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Re: Manhattan Club Lawsuit

What is important to note is that the NYAG at least in the court hearing I attended in March is also now going after the 20% off the top payment from all revenues the Eichners have been receiving for years. In response to owners not paying their maintenance fees TMC is raising maintenance fees to cover the shortfall. TMC is not touching the 6.5 million dollars in "management fees" the Eichners receive through their shell company, Urban Management. The Eichners receive their 6.5 million dollars no matter what happens with maintenance fee payments. Urban Management supposedly manages the managers who are on TMC payroll who actually run the Manhattan Club. Corrine Smith has been saying this for years. The NYAG at the March hearing asked this 6.5 million dollar management fee be held in escrow. The NYAG did not realize that Urban was a shell company at the start of this investigation. Urban Management had NO employees. The head of Urban Management, Scott Lager, was paid out of the Manhattan Club budget. Since this discovery from the NYAG's investigation the Eichners have now added some employees to Urban Management from other Eichner companies. Irene Smalls