Trump Sued For $10 Million Over Never-Built Condos

Mar. 8 2010, Published 4:45 a.m. ET

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A group of seven individuals filed suit against Donald Trump, Donald Trump Jr., Ivanka Trump and others for fraud, negligence, accounting and other counts regarding a hotel condominium complex in Baja.

The plaintiffs are seeking at least $10 million dollars in damages.

In court documents obtained by, the lawsuit states, "Plaintiffs are a group of individuals who were duped into buying hotel-condominium units that were never built. With the complicity of defendants, the developers of the units depleted Plaintiff's deposits - even though they never broke ground on the project, much less obtained the necessary building permits or construction loans.

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DOCUMENTS: Read The Lawsuit Here

"The Trump Defendants falsely led Plaintiffs to believe that they were financial backers of the project, known as the "Trump Ocean Resort Baja. The project was located in northern Baja California, Mexico - a 30 minute drive from downtown San Diego, CA."

The resort was to have consisted of 526 suites and cost approximately $200 million dollars. It was supposed to include a spa, swimming pool, restaurants and shops. According to the lawsuit, the project "failed. Today the project site shows little sign of construction other than a large excavation with six cement pads at the middle of the site."

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The plaintiffs say that Trump's involvement wasn't what they were led to believe, "contrary to what plaintiff's believed, Trump had only licensed the use of his name to the project  and was not involved as an equity partner and had never invested any of his own money in the project."

The docs also state that Trump Ocean Baja had its own Web site, which is now defunct, and that the project was featured on and that it has now been removed.

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The plaintiff's also charge that Donald's adult children, Ivanka and Donald Jr., were used to promote the project. Furthermore, the suit alleges about Ivanka Trump, "when various plaintiff's questioned Ivanka with regard to whether Trump was merely licensing his name to the project, Ivanka denied the same and replied that Trump was a developer and held an equity interest in the project."



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