IN THE ELEVENTH JUDICIAL CIRCUIT COURT IN AND FOR MIAMI-DADE COUNTY, FLORIDA Case No.: ___________ _ ELISABETH DENTON, an individual, & SIDNEY CROSSLEY, an individual Plaintiff, v. PARADISE INTERNATIONAL PROPERTIES OF COSTA RICA S.A., a foreign corporation, PARADISE INTERNATIONAL PROPERTIES, INC., a Florida corporation, LARRY M. WEBMAN, an individual GENE S. ROSEN, an individual, & JOHN DOES 1-10 Defendants. COMPLAINT Plaintiffs, Elisabeth Denton' and Sidney Crossley, sue Defendants, Paradise International Properties of Costa Rica S.A., Paradise International Properties, Inc., Larry M. Webman, Gene S. Rosen, and John Does 1-10, collectively doing business as a single entity known as "Paradise." Introduction, Parties, Jurisdiction, Venue, Facts 1. Paradise owns, markets, and sells lots of vacant and unimproved land in Costa Rica. Paradise requires its American customers to make substantial deposits as part of the contract for the sale of the land. The deposits are purportedly 100% completely refundable in the event that the buyer provides written notice of intent to cancel and requests a refund within 10 days from inspection. One of Paradise's major selling points is that the deposits are 100% refundable. Paradise promises buyers that infrastructure, including roads and electricity, will be IOn some letters and documents in Plaintiffs possession, Ms. Denton is referred to by her name before marriage, Elisabeth Beckon. SARELSQN LAW FIRM, P.A., 1401 Brickell Avenue, Suite 510, :Miami, Florida 33131, 305-379-0305, 800-421-9954 (fa;,,) www.FloridaConsumerLawyerBlog.com www.SareJson.com
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IN THE ELEVENTH JUDICIAL CIRCUIT COURT IN AND FOR MIAMI-DADE COUNTY, FLORIDA
Case No.: ___________ _
ELISABETH DENTON, an individual, & SIDNEY CROSSLEY, an individual
Plaintiff, v.
PARADISE INTERNATIONAL PROPERTIES OF COSTA RICA S.A., a foreign corporation, PARADISE INTERNATIONAL PROPERTIES, INC., a Florida corporation, LARRY M. WEBMAN, an individual GENE S. ROSEN, an individual, & JOHN DOES 1-10
Defendants.
----------------------------~/
COMPLAINT
Plaintiffs, Elisabeth Denton' and Sidney Crossley, sue Defendants, Paradise International
Properties of Costa Rica S.A., Paradise International Properties, Inc., Larry M. Webman, Gene S.
Rosen, and John Does 1-10, collectively doing business as a single entity known as "Paradise."
Introduction, Parties, Jurisdiction, Venue, Facts
1. Paradise owns, markets, and sells lots of vacant and unimproved land in Costa
Rica. Paradise requires its American customers to make substantial deposits as part of the
contract for the sale of the land. The deposits are purportedly 100% completely refundable in the
event that the buyer provides written notice of intent to cancel and requests a refund within 10
days from inspection. One of Paradise's major selling points is that the deposits are 100%
refundable. Paradise promises buyers that infrastructure, including roads and electricity, will be
IOn some letters and documents in Plaintiffs possession, Ms. Denton is referred to by her name before marriage, Elisabeth Beckon.
SARELSQN LAW FIRM, P.A., 1401 Brickell Avenue, Suite 510, :Miami, Florida 33131, 305-379-0305, 800-421-9954 (fa;,,) www.FloridaConsumerLawyerBlog.com
www.SareJson.com
in place within 18 months of contract signature. Paradise also promises to construct residences
on the property, at the purchaser's option.
2. This conduct is similar to the competing "Paragon" scheme currently being
litigated before Judge King in the Southern District of Florida. Oginsky v. Paragon Properties of
Costa Rica, No. 10-21720 (S.D. Fla. filed Aug. 24,2010). Webman is a Defendant in that
lawsuit as well, both directly and indirectly through two separate corporations that he owned and
operated to fraudulently sell real estate in Costa Rica on behalf of a different developer.
Webman was part of the Paragon conspiracy (and was sued for both civil theft and racketeering)
but, at least according to Rosen, at some point he stopped selling real estate for Paragon and
formed his own competing Costa Rican development company. (Ie., not satisfied with the
Paragon fraud, he formed his own competing fraudulent real estate company).
3. None of the Defendants actually own land in Costa Rica. The Defendants lack
the financial resources, personal capital and actual ability to complete the project (to the extent
the project was ever legitimate in the first place). The Plaintiffs have been told by Webman and
Rosen that the project has essentially stalled. Rosen has admitted that Plaintiff Crossley is owed
his entire deposit back, but apparently that money is gone. Rosen has also acknowledged that the
project - to the extent it ever legitimately existed - was undercapitalized from the start.
4. The vacant and unimproved land (assuming it is even owned by any of the
Defendants) remains vacant and unimproved, the deposit money and all other payments from
Plaintiffs have been misappropriated, and refunds have not been made.
5. Paradise's form contracts, known as "Agreements for Purchase and Sale of Real
Estate in Costa Rica," are virtually identical, with Paradise identified as the "seller."
2 SARELSON LAW FIRM:, P.A., 1401 Brickell Avenue, Suite 510, Miami, Florida 33131, 305-379-0305, 800-421-9954 (fax)
M~arelson, Esq. ~ Fla. Bar No. 888281 Max M. Nelson, Esq. Fla. Bar No. 84532 SARELSON LAW FIRM, P.A. 140 I Brickell Avenue, Suite 510 Miami, Florida 33131 305-379-0305 800-421-9954 (fax) [email protected][email protected]
Paul B. Kunz, Esq. Fla. Bar No. 159492 BANDER & ASSOCIATES, P.A. 444 Brickell Avenue, Suite 300 Miami, Florida 33131 305-358-5800 305-374-6593 (fax) [email protected]
SARELSON LAW FIRM, P.A., 1401 Brickell Avenue, Suite 510, Miami, Florida 33131, 305-379-0305, 800-421-9954 (fa.'\:) www.FloridaConsumerLawyerBlog.com
www.Sarelson.com
~ 1<:+1 I P.. I, AGI<E£M£Nr FOil: PVRCHASE ANI) SALE OF REAL ESTA'!'E IN COStA RICA
(!Wt. .1?1i~4bfH. A. Df~ ___ rFISl'cl1iSS«ri) «mt ~'l'\!tlisti l>t((:I't;a:.{ar.<d ~.ml" ofOl6!i. R~. SA !"Sal!~") ~~JNIIJ\i<!!~)
:;, tllu~Ill~llr ll'I.\v i~"t. d1~ Pro"",r~ within '1C ~1$ from :he I.f~~ that ?uroMset Si,S;l1s tilt!: A~Ilt, LJp(t'l'l il,."I'lval in Costa ~lCa Seller ~l,UI givlt $;,o;i(I 10 PurchilSil( to\li<lld eDlli of SYO\D'Id tnm!ipCl~tiof\, foW. tIn<Ilodgins Itt C(~ Rica l() facililcle- PU~'I"s illHl1C:ctil11'. PLII~hll\IDl' ~t (tI1V!;: (t-.c dCht tel eal'lI:cl thl!; Agl'lNmCllt by IiImdill.! Mlic.~ of1;(ll1(:du.ttolt tJ} SuBer wilhin H) t,faYli (rom the dilt~ qr !1Uijlt!1l!11"!\. u~ ruO\ljp~ (If nu1i~ ~r ~(loolladon 1'NmI P1.irci'.BSllr. ~II)T s1'1c111 Mum til ?uruha"eJ.' ! 00% or Pf.lr~hnser's ilcp~\t{$),_ wit.~."'IU[ inb.:.n:st. If P-.I!Gtn:!l!\:( d'NS nai: cam::tllhis Ag,reeml:fll wimin 10 da>'~ flom th~ dnl~ uf i~pt.c[ion. l"!~ A,.~~cmt KI11l11 L"~muj" i" fu1\ ICm .. ""= ~r:~ ISift~ if pUl'~~or c:li:cts n¢l1¢. .j!l.$p~' the I~O~~ within lIl.1jjh 90 Ir...), $JlSIl!!cti<l1\ !'Ielie.!. ml!; 1\~mel1t l,r,.,~H (,,'1rIain irlluU for<:~"tll1d .:.fiect.
3. Sei!& rep~se:m·s that me (J\imU"ullture or r"adg tmd: clccnicil.y will be in pla(;l."l within 18 roomhs. !~oln lht: datli' iI"lal PUIt"m,So:.L' ~i2115" ,j',15 A!"lrt~l1l.m\. VlI11j""5I; prcvtlnto:d by an .II.~t ofGocl or otl"la everu riO\ within t~ CGJltmi.of ~llel~ ~a (lI:n lllc;'l l-'l\)p~rtjI is -con",i!~;j li'il.'1jn a subdh'i~il}r. .... 'hllfu \Vri! hi: I>h)'~irolly me!l1!t.bItl- b)o a public or "I'i'lal~ rolIa;mj ""..able by l'u:'~h!t.~ tor ,:on.'~rrl.lC!lr.l! D l)ingh.! fn:mly r~~i6.-t1~ U!;U!;lI' ~ ~cw:;1t will b~ 9l~'"d by 2MI~(a~ Sellnr's ex~n5r: on ca::.h 101 \In Lvhich a sjnw~ fumUy n::;ld~llce will he OOIt1trucl!:IJ \oI1"1I:/!:r this A~t!q!)t. liner t:1I:r..in$ ~f'od. ~o;:r idcmil'i~~iol1 ol'lh~ lueldioll of wnler 1I1ld :;cw« iiwililic:o II\> sp.:cU'R'{} :,r. !milding pu.rnU{~ obiwn.oli by ~l,Il'I:!ha2r. Atkf thll" l!rf.asUUllltl~;tn<J gwCh,lU:;C; ;;i~e in 'PlneC'. a mtli!\k!'llU'..t~ <tl~jt,l:;"'fl ::;he:l he 1M rusp~m!Jib.il:ty (I(PlltciIZl!lCT~ ul un iniUtil a~PI'o~ilnUl.~ monthly (lo.!.tofS,03 (3 r;:enb:J ptr square m~tm' u1' the !)ro;»rty.
<I, Cl.oslng sh\\t\ ~ tlilld in C"i?l~a lUea 1t manlhS afb:r tOe datt: tbat plU"t.1w.w- 5j~~ j}dsll.srwm~ Soll~ shl!ll gi'lI~ kI I"IUehil.:!:er 3(i ullYs t1dl1HWU ll1/tice or Ihll ;':I()~ing t!ide unci rime. Th~ BclJmCl: DUi) :m!;lll ~ lEid at .:;:I~ins. 'l'hr: Med ~lu!.11 ~on .... e!l mar"kctllble title to th-c }lillpeny. li"<1: and cleur 0\' tdlli\lll~ ~od t:f1C.umbt'llncO;lJ 4X"PI n:<JttJctlC)\l:~ End requi(e-mem~ impm;ed l~y go ... crnmt:u:al1,lUthoril'}'~ ·!c31i"ll!1.itltm \:l~1Tlm.,)1l 10 tI-..u l!Ubdi-qig~lI~ ..:.il. Iltl!lllnd 'Itlineral r!ghll.-. plJbliu UIm~ mI!lt:l_l1ems~ r~al-c~ 1~C$. fer the- )'ua:' ot' ~I,;rsing af'od sull1"."'<lu~ YCI!rl:i; mlQ lhc mortgo.se .(JlfVtq Pmp«iy· pffwidDd tilat .nC1l(\ (If'tit;;: furegLling shall 1l'rC:\'tm~ I~ or Ihe- Pr(l!l!:lly for t¢~id;:nLr.d fllll"p.:'I!itlS. Cu!ll.l.lfn;c<.lftjinS·oftht: -d~, iClOJudins dtxlUIMl'iUlry $tIm!F~.lOnall be p.!lid b)' Stiller.
Cohen & Owens, P.A. Att01'lllly8 and COUDselors at Law
VIA CERTIFIED MAIL AND FACSIMILE 305-949-nS7
April 9. 2009
Gene S. Rosen, P A. Mr. Gene S. Rosen, Esq. IS50 NE Miami Gardens Drive North Miami Beach. Florida 33179
Q ... '",)
RE: Paradise International Properties, Inc. - Final Demand for Deposit Return Mr. Sid Crossley, Lot C-7 Pura Vida Estates, deposit aU 12,500.00
Dear Mr. Rosen,
Ari_ Wolinsky. Esq. MonlDa I!, COh .... Esq.
Please be advised that the undersigned represents Mr. Sid Crossley in regards to the above referenced matter. For your quick reference, I have enclosed with this letter a copy of the subject contract. My Client sent the seller lind ,your p.ffice,b,is,cll1)celation letter within the time fi::ames.set forth in the subject contract on or about July 16,2008.
Demand is respectfully made to provide a full return of my Client's deposit to .the undersigned within 10 days from the date of this letter, along with the respective trust account records showing when the deposit was received and what has happened to the same. I also request to be provided with a copy of your errors and omissions insurance as the undersigned intends to file a claim should this mlltter not resolve in a favorable manner. My Client desires to resolve this matter confidentially, amicably, and without litigation; however, be advised that the undersigned is ready and willing to commence litigation against all responsible parties should this matter not result in the return of my Client's deposit·
Should you have any questions regarding this letter or desire to discuss the same, please contact the undersigned at the phone number and address below. I thank you in advance for your time and
Enclosure:
3801 Hollywood Boulevard, Suite 200, Hollywood. Florida 33021, Phone (954) 923-3801 Fax (954) 967-2791