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IN THE SEVENTEENTH JUDI.

CIAL CIRCUIT COURT


IN AND FOR BROWARD COUNTY, FLORIDA
Case No.: _ _ _ _ _ _ _ _ __
10004326
ANITA OGINSKY,

Plaintiff, .
v.

PROPERTIES OF COSTA RICA, INC.,


a Florida corporation, and
03-
PARAGON PROPERTIES OF COSTA RICA, S.A.,
a foreign profit corporation,

/~
ESTEBAN SOTO and
WILLIAM GALE

_ _De_fen_d_an_ts_._ _ _ _ _ _----", I ~N
--.::::Qp p:----
CLASS ArnON COMPLAIN~~~? ~?rrc:~~//.:1ro--'..,;;;;/I."v' '-!lYe ('/1;:"::'
Plaintiff, Anita Oginsky, sues Defendants, Properties of Cost~~r arago
.....·tJ
Properties of Costa Rica, S.. A., (collectively "Paragon") and Esteban Soto and wilnam..o e
(collectively "Defendants"), for breach of contract, fraud in the inducement, fraud in the
execution and for alter ego.
Introdudion, Parties, Jurisdiction, Venue, Facts Etc.
1. This lawsuit is about a Ponzi·scheme orchestrated by the Defendants. The
Defendants own, market and sell lots of vacant and unimproved land in Costa Rica. The
Defendants require their customers, all of whom are Americans, to make substantial deposits as
part of the contract for the sale of the land. The deposits are purportedly 100% completely
refundable in the event that the buyer provides written notice of intent to cancel and request for a
refund. In fact, one of the Defendants' major selling points is that the deposits are 100"10
refundable. The Plaintiff, like the proposed class members, purchased a lot of vacant land and
made a $29,900 deposit. After visiting the property in Costa Rica, the Defendant decided that
the land was not as expected. She timely made a written demand for a refund of her deposit.
She was verbally told that the refund check was "on its way." After multiple verbal and written
attempts to recover her deposit, she was forced to threaten a lawsuit and she reported the
Defendants to various state agencies. In response to Plaintiff's threat of a lawsuit, the

1
SAREl50N LAW ARM, P.A., 1401 6rkke11 Avenue, Suite 510, Miami, Florida 3313', 305-379-0305. 800-4210'9954 (fax)
www.sarelson.com
Defendants entered into a settlement contract to fully refund the Plaintiff in installments. See
Exhibit A (Settlement Contract). The Defendants paid the Plaintiff $5,800, but have defaulted
on their obligation to pay the Plaintiff the remaining funds.
2. According to the Broward County clerk of courts, there are now at least seven
lawsuits pending against the Defendants for the same conduct. See Charles Arena v. Paragon
Properties 0/ Costa Rica, S.A., et al, Case No. 09036826 (Broward County Circuit Court);
Charles Arena v. Paragon Properties o/Costa Rica, S.A., et al, Case No. 08016933 (Broward
County Circuit Court); Stephen D. Benson, Ph.D. v. Paragon Properties 0/ Costa Rica, S.A., et
al, Case No. 08047677 (Broward County Circuit Court); Louis J. Weinstein v. William Gale, et
ai, Case No. 09058841 (Broward County Circuit Court); George Rosenthal v Paragon
Properties o/Costa Rica, S.A., et ai, Case No. 07010322 (Broward County Circuit Court); Steven
S. Maves v. Paragon Properties o/Costa Rica, S.A .. et ai, Case No. 09065141 (Broward County
Circuit Court); Sid Crossly v. Paragon Properties o/Costa Rica, S.A., et ai, Case No. 09039344
(Broward County Circuit Court). Moreover, several websites are dedicated to exposing the
Defendants' fraudulent activity. See Exhibit B. Finally, in response to Plaintiff's complaints to
various Florida agencies, the Defendants indicated that they have every intention of repaying the
Plaintiff once additional funds corne into the business.
3. The scheme is clear. The Defendants require a significant but fully refundable
deposit on foreign land, and when dissatisfied clients request their refund, they payoff the
dissatisfied clients with new funds received from new clients. This is a fraud, and nothing more.
4. Plaintiff, Anita Oginsky, is a resident of Corunna, Michigan.
5. Defendant, Properties of Costa Rica, Inc., is a Florida corporation with its
principal place of business in Miami-Dade County, Florida It is a wholly owned subsidiary of
co-defendant Paragon Properties of Costa Rica, S.A.
6. Defendant, Paragon Properties of Costa Rica, S.A., is a Costa Rican company.
7. Defendant, Esteban Soto, is a United States citizen who resides in Miami-Dade
County, Florida. He is the president, officer and owner of Paragon.
8. Defendant, William Gale, is a United States citizen who resides in Florida. He is
the chairman, officer and owner of Paragon.
9. Plaintiff is unaware of the exact corporate relationship between and among the
three co-defendants, but upon information and belief, the three entities are legally related to each

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SARELSON LAW FIRM. PA.1401 Brickell Avenue, Suite 510, Miami, Florida 33131, 305-379'()]05. 8000421-9954 (fix)
www.sareIson.com
other. Co-defendants Soto and Gale are the persons behind all these corporate entities and are
the persons most responsible for the failed development in Costa Rica and the fraudulent
business practices associated with the company.
10. Jurisdiction is proper because this is an action at law for damages in excess of
$15,000.
II. Venue is proper because the Defendants are based in Broward County, Florida.
12. Florida law governs this lawsuit.
13. Plaintiff has retained counsel and is obligated to compensate him.
Count I - Breacb of Contract
(All Defendants)
14. Plaintiff incorporates paragraphs 1-13.
15. A valid and enforceable contract between Plaintiff and Paragon exists, under
which Paragon agreed to refund to Plaintiff 100% of the $29,900 deposit she paid. See Exhibit C.
16. Plaintiff and Defendants entered into a Settlement Agreement, under which
Paragon agreed to pay 100% of the $29,900 deposit paid by Plaintiff.
17. Paragon breached the contract by refusing to pay Plaintiff $29,900 as Defendant
obligated itself to do upon Plaintiff requesting a refund within the time frame specified in the
contract.
18. Plaintiff bas suffered significant economic damages as a result of Paragon's
unlawful breach of contract and corresponding failure to refund the $29,900 deposit paid by
Plaintiff.
Count n - Fraud
(All Defendants)
19. Plaintiff incorporates paragraphs 1-13.
20. Defendants made a false statement in stating to Plaintiff that 100% of her deposit
would be refunded if she made a written request for refund after inspecting the property.
21. Defendants knew they were making a false statement at all times they told
Plaintiff that 100% of the deposit would be refunded to her.
22. Defendants made the false statement with the intention of getting the Plaintiff to
give them the deposit amount.

3
SARELSON LAW FIRM. P.A., '401 Brickell Avenue, Suite 510, Miami, Florida 33'31, 305-379-0305, 800-421-9954 (fa)()
www.lnson.com
23. Plaintiff relied on Defendants' statements that her deposit was completely
refundable when she agreed to enter into the contract and give Defendants a $29,900 deposit.
Count DI - Alter Ego
24. Plaintiff incorporates paragraphs 1 - 13.
25. William Gale is chairman and owner of Paragon Properties of Costa Rica, S.A.
26. Esteban Soto is president and owner of Paragon Properties of Costa Rica, S.A.
27. On information and belief, Defendants Paragon Properties of Costa Rica, S.A. and
Properties of Costa Rica, Inc. were operated as mere instrumentalities of William Gale and
Esteban Soto.
28. On information and belief, these entities were operated as a single enterprise for
the individual benefit of Gale and Soto.
29. Gale and/or Soto used the corporate entities to commit a fraud.
30. The operators of these entities failed to maintain corporate formalities as
evidenced by the fact that the Agreement was signed by Esteban Soto while all other
correspondence to the Plaintiff was printed on Properties of Costa Rica, Inc. letterhead.
Demand for Jury Trial
Plaintiff demands a trial by jury on all issues so triable.
Prayer for Relief
Plaintiff prays that this Court enter judgment in her favor against the Defendants, jointly
and severally, award monetary damages (economic and compensatory), award her reasonable
attorneys' fees and costs and any other relief this Court deems appropriat?c
Dated: January £10 ,2010
Respectful!.y submi~~

~
Matthew Seth Sarelson, Esq.
Fla. Bar No. 88828 I
SARELSON LAW FIRM, P.A.
1401 Brickell Avenue, Suite 510
Miami, Florida 33131
305-379-0305
800-421-9954 (fax)
msarelson@sareJson.com

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SARELSON LAW FIRM, PA, 1401 8r1ckeH Avenue, Suite 510, Miami, Florida 33131. 3°5.379-03°5. 800"'421-9954 (fix)
www.sarelson.com
EXHIBIT A
.,
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EXHIBITB
Ripoff Report Search Results: PARAGON PROPERTIES Page 10f3

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Search Results: PARAGON PROPERTIES


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S._rch RHUlb: -i;-N~~"'i&ii'U'p~t;d ~i~·~tt;i~'··~~,·Ph~~~~·
PARAGON
PROpeRTEn
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ShOWing 1 ~ 15
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:-.-
!DAte Title City, State

'J 1/5/2010 ParDQAA Properties fo, costs RIg refym tg retyrn deposit on land and
5:29 PM deralted gn their mntract_posslble I'rg' scale fraud case~I am another
1 of the dozens Q9HIbly bunsiredi of ylttlm$ Hollywood flgrIda
.~ ·Consumer Comment••. Thanks for th, fight
Dulldl[J • Contrar;tQpf; : Plragon Properties b I AuthOJ1 South, FkIrId'a
""'"_
Florid.

, 2 9/9/2009 Paragon Propertieli Of Costa Rica - Sill Gale CEQ - Attorney Charle$
11:11 PM ltYHtaIn. HolIVWood Fl. denied rcrund fresno Callfomla
offtbore Ami 1 Paragon PropertiN OfCosbl
RICa - Bill Gele CEO - AttDmey OIarlu Nuateln,
I AuthOrl hsno, californIa
Haltywood, ....

.-
C.lifornla

:I 9/8/2009 paraoon PrapertlM Of Costt RIce. frludylJnt Contracts for sale of J aoCl
. 9:03 PM In cqst:p RII;. for which there are no filingS cgncernlng the sgllcltatlon
aod Illes made; of such oroperttAA!o the uolted Stites and
spedfi"lIy, tn ttl, State or Rgrldil HOllywgod Florid,
."Same thing happend to me,
Build", • Conl;DlctplJ : Paragon Properties 01 I Author. Fforera, MauaChUAltJ
F10rkla"'"
""""

-
-47/1712009 pompon PrQoertll' Of Costa Rica - Attomey Nuesteln HollywOod Fl-
2t42 PM 8J1l Gale ceq fruad/ml$r:C5Qn:gmtBtlpn '!:Ialt and switch MiamI Reach
fIlu:IdJ.
.. ,trying for money bade;
Attar"",! A bMW $tt£Ykm ~ PMagon
Properties or
Cotta Ffc:I ~ BII G.1e cm •
Attorney chicle. N.,.....,. HoIywood, R,
Rortda
I, Author: New Port Richey, Florid.

. ~ 7/13/2009 flrAgon properttes Of Cast" R'ci still trying to get more Deppslt and
3:53 PM nothlna Is happ!!!oloql Hollywgod F!orld.
BuJk:lm • ContrJctocs : Ptil'llgGl'l Prapettlil Of Author. WCM'Chliter,
eootaRia
Aorid •
I "'a.tlchus'"
. ' 7/11/2009 paragon Propertles or Costa Big I had In almost Identical experience
8~41 AM With thMe pme u lon from Kentudcv dC$C!"Ibed his expenenC!!!,
HOllywgod flortd.
$,111 Plopl. : Pat.gon Propertlet Of Cotta RIc. I Author. NIIW Ya1(, New York
Aortdll

http://www.ripoffreport.comlSearch/Body/PARAGON-PROPERTIES.aspx 112712010
Ripoff Report Search Results: PARAGON PROPERTIES Page 20f3

'i 4/20/2009 PiI@9QD Progertles Costa RICO Rlpgff In c:osta rico paragon prppertles
4:10 PM HollywOod FIor1da
"ultiLcytl Marklttng : ~on Properties I Author; Shet'Wood Park, Alberta
""""-
Florid,

3/212009 paragon Properties or CMta RiCO Udi' Prop!!!rtles or Cog, Rica Inc. t

9:42 PM Kept our dePOSit for .bput 9 months HoIlywgod Florida


e","·lped. SGlm. : hragon Propertlu or
Costa Nca. l.IdI; Properttes OfColbl Rk:I. Inc.
I Author= Meleen, Vlrglnllll

Nltlonwfde

9 2125/2009 Paragon pmperuCfi Up In The: Air breach of ron tract Hilmi florida
1:18 PM
Build",' C9ntA,tgrl! : hragon PI'opertfel Authorl An .omnlon de ac:uu,

Flo""" I QIhe,

.-
:, 10
2/6/2000
j : 13 AM

'U
1/1/2009
paragon properties Of costa Rica :;:how me the money Miami Florida
••.1 need the money or the product
",'!dm • Contgdgrl : Paragon Pf'Ot;Ierties Of
CatbI_
FJortda

Paragon Prcpertles Of Costa Rica HQllywood ElDrida


I Author. IrontlOn, Ohio

4~29 PM pffIhgfl 1Qrm. : Pal'lgon Properties OfCOltl Authorl HR. Colorado


"""
Florida

.--
'"10/27/2008
. 5:34 PM
Paragpo ProoertlCi or Cost, RlgIlJnscrypuloui and unethical real
estate I.nd sales In CDItJ Ric. BUyER BEWAREI Myltlcommerclal
e..de" Ond"a. ftZA. Barrell! De Herdl, HollywOOd ElDrida
... Paragon Properties of Costa Rica, S.A., Stili rTNIIklng promises but no

--
resolution vet...
BIlItm':l : ,.r.gon
Propertln Of eo..
RiCII,
.......,., tr
florida

u PARAGON PROPERTIES OF COSTA. RICA It's 2008 and for aU you fl>lks
10/2712008 out there wondering If PI"ragon PrOperties of Coit' Rica stili has Irate
4:18 PM customers dftmllnd10q thler deQO$lts? I am OnotbOr Victfm of Pa@aon
Properties Of COsta Rki' who refuMs to bl!! fgOOn!!d and cheOted gilt of
bliAl:posft HOLLYWoop F1prlda
"!I!!c!en • r""'"dmli ; PAMGON PA,OPI!RI1ES Author; MtAMI. Florida
OI'COSTA IU:A
Florida

Pari900 properties Of Costa Rlcl S,At • premier Realty Sales Qf Costa


"7/28/2008

'-
BJc:a lido fraydulently enticed dlents to sybmlt huge dePOSits I'Qr land
10:10 AM pUrchases go gromtz of IM'nt refund upon ylsltatlQO of proPerty
HQllywood FIQdda
.rA Lot of mv Friends Have Settle In Costa Rica but how SAfE 15 It theren?
ottJbpnr ICim, : Parqon PI'Operttel Of CoD !
Author. Bl'ldfardwfUI, Kentucky
Rb SoA.- Premier Jfnky 5 .... Ofa.tl Rica
Lido
Florid.

1S
'5/19/2008
9:30 PM
QiDIiIJ ,•. No I\uults
Plrrupt ComP,ol" : Paragon Propertlu Of Authorl KIIhspell, Montana
costa Rica, S.A.
Florida

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http://www.ripoft.report.comlSearch!BodyIPARAGON-PROPERTIES.aspx 112712010
EXHIBITC
9711612988 13:13 818--238-8231 FEDEX KIHKO'S 9474

Premier Really Sales of Costa Rico.. Ltda.


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