Partial Settlement Reached in Coconut Grove Property Dispute
A judge has approved a settlement among parties with the most money at stake in a long-running real estate fraud in Coconut Grove.
Key Points of the Settlement
- The $33 million deal resolves the biggest financial claim, made by Altamar Financial Group LLC.
- Altamar was owed $48 million in principal and interest on loans made to the developer, Send Enterprises.
- The settlement omits those who put $20 million down on homes and lots where, their lawsuits allege, the developer fraudulently delayed completion while collecting multiple deposits and obtaining loans on the same properties.
Background of the Case
NBC6 first exposed complaints from the homeowners last year, alleging a long-running real estate fraud in Coconut Grove.
Settlement Details
The settlement, approved by Miami-Dade Circuit Judge Thomas Rebull, resolves the biggest financial claim made by Altamar Financial Group LLC. As part of the deal, Altamar will accept about $33 million – half of it from a planned $16.5 million sale of 12 vacant lots that had been acquired by the companies, which were run by Douglas Cox and attorney Nicole Pearl.
The purchaser of those lots will now lend the receiver another approximately $16.5 million, which would be used to complete the payout to Altamar.
Next Steps
Fine, the receiver, will now market and sell the 14 substantially completed townhomes and one single-family house that’s about two-thirds completed. Those proceeds will be first used to pay back principal and interest on the $16.5 million loan from the purchaser of the vacant lots. And the receiver will continue to seek damages from Cox, Pearl, Pearl’s law firm and others involved in their alleged scheme, while defending against nearly $21 million in claims from investors in and lenders to the companies once controlled by Cox and Pearl.
Conclusion
The settlement marks a significant step forward in resolving the long-running real estate fraud in Coconut Grove. While it does not address the claims of those who put $20 million down on homes and lots, it does provide a sense of closure for Altamar and other parties involved. The receiver will continue to work to recover damages and pay back investors and lenders, and the case will likely continue to unfold in the coming months and years.
FAQs
Q: What is the total amount of the settlement?
A: The settlement is worth $33 million.
Q: Who is Altamar Financial Group LLC?
A: Altamar Financial Group LLC is the company that made the biggest financial claim in the case, alleging it was owed $48 million in principal and interest on loans made to the developer, Send Enterprises.
Q: What happens to the money from the sale of the vacant lots?
A: The money from the sale of the vacant lots will be used to complete the payout to Altamar, and then to pay back principal and interest on the $16.5 million loan from the purchaser of the lots.
Q: What happens to the claims of those who put $20 million down on homes and lots?
A: The settlement does not address the claims of those who put $20 million down on homes and lots. The receiver will continue to seek damages and pay back investors and lenders, and the case will likely continue to unfold in the coming months and years.
