Luxury South Florida Real Estate Developer Accused of Fraudulently Doctoring Construction Invoices and Overcharging Customers
Miami homebuilder Francisco Mendez, and his company Pioneer Inter-Development, have been sued for millions of dollars, according to a recent lawsuit filed in the Miami-Dade Circuit Court on Wednesday, December 23rd.
The real estate lawsuit alleges that Mendez inflated construction invoices, overcharging customers for services and overpaying subcontractors. Mendez is accused of then demanding that the subcontractors pay him the difference, allowing him to pocket the extra money collected from his real estate clients.
Marianna Dubinsky is also named in the lawsuit, along with her companies SDG Remodeling Construction Group, VRG Remodeling Construction Corp, and Emgei Finish Services. Dubinsky is accused of aiding Mendez in the fraud scheme by providing his company with the revised and inflated invoices.
The lawsuit names three defendants who were customers of Mendez and Pioneer Inter-Development: Ana and Patricio Cordero and Trevor Taylor. Taylor alleges that Mendez took three years to build a home that was promised to him in 12 months, all while continuing to charge him for construction services.
The project began in 2017, and it wasn’t until the summer of this year that Taylor discovered that he had been overcharged by at least $600,000. A concrete subcontractor had received $600,000 less than Taylor paid for the service, funds that he found went to Pioneer Inter-Development and Francisco Mendez.
Taylor also discovered that he had been double-billed for the same services; once by a window subcontractor for $11,139 and again for $44,695. The invoices looked identical save for the differing amounts, however, the window provider did not have any record of the second invoice. Taylor requested a refund of the $44,695 after finding out that he was overcharged, however, Mendez refused and terminated the construction project.
The Corderos allege that they were overcharged by $2 million or more when Pioneer Inter-Development took more than two years to make minimal progress on their custom home. The couple later discovered that specialty materials they had paid for were never ordered and instead, the funds were moved through SDG Remodeling Construction Group, VRG Remodeling Construction Corp, and Emgei Finish Services.
At the time of writing, the plaintiffs are awaiting a hearing. An attorney for Mendez claims that he committed no wrongdoing and will pursue litigation in court.
Real Estate Litigation
Were you or your loved ones defrauded by a Homebuilder, Developer, or Contractor? Do you need help deciphering whether or not there was a fraud? If you have been defrauded or if your suspicions are correct, you are in the company of dozens of Floridians affected by contract and homebuilding scams each year. In the above action, the plaintiff exercised their rights to litigate the material issues in their case, you have that same right at your disposal should you choose to do so. The allegations made in their case speak to a variety of fraud and wrongdoing on behalf of their homebuilder such as:
- unjust enrichment
- civil conspiracy
Criminal Charges In Real Estate Fraud
Under new Florida laws that were passed in July of 2019, House Bill 7125, modified Florida Statute 489.126 in such a manner that it may actually afford some homeowners/homebuyers with additional protections and avenues to pursue criminal charges against a contractor who defrauds them.
Get Help Today
If you have suffered fraud at the hands of your home builder, contractor, or developer, it is vital that you get experienced Real Estate Litigation help from an experienced real estate litigation attorney as soon as possible. Feinstein Real Estate Litigation & Business Law is recognized in the industry for its aggressive litigation skills. Call for help now: tel:954-767-9662