Canadian Lender Romspen Investment Corp. Sues Fake Real Estate Tycoon Caroline Weiss For Foreclosure After Throwing $21.3 Million At Her

Are you an inexperienced real estate developer who is being sued for fraud by your own daughter and need a $21.3 million dollar loan?

Well, we have perfect lender for you! Yes, Canadian lender Romspen Investment Corp. will throw money at you. Just like they did for fake Miami real estate tycoon Carolyn Weiss in 2020 and her affiliated Blue Lagoon LLCs. 

MFI-Miami associates have done commercial lending. So, we understand the finer points of commercial underwriting. That’s why we and and some our contacts that do commercial lending are scratching our collective heads.

We all find Romspen Investment’s decision to loan $21.3 million to Weiss is just bizarre. It defies logic and common sense.

Who in their right mind would loan an inexperience wannabe real estate developer $21.3 million when she’s being sued by her daughter for fraud. 

Seriously, how this ever made through the front door at Romspen Investment is just too crazy to believe. Any sane commercial lender would run for the hills upon learning of the civil fraud lawsuit. Yet, Romspen Investment was willing to throw money at Caroline Weiss.

The loan also defies Romspen’s mission statement on their website.

In a nutshell, it appears no one at Romspen did any basic due diligence or underwriting on Carol Weiss or the property involved. 

One real estate investor believes Romspen was aware of Weiss’ inexperience and the lawsuit and just did it set Caroline Weiss up to fail Was their long term goal to snag the Blue Lagoon properties for pennies on the dollar?

Romspen Investment Finally Forecloses On Caroline Weiss. How Big Of A Loss Will They Take?

On May 31, 2023, Romspen’s Cayman Islands tax exempt subsidiary filed a 200+ page foreclosure lawsuit against Caroline Weiss. TIG Romspen US Master Mortgage LP also sued all of her Blue Lagoon entities in Miami. Romspen also sued the City of Miami for some bizarre reason. The court later dropped the City of Miami from the lawsuit.

In their lawsuit, Romspen openly admits they loaned $21.3 million to the fake real estate tycoon and alleged fraudster in March 2020.

The tax dodging subsidiary also alleges Weiss did not pay off the loan at it’s maturity date in October 2022. They also allege Weiss failed to pay 3 years of property taxes on the 3 parcels located near Miami International Airport. 

Additionally, the lawsuit also alleges that Romspen sent Weiss a notice in October 2022 demanding she pay the back taxes. However, it appears Romspen paid the taxes and they apparently paid them fast.

But, why? Florida is a swamp. It’s filled with schools of inexperienced and bottom feeding parasites. Parasites looking to make a killing on real estate by buying tax liens and unpaid HOA fees. 

How Big Of A Hit Will Romspen Take From Not Only This Loan But To Their Reputation?

The big question is, how big of an overall loss on this will Romspen take on this loan? Well, there a number of external factors at play here that go beyond Romspen’s lack of due diligence and half ass underwriting.

However, at the end of day, it comes down to one big issue. Why would the Canadian company loan an inexperienced real estate developer and alleged fraudster $21.3 million when she was being sued for fraud?

It’s apparent that Romspen is in the hot seat with investors over this loan. After all, most deep pocketed real estate investors would be.

Investors don’t like hearing, “I dunno” when asking why their money disappeared on a bad loan. They may think twice about investing with Romspen in the future. 

Also, Check Out These Other Articles About Caroline Weiss And Romspen Investment Corp.:

Miami Developer Caroline Weiss Accused Of Multiple Counts Of Fraud

Romspen Sued For $21M In Miami Real Estate Fraud Case

You Can Also Check Out The Lawsuit Here.

The Case is  #2023-017596-CA-01