Coconut Grove developer Doug Cox is at the center of lawsuits seeking tens of millions of dollars over allegations of unfinished homes, unpaid debt and selling the same properties to multiple buyers.
A Miami-Dade judge appointed Alan Fine as receiver to oversee the lawsuits filed against Cox, Nicole Pearl, Cox’s Drive Development, Send Enterprises and other entities affiliated with them. Cox and Pearl are a couple, and Pearl, an attorney, handled the contracts.
Buyers of Cox’s homes allege that Cox and Pearl engaged in gross negligence and intentional misconduct, that they committed fraud and ran a civil conspiracy, according to the complaints. Many of the homes have sat nearly completed for months and in some cases, years, even as buyers repeatedly tried to close on the properties. The buyers, who also missed out on closing on homes when mortgage rates were much lower, are now at risk of losing their deposits.
They’re also unable to purchase comparably priced homes in Coconut Grove, as housing prices have rapidly appreciated in the Miami neighborhood over the past couple of years. (Despite the recent slowdown, home prices have continued to rise.)
One lawsuit, filed in early May, seeks to foreclose on about two dozen properties in Miami’s Coconut Grove.
The lender, Altamar Financial Group, sued after entering into six forbearance agreements with Miami-based Send Enterprises for a $34.1 million mortgage issued in November 2019, Altamar’s complaint alleges. As of March of this year, Send Enterprises owes Altamar more than $43 million, plus additional interest, according to the complaint. Cox and Pearl personally guaranteed the financing, which means they are also on the hook for the allegedly unpaid debt.
Miami-Dade County Circuit Court Judge Jennifer Bailey issued the order appointing Fine on Monday. The Miami Herald and NBC6 first reported on the saga.
Altamar’s attorney, Mitchell Mandler of SMGQ Law, declined to comment. Fine and Cox’s lawyer, Mark Raymond of Nelson Mullins, did not respond to requests for comment.
Nearly half a dozen lawsuits have been filed against the developer this year. In one case, Set Dynasty, led by Phillip Sylvester, sold 22 properties to Send Enterprises in 2019 and lent the developer about $6.6 million. In March of this year, Set Dynasty sued Send, Cox and Pearl for allegedly failing to pay Sylvester’s entity back.
The properties are scattered throughout Coconut Grove, on Coconut Avenue, Bird Road, Virginia Street, Gifford Lane, Woodridge Road and elsewhere. Many have had “no trespassing” signs on them for months. Some appear completed, while others are still empty lots.
In a court filing seeking to clear up titles, Send Enterprises alleged in April that Sylvester and his company do not have rights to the properties, and that they are interfering with Send Enterprises’ use of the properties, and harming the value and marketability of them.
Earlier this month, Sylvester’s lawyer, former U.S. Attorney Marcos Jiménez, called on the court to appoint a receiver to “investigate this Ponzi scheme,” he said in a hearing, according to the Herald.
In April, Rafael Isola and Maria Del Mar Velez sued Send Enterprises, Drive Development, Cox, Pearl and Pearl’s Pearl & Associates for more than $1.5 million in damages. The couple entered into a contract to pay about $4.9 million for a home at 2050 Secoffee Street. They put down a $1.5 million deposit.
In their suit, they used the property at 2986 Coconut Avenue as an example. A buyer had that townhouse under contract for $1.4 million, but Cox never received a certificate of occupancy for it despite it appearing to be completed. After the buyer agreed to cancel the contract, Pearl and Cox’s Drive Development listed it for sale for $2.5 million, a 78 percent markup compared to the original purchase price, the complaint alleges.
Isola, Del Mar Velez and the developer agreed to cancel their contract, with Send Enterprises agreeing to return their deposit within one business day, according to the suit. After Send failed to do so, they entered into a settlement agreement, which Send allegedly breached. Finally, the buyers received a check, but that check bounced, Isola and Del Mar Velez’s attorneys, led by Jose Baldor of Peterson Baldor & Maranges, allege.
According to the complaint, Cox “willfully, deliberately, and intentionally failed to commence any construction” to “take advantage of the housing market increases (and profits)” in South Florida.
Last week, a waterfront home in Coconut Grove sold for $49 million, nearly five times its purchase price in 2010.
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