Paragon Properties of Costa Rica have totally ripped us off of $33,000 and they are not a company you want to do business with! They have put me and my family under considerable distress over the past 3 years! They made a severe mistake by doing a bait and switch on us and have failed to live up to their contractual obligations.
We have been trying to get our money back for several years now and I am at the point of such extreme frustration that I thought I would share my story.
Our story starts in Mid November - A friend of ours was sent a package of information about a development called Heights of Pacifica in Costa Rica that Paragon Properties was offering for sale. They said it was the chance of a lifetime. We first spoke with Paragon Properties sales representatives, Bruce Goldberg and Larry Edwards. They confirmed that the Heights of Pacifica development was almost sold out but they just got back two side-by-side one acre lots and could offer them to us at the original price of $16,500 each. They said we would need to move fast, so they faxed us a tract map and sold us on the fact that two side-by-side lots would be much more valuable down the road than one lot. As a result, they talked us into buying lots #176 and #177, which then became lots #38 and #39 after re-mapping, and, we were also assured they had direct ocean front views.
At the time, we had a few other investments going and only had $16,500 for the one lot, but we were assured that if we sent in a post-dated check for the second lot, it would not be a problem. We followed their directions to the tee and couriered all the necessary paperwork and checks to them. Our first check was cashed right away in November. Then, much to our surprise, our second check, which was post-dated as of January 1, was presented to our bank for payment early in December so the bank rejected it. This should have been our first alert that something was not right. Regardless, we sent them another check right away, which they eventually cashed, so both lots were paid for in full by Jan. 2005. We subsequently received written confirmation from the Florida lawyers, Charles Neustein, that we were in escrow on the above two lot numbers. They told us the paperwork in Costa Rica takes time but to expect our legal documents in about 6 months.
Finally, in late we received some documents in Spanish with a letter saying that corporations had been set up under a Mexican entity for us and that our properties would be transferred into that. Much time went by, but finally in March of we finally received the property documents from Paragon, and much to our surprise, the tract maps showed two very different and separate lots highlighted in yellow (#43 & #73), that were not side-by-side, nor, were they even in the vicinity of the two lots we purchased. After making three attempts to reach someone from Paragon, I finally got through to Bill Gale, the Chairman of the company. I explained the situation and expressed my concern about being fearful that while they gave us title to two lots we didn't purchase, that they may have given title of our lots to someone else. He assured me, in no uncertain terms, that it was just a paperwork mix up and he would see that the corrections were made within a month or so and send out new documents. He also assured us that the properties had gone up in value and not to be concerned or nervous.
June 20 - we were informed by Bill Gale at Paragon that the lots we purchased were indeed sold to someone else and he clamed it was because of our check bouncing. Now, that didn't make sense for a minute because if that were the case, we should still have had at least one of those lots that we originally selected. Regardless, the only reason the check bounced was because Paragon tried depositing a post-dated check early. He didn't really have a good explanation for this error, but said we should just be happy with the lots we have as they have already gone up in value. Then, he had Joni in his office email us photographs of the lots, but there were certainly no ocean views as had been previously represente just a lot of dense jungle. At that point, I informed Paragon that since they could not give us title to the two lots we originally purchased, and we are not interested in keeping the two that they randomly gave us, we requested our money back, with interest, immediately.
June 30 - after many email exchanges to try settle our matter, we received an email (with a Phase I tract map attached) from Bill Gale personally saying that they had found two lots, side-by-side, #101 and #102, that they would exchange for the lots they gave us in error. We emailed back that day asking for view photos from this location.
July 20 - we sent communication again asking if they had taken photos from lots 101 & 102, and received a reply from Joni that they were in the works but the crew on the ground was busy.
August 16 - much to our surprise, a written letter from Bill Gale was sent to us saying that if we weren't going to take lots 101 & 102, that we should just fill out the enclosed Request for Refund form and return it with all the original books and records and they would give us a refund. The letter reached us in transit during a move from California to Hawaii, so we actually received it on Sept. 6. We immediately emailed Bill Gale saying we will go ahead and take the refund since they could not provide us with view photos from the new lots, however, there was no Request for Refund form enclosed.
November - a form was finally sent to us. During the months of November and December, I had several conversations with Joni about feeling odd about just sending back books and records directly to Paragon. I suggested that we work through a neutral escrow party. After not hearing back over the holidays, I sent yet another request with the same suggestion directly to Bill Gale on Jan. 2.
January 23 - I received a phone call from a sales guy by the name of Lyle Wexler indicating that Paragon was reneging on their offer to cancel these two sales and refund our purchase money. He further claimed that Bill Gale, while he is the Chairman of Paragon Properties, did not have the authority to correct this mistake for us, However, Lyle was going to save the day for us by allowing us to use our $33,000 credit as a down payment on their newest and much more expensive development called Ocean Palms.
February 2 - I sent another email to Bill Gale saying that we didn't appreciate the phone call from Lyle Wexler and at that point threatened legal action in our communication.
April 24 - After hearing absolutely no response from Paragon for several months, I filed a complaint with the Better Business Bureau. I also alerted the editor of AM Costa Rica, the local newspaper.
April 25 - I received an email from Bill Gale saying that they were waiting for me to send them back the documents, and gave us the option to use their lawyer in Florida, Charles Neustein, if we wanted to use a neutral party. He confirmed that they would honor their commitment and give us back the $33,000 but would not be giving us any interest. Finally I thought I was getting somewhere!
May 22 - Charles Neustein confirmed receipt of all the books and records and informed us that he would forward them along and that it could take some time to transfer the deeds back in Costa Rica. He asked us to be patient.
July 16 - we followed up with Charles Neustein, as we had not heard anything. He responded the following day saying that Bill Gale's mother had passed away so he was out of the office, however, he felt that the check should be sent to us in the next 10 days.
October 4 - Months went by and again no one would return our phone calls or emails since July. Finally, on this day, Charles Neustein replied saying that he spoke to Bill Gale and they had a problem with the money in Costa Rica, but our refund should be coming promptly. Subsequently, Joni at Paragon sent an email on Oct. 29 confirming that she received the books and records from Mr. Neustein and would begin the process.
November 12 - we received a letter with some legal documents from Esteban Soto C., the President of Paragon Properties, asking us to sign the documents that would allow them to transfer the properties back to Paragon. We were told that their Costa Rican attorney, Maria Auxiliadora Alfara will complete the process that will allow them to send us our refund. We immediately signed them and sent them back in the Fed Ex package provided to us.
January 18 & 21, we followed up with Joni about the $33,000 reimbursement, and she responded on Jan. 21 saying she will check on it.
February 20 - I sent yet another inquiry about the refund to about 6 people now involved in communication at this point on the matter. Subsequently, I phoned their Costa Rican attorney, Ms. Alfara, and she confirmed by phone that she transferred title of our two lots back to Paragon on February 15th so our check should be sent out very soon.
March 5 I finally received an email from Joni at Paragon saying; I have confirmed that both Phase One Lots have been transferred to Paragon as well as ownership of the two societies set up for the purpose of these transfers. This portion of the process was complete on February 21. The refund request was entered for process on that day and we are awaiting funding to the operating account in order to process this request. I will forward to you upon receipt the check number (s) and tracking information. Usually this process takes approximately 30-60 days to complete. I realize that we have experienced delays in the title transfer process due to the holidays last year and have requested that this refund be process immediately and sent to you as quickly as possible. If you have any questions, please call me at 954-925-1153. Joni at Paragon Properties
April 3 Send another request to Joni for an update, and she responded on April 21 saying she would try to get an update. Since that time I have not heard back from anyone, and sent yet another request to all parties involved yesterday, May 12.
May 13 To date, I have not received our $33,000 refund and no one from Paragon has responded to my recent requests.
May 14 spoke to a new gal named Jackie this morning. She is now telling me that they don't have all the funds from Costa Rica and offered to cut me a check for 10% of the amount due in the meantime. I explained that we have been waiting years for this refund and I want the full amount now.
We have continued to act in good faith for 3 years, however, Paragon Properties has continually stalled our refund process causing significant injury and personal distress to me as a result of their fraudulent actions, misrepresentation of facts, and failure to resolve the matter in a timely manner.
I am currently seeking legal representation and plan on filing complaints against Paragon Properties of Costa Rica, their parent company Premier Realty Sales of Costa Rica, William A. Gale, and Esteban Soto C., with the U.S. Postal Service, the FBI, the FTC, the FCC and with the Florida State Attorney General seeking an injunction to prohibit Paragon from doing business in the United States. I am seeking others willing to join in a class action lawsuit against these people.
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