West Palm Beach Developer Stiffs Customers Out Of $10 Million In Deposits For Unbuilt Condo

In Florida, The Palm Beach Post reports:

• Finally, an answer for why a developer won't return about $10 million in deposits to buyers of the unbuilt Palladio Terrace condo: Merco Group says it doesn't have to return the money! Merco Group has been a virtual stone wall when it comes to explaining why it is keeping money from its prospective buyers, even though the company canceled plans for the luxury West Palm Beach condo in January. Buyers have begged, cried and sued to get their money back, mostly to no avail. But in a recent court filing, Merco says that state law allows it to keep deposits for "construction and development," Merco emphasized. We're not exactly sure what "development" means, especially since Merco lawyer Harold Patricoff didn't return a phone call to explain.

A lawsuit on behalf of customers has reportedly just been amended to include civil theft, which carries a possible award of triple damages, plus interest and attorneys fees. For more, see Fight over Palladio deposits rages on.

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