ANNA MARIA – The city is suing Noslens Inc. and its controlling officer, Steven Nelson, alleging that he fraudulently claimed ownership of the city-owned Luana Isles canals and yacht basin.
On Oct. 2, City Attorney Becky Vose filed a lawsuit in the Twelfth Judicial Circuit Court in Manatee County naming the city as plaintiff and Noslens Inc. and Nelson as defendants. The complaint notes that Noslens Inc. is a Florida corporation with a principal address of 305 Spring Ave. in Anna Maria.
The Manatee County Property Appraiser’s Office lists Noslens Inc. as the owner of 10.9 acres of residential waterways that abut waterfront homes located along Iris Street, Holly Road, Poinsettia Road, Gladiolus Street, Tern Drive, Gull Drive, Pelican Drive, Jacaranda Road, Hammock Road and Hammock Circle, ownership disputed in the lawsuit.
“Defendants’ filing of a fraudulent quitclaim deed has created a genuine and justiciable controversy concerning ownership and control of the Luana Isles canals and yacht basin,” the city’s lawsuit alleges.
“Title companies have questioned the city’s ownership, closings have been delayed or conditioned upon improper and fraudulent releases and property owners have been subjected to demands for illegal and extortionate payments. A present, practical need exists for judicial declaration confirming that the canals and yacht basin are and always have been dedicated to the public, owned in trust by the city and not subject to private ownership by defendants.”
The complaint states that in 1962, a Florida corporation named West Coast Properties of Clearwater Inc. – referred to in the complaint as “Original West Coast Properties” – dedicated the plat of Luana Isles and that plat forever dedicated the canals and yacht basin collectively known as the “Luana Isles Canals” to the public, as recorded with the county.
The complaint claims that the “Original West Coast Properties” corporation dissolved in 1969 and that in December 2021, Nelson created a new Florida corporation under the same name, “West Coast Properties of Clearwater Inc.” and referred to in the complaint as “Fraudulent West Coast Properties.”
The complaint notes that Nelson created Noslens Inc. in January 2005. According to the Florida Division of Corporations, Noslens Inc. filed for dissolution on Sept. 26 and is now listed as inactive.
Initial discovery
Attorney Garret Barnes made the city aware of the issue after discovering the quitclaim deed when assisting with the sale of an Anna Maria home located along the deed-impacted waterway.
On Aug. 1, Barnes sent Manatee County Property Appraiser Charles Hackney a letter pertaining to Nelson’s quitclaim deed actions.
“This letter is to inform you of a wild deed that affects approximately 94 or 95 waterfront homes and lots on Anna Maria that I consider a wild, and possibly illegal, deed (that) affects the value of the properties if not corrected,” Barnes’ letter said.
“Enclosed please find your printout of a Parcel ID No. 7070615009 which is purportedly owned by Noslens, Inc. The picture shows that the parcel is a body of water or canals on Anna Maria, Florida. I recently did a closing on a related waterfront property and discovered this. Enclosed are the two plats for Luana Isles that you will see had dedicated the canal and yacht basin to the public forever,” Barnes’ letter said.
Barnes’ letter details the “original” and “fraudulent” West Coast Properties corporations and the incorporation of Noslen’s Inc. – information later included in the city’s lawsuit complaint.
“This is a new and ‘wild’ deed that basically conveys the canal system from one of his companies to another one of his companies to try and create some type of ownership interest. West Coast Properties of Clearwater, Inc. simply did not own this property to convey and it seems to me like he is trying to establish some type of ownership of all the canals which includes areas outside of the platted lots including the canals,” Barnes stated in his letter.
On Sept. 4, Barnes sent a letter to attorney Justin Foster at the 12th Judicial Circuit State Attorney’s Office.
“Enclosed please find a letter to the Manatee County Property Appraiser’s office that shows an attempt by a person/company trying to steal real estate/property rights from individuals and the state/county in Manatee County,” Barnes stated in his letter to Foster.
“I am a real estate attorney in Manatee County and came across this ‘scheme’ in closing a piece of property that is affected by this scenario and my client was forced to pay $5,000 to ‘clear’ title to this person. Please call me at your earliest convenience to discuss this horrible situation that affects over 100 tax paying citizens in Manatee County,” Barnes wrote.
When contacted on Oct. 6, Barnes said he has not received a response from the state attorney’s office and he’s not aware of Nelson’s quitclaim deed activities being reported to any other law enforcement agency.
Lawsuit allegations
“On Jan. 4, 2022, the ‘Fraudulent West Coast Properties’ purported to convey the Luana Isles Canals to Noslens Inc. via quitclaim deed, even though it had no ownership interest in the property,” the city’s lawsuit contends. “The quitclaim deed reflecting this fraudulent conveyance was recorded in the public records of Manatee County, thereby clouding title to the public waterways.”
“Defendants thereafter engaged in a scheme to sell interests in the fraudulently titled waterways to nearby property owners, falsely demanding such property owners pay for a quitclaim deed to such interest as necessary to protect their own property’s title and creating a burden upon property sales and closings. Defendants’ actions are wrongful, fraudulent and contrary to law,” the complaint alleges.
“Section 817.535, Florida Statutes, prohibits any person from filing or directing another to file, with the intent to defraud or harass, any instrument in the official records which affects or purports to affect an interest in real property, knowing or having reason to know that such instrument is false, fictitious or fraudulent,” according to the complaint.
“Defendants knowingly created a sham corporation and executed a false deed with the intent to deceive property owners and the city and extract fraudulent payments. Defendants filed or caused the filing of the false instrument with the intent to defraud and harass the city of Anna Maria and its residents, to cloud title to public property and to extort money from affected waterfront property owners through demands for releases and payments,” the complaint alleges.
“As a direct and proximate result of defendants’ fraudulent filing, the city of Anna Maria has sustained injury, including but not limited to clouds on title to public property held in trust for the benefit of the public; impairment of the city’s ability to exercise full dominion and control over its public waterways; the necessity of legal action to quiet title, protect the public’s rights and prevent continuing fraud; harm to affected property owners whose property sales and closings have been obstructed or burdened by defendants’ false claims; and damage to the reputation of the city of Anna Maria, undermining public confidence in its ability to safeguard community assets and interests,” the complaint alleges.
“Defendants are engaged in an illegal and extortionate scheme predicated upon a ‘wild deed’ which violates plaintiff’s rights pursuant to a clear dedication of the Luana Isles Canals to the public. Unless enjoined, defendants will continue to assert ownership over public waterways and extort payments from property owners and property purchasers, resulting in ongoing uncertainty, blocked and delayed transactions, interference with public rights, and damages to the reputation of the city of Anna Maria, Anna Maria Island, Manatee County and the State of Florida, all of such injuries not being compensable by money damages alone,” the complaint alleges.
“The city requests the court enter judgment in the city’s favor and against defendants and declare the Jan. 4, 2022, quitclaim deed fraudulent, null and void; enjoin the defendants from recording or attempting to record any further false, fictitious or fraudulent instruments affecting property owned by the city or dedicated to the public; award the city its actual damages, including reputational damages, together with prejudgment interest; award the city its reasonable attorney fees and court costs; award punitive damages sufficient to punish defendants and deter similar conduct and grant such other and further relief as the court deems just and proper,” according to the complaint.
In closing, the complaint states that “Plaintiff requests judgment requiring defendants to provide a full and complete accounting of all money received from property owners in connection with their fraudulent claims; to disgorge all such funds, to reimburse affected property owners for their losses and expenses; to pay plaintiff’s attorney’s fees, costs and such other relief as the court may deem just and proper.”
