The Manhattan Club Lawsuit - RedWeek's Report & Most Recent Info

If you're having trouble sifting through the sea of Manhattan Club complaints spanning several years, you're not alone. Three lawsuits have been brought and dropped, and now there is an investigation brought by New York's attorney general himself - which has already passed it's one-year anniversary.

THESE PAGES ARE NO LONGER UPDATED.

I am the person who originally found Mr. Blau and my spouse and I were lead plaintiffs in the first lawsuit filings, one in Federal Court so ALL owners would be represented in the class (which I strongly believe was only dismissed because of the judge having a connection with Eichner) and the second which was also a State Supreme Court case like the current case, with me as lead plaintiff, which was dismissed & wasn't even looked at because my name was there. The Court papers say that the dismissal was because I'm married to the person under which the Federal Case was dismissed. The merits weren't even looked at in that first State Supreme Court suit! I have copies of the paperwork.

Secondly, there is no list of owners so it had bee8n VERY hard to get a true feel for all this HAPPINESS they speak of. None I have spoken to when at TMC have been happy. There were people who wanted to maintain a good reputation so they could potentially sell and get their money back. I can assure you that NO OWNERS are happy about the maintenance fees.

TMC Representatives are now working so hard to get people to deposit their time with RCI that at least one couple was visited WHILE OUT of STATE ON VACATION to be convinced to partake in this. Also, there is now a $0 to $100 "take back" offer by TMC for one of two reasons. First, they want to resell high end ownerships AGAIN for tens of thousands of dollars and second, despite THREATENING PHONE CALLS SEVERAL TIMES A DAY if fees aren't paid EARLY (WE'LL WREAK YOUR CREDIT), ONLY RECENTLY, after the lawsuit wasn't dismissed this time, they are taking units back that are in arrears to "get rid" of these troublesome people. Of course, they refused, in quite an interesting letter, to NOT take back our unit (we're paid up) because we filed lawsuits against them. Says so right in the letter. Is TMC Running a bit Scared, finally?

Regarding the Holy Grail aka The Offering Plan, ask the NYS Attorney General's office about the number of amendments that are continually filed, changing all types of things. Since owners NEVER GET COPIES OF THE CHANGES, we asked for copies under FOIA. In our case, the type of unit they sold us doesn't exist anymore. Just the amendments would cost hundreds of dollars at 10 cents per page (at the time) for only a few years of amendments! At the timeshare I own in Florida, we are sent any amendments to add to the offering plan. This other timeshare also does not REQUIRE ATTENDANCE AT THE ANNUAL OWNERS TIMESHARE BOARD MEETING TO VOTE FOR OWNER REPRESENTATIVES. This is so rigged at TMC that Management Personnel ALWAYS HOLDS THE Higher Positions!! We get proxy voting rights at my other timeshare and management does not hold ALL the strings. In addition at TMC, if any negative topics are brought up by owners, they are asked to leave!

Having to hire a Public Relations Specialist, in and if itself, is very telling. With all their threats of foreclosure and ruining credit (I keep recordings on my answering machine), how many times do they actually follow through? I haven't found any recent filings in Court Documents. In addition, there have been individual owners who have filed lawsuits for the same reasons, on close inspection of Court records. Frankly, I've stopped digging into the records due to exhaustion so am currently unaware of the outcomes.

Did you know that the major conglomerate, Textron, was part owner at TMC but dropped them? Eichner DID NOT DEVELOP ANYTHING IN LAS VEGAS! He bought what is now the Cosmopolitan, filed bankruptcy and Deutche Bank DEVELOPED THE HOTEL CASINO THEMSELVES and it is one of the MOST POPULAR places in Vegas, very high end. Eichner has done some very, very nasty things to people over the years to get his way (building a high rise in Brooklyn where the community had restrictions regarding blocking the view, doing the same thing in South Beach. The politicians he gave monies to in NYC are no longer the. Coincidence that the case hasn't been dismissed? And the other high rise in Manhattan (see Real Estate articles in several NYC business journals) in which he he made a mess for everyone...I think it is an ugly high rise apartment building downtown or close to that location. It's been a while since I addressed all these details in my investigations so my apologies for not being more specific.

Bottom line is that the people involved with TMC are crooks. I've already gotten a letter from one of their attorneys threatening a personal lawsuit for harassment, of all things, for speaking the truth. There's still more action that can be taken and we will be looking into that area. I'm really glad the AG's office was contacted by a third party. Hundreds of complaints have been filed in the past 10 years, even if they won't admit it.

Thanks to Redweek for having an Investigative Journalist cover this story!

And apologies for any typos, etc. I'm writing on my cell phone and cannot easily check for needed corrections.

Corinne Smith

Having trouble sifting through the sea of Manhattan Club complaints spanning several years, you're not alone. Lawsuits have been brought and dropped, but there is a case alive & well in the New York courts, with the next court date set for April 14, 2014.

Our reporter, Jeff Weir, dug into the details and has written this report on the current situation:

http://www.redweek.com/resources/ask-redweek/manhattan-club-lawsuit-info

Let us know what you think.

We will use this forum to post updates as often as we get them.

Update from Jeff Weir, who wrote the original article for us re: the Manhattan Club lawsuit:

The legal proceedings in the Manhattan Club case started heating up in April. After a public hearing to review the basic claims of the case, the trial court judge denied the defendants' motion to dismiss the entire lawsuit. Manhattan Club lawyers argued, unsuccessfully, that the new state case should be dismissed because two prior federal lawsuits had been thrown out of court. They also supplied the judge with counter-claims alleging that several of the owner plaintiffs don't have the proper legal standing to sue the Manhattan Club. In any case, after losing the original dismissal motion, Manhattan Club lawyers filed a formal appeal challenging the judge's ruling. While that appeal proceeds on its own legal course, the trial judge ordered both sides to start sharing documents in the "discovery" phase of the case. This pretrial phase is important because it will enable the plaintiffs, in particular, to review previously private Manhattan Club documents about the club's sales program and rental reservation policies. Those club documents, presumably, will either give plaintiffs material to prove their case or, conversely, support the defendants' claims that all owners received full and adequate disclosure about the club's operations when they purchased their timeshares. Barring a change in strategy or tactics from either side, the next formal hearing on the case is tentatively set for early September.

News from Attorney General Eric T. Schneiderman FOR IMMEDIATE RELEASE July 25, 2014 New York City Press Office / 212-416-8060 Albany Press Office / 518-473-5525 nyag.pressoffice@ag.ny.gov Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES COURT ORDER BARRING SALES IN MANHATTAN CLUB TIMESHARE HOTEL Order Temporarily Bars Developers From Selling Interests In The Timeshare Pending Fraud Investigation; Freezes Assets And Bars Targets From Foreclosing On Defrauded Purchasers

Schneiderman: Purchasers Duped Into Paying Tens Of Thousands Of Dollars To Become Owners; Later Denied Benefits Of Ownership In Alleged Bait-And-Switch Scam NEW YORK - Attorney General Eric T. Schneiderman today announced that he obtained a court order halting sales of timeshare interests at the Manhattan Club, a luxury hotel in Midtown Manhattan. The order by a Manhattan Supreme Court Justice requires that the club's principals, Ian Bruce Eichner, Leslie H. Eichner, and Stuart P. Eichner, testify in court about the club's practices and produce documents to the Attorney General's Real Estate Finance Bureau about allegedly fraudulent sales tactics. The order also bars the corporations through which the club and the developers act from draining bank accounts connected to the hotel during the investigation. The Manhattan Club is further barred from foreclosing on timeshare purchasers, who the Attorney General alleges were lured into investing with false promises.

The Attorney General's investigation was spurred by complaints from people who paid tens of thousands of dollars to become Manhattan Club "owners" but have been unable to make reservations due to a claimed lack of available rooms by the hotel's operators. At the same time, rooms in the Manhattan Club are being rented over the internet to the general public. About 14,000 people currently own timeshares in the hotel's 286 suites.

"When sellers use high-pressure tactics to sell timeshares, consumers should be wary that they may not be getting what they were promised. We allege that the Manhattan Club, near New York City's iconic Carnegie Hall, is a particularly stark example of such a bait-and-switch timeshare scheme," Attorney General Schneiderman said. "We will use all the tools at our disposal to protect customers from unscrupulous scammers and predatory businesses and hold New York developers to the promises they make, whether orally, in their sales pitches or in their formal offering plans."

The Manhattan Club's website bills the 200 West 56th Street accommodation as a "unique" "residence-style boutique hotel" that blends "a vacation ownership retreat with a luxury suite hotel" and that offers "a hard-to-find haven in the midst of this active city." The website appeals to people who "frequently visit New York City to enjoy Broadway theatre, fine dining and shopping, [and] classical performances."

In April and May, the Attorney General sent undercover investigators to record the Manhattan Club's "Vacation Ownership Experience" sales presentation, held at the club. As alleged in court papers filed by the Attorney General's office, investigators found evidence indicating that the Manhattan Club's sales tactics amounted to a bait-and-switch scheme. Prospective purchasers were baited by a relentless sales pitch that includes a number of misleading promises, including that ownership in the Manhattan Club is "better than money in the bank." Prospective buyers were also allegedly told that the club does not rent rooms to the general public, that reservations are easy to make, and that few restrictions apply to reservations by owners.

The papers alleged that the switch comes after a purchase agreement is signed, when a new owner learns from an offering plan -- which was illegally withheld prior to the purchase -- about the difference between what they were promised in the sales presentation and what they actually bought. For example, contrary to the club's explicit promises, room availability to owners is limited by the renting of rooms to the general public. That means that all reservations are subject to availability and owners, in some cases, have not been able to use any of the time they purchased. Further, the owners' annual common charges have jumped approximately 200% in the last ten years-- to about $2,000 per ownership interest per year. Some frustrated owners have sold their ownership interests back for a mere $1, just to escape the burdens of paying these charges. Issued pursuant to General Business Law section 354, a provision of New York's Martin Act that confers broad powers on the Attorney General to investigate and halt fraud, the court order bars the Manhattan Club from selling timeshare interests, prevents them from withdrawing money from certain bank accounts, and stops them from foreclosing on Manhattan Club purchasers during the pendency of the investigation. The order also compels the Manhattan Club's principals, Ian Bruce Eichner, Leslie H. Eichner, Stuart P. Eichner to testify about the club's practices. Other respondents named in the order, agents and corporations involved in the club's operations, are Scott L. Lager, T. Park Central LLC, O. Park Central LLC, Manhattan Club Marketing Group LLC, and New York Urban Ownership Management LLC.

A copy of the court order can be viewed here.

For information about timeshare, home improvement and vacation scams and how to protect yourself, click here for the Attorney General's brochure "Don't Get Burned: Attorney General's Guide To Protecting New Yorkers From Summer Scams." Deputy Chief Investigator John McManus from the Attorney General's office is the lead investigator assigned to this case. The Investigations Bureau is led by Chief Investigator Dominick Zarella. Sylvia Rivera, Karon Richardson, Louis Carter, Richard Friedman and John Serrapica, all of the Investigations Bureau, also assisted in the investigation.

This case is being handled by Assistant Attorney General Serwat Farooq, Deputy Chief Andrew H. Meier, and Bureau Chief Erica F. Buckley, all of the Real Estate Finance Bureau, as well as Executive Deputy Attorney General for Economic Justice Karla G. Sanchez. Law Interns Jessica Eng and Robert Volynsky also assisted in the investigation.

Please keep me informed concerning the New York Attorney General Subpoena gaining info from the Manhattan Clubs potential "Bait and switch," accusations.

Please keep me updated

I would jump on this band wagon in a New York minute. I have been an unhappy owner from 2001. Love the location, but hate trying to book a day or two down there. Please let me know how I can get in on the lawsuit.

Thanks, DP

darylp23 wrote:

I would jump on this band wagon in a New York minute. I have been an unhappy owner from 2001. Love the location, but hate trying to book a day or two down there. Please let me know how I can get in on the lawsuit.

Thanks, DP

daryl..p23 to get "in" on the lawsuit, be SURE/CERTAIN to make your legitimate complaints, eg, exorbitant maintenance fees, reservation difficulties consistently, et al, known to ERIC SCHNEIDERMAN, NEW YORK STATE ATTORNEY GENERAL. also, look up irene smalls in this redweek forum for further suggestions on what else you can do to further our cause: i believe the official court case is entitled NYS ATTORNEY GENERAL VS THE MANHATTAN CLUB. a really effective service is, for anyone who knows how, to get the names and contact information of all shareholders/owners at THE MANHATTAN CLUB, many of whom might not even be aware that there is a lawsuit that is currently in litigation initiated by our NYS ATTORNEY GENERAL, ERIC SCHNERDERMAN. by the waY, MR SCHNEIDERMAN has obtained a court order for the THE MANHATTAN CLUB TO CEASE ANY AND ALL SALES AND PROMOTIONS OF THE MANHATTAN CLUB TIMESHARES UNTIL THE COURT CASE HAS BEEN SETTLED.

keep in touch.

chris cfox863@gmail.com

Thanks for the info Chris.

kyliec wrote:

News from Attorney General Eric T. Schneiderman FOR IMMEDIATE RELEASE July 25, 2014 New York City Press Office / 212-416-8060 Albany Press Office / 518-473-5525 nyag.pressoffice@ag.ny.gov Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES COURT ORDER BARRING SALES IN MANHATTAN CLUB TIMESHARE HOTEL

Order Temporarily Bars Developers From Selling Interests In The Timeshare Pending Fraud Investigation; Freezes Assets And Bars Targets From Foreclosing On Defrauded Purchasers

Schneiderman: Purchasers Duped Into Paying Tens Of Thousands Of Dollars To Become Owners; Later Denied Benefits Of Ownership In Alleged Bait-And-Switch Scam

NEW YORK - Attorney General Eric T. Schneiderman today announced that he obtained a court order halting sales of timeshare interests at the Manhattan Club, a luxury hotel in Midtown Manhattan. The order by a Manhattan Supreme Court Justice requires that the club's principals, Ian Bruce Eichner, Leslie H. Eichner, and Stuart P. Eichner, testify in court about the club's practices and produce documents to the Attorney General's Real Estate Finance Bureau about allegedly fraudulent sales tactics. The order also bars the corporations through which the club and the developers act from draining bank accounts connected to the hotel during the investigation. The Manhattan Club is further barred from foreclosing on timeshare purchasers, who the Attorney General alleges were lured into investing with false promises.

The Attorney General's investigation was spurred by complaints from people who paid tens of thousands of dollars to become Manhattan Club "owners" but have been unable to make reservations due to a claimed lack of available rooms by the hotel's operators. At the same time, rooms in the Manhattan Club are being rented over the internet to the general public. About 14,000 people currently own timeshares in the hotel's 286 suites.

"When sellers use high-pressure tactics to sell timeshares, consumers should be wary that they may not be getting what they were promised. We allege that the Manhattan Club, near New York City's iconic Carnegie Hall, is a particularly stark example of such a bait-and-switch timeshare scheme," Attorney General Schneiderman said. "We will use all the tools at our disposal to protect customers from unscrupulous scammers and predatory businesses and hold New York developers to the promises they make, whether orally, in their sales pitches or in their formal offering plans."

The Manhattan Club's website bills the 200 West 56th Street accommodation as a "unique" "residence-style boutique hotel" that blends "a vacation ownership retreat with a luxury suite hotel" and that offers "a hard-to-find haven in the midst of this active city." The website appeals to people who "frequently visit New York City to enjoy Broadway theatre, fine dining and shopping, [and] classical performances."

In April and May, the Attorney General sent undercover investigators to record the Manhattan Club's "Vacation Ownership Experience" sales presentation, held at the club. As alleged in court papers filed by the Attorney General's office, investigators found evidence indicating that the Manhattan Club's sales tactics amounted to a bait-and-switch scheme. Prospective purchasers were baited by a relentless sales pitch that includes a number of misleading promises, including that ownership in the Manhattan Club is "better than money in the bank." Prospective buyers were also allegedly told that the club does not rent rooms to the general public, that reservations are easy to make, and that few restrictions apply to reservations by owners.

The papers alleged that the switch comes after a purchase agreement is signed, when a new owner learns from an offering plan -- which was illegally withheld prior to the purchase -- about the difference between what they were promised in the sales presentation and what they actually bought. For example, contrary to the club's explicit promises, room availability to owners is limited by the renting of rooms to the general public. That means that all reservations are subject to availability and owners, in some cases, have not been able to use any of the time they purchased. Further, the owners' annual common charges have jumped approximately 200% in the last ten years-- to about $2,000 per ownership interest per year. Some frustrated owners have sold their ownership interests back for a mere $1, just to escape the burdens of paying these charges.

Issued pursuant to General Business Law section 354, a provision of New York's Martin Act that confers broad powers on the Attorney General to investigate and halt fraud, the court order bars the Manhattan Club from selling timeshare interests, prevents them from withdrawing money from certain bank accounts, and stops them from foreclosing on Manhattan Club purchasers during the pendency of the investigation. The order also compels the Manhattan Club's principals, Ian Bruce Eichner, Leslie H. Eichner, Stuart P. Eichner to testify about the club's practices.

Other respondents named in the order, agents and corporations involved in the club's operations, are Scott L. Lager, T. Park Central LLC, O. Park Central LLC, Manhattan Club Marketing Group LLC, and New York Urban Ownership Management LLC.

A copy of the court order can be viewed here.

For information about timeshare, home improvement and vacation scams and how to protect yourself, click here for the Attorney General's brochure "Don't Get Burned: Attorney General's Guide To Protecting New Yorkers From Summer Scams."

Deputy Chief Investigator John McManus from the Attorney General's office is the lead investigator assigned to this case. The Investigations Bureau is led by Chief Investigator Dominick Zarella. Sylvia Rivera, Karon Richardson, Louis Carter, Richard Friedman and John Serrapica, all of the Investigations Bureau, also assisted in the investigation.

This case is being handled by Assistant Attorney General Serwat Farooq, Deputy Chief Andrew H. Meier, and Bureau Chief Erica F. Buckley, all of the Real Estate Finance Bureau, as well as Executive Deputy Attorney General for Economic Justice Karla G. Sanchez. Law Interns Jessica Eng and Robert Volynsky also assisted in the investigation.

kyliec, this information is over 2 months old. i appreciate jeff's reporting efforts; however, regardless of the amount of information available about THE MAHHATTAN CLUB/NYS ATTORNEY GENERAL LAWSUIT, reportage should be on a regular and timely basis, at least weekly. even if there is "nothing new currently available about the lawsuit," we should be made aware of that regularly as well.

Hi chrisv126, I apologize... Jeff has been posting his updates on the other, more active Manhattan Club forum. We will work on streamlining the communication.

Thanks for letting me know - Kylie

Just posted an update to the intro post on this forum in order to keep the most current info visible without needing to scroll through the forum posts. Things moving along... Manhattan Club able to pay salaries, still not able to do new timeshare sales. Their Web site has removed mention of sales, which would indicate they're complying.

kyliec wrote:

Just posted an update to the intro post on this forum in order to keep the most current info visible without needing to scroll through the forum posts. Things moving along... Manhattan Club able to pay salaries, still not able to do new timeshare sales. Their Web site has removed mention of sales, which would indicate they're complying.

it's just fine that the principals of THE MANHATTAN CLUB (eichner and gang) are "complying." however, the progress (or lack thereof) of this litigation is apparently being kept a mystery. information about this lawsuit brought on by our NEW YORK STATE ATTORNEY GENERAL, ERIC SCHNEIDERMAN should be public knowledge, available to the public and in particular those of us MANHATTAN CLUB shareholders who have been cheated and scammed by the principals involved.

how do we get information about this litigation available to us, and why do we have to go through all kinds of begging in order to get the facts we deserve?

Chris: your frustration is palpable and totally understandable. What you need to know is that all court records filed in the AG's case are public and viewable on the NY Supreme Court website. There have been no filings since Sept. 4. The AG's office, even when called by members of the news media, does not give updates beyond what is already on the record. Bottom line, they move at their own pace and disclose what they want in their own time frame --- meaning, what best suits the AG. Moreover, this is not their only case; they have many. It is absolutely frustrating that they are NOT making more of an effort to provide weekly or semi-weekly updates to owners, but that is not their priority. Bottom line, the AG has not decided what to do with the Manhattan Club case. I would suggest that as a member of the public, you are entitled to meaningful updates about the case, and you are fully within your rights to call the AG's office to make those requests. You pay their salaries, after all, and are justified in seeking accountability. If I owned a timeshare in the Manhattan Club, I'd organize a rally in front of the AG's Manhattan Office seeking an audience with the head of the department handling this case. And I'd inform the NY media in advance that I represent a group of taxpayers who are simply requesting straightforward answers to their questions. I'd ask the same group of participating owners to picket outside the Manhattan Club itself to draw additional attention to your cause. Or, I might contact the National Timeshare Owners Association to see if they would help in dramatizing the case. However, I am not giving advice. The only certainty I can offer is that RedWeek.com will keep reporting on this case when there are things to report.

chrisv126 wrote:

kyliec wrote:

Just posted an update to the intro post on this forum in order to keep the most current info visible without needing to scroll through the forum posts. Things moving along... Manhattan Club able to pay salaries, still not able to do new timeshare sales. Their Web site has removed mention of sales, which would indicate they're complying.

it's just fine that the principals of THE MANHATTAN CLUB (eichner and gang) are "complying." however, the progress (or lack thereof) of this litigation is apparently being kept a mystery. information about this lawsuit brought on by our NEW YORK STATE ATTORNEY GENERAL, ERIC SCHNEIDERMAN should be public knowledge, available to the public and in particular those of us MANHATTAN CLUB shareholders who have been cheated and scammed by the principals involved.

how do we get information about this litigation available to us, and why do we have to go through all kinds of begging in order to get the facts we deserve?

this is for jeff w.

jeff, thanks for your efforts and updates. i realize your frustrations concerning the snail's-pace speed of info from the NYSAG'S office. hopefully you'll continue to post your reportage of whatever info regarding THE MANHATTAN CLUB case you're able to gather.

keep in touch............1+6313682895

chris volpe

jeff_reports wrote:

Chris: your frustration is palpable and totally understandable. What you need to know is that all court records filed in the AG's case are public and viewable on the NY Supreme Court website. There have been no filings since Sept. 4. The AG's office, even when called by members of the news media, does not give updates beyond what is already on the record. Bottom line, they move at their own pace and disclose what they want in their own time frame --- meaning, what best suits the AG. Moreover, this is not their only case; they have many. It is absolutely frustrating that they are NOT making more of an effort to provide weekly or semi-weekly updates to owners, but that is not their priority. Bottom line, the AG has not decided what to do with the Manhattan Club case. I would suggest that as a member of the public, you are entitled to meaningful updates about the case, and you are fully within your rights to call the AG's office to make those requests. You pay their salaries, after all, and are justified in seeking accountability. If I owned a timeshare in the Manhattan Club, I'd organize a rally in front of the AG's Manhattan Office seeking an audience with the head of the department handling this case. And I'd inform the NY media in advance that I represent a group of taxpayers who are simply requesting straightforward answers to their questions. I'd ask the same group of participating owners to picket outside the Manhattan Club itself to draw additional attention to your cause. Or, I might contact the National Timeshare Owners Association to see if they would help in dramatizing the case. However, I am not giving advice. The only certainty I can offer is that RedWeek.com will keep reporting on this case when there are things to report.

chrisv126 wrote:

kyliec wrote:

Just posted an update to the intro post on this forum in order to keep the most current info visible without needing to scroll through the forum posts. Things moving along... Manhattan Club able to pay salaries, still not able to do new timeshare sales. Their Web site has removed mention of sales, which would indicate they're complying.

it's just fine that the principals of THE MANHATTAN CLUB (eichner and gang) are "complying." however, the progress (or lack thereof) of this litigation is apparently being kept a mystery. information about this lawsuit brought on by our NEW YORK STATE ATTORNEY GENERAL, ERIC SCHNEIDERMAN should be public knowledge, available to the public and in particular those of us MANHATTAN CLUB shareholders who have been cheated and scammed by the principals involved.

how do we get information about this litigation available to us, and why do we have to go through all kinds of begging in order to get the facts we deserve?

jeff wier, this is an election year, and with the election for NYSAG just a short time away, it seems that mr schneiderman should be satisfying as many eligible voters as he possibly can with such a formidable opponent, JOHN CAHILL, in the race. we should all be kept reasonably informed of the proceedings between THE NEW YORK STATE ATTORNEY GENERAL AND THE MANHATTAN CLUB.

jeff_reports wrote:

Chris: your frustration is palpable and totally understandable. What you need to know is that all court records filed in the AG's case are public and viewable on the NY Supreme Court website. There have been no filings since Sept. 4. The AG's office, even when called by members of the news media, does not give updates beyond what is already on the record. Bottom line, they move at their own pace and disclose what they want in their own time frame --- meaning, what best suits the AG. Moreover, this is not their only case; they have many. It is absolutely frustrating that they are NOT making more of an effort to provide weekly or semi-weekly updates to owners, but that is not their priority. Bottom line, the AG has not decided what to do with the Manhattan Club case. I would suggest that as a member of the public, you are entitled to meaningful updates about the case, and you are fully within your rights to call the AG's office to make those requests. You pay their salaries, after all, and are justified in seeking accountability. If I owned a timeshare in the Manhattan Club, I'd organize a rally in front of the AG's Manhattan Office seeking an audience with the head of the department handling this case. And I'd inform the NY media in advance that I represent a group of taxpayers who are simply requesting straightforward answers to their questions. I'd ask the same group of participating owners to picket outside the Manhattan Club itself to draw additional attention to your cause. Or, I might contact the National Timeshare Owners Association to see if they would help in dramatizing the case. However, I am not giving advice. The only certainty I can offer is that RedWeek.com will keep reporting on this case when there are things to report.

chrisv126 wrote:

kyliec wrote:

Just posted an update to the intro post on this forum in order to keep the most current info visible without needing to scroll through the forum posts. Things moving along... Manhattan Club able to pay salaries, still not able to do new timeshare sales. Their Web site has removed mention of sales, which would indicate they're complying.

it's just fine that the principals of THE MANHATTAN CLUB (eichner and gang) are "complying." however, the progress (or lack thereof) of this litigation is apparently being kept a mystery. information about this lawsuit brought on by our NEW YORK STATE ATTORNEY GENERAL, ERIC SCHNEIDERMAN should be public knowledge, available to the public and in particular those of us MANHATTAN CLUB shareholders who have been cheated and scammed by the principals involved.

how do we get information about this litigation available to us, and why do we have to go through all kinds of begging in order to get the facts we deserve?

News from Attorney General Eric T. Schneiderman FOR IMMEDIATE RELEASE October 15, 2014 New York City Press Office / 212-416-8060 Albany Press Office / 518-473-5525 nyag.pressoffice@ag.ny.gov Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES AGREEMENTS WITH MAJOR HOSPITALITY COMPANIES TO PROTECT NEW YORKERS FROM MISLEADING TIMESHARE PRACTICES

Hilton Resorts Corporation And Wyndham Vacation Resorts, Inc., Separately Agree To End Potentially Misleading Practices That Fail To Protect Consumers

Schneiderman: My Office Is Committed To Protecting Purchasers Of Timeshares And Working With Industry Leaders

NEW YORK – Attorney General Eric T. Schneiderman today announced that he has reached a pair of agreements with two leading hospitality companies - Hilton Resorts Corporation and Wyndham Vacation Resorts, Inc. – that will help protect purchasers of timeshares from potential deception and confusion.

“The purchase of an interest in a timeshare can be a confusing and expensive proposition,” Attorney General Schneiderman said. “I am pleased to announce that these two industry leaders have agreed to make policy changes that will benefit and protect consumers. With their cooperation, we are making the timeshare industry safer, more transparent, and more accessible to investors.”

In the first agreement, Hilton agreed to stop using a clause in its timeshare purchase agreement that disclaimed responsibility for specific representations made by salespeople, particularly regarding the availability of reservations, hotel use rights, and the rental, resale, and buybacks of timeshare interests.

In the second agreement, Wyndham agreed to stop offering reservation certificates, which allow members of its internal timeshare exchange program to make advance reservations at a timeshare hotel known as Midtown 45, prior to the acceptance for filing of the Midtown 45 offering plan. These certificates were given to purchasers of timeshares in other Wyndham properties, and they led some of those consumers to believe they were purchasing an interest in the Midtown 45 timeshare.

Sellers of timeshares are subject to New York’s Martin Act, which makes it unlawful to offer and sell timeshare interests in or from New York State without first having an offering plan or prospectus accepted for filing by the Attorney General’s Real Estate Finance Bureau. The law also makes it illegal to make representations in the sales process that are contradictory to the disclosures contained in the offering plan or prospectus.

The agreements come as the Attorney General’s Office continues to investigate sales and marketing practices of another timeshare company, known as the Manhattan Club. In July, the Attorney General obtained a court order preliminarily barring sales at the Manhattan Club pending an investigation into that company. More information about the investigation is available here.

The negotiations with Hilton and Wyndham were conducted by Assistant Attorney General Serwat Farooq, Deputy Chief Andrew H. Meier, and Bureau Chief Erica F. Buckley, all of the Real Estate Finance Bureau, as well as Executive Deputy Attorney General for Economic Justice Karla G. Sanchez. ###

kyliec wrote:

News from Attorney General Eric T. Schneiderman FOR IMMEDIATE RELEASE October 15, 2014 New York City Press Office / 212-416-8060 Albany Press Office / 518-473-5525 nyag.pressoffice@ag.ny.gov Twitter: @AGSchneiderman

A.G. SCHNEIDERMAN ANNOUNCES AGREEMENTS WITH MAJOR HOSPITALITY COMPANIES TO PROTECT NEW YORKERS FROM MISLEADING TIMESHARE PRACTICES

Hilton Resorts Corporation And Wyndham Vacation Resorts, Inc., Separately Agree To End Potentially Misleading Practices That Fail To Protect Consumers

Schneiderman: My Office Is Committed To Protecting Purchasers Of Timeshares And Working With Industry Leaders

NEW YORK – Attorney General Eric T. Schneiderman today announced that he has reached a pair of agreements with two leading hospitality companies - Hilton Resorts Corporation and Wyndham Vacation Resorts, Inc. – that will help protect purchasers of timeshares from potential deception and confusion.

“The purchase of an interest in a timeshare can be a confusing and expensive proposition,” Attorney General Schneiderman said. “I am pleased to announce that these two industry leaders have agreed to make policy changes that will benefit and protect consumers. With their cooperation, we are making the timeshare industry safer, more transparent, and more accessible to investors.”

In the first agreement, Hilton agreed to stop using a clause in its timeshare purchase agreement that disclaimed responsibility for specific representations made by salespeople, particularly regarding the availability of reservations, hotel use rights, and the rental, resale, and buybacks of timeshare interests.

In the second agreement, Wyndham agreed to stop offering reservation certificates, which allow members of its internal timeshare exchange program to make advance reservations at a timeshare hotel known as Midtown 45, prior to the acceptance for filing of the Midtown 45 offering plan. These certificates were given to purchasers of timeshares in other Wyndham properties, and they led some of those consumers to believe they were purchasing an interest in the Midtown 45 timeshare.

Sellers of timeshares are subject to New York’s Martin Act, which makes it unlawful to offer and sell timeshare interests in or from New York State without first having an offering plan or prospectus accepted for filing by the Attorney General’s Real Estate Finance Bureau. The law also makes it illegal to make representations in the sales process that are contradictory to the disclosures contained in the offering plan or prospectus.

The agreements come as the Attorney General’s Office continues to investigate sales and marketing practices of another timeshare company, known as the Manhattan Club. In July, the Attorney General obtained a court order preliminarily barring sales at the Manhattan Club pending an investigation into that company. More information about the investigation is available here.

The negotiations with Hilton and Wyndham were conducted by Assistant Attorney General Serwat Farooq, Deputy Chief Andrew H. Meier, and Bureau Chief Erica F. Buckley, all of the Real Estate Finance Bureau, as well as Executive Deputy Attorney General for Economic Justice Karla G. Sanchez. ###

where it says "click here" for info on the lawsuit, this is stale news from july 25, 2014. where can we shareholders find the NYSAG'S/MANHATTAN CLUB LITIGATION NEWS that is much more current than the aforementioned july 25 summation? hey gang, it's october 15! unless i missed something between july and now, WE'RE STILL IN THE DARK, and our future plans/actions concerning THE MANHATTAN CLUB are still up in the air. without this information we're still MANHATTAN CLUB VICTIMS of alleged fraudulent schemes that they've been able to bandy about without penalty. WHAT GIVES MR SCHNEIDERMAN? KEEP US POSTED. without your intervention we're still being squashed and defrauded. KNOWLEDGE IS POWER, and you're in a position to offer shareholders information which might empower us to get what we paid for (and are continuing to pay for through the exorbitant maintenance fees, and unavailable or difficult-to-get reservations) from THE MANHATTAN CLUB.

I've just spoken to Atty. Blau, who apparently represented Corrine, unsucessfully in the past. He believes that at best the Atty. General willget to fine MC and there will be no help for the owners. He suggested a class action suit, which if it included 40 owners who bought in 2014 and 2013, for around $5,000 each to him, a lot of money, he could go forward. Anyone interested? Bob Figman email:rfigman23@gmail.com

corinnes25 wrote:

I am the person who originally found Mr. Blau and my spouse and I were lead plaintiffs in the first lawsuit filings, one in Federal Court so ALL owners would be represented in the class (which I strongly believe was only dismissed because of the judge having a connection with Eichner) and the second which was also a State Supreme Court case like the current case, with me as lead plaintiff, which was dismissed & wasn't even looked at because my name was there. The Court papers say that the dismissal was because I'm married to the person under which the Federal Case was dismissed. The merits weren't even looked at in that first State Supreme Court suit! I have copies of the paperwork.

Secondly, there is no list of owners so it had bee8n VERY hard to get a true feel for all this HAPPINESS they speak of. None I have spoken to when at TMC have been happy. There were people who wanted to maintain a good reputation so they could potentially sell and get their money back. I can assure you that NO OWNERS are happy about the maintenance fees.

TMC Representatives are now working so hard to get people to deposit their time with RCI that at least one couple was visited WHILE OUT of STATE ON VACATION to be convinced to partake in this. Also, there is now a $0 to $100 "take back" offer by TMC for one of two reasons. First, they want to resell high end ownerships AGAIN for tens of thousands of dollars and second, despite THREATENING PHONE CALLS SEVERAL TIMES A DAY if fees aren't paid EARLY (WE'LL WREAK YOUR CREDIT), ONLY RECENTLY, after the lawsuit wasn't dismissed this time, they are taking units back that are in arrears to "get rid" of these troublesome people. Of course, they refused, in quite an interesting letter, to NOT take back our unit (we're paid up) because we filed lawsuits against them. Says so right in the letter. Is TMC Running a bit Scared, finally?

Regarding the Holy Grail aka The Offering Plan, ask the NYS Attorney General's office about the number of amendments that are continually filed, changing all types of things. Since owners NEVER GET COPIES OF THE CHANGES, we asked for copies under FOIA. In our case, the type of unit they sold us doesn't exist anymore. Just the amendments would cost hundreds of dollars at 10 cents per page (at the time) for only a few years of amendments! At the timeshare I own in Florida, we are sent any amendments to add to the offering plan. This other timeshare also does not REQUIRE ATTENDANCE AT THE ANNUAL OWNERS TIMESHARE BOARD MEETING TO VOTE FOR OWNER REPRESENTATIVES. This is so rigged at TMC that Management Personnel ALWAYS HOLDS THE Higher Positions!! We get proxy voting rights at my other timeshare and management does not hold ALL the strings. In addition at TMC, if any negative topics are brought up by owners, they are asked to leave!

Having to hire a Public Relations Specialist, in and if itself, is very telling. With all their threats of foreclosure and ruining credit (I keep recordings on my answering machine), how many times do they actually follow through? I haven't found any recent filings in Court Documents. In addition, there have been individual owners who have filed lawsuits for the same reasons, on close inspection of Court records. Frankly, I've stopped digging into the records due to exhaustion so am currently unaware of the outcomes.

Did you know that the major conglomerate, Textron, was part owner at TMC but dropped them? Eichner DID NOT DEVELOP ANYTHING IN LAS VEGAS! He bought what is now the Cosmopolitan, filed bankruptcy and Deutche Bank DEVELOPED THE HOTEL CASINO THEMSELVES and it is one of the MOST POPULAR places in Vegas, very high end. Eichner has done some very, very nasty things to people over the years to get his way (building a high rise in Brooklyn where the community had restrictions regarding blocking the view, doing the same thing in South Beach. The politicians he gave monies to in NYC are no longer the. Coincidence that the case hasn't been dismissed? And the other high rise in Manhattan (see Real Estate articles in several NYC business journals) in which he he made a mess for everyone...I think it is an ugly high rise apartment building downtown or close to that location. It's been a while since I addressed all these details in my investigations so my apologies for not being more specific.

Bottom line is that the people involved with TMC are crooks. I've already gotten a letter from one of their attorneys threatening a personal lawsuit for harassment, of all things, for speaking the truth. There's still more action that can be taken and we will be looking into that area. I'm really glad the AG's office was contacted by a third party. Hundreds of complaints have been filed in the past 10 years, even if they won't admit it.

Thanks to Redweek for having an Investigative Journalist cover this story!

And apologies for any typos, etc. I'm writing on my cell phone and cannot easily check for needed corrections.

Corinne Smith

Having trouble sifting through the sea of Manhattan Club complaints spanning several years, you're not alone. Lawsuits have been brought and dropped, but there is a case alive & well in the New York courts, with the next court date set for April 14, 2014.

Our reporter, Jeff Weir, dug into the details and has written this report on the current situation:

http://www.redweek.com/resources/ask-redweek/manhattan-club-lawsuit-info

Let us know what you think.

We will use this forum to post updates as often as we get them.

After a sleazy sales presentation at The Hilton on 53rd and 6th- a "owners suite point system", I thankfully told them no thanks. I really liked the idea of a timeshare in NYC, so looked at the Manhattan club. Thankfully I goggled the club, and see that this is also another "scam". I feel for all the owners who were duped, and realize now that "renting", be it a hotel suite, or from a one time apartment owner(lots of sites that do just that) is the way to go!