Former Disney Star Brock Pierce Accuses Family Friend of Stealing $18.3 Million Puerto Rico Resort

Brock Pierce’s $80 Million Lawsuit Against Alleged Resort Heist

Former Disney child actor turned crypto-billionaire, Brock Pierce, has initiated a legal battle against family friend Joseph Lipsey III, alleging the wrongful acquisition of a shuttered Puerto Rican resort.

Pierce claims Lipsey unlawfully seized the property, once the site of a W Hotel, after Pierce defaulted on a $10 million loan that Lipsey had provided for acquiring the remaining stake in the beach-front property.

Piercing Allegations of Fabricated Default

Brock Pierce, known for his role as a young Gordon Bombay in The Mighty Ducks, asserts that Joseph Lipsey III ‘fabricated a fictitious default’ to orchestrate the property’s outright theft.

Pierce is seeking a reversal of the property transfer and $80 million in damages, emphasizing the emotional betrayal he feels over the loss.

The Property Purchase and Alleged Loan Default

In 2021, Pierce invested $18.3 million to secure an 80 percent stake in the Vieques resort, the former location of a W Hotel that closed following Hurricane Maria in 2017.

Lipsey claims that Pierce defaulted on the $10 million loan, leading to his assertion of control over the property, a move vigorously contested by Pierce.

Legal Maneuvers and Alleged Missteps

The legal dispute revolves around the loan agreement, which purportedly granted Lipsey the right to manage the holding company controlling the hotel in case of default.

Pierce contends that Lipsey failed to follow proper legal procedures in transferring the hotel to VRRRF, a company where Lipsey serves as CEO.

Pierce highlights Lipsey’s alleged failure to adhere to legal protocols, raising questions about the legitimacy of the property transfer.

Plans for Resort Reopening Amid Legal Battle

Expressing determination, Brock Pierce outlines plans to reopen the resort under a new hotel banner by 2025 if he successfully regains control of the property.

Despite ongoing renovation efforts, Pierce underscores the potential repercussions of Lipsey’s actions, describing them as potentially fatal to the project.

Pierce’s Puerto Rico Move and Cryptocurrency Ties

Having relocated to Puerto Rico in 2017, Brock Pierce aimed to transform the island into a crypto hub. Known for inventing the controversial Tether coin in 2014, Pierce clarifies that he disassociated from the company in 2015.

Since his move, Pierce has reportedly invested in multiple properties, totaling around $35 million, in Puerto Rico.

Complex Relationship with Lipsey and Shared Ventures

The relationship between Brock Pierce and Joseph Lipsey III involves personal connections, business ventures, and shared endeavors. Lipsey, aged 60, moved to Puerto Rico in 2021 with his family after facing legal charges.

The intricate ties between the two families extend to shared executive producer roles in an upcoming Christmas film, highlighting the complexities of their associations.