Judge Aggregates Several Ginn Lawsuits

Several related lawsuits linked to Bobby Ginn’s Bahamas project have been aggregated under Judge Timothy Corrigan. Corrigan is also hearing the class action lawsuit, Lawrie v. Ginn.

Palm Coast, FL – December 27, 2010 – Timothy Corrigan, District Judge for U.S. District Court, Middle District of Florida, Jacksonville Division has ordered the aggregation of several related Ginn lawsuits. The lawsuits, some individual and some multi-party, involve allegations of fraud tied to Ginn-LA’s (Bobby Ginn and Lubert-Adler) $4.9 billion Bahamas development, Ginn sur Mer.
Corrigan also presides over the largest active Ginn Lawsuit, Lawrie v. Ginn et al. That suit includes several Ginn-LA entities as well as SunTrust, 5th 3rd, and Wachovia banks among the defendants. Plaintiffs in that 19-month old lawsuit recently filed a Second Amended Complaint. If that suit goes to trial, the trial date will be in early 2012.
On a related note; Ginn and LA entities were involved in financing approximately 100 (about half) the lots sold at GSM. The loans were reportedly 5-year balloon. They will all reach maturity soon. With Bobby Ginn recently replaced as LA’s operations partner, it is unclear what LA’s intentions are. Will they foreclose, thus regaining the lots at bargain prices or will they attempt to refinance? It’s possible that some owners, unaware of the deteriorated property values could be enticed to simply refinance the present loan balance. Some GSM property owners have received a request for financial information from the lender. This query is likely related to LA’s strategy.

Although Lubert-Adler and Ginn have parted, it’s clear that they will be seeing a lot of each other over the next few years.
Please help GoToby.com tell the continually unfolding Ginn-LA story. Contact Us with pertinent information or with your personal story.

6 replies
  1. John
    John says:

    Uneducated buyers……still??

    I can’t imagine that anyone unlucky enough to own any property in a Ginn community is, at this point, unaware of the true market value.

    Knowing the greed of the people who financed these lots my guess is that they will extend the current term of the loans and wait until the market bounces. They will foreclose at a basement price then sell off for a profit. They will have earned millions in interest and made some profit on the sale.

    These guys should all be in jail!

  2. Ken
    Ken says:

    Acquire at Rock-Bottom Prices?

    Let me get this right. Ginn-LA financed 80% of the purchase price (that’s $800,000 on a million dollar sale) and forecloses on the borrower to acquire the property at rock-bottom prices. Ginn borrowed 80% of the mortgage amount from another lender. So, Ginn paid CS $1,000,000 to release the lot and owes $640,000 to the mortgage warehouse lender. So, if Ginn forecloses and sells the lot for a rock-bottom $200,000, it would appear as if Ginn has to come out of pocket $440,000 to make its warehouse lender whole and lost out by $800,000 in total on such a transaction (unless the delinquent borrowers pay something to Ginn to be released from their obligations).

    How does that equate to owning at rock-bottom prices?

  3. thebankslayer
    thebankslayer says:

    Lubert Adler

    To make things clear, if the lot sold for, let’s make it simple $1m then the buyer would put up $200,000 Lubert Adler would put up $128,000 and Capital Source would pay the balance of $640,000.
    I find it difficult to believe that Lubert Adler would put up on say 108 mortgaged lots sold so say average price was $1m then that equates to $13,824,000 it would be interesting to find out where that money came from?? This is getting very interesting indeed and I am sure Ira Lubert and Dean Adler are squirming and feeling very nervous at this moment, there is a lot of evidence mounting up against them, they made so much money out of all of this at the expense of others, it is about time they paid the piper.

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