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Re: Manhattan Club Lawsuit (by Nathan Z.):

Great job, Tulip Blossom! It's too bad you can't insert a diagram here to show the lines connecting Eichner (as developer), Eichner (as property manager) and Eichner (as controller of the owner's association), all represented by separately incorporated entities. The developer appoints the majority of the members of the board which in turn approves the management contract to another company which is also owned by the developer. I don't think you're being sympathetic to Eichner. You've just accurately described the business structure of the Manhattan Club. Except for the fraudulent sales piece, it's all perfectly legal. It's just that in most cases, the developer exits the deal after a certain percent of the inventory has been sold, but in this case that never happened. The MC was just generating too much money for Eichner to walk away.

Now it has to be unwound. But it doesn't help that most owners use all the entities interchangeably. Every few months we have a new class of "freshman" posters who haven't done their homework and ask the same questions over and over again; making the same suggestions we've been hearing for years; and a few long time contributors who can't understand why the AG didn't take on their personal lawsuits or why Eichner hasn't been convicted of a capital crime. As I said once before, Eichner will make money as long as he is involved, the lawyers will make money as long as they can generate billable hours and the owners will be an afterthought. And that $6.5 Million? I used to be more hopeful, but now I feel more like lol!