Board of Directors

Have they truly exhausted all measures with the insurance company? Just because they denied it does not mean we say ok and start dividing up $65 million. How long have they been working on this issue and has it been communicated to the owners before now? These are some tough economic times and a lot of people are not going to pay this. Were does that put the ones who do decide to cut a check?

We did not convert to the points system last time we where at the resort and am glad we didn't. I wonder if the ones who did convert were told they lost there voting rights and those votes were now in DRI's hands. If I had to guess, it was in the fine print after the sale was made! This whole situation stinks and is going to cause a financial hardship on a lot of people and ruin credit ratings. I have been defending the "timehare reputation" for the last 12 years and boy do I have egg on my face now!

Richard,

Does anyone know who the contruction company or the insurance company is?

The suggestion that I'd make is that even if everything about this problem is on the up and up, do one building per year and do a special assessment each year.

The other issues as to what appears to be the conflict between DRI and the owners and their manipulation of the board to suite them and screw us is something we need to address through the next election.

They are doing one building the first year and two per year after that. The funding is spread over five years with some front-loading to cover start-up costs.

I hate DRI as much (or more) than the next guy, but other than bad maintenance over the years letting this happen, they seem to be handling this issue pretty well. (I hate to say that)

I disagree in that 1. There seems to be no excuse for the insurance company denying the claim, based on input from my insurance agent. The water damage is not based on floods, which would have required a seperate policy. It is the same as damage from a leaky roof....even if the roof were faulty. 2. The work will mean two buildings, roughly 20% of the capacity of the resort, will not be available for owners. It also means that we, the owners, have to come up with more money over a shorter period of time than if we were to do the work over 10 years and only ask for 1/10th the money per year as a special assessment.

We should have been given options instead of a board of directors decision and a mandated SA....

I suspect that they want us, the deeded owners, to walk away from the property....it works for them to assume ownership of weeks already sold.

Hawaii attorney Bill McKeon is currently looking into a class action suit and will have a better assessment of things within the next 2 weeks. Please contact his firm and provide your information as his list is growing each day. The firm's information is located at: www.mimhawaii.com

If a suit is filed we may be able to make our payments to the courts while the litigation is ongoing so that we are up to date on our payments. þ Also, if you haven't done so already it would be helpful to file a complaint with the Hawaii Attorney General's Office as well as the RICO Section of the Consumer Protection Office. If there's enough valid compliants filed, the AG's Office could look into this situation for us - hopefully. Further, you might want to file a complaint with the Federal Trade Commission (unfair and deceptive practices) and Securities Exchange Commission (misrepresentation of financials) so that the Feds can start sniffing around. If you're interested in filing a complaint with the FTC and/or SEC (I filed complaints with both), below are the web links for the complaint forms, fax number, and some language for your complaint. The more people we have looking into this then there's more pressure on DRI.

Federal Trade Commission Complaint Form: https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?lang=en FAX 202-326-2012 The FTC investigates "unfair or deceptive acts or practices” to include making false claims and promises that are material and which enticed the person to buy a timeshare. The FTC also invesigates complaints where there is willfull and intentional misrepresentation, omissions and misleading comments or acts, failure to fully disclose material facts (ie water intrusion problem), that a reasonable person would interpret, which causes substantial injury that was not reasonably avoidable and not outweighed by countervailing benefits to the complainant or to the competition. Negative and misleading discussions about other timeshare companies to persuade and influence the person might be considered a deceptive act. The following sites may show a pattern and practice of unfair or deceptive acts or practices from timeshare owners:

1. http://www.timeshareforums.com/forums/diamond-resorts-international-fka-signature-sunterra-epic/122530-5-893-32-special-assessment-diamonds-point-poipu-13.html

2. http://drip.enjin.com

3. http://www.kbcowners.com/l

4. http://www.facebook.com/#!/pages/Point-of-Poipu-Angry-Owners/148027451960608

5. http://poipuowners.org

6. http://www.redweek.com/forums/messages?thread_id=14638;page=21;query=

---------------------------------------------------- Securities Exchange Commission Complaint Form: http://www.sec.gov/about/forms/formtcr.pdf FAX 703-813-9322 The SEC may investigate instances where there is material misrepresentation of a companies financials and/or overstating their earnings, worth, value, and ownership in the properties which enticed someone into buying a timeshare. This may include the failure to fully disclose maintenance and repairs costs or present and future expenses. Btw, DRI took over for Sunterra which previously misrepresented their earnings and possibly violated SEC regulations which included the following cases. Gonan v. Sunterra Corp, et al, No. 2:06-cv-0084; Kaltman v. Sunterra Corp, et al, No. 2:06-cv-00894 and Sickles v Sunterra Corp, et al, No. 2:06-cv-0877 The following sites may show a pattern and practice of misrepresenting the earnings, worth, value and ownership of the timeshare:

1. http://www.timeshareforums.com/forums/diamond-resorts-international-fka-signature-sunterra-epic/122530-5-893-32-special-assessment-diamonds-point-poipu-13.html

2. http://drip.enjin.com

3. http://www.kbcowners.com/l

4. http://www.facebook.com/#!/pages/Point-of-Poipu-Angry-Owners/148027451960608

5. http://poipuowners.org

6. http://www.redweek.com/forums/messages?thread_id=14638;page=21;query=

Hope this information helps. Btw, DRI had my wife and I sign a waiver of our 7 day right or rescission which is illegal under Hawaii law. It appears they destroyed this signed waiver. Has anyone else had this same experience?

Jeffrey Hall Jeffreyhall1@msn.com

You can donate the timeshare, however not only do you have to pay the fees due on the timeshare, there is a transfer of deed and processing fee. You DO get a tax donation, so it's not a complete defeat (and it goes to a good, legit cause)... just very close. At this point I never want to hear of Poipu Point and RCI again - so it's tempting just to be rid of the ongoing nightmare and bloodsucking!! However, waiting a bit to see it anyone can come up with a truly viable solution in which we can retain ownership and not have to swim to the island because the fees have bled us dry!

Be patient. We are working on something!

Jeff, you have some very good advise. Wow, on the 7 day recission waiver. Wish we had 1,000 others that also saw this document. I do have a question for you about the SEC. I was under the impression that the SEC regulates companies that are listed on the stock market or investments offered to the public. Diamond is a privately held company and I believe that excludes them from SEC regulations? Did you already register on one of the owners group's websites?

Kpaul, I registered on the Point at Poipu and on facebook. Is there another place I can regsiter as I definetly want to participate in any class action law suit?

Also, not completely sure whether the SEC could investigate DRI. However, the following are two web links about the SEC invesitigating timeshare related activities. The first web link is a case where purchasers were incorrectly told the tgimeshares could be purchased and rented out as an investment and would increase in value so it would result in a financial return.

http://www.thetimeshareauthority.com/2007/09/13/timeshare-scam-targets-elderly-sec-targets-scammers/

http://www.startribune.com/local/125851783.html

Hope this helps.

I believe,If every owner who visits Poipu, would talk to as many visitors as possible and tell only FACTS about their ownership, only Fools would then purchase and there would be no reason for Diamond to continue their operations. Tell about the assessments, about the maintenance fees, how the elections work, and about voting rights of "Point Owners". We should not make any derogatory comments that are not factual. My week is going up for sale for $1. Maybe DRI will exercise their "first right of refusal.....

they will not excercise their first right to buy your membership, they want you to be obligated to pay the assessment, they can sell as many points memberships as they like, there is no end to the number they will sell.... I hate to be negative, but Diamond will do anything to make another dollar, and never return even one dollar...

At the San Francisco meeting, someone asked pretty much that same question about buying back units. The comment was that they are not happy about DRI having to pay almost $8 million of the assessment because of units and points that they own. They certainly didn't want any more.

I want to encourage every member to file complaints against Diamond Resorts International management and sales with the Better Business Bureau of Hawaii... Let the timeshare buying public know what is going on with this unethical, possibly criminal fraudulent business practices... Real Estate law in Hawaii requires full disclosure of any information that is critical to making a decision related to buying real estate... You can file online in 10 minutes...

Please register at www.poipuowners.org They are currently working to unite us all.

www.poipuowners.org/ is the group that is dedicated to regaining control of the resort

davidl712 wrote:

www.poipuowners.org/ is the group that is dedicated to regaining control of the resort

I am under the impression that when you say "the deeded owners are dedicated to regainning ownership of the resort" you are not refering to the "Points Members" as having any legitimate claim to their weeks or points... I had a conversation with your groups President when you first formed, and he seemed to imply that.... " If that is not your position, would you please clarify what your position is... "

The group will be working in everybody's best interest. Few would argue that it benefits anybody to have our current management company in place...

There is no question that regaining control of the Board (really gaining since the developer has been in control since the beginning) will benefit everyone, points and deeded. Unfortunately, the points owners have no way to vote directly in the election. DRI has control of the deeds that are held in the trust and will vote those shares to retain DRI control.

If true that DRI has no interest in exercising their first right, then it would seem that a purchase of an oceanfront week at $1000 would be a good investment.

This from a news report 10/25/2011

"Chairman of the Corporation for Travel Promotion and Diamond Resorts International® Chairman and CEO gave speech introducing President Obama"

Who thinks that any help is forthcoming from any branch of the Federal Govt?