The first of several securities fraud complaints was filed today against RML, Luther Parker, Larry Ohm CPA, Joe Thomas and all “board members” of Ridge Management Ltd, Inc.

This first complaint for securities law violations was filed with the State of Tennessee Department of Commerce and Insurance Securities Division in Nashville.  Below you can see the completed form.  Attached to the form was the following information along with an included CD-ROM that provides copies of nearly 300 pages of applicable documents and evidence.

Since the current ownership of all 84 units at Deer Ridge Mountain Resort include domiciles in 19 states, I intend to file similar complaints for securities fraud, and other securities law violations, with each of those additional 18 individual states securities divisions.  Additionally, since four of the five board members live outside of Tennessee and since ownership is spread across 19 states, I intend to file a similar complaint for securities fraud and other securities law violations with the Securities Exchange Commission (SEC) in Washington D.C. since the geographically diverse ownership makes it a federal case. (Note: If an owner’s home address is in any particular state, then almost always, that state’s unique and specific securities laws must also be followed to the letter – as well as the securities laws of the state of Tennessee.)

As I have previously mentioned here, Luther Parker, Larry Ohm and Joe Thomas all have continued to falsely represent that RML makes money and does not cost our GGRC HOA and the Deer Ridge owners money.  In spite of me showing my proof that RML has lost us $2 million during the past 16.5 years BASED ON THEIR AUDITS, the Gang of Six refuses to admit their lies.

I have asked Luther Parker for his proof of his statements in his November 15, 2011 letter that was sent to all owners, “RML does not cost the HOA. In the past it funded GGRC approximately $45,000 per year.  The cost to operate GGRC remains the same with or without RML. HOA fees would not be cut in half.”

Folks, these statements by Luther Parker are lies.

And I am tired of Luther Parker, Larry Ohm CPA, Joe Thomas, David Barone, Tom Reise and Margie Duncan intentionally misleading all owners regarding this hugely important and pivotal matter.  Luther has not come forward with any proof. So, I intend to force him to prove his statements were true to state authorities – in lots of states.

Based on my experience gained from starting and owning my own National Association of Securities Dealers (NASD) broker-dealer corporation and being a member of the Securities Investor Protection Corporation (SPIC), and having raised $25 million from investors and venture capital, I know something about state and federal securities laws.  And it is my opinion,  based on all of that experience, that these kinds of lies told repeatedly by Luther Parker, Larry Ohm CPA, Joe Thomas, David Barone, Tom Reise and Margie Duncan should be considered securities fraud.

Additionally, since buying any condo at Deer Ridge requires that any owner become a de facto stockholder of RML, at least 40% of all owners’ HOA fees will be squandered by feeding RML’s massive negative cash flow. Since every new owner, along with all existing owners, are forced to fund this ongoing need for capital contributions into the illegitimate RML, I believe that additional, ongoing major securities fraud is committed by Joe Thomas every time he sells a condo.

This is because Joe Thomas NEVER tells buyers they will be forced to own part of RML and fund these huge negative cash flows. I believe that this despicable and intentional lack of disclosure by Joe Thomas probably violates multiple other state and federal securities laws as well as being violations of the rules and regulations of the Tennessee Real Estate Commission.

RML Is A Corporation That Issued Shares And Is Required To Abide By Securities Law

Whether the Gang of Six likes it or not, Ridge Management Ltd, Inc. is a corporation that is governed by securities laws in Tennessee and elsewhere. As such, these securities laws regulate what can be done, how it can be done and what can be said or not said with regard to RML.

One of the things officers and directors cannot do is lie and mislead investors in the corporation.

If I am showing, based on the corporation’s own audits, that RML lost $2 million during the past 16.5 years, you can easily verify my statement and my math by reviewing the same audits.  The same is true for the Securities Division of Tennessee, and all other securities agencies and the SEC.

Luther Parker made his above statements about a month ago.  I’ve asked him to prove it.  He has chosen once again to ignore owners’ demands of proof – and has not provided an iota of proof of his statement.  Again, this is Luther Parker’s most recent published lie, “RML does not cost the HOA. In the past it funded GGRC approximately $45,000 per year.  The cost to operate GGRC remains the same with or without RML. HOA fees would not be cut in half.”

Uh huh.

Now, he can try to prove every nuance of those statements to the Securities Division of Tennessee.  And, they won’t take his empty, arm waving and name calling as proof of anything!  Plus, they have their own forensic accountants and forensic computer experts who know how to find malfeasance and ferret out the REAL truth.

Better get ready, boys, they are from the government – and they are here to help you!

Securities Division of Tennessee – An Agency With Big Teeth

Just so you know, the Securities Division of Tennessee is not some toothless state agency without power to force compliance.  Actually, it is just the opposite.  It can fine both the corporation and/or the individuals associated with the corporation for all sorts of securities law violations.

A review of recent actions taken by the Securities Division of Tennessee shows that they have forced consent decrees, taken away licenses, shut down companies and have fined individuals involved with various securities law violations, including securities fraud, with personal fines exceeding $500,000 for EACH person involved and for EACH violation.  These are for civil violations.  If they uncover criminal violations, those charges and actions are dealt with separately and IN ADDITION to the punishments and fines for civil violations.

I would call that some major teeth, n’cest pas?

Just The Start

Virtually every state has a securities division or agency similar to the Securities Division of Tennessee.  And each one has similar kinds of teeth for similar kinds of securities fraud.

Of course, if you think that’s bad – well, then we also have the Securities Exchange Commission to help us out since Deer Ridge and RML fall under federal scrutiny too.  The SEC has monster teeth.

These are the same folks that sent Martha Stewart and Bearnie Madoff to prison after charging them with securities fraud and other securities law violations. The SEC has already charged 87 CEOs, CFOs and other senior officers and their banks and mortgage companies in the 2008 Financial Crisis with securities violations and have already fined these officers and directors with nearly $2 billion in penalties, disgorgement and other monetary relief.

The Word of Today For The Gang of Six: Disgorgement

Disgorgement is repayment of ill-gotten gains that is imposed on wrong-doers by the courts. Funds that were received through illegal or unethical business transactions such as securities law violations are disgorged, or paid back, with interest to those affected by the action.

Individuals or companies that violate Securities and Exchange Commission (SEC) regulations are typically required to pay both civil money penalties and disgorgement. Civil money penalties are punitive, while disgorgement is about paying back profits made from those actions that violated the SEC’s regulations. However, disgorgement payments are not only demanded of those who violate securities regulations. Anyone profiting from illegal or unethical activities may be civilly required to disgorge their profits.

My expectation is that the SEC and the various state securities agencies will take this same approach of disgorgement with regard to the $2 million Luther Parker lie, and all the OTHER lies and misrepresentations, and force this kind of repayment to ALL past and current owners at Deer Ridge. (Yes, folks, even those of you who have already sold your unit or lost it in foreclosure or forced to sell at a loss may be covered by the complaint process – so be sure and file your own complaint!  See below.)

Based on everything I know about securities law – and the MANY ways that things are wrongly done at Deer Ridge and the way lies have been told for years along with all the massive, misleading misrepresentations – I think the SEC might find it interesting to research ALL the ways that this fiefdom has been run for so many years – and the millions of dollars it has cost past and current owners.

Allegations

Remember, as of now these are just my allegations of securities wrong doing by Luther Parker, Larry Ohm CPA, Joe Thomas, David Barone, Tom Reise and Margie Duncan.  I believe that I am 100% correct on these allegations based on my years of experience in the business.  We will have to wait and see if any, or all, of the 19 states and/or the SEC agree with me.

Below the line is what I filed with the official complaint form for the Securities Division of Tennessee.  If you would like to file your own securities law violations complaint against RML and/or the individual members of the Gang of Six with the Tennessee Securities Division, just click “Book ‘em Danno!”

Note:  It costs you nothing to file a securities law complaint against RML and the Gang of Six.   The great State of Tennessee will take care of it all for you, start to finish, without you having to spend a penny.  The same is true for the SEC – and probably every one of the other 18 states where Deer Ridge owners live.

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Investor Complaint For Securities Fraud And Other Securities Law Violations Filed Against Ridge Management LTD, Inc.
and
President Luther Parker, Treasurer Larry Ohm CPA, General Manager Joe Thomas, Vice President Tom Reise,  Secretary David Barone and Director Margie Duncan

Summary

Ridge Management Ltd, Inc. (“RML”) is a “for profit” Tennessee domestic corporation, with corporate offices at 3710 Weber Road, Gatlinburg, Tennessee 37738, and was originally incorporated December 29 1987.  A copy of the current filing information (Control #198618), incorporation documents, stock certificate and articles of incorporation are included as Exhibit A.  (All supporting documents are in Acrobat format and are contained in the included CD-ROM.)

RML is owned by the 84 owners who own individual condominiums at Deer Ridge Mountain Resort, Gatlinburg, Tennessee, which is governed by the Gatlinburg Golf and Racquet Club Condominium Association, Inc. (“GGRC”) in accordance with the Tennessee Horizontal Property Act.  GGRC is a “non-profit” Tennessee domestic corporation with corporate offices at 3710 Weber Road, Gatlinburg, Tennessee 37738, and was originally incorporated March 13, 1984. A copy of the current filing information (Control # 139212) is also included in Exhibit A.

Luther Parker, of Memphis, Tennessee, serves as the President of both GGRC and RML.

Many, if not most, owners of the 84 total outstanding shares of RML are believed to be unaccredited and unsophisticated investors.  The prices for condos at Deer Ridge generally range from $35,000 to $90,000.

RML is a rental company that provides motel services for certain Deer Ridge owners, and other real estate owners who do not own a Deer Ridge unit, who wish to rent their individual condo or cabin.  Only about 60 of the 84 units at Deer Ridge currently use the motel services of RML.  The other 24 owners do not rent their condo or use another rental management company.  It is important to note that RML is not solely focused on providing motel services to Deer Ridge owners – but is, instead, a motel service that aggressively pursues cabins and other rental properties which are completely unaffiliated with Deer Ridge.  However, in spite of RML expending up to $100,000 and more each year in advertising and marketing, this high risk small company has not been successful in competing in the motel business marketplace and has only signed up about a half dozen additional rental properties.

As a consequence, based on corporate audits, RML has lost $2 million during the past 16.5 years.  As the following will show, this $2 million loss was funded by illegitimate capital calls.

By way of background, for the past six plus years, I have been an owner of one of the 84 condo units governed by GGRC.  As such, I am one of the 84 de facto shareholders of RML.

As an MBA, and the founder and past owner of a NASD Broker/Dealer company which was also a member of SIPC, I believe that I have the necessary credentials and background to recognize that RML has committed, and continues to commit, what I believe are major state and federal securities law violations including securities fraud exceeding $2 million.

I believe that many of these violations may include current criminal conduct as well as blatant civil violations including ongoing securities fraud happening on a monthly basis.

It is my contention that these securities law violations, which have been going on for more than two decades, have already resulted in many past and current stockholders being forced into personal bankruptcy and/or losing their Deer Ridge condo in foreclosure or have been forced to sell their unit at a significant loss.

Currently, the owners of the 84 units at Deer Ridge are comprised of approximately 14 owners who live in Tennessee and 70 who have domicile addresses in 18 other states.

As such, since securities laws for other jurisdictions are clearly involved, we intend on contacting the state agency for securities laws in each of those 18 other states as well as the Securities Exchange Commission in Washington D.C. for issues regarding federal law.  We intend on sending those agencies this same information in this letter along with a copy of the enclosed CD-ROM that contains the supporting documents and evidence.

However, since I am a born and raised Tennessee resident, and since the corporations involved are domestic and under your jurisdiction, I wanted to first contact your department regarding these securities violations so that you could have a head start on enforcement and compliance.

As such, I respectfully request that the Securities Division of the Department of Commerce and Insurance for the State of Tennessee thoroughly investigate this complaint for the protection of the past, current and future owners of common stock in RML.

Investor Complaints

My investor complaint includes the following allegations:

1. Luther Parker, President of both GGRC and RML, continues to perpetrate a fraud on all stockholders by fraudulently claiming, as recently as 30 days ago, that RML has continually made money for the owners.  Please see Exhibit B, Luther Parker Letter, dated November 15, 2011 and mailed to all Deer Ridge owners on or about December 1, 2011.
2. In spite of the fraudulent claims by Luther Parker, CPA audits commissioned by the corporation clearly show that RML has lost nearly $2 million of investors’ money during the past 16.5 years.  This loss of $1,915,934 is calculated based on CPA audits completed by Hickman and Company, CPAs under the direction of Luther Parker, President, Larry Ohm, CPA and Treasurer and Joe Thomas, General Manager.  Please see Exhibit C for copies of all audits and a comprehensive analysis of the audited numbers.
3. This RML loss of $1,915,934 over the past 16.5 years equates to an average RML loss of $116,117 every year.
4. This annual average RML loss of $116,117 is funded directly out of the pockets of all 84 Deer Ridge owners under the guise of increased monthly HOA fees to all condo owners at Deer Ridge who happen to also be the stock holders of RML.  Instead of the required capital for the operating deficit being funded by an optional capital call to all stockholders, the needed funds are fraudulently included in the monthly HOA fees that are required of all owners.  These hidden equity payments continue to equal more than 40% of the contrived monthly HOA fee.  Please see Exhibit D for a list of all current stockholders.
5. This annual average RML loss of $116,117 equals 40% of the $290,540 annual HOA fees collected from all owners of the 84 units at Deer Ridge.  As a consequence, nearly half of all HOA fees paid in by the mostly unaccredited and unsophisticated investors are being squandered by this illegitimate corporation’s need for monthly capital infusions.
6. I contend that the actual RML losses are, in fact, much higher than the annual average RML loss of $116,117 shown on the audits.  This is because the audits indicate various expense items that should rightfully be associated with and cost accounted with the motel operation of RML are, instead, spurious costs that are listed as expenses of GGRC.  I believe that this is being done in order to intentionally deceive stockholders as to the actual losses that accrue each year from RML’s unprofitable motel operation.
7. RML was illegitimately formed by the board of directors of GGRC in 1987 without a vote of owners – and without providing owners any kind of disclosure or offering document that detailed the risks, management compensation, etc. of the unregistered security.  In spite of it not being an approved Common Expense of GGRC, funding for this new corporation, RML, was pulled from the general operating account of GGRC, a non-profit corporation, which in turn was, and is, fully funded by the 84 owners of the condos at Deer Ridge Mountain Resort.  As such, RML has offered and continues to offer, unregistered securities to Tennessee residents along with residents of at least 18 other states. Please see Exhibit D.
8. Under the Securities Act of 1933, it is against the law for any company, or “issuer,” to sell securities without either registering the securities with the Securities and Exchange Commission pursuant to Section 5 of the Securities Act or relying upon a valid exemption from the registration requirements. Similarly, pursuant to each individual state’s “Blue Sky” laws, it is generally against the law to sell securities within a state without either registering the securities with the state’s securities regulatory agency or relying upon a valid state exemption from registration.
9. At no time has RML or GGRC ever issued any kind of Reg D private placement memorandum or any other offering document or any type of disclosure documents to the stockholders of RML.  There has never been any discussion of risk factors, management compensation or limitations of transfer of ownership that could have tax consequences to both the stockholders and the corporation.  Additionally, no investors were ever asked to complete any prospective purchaser questionnaires that asserted that they were accredited.  Additionally, no Form D was filed with either the state of Tennessee or with the SEC in Washington, D.C. nor was there any filing fee paid in Tennessee for RML or GGRC to qualify for any securities exemptions.  As a consequence, any securities offering made by RML or GGRC does not qualify for any exemptions contemplated by Tenn. Code. Ann. §48-2-103.
10. TENN. CODE ANN. § 48-2-102 provides that a security is defined to include investment contracts. An investment contract is an agreement wherein initial value is given and subjected to the risks of an enterprise, with a valuable benefit of some kind, over and above the initial value, being promised, but the investor does not receive meaningful rights to exercise practical or actual control over the managerial decisions of the enterprise. I believe that this definition of an investment contract includes an investment in a vacation home.  Please note from Joe Thomas’ current Real Estate Sales Package that is available to the general public, shown as Exhibit E, that he sells condos at Deer Ridge Mountain Resort as a “personal or corporate investment.”  Joe Thomas is also currently advertising these investments in the mainstream media, thereby, in my opinion, publicly offering unregistered securities to Tennessee residents and engaging in securities fraud.
11. In examining Exhibit E, “Joe Thomas Deer Ridge Sales Package, December 2011,” note the following reference: “GG&RC HOA Fees cover maintenance and upkeep of all commonly owned areas including but not limited to exterior lighting, parking lot, landscaping, playground, tennis court, picnic pavilion, recreation building including indoor pool, Jacuzzi, sauna, steam room, game room, offices, golf membership and multi-peril insurance on the same.” In spite of Joe Thomas’ insider knowledge and review of the annual audits, nowhere in his “disclosure” is any reference to the fact that 40% or more of the HOA fees listed are used to fund the average annual operating deficit of $116,117 of RML based on the corporation’s audits.  As a consequence, buyers of condos at Deer Ridge are never told of this ongoing capital call requirement, and major risk factor, prior to their purchase of a condo.
12. Buyers and owners of condos at Deer Ridge are given no choice of owning shares of RML.  All owners must own a share of RML and are required to fund RML’s large operating deficits under the guise of required HOA fees that are nearly twice what would be required if RML were not funded by HOA fees.  If owners object to this ongoing monthly capital call and do not pay, those owners are threatened with foreclosure of their home at Deer Ridge.  This includes the 24 owners who do not use RML’s services – many of whom object to this illegitimately required monthly capital call funding into RML.
13. Additionally, there continues to be a complete lack of any disclosure whatsoever regarding the required, ongoing, monthly capital call funding for RML’s negative cash flow when a new owner purchases a condo at Deer Ridge.  For example, when I bought my unit, Joe Thomas acted as both listing and selling broker on the transaction.  At no time did Joe Thomas disclose any requirement for us to own a participating share of RML nor did he disclose that nearly half of the property’s annual HOA fees would be used to support a motel management company’s negative cash flow – even if we were not users of RML’s motel services.  It is our understanding from recent property sales that Joe Thomas continues his historical lack of disclosure.
14. The fact that Joe Thomas also served then, and continues to serve, as General Manager of both GGRC and RML, as well as the principal broker of Ridge Resort Realty (a DBA of RML), gave and gives him complete knowledge and insights into the true operation of both corporations.  As such, I contend that Joe Thomas knowingly and deviously omits this disclosure as part of his deceptive trade practices as a real estate agent since many buyers, ourselves included, would have never bought a Deer Ridge condo if proper disclosure of this risk factor had been properly made.
15. It is my contention that most buyers of small condos under $90,000 do not expect that they will also be unwilling stockholders in a money-losing motel business that will squander almost half of each year’s HOA fees.  As such, the lack of this disclosure by broker and General Manager Joe Thomas is especially nefarious and fraudulent.
16. It is my contention that Luther Parker, president, is aided and abetted by all four other members of the board of directors and the company’s general manager, all of whom are co-conspirators in securities fraud and other securities law violations and have breached their fiduciary duties to all stockholders.  The board members are President Luther Parker of Memphis, TN,  Vice President Thomas Reise of Friendship, WI, Treasurer Larry Ohm, CPA of Grant Park, IL, Secretary David A. Barone of Monroe, NY and Director Margie Duncan of Florence, KY.  General Manager of RML is Joseph Thomas of Kodak, TN.  Please see Exhibit F for a complete listing including each individual’s home address, home telephone number and personal email address.
17. It is my contention that all five board members and Joe Thomas have conspired for years to fraudulently deceive owners at Deer Ridge regarding the profits and losses of RML in order for them to continue to operate their motel business for their own personal gain and benefits – none of which are disclosed to owners.  These six individuals are concerned about the growing complaints of owners regarding having the highest HOA fees in the entire East Tennessee area.  These six individuals are concerned that if the owners knew the truth about more than 40% of the HOA fees were used to cover the exorbitant losses of RML, these owners would take action to shut down this illegitimate corporation and cut their HOA fees in half.  These six individuals are concerned that with an RML shut down, the benefits they uniquely receive from their motel business would be lost.  I contend that this is the primary reason that Luther Parker, Larry Ohm, CPA and Joe Thomas lead this conspiracy to fraudulently lie to all owners about the profitability of RML.
18. TENN. CODE ANN. § 48-2-121 provides that it is unlawful for any person, in connection with the offer, sale or purchase of any security in this state, directly or indirectly, to make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading.  In spite of the corporations’ audits showing a $2 million loss during the past 16.5 years, Luther Parker, Larry Ohm and Joe Thomas continue to falsely assert that RML is a profitable operation in order to intentionally mislead stockholders.
19. Additionally, those who choose to not use RML’s motel services, such as 24 current owners,  are subjected to significant discrimination, retaliatory actions and malicious slander and libel as well as being burdened with financial costs not borne by RML participants.
20. Many of these same board members and Joe Thomas have been in complete control of the board and the operation of Deer Ridge for a decade or more.
21. The company’s treasurer is Larry Ohm who claims to be a CPA in Illinois.  I contend that because of his profession-required understanding of financial statements, Larry Ohm fully understands the audits and the nearly $2 million aggregate loss they show for the past 16.5 years.  Yet, he continually and fraudulently misrepresents that RML is making the stockholders money.  Please see Exhibit G which clearly shows Larry Ohm falsely stating that, “This clearly contradicts the accusations by anyone that HOA fees and special assessments are being utilized to pay for the costs of operating RML. In truth, in the past, it was RML that was providing a subsidy to GGRC.” This fraudulent and misleading statement by Larry Ohm, CPA, was made to all owners in spite of 16 years of audits of the corporation clearly showing a $2 million loss, or an average loss of $116,117 every year for 16 years!
22. Exhibit H includes my Warranty Deed, complete closing statement package and my fully executed purchase contract with all attachments showing Joe Thomas as the only broker involved.  These documents show that there was never any disclosure of any kind made to me prior to closing that indicate in any way that I would be fraudulently forced to support a money losing corporation such as RML as part of my purchase or a residential condo.  Again, if this had been properly and legitimately disclosed, I would have never considered closing on this transaction.
23. During the past six plus years that I have owned a condo at Deer Ridge, I have documentation that repeatedly pointed out to these board members that they are lying to the owners about RML’s profitability in light of the attached annual audits that they themselves commission each year.  Therefore, there can be no legitimate claim by any board member or General Manager Joe Thomas that they had no knowledge of the facts.
24. In spite of numerous attempts, during the past six plus years that I have owned a condo at Deer Ridge, I have never received a copy of the Administrator’s Book that lists all income and disbursements, along with supporting vouchers.  This Administrator’s Book, in this specific format, is required by the Tennessee Horizontal Property Act (§66-27 -113.) It is my understanding that Joe Thomas and the board have never made this Administrator’s Book available to any owner.  Ever.  As a consequence, no owner or stockholder in RML has ever been allowed to see the books and records as required by Tennessee state law.   It is my contention that this stonewalling is driven by the conspiring board’s strong desire to hide certain transactions from the scrutiny of the stockholders – and it is my belief that these hidden transactions hide multiple acts of malfeasance.

Again, based on my many years of experience from owning a NASD broker-dealer and my involvement with numerous private placement offerings and the applicable state and federal securities laws that control such offerings, I strongly believe there may be major, ongoing malfeasance that is negatively impacting the stockholders of RML.

The owners at Deer Ridge are mostly unaccredited investors who, in my opinion, are being consistently and deliberately deceived and victimized by a conspiracy by the board of directors of both RML and GGRC who are personally benefiting from these deceptions. I believe that these ongoing activities and material misrepresentations are violations of the Tennessee Securities Act of 1980, as amended, and put the public at significant risk of immediate and irreparable injury, loss or damage.

Based on the above allegations and the enclosed exhibits, I believe that your investigation will find that Joe Thomas, Luther Parker, Larry Ohm CPA and the rest of the board continue to perpetrate numerous and substantial securities law violations to the financial determent of past, current and future stockholders of RML.

I respectfully request that the Securities Division of the Department of Commerce and Insurance for the State of Tennessee investigate this complaint for the protection of the current and future owners of stock in RML.

I will be glad to be of help to your investigation.

Not only can I provide your department with numerous additional documents and evidence not contained on the enclosed CD-ROM, I will gladly meet with you at your convenience or discuss these allegations on the phone in order to expedite your review of the facts concerning the securities violations of Ridge Management Ltd, Inc. by its board of directors and general manager.

Thank you for your consideration of my complaint.

Sincerely,

Robert Goodman

PS:  Much of this legal fight is fully documented at my blog www.DeerRidgeOwners.com. This blog has between 35,000 and 50,000 page views per month – with interested viewers all over the country watching to see what justice can be found in the great State of Tennessee.

I hope that the actions of the Securities Division of the Department of Commerce and Insurance for the State of Tennessee will show the nation that we will not tolerate securities fraud and other securities law violations – and that even unaccredited and unsophisticated investors will be protected.

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Stay Tuned!

We live in interesting times.  And, hopefully, with the help of the State of Tennessee Securities Division, we will make 2012 VERY interesting for the Gang of Six!

Luther Parker, and the rest of the Deer Ridge Board, are at it again.

Luther Parker is lying to all Deer Ridge owners when he fraudulently claims that RML is making a profit and supporting GGRC.

Of course, there are so many lies, distortions and other misrepresentations in the recent letter that went to all owners.  Luther and the rest of the Gang of Six are trying desperately to stop the flow of more owners terminating their RML contracts and signing up with Cobbly Nob Rentals.

The focal point here on this post is “The Big Lie” that Luther, Larry Ohm and Joe Thomas repeat as a litany.  Their other lies will be addressed with other posts.  Luther and the Gang must be using Hitler’s Mein Kampf as their operations guide regarding RML “profitability” where they learned about “The Big Lie” – or how to use a lie so “colossal” that no one would believe that someone “could have the impudence to distort the truth so infamously.”

Let me prove to you, beyond the shadow of ANY doubt, that Luther Parker is lying to all owners at Deer Ridge about RML.

The Big Lie:  RML Makes Our HOA Money

OK.  Here is a snippet from Luther’s letter of November 15, 2011 about RML and other assorted lies, distortions and other misrepresentations:

Luther states, unequivocally, that “RML does not cost the HOA.  In the past it funded GGRC approximately $45,000 per year.”

He goes on to state that, “The cost to operate GGRC remains the same with or without RML.  HOA fees would not be cut in half.”

Really, Luther?

Luther’s statements, less than two weeks ago, indicate to me that, in my personal opinion, one or more of the following is probably true:

1. He is lying.
2. He is senile.
3. He is either ignorant or stupid.
4. He does not understand business and math well enough to read financial statements.

I personally feel like Luther’s statements have got to be based on one or more of the above choices.  Let me show you why – and you can reach your own conclusion about Luther Parker.

The REAL Truth – Not Luther’s Bizarre “Truth”

OK, Luther, please pay attention this time.  This is the same thing I’ve showed you before based on YOUR information. If you can stay awake long enough, maybe it will finally sink in this time – and you will stop with the repeated “Big Lie.”

If you click The Real RML Facts, you can download a packet of information that I’ve assembled for all to see, including the Judge in our litigation against Luther Parker et al:

• A detailed 16.5 year history of the ACTUAL financial results for RML.  (It only goes through June 30, 2011 since we have yet to get the financial results for the last half of calendar year 2011.)
• The basis for EVERY number of my analysis only comes from THREE sources which are all included in the Real RML Facts Packet for your scrutiny.
• One of the three sources is 10 years of AUDITED financial results for RML covering the years 2001 through 2010. All of these audits were completed by GGRC’s auditors, Hickman And Company, P.C., Certified Public Accountants.
• The second source of data is from a Joe Thomas presentation at the 2005 Annual Owner’s Meeting.  As we all know, Joe Thomas is the general manager around here of both GGRC and RML…oh, and the other conflict of interest position: principal broker of Ridge Resort Realty.  You will see in your Packet Joe’s presentation on the performance of RML includes three sheets showing the income, expenses and net income and loss for all years from 1995 through 2004.  The packet also contains the underlying worksheet prepared by Joe Thomas that was used for the fancy PowerPoint presentation. (Please ignore Joe’s headline on the PowerPoint presentation that says, “Rental Company Nine-Year Performance.”  As everyone else knows, besides Joe Thomas, Years 1995 through 2004 is TEN YEARS of performance.)  In spite of Joey’s inability to do simple four function arithmetic for his headline, we will take at face value that all the number in the spreadsheets were done correctly by someone else.  Now, remember, all those numbers are Joe Thomas’ numbers – not mine.  (I did not have the audit reports before 2001.  For some reason, Joey and the board are unwilling to give me copies – but I will assume that Joe Thomas was probably not lying to owners when he prepared his 2005 Owner’s Meeting report on RML’s performance…and that the numbers for those earlier years were based on the audit numbers.)
• The third, and last source of data for The Real RML Facts Packet, is from the August 2011 “board” meeting.  The board minutes, as prepared by our own David Barone, quotes Larry Ohm, CPA, as stating that the combined RML loss for the first six months of 2011 equaled $58,077.57.  Again, these are THEIR numbers – not mine.
• All of these documents are what was handed out at annual meetings or mailed to Deer Ridge owners – and does not include any additional documents or insights that I might have been gained from the document production resulting from our current litigation against Luther Parker, Joe Thomas and the rest of the “board.”
• Your Real RML Facts Packet contains copies of ALL of these documents for your review.  Don’t take my word for it – verify that every number on my summary spreadsheet is accurate and taken from the three source documents.

Here’s the photo of Larry Ohm’s admission of the RML loss for the first six months of 2011:

The fact that the Gang’s motel business lost over $58,000 in six months time is scary – but the real and complete story is much worse.

So, Luther, the following is my PROOF – based on YOUR numbers – that you are lying when you made the above statements in your letter from two weeks ago.

The 16.5 Year History Of How RML Has Lost Deer Ridge Owners Over $1.9 MILLION – And Still Counting

Yep.  We are really talking about a TWO MILLION DOLLAR LOSS by RML.

Let’s see what happens when we take all that information from those three sources and use THEIR numbers for all of our calculations.

PLEASE CLICK IMAGE FOR THE BIG PICTURE

 You will need to click on the above image to make it big enough to get the BIG picture – and to see just how “bizarre” Luther Parker’s Big Lie has grown.

Here’s the summary from the above page so you can see the bottom line:

• Even using the straight numbers from the three sources show an aggregate net loss over 16.5 years equal to $410,840.  This, by itself, shows Luther Parker is lying to you.
• If the $58,078 that was lost during the first half of 2011 is extrapolated, this means that Joey and the Gang will lose $116,156 of OUR money for all of 2011.
• If the above 2011 extrapolation is correct, then the above $410,840 loss becomes $468,918 for the 17 years.
• Luther, in case you don’t understand, if RML loses money, there are only two sources for it to get more:  a bank loan and from the individual owners of Deer Ridge condos.  Period.  RML has a bank line of credit of about $40,000 – but it is guaranteed by OUR HOA monthly assessments.  So, again, all those losses really have to get covered just from one place:  out of the pockets of ALL owners – whether we use RML or not.
• Luther, do you realize that RML has lost $108,047 just during the past 18 months!!!
• Are you still with me, Luther?  I am trying to put this in baby talk so you can follow the logic.  Now, remember, Luther, all of this is from YOUR numbers!
• The above numbers already prove that Luther Parker was LYING with his statements in his letter from two weeks ago. Period.
• But wait – there’s more!
• If you look closely at the audits and the nine, oops, ten year RML performance compiled by Joe Thomas, there are a couple of suspect line items.
• One is “GGRC Assessments” that shows as income for RML.  What was the source of this income?  Well, the wallets of ALL Deer Ridge owners, of course!  In other words, RML assessed our HOA, GGRC, in the aggregate amount of $200, 556 during that 16.5 year period.  So, that increases the real loss from RML by another $200,556.
• But wait – there’s more!
• The other line item is “GGRC Charged – Management Fees.”  This is not for managing the condos of owners. They currently charge owners a 50% management fee for that.  This ”GGRC Charged – Management Fees” is what they are charging to “manage” GGRC! If you remember, this is something we can outsource to a professional HOA management company for $1,680 a month – and that includes all the accounting!  This approach would have added up to less than $333,000 over 16.5 years.  Click Fire Joe Thomas for the details of this bid.
• Instead, Joey and the boys, chose to charge OUR HOA a whopping $1,305,538 for them to oversee and manage our tiny 84 unit complex.  Again, this has nothing to do with the needs of RML and it’s own management needs – this was just another way for Joey and the Gang to gouge ALL owners to help support their motel business.
• So, just like “GGRC Assessments”, the “GGRC Charged – Management Fees” shows as “income” into RML.  And, just like with the ”GGRC Assessments”, every cent of it comes out of the pockets of ALL owners at Deer Ridge!
• Still, with me Luther?  You haven’t dozed off or had another one of those “senior moments”, have you?
• The important part for you to finally get is that the “income” from ”GGRC Assessments” and “GGRC Charged – Management Fees” are bogus income items.  They are not monies earned from outside tourists or cabin owners.  Every cent of it has come out of the pockets of OWNERS at Deer Ridge!
• What this means is that, over the past 16.5 years, all owners have lost $410,840 as a net loss, PLUS the “GGRC Charged – Management Fees” that cost ALL of us $1,304,538 PLUS the ”GGRC Assessments” that cost ALL of us another $200,556.
• This equals a GRAND TOTAL LOSS CAUSED DIRECTLY BY RML = $1,915,934.  And counting!
• Again, Luther, all of this is from YOUR numbers.  It also does not include a lot of “hidden” costs that you have wrongly misrepresented and attributed to GGRC as operating costs when, in fact, they were really RML related operating costs.  These hidden amounts are massive – but have been left off this analysis until we can finally see the really books and records from ALL accounts. But, I bet you know the real truth, don’t you, Luther?  I wouldn’t be surprised when all those misallocations of expenses are taken into account, that our RML motel business has cost all GGRC owners more than $3 MILLION.  Is that about right, Luther?

Grand Total Loss Caused By RML Over 16.5 Years = Nearly Two MILLION  Dollars In Provable Losses

Whew.

I know that was a lot for you to grasp, Luther, even with me putting it into baby talk for you.  I know you need a nap – but please stay with me for just a little longer so I can tie the ribbon on it for you.

As you can see, using ONLY your numbers, it is BIZARRE how you can even lie with a straight face that, “RML does not cost the HOA.  In the past it funded GGRC approximately $45,000 per year.” and ”The cost to operate GGRC remains the same with or without RML.  HOA fees would not be cut in half.”

Wake up, Luther!  Pay attention!  Have someone explain financial statements and business to you so you can “get it” and not be embarrassed by your ongoing BIZARRE behavior that forces you to lie to all owners.

Do you realize, that the verified loss of $1,915,934 out of the pockets of ALL Deer Ridge owners means RML is losing money.

Do you understand, now?

Do you realize that if you and Joey and the rest of the board had not lost all that money, every owner at Deer Ridge could go OVER SIX YEARS without making ANY monthly HOA fee payment!

Do you realize that without this RML motel business burden that everyone’s HOA monthly fees could be cut in HALF?

If you still don’t get it, find a sixth grader to explain it to you.

That’s MY Proof – Where’s YOUR Proof, Luther?

Luther, I’ve laid out every line item of MY proof, using YOUR numbers, to show that the real loss from RML is at least $2 million…and climbing – as long as you try to keep your motel business operating out of the wallets of ALL owners.

It is not “false light” when there is proof of your lies!  And, I believe you, and ALL owners, will find the above analysis to be inarguable proof of those two lies in your latest letter.  (As I said, there are SO many lies by Luther and the Gang, that I have to break them apart to step through the proof like I did here.)

But, where is YOUR proof?  No more arm waving allowed, Luther.

Let’s see YOUR detailed analysis that proves that “RML does not cost the HOA.  In the past it funded GGRC approximately $45,000 per year.” and ”The cost to operate GGRC remains the same with or without RML.  HOA fees would not be cut in half.”

Prove it, Luther.

Show all the owners why you are not the liar you appear to be.

Or, man up and admit you lied because you just didn’t understand business and how to read a financial statement – and that you have been bluffing your way through life as someone who actually knew something.  Based on how badly and completely inappropriately you have misdiagnosed me as “bizarre” and “anti-social”, I have very serious doubts that you have that PhD in psychobabble that you claim.

Since you lied about RML, maybe you are lying about your own credentials – including the claim that you have some kind of doctorate – or maybe it is one of those mail order degrees.

Once And For All – ALL Owners Can Now See The Truth

Now, Luther, you and the Gang have equal access to all of this same information.  You even have Larry Ohm, who claims he is a CPA, on the “board.”  Most of us would expect that if you combine all six brains that are part of the Gang of Six, you all would have been able to do this same level of analysis that I’ve done.

The disturbing part is that either answer is not good for the owners at Deer Ridge.

If you all were incapable, between all six brains, to do this simple analysis, then none of you have any business running GGRC since you are obviously grossly incompetent and/or grossly negligent.

If you were capable of doing this analysis, and knew the truth, but still chose to all lie to all owners about the real cost of running your motel business, then that level of misrepresentation and misappropriation should be considered criminal in my personal opinion.

Either way – stop telling The Big Lie, Luther – and start shutting down RML immediately before it continues to lose all owners even more millions of dollars.

You, and every individual “board” member has an individual fiduciary duty to protect the assets of ALL owners.

The FACT that you are losing MORE millions of dollars by keeping us in the motel business is more proof that you all are violating that fiduciary duty with your continued gross incompetence and gross negligence.

The Deer Ridge “board” has recently sent all owners two mailings.

Interestingly, they paid for postage and personnel time out of all of OUR money – in spite of their recently claimed decision to save owners money by only using email and postings to the GGRC website for all future correspondence to owners.

I guess panic on their part forces them to do even more dumb things.

Both of their mailings were filled with so many blatant lies, misrepresentations and “false light” propaganda, it is hard to know where to start…so, I’ve decided to break apart my responses into segments….so stay tuned for more responses in upcoming blog posts.

First, The Good News!

As a direct result of my efforts to find all owners a better rental management company deal, I have personally forced RML to lower their fees for the 62 owners that were on RML.  The Gang of Six has lowered their outrageous rip off 50% management fee back down to a still above market 40%.

Like me or not, agree with me or not, this happened solely because of the deal I negotiated for all owners with Cobbly Nob Rentals.  If I had not done this, I can almost guarantee that all 62 owners would have paid the 50% fee for at least all of 2012 and probably way beyond.

If your unit has gross rentals of only $10,000 a year, this means that my actions have saved you at least $1,000 for 2012. 

For all 62 owners using RML, this amounts to a $62,000 aggregate savings for 2012.

The “board” likes to falsely tout that I have cost GGRC $17,000 for legal fees as a result of my trying to force them to abide by our governing documents and Tennessee state law – and their two lawsuits against me to try and shut me up.  (As one owner put it:  They sued me first.  So they are responsible for wasting all of our money on legal fees.) Well, even if that were true that I cost GGRC $17,000 (which I did not), then this extra $62,000 that will now end up in the pockets of owners, instead of Joe Thomas’ pockets, more than offsets their wrongly claimed $17,000 cost!

RML users, you’re welcome – but there are even better savings by only paying Cobbly Nob Rentals 35% instead of 40% to RML…plus, Cobbly Nob Rentals’ track record of 50% to 60% economic occupancy is significantly higher than Joe Thomas’ abysmal 38% average economic occupancy! 

All of this means that you would very likely still end up with thousands of additional dollars in YOUR bank account at the end of 2012 if you make the move to Cobbly Nob Rentals.  But more about that later.

If Not For Me, How Many Years Would You Have Been Ripped Off By RML?

By the way, do you realize that RML was ripping off all owners for the same 50% management fee when I bought my unit in August 2005?

Do you realize that it was through my “bizarre” and “anti-social” behavior that I was able to effectuate change to the benefit of those owners using RML back then?  Check the records,  email trail and the old web site postings to verify the facts for yourselves. (“Bizarre” and “anti-social” are just two of the slanderous and libelous terms used by Luther Parker and the Gang to try and put me into a “false light.” If you notice from their mailings, Luther and the Gang try to do that to anyone and everyone who objects to the way they want to run their little fiefdom.)

What I believe that management fee history means:  That Joey and the Gang of Six would NEVER have changed the RML management fee back to 60/40 from its current 50/50 rate – and would have continued to rip off RML users for at least the next five plus years.

This means that my actions to successfully break the RML monopoly could save each owner $5,000 over the next five years for a total savings for all RML owners of $310,000 more bank deposits in their bank account instead of the bank account of RML and Joe Thomas.

You are welcome.

Gee Joe, What Changed?

There is one quick corollary to this change by the board: Why were they overcharging these 62 owners by over $62,000 a year to begin with if you can now give up that overcharge so quickly and easily???

Gee, Joe, what changed in the last 100 days since you raise the rate on these folks? (By the way, you all are STILL being charged the 50% fee at least until the end of 2011.)

Did something change in the way of spectacular performance of RML to do away with RML’s annualized $120,000 in claimed losses that necessitated this change?  (Note to owners:  The real loss is over $150,000 a year. Click RML Real Loss for details.)

Did Joe Thomas give up his entire annual compensation and benefits so that the full $120,000 annualized RML loss would be wiped out completely?  Is that why all of a sudden there was no need for continuing to rip off the RML users by the incrementally increased $62,000 a year?

Or, much more probably, did they find out that with the monopoly broken, owners were not going to choose RML once they discovered that other companies offered a much better deal!

Not A Single Penny To Me – And A Lot More Dollars To You

Joey and the Board wrongly preach that I am in some kind of partnership with Cobbly Nob Rentals.  I am not.

I also had deals from other management companies but they were at 40%.  Greenbrier, which recently merged with Cabin Fever in Pigeon Forge, was one company that was interested in managing Deer Ridge condos.  If anyone is interested, I will be glad to forward their package to you.

Also, to again be crystal clear, I certify that I am receiving zero compensation or consideration of any kind as a result of any owner renting from Cobbly Nob Rentals or any other management company.  Period.

I just want Deer Ridge Owners to make as much money for THEIR pockets as possible.  The good news is that I have already succeeded with that goal…even if zero owners change to Cobbly Nob. (Last count I heard was that 11 owners had made the change or were in the process of changing to Cobbly Nob Rentals.)

Again, the good news is that even for those of you who unwisely stay with RML, you as a group are $62,000 better off in 2012 – and over $310,000 over the next five years.  The better news is that you can make a whole lot MORE money by making the change to Cobbly Nob – and help us in our fight to shut down the illegitimate RML which has already lost GGRC owners $2 MILLION.

In the meantime, Merry Christmas!  Enjoy the extra money in YOUR pockets!

To:   Luther Parker and All Other Individual “Board” Members

Re:   Presentment Of Demands To All Individual Board Members On Behalf Of GGRC

Date:   November 10, 2011

On behalf of, and representing, Gatlinburg Golf and Racquet Club, aka GGRC, I hereby demand the following from all individual board members of GGRC and Ridge Management, Ltd. (“RML”).

• That RML be immediately shut down to stop the hemorrhage from massive cash flow losses that are jeopardizing GGRC’s financial future.
• That the 2012 budgets reflect no activity for RML.
• That Joe Thomas be fired for cause as a result of ongoing massive losses caused by his management of RML and the inability of GGRC to pay his excessive and above market compensation.
• That the 2012 budgets reflect that all HOA monthly fees be cut by 50% as a result of no longer losing money from operating RML and no longer paying the above market compensation of Joe Thomas.
• That an insurance escrow account be established and funded in full accordance with the GGRC Master Deed, Article X, entitled “Insurance”, that provides in Section 3 that all owners are to pay a separate check for their pro rata share of the Common Expense for insurance so that it can be deposited into a separate trust account.
• That all discrimination against resident owners cease immediately.

The above points are more fully described below.

However, the bottom line:  If these demands are not immediately and fully implemented, we intend on pursuing an emergency request for the Judge in our case to place a court appointed receiver in charge of all aspects of Deer Ridge Mountain Resort and remove this board and Joe Thomas from any and all decision making.

If these demands are not met, we intend on presenting motions for this and other actions, during the scheduled December 9, 2011 hearing on our motion for partial summary judgment.

Immediately Shut Down RML And Fire Joe Thomas

You admitted in the August 2011 board minutes that RML lost over $58,000 for the first six months of  2011.  You admitted you were arbitrarily shifting approximately $16,000 in RML expenses to GGRC in order to “cook” the books and misrepresent the real cost of operating RML.

This admitted loss extrapolates to a nearly $120,000 admitted loss for RML each year.  By my calculations, the real loss with honest cost accounting is over $150,000 a year.  This represents over HALF of all HOA fees collected each year from all Deer Ridge owners.

As a consequence, by shutting down RML, our HOA would no longer have to pay these monies out to support RML and could cut all HOA fees in half – which is the best thing for ALL owners.

As you know from prior correspondence, I have successfully negotiated a rental management deal with Cobbly Nob Rentals.  They are bigger, more experienced, generate better results for owners in gross collections and is significantly less expensive than RML.  RML is, in fact, charging all Deer Ridge owners a rental management fee that is 43% higher than the Cobbly Nob Rental deal.

As a consequence, all owners are better off using Cobbly Nob Rentals than RML for two reasons:

1. They get to deposit that extra 43% in their own bank accounts
2. All owners save half of their annual HOA fees that are currently being squandered on supporting RML’s huge negative cash flow.

RML has always lost owners a lot of money.  By my calculations, over $1.3 million.  By Joe Thomas’ own accounting, even with improper cost accounting, RML lost GGRC home owners over $359,000 over a ten year period from 1995-2004.

Again, these are numbers from Joe Thomas showing at LEAST a $359,000 loss that was paid for out of the pockets of every Deer Ridge owner during this 10 year period.

Irrespective of the fact that I believe that RML is totally illegitimate according to our Master Deed and Bylaws, the above numbers show how incredibly stupid it is for GGRC to be in the motel business.

There are only massive losses and no upside potential for Deer Ridge owners.  And, with the deal that I successfully negotiated with Cobbly Nob Rentals, all owners who want to rent their unit now have a much more cost effective solution by a better, more established and successful company that let’s them keep 43% more money in their pockets.

• How can you all, as individual board members, even recommend that any owner waste 43% more of their money by using RML when there is a better alternative available to all owners who want to rent their unit at no cost and no risk to GGRC?
• How can you all, as individual board members, even recommend that RML be continued when it is clearly NOT in the best interests of GGRC and all owners when HALF of all HOA fees are going to feed the huge RML negative cash flow?
• How can you all, as individual board members, even recommend that RML be continued when you are wrongly charging at least 20 owners who do not use RML services – and still get charged pro rata for the massive cash flow loss of past years and even the first six months of 2011?

As a consequence, prudent management requires that RML be shut down immediately and certainly before the end of calendar year 2011 so that GGRC and all owners do not continue to hemorrhage massive losses from the bank account of GGRC and the pockets of all owners.

Every month of delay is costing GGRC nearly $10,000 right out of our bank account – and those funds are lost forever.  And, each month that goes by where more and more Deer Ridge owners give RML their 60 Day Termination Notice so they don’t have to pay the 43% higher fee – the negative cash flow for RML will skyrocket.

For every two dozen owners who are smart enough to change from RML to Cobbly Nob Rentals, RML will lose another $120,000 a year or more.

This would DOUBLE the current $10,000 a month negative cash flow to $20,000 a month – or nearly $250,000 a year LOSS from RML! 

As a result, any budget projections shown by Joe Thomas for RML for 2012 will be based on smoke and mirrors since he has no way of knowing how many of the 63 owners that started the summer with RML will stay with RML.  As I understand it, Cobbly Nob already has signed contracts or indications of intention from a DOZEN owners.

Are you going to DOUBLE everyone’s current assessment to cover this huge negative cash flow and keep us all in the motel business, no matter what?

What happens if or when three dozen or even four dozen owners are smart enough to keep that extra 43% in their pockets?

How much will you lose us between now and the inevitable end when you will have no choice but to shut down RML?

It is past time to shut down RML.  Shut it down!

On behalf of GGRC, I hereby demand that the individual board members vote during the November 11-12, 2011 budget board meeting to shut down RML before the end of 2011.  This presentment is to officially put each and every board member on notice that you are considered to be guilty of gross negligence and gross mismanagement by continuing to squander GGRC assets through your ongoing operation of RML.

As such, you may not be afforded any protection under the indemnification clauses of our Master Deed and Bylaws and may be held personally accountable for the repayment of these squandered funds.

Part of this shut down also includes firing Joe Thomas who is directly responsible for the abysmal results of RML for the past two decades.

GGRC does not need his services nor his exorbitant pay package that is significantly above market.  On behalf of GGRC, I hereby put all individual board members on notice that you are guilty of gross negligence and gross mismanagement by continuing to squander GGRC assets through your ongoing employment of Joe Thomas.

Cut ALL HOA Fees In Half

As the arithmetic shows, without RML and without the huge salary package of Joe Thomas, over half of our annual HOA fees could be cut so that ALL owners benefited from these reduced costs.

On behalf of GGRC, I hereby put all individual board members on notice that you are guilty of gross negligence and gross mismanagement by continuing to squander GGRC assets by overcharging all owners for their monthly and annual HOA fees and demand that the 2012 budget for GGRC properly reflect HOA fees that are HALF of the current amounts charged to ALL owners.

Insurance Escrow

It is clear that you all, as individual board members, have not established and maintained the required insurance escrow account that is mandated by the GGRC Master Deed.

To protect all owners, the Master Deed (see below) requires that all premiums are escrowed in a separate escrow account to ensure that the funds are available when the annual premium becomes due…and that the full amount of the premium is required to be totally escrowed at least 60 days prior to the due date of the annual insurance premium.

I am highly concerned that there has never been any attempt of any kind by Joe Thomas and the “board” for any owner to abide by this requirement since my purchase in 2005.

I am further concerned that all owners at Deer Ridge are not being afforded the economic protection provided by Article X Section 3 of the Master Deed. I believe there may not be any separate escrow account established and properly funded in accordance with Section 3 of Article X.

Since the annual insurance premium is substantive at approximately $50,000, my calculations show that approximately $5,000 should be escrowed each month so the amount of the account balance should be sufficient to pay the annual $50,000 sixty days prior to the due date as required by the Master Deed.

On behalf of GGRC, I hereby demand that the individual board members vote during the November 11-12, 2011 budget board meeting to form and fully fund this required insurance escrow before the end of November 2011.

This presentment is to officially put each and every board member on notice that you are considered to be guilty of gross negligence and gross mismanagement by continuing to jeopardize GGRC assets through your ongoing violation of the above insurance article of our Master Deed.

Likewise, as required by the above section, I hereby demand on behalf of GGRC that the 2012 budget and payment schedule required of each owner reflect that a separate payment be made by all owners that is properly written for direct deposit into this separate and dedicated insurance escrow account.

Discrimination Against Resident Owners

We believe that Joe Thomas and some, or all, “board members” have conspired to discriminate in both overt and subtle ways against resident owners and others who do not use the motel services of RML.

These include:

• Instructing and rewarding certain “guests” to intentionally make as much noise as possible in units directly above a resident owner’s unit.  We know as a fact that this has happened numerous times and intend on requiring current employees to provide their depositions and/or sworn interrogatories with regard to their knowledge and participation in said harassment as well as having our attorney contact those “guests” who were present during those times of intentional noise harassment.  We believe that neither employees or past guests will risk the consequences of perjury to protect known instigators of this activity.
• Limiting the use and contents of owner’s balconies and landings in ways that are clearly aimed at resident owner’s use as differentiated from balcony and walkway landing use and needs of tourists who only stay a few days.
• Limiting the use of the common area parking lot in ways that are clearly aimed at resident owner’s use as differentiated from parking lot use and needs of tourists who only stay a few days.
• Interfering with, or delaying, mail delivery.
• Attempting to control property sales to only those new owners who indicate a willingness to use the motel services of RML.
• Requiring resident owners to notify the office if they are going to be absent from their own unit for even one night.
• Interfering with the use of common areas by resident owners and their guests.
• Etc.

On behalf of GGRC, I hereby demand that the individual board members immediately take whatever steps are necessary to stop the ongoing harassment and attempted intimidation of all resident owners and to ensure that it never happens again.

Court Appointed Receiver To Take Over All Operations And Decisions Regarding GGRC, RML and Deer Ridge Mountain Resort

If the above demands are not met during the November 11-12, 2011 board meeting, we intend to file emergency motions with the Court during our scheduled hearing on December 9, 2011.

• The first will be to require that all monies be paid to the Court by GGRC that are supposed to be in a separate escrow account for the property insurance that equals approximately $50,000 a year.  Our Master Deed requires this separate escrow account to protect all owners.  Our “board” has chosen to ignore this part, and so many other parts, of our GGRC documents, with the result that they have put all owners at significant risk.  By requiring the funds to be paid into the Court, these monies can be protected.

• An emergency motion for the Court to appoint a receiver to take over all management and control of GGRC.  The “board” continues to keep our HOA in the money losing motel business.  According to their own board meeting meetings in August 2011, they were forced to admit that they lost over $58,000 of OUR money during just the first six months of 2011.  This is money that is gone forever from our GGRC reserves.  This amounts to almost $120,000 a year.  On top of this, they are trying to fool all owners by wrongly allocating an additional $16,000 a year in RML expenses by showing them to be GGRC expenses.  If all cost accounting were done properly, RML would be shown to lose over $150,000 a year – or more than HALF of our HOA fees that all owners pay to GGRC each month.  I successfully found a better management company for all owners who want to rent their unit.  RML charges 43% more than Cobbly Nob Rentals – so there is no need for RML by any owner.  Since the “board” is unwilling to shut down RML, and continues to mismanage and negligently operate GGRC, we will immediately seek that a court appointed receiver take over all operations – and remove all decision making from Joe Thomas and every member of the “board.”  If we don’t do this, GGRC is at significant risk of being forced into bankruptcy.

These are just two of the additional motions we intend to aggressively pursue in court on December 9th.

Additionally, if the “board” tries to implement ANY changes to the rules and regulations that are deemed to be discriminatory against resident owners, including new limitations regarding balcony use or the like, we will also document this ongoing and flagrant pattern of discrimination before the Court.

It is our strong belief that the Court will take into account the many ways that the current “board” is both blatantly ignoring the governing documents of Deer Ridge and GGRC and creating the financial peril that has resulted from the board’s continued operation of its motel business through RML.

As a consequence, we are confident that the Judge will agree with our motion that a court appointed receiver immediately take over ALL decision making for GGRC – including shutting down RML and making all books and records required by the Tennessee Horizontal Property Act available to ALL owners who want to see exactly what has been happening on this property for the past decade.

Updated Derivative Action Lawsuit

In addition, this document is presentment of these issues on behalf of GGRC to all individual board members.  It is our intention to incorporate these demands, including the discrimination against resident owners, in our updated derivative action lawsuit against Joe Thomas and each individual board member.

We expect this updated derivative action, showing at least SEVEN Deer Ridge owners as co-plaintiffs, to be filed with the Court in the very near term.

You Have Been Warned

Individual board members, you have been warned.  Govern yourselves accordingly as an individual who can be held individually liable for both gross mismanagement and gross negligence.

On behalf of GGRC,

Robert Goodman, Owner
———————————–

Legalese On

GENERAL DISCLAIMER FOR ALL PAGES AND POSTS AND EVERYTHING ELSE I DO OR SAY REGARDING DEER RIDGE AND ANY AND ALL RELATED PARTIES:

Note: This email, and the information on any and all other posts and pages by me about General Manager Joe Thomas, GGRC, RML and /or the Board of Directors and its members, or any related topics, are my personal opinions based on my ongoing investigation into the actions and inactions of the GGRC and RML Board of Directors and / or Joe Thomas, General Manager.

While I believe these allegations to be true based on my objective analysis, these opinions remain as only allegations until I, or others, prove things in court.

My goal is to offer all owners all the information and evidence that I have available so that everyone can reach their own conclusions.

Please note the obvious:

Everything I ever say or write in person, via emails, or on my blog, about Deer Ridge or any and all related entities and organizations or any and all affiliated personnel or owners, is strictly my own personal opinion of course – based, in part, from my owning a unit at Deer Ridge for over five years – and on my own personal history.

That history includes earning a Presidential MBA degree, being awarded a Bachelor of Science, With Honors, in Engineering Physics from UT, working for NASA as a rocket scientist at Marshall Space Flight Center, 30 years of CEO experience directly employing and managing many hundreds of people at multiple companies I personally started and operated (including one that I took public), 15 years experience buying and selling over $100 million of property and managing more than 45,000 rental units – AND being able to read and do four-function arithmetic.

Legalese – And Powered Wig – Off

Two Major Issues To Be Decided During December 9, 2011 Court Date

We have a scheduled court date one month from today on December 9, 2011 – that could change everything at Deer Ridge.

On May 25, 2011, I filed a motion for a partial summary judgement against GGRC and the individual “board” members in response to their lawsuit against me for non-payment of the Asinine Assessment.

My motion for partial summary judgment contends that this was a $353,500 “special assessment” that illegitimately required owners to pay the wrong amounts – and to pay for improvements that had not been properly approved.

If I win on just these two points, it will have a massive, permanent impact on the way things are done at Deer Ridge Mountain Resort.

• It could mean that the special assessment may be rescinded in full by the Judge – or that everyone’s payment amount has to be recalculated – including requiring the “board” to return part or all of the payments made by some or all owners.
• It could mean that the individual board members may be held personally liable to repay over $200,000 that were paid on improperly approved alterations and improvements.

If you click on the below image, you can download and read the full 17 page motion to see our major points of issue.

Why A Partial Summary Judgment?

As you can see from the motion, all we are requiring is that the Judge simply read the GGRC Master Deed and Bylaws and rule on his interpretation of these documents.  There is no testimony that is needed – just an interpretation of the documents.

It is my belief that our Master Deed and Bylaws are crystal clear:

• That they require a very specific formula for pro rating all assessments, both monthly and special, that are dependent on the size condo you own at Deer Ridge.  It is our contention that the “board” continues to violate the governing documents for Deer Ridge by charging the wrong amounts for all monthly assessments and for any special assessments.  Based on my calculations, all 30 of the owners who own a 1-1 unit at Deer Ridge are being overcharged by 82%!
• That ALL improvements and alterations, irrespective of cost, require BOTH a 75% positive vote of all owners AND a 90% positive vote of all mortgagees. It is our contention that the 75% vote has been rarely done – and that the 90% has NEVER been done.  If this is ruled in our favor, this means that the “board” acted ultra vires – which means that they knowingly spent a huge amount of OUR money without the proper approvals – which subjects them to potential liability to repay GGRC these monies.

All we are requesting with this motion for partial summary judgment is that the Judge read the 89 page GGRC documents and rule based on his interpretation.

Our hope is that he will quickly see that our interpretations are the only ones that make any sense – and not the contrived, illogical and stretched interpretations that the “board” has depended on for so many years.

If we lose on the motion for partial summary judgment, we have several other defenses that we will use in the trial – defenses that require evidence and testimony that are not allowed for summary judgement but are allowed in trial.  However, we are highly confident that the Judge, upon reading our Master Deed and Bylaws, will rule in favor of our interpretations.

Get Ready For A “Run On The Bank” If We Win This Partial Summary Judgment On Voiding The Special Assessment

If we win just one of the two major defenses in this partial summary judgment AND win this one part of our ongoing lawsuit, it may possibly have the effect of negating the “special assessment” for everyone – especially those who push the issue in Court like we have.

The problem for the “board” is that they and Joey have already spent your money!

In our case, we already have our money – because we were smart enough to not pay it to them in the first place.  For all owners who have paid, if we win even one of the two points, I would recommend that you hurry up and get in line to get your money back as soon as you can.

Note: I am NOT an attorney and do not give legal advice. Ever.  Period.

However, from a business perspective, I would strongly advise you try and get your special assessment back ASAP.

You might consider taking the above 17 page document to your own attorney and have them use this as the basis of your own lawsuit against GGRC and the board for recovering your own two payments made on the “special assessment.”  By using our document as a starting point, you might be able to save yourself some legal fees.

The other, derivative impact will be an immediate, required change to the monthly assessments that all owners pay to GGRC each month.

Repayment of $200,000 By Board Members As Individuals

If we win on the 90% mortgagee issue on this motion for partial summary judgement, it is my hope that this will make the individual board members personally responsible to repay the more than $92,000 (26% of the total “special assessment”) that was illegitimately spent on the walkways and lighting improvements and alterations since their actions were ultra vires.

Of course, this partial summary judgement ruling will just deal with the $92,000 of illegitimate Article XII funds that have been spent without proper authority. Based on my initial analysis of several expenditures made by the board, I calculate that all illegitimate Article XII funds spent already exceeds $200,000.  These are monies that required a 75% vote of ALL owners AND the vote of 90% of ALL the mortgage holders for all mortgages at Deer Ridge.

My personal goal if we win on this 75% / 90% issue is to force the individual board members to repay ALL $200,000 back to GGRC along with interest, etc. with our derivative action part of our countersuit.

While We Are In Court – Other Motions May Also Get Decided

Since my attorney and I will already be there, we intend to present other motions before the Judge:

• An emergency motion for the Court to require all monies be paid to the Court by GGRC that are supposed to be in a separate escrow account for the property insurance that equals approximately $45,000 a year.  Our Master Deed requires this separate escrow account to protect all owners.  Our “board” has chosen to ignore this part, and so many other parts, of our GGRC documents, with the result that they have put all owners at significant risk.  By requiring the funds to be paid into the Court, these monies can be protected.
• An emergency motion for the Court to appoint a receiver to take over all management and control of GGRC.  The “board” continues to keep our HOA in the money losing motel business.  According to their own board meeting meetings in August 2011, they were forced to admit that they lost over $58,000 of OUR money during just the first six months of 2011.  This is money that is gone forever from our GGRC reserves.  This amounts to almost $120,000 a year.  On top of this, they are trying to fool all owners by wrongly allocating an additional $16,000 a year in RML expenses by showing them to be GGRC expenses.  If all cost accounting were done properly, RML would be shown to lose over $150,000 a year – or more than HALF of our HOA fees that all owners pay to GGRC each month.  I successfully found a better management company for all owners who want to rent their unit.  RML charges 43% more than Cobbly Nob Rentals – so there is no need for RML by any owner.  Since the “board” is unwilling to shut down RML, and continues to mismanage and negligently operate GGRC, we will immediately seek that a court appointed receiver take over all operations – and remove all decision making from Joe Thomas and every member of the “board.”  If we don’t do this, GGRC is at significant risk of being forced into bankruptcy.

These are just two of the additional motions we intend to aggressively pursue in court on December 9th.  Additionally, if the “board” tries to implement ANY changes to the rules and regulations regarding balcony use or the like that are discriminatory toward resident owners, we will also aggressively challenge the “board” by showing an ongoing and flagrant pattern of discrimination.

In addition to all of the above, our attorney is currently working on additional, new filings with regard to derivation action against ALL “board” members, deceptive trade practices by Joe Thomas and other actions that are anticipated in the very near future….including SIX more Deer Ridge Owners joining our lawsuit against Joe Thomas and all “board” members.

We Live In Interesting Times!

Stay tuned….we may be seeing paradigm shifts in the way things have been done for many years at Deer Ridge.  And justice may start December 9, 2011.

I received the following comment last night from Neil Blair, one of your fellow owners at Deer Ridge, about his decision and experience changing from RML to Cobbly Nob Rentals.

Six Down / 57 To Go?

Neil mentioned to me that Cobbly’s General Manager Doug Sharp said that four Deer Ridge Owners have now signed up with two more already in the works.  That will bring to SIX the total number of owners who are already benefiting from the deal I negotiated with Cobbly that can help all owners from paying 43% more for rental management when compared to the outrageous fees of RML.

There are effectively 78 owners at Deer Ridge (some owners own more than one unit.)  Approximately 15 owners are either residents or do not rent out their units.  That leaves about 63 owners who do want to rent their units.  Based on the above, 6 of these have already made the move – and that’s before most owners even know about the new Cobbly Nob Rentals deal.

We plan on contacting all owners in the very near future – and are confident that many of the 60 or so owners who are still using RML will make the change immediately.  After all, who doesn’t want to save themselves 43%?

My hope is that at least three dozen of the 60 owners who are using RML are smart and make the change.  If so, this would only leave about 24 owners who are staying with RML for some reason.

• Of course, at some point even the “board” will have to recognize just how grossly negligent they are by trying to keep a money losing motel business going…and will have to shut down RML.
• With RML already losing $10,000 a MONTH, how much will they lose each month of OUR HOA MONEY as the smart owners change over to Cobbly Nob Rentals?
• How much MORE will they raise their management fee to those owners who stay with RML?
• How much MORE creative accounting will they use to hide what RML really costs – as more owners leave and sign up with Cobbly?
• How will they show a believable and justifiable RML budget for 2012 that is due in all owners’ hands no later than December 1, 2011?
• How much more of OUR money will they waste in the coming months desperately trying to keep the RML doors open?

Of course, the good news is that once RML is shut down, we should be able to cut the HOA Fees for ALL owners in HALF!

Dear Board: Get A Clue.

Pay attention, “board.”

I found us a much better deal for ALL owners that will save ALL owners THOUSANDS OF DOLLARS a year EACH for  those who change to Cobbly Nob Rentals.

(As a matter of fact, you all as a “board” SHOULD have been the ones, under your fiduciary responsibility, to search out and find the best rental management deal for all owners – instead of continuing to lose all owners money by insisting that RML stay in the motel business!)

As a “board”, you should all want what is best for ALL owners and staying with RML is no longer good for ANY owner – unless, in my personal opinion, some owners or board members are getting “special treatment” that is unavailable to all owners who use RML.

Board Members:  Admit it now – and save all owners and our HOA from squandering tens of thousands of MORE dollars trying to keep the already technically bankrupt RML on life support with OUR money.  Remember, each of you, individually, can be held personally accountable for gross mismanagement and gross negligence – and the Bylaws do NOT indemnify you for this!

Tick. Tock.  Every day of more squandered money – is more money each of you could be held liable for paying back to our GGRC HOA.

Neil’s Comment On Signing Up With Cobbly Nob Rentals

Here are Neil’s comments from last night:

Called Doug’s office, he was not in, but the young lady I spoke to called him with my cell number and, within 10 min., I was speaking to Doug. I just e-mailed my Cobbly Nob Management Agreement to them yesterday.

After using my unit this week-end, it will be managed by Cobbly Nob Rentals.

I have had several resort rental units in Florida. The rental company has always been on site, but never owned and operated by the home owners association.

It is my considered opinion that the Home Owners at Deer Ridge do Not need to be in the rental business since it causes too many problems, and liabilities, for the owners.

I strongly believe that any board of directors that tries to oversee 3 separate entities, all at the same time: A Home Owners Association, Rental Management Co. and a Real Estate Brokerage. would have too much to manage. Then, add in the fact that the same one person that manages our Home Owners Assoc. ALSO Manages the rental company and ALSO runs the real estate brokerage company.  Then, consider that same person is also PAID to run all 3 and juggle the best interests of all 3…

Any Manager and Board Would Have a VERY hard time keeping the best interests of all 3 entities in focus.  I have seen and heard our board go back and forth on matters of great concern regarding one or the other entity, while doing the best they can, it is very hard for them to make the hard decisions with the homeowners’ best interests solely in mind.

I truly believe we need to have our board FOCUS on keeping the property at Deer Ridge their ONLY Concern.

Let anyone you wish manage your rentals,  but we need to get back to the real business at hand here of strictly managing our HOA and that, in my opinion, should be the SOLE focus of our board.

Neil Blair  C-208

Thanks, Neil!

Save Yourself 43%

If you, too, would like a better property management company, if you would like more rented nights and if you would like to avoid being overcharged by 43% by RML, then click Avoid the RML Rip Off for details!

PPS: Don’t forget – if you sign up with Cobbly Nob Rentals in the next 30 days, you get a ZERO cost transfer! Call Doug Sharp’s personal cell phone at 865-548-3722 and get signed up today while this ZERO cost transfer is still available.

I just got the following comment from ANOTHER Deer Ridge Owner who has chosen to give RML the required 60 day notice so that they could benefit from the deal I cut with Cobbly Nob Rentals.

I cut this deal so that all of our owners who want to rent their unit could save 43% over the outrageous and greedy rates of Ridge Management LTD (RML) that is run by Joe Thomas and the “board.”

Cobbly Nob Realty and Rentals, Inc.  is also a full service real estate brokerage agency and can help you sell your Deer Ridge unit – meaning that you do not have to use Joe Thomas and the money losing Ridge Resort Realty!

This was the comment from Jim and Wanda:

Wanda spoke with Doug Sharp and she’ll relate that in a couple of lines. We terminated our agreement with Deer Ridge and got a fax response and email response (that I asked for) from Mr. Thomas to make sure it was a done deal. So come December 10 we are out of that arrangement. And now, Wanda!

I spoke to Doug Sharp on the 13th of October. He was very accommodating and graceful in answering all 17 of my questions. Doug said he would have 3 quotes on new carpet, which we think our condo needs, available for us when we come down on November 11th for a weekend stay.

In addition, he will take care of the installation and hookup for a flat screen TV as well as the carpet that we want. He even has an arrangement with an electronics business where the products are cheaper than we could get elsewhere.

The breaks he gave us for coming over were just great! His goal is to assist us in making the move as easy as possible. I am very pleased with our conversation and we are really looking forward to working with Cobbly Nob.

Thank you Robert for making this possible!

Wanda and Jim Goebel

Thanks, Wanda and Jim!

If you, too, would like a better property management company, if you would like more rented nights and if you would like to avoid being overcharged by 43% by RML, then click Avoid the RML Rip Off for details!

PPS: Don’t forget – if you sign up with Cobbly Nob Rentals in the next 30 days, you get a ZERO cost transfer! Call Doug Sharp’s personal cell phone at 865-548-3722 and get signed up today while this ZERO cost transfer is still available.

Click Here For Updated Owner Comments!

I’ve been working hard to find a better rental management company for all Deer Ridge owners.

Ever since RML raised their rental management fee to a grossly unfair 50% rate that is significantly higher than most, if not all, other management companies in the area, I’ve been determined to get everyone a better solution – at a much lower rate.

How would you like to save yourself 43% while using a better management company than RML?

After discussions with several companies, I am pleased to announce that I have successfully negotiated a deal with Doug Sharp, General Manager, Cobbly Nob Rentals, the largest rental management company in this part of Gatlinburg, to offer all owners the following terms.

(Note that I am not involved with what you do with Cobbly Nob Rentals – and I am not getting paid a nickel for any of this.  I just want what is best for getting the most money into the pockets of ALL Deer Ridge Owners – not just the Gang of Six.)

Executive Summary

Save yourself 43% and earn up to an additional $4,000 to $6,000, or more, per year to deposit in YOUR bank account by renting your Deer Ridge condo through Cobbly Nob Rentals instead of continuing to use RML.

***  UPDATE:  FOUR DEER RIDGE OWNERS ALREADY SIGNING UP WITH COBBLY NOB RENTALS ***

Details

I have successfully negotiated a management fee SUBSTANTIALLY less than the 50% currently being charged by RML and even a lot LESS than the old rate charged by RML!  The rate is SO low, I have been asked not to quote it on this blog – but I will be glad to give you the quote by phone or by email.

All maid service and weekly security checks with walk throughs of your unit are included at NO extra cost.

If you do the math, this means that RML is taking 43% more out of each rental collection than Cobbly Nob!  That means that RML will take 43% more for its management fee than Cobbly Nob – out of EVERY dollar in collected rents.  Wouldn’t YOU rather have this 43% difference in YOUR bank account?

As a result of both the MUCH lower management fee AND the significantly higher economic occupancies obtained by Cobbly Nob Rentals, the average unit owner at Deer Ridge should be able to pocket up to an ADDITIONAL $4,000 to $6,000 per year. (Results may vary – but that is my best calculation so do your own!) That is an ADDITIONAL $4,000 to $6,000 per year in YOUR bank account instead of it going to RML and/or into Joe Thomas’ salary package that was raised this year by the “board.”

My guess is that it should be a “no-brainer” for almost every owner to get up to an ADDITIONAL $4,000 to $6,000, or more, per year in YOUR pocket.

Of course, there are no guarantees in life but based on Joe Thomas’ abysmal average economic occupancy of only 38% per year, there may be even more upside potential for net rental income to all Deer Ridge owners by using a more effective rental management company.

Think how small, to non-existent, those rental income checks have been from RML during non-prime time months.  How would you like your unit to see a LOT more use – even in the non-prime time months?

Cobbly Nob Rentals is so convinced you will see a substantial improvement in service and collections that, with this new rental agreement, you can cancel at anytime with ONE DAY notice!

Owners can use their unit whenever they want with zero penalties.  No prime time use tax like RML used to charge.  It is your unit to use even if you want every holiday and the entire month of October.

Cobbly Nob Rentals has been here for 34 years, is family owned and operated, is substantially bigger than RML and is more successful with their marketing.  You can check out their web site by clicking  Cobbly Nob Rentals.

At the top of their web page, where you see One Bedroom, Two Bedroom, etc., they will add a new major button solely dedicated to Deer Ridge rentals.  They will also include other marketing on the web and via print to highlight that they now offer Deer Ridge rentals. Their ad budget is probably 3-4 times that of what is spent by RML each year.  Based on what he told me his web strategy is for Deer Ridge, his ads for your property will show higher on Google than Joe Thomas will with Deerridge.com.

With Cobbly Nob’s better and larger marketing budget, those owners who are smart enough to sign up with Doug will probably see more traffic and more rented nights than those owners who blindly stay with RML.

Here’s the kicker:  If you sign up with Cobbly Nob in the next 30 Days, Doug has agreed that there will be ZERO cost to you for transferring!  No cost for web set up, photo shoots, or even the annual linen cost!  Zero.  Nada.

Sound good?  Of course it does!

Offer Letter From Cobbly Nob Rentals

This is the letter I got from Doug yesterday that he wanted me to share with all Deer Ridge Owners:

You would have to be a dummy not to take this deal – especially after being gouged by RML with a grossly uncompetitive 50% management fee!

Even the “board” members should rejoice over how this benefits ALL owners – plus take this deal for their own units. (They won’t support this change.  For “whatever” reason, Joe Thomas and the “board” insist on keeping the money losing RML operation in spite of it bankrupting GGRC.  Their gross incompetence and gross mismanagement makes you wonder, huh?)

Actually, it is my personal opinion that this deal is SO good, that the only folks who don’t take the offer must be getting some kind of “extra” consideration and “benefits” from RML that are not available to ALL owners.

Three Quick Steps To Make The Change

I’ve worked hard to make this changeover as easy as possible for all Deer Ridge Owners.  Here are the three quick and easy steps that you need to do today:

1. Email me for a copy of the pre-negotiated rental management agreement.  Doug has asked that I not post this super deal agreement on the Internet, so just email me and I will send you a copy of the already initialed contract for you to complete (or just call Doug Sharp and get it from him.)
2. Review the agreement for yourself and call Doug with absolutely any questions that you may have. He can explain the details to you and help you complete the contract.  Doug’s office number is 865-436-5298. (Doug just told me to have you all even call him directly on his personal cell phone at 865-548-3722 if you have ANY questions at all!) If you like what you hear and read, sign the agreement.  If you don’t like what you hear and read, keep doing what you are doing and keep getting what you are getting.
3. If you want to change, then the last step is to print out the following sixty day notice that RML requires for you to cancel your current deal with RML.  Once you print it out or copy and paste the below info – sign it, then email, fax and snail mail a copy to Joe Thomas.  His fax number is 865-430-3248.  His email address is manager@deerridge.com. (I strongly suggest you do all three notifications just so Joe can’t claim he never got notice!)

Here’s the wording you need to use for your 60 day notice of termination to Joe Thomas:

RIDGE MANAGEMENT LTD.
3710 Weber Road
Gatlinburg, TN 37738
Fax (865) 430-3248

In accordance with Sections A-4b, F and G of the RENTAL PROGRAM PARTICIPATION AGREEMENT between the undersigned and Ridge Management Ltd., (hereinafter “RML” or “Agent”), DBA Deer Ridge Mountain Resort, I hereby provide you with this written sixty day notice of termination, with said sixty day notice commencing today.

Please return a confirmation receipt and acknowledgement of this notice of termination.

Thank you.

Unit Owner – Printed: _____________________________________

Unit Owner – Signature: ___________________________________

Unit Number: __________________________________________

Date: ________________________________________________

Address: ______________________________________________

Address: ______________________________________________

Email: ________________________________________________

That’s it.

While you are waiting for the required sixty day clock to tick down, Doug will immediately start taking photos and adding your unit to the Cobbly Nob website – and even start taking bookings for it, effective the day after your sixty days are up.

(Of course, you could ask Joe to waive the sixty day notice period – and being the good Christian I am sure he is, he will probably be glad to do that for you so that you could more quickly enjoy more net rental income into your pocket.)

Think about this:  By the time 60 days are up, we will already be into the low demand winter months.  If Doug is right, he will still be able to show you his success with significantly increased rental income in the winter months.

If you don’t like the success he shows you, with his ONE DAY cancellation, you can quit next spring and move back to RML if you really think THAT is a good idea.  With this approach, there is literally ZERO downside for you taking this deal – if you make a move in the next 30 days!

Choose Who You Want – But Don’t Choose RML

I’ve worked hard to find all owners a “no brainer” deal that will be a tipping point change to the “business as usual” attitude that has cost all of us dearly over the past years.

• There is NOTHING in our Master Deed and Bylaws that even authorizes GGRC to start a company like RML – let alone one that is losing over $10,000 a month out of GGRC’s bank accounts.
• There is NOTHING in our Master Deed and Bylaws that requires all owners to only use one rental management company.
• In spite of what Joe Thomas or Luther Parker preach, there is NOTHING that is “Deer Ridge Patriotism” about using RML.  On the contrary, it just enables them to continue feeding OUR money into RML which is already in technical bankruptcy.
• Our Master Deed says that each owner at Deer Ridge can use whatever means, whatever company, they want to use to rent out (or not rent out) their own condo.
• There are other rental management companies in Gatlinburg and Pigeon Forge out there that want your business, too.
• You are welcome to use whoever you want to go with.

One of the past businesses I started was a property management company that ultimately managed over 45,000 rental units.  As a consequence, I knew what to look for and I knew what questions to ask as I sought out the best alternative that would benefit all Deer Ridge Owners.  I’ve used that experience and expertise to find and negotiate the best deal possible for you and your unit.

I’ve talked with several management companies, and it is my objective opinion that Cobbly Nob Rentals is the best choice.

Doug is giving all Deer Ridge Owners GREAT incentives to move over to Cobbly Nob Rentals immediately – including offering a ZERO cost transfer IF you sign up with him in the next 30 days!

Doug has convinced me that his organization is ready to take over the rental management of between a few units to ALL units at Deer Ridge now.  His organization has the immediate capacity and desire to handle all 64 units currently managed by RML plus any other owner, like us, who has not wanted to use RML.

Besides doing all that I can to help all owners at Deer Ridge net the most money possible from their rental activities, I am also motivated to get owners a more than fair deal so we can all shut down RML and save our HOA from bankruptcy from the current $10,000 a month negative cash flow Joe Thomas is losing us every month.

RML – An “Admitted” Loss of $10,000 A Month Out of GGRC’s Bank Account!

Did you read beyond the propaganda and diatribe in last month’s “board” meeting minutes?  Did you see what Larry Ohm and Joe Thomas had to finally admit?

In case you missed it, here is a snapshot grab from what they sent to all owners:

Do you see that the “admitted” loss for the first six months of 2011 was $58,077.57???

That $58,077.57 is gone forever from our GGRC bank account – money that could have been held in a reserve account so no future “special assessment” would be needed.

Instead, what Larry Ohm and the “board” have proposed is that EVERYONE’S HOA fees go up by $70 a month starting next year.  That is $70,560 MORE each year that they want to collect out of OUR pockets to really feed even more wasted money into the black hole called RML.

As you will see below, if we got rid of RML, we could CUT everyone’s HOA fees in HALF – instead of raising everyone’s fees by $70 a month.

That $58,077.57 RML loss, just for the first six months of 2011, amounts to almost $10,000 a MONTH that is being drained out of GGRC each and every month.  That amount, annualized equals nearly $120,000 a YEAR that is being squandered by the “board” and Joe Thomas by them insisting that we continue to operate our own motel business.

Of course, that is just the “admitted” loss with Joe Thomas and the “board” doing their usual creative accounting to cost allocate expenses to GGRC financial statements that are clearly and totally related to our motel business and should properly show on RML’s financial statements.

If these financials were accurately shown, my calculations show that the RML loss would exceed $152,000 a YEAR.  You can check my figures and how this number was derived by clicking The Truth Will Set You Free.

As you can see from the quote from Cobbly Nob Rentals, other, independent companies are eager to take over the rental management business for those owners who are interested in renting out their units.  Companies, such as Cobbly Nob, can do this because they are big enough to have economies of scale to make the numbers work.  RML, with just Deer Ridge, will always be a money losing deal for our HOA.

Do you realize that for all of calendar year 2010, GGRC collected a total of $290,580 from ALL owners at Deer Ridge for their monthly HOA fees???

Do you realize that the annualized 2011 negative cash flow of about $120,000 caused by RML’s motel business equals more than 41% of our HOA payments each month and each year are going to pay for RML’s negative cash flow???

Do you realize that the monthly and annual HOA fees paid by EVERY owner could be reduced by over 41% – just by shutting down RML???

Do you realize that if the REAL RML loss was used, that over 52% of our HOA payments each month and each year are going to pay for RML’s negative cash flow???

Do you realize this means that, without RML, everyone’s HOA fees could be cut in HALF!

Pay attention, owners!

RML’s continued negative cash flow will bankrupt our GGRC HOA if we do not shut down RML and its motel business!

Clearly, we can outsource the rental business for those owners who want it…outsource it to a company that will do a much better job, charging a MUCH lower fee and generate MUCH higher cash distributions for owners to deposit in THEIR bank accounts instead of Joe Thomas’ bank accounts.

All of these benefits AND no risk factor to GGRC – No more negative cash flow caused by us trying to stay in the motel business that squanders OUR money in GGRC!

Our HOA does NOT have to bear the huge economic risk by being in the rental management business.  Each owner can choose any company they want with zero risk, zero cost and zero hassles to our GGRC HOA!  And, this way, resident owners who do not use RML or any other rental management company will no longer be FORCED to pay for rental services they don’t need.

Do yourself a favor:  Immediately sign up with Cobbly Nob Rentals – save yourself 43% by using a better management company than RML – and get more money in YOUR pockets and YOUR bank accounts.

Then, once enough owners have moved over, help us with our proxy fight to FORCE Joe Thomas and the “board” to immediately shut down RML and cut our HOA fees in HALF.

Thanks,

Robert Goodman

PS:  Don’t forget – if you sign up with Cobbly Nob Rentals in the next 30 days, you get a ZERO cost transfer!  Call Doug Sharp’s personal cell phone at 865-548-3722 and get signed up today while this ZERO cost transfer is still available.

What part of Article XII of the Master Deed of GGRC, Deer Ridge Mountain Resort, is so hard to understand?

Once again Joe Thomas and the “board” have chosen to either play dumb – or more probably just say, “Screw you!” to the other owners at Deer Ridge.

Case in point:

I do not recall a vote for 75% of owners for the improvement / alteration for the replacement of the existing sliding glass door with this french doorway with digital locking mechanism that now goes into the pool area of the recreation area.

No matter what the cost or the reasonableness of the change, ANY alteration or improvement, requires both a 75% vote of ALL owners AND a 90% affirmative vote of all mortgage holders at Deer Ridge.  That is the law of our regime.  See for yourself:

This is on Page 16 and 17 of the GGRC Master Deed. This IS the law of OUR land.

Seriously, assuming the reader does not have a room temperature IQ, how hard is this to understand???

Once again, Joe Thomas and the “board” have refused to comply with the governing documents of Deer Ridge and have once again committed ultra vires acts in violation of their scope of duties as board members.

This adds to the already large $200,000 in other ultra vires acts Joe Thomas and the “board” have committed.  When are these jokers in this Gang of Six going to stop illegitimately spending OUR money?

These guys were finally forced to have to go for the Article XII vote for the walkway railings alteration – so you know they know about this requirement and have acknowledged this knowledge by that required 75% vote.*  So, Joey and the Gang can’t claim total stupidity here on the french door.  I believe it is clear to God and everyone that the french door is also an “alteration.”

So, I guess we add this under the “Screw You, Owners – We Are The Board And Are In The Driver’s Seat And Will Damn Well Do What We Want No Matter Whether It Is Legal” file for upcoming litigation.

It is past time that we hold these “board” members personally financially responsible to repay to GGRC the more than $200,000 that has been illegitimately spent by this Gang of Six.

In the meantime, I invite all Deer Ridge Owners to join together to give Joe Thomas and the “board” remedial reading lessons so they finally understand what our Master Deed and Bylaws say.

*  Note:  The “board” did even screw up the walkway railing vote by not getting the REQUIRED 90% vote from all mortgage holders…claiming they were too stupid to understand the above yellow-highlighted section.

It’s a bad real estate market out there.  I know – you heard it here first.

According to the latest analysis of home price trends in 384 markets based on the Fiserv/Case-Shiller Indexes, it will be well into the second quarter of 2013 before median home prices across the nation probably bottom out. Click Housing Recovery Slips Out of Sight to read the CNN report.

That’s two more years where the general real estate market will get worse – with prices probably falling ANOTHER 15% to 25%.  If we go into a double dip recession, which is now appearing likely, additional price drops could end up being more severe.

As bad as that is, the situation for selling condos at Deer Ridge Mountain Resort in Gatlinburg, Tennessee is even worse.

Selling A Deer Ridge Condo – Reality Check

Besides it being the worst real estate market since the depression, Deer Ridge owners have several other MAJOR strikes against them that make our units virtually unsaleable to anyone:

• Deer Ridge has THE highest monthly HOA fees, per square foot, of ANY condo in the entire Gatlinburg / Pigeon Forge / Sevierville or Knoxville area.  At $410 to nearly $500 a month, we simply are pricing our units out of the marketplace – especially when comparing the ratio of HOA fee to the price of the condos.
• These outrageously high HOA fees will probably rise by $70 to $100 a month MORE when the “board” sets the budget for 2012.  This could end up making our monthly HOA fees a staggering $500 – $600 a month on properties that sell for $35,000 to $90,000.
• Buyers for Deer Ridge units have the inexcusable burden and liability of having to support and fund a motel business, RML, that is losing all owners over $150,000 a YEAR and is bankrupting our GGRC HOA.

For many folks who could afford a Deer Ridge condo with a normal mortgage, the HOA fees here knock them out of qualifying for financing and reduces, yet again, the small universe of potential buyers who might, just maybe, have an interest in owning a condo at Deer Ridge.

The Glut – At Least 43% Of Deer Ridge Owners Want To Sell

If all of that wasn’t bad enough, there is “The Glut.”

As of now, there are 23 known units at Deer Ridge that are already officially on the market for sale.  21 properties are shown on the MLS listing (click image to get a copy of the document) – PLUS another owner listed his unit last week – and another owner is trying to sell her unit as a For Sale By Owner. 

On top of all of that, we know of at least another 13 owners who have indicated that they want to sell their Deer Ridge condo – but see it as currently pointless to even list it for sale.  This is known as shadow inventory.

This means that out of the 84 total units at Deer Ridge:

• 27% of the units are officially on the market.  This, by itself, is a HUGE red flag to most buyers when that high a percentage of units at one development are on the market at one time.
• 43% of the owners want to sell – when you count both those on the market plus the shadow inventory of those who really want to sell.
• That’s nearly HALF of the owners of ALL condos at Deer Ridge want to sell!
• And, you are directly competing with other owners to grab the attention of very few prospective buyers for Deer Ridge.
• On top of that, all owners at Deer Ridge are having to compete with the mass of sellers dumping their properties all over Gatlinburg and Pigeon Forge as a result of the economic and real estate downturn.

Folks, that 43% of all units at Deer Ridge represents a Glut – and creates even more red flags that are waving in the faces of any prospective buyer of a Deer Ridge unit.

My guess is that many of the shadow inventory units will desperately and aggressively come out of the shadows and be placed on the market if the board has their way and raises the HOA fee by $70 or more in the next three months so they can continue to cover the massive hemorrhage caused by RML’s huge negative cash flow.

If that happens, more and more owners will try slashing their asking price just to try and dump their units at Deer Ridge – with everyone trying to out slash all the other, competing sellers at Deer Ridge.

Another Disadvantage:  Selling Through Joe Thomas and Ridge Resort Realty

So, how do you compete to get your unit sold when almost half of all owners are trying to sell basically the same unit?

For one thing, don’t list with Joe Thomas and Ridge Resort Realty.

Surely, by now you know that he is ONLY interested in selling any units to non-residents who will use their unit for a few weeks a year and list it with RML for rental income.  In my opinion, he will NOT try to sell to anyone who does not fit this tourist / motel rental profile, folks!  He will NOT try to sell to anyone who might use a different rental company.

This is especially true if you are currently using RML since he knows he gets management fees from you as long as you are stuck with your unit.  If your unit sells, it is a financial risk to him since the new buyer might not sign that RML agreement that keeps a non-competitive 50% of rental collections.

This means, in my opinion, if you are listing your unit for sale with Joe Thomas, you have a much WORSE chance of finding a buyer than if you list your property with someone else.  Other owners are using other brokers – so they have a competitive advantage over you if you are using Joe Thomas.  The other brokers don’t care who buys your unit or if they plan on renting out your condo after they buy it.

Recommendation:  Terminate your listing agreement with Ridge Resort Realty and list your unit with another broker.  At least this one disadvantage would be solved – and you would gain an advantage over all the other owners at Deer Ridge who don’t understand this issue.

Another Disadvantage:  Give RML A 60 Day Notice – And Save Yourself Up To $1,000 A Year Or More.

As you all know, RML raised its management fee to a whopping 50% of all dollars they get from renting your unit.  The market is, at most, 40%.  RML is continuing to charge non-owners 40% to manage their properties – but raping owners with their above market 50% fee.  This represents a 25% increase in the dollars out of your pocket and into the pockets of Joe Thomas.

Clearly, Joey and the rest of the Gang don’t give a damn about owners or they wouldn’t have raised your fee from 40% to 50%.

It may seem “convenient” to just use RML to manage your condo rentals – but there are a LOT of other rental companies in Gatlinburg that want your business.  These other rental companies would compete for your business with a better rate and better service than you are going to get from Joe Thomas and RML.

Don’t be passive for false “convenience.”  That’s what Joe Thomas counts on: That you will be too passive, too lazy, too complacent to find a better management company where you get to keep $1,000 or more in your own pockets each year.

Give Joey the required 60 day boot – and get a better rental company!

(See below about how one company only charges 35% – and on a property that has half of  our HOA fees for a much nicer and even smaller complex.

The Only Solution – If You Ever Want To Sell Your Deer Ridge Unit

The only solution to the gross disadvantage that Deer Ridge condos have in the market requires four steps:

1. Sell or shut down RML and get out of the motel business and stop the $152,000 a year hemorrhage that is bankrupting GGRC. (Be sure and give your 60 day notice to RML and have your unit already listed with another rental management company!)
2. Fire Joe Thomas – this small 84 unit complex can’t afford his $100,000 employment package.
3. Hire an independent HOA management company for $20,000 a year – including all bookkeeping. Click Bid to see an actual bid by one company to manage Deer Ridge for only $1,680 per month including all bookkeeping!
4. After the above three steps are done, cut all monthly HOA fees in HALF – and still have a positive cash flow for GGRC!

All of the above can be done over the next 60 days with the support of over half of the owners.

Another Reality Check:  You ARE Stuck With Your Deer Ridge Unit

Even with the above steps, you are probably stuck owning your Deer Ridge unit for at least two more years.

But with the above Four Step Plan, your HOA fees are cut in HALF while you still own…your property value will go up and your property is immediately more marketable once the real estate market improves.

Doesn’t it make sense to immediately implement that Four Step Plan – and cut our HOA fees in half NOW?

Stay Tuned For The Four Step Proxy

We are having our attorneys draft a proxy in accordance with Article XI of the Bylaws requiring a special meeting and vote strictly to cover the Four Point Plan.  With your help, we won’t have to wait for our lawsuit to shut down RML and stop the negative cash flow.

If you agree with this and want your HOA fees cut in half, and are willing to sign such a proxy, let me know and we will notify you as soon as the proxy is ready.

PS:  Want To See A Sample Of How A Gatlinburg property should be run:   The Highlands Condos of Gatlinburg, Tn.

The owners at The Highlands in Gatlinburg are not at risk for covering a property management company’s negative cash flow like we are with RML – even though they have an onsite management company.

Werner Enterprises, Inc. is located on premises and only charges a 35% management fee (versus 50% at Deer Ridge.) Werner Enterprises does extensive marketing and furnishes housekeeping, linens and supplies in each unit. But by having a totally independent property management company from the HOA, the HOA Board can focus on the owners’ interests and not to be involved in a “For Profit” business that has MANY interests that are contrary to the real interest of the owners.

Their HOA Fees:

• 1 bedroom $225.00 per month / paid quarterly
• 2 bedroom $282.00 per month / paid quarterly
• 3 bedroom $338.00 per month / paid quarterly

Their HOA Fees Include: Water, sewer, cable TV, building insurance, trash collection, common area electricity, pest control, pool and hot tub operations and even firewood (in season).  Compare their 1 bedroom charge of only $225 to the outrageous HOA fees here at Deer Ridge where we pay $410 a month for the same things – but we don’t get the firewood included.

That means we are paying 82% higher monthly fees than they pay for their 1 bedroom units. And that’s before the “board” tries to raise our HOA fees AGAIN in November by another $70 a month.  That would make our fees 113% higher than the Highland’s fees.

Hmmmm….isn’t that interesting – since our Master Deed shows that Luther Parker and the rest of the “board” are currently overcharging all 30 owners of 1 bedroom units at Deer Ridge (36% of ALL units) by this same 82%!!!!

The Highlands have only 54 units to share in common expenses…which should make each unit’s HOA fees higher…but it doesn’t since they don’t have to support Joe Thomas‘ $100,000 plus compensation package and the massive negative cash flow of a money losing motel operation like RML.

This is what we at Deer Ridge compete with – even though these condos sell for $140k – $325k.  and the views rival ours here at Deer Ridge.  See the details by clicking The Highlands.

Folks, this should show you that it is PAST time for a MAJOR change at Deer Ridge. Vote to implement the Four Step Plan!

::: FLASH NEWS :::

Six additional Deer Ridge owners have joined as co-plaintiffs in the $3 million lawsuit that was previously filed against general manager Joe Thomas and all five current “board” members Luther Parker, Larry Ohm, David Barone, Margie Duncan and Tom Reise.

Other Deer Ridge owners are expected to also become co-plaintiffs in the coming weeks as opposition continues to grow against:

1. The illegitimate stonewalling by the board at blocking all access to the Administrator’s Book that is required by the Tennessee Horizontal Property Act.
2. The gross mismanagement of the property and GGRC that makes our $400- $500 monthly HOA fees the highest per sq ft in the entire area and making our condos unsaleable – this is even before the probable $70 a month increase that may be implemented this November.
3. The gross negligence at forcing our HOA to remain in the motel business in spite of massive, real losses that have cost GGRC and ALL owners millions of dollars over the past decades.
4. The contemptuous violations of both Tennessee state law and the governing documents of our HOA including the board members’ illegitimate ultra vires expenditures exceeding $200,000.
5. The ongoing 82%, monthly HOA fee overcharge of all 1-1 owners.

If you, as an owner at Deer Ridge, object to these five points, you should also join other owners as a co-plaintiff to stop this HOA Board Abuse.  See details below.

The David Barone Lie

In the minutes of the recent board meeting and annual meeting, David Barone lied to all owners when he claimed that the Judge dismissed our lawsuit against GGRC, Joe Thomas and all the individual board members.

The judge did NOT dismiss the lawsuit…but he did rule that we were required to either make all owners a party to the lawsuit, i.e., sue all owners, or to get 5% of the voting shares to join with us as a co-plaintiff so that we would qualify as a derivative action suit…once this was done, the Judge indicated that he would rule on the declaratory motions for summary judgment that we have filed.  These include our request for a ruling that RML is illegitimate and squandering half of each month’s HOA fees every month for every owner and, as such, should be immediately shut down or sold.

Because of the actions and objections filed by the “board”, we didn’t have any choice but to immediately have more owners join my lawsuit as co-plaintiffs to get us to a total of at least 8 votes out of the 154 available votes in GGRC in order to meet the requirements of a derivative action suit against the individual board members for their violations of the Master Deed and Bylaws and Tennessee state law.

The Derivative Action Against All Board Members

During the court hearing on April 26, 2011, the Judge postponed hearing on our motions for summary judgment until such time that we were able to show that at least 5% of the owners at Deer Ridge were parties to the lawsuit.

With our current and growing list of other owners willing to stand up and be counted against the HOA Board Abuse that has been going on for years at Deer Ridge, we now meet and exceed this judicial requirement.

We already have 11 votes – and the list is growing.  With this 11 votes, we already have more votes than we need.

The Magnificent Seven

There are now SEVEN Deer Ridge owners that will be suing Joe Thomas and the rest of the Gang of Six.

This Gang can no longer continue their propaganda of misinformation that there is just one “crackpot” out of all the owners who objects to the way things are done.  There are now seven “crackpots” who recognize that the ONLY way things will ever improve at Deer Ridge is to get rid of RML, get out of the motel business that is bankrupting GGRC, get rid of the current “board” and find board members who are willing to abide by Tennessee state law and the GGRC Master Deed and Bylaws.

The “Magnificent Seven” – the seven current co-plaintiffs represent nearly 11 votes or more than 7% of the voting constituency of GGRC and, as such, exceed the required 5% needed to pursue the derivative action against all board members, individually.

As such, we plan on amending our motions to immediately and aggressively continue our pursuit of our current motions for summary judgment as part of our derivative action.

Did You Want To FINALLY See The REAL GGRC Books and Records?

Did you want a copy of all the GGRC and RML books and records it’s taken me six years to get?

Well, good luck with that if you try to do it yourself.

Joey and the Board, in their ongoing attempts to block owner access to the REAL books and records, got the Judge to temporarily agree to a protective order. (The harder the Gang of Six resists releasing the state required Administrator’s Book, the more suspicious it is about what they are trying so desperately to hide.)

With the protective order, you as an owner at Deer Ridge still won’t be able to see ANY of the books and records, email correspondence, payroll information and other information about your property, your investment or your HOA that I am able to uncover with my lawsuit.  As of now, I won’t be able to even talk about it here on this blog.

We expect to file a new motion to allow us to release this information to all owners – but for right now, Joey and the Gang are doing all they can to make sure other owners can’t see what we are forcing them to show us.

(This should be a HUGE red flag to ALL owners that something is NOT right at Deer Ridge with its books and records.)

However, there is ONE way for YOU to get around the Gang’s protective order:  Join with us as a co-plaintiff in the lawsuit.

As a co-plaintiff with us in our lawsuit against Joe Thomas, Luther Parker, Larry Ohm, David Barone, Margie Duncan and Tom Reise, you will get to see EVERYTHING that I get to see with our court ordered production of documents.

Remember, it is these six individuals posing as board members who are explicitly and deliberately blocking YOU from your rights to see these documents and the books and records on YOUR investment at Deer Ridge.

Don’t tolerate the injustices of the Gang of Six.  Become a Magnificent Co-Plaintiff with the seven of us – and gain FULL access to ALL the documents and books and records of Deer Ridge.

If you are a Magnificent Co-Plaintiff, there is nothing that the Gang of Six can do to stop you.

Become Magnificent Too – Join The Seven As A Co-Plaintiff To Fight The Gang of Six

Would you like to help stop RML from squandering half of our monthly HOA fee?

Would you like to be able to finally see the REAL books and records of Deer Ridge?

Just click Co-Plaintiff – or the image to the right – to download the one page document drafted by our attorney to join the litigation as a co-plaintiff so we can finally get these critical Deer Ridge issues resolved. As you will see, there is no cost obligation to you – unless you want to consult directly with the attorney for some reason.

If this sounds good to you, please complete the form and fax, email or mail me the completed document. Also, if you know of any other owners who would be willing to sign the attached, please forward it to them.

Together, we can finally hold this Gang of Six individually accountable for their multitude of illegitimate violations of our Master Deed and Bylaws – stop the massive negative cash flow from being in the motel business – and keep this Gang of Six from forcing GGRC into bankruptcy.

I assume most of you have seen the latest Joe Thomas letter regarding the huge size of recent water bills and how GGRC is having to dig into its jeans (our jeans) for an extra $2,000.

Now, the idea of replacing the shower heads for $30 per unit is sound thinking.  We replaced ours two years ago with a $20 one from Amazon that was very highly rated by other customers – one that was both water saving and high velocity.  So, we agree with this step.

However…

Real Increases In Water Usage – Or Something Else?

Joe goes on to list the points of investigation that he is doing to help track down the source of the increase water usage.  What he doesn’t mention are his data points.

• When did the increase start?
• Could it possibly be due to the one time aberration that was caused by all the water that was used for several months to high pressure wash all buildings in preparation of all buildings at Deer Ridge being painted?
• Could it be due to an aberration caused by refilling the indoor pool when it was emptied last month for maintenance reasons?
• Could it be caused by all the massive amount of water that is used by our “commercial laundry” that is used by RML for rental units’ sheets and towels?
• Could it be caused by all of the over-watering of the pavement and flower beds where the hose is turned on but then forgotten for hours beyond the needed water that was really required?
• Or, is it that these aberrations are being used to set us all up for yet another HOA fee increase come November when the “board” will be looking for all sorts of ways to raise our HOA fees by $70-$100 a MONTH just to cover the massive ongoing hemorrhage caused by the Gang of Six keeping us in the motel business with the money losing RML operation that is bankrupting our HOA?

Deer Ridge Mountain Resort gets one bill per month from Webb Creek Utility District.  But they also have a comprehensive spread sheet that shows water usage each by unit number.  It seems to me that a 12 month variance analysis of this report would quickly identify where the changes in water usage are REALLY occurring.

Let’s See The Real Data, Joe

As owners, I recommend that you all individually request the following from our GGRC books and records:

• A copy of the Webb Creek Utility District water bill(s) for each of the past 12 months.
• A copy of the monthly water usage breakout by unit spreadsheet.

Or, better yet, request that Joey and board post the above information on the GGRC blog for all owners to see and analyze.  That way, we can all help Joe Thomas do the analysis – and maybe keep all of us from seeing yet another hike in HOA fees come November.

Note that several owners have told me that they have requested a copy of the monthly Webb Creek Utility District water bill(s) and Joey has yet to EVER give a copy of these out to ANYBODY.

Curious, huh?

The Missing Audit Numbers – A Smoking Gun???

All of this triggered a thought:  Where on our audits do we reflect that RML last year received almost $120,000 from all owners for water during calendar year 2010?

In other words, you and I and every other owner wrote a check to RML every month for $117.25.  (This was when water / sewer was billed to all owners at $117.25 before the increase by RML to $120.38 on January 1, 2011.)

This adds up to $118,188 paid into RML during 2010.

So, where’s the money showing up on the audit?

There is not a single line item on the entire 2010 audit of RML that deals with water.  Zero. Nada. Zip.  Yet, the checks were all written to RML, commingled with our payment of the cable TV bill and, for some, a telephone charge.  Here’s what the RML audit for 2010 actually shows:

Notice that all the other pass through direct costs are show above including the Cable TV, the telephone and even the Cobbly Knob dues.

But where IS the water???

There is nearly $120,000 of deposits into RML accounts that are completely unaccounted for on this audit!

And, it isn’t on the GGRC audit either.  The ONLY line item for water there is this:

Notice that the total actual water bill shown for GGRC for calendar year 2010 is only $6,952 for the whole year.  And, there is NO income item on GGRC whatsoever for water.

So, WHERE is the missing $118,188 paid into RML during 2010???

And…how much of this $118,188 paid into RML during 2010 was actually used to pay the water bill…and where did all the rest of this money go???

Could all of this be part of  the REAL reason that, after years of paying RML for the water bill, that Joey and the Gang are SO anxious all of a sudden, as a result of my lawsuit against them, to have the water be paid directly into GGRC starting this month???

What IS the reason for this change with such urgency???

Show Us The Money, Joey!

So, Joey, show up the last 12 months of water bills – and let’s see if they are REALLY averaging $10,112 per month.

It’s easy enough to prove, Joey – show us the proof – that ALL owners have a right to see.

————————————

Below is the letter sent by Joe Thomas regarding the water usage.

August 3, 2011

Dear GGRC Co-Owner:

Over the last few months, we have experienced a large increase in water usage.  While our occupancy has been up due to summer travelers, water usage has increased disproportionally.  Since we were concerned about the volume, the first step we took was to ask the Webb Creek Utility District to perform an analysis of our water usage.  We have also contacted a plumber, and asked for his expertise in searching for possible leaks.  These steps are in progress.  Another step that we plan to take very soon is to change the original shower heads that are still in place in many of the condos on the rental program.  Those original shower heads are now 25 years old, and expel far too much water at a time.  We will soon be changing the heads in the rentals units, and request that you consider doing the same.  The water saving shower heads that we will purchase will cost around $20 plus tax, and then there will be some labor involved in the installation.  If you would like our maintenance staff to change yours, please email Joe at manager@deerridge.com and we will charge you just $30.  We feel that this change is a step in the right direction toward our water usage.  Please bear in mind that if water usage continues to climb, we will have no choice other than to increase the monthly HOA dues.  Currently, GGRC has been paying the additional monies incurred, which have been $2,000 or more each month.

Please contact me if you have any questions or concerns.

Sincerely,

 

Joe Thomas

General Manager

865-436-2325

manager@deerridge.com

I assume most of you already know that the “board” just had an emergency meeting – scrambling to cover GGRC’s cash flow problems produced by RML’s ongoing massive cash hemorrhage caused by us continuing to be in the motel business.

During this unannounced and secret meeting, the “board” raised the management fee from the going market rate of 40% to a whopping 50%!

This represents a 25% increase in the management fee currently being paid by Deer Ridge owners who use RML.  This means that if your unit generates $10,000 a year in gross rentals, using RML will now cost you an ADDITIONAL $1,000 a year in management fees.

Hey, we all have got to somehow cover the 10% raise the “board” awarded to Joey earlier this year…irrespective that he was already being paid over THREE TIMES the going rate for his skill sets and responsibilities for this sized property in the Gatlinburg area.

By my calculations, over TWO THIRDS of the annual RML negative cash flow of $152,000 goes to pay all the approved salaries, perqs and benefits that end up in the pockets of Joe Thomas.

Another Negative Review On Trip Advisor

In spite of the raise, in spite of the triple rate pay, it is my professional opinion that Joe Thomas should be immediately fired, for cause, as a result of the many examples of gross incompetence and gross mismanagement cited throughout this web site.

Want to see what your 50% management fee gets you through RML?

Here’s a typical negative review that is the latest Deer Ridge posting on Trip Advisor:

This is just one of the bad reviews.  Click Deer Ridge Reviews to see several other examples of how RML is viewed by many of the tourists who stay here.

You never hear about all of these bad reviews during the “annual meeting” or in the propaganda sent out by the office to all owners.  But we hear this stuff all the time as we walk around the property.

Is this what you want tourists saying about Deer Ridge after they stay in your unit?  Is this the kind of management you want for your rental property – especially when RML is overcharging you at a rate of 50% of every dollar you make with your condo?

Other Alternatives

It is my understanding that RML is continuing to charge only 40% management fee to cabin owners.  I’ve even heard that they have offered some cabin owners a rate of 35% management fees.

RML has to offer these kinds of rates in the highly competitive property management business in order to compete for customers for their services.

Then, why is RML overcharging Deer Ridge owners a whopping above-market rate of 50%???

I believe it’s because Joey and the Gang think they have you locked in as a captive market – no matter how bad a job they do or how much they want to charge you.

Here’s the secret they are praying you do not discover:  You DO have a choice!

There are several other property management companies in Gatlinburg and Pigeon Forge that would love to have your business – at a competitive rate.

There is NOTHING whatsoever that prevents you from using any management company you want to use for your property rental business.

We know of one owner who has already turned in their 60 day notice to RML.

Maybe, you should be the next.

Recommendation

Do NOT sign the new RML management agreement and lock yourself into a 50% management fee!

Instead, shop around and see if you can save yourself a $1,000 a year more for YOUR pockets – versus Joe Thomas’ pockets – by using another management company.

Then, let’s shut down RML, get out of the motel business and stop the horrific cash flow hemorrhage caused by Joe Thomas’ salaries, perqs and benefits.

PS:  Here Are The Notices

Apparently, GGRC and RML are so desperate for cash that Joe Thomas and the rest of the Gang of Six are attempting to double bill Deer Ridge owners.

Case in point:  They claimed that owner Todd Novak had not paid a past water bill from a few years ago.  After Todd went to all the trouble to dig up the proof that he had, in fact, paid that bill, Joe Thomas and the office staff then claimed Todd had not paid another bill.

This time, Todd took GGRC / RML to court with a Small Claims action filed on May 11, 2011.

In spite of the testimony by Joe Thomas in front of the judge, the Court apparently did not find Joey’s testimony convincing in light of Todd’s proof and documentation.  As a consequence, the Judge ruled on May 23rd in Todd’s favor, granting him the following judgement against GGRC / RML:

This Is NOT The Only Case

The obviously false claims by Joe Thomas that Todd owed payments on old bills appears to be spreading to other owners too.  For example, this is the demand letter another owner has received:

As shown above, this owner also has the canceled checks showing she did not owe the claimed $540.

Have YOU Been Overcharged Too?

Individually, this may not look like much of an issue.  But together, they indicate a trend of trying to dig up long past billings and claiming that multiple Deer Ridge owners have not made some long ago payment.  Todd’s win in Court shows that, at least in his case, the claims of Joe Thomas were false.

• Is it that Joey and the Gang are hoping to go back far enough in time that owners haven’t saved their canceled checks as proof?
• Is this an ongoing, desperate attempt by Joey to get cash from wherever he can even if he falsely makes claims like he apparently did in Todd’s case?
• How many OTHER owners are getting hit with this same kind of letter, this same kind of false claims over long forgotten paid bills?
• Conversely, is it that Joe Thomas is so incompetent that his operation can completely miss payments that were due – thereby making ALL of his accounting and ALL of his reports equally suspect of major errors?

Either way, in my mind, this shows, once again, that Joe Thomas is grossly incompetent at his job – or is it possibly an indication of ongoing fraudulent claims like the ones concerning Todd?  Clearly, the Judge did not believe Joe Thomas and his testimony in Court.

Maybe, you and other owners should not believe Joe Thomas either.

Fire Joe Thomas Now

Either way, in my mind, Joe Thomas should be fired, for cause, immediately.

It makes me wonder, in my mind, why the “board” continues to employ Joey and even give him a recent 10% raise in light of the multitude of evidence of his gross incompetence and gross mismanagement of GGRC and RML.

Does it make you wonder, too?

The following is a copy of an email sent to the entire board and Joe Thomas on June 18, 2011 regarding “accusations” and the board’s evasiveness on providing direct answers regarding the Master Deed required insurance escrow account and funding. ( Click Insurance for details about this issue.)

Hey Luther, Board,

In reference to your last e-mail to me below:

Please, If there is an “Accusation” in my e-mail, Please point it out to me..

If any of the questions and / or assumptions I have made regarding the past failure to pay Workman’s Compensation Insurance premiums is incorrect or the amount of money needed from the owners to pay the settlement for the non insured, injured former employee, please let me know.

If in the past, without a formal request given 2 weeks in advance, and after signing a non disclosure agreement and only being able after all this, to view the documents on a Wednesday ….has Joe or the board ever shown any owner, any first hand proof “Original Documents” of any GGRC business.  If so, please remind me….

Asking for proof of the Master Deed Guidelines “Requirements” on Insurance Payments and other important matters should not be such a formal procedure.. The Board either is, or is not escrowing for the upcoming premiums in the prescribed way, or not. For you and Joe and the rest of the board to dance around the issues is unacceptable and you should  be forthright enough to answer these questions, EVEN IF you DEEM Them Trivial, Trite, and coming from a person who’s personality you do not care for.

This is no reason to avoid answering, No reason to spend THOUSANDS of our dollars to shut someone up and intimidate others…….. Just be open with the owners.  Just bring all into view.  Take care of business without spending owners money needlessly.

Please, just be open, be better stewards of the owners money. “Lawyer Fees,” – Are they really necessary in order to stop the questions, or is it a personal vendetta against someone whom the board and the manager view as a potential problem?

Engaging several $250.00 an Hr. lawyers could / should have been avoided by simply having had a very open discussion on these matters, so that we could have put them behind us long ago – With thousands of OUR dollars saved.

I believe GGRC, RML the board were the ones that first hired lawyers and filed law suits in all this, is that correct?

In my opinion, this all has caused a ridiculous level of Aggravation for all concerned, and at very high expense.

All of this because of the board’s unwillingness to be Transparent / Open as you had promised in the past….

Please answer these “Accusations” point by point, so as to be Clear Concise, Non Political.

Is that too much to ask ?

Thank you, Neil Blair C-208

That’s Neil’s June 18th email to Luther Parker and the board. As far as I know, here on July 5th, he has yet to receive his deserved point by point answers.  And, that is why he asked me if he could make this guest post.

I personally believe that Luther Parker, Joe Thomas and the rest of the board have not answered because they don’t want to admit that they are violating yet another provision of our Master Deed by not funding the property insurance escrow account – thereby putting ALL owners at major economic risk.

As owners, what do YOU think?  Post your comments below.

Bouncing Paychecks – And The Joe Thomas 10% Raise

Scuttlebutt around the Deer Ridge Mountain Resort property is that payroll checks to GGRC and RML employees bounced last week and/or that the bank refused to cash the checks when presented at the teller window.

If that’s true, then all owners at Deer Ridge should consider this a Red Alert!

Besides the obvious hardships it creates for employees, here’s some of the other reasons why, in my personal opinion, this is a very BIG deal:

1. It means that the cash balances in our operating accounts are so tight that games are being played just to keep the doors open.
2. It means that even in the middle of June, we are having cash flow problems.
3. Historically, Joe Thomas and the “board” have counted on the height of the tourist season to bail RML out from all the many months of negative cash flow during the non-prime time seasons…with Joey counting on the summer months to pay off the bank line of credit it uses up in the winter and early spring…and to build up cash reserves for when the summer rush ends around the middle of August.
4. If RML is already bouncing checks for its employees in the middle of the big tourist demand, it tells me that RML and GGRC are NOT positively cash flowing even during this prime time.
5. If there is really a negative cash flow in prime time right now, it also means that the line of credit is not getting paid down now in time for the winter months…which means that RML may end up in default of the loan agreement with the bank and the bank may call the note, demanding it be paid in full, probably within 30 days of the demand.
6. If this happens, GGRC is at major risk which makes all owners at major risk.
7. All of this strongly accents the screaming need for the “board” to comply with the Master Deed’s requirements for maintaining a separate escrow for the property’s multi-peril insurance policy payment of between $45,000 and $60,000.
8. According to my calculations, we should already have over $36,000 in a separate escrow account right NOW to make sure we can pay for our property insurance when it becomes due in November.
9. My belief is that there is NO MONEY in escrow for the insurance policy payment and that the board is, once again, violating the clear requirements of our Master Deed.
10. Please click An Additional MAJOR Risk To All Deer Ridge Owners so that you understand the dire consequences of the “board’s” gross incompetence and gross mismanagement by NOT abiding by the requirements of our Master Deed.
11. I recommend ALL owners contact every member of the “board” immediately to demand that this escrow be funded.
12. All of this makes me wonder why the “board” gave Joe Thomas another 10% raise at the last budget meeting! (It makes me also wonder if HIS payroll checks bounced too – or if he made sure his cleared first!)
13. Joe Thomas is probably already earning a combined compensation from all Deer Ridge sources of between $80,000 and $100,000 for managing a small 84 unit condo complex.  Our 144 unit beachfront condo in Clearwater Beach, Florida pays the property manager $32,000 a year in addition to paying for ONE maintenance person – for a property that is nearly twice the size of Deer Ridge.  Go figure.

Did You Spot THIS In Last Year’s Audits?

Many of you probably didn’t look closely at the 2010 audits of GGRC and RML – but they contain dire disclosures.

This is the screen grab from the GGRC Audit.  Note that it shows that GGRC had a year end bank overdraft of $4,300!  That means Joe Thomas had knowingly written checks for that much over and beyond what GGRC had in the checkbook!

The following is a screen grab from the RML Audit.  It shows that:

• RML had a year end bank overdraft of $34,230!  That means Joe Thomas had knowingly written checks for that much over and beyond what RML had in the checkbook!
• That means that between GGRC and RML, Joe Thomas had written overdraft checks that wouldn’t clear the bank totaling almost $39,000!
• The CNB Line of Credit had already been tapped for $33,500 and Joey and the board STILL had almost $39,000 in bad checks written to GGRC and RML vendors at the same time.
• RML is in technical bankruptcy.  This happens when a company’s liabilities exceed assets.
• As you can see from the audit, total assets were $52,000 and liabilities were $225,000!  We are talking liabilities exceeding assets by a multiple of 4.33 – so we are not talking marginal technical bankruptcy!
• Note that RML has a NEGATIVE NET WORTH of more than $173,000!
• RML lost $55,000 for 2010 according to their accounting and audit. Even as bad as this is, this is still a bogus number because Joe Thomas and Larry Ohm and the rest of the board play games with the numbers.
• They falsely attribute another $100,000 a year in expenses to GGRC that are clearly RML related costs – so the real loss is around $155,000 per year for RML.
• In my opinion, Joey and the board “cook the books” with their false cost accounting so that Joey and the board can keep us in the motel business.
• Click RML Lie Exposed: RML Actually Has Negative Cash Flow Of $152,000 Per Year and check my numbers – and let me know if you think I am right or wrong.
• At least Larry Ohm is now admitting that he had previously LIED to all owners when he continued to claim that all of GGRC benefited from the “positive” cash flow from RML. Click Liar Larry for details.

Remember, these are not MY numbers…these are the numbers directly from the 2010 audits.

Combine this information with the stories of last week’s bounced employee payroll checks and you end up with major RED FLAGS just how dire the situation has become at Deer Ridge.

Bottom Line:  RML Is Bankrupting GGRC And Putting ALL Owners At Risk!

As you can see, RML is already bankrupt.  The problem is that it is taking GGRC down the tubes with it!

We have GOT to get out of the motel business.  It never made sense for this small property to have its own motel business – and the dire consequences from all the number games that have been played so long here are finally coming to light.

• Like a Ponzi Scheme, these games can only go on so long before it collapses on itself.
• We need to shut down “Little Joe’s Notel Motel and Mountain Resort.”
• We need to sell RML ASAP to stop this bleed and hopefully recoup some of the money from the sale.
• For those of you who are on RML, you are losing more money than you are netting from your management agreement.
• For the 20 of us not on RML, we are being forced to support a failing business venture that should never have been a part of our purchase of a condo at Deer Ridge.
• If we don’t immediately get out of the motel business, be prepared for a HUGE monthly increase in our HOA fees at the November budget meeting.  It will probably be dressed up as an increase for a “reserve” account…but based on all of this stuff, I think it is obvious the “reserve” claims will be yet another lie.
• The coming HOA monthly fee increase of $70 to $100 a month will be Joey and the board’s attempt to keep us in the motel business – no matter how much money it is losing for ALL owners.
• Now is the time to stop the bleed by amputating RML.

Help Us Force The Sale And Shut Down Of RML

Luther Parker and the board just reaffirmed their dedication to remaining in the motel business.

The only way we are going to force Joe Thomas and the Gang of Six to get us out of the motel business is with a lawsuit.

This is why all owners should join with us as a co-plaintiff in our current derivative action against these individuals.  There is no cost to you to join as a co-plaintiff AND you will be able to finally see the REAL books and records on Deer Ridge.

Click Co-Plaintiff to find out how to help!

UPDATE:

Probably in response to the below posting and the growing outcry from other owners, Joey and the “board” just uploaded an insurance “quote proposal” from 10/07/10 onto the GGRC Blog.

Click Insurance Quote for a copy.

We have no idea if this “quote proposal” is, in fact, the policy that is currently in place, or if the payments are current, or if the annual premium shown on it as $45,480 that was due last November is correct.  My guess is that the final real policy was for more money than is shown on this “quote proposal.”  However, if this proposal turned out to be the real policy, GGRC according to the Master Deed, is required to have the full $45,480 in a separate insurance escrow account by September 1, 2011.

This means that there should be $36,384 in the escrow account as of June 1, 2011.  (I am taking bets that they don’t even have an escrow account – let alone having a segmented $36,384, thereby putting ALL owners at financial risk.)

The GGRC blog posting only has the document posted without any narrative discussion – so there is no word in the posting by Joey and the Gang as to the escrow account or its required funding.

Funny, you would think if they were doing things right, they would have gloated that I was wrong about the escrow account and the required funding.  Go figure.  However, in light of the new posting about Bouncing Payroll Checks, the below information is even more critical to all owners at Deer Ridge!

END OF UPDATE

An Additional MAJOR Risk To All Deer Ridge Owners

As previously mentioned in a prior post, we believe that there is very strong evidence that Joe Thomas and the “board” have, once again, put ALL Deer Ridge Owners at economic risk – this time with our property insurance.

Our annual insurance premium is approximately $45,000 to $60,000.

To protect all owners, the Master Deed (see below) requires that all premiums are escrowed in a separate escrow account to ensure that the funds are available when the annual premium becomes due…and that the full amount of the premium is required to be totally escrowed at least 60 days prior to the due date of the annual insurance premium.

New, Upcoming Motion With Court

By our calculations, the amount that needs to be immediately escrowed probably ranges from $30,000 to $42,000.

As a consequence, we plan on filing a new motion with the Court to force Joe Thomas and the “board” to immediately transfer these funds from the current GGRC operating account into a separate court administered escrow account for the protection of all owners.

What will be very interesting to see:  If the board even has sufficient amounts in our operating account to meet this required obligation of our Master Deed.

If these amounts are not escrowed, it is my opinion that this, by itself, is sufficient reason to fire Joe Thomas and the entire board for “cause” for gross negligence and gross incompetence.

However, if these amounts are not available in our operating account at this moment in time, it is my opinion that this, by itself, is sufficient reason to fire Joe Thomas and the entire board for “cause” for MASSIVE gross negligence and MASSIVE gross incompetence.

PRIOR POSTING

Below is the information we had previously posted that gives the proof of the requirement and the list of documents we are immediately demanding from Joe Thomas.

Insurance Escrow Account – Another Violation By The “Board”?

I am highly concerned about the economic viability of GGRC in light of RML’s huge $152,000 negative annual cash flow. Even Larry Ohm’s admitted loss of $55,000 for RML for all of 2010 would cause this same concern.  With that concern in mind, I am highly concerned that Joe Thomas and the Board of Directors have been negligent with regard to Article X of the Master Deed.

Article X, entitled “Insurance”, provides in Section 3 that all owners are to pay a separate check for their pro rata share of the Common Expense for insurance so that it can be deposited into a separate trust account.

I am highly concerned that there has never been any requirement of any kind by Joe Thomas and the board for any owner to abide by this requirement since my purchase in 2005.

I am further concerned that all owners at Deer Ridge are not being afforded the economic protection provided by Article X Section 3 of the Master Deed. I believe there may not be any separate escrow account established and properly funded in accordance with Section 3 of Article X.

Since the annual insurance premium is substantive at approximately $60,000, my calculations show that approximately $6,000 should be escrowed each month so the amount of the account balance should be sufficient to pay the annual $60,000 sixty days prior to the due date as required by the Master Deed.

Proof Of Protection For ALL Owners Against A Lapse In Insurance Coverage

It is critical for ALL owners that we have sufficient funds to pay our property insurance annual payment when it is due – and not risk ANY potential lapse in coverage that could very detrimentally affect us all.

By way of verifying that Joe Thomas and the board have properly abided by the Master Deed on these issues, I, will be IMMEDIATELY requesting the following be provided to me, in accordance with the Tennessee Horizontal Property Act:

• A copy of the current, and most recent three years, annual insurance policy cover page, showing due date of insurance premium, coverage and coverage dates.
• A copy of the current and past 24 months of bank statements for the separate escrow account that is required to be maintained for the insurance payment.
• Since I am also concerned that Joe Thomas and the board have fulfilled their commitment and promise to maintain a separate escrow account for the “special assessment”, I also request a copy of the current and past 15 months of bank statements for the separate escrow account that is required for the “special assessment.”

By my count, this should only require copying fewer than a hundred pages.

Assuming that Joe Thomas and the board have, in fact, properly abided by The Master Deed and Bylaws, I would assume there would be no problem in immediately providing these relevant and reasonable requests for information on my investment at Deer Ridge.

As a matter of fact, I would recommend that YOU, as an owner at Deer Ridge, immediately request these documents yourself since you also have a right to see them.  If you get them, please send me a copy.

What’s Your Experience With These Documents?

As to whether these documents and accounts exist, let me ask all owners:

• Have YOU ever written a separate check to the Insurance escrow account as required by our Master Deed?

If your answer is NO, then I think we probably already know the answers as to whether Joe Thomas and the board have been violating yet MORE parts of the governing documents for Deer Ridge Mountain Resort.

Even More Evidence of Gross Mismanagement and Gross Negligence By Joe Thomas And The Board?

It will be interesting to see if these documents and accounts exist – or, more expectantly, are yet again even more violations of our Master Deed and Bylaws by Joe Thomas and the board.  If these documents and accounts don’t exist in their proper format, it is my opinion that this, by itself, is sufficient reason to fire Joe Thomas and the entire board for “cause” for gross negligence and gross incompetence.

Stay Tuned – We Live In Interesting Times!

David Barone Lied To You

David Barone, Secretary of the GGRC Board of Directors, lied to you and all other owners at Deer Ridge about the status of our counterclaim $3 million lawsuit.

In the recent mailing to all owners at Deer Ridge, David Barone made the following statement in the Annual Meeting minutes on his OWN report, ”On April 26, 2011, Judge Rex Henry Ogle dismissed Robert Goodman’s counterclaim.”

This is actually a double lie:  David Barone, as Secretary, was reporting on what David Barone said in the meeting.  Here is the excerpt from the mailing:

This statement, marked in yellow, is a lie.  Want proof?

How Many Lies Have There Been?  How Many More Will They Make?

As you can see below, the Judge did NOT dismiss our counterclaim and Barone’s lie is at best a categorical and self-serving misrepresentation of the facts. At worse, it is just that much more malicious disinformation and false propaganda that is spread by the “board” in their ongoing efforts to maintain their fiefdom and to keep us in the motel business – no matter how much it is bankrupting our HOA.

To me, the David Barone lie about the dismissal of our counterclaim is on a par with the Larry Ohm, CPA and Treasurer, lie that RML is a money maker for GGRC.  Please click  Liar Larry for all the details about THAT lie – and how he is finally being forced to admit in front of God and everyone that RML is losing LOTS of money for ALL owners at Deer Ridge.

It kind of makes you wonder how many other statements by Larry Ohm, Luther Parker, Joe Thomas and the rest of the Gang of Six might, just maybe, be even more lies.  This includes all that they say, all that they write and all that they claim are supposed to be accurate minutes of the meetings and accurate accounting.  And, with David Barone being the Secretary who is supposed to accurately report all meeting minutes, it kind of makes you wonder about EVERYTHING that he writes.

You can decide for yourself…but my personal opinion about all six of them:  “If their lips are moving…” and also, in this case, “If their fingers are typing…”

The REAL Status Of The Lawsuit – Part 1 – New Motion To Void The Asinine Assessment

Part 1 of the REAL status on the lawsuit is that we have JUST filed a follow up motion for a partial summary judgement against GGRC and these same individual “board” members under the SAME counterclaim.

In this instance, the new motion deals specifically with my defense for the “board’s” lawsuit against me for my complete and total non-payment of the “special assessment.”

If you click on the below image, you can download the full 17 page motion to see just how much Barone’s statement was false.  Note that this is still the SAME case number!

Note the parts highlighted in yellow – showing that the file date was May 25, 2011 – nearly a month after David Barone falsely claimed that the Judge dismissed our counterclaim.  Does that look like it was dismissed to you…or do you agree with me that David Barone, and probably the whole “board”, was lying to you with his rendition of the minutes?

The above is the first page of the motion for partial summary judgement in which we are defending ourselves on the “special assessment” lawsuit on two fundamental issues:

• That the percentage used to calculate every one’s proper pro rata share is wrong.
• That the “board” ignored the required 90% mortgagee vote requirement for all improvements and alterations.

The motion requests that the Judge review the Master Deed and Bylaws of GGRC and, based on his interpretation of these documents, void the “special assessment” and rule against GGRC on their lawsuit against me regarding my non-payment.

Get Ready For A “Run On The Bank” If We Win This Partial Summary Judgment On Voiding The Special Assessment

If we win just one of the two major defenses in this partial summary judgment AND win this one part of our ongoing lawsuit, it may probably have the effect of negating the “special assessment” for everyone – especially those who push the issue in Court like we have.

The problem for the “board” is that they and Joey have already spent your money!

In our case, we already have our money – because we were smart enough to not pay it to them in the first place.  For all owners who have paid, if we win even one of the two points, I would recommend that you hurry up and get in line to get your money back as soon as you can.

Note: I am NOT an attorney and do not give legal advice ever.  Period.

However, from a business perspective, I would strongly advise you try and get your special assessment back ASAP.  You might consider taking the above 17 page document to your own attorney and have them use this as the basis of your own lawsuit against GGRC and the board for recovering your own two payments made on the “special assessment.”  By using our document as a starting point, you might be able to save yourself some legal fees.

Better yet, and even cheaper, see the other solution below.

Repayment of $200,000 By Board Members As Individuals

If we win on the 90% mortgagee issue on this motion for partial summary judgement, it is my hope that this will make the individual board members personally responsible to repay the more than $92,000 (26% of the total “special assessment”) that was illegitimately spent on the walkways and lighting improvements and alterations since their actions were ultra vires.

Of course, this partial summary judgement ruling will just deal with the $92,000 of illegitimate Article XII funds that have been spent without proper authority. Based on my initial analysis of several expenditures made by the board, I calculate that all illegitimate Article XII funds spent already exceeds $200,000.  These are monies that required a 75% vote of ALL owners AND the vote of 90% of ALL the mortgage holders for all mortgages at Deer Ridge.

My personal goal if we win on this 75% / 90% issue is to force the individual board members to repay ALL $200,000 back to GGRC along with interest, etc. with our derivative action part of our countersuit.

The REAL Status Of The Lawsuit – Part 2 – Derivative Action

The judge did not dismiss the lawsuit…but he did rule that, for the declaratory judgement part of our counterclaim, we are required to either make all owners a party to the lawsuit, ie, sue all owners, or to get 5% of the voting shares to join with us as a co-plaintiff so that we qualify as a derivative action suit…so the Judge will rule on the declaratory motions we have filed such as RML is illegitimate and squandering half of each month’s HOA fees every month for every owner.

Because of the actions and objections filed by the “board”, we don’t have any choice but to immediately have 4-7 owners join my lawsuit as co-plaintiffs to get us to a total of at least 8 votes out of the 154 available votes in GGRC in order to meet the requirements of a derivative action suit against the individual board members for their violations of the Master Deed and Bylaws and Tennessee state law.

For our derivative action part of the lawsuit, the Judge is requiring us to go ahead and document that at least 5% of the ownership is in favor of the issues we want heard in our lawsuit, e.g., to stop RML from taking half of each month’s HOA fees from EVERY owner to feed it negative cash flow and to stop them from raising every one’s HOA fees by $70 a month as proposed by Larry Ohm in the last board meeting a couple of weeks ago.

This required 5% is something, with your help, that I hope we can do ASAP.

The good news is that we already have 7 votes in hand!  With ONE other owner, we get to the required 8 votes.

But this derivative action suit will ONLY work if one other owner will agree to immediately join in as a co-plaintiff.

Below is the one page document drafted by our attorney for other owners to join the litigation as a co-plaintiff so we can finally get these issues resolved. This is the same signed document we have in hand representing 7 votes by Deer Ridge owners.  As you will see, there is no cost obligation to you – unless you want to consult directly with the attorney for some reason.

Do You Want To See The REAL Books And Records Of GGRC and RML?

Do you want a copy of all the GGRC and RML books and records it’s taken me nearly six years to get? Would you like to help stop RML from squandering half of our monthly HOA fees that are bankrupting GGRC?

Unfortunately, the Judge ruled in favor of Joey and the board regarding their request for a “protective order.”  With the protective order in place, I won’t be able to share with other owners ANY of the books and records, email correspondence, payroll information, RML rental info or other information, unless you are a co-plaintiff by signing the above form.

On top of that, I can’t even discuss my findings with you.  Even if I were, hypothetically speaking, to uncover major fraud or other malfeasance, I couldn’t tell all the Deer Ridge owners what I found.  That’s what Joey and the board want with their protective order.

We hope to get the Judge to change this at a future hearing but that is the current status.  I STRONGLY believe that ALL owners should have a right to see the books and records for Deer Ridge but I have to abide by the Judge’s ruling.

The important thing you should be asking yourself is WHY?

• Why is it that Joey and the board have fought tooth and nail for nearly six years against providing copies of the REAL books and records to ANY owner in the format that is REQUIRED by Tennessee state law?
• Why is it that Joey and the board have pushed so hard for the protective order to keep us from sharing these documents with all other Deer Ridge owners?
• What are they SO afraid that owners will discover and uncover once they have complete access to copies of the REAL books and records?
• Why shouldn’t YOU have a right to see the REAL books and records on your investment at Deer Ridge?

The good news is that we have figured out a legitimate, no cost, way around the games that Joey and the board have been playing to prevent you and other Deer Ridge owners from seeing the books and records.

All you have to do is complete the above form and mail or fax it to me so that you join our counterclaim as a co-plaintiff at zero cost to you.

As a co-plaintiff, you will get to see EVERYTHING that I get to see with our court ordered production of documents.  We also, along with your fellow co-plaintiffs, will be able to fully discuss what we discover and uncover – and together develop the best strategies and tactics for our next steps to protect all of our investments in Deer Ridge.

If this sounds good to you, please complete the above form and fax, email or mail me the completed document TODAY.  Click Contact to email me any questions your have or to get my fax number for your completed form.

Together, we can finally hold this Gang of Six accountable…stop the lies, see the REAL books and records and increase the market value of our property.

Check Out Our Deer Ridge Owners YouTube Channel!

We are currently up to 18 videos that we’ve posted on our DeerRidgeOwners Channel… and are adding more videos every week.  Click DeerRidgeOwners Channel to see what’s new!

Unfortunately, we were thwarted by procedural issues yesterday during our court hearing on our lawsuit against GGRC and the Board of Directors and Joe Thomas. These procedural issues had to do with our pursuit of a class action and a derivative action claim regarding our case – and had absolutely nothing to do with the merits and claims in our case.

Those merits and claims were not even heard yesterday.

We expect to modify and/or amend our lawsuit to solve these procedural issues so that the judge can finally hear arguments on the merits of our multiple claims about the way that GGRC is illegitimately and illegally managed.

Judge Rules We DO Have A Right To COPIES Of ALL Books And Records

One point that was made crystal clear by the judge at the hearing yesterday was that I, as an owner, clearly and absolutely deserve COPIES of all books and records related to GGRC, RML and Ridge Resort Realty.

Our immediate focus will be on finally getting a copy of the “Admin Book” which is the chronological books and records in the format that is required by Tennessee state law. As far as I know, this will be the first time any owner has seen these books and records in the right format – ever!

We believe this is a massive win for the benefit of all owners at Deer Ridge. We intend to perform a forensic audit of every line item in the administrator’s book. Once that’s completed, we expect to issue detailed sworn interrogatories from Joe Thomas and the entire board with specific and explicit questions we will have as a result of our forensic audit. We expect those sworn answers to the interrogatories, and the follow up depositions, to be very revealing with all kinds of potential consequences.

We are going to start with the Admin Book before we get bogged down on reviewing a lot of other documents – with a couple of exceptions.

Besides immediately pursuing our copies of the Admin Book, we intend to review all e-mails between all members of the board and also those of Joe Thomas.

We will also request, for immediate review, a few more documents that are required to be maintained by the GGRC Master Deed:

The Mortgage Book

Firstly, according to Article XIII of the Bylaws, entitled “Mortgages”, the Board of Directors shall maintain a book entitled, “Mortgagees of Condominium Units” which is required to list all mortgage activity and amounts for every unit at Deer Ridge Mountain Resort since the property regime was formed.

Since this mandatory book is necessary for all votes required in Article XII of the Bylaws, we will demand that Joe Thomas and the board provide a copy of this document to me immediately. We request that this document includes all mortgagee changes from January 2005 through the present day.

Insurance Escrow Account

Secondly, I am highly concerned about the economic viability of GGRC in light of RML’s huge $152,000 negative annual cash flow. With that concern in mind, I am highly concerned that Joe Thomas and the Board of Directors have been negligent with regard to Article X of the Master Deed.

Article X, entitled “Insurance”, provides in Section 3 that all owners are to pay a separate check for their pro rata share of the Common Expense for insurance so that it can be deposited into a separate trust account.

I am highly concerned that there has never been any requirement of any kind by Joe Thomas and the board for any owner to abide by this requirement since my purchase in 2005. I am further concerned that all owners at Deer Ridge are not being afforded the economic protection provided by Article X Section 3 of the Master Deed. I believe there may not be any separate escrow account established and properly funded in accordance with Section 3 of Article X.

Since the annual insurance premium is substantive at approximately $55,000, my calculations show that approximately $4,583 should be escrowed each month and the amount of the account balance should be sufficient to pay the annual $55,000 sixty days prior to the due date as required by the Master Deed.

Proof Of Protection For ALL Owners Against A Lapse In Insurance Coverage

It is critical for ALL owners that we have sufficient funds to pay our property insurance annual payment when it is due – and not risk ANY potential lapse in coverage that could very detrimentally affect us all.

By way of verifying that Joe Thomas and the board have properly abided by the Master Deed on these issues, I, will be IMMEDIATELY requesting the following be provided to me, in accordance with the Tennessee Horizontal Property Act:

• A copy of the current, and most recent three years, annual insurance policy cover page, showing due date of insurance premium, coverage and coverage dates.
• A copy of the current and past 24 months of bank statements for the separate escrow account that is required to be maintained for the insurance payment.
• Since I am also concerned that Joe Thomas and the board have fulfilled their commitment and promise to maintain a separate escrow account for the “special assessment”, I also request a copy of the current and past 15 months of bank statements for the separate escrow account that is required for the “special assessment.”

By my count, this should only require copying fewer than a hundred pages.

Assuming that Joe Thomas and the board have, in fact, properly abided by The Master Deed and Bylaws, I would assume there would be no problem in immediately providing these relevant and reasonable requests for information on my investment at Deer Ridge.

Even More Violations By Joe Thomas And The Board?

It will be interesting to see if these documents and accounts exist – or, more expectantly, are yet again even more violations of our Master Deed and Bylaws by Joe Thomas and the board.  If these documents and accounts don’t exist in their proper format, it is my opinion that this, by itself, is sufficient reason to fire Joe Thomas and the entire board for “cause” for gross negligence and gross incompetence.

What’s Your Experience With These Documents?

As to whether these documents and accounts exist, let me ask all owners:

• Have YOU ever written a separate check to the Insurance escrow account as required by our Master Deed?
• Have YOU ever given GGRC a copy of YOUR mortgage?

If your answer is NO, then I think we probably already know the answers as to whether Joe Thomas and the board have been violating yet MORE parts of the governing documents for Deer Ridge Mountain Resort.

Stay tuned – we live in interesting times!

In my opinion, Larry Ohm, CPA, Treasurer and “board” member of GGRC, aka Deer Ridge Mountain Resort, has been lying to owners for years. Click the YouTube icon to watch in high def and full screen so you can see the numbers.

He attests that the books that he and Joe Thomas cook up are a fair reflection of the operations of both GGRC and RML. In my opinion, these are fabricated lies to mislead the owners at Deer Ridge.

This video shows you why I believe that to be the case.

Find the detailed math at www.DeerRidgeOwners.com/realrml

Prove me wrong if you don’t believe me. But don’t be fooled by the lies and the small checks you get from RML — you are losing a LOT more money than you are netting from using RML. Help stop the bleed from RML — Now!

We have filed a $3 million lawsuit against Deer Ridge Mountain Resort Gatlinburg, Tennessee, its General Manager and all individual board members. Several of these issues may be decided very soon in response to our Motion for Summary Judgment.

This video gives the background on one of these issues: The illegitimacy of RML, a wholly owned subsidiary of our HOA costing us $152,000 / year and has squandered nearly AT LEAST $1.3 MILLION over the past 16 years.

Our $3 Million HOA Lawsuit is against the HOA, Deer Ridge Mountain Resort, AKA Gatlinburg Golf and Racquet Club (GGRC) HOA. It is also against General Manager and “board members” Joe Thomas, Luther Parker, Larry Ohm, Margie Duncan, David Barone and Tom Reise, all as individuals.

Full details on lawsuit at: http://DeerRidgeOwners.com.

Primary goals of lawsuit:

1. Force HOA Board and General Manager to abide by both Tennessee State Law and Deer Ridge governing documents.
2. Do away with RML and Ridge Resort Realty as illegitimate ultra vires entities – and stop the $152,000 a year loss to our HOA, GGRC, each year caused by RML.
3. Force the HOA, GGRC, to abide by the Master Deed Percentages and stop financial discrimination against 36% of all owners.
4. Force the HOA to stop overcharging the 30 one bedroom owners by a whopping 82% each month.
5. Force the HOA to stop overcharging the 30 one bedroom owners for assessments, water, and other services.
6. Stop the board from making any alterations or additions to the Common Elements without both the 75% vote of all owners AND the 90% vote of all mortgage holders for all units at Deer Ridge.This is a specific requirement of our Master Deed but has ALWAYS been ignored by the Board. Over $200,000 illegitimately spent in last 5 years.
7. Force the HOA, GGRC, to abide by Tennessee State Law and finally provide the REAL books and records in the format required by the Horizontal Property Act of Tennessee.The Board has continuously fought providing these books and records to owners for more than FIVE YEARS. (Makes you wonder why, huh?)

We will have separate presentations on all four issues for Summary Judgment — so stay tuned for those videos at our blog and our YouTube Channel!