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Manhattan Club Lawsuit (by James W.):

I understand that the AG represents only the state of New York. If he is pursuing a civil action, you still have the question of what relief the AG will seek. If he is successful in getting a remedy that will require the defendants to give up their wrongful gains, wouldn't the money be distributed to the injured parties -- i.e., us? (Even in a criminal action, might a plea bargain include conditions requiring relief to the injured parties?)

I read with interest a magazine account of a pending case filed by Attorney General Schneiderman -- against Donald Trump with respect to allegedly fraudulent claims regarding the content and value of academic programs of Trump University and the personal involvement of Donald Trump himself. While there was an initial civil class action, which Schneiderman “largely piggybacked on,” the Attorney General does seem to be concerned with obtaining relief to the injured parties. I base this on the fact that although a trial-court judge ruled that the alleged victims were barred by the expiration of the statute of limitations, “the attorney general has appealed the decision.” [This information comes from TIME Magazine, November 16, 2015, p.46.] If he is successful, the alleged victims should be able to seek relief (and with the benefit of whatever findings the court makes on the merits of the AG's allegations).

The TIME article [p.48] also recites Trump’s unsuccessful efforts to be dismissed personally, on the grounds that Trump University was owned by a for-profit limited-liability corporation and not by him. Both Donald Trump’s ownership interest (through shell corporations) and his personal participation in marketing of the University’s programs played a role in the trial judge’s denial of Trump's motions to be dismissed.

(The reference above to the statute of limitations suggests that it might be a good idea to proceed with a class action on behalf of the owners. Would we be able to (and should we) obtain the services of a qualified law firm on a contingency basis? The potential recovery might make that an attractive opportunity.)

I did a quick Google search about the Bernie Madoff litigation and found this reference to the Attorney General’s role: The complaint charges Merkin with violations of the Martin Act for fraudulent conduct in connection with the sale of securities; with other statutory violations for "persistent fraud in the conduct of business"; and with violations of New York’s Not-for-Profit Corporation Law and breaches of fiduciary duty in connection with Merkin’s service on the boards of certain nonprofit entities. The complaint seeks payment of damages and disgorgement of fees, restitution and other equitable relief. [http://www.dandodiary.com/2009/04/articles/madoff-litigation/nyag-civil-fraud-action-against-merkin-some-interesting-insurance-questions/ ]

If the Attorney General there sought “payment of damages and disgorgement of fees, restitution, and other equitable relief” in that civil action [and I assume that the AG here is also pursuing a civil (rather than criminal) case], what leads us to think that he would not do likewise here?

jamesw948

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chrisv126 wrote:

nancyfj wrote:

Please include me in the class action lawsuit against the Manhattan Club.

there is no current "class action lawsuit against the Manhattan Club."

...the new york state attorney general represents only the state of new york, per se, in his suit against the manhattan club..... not the shareowners in the manhattan club. shareowners, if schneiderman wins this case, will get only residual benefits, if any, pending the judge's stipulations at sentencing. if the judge's findings are not beneficial to shareowners, we will, if we desire, need to hire our own attorney to establish a class action suit against eichner and gang.

the nysag had us fill out questionnaires only to strengthen his case against the manhattan club, and only for him and his office to benefit from a guilty verdict. it's an "iffy" question as to whether we owners will benefit from schneiderman's winning the case.

time will tell.

keep in touch.

peaceful, happy thanksgiving to all.

chrisv126