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Re: Manhattan Club Lawsuit (by Dennis R.):

FYI....Time Share Units may be sold as a partial ownership, lease, or "right to use", in which case the latter holds no claim to ownership of the property. The terms "Owner" and "Ownership" are misleading. At best, "Ownership" is of a percentage of timeshare structure for use of....not property that is owned. It is simply the right to use for a percentage of time.

In other words, the Eichners and other parties own and will continue to own the building after the sale of The Manhattan Club Timeshare and the "right to use" business.

According to AG filing and the Martin Act: timeshares are purchased for recreational use and not for profit or investment. Furthermore, the AG filing states timeshares have no resale value and actual resale is uncertain as per the Martin Act. The Eichners and representatives are being found guilty of making fraudulent claims implying something other than "right to use" and underestimating bad debts in the annual budget . (violations of the Martin Act) However, that doesn't change what The Manhattan Club Timeshare business actually is.

I have said repeatedly that we are the owners. Eichner was the manager. He cannot have anything to do with timeshares, at least in New York. The Manhattan Club was developed as a timeshare. He cannot retain the building on his own, unless New York real estate is different from that of California. It is, somewhat, because in California you're required to turn the Board over to the owners when a certain percentage of the units are sold. I can't believe he didn't reach that threshold.