Jason Grosfeld sells a bill of goods at Costa Palmas
Jason Grosfeld, developer of Costa Palmas and its five star Four Seasons resort and residences in Cabo San Lucas, Mexico, markets Four Seasons branded homes that cost up to $25 million based on promises that with a Private Residence “every whim [is] attended to” and Costa Palmas will “make it effortless.”
For some buyers in Costa Palmas, including Steve Anderson and Amit Raizada, Grosfeld and his company Irongate made empty promises and sold them a bill of goods.
In Anderson’s case, Irongate sold him a $10 million home that was supposed to be done by June 2019. Grosfeld and others at Irongate told Anderson the Four Seasons in Costa Palmas could not be opened until his home was built. Irongate took a $5 million deposit from Anderson, but then did not complete the home as promised. Irongate misled Anderson about the connection with the Four Seasons as the hotel opened in October 2019, long before Anderson’s home was finished. When Anderson threatened to sue, Irongate told him the home was finished but demanded another $1.5 million before he could inspect the property. Anderson paid the money only to find the house was not finished and had many construction defects. When Anderson filed suit against Irongate in California, Irongate revoked his Club membership, declared a contract default, and forced Anderson to sue in Mexico where Irongate has sway. In the meantime, Irongate is trying to sell Anderson’s home out from under him. According to Anderson, “The multiple lawsuits filed against Irongate and its principals, including Jason Grosfeld, allege unethical and unscrupulous business practices, and a pattern of refusing to take responsibility and accountability for their actions.”
Raizada tells a different but similar tale. In March 2020, TRG CP, an entity that Raizada manages through Spectrum Business Ventures, purchased a $4.25 million lot in Costa Palmas and hired Irongate to build a $5 million home by September 2021 based on what Irongate told him were “hard” construction bids. Almost four years later, after paying more than $4 million in construction payments, TRG CP’s home is a bare concrete shell. Irongate refuses to prove where the money went or that the materials Irongate supposedly purchased even exist. Irongate also misled Raizada and is using strong arm tactics to extract another $5 million to complete the home. Like Anderson, when TRG CP sued Irongate, Grosfeld revoked its Club membership, declared some erroneous default, and is trying to force TRG CP to litigate in Mexico, outside of the protections of the United States. Raizada echoes Anderson’s sentiments: “In my opinion, Waller, Laufer and others at Irongate have no moral compass and will do whatever it takes to put money in Grosfeld’s pocket.”
Anderson and Raizada are cooperating with Mexican and United States law enforcement agencies in ongoing investigations into these matters. They are also maintaining suits against Irongate and its principals. Spectrum and Raizada are seasoned litigants who “will go to the mat” to protect their interests. They believe that many other owners in Costa Palmas will also come forward as Irongate’s conduct is exposed and the fear of retribution declines. In the words of yet another owner who is still afraid to publicly reveal their identity, “these are ruthless people. In fact they are the meanest people I’ve ever dealt with.”
When reached out to Mitchell Laufer of Irongate for comment we received a reply back from Alix West of CandRPR who said:
“This situation is nothing more than a misguided attempt by two disgruntled ex-buyers to use the press to extort a result they were unable to get in court. A California court has dismissed one of these lawsuits, and we expect that another similar lawsuit will soon be dismissed as well. These are commercial disputes, nothing more, that will be resolved very soon in accordance with the mutually agreed arbitration provisions set forth in the contract.”
In response to Irongates representative’s response Amit Raizada for TRG CP, LLC responded with:
“Irongate’s nonchalant brushoff is what one would expect from someone like Jason Grosfeld, who was born with a silver spoon in his mouth and takes advantage of those who actually worked hard to achieve the success that is typical of homeowners in Costa Palmas. This is not a simple or innocent “commercial dispute” that will be quickly resolved. Dozens of buyers have fallen prey to Irongate’s rampant fraud, theft and extortion in Costa Palmas and they are no longer willing to be victimized. Steve Anderson and I are taking the lead to protect others, we are pursuing claims against Irongate for tens of millions of dollars in damages and are actively cooperating with ongoing criminal investigations involving Irongate, Grosfeld, and others by the Department of Homeland Security, both in the United States and in Mexico. Homebuyers in Costa Palmas want justice, and a reckoning is coming.”
Members of the editorial and news staff of Law&Crime were not involved in the creation of this content.
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