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2/13/2019 12:19 PM

Velva L. Price
District Clerk
Travis County
000772
Cause No. D-1-GN-19-_______ D-1-GN-19-000772
Daniel Smith

TRAVIS COUNTY, TEXAS § THE DISTRICT COURT OF


§
Plaintiff, §
§
§
v. §
§
CHAPARRAL WOODS, LLC; A.J. § TRAVIS COUNTY, TEXAS
SHIELD; STACY HOWARD; §
JEFFERY PALMER; URIEL §
CASTRO; JOHNNY MORON and §
ANGELA SKLOSS §
§
§ 126TH
Defendants § ____ JUDICIAL DISTRICT

PLAINTIFF’S ORIGINAL PETITION


AND APPLICATION FOR INJUNCTIVE RELIEF

The Defendants in this case deceived multiple families into paying over $850,000 for

something that doesn’t exist – a unit in an imaginary condominium. At every step of the way,

the Defendants have lied. They lied in their publicly filed condominium declaration. They lied

to potential purchasers by claiming (1) that they had created a condominium and (2) that they

had the right to sell subdivided portions of real property. As a result of these lies, families

purchased land for their homes. These families did not learn the truth – that their land could

not be developed – until after closing.

Travis County asks the Court to punish the Defendants for their fraudulent activities

by awarding civil penalties, rescinding the illegal sales, awarding damages to the victims, and

enjoining the Defendants from additional illegal sales.

Travis County v. Chaparral Woods, LLC, et al.


Plaintiff’s Original Petition Page 1
1. DISCOVERY CONTROL PLAN

1.1 Discovery in this case should be conducted under level 2 pursuant to Rule 190.3 of the

Texas Rules of Civil Procedure.

2. PARTIES

2.1 Plaintiff is Travis County, Texas, acting by and through its County Attorney, David

Escamilla, under the enforcement authority granted to it by Section 232.005 of the Texas Local

Government Code, and Section 27.015 of the Texas Business and Commerce Code. This suit

is brought pursuant to the request of the Travis County Commissioners Court, as authorized

by Subchapter A of Chapter 232 of the Texas Local Government Code, dealing with the

regulation of subdivisions, and pursuant to Section 27.015 of the Texas Business and

Commerce Code, dealing with fraud in real estate transactions.

2.2 Defendant Chaparral Woods, LLC, is a domestic limited liability company that may be

served through its registered agent, A.J. Shield, at 2206 Tower Drive, Austin, TX 78703 or

wherever he may be found.

2.3 Defendant A.J. Shield, also known as Alan Shield and Alan Shield, Jr., is an individual

that may be served with process at 1604 Cinnamon Path, Austin, Texas 78704; 2206 Tower

Drive, Austin, Texas 78703 or wherever he may be found.

2.4 Defendant Stacy Howard, a manager of Chaparral Woods, LLC, is an individual that

may be served at 11906 Brookwood Road, Austin, Texas; 2206 Tower Drive, Austin, Texas

78703; or wherever she may be found.

Travis County v. Chaparral Woods, LLC, et al.


Plaintiff’s Original Petition Page 2
2.5 Defendant Jeffery Palmer, a manager of Chaparral Woods LLC, is an individual that

may be served at 602 Timber Trail, Cedar Park, Texas; 2206 Tower Drive, Austin, Texas 78703

or wherever he may be found.

2.6 Defendant Uriel Castro, a Texas real estate agent, may be served at 4803 Misty Slope,

Austin, Texas 78744 or wherever he may be found.

2.7 Defendant Johnny Moron, is an individual that may be served with process at 108

Pebble Creek Lane, Buda, Texas 78610 or wherever he may be found.

2.8 Defendant Angela Skloss, a Texas real estate broker and supervisor of Castro, may be

served at 9709 Hansford, Austin, Texas 78753 or wherever she may be found.

3. JURISDICTION AND VENUE

3.1 This Court has jurisdiction over this matter pursuant to section 232.005 of the Texas

Local Government Code and sections 27.015 and 17.47(b) of the Texas Business and

Commerce Code.

3.2 Travis County seeks a monetary award within the jurisdictional limits of the court and

non-monetary relief.

3.3 Venue is proper in Travis County as it is the county in which all or a substantial part

of the events or omissions giving rise to Plaintiff’s claim occurred.1

4. APPLICABLE LAW

4.1 The Defendants’ misconduct spans two broad categories of substantive law. The first

category contains the requirements for creating and selling a legal subdivision of land, whether

                                                            
1
Tex. Civ. Prac. & Rem. Code § 15.002(a)(1).
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 3
as a typical subdivision or as a condominium. The second is the law of fraud and deceptive

trade practices.

A. Subdivision Laws

4.2 A subdivision of real property occurs when an owner divides the property into two or

more parts to lay out lots or streets.2

4.3 An owner that divides a tract of land located in unincorporated Travis County must

have a plat prepared.3

4.4 The plat must be filed and recorded with the Travis County Clerk.4

4.5 A plat cannot be filed or recorded unless it is approved by the Travis County

Commissioners Court.5

4.6 The Travis County Commissioners Court is authorized to establish requirements for

subdivisions.6

4.7 Travis County’s subdivision regulations can be found in County Code Chapter 482.

4.8 The County Attorney may file suit seeking injunctive relief to enjoin violations or

threatened violations of the subdivision requirements.7

                                                            
2
Tex. Local Gov’t Code § 232.001(a).
3
Tex. Local Gov’t Code § 232.001(a).
4
Tex. Local Gov’t Code § 232.001(d).
5
Tex. Prop. Code § 12.002(b).
6
Tex. Loc. Gov’t Code § 232.003.
7
Tex. Loc. Gov’t Code § 232.005(a)(1).
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 4
B. Condominiums

4.9 Condominiums are a form of real property with portions designated for separate

ownership or occupancy, and the remainder designated for common ownership or occupancy

solely by the owners of those portions.8

4.10 The Texas Uniform Condominium Act, found in Chapter 82 of the Property Code,

regulates the creation and transfer of condominiums.

4.11 A condominium is created “only by recording a declaration executed in the same

manner as a deed by all persons who have an interest in the real property that will be conveyed

to unit owners....”9

4.12 Condominiums are subject to Travis County’s subdivision requirements.10

4.13 The Travis County Code defines subdivisions to include “condominium regimes.”11

C. Sales of Subdivided Property

4.14 The relevant requirements for selling subdivided property generally – as well as

condominium units specifically – are discussed below.

1. Unapproved plats cannot be used to sell property.

4.15 A subdivider cannot use the subdivision’s description in a deed of conveyance, a

contract for a deed, or a contract of sale or other executory contract to convey that is delivered

to a purchaser unless the plat is approved and filed with the Travis County Clerk.12

                                                            
8
Tex. Prop. Code § 82.003(a)(8).
9
Tex. Prop. Code § 82.051(a).
10
Tex. Prop. Code § 82.006.
11
Travis County Code 464.031(86).
12
Tex. Prop. Code §12.002(c).
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 5
4.16 If a subdivider uses an unapproved subdivision description as part of a sale, such an

act is prima facie evidence of an attempt to defraud.13

2. Condominium sales requirements.

4.17 Before offering any condominium unit for sale, the declarant “shall prepare a

condominium information statement.”14

4.18 The condominium information statement must contain, among other things, “any

conditions relating to or limitations upon the exercise of development rights.”15

4.19 The declarant “shall promptly amend the condominium information statement to

reflect a material and substantial change in its contents. If the change may adversely affect a

prospective purchaser who has received a condominium information statement, the declarant

shall furnish a copy of the amendment to the prospective purchaser before closing.”16

4.20 The person preparing the condominium information statement is liable for any false

or misleading statements therein.17

D. Fraud and Deceptive Trade Practices

4.21 Fraud in a real estate transaction is a false representation of a material fact that is (1)

made to a person for the purpose of inducing that person to enter into a contract; and (2)

relied on by that person in entering into that contract.18

4.22 Such fraud is a deceptive trade practice that can be prosecuted by the county attorney.19

                                                            
13
Tex. Prop. Code § 12.002(f).
14
Tex. Prop. Code § 82.152(a).
15
Tex. Prop. Code § 82.153(a)(4).
16
Tex. Prop. Code § 82.153(c).
17
Tex. Prop. Code § 82.152(d).
18
Tex. Bus. & Comm. Code § 27.01.
19
Tex. Bus. & Comm. Code § 27.015.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 6
4.23 The county attorney may seek (1) injunctive relief; (2) civil penalties of up to $20,000

per violation; and (3) a judgment to compensate buyers for actual damages or to restore money

or property which may have been acquired by means of any unlawful act or practice.20

5. BACKGROUND

5.1 Two years ago, Chaparral Woods, LLC, was formed by Shield, Howard, and Palmer.

Since its formation, Chaparral Woods, LLC, its members, and its associates have illegally

subdivided and sold property to unsuspecting consumers. This section provides an overview

of their actions during this time.

A. Chaparral Woods, LLC, is formed and acquires property near Leander.

5.2 Chaparral Woods, LLC, was formed on March 17, 2017.21 The managers – and their

interest in the company – are as follows: A.J. Shield (50%); Stacy Howard (25%); and Jeffery

Palmer (25%).

5.3 Chaparral Woods, LLC, purchased Lot 1 of the Roundmountain Oaks subdivision on

March 30, 2017, for $175,000.22 This lot is approximately 10.018 acres and is located at 14811

Chaparral Drive. This lot will be illegally subdivided and sold as Units 1-9 of the Chaparral

Woods Condominiums.

5.4 On March 30, 2017, Chaparral Woods, LLC, executed a deed of trust. The debtors are

Chaparral Woods, LLC, Alan J. Shield, Stacy Howard, and Jeffrey Palmer. The lender is Back

Door Investments, LLC. The $175,000 loan is secured by 10.018 acres, Tract 1 in the Round

Mountain Oaks Subdivision. The trustee is Daniel R. Castro.

                                                            
20
Tex. Bus. & Comm. Code § 17.47.
21
Ex. A.
22
Ex. B.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 7
5.5 The next day, March 31, 2017, Chaparral Woods, LLC, applied for water service to

both 14811 and 14901 Chaparral Drive from Aqua Texas. The water was requested to serve

“18 Single Family Houses 3 Bedroom 2 baths.” At the time of this application, Chaparral

Woods, LLC, did not own the property at 14901 Chaparral Drive.

B. Chaparral Woods, LLC, begins selling property.

5.6 On April 13, 2017, Manuel Garcia Navarro and Veronica Castro-Nieto purchase Units

2 and 3 for $117,000.23 Alan Shield signed the deed on behalf of Chaparral Woods, LLC. Uriel

Castro is the sales agent, license #616735.

C. Chaparral Woods, LLC, completes property acquisition and attempts to form


a condominium.

5.7 Chaparral Woods, LLC, purchased Lot 2 of the Roundmountain Oaks subdivision on

April 14, 2017, for $155,000.24 This lot is approximately 10.017 acres and is located at 14901

Chaparral Drive. This lot will be illegally subdivided and sold as Units 10-18 of the Chaparral

Woods Condominiums. Collectively, Lot 1 and 2 of the Roundmountain Oaks subdivision

will be referred to as the Property.

5.8 On July 7, 2017, Shield applied for a residential driveway permit from Travis County.

5.9 On July 25, 2017, Chaparral Woods, LLC, filed a condominium declaration (the

Declaration) in the Travis County real property records.25 The Declaration attempts to create

Chaparral Woods Condominiums. It identifies 18 units with two common elements – the

driveway and the utility infrastructure.

                                                            
23
Ex. C.
24
Ex. D.
25
Ex. E.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 8
5.10 The Declaration’s first recital states that “Declarant is the owner of all the real property,

including the land…located at 14811 and 14901 Chaparral Drive….” This is a lie – two units

had already been sold.26

5.11 The law is clear, a condominium is created “only by recording a declaration executed in

the same manner as a deed by all persons who have an interest in the real property that will be conveyed

to unit owners....”27 Because the owners of Units 2 and 3 did not execute the Declaration, it is

insufficient as a matter of law and no condominium was created.

5.12 The Declaration was signed by Alan Shield and Stacy Howard on July 24, 2017. At that

time Shield knew that the Declaration’s first recital was false, as he had signed the warranty

deed selling Units 2 and 3 on April 13, 2017.

D. Sales of illegally subdivided property continue.

5.13 Three additional units were sold on August 22, 2017:

 Maribel Jaimes Castelan and Yaziel Mendez purchased Unit 4 for $60,500.28

Alan Shield signed the deed on behalf of Chaparral Woods, LLC.

 Karina and Diego Jaimes-Jaimes purchased Unit 5 for $60,500.29 Alan Shield

signed the deed on behalf of Chaparral Woods, LLC.

 Reyna Jaimes Castelan, Christian Jaimes, and Emileano D. Landers

purchased Unit 6 for $61,500.30 Alan Shield signed the deed on behalf of

Chaparral Woods, LLC.

                                                            
26
Ex. C.
27
Tex. Prop. Code § 82.051(a)(emphasis added).
28
Ex. F.
29
Ex. G.
30
Ex. H.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 9
5.14 The warranty deed provided for each of these three sales contained an exhibit

describing the property. Those exhibits all contained field note descriptions of units within

the Chaparral Woods Condominiums. These descriptions of an unapproved subdivision in a

deed of conveyance are prohibited by the Property Code.31

E. Travis County notifies Castro and Shield of their illegal activities.

5.15 On August 29, 2017, Travis County emailed Castro and Shield about their

developments, including the property on Chaparral Drive. They were told that a “project with

three or more dwelling units MUST have a site plan.”

5.16 In that same email, Travis County concludes by saying “I also understand that you have

already sold or are going to sell a portion of 7709 Dee Gabriel Collins. That is an illegal

subdivision of land, which carries with it a class B misdemeanor charge.”

5.17 On September 12, 2017, Travis County investigated the Property and left a stop work

order on site. That notice stated “No 1 ac lots can be legally sold without a subdivision that

has been approved by Travis County.”

F. The illegal sales continue.

5.18 Two additional units were sold on September 14, 2017:

 Jose Moctezuma Martinez purchased Unit 1 for $59,900.32 Alan Shield

signed the deed on behalf of Chaparral Woods, LLC.

                                                            
31
Tex. Prop. Code § 12.002(c).
32
Ex. I.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 10
 Esmeralda Vinnalnueva Becerra and Marisela Becerra-Villanueva purchased

Unit 7 for $62,400.33 Alan Shield signed the deed on behalf of Chaparral

Woods, LLC.

5.19 Francisco Marcial Murillo Tabora and Suany M. Murillo Tabora purchased Unit 8 on

September 18, 2017, for $60,400.34 Alan Shield signed the deed on behalf of Chaparral Woods,

LLC.

5.20 The deeds for Units 1, 7, and 8 each contain an exhibit describing the units within the

Chaparral Woods Condominiums. These descriptions of an unapproved subdivision in a deed

of conveyance are prohibited by the Property Code.35

G. Travis County issues a second stop work order.

5.21 On September 19, 2017, Travis County investigated the Property and documented

additional violations. A stop work order/notice of violation was sent to Shield via mail and

email. Shield was directed to “Immediately cease construction. File subdivision/condo with

Travis County. Obtain driveway and development permits.”

H. The illegal sales continue.

5.22 Two additional units were sold on October 5, 2017:

 Raymond and Julie Pletcher purchased Unit 11 for $57,400.36 Alan Shield

signed the deed on behalf of Chaparral Woods, LLC.

                                                            
33
Ex. J.
34
Ex. K.
35
Tex. Prop. Code § 12.002(c).
36
Ex. L.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 11
 Alejandra Guadalupe Hernandez purchased Unit 12 for $57,900.37 Alan

Shield signed the deed on behalf of Chaparral Woods, LLC.

5.23 The deeds for Units 11 and 12 each contain an exhibit describing the units within the

Chaparral Woods Condominiums. These descriptions of an unapproved subdivision in a deed

of conveyance are prohibited by the Property Code.38

I. Travis County informs Castro and Pena that the Unit owners will not get
permits to develop their lots.

5.24 On October 12, 2017, Travis County emailed Castro and Kerri Pena (Chaparral

Woods, LLC’s engineer) the following:

Travis County requires a site plan for multiple units (more than
2) on a tract – this is considered to be multi-family/commercial.
If you are proposing a condo regime, you need to submit a site
plan to Travis County showing the layout/pads for all the
buildings, parking, drives, how detention will be address [sic],
utility connection, etc. Travis County considers a condo regime
an act of subdividing and the site plan and condo agreement will
go to Commissioner’s Court for approval. A site plan must also
be filed for a ‘mobile home/tiny home park’ addressing the same
issues…You can’t just file for a ‘driveway permit’ for multiple
units – the new owners will be denied permits for their ‘houses’
unless you submit a site plan showing the multiple units. If you
are proposing to sell the tracts, you will need to submit a
subdivision application. All lots must have frontage to the street
and can NOT be off an access easement.

5.25 The Defendants’ engineer and real estate broker were both put on explicit notice that,

in the absence of a site plan, the new owners would be denied development permits.

                                                            
37
Ex. M.
38
Tex. Prop. Code § 12.002(c).
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 12
J. The illegal sales continue.

5.26 Vidal Leal Juarez purchased Unit 14 on October 17, 2017, for $59,900.39 Alan Shield

signed the deed on behalf of Chaparral Woods, LLC.

5.27 Katia Kassandra Leal Sanchez, Librado Leal Juarez, Joshua Michael John Bristol, and

Leonila Sanchez Silva purchased Unit 13 on October 19, 2017, for $59,900.40 Alan Shield

signed the deed on behalf of Chaparral Woods, LLC.

5.28 Librado Leal, Yessica Martinez, and Leocadio Sanchez Delgado purchased Unit 10 on

October 20, 2017, for $59,900.41 Alan Shield signed the deed on behalf of Chaparral Woods,

LLC.

5.29 The deeds for Units 10, 13 and 14 each contain an exhibit describing the units within

the Chaparral Woods Condominiums. These descriptions of an unapproved subdivision in a

deed of conveyance are prohibited by the Property Code.42

K. Travis County issues additional notices of violation and stop work orders.

5.30 On October 23, 2017, Travis County mailed another notice of violation/stop work

order. This notice of violation directed the owner to begin the subdivision process and to

remove the illegally placed mobile homes.

5.31 On October 24, 2017, Travis County gave two notices of violation to Unit owners for

failure to have development permits.

                                                            
39
Ex. N.
40
Ex. O.
41
Ex. P.
42
Tex. Prop. Code § 12.002(c).
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 13
L. After illegally selling 13 Units, Chaparral Woods, LLC, filed its first site plan.

5.32 On December 29, 2017, Chaparral Woods, LLC, filed its first site plan with Travis

County.

M. Shield and Moron’s misrepresentations continue.

5.33 On January 17, 2018, Shield wrote the Pedersen’s realtor (with copy to Castro) that

“We are providing 1 Acre Site condos. You will have legal Title and Deed to a 1 acre piece of

property. Just the same a [sic] sub divided lot. A condo lot has all the same rights as a

subdivision lot, but you get to share in the cost of maintaining your driveway with your

neighbors.”

5.34 Eight days later, on January 25, Johnny Moron – Chaparral Woods’ Sales Director –

emailed current and future landowners about making “this subdivision your home.”

N. The illegal sales continue.

5.35 Two additional units were sold on February 27, 2018:

 Jennifer and Leland Bickley purchased Unit 9 for $58,410.43 Alan Shield

signed the deed on behalf of Chaparral Woods, LLC.

 Richard and Mindy Pedersen purchased Unit 17 for $60,000.44 Alan Shield

signed the deed on behalf of Chaparral Woods, LLC. Uriel Castro was the

listing associate, and he was supervised by Angela Skloss (license # 527481).

                                                            
43
Ex. Q.
44
Ex. R.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 14
5.36 The deeds for Units 9 and 17 each contain an exhibit describing the units within the

Chaparral Woods Condominiums. These descriptions of an unapproved subdivision in a deed

of conveyance are prohibited by the Property Code.45

5.37 In addition, Shield clearly misrepresented what he was offering the Bickleys in a

February 11, 2018 email – “We provide the surveyed legal 1 acre lot to you….”

O. Attempts at illegal sales continue.

5.38 It is unknown whether Units 15, 16, and 18 have been sold. As of the date of filing this

Original Petition, no deeds for these units have been filed in the Travis County real property

records.

5.39 On April 16, 2018, a Craigslist advertisement appeared offering two lots for sale in a

“new development in Leander.” The contact phone number provided – 512-785-9464 –

belongs to Stacy Howard.

P. Both Chaparral Woods, LLC, and Shield profit from the illegal and fraudulent
sales.

5.40 Collectively, at least 15 Units were illegally sold for a total of $895,610.

5.41 In addition, individual defendants were personally enriched by this fraud. For example,

Shield was paid a $1,800 sales commission after deceiving the Pedersens into purchasing Unit

17.

                                                            
45
Tex. Prop. Code § 12.002(c).
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 15
Q. The victims of Defendants’ fraud own property that cannot be legally
developed.

5.42 Travis County does not issue development permits to illegally subdivided property.

Accordingly, the Chaparral Woods owners will not be able to get permits to place homes on

their property or install septic systems.

5.43 As of the date this Original Petition is filed, Travis County has not approved a

subdivision of Lots 1 and 2 of the Roundmountain Oaks subdivision.

5.44 Despite this fact, Howard has emailed at least one consumer an “Approved Plat map.”

6. FIRST CLAIM – FRAUD IN A REAL ESTATE TRANSACTION

6.1 Fraud in a real estate transaction is a false representation of a material fact that is (1)

made to a person for the purpose of inducing that person to enter into a contract; and (2)

relied on by that person in entering into that contract.46

6.2 As set forth above, numerous false representations of material fact were used to induce

consumers into buying Units of the purported Chaparral Woods Condominiums.

A. The Defendants falsely represented that a condominium had been created.

6.3 The Defendants false representations begin at the most basic level – they offered

something for sale that does not exist. To date, a condominium has not been created at

Chaparral Woods.

6.4 The Defendants attempted to create a condominium, but that attempt is legally

insufficient. Chaparral Woods, LLC, did not file a condominium declaration when it owned

all of the property. Instead, it chose to sell two units first.

                                                            
46
Tex. Bus. & Comm. Code §27.01.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 16
6.5 Both Shield and Chaparral Woods, LLC, knew that the Declaration’s first recital –

“Declarant is the owner of all the real property, including the land…located at 14811 and

14901 Chaparral Drive” – was a lie. Two units had already been sold.47

6.6 The Defendants continued making this misrepresentation every time they provided the

Declaration to a potential purchaser. In addition, any reference to the Property being a

condominium was a misrepresentation.

B. The Defendants used unapproved plats and plat descriptions to sell the units.

6.7 Each of the 15 Unit sales described above contained a description of an unapproved

plat.

6.8 The property description attached to the deeds referred to a particular unit of the

Chaparral Woods Condominiums.

6.9 These descriptions conform with the unapproved plat attached as Exhibit B-2 to the

Declaration.

6.10 On information and belief, Exhibit B-2 and similar unapproved plats were used by

Chaparral Woods, LLC; Shield; Palmer; Howard; Castro; Moron and Skloss to market and sell

the Units.

C. The Defendants provided inaccurate condominium information statements.

6.11 On information and belief, Chaparral Woods, LLC, Shield, Palmer, and Howard

provided inaccurate and misleading condominium information statements.

6.12 These condominium information statements made the material misrepresentation that

there was no lien, lease, or encumbrance on or affecting title to the condominium.

                                                            
47
See ¶¶ 5.6, 5.9-5.12.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 17
6.13 This statement is false – the underlying property was subject to multiple liens.

6.14 Chaparral Woods, LLC, Shield, Palmer, and Howard all knew of these liens and that

the condominium information statement contained a lie.

6.15 Shield, Howard, and Palmer had all personally guaranteed two of the liens. But if the

loans fell into default, “Lender agrees to pursue his foreclosure remedies under the Deed of

Trust before pursuing any one of the Debtors individually.”

6.16 In other words, Shield, Howard, and Palmer agreed to be responsible for any remaining

balance after the entirety of the Property had been foreclosed upon and sold.

6.17 There is no doubt that these three individuals, and their LLC, all knew that the Property

was subject to liens and encumbrances. Their statements to the contrary are false, misleading,

and material.

D. Travis County is entitled to civil penalties, injunctive relief, and recovery of


damages to the consumers.

6.18 The Defendants’ false statements are violations of the Business and Commerce Code.

These violations are also deceptive trade practices.

6.19 Travis County has a cause of action to prosecute these deceptive trade practices.48

6.20 For these violations, Travis County asks the Court to award (1) injunctive relief; (2)

civil penalties of $20,000 per violation per Defendant; and (3) compensation for actual

damages to the buyers and restoration of any money or property which was acquired by means

of an unlawful act.49

                                                            
48
Tex. Bus. & Comm. Code § 27.015.
49
Tex. Bus & Comm. Code § 17.47.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 18
7. SECOND CLAIM – INJUNCTIVE RELIEF

7.1 Travis County asks the Court to issue a temporary restraining order enjoining the

Defendants from subdividing Lots 1 and 2 of the Roundmountain Oaks subdivision into

smaller lots and selling them or offering them for sale until such time as the Travis County

Commissioners Court has approved the re-platting and subdivision of the Property.

7.2 Travis County asks that this temporary restraining order then become a temporary

injunction and then, after trial, a permanent injunction.

7.3 Travis County is exempt from filing a bond for a temporary restraining order or

temporary injunction.50

REQUEST FOR DISCLOSURE

Travis County requests that Chaparral Woods, LLC; Shield; Howard; Palmer; Castro;

Moron and Skloss each disclose, within 53 days, the information and materials described by

Texas Rule of Civil Procedure 194.2.

PRAYER

Travis County requests:

1. the Court grant judgment for appropriate civil penalties against the Defendants

including post-judgment interest;

2. the Court issue temporary and permanent injunctions against the Defendants

for the injunctive relief described above;

                                                            
50
Tex. Civ. Prac. & Rem. Code § 6.001.
Travis County v. Chaparral Woods, LLC, et al.
Plaintiff’s Original Petition Page 19
3. the Court order the Defendants to restore all money or property acquired by

means of unlawful acts or, alternatively, to compensate identifiable victims for

actual damages;

4. the Court rescind all agreements entered into by and between the Defendants

and the consumers; and

5. for such other and further relief, at law and in equity, to which the County

may show itself justly entitled.

Respectfully submitted,

DAVID A. ESCAMILLA
TRAVIS COUNTY ATTORNEY
P.O. Box 1748
Austin, Texas 78767
512-854-9513
512-854-4808 (fax)

By:/s/ Ryan P. Fite


Ryan P. Fite
Assistant County Attorney
State Bar No. 24045873
ryan.fite@co.travis.tx.us

Tim Labadie
Assistant County Attorney
State Bar No. 11784853

ATTORNEYS FOR TRAVIS COUNTY

Travis County v. Chaparral Woods, LLC, et al.


Plaintiff’s Original Petition Page 20
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