Manhattan Club Lawsuit

From what I have read here and my own experience with the bogus mortgages, I would not be surprised if the MC took the owners' money and is also showing the notes as assets on their books. Who would be surprised? I demanded that they record a satisfaction of the mortgage and they refused, citing the AG action. I told them that they were prohibited from selling shares, not from clearing title that they had slandered. I suggested that they confirm with their own counsel. No response, of course. I encourage the rest of you to demand a recorded satisfaction and to advise the AG of this situation.

deborahn127: thank you very much for your posts.

My MC purchase was paid in full within a month after purchase in 2007. I signed the mortgage assignment at the sales pitch under pressure though option to pay in full was discussed and I was promised that my docs would be updated/replaced with full payment info.

This has never happened; back then I did not doubt the MC business and did not pay attention.

Two years later, in 2009, I found access to ACRIS and was amazed with the mortgage record which was filed 7 months later after the purchase date. I sent several letters and emails to MC demanding to provide ACRIS with the correct info, no results were achieved.

Five years since, in 2014 I decided to resolve the issue and contacted the MC Finance Department several times. They sent me a MC letter that my mortgage was paid in full. No signature, no date of full payment. Having contacted ACRIS, I was told that the recorded satisfaction from MC was required. I demanded MC to update the ACRIS records. Finally, when accessing ACRIS somewhere in the middle of 2014, I found out that the letter of satisfaction has been recorded.

The Satisfaction of Mortgage date was provided fraudulently as "01.08.2014'" and it was filed with ACRIS on 01.29.2014.

In the ACRIS Exhibit 'A' - Schedule of Mortgages- it was documented that I purchased a Mortgage that was assigned to O. Park Central and transferred to Textron Financial Corporation and it was back transferred to O. Park Central as Collateral Receivables in 2009. When I contacted the Textron, they refused to provide any information.

I am ready to contract the Textron and ACRIS on bogus mortgage. Your professional info would be highly appreciated. PLZ send your correspondence with ACRIS to fibonacci1212@gmail.com.

Great letter! Hope somebody at the Bureau has the guts to do something.

cynthias402 wrote:

I don't see Ms. Heredia listed in the RE Finance Bureau. Are you sure this is correct contact info?

Yes, we are confident in the contact information for Brenda...

Kylie

fibon, I certainly hope you have passed your very detailed information onto Brenda Heredia at the NY AG's office. When I read what you, deborahn127, irenes93, and garys186 have written, it seems clear that TMC is up to something fraudulent in these early paid-off mortgages. The billionaire crooks who own TMC are using or selling the mortgages to make yet more money for themselves. I sent an email to Brenda Heredia at the email address given by RedWeek.com staff kyliec on Feb 23, and received an email reply back from Brenda H. the same day, acknowledging my claims and advising they will be looked at by the AG's office. I live in Arizona, so not a NY state resident. I think your clear details of obvious wrongs by TMC in your paid up mortgage would give great fuel to the NY AG's fire and may lead the AG to an area of TMC fraud they were previously unaware of. It may help put TMC out of business or throw the CEO in jail. Happy thoughts. I urge all of you to email Brenda.Heredia@ag.ny.gov asap with these details of fraud regarding your paid-in-full mortgages. That's too many to be accidental.

I am not sure that putting TMC out of business would be a good thing for the 18,000 owners. Resolving these issues will be complicated because there are so many owners with differing goals here.

It's unlikely that any of us will benefit by closing down The Manhattan Club. Seeing a sign at the front door that says, "Under New Management" would be a good step though.

Thank you for your message. I could not get to the ACRIS web site through the link that you provided, but the following address worked: http://a836-acris.nyc.gov/CP/ . I hope this information is useful to others.

deborahn127 wrote:

Property record information is available online for Manhattan. http://www1.nyc.gov/nyc-resources/service/2266/property-record-information you will be directed though this link. I printed out my deed and my bogus mortgage.

Thanks, I got it. She wasn't listed on the NYAG Website contact list. But, she did reply to my email. Maybe she's new.

I just checked my 2 property deeds online through http://a836-acris.nyc.gov/CP/ and got this address as part of both deeds: "the entire lot of 1335 @ 870 7 AVENUE, unit 1508" along with "the partial lot of 200 W 56th unit 2307". Both identical deeds are dated October 24, 2008. My first purchases was in April 2002 and the second in October 2007. Isn't it interesting that 870 7th Ave is Park Central and I apparently own outright unit 1508 twice according to the 2 deeds, They should be sending me checks for the rentals!

You need to look at the legal description, not the address on the deed. It should say that you own 1/52 or 1/104 or some fractional interest of some unit.

Devout followers of the Manhattan Club legal case may find the following information instructive:

On Feb. 25, the Manhattan Club principals --- Ian Bruce Eichner, Leslie Eichner, Stuart Eichner and their affiliated companies --- filed a substitution of attorneys document with the New York Supreme Court. No big deal by itself. What is interesting is who is "subbing in" for the former attorneys. The new lead in this case, representing the Manhattan Club, is Gerald L. Shargel, a prominent NY attorney who specializes in criminal trial litigation cases. To repeat, his specialty is criminal defense, not real estate timeshare cases, not civil litigation.

Here are excerpts from Shargel's biography on his firm's website, which portrays him as one of the best criminal defense attorneys in the country. The firm is Winston & Strawn.

"Partner Gerald L. Shargel is one of the most accomplished and well-known defenders in serious criminal cases both in New York and nationally. The New Yorker said he is considered “one of the most brilliant criminal defense attorneys in America… quite possibly the finest of his generation.” "Over more than 40 years, Mr. Shargel has defended numerous high-profile cases at the investigative, trial, and appellate levels. His cases cover a broad array of white-collar and non-white-collar crimes, and he has litigated matters before the most prominent judges in the key courts in New York. "Mr. Shargel was primarily a solo practitioner prior to joining Winston & Strawn and adding his unique experience in high-stakes trials to Winston’s existing litigation..."

You get the idea.

Owners can draw their own conclusions as to why the Eichners would hire an esteemed criminal defense attorney to represent them after a year of stupendously unsuccessful negotiations by their former attorneys with the NY Attorney General's office to resolve questions about the Manhattan Club's sales-and-reservations practices. The club's former attorneys were well known in NY legal circles, as well, for their expertise in handling complicated civil real estate matters.

RedWeek called Mr. Shargel this week and invited him to offer his (initial) perspectives on the Manhattan Club investigation. He did not respond.

Attorneys for both parties, presumably including Mr. Shargel or one of his representatives, will get their next day in court March 6 at a status conference with the court-appointed referee assigned to oversee the AG's yearlong investigation of possible fraud at the Manhattan Club.

I am paying my maintenance fees monthly. What would happen if I stop paying my fees? Thank you.

Both deeds state that I own 1/52 of same TMC unit recorded on the same 2008 date even though the purchases were 4/02 and 10/07.

kathleenf77 wrote:

I am paying my maintenance fees monthly. What would happen if I stop paying my fees? Thank you.

kathleenf77, (YES, ALL CAPS) I THINK YOUR QUESTION IS ONE ALL OF US OWNERS NEED AN ANSWER TO. WE NEED TO BE KEPT AWARE OF THE CONSEQUENCES OF OUR FINANCIAL ACTIONS CONCERNING OUR DEALINGS WITH THE MANHATTAN CLUB WHILE THIS LAWSUIT CONTINUES............TO ITS CONCLUSION. IF SOMEONE WITH TIMESHARE EXPERTISE OUT THERE IN INTERNET-LAND WOULD PLEASE HELP US BY SUMMARIZING THE CONSEQUENCES OF COMMON FINANCIAL DO'S AND DON'TS, IT WOULD BE BENEFICIAL TO MOST OF US OWNERS. WE NEED SOMEONE TO STEP FORWARD AND AND ASSIST US NOW.

WOW!!!! That's great news!!!! Seems like things are rolling in the right direction....

Could whoever had the info regarding the federal contact to register a complaint, please submit the info again? Sorry, but I want to submit a letter and can't find the info in back posts. Thanks.

Hi! These is the contact info:

The Attorney General's office is now following up with owners who have submitted written complaints. Many owners have spent over an hour on the phone with them, as a result - finally being heard. If you haven't submitted something in writing to them, you can still do so. The person in charge is:

Brenda Heredia of the Real Estate Finance Bureau, based in Manhattan. She can be reached at 212-416-8956; her fax is 212-416-8179. Her e-mail is: Brenda.Heredia@ag.ny.gov.

cynthias402 wrote:

Could whoever had the info regarding the federal contact to register a complaint, please submit the info again? Sorry, but I want to submit a letter and can't find the info in back posts. Thanks.

Hi,

Checking the NY Acris records my timeshare lot was deeded 114 times with numerous liens.

Here is a letter I wrote to the federal agency registering my complaint. Consumer Financial Protection Bureau 1700 G Street N.W. Washington, D.C. 20552 Re: Manhattan Club Timeshare Scam February 25, 2015

Dear Sir or Madam:

I am writing to request your agency open a federal investigation into the practices of the Manhattan Club and its related companies.

The Manhattan Club is a New York company I purchased a timeshare, deeded property, from twelve years ago. The Manhattan Club was presented by the salesperson as a solid investment appreciating in value. The Manhattan Club, timeshare only, was presented as offering ease in booking. Maintenance Fees were $500 per year and purported to go up no more than 10% a year. None of these claims proved to be true. The Manhattan Club rents 60% of its rooms through online hotel websites like Expedia and hotel.com. The TMC timeshare I purchased for $22,000 was actually worth $1. Maintenance fees skyrocketed 400%. The Manhattan Club oversold their 286 units to over 18,000 people. Additionally, the Manhattan Club sold blocks of their rooms outright to BlueGreen Timeshares, Disney and RCI without notifying TMC timeshare owners. The Manhattan Club made 88 revisions to their TMC offering plan without notifying owners. The phone book sized offering plan from my purchase was only sent two weeks after the timeshare sale, too late to cancel. Despite, the lack of room availability, the Manhattan Club has been vicious in its demand that all TMC owners pay maintenance fees. The Manhattan Club has hired collection agencies, lawyers and foreclosed on owners who refused to pay the exorbitant maintenance fees for which they received nothing in return. One owner sold a timeshare, he paid $90,000 for, to the Manhattan Club for $1. Unable to use his timeshare he refused to pay fees and wanted to avoid having his credit ruined.

Here is recent media on the Manhattan Club scam:

Hotel in Manhattan Ordered to Halt Sale of Time Shares :http://www.nytimes.com/2014/07/26/nyregion/manhattan-hotel-ordered-to-halt-sale-of-time-shares.html?_r=0 A.G. Schneiderman Announces Court Order Barring Sales In Manhattan Club Timeshare Hotel: http://www.ag.ny.gov/press-release/ag-schneiderman-announces-court-order-barring-sales-manhattan-club-timeshare-hotel Ritzy NYC time-share developer sued for fraud:http://www.crainsnewyork.com/article/20110713/real_estate/110719963/ritzy-nyc-time-share-developer-sued-for-fraud# Timeshare a hotel hell: suit: http://nypost.com/2013/12/01/timeshare-a-hotel-hell-suit/ Big midtown time-share ordered to suspend sales:http://www.crainsnewyork.com/article/20140725/REAL_ESTATE/140729888/big-midtown-timeshare-ordered-to-suspend-sales Swanky Manhattan Club timeshare a 'bait-and-switch' scheme, State Attorney General Eric Schneiderman says: http://www.nydailynews.com/new-york/nyc-crime/posh-manhattan-club-timeshare-scam-article-1.1880844

CNBC TV Special on TMC Scam http://youtu.be/tQiyeJhecDU

Here is the link to the press release issued by the Attorney General which outlines the charges against The Manhattan Club.

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-court-order-barring

The NY State Supreme Court issued an injunction against The Manhattan Club. The Manhattan Club is enjoined from selling any new timeshares, or draining its bank accounts or the bank accounts of its affiliated companies. Here is the link to the actual injunction issued by the court.

http://www.ag.ny.gov/pdfs/Order%20signed%207-24-2014.pdf

The focus of the New York Attorney General’s Manhattan Club investigation is TMC’s violation of New York State real estate laws. The AG’s investigation will not impact the thousands of defrauded TMC owners.

I ask that your agency open a federal investigation into the fraudulent practices of the Manhattan Club and its related companies. Of the 14,000-18,000 TMC owners most do not live in New York State. This makes TMC appropriate for a federal investigation.

Please feel free to contact me should you have any questions regarding this matter.

Irene Smalls

Dear Jeff,

Thank you so very much for this "heart-warming" information!

I started the original lawsuits and to see this happening, to see the Eichners, et al, obtaining a leading Criminal Defense attorney has to be the happiest news during the past 6 years of hell! Yes, without confirmation we must draw our own conclusions, so I'm choosing to conclude that THEY ARE FINALLY SCARED!

Having been PERSONALLY threatened by their attorney at Starr Associates after I confronted upper management at TMC about THE HOW of their operation Really Working & the why of freezing out ownership usage after hours and hours of research, back in 2010 (I think-so much has happened). And add to that hundreds and hundreds of emails, correspondence, etc with them, I can honestly say for the first time since 2009, my efforts have not been in vain! Now I feel motivated to search for every small piece of written communication I have with them as evidence on a very large scale despite their refusal to testify. Emails and letters don't go away!!

If was heartening to learn of the NYS AG's office contacting owners (after thousands, not hundreds of complaints) but the AG rarely does more than a slap on the wrist. This may mean the fraud evidence is getting clearer and I can now hope to help the Investigators put the pieces together.

Thank you for your reporting and updates. I'm so very grateful for your support.

Highest regards, Corinne Smith

jeff_reports wrote:

Devout followers of the Manhattan Club legal case may find the following information instructive:

On Feb. 25, the Manhattan Club principals --- Ian Bruce Eichner, Leslie Eichner, Stuart Eichner and their affiliated companies --- filed a substitution of attorneys document with the New York Supreme Court. No big deal by itself. What is interesting is who is "subbing in" for the former attorneys. The new lead in this case, representing the Manhattan Club, is Gerald L. Shargel, a prominent NY attorney who specializes in criminal trial litigation cases. To repeat, his specialty is criminal defense, not real estate timeshare cases, not civil litigation.

Here are excerpts from Shargel's biography on his firm's website, which portrays him as one of the best criminal defense attorneys in the country. The firm is Winston & Strawn.

"Partner Gerald L. Shargel is one of the most accomplished and well-known defenders in serious criminal cases both in New York and nationally. The New Yorker said he is considered “one of the most brilliant criminal defense attorneys in America… quite possibly the finest of his generation.” "Over more than 40 years, Mr. Shargel has defended numerous high-profile cases at the investigative, trial, and appellate levels. His cases cover a broad array of white-collar and non-white-collar crimes, and he has litigated matters before the most prominent judges in the key courts in New York. "Mr. Shargel was primarily a solo practitioner prior to joining Winston & Strawn and adding his unique experience in high-stakes trials to Winston’s existing litigation..."

You get the idea.

Owners can draw their own conclusions as to why the Eichners would hire an esteemed criminal defense attorney to represent them after a year of stupendously unsuccessful negotiations by their former attorneys with the NY Attorney General's office to resolve questions about the Manhattan Club's sales-and-reservations practices. The club's former attorneys were well known in NY legal circles, as well, for their expertise in handling complicated civil real estate matters.

RedWeek called Mr. Shargel this week and invited him to offer his (initial) perspectives on the Manhattan Club investigation. He did not respond.

Attorneys for both parties, presumably including Mr. Shargel or one of his representatives, will get their next day in court March 6 at a status conference with the court-appointed referee assigned to oversee the AG's yearlong investigation of possible fraud at the Manhattan Club.

All interesting reading.......I became timeshare owner at the Manhattan Club in 2007.......have more or less similar issues as you all have. I did not buy my timeshare from the Manhattan Club, but from a private owner of the timeshare.

Could someone kindly let me know whom to contact if I would like to consider to become part of the class action please?

Many thanks. Anna