Manhattan Club Lawsuit

Too bad steps weren’t taken in advance...inherited the TMC and so far out $2K trying to sell through SMTN & $2K in dues. If I had known about the situation with TMC I wonder if my Dad could have left it to an enemy in his will like a TMC sales person, or someone who owes him money (there are lots). I still find it hard to believe this obligation is passed onto us. We just want to walk away, have the deed.

The address is https://ag.ny.gov/uploads/manhattan-club-aod.

From Thomas Greteur under the prior posts (in FB group) after contacting private attorneys:

"So I'm half exhausted with all the calls I have made today. Not going to bore you with stuff that is irrelevant. I spoke with 3 attorneys who all agreed that currently we have no options at all. The case settled by Schneiderman is predicated upon a sale of the MC to another entity. That is part of the court agreement. That was supposed to happen close to August of 2017. Eichner has defaulted on what he has agreed to do. It is up to the AG to enforce what the courts have agreed to. Our only option at this time is to flood the AG's office with letters and phone calls demanding that they enforce the agreement that was so painfully won. This is all about enforcement of the decree. One of the people to start with is Brenda Heredia in the AG's office. Brenda.heredia@ag.ny.gov They are good at avoiding phone interactions so email is best way to start harassing. There can be no transfer of units and, more importantly, no relief from all the taxes and maintenance charges that many of us are not paying without enforcement of this important next step in the settlement. Also, for those of you who reside in New York, put pressure on your legislators to push the AG to enforce this next step"

corinnes32 wrote:

From Thomas Greteur under the prior posts (in FB group) after contacting private attorneys:

"So I'm half exhausted with all the calls I have made today. Not going to bore you with stuff that is irrelevant. I spoke with 3 attorneys who all agreed that currently we have no options at all. The case settled by Schneiderman is predicated upon a sale of the MC to another entity. That is part of the court agreement. That was supposed to happen close to August of 2017. Eichner has defaulted on what he has agreed to do. It is up to the AG to enforce what the courts have agreed to. Our only option at this time is to flood the AG's office with letters and phone calls demanding that they enforce the agreement that was so painfully won. This is all about enforcement of the decree. One of the people to start with is Brenda Heredia in the AG's office. Brenda.heredia@ag.ny.gov They are good at avoiding phone interactions so email is best way to start harassing. There can be no transfer of units and, more importantly, no relief from all the taxes and maintenance charges that many of us are not paying without enforcement of this important next step in the settlement. Also, for those of you who reside in New York, put pressure on your legislators to push the AG to enforce this next step"

Are you saying many are not paying their maintenance and taxes while the enforcement is pending? Have any attorneys recommended not paying these fees and if so what might be possible consequences? I've seen other comments that say you have no real choice but to continue to pay. Thanks, BV

corinnne,

this whole TMC issue (practically since its inception) has been a mess and is getting messier as even the settlement (for what it's currently worth) has been closed, but hardly settled. SCHNEIDERMAN IS CUOMO'S EMPLOYEE. WE SHOULD BE WRITING TO HIM COMPLAINING OVER SCHNEIDERMAN'S APPARENT INEPTNESS TO BE OF ASSISTANCE TO THOSE WHO WERE VICTIMS OF EICHNER. SCHNEIDERMAN WILL NEVER GET MY VOTE NOR THE VOTES OF ANY FAMILY MEMBER, CO-WORKER, FRIEND OR ACQUAINTANCE AGAIN.

corinnes32 wrote:

From Thomas Greteur under the prior posts (in FB group) after contacting private attorneys:

"So I'm half exhausted with all the calls I have made today. Not going to bore you with stuff that is irrelevant. I spoke with 3 attorneys who all agreed that currently we have no options at all. The case settled by Schneiderman is predicated upon a sale of the MC to another entity. That is part of the court agreement. That was supposed to happen close to August of 2017. Eichner has defaulted on what he has agreed to do. It is up to the AG to enforce what the courts have agreed to. Our only option at this time is to flood the AG's office with letters and phone calls demanding that they enforce the agreement that was so painfully won. This is all about enforcement of the decree. One of the people to start with is Brenda Heredia in the AG's office. Brenda.heredia@ag.ny.gov They are good at avoiding phone interactions so email is best way to start harassing. There can be no transfer of units and, more importantly, no relief from all the taxes and maintenance charges that many of us are not paying without enforcement of this important next step in the settlement. Also, for those of you who reside in New York, put pressure on your legislators to push the AG to enforce this next step"

Why would you continue to pay fees to an entity that is "in limbo", the owner has defaulted on the court order, and I would bet that the money is not going to maintain the building (including furnishings, taxes, etc.) and is going right into the pocket of Eichner. Obviously Eichner hasn't been penalized or affected so why would you worry about being penalized. I would set up a bank account and put the money you would spend on fees/taxes in that account so that once this fiasco is settled you can settle up with the new owners (if that ever happens). Paying your fees to TMC is just like investing in a Ponzi scheme. You will not win in the end and you'll have paid thousands of dollars for nothing. This is a well publicized case and I'm sure any good attorney can work with the credit agency to clear your credit up, if in fact you're reported to a credit agency.

robertv352 wrote:

corinnes32 wrote:

From Thomas Greteur under the prior posts (in FB group) after contacting private attorneys:

"So I'm half exhausted with all the calls I have made today. Not going to bore you with stuff that is irrelevant. I spoke with 3 attorneys who all agreed that currently we have no options at all. The case settled by Schneiderman is predicated upon a sale of the MC to another entity. That is part of the court agreement. That was supposed to happen close to August of 2017. Eichner has defaulted on what he has agreed to do. It is up to the AG to enforce what the courts have agreed to. Our only option at this time is to flood the AG's office with letters and phone calls demanding that they enforce the agreement that was so painfully won. This is all about enforcement of the decree. One of the people to start with is Brenda Heredia in the AG's office. Brenda.heredia@ag.ny.gov They are good at avoiding phone interactions so email is best way to start harassing. There can be no transfer of units and, more importantly, no relief from all the taxes and maintenance charges that many of us are not paying without enforcement of this important next step in the settlement. Also, for those of you who reside in New York, put pressure on your legislators to push the AG to enforce this next step"

Are you saying many are not paying their maintenance and taxes while the enforcement is pending? Have any attorneys recommended not paying these fees and if so what might be possible consequences? I've seen other comments that say you have no real choice but to continue to pay. Thanks, BV

I stopped paying my fees 2 years ago so I am considered "eligible" for the settlement because I was current during the period specified by the court agreement. I'll never see one red cent and if I do, it will be pennies because there's so many of us that are "elibible".

Could the reason be that no entity is even interested in purchasing the Manhattan Club?? There can't be a transfer if no company wants to own the Manhattan Club.

TMC couldn't sell their units before the settlement but owners could. I am attempting to sell one of my units and TMC said I had to send them a letter before the sale in case they wanted to exercise their First Right of Refusal. I frankly don't know how they're going to handle that.

laurah136 wrote:

TMC couldn't sell their units before the settlement but owners could. I am attempting to sell one of my units and TMC said I had to send them a letter before the sale in case they wanted to exercise their First Right of Refusal. I frankly don't know how they're going to handle that.

Curious how this sale works out. If you get more than $1 I'd be surprised, sadly.

williamm465 wrote:

I have said this a month or so ago, as well as warning folks that very soon TMC will go after the credit of those who are delinquent. I have been quiet recently because I was accused (by those who have all the answers) of being a stooge and a shill for TMC management. It is not a perfect world. sometimes bad things happen to good people. This may not work out the way we would like but be careful not to make things worse for yourselves.

What is your source for this information (TMC going after credit soon)?

To be "eligible" for any part of TMC settlement, all TMC fees must be current. If you are in arrears, you are not eligible for any part of settlement.....plus you would be potentially liable with new ownership for past maintenance fees and taxes if the purchase agreement includes past arrearages.

beckyf76 wrote:

I stopped paying my fees 2 years ago so I am considered "eligible" for the settlement because I was current during the period specified by the court agreement. I'll never see one red cent and if I do, it will be pennies because there's so many of us that are "elibible".

The right of first refusal clause is to designed to protect against fraudulent sales. (example: a timeshare owner transferring / selling ownership to a "Limited LLC" and walking away without affecting personal finances or credit)

laurah136 wrote:

TMC couldn't sell their units before the settlement but owners could. I am attempting to sell one of my units and TMC said I had to send them a letter before the sale in case they wanted to exercise their First Right of Refusal. I frankly don't know how they're going to handle that.

I’ll take my chances. I’m sure I can afford to lose the “not even pennies on the dollar” settlement amount that the 18,000+ owners might get when this is settled.

flood schneiderman's office with letters demanding that he COMPLETE THE JOB HE TOOK ON...............TO BRING EICHNER TO COMPLETE JUSTICE. as of now, eichner must be laughing his tush off at all of us, INCLUDING SCHNEIDRMAN (and collecting money from a dummy company to boot.) also, inundate GOV CUOMO'S OFFICE DECLARING OUR DISSATISFACTION WITH SCHNEIDERMAN'S SO-CALLED COMPLETION OF HIS CASE WITH EICHNER. ALL SCHNEIDERMAN DID WAS TO GET A JUDGEMENT WHICH COULD TAKE MUCH TIME TO COMPLETE AND GIVES EICHNER THE FREEDOM TO LAUGH ALL THE WAY TO THE BANK.

YES, CAPS USED TO RAISE MY VOICE!

chris

Has anyone heard anything about the judicial compliance review which was supposed to take place in November?

I called the TMC financial department. I was interested in how many folks were not paying their maintenance. Of course, the more that don't pay, the more the rest of us have to pick up. The women, I forget her name, said there were not too many. I asked if there would be consequences for those not paying. She assured me there would be. I asked if there would be reports to credit agencies. She said probably. When TMC is sold, soon I hope, the buyer has every right to consider delinquent accounts as an asset. Will he/she/they be benevolent and say to those who owe, " it's ok, forget it." I don't think so.

williamm465 wrote:

I called the TMC financial department. I was interested in how many folks were not paying their maintenance. Of course, the more that don't pay, the more the rest of us have to pick up. The women, I forget her name, said there were not too many. I asked if there would be consequences for those not paying. She assured me there would be. I asked if there would be reports to credit agencies. She said probably. When TMC is sold, soon I hope, the buyer has every right to consider delinquent accounts as an asset. Will he/she/they be benevolent and say to those who owe, " it's ok, forget it." I don't think so.

I am always curious as to why owners would believe asking employees at the Manhattan Club certain financial questions and expect accurate and truthful answers. As far as inquiring to how many and why certain owners are not paying their maintenance fees, that is a personal decision that owners have made for various reasons. I do not believe anyone should be second-guessing these owners decisions. The real issue is and has been the conduct of management of the Manhattan Club and what has transpired over the years.

I believe that it is everyone's right to handle their own investment as they see fit. To publish info that cannot be verified gives false hope for people who do not know or have not been informed as to all the proceedings over the past years, that validate the corruption of the management of the TMC. This is why the Attorney General of New York has handled this matter from the beginning. Info from the employees of the TMC is not true, they are being told what to say. As long as people choose to pay their maintenance, this allows money being put into the pockets of TMC management. This allows them to rent our units that are not being used, and still collecting our maintenance. I would not feel sorry for them, as they are the ones who created this problem, and we as owners have suffered the burden. If you pay, and use your unit, so be it, but has anyone considered all of us who have paid, not allowed to use our unit, and have our unit rented by TMC. How wrong is that. My suggestion, do not post any info that is not verified, and look at the big picture of why this all started. You will find your answer. HD

While we continue to wait for any type of relief from this mess, I felt it was time to write to the NY AG to complain about the lack of progress. I addressed my most recent letter to Louis Solomon, the assistant AG, since he is the individual who actually signed the "Assurance of Discontinuance" with Eichner for the AG. The AG supposedly reached a settlement 6 months ago, ended their investigation of TMC, and NOTHING HAS HAPPENED SINCE. The text of my letter follows. Please use it any way you choose to hound the AG's office to get moving. email communications are too easy to ignore, so I recommend a snail mailed letter in addition to any emailed correspondence you send.

Bob Biello =================================================================================

February 12, 2018

Mr. Louis Solomon Assistant Attorney General New York Attorney General’s Office 120 Broadway New York, NY 10271 Re: Case # 451536/2014 Schneiderman v. Eichner Dear Mr. Solomon:

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 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.

The Manhattan Club’s obligation to me as a timeshare owner was to make 7 days per year available to stay at the property. Instead of making those days reasonably available, The Manhattan Club engaged in an organized scheme to routinely tell me, and other timeshare owners who called to make reservations, that the requested days were not available, while at the same time, Manhattan Club representatives were selling the same rooms for the same dates to the general public on the Internet. Also, 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, you signed assurance no. 17-149, on behalf of the NY Attorney General, with the respondents in this case. While it is true that the settlement will result in the removal of some really “bad apples” from the NY timeshare business, it fails to address most of the allegations of wrongdoing committed against us timeshare owners by Ian Bruce Eichner and his close circle of associates.

Of course, this will only be effective if the respondents actually carry 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. Has anyone in your office been assigned specific responsibility to monitor adherence to the conditions in the assurance and carry out possible 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 6 months since your press release of August 16, 2017, in which you announced the settlement, I have not seen any evidence that the stipulations Eichner agreed to have actually been carried out.

The Assurance of Discontinuance section titled, “PROSPECTIVE RELIEF,” page 12, 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 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 honor the conditions of the Assurance of Discontinuance and to pay the mandated restitution.

Sincerely yours,

Robert A. Biello