Manhattan Club Lawsuit

Rome, Italy. I received my survey yesterday. Will gather all the paperwork and will reply during the weekend. I still don't understand what happens if we don't pay maintenance fees...does our credit history get affected? Anybody know for sure?

I tried to send my info to you and it came back undeliverable Janice Ferriss 44822 contract number Flexible.

" <alexcrystal22@gmail.com> X-Mailer: iPhone Mail (12F70)

I would like to see survey for class action law suit. I also would like to know who is handling the legal aspects of this suit. I just did NY STATE ATTORNEY GENERALS survey. Is this the same survey. There have been other class action suits that were unsuccessful before the NY State Attorney Generals case. Am curious who the attorney is and if he is handling all owners or just NY and NJ

Waiting for response Janice Ferriss

Sent from my iPhone

My Husband and I have taken over my mother-in-laws finances and found this ridiculous timeshare purchase. She should have ripped $100 bills up and threw them for confetti for the amount of time she used this verses the monies paid. How do I get the information to fill out in her behalf? We now have power of attorney over her finances.

I got this email on May 19. Because I didn't have the documents to complete , I printed the form. As a result, when I went back to start the survey it began with question 20. I have left a message with the State Attorney to get back to me.

Just a warning, be prepared. There is so many details as the previous writer indicated.

I took over my father's interest in TMC. I would send them letter with power of attorney to TMC. Send it to reservations and to main office and they will note that you have power to use the timeshare. As far as the lawsuit is concerned, send email to Brenda Heredia and NY Ag's office and she will put you on list as owner.

I sent to you info that I could not email. Did you receive

No. I haven't received info. I did receive NYS AG survey though. I cant send in yet because my exact details are back home in a file and I'm away from home working at this time until Monday PM hrs.

from the info that i've heard, owners must receive the nysag's survey email directly. it can't be forwarded. if you haven't received the ag's survey to complete, i suggest that you call his office and request one.

keep in touch.

chris

I am confused, how do I know if I and my wife are participants in the lawsuit being brought against the MC owners? Yesterday I completed a questionnaire sent by e-mail to me by the NY Attorney Generals office, does this indicate that the lawsuit is getting legs or is this the continuation of the discovery phase? Sincerely Rick Melli rmelli@msn.con

richardm372, Here is a response to your question from a prior post: "this is not a class action suit brought on by shareholders of TMC. i's a legal proceeding instigated by our NEW YORK STAT ATTORNEY GENERAL, ERIC SCHNEIDERMAN, against THE MANHATTAN CLUB due to the thousands of complaints of excessive maintenance fees, and mega difficulties getting our deserved reservation time, he's received from shareholders of THE CLUB. so, you're "incuded" in the suit to the extent of gaining legal relief from the alleged legal expertise of mr schneiderman regarding this lawsuit."

Would someone please send me a copy of the survey? stevejakab@sbcglobal.net

hi richardm372, shareowners of THE MANHATTAN CLUB, (FRAUD TIMESHARE) are not "participants" in this lawsuit since it is not a class action lawsuit brought by us through a private attorney. the suit was brought to court by the new york state attorney general, eric schneiderman. in response to your question of the suit "getting legs", YES is my opinion. i doubt that it's still in "the discovery stage." i think the nysag has discovered and uncovered enough dirt on eichner and his partners "in..........." for him to go on with this as a full blown lawsuit and put the perpetrators on the witness stand to show that they're guilty as charged.

Hello, Is the NY AG's action again TMC brought on behalf of all owners, or only owners residing in NY State? Although we do not live in NY State, we are eager for a resolution. (I would think that, because TMC is located in NY State, the NY AG would be able to go after TMC for all its dishonest transactions and business practices, regardless of where all the harmed individuals live.) If the NY AG is representing only NY residents, what is the most effective recourse for harmed non-residents? Thank you, Mary Fraker

Since the AG sent surveys to all owners, not just the NY owners, I would assume that he is "representing" all the owners. My layman's opinion is that he is more after any wrongdoing that Eichner has done than representing anyone. However, we may gain from the outcome of the investigation.

robertp, your take on the nysag's lawsuit is similar to mine. schneiderman is not representing shareholders in court, but is using our testimonies to assist him in nailing "mr. fraudster" and his obedient underlings (all of whom are pocketing mega salaries from our maintenance fees {i've seen one at the m club drive to the lobby entrance in a ferrari}). again, you're correct in assuming that shareowners might "gain from the outcome of the investigation." further, my opinion is that we shareowners deserve remuneration for our exorbitant maintenance fees for our respective years of overpayment, upwards of 30-40% per year increases. also, i seek major inprovement in the reservations process. in addition, any further sales activities must be totally transparent and monitored from time to time by an ag's watchdog committee, undercover, of course. put nothing past ian bruce eichner and company. he's a brilliant businessman (albiet with fraudulent tendencies!) and surrounds himself with brilliant (or crafty) legal representation. in other words, he knows very well how to cover his ass even for the remotest possibilities...............yes i consider that to be (fraudulently and scam-wise) brilliant. ok, off my soapbox for the time being, but more to come.

if this lawsuit benefits us shareowners, we should make an attempt to have a huge party at the manhattan club lounge, paid for of course, by "his highness" sir bruce and cohorts. that would be an ironic victory.

keep in touch chris from east of manhattan

I did not receive a survey. What is the most efficient way to get one? Thank you.

I see 12 new exhibits posted today on the court library site. Appears to be an motion to have the order dismissed. At first glance there is some interesting reading material. Has anybody else taken a look at the material and drawn any conclusions?

http://iapps.courts.state.ny.us/iscroll/SQLData.jsp?IndexNo=451536-2014&Submit2=Search

For those of you that have not gone to this site, it has a lot of informaion on the case. You need to type in the scrambled letters and hit submit to get the the list of documents available.

The entire above link starting with http and ending with word search needs to be typed in to get to the info.

I was able to get into that site and there are some really interesting documents there.

I'm not sure if this will work, but this was a very interesting document that stated exactly what we owners are going through, so here is a partial copy. Go onto the site yourself as lots of things happening now. VickyH SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK ------------------------------------------------------------------------x In the Matter of an Inquiry by ERIC T. : Index No. SCHNEIDERMAN, Attorney General of the : State of New York, : : Petitioner, : AFFIRMATION IN : SUPPORT OF THE NEW Pursuant to Article 23-A of the New York General : YORK ATTORNEY Business Law in regard to the acts and practices of : GENERAL’S APPLICATION : FOR AN ORDER PURSUANT IAN BRUCE EICHNER, LESLIE H. EICHNER, : TO GENERAL BUSINESS STUART P. EICHNER, SCOTT L. LAGER, : LAW § 354 T. PARK CENTRAL LLC, O. PARK CENTRAL LLC, : PARK CENTRAL MANAGEMENT LLC, THE : MANHATTAN CLUB MARKETING GROUP LLC, : and NEW YORK URBAN OWNERSHIP : MANAGEMENT LLC, : : Respondents, : : in promoting the issuance, distribution, exchange, : advertisement, negotiation, purchase, investment advice : or sale of securities in or from New York State. : ------------------------------------------------------------------------x SERWAT FAROOQ, hereby affirms, pursuant to CPLR 2106, as follows: 1. I am an attorney admitted to practice before the courts of this State and an Assistant Attorney General in the Office of Eric T. Schneiderman, Attorney General of the State of New York (“NYAG”). I am familiar with the facts and circumstances of NYAG’s investigation of Respondents’ participation in fraudulent practices in the public offer and sale of real estate securities in The Manhattan Club, a timeshare hotel located at 200 West 56th Street, New York, New York. 2. I submit this affirmation along with exhibits, upon information and belief, based on personal knowledge and an examination of records and documents contained in the files of the offices of NYAG. 3. This affirmation is submitted in support of NYAG’s ex parte application pursuant to General Business Law (“GBL”) § 354, for the relief specified in the attached proposed order. 4. NYAG, having determined to commence an action under the Martin Act, GBL § 352 et seq., seeks an Order pursuant to GBL § 354 directing Respondents to testify and produce books and records because, upon information and belief, such testimony is material and necessary to NYAG’s ongoing investigation. 5. Moreover, because Respondents could further engage in fraudulent business practices that run the risk of causing continued injury to the purchasing public, immediate preliminary injunctive relief is expedient and proper. RESPONDENTS 6. Ian Bruce Eichner is an individual who resides in New York State, and is a principal of T. Park Central LLC, O. Park Central LLC, the Manhattan Club Marketing Group LLC and the New York Urban Ownership Management LLC. 7. Leslie H. Eichner is an individual who resides in New York State, and is a principal of T. Park Central LLC, O. Park Central LLC, the Manhattan Club Marketing Group LLC and the New York Urban Ownership Management LLC. 8. Stuart P. Eichner is an individual who resides in New York State, and is a principal of T. Park Central LLC, O. Park Central LLC, the Manhattan Club Marketing Group LLC and the New York Urban Ownership Management LLC. Stuart P. Eichner also is a Sponsor-appointed member and the President of the Manhattan Club Timeshare Association, Inc. 9. Scott L. Lager is an individual, a Sponsor-appointed member and the Vice- President of the Timeshare Association. 10. T. Park Central LLC is a New York limited liability company, and the sponsor of 2 Phases I, II and III, and Stage I of Phase V of the Manhattan Club. 11. O. Park Central LLC is a New York limited liability company, and the sponsor of Phase IV of the Manhattan Club (together with T. Park Central LLC, “Sponsor”). 12. Park Central Management LLC is a New York limited liability company, and the managing member of Sponsor. Park Central Management LLC has never been registered as a broker-dealer of securities in New York State, and was not identified as a principal of Sponsor in its expired broker-dealer registration statements. 13. The Manhattan Club Marketing Group LLC is a New York limited liability company, and Sponsor’s agent that sells ownership interests in the Manhattan Club to the public. 14. New York Urban Ownership Management LLC is a New York limited liability company, and the management company for the Manhattan Club (the “Management Company”). INTRODUCTION 15. Since 1996, Sponsor has been selling ownership interests in a timeshare known as the Manhattan Club. 16. The Manhattan Club timeshare hotel consists of 286 physical units, of four different accommodation types: 129 one-bedroom units; 112 executive suites; 24 penthouse suites; and 21 metropolitan suites. Annexed hereto as Exhibit A is a copy of Part I of the eighth restated plan for the Manhattan Club. The Manhattan Club is located in Midtown Manhattan. While the Manhattan Club is located in the same building as the Park Central Hotel, they operate on separate floors and have separate lobbies. See Ex. A at 8. 17. A typical timeshare plan allows a member or owner to use a specific property during a specific or “fixed” week every year. The Manhattan Club is not a typical timeshare, as the vast majority of owners were sold “flex time” or “flexible ownership” whereby they own a 3 fractional interest of a particular unit, but nevertheless have the ability to reserve any unit of the same accommodation type at any time of the year, subject to availability. See id. at 10. 18. Thus, in theory, an “annual ownership interest” in the Manhattan Club means the ability to reserve and use a room for seven consecutive or nonconsecutive nights per year. Accordingly, Sponsor may sell up to 52 annual ownership interests per actual, physical unit in the timeshare hotel. See id. at 16.1 19. Moreover, Purchasers are induced by the promise of enjoying luxury accommodations in Manhattan not just as overnight guests, but as owners. 20. In reality, it is extremely difficult if not impossible for Manhattan Club owners to actually reserve rooms. 21. Over time, the types of flexible interests being offered, and the corresponding rights and obligations, have changed. Meanwhile, the owners’ yearly common charges have increased by approximately 200% over the past decade. The discrepancy between what Manhattan Club owners are getting, versus what they are paying for, is so extreme that a few owners have sold ownership interests back to the Sponsor for only $1, just to escape the burden of paying the common charges. 22. Reportedly, because there is no resale market for ownership interests in the Manhattan Club, Sponsor has compiled a waitlist of Manhattan Club owners who are willing to sell their interests back to Sponsor for $1, but there is no guarantee that Sponsor will buy back an 1 The offering plan expressly states that: Ex. A at 10. Under the Offering Plan, each Purchaser of an Ownership Interest will acquire an undivided interest in a Timeshare Unit in the Timeshare Project (1/52 in the case of an “Annual” Ownership Interest or 1/104 in the case of a “Biennial” Ownership Interest or 1/156 in the case of a “Triennial” Ownership Interest or 1/208 in the case of a “Quadrennial” Ownership Interest), as tenants-in-common with all other Purchasers of Ownership Interests in the same Timeshare Unit. 4 ownership interest from anyone on that waitlist.2 23. Of particular concern is the conduct of Sponsor, and its principals and agents in relation to the rights of owners of flexible interests in the 129 full one-bedroom units and the 112 executive suites at the Manhattan Club (Phases I, II and III). Flexible ownership interests account for about 93% of interests sold in in these two accommodation types, but despite their majority ownership, their rights are inferior to the approximately 7% of owners who own so- called fixed interests, event interests and holiday interests. 24. While owners of flexible interests have brought class action lawsuits alleging that it is virtually impossible for them to reserve a room at the Manhattan Club, two of those lawsuits were dismissed on the ground that Sponsor has represented in writing, in an offering plan, that there are numerous restrictions on the ability of an owner of a flexible interest to reserve a room, including because the Management Company rents rooms to the general public. See Bisk v. Manhattan Club Timeshare Ass’n, Inc., 987 N.Y.S.2d 164 (1st Dep’t June 19, 2014); Sheppard v. The Manhattan Club Timeshare Ass’n, Inc., 11 Civ. 4362, 2012 U.S. Dist. LEXIS 72902 (S.D.N.Y. May 23, 2012).3 25. Thus, Sponsor has successfully used the offering plan as a shield from private litigation. 26. Over the past several years, NYAG has received nearly 100 complaints concerning the Manhattan Club. Sponsor repeatedly claimed that its conduct complied with the Martin Act, which governs the offer and sale of ownership interests in a timeshare and the sales 2 See http://therealdeal.com/blog/2012/07/23/timeshare-owners-in-eichners-manhattan-club-are-desperate-to-sell/ (last visited June 25, 2014). 3 A third lawsuit was dismissed on grounds of res judicata. See Smith v. Manhattan Club Timeshare Ass’n, Inc., 944 F.Supp.2d 244 (S.D.N.Y. 2013). 5 of other real estate securities.4 27. NYAG recently commenced an investigation into the conduct of Sponsor, and its principals and affiliates to determine whether they are violating the Martin Act. 28. As part of this investigation, NYAG’s staff attorneys reviewed Manhattan Club records filed with NYAG, including Sponsor’s broker-dealer registration statements and complaints made by owners of flexible interests in the Manhattan Club. On three separate occasions, NYAG sent undercover investigators to the Manhattan Club to video record the Sponsor’s sales presentation for flexible ownership, entitled “Vacation Ownership Experience” (respectively, the “Richardson Video,” the “Friedman Video” and the “Rivera Video”).5 NYAG’s staff attorneys then compared Sponsor’s selling agents’ oral representations with Sponsor’s written representations in the Manhattan Club offering plan, and other publicly filed documents. 29. Thus far, the investigation has revealed that: i. As part of Sponsor’s marketing scheme, its selling agents deliberately withheld the offering plan from prospective purchasers, violating the legal requirement that written disclosure be used in the offer and sale of real estate securities. ii. Worse yet, two sales agents invoked NYAG as the reason that prospective purchasers make their purchase decisions immediately upon the conclusion of the oral presentation. iii. Sponsor’s selling agents misrepresented the equity or resale value of an ownership interest. iv. Sponsor’s selling agents misrepresented that the Manhattan Club does not rent rooms to non-owners. v. Sponsor’s selling agents misrepresented the reservation policies applicable to 4

vicky229............ OMG, thanks for your research, but wow, i'm sure what you've presented here in our forum is a mere pittance as to what else is available to read and decipher. i suppose i'd like to think that, after reading your info, it appears that we're sort of on the winning side of this whole mess!

what's your take on this information? i hope others who read it will offer what they think of the partial transcript that you've supplied. i'd like to see someone with some legal expertise "translate" some of this "legalese" into laypersons' terms and explain how all of this mumbo jumbo impacts on us manhattan (fraud) club shareowners. personally, i'm expecting substantial relief and retribution from eichner and his partners in c**** if this case ends in favor of the nysag, eric schneiderman. i'm hoping that's not wishful thinking or a mere pipe dream.

keep in touch.

chris