Colossal real estate scam in Bávaro: Victims report $10 million scheme

SANTO DOMINGO – A group of victims and legal representatives appeared on the Esto No es Radio Show program to denounce a “colossal” real estate scam that has allegedly affected more than 1,200 buyers in the tourist area of Bávaro. The fraud, which involves a complex network of companies, is estimated at more than 10 million dollars, exceeding 600 million Dominican pesos.

The project, originally named Punta Cana Macao, was marketed starting in 2020 by Constructora Espinal Gautreaux, owned by Johnny Juan Ramón Espinal and Nicole Espinal. According to the complaint, the developers managed to sell all 1,200 units in just three months, raising funds from savers and foreign investors through deceptive maneuvers.

READ ALSO: Do you know how to detect a real estate scam?

The criminal scheme operated through the use of three different companies to hinder legal prosecution. As the lawyers present explained, clients paid one entity, signed a contract with another, and dealt with a third construction company. To build trust, the developers installed Fiduciaria Universal signs on the land, even though they never legally formalized the trust nor contributed the property to it.

“The fraud is well-executed precisely for this… construction company, developer, marketing, trust. It is well-executed so that prosecution is more difficult because there is a corporate veil,” stated the legal representatives during the interview.

One of the most dramatic cases is that of the Spanish investor Manuel Pasquín, who was allegedly scammed out of 360,000 dollars. Pasquín, who planned to retire in the Dominican Republic after working his whole life in Spain, purchased two apartments and two commercial spaces. “If I can’t sell a Coca-Cola, then I must be really bad at this,” he recalled thinking with excitement when buying a space for a minimarket, before discovering that the project was a sham.

Inactive justice and a ringleader in rebellion

The complaint points directly to Johnny Juan Ramón Espinal Gautreaux as the mastermind, who according to the lawyers has been in a state of rebellion since 2020. Despite multiple arrest warrants and the existence of fugitive capture units, the accused remains at large.

“He hasn’t been out since 2021… here people know the presence of how to find anyone anywhere if they don’t appear because there is someone who doesn’t want them to appear”, they pointed out with indignation regarding the apparent inaction of the authorities to execute court orders.

Alert regarding new AI scams

The affected parties warned that those responsible continue to operate and sell plots under a new trade name called “Cocono”, even using artificial intelligence to generate videos of machinery working on land where not a single block has been laid.

This scandal not only affects the assets of hundreds of families, but also puts legal certainty and the image of the Dominican Republic at risk before foreign investment and the diaspora.

“Investment in the last year and this year has dropped significantly because the diaspora does not trust the country”, concluded one of the real estate advisors affected by the lack of state response to these types of criminal structures.