Iron Gate's CEO, Jason Grosfeld, is being sued. In a new lawsuit against Irongate in California Superior Court, Grosfeld and other defendants claim that the corporation has once more engaged in fraud and wrongfully collected money from clients.
For a $10 million Costa Palmas house Irongate allegedly promised would be finished by June 2019, GS 1975 LLC, a holding company, reportedly paid a $5 million deposit in April 2018. But at that time, the house had yet to be constructed.
Irongate is accused of misrepresenting the project's progress to the court between April 2018 and September 2022. This includes telling the plaintiff that the project had reached a significant milestone on September 6, 2022, and requesting an additional $1,575,000.
The owner of Irongate, Jason Grosfeld, allegedly refused to let the plaintiff see the house until the extra sum was paid.
The plaintiff further claims that the house was uninhabitable following inspection, the construction was far from finished, and Irongate's work needed to improve. The corporation has also started criminal actions against Irongate in Mexico, claims the spokesman of GS 1975 LLC. Grosfeld and other Irongate representatives, David Waller, Michael Radovan, and Mitch Laufer, also took part in a civil arbitration action against Irongate in Mexico.
Residences & Inn at Four Seasons Los Cabos, the Amanvari Resort & Residences, as well as its own exclusive beach, golf course, and yacht club, are located in Costa Palmas, a 1,500-acre resort and residential complex on the East Cape of Los Cabos, Mexico. The most recent Jason Grosfeld luxury property development, Costa Palmas, has been promoted for the past six years as the newest exclusive community for the famous and wealthy.
Jason Grosfeld built and sold residences in Costa Palmas through his real estate business Irongate, earning hundreds of millions of dollars. To create the "Trump Ocean Resort," a deluxe residence in Baha, California, Mexico, Irongate collaborated with Donald Trump. Irongate, it seems, may be using the same commercial strategies that led to the project's failure. This conclusion is drawn from recent legal actions by several Costa Palmas property owners.
Jason Grosfeld, The CEO Of Iron Gate, Has Previously Been The Target Of Legal Action.
In a 2008 lawsuit against Irongate and others, over a hundred plaintiffs said that Irongate had defrauded them of more than $30 million in buyer's deposits and misled them about Donald Trump's involvement in the Trump Ocean Resort. A Univision News and Columbia Journalism Investigations investigation found that Jason Grosfeld and Irongate misled clients for more than two years by greatly exaggerating the number of units sold and characterizing the project's financing as permanent when it was not.
Irongate maintained that development was moving forward, but after two years, all that remained was a sizable crater and a few concrete slabs. Univision's investigation also found that one of Irongate's lenders had identified "a massive misuse of deposits used to cover overruns." In Costa Palmas, history has come full circle.
At least one additional Costa Palmas property owner has also filed a lawsuit against Irongate for fraud, extortion, and breach of a contract. On January 27, 2023, TRG CP, LLC filed a lawsuit in a federal court in California against Irongate, David Waller, and Mitch Laufer. The plaintiff claimed in the lawsuit that the defendants had wrongfully coerced her into signing an estoppel certificate in connection with the building of a house in Costa Palmas and had engaged in extortion or attempted extortion to force her to pay millions of dollars that she had never agreed to pay.
The complaint asserts that Irongate repeatedly misrepresented the construction cost and schedule for the property to get payments totalling millions of dollars. It further claims that the house is now little more than a dilapidated concrete shell after receiving about $5 million from the plaintiff. These charges are similar to those made by GS 1975 LLC. According to the lawsuit, Irongate is reportedly holding the plaintiff's home hostage and forbidding further construction on the property unless the plaintiff pays them millions of dollars in additional costs. We made an effort to get in touch with TRG CP, LLC personnel for comment, but we got no answer.
According to our sources, several other Costa Palmas homebuyers may have similar claims or experiences, and Irongate and its representatives may be subject to further legal action. Additionally, we've been informed that this issue is being investigated by federal officials in both Mexico and the United States.