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Re: Manhattan Club Lawsuit (by Irene S.):

Today’s 3/11/16 NY AG vs Manhattan Club Hearing

The hearing today was powerful and exciting. It was Goliath vs Goliath. The lead TMC lawyer asserted the Eichners and TMC have done nothing wrong. The NY AG is conducting a fishing expedition and has found little to no evidence of wrongdoing. There are 21 people who though aware of the AG’s investigation are anxiously awaiting to purchase a Manhattan Club Timeshare and that right is being unfairly denied by the AG’s punitive stipulations and restrictions. The Manhattan Club is being harmed. It has been almost two years. TMC has provided thousands of documents, etc. They have had to layoff 100 employees. The TMC lawyers asked the Eichners and Scott Lager be taken off the complaint as personally liable.

Then the AG’s lead attorney Serwat Farooq got up. She stated the delays in the case have been caused largely by the Manhattan Club taking up to 8 months to provide requested documents. TMC has violated the court orders on several occasions. The case can be concluded much more quickly if as requested the Eichners and Scott Lager, the head of the management company answered the AG’s questions. They have all refused to testify or give a deposition. Scott Larger the titular head of Urban Management, the company that receives a 6.5 million dollar payment each year from TMC was paid by Urban Management. Urban Management had no employees. Scott Lager was paid $250,000 a year from Manhattan Club revenues. He was not paid by Urban Management. The AG’s office asked the 6.5 million dollar payment be held in escrow until the facts of the case were resolved. The AG asked for fines for and that TMC be compelled to comply with the court order. The AG also asked the Eichners and Lager continue to be held personally liable. for the Manhattan Club scam. The AG’s office talked about the hotel rentals being in specific violation of the Offering Statement.

And so it went back and forth between the two sides. The next step is for Judge Rakower to make a decision. The Judge specifically asked for a copy of the offering Statement to read it.

This is a very brief summary. About 20 TMC owners attended the hearing. I hope others who attended will give their summary as well.