Manhattan Club Lawsuit

This is a good one. These crooks just keep changing their own rules. Today I tried to book my remaining rooms for next year. I had previously booked a Fri. Sat. Sunday in January. I am on the plan that allows 3 Saturdays per year. Today I was told that I could not have more than 2 Saturdays booked per year at one time. So I have to use up the Jan. Saturday before I can book my next weekend. By January, there will be no more rooms available before July 31, which is my year end date. The girl was completely rude and insisted this has always been their policy. They are trying more and more ways to not give us rooms. I hope something comes of the meeting on Aug. 2 and Aug. 4. These crooks have got to be brought to justice. Patty

I will attend this meeting. Please put me on the list. Dennis Dostert

jeff_reports wrote:

I encourage all TMC owners to read latest legal papers filed in AG's case, as of Friday July 24. Very revealing. Neither side conceding a thing. We will discuss these developments and everything related to the case --- that pertains to owners --- at our Aug. 2 meeting in Manhattan. For those who cannot attend, we will provide information and audio afterwards.

Meeting will convene 1:30 Aug. 2, NYC Seminar and Conference Center, 721 w. 23RD Street (near 7th), Suite 515, rooms 1-3.

FYI, Schneiderman and Eichner probably won't participate, despite fact that this is an important meeting for their customers. Might be a backbone problem. Their reps are not elaborating.

patty, the MANHATTAN CLUB ISSUES OF SCAMS, FRAUD AND SUBSTANTIAL MISLEADING SALES TACTICS ARE UNIVERSAL IN THE UNREGULATED TIMESHARE INDUSTRY TO ONE DEGREE OR ANOTHER. we MC owners are fighting our own particular battle (which has unique issues but, of itself, is not unique, but very common in this UNREGULATED TIMESHARE INDUSTRY.) it's my hope that our ( THE NYSAG'S vs THE MANHATTAN CLUB) lawsuit will bring other states' attorneys general to recognize that this overall SHAM AND FRAUD RIDDEN INDUSTRY NEEDS FEDERAL/NATIONAL REGULATION. THIS IS THE MAIN ISSUE THAT HAS NEVER, TO MY KNOWLEDGE, BEEN ADDRESSED.....OF IF IT HAS, THE ISSUE HAS BEEN THROWN TO THE WAYSIDE WHILE THE VICTIMS OF THESE UNSCRUPULOUS CHARLATANS SUFFER FINANCIALLY AND OTHERWISE.

chris

For the past several months, I've been working with Greg Crist of the NTOA, one of the sponsors for Sunday's meeting, as a volunteer Consumer Advocate (for NTOA).

The focus has been on FEDERAL REGULATIONS for the Timeshare Industry! The State AG's work on these cases in a "bubble." I've sent a great deal of information out to Federal Agencies that would be involved, especially the Consumer Financial Protection Bureau.

Other agencies and groups (such as the National AG Association) have been contacted ad infinitum as well. NOTE: The CFPB did write a Rule for Timeshares which was open for public comment way back. The only comment came from ARDA, a Nationwide Timeshare group tilted for developers. The rule gives Timeshares less time than other financial products to close on a deal because the buyers are only there for a short time. OF COURSE NO ONE IN THE REGULAR WORLD KNEW ABOUT THIS OPEN COMMENTS TIME PERIOD! The CFPB's website shows when there are comment periods on rule making, most recently student loans. But how would one know without following them closely and how would the average person know TO follow them.

The FTC, DOJ and others have been regularly contacted too. After this week, it is time for ALL of us to complain to the Regulatory Agencies.

The CFPB (& maybe the FTC?) are not under Congresses control so I haven't pushed writing to Congress as of yet. It (they) are not funded by Congress.

Thanks, Chris, for bringing this important topic up!

Corinne

chrisv126 wrote:

patty, the MANHATTAN CLUB ISSUES OF SCAMS, FRAUD AND SUBSTANTIAL MISLEADING SALES TACTICS ARE UNIVERSAL IN THE UNREGULATED TIMESHARE INDUSTRY TO ONE DEGREE OR ANOTHER. we MC owners are fighting our own particular battle (which has unique issues but, of itself, is not unique, but very common in this UNREGULATED TIMESHARE INDUSTRY.) it's my hope that our ( THE NYSAG'S vs THE MANHATTAN CLUB) lawsuit will bring other states' attorneys general to recognize that this overall SHAM AND FRAUD RIDDEN INDUSTRY NEEDS FEDERAL/NATIONAL REGULATION. THIS IS THE MAIN ISSUE THAT HAS NEVER, TO MY KNOWLEDGE, BEEN ADDRESSED.....OF IF IT HAS, THE ISSUE HAS BEEN THROWN TO THE WAYSIDE WHILE THE VICTIMS OF THESE UNSCRUPULOUS CHARLATANS SUFFER FINANCIALLY AND OTHERWISE.

chris

Hi Chris!

If you check your documents, there should be one Power of Attorney for the Timeshare Board and one for the Condominium Board for every unit purchased. They use these to change our Deeds, the Offering Plan, etc WITHOUT OUR KNOWLEDGE!

I follow our ownership (address is The Park Central Hotel at 800 7th Ave, NOT 200 W 56th St) on ACRIS via signing up for alerts. Just doing a search in Manhattan with your name should bring up the filed documents. Recently I received an alert that the POAs were changed but to what? Frankly, I've been so busy I haven't checked as of yet.

I've been bringing this issue up since 2010 with TMC top management (Wirshba and Reale) about REVOKING these documents but to no avail. "Owners live all over the country and the world so we can't have everyone come in when we make needed changes."

Chris, I won't be at the 8-4 meeting because I'm in Albany and chose the Aug 2 meeting instead. Perhaps you could ask them how to revoke these POA's that we didn't know we signed at time of sale at the Board Meeting. When I reviewed my docs and saw these, I was furious! AND MOST OWNERS ARE UNAWARE THEY SIGNED THEM!

The AG's office hopefully knows about this from people who sent in all their documents from time of sale. I don't know if their undercover investigators ran into this as well.

Thanks! Corinne

arnoldm6 wrote:

corinnes32 wrote:

Hi Chris,

One point of confusion for me is that we all signed Powers of Attorney for them to control everything - 1 for the Timeshare Board and 1 for the Condominium Board. Hence their ability to change our Deeds without our knowledge or permission as they could do so without letting us know and continue to revise documents. All were changed from Single Commercial Residential to Timeshare back in approx. March 2014. They probably got wind of the AG Investigation around that time. Any thoughts on this? I don't know if there is a legal obligation.

Also, this is the FIRST year they are holding the Board Meeting on a Tuesday instead of a Saturday so... it seems they're trying to keep the meeting small on purpose. I've never bothered to go because it's all very controlled. I know they have asked people (pre-AG) to leave in the past if they "didn't behave," so to speak! Thanks, Corinne

I do not remember signing a power of attorney. However, can't a power of attorney be revoked? Arnie

Thanks to many of you long-frustrated owners for keeping pace with all the activity out of the AG's office. Can be quite confusing, especially since their legal issues are not the same as your owner issues. We are doing our best to keep you up to date on RedWeek, but there are many nuances of the case we don't even write about.

All TMC owners deserve some straight talk about their issues. This is one of the primary reasons we are hosting, with NTOA and TST, an open meeting for owners on Aug. 2 in Manhattan, to discuss the status of the AG's case and what it means for owners who are frustrated with maintenance fees, reservations, resale issues and other issues --- like who is responsible for this mess? We don't promise to provide the answers, but we do guarantee an honest discussion of the issues. We also plan to record much of the event, so we will expect to post highlights here in the near future.

In any case, sleep on this. The AG is now accusing the Eichner group of fraud, including siphoning $6.4 million a year from owner maintenance fees for Urban, the alleged management company. AG claims Urban had NO employees until AFTER the AG filed suit, one year ago, to shut down the Manhattan Club's timeshare business and freeze bank accounts.

Happy anniversary to all followers of this saga. No end in sight. But we hope to provide some clarity on Sunday in the Big Apple. After that, next court event is a status conference Aug. 21.

Raising our maintenance fees sky high which we desperately paid in our attempt to hold onto the timeshares we purchased and all along Eichner was siphoning off $6+ million a year for his own use (Urban) ! This family has got to see jail time and we timeshare owners receive financial restitution from his assets.

All Manhattan Club timeshare owners must register their written complaint with the Attorney General's office!

Will GoToMeeting be a option on Aug. 2 for those that will not be able to make it to Manhattan? I am a new follower of this saga and yes, I am a MC Owner and victim of the disgraceful actions.

I AM INTERESTED IN FINDING OUT WHAT CAN BE DONE WITH SELLING MY UNIT AT THE MANHATTAN CLUB. IT SEEMS THERE IS ALL KIND OF LEGAL MATTERS TAKING IT PLACE, WHICH PREVENTS POSSIBLE BUYERS IN BUYING MY UNIT. I LIVE OUT OF STATE AND WOULD LIKE TO JUST SELL IT. CAN THESE MEETINGS PRODUCE SOME RESOLVE IN JUST SELLING OUT UNITS AND BE DONE WITH IT. IF A FORMAL COMPLAINT IS NECESSARY TO RESOLVE THIS PROBLEM YOU HAVE MY FORMAL COMPLAINT

FORMAL COMPLAINT TO ATTORNEY GENERAL'S OFFICE. NOT HAPPY WITH THE HANDLING OF THE MANHATTAN CLUB'S POLICY OF BUYING, SELLING, RENTING, AND AVAILABILITY OF THE TIME SHARE UNITS.

My understanding of long-standing NY law is that a Board of Directors, regardless of their appointing/electing process, have a "Fiduciary Duty" of unbiased support for the best interests of all members (owners) of their association/company. Violation of that duty can subject the defaulting Board member to personal liability/damages. I suggest this be explored with the class action lawyers & that the Board then be carefully reminded of their Fiduciary role (& exposure) at the annual meeting. Maybe that will shake up a majority of the Board to effect operating changes to meet the Owners' repeated problems with reserving time for their purchased times. Paul D. Pearson, Owner # 32350

Jeff, I have other responsibilities on Aug 2 so I don't think I can attend the meeting in NYC. I want to thank you and Red Week for all you are doing for the Manhattan Club owners. I am praying that we owners can get some resolution to our issues as a result of the AG's investigation. My wife and I love the MC and have hung in there since 1998. We aren't interested in selling our timeshare but would be very happy with lower maintenance fees and easier reservations. Thanks again.

Sorry Arnie - missed your name.

Look through your papers.

henryd30 be advised that the New York Attorney General does not read this blog and so stating your complaint here does not in any way register your dissatisfaction.

If anyone is unhappy with their purchase due to having been mislead, or believes their maintenance fees to have escalated beyond what was understood, then you must send a letter directly to the NYS Attorney General.

we live in San Diego and own a split week. We have reservations for this September. If we decide to come to NYC, will the front desk people give us a hard time checking in, etc?? I don't want to fly all the way to New York and find out at the front desk, that we cannot stay there! Good luck with the meeting on Aug. 4! Thank you to all who have worked so hard to keep this in the news. And, thank you RedWeek for taking such an active interest! :0)

Dear henryd30, Did you find possible buyers? Please share. Who is going to make a purchase while the property in under the AG investigation?

TMC themselves are prohibited, by the AG, from selling or buying back any units during this investigation. I "sold" one back for $100 last June 2014 and the paperwork was in the works when the AG stopped/suspended all selling and buying until further notice, while they investigate. I don't know about any private sales, like finding an outside buyer (not MC related)...but in my case, I am still waiting to get final documentation and $100. In the meantime I was able to claim it as a loss on my taxes. And at the time of the "sale" I had to have my fees current, so I am "legally" not paying fees while I wait for this to be finalized.

I am also interested in selling. It has been listed with SellMyTimeshare for over a year with no buyers. The legal cloud over the MC has devalued our RE interest and selling is impossible. This whole mess needs to be resolved one way or another so that the owners can get some relief. Thanks you Redweek for keeping us informed. Please give us the highlights of the meeting.

henryd30 wrote:

I AM INTERESTED IN FINDING OUT WHAT CAN BE DONE WITH SELLING MY UNIT AT THE MANHATTAN CLUB. IT SEEMS THERE IS ALL KIND OF LEGAL MATTERS TAKING IT PLACE, WHICH PREVENTS POSSIBLE BUYERS IN BUYING MY UNIT. I LIVE OUT OF STATE AND WOULD LIKE TO JUST SELL IT. CAN THESE MEETINGS PRODUCE SOME RESOLVE IN JUST SELLING OUT UNITS AND BE DONE WITH IT. IF A FORMAL COMPLAINT IS NECESSARY TO RESOLVE THIS PROBLEM YOU HAVE MY FORMAL COMPLAINT

stephenh262, unfortunately, i have discouraging news for you: i hope you didn't send any $$$ to SELLMYTIMESHARE upfront.....if so, kiss it goodbye. your MANHATTAN CLUB TIMESHARE was worth nearly nothng long before the nysag's legal proceedings began, although this action led to more value woes for you and for all MC shareowners. i write from experience: i stupidly sent $1,000 upfront to a sham/fraud (as i later found out) "timeshare real estate broker" in orlando florida about 3 years ago. i heard from them about 2/3 times thereafter, only to find out later that they were "out of business" probably restarting another scam/fraud operation under another name. unless and until eichner and gang are made to give legal financial restitution due to the fraud and false claims occurring from the sales presentation to the present time, our timeshares aren't worth the contract paper (fraudulent as they may be) that they were written on. hope you can attend our aug. 2 meeting. i don't expect concrete results from this conference, but i hope for clarification of issues that are common to all of us MC shareowners: interpretation of the NYSAG investigation and upcoming MC lawsuit; further actions that can be taken by shareowners to recoup some of our investment in the MC, and other issues that owners share in common.

bottom line in reference to this redweek.com posting:

DON'T EVEN THINK ABOUT A SALE OF YOUR MC SHARE (S) AT THIS TIME. FORGIVE THIS OMINOUS ADVICE, BUT IT IS BASED ON FACT.

chris

sherylbaronb, If you have reservations at the MC you should not have any problems at the desk. To be certain, call them in advance of flying to NYC and confirm the reservation. The MC should also send a reminder email confirming the reservation sometime before your departure.