Deer Ridge Owners - Deer Ridge Mountain Resort - Gatlinburg, Tennessee » Deer Ridge – General

Tennessee Consumer Affairs Complaint Filed Against Joe Thomas – Attorney General Action Requested

Robert — Mon, 30 Jan 2012 18:43:58 +0000

We are filing an official complaint with the Tennessee Consumer Affairs Division against Joe Thomas, principal broker of Ridge Resort Realty and general manager of both Ridge Management Ltd., Inc. and Gatlinburg Golf and Racquet Club aka Deer Ridge Mountain Resort in Gatlinburg, Tennessee. This complaint is primarily focused on what we believe are deceptive trade practices by Joe Thomas.

This Consumer Affairs complaint is in addition to the just completed complaint package that is being sent to the Tennessee Real Estate Commission requesting them to take disciplinary action against Joe Thomas for multiple violations of the Tennessee Real Estate Broker Act.

These alleged violations include deceptive trade practices, conduct that constitutes improper, fraudulent and dishonest dealings, willful misrepresentations, wrongly acting for more than one party in Deer Ridge transactions without the knowledge and consent in writing of all parties, etc. . We are specifically requesting that their disciplinary actions include fines and permanent revocation of Joe Thomas’ Tennessee real estate license.

The attachment to the Consumer Affairs complaint form is essentially the same as the one that was used for our formal complaint filed with TREC – with the exception of a couple of paragraphs of additional information that we choose to keep confidential at this time.

The only hold up to sending these two packages is that the TREC form requires notarization. This will be done and the completed packages mailed to both TREC and Consumer Affairs either Tuesday or Wednesday of this week.

Four Separate Actions Against Joe Thomas – So Far

Once these packages are mailed, we will have four separate actions in process against Joe Thomas:

Tennessee Securities Division for securities fraud and other securities law violations, etc. Please click Securities Fraud for details.
Tennessee Real Estate Commission (TREC) for multiple violations of the Tennessee Real Estate Broker Act, etc. Please click TREC for details.
Tennessee Consumer Affairs Division for deceptive trade practices, misrepresentations, etc.
Tennessee Attorney General for investigation and possible prosecution of actions related to the above three areas of focus, etc.

Pay attention, Joe: All of these great folks are from the government – and they are here to help you! Who knows? They might, just maybe, all show up at one time to help you all at once!

With regard to Item 1 above: Our complaint has been received by the Tennessee Securities Division, they have assigned an investigator and I have already spoken with the investigator to give additional information. As a consequence, this ticking time bomb is already getting closer to detonation!

Our hope is that each of these agencies will take appropriate actions to stop the ongoing pattern of deceptive trade practices, misrepresentations, securities fraud and discrimination that we believe are regularly perpetrated by Joe Thomas in his triple roles at Deer Ridge Mountain Resort that result in so much conflict of interest

Our hope is that both TREC and the Consumer Affairs Division will review our complaint and conclude that all of our allegations against Joe Thomas are not only fully accurate but that his past and future actions represent a true threat to the public. As such, we are requesting that he not only be sanctioned and substantially fined for his nefarious activities that have continued for more than a decade – but that his Tennessee real estate broker’s license will be permanently revoked so that he can no longer deceive those buying and selling Deer Ridge condos or other real estate in Tennessee.

File Your Own Consumer Affairs Complaint Against Joe Thomas

As described below, we believe we were intentionally deceived by Joe Thomas when we bought our condo at Deer Ridge. If you believe that Joe Thomas also deceived you when you bought your Deer Ridge condo, you are welcome to use the applicable part of our narrative in your own complaint. Simply take that information and complete your own complaint form against Joe Thomas. The Consumer Affairs complaint process and form are available by clicking “Book Em Danno”.

Note: It costs you nothing to file a complaint against Joe Thomas with Consumer Affairs. The great State of Tennessee will take care of it all for you, start to finish, without you having to spend a penny.

Allegations

Remember, as of now these are just my allegations of real estate and 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 or if TREC and Consumer Affairs agree with me.

Next Filings

We also hope to have the time this week to file a comprehensive securities fraud complaint with the SEC in Washington, D.C

Other state filings, starting with Florida State Securities Division, will be done over the next one to two weeks.

Stay Tuned!

We live in interesting times. And, hopefully, with the help of the State of Tennessee Securities Division, Tennessee Real Estate Commission, Tennessee Consumer Affairs Division and the Tennessee Attorney General, we will make 2012 VERY interesting for the Gang of Six!

Tennessee Real Estate Commission Complaint Filed Against Broker Joe Thomas – License 281040

Robert — Sat, 28 Jan 2012 19:36:23 +0000

We are filing the following official complaint with the Tennessee Real Estate Commission (TREC) against Joe Thomas, principal broker of Ridge Resort Realty and general manager of both Ridge Management Ltd., Inc. and Gatlinburg Golf and Racquet Club aka Deer Ridge Mountain Resort in Gatlinburg, Tennessee.

All the paperwork, including the sworn affidavit and official complaint are done, the CD-ROM with 300 pages of supporting documents and evidence has been burned and the envelope for mailing is complete. The only hold up is that the TREC form requires notarization. This will be done and the entire package mailed to TREC either Monday or Tuesday of next week.

Securities Fraud Complaint Already Filed With Tennessee Securities Division

The TREC complaint is the next in a series of regulatory filings we intend to make against Joe Thomas and/or the GGRC and RML board for their roles in what we believe are ongoing securities fraud and other securities law violations, including multiple states and federal violations.

You can read all about my complaint filed with the Tennessee Securities Division by clicking Securities Fraud Complaint against 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 and Principal Broker and General Manager of RML and GGRC, Joseph Thomas of Kodak, TN.

(Update: The above complaint has been received by the Tennessee Securities Division, they have assigned an investigator and I have already spoken with the investigator to give additional information. As a consequence, this ticking time bomb is already getting closer to detonation!)

Meanwhile, Back At The Ranch…TREC Complaint And Requested Actions Against Joe Thomas

This particular TREC complaint is currently only focused on Joe Thomas and what we believe are his multiple, serious violations of the Tennessee Real Estate Broker License Act of 1973, as amended. These alleged violations include deceptive trade practices, conduct that constitutes improper, fraudulent and dishonest dealings, willful misrepresentations, wrongly acting for more than one party in Deer Ridge transactions without the knowledge and consent in writing of all parties, etc. (Even though this complaint is solely focused against Joe Thomas, TREC may choose to include actions against Ridge Resort Realty and/or RML and its board.)

Our hope is that TREC will review our complaint and conclude that all of our allegations against Joe Thomas are not only fully accurate but that his past and future actions represent a true threat to the public. As such, we are requesting that he not only be sanctioned and substantially fined for his nefarious activities that have continued for more than a decade – but that his Tennessee real estate broker’s license will be permanently revoked so that he can no longer deceive those buying and selling Deer Ridge condos or other real estate in Tennessee.

File Your Own TREC Complaint Against Joe Thomas

As described below, we believe we were intentionally deceived by Joe Thomas when we bought our condo at Deer Ridge. If you believe that Joe Thomas also deceived you when you bought your Deer Ridge condo, you are welcome to use the applicable part of the below narrative in your own complaint. Simply take that information and complete your own complaint form against Joe Thomas. The TREC complaint process and form are available by clicking “Book Em Danno”.

Note: It costs you nothing to file a complaint against Joe Thomas with TREC. The great State of Tennessee will take care of it all for you, start to finish, without you having to spend a penny.

Their $1 Million Lawsuit

If you recall, a lot of this started when the Gang of Six (Joe Thomas and the “board”) filed a $1 million lawsuit against me for “slander, libel and ‘false light’, etc.” as a way of trying to silence my first amendment rights and to try to shut down this blog. That was two years ago – and we are still here. However, based on recent actions by the Gang, they are still delusional that their $1 million nuisance suit gives them a hammer to force my capitulation.

One of the things that the Gang doesn’t seem to understand: You can legitimately say bad things about people if you believe they are true. And, we have already proven that Luther Parker, Larry Ohm and Joe Thomas, along with the rest of the board have perpetrated a $2 million fraud by falsely claiming that RML makes money for the HOA. (For details, click Luther Parker’s Big Lie.) We believe that this alone would easily convince a jury of our peers that we had the right to say what we have said and continue to say about Joe Thomas and the rest of the Gang. In spite of this, the Gang continues to squander our HOA dues on legal fees in their ongoing vendetta to protect their own little private fiefdom called Deer Ridge.

As a consequence, and with the goal of showing even more proof to a jury of my peers, I am very aggressively pursuing appropriate regulatory rulings that will show that Joe Thomas and the rest of Gang, have had very unclean hands as a result of their massive, ongoing securities fraud, other state and federal securities law violations, deceptive trade practices and violations of Tennessee consumer protection and real estate laws.

Even a single favorable ruling by any of the regulatory agencies agreeing with our official complaints would be that much more proof to the jury that the $1 million lawsuit by the Gang of Six was nothing more than a retaliatory way of trying to suppress our free speech. Having been born and raise in Tennessee, I can tell you with absolute certainty, Tennesseans take their right to free speech VERY seriously. And, they will have no tolerance for the Gang’s actions.

Allegations

Next Filings

During the upcoming week, our regulatory filing of official complaints will include the Tennessee Consumer Protection Division which will be essentially identical to this official complaint filed with TREC. We also hope to have the time this week to file a comprehensive securities fraud complaint with the SEC in Washington, D.C

Other state filings, starting with Florida State Securities Division, will be done over the next one to two weeks.

The Official TREC Complaint

The following is the content of a letter that was attached to the TREC Complaint Form. Also, included in the envelope is a CD-ROM with 300 pages of supporting documents and other evidence.

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Complaint: Deceptive Trade Practices, Securities Fraud And More Against Tennessee Real Estate Broker
Joseph Thomas – Tennessee License 281040

Summary

This complaint being brought before the Tennessee Real Estate Commission specifically deals with my multiple complaints regarding Tennessee real estate broker Joseph Thomas of Kodak, Tennessee for conduct that constitutes improper, fraudulent and dishonest dealings and other violations of the Tennessee Real Estate Broker License Act of 1973.

The home phone number and home address of Joe Thomas are: (865) 932-1669 / 3229 Autumn Lane, Kodak, TN 37764. The Tennessee Real Estate License number for Joe Thomas is 281040.

To fully understand the extent of Joe Thomas’ alleged willful misrepresentations, deceptive trade practices, securities fraud and more, it is necessary to fully define his conflicting roles with three related companies: Ridge Management, Inc., Gatlinburg Golf and Racquet Club and Ridge Resort Reality.

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.

Joseph Thomas of Kodak, Tennessee serves as the General Manager of both GGRC and RML.

He also serves as Principal Broker of Ridge Resort Realty (“RRR”) (www.RidgeResortRealty.com ) which is a DBA of RML. As a consequence, Joe Thomas serves three major roles in companies all related to RRR, thereby creating a substantive conflict of interest that is not clearly disclosed to buyers of condos at Deer Ridge.

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.

It is important to note that RML, under the direction of Joe Thomas, 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 or more per year on 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 over $2 million during the past 16.5 years. As the following will show, this $2 million loss was funded by mandatory, illegitimate capital calls that were required to be paid by the real estate owners of all 84 units at Deer Ridge.

By way of background, for the past six plus years, I have been an owner of one of the 84 condo units at Deer Ridge 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 Goodman Securities, Inc., 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, real estate broker Joe Thomas and the board of directors of RML have committed, and continue to commit, what I believe are major state and federal securities law violations including securities fraud exceeding $2 million.

As founder and CEO of a real estate investment company for 15 years that purchased, as a principal, over $100 million of income properties and managed over 45,000 rental units, I believe that I have the necessary credentials and background to recognize that Joe Thomas has committed, and continues to commit, willful misrepresentations, exhibit conduct that constitutes improper, fraudulent and dishonest dealings and deceptive and fraudulent trade practices with regard to many millions of dollars or real estate transactions in Tennessee.

It is my contention that these willful misrepresentations, securities law violations and deceptive trade practices, which have been going on for more than a decade by Joe Thomas, have already resulted in many past and current condo owners being forced into personal bankruptcy and/or losing their Deer Ridge condo in foreclosure or have forced past owners to sell their unit at a significant loss.

As such, I respectfully request that the Tennessee Real Estate Commission thoroughly investigate these complaints for the protection of the past, current and future real estate purchasers of Deer Ridge condos and any and all other persons involved with Tennessee real estate transactions involving Joe Thomas.

Specific Complaints Against Joe Thomas

My complaints include the following allegations:

1. Joe Thomas, General Manager of both GGRC and RML, and the board continue to perpetrate a fraud on all owners by fraudulently claiming, as recently as 60 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 these fraudulent statements and willful misrepresentations, CPA audits commissioned by the corporation clearly show that RML has lost nearly $2 million of owner’s 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 has been funded directly out of the pockets of all 84 Deer Ridge owners under the guise of increased, mandatory monthly HOA fees charged 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 owners.

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 owners 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 owners 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.

11. 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 Deer Ridge condos in the mainstream media, thereby, in my opinion, publicly offering unregistered securities to Tennessee residents and engaging in securities fraud every time that he attempts to broker a real estate transaction at Deer Ridge.

12. 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, potential buyers are never told of major, unexpected, undisclosed risk factors prior to their purchase of a of a Deer Ridge condo: Their required ownership of stock in RML and their required ongoing, monthly capital infusions into a money losing venture called RML – and that their non-payment of these capital infusions into this money losing venture would result in foreclosure of their Deer Ridge real estate and contingent personal liability for any potential deficiency.

13. 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.

14. 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, his willful misrepresentations and his deceptive trade practices.

15. Additionally, Joe Thomas and the board of RML and GGRC have conspired to modify the required monthly HOA fees so that they do not match those percentages shown in the Master Deed and Bylaws. For example, the currently charged HOA fee for a one bedroom, one bath condo at Deer Ridge is, in fact, 82% higher each and every month than the percentages that would be paid according to the regime documents provided by Joe Thomas to us and other new buyers of 1-1 units.

In spite of his insider knowledge of this massive 82% discrepancy, Joe Thomas does not disclose this gross overcharge to new buyers of 1-1 units. (36% of all units at Deer Ridge are 1-1 units.) Most buyers would have a reasonable expectation that the property’s Master Deed and Bylaws would be followed by the HOA’s board. As general manager of GGRC, the property’s HOA, Joe Thomas clearly understands this discrepancy – especially in light of Joe Thomas, GGRC and each individual board member being named as co-defendants in a lawsuit in which this 82% overcharge is a key issue. In spite of Joe Thomas’ crystal clear knowledge of this 82% overcharge, the fact is still not properly disclosed on Deer Ridge sales in which he is a participating broker. Likewise, Joe Thomas does not disclose the existence of this current, potentially significant, litigation against the HOA to any new buyers of any sized units at Deer Ridge.

16. 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 these disclosures as part of his deceptive trade practices as a Tennessee real estate agent since many buyers, ourselves included, would have never bought a Deer Ridge condo if proper disclosure of these risk factors and gross overcharges had been properly made.

17. 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.

18. It is my contention that Joe Thomas , as General Manager and Principal Broker, is aided and abetted by all five members of the board of directors of RML, all of whom are co-conspirators in securities fraud and other securities law violations and have breached their fiduciary duties to all owners. 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.

19. 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 annual 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.

20. 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 owners.

21. As a result of his inherent conflicts of interest from being the General Manager of RML from which he receives his primary compensation, Joe Thomas, as principal broker for RRR, has consistently discriminated against potential buyers of condos at Deer Ridge who he believed would be a resident owner or who would otherwise not use RML for rental activities. As such, I contend that Joe Thomas was, and is, wrongly acting for more than one party in Deer Ridge transaction without the knowledge and consent in writing of all parties. As such, sellers were not able to have all possible prospective buyers bid on their property. As such, many buyers who were interested in becoming a full time resident were directly, or through subterfuge, strongly discouraged from buying a condo at Deer Ridge. I contend that these malicious acts were, and are, motivated by Joe Thomas’ expectations of increased personal gain at the expense of owners wishing to sell their units.

22. Additionally, those owners who choose to not use RML’s motel services, such as the 24 current owners, continue to be subjected, under the direction of Joe Thomas, to significant discrimination, retaliatory actions and malicious slander and libel as well as being burdened with financial costs not borne by RML participants.

23. 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.

24. 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!

25. 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.

26. During the past six plus years that I have owned a condo at Deer Ridge, I have documentation that repeatedly pointed out to Joe Thomas and 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.

27. 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 15 plus years of experience from acquiring $100 million of income property and managing 45,000 rental units – and 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 owners of condos at Deer Ridge.

The owners at Deer Ridge are mostly unaccredited investors who, in my opinion, are being consistently and deliberately deceived and victimized by a conspiracy of Joe Thomas and the board of directors of both RML and GGRC who are personally benefiting from these deceptions. I believe that these ongoing activities, deceptive trade practices and material misrepresentations are violations of the Tennessee Securities Act of 1980, as amended, and violations of the Tennessee Real Estate Broker License Act of 1973, 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 willful misrepresentations, conduct that constitutes improper, fraudulent or dishonest dealings and numerous and substantial securities law violations to the financial determent of past, current and future owners of condos at Deer Ridge.

I have already filed a complaint for securities fraud with the Securities Division of the Department of Commerce and Insurance for the State of Tennessee asking that they investigate this complaint for the protection of the current and future owners of stock in RML. They have already assigned an investigator who has initiated a comprehensive review of the facts from a securities perspective.

Additionally, I have hired an attorney and we have filed several court actions against Joe Thomas as a result of his willful misrepresentations, deceptive trade practices, violations of securities laws and other nefarious acts.

I am not looking to the Tennessee Real Estate Commission for any recovery of funds to which I may be entitled. I shall look to the courts for that relief.

However, it is my strong belief that the public needs to be protected from Joe Thomas – and that he should not only be sanctioned and substantially fined by the Tennessee Real Estate Commission – but should have his Tennessee real estate license permanently revoked to prevent him from continuing to victimize, mislead and deceive any more real estate buyers and sellers in our great State.

I will be glad to be of help to your investigation and will gladly testify at any hearings concerning this matter.

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 multitude real estate violations of Joe Thomas.

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 Tennessee Real Estate Commission will show the nation that we Tennesseans will not tolerate real estate fraud, deceptive trade practices, securities fraud and other securities law violations – and that even unaccredited and unsophisticated real estate buyers 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 and the Tennessee Real Estate Commission, we will make 2012 VERY interesting for the Gang of Six!

Investigator Assigned In Deer Ridge Securities Fraud Complaint

Robert — Sat, 14 Jan 2012 15:43:58 +0000

FLASH NEWS!

As you have read here, I have filed a securities fraud complaint 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.

I received a letter from them yesterday stating that an investigator has been assigned to the case.

Obviously, this is only the first step in their determining if there is probable cause to believe there has been a violation, or violations, of the Tennessee Securities Act of 1980 in order for them to refer evidence of violations for criminal or administrative action.

You can read all about my securities fraud complaint against RML, Luther Parker, Larry Ohm CPA, Joe Thomas and all “board members” of Ridge Management Ltd, Inc. by clicking “Book ‘em Danno!”

There, you can also see how you can file your own securities fraud complaint against the Gang of Six!

Stay Tuned!

We live in interesting times….and things, I hope, may get VERY interesting VERY soon!

Securities Fraud Complaint Filed Against RML, Luther Parker, CPA Larry Ohm, Joe Thomas And All Board Members

Robert — Wed, 21 Dec 2011 17:35:04 +0000

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

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

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:

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.
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.
This RML loss of $1,915,934 over the past 16.5 years equates to an average RML loss of $116,117 every year.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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!
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.
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.
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.

Thank you for your consideration of my complaint.

Sincerely,

Robert Goodman

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!

If You Are In RML, Your Deer Ridge Condo Can Be Used Free By Joe Thomas

Robert — Fri, 02 Dec 2011 18:49:34 +0000

If you are signed up with RML:

Do you realize that Joe Thomas can use your Deer Ridge unit as much as he wants – without paying you a dime?
Do you realize that Joe Thomas and other employees of RML, and board members can get free stays in Hilton Head, Myrtle Beach and other resorts, get free meals at restaurants, maybe even get free cruises, and enjoy other “personal benefits” – all because RML can use your unit for “promotional” and “complimentary usage”?
Do you realize that all this “wear and tear” on your unit gets you zero income?
Do you realize that you are the one who has to cover the cost for the utilities that are used – so that it is costing you money out of your pocket?
Do you realize that when it is being used for “promotional” and “complimentary usage” that it is unavailable for rental income or even the owner’s use?
Do you realize that Joe Thomas does not even need to tell you when or how often or how many total nights a year that your unit is used like this?
Do you realize that Joe Thomas has “sole discretion” with regard to all of the above – no matter what the owner wants?

Don’t believe me? Well, here is a snippet from the current RML Agreement that all RML users sign:

Pretty scary, huh?

These are know as “trade outs” in the business.

Trade Outs are barter arrangement in which goods or services are exchanged for other goods and services. For example, a newsprint supplier may get advertising space in exchange for paper, or a janitorial firm may exchange its services for a market research by an advertising firm.

Since we live here, we see how much of this goes on. And let me tell you, here in east Tennessee, the barter system is alive and well – and used often.

Interestingly enough, we have noted a huge increase in “tourists” with local tags on the vehicles – and when we say local, we mean tags that indicate the vehicle is registered in either our own Sevier County or in adjacent Cocke County. We have overheard many conversations in the parking lot where these “guests” were commenting that they were staying free.

All of this, especially in light of Joe Thomas’ unconstrained ability to use any RML owner’s unit for “promotional” purposes, makes us wonder what personal benefits he may, just maybe, be receiving at the expense of owners.

I don’t know about you – but if all of this turns out to be true, I personally do not think it is ethical or right for Joe Thomas to be using owners’ units as some kind of new, untraceable currency for his personal benefit. In my opinion, Joe Thomas should not be enjoying free golfing junkets to Hilton Head, Myrtle Beach and beyond – because of the above clause in the RML Rental Agreement.

Next time you talk to Joe Thomas, ask him to tell you how many free trips and cruises he has taken, and his staff have taken, over the years as a consequence of his abilities to use YOUR unit for HIS benefit. Ask Joe Thomas whatever other personal benefits he has received, such as restaurant vouchers and the like, as a consequence of his abilities to use YOUR unit for HIS benefit.

I doubt you will get an honest answer, but I highly recommend the dialog.

How much has YOUR condo been used by Joe Thomas for his own personal benefit?

Another Good Reason To Use Cobbly Nob Rentals

If you sign up with Cobbly Nob Rentals, their contract specifically limits them to use your unit for no more than three days per year – and they cover your costs. Plus, they only charge a 35% management fee versus RML’s current 50% rip off fee. (And 35% is still better than the recent promise to lower RML’s rip off rate in 2012.)

Here’s the snippet from Cobbly Nob’s Agreement:

Which sounds like a better deal to you?

If you would like a better property management company, if you would like more rented nights and if you would like to avoid being overcharged 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.

How I Saved One Group Of Deer Ridge Owners Between $62,000-$310,000 Or More

Robert — Fri, 25 Nov 2011 20:37:03 +0000

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!

Another Deer Ridge Owner Dumps RML For Cobbly Nob Rentals

Robert — Mon, 17 Oct 2011 20:12:18 +0000

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!

Deer Ridge Owners: Avoid The RML 43% Rip Off

Robert — Wed, 12 Oct 2011 19:52:26 +0000

The RML Monopoly Is Over!

If you own a unit at Deer Ridge and would like:

A better property management company
More rented nights
Bigger rent deposits into your bank account
Would like to avoid being overcharged by 43% by RML
Want to stop RML from losing $10,000 a month out of GGRC accounts
Cut everyone’s HOA fees in HALF
See the three easy steps you need to take now for zero cost to you

Then click Avoid the RML 43% Rip Off for details!

(Or, just click The Terminator to download the notice to send to Joe Thomas to cancel your RML Agreement.)

Comments From First Deer Ridge Owner To Sign With Cobbly Nob Rentals

Robert — Wed, 12 Oct 2011 19:31:53 +0000

This is the comment I received from Linda Morgan today about her experience signing up with Cobbly Nob Rentals.

Linda is the first Deer Ridge Owner to take advantage of the new property management deal I negotiated with Cobbly last week.

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.”

However, as you will read, Linda will show you how there are a LOT of additional benefits that you will gain from firing RML in the next 30 days and signing up with Cobbly Nob Rentals.

If you are not happy for any reason with the rental company you are using, it would be so worth your time to contact Cobbly Nob Rentals’ General Manager Doug Sharp.

Robert Goodman did us the favor of choosing them, but after speaking with them just a few times, so much more has come out about their goals for us, their attitude towards owners (they feel it is our place and do not penalize us for using it) and their way of marketing our units.

Cobbly Nob is located on 321 near Deer Ridge and has always had walk-in traffic because of their location and restaurant. What I didn’t know, is that they have had requests about Deer Ridge rentals because people can see the units on the side of the hill as they are driving by and are wondering about rentals. It is an impressive sight and that is how I found it.

The major difference you have heard about is the percentage, but there is so much more to it.

Never have I spoken to anyone or any company in the rental business in that area that has had such an accommodating attitude towards the owners, as well as having the satisfaction of the guests so important to them.

When I explained that there are some times during the winter season when our road is not navigable and what would they do in that situation, Mr.Sharp said they have 4 wheel drive vehicles there at their office and drive the guests up safely and also bring them down when needed. Would that be noticeable to a guest, or would they rather have a sign saying “road closed” and no way to get thru.

If this service was ever offered by RML, I never heard of it.

Also, as with other rentals companies, Deer Ridge was always difficult to put into their rental company because of various reasons. It is the perfect time to try a company who has other units for rent and doesn’t depend on gouging only us for every little thing. Also the location is perfect for our guests and they get walk-in traffic as well and are earnest in building repeat customers. They are as happy about having the chance to work for us, as we are to have them. Have you ever heard that before?

Quite a different attitude than with the previous company. So yes, the percentage is better, but it is worth your time to contact Doug at Cobbly Nob and see what else they have to offer. Rentals and rental companies are changing in the Gatlinburg and area and it is time to go with a more updated company and their system. Deer Ridge is such a beautiful place it will be nice to get what it deserves traffic-wise.

Thank you again to Robert Goodman for qualifying this company for us all.

If you 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!

PS: 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!

Breaking News: New Rental Management Company Deal For Deer Ridge Owners!

Robert — Sat, 08 Oct 2011 20:33:24 +0000

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:

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.)
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.
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.

Wanted: Condo Rental Management Company In Gatlinburg Tennessee

Robert — Thu, 08 Sep 2011 16:42:12 +0000

I represent several owners at Deer Ridge Mountain Resort in the Cobbly Nob section of Gatlinburg who have asked me to look for a new condo rental company to replace their use of Ridge Management (RML.)

Note that I am not a broker and am not looking for any commission or referral fee of any kind.

I am seeking a company that is interested in offering these rental services to between 12 and 24 separate owners at a competitive rate, inclusive of maid service. This number of owners could go much higher depending on your terms and rates.

Recently, RML raised its management fee from 40% to 50% of rents collected – and many owners are outraged and interested in an immediate change.

So, with the right proposal, you may get a significantly higher portion of the 64 condos currently being managed by RML. Note that the owners’ current RML agreement requires a 60 day written notice of cancellation.

Several owners here at Deer Ridge are taking steps to force the shut down of the money losing RML operation and its negative impact on our HOA. (Annualizing their most recent accounting, Ridge Management is projected to lose over $116,000 for calendar year 2011.) With only 64 units and a few cabins, RML can’t cover its payroll and overhead. Hence, several owners are joining together to get our HOA completely out of the rental business ASAP.

If we are successful, then all 64 units may eventually have a need for a new rental management company.

But we want to start the transition with the one dozen to two dozen owners who want to change rental companies now.

By way of background, I started my own property management company and grew it to manage over 45,000 total rental units – so I understand the economics and the economies of scale involved in this business.

Based on my analysis, I would expect that each Deer Ridge unit should offer at least an annual $4,000 net income opportunity for the right management company – with most of that flowing to the bottom line for many companies that already have their fixed overhead covered.

This means approximate incremental annual income to the right rental management company of:

$48,000 a year for a dozen Deer Ridge units
$96,000 for two dozen Deer Ridge units
$144,000 a year for three dozen Deer Ridge units
$256,000 a year from all 64 potential units at Deer Ridge

My goal is to offer all Deer Ridge owners a good enough alternative deal that at least 25 of the 64 units currently managed by RML switch to the new, winning company (that’s $100,000 a year.) With the right bid, this goal could be easily surpassed.

How many of the 64 units would you like to add to your management portfolio?

I plan on reviewing all bids from interested rental management companies in the area and will personally recommend the best offer to all the owners. Again, I am not a broker and am not looking for any commission or referral fee of any kind – I am simply trying to help my fellow owners NET much more rental income on their Deer Ridge investment.

In this economy, with Park visitations down, I understand how the high fixed overhead for property management companies can have you constantly scrambling for ways to improve cash flow.

Think how much incremental cash flow you might gain from two or three dozen additional rental properties in one complex being added to your portfolio.

If this additional rental revenue stream is of interest to you and your company, or to another company you know, please click Email Me so I can review your best terms, your company brochure, your references and the actual management agreement that you would require owners to sign.

Deer Ridge Board Violates Article XII Of Our Master Deed – Again

Robert — Wed, 31 Aug 2011 18:53:05 +0000

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.

More Resident Owner Discrimination At Deer Ridge: Two Letters Regarding Our Handling Of Noisy, Obnoxious Tourists

Robert — Tue, 30 Aug 2011 17:34:15 +0000

Below is a copy of an email that was sent to Joe Thomas and the “board” at Deer Ridge Mountain Resort.

We believe that Joe Thomas continues his attempted harassment, intimidation and discrimination against any and all resident owners at Deer Ridge who in any way reduces his income from the illegitimate RML motel rental activities.

Judge For Yourself

To: Joe Thomas and “Board”
Re: Two Letters Regarding Our Handling Of Noisy, Obnoxious Tourists

We received your specious letters of August 5, 2011 and August 24, 2011 complaining about my approach to handling noisy, obnoxious tourists who stay in Unit A-302 at Deer Ridge Mountain Resort.

Neither of your letters are worth my time to point out the countless factual errors and false allegations and spurious assertions that have zero merit…but let me clarify some points for you and the “board” that pertain to this subject:

I view these letters for what they are: part of an ongoing pattern of attempted harassment and intimidation by you and the “board” in order to continue your discrimination against any and all resident owners at Deer Ridge who in any way reduces your income from the illegitimate RML motel rental activities.
We have been told by four tourists in the past six weeks that you are offering a “reward”, incentive or other kinds of compensation in exchange for those tourists generating a positive, glowing report on their stay at Deer Ridge. Besides the clear lack of any ethical moral compass in your even attempting to bribe tourists to give these glowing reports, it strongly emphasizes what I personally believe to be fact: That you continue to flood travel sites with these kinds of bogus reports in order to bury the many negative reports that honest tourists file regarding their stay at Deer Ridge.
Likewise, because of what we see as proof of your tourist report manipulation, we believe that the one that you included in the August 5th letter could have been equally manipulated to misrepresent the truth in order to harass me as a resident owner. I even find that the wording of the tourist complaint smacks of being coached for compensation.
I do continue to note that when the property is almost completely vacant, all the tourists seem to be magically clustered in the A Building, based on parking hangers in the windshields…whereas almost all of C and D Buildings are completely vacant.
Once we get the books and records, we plan on investigating the statistical spreads of rental nights to see if there is, indeed, a pattern of dumping as many tourists as possible in units close to resident owners. If this is, indeed, being done, it is not only more proof of ongoing discrimination against resident owners…but it is also robbing owners in the C and D Buildings of their proportionate share of rental income.
We have also been told by three recent tourists that stayed in Unit A-302 that they knew we were owners. We find this highly suspicious since there is nothing whatsoever on our door that indicates in any way that we are owners. Hence, the only way these tourists could have known that fact was that they were told that during some kind of discussion with the office staff or with you. Besides the obvious increased risk factors to us and the safety of our home created by this kind of inappropriate disclosure, we see this as signs of yet more slander and discrimination against resident owners.
This further supports our strong suspicion that you are willfully and intentionally placing tourists above us who may be instructed, and rewarded, to be especially obnoxious when it comes to being noisy. This would be consistent with what we have been told by prior resident owners here at Deer Ridge that were equally convinced of your attempted harassment and intimidation in order to discriminate against any and all resident owners.

Additionally, we are not constrained by your methodology to deal with obnoxious tourist behavior.

Your “quiet hours” are only a subset of our quiet hours. As a disabled, senior citizen who is home most of the time, my quiet hours are more extensive. As such, I am investigating my legal rights under federal and state fair housing laws that prohibit any discrimination against the disabled and the elderly by you and the “board.”
In fact, I have the legal right to the peaceful and quiet enjoyment of my home ALL the time.
We find that the tourists at Deer Ridge pretty much follow the usual 80%/20% rule. 80% of the tourists are considerate and accommodating once we let them know that the foot fall problem is so bad here due to design issues of the entire property.
We find that knocking on the ceiling once or twice is usually sufficient for reasonable parents to keep their kids from running and jumping around in A-302.
Other times, we find that giving them the one page note that you found so objectionable solves the problem. (Since you erroneously consider it a “sign” that somehow violates the Master Deed and Bylaws, we will either hand it to them directly or leave it as a letter in an envelope for them. Frankly, this same note should be framed and hung in every rental property so that tourists understand the problem since so many complaints regarding foot fall noise have been listed on Trip Advisors, Expedia, etc.)
When the above does not work, I will continue to pound harder and more frequently on our ceiling and I will be forced to increase my direct confrontations with these obnoxious, inconsiderate tourists as I see fit in my sole discretion within the legal constraints of local and state law.
Since you find my one page note so objectionable, I will, from now on, immediately call the Pittman Center Police Department for help in cases of someone as objectionable as the tourist mentioned in your August 5th letter.
We have never benefited from any noise relief by calling the office and will not waste our time with that approach any more. We have received immense help and support on Deer Ridge noise problems with the Pittman Center Police.
Our objections to noise are not solely focused on tourists. As you know, there is another resident in our building who is notorious for noise and a blaring radio on her balcony. When other approaches would not work, I finally called the Pittman Police Department on May 24th. I had recorded the incident on video and the police officer graciously heard our complaint and immediately dealt with this owner. In the nearly 100 days since the police call, there has been zero noise problem from this other owner. If she causes a problem again, even once, we will not hesitate to immediately call the police again, including filing a complaint for prosecution. (You are welcome to view the filed police report if you wish.)
The police officer made it clear that it is part of his job to deal with noise issues at Deer Ridge and urged us to immediately call regarding ANY noise problems we have at this property.
As a consequence, from now on, if we ever have another obnoxious tourist above us who does not immediately cease and desist their noise causing activities, I will once again call the Pittman Center Police Department.
Likewise, if you EVER rent to a group who hires a band to play in the pavilion again, we will immediately call the Pittman Center Police Department. We don’t care how many drunken golfers you may have rented units to. We don’t care what you may deem to be quiet hours. We don’t care how much money you or RML make from the pavilion rental. It will never be tolerated again.
Whether you like it or not, the above is OUR legal and legitimate methodology for dealing with noise issues at Deer Ridge.

I hereby demand that you and the “board” immediately:

Stop any and all harassment of any and all resident owners at Deer Ridge.
Stop trying to unethically manipulate reviews of Deer Ridge.
Stop any and all slander of us or other resident owners to tourists. No tourist has any need to know who is an owner here.

We also demand that you stop any intentionally noisy or potentially noisy tourists from staying in Unit A-302. With all the vacancies at Deer Ridge, it is easy enough to direct them to units above empty condos.

After all, I doubt you want to have a police officer, with uniform, badge and gun, show up knocking on doors at Deer Ridge – or showing up at some drunken party at the pavilion.

Who knows what kind of reviews those kinds of confrontations might generate?

Joe, now that you know MY methodology on noise control, and MY approach to ensure that I have peace and quiet in my own home, I hope you will begin to govern yourself accordingly.

And, if you can’t seem to control yourself, I hope that the “board” will help you understand the implications of all of the above.

cc: Deer Ridge Owners Blog

PS: Naturally, all of the above is my own personal opinion. Please see disclaimer below.

———————————–

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

Discrimination Against Resident Owners Continues At Deer Ridge Mountain Resort

Robert — Fri, 05 Aug 2011 22:25:44 +0000

There has been a long running list of discriminatory acts at Deer Ridge by Joe Thomas and the “board” against owners who reside full time in their own units.

The underlying cause of this is clear: The Gang of Six (Joe Thomas + Five “board” members) is doing whatever they can, irrespective of our Master Deed and Bylaws, to keep us in the motel business no matter how much it costs ALL owners to feed their huge negative cash flow. The Gang is determined to keep “Little Joe’s Notel Motel And Mountain Resort” operating – even if it drives GGRC into bankruptcy.

Since that is their main goal, any owner who does not use RML, with their rip-off rate of 50% management fees, is considered the enemy. So, their agenda seems to be to run off anyone who occupies their unit and interferes with their motel business. With RML barely hanging on by a thread, even gaining one more unit might be pivotal. Even if that means trying to force resident owners to sell in frustration from all of the harassment.

One Smoking Gun: The Board Minutes of April 2004

If you have any doubts that this RML focus is the prevailing mindset of the power elite and Joe Thomas, I invite you to click BOD Meeting 043004 to download a complete copy of the minutes from that “board” meeting. What you will find on page 3 is the following:

Maybe it is just me – but that sure looks like it is clearly the intent of the board at that time, along with its general manager Joe Thomas, to illegitimately gerrymander prospective buyers of all condos for sale at Deer Ridge.

If anything, my guess is that the Gang of Six is even more desperate now, seven years later, to get this property so every unit is a rental unit. And, by definition, if it is a resident owner unit, it cannot be a rental unit.

Notice they want to research “the legal limits” of not allowing any “future units being sold to become non-rental units.” This means to me that they don’t mind getting into some very gray areas of enforcing this issue even beyond black and white legal limits.

(Note: this should also be a major red flag if YOU are one of the 19 out of 84 units (23% of all Deer Ridge units) currently for sale through Joe Thomas and Ridge Resort Realty. Be sure and read how Joe may not have your best interests at heart and may be ignoring interested buyers who may want to be resident owners since it would negatively impact him and RML!

Read “Smoking Gun: Board Minutes Show Intent To Block Sales To Non-RML Buyers“)

We believe this “gray area” beyond “the legal limits” to turn all of Deer Ridge into a “rental property only” has continued to be aggressively pursued by Joe Thomas and the Gang to this day.

Board Minutes of April 2011

During the last “board meeting” in April 2011, the Gang of Six instituted changes to the Rules and Regulations that directly discriminate against resident owners at Deer Ridge.

Notice the yellow-highlighted areas.

There is NO need whatsoever for resident owners to notify the office that they will be away overnight. This is a gross invasion of privacy and does not effect the office or its operation whatsoever. They already have an emergency number. We have lived in many condos during the past several decades and NONE of them EVER required anything of the sort by resident owners. We see this requirement as a major security issue. If the office and other personnel know that we are gone for X number of days and nights, along with the office having a key to our condo, this opens up multiple, potential opportunities for break-ins and other nefarious acts such as theft, vandalism, etc. Plus, we have documented proof of Joe Thomas and RML renting OUR unit when there was NO rental agreement whatsoever. Could it be that Joey wants this advanced notice for more of that kind of illegitimate nonsense? We see the Gang’s insistence on this as a despicable interference with our quiet enjoyment of our own home and will NOT provide them prior notice of any of our travel plans.
This parking requirement for no more than two vehicles was clearly aimed at one resident owner who happens to have two cars and three motorbikes. This owner only took up three parking spaces with all of these vehicles at one of the far ends of the property. We see this as more evidence of an ongoing pattern of discriminatory behavior against resident owners. We often see tourists here who have more than two vehicles per unit.
Note that Item 5 also says it OK for small motorcycle trailers and small RVs to be here for 14 days. Clearly, this is more discrimination. What difference is there if Tourist A is here for a week or two with the above and then Tourist B shows up with the same above vehicles, then Tourist C, etc. I think you see my point. It is OK for tourists who support RML to do things that are NOT allowed by resident owners!
Item 6 says no vehicle maintenance which means I can’t even clean my windshields or fill my windshield washer reserve without violating this far reaching and ambiguous section of the Gang of Six’s Rules and Regs? What about jump starting a dead battery? What’s interesting is that an employee had to work on their car in the parking lot during the past month. Plus, we see tourists having to work on their cars often – especially with the drop in the tourist social-economic profile during the past year (a LOT of this year’s tourists don’t use suitcases – they use trash bags for their belongings.)
Item 10 has been used against resident owners by Joey claiming that guests of owners cannot be in the pool since they are not registered RML guests. This again is clear discrimination. Joey claims that the owner must be present for owner’s guests to use the facilities. Really, Joe? What difference is there if I offer my unit to my sister to use and she wants to use the pool – versus an owner using RML and those tourists using the pool? Besides, we already have all of those non owner cabin tourists using our facilities for free, increasing wear and tear that all owners have to pay for…just so RML can stay in the motel business.

I believe all of the above clearly shows a pattern of intentional discrimination against resident owners.

But, wait! There’s more.

Future Attempted Changes To the Rules And Regs – For More Discrimination Against Resident Owners

During the same April 2011 board meeting, the minutes reflect even more onerous discrimination. This is an excerpt from those minutes:

Clearly, there are FOUR types of owners – all of whom have property rights – irrespective of the Gang’s gray area discrimination attempts to turn all of Deer Ridge into a 100% rental property for the RML motel business.

A key element of this discussion is to try and impose rules that will constrain resident owners that won’t have any real impact on the tourist trade. For example, the constraints on the use of your own balcony. This includes last year’s discussion about prohibiting even small stacks of firewood on the balconies. Obviously, tourists would not use a balcony the same way a resident owner would, including the need for firewood for more than a few nights stay.

That having been said, we see tourists leave all sorts of stuff all over the balconies where nothing is done about it. This includes firewood, coolers, boxes, wet clothes hanging over the railing, bicycles, large air mattresses, rafts, large inner tubes, etc.

These tourists rarely if ever get hassled by Joe and RML over this stuff since the average stay is only a couple of nights. The issue, like the ones mentioned above, is that Tourist A does this, then Tourist B, then Tourist C and so forth. So, for resident owners we are barraged with significantly more eye sores than Joey and the Gang want to allow for us.

Clearly, another strong indication of a pattern on ongoing discrimination.

Lastly, David Barone seems to be harping on “No Commercial or business activity..” is allowed. Many leases and HOAs have similar constraints. These have been interpreted by the courts to mean business and commercial activity that are outside of residential zoning constraints and generally mean those kinds of enterprises that have a customer on site requirement which impacts traffic and parking.

David Barone would have you think that it means that NO business activity can be carried out in any Deer Ridge unit. This would mean that you could not even make a business call or check your business email while you are at Deer Ridge. Really, David? You REALLY want to try to pursue this rabbit trail? Bring it on!

Next?

Those are just the cards that Joey and the board have shown so far as either direct or indirect attempts at discrimination and intimidation of resident owners in their ongoing efforts to keep GGRC in the motel business.

I, for one, will not tolerate anything of the kind. As a consequence, we are already looking at incorporating this ongoing pattern of discrimination into our current lawsuit against the individual board members. Part of our current lawsuit is to force us out of the motel business and to shut down the illegitimately formed RML If we need to also take immediate, legal steps to stop this discrimination until RML is shut down, we will.

It is way past time for Joe Thomas and the Gang to understand that Deer Ridge was NEVER intended to be a 100% rental property – and nothing in the Bylaws and Master Deed allow their “gray” attempts to circumvent the ruling documents of GGRC.

We’ve heard many owners tell us that they plan on making Deer Ridge their full time home when they retire. We are doing all we can to help make sure that you, too, won’t suffer this kind of ongoing resident owner discrimination.

The Missing Deer Ridge Water Bills – Why Not Listed On The Audit???

Robert — Fri, 05 Aug 2011 15:55:25 +0000

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

Gatlinburg Drive Through Shooting From Sugarlands Vistors Center Smoky Mountains HQ To Light 3

Robert — Sun, 19 Jun 2011 19:44:03 +0000

This is a high def time lapse drive through Gatlinburg, Tennessee from the Sugarlands Visitor Center which serves as Park headquarters for the Great Smoky Mountains National Park.

The turn at Light 3 in downtown Gatlinburg is 13.3 miles to Deer Ridge Mountain Resort.

As always, the video is definitely best seen in high def and full screen!

Consider Gatlinburg for your family vacation – lots to see and do in the Gatlinburg – Pigeon Forge Tennessee area!

GGRC And RML Payroll Checks Bouncing? If So, Red Alert To All Deer Ridge Owners!

Robert — Thu, 16 Jun 2011 16:27:58 +0000

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:

It means that the cash balances in our operating accounts are so tight that games are being played just to keep the doors open.
It means that even in the middle of June, we are having cash flow problems.
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.
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.
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.
If this happens, GGRC is at major risk which makes all owners at major risk.
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.
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.
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.
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.
I recommend ALL owners contact every member of the “board” immediately to demand that this escrow be funded.
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!)
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!

We Plan On Court Action To Force Deer Ridge Board To Immediately Escrow Property Insurance

Robert — Thu, 09 Jun 2011 20:53:17 +0000

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!

Near Deer Ridge: Dragon Tail – 318 Curves 7 Cops 11 Miles – Motorcycle Heaven – Time Lapse Hi Def – Gatlinburg

Robert — Mon, 06 Jun 2011 15:48:17 +0000

Here is a cool excursion fairly near Deer Ridge Mountain Resort. This is especially great with a convertible or a motorcycle.

Dragon Tail – 318 Curves, 7 Cops – All In 11 Miles – May 2011
Hi Def Time Lapse — The Complete Run
Deal’s Gap, NC To Foothills Parkway, TN
50 Minutes Compressed To 9 Minutes

The following is our video on YouTube. Much better seen full screen and in hi def!

Dragon Tail – 11 miles of road with 318 curves. A great drive with the top down and especially for motorcycles. One end is at Deal’s Gap Motorcycle Resort and the other end is at the entrance to the Foothills Parkway. Most of the road is in Tennessee. This was our second time on the tail….the first time was last fall with all the fall foliage. Both time with the top down on the convertible – which accounts for some of the windshield glare. Sorry about that – but was too beautiful a day to leave it up! Last time we drove the Dragon, we saw 3 wrecks – all motorcycles – so be careful. Don’t end up with bits and pieces on the Tree of Shame!

The day we drove this for the photos and movie, we counted SEVEN cops – almost all speed traps. Enjoy – but drive safely. (See if you can spot all seven!)

BTW, Movie Trivia: Where we pull off the road, you can see the dam used in the movie, The Fugitive, with Harrison Ford and Tommy Lee Jones – where Dr. Richard Kimble jumped from the dam to escape Deputy Samuel Gerard. The freight train wreck that was staged for the movie is down the road from this shot, just outside of Dillsboro, North Carolina. The train wreckage is still there.

David Barone Lied To All Deer Ridge Owners About The Lawsuit

Robert — Tue, 31 May 2011 20:53:28 +0000

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!

Deer Ridge Owners - Deer Ridge Mountain Resort - Gatlinburg, Tennessee » Deer Ridge – General

Tennessee Consumer Affairs Complaint Filed Against Joe Thomas – Attorney General Action Requested

Tennessee Real Estate Commission Complaint Filed Against Broker Joe Thomas – License 281040

Complaint: Deceptive Trade Practices, Securities Fraud And More Against Tennessee Real Estate Broker Joseph Thomas – Tennessee License 281040

Summary

Specific Complaints Against Joe Thomas

Investigator Assigned In Deer Ridge Securities Fraud Complaint

Securities Fraud Complaint Filed Against RML, Luther Parker, CPA Larry Ohm, Joe Thomas And All Board Members

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

Investor Complaints

If You Are In RML, Your Deer Ridge Condo Can Be Used Free By Joe Thomas

How I Saved One Group Of Deer Ridge Owners Between $62,000-$310,000 Or More

Another Deer Ridge Owner Dumps RML For Cobbly Nob Rentals

Deer Ridge Owners: Avoid The RML 43% Rip Off

Comments From First Deer Ridge Owner To Sign With Cobbly Nob Rentals

Breaking News: New Rental Management Company Deal For Deer Ridge Owners!

Wanted: Condo Rental Management Company In Gatlinburg Tennessee

Deer Ridge Board Violates Article XII Of Our Master Deed – Again

More Resident Owner Discrimination At Deer Ridge: Two Letters Regarding Our Handling Of Noisy, Obnoxious Tourists

Discrimination Against Resident Owners Continues At Deer Ridge Mountain Resort

The Missing Deer Ridge Water Bills – Why Not Listed On The Audit???

Gatlinburg Drive Through Shooting From Sugarlands Vistors Center Smoky Mountains HQ To Light 3

GGRC And RML Payroll Checks Bouncing? If So, Red Alert To All Deer Ridge Owners!

We Plan On Court Action To Force Deer Ridge Board To Immediately Escrow Property Insurance

Near Deer Ridge: Dragon Tail – 318 Curves 7 Cops 11 Miles – Motorcycle Heaven – Time Lapse Hi Def – Gatlinburg

David Barone Lied To All Deer Ridge Owners About The Lawsuit

Complaint: Deceptive Trade Practices, Securities Fraud And More Against Tennessee Real Estate Broker
Joseph Thomas – Tennessee License 281040

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