Trump Soho Developers Settle Fraud Suit, Give Buyers 90% Refunds
November 3, 2011
Ten Trump Soho buyers are getting a 90 percent refund on their deposits because the Bayrock Group and the Sapir Organization were found to have misrepresented sales figures.
The New York Post reported that a federal lawsuit filed by the buyers against the building’s sponsors was settled yesterday, and they will get 90 percent of the $5.197 million in deposits they combined to have put down on $16.914 million worth of apartments. The buyers claim to have been told as many as 60 percent of the units were sold, when at the time just 16 percent of the hotel-condo units in the building, at 246 Spring Street, were actually sold. Adam Leitman Bailey represented the buyers.
The defendants’ attorney, Steven Goldman, said there was no admission of guilt by the developers in the settlement. And Ivanka Trump, who manages the hotel, was happy with the outcome. “Business is so strong that we’re delighted to get the units back,” she said. “It’s a great settlement for everyone.”
When the suit was filed, Bayrock and Sapir offered refunds to buyers who declined to join the fraud suit.
While the Post said it’s difficult to get exact sales data, Streeteasy.com shows 161 sales in the 391-unit building, with three more in contract and 42 on the market. Prudential Douglas Elliman took over marketing at the building in July. [Post]