Another USD 350 Million lost in Cap Cana with TRUMP!

Don't Buy Anything In Cap Cana

Dominican Watchdog has on our main website issued a warning against buying any property in Cap Cana after the USD 134 Million scandal with Stewart Title Guarantee and Green Village in which they failed in protecting investor deposits.

Below is a post from DR1.com this Easter. it has become clear that the investors in TRUMP at CAP CANA were fooled into that auction of TRUMP FARALLON ESTATE. Nothing happened up there since the auction. If these money too are gone from Stewart Title Guarantee Services in the Dominican Republic, then we are talking about fraud of close to USD 500 Million in Cap Cana. I wonder when investors will wake up and take action against the development and change the management.

Cap Cana could have been a fantastic development if the Marina had been public, they had all the chances of creating an European marina feeling like ST. Tropez and Puerto Banus. The Marina was there before the Paradiso Mall, and HARD ROCK cafe should have been in the Cap Cana Marina, but the management completely failed their duties of attracting life and business to the marina. Cap Cana Marina is the heart of the project and until somebody makes it beat, no blood will flow to the rest of the development. Today Cap Cana is DEAD!

Originally Posted by Robert

Today I drove around Cap Cana as I haven’t seen the development for a year or more.
Some building is going on, but it’s very sparse and by the looks of it, very slow.The Trump development is dead in the water, going by what I witnessed today.Overgrown Trump “SOLD” sign
Trump Towers signage

Derelict Trump property

I am not surprised it is dead! I don’t know why would anyone want to associate with him. In business. He is overrated, and the truth is that the guy is a failure. Everything he touches fails, 4 bankruptcies under his belt in less than 20 years, not to mention that Mike Tyson hired him as his financial advisor, which also lead Mike Tyson to bankruptcy himself. It seems that the only thing that he is really good at, is, bankruptcies. SOURCE

Mega Cap Cana scandal involving Stewart Title and Green Village

Those who thought they bought property in the Punta Cana area has lost over USD 500 million on 4 different developments both projects and prices keep falling - Talking about a free fall out of control here - There is no way out. Cap Cana real estate is doomed !!

Cap Cana is in a Free Fall – Ritz Carlton, Trump and everybody else has left the sinking ship! Investors who expected to be protected by Stewart Title lost their money. Cap Cana has stopped paying the penalties stipulated in the contracts and all the small investors got fucked for USD 134 million just in Green Village alone!! Welcome to Dominican Republic….

The reality is that Cap Cana is close to bankruptcy, a tremendous nightmare for all remaining property buyers incl the few who managed to receive a finished product. Only those wisely flipped their contracts during the Trump at Cap Cana hype escaped the free fall of Cap Cana. The rest are doomed to lose at least 45 – 80% of their investment. Today Green Village stands at a 100% lose and investors should move together in lawsuits against the management, the lies and Stewart Title. The way Stewart Title has handled Cap Cana deposits is a scandal never seen before and they must be held responsible to the last dime!

Sadly enough consumer protection in the Dominican Republic is basically non-existent due to the dysfunctional legal system and corrupt government. President Leonel has personally promoted developments from drug dealers and fraudsters where investors lost money – He doesn’t care about anybody but himself….

Cap Cana Dream Villas Left To Rot

The jewel in the crown of real-estate in the Dominican Republic, Cap Cana, with expensive luxury villas, World Class golf courses designed by Jack Nicklaus, and a marina for the jet set to moor their yachts; is not all it was hyped up to be, say disillusioned investors.

Just a few years ago, when real-estate mogul, Donald Trump was selling multimillion dollars lots on his high-end Farallon Estates development in Cap Cana, many private investors were buying into the dream and investing in what appeared to be a sure-fire win, backed by famous names, large banks and a massive media blitz…… read full article on Dominican Watchdog

Antinarcotics’ first 2012 bust: 75K of cocaine at Cap Cana marina

Drugs in Cap Cana Marina

The antinarcotics (DNCD) agency seized around 75 kilos of cocaine in the marina at the resort Cap Cana. It said the drug in 74 packages was in four bags aboard the boat “Millennium,” registry PR-6557-GG also confiscated, while the three men were identified as……., the boat was moored between the marina’s C-19 and C-20 docks……. read more

Hazoury, Cap Cana involved in huge humanitarian scandal

Running out of cash, need to steal from the poor?

Desperate RICARDO HAZOURY ? YouTube video state that Hazoury and Cap Cana destroyed 25 homes of working class people in Cabo San Rafael. The houses were demolished with trucks and bulldozers without number plates. Some families lived here for over 20 years and now the road is closed and families have no longer access to their land. Boycott Cap Cana before they “clean” more land to enlarge their financial troubled development!! How could they do that a few days before Xmas…?

 

 

Prominent Spanish Lawsuit Against Cap Cana

JULIÁN RUIZ vs Cap Cana

Copy of email from Dominican Watchdog to Cap Cana on October 7, 2011

————–

Dear Cap Cana,

Would you be so kind as to forward this email to Dr. Ricardo Harzoury. I have several questions in regards to this case:

Last month the famous Spanish political candidate and head of the Spanish lawyer association Don JULIAN ANGEL RUIZ NAVAZO (http://www.pcal.es/es/burgos/?iddoc=7163) was in the DR in regards to his lawsuit against Cap Cana. He is represented in the Dominican Republic by José Manuel Alburquerque Prieto from Alburquerque & Alburquerque in Santo Domingo.

The lawsuit involves some purchased land before anything was built, inside cap cana, the widow refuses to acknowledge the sale- and its been in court for the past 8 years- and from what I hear, it seems that some “bigger hands” are at work here- not allowing the case to move forward (not unusual in the DR based on my experience).

In the interest of international consumer protection, I would like to hear from Mr. Harzoury what exactly is the status on this high profile case, who is blocking it and what does it mean for Cap Cana?

Furthermore I have questions related to PENALTIES of late delivery and late/missing payment of condo fees:

Is it correct that Cap Cana is now acknowledging penalties due to late delivery of Punta Palmera units in the region of USD 200,000 to bring clients forward to the closing, hoping this will prevent them from walking away from their contracts?

I believe this is a smart move to give some discount to keep the client and subsequently being able to collect the expensive condo fees for the next 20 years in order run the troubled development. However in regards to this, I like to know exactly how much Cap Cana owe the condo association in late payments for all the empty shops and apartments as worried investors contacted us in regards to this issue. They are interested in our support in a Class A lawsuit against Cap Cana. We gave 300 hours of free support and media attention to the angry investors behind Punta Perla (www.puntaperla.wordpress.com)

These simple questions can probably be answered by Cap Cana’s financial department, please forward the email.Looking forward to be hearing from you.

——————end of email ————————-

We know from sources that this email has been read by Ricardo Hazoury, but as of today 6 weeks later he has not replied to us. Dominican Watchdog have now made this lawsuit public knowledge and will continue our investigations.

Cap Cana Using Groups to Spam Google Rankings

How much does Cap Cana spend on Spamming Google?

For years fake posts was created in tripadvisor.com about how fantastic Sanctuary Cap Cana is. The amazing posts were done immediately after a guest complained about their stay out there!
At the same time Cap Cana’s SEO Team has been Spamming Google on free and irrelevant article forums with thousands of useless articles to try to suppress bad or negative articles about Cap Cana on the internet. The goal of this action is also to move own domains to the top of the search engine.
sup•press/səˈpres/
Verb: 1. Forcibly put an end to.
2. Prevent the development, action, or expression of (a feeling, impulse, idea, etc.); restrain.

Cap Cana is spending fortunes on this activity – Here are the last few days articles:

Blog Archive » Information Relating to Cap Cana Dominican Lodge …
Get Struck with Herbal Beauty and Luxurious Estates at Cap Cana, Dominican. Cap Cana, Dominican Republic, is ready to be the arena’s next great destination, …
newchristianradio.com/…/information-relating-to-cap-cana-do…

Data Relating to Cap Cana Dominican Resort Motels …
Cap Cana, Dominican Republic, is set to be the world’s subsequent nice destination, as is bannered in its reputable website. This is a ways from fiction. The plan …
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Information Regarding Cap Cana Dominican Lodge …
Cap Cana, Dominican Republic, is ready to be the world’s subsequent nice destination, as is bannered in its professional website.
www.lakpuraya.com/…/information-regarding-cap-cana-domi…

Information Regarding Cap Cana Dominican Lodge Hotels …
Cap Cana, Dominican Republic, is ready to be the arena’s next great vacation spot, as is bannered in its official website. That is far from fiction. The plan for Cap …
lobbyleaks.org/?p=7608

Data Concerning Cap Cana Dominican Lodge Hotels!
Cap Cana, Dominican Republic, is set to be the world’s subsequent great vacation spot, as is bannered in its official website. That is some distance from fiction. …
coffeearticle.com/data-concerning-cap-cana-dominican-lodge-…

3asyticket.com » Information Regarding Cap Cana Dominican Hotel …
Cap Cana, Dominican Republic, is about to be the sector’s next nice destination, as is bannered in its reputable website. That is a long way from fiction. The plan …www.3asyticket.com/information-regarding-cap-cana-dominic…

Data Relating to Cap Cana Dominican Resort Resorts! | Nirmal …
Cap Cana, Dominican Republic, is ready to be the world’s subsequent nice vacation spot, as is bannered in its authentic website. This is far from fiction. The plan …
www.nirmalkotecha.co.in/…/data-relating-to-cap-cana-domini…

Knowledge Regarding Cap Cana Dominican … – Article Directory
Get Struck with Natural Attractiveness and Sumptuous Estates at Cap Cana, Dominican. Cap Cana, Dominican Republic, is about to be the sector’s next nice.
www.article.sg/knowledge-regarding-cap-cana-dominican-res…

Knowledge Concerning Cap Cana Dominican Resort Hotels! – Local …
Cap Cana, Dominican Republic, is about to be the world’s subsequent great vacation … The plan for Cap Cana contains the biggest inland marina on the planet, …
www.localbeat.org/…/knowledge-concerning-cap-cana-domini…

Knowledge Concerning Cap Cana Dominican Hotel Inns! | Dengok …
Cap Cana, Dominican Republic, is about to be the arena’s next nice destination, as is bannered in its official website.
www.dengok.com/…/knowledge-concerning-cap-cana-domini…

Cap Cana – Dominican Republic Locations Scouts
Dominican Republic, Caribbeans, locations scouts is an essential service for producers, photographers, art directors or publishers considering or having …
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Knowledge Regarding Cap Cana Dominican Resort Resorts …
Get Struck with Natural Attractiveness and Luxurious Estates at Cap Cana, Dominican. Cap Cana, Dominican Republic, is about to be the world’s subsequent …
bluespotdirectory.com/knowledge-regarding-cap-cana-domini…

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And so it’s has been going on for years to self promote Cap Cana, when nobody else has anything positive to write! Ricardo please update us all on TRUMP at Cap Cana…. What’s going on up there on the Farallones….? Not one word has been posted about TRUMP in Cap Cana for years, before it was like the King arrived!

Cap Cana probably not able to cover its financial obligations in near future

New window stickers for all the empty units in Cap Cana

In recent months Dominican Watchdog has received several emails from worried investors in Cap Cana who informed us that Cap Cana is not able to pay their part of the monthly condo fees for all the empty apartments and shops. This is not only hurting the maintenance of the development, but also their image as a luxury development and investment object.

Dominican Watchdog wrote to Ricardo Harzoury for an answer to this and the fact that huge discounts are given to buyers in Punta Palmera for closing instead of walking away from their contracts. Ricardo Harzoury never replied to our email, but Yesterday he released the press release below.

From the readings between the lines its all crystal clear, Cap Cana is in serious trouble and even worse, none of the investors has been able to resell anything in Cap Cana for the last 2 years unless they took huge loses!! The promised rental income is also not happening so investors are trapped with properties worth million of dollars in probably the most boring resort in the Caribbean.

JUANILLO, Dominican Republic, Oct. 24, 2011 /PRNewswire/ — Cap Cana, S.A. (“Cap Cana” or “the Company”) today announced the status of the collateral securing its 10% Senior Secured Notes due 2016 (the “2016 Notes”).

The amount of Eligible Receivables that meet the eligibility criteria set forth by the Indenture of the 2016 Notes is approximately US$98.3 million as of June 30, 2011 and $93.4 million as of September 30, 2011. The Company’s estimate of the Collateralization Ratio is equal to 1.02:1 as of June 30, 2011 and 0.97:1 as of September 30, 2011. The decline in the Collateralization Ratio during the first nine months of the year is primarily due to receivables falling into arrears as a result of adverse macroeconomic conditions.

Construction of the real estate properties securing the 2016 Notes (the “New Notes Project”) has significantly slowed down due to lack of funding. The Company had planned to finance the construction of the remaining components of the New Notes Project through a credit facility with a top-tier investment bank. However, the availability of adequate financing for real estate development companies such as Cap Cana has been dramatically constrained over recent months and the Company was unable to secure the specified financing. As a result of the factors described above, the decline in the Collateralization Ratio is expected to continue.

The Company has suffered a substantial slowdown in sales of its real estate properties during the first nine months of the year. Sales of real estate properties to individual buyers totaled US$13.0 million during the first nine months of 2011 compared to US$28.5 million during the same period in 2010. Sales of development sites to third party developers have comprised the majority of Cap Cana’s sales since it re-focused its sales strategy in late 2008; however, year to the date, the Company has been unable to finalize any transactions involving the sale of large land parcels.

During the first nine months of the year, the Company has continued to cut its staffing levels and other operational expenses, restructured debt with its local and international lenders and has entered into payment-in-kind transactions involving real estate properties with numerous suppliers and contractors. In addition, Cap Cana undertook a debt cancellation program by entering into payment-in-kind transactions involving real estate properties whereby the Company was able to cancel approximately US$72 million in aggregate debt during the first nine months of the year.

The long-term effects of the 2008 financial crisis, and the subsequent world economic recession, have had a significant impact on Cap Cana’s business and financial condition. The Company intends to continue developing the Resort. However, given the adverse real estate market and operating conditions under which the Company is currently operating, and the uncertainty in the foreseeable future, it cannot guarantee that its future cash flows will be sufficient to cover all of its financial obligations.