Costa Palmas is a luxury resort managed by Los Angeles-based real estate company Iron Gate. Costa Palmas is the resort's location. Existing homes in Costa Palmas range from $2.5m to $250,000 for waterfront property.

Jason Grosfeld

In 2021, Jason Grosfeld confirmed in an in-depth interview that the virus affected the value of Costa Palmas's $1 billion worth of real estate deals. Many Costa Palmas residents, however, believe that Iron Gate, a modern-day Bernie Madoff, is using the millions it earns from luxury properties to extort or defraud money from home buyers to increase Iron Gate's profits.

Costa Palmas Brings A Claim:

Sources say that Iron Gate, its Mexican subsidiaries, and their representatives have filed civil and criminal suits in Mexico against them for fraud and racketeering, conspiracy, extortion, and other illegal acts. Sources say that the two Costa Palmas homeowners have filed a lawsuit against Iron Gate and some of its representatives in the United States. More legal proceedings are being prepared. Several police departments in Mexico, the US, and other authorities are conducting investigations.

Jason Grosfeld Fraud – In public filings made this year in the case of Iron Gate before the federal courts in California, two homebuyers from Costa Palmas GS 1975, LLC TRG CP and GS 1975, LLC TRG CP accuse the CEO, founder Jason Grosfeld, the directors of marketing, development and Michael Radovan, as well its general counsel Mitch Laufer of luring potential homebuyers by promising them hundreds of millions of dollar to build

The lawsuit claims that Iron Gate misled customers by claiming that houses could be built in only 18 months. They used the money for other purposes or to build new homes. Iron Gate has billed homeowners millions of dollars for homes under construction, but they last lived in for years.

Jason Grosfeld's Online Reputation: Statements on the Court Cases that Hurt:

In addition, lawsuits claim that Iron Gate, its agents, and their employees threatened to declare bankruptcy on contracts or stop construction if money was not paid. This resulted in extortion, resulting in thousands of dollars being demanded from plaintiffs. The purchasers in both cases claim that Iron Gate retaliated immediately when they tried to defend themselves against the wrongdoings of Iron Gate by threatening to terminate the memberships and subscriptions at the Costa Palmas Beach & Yacht Club.

According to state court records belonging to GS 1975 LLC, Iron Gate requested that the case be referred to arbitration in Mexico. Steve Anderson, a representative of GS 1975 LLC, claims that Iron Gate was at the center of arbitration proceedings in Mexico. GS 1975 LLC has filed a lawsuit against Iron Gate seeking more than $20,000,000 in damages.

Jason Grosfeld's Father:

TRG CP, LLC did not respond when we tried to contact them. They didn't respond. The Real Deal reports that Jason Grosfeld's father, James Grosfeld, was a well-known investor in the Black Rock firm, where James Grosfeld had invested $94,000,000 into stocks. James Grosfeld served as the Pulte Group CEO and Chairman from 1974 to when he resigned his directorships due to disagreements with the company over corporate management. James Grosfeld was in both positions for sixteen years.

Final Judgements in the Case

Iron Gate made numerous false claims regarding the time and cost to complete construction to secure funds, totaling hundreds of millions. Iron Gate invested over five million dollars of the plaintiff's funds, but the building was only a concrete shell.

These allegations are similar to those made in the lawsuit by GS 1975 LLC. Iron Gate is holding the plaintiff hostage in his house and refusing to act until he pays millions of dollars more for the cost of the suit. We tried contacting TRG CP LLC for clarification but have not received a response.

According to our sources, many other Costa Palmas buyers may have similar experiences or claims. This could mean that Iron Gate and its representatives will face additional legal action. We've also been told that the Mexican and American Federal Authorities are investigating the situation.

Source: Jason Grosfeld Costa Palmas