the title company and the plaintiff in that case, not a return of the land. The legal process may cause additional delays in any build out of the project, however.