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Re: Manhattan Club Lawsuit (by Fibo N.):

UPDATES ON NYAG INVESTIGATION On August, 19, NYAG / SERWAT FAROOQ have presented and published 30 documents, exhibits and memorandums, Docs# 371 thru 411. Great and enjoyable reading! Recommend to all owners.

The last doc is MEMORANDUM OF LAW IN OPPOSITION. The MC Motion 005 to release funds for their legal payments was denied. In that Memorandum there is a referral to "7 M for restitution" that the owners are talking about. Meantime, It has been addressed to the owners of flexible interests in metropolitan suites only. In regards to the owners of other flexible interests "NYAG has a strong interest in maintaining the existing injunctions" and The MC may be liable for a large award of restitution which is under progress.

Below is the extract:

"Respondent T. Park is liable for overselling the ratio of “fixed” to “flexible” interests in one room type. The 8th Restated Plan represented that they would not sell more than 25% of ownership interests as “fixed” interests in any room type. 4th Farooq Aff., Ex. GG (excerpts of 8th Restated Plan). By 2014, with respect to the metropolitan suites, Respondent T. Park sold 50% of interests as “fixed” interests to a timeshare company known as Bluegreen. 4th Farooq Aff., Ex. HH (list of Bluegreen’s ownership interests). Those sales greatly reduced the amount of inventory available to the owners of “flexible” interests. If the Court requires T. Park to issue full refunds to the 983 buyers of 509.75 annual “flexible” interests in this room type, assuming that each annual interest was sold at a steep discount from the disclosed offering plan price (i.e., $15,000 per annual interest instead of the price disclosed in the 8th Restated Plan), Respondent T. Park would be responsible for a restitution award totaling over $ 7 million. 4th Farooq Aff., Ex. II (list of owners of flexible interests in metropolitan suites). Moreover, Urban may be liable for a large award of restitution. Its rental of rooms to the general public more than 48 hours in advance of a check-in date violated the 7th Restated Plan, and deprived thousands of timeshare owners of full access to the Manhattan Club rooms, for several years. 4th Farooq Aff., Exs. Y-Z. Thus, the NYAG has a strong interest in maintaining the existing injunctions, especially because the value of T. Park’s and O. Park’s other assets, their ownership interests in the Manhattan Club, is not known at this time, and because they are enjoined from selling such interests." https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=ovMjFpy6NexIU4/QSkN3Gg==&system=prod