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.

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.

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:

1. Tennessee Securities Division for securities fraud and other securities law violations, etc.  Please click Securities Fraud for details.
2. Tennessee Real Estate Commission (TREC) for multiple violations of the Tennessee Real Estate Broker Act, etc.  Please click TREC for details.
3. Tennessee Consumer Affairs Division for deceptive trade practices, misrepresentations, etc.
4. 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!

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

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 agrees with me.

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.

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, under the direction of Joe Thomas, is not solely focused on providing motel services to Deer Ridge owners – but is, instead, a motel service that aggressively pursues cabins and other rental properties which are completely unaffiliated with Deer Ridge. However, in spite of RML expending up to $100,000 or more per year on advertising and marketing, this high risk small company has not been successful in competing in the motel business marketplace and has only signed up about a half dozen additional rental properties. As a consequence, based on corporate audits, RML has lost over $2 million during the past 16.5 years. As the following will show, this $2 million loss was funded by mandatory, illegitimate capital calls that were required to be paid by the real estate owners of all 84 units at Deer Ridge.

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

As an MBA, and the founder and past owner of Goodman Securities, Inc., a NASD Broker/Dealer company which was also a member of SIPC, I believe that I have the necessary credentials and background to recognize that RML, real estate broker Joe Thomas and the board of directors of RML have committed, and continue to commit, what I believe are major state and federal securities law violations including securities fraud exceeding $2 million.

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

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

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

Specific Complaints Against Joe Thomas

My complaints include the following allegations:

1. Joe Thomas, General Manager of both GGRC and RML, and the board continue to perpetrate a fraud on all owners by fraudulently claiming, as recently as 60 days ago, that RML has continually made money for the owners. Please see Exhibit B, Luther Parker Letter, dated November 15, 2011 and mailed to all Deer Ridge owners on or about December 1, 2011.

2. In spite of these fraudulent statements and willful misrepresentations, CPA audits commissioned by the corporation clearly show that RML has lost nearly $2 million of owner’s money during the past 16.5 years. This loss of $1,915,934 is calculated based on CPA audits completed by Hickman and Company, CPAs under the direction of Luther Parker, President, Larry Ohm, CPA and Treasurer – and Joe Thomas, General Manager. Please see Exhibit C for copies of all audits and a comprehensive analysis of the audited numbers.

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

4. This annual average RML loss of $116,117 has been funded directly out of the pockets of all 84 Deer Ridge owners under the guise of increased, mandatory monthly HOA fees charged to all condo owners at Deer Ridge who happen to also be the stock holders of RML. Instead of the required capital for the operating deficit being funded by an optional capital call to all stockholders, the needed funds are fraudulently included in the monthly HOA fees that are required of all owners. These hidden equity payments continue to equal more than 40% of the contrived monthly HOA fee. Please see Exhibit D for a list of all current owners.

5. This annual average RML loss of $116,117 equals 40% of the $290,540 annual HOA fees collected from all owners of the 84 units at Deer Ridge. As a consequence, nearly half of all HOA fees paid in by the mostly unaccredited and unsophisticated owners are being squandered by this illegitimate corporation’s need for monthly capital infusions.

6. I contend that the actual RML losses are, in fact, much higher than the annual average RML loss of $116,117 shown on the audits. This is because the audits indicate various expense items that should rightfully be associated with and cost accounted with the motel operation of RML are, instead, spurious costs that are listed as expenses of GGRC. I believe that this is being done in order to intentionally deceive owners as to the actual losses that accrue each year from RML’s unprofitable motel operation.

7. RML was illegitimately formed by the board of directors of GGRC in 1987 without a vote of owners – and without providing owners any kind of disclosure or offering document that detailed the risks, management compensation, etc. of the unregistered security. In spite of it not being an approved Common Expense of GGRC, funding for this new corporation, RML, was pulled from the general operating account of GGRC, a non-profit corporation, which in turn was, and is, fully funded by the 84 owners of the condos at Deer Ridge Mountain Resort. As such, RML has offered and continues to offer, unregistered securities to Tennessee residents along with residents of at least 18 other states. Please see Exhibit D.

8. Under the Securities Act of 1933, it is against the law for any company, or “issuer,” to sell securities without either registering the securities with the Securities and Exchange Commission pursuant to Section 5 of the Securities Act or relying upon a valid exemption from the registration requirements. Similarly, pursuant to each individual state’s “Blue Sky” laws, it is generally against the law to sell securities within a state without either registering the securities with the state’s securities regulatory agency or relying upon a valid state exemption from registration.

9. At no time has RML or GGRC ever issued any kind of Reg D private placement memorandum or any other offering document or any type of disclosure documents to the stockholders of RML. There has never been any discussion of risk factors, management compensation or limitations of transfer of ownership that could have tax consequences to both the stockholders and the corporation. Additionally, no investors were ever asked to complete any prospective purchaser questionnaires that asserted that they were accredited. Additionally, no Form D was filed with either the state of Tennessee or with the SEC in Washington, D.C. nor was there any filing fee paid in Tennessee for RML or GGRC to qualify for any securities exemptions. As a consequence, any securities offering made by RML or GGRC does not qualify for any exemptions contemplated by Tenn. Code. Ann. §48-2-103.

10. TENN. CODE ANN. § 48-2-102 provides that a security is defined to include investment contracts. An investment contract is an agreement wherein initial value is given and subjected to the risks of an enterprise, with a valuable benefit of some kind, over and above the initial value, being promised, but the investor does not receive meaningful rights to exercise practical or actual control over the managerial decisions of the enterprise. I believe that this definition of an investment contract includes an investment in a vacation home.

11. Please note from Joe Thomas’ current Real Estate Sales Package that is available to the general public, shown as Exhibit E, that he sells condos at Deer Ridge Mountain Resort as a “personal or corporate investment.” Joe Thomas is also currently advertising these investments in Deer Ridge condos in the mainstream media, thereby, in my opinion, publicly offering unregistered securities to Tennessee residents and engaging in securities fraud every time that he attempts to broker a real estate transaction at Deer Ridge.

12. In examining Exhibit E, “Joe Thomas Deer Ridge Sales Package, December 2011,” note the following reference: “GG&RC HOA Fees cover maintenance and upkeep of all commonly owned areas including but not limited to exterior lighting, parking lot, landscaping, playground, tennis court, picnic pavilion, recreation building including indoor pool, Jacuzzi, sauna, steam room, game room, offices, golf membership and multi-peril insurance on the same.”

In spite of Joe Thomas’ insider knowledge and review of the annual audits, nowhere in his “disclosure” is any reference to the fact that 40% or more of the HOA fees listed are used to fund the average annual operating deficit of $116,117 of RML based on the corporation’s audits.

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

13. Buyers and owners of condos at Deer Ridge are given no choice of owning shares of RML. All owners must own a share of RML and are required to fund RML’s large operating deficits under the guise of required HOA fees that are nearly twice what would be required if RML were not funded by HOA fees. If owners object to this ongoing monthly capital call and do not pay, those owners are threatened with foreclosure of their home at Deer Ridge. This includes the 24 owners who do not use RML’s services – many of whom object to this illegitimately required monthly capital call funding into RML.

14. For example, when I bought my unit, Joe Thomas acted as both listing and selling broker on the transaction. At no time did Joe Thomas disclose any requirement for us to own a participating share of RML nor did he disclose that nearly half of the property’s annual HOA fees would be used to support a motel management company’s negative cash flow – even if we were not users of RML’s motel services. It is our understanding from recent property sales that Joe Thomas continues his historical lack of disclosure, his willful misrepresentations and his deceptive trade practices.

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

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

16. The fact that Joe Thomas also served then, and continues to serve, as General Manager of both GGRC and RML, as well as the principal broker of Ridge Resort Realty (a DBA of RML), gave and gives him complete knowledge and insights into the true operation of both corporations. As such, I contend that Joe Thomas knowingly and deviously omits these disclosures as part of his deceptive trade practices as a Tennessee real estate agent since many buyers, ourselves included, would have never bought a Deer Ridge condo if proper disclosure of these risk factors and gross overcharges had been properly made.

17. It is my contention that most buyers of small condos under $90,000 do not expect that they will also be unwilling stockholders in a money-losing motel business that will squander almost half of each year’s HOA fees. As such, the lack of this disclosure by broker and General Manager Joe Thomas is especially nefarious and fraudulent.

18. It is my contention that Joe Thomas , as General Manager and Principal Broker, is aided and abetted by all five members of the board of directors of RML, all of whom are co-conspirators in securities fraud and other securities law violations and have breached their fiduciary duties to all owners. The board members are President Luther Parker of Memphis, TN, Vice President Thomas Reise of Friendship, WI, Treasurer Larry Ohm, CPA of Grant Park, IL, Secretary David A. Barone of Monroe, NY and Director Margie Duncan of Florence, KY. General Manager of RML is Joseph Thomas of Kodak, TN. Please see Exhibit F for a complete listing including each individual’s home address, home telephone number and personal email address.

19. It is my contention that all five board members and Joe Thomas have conspired for years to fraudulently deceive owners at Deer Ridge regarding the profits and losses of RML in order for them to continue to operate their motel business for their own personal gain and benefits – none of which are disclosed to owners. These six individuals are concerned about the growing complaints of owners regarding having the highest HOA fees in the entire East Tennessee area. These six individuals are concerned that if the owners knew the truth about more than 40% of the HOA fees were used to cover the exorbitant annual losses of RML, these owners would take action to shut down this illegitimate corporation and cut their HOA fees in half. These six individuals are concerned that with an RML shut down, the benefits they uniquely receive from their motel business would be lost. I contend that this is the primary reason that Luther Parker, Larry Ohm, CPA and Joe Thomas lead this conspiracy to fraudulently lie to all owners about the profitability of RML.

20. TENN. CODE ANN. § 48-2-121 provides that it is unlawful for any person, in connection with the offer, sale or purchase of any security in this state, directly or indirectly, to make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading. In spite of the corporations’ audits showing a $2 million loss during the past 16.5 years, Luther Parker, Larry Ohm and Joe Thomas continue to falsely assert that RML is a profitable operation in order to intentionally mislead owners.

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

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

23. Many of these same board members and Joe Thomas have been in complete control of the board and the operation of Deer Ridge for a decade or more.

24. The company’s treasurer is Larry Ohm who claims to be a CPA in Illinois. I contend that because of his profession-required understanding of financial statements, Larry Ohm fully understands the audits and the nearly $2 million aggregate loss they show for the past 16.5 years. Yet, he continually and fraudulently misrepresents that RML is making the stockholders money. Please see Exhibit G which clearly shows Larry Ohm falsely stating that, “This clearly contradicts the accusations by anyone that HOA fees and special assessments are being utilized to pay for the costs of operating RML. In truth, in the past, it was RML that was providing a subsidy to GGRC.”

This fraudulent and misleading statement by Larry Ohm, CPA, was made to all owners in spite of 16 years of audits of the corporation clearly showing a $2 million loss, or an average loss of $116,117 every year for 16 years!

25. Exhibit H includes my Warranty Deed, complete closing statement package and my fully executed purchase contract with all attachments showing Joe Thomas as the only broker involved.

These documents show that there was never any disclosure of any kind made to me prior to closing that indicate in any way that I would be fraudulently forced to support a money losing corporation such as RML as part of my purchase or a residential condo. Again, if this had been properly and legitimately disclosed, I would have never considered closing on this transaction.

26. During the past six plus years that I have owned a condo at Deer Ridge, I have documentation that repeatedly pointed out to Joe Thomas and these board members that they are lying to the owners about RML’s profitability in light of the attached annual audits that they themselves commission each year. Therefore, there can be no legitimate claim by any board member or General Manager Joe Thomas that they had no knowledge of the facts.

27. In spite of numerous attempts, during the past six plus years that I have owned a condo at Deer Ridge, I have never received a copy of the Administrator’s Book that lists all income and disbursements, along with supporting vouchers. This Administrator’s Book, in this specific format, is required by the Tennessee Horizontal Property Act (§66-27 -113.) It is my understanding that Joe Thomas and the board have never made this Administrator’s Book available to any owner. Ever. As a consequence, no owner or stockholder in RML has ever been allowed to see the books and records as required by Tennessee state law. It is my contention that this stonewalling is driven by the conspiring board’s strong desire to hide certain transactions from the scrutiny of the stockholders – and it is my belief that these hidden transactions hide multiple acts of malfeasance.

Again, based on my 15 plus years of experience from acquiring $100 million of income property and managing 45,000 rental units – and my many years of experience from owning a NASD broker-dealer and my involvement with numerous private placement offerings and the applicable state and federal securities laws that control such offerings, I strongly believe there may be major, ongoing malfeasance that is negatively impacting the owners of condos at Deer Ridge.

The owners at Deer Ridge are mostly unaccredited investors who, in my opinion, are being consistently and deliberately deceived and victimized by a conspiracy of Joe Thomas and the board of directors of both RML and GGRC who are personally benefiting from these deceptions. I believe that these ongoing activities, deceptive trade practices and material misrepresentations are violations of the Tennessee Securities Act of 1980, as amended, and violations of the Tennessee Real Estate Broker License Act of 1973, as amended, and put the public at significant risk of immediate and irreparable injury, loss or damage.

Based on the above allegations and the enclosed exhibits, I believe that your investigation will find that Joe Thomas, Luther Parker, Larry Ohm CPA and the rest of the board continue to perpetrate willful misrepresentations, conduct that constitutes improper, fraudulent or dishonest dealings and numerous and substantial securities law violations to the financial determent of past, current and future owners of condos at Deer Ridge.

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

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

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

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

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

Not only can I provide your department with numerous additional documents and evidence not contained on the enclosed CD-ROM, I will gladly meet with you at your convenience or discuss these allegations on the phone in order to expedite your review of the facts concerning the multitude real estate violations of Joe Thomas.

Thank you for your consideration of my complaint.

Sincerely,

Robert Goodman

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

I hope that the actions of the Tennessee Real Estate Commission will show the nation that we Tennesseans will not tolerate real estate fraud, deceptive trade practices, securities fraud and other securities law violations – and that even unaccredited and unsophisticated real estate buyers will be protected.

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Stay Tuned!

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

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!

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!

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

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

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

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

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

The Big Lie:  RML Makes Our HOA Money

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

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

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

Really, Luther?

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

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

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

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

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

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

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

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

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

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

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

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

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

PLEASE CLICK IMAGE FOR THE BIG PICTURE

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

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

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

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

Whew.

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

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

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

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

Do you understand, now?

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

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

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

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

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

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

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

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

Prove it, Luther.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

First, The Good News!

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

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

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

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

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

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

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

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

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

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

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

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

You are welcome.

Gee Joe, What Changed?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Date:   November 10, 2011

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

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

The above points are more fully described below.

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

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

Immediately Shut Down RML And Fire Joe Thomas

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cut ALL HOA Fees In Half

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

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

Insurance Escrow

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

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

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

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

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

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

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

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

Discrimination Against Resident Owners

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

These include:

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

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

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

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

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

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

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

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

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

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

Updated Derivative Action Lawsuit

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

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

You Have Been Warned

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

On behalf of GGRC,

Robert Goodman, Owner
———————————–

Legalese On

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

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

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

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

Please note the obvious:

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

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

Legalese – And Powered Wig – Off

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

Six Down / 57 To Go?

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

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

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

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

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

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

Dear Board: Get A Clue.

Pay attention, “board.”

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

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

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

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

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

Neil’s Comment On Signing Up With Cobbly Nob Rentals

Here are Neil’s comments from last night:

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

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

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

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

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

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

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

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

Neil Blair  C-208

Thanks, Neil!

Save Yourself 43%

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

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

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

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

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

This was the comment from Jim and Wanda:

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

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

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

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

Thank you Robert for making this possible!

Wanda and Jim Goebel

Thanks, Wanda and Jim!

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

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

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.)

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!

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.

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

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

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

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

Selling A Deer Ridge Condo – Reality Check

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

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

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

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

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

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

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

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

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

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

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

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

Another Disadvantage:  Selling Through Joe Thomas and Ridge Resort Realty

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Stay Tuned For The Four Step Proxy

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

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

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

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

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

Their HOA Fees:

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

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

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

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

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

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

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

::: FLASH NEWS :::

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

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

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

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

The David Barone Lie

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

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

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

The Derivative Action Against All Board Members

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

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

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

The Magnificent Seven

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Another Negative Review On Trip Advisor

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

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

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

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

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

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

Other Alternatives

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

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

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

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

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

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

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

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

Maybe, you should be the next.

Recommendation

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

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

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

PS:  Here Are The Notices

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

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

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

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

This Is NOT The Only Case

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

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

Have YOU Been Overcharged Too?

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

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

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

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

Fire Joe Thomas Now

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

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

Does it make you wonder, too?

Bouncing Paychecks – And The Joe Thomas 10% Raise

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

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

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

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

Did You Spot THIS In Last Year’s Audits?

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

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

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

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

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

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

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

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

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

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

Help Us Force The Sale And Shut Down Of RML

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

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

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

Click Co-Plaintiff to find out how to help!

UPDATE:

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

Click Insurance Quote for a copy.

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

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

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

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

END OF UPDATE

An Additional MAJOR Risk To All Deer Ridge Owners

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

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

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

New, Upcoming Motion With Court

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

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

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

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

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

PRIOR POSTING

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What’s Your Experience With These Documents?

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

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

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

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

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

Stay Tuned – We Live In Interesting Times!

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

Those merits and claims were not even heard yesterday.

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

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

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

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

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

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

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

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

The Mortgage Book

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

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

Insurance Escrow Account

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

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

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

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

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

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

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

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

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

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

Even More Violations By Joe Thomas And The Board?

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

What’s Your Experience With These Documents?

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

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

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

Stay tuned – we live in interesting times!

We have filed a $3 million lawsuit against Deer Ridge Mountain Resort Gatlinburg, Tennessee, its General Manager and all individual board members.  Several of these issues may be decided in the next two weeks as a result of our Motion for Summary Judgment hearing scheduled for April 26, 2011.

The following  movie gives the background on one of these issues: The illegitimacy of RML, a wholly owned subsidiary of our HOA costing us $152,000 / year.  Watch this movie to see how RML has squandered and lost $1.3 MILLION of our HOA fees on trying to run their property management company.  That’s $1.3 Million that we would have had in reserves to cover the Asinine Assessment.

Be sure and check out the movie to see the SMOKING GUN we uncovered that proves the “board” has been lying to all owners about the “profitability of RML all of these years.

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

Primary goals of lawsuit:

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

This presentation deals specifically with just one of those four issues up for Summary Judgment: The illegitimate and ultra vires RML – Ridge Management, Ltd.

We will have separate presentations on the other three issues for Summary Judgment – so stay tuned for those videos!

PS: Oh, you wanted to see the specifics of the SMOKING GUN we uncovered?

The board continues to falsely claim that RML “helps” GGRC by making money for the HOA.

But we just found a “Smoking Gun.”  This is a document completed by Joe Thomas, himself, and given to owners showing the financial performance of RML over a 10 year  period. Click the image to see the BIG picture!

If you add up all these bottom line figures, you find out that RML was only marginally profitable for 3 years and rip roaringly unprofitable for 7 of the 10 years.  If you add up all the numbers, you find out that RML lost and squandered $359,000 during this period – all taken out of the HOA fees that all owners pay every month.

 Based on our analysis described above, RML is actually losing $152,000 a year for the six years since the Smoking Gun Report.  This equals a loss of $912,000.

• This loss of $359,000 is lost money out of the reserves of our HOA.  Lost – and gone forever – to support a company that should never have been started, let alone continued.
• Right now, this same board wants every owner to fund a special assessment for $353,500.
• All those funds, every penny, would have been in our reserves if not squandered on feeding RML!

As you can see, even though their own document shows a whopping $359,000 loss, it is still based on RML misapplying certain charges back to GGRC thereby understating how much they were REALLY losing during that 10 year period.

Add to this, their admitted loss of $359,000 for the prior ten years.

This RML Loss  Of GGRC HOA Fees Over The Last 16 Years = $1,270,000 = ALL Taken From Owners.

This is the kind of HOA Board Abuse we are trying to stop with our $3 million lawsuit.

Please watch the movie for other interesting facts!

Note To Self:  Be sure and investigate another tidbit of info given away in Joey’s 10 Year Performance Review – Why did all income in Ridge Realty magically stop completely in 2003?  Into whose pockets did those brokerage commissions go since they were obviously no longer going to benefit RML?  I wonder who might have gotten all that money for the past nine years???

The UnNatural Nature Trail

These photos were taken around Deer Ridge Mountain Resort, Gatlinburg, Tennessee.  Most all of these were taken on April 7, 2011. In my opinion, what you are about to see is a dismal indication of gross mismanagement by Joe Thomas, General Manager, at Deer Ridge.

How hard is it to have our existing maintenance personnel walk this trail at least once a week to pick up this kind of trash and debris? It SHOULD be done once per day by a competent property management company!  None of our 3 or 4 maintenance staff have 15 MINUTES a WEEK for this NO COST maintenance?

Inexcusable Mismanagement

This kind of gross mismanagement is totally inexcusable. How do you think this kind of mismanagement comes across to your guests and tourists? How do you think  this kind of mismanagement comes across to prospective buyers?

It’s Been Like This For Months

What you are seeing is not the result of a very recent wind storm or other act of God. What you are seeing is the state of neglect of our nature trail for MONTHS due to what I believe is irresponsible mismanagement. Virtually everything you are seeing could have been fixed for almost no cost – in less than a day.

Good First Impression, Huh?

Tourists see this mismanagement every time they walk the Nature Trail or walk the property. Tourists see this mismanagement every time they take their kids to the playground. Is this the image of Deer Ridge that you want your guests to have when they visit or rent from you?

Get It Done – Now

Solve the Nature Trail problem now. No more excuses. We WILL be watching…everything.

And, we WILL be making more movies…just like this one to hold Joe Thomas and the “board” accountable.