Aquatera

Johnny Earles, the real estate broker for the development ran away from that one after talk of FBI investigations were brought up for possible fraud in this development between the developer and the lender or appraiser. This was only the talk around town, and I do not know how true it is, but this came about shortly after the grand reception kicking off the project. Almost immediately, everything halted.

The property would make a nice acquisition by Alys Beach.

FRAUD???? In SoWal Real Estate??? That can't be...it doesn't happen here, just in those other Florida places.

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I think they tried to get it when it was for sale a few years ago. Unless they can get it at a forclosure sale, I believe they'll pass. What did the Aquatera people pay? Around 61 MILLION if I remember correctly .

Maybe that is the reason for the fraud.

edit: just checked, they paid 24.5 million for that property

I wonder if the loan was for $61 million.

that seems to be about the gist of it. chain across the entrance, mobile home looks loose from it's moorings, and 'agent on duty' sign long gone.

It's the balloons...they should have used balloons!! These developers were clueless about savvy marketing techniques.


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I wonder if the loan was for $61 million.

The Property Appraiser's Office says Zhohouri Development paid 61 million. The people who bough it for 24 mil flipped it at closing for the 61.

that is what i heard also....

The Property Appraiser's Office says Zhohouri Development paid 61 million. The people who bough it for 24 mil flipped it at closing for the 61.

The Property Appraiser's Office says Zhohouri Development paid 61 million. The people who bough it for 24 mil flipped it at closing for the 61.

I see that page now, but it was showing only the $24.5 mm sale on the page with the map. Here is the page to which you refer. After a quick search of the corporate names in that flip from $24.5 mm to $61 mm, I see that Camp Creek Development Group who sold it to Zohouri Dev. of South Walton, are have the same mailing address, of 4001 Presidential Pkwy, suite 1512, Atl, Ga. Also, they have the same regeistered agent for their names -- Capital Connection, 417 Virginia St, Tallahassee, FL.

So, it seems that they flipped it to themselves, which is probably how the fraud was committed. Pay $24.5mm for it, create another LLC, which gets a loan for $61mm to buy it, pocketing the difference of roughly $36.5mm. Just my unprofessional guess, based on the rumors and news articles floating around.

I see that page now, but it was showing only the $24.5 mm sale on the page with the map. Here is the page to which you refer. After a quick search of the corporate names in that flip from $24.5 mm to $61 mm, I see that Camp Creek Development Group who sold it to Zohouri Dev. of South Walton, are have the same mailing address, of 4001 Presidential Pkwy, suite 1512, Atl, Ga. Also, they have the same regeistered agent for their names -- Capital Connection, 417 Virginia St, Tallahassee, FL.

So, it seems that they flipped it to themselves, which is probably how the fraud was committed. Pay $24.5mm for it, create another LLC, which gets a loan for $61mm to buy it, pocketing the difference of roughly $36.5mm. Just my unprofessional guess, based on the rumors and news articles floating around.

Sounds like a plausible explanation. What stupid people.

Land is for sale for $58,000,000; see http://www.powersoldit.com/Portals/24/pdf/Aquatera.pdf

Current loan balance is about $39,000,000, which includes the lender's $4,000,000 loan fee (12 points). Lender's appraisal at time of making loan was over $70 mil, so loan 50% original LTV, lTV 67% post bubble busrsting

I wonder if the $58 million includes the beachfront lot they bought for their "beachclub and beach villas." They supposedly paid $5 million plus for that.....

Paying 61 million for that property at the height of the frenzy was stupid. Paying 58 million for it now is insane.

Paying 61 million for that property at the height of the frenzy was stupid. Paying 58 million for it now is insane.

DATELINE APRIL 2006:

?Aquatera is the perfect place to find yourself.?

It has it?s own drink ? the Aquatina ? a pale blue mixture of rum, blue curacao and pineapple juice with a slice of lemon representing the sun, sky and sea, the coastal elements of Aquatera.

?Americans love coastal living, especially at prices that offer a true value in the market place.?

Jose Lora, president of ZOL, said he uses a simple formula, ?listen to market needs. Find out what makes people feel comfortable.

?Aquatera would become the next jewel on the Emerald Coast.?

Real estate broker Johnny Earles is the exclusive sales agent for Aquatera. At Friday night?s event, Earles said he had seen incredible changes on 30A, and promised to bring exciting restaurants, retail and cultural experiences to Aquatera?s town center.


Homesite prices start at $600,000.
Houses will start at about $1.15 million.
Condominiums will start at $1.5 million
Beach flat condominiums will start at $3.5 million.
----------------------------

Wah..Wah...Wahhhh.


Who woulda thought that Eric Estrada would become this year's Johnny Earles ;-)

DATELINE APRIL 2006:

?Aquatera is the perfect place to find yourself.?

It has it?s own drink ? the Aquatina ? a pale blue mixture of rum, blue curacao and pineapple juice with a slice of lemon representing the sun, sky and sea, the coastal elements of Aquatera.

?Americans love coastal living, especially at prices that offer a true value in the market place.?

Jose Lora, president of ZOL, said he uses a simple formula, ?listen to market needs. Find out what makes people feel comfortable.

?Aquatera would become the next jewel on the Emerald Coast.?

Real estate broker Johnny Earles is the exclusive sales agent for Aquatera. At Friday night?s event, Earles said he had seen incredible changes on 30A, and promised to bring exciting restaurants, retail and cultural experiences to Aquatera?s town center.


Homesite prices start at $600,000.
Houses will start at about $1.15 million.
Condominiums will start at $1.5 million
Beach flat condominiums will start at $3.5 million.
----------------------------

Wah..Wah...Wahhhh.


Who woulda thought that Eric Estrada would become this year's Johnny Earles ;-)

Who woulda? You follow Eric a lot. What is the deal?

There could be something here folks; the word (well, 2 words) I heard from my brother in law is "Ponzi scheme"

We know a little bit about an Aquatera related subpoena on the appraiser, Fruitcher Lowery. I found this forum by searching some of the key words here; basically using the developer's name. I don't know the other names on the subpoena list as read to me but it looked like several law firms, banks and brokers like Johnny Earls and Connie Carlsberg

I searched the developper on the Federal lawsuit database, and turned up a Florida case failing to pay the marketing people on Aquatera and Seagrove; and a mortgage company default case in NY- both open

The appraiser in Florida definately got a US Attorney grand jury subpoena on this deal; apparently the case deals with the land purchase and resale as designed to get 200% financing. Apparently this developer buys lots of projects but never really develops anything? It ties to many other deals.

Apparently the developer owns the real estate development company, the contractor who builds, the brokers who sell the product, the mortgage company that makes the loansto buy the insurance company that does the homeowner's insurance, the title insurance compnay, the law firm that closes, the management companythat rents it for you-maybe a bit too stem to stern to pass muster

I agree those posts from the arab don't read very clearly but maybe he or she is on a restricted computer like in a school or institution?

I just think these forums are great for tossing around ideas- time will tell what's what

Susan you are dead on target with what is going on with the Aquatera project

As of Feb 1st 2007 the SoWal project, Aquatera, went into foreclosure.

CIRCUIT COURT, FIRST JUDICIAL CIRCUIT OF THE STATE OF FLORIDA,
IN AND FOR WALTON COUNTY CASE NO: 06-CA000649
VISION BANK, A Florida Banking Corporation, Plaintiff, vs. ZOHOURI SEAGROVE, LP, a Florida Limited Partnership
f/k/a ZOHOURI DEVELOPMENTS SOUTH WALTON, a Florida Limited Liability Company,
FARBOD S. ZOHOURI, a/k/a FRED S. ZOHOURI, individually, CONNELLY & WICKER, INC., and REGIONAL UTILITIES, Defendants.
TO: FARBOD S. ZOHOURI, a/k/a FRED S. ZOHOURI, individually 2467 Verner Road Lawrenceville, Georgia 30245 NOTICE OF ACTION YOU ARE HEREBY NOTIFIED that an action to foreclose ?. See article at: http://www.defuniakherald.com/legal.html

Your community has just had a little taste of Fred Zohouri and his band of crooks.
He is an Atlanta Developer (if you want to call him that) He has swindeled more people than you can imagine. I am one of them. I presently have a law suit pending aginst him for 13 million to try and recapture my lost to his schemes.

Thank God for Lehman Brothers who exposed his frauds. I know they are really P#ss off after having to lay out 130 million to buy his loan back. I guess they feel as though they have been P#ss on, so they are P#ssing back with the help of the feds. Lets just say there is a real P#ssing match going on and Zohouri, the master mind behind the schemes, is going to get drowned in that little match

I have been told that the Atlanta General Mgr. of the Zohouri Group feels that if he is convicted he is going to jail for a long, long time, and if he ever gets out, he will be deported back to Iran. He is about 45 now. Iran can have him back somewhere around the age of 80 if he lives that long.

I need some help. Can any one tell me, or direct me to someone who can help me find out who the names of people who have been issued a federal grand jury subpeona? I need to find out a lot of the details involved with this fraud. Does any one know who really has the facts and is willing to talk?

Does any one know if he has been indited as of yet by the federal grand jury? If so, what Federal Court will handle the Trial? Since the Loans orginated in NY through Lehman brothers, I wonder if his trial would be in the Federal Circuit located in NY. Does any one know who the U.S. Attorney is that is handleing the investigation?

Has there been any recent newspaper articals about this project or Zohouri?

Zohouri is involved in an Orlando scheme for $188 million, as well as one in Pompano Beach with partner George Rethati which is even bigger. His development on South Padre Island exceeds 70 million in a flip where he has pocketed an estimated 40 million along with his partner Jose Lora. That project was purchased last May 19, 2006, and it went into foreclosure Jan 2007. He is involved with at least a dozen condo conversions in the Atlanta area as well.

With the help of his unethical lawyers he was ahead of the game till now His house of cards is falling down. He could have never have done what he has done with out the help of his crooked unethical lawyers.

Shakespear had it right .... "We need to first kill all the lawyers"

exception to the dedication of our local, state and federal prosecutors who protect all of us from the likes of Zohouri and his merry band of theives :clap_1:

But he knows how to have a party.

If the market had not collapsed they would have been called brilliant. When things go south it is called "Fraud"

If the market had not collapsed they would have been called brilliant. When things go south it is called "Fraud"

Brilliant? :roll:

Like the way the man who liberates you of your wallet is a "brilliant" opportunist, unless he gets caught, then he's a thief?

Brilliant? :roll:

Like the way the man who liberates you of your wallet is a "brilliant" opportunist, unless he gets caught, then he's a thief?

Kinda correct. Did anyone get taken on a pre-sale? Or was it just the bank?

If this thread isn't a microcosm of what's been happening with coastal real estate in the past couple years, I don't know what is. I just read the whole thing.

If this thread isn't a microcosm of what's been happening with coastal real estate in the past couple years, I don't know what is. I just read the whole thing.

This is news to me.

This is news to me.

I'm speaking in the general sense. We have had our share of overconfidence and mortgage fraud and condo project implosions here in Tampa. Lots of projects that were timed just terribly, and we've had a significant amount of fraud cases. And the Tampa area still is a reasonably stable market (for now). The price declines haven't been too bad but inventory is high. It is much worse in other markets.

I should clarify that I don't believe the Aquatera story (whatever it truly is) is a common one. But c'mon -- the swing from outrageous optimism to guarded concern to bust is playing out all over the place.

Kinda correct. Did anyone get taken on a pre-sale? Or was it just the bank?

Slimy business practices are slimy business practices, and fraud is fraud. period. It doesn't mater if individuals were hurt, or if it was "just" the banks. It doesn't matter if people made money off of it, or lost money on it.

I have zero tolerance or sympathy for the people that perpetuated the "frauds" in this real estate bubble, or for that matter, for the ones that simply looked the other way and allowed it to go on in order to profit from it.

What goes around comes around ... and boy oh boy is it coming around.

Slimy business practices are slimy business practices, and fraud is fraud. period. It doesn't mater if individuals were hurt, or if it was "just" the banks. It doesn't matter if people made money off of it, or lost money on it.

I have zero tolerance or sympathy for the people that perpetuated the "frauds" in this real estate bubble, or for that matter, for the ones that simply looked the other way and allowed it to go on in order to profit from it.

What goes around comes around ... and boy oh boy is it coming around.

You are correct. I use to work for AmSouth in Birmingham as a lender. I saw a many go to jail for BANK FRAUD!

This thread is interesting to read from start to finish. Unfolds like a novel....

This thread is interesting to read from start to finish. Unfolds like a novel....

How's it end?

This thread is interesting to read from start to finish. Unfolds like a novel....

I still wish we could have gone to the grand opening party with Unplugged.