Deer Ridge Owners - Deer Ridge Mountain Resort - Gatlinburg, Tennessee » bad management

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.

———————————————-

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.

———————————————-

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.

————————————————————-

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.

——————————————————

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!

King of All Vegas Real Estate Scams – From Bloomberg Businessweek

Robert — Mon, 19 Dec 2011 16:50:38 +0000

From Bloomberg Businessweek – December 8, 2011

This article was recommended by one of readers. Ron said, “I thought you might find this article instructive, especially about the kneecap job! I don’t have a dog in your fight, but I’m rooting for you.” You can draw your own parallels with regard to Deer Ridge Mountain Resort!

A twisted tale of how homeowners were bilked by those they least suspected: their neighbors!

By Felix Gillette

Before the market crashed and home prices tumbled, before federal investigators showed up and hauled away the community records, before her property managers plead guilty for conspiring to rig neighborhood elections, and before her real estate lawyer allegedly tried to commit suicide by overdosing on drugs and setting fire to her home, Wanda Murray thought that buying a condominium in Las Vegas was a pretty good idea.

At first glance, Murray doesn’t look much like the type of person who would arrive in Las Vegas only to get tangled up in and eventually help unravel a complex criminal conspiracy. At 65, she stares out at the world through thick glasses. She is legally blind. Her eyes never quite seem to focus on any one thing. On a recent Friday morning, she sits at her dining room table wearing a zip-up leopard-print sweatshirt and recounts how she helped to foil a group of lawyers and contractors running amok in Sin City. “They didn’t think there would be four old ladies who wouldn’t put up with their stuff,” says Murray. “They really pissed me off.”

Before moving to Las Vegas, Murray and her husband ran a children’s dance studio in the suburbs of Minneapolis. Every so often, they would travel to Las Vegas on vacation. They loved the warm, dry weather. A poolside condo, far away from the Minnesota winters and a short drive from the Bellagio fountains, seemed like the perfect place to retire.

In 2002 they bought a two-bedroom condo for $105,250 in a new gated community, the Vistana, on the southwest outskirts of the city. The development’s architecture consisted of vaguely Spanish-style stuccoed buildings with ruddy tiled roofs. All told, there were 732 units in the subdivision, hundreds of imported palm trees, three swimming pools, and one cloudless Nevada sky.

Condominium complexes such as the Vistana were springing up across the city. Fueled by low interest rates and feverish demand, there were 32,964 closings on new condominiums and apartment conversions in Las Vegas from 2002 to 2007, according to Restrepo Consulting Group. At the same time, the building boom was creating a growing market for the contractors who fixed the construction problems, such as leaky roofs or faulty electrical outlets, that emerged at the hastily built developments.

In Las Vegas these large-scale repair jobs often involved lawsuits. There were a handful of lawyers in town who specialized in such suits, which pitted the collective owners of a gated community—in the form of nonprofit neighborhood corporations known as homeowner associations—against their developers.

As Las Vegas’s housing supply exploded, so did the competition among lawyers and contractors to represent new homeowner associations in so-called construction-defect lawsuits. It was in this environment, according to plea agreements recently unsealed in an ongoing FBI investigation, that a shadowy outfit cooked up a brazen scheme.

When a new development was nearing completion, the group would buy a couple of units in the community and then transfer partial ownership of the condos to individuals secretly on its payroll, according to court documents. While pretending to be residents of the communities, these “straw buyers” would run for leadership positions on boards of the new homeowner associations. By paying off community managers, hiring private investigators to find dirt on legitimate candidates, and rigging elections, the documents allege, the straw buyers were able to infiltrate boards at several new developments in Las Vegas from 2003 to 2008. Once in control of the boards, the straw buyers would then use their governing positions to steer millions of dollars in construction and legal fees back to their co-conspirators. Targets included the Chateau Nouveau, Chateau Versailles, Park Avenue, Palmilla Townhomes, Jasmine, Pebble Creek, Mission Ridge, Mission Pointe, Horizons at Seven Hills, Sunset Cliffs, and the Vistana.

An FBI spokesperson says that for the time being the agency is not commenting on the case. But already the investigation has provided a window into yet another layer of corruption that took place amid the national housing boom and its subsequent hangover—a period that saw a surge in real estate malfeasance of every imaginable variety, including false loan applications, predatory lending schemes, illegal property flipping, equity skimming, and “air loans” (loans for property that doesn’t exist). According to FBI data, the number of suspicious activity reports related to real estate fraud filed by financial institutions jumped to 67,190 in 2009 from 6,936 in 2003.

To this history, Las Vegas has managed to add another florid chapter. So far, prosecutors have reached plea agreements with 10 co-conspirators. Many more are expected to appear in front of judges in the coming months. Says Murray: “We’re all going to be sitting in the front row, watching.”

Not long after moving into the Vistana in 2002, Murray got a letter in the mail from Nancy Quon, a partner at the local law firm Quon Bruce Christensen. Parts of the development hadn’t even been painted yet, and already Quon was soliciting homeowners for a possible construction defect suit.

Among her drab fellow attorneys, clerks, and paralegals, Quon stood out. She had long dark hair, hazel eyes, and pale skin. She drove a red Lexus convertible. During her 10-year marriage to an insurance attorney, she had two daughters and worked as a legal secretary. After a divorce in 1988 she went back to school and earned a law degree. One of her best friends was a Las Vegas judge. At night they did Pilates together.

For years, Quon co-hosted a TV show on Channel 2, Homeowner Talk, in which she gave viewers advice about the city’s razzle-dazzle real estate market. A wine connoisseur, Quon sometimes gave bottles she had collected to charity.

After moving into the Vistana, Murray volunteered to fill a temporary vacancy on the community’s fledgling homeowner association board. The five-member board would be responsible for governing the day-to-day operations of the development. At the time, she says, there wasn’t much competition over the unpaid positions, which were low on perks and high on potential hassles.

In those early days, according to three longtime residents, construction problems at the Vistana were numerous but relatively minor. Some of the units had leaky roofs and windows. There were civil engineering issues involving the sidewalks. The internal fire and security systems didn’t work. Insulation, soundproofing, and plumbing needed fixing in some units.

In July 2003 the board members voted to retain the law firm Angius & Terry—rather than Nancy Quon’s firm—to represent them in a construction defect suit against their developer, Rhodes Homes. According to Murray, Quon told the Vistana residents, “I’ll be back.” Through her public-relations representative, Quon declined an interview request.

In the summer of 2004, Angius & Terry initiated the suit against Rhodes Homes. At the time, says Murray, the potential for a speedy settlement seemed promising. Rhodes Homes has since declared bankruptcy, and a representative for developer James Rhodes declined an interview request.

Murray first sensed trouble the following October, when the Vistana held its annual board election. The results were surprising. Two newcomers, an ex-cop and a union foreman, won spots on the board. It was odd, if only because nobody recalled seeing much of either man around the neighborhood. Shortly after, the two appointed another stranger to a vacant position.

In Nevada, state law requires that to serve on a homeowner association board, an individual must own property in the development. On a hunch, Murray and a group of her neighbors pulled some property records. As it turned out, the newest appointee had recently purchased a mere 0.5 percent of a single condo at the Vistana. Digging around a little bit, the Vistana residents claim they found records that the new board members were employees of Silver Lining Construction.

Murray wasn’t sure why somebody who didn’t actually live in a condo community would want to serve on its unpaid board. It seemed suspicious. In the weeks to come, Murray, along with three other like-minded ladies at the Vistana, formed a kind of amateur detective agency. They searched state property records. They dug deep into Google (GOOG) search results. They even did the occasional stakeout. The more they investigated, the more arrows they found pointing to Silver Lining Construction.

The change at the Vistana came fast that winter. In January 2005 the three new board members on the five-person board canceled a mediation session with Rhodes Homes, fired their attorneys from Angius & Terry, and replaced them with a firm called Spilotro & Kulla. John Spilotro was well known in Vegas not only because of his success as a criminal lawyer but also because of his famous uncle, Anthony “The Ant” Spilotro. During the ’70s, Anthony Spilotro moved from Chicago to Vegas allegedly to help run various mob-related businesses, including the Stardust Resort & Casino. In the years to come he ran roughshod over the city, forming a notorious burglary outfit called The Hole in the Wall Gang and touching off a spasm of street violence that drew national attention, and ultimately, a federal crackdown on organized crime in Vegas.

In 1986 police found Anthony Spilotro’s body several feet under an Indiana cornfield. They suspected he’d been buried alive. In the 1995 Martin Scorsese-directed movie Casino, Joe Pesci plays a character based on Spilotro. A quarter-century later, the surname Spilotro still gives some people in Vegas the heebie-jeebies. “When I heard that name,” recalls Murray, “I went, ‘Oh, you’ve got to be kidding me.’ ” (Spilotro did not respond to a request for comment. He has not been accused of any wrongdoing.)

That January the new members of the Vistana board hired a property management group, Platinum Community Services, run by Lisa Kim. Her husband, Vistana residents would later discover, was Ben Kim, a member of the Las Vegas Metropolitan Police Dept.’s fraud unit. On the side, Ben Kim owned and operated the Courthouse Cafe, a cafeteria inside the city’s regional justice center. He had two partners in the business, lawyer David Amesbury and Leon Benzer, head of Silver Lining Construction.

Murray and her posse of neighborhood sleuths had seen enough. They went to the Las Vegas police, who referred them to the Nevada Real Estate Division, a governmental agency charged, in part, with investigating real estate fraud. The Vistana residents filed a formal complaint and in February 2005, hoping to reclaim control of their board, conducted a recall election. When the votes were counted, their efforts had failed. Suspecting the ballots had been tampered with, Murray organized a second recall election in which the votes were tallied at the neighborhood pool rather than at the association office. This time all the board members connected to Silver Lining Construction lost. Afterward, however, they refused to step down.

In response, the original members of the Vistana board helped to file a civil suit aimed at removing the suspected interlopers. According to Murray, when they showed up in court for the first hearing, they were shocked to see a robust team of eight or so lawyers to defend the “straw buyers.” She couldn’t believe so many billable hours were being racked up to protect a handful of unpaid volunteer positions.

In the end, the jumbo team of lawyers triumphed, the homeowners lost the suit, and the Silver Lining-connected board members carried on.

In the meantime, Spilotro & Kulla hired Nancy Quon, the convertible-driving TV lawyer, to restart the Vistana’s construction defect suit.

In March 2005, on the advice of Quon, the Vistana homeowner association took out a $1 million loan to pay for some emergency repairs while they waited for the lawsuit to move forward. The board hired Benzer of Silver Lining Construction to make the repairs.

All across Nevada, people knew that if you needed to win a tricky election you might want to call a political operative named Steven Wark. In 1988 as a state campaign manager, Wark helped Pat Robertson win Nevada’s Republican Presidential caucus. In 2004, according to his interviews with several news organizations at the time, Wark raised money to help get Ralph Nader on the ballot in Nevada as a way to siphon off votes from Democratic hopeful John Kerry; George W. Bush went on to narrowly win the state. Over the years, Wark had also served as chairman of the Nevada Republican Party, hosted a fundraising event for Rudolph Giuliani, and managed several successful campaigns for Mike Montandon, the former mayor of North Las Vegas.

In spring 2005, having proven his value in Presidential and mayoral campaigns, Wark focused on a smaller political battleground. He joined the homeowner association board at the Vistana. Like the members of the board who appointed Wark to the vacant position, he did not live in the community but had recently purchased a 1 percent share of one Vistana condo.

It didn’t take long to discover that Wark, too, had a connection to Benzer. According to records from the Nevada Secretary of State, Wark and Benzer co-owned a business called Allied Environmental Solutions. Through his lawyer, Wark declined to comment.

By the time Wark arrived on the scene in 2005, the community meetings were growing increasingly heated. As a result, Wark and his four fellow allies on the board began arriving at meetings inside the cabana near the front gates of the Vistana, which everybody called the clubhouse, accompanied by entourages of burly men.

According to Murray, residents who asked the board too many pointed questions risked getting hit with fines on trumped-up charges of violating association rules. Residents recall that when confronted with the intimidation tactics, Wark would habitually drop the names of his powerful allies in Nevada politics. “They acted like they were bulletproof,” says Vistana resident Bruce Wallace.

In the fall of 2007 the Vistana board announced it had reached a $19.1 million settlement with Rhodes Homes. Of that—according to a recent accounting by current Vistana board members—about $11 million in legal fees and reimbursement expenses went to two firms: Spilotro & Kulla and Quon Bruce Christensen. That left $8.1 million for repairs.

One night that September, Amesbury, a lawyer for Silver Lining Construction, stood up at a meeting in the clubhouse. Amesbury, who owned a small firm in Las Vegas, specialized in criminal law. He was also a co-owner, along with Benzer and Kim, of the Courthouse Cafe. That night, Amesbury told the Vistana residents that in 2005 the board had signed a “right-of-first-refusal” contract with Silver Lining Construction. The contract essentially guaranteed Benzer’s company 100 percent of the construction remediation money from the settlement. Moving forward, he said, there would be no competitive bids with other contractors. Amesbury did not respond to a request for an interview sent to his attorney.

Over a roughly six-month period, from the fall of 2007 through the spring of 2008, various teams of subcontractors working for Silver Lining Construction came and went from the Vistana—painting buildings, replacing windows, and patching roofs. By May 2008, all but $450,000 of the $8.1 million was gone.

Shortly after, as the money ran out, the board members connected to Silver Lining Construction stopped showing up at meetings. “They just disappeared,” says current board member Wallace.

On Sept. 24, 2008, the day Murray had been anticipating finally arrived. That morning, and in the days that followed, agents from the FBI served search warrants and confiscated records at several businesses, including the offices of Silver Lining Construction, Platinum Community Services, and Quon Bruce Christensen.

Murray learned about the raids from a report on TV by Channel 8 investigative reporter George Knapp. “It blew me away,” she says. “I was so relieved that it was finally happening.”

While the FBI didn’t go into much detail about the investigation, it was clear from media reports that the scope extended far beyond the Vistana. “We had no idea how far-reaching it was,” says Murray. There were more surprises ahead.

On the morning of Oct. 28, 2010, Daniel Webb, a corrections officer with the Las Vegas Metropolitan Police Dept., was awakened before dawn by a phone call. It was his younger brother, William Ronald Webb (who goes by “Ron”), calling from San Diego. He wanted to know if Daniel could get up, drive across the city, and check in on Ron’s girlfriend, a well-to-do attorney named Nancy Quon. Ron was worried something had happened to her. She hadn’t been answering her phone all night.

Webb later testified to a grand jury that at first he was reluctant to indulge his brother, who sounded drunk. There was a history of mental illness in their family, and Ron had been acting paranoid recently, particularly about the FBI’s investigation into his girlfriend’s law firm.

Eventually, Webb gave in and drove over to Quon’s two-story house in a tony gated community on the west side of town. He retrieved the spare key from under a rock and let himself into the house. Among other amenities it had a wine cellar, a fire pit, a swimming pool, and a Jacuzzi. As soon as he stepped inside, he saw smoke. The house was on fire. He ran outside and called 911.

With an ambulance on the way, Webb rushed back into the house to look for Quon. A few minutes later, in the TV room off the kitchen, he reached into a pile of blankets heaped on a puffy couch and felt a leg. It was Quon. Her eyes were open, and her face was gray. He picked her up, carried her out to the front yard, and began CPR. On the second cycle, she started to cough.

The paramedics arrived shortly. They checked Quon and found she was breathing shallowly, had pinpoint-size pupils, a strong pulse, and was unresponsive. All were signs, one paramedic would later testify, of a narcotic overdose. They treated her with a “narcotic antagonist” drug called Narcan.

A few hours later, Daniel Webb went to the intensive care unit where Quon was being treated. He later testified that Quon was thankful and tried to explain to him what had happened. She allegedly told him that she took some sleeping pills, climbed in the Jacuzzi, and drank a can of Four Loko—a highly caffeinated, fruity malt beverage typically more popular with rebellious teenagers than wine connoisseurs such as Quon.

Afterward, she told Webb, she felt dizzy. She went upstairs, lit some candles, and drew a bath. It was all hazy, but at some point she must have gone downstairs to lie down in the TV room, she allegedly told Webb. Perhaps her bathrobe had accidentally knocked over a candle.

In August 2011, 10 months after the fire, a Clark County grand jury indicted Quon on multiple felony charges, including first-degree arson and insurance fraud.

According to prosecutors, Quon, 51, had taken some sleeping pills, drank a Four Loko, and set her house on fire in an attempt to kill herself. She wanted to take her life, they argued, to avoid the embarrassment of being arrested in the FBI investigation. They further argued that she was trying to do so in a way that would pay out a hefty insurance policy to her two adult daughters, whom she supported financially.

The prosecutor’s case included extensive testimony from Robert Justice, a 45-year-old mechanic and occasional drinking buddy of Quon’s boyfriend, Ron Webb. Justice told the grand jury that weeks before the fire, Webb had tried to hire him to buy the couple a lethal amount of the so-called date-rape drug GHB. According to Justice, Webb wanted the GHB because he thought it wouldn’t turn up in an autopsy. Justice told Webb there were better ways to kill yourself without arousing suspicion. He suggested eating some sleeping pills and then downing a couple cans of Four Loko. Ron Webb is currently in jail, facing multiple charges including conspiracy to commit murder. He has pled not guilty to all charges.

The police arrested Quon in Henderson, Nev., on the afternoon of Aug. 17. At the time of her arrest, she was carrying her passport and $7,000 in cash.

In subsequent court filings, her lawyers have denied that Quon set the fire and have rejected the prosecutor’s assertion that she wanted to kill herself for insurance money and to escape arrest. Her attorney, Thomas Pitaro, has told reporters the prosecutor’s case is based on an “Alice in Wonderland” theory.

Quon is free on $50,000 bail.

These days, life is much quieter at the Vistana clubhouse. Amid the seasonal decorations, there are signs the residents are happily moving on from their ordeal, even as they savor the prospect of watching their former attorneys, property managers, and board members shuffle off to jail.

On one side of the clubhouse, a poster marked “Before and After” leans against the wall. The “before” section features photos of the Vistana during the years when the straw buyers were managing the community. The images show untrimmed palm trees, broken barbecue grills, cracked pool decks, patches of dead grass, dented carports, and a busted front gate. The “after” photos show the gradual, physical recovery of the Vistana in the time since homeowners who actually live in the community regained control of the board.

On bulletin boards a few feet away, dozens of newspaper clippings from the Las Vegas Sun and Las Vegas Review-Journal chronicle the expanding number of individuals who have pled guilty in the FBI investigation. The display is labeled “Wall of Shame.”

The condominium schadenfreude hit a new high on Aug. 30 when Wark, the former chairman of the Nevada Republican Party, appeared before a federal judge and pled guilty to one count of conspiracy to commit mail and wire fraud. The maximum sentence is 30 years in prison. He is awaiting sentencing.

In court documents filed as part of the plea agreement, Wark admits to helping rig elections at the Vistana. Like most condominium complexes built in Las Vegas during the boom, the Vistana had a high percentage of owners who were investors living out of state. According to the court documents, Wark and his crew won the elections, in part, by targeting out-of-state owners unlikely to participate in board elections. They would fill out a ballot on the owner’s behalf without the individual’s knowledge, transport the documents to the owner’s home state, then mail the ballot back to Nevada. The ballots would arrive bearing the correct postmarks, lending the votes credibility.

The fake absentee ballots were used to tilt the campaigns in favor of the straw buyers. When homeowners became suspicious, the court documents reveal, the conspirators would bring in supposedly independent “special election masters” to preside over the vote counting. According to several plea agreements, the election overseers were paid off, too.

Over the past three months, nine more guilty pleas have followed. So far, the ranks of the admitted conspirators have included Deborah Genato of Platinum Community Services, which worked as property manager for the Vistana; Daniel Solomon, a straw purchaser who served on the Vistana board; and Amesbury, Kim and Benzer’s former partner in the Courthouse Cafe. Neither Ben nor Lisa Kim have been charged with a crime.

On the morning of Nov. 16, a few weeks after reaching a plea agreement with prosecutors, Amesbury was found on the streets of a Las Vegas suburb severely beaten with multiple injuries, including two broken kneecaps. According to a story by Jeff German in the Las Vegas Review-Journal, police have so far found no evidence linking the beating to the FBI investigation.

On a recent Thursday evening at the clubhouse, the Vistana board members met with their lawyer, Richard Haskin, to discuss the the community’s civil suit alleging that the straw buyers, in cahoots with Benzer, vastly overpaid for Silver Lining’s services. Haskin is working on an amended civil RICO (Racketeer Influenced and Corrupt Organizations Act) complaint that will add Quon as a defendant and seek upwards of $8 million in damages. “I was privy to the repairs,” says Vistana resident Tony Kneip, himself a retired general contractor. “They were outrageously high.”

Lawyers for Silver Lining Construction continue to allege the homeowner association owes Benzer’s company $750,000. “It’s a classic breach-of-contract, failure-to-pay case,” says Benzer’s attorney, Sigal Chattah.

Whether the Vistana can retrieve any money remains to be seen. The criminal fire investigation revealed that although her law firm has shut down, Quon still possesses significant assets. (No one else at Quon Bruce Christensen has been indicted.) During a court hearing in August, prosecutors told the judge that in 2009, Quon made transfers of $2.7 million and $2.9 million into an offshore bank account. Last year she bought her daughter an apartment in New York City, paying $750,000 in cash.

“The bottom line for the homeowners is we’d like to see a lot of pain and suffering on their end,” says board member Larry Fitch.

In the meantime, thousands of people who bought condos during the boom are still coping with their own financial hardship. Two-bedroom, two-bath condos at the Vistana were going for $200,000 in 2007. In November a 929-square-foot two-bedroom, two-bath unit sold for $59,000.

Murray and her husband moved out of the Vistana in 2008 and now live in a nearby development. “I couldn’t take the pressure anymore,” says Murray. “Everything we did, they came after us. I’d had enough.”

Eventually, she and her husband let their dream home slip into foreclosure. “The reputation was out there, and nobody wanted to live there,” says Murray. “So we let it go. … I took a big hit.”

These days, Murray stays as far away from homeowner associations as possible. She is, however, looking forward to seeing where the FBI’s investigation ultimately leads. Many mysteries remain.

To this day, Murray has never laid eyes on Leon Benzer. No matter how many times they typed his name into Google or drew up elaborate maps linking him to members of their homeowner association, the residents of Vistana never seemed to get a glance of Benzer in person. He always kept his distance. (Through his lawyer, Benzer declined an interview request.)

Benzer’s primary business, Silver Lining Construction, has likewise kept a low profile. In 1998 a rare article about the company in the Review-Journal reported that Silver Lining Construction had been hired to renovate the Pioneer Club, a historic building in downtown Las Vegas that had served as everything from a restaurant to a casino to a brothel. Benzer’s job was to turn the space into a gift shop. “A lot of contractors are afraid of this kind of work because of the hidden nightmares you can run into,” he told the paper. “We like the challenges. We spent six months in preplanning, and our philosophy has always been Murphy’s Law—anything that possibly could go wrong will.”

Over the years a lot seemed to go right for Benzer. He formed a charity called the Benzer Autism Foundation; a music production company, Benzermusic.com; an investment group, Silver Lining Investment; and a boutique liquor brand, Benzila Tequila, that was reportedly made from agave plants that grew on Benzer’s ranch in Mexico.

Although he has not been charged with any crime, Benzer’s businesses are now all shuttered. “Basically, between the economy and the federal investigation, there’s not much left,” says Chattah, his attorney.

Benzer, who is in his mid-40s, continues to live in Las Vegas, she says, and has a source of income. When asked about the rumor that Benzer now works as a local cab driver, Chattah responds, “He might be.”

In 2008, before the FBI raided his offices, Benzer created a channel on YouTube where he posted clips of celebrities giving red carpet shout-outs to Benzila Tequila and his foundation. You can still watch the likes of Tom Jones, Anthony Michael Hall, and Patrick Swayze tossing out paeans of support for Benzer and his charity work. “It’s God’s plan,” says ESPN’s Stephen A. Smith in one video. “If you want to make it to heaven one day, this is a good way to start.”

Gillette is a staff writer for Bloomberg Businessweek in New York.

Deer Ridge Lawsuit: Judge Orders GGRC To Mediation

Robert — Sat, 10 Dec 2011 21:19:06 +0000

Mediation

During the court hearing that was held on December 9, 2011, Judge Rex Ogle ruled that the parties would be required to participate in court ordered mediation.

Unfortunately, this mediation, while court ordered, is not binding. If history is any indicator, the “board” will not participate in good faith which will mean that the mediation will be a complete waste of time and money.

My strong preference would be to turn this over to binding arbitration so these matters could be cost-effectively finalized. But the “board” has no interest in this – and the judge cannot order this. So, we are stuck with probable meaningless mediation.

While we had tried to short circuit this whole process with our motions for summary judgement, the judge made it clear during the hearing that he was not going to rule on any of the issues – and he seemed relieved to find out that we had requested a jury trial. So be it.

Jury Trial

We will do what we can to expedite the mediation so that we can quickly get it out of the way – and move to set a trial date as quickly as we can - once our interrogatories and depositions of Joe Thomas, board members and current and past employees are completed.

We are actually looking forward to showing 12 jurors our proof of the multiple violations by this “board.”

We can’t wait to show how the “board” has squandered 40% of every year’s HOA fees for 16.5 years on RML’s negative cash flow.

We can’t wait to show the jury how the “board” has wasted an average of $116,000 a year, EVERY YEAR, on feeding the negative cash flow of an illegitimately formed RML for a total of nearly $2 million.

We believe that a jury of our peers will see the ongoing bias and discrimination against any owner who does not use RML.

We believe that the jury will see from the evidence that Joe Thomas and the “board” have slandered and libeled me for years, including portraying me in a “false light.”

We believe that the jury will see the self serving benefits that Joe Thomas, board members and other “insiders” have enjoyed at the expense of other owners, including the “trade out” use of units that were not owned by these insiders.

We believe that the jury will see that the strained interpretations of the Master Deed by Joey and the Gang are transparent abuses of power that ignored the requirements of our governing documents.

We believe that the jury will see the ridiculous requirements for reviewing the books and records for what they are: Intentional, multiple road blocks that are fully intended to actually keep the GGRC books and records out of the hands of owners – all an intentional and flagrant violation of the Tennessee Horizontal Property Act.

We believe that the jury will empathize and share our anger at how this “board” has arbitrarily and capriciously run Deer Ridge as their own private fiefdom for years.

We genuinely believe that 12 jurors who are all our peers will rule in our favor on all counts – and will require ALL the changes we have sought at Deer Ridge Mountain Resort – along with awarding us damages, interest and a return of all of our overcharged HOA fees and assessments.

For these, and other reasons, we very much look forward to this jury trial.

New Derivative Action Lawsuit

In addition to all of the above, we are currently preparing a new derivative action lawsuit against Joe Thomas and all individual board members.

This lawsuit will be brought by at least seven current Deer Ridge owners.

These owners will sue the Gang of Six on behalf of GGRC as a way of forcing this renegade “board” to shut down the money losing RML and force them to abide by the multitude of Master Deed and Bylaws that the “board” continues to violate. More about this derivative action lawsuit in the near future.

They Started It – We Will Finish It

As one owner stated in a posting here on this blog, “The board started this. They sued Robert first. And they are wasting all of our money for their own agenda and vendetta.”

I obviously agree – but we will do what we need to do to finish this – and finish it right.

Stay tuned!

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.

Here Is $2 Million Worth Of Proof That Luther Parker Lied About RML At Deer Ridge Mountain Resort

Robert — Tue, 29 Nov 2011 19:06:15 +0000

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

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

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

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

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

The Big Lie: RML Makes Our HOA Money

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

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

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

Really, Luther?

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

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

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

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

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

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

A detailed 16.5 year history of the ACTUAL financial results for RML. (It only goes through June 30, 2011 since we have yet to get the financial results for the last half of calendar year 2011.)

The basis for EVERY number of my analysis only comes from THREE sources which are all included in the Real RML Facts Packet for your scrutiny.

One of the three sources is 10 years of AUDITED financial results for RML covering the years 2001 through 2010. All of these audits were completed by GGRC’s auditors, Hickman And Company, P.C., Certified Public Accountants.

The second source of data is from a Joe Thomas presentation at the 2005 Annual Owner’s Meeting. As we all know, Joe Thomas is the general manager around here of both GGRC and RML…oh, and the other conflict of interest position: principal broker of Ridge Resort Realty. You will see in your Packet Joe’s presentation on the performance of RML includes three sheets showing the income, expenses and net income and loss for all years from 1995 through 2004. The packet also contains the underlying worksheet prepared by Joe Thomas that was used for the fancy PowerPoint presentation. (Please ignore Joe’s headline on the PowerPoint presentation that says, “Rental Company Nine-Year Performance.” As everyone else knows, besides Joe Thomas, Years 1995 through 2004 is TEN YEARS of performance.) In spite of Joey’s inability to do simple four function arithmetic for his headline, we will take at face value that all the number in the spreadsheets were done correctly by someone else. Now, remember, all those numbers are Joe Thomas’ numbers – not mine. (I did not have the audit reports before 2001. For some reason, Joey and the board are unwilling to give me copies – but I will assume that Joe Thomas was probably not lying to owners when he prepared his 2005 Owner’s Meeting report on RML’s performance…and that the numbers for those earlier years were based on the audit numbers.)

The third, and last source of data for The Real RML Facts Packet, is from the August 2011 “board” meeting. The board minutes, as prepared by our own David Barone, quotes Larry Ohm, CPA, as stating that the combined RML loss for the first six months of 2011 equaled $58,077.57. Again, these are THEIR numbers – not mine.

All of these documents are what was handed out at annual meetings or mailed to Deer Ridge owners – and does not include any additional documents or insights that I might have been gained from the document production resulting from our current litigation against Luther Parker, Joe Thomas and the rest of the “board.”

Your Real RML Facts Packet contains copies of ALL of these documents for your review. Don’t take my word for it – verify that every number on my summary spreadsheet is accurate and taken from the three source documents.

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

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

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

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

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

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

PLEASE CLICK IMAGE FOR THE BIG PICTURE

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

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

Even using the straight numbers from the three sources show an aggregate net loss over 16.5 years equal to $410,840. This, by itself, shows Luther Parker is lying to you.

If the $58,078 that was lost during the first half of 2011 is extrapolated, this means that Joey and the Gang will lose $116,156 of OUR money for all of 2011.

If the above 2011 extrapolation is correct, then the above $410,840 loss becomes $468,918 for the 17 years.

Luther, in case you don’t understand, if RML loses money, there are only two sources for it to get more: a bank loan and from the individual owners of Deer Ridge condos. Period. RML has a bank line of credit of about $40,000 – but it is guaranteed by OUR HOA monthly assessments. So, again, all those losses really have to get covered just from one place: out of the pockets of ALL owners – whether we use RML or not.

Luther, do you realize that RML has lost $108,047 just during the past 18 months!!!

Are you still with me, Luther? I am trying to put this in baby talk so you can follow the logic. Now, remember, Luther, all of this is from YOUR numbers!

The above numbers already prove that Luther Parker was LYING with his statements in his letter from two weeks ago. Period.

But wait – there’s more!

If you look closely at the audits and the nine, oops, ten year RML performance compiled by Joe Thomas, there are a couple of suspect line items.

One is “GGRC Assessments” that shows as income for RML. What was the source of this income? Well, the wallets of ALL Deer Ridge owners, of course! In other words, RML assessed our HOA, GGRC, in the aggregate amount of $200, 556 during that 16.5 year period. So, that increases the real loss from RML by another $200,556.

But wait – there’s more!

The other line item is “GGRC Charged – Management Fees.” This is not for managing the condos of owners. They currently charge owners a 50% management fee for that. This ”GGRC Charged – Management Fees” is what they are charging to “manage” GGRC! If you remember, this is something we can outsource to a professional HOA management company for $1,680 a month – and that includes all the accounting! This approach would have added up to less than $333,000 over 16.5 years. Click Fire Joe Thomas for the details of this bid.

Instead, Joey and the boys, chose to charge OUR HOA a whopping $1,305,538 for them to oversee and manage our tiny 84 unit complex. Again, this has nothing to do with the needs of RML and it’s own management needs – this was just another way for Joey and the Gang to gouge ALL owners to help support their motel business.

So, just like “GGRC Assessments”, the “GGRC Charged – Management Fees” shows as “income” into RML. And, just like with the ”GGRC Assessments”, every cent of it comes out of the pockets of ALL owners at Deer Ridge!

Still, with me Luther? You haven’t dozed off or had another one of those “senior moments”, have you?

The important part for you to finally get is that the “income” from ”GGRC Assessments” and “GGRC Charged – Management Fees” are bogus income items. They are not monies earned from outside tourists or cabin owners. Every cent of it has come out of the pockets of OWNERS at Deer Ridge!

What this means is that, over the past 16.5 years, all owners have lost $410,840 as a net loss, PLUS the “GGRC Charged – Management Fees” that cost ALL of us $1,304,538 PLUS the ”GGRC Assessments” that cost ALL of us another $200,556.

This equals a GRAND TOTAL LOSS CAUSED DIRECTLY BY RML = $1,915,934. And counting!

Again, Luther, all of this is from YOUR numbers. It also does not include a lot of “hidden” costs that you have wrongly misrepresented and attributed to GGRC as operating costs when, in fact, they were really RML related operating costs. These hidden amounts are massive – but have been left off this analysis until we can finally see the really books and records from ALL accounts. But, I bet you know the real truth, don’t you, Luther? I wouldn’t be surprised when all those misallocations of expenses are taken into account, that our RML motel business has cost all GGRC owners more than $3 MILLION. Is that about right, Luther?

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

Whew.

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

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

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

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

Do you understand, now?

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

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

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

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

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

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

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

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

Prove it, Luther.

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

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

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

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

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

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

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

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

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

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

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

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!

Presentment Of Demands To Individual Board Members On Behalf Of GGRC HOA

Robert — Thu, 10 Nov 2011 21:08:55 +0000

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

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

Date: November 10, 2011

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

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

The above points are more fully described below.

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

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

Immediately Shut Down RML And Fire Joe Thomas

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cut ALL HOA Fees In Half

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

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

Insurance Escrow

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

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

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

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

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

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

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

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

Discrimination Against Resident Owners

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

These include:

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

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

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

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

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

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

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

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

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

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

Updated Derivative Action Lawsuit

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

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

You Have Been Warned

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

On behalf of GGRC,

Robert Goodman, Owner
———————————–

Legalese On

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

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

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

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

Please note the obvious:

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

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

Legalese – And Powered Wig – Off

Deer Ridge Court Date Set For My Motion For Partial Summary Judgment Against HOA, Board Of Directors

Robert — Thu, 10 Nov 2011 16:48:24 +0000

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

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

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

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

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

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

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

Why A Partial Summary Judgment?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Repayment of $200,000 By Board Members As Individuals

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

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

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

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

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

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

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

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

We Live In Interesting Times!

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

Another Deer Ridge Owner Chooses Cobbly Nob Rentals Over RML

Robert — Sun, 23 Oct 2011 16:06:35 +0000

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

Six Down / 57 To Go?

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

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

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

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

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

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

Dear Board: Get A Clue.

Pay attention, “board.”

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

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

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

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

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

Neil’s Comment On Signing Up With Cobbly Nob Rentals

Here are Neil’s comments from last night:

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

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

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

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

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

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

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

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

Neil Blair C-208

Thanks, Neil!

Save Yourself 43%

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

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!

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!

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

Good Luck Trying To Sell Your Condo At Deer Ridge Mountain Resort

Robert — Sat, 20 Aug 2011 14:12:45 +0000

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

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

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

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

Selling A Deer Ridge Condo – Reality Check

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

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

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

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

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

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

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

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

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

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

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

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

Another Disadvantage: Selling Through Joe Thomas and Ridge Resort Realty

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Stay Tuned For The Four Step Proxy

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

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

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

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

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

Their HOA Fees:

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

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

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

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

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

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

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

Six Additional Deer Ridge Owners Join $3 Million Lawsuit Against HOA Board Members

Robert — Mon, 08 Aug 2011 16:28:55 +0000

::: FLASH NEWS :::

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

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

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

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

The David Barone Lie

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

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

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

The Derivative Action Against All Board Members

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

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

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

The Magnificent Seven

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

Deer Ridge Owners - Deer Ridge Mountain Resort - Gatlinburg, Tennessee » bad management

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

King of All Vegas Real Estate Scams – From Bloomberg Businessweek

Deer Ridge Lawsuit: Judge Orders GGRC To Mediation

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

Here Is $2 Million Worth Of Proof That Luther Parker Lied About RML At Deer Ridge Mountain Resort

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

Presentment Of Demands To Individual Board Members On Behalf Of GGRC HOA

Deer Ridge Court Date Set For My Motion For Partial Summary Judgment Against HOA, Board Of Directors

Another Deer Ridge Owner Chooses Cobbly Nob Rentals Over RML

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

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

Good Luck Trying To Sell Your Condo At Deer Ridge Mountain Resort

Six Additional Deer Ridge Owners Join $3 Million Lawsuit Against HOA Board Members

Discrimination Against Resident Owners Continues At Deer Ridge Mountain Resort

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