Save our Nicaraguan Investment
We state the following account of the facts are true to the best of our knowledge and ask for your support to help save our investment in Rancho Santa Rosa (RSR) located near El Transito, Nicaragua.
RSR is an 800 acre development that has approximately 170 lots of which approximately 98 of the lots have been sold since 2003 to principally U.S. citizens. The remaining lots, infrastructure and surrounding land are still owned by the Nicaraguan Land Fund, S.A. (NFSLA)
I am a lot owner in RSR and a US Citizen. I bought my lot based upon representations that a planned community would be developed. The promises made were the following:
- Defined Common Areas - A clubhouse with a pool, roads, entrance gates, sufficient water infrastructure, and electrical infrastructure.
- Legal Homeowners Association (HOA) - That a legal HOA was established to operate and maintain the common areas.
Modesto Emilio Barrios Jarquin (Mr. Barrios) was the developers' trusted attorney who defined common areas and created the HOA, which was improperly constructed and designed causing the development to descend into disarray. Mr. Barrios, who was the attorney of the developers (Robert Fordi and Jon Schainker), has perpetrated fraud against the developers and lot owners to unlawfully profit at their expense. He never alerted owners to the creation of the HOA, has never held meetings not put issues to vote, but rather unilaterally has run the project to his own personal gain.
The full extent of the fraud was discovered when Christopher Marlett (who is the only person living in the development) reached an agreement to purchase the remaining part of the development to try to fix the issues principally caused by Mr. Barrios' actions.
When the purchase agreement was agreed to, Mr. Barrios demanded he get paid a disproportionate part of the proceeds, and when the developers didn't agree, Mr. Barrios revealed that he owned NFSLA now. The developers and Mr. Marlett discovered Mr. Barrios had changed the ownership of NFSLA with his powers of attorney. Barrios has also conveyed title to lots and common areas such as the clubhouse to his friends and family.
Mr. Barrios took advantage of the developers using his knowledge of the legal system to commit fraud and convey ownership of the corporation without the developers' consent or knowledge. As a lot owner, we are victim of Mr. Barrios' fraud and our investments are worthless. We can neither sell nor build. A potential buyer would learn of the mess created by Mr. Barrios and see the disrepair of RSR. We also can't develop our lots because of lack of water and the state of disrepair of the other utilities due to lack of maintenance over the last two years.
We are asking for support to resolve the fraud perpetrated by Mr. Barrios and return ownership to the original developers as quickly as possible, so that the sale of the property can be executed and the lot owners can begin the process of rehabilitating the development and recovering their investment.