Manhattan Club Lawsuit

energize your position with more of a fighting attitude.

Well, I beg to disagree with some of the comments. Lynne O'donnel has never lied to me. I do believe there is a buyback list. Not everyone has disagreements with TMC (I certainly didn't). I traded my week for RCI points and used them for numerous vacations. I quit paying my maintenance fees ( I never paid taxes separately )with no repercussions. I asked to be put on the buyback list. Nine months later I signed the documents and got my $100.00

Roger, I am confused - do you still have ownership at the Manhattan Club? If not, why are you still on this site? Are you part of the Zimmerman litigation?

Hi Roger

You said you stopped paying maintenance and taxes with no repercussions.

They did not report your failure to pay to the credit agencies?

And you said they took the deed back so you no longer have any responsibilities to pay?

Thanks Phil

Nope, I sold it back. Never gave the Zimmerman litigation option a second thought. I guess I still read these postings for entertainment.

That is correct.

That’s promising to hear. I hope it works out for me as it did for you. I think that list is more “we aren’t getting anymore money from them” then “ a buy back list” but either way. As I said, I needed to wait until my fees were due. They certainly aren’t going to do anything if I’m paying. As far as joining the lawsuit, I decided not to because even if we were to win and get some type of compensation, I’ll still be stuck with the time share, paying outrageous fees and not able to book a room because they rather sell rooms to the public.

Telling owners that can not afford to pay their current maintenance fees to “join the lawsuit”is no longer helpful. Obviously the $2000 fee to join this legal process is an additional concern/burden. This appears to be tone-deaf advice.

The New York Attorney General Schneiderman's Assurance of Discontinuance protected Eichner from further lawsuits by saying the evidence proving fraud from the NYAG's investigation could not be used in any court case against Eichner.

Even though Eichner admitted guilt, Manhattan Club owners cannot bring his guilty plea up in Court because of how the agreement with the NYAG is worded.

We can change this.

Great and cheap deal for Eichner. Manhattan Club owners got screwed by the NYAG.

For 6 million dollars, the price of one of his condos in Florida, Eichner essentially got a never get sued again pass from the NYAG. Well, there is a new New York AG.

We wrote letters and got the investigation of the Manhattan Club started. We can write letters, emails and phone calls to change this perversion of justice.

Manhattan Club Owners should write to: Attorney General Letitia James

Office of the Attorney General. The Capitol. Albany, NY 12224-0341.

Only with permission from the New York Attorney General can the many examples of proven fraud against Manhattan Club Owners with full documentation found by the New York AG in a three year investigation be used in any case against Eichner.

Irene Smalls

The Zimmerman lawsuit is an excellent move but all the detailed documentation of The Manhattan Club's Fraud cannot be used in any court case per TMC's sweet heart deal with the former NY Atty. General. The NYAG's office has audio and video of fraud, as well as bank records, which no attorney can get. TMC has won previous lawsuits because they refused all real efforts for Discovery by attorneys. The NYAG under the Martin Act has powers no attorney can match. Strengthen the Zimmerman case. Ask the new NY AG for access to the briefs, audio, video, bank records, reservation records, etc from the 3 year Attorney General Schneiderman investigation. Why reinvent the wheel? All the proof of fraud Zimmerman needs to win his case is already done. That's the way to win against The Manhattan Club. Write to the new AG

Also, if it can be shown that Eichner has not complied with the settlement requirements, then the Court could probably rule that the violations by Eichner voided any confidentiality or dissemination restrictions. The Zimmerman law suit is our best chance for any recovery. Thanks again, Irene, for keeping us informed.

I've been away from this forum. I checked back but it's difficult to tell the dates. I only bought my share in 2013 because the sales person told me lies and I was wowed by our stay there in a friends' unit. Having said that, since I plan my visit a year in advance I usually can get what I want. Since I bought 7 years ago my maintenance went up $700+. I don't see any changes that would merit such increases. I'm also disturbed by their response to Covid.. I do not go out hardly , so offering a deal with RCI doesn't do much. I wanted to carry over my three nights. No deal. I read the post suggesting we write to the NYAG, which I will. I understand that Marc Zimmerman is still pursuing a case but that he is not getting info he needs from Eichner et al . But I assume it is still on? I thought he was out. Sorry if I'm asking questions that have been answered already but it's very difficult to find in this data archive.

Irene S, Do you have a template for a letter we could all use to request those items you mention? I have found that is the most effective way to get large group participation in sending the letters.

Best, Kerry

Hi Kerry,

I will post the letter I am sending to the New York Attorney General.

Irene Smalls

Here is a link to the Assurance of Discontinuance from the former NYAG Schneiderman that screwed Manhattan Club Owners. https://ag.ny.gov/sites/default/files/manhattan-club-aod_0.pdf

Please note on page 17 Section 74, the second sentence though it says "The respondents, Eichner, shall not take any action or make any statement denying, directly or indirectly, the propriety of this Assurance or expressing the view that this Assurance is without factual basis.

It also says", Nothing in this paragraph affects the Respondents (i) testimonial obligations or (ii) right to take legal or factual positions contrary to the terms of this document in defense of litigation or other legal proceedings, to which the OAG (Office of the Attorney General) is not a party. This Assurance may not be used by any third party in any other legal proceeding and is not intended, and shall not be construed, as an admission of liability by the Respondents in any other proceeding." In other words Eichner and TMC can deny in any Court they were guilty of running a timeshare scam with the expressed blessing of the New York Attorney General's Office. Despite the NYAG having investigated and finding extensive evidence of Eichner's fraudulent Manhattan Club timeshare operation Eichner is given a full pass from the New York Attorney General, 'the people's lawyer.'

We need to change that. Write to the new Attorney General James.

Office of the Attorney General. The Capitol. Albany, NY12224-0341.

Irene Smalls

yes, irene:

a template of your letter will serve for owners to pick and choose what pertains to them (in whole or parts) and mail it to the new NYSAG, honorable leticia james.

this will help to create a cohesive united front for her to review and possibly make necessary changes to owners' benefit.

it can't hurt to try.

Thank you for your help, Irene. Look forward to seeing the letter!

For those of you who may be interested in writing to the new NYAG, I'm enclosing one of the last letters I wrote to Ms. James. Feel free to use any part of it in your own correspondence. I believe I received a boiler plate "thank you for your letter" response.

Bob Biello

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March 11, 2019

Ms. Letitia James N.Y. Attorney General The Capitol Albany, NY 12224-0341 Re: Case # 451536/2014 Schneiderman v. Eichner

Dear Ms. James:

My wife and I are among the thousands of owners of timeshare interests in The Manhattan Club who have been defrauded by the improper conduct of Ian Bruce Eichner, a Manhattan real estate billionaire, members of his family, and a close circle of associates. In July, 2014, your office began a 3 year-long criminal investigation which discovered evidence that Eichner and his associates played a direct role in carrying out a huge timeshare scam against an estimated 14,000 to 18,000 Manhattan Club owners for at least 10 years, defrauding us out of tens of millions of dollars. My wife and I and literally thousands of other timeshare owners have suffered very significant financial losses due to the fraudulent conduct of the Eichner family, The Manhattan Club, and its related companies.

Based on evidence gathered during your investigation, we learned that Eichner has been personally skimming $6,000,000 a year from The Manhattan Club through a shell management company called “Urban”. For years, this company had no employees and provided no services to the operation of the timeshare property, yet our timeshare corporation was paying them (Eichner) $6 million a year! In July, 2017, your office announced that the NY Attorney General had reached a settlement with the respondents in this case, and was ending its investigation into the operation of The Manhattan Club timeshare with the signing of an “Assurance of Discontinuance.” On August 14, 2017, your office signed assurance no. 17-149, on behalf of the NY Attorney General, with the respondents in this case. Unfortunately, the settlement fails to address the respondents’ admissions of guilt, and most of the allegations of criminal wrongdoing committed against us timeshare owners by Ian Bruce Eichner and his close circle of associates.

As we owners feared, Eichner et al are violating the terms of the assurance with impunity. We knew that the agreement would only be effective if the respondents actually carried out the stipulations to which they agreed when signing the Assurance of Discontinuance. It would be helpful if we had a contact person to keep affected owners informed. Owners have received ZERO communication from your office. Has anyone in your office been assigned specific responsibility to monitor adherence to the conditions in the assurance? What steps can you undertake to carry out necessary enforcement actions?

I have been closely monitoring the Internet for word that the conditions in the Assurance of Discontinuance are being properly carried out or enforced. Unfortunately, during the year and a half since your office announced the settlement, I have not seen any evidence that the stipulations Eichner agreed to have actually been carried out. Quite the opposite is true. They are routinely violating the agreement. The Assurance of Discontinuance section titled, “PROSPECTIVE RELIEF,” page 12, paragraph 61, states in part, “Respondents and their agents and employees, including The Manhattan Club Timeshare Association, Inc., shall not engage in any act directly or indirectly relating to the offer, purchase, sale, issuance, advertisement, marketing, promotion, distribution, negotiation, exchange or transfer of any timeshare interest...” Within the last few months, the respondents have been trying to extort owners into the acceptance of $100 token payments to entice them into relinquishing their timeshare ownership, for which they paid tens of thousands of dollars, in return for forgiveness of minor arrears in maintenance payments. Paragraph 62 states that, “Respondents shall enter into an agreement with the third-party operator of timeshare properties (TMC Purchaser) previously identified to the OAG on or about July 28, 2017…” Who is this third-party operator (TMC Purchaser)? Has the required agreement been signed? If so, when? If not, what enforcement steps will the AG’s office take due to this violation of the assurance? Paragraph 63 of the assurance states that, “All Sponsor-appointed officers and directors will resign from their positions as members of the board of the Timeshare Association…” There have been no reported resignations of any officers or directors of the Timeshare Association. What enforcement steps will the AG’s office take due to this violation of the assurance? The Assurance of Discontinuance section titled, “RESTITUTION,” page 14, paragraph 65, itemizes a schedule of payments respondents are required to make as a condition of the assurance. Their first payment of $3,250,000 was due 15 days after the release of frozen funds. Has your office received this payment? If so, when was it received and when will these funds be distributed to timeshare owners? If not, what steps will the AG’s office take due to this violation of the assurance? Your investigation uncovered evidence that Eichner and his cronies engaged in a massive timeshare fraud. They have demonstrated that they are not honorable people and I would not be surprised to learn that, in addition to the violations I listed above, they have not carried out any of the stipulations to which they agreed when signing the Assurance of Discontinuance. As a result of the fraudulent conduct perpetrated against us by Mr. Eichner, The Manhattan Club and its affiliates, as well as the NY Attorney General's allegations of fraud and other criminal conduct, I urge you to take whatever steps are necessary to force them to comply with the conditions of the Assurance of Discontinuance and to impose appropriate penalties due to the ongoing violations. Sincerely yours, Robert A. Biello

This was excellent and I feel scammed. Not sure I will ever pay my maintenance fee again. My only concern is what repercussion will it be to my estate if I stop paying??

Excellent letter Robert Biello. Thanks for posting it. I will be posting my letter as well. Irene Smalls