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Re: Manhattan Club Lawsuit (by Gail J.):

I haven't reviewed the most recent financial statements. In the past, a number of categories were supposedly over estimated thus providing a "cushion" so I believe at times there were funds left over. At one point, the Manhattan Club did some major upgrades as to furnishings, etc. but I do not recall under what category that expense was projected. As for the rental income, to my knowledge the Manhattan Club does not receive any rental income and never has. I know when I first purchased, I bought two weeks as I was told that a rental department to accommodate the owners would be set up. At that time the assessments were low, and that was pointed out to me by the sales team along with their statements that if an owner was unable to use his week, then he could place it with the rental department and that owner would receive the rental proceeds.The phrase "being unable to use his week" was described as an owner who because of his own circumstances was unable to use his designated or assigned week. That seemed logical as the sales team claimed you could actually make money because the rental rates for a place like the Manhattan Club would be high; there would be a substantial demand by non owners (AKA "renters") to stay in such a luxurious and convenient location,and again, the assessments were low. Part of the problem we later discovered was that Eichner sold more weeks than were physically available. So , for many of the units, he was selling more than 52 weeks a year. In my situation, I bought my two weeks at the same time and my documents reveal that on the same date both purchase agreements were executed. Over the years though, he or someone I assume at his behest, changed the dates on one of my weeks. That meant I could never have use of both my weeks at the same time even though I purposely bought them at the same time. There were just so many roadblocks thrown at us to prevent our use of our timeshares. More and more fraud was later discovered and that is why we were so disheartened that no criminal charges were levied against Eichner nor a much, much larger fine.