Baldwin could not be reached for comment and David Paige, an attorney for the developer, declined to talk about the lawsuit.

According to court records, however, Baldwin allegedly informed Rancho Manana Ventures in August 2002 that he had secured two investors to purchase fractional interests in the casitas for $3.8 million. Two months later, purchase agreements purportedly from the two buyers were sent to the developer stating that the closing was scheduled for the next month. The deals didn't close in November as scheduled, however, and by December, Rancho Manana was growing more concerned.

To alleviate those fears, Coldwell Banker allegedly provided the developer with a copy of a $700,000 check from one purported buyer and a receipt for $3.1 million from another, the lawsuit states.

By Jan. 6, 2003 when the transactions still hadn't closed, Rancho Manana insisted on seeing evidence that the closings would occur. In response to that demand, Baldwin allegedly produced a copy of a $3.1-million check signed by Jilbert from Coldwell Banker to the escrow agent. But when the escrow package arrived at the title company, there was no check inside. Baldwin allegedly told the developer it was a clerical error and offered to resend the check to the title company.

But by this time, Rancho Manana was growing increasingly suspicious and demanded that it be provided with the original check to send to the title company. One hour before meeting to exchange the check, Baldwin allegedly phoned the developer to say that both deals had been fabricated and that documents verifying the transactions had been forged, including the check, according to the lawsuit.