March 15, 2009

Investors sue Trump over Mexican project

Celebrity U.S. developer Donald Trump owes millions of dollars to investors in a failed bid to build a hotel-resort in Mexico, a lawsuit alleges.

Dozens of investors sued Trump late last week, claiming they poured $32 million into his plans for the Trump Ocean Club Resort in Baja California but now have been told they won't get a penny back, CBS News reported Sunday.

How could you go wrong? You are investing in a multimillionaire who has proven himself in many real estate ventures, said investor Guadelupe Mendoza, while another investor, Hamed Hoshyarsar, said the involvement of the high-profile television personality "was the main reason we went ahead with this project.

The money is gone. All they've told us is there is no money. That's it, he said.

The Trump Organization, however, told CBS it was never the developer but only helped design the project and lent it the Trump name.

I am sorry for everyone but we are in the same boat, Ivanka Trump told the network. We had to terminate our contract because our agreements weren't obligated either.