Inside Meruelo Family, David Martin Deauville Allegations

Developer David Martin is at the center of a rupture within the Meruelo family over control of the former Deauville Beach Resort, an oceanfront property he and the Meruelos’ are expected to co-develop into a luxury condo and hotel.

The lawsuit, filed in April, accuses Martin and Richard Meruelo of orchestrating a scheme to manipulate and trick family matriarch Belinda Meruelo into signing away a 25 percent stake in the property for just $12.5 million, when the entire 3.8-acre site was worth at least $500 million.

The 110-page complaint was filed by the Meruelos’ Deauville Associates, but even that is a point of contention within the family. Shortly before The Real Deal published a story last week about the complaint, family attorney Jose Chanfrau IV stated the lawsuit was “unauthorized” and prompted by two of Belinda’s granddaughters, Natalie and Melissa.

The complaint is pending in Miami-Dade County Circuit Court.

At the center of the lawsuit is the deal with Martin. It alleges that Martin, Richard Meruelo, other members of the Meruelo family and associates deceived and exploited Belinda, who is described as a vulnerable, elderly woman who had begun experiencing memory loss.

At her 88th birthday party at the office, the lawsuit alleges that she was lured into a closed-door meeting and “manipulated and tricked” into signing away an interest in the oceanfront Deauville property, which the family had fought to keep in the family for years. (Billionaire developer Steve Ross planned to buy the property for $500 million, a deal that was contingent on voter approval of a high-density redevelopment proposal. Voters rejected the upzoning.)

Under the Meruelos’ control, the Deauville fell into such a state of disrepair that a judge, the same judge who oversaw the Surfside collapse litigation, ordered it to be demolished. The building was torn down just weeks after the death of Belinda’s other son, Homero, who ran the Deauville with Belinda.

The complaint identifies his November 2022 death as a critical moment when Martin and Richard allegedly targeted Belinda. It alleges fraud, breach of fiduciary duty, rescission of the land contract and co-tenancy agreement, cancellation of the deed and civil conspiracy.

Deauville Associates sued Martin, his TMG 67 Communities and Terra Acquisitions Florida LLC; Richard Meruelo, Miguel Echemendia, Louis Zaretsky, Stephen and Anthony Meruelo and their Menada Inc.; and two other LLCs.

Terra’s attorney, John Shubin, said in a statement released last week that they are aware of the lawsuit and “parties are engaged in ongoing discussions aimed at resolving the matter.” The Meruelo defendants, Zaretsky and Echemendia did not immediately respond to requests for comment.

Time will tell how the complaint moves forward and what that means for the future of the Deauville.

The lawsuit details the Deauville’s ownership structure prior to and after the deal with Terra. Natalie and Melissa joined the family business in 2013 and they took over Homero’s interest in Deauville Holdings days prior to his death. Deauville Holdings, the suit claims, is the sole member under Deauville Associates. Belinda and her two granddaughters are the only shareholders in Deauville Holdings, according to the suit. Last summer, Natalie and Melissa were appointed as directors of the company.

Prior to 2022, Homero and Belinda each owned 50 percent of the Deauville, according to the suit.

The lawsuit clearly outlines the dispute between the granddaughters and their uncle Richard, as well as the mess Martin stepped into when he struck a deal for the Deauville. Martin is known as a developer who can handle complex deals and players. Last summer, he secured final approval of two controversial amendments to the city’s North Beach overlay district, as well as a development agreement and settlement agreement that resolved litigation between the city and the property owners.

Here’s who allegedly did what:

David Martin

Martin, CEO of Terra, was accused of enlisting Richard to get access to the family’s “dealmakers” back in 2022. Martin allegedly learned of Richard’s “ongoing efforts to usurp control” of Deauville Associates in September of that year.

The complaint alleges that Belinda’s vulnerable state allowed Richard to “assert control over her,” especially following Homero’s death. The lawsuit claims that Martin knew this and deliberately misled Homero’s daughters as he “secretly put together a sham, sweetheart deal through Richard.”

The complaint also alleges that Martin cast aside any inhibitions he had about the deal’s inequity and illegality to secure his interest in the Deauville.

Richard Meruelo

Richard’s involvement in the alleged plot, according to the lawsuit, “was no coincidence” as the insider who allegedly gave Martin access to his mother.

Once the deal with Terra was signed, Richard allegedly siphoned the proceeds of the sale for his personal use, directing Zaretsky to wire the funds to Menada Inc. “a company Belinda owns but over which Richard has usurped control.” He then used that to purchase real estate for his sons, Stephen and Anthony, according to the complaint.

Louis Zaretsky and Miguel Echemendia

Zaretsky, an attorney who has represented the family for years, is accused of falling into Richard’s “sphere of influence” after Homero’s death.

Echemendia is described as Richard’s longtime business associate.

The complaint alleges that the co-tenancy agreement signed at Belinda’s 88th birthday party effectively ended the Meruelo family’s control over the property, and that this is where Zaretsky and Echemendia played a key role. Zaretsky was the seller’s counsel and prepared the closing documents, and his title company served as the escrow agent in the deal.

One document Zaretsky prepared falsely stated that Belinda was authorized to execute the closing documents, according to the lawsuit. Echemendia then witnessed Belinda’s signatures, which were notarized by Zaretsky.

“Zaretsky later expressed concern about how the transaction was carried out with respect to Belinda. But neither tried to stop the clearly unethical, exploitative transaction that an unwitting Belinda was being told to consummate,” the complaint alleges. “They instead facilitated it.”