Investors in Dominican resort scream swindle, vow court action

Santo Domingo.- Investors in a residential project in one of Dominican Republic’s most thriving resort regions say they’ve been scammed by the real estate company Intercaribe, and its president, Illonka Castillo, which led a bank to foreclose on several of their properties worth US$20 million.

“My wife and I constructed our "dream" home in Costa Bavaro six years ago, for the first five years the residents here dealt with constant lies from Illonka Castillo who took the maintenance money a invested it in their own investments. For months we had no security (constant robberies) no trash removal, no street lights, basically it was a mess,” said a letter by one of the investors who’ve taken legal action.

Although not the first time foreign and local investors have been swindled by real estate companies that deal with upscale properties, the fact that Ilonka Castillo is a well known public figure who appears often on television to promote the sector makes this scandal unprecedented, spurring the term “ironic” from one investor. “I am writing to denounce the abuse to hundreds of investors on the part of the real estate company Intercaribe, S.A. Ironically the same day (October 9) while the president (Leonel Fernandez) inaugurated a project symbolizing the country’s progress, Intercaribe S.A., represented by Mrs. Ilonka Castillo as its president, misappropriated hundreds of thousands of dollars.”

DT tried to call the IFA and Itercaribe phone numbers provided on its Website, they weren’t in service or incorrect, and an email didn’t get a response. We also tried to contact the Residencial Costa Bavaro office manager, Jocelyn de la Mota, but again, the numbers provided were either not in service or incorrect.

One of the investors even called the scam a “rape” occurring for the last six years, and notes that “nothing is happening,” “This Costa Bavaro has become a huge scam. The residents are furious that they are being "raped" for the last 6 years and nothing is changing.”

And although two of the investors said we could use their names, DT will await the response from those responsible for the project.

THE LETTERS TO DT:

“My wife and I constructed our "dream" home in Costa Bavaro six years ago. Since this time we have religiously paid our maintenance bills first to Intercaribe and now to the present company in charge IFA Resorts.”

“For the first 5 years the residence here dealt with constant lies from Illonka Castillo who took the maintenance money a invested it in their own investments. For months we had no security (constant robberies) no trash removal, no street lights, basically it was a mess.”

“At the present time the IFA resorts will not disclose any expenses to the property owners, the second phase looks like an "earthquake" has hit the roads. The first phase of Costa Bavaro where the IFA Resorts is located is spotless, good roads, no trash, and better security. It is very obvious that the money that the residents in the second phase is being only put to use in maintaining the cleanliness of the first phase and the IFA RESORTS.”

“When you ask about the roads they tell you maybe they will repair them next month. I, myself have offered my labor for free to fill in the holes if the stone and truck was provided. I figured it was cheaper than repairing my car. The other point is that they charge you to buy a water meter for $400 U.S. dollars when you construct a villa, and turn around and remove it if you are a day late paying the maintenance fee.”

“This Costa Bavaro has become a huge scam. The residents are furious that they are being "raped" for the last 6 years and nothing is changing. Mr. Pineda, I think this is a worthwhile story for your newspaper, since this is mostly foreign investors coming to the Dominican Republic to retire and live a stress free life and ending up in turmoil. I would like to meet with you in Costa Bavaro and have you listen to many of the residents and even speak to the administration here for a story in the Dominican Today. Look forward in talking to you.”

Another investor:

“I am writing to denounce the abuse to hundreds of investors on the part of the real estate company Intercaribe, S.A. Ironically the same day (October 9 ) while the president (Leonel Fernandez) inaugurated a project symbolizing the country’s progress, Intercaribe S.A., represented by Mrs. Ilonka Castillo as its president, misappropriated with hundreds of thousands of dollars.”

“Numerous sums of dollars, which honest middle-class investors, most of them with intentions to retire in R.D., were deposited in the hands of Mrs. Ilonka Castillo and company.”

“Mr. Pineda, for your information and to superficially understand the importance of such a significant situation, Mrs. Ilonka Castillo is the same person who represents the Dominican Republic internationally in her role as president before (FIABCI), the International Real Estate Federation.”

“The abuses to the people who have invested in Costa Bavaro continue still, Mrs. Ilonka Castillo has yet to respond for the money she received and a significant number of investors are taking Mrs. Castillo to court by means of their lawyers.”

“The Progreso Bank itself has foreclosed on the properties that Mrs. Castillo failed to pay for, although she received the money from the owners who were swindled, the bank took possession of the properties valued at $20 million dollars…the events at the IFA’s Residencial Costa Bavaro are of extreme importance for the country and its progress. The valuable information which we have will be news that will have repercussions in other media.”