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Buyers Lose $32 Million as Trump's Baja Bet Folds
Donald's name drew deposits which couldn't be refunded
By Matt Cantor
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Posted Mar 7, 09 8:29 AM CST
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(Newser)
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Donald Trump lost some very big fans when his luxury hotel-condo plan in Mexico collapsed, leaving little more than a hole in the ground and investors out of $32.2 million in deposits, the AP reports. Trump and his children heavily promoted the resort on the northern tip of Mexico's Baja California coast. He sold 188 units for $122 million the first day they went on a sale at a lavish event in a downtown San Diego hotel in December 2006.
One buyer has sued Trump, and more lawsuits are likely. Buyers were told Trump wasn’t an investor in a letter saying a construction loan had fallen through, but Ivanka Trump had told the AP her dad was “boss” of the project. The letter cited a clause allowing deposits to be spent. “If Donald Trump was behind it, it was going to work,” said a woman who put down $250,000 for a place.