Families Betrayed? Lawsuit Exposes Alleged Land Investment Scam by Eagle Rock Resort

LegalImage via Pixabay

HARRISBURG, PA — Pennsylvania Attorney General Michelle Henry announced legal action on January 9, 2025, against Eagle Rock Resort Co., LLC, and its affiliated entities, accusing the company of misrepresenting undeveloped property values to consumers.

The lawsuit alleges that Eagle Rock, which operates a resort in Hazelton, promoted undeveloped lots as lucrative investments, using inflated valuations and misleading sales tactics. According to the complaint, the company advertised lot prices between $30,000 and $100,000, while resale values often ranged from just $5,000 to $20,000 — far below the original purchase prices.

Attorney General Henry stated, “Eagle Rock allegedly led consumers to believe they were making sound real estate investments, when in reality, consumers bought overpriced properties with very little resale value.” The lawsuit aims to secure restitution for affected consumers and to prevent Eagle Rock from engaging in further deceptive sales.

The company’s sales materials allegedly claimed property values were increasing rapidly, suggesting a strong return on investment. However, the Attorney General asserts that these representations were false and violated both Pennsylvania’s Unfair Trade Practices and Consumer Protection Law and the federal Consumer Financial Protection Act.

Consumers also reported high-pressure sales tactics. One buyer stated that Eagle Rock promised the property’s equity would fund a college education within four years, while another shared frustration at discovering lots were worth significantly less than advertised prices.

The lawsuit, filed with the U.S. District Court for the Middle District of Pennsylvania, seeks monetary repayments for customers, penalties, and injunctive relief to stop Eagle Rock’s alleged practices. Deputy Attorney General Pat Gavin is leading the case. Victims of these practices are encouraged to file complaints with the Bureau of Consumer Protection.

READ:  State Trooper Accused of Shocking Misuse of Work Computer to Store AI-Generated Porn

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.