Investors of Trump Ocean Resort Baja in Mexico are crying foul

Investors, who invested in Trump Ocean Resort Baja in Mexico, were told last month that the project was no longer happening and since their money was already spent, they would not be getting anything back.

In 2006, many of Donald Trump’s fans paid more than $32 million to invest in his Mexico Ocean front resort.

However, more than two years later the only thing that is left of the project is a highway billboard with a large photo of Donald Trump advertising the condos for sale, a closed sales center and showroom, a paved parking lot, drainage pipes, construction equipment and a big hole in the ground.

 “I can’t even stand to see Trump’s face on TV,” said Linda Drake, who paid $250,000 as a down payment for a 19^th-floor ocean front condominium.

The TV host and real estate developer along with his children heavily promoted the Mexico resort. Within hours of going on the market, Trump sold 188 of the units for $122 million.

As the U.S. housing market began to crash, Ivanka Trump assured buyers in a newsletter that ALL Trumps projects were immune to the slowdown saying, “In characteristic Trump fashion, Trump Ocean Resort Baja will be the best of the best and consequently always in demand,” she wrote

Last month, Trump Entertainment Resort Inc., filed bankruptcy protection and “The Apprentice” host is also embroiled in a lawsuit to avoid paying debt on the struggling Trump International Hotel & Tower in Chicago, according to Huffington Post.

Investors in the Mexican resort were required to make a 30% deposit of their unit price.  Units sold for a little less than $300,000 to $3 million

Last December, investors received letters stating that negotiations for a construction loan from German bank WestLB AG collapsed and Trump Baja had only $556,000 left. The letter also quoted a contract clause that gave the developer a right to spend their deposits.

The same month that Trump Entertainment Resort Inc. filed for bankruptcy protection, another letter was sent to investors stating that Mr. Trump was removing his name from the project.

PM Impulsores, a Mexican company, sent a letter on February 16 stating that the project was scrapped and there was no money left to refund deposits.

Trump issued a statement saying that its partner violated an agreement to license the Trump name, missing deadlines to obtain financing and begin construction.

So far, only one person has sued Mr. Trump but more lawsuits are expected.