Professional Documents
Culture Documents
Velva L. Price
District Clerk
Travis County
000772
Cause No. D-1-GN-19-_______ D-1-GN-19-000772
Daniel Smith
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
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
1.1 Discovery in this case should be conducted under level 2 pursuant to Rule 190.3 of the
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
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
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
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
may be served at 602 Timber Trail, Cedar Park, Texas; 2206 Tower Drive, Austin, Texas 78703
2.6 Defendant Uriel Castro, a Texas real estate agent, may be served at 4803 Misty Slope,
2.7 Defendant Johnny Moron, is an individual that may be served with process at 108
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.
3.1 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
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
4.3 An owner that divides a tract of land located in unincorporated Travis County must
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
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
4.10 The Texas Uniform Condominium Act, found in Chapter 82 of the Property Code,
manner as a deed by all persons who have an interest in the real property that will be conveyed
to unit owners....”9
4.13 The Travis County Code defines subdivisions to include “condominium regimes.”11
4.14 The relevant requirements for selling subdivided property generally – as well as
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
4.17 Before offering any condominium unit for sale, the declarant “shall prepare a
4.18 The condominium information statement must contain, among other things, “any
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
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)
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
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
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.
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
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
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
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
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
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
Maribel Jaimes Castelan and Yaziel Mendez purchased Unit 4 for $60,500.28
Karina and Diego Jaimes-Jaimes purchased Unit 5 for $60,500.29 Alan Shield
purchased Unit 6 for $61,500.30 Alan Shield signed the deed on behalf of
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
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
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
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
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
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
Raymond and Julie Pletcher purchased Unit 11 for $57,400.36 Alan Shield
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
5.23 The deeds for Units 11 and 12 each contain an exhibit describing the units within the
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
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
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
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
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
5.31 On October 24, 2017, Travis County gave two notices of violation to Unit owners for
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.
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.”
Jennifer and Leland Bickley purchased Unit 9 for $58,410.43 Alan Shield
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
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
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….”
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
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
5.43 As of the date this Original Petition is filed, Travis County has not approved a
5.44 Despite this fact, Howard has emailed at least one consumer an “Approved Plat map.”
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)
6.2 As set forth above, numerous false representations of material fact were used to induce
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
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
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
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.
6.11 On information and belief, Chaparral Woods, LLC, Shield, Palmer, and Howard
6.12 These condominium information statements made the material misrepresentation that
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
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
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.
6.18 The Defendants’ false statements are violations of the Business and Commerce Code.
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
7.3 Travis County is exempt from filing a bond for a temporary restraining order or
temporary injunction.50
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
PRAYER
1. the Court grant judgment for appropriate civil penalties against the Defendants
2. the Court issue temporary and permanent injunctions against the Defendants
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
actual damages;
4. the Court rescind all agreements entered into by and between the Defendants
5. for such other and further relief, at law and in equity, to which the County
Respectfully submitted,
DAVID A. ESCAMILLA
TRAVIS COUNTY ATTORNEY
P.O. Box 1748
Austin, Texas 78767
512-854-9513
512-854-4808 (fax)
Tim Labadie
Assistant County Attorney
State Bar No. 11784853
Q
Exhibit