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LATEST INFORMATION ON MANHATTAN CLUB INVESTIGATIONS (by Chris V.):

jeff,

have you tried to get the nysag to give us a presentation by using the request form directly from his website? although it does not say that all requests will guarantee a presentation, if a form is completed we might have a chance of having the ag or his rep give us some clue as to where we stand as owners at the manhattan club by presenting facts that would be useful to us. what is guaranteed is an overflow audience of owners from distant states and perhaps even foreign countries if such a presentation is offered. your planned meeting/event last august was a reasonable success. i urge you to do an encore with the colleagues you worked with to have another owners' meeting in nyc. i think momentum is picking up quite rapidly about the manhattan club fraud and scam that would draw an even larger audience than the last meeting..... with or without the nysag's presentation.

chris

jeff_reports wrote:

Thanks to all contributors to this forum. RedWeek has followed the club's issues for several years, predating the AG's investigation. Here is a recap of all relevant information as of this date.

The AG got a court order July 2014 that shut down the club's timeshare operation and froze most assets. The AG's case was spurred entirely by TMC owner complaints and an undercover sting operation conducted by the AG's investigators, where they audio and video-taped sales presentations at the club. After securing the court order, the AG conducted a lengthy investigation of possible civil and criminal fraud, which continues to this day. The case has been held up by numerous legal challenges mounted by the club's sponsors, Eichner and company. The most recent legal rulings in the case, from May 26 and July 13, were provided by Judge Rakower, who dismissed all motions presented by the Eichners. Eichner's legal team had sought to close the investigation; to get the Eichners dismissed from the investigation; and to block under-oath depositions of the Eichners, association VP Scott Lager and the former director of sales. Rakower ruled July 13 that the depositions should proceed and that "any delay" would further harm owners saddled with maintenance fees and total uncertainty about the club's fate. Eichners attorneys filed motions to appeal the May 25 and July 13 rulings within hours of Rakower's decision to let the depositions go forward. Doug Wasser, a New York attorney who represents 28 Manhattan Club owners as a liaison with the AG's office, advised RedWeek that the appeals could take 12 to 14 months, or more. What this means is that, while the AG's investigation continues, resolution of the entire matter may be held up until AFTER the appeals are heard and ruled upon. This is the current status leading up to the Aug. 3 association meeting of TMC owners. As many readers of this forum recall, the TMC board, which is populated by Eichner appointees, declined to answer any questions about the case (or the club) at last year's meeting. They took that stand on advice of the same attorneys who are fighting the AG's case tooth and nail. If someone asked me to speculate about next week's meeting, I would expect the same positioning from the board. Meanwhile, there is a new class-action case on file, but it is in the very early stages of legal motions. At this point, sad to say, there is not much that individual owners can do to influence the pace or outcome of the legal proceedings, other than to stay informed and write letters to Rakower so she is aware of your concerns. One last point: many owners have asked RedWeek to mount another offsite meeting for owners, similar to what RedWeek.com and TimeSharing Today hosted one year ago. I want to assure all readers that we are actively discussing this but have no specific plans to offer at this time. Why? Because our goal is to educate and arm owners with information they can act upon. If the AG agreed to address owner issues at a public meeting, we would be glad to host it. However, the AG has flatly rebuffed all of RedWeek's efforts to get them to communicate directly, and openly, with owners. (Their reasoning: they don't want to say something in public that might jeopardize their investigation. Eichner's legal team uses the same rationale to avoid talking to the press about Eichner's defense. The AG's refusal to communicate may be an issue for owners to pursue. Their letters to Rakower were not only heard but referenced in her eight-page July 13 ruling on the depositions. On a personal level, if I was a Manhattan Club owner, I would put my efforts into contacting local elected officials and NY media to generate interest in my cause. I would not seek a new legal proceeding, since the key one (from the AG) is already two years down the road. And, lastly, I would participate in any owner-meetings that I could, including the Aug. 3 board meeting, to make sure my voice is heard amid all the din surrounding the Manhattan Club.