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

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

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

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

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

Folks, these statements by Luther Parker are lies.

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

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

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

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

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

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

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

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

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

Uh huh.

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

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

Securities Division of Tennessee – An Agency With Big Teeth

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

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

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

Just The Start

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

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

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

The Word of Today For The Gang of Six: Disgorgement

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

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

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

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

Allegations

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

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

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

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

Summary

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Investor Complaints

My investor complaint includes the following allegations:

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

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

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

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

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

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

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

Thank you for your consideration of my complaint.

Sincerely,

Robert Goodman

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

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

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Stay Tuned!

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

From Bloomberg Businessweek – December 8, 2011

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

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

By Felix Gillette

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Quon is free on $50,000 bail.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mediation

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

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

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

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

Jury Trial

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

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

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

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

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

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

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

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

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

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

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

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

New Derivative Action Lawsuit

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

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

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

They Started It – We Will Finish It

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

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

Stay tuned!

If you are signed up with RML:

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

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

Pretty scary, huh?

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

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

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

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

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

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

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

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

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

Another Good Reason To Use Cobbly Nob Rentals

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

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

Which sounds like a better deal to you?

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

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

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.

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

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

Case in point:

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

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

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

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

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

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

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

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

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

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

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

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

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

Judge For Yourself

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

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

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

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

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

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

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

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

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

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

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

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

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

cc:  Deer Ridge Owners Blog

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

———————————–

Legalese On

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

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

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

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

Please note the obvious:

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

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

Legalese – And Powered Wig – Off

::: FLASH NEWS :::

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

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

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

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

The David Barone Lie

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

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

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

The Derivative Action Against All Board Members

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

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

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

The Magnificent Seven

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

However…

Real Increases In Water Usage – Or Something Else?

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

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

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

Let’s See The Real Data, Joe

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

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

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

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

Curious, huh?

The Missing Audit Numbers – A Smoking Gun???

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

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

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

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

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

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

But where IS the water???

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

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

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

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

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

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

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

Show Us The Money, Joey!

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

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

————————————

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

August 3, 2011

Dear GGRC Co-Owner:

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

Please contact me if you have any questions or concerns.

Sincerely,

 

Joe Thomas

General Manager

865-436-2325

manager@deerridge.com

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

Hey Luther, Board,

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

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

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

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

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

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

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

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

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

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

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

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

Is that too much to ask ?

Thank you, Neil Blair C-208

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

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

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

David Barone Lied To You

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Repayment of $200,000 By Board Members As Individuals

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The important thing you should be asking yourself is WHY?

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

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

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

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

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

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

Check Out Our Deer Ridge Owners YouTube Channel!

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

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

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

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

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

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

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

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

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

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

Primary goals of lawsuit:

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

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

Summary Judgment Goals On Our $3 Million Lawsuit

Issue: The GGRC HOA Board Is Violating Tennessee State Law – Denying Owners Access to All Books and Records In Appropriate State Format.

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

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.

New Video At YouTube

This presentation deals specifically with just one of those four issues up for Summary Judgment: The GGRC HOA Board Is Violating Tennessee State Law – Denying Owners Access to All Books and Records In Appropriate State Format.

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?)

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

As you know, it is my personal opinion that neither Joe Thomas nor the “Board” at Deer Ridge Mountain Resort are trustworthy.  I personally consider them totally unethical too. 

Want Some Proof?

Of course, all of the above is my personal opinion.  But let me show you some recent court documents that might convince you.

The illegitimate “board” at Deer Ridge had threatened to file suit against me and others who objected to, and did not pay, the equally illegitimate ”special assessment.” 

Our attorney notified Chuck Sexton, attorney for GGRC, that we had filed a $3 million countersuit against GGRC, Joe Thomas and each individual “board” member.  He made it clear to Sexton that there was a prior pending suit.  Sexton acknowledged the suit during a phone call with our attorney who then followed it up with a June 17th letter to Sexton (see copy of letter below.)

In spite of this knowledge, and Sexton’s specific agreement to not pursue the July 12th hearing for judgement against me, the Despicable Gang of Six went ahead and got a summary judgement against me on July 12th for $2,230! 

Note that this was almost a full month AFTER notifying Sexton.   Talk about untrustworthy and unethical! 

“Gee, We Didn’t Know The Gun Was Loaded…”

This breach of ethics was discovered by me on August 2nd when I went to the courthouse and requested a full history on all the litigation between me and Joey and the “board.”  (See copy of Court Docket Summary below.)  Needless to say, I was surprised, though I shouldn’t have been, that the Gang of Six had done something THIS unethical.  Neither I nor my attorney had showed up for the July 12th hearing since Chuck Sexton had assured us that the issue would be dropped due to the precedence of our $3 million lawsuit. 

We had believed Chuck Sexton – but clearly shouldn’t have.

When Sexton was confronted regarding this issue, his claim was that this was just an “accident” and should not have happened. 

HOWEVER, if you notice on that same Court Docket Summary below, they ALSO had filed a writ of execution to attach my bank accounts for payment of this illegitimate judgement on July 26th – two weeks AFTER the default judgement.

In spite of what Sexton said, this kind of writ of execution does NOT happen by “accident!”

To me, this is clear evidence of Joey and the “board” unethically attempting to grab money out of my bank account with an illegitimate judgement.

We are considering sactions, and other legal recourse, as a consequence of these reprehensible actions by GGRC et al.

Joey And “Board” FORCED To Set Aside The Judgement Against Me

The following court documents show how Joey and the Board were forced to set aside their entire judgement against me and that our countersuit against them has taken complete precedence over any claims that they may think they have against me.

This time Joey and the “board” were stopped. 

If you are also being sued by these people who are illegitimately manipulating GGRC, I invite you to join in our $3 million lawsuit against them.  This way, you may be able to probably gain the same level of protection from their lawsuit against you that I have.

The bigger point to all Deer Ridge Owners:  If Joe Thomas and the ”board” are THIS untrustworthy on something as clear as this – then what actions and decisions, just maybe, might be going on by them that are at least as unethical as their actions have been with this illegitimately attempted judgement?

The other issue:  All of that work by Sexton on behalf of the Gang of Six cost GGRC, and ALL owners, more money for legal fees.  And, every bit of OUR money spent on this was wasted by Joey and the Gang.

Are these the guys that you REALLY want handling a MILLION DOLLARS A YEAR of our money at Deer Ridge?

Documentation Proof

The below court documents are the written proof on the above allegations, statements and opinions.  (Just click the small thumbnail image to get the BIG picture.)  As always, all of the above is just my personal opinion.  Please see the left sidebar for the full disclaimer.

Also, let me know what you think by posting your own comment below.

Three Ways To Cut Your Electric Bill At Deer Ridge Mountain Resort

The cost of electricity has been going though the roof.  Yeah, I know, you heard it here first.

But, have you wondered why your electric bill at Deer Ridge Mountain Resort is so high?  Well, we’ve identified three possible reasons.

#1:  Apparent Theft Of Services

One of the claims that Joe Thomas, Luther Parker and the rest of the Gang of Six made in their $1 Million lawsuit against me was that I “falsely” accused them of “Theft of Services.”

Well, as the following photos show, it appears that we have “smoking gun” proof of their Theft of Services that we will probably use in court against them.

It seems to me that Joe Thomas et al have no problem with the phrase, “Mi casa es su casa.”  Rather in Joey’s case, “Su casa es mi casa”  – which means, “Your house is MY house.”

Apparently, Joey has NO compunction about entering YOUR condo to use YOUR electricity whenever it is convenient to him.  No wonder he wants a key to every unit.

It looks to me like Unit A-201 next to ours was vacant at the time and was opened so that a very long extension cord could be run to allow some of the workmen to use this Owner’s electricity.  (Plus, I can only imagine the amount of gnats and other bugs that got into their unit during the many hours the door was left open…let alone the security risks of unauthorized entry and theft of contents by any one who happened to be on property, but I digress…)

Maybe the A-201 Owner was contacted before the fact – but we have seen this same thing done several times before here at Deer Ridge during the past few weeks and my guess is that this is done on a very frequent basis – without even thinking and considering that owners do NOT want their electricity STOLEN without their consent.  As a matter of fact, we have seen workmen here do this same thing for EVERY walkway railing replacement done so far – using the electricity from at least 8 different owners to feed their extension cords.

You really think Joey got prior permission from all 8 owners?

I am not an attorney nor a police officer – but it seems to me, in my personal opinion, that this might, just maybe, qualify as a criminal act of theft of services, according to the following Tennessee state law:

The Tennessee Code Annotated defines “services” for the purposes of theft of services in T.C.A. section 39-11-106(35). The term “services”:

“includes labor, skill, professional service, transportation, telephone, mail, gas, electricity, steam, water, cable television or other public services, accommodations in hotels, restaurants or elsewhere, admissions to exhibitions, use of vehicles or other movable property, and any other activity or product considered in the ordinary course of business to be a service, regardless of whether it is listed in this subdivision (35) or a specific statute exists covering the same or similar conduct”

Maybe, Joey has written permission from the owner of A-201 – AND the other 8 plus owners but my very strong intuition is that he did not – this time, nor for all the other times we have seen this same thing done here.  Granted, it probably doesn’t cost any particular owner more than $10 or $20 each time they do this – but, for me, it is the principle that is my concern – along with the disgusting, unethical entitlement attitude that Joe Thomas seems to evidence in so many ways.

And, evidence is exactly how these photos will be used during the trial.  We’ll see if the jury agrees with us about this being a theft of services.

(We have other photos of this kind of activity somewhere – but I can’t find them right now in time for this blog post.  If we find them, we will post them too.  And, use them in court against the Gang of Six.)

To me, in my opinion, this is just more proof that Joe Thomas considers all of Deer Ridge as his personal fiefdom and domain – with private property to be used at his whim with no regard for the Owner’s rights – or their bank account.

In my opinion, the way to cut this kind of electric use is to fire Joe Thomas.  I personally doubt any other approach will work.

#2:  If You Are Using RML – You Are Being Charged Sales Tax And Commercial Rates For Your Electricity

We just had an electric audit run on our own unit with the goal of replacing our old energy hog A/C unit.

When their representative Lucas was here, he reviewed our bill and pointed out that we were being charged both sales tax and commercial rates as a result of having signed up for RML when we first bought here.

Lucas said that all we had to do was call Michelle (865-774-6246) at their office and she would take care of it for us.  She was GREAT – not only saving us about $250 a year with the change to our bill – but also getting us a credit of $735.85 for these charges for the past three years!  (See the electric bill we got this week showing the credit.)

Between the refund and the cost savings over the next 12 months, this adds up to almost $1,000.

I have to say, everyone we have dealt with at Sevier County Electric is terrific to work with – friendly and willing to help in every way.  Amazing in general – and for a public utility, even more amazing.  Kudos!

Considering how little you are actually netting from RML, does it make sense to pass up these kinds of savings?

#3:  Special Energy Efficient Financing and Tax Credit To Replace Your A/C

Right now, TVA and Sevier County Electric have a GREAT program to motivate folks to upgrade their HVAC to a more energy-efficient system.  If you get a new unit with a SEER of 14 or more, they will finance 100% of the cost of the new system – and fully amortize the cost over 10 years at only 6% simple interest. If you get a unit with a SEER of 15 or more, you can also qualify for a $1,500 tax credit if done this year.

We highly recommend Mark Watson of Watson Electric in Gatlinburg for all your A/C work.  He gave us a great price and provided us with very professional and reliable service and installation.  His number is 865-430-7534.

For us, the TVA financing package equaled a a monthly cost of $42.  I am not a big fan of debt – but the beauty of this is that the cost savings from the improved energy efficiency will cut our average monthly bill by almost this full amount each month – making it a self-liquidating debt.  This means that the cost savings virtually pays for the new system – and we get a band new Trane system with a 10 year parts and labor warranty.  Add the nearly $20 a month savings that Lucas found from the old RML commercial rate and sales tax – and this upgrade and financing deal was a no-brainer.

Besides, financing the $3,800 cost for replacing our system gives us that much more cash to invest in legal fees in our $3 million lawsuit against Joe Thomas, Luther Parker, Larry Ohm, Tom Reise, David Barone and Margie Duncan.

UPDATE:  We have now filed a comprehensive $3 Million counter suit against GGRC, Joe Thomas and each board member, individually.  Click $3 Million Lawsuit for details. 

The GGRC Board for Deer Ridge Mountain Resort has filed a $1 million lawsuit against me.

They are ready to spend tens of thousand of OUR dollars in their attempt to stifle me and other Deer Ridge Owners who will no longer tolerate their abuse of power.

Here’s a clue, to Joey and the boys:  I am not the least bit intimidated and will not stop my efforts to force you to conform to both Tennessee and Deer Ridge law.  I will not stop my efforts to uncover your secrets you are trying so desperately to hide from all owners.  You know as well as I do that your lawsuit is completely frivolous and totally without merit and we will fight you in court.  If you expected a quick capitulation as a result of your attempts at intimidation, you are wrong.

By the way, I noticed that your attorney Chuck Sexton is not the attorney representing you on this lawsuit.  Is that because he understands how frivolous your lawsuit is – and that he did not want to risk sanctions from the Court?

Below is a press release that is already being sent to more than 500 media outlets across the state of Tennessee and the nation.  This includes local as well as national media.  It is also being sent to all local and state government agencies across Tennessee and to federal agencies that control policy.  It is being sent to local, state and federal lawmakers.

We have contacted the ACLU, the Electronic Frontier Foundation and the Media Bloggers Association since Joey and the “board” have chosen to once again attempt to stifle freedom of speech.  We are hopeful that they will be interested in participating in this lawsuit since it now has national implications as to what can, and cannot, be said on a blog without the threat of a $1 million lawsuit.

We are also reaching out with our press release to dozens of groups and agencies like AARP, Consumer Reports and the Community Associations Institute and others that understand that the growth of HOA organizations is accelerating and something needs to be done by regulators to ensure that the kind of abuse of power that we suffer through at Deer Ridge needs to be stopped or prevented at all 305,000 HOA communities across the country.

We believe that both of these issues have huge national impacts – and we hope that others from across the country will join with us in both protecting our American rights to free speech and to create policy changes and new laws to protect the 60 million Americans who live in HOA communities.

PRESS RELEASE – FOR IMMEDIATE RELEASE

Gatlinburg, Tennessee Home Owners Association Files $1 Million Lawsuit
Against Blog Author and Property Owner

A Tennessee Home Owners Association has filed a $1 million lawsuit against one of its property owners for defamation, libel, slander, and false light invasion of privacy.  The property owner, Robert Goodman, has operated a blog that has heavily criticized the actions of the HOA’s general manager and board of directors for alleged violations of both its own HOA controlling documents and Tennessee state law. The HOA board has filed the lawsuit in an attempt to force virtually all content to be removed from the blog and prevent any new entries.

Gatlinburg, TN – April 23, 2010 – According to the Community Associations Institute, during 2009, Home Owner Associations, also known as HOAs, controlled nearly 25 million homes – or more than 22% of the 113 million total American households.  This number is expected to grow to over 40% during the next few years.

However, many property owners complain that their Home Owner Associations operate as if it was a quasi-government entity with dictatorial powers that are not properly regulated at either the state or federal level. Often, these HOAs are illegitimately and improperly administered by members who abuse their position by ignoring the written regime documents that are intended to control the powers and actions of boards and managers.

Robert Goodman, a 62 year old, semi-retired executive with three kids in college, is convinced that he owns a property that is being grossly mismanaged by its general manager and HOA board.  Goodman is an owner at Deer Ridge Mountain Resort, an 84 unit condo development in Gatlinburg, Tennessee.

When his HOA’s board continually blocked all attempts at seeing the books and records or even getting the names of other owners, Goodman created a blog at www.DeerRidgeOwners.com so that all owners could easily participate in discussions about what was really happening at their property.  Now, he is being sued for over $1 million by his own HOA because of that blog and its contents.  A complete copy of the entire lawsuit is available for download at his blog.

Goodman said, “We’ve owned this property for nearly six years.  I’ve made dozens of requests to get copies or view the Administrators’ Book that is required by state law to show, in chronological order, the income, expenses and supporting vouchers for every transaction by the property’s HOA.  The general manager, who has essentially controlled this property for a decade, and the board of directors have refused to even show me or other interested owners the Administrators’ Book.  This is a direct violation of Tennessee state law 66-27-113.”

“What conclusions would you reach if your bank or stock broker adamantly refused all requests to show you the books on your bank or brokerage accounts for 6 years?  Would you conclude that something was very suspicious about the way your money was being handled? Would you be equally suspicious about the secrets that motivated their refusal?  Those are the conclusions that I, and other owners, have reached regarding the management of our investment at Deer Ridge.”

Goodman added, “Not only are they violating state law, the board has continually violated the written requirements of our own master deed and bylaws with multiple abuses of power including spending over $120,000 of owners’ money on unauthorized projects.  They continue to overcharge a third of all property owners by 82% for their monthly assessments.  They also violated Tennessee state law by refusing to even provide a list of all owners and their addresses.  I believe that this refusal was part of a concerted attempt by those in power to block any communications between owners so that concerns would not be raised about their questionable management and the misuse of our funds. It was only under threat of a lawsuit that I was able to finally get the owner list.  This board and general manger are still trying to do all they can to interfere with our freedom of speech.  This $1 million lawsuit against me shows just how far they are willing to go.”

He continued, “I even went to the expense of recently hiring an independent attorney to provide us with a 13 point legal opinion just to make sure that our claims were valid.  On 12 of the 13 points, the attorney found that our assertions were correct and the board was at major fault.  Not surprisingly, the board completely ignored the entire legal opinion.”

Goodman, who is an MBA, spent 15 years running his own real estate company and 16 years as a management consultant to thousands of start up companies CEOs worldwide. He knows something about management, real estate, finance, financials and due diligence – and he knows something about the Web and how to set up a blog.

“Virtually all of my business for the past 16 years has come from the Web.  So, I already knew how to leverage the Internet with my knowledge of what is required to produce web content.  Setting up the blog was easy.  Adding all the content about all the many things that are wrong at Deer Ridge has taken man-months of time and effort.”

“I am a big believer in the power of the Web – and the massive benefits it offers for democratizing information and making that information easily accessible.  To me, it seemed like a natural way to let other owners know what was really happening at this property.  The blog let me fully document multiple examples of how our rights have been blatantly abused by the power clique which has controlled this property for years.”

The Deer Ridge HOA lawsuit alleges that Goodman is guilty of “defamation, libel, slander, false light invasion of privacy, procurement of breach of contract, and intentional interference with business relationships.”  The suit attempts to block him “from further publishing matters concerning Plaintiffs in such a way that casts Plaintiffs in a false light, from further inducing persons to breach contracts…and from further interfering with Plaintiffs’ business relationships.”  It also attempts to force him to remove the existing content from his blog.

The HOA also is asking the Court to “assess compensatory damages against Defendant in an amount of no less than $250,000” and to “assess punitive damages against Defendant in an amount of no less than $750,000” along with costs and legal fees. The HOA also wants to “assess damages against Defendant in an amount of five hundred dollars ($500) per day for each day Defendant has published and/or continues to publish the statements described herein and/or any other libelous, defamatory, and/or false light statements, regarding Plaintiffs.”

Goodman responded, “The claims in their lawsuit are so completely frivolous on every single point of issue – that sanctions against the plaintiffs’ attorney may be involved.  Once again, the board is wasting owners’ money – in this case, tens of thousands of dollars of our money on this lawsuit – just to protect their own empire and their own secrets. The blog speaks for itself and has appropriate disclaimer language.  Their $1 million lawsuit is simply a preemptive attempt at intimidation to quash my own lawsuit against the HOA and its board members.  The blog made it clear that I intend to force them to abide by Tennessee state law and Deer Ridge law.  We were already seeking an attorney to represent us in our claims on the dozen points contained in the legal opinion.  Now, I need an attorney to handle both their frivolous claims and the original dozen points of issue – and get these matters finally settled for the benefit of all owners.  Many of us want to find out what secrets the general manager and board are so desperate to hide from all the other owners.”

Goodman added, “This case could have far reaching implications on at least two national issues:  Firstly, what exactly are the rights to freedom of speech for blog authors everywhere – what can and cannot be published?  Secondly, what is going to be done about the tyrannical and illegitimate abuses that HOA homeowners are forced to endure daily in many of the 305,000 HOA communities that house over 60 million Americans nationwide?”  Goodman said he hopes that both the freedom of speech issue and the lawsuit gain the attention of the ACLU and the Electronic Frontier Foundation.

For the last issue, Goodman concluded, “Our state governments in Tennessee and many other states desperately need to develop new regulations with powerful enforcement teeth.  They need to address the blatant abuse of powers at these fiefdoms that serve as quasi-governments for so many folks – and that adversely impact the rights of so many lives.  Homeowners need a way of forcing their HOA to abide by the law – without having to spend a fortune on legal fees.”

Contact:  Robert Goodman
Tel: 865-365-5962
Email: Litigation @ DeerRidgeOwners.com
Website: www.DeerRidgeOwners.com

###

That’s it so far – but stay tuned.  We believe a lot of good things will be happening in the next few weeks.

If you would like to download the entire 112 page lawsuit, click Lawsuit.  If you would like to download the actual press release, click Press Release.

If you are with the press or the government and would like to schedule an interview, please email me at Litigation @ DeerRidgeOwners.com.

If you would like to donate to the Deer Ridge Legal Defense Fund, just click the Donate Button below. All contributions, no matter how small, are appreciated.

• Audits At Deer Ridge – The Fallacy and Joe Thomas – The Deer Ridge $10 Million Man
• FBI – Official Request Made to Investigate Alleged Criminal Activity By Deer Ridge Manager And Board
• Seeking Legal Representation – RFP – HOA Lawsuits
• Do NOT Make Your Deer Ridge March 1st Assessment Payment – It Is NOT A Valid Assessment
• File A Complaint Against Joe Thomas With Tennessee Real Estate Commission

The above is their “evidence.”  I invite you to read each of these in their entirety and make your own judgment as to whether I am guilty of all that they claim.  Especially in light of the disclaimer that is in the left column of every single page on this blog:

Legalese On

GENERAL DISCLAIMER FOR ALL PAGES AND POSTS

Note: The following, 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.

Legalese – And Powered Wig – Off

I would say that is pretty clear with regard to my opinions about things.  What do you think?

We have been told by several owners that they are NOT paying the Asinine Assessment payment that Joey and the “Board” claim was due March 1st.

Joe Thomas is telling some owners that their payment will be late if not paid by the 10th.  He is telling other owners that all late fees are waived until April Fool’s Day.   (Come on, Joey, you gotta use the same rulebook for ALL owners!)

Four Reasons The “Special Assessment” Is Invalid And Should Not Be Paid

Joey and the “board”  claim that they are delaying the late fee because of the “confusion” my letters and blog have caused by identifying not one – but FOUR reasons – that the independent attorney said the “Special Assessment” was illegitimate and violated the GGRC Master Deed and Bylaws in four, count them four, different ways.

Click Four Reasons to see the reasons and make up your own mind about paying your part of this Asinine Assessment.

Joey And “The Illegitimate Board” Can’t Find Their Own Reputable Attorney

The “board” has yet to produce ANY written, independent legal opinion, whatsoever, that shows that this “special assessment” is valid in ANY of those four ways.

The reason? They can’t find a single reputable attorney who is willing to risk being disbarred by misrepresenting that they are right!

I don’t know about you – but I am NOT paying ANY assessment – unless they can prove to me with an independent legal opinion that those Four Reasons by the law firm of Howard and Howard are invalid.

Joey And “The Board” Are Trying To Hide How Few Are Paying The Assessment

Neil Blair has been trying to find out how many owners have paid – and how much has been collected.  He isn’t trying to find out WHO – just how MUCH and how MANY.

That seems like a reasonable thing that any owner at Deer Ridge should be able to get a VERY quick, straight forward answer, right?

Nope, not at Deer Ridge – with Joe Thomas and Luther Parker playing their usual petty tyrant roles – illegitimately blocking owners access to the financial records of our investment in Deer Ridge.

Joe Thomas and Luther Parker are telling Neil and all other owners that the “how much has been paid” and the “how many have paid” are CONFIDENTIAL numbers!!!

Give me a break.  What they are trying to hide is how few are paying!  Do YOU want to be one of the few who pays?

Read the Silly Rules And Stumbling Blocks of Joe Thomas and Luther Parker

Neil forward me a copy of the following exchange of emails from Joe Thomas and asked that I post it here on the blog.

It is SUCH an outrage and gross abuse of power by Joey and Luther Parker and the illegal board – trying to erect every conceivable road block to any owner at Deer Ridge even SEEING the books and records of our investment here.

Please read the following B***S*** by Joe Thomas and see if this exemplifies “the open transparency” touted by Luther Parker, Larry Ohm, Tom Reise, Margie Duncan and Dave Barone.

Folks, these are your current “board” members who are SO desperate to hide all of their nefarious activities that they are requiring owners to jump through the following hoops just to SEE some of the books and records.  We are not talking about copies – this is just to SEE the books and records we have a LEGAL right to see.

Fire The Six – Help Us Fund The Deer Ridge Litigation Fund

It is past time to make sure Luther Parker, Larry Ohm, Tom Reise, Margie Duncan and Dave Barone – and Joe Thomas – get fired from any role of power at Deer Ridge.

Help us make that happen – Please donate to the Deer Ridge Litigation Fund – so we can have a court FORCE this illegitimate power clique to give back control and ownership of Deer Ridge to ALL the owners.

Read The Joey BS In Red

—————————————

From: openroad12@hotmail.com

To: manager@deerridge.com

CC: davidbarone@optonline.net; larryo@skdocpa.com; parker.luther@gmail.com; mickmargie@zoomtown.com; tomtrip@verizon.net

Subject: RE: How could it be Confidential???

Date: Mon, 8 Mar 2010 19:35:11 -0500

Is the number of owners that have not paid still confidential?  Is the balance in the Escrow account confidential ?  Both, Numbers only, No names ..

Best regards, Neil

——————————————————————————–

From: manager@deerridge.com

To: openroad12@hotmail.com

CC: davidbarone@optonline.net; larryo@skdocpa.com; parker.luther@gmail.com; mickmargie@zoomtown.com; tomtrip@verizon.net

Subject: RE: How could it be Confidential???

Date: Mon, 8 Mar 2010 18:43:13 -0500

Dear Neil,

Management, with the Board’s approval has established policies and procedures regarding requests by owners to review our books and records.

1. The established time for reviewing our books and records is: every Wednesday between the hours of 8:00AM and 10:00AM (exception would be if on vacation or a holiday falls on Wednesday)
2. The established place for reviewing our books and records will be: Our game room adjacent to the lobby.
3. Only Co-owners are permitted to review our books and records.
4. An owner wishing to review our books and records will call, fax or email Joe Thomas to make an appointment a minimum of 7 days in advance of the requested appointment date.
5. The owner will provide the manager with a detailed, written list of what he/she wishes specifically would like to review a minimum of 7 days before the appointment date. The 7 day period is required so that the requested material can be gathered and presented in an efficient manner. Some items are kept off site either in storage or at our CPA/ bookkeeper’s office.
6. Follow up or additional appointments if needed will be made at the conclusion of the owners schedule appointment.
7. No copies or photographs are permitted of any items other than those items specified in the Act #66-27-503.

Neil, please let me know when you’d like to schedule an appointment and what specifically you’d like to look at.

Due to the fact that you have admitted to contributing moneys to the Goodman Litigation Fund, I may need additional time (more than 7 days) to review your detailed lists of items to be reviewed with our attorney.

I look forward to meeting with you soon,

Joe Thomas
Deer Ridge Mountain Resort
865-436-2325
manager@deerridge.com

——————————————————————————–

From: NEIL BLAIR [mailto:openroad12@hotmail.com]

Sent: Friday, March 05, 2010 11:33 AM

To: Joe Thomas; Luther Parker Parker; Larry Ohm; Margie Duncan; Tom Reise Deer Ridge Director; David Barone;

Subject: How could it be Confidential???

Confidential? Why is that word and train of thought so quick and easy….

Confidential….?  We are the Owners, how can a simple question on how many owners have not sent in the money, be a confidential matter.

Please…. Give me a date and time of your choosing, so that I can begin to be comfortable in my ongoing duty of due diligence to myself, and other owners. to do, in the only way currently ALLOWED… So I intend to take full advantage of it, UNTIL the Possible day when real transparency & copies are made available…

Go ahead and arrange for the first 3 meetings to be before the annual meeting in April, and then a meeting each month within 3-5 days of the bank statement arrival.

Thanks, Neil

——————————————————————————–

From: openroad12@hotmail.com

To: manager@deerridge.com; parker.luther@gmail.com; larryo@skdocpa.com; mickmargie@zoomtown.com; tomtrip@verizon.net; davidbarone@optonline.net

Subject: Confidential??? Another Question?

Date: Fri, 5 Mar 2010 09:38:07 -0500

So I’m Clear on this,

You are saying that if I personally show up at Deer Ridge on Monday March 8th, “Or, at a time we both agree to meet” I would be denied access to this information ?

Is that your stand ?

My memory is that the lawyer told you guys Any Owner had the right to at least LOOK at any and all records, verify transactions, verify deposits, verify transfers of money, verify who is behind on monthly fees, assure that bills are being paid on time and from the proper account, verify most anything except perhaps Certain employee Files,

I think that is also your own announced interpretation of the Master Deed and By-Laws.

Please contact me regarding an appointment for me to see these records, I anticipate needing 3 meetings of approx. 2-3 hrs, to cover RECENT records, also, will possibly have another person with me.

Please communicate this can take place in e-mail form.

See you Soon, Neil

Is This The Kind Of Board You Want?

What are they trying to so desperately hide?  In my opinion, Joe Thomas and Luther Parker, Larry Ohm, Tom Reise, Margie Duncan and Dave Barone MUST be trying to cover up the crimes of the century based on the way they are fighting us to even SEE our own books and records.

Let’s get this resolved right here, right now.  Let’s have a court decide, once and for all, what our rights are as owners of Deer Ridge Mountain Resort.

Help us make that happen – Please donate to the Deer Ridge Litigation Fund – so we can have a court FORCE this illegitimate power clique to give back control and ownership of Deer Ridge to ALL the owners.

The following is also a comment left by Neil, C-208, about another property he owns.  This was an email he sent tonight to the entire “board” and Joey.”

Judge for yourself:  Which property is operated better?

Please bear with me… And Yes, WAY, WAY Down the Thread, after my Rant,
Is the Example the Daily Report…. From Leonard…..

This is an example of a Gulf Highlands Board member giving an almost daily, clear, complete reporting of activities, ” Most Days Photos,” Kinda Like Robert and his blog, AND an example of a well run clearly defined use of Association Fees, RESERVE FUND usage and availability, “Yes it is a property with many more owners/members, BUT even more expenses, more complexity, more personalities, some are abrasive, some are very agreeable folks, some so financially uptight they squeak, and make others squeak….

It is a pleasure to visit the office, and REALLY have a conversation with the manager and all assoc. employees:  no stress, no past foibles, no wondering if you…

By the way, We have an independent VERY profitable property management Company ON SITE.  They pay market rent to the Owners Association, and a percentage back to the Owners Assoc.  THEY have only a 28% management fee – and sill make a nice profit, and bid yearly to stay on site…

About 7 other companies manage units, some charge as little as 25% some as MUCH as 35% All inclusive.  Yes, some owners even rent using V.R.B.O.com, Vacations4U.com. etc. thereby keeping all the Unit Rental Dollars.  They pay an independent cleaning service a fee of about $35-40, not giving up a 30-40% a DAY… It is amazing, all really get along…mo one accuses an owner of “stealing” from other owners, if they use an outside rental company or means of rental of their choice.

This thing called competition makes every one better, and accountable to the folks that have a financial interest in them…

The board members in a situation like that, don’t have to worry if the independent management company. has cash handling issues, has any personnel problems, any late or unpaid workmen’s comp premiums, any occupancy worries, any advertising costs, any legal liabilities for an accident involving guests.  The board doesn’t waste time and energy on anything to do with PROPERTY MANAGEMENT RISKS OR HEADACHES…

The board there has ONLY the well being of the OWNERS interests, it makes for a nice reserve account balances and there has been NOT ONE Assessment for road paving, Painting, Nuts Bolts, Fencing, Beach Erosion, Tearing out of Strong, Stable, Sturdy Walkway Railings –ALL– Large Predictable, Normal Maintenance & Financial concerns have a Fully Funded RESERVE Account and the board understands that they have an OBLIGATION To keep the OWNERS on an even, steady monthly fee of……… a Giant $143.00!

Not having to spend TIME figuring out how to JUGGLE /SWAP/ BORROW OWNERS money back and forth from a NOT SO PROFITABLE Rental Management Company and the HOME OWNERS Association lets the board concentrate on the property and the owners.

That Property also has 18 hour a day security guard force, 3 controlled entry gates.   The Manager at a $48K/yr salary keeps all 7 of the employees, $7.00 to $18.00/hr.  busy doing scheduled PREVENTIVE maintenance, and Yes, they do pick up the trash from All 703 townhouses ONCE a day also.  Unlike Deer Ridge, it is not a 3 times a day pick up, which leaves almost no time for PREVENTATIVE Maintenance here in the mountains…

Another RANT from the OLD GRUMBLE BOX Neil…. Can’t help myself… it’s a Sad Sad Way To Have To Live….

See below for Leonard the Board Members Daily Report, Looks like Guests there really enjoy the Shuffle Board Courts there…

I remember an Owner / Resident here at Deer Ridge VOLUNTEERING ALL LABOR to Build a Shuffle Board Court asking the board ONLY For The Cement Costs.  He was turned down but more importantly, the reasons were talked about after he left the room, and guess what….

What the board and Joe said, Was NOT in the OFFICIAL MINUTES….

Interesting … Why are the Board Members –SO– Opposed to Digitally Recording and sharing what they say in the Meetings???

Best regards, Neil

——————————————————————————–

From Leonard…..

Have you ever wondered what all our snowbirds do here in the winter besides walk on the beach and go play golf?  I have compiled a list from channel five and this may not be all events done in the resort.

• Shuffleboard is a big draw to our northern friends, they have leagues at the six Damon courts.
  • Monday Shuffle League
  • Tuesday Shuffle League
  • Wednesday Shuffle League
  • Thursday Shuffle League
  • Friday Shuffle League
  • Saturday Shuffle League
  • Sunday Shuffle League

  We are sorry that we don’t have more practice courts around the resort but maybe in the future.

• The exercise room is available 8-11 all week with a $10 deposit for a key
• Putt putt is available everyday but on Tuesday they have a miniature golf tournament at 1 pm
• They have social Tennis at all tennis courts, they meet regularly but I didn’t catch the times and dates
• Darts are on Tues and Thurs evenings
• Aerobics is every morning Mon – Fri
• Line dancing late morning on Weds & Fri
• Wood Carving on Thurs noon
• Crafts on Thursdays late morning
• Bridge on Wed & Fri
• Cribbage on Mondays
• Dance night every Tues evening
• Tai Chi on Tues
• Bid Euchre on Thurs & Sun

That is a good portion of their activities, we used to have water aerobics in the past so their is room for more activities. I believe it isn’t posted but their is Dominoes on Fridays. Bottom line is there is a lot to do here and the happy hours parties are all over the place.

Now for some assoc notes.

• There is a property Committee meeting March 15th at 1 pm at Grand Island Club House. I didn’t join this year so I may have to drop in as a guest, join me and lets see what is up.
• BOD meetings this year will be on April 17th, June 5th, August 21st, Oct 8th. Annual meeting is Oct 9th this year.   Don’t forget to put your name in to run to replace me on the board. We will be holding a special phone conference meeting in mid March to discuss and make funds available from reserves for these items if approved. I’ll let you know when it has been posted. Leonard

• Porcelain tile in conference center
• Resurface parking lot at new office building and new parking areas
• Two new golf carts for maintenance
• Two new heating and cooling systems for new building. The one large one that used to take care of our new office and Emerald Coast has bite the dust. Each section will receive a new unit instead of sharing.

Robert here….thanks Neil!   Folks, compare all of that to Deer Ridge – and the secrecy, insider deals, illegitimate activities, Master Deed and Bylaw violations, illegal board compensation, wasted money, attempted intimidation and complete lack of transparency by the current “board” and Joe Thomas.

It is past time for a change at Deer Ridge.  There is a MUCH better way to do things here, like Neil described.

Get rid of the current “board” members.  Get rid of Joe Thomas.

Donate to the Deer Ridge Litigation Fund by clicking the graphic below – or send a check to me made out to “Deer Ridge Litigation Fund.”

Thanks so much to those of you who have already contributed!

We already have a separate bank account set up for these donations which will only be used to help get us the injunction against this Asinine Assessment and to have  a judge force boards and general managers at Deer Ridge to abide by our controlling documents.  BTW, all contributing owners DO get to see all of THESE books and records related to the litigation!

Please donate today.  Thanks!

We have been told by several owners at Deer Ridge Mountain Resort that they are NOT going to make the March 1, 2010 assessment payment in light of the written legal opinion by Howard and Howard which states among other things, that the assessment if invalid for multiple reasons.

It’s Up To You

Your decision to pay or not to pay your portion of this Asinine Assessment is up to you and your own personal interpretation of the legal opinion.

However…

Do you really want to pay $1,700 to $2,750 of YOUR money this month that may be squandered by Joe Thomas and the “board” – or would you rather wait and see what we can all do together in court to stop what our attorney calls “Abuse of Power” by Joe Thomas and the “Board?”

Wouldn’t it make more sense to contribute to the Deer Ridge Litigation Fund – and get the injunction and the declaratory judgment from the court to finally get Deer Ridge under control and a real board that will comply with the controlling documents of GGRC?

Contributions are starting to come in – and we just opened a separate bank account today for all funds forwarded to us for this litigation.  We need your help in getting the injunction and to finally have a court irrefutably rule on the 13 major points that were covered in the Howard and Howard legal opinion.

Step 1:  Declaratory Judgment And Injunction

To get an injunction, we need to file a lawsuit asking the court to rule on the interpretations of the GGRC Master Deed and Bylaws.  We need your help with the legal fees that will be required to stop this assessment – and also to have the injunction and declaratory judgment provide for the full and complete return of monies paid in by owners who have already paid.

We ask that each owner join with us and contribute $1,000 to cover legal fees and court costs to finally get this stuff resolved.

If you can only do half of that amount or even less, those contributions would also be helpful and appreciated.  The more contributions by owners, the more that can be litigated and the more likely we will win the case.  (Bear in mind, absolutely nothing in court is ever a 100% sure thing!)

Our goal will be to also have the lawsuit go after recovery of all of our legal costs so those monies can be repaid to the owners who are willing to stand up and fight this fight.  You can pay securely online via credit card or echeck by clicking Donate or mail a check to me at A-202, 3710 Weber Rd, Gatlinburg, TN 37738.

Please make your check payable to “Deer Ridge Litigation Fund.”

This $1,000 is a LOT cheaper than paying the outrageous amounts ranging from $3,400 to $5,500 for this illegitimate “special” assessment. Any unused funds will be returned, pro rata, to those Deer Ridge owners who contributed.

Tired of The Way Things Are Done At Deer Ridge?

Right here, right now is the right place and time to finally stop all of the abusive practices of Joe Thomas and the “Board.”

Now is the time to finally force this “Board” and all future boards to FULLY abide by our controlling documents.

Now is the time to stop Joe Thomas and the “Board” from operating Deer Ridge as if it was there for their own personal use – with them all getting paid several thousands of dollars each year in improper and illegitimate salaries, expense checks and other benefits – all illegally paid to them by money they get from you and me!

The First Lawsuit

This will be the first lawsuit out of several that I expect will be forthcoming.  This one will stop the assessment and get a judge to rule on the RIGHT interpretation of our own Master Deed and Bylaws.  You’ve heard what my opinion is.  You have now heard the opinion of independent legal counsel.  Neither of these, no matter how crystal clear they are, is going to stop Joe Thomas and Luther Parker and the rest of the “board.”  Apparently, they all have way too much to lose if things are going to be interpreted by the Court the same way they are interpreted by independent legal counsel – and Joe and Luther are willing to squander even more Deer Ridge owners’ money to protect themselves and the illegitimate ways they have been doing things.

Hence, the need for this first lawsuit.

We believe that this first suit will be relatively straightforward and cost between $5,000 and $10,000 – depending on how much Joe and Luther are willing to fight their totally indefensible positions.   This amount does NOT count the legal fees that Joe and Luther will spend of GGRC’s money.  However, our intention will be, with our expected victory to turn around and file suit against Joe Thomas, Luther Parker and the rest of his “united Board” individually for their gross negligence in fighting this first suit.

Joe Thomas and the “board” have counted on the cost and time requirements of bringing a lawsuit being so much aggravation that no owner would actually do it.  Based on this, they have continued to increase their abuse of power to the point that they feel entitled to run Deer Ridge any way THEY want to – irrespective of Deer Ridge law.

Now is the time to finally stop them.  Now is the time to prove them wrong.

If you are tired of this abuse of power, tired of Joe Thomas operating Deer Ridge as if it was his own private property, tired of being overcharged, tired of being ignored, tired of being charged $50,000 for “nuts and bolts”, then NOW is the time to finally stop them – by joining with us in the lawsuit so that, once and for all, we can have a court give control of Deer Ridge back to the owners.

Please send your donations in today!

The Next Lawsuit – One Bedroom Owners Only!

Once we have gained victory with the first lawsuit, our intention is to immediately gather as many current and past owners of 1-1 units at Deer Ridge and individually sue Joe Thomas and each board member for gross negligence in overcharging all 1-1 units owners by 82% each and every month!   We calculate that just for our own unit, we are owed back over $10,000 they have stolen from us through this overcharge that Luther Parker calls “fair and equitable.”

Considering that there are 30 1-1 units at Deer Ridge representing 36% of ALL units, and considering all the past owners of 1-1 units that may have had to sell because of this illegitimate overcharge, we expect the size of this aggregate award might be massive.  And, since we will try to show that it was done ultra vires, that means we will be looking to get all of our money directly from Joe Thomas and each member of the “Board” personally.   So, we are not going to be suing ourselves – we will be suing them, jointly and severally.

However…

Attention all 1-1 owners – to get to this lawsuit, we need your help with the first lawsuit since one of the 13 major points is that all assessments (monthly HOA fees, water, cable TV, etc.)  must be paid in accordance with the Master Deed Percentages.  By winning just this one point with the first lawsuit, I expect to save $2,400 each year in overcharges  for my ownership at Deer Ridge.  If my calculations are right, all 1-1 owners will see this same $2,400 a year savings.

So, especially for 1-1 owners, it makes abundant sense to contribute $1,000 to the Deer Ridge Litigation Fund.

This second lawsuit will be based on the judge’s expected ruling that the “Board” could only charge in accordance with the Master Deed Percentages.

With that ruling in hand, this second suit will be for forcing the individual board members to pay us back all the aggregate overcharges each of us has suffered as a result of the gross negligence and abuse of power by Joe Thomas and the Board.  If each of your losses is about the same as my $10,000 in overcharges, it REALLY makes sense for you to participate in the Deer Ridge Litigation Fund.  Not only will you probably save $2,400 a year, but you could see a $10,000 plus payday.  Note though, this current account is strictly for the injunction and the first suit – and any unused funds will be returned pro rata to those participating.

The funds for this second lawsuit will be raised separately.  And, do your own arithmetic – since your numbers for everything may be better or worse than my own projections.

The Third Lawsuit – A Derivative Lawsuit Against Joe Thomas And The “Board”

The third lawsuit will probably be us suing Joe Thomas and the “Board” with GGRC as the plaintiff and each of them being named, individually, as the defendants for our HOA to reclaim from these individuals all the lost money that has been squandered by them exceeding their scope of authority.  Again, ultra vires to our rescue – and to make all of them responsible and accountable, personally, for their actions and inactions.

But more about THAT suit later – along with any and all other suits we may bring for any malfeasance we find once the court gives us the power to finally have copies of all the books and records for our own home owner’s association!

Note:  I am not an attorney, nor do I play one on TV – the above comments are my personal opinions and my interpretations of the legal opinion recently provided by independent attorneys reviewing out Master Deed and Bylaws.  Powered wig off

I strongly recommend you do NOT make your March 1, 2010 OR your 2011 “special” assessment payments to Deer Ridge.

Based on an independent legal counsel review of our Master Deed and Bylaws, his legal opinion is that this “special” Deer Ridge assessment is invalid for at least FOUR reasons:

1. The GGRC Master Deed and Bylaws do NOT allow for ANY kind of “special” assessment of any kind.  They only allow for monthly assessments that are set before December 1st of each year.
   
2. The amount of the assessment for every owner is WRONGLY calculated.  The “board” has applied what the attorney calls “arbitrary and capricious” cost allocations for ALL charges currently being paid by ALL owners at Deer Ridge.  This includes your monthly HOA fee, the amounts for water, cable TV, telephone AND the calculated amounts that are being charged for this “special” assessment.  The attorney says that ALL of these items MUST be in accordance with the Master Deed Percentages.  Hence, any amounts currently being charged to each and every owner for this “special” assessment is wrongly calculated and should not be made!
   
3. The “board” was required to provide COPIES of the detailed bid requests and bids to any and all owner to substantiate the Asinine Assessment’s outrageous $353,500 price tag – and NOT to just list, “Nuts and Bolts – $50,000!”  Since they were unwilling to do so, this assessment is voided.
   
4. The attorney has stated that the “board” is NOT the board.  The board is required to be elected at the annual meeting and the annual meeting is REQUIRED to be held in the first three months of the year – not in April.  The attorney states that the board is not the board and is powerless to implement ANYTHING.

For at least these four reasons, do NOT make your assessment payment for GGRC.  You can read the full legal opinion from outside counsel by by clicking Legal Opinion.

Declaratory Judgment And Injunction

Instead of each of you paying $3,400 to $5,500 for this illegitimate assessment, join with us in obtaining a court ordered injunction to legally STOP this illegitimate “special” assessment and get a declaratory judgment from the court that will force this “board” to finally abide by our Master Deed and Bylaws.

To get an injunction, we need to file a lawsuit asking the court to rule on the interpretations of the GGRC Master Deed and Bylaws.  We need your help with the legal fees that will be required to stop this assessment – and also to have the injunction and declaratory judgment provide for the full and complete return of monies paid in by owners who have already paid.

We ask that each owner to join with us and contribute $1,000 to cover legal fees and court costs to finally get this stuff resolved.  If you can only do half of that amount or even less, those contributions would also be helpful and appreciated.  The more contributions by owners, the more that can be litigated and the more likely we will win the case.  (Bear in mind, nothing in court is ever a 100% sure thing!)

Our goal will be to also have the lawsuit go after recovery of all of our legal costs so those monies can be repaid to the owners who are willing to stand up and fight this fight.  You can pay securely online via credit card or echeck by clicking Donate or mail a check to me at the address shown below and making the check payable to “Deer Ridge Litigation Fund.”

This $1,000 is a LOT cheaper than paying the outrageous amounts ranging from $3,400 to $5,500 for this illegitimate “special” assessment. Any unused funds will be returned, pro rata, to those Deer Ridge owners who contributed.

We have received several indications that monies already paid by owners into this “special assessment” are being squandered for other purposes – and we want to help make sure that all owners get all of their money back BEFORE it is completely squandered on a multitude of “uses” that were not even listed on the notice from the “board.”

Judge For Yourself

I have my opinions about things. Luther Parker and the “board” have their opinions about things.  Here, for the first time, we have a LEGAL opinion from an independent attorney about what is really happening with your investment at Deer Ridge.  The “board” has not shown any comparable, independent legal opinion.  I am not an attorney – and neither is any member of the “board.”

I invite you to read the entire five page letter from Senior Partner Lewis Howard, Jr. at the law firm, Howard and Howard (www.howardhowardlaw.com).

Also read my open letter to Luther Parker and the “board” titled “Independent Legal Opinion: GGRC Board Guilty Of Numerous Violations / $353,500 Assessment Is Null And Void” and judge for yourself and reach your own conclusions.

You can find both at www.DeerRidgeOwners.com.

Questions / Want To Help Block The Assessment With An Injunction?

Please contact me ASAP at litigation@deerridgeowners.com if you would like to help stop this illegitimate assessment.  Time really is of the essence on this!

With your help, we can stop what the attorney calls “the ongoing abuse of power” by the current “board” and return Deer Ridge to operating legitimately within the legal documents of our Regime.

It is past time to stop this “ongoing abuse of power.”

It is time to replace all of the current “board” with owners who will not abuse their power – and who will abide by the controlling documents of Deer Ridge.