Manhattan Club Lawsuit

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Manhattan Club Lawsuit (by Robert):

One thing i have not seen mentioned enough on this site ( i may be mistaken) is their sales tactics. Specifically I'm referring to their selling of additional units at above market prices.. Is it not obviously fraudulent to sell primary units at prices which they do when once they hit the mkt they are worth nothing...........Is it legal for mgmt to sell more units when in the secondary mkt they will become worthless? Please help me with this thanks Kurt