Orlando Cay Clubs Resort and Academy
Belt Law Firm, PC represents approximately 200 condominium unit owners at the former Orlando Cay Clubs Resort and Academy in Orlando, Florida, in a fraud and deceptive trade practices case against IMG Academies, LLP and Sunvest Communities USA, LLC. Although not a class action, this multi-plaintiff, mass action, shares many of the same characteristics of a class action and asserts that IMG Academies, Sunvest and Cay Clubs International were involved in a partnership or joint venture to develop and convert an apartment complex in Orlando, Florida (known as the Eaglewood Apartments) into luxury condominium units, which included an on-site IMG Academies sports complex and training facility. The plaintiffs were induced to purchase these units pre-conversion and renovation based on the representation of the IMG partnership/joint venture, which would bring IMG’s entire soccer training facility to the Orlando Cay Clubs Resort and Academy. Plaintiffs were also promised a 15% “leaseback” within 45 days of purchase. Under the leaseback arrangement, Plaintiffs were to receive 15% of their purchase price back to offset the cost of their mortgage and HOA payments for two years during which time the promised conversion and renovations were to be completed. The promised conversion and renovations were not done, and the vast majority of purchasers received none, or only a portion of the promised leaseback monies.
IMG, Sunvest and Cay Clubs implemented a sophisticated and tantalizing marketing campaign which included detailed artists renderings of the property after completion. Further adding credibility to the project is the fact that IMG Academies and Sunvest were “partners” in the project. Both IMG and Sunvest were in other “joint ventures” or “partnerships” with Cay Clubs International to convert and develop other properties into luxury, five-star resorts. As further proof of the value of the IMG and Sunvest partnership, purchasers were presented with “sample” appraisals, which were represented to be the appraisals from actual, arms-length transactions that had recently occurred at the property. These appraisals, prepared by “friendly appraisers,” showed the units valued between $350,00 to $500,000 depending upon the unit. A primary justification for this appraised value was the IMG partnership in that IMG properties historically greatly increased in value.
IMG, Sunvest and Cay Clubs have now abandoned the property which is now being marketed as “work force” housing. These entities have also abandoned other Cay Clubs properties which some or all were “partners” or “joint venturers” including Clearwater Cay Clubs, Sarasota Cay Clubs, Las Vegas Cay Clubs and Sombrero Cay Clubs. Purchasers of units at these other properties were victimized by a similar scheme to defraud. Many of these properties are also subject to litigation in an attempt to recoup the losses suffered by the purchasers. The units at the former Orlando Cay Clubs Resort and Academy currently have a market value of between $70,000 to $90,000, which is far below the purchase prices of $300,000 to $500,000. This drastic difference in the actual market value versus the purchase price, combined with the fact that most clients never received the promised leaseback funds, have left purchasers in an untenable financial position. Many have been forced into foreclosure, bankruptcy and other forms of financial ruin. While IMG, Sunvest and Cay Clubs each received portions of the over $70,000,000 collected from the sale of units at the Orlando Cay Clubs Resort and Academy.
If you or a family member also suffered some form of financial damage from the purchase of a Cay Clubs unit, and would be willing to discuss your experience with us, please call us toll free at 1-888-933-1514 or email us at info@beltlawfirm.com.
