# Aruba Ocean Club abuse by the Board



## marksue (Apr 1, 2011)

I hope that you are doing well, by now you should have received your proxy notice and agenda for the 2011 AOC annual meeting and I want to update you on 4 items.  I realize that this is rather long, but it will also be posted on our web site (www.aocconcernedowners.com for you to read at your leisure.  



1. 2011 Annual meeting - Aruba -  May 20, 2011 - I will be attending the meeting and look forward to seeing other owners on the Island, but if you are not attending you can write in my name on line 2 as your proxy and check the circle for number 3 .  If you have any items that you want mentioned at the meeting, please let me know at c20854@aol.com .  As you can see the Board and Marriott have changed the proxy form again limiting owners rights.       



Your selection for the Appeals Board is between two qualified candidates.  The appeals Board has never met and may never meet unless an owner is removed from ownership by the Board and appeals the decision.  Stephen Rossetti has been helpful to me and the concerned owners and if called upon will be very supportive.  I remember chatting with Mr, Lister and he seems responsive also.        

 ****************************************



2.  I have received the following report from one of our ownersThey have reviewed the current AOC Board of Directors 2010 expense reports.   Last year,he also reviewed the legal bills claimed by AOC and was given totals without any explanation or justification for the expenditures.  The Board to date have not addressed his valid questions.  

What he found here may be more troubling to you.   Here is the report



While we realize the time and effort that a Board member may spend there should be no reason why information other than personal data should be blacked out from a review by owners. My questions are: Who directed the General Manager to black out additional information and why ?  (The Board does not allow for photo copies of any documents - thus we had to take notes).  Why did the Board spend $1250, $500, and $215 for meals with their spouses in New York City staying at the Marriott Marquis in Times Square at a cost to owners of $500 per night.  Why were so many of the reports illegible?  Why were there no receipts for all expenses and who approved payment?   The Board reimbursement policy  (see below)clearly states that receipts must be submitted - who authorized payments without proper documentation and should the Board approve their own expense reports?  You be the judge.  




PLEASE TAKE NOTE:  We tried to review the BOD expenses the best we could.  Our manager of the Ocean Club Corey Guest had reviewed this report before they were presented to us for inspection .He was the person who blacked out the information on the reports. He knew that many of the reports were illegable yet he made no attempt to provide clean copies to us.  He e-mailed me that he blacked out the  "personal information"  understandable, but he blacked out more then the personal information, he blacked out the expense reports by line item, why would he do that ?  What was on those reports he didn't want us to see?  




The information below is what we saw on the expense reports. 
It might seem strange when you read these notes but please keep in mind ,we were trying to read the line items and so many were blacked out.




Each director claimed their $100 per diem per day per board policy and it averages around $1800 to $2000 for 2010.   We found that many of the expense reports had no receipts to back up the expenses charged. 




FRANK KNOX 




JANUARY 15, 2010 THRU JANUARY 18, 2010

ARUBA MARRIOTT HOTEL

JANUARY 15 2010  896.00 ****

DINNER AT PAPAMIENTO'S $690.81

JANUARY 16 2010  $410.00 (NO RECEIPT )

JANUARY 17 2010  $ 276.00 (NO RECEIPT)

TOTAL EXPENSE CLAIM $1480.00




JANUARY 15 2010 CAR RENTAL $141.00  (no receipt)

TIPS $15 AND PER DIEM $ 300  CLAIMS $456.00




APRIL 14, 2010 THRU APRIL 16, 2010 ORLANDO FLORIDA

CLAIMING $1361.00 ON EXPENSE REPORT

NO RECEIPT




MAY 19, 2010 THRU MAY 26, 2010 ARUBA ANNUAL MEETING

EXPENSE REPORT CLAIMS $937.00 FOR FOOD

EXPENSE REPORTS CLAIMS $800.00 FOR PER DIEM....8 DAYS

EXPENSE REPORTS CLAIMS $105.00 FOR EXCESS BAGGAGE

ONLY 1 RECEIPT FOR CAR RENTAL $179.00


TOTAL CLAIMED ON EXPENSE REPORT $2562.00



OCTOBER 10 2010 THRU OCTOBER 18, 2010 ORLANDO, FLORIDA

HOTEL $4805.00  receipt

CAR RENTAL $540.00

EXCESS BAGGAGE $75.00

EXPENSE REPORT CLAIMS $5019.00

NO OTHER RECEIPTS



DECEMBER  8, 2010 THRU DECEMBER 12, 2010  MARRIOTT MARQUIS NEW YORK CITY  

HOTEL RECEIPT $2000.00

DINNER DECEMBER 10,2010  $1250.00 

(NOTE ON EXPENSE REPORT RICHARD AND SPOUSE  ,M PERICOLOSI AND SPOUSE AND KNOX AND SPOUSE  *NO RECEIPT *

DECEMBER 11 2010  DINNER $215.00   NOTE ON EXPENSE   DINNER WITH R. DAVID - TOTAL CLAIMED ON EXPENSE REPORT $4181.00  

======================================================================================================

TONY LIFRIERI 



 JAN.15 THRU JAN 19 2010 PERIOD 

LIMO  Olympic Limo Service (receipt # 1896 ) FROM (DOBBYS FERRY NY TO JFK AIRPORT  AND RETURN FROM JFK TO HOME ) $291.00 

CAR RENTAL IN ARUBA  $ 258.00 (FROM AIRPORT IN ARUBA VISA RECEIPT)  
THE ONLY ITEMS I COULD READ ON THIS  EXPENSE REPORT WERE CAR RENTAL ,LODGING ,$100 A DAY PER DIEM PER DAY  TOTAL EXPENSES $1812.00.




MAY 19,2010 THRU MAY 24 ,2010  EXPENSE REPORT


EXPENSES BLACKED-OUT - RECEIPT ATTACHED CAR RENTAL $318.00


OLYMPIC LIMO  (ONLY DETAIL ON RECEIPT "NEWARK AIRPORT " $306.00  (TOTAL TIP $46.00 ). EXPENSE WERE A TOTAL OF $2196.00 THAT WE COULD READ AND COULD ONLY SEE THE FOLLOWING  EXPENSES $316.00   $625.00   $600.00 (per diem)

( I have Google WORLD TAXIMETER (INTERNATIONAL TAXIS FARES CALCULATOR ) to see what the cost would have been if Tony would have taken a Taxis from Dobbys Ferry to JFK Airport (26 miles ) .The cost inclued tip is $63.41 round trip x 2 = $126.82  .........Tony Limo at $291.00)




OCTOBER 10.2010 THRU OCTOBER 18 2010  Orlando, Florida 


TOTAL DOLLARS  ON EXPENSE REPORT  $2705 .00 

RECEIPT ATTACHED  AIR FOR TWO ,$873.00 \ 2  = $436.00  (ON EXPENSE REPORT THIS LINE ITEM( AIR ) WAS BLACKED OUT . DON'T KNOW WHAT WAS CLAIMED ON THE EXPENSE REPORT   


OLYMPIC LIMO #1298 OCT.18,2010  $360.00  (TIP $50.OO )    A FAX CONFIRMATION FROM THE LIMO COMPANY.


HERTZ RECEIPT $479.00  


$1430.00 CLAIMED WITHOUT ANY RECEIPTS IN THIS FILE.  EXPENSE REPORT WAS BLACKED OUT TO  REVIEW LINE ITEMS

=================================================================================================================




M.PERICOLOSI




EXPENSE REPORT  JAN. 13,  2010 THRU JAN.17, 2010

CLAIMING MILAGE OF 194.00    ($97.00 A DAY  IN THE US )


TAXIS EXPENSE CLAIM IN ARUBA OF $180.00 NO RECEIPTS

TELEPHONE EXPENSE IN ARUBA $124.00  AT HOTEL

MARRIOTT ARUBA HOTEL CHARGING $553.00 PER DAY.

PALAPAS FOR 3 DAYS CHARGED ON HOTEL BILL

PAID ON VISA $1791.00   TOTAL HOTEL BILL 2296.00   BALANCE ON HOTEL $0.00

TOTAL CLAIMED ON EXPENSE REPORT $1988.71 




JANUARY 12 2010  $ 268.00 FOR FAIRFIELD INN  AT JFK 

NO AIRFARE RECEIPT LISTED ON EXPENSE REPORT




MAY 19, 2010 THRU MAY 25, 2010  M. PERICOLOSI 

MILAGE EXPENSE MAY 19 2010  $ 61.00 CLAIMED ON EXPENSE REPORT

MILAGE EXPENSE MAY 25  2010  $61.00

TAXIS  EXPENSE ON REPORT 240.00  

HOTEL EXPENSE AT JFK AIRPORT $267.00 FAIRFIELD INN .

$180.00 IN TIPS CLAIMED ON EXPENSE REPORTS WITH NO RECEIPT    ********

ON MAY 25 ,2010 $70.00 IN TIPS IN ONE DAY.


HOTEL BILL$898.00

TOTAL EXPENSE CLAIMED $1633.00

NO AIRFARE CLAIMED.

SHE CLAIMS 700.00 IN PER DIEM




M.PERICOLOSI OCTOBER 8, 2010 THRU OCT.12, 2010

OCEAN CLUB   EXPENSE $1188.00 ( 297.00 PER DAY )

TIPS ON EXPENSE REPORT $120.00  WITH NO RECEIPT

CLAIMS 100.00 PER DIEM PER DAY ( $500.00 )

AIRFARE FROM NEWARK AIRPORT $692.00

*******COULD NOT READ EVERYTHING ON EXPENSE REPORT BECAUSE OF LINE ITEMS BLACKED OUT 




M. PERICOLOSI  NEW YORK CITY DECEMBER 9 2010 MEETING -MARRIOTT MARQUIS HOTEL TIME SQUARE  

CLAIMS ON  EXPENSE REPORT $968.00 (1 NIGHT)

FAX SENT  TO MHRS ARUBA OCEAN CLUB RE: EXPENSE REPORT  SUBJECT NYC EXPENSE REPORT  COMPLETELY BLACKED OUT,BY COREY.

HER HUSBAND IS WITH HER.

=========================================================================================





RICHARD STEVENS



MR. STEVEN'S EXPENSE REPORTING IS VERY LIMITED WITH FEW RECEIPTS SUBMITTED.



MAY 18, 2010 

EXPENSE REPORT CLAIMS $1174.00   ONLY LINE ITEM I COULD READ WAS AIRFARE $654.00



APRIL 12,2010 

CLAIMS $520.00

FLYS FROM SAN ANTONIO ON APRIL 12 TO DALLAS  ON APRIL 13 FLYS TO COLORADO SPRINGS ON APRIL 14 To DALLAS   THEN END UP IN ORLANDO LEAVES ORLANDO ON APRIL 15 TO DALLAS  ENDS UP IN SAN ANTONIO .




MAY 18,2010 TO MAY 23 2010 ANNUAL MTG

REPORT ILLEGIBLE  (BLACKED OUT )
HOTEL EXPENSE $635.00
CAR RENTAL $120.00
PACKAGE $60.00  San Antonio 
TOTAL EXPENSE $1474.00      NO RECEIPT TO SUPPORT EXPENSE CLAIM.



EXPENSES CLAIM ON ONE EXPENSE REPORT.


AUG. 2010 $124.00     APRIL 2010 $90.00   OCT 2010 $1426.00


TOTAL EXPENSE $1641.00   NO receipts  





EXPENSE CLAIM ON SECOND EXPENSE REPORT FOR OCTOBER 10 THRU 14 ,2010 


2 EXPENSE REPORTS SUBMITTED 


AIR $687.00 PLUS $150.OO   (FOR THE SAME TIME PERIOD ABOVE AIR FARE IS CLAIMED  AT $1426.00 AND THE OTHER EXPENSE REPORT  CLAIMS $687.00 PLUS $150.00 ) DOES NOT ADD UP TO $1426.00 ********(THE 2ND EXPENSE REPORT WAS  BLACKED OUT ON THE AIRFARE LINE. )


ARUBA MARRIOTT HOTEL BILL $2370.00




DECEMBER 8,2010  MARRIOTT  MARQUIS NEW YORK CITY  

EXPENSE REPORT BLACKED OUT.

LINE ITEM TAXIS $49.55 

DINNER $500.00

EXPENSE REPORT CLAIMS $1520.00 

NO RECEIPTS 




You now see how your Board of Directors are spending Ocean Club funds.  They have a fiduciary responsibility to every owner and should be subject to review by owners.  Why should they be so secretive?   We saw excessive rates at Marriott Hotels, if we cannot get a better rate, why not stay at another chain with better rates.  How important is it to get the Marriott award points ?  Why spend excessive funds for dinners and by going to New York City and Orlando?   I hope that you will join with me to challenge this Board on how they are spending our funds. Please review the Board approved expense policy and be the  judge as to whether or not they have adhered to it.  (note that the President or Treasurer can approve their own discrepancies)  We have seen how they have wasted $100's of thousands of dollars on legal fees and now this.  What is next?  No wonder they do not want owners to communicate with each other.


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## marksue (Apr 1, 2011)

*part 2*

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ARUBA OCEAN CLUB BOARD OF DIRECTORS
EXPENSE REIMBURSEMENT POLICY  (as approved by this Board 9/29/09) Replacing the old expense policy.  This one passed without owner approval allowed them to get reimbursed for 7 days in aruba vs 3.  basically they get a free weeks vacation vs the 3 days necessary for an owners meeting.




It is the policy of the Aruba Ocean Club Board of Directors to reimburse its Board Members for the reasonable expenses, which they incur to fulfill their duties and responsibilities as members in attending Board or Board sub-committee meetings. To that end, the following policy has been adopted:


******************

Lodging – Expenses will be reimbursed for up to seven (7) nights lodging. If space at Aruba Ocean Club is unavailable and a member elects to stay at a location other than another MVCI resort or if a member incurs no actual lodging expenses (uses own week/points), expenses will be reimbursed for the approved number of nights at the MVCI Board member rate.
*****************

Meals – Expenses will be reimbursed for up to eight (8) days. Expenses will be reimbursed at a per diem rate of $100/day. Receipts only required for meals or group events outside of the per diem and must be approved by the Board President.

*****************

Transportation – Airfare will be reimbursed at the lowest available non-refundable coach airfare rate for a ticket purchased at least 14 days in advance of the meeting if schedule for meeting allows. If the member drives a personal car, they will be reimbursed at the prevailing IRS reimbursement rate (currently .55/mile) for miles to and from the airport and for parking. Lodging costs en-route at a reasonable lodging rate will be reimbursed. (Not to exceed the cost of normal airfare and rental car cost). Cab fare to and from the airport is also reimbursable.

*********************
Car Rental – Expenses will be reimbursed for up to seven (7) days for a rental car plus actual fuel costs. Cab fare is reimbursable if member chooses not to rent a car.
Telephone/Postage/Reproduction/Miscellaneous – Related expenses will be reimbursed with proper proof of expense. (printing, notary charges, etc.)
**************************

Receipts – Submission of proper receipts will be required for all expenses to be reimbursed, with the exception of meals within the per diem and mileage.
**************************

Expense reports should be submitted to the DOF within 30 days of the meeting. 

**********************

Members will be paid the amount submitted to the DOF within 15 days: any discrepancies to the policy will be forwarded to the Aruba Ocean Club Treasurer or President for approval.


AB 09.29.09 BOD Meeting



********************************




3. Aruba Legal action - the Aruba Court finally ruled last week on our request to obtain the contact information for all owners. The decision has been translated from Dutch to English and is attached and will be on our web site www.aocconcernedowners.com.  Although the case only refers to my name - a list of 30 other Owners representing 13 states, Canada and Belgium were added to the court case by our attorney.  A verbal summary from our attorney was that the court restated our right to obtain the information retained in the Register of owners which we have, but that any email addresses were not available to us since they are under the control of the developer/manager.  



Although somethings may be lost in the translation, the judge did not address our concern that the mailing addresses in the register being in Aruba will not reach the owners.  Our request for the same method that management and the board use to reach each owner whether by mail or email addresses was our intent.  Any appeal of this decision is to the 3 judge Court of Appeals in Curacao and would take us off the island of Aruba which would be encouraging.   The court did charge us with legal fees of $3150 flors or about $1700.  Our total legal costs that has been shared by so many owners has been $7000 and makes you question the AOC claim of spending almost $200,000, Why ?.  



The Boards settlement offer has never acknowledged the misinformation that they have provided to owner, the unnecessary legal costs incurred, and the ability for an owner to send an uncensored correspondence to other owners.  The Board has never addressed our response.  Since the judgement the following letter was forwarded to the Board for a response.

     **************************************************



AOC CONCERNED OWNERS



March 23, 2011 

Dear AOC Board & Marriott Management:



As you know the Aruba Court affirmed last week that the Aruba Ocean Club (AOC) Board has the obligation to perform to the best of its abilities and allow owners the ability to make use of their democratic rights as owners and members of the Association.     



In light of this decision as owners and members of the AOC,  we want to make use of the Owner register to contact owners individually and uncensored.  Since the owner register has only the local Aruba addresses, we want to confirm that if you receive correspondence addressed to each owner at the local Aruba address that you will forward it to them in a timely fashion by the same means that you the Board and management communicate with the owners at their permanent address.



In the past, we have addressed letters to owners at the local Aruba addresses and the letters did not get returned nor were ever received by the owners. Since many Owners only use their villas once a year and many do not use them at all, in our attempt to provide vital uncensored information to all AOC owners and confirming the judges statement of our rights we would like confirmation on what you and Marriott Management will do with the letters. 



If we do not receive a response within 10 days, we will assume that you will not forward the letters.  Thus making our ability to communicate directly and uncensored with each owner impossible.

Sincerely, 


 Allan S. Cohen, on behalf of the AOC concerned owners 

9613 Eldwick Way
Potomac, Maryland 20854
e-mail: C20854@aol.com
301-299-4835 Fax
240-462-5000 Cell
301-299-2118 Home

 ******************************************

4.  The future:  The number of owners signing up on the concerned web site (www.aocconcernedowners.com  has greatly increased this year, but almost every day we find owners who are still unaware of the issues and are happy to join when informed.   I look forward to your insights as we continue to press forward in our efforts seeking transparency and full disclosure from Marriott and our Board of Directors.  We have a beautiful resort which we all have paid dearly for.  Let's make sure that our maintenance costs get under control, that our Marriott General Manager is responsive to the owners, remember he works for you and that we have a great vacation experience.  As we wait to see how the destination point program and the spin off affects us as owners, let's see what actions the Board takes at the annual meeting and how they address the court decision and the questions raised from the expense report disclosures.  







Note:  If you are can be in the Washington area and can attend the Friday, May 6, 2011 Marriott International meeting it will be informative as Mr. Marriott explains the spin off of the timeshare division to his stockholders.  I will be attending and if you need additional information contact me.  The meeting is at the JW Marriott in Washington and every stockholder has the opportunity to address Mr. Marriott and the Board for 2 minutes.  The spin off decision can have a great impact on all Vacation club resorts.   Stay tuned.   



 Please let your voice be heard.  I look forward to hearing from you.  Thank you - Allan


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## EducatedConsumer (Apr 1, 2011)

IF this data is accurate, based solely on my review of the data, and no accompanying narrative justification, this is an absolute disgrace to Marriott and the Board.

Before this issue reaches scandal, I believe the owners should demand an audit by an Independent Audit firm.


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## marksue (Apr 2, 2011)

I totally agree with you.  Why would the board have to meet in NY.  They couldn't do a video or conf call.  And why should the owners pay for the spouses.  If I go on a business trip I can not expense my spouses meals.  Something very fishy here.

Some of the expenses are valid, but they have taken advantage of the owners.  Guess that is why they don't want us talking to each other.


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## davidn247 (Apr 2, 2011)

EducatedConsumer said:


> IF this data is accurate, based solely on my review of the data, and no accompanying narrative justification, this is an absolute disgrace to Marriott and the Board.
> 
> Before this issue reaches scandal, I believe the owners should demand an audit by an Independent Audit firm.



Independent audit firm (producing an independent report) is the correct approach. I have been enough in audit, compliance and other financial management stuff to know that things could be differently interpreted as long as you do not have the full information/story.

I have heard about Aruba Ocean Club roof situation (do not know a lot about it), but maybe these expenses are linked to further meetings/investigations of BoD members on this topic. Who knows?

Keep asking questions (and... give the benefits of the doubt at this point!).


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## timeos2 (Apr 2, 2011)

That is pretty blatant and once again shows why OWNERS need to control HOA'S to properly monitor expenses. You cannot trust a developer/management company do do that correctly.  There are too many conflicts period.


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## SueDonJ (Apr 2, 2011)

All the bluster in the world won't mean a thing without expert support.  Review the governing docs with a qualified attorney to determine if what the board members have done here is in compliance.  If not, contest it as advised by a qualified attorney.  If so, and you don't like what the board members are able to do, follow the proper procedures (as stated in the governing docs and as practiced in the jurisdictions) to put forth a vote for an amendment which could change what's now allowed.  Everything else is just more noise.


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## timeos2 (Apr 2, 2011)

While I'm not one for conspiracy theories it is tough to make needed changes if the controlling group holds unfair advantage.  The control of the HOA was supposed to go the individual owners but, through their sometimes questionable actions, developers often find ways around that and keep nearly total control.  That appears to be the case here and the type of disclosure above shows how easy it is to abuse once you hold all control.  It is not right and owners are wise to try to change it OR bail out if Marriott refuses to act ethically and to the intent of the resort documents.


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## TJCNewYork (Apr 2, 2011)

As stated over here, the resort bylaws should spell out the details for annual meetings, budget meetings and special meetings including but not limited to notice requirements, quorum, voting method and place.  It would make sense that all resort bylaws follow a standard convention applied w/in the scope of local statutes, but several issues have surfaced at this resort suggesting otherwise.  Can anyone verify that the letter and intent of the AOC resort bylaws have been met or breached regarding this meeting?


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## TJCNewYork (Apr 2, 2011)

> Everything else is just more noise.


+1. If there are any AOC owners with a copy of the ByLaws, see the provisions under the article, "Special Meetings".


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## Lardan (Apr 2, 2011)

This is quite shocking to me. I would not imagine something like this would occur. I have nothing to do with this particular resort, but it sure makes me wonder about the ones I do.


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## Superchief (Apr 2, 2011)

Although I don't own here, I recall seeing Frank Knox's name on other BOD's (I'm almost sure he was on the BOD for Royal Palms in the past). I wouldn't doubt that he is abusing his board priveleges at those resorts as well, if expenses aren't being monitored. How should anyone expect that a person who abuses expenses in this manner will watch out for owners' interests in other matters.

These directors remind me of the former top executives at Westar.


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## EducatedConsumer (Apr 2, 2011)

A few of Mr. Knox's expenses caught my attention:

FRANK KNOX 

JANUARY 15, 2010 THRU JANUARY 18, 2010

DINNER AT PAPAMIENTO'S $690.81



OCTOBER 10 2010 THRU OCTOBER 18, 2010 ORLANDO, FLORIDA
OBSERVATION: October 10-18, 2010 is LOW SEASON in Orlando, with typically the lowest rates of the year. What kind of hotel room and how many rooms and/or other expenses charged back to the room could have cost $4805.00? Does Marriott not have a Special Rate for Board Members when they travel on association business? I won't even go down the road of all of the Marriott Rewards points that come as an ancillary benefit to these expenses.

HOTEL $4805.00 receipt

CAR RENTAL $540.00

EXPENSE REPORT CLAIMS $5019.00



DECEMBER 8, 2010 THRU DECEMBER 12, 2010 MARRIOTT MARQUIS NEW YORK CITY 

DINNER DECEMBER 10, 2010 $1250.00 
OBSERVATION: $1250.00 for 1 dinner for a party of 6, is that exercising one's fiduciary responsibility to the owners?
(NOTE ON EXPENSE REPORT RICHARD AND SPOUSE ,M PERICOLOSI AND SPOUSE AND KNOX AND SPOUSE *NO RECEIPT *


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## pharmgirl (Apr 2, 2011)

I find it odd that there is a per deim of $100 yet also expenses asked for
usually the per deim is in place of expenses or the limit that will be paid

disgusting abuse, verges on criminal But who approves this? this approver should be fired


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## windje2000 (Apr 2, 2011)

pharmgirl said:


> I find it odd that there is a per deim of $100 yet also expenses asked for
> usually the per deim is in place of expenses or the limit that will be paid
> 
> disgusting abuse, verges on criminal But who approves this? this approver should be fired



Pharmgirl, I agree with that observation.

I have no skin in this game, but what is unclear from any of these posts is whether or not the individuals are Marriott employees or owners.  

Either way, directors owe a fiduciary responsibility to the owners.  They are the watchdogs.  When the watchdogs are in cahoots with the managers, there is potential for abuse.  Blacking out pertinent info on the documents is a red flag.

Whether or not the expenses (and those of the spouses) are consistent with policy should be easy questions to resolve.

Note also that one could notify the IRS if the expenses are in fact reimbursements of impermissible non-business expenses.  Such improper expense reimbursements might represent taxable income to the recipients.  They almost certainly were not reported by the recipients as taxable income.

EDITED TO ADD:  The behaviors noted above are consistent with those of folks who would rather not have the IRS poking around their tax filings.

One other note on a comment about the size of the taxi fares - there's a NYC flat rate to JFK of $45 + tolls + tip.  Dobbs Ferry is in Westchester County, well north of The City.  Moreover, a Dobbs Ferry cab returns to Dobbs Ferry empty (and therefore charges for a RT) since that cab may not legally pick up in NYC.  There's no way the Google calculated cabfare is realistic.


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## MALC9990 (Apr 3, 2011)

I have no direct interest in this resort and its management and until now had taken only a mild interest in the law suit issue. However this information would lead me to suspect that the present board has much to hide and thus are desperate to keep Mr Cohen from getting access to the dirty secrets of their so called expenses.

This reminds me of the scandal in the UK of Members of Parliament expenses. MPs had a very lax arrangement of claiming "expenses" - that is until a national paper was sent details of all their claims over the years and exposed them for what they were. Now several have been jailed for fraud and the regime on expenses has been tightened s much that they are all squealing that they are being forced to suffer financial hardship.

Owners at this resort should insist on a full disclosure of all expenses and any breaches of the law should be punished.


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## lovearuba (Apr 4, 2011)

*Transparency*

Owners of this resort have been asking for transparency for years


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## ada903 (Apr 4, 2011)

I can't believe my eyes.  I work in local government and when I have to travel I am respectful enough of taxpayer money that I don't even ask for my $36 a day meal allowance or parking charges, and for shorter trips, gas is on me.  Those room, limo and dinner and other travel expenses are outrageous.  And that in addition to per diem!! Excess luggage??? My eyeballs are rolling out of my head.


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## dioxide45 (Apr 4, 2011)

EducatedConsumer said:


> IF this data is accurate...



No side benefits, eh? :ignore:


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## EducatedConsumer (Apr 4, 2011)

If the claims are true and the data are accurate, never would I have thought those antics were possible by anyone assuming the fiduciary responsibility of a Board Member, or by Marriott. Again, I question the accuracy of that reported by a Third Party, and I believe the owners must demand an Independent Audit by Nationally recognized Independent Auditors.  

I'm not sure which I find more disturbing, the suggested antics of the Board Members or the reported collusion by the General Manager of the Aruba Ocean Club. 

In any case, my litmus test tells me that the board's behaviors smell. One has to wonder how many other Marriott Vacation Club Boards operate in the same fashion as the Aruba Ocean Club Board.

If true, this is disgraceful. Imagine if Mr. Cohen finally had access to the owners addresses, what the owners, en masse, might think and have to say?

I keep wondering how this might play out with the Securities and Exchange Commission, given Marriott's position as a public traded company, but I go back to the actions of the Board, as actions of the Board, and not Marriott.


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## TJCNewYork (Apr 5, 2011)

> I go back to the actions of the Board, as actions of the Board, and not Marriott.


Not to split hairs, if you mean corporate, I agree.  However, as defined by the Management Contract, my take is that accountability is shared. BoD members must report expenses and submit receipts to the resort's Director of Finance (an MVC employee) w/in a specified time period.  She/he verifies the receipts and amounts before inputting them into the corporate reimbursement system.  It is my understanding that reimbursement checks are issued in Bethesda. 

If the SEC approves spinco, then spinco will internalize administrative processing.  My hunch is that increased owner involvement/transparency will be imperative to keep MFs in check. BoD expenses impact the operating budget.  Spinco's shareholders and investors are less likely to be involved in the day-to-day operations, but increased MFs fall on the backs of legacy owners.  From that standpoint, the business case for board-level owner representatives on spinco's BoD may have more merit.  Following best practices, spinco would retain a firm to conduct a search and identify potential candidates.


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## TJCNewYork (Apr 5, 2011)

> Owners at this resort should insist on a full disclosure of all expenses and any breaches of the law should be punished.


On a hunch, the appearance of abuse and excessive BoD expenses at this Caribbean resort is likely to be the tip of the iceberg.  Are the domestic BoDs exempt?  What about BoD expenses for resorts in Hawaii, Thailand, Spain and France?  Perhaps owners at all resorts should insist upon full disclosure?


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## marksue (Apr 5, 2011)

With the owners meeting coming up in May, will be intersting if the board even addresses the expenses.  Iam sure some owners will question and ask for an Independent Audit, but the board and Marriott will use the Parliamentarian to block any discussion.  Anytime any owner brings up suggestions or proposals they are either told it is out of order or voted against.


I would love to be at the May meeting.


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## dioxide45 (Apr 5, 2011)

marksue said:


> With the owners meeting coming up in May, will be intersting if the board even addresses the expenses.  Iam sure some owners will question and ask for an Independent Audit, but the board and Marriott will use the Parliamentarian to block any discussion.  Anytime any owner brings up suggestions or proposals they are either told it is out of order or voted against.
> 
> 
> I would love to be at the May meeting.



Can owners not request agenda items to be added to the agenda?


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## SueDonJ (Apr 5, 2011)

dioxide45 said:


> Can owners not request agenda items to be added to the agenda?



Yes, but there's an accepted procedure for doing so.  You can't just show up at a meeting and introduce a new topic because the agenda is determined in advance.  This is pretty much standard for all formal business meetings and why the Notices of Annual Meeting for MVCI resorts include an agenda. 

These MAOC owners have come up against both blocks that Marksue has mentioned - where an owner tried to introduce new topics mid-meeting they were denied by the Aruban Parliamentarian (hired to run the meeting in accordance with standard procedure and local statutes,) and, where owners' issues were submitted in advance and placed on the agenda, they were voted against during the meeting.

No doubt there's a particular procedure for getting this particular discussion - board members' expenditures - on the table, but Marriott is not going to make it easy for the owners by saying what the procedure is, and the best forum may not be the Annual Meeting.  This is just another in a long line of things where the owners can be best served by following the advice of a qualified attorney.


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## marksue (Apr 10, 2011)

*comments from marriott*

*Question*

I would like to confirm what you are saying in your e-mail.
 YOU have blacked out the personal information ,is that correct ?
Then Cory did you black out the expense items on some of the expense reports. Am I  correct ? I would like to know why you would black out these line items expenses on the expense reports
Also,there were a few reports that  are illegible . Why would you not provide me with legible copies after your review ?


*ANSWER*
Thank you for your follow-up email ; the request from your
Board and myself was that any personally identifiable information be
stricken out as customary. All items that included Account Numbers,
Marriott Rewards Numbers, Mailing Addresses, Email Addresses, Telephone
Numbers, Drivers License Information, Flight Locater Numbers, Ticket
Reservation Numbers, etc. were removed; this has been re-verified as
requested. Thank you again and have a wonderful day - 
*
FOLLOW UP QUESTION*
I realize that their personal information was blacked  out , but  
please take a look for yourself to see the line items that were also  
blacked out on the expense reports. Someone took the time to blackout  
these line items before they were sent to your accounting dept or they  

were blacked out in your accounting dept. and I would like to know who  
authorized this ?

*ANSWER*
Thank you again for your follow-up email ; please refer to my earlier emails regarding answers to your questions regarding this topic as they have been adequately addressed. If you are departing, please note that on Sunday's there is quite a bit of airline traffic and you may need to allow ample time through the airport and immigration as they have increased searches and security.


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## marksue (Apr 10, 2011)

Based on a review of the minutes on the Boards meeting in New York City at the Marriott Marquee (WHICH CAN BE FOUND ON  THE ASSOCIATION 'S OFFICIAL WEBSITE UNDER "NEWS" CLICK ON MEETING MINUTES. IT'S INTERESTING TO NOTE THAT IN THE MINUTES THEY DON'T MENTION THE HOTEL ONLY THE ADDRESS. I GUESS THEY DIDN'T WANT TO MANY OWNERS KNOWING WHERE THEY WERE STAYING.

THE MEETING STARTED AT 5:30PM  (JUST BEFORE GOING OUT TO A $1200.00 DINNER ) FINISHED AT 6:32 PM )1 HOUR AND 2 MINUTES MEETING.

THESE PEOPLE REALLY KNOW HOW TO SPEND OUR MONEY. $6569.00 FOR A MEETING THAT LAST 1HOUR AND 2 MINUTES


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## EducatedConsumer (Apr 10, 2011)

*Owners At All Mvci Resorts Have Cause To Be Alarmed*



marksue said:


> Based on a review of the minutes on the Boards meeting in New York City at the Marriott Marquee (WHICH CAN BE FOUND ON  THE ASSOCIATION 'S OFFICIAL WEBSITE UNDER "NEWS" CLICK ON MEETING MINUTES. IT'S INTERESTING TO NOTE THAT IN THE MINUTES THEY DON'T MENTION THE HOTEL ONLY THE ADDRESS. I GUESS THEY DIDN'T WANT TO MANY OWNERS KNOWING WHERE THEY WERE STAYING.
> 
> THE MEETING STARTED AT 5:30PM  (JUST BEFORE GOING OUT TO A $1200.00 DINNER ) FINISHED AT 6:32 PM )1 HOUR AND 2 MINUTES MEETING.
> 
> THESE PEOPLE REALLY KNOW HOW TO SPEND OUR MONEY. $6569.00 FOR A MEETING THAT LAST 1HOUR AND 2 MINUTES




Based on the verified and non-verified information presented thus far on this issue, it appears that the business practices and business integrity of Marriott Vacation Club and the HOA Board members warrant very careful analysis.

What's next, bills for "crossed out" extracurricular activities? 

I'd be curious to learn who the Marriott staff are (by name), and how many layers of them are associated with the Aruba Ocean Club Homeowner's Association? I think owners at every other Marriott resort have reason to be concerned, if the very people at Marriott who are involved in this situation are involved in the operation of their resort's Homeowner's Association.

And no, I am not a conspiracy theorist.


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## Tia (Apr 11, 2011)

Too bad this topic is hidden as I just stumbled on it , so many ts owners non Marriott  might benefit from reading such goings on. Power corrupts.


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## tombo (Apr 11, 2011)

marksue said:


> *Question*
> 
> FOLLOW UP QUESTION[/B]
> I realize that their personal information was blacked  out , but
> ...



What an unbelievable final response. He summarilly dismissed you and basically told you that it was time to get on your plane, go away, and leave him alone. 

Boards at most resorts and especially developer controlled resorts will never let owners have an owners list because they don't want the owners to be able to band together and stop practices like these. Criminal charges might be the only way to stop them from continuing what is basically theft of owners money for personal vacations. Lawyers can also be hired to sue the board for theft and misapropriation of resort funds, but it will end up being a bunch of legal arguments over whether these were allowable charges,what they do and do not have the right to spend, resonable and customary, etc,etc,etc.. Without lawyers and/or criminal charges the board might cut back a little on personal expenditure because of the efforts of Marksue (allan), but they will not resign, quit, or release any more information than they feel required to.

Most HOA's and ESPECIALLY corrupt HOA's hand pick their fellow board members. Complainers and those who they just don't like will almost never be elected because the current board gets to vote all of the proxies. Plus the current board members always tell every owner they see to vote for their chosen one and have nothing but wonderful things to say about their hand picked candidate(s). It is the good ole boys club where like minded owners who politic with the board and kiss their rear ends enough might be invited to join the board in the future when there is an opening. 

Marksue (Allan) will never get a proxy vote placed for him if he decided to run for the board again. In fact Marksue (Allan) would have a hard time even getting them to accept his resume and send it out to owners if he did decide to run for the HOA. Allan should still try to get elected to the board just to get their goat, but try knowing that he is running in a fixed election where his  oppostion controls what is probably the majority of the votes. 

Just as the ridiculous expenditures by the board is unnacceptable, so is their control of who actually becomes a board member, however changing either of these situations is doubtful if not impossible. They have control of the Resort's proxies and owner's lists. Without access to the owners by mail or e-mail, and without being able to garner a single proxie vote, the board is  a formidable if not unbeatable foe.


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## tlwmkw (Apr 11, 2011)

I am curious- did Allan observe these goings on when he was a member of the board?  This is the first time that these issues have come up and I wonder if this is a new problem or if it has been an on-going problem with this board at this resort.  My worry is that it is going on through out the system and we are all unaware of it.  I would love to hear what Allan saw when he was president and on the board.

tlwmkw


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## EducatedConsumer (Apr 11, 2011)

Naive question.

Is "MarkSue" Allan Cohen?


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## ilene13 (Apr 11, 2011)

EducatedConsumer said:


> Naive question.
> 
> Is "MarkSue" Allan Cohen?



NO, they are two different people


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## cbdmvci (Apr 13, 2011)

*My email to AOC Board*

From:
Xxxxxxxxxx Xxxxxxxxxx
xx Xxxxxxxxxxxxx St.
Xxxxxxxxxx, XX xxxxxx


To:
President and Board Members
AOC
Aruba Ocean Club

Dear Mr Knox and Board Members:

As a longtime and frequent member of Boards of various kinds answering to the public, I am predisposed to be skeptical of the vociferous concerns of unrelenting gadflies.  I have therefore before paid little attention to the endless Quixotic energies of Allan Cohen.

For that reason, I will again this year give my proxy to Mr. Knox.

However, I implore you to make a statement on ArubaOceanClub.com and include in the minutes of this coming May's meeting a reasoned response to the criticism made by Mr. Cohen and many others of what seems like outlandish Board t&e submissions in the past year.

Your failure to do so will likely have me joining the ranks of gadflies.  And I assure you that I have as much energy and resources as Mr. Cohen.

Sincerely yours,
Xxxxxxxxx Xxxxxxxxxxxx


If any other tuggers want to do similar, this is the email address provided on the Club's website:

aocbod@vacationclub.com


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## marksue (Apr 13, 2011)

*From a board member at a different resort regading expenses*

Just read the report on the Directors’ expenditures.  If I tried that on the Marriott Board I am on in the Western region,  I would be crucified.  We give a per diem for food of $50 for three days, and I have to submit receipts.  They give me a room for 3 nites, and pay 3 days of car rental.  Our board meetings in February and October are by Webinar, if I want to attend in person it is at my expense.  My average annual re-imbursement for attending the annual meeting is under $1000.  That includes my airfare, the car rental, parking my car at the airport and my per diem.  My hotel room is billed to the Association directly at a Marriott Associates rate of under $200.  Dinner with the board and spouses is not charged to the Association.


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## marksue (Apr 13, 2011)

cbdmvci said:


> From:
> Xxxxxxxxxx Xxxxxxxxxx
> xx Xxxxxxxxxxxxx St.
> Xxxxxxxxxx, XX xxxxxx
> ...



I hope they do respond, but I dont think any response can justify such outlandish expenses, especially with the advent of Webinars and Live meeting and other online related resources.

We look forward to you joining us .


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## marksue (Apr 13, 2011)

tlwmkw said:


> I am curious- did Allan observe these goings on when he was a member of the board?  This is the first time that these issues have come up and I wonder if this is a new problem or if it has been an on-going problem with this board at this resort.  My worry is that it is going on through out the system and we are all unaware of it.  I would love to hear what Allan saw when he was president and on the board.
> 
> tlwmkw



the answer is no.  When this board took over they changed the plan to cover 7 days not 3 as when Allan was in there.  daily per diem was raised to $100 a day. A lot was changed after Allan was there.  Allan always supplied reciepts and never paid for charged for his spouse.


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## marksue (Apr 13, 2011)

1.  At theDecember 9, 2010 New York Board Meeting held at 1177 Avenue of  Americas, which began at 5:30 p.m. and adjourned at 6:32 p.m. with a guest consultant from BB&T bank  they changed the Aruba Ocean Club investment policy and Investment company from Morgan Stanley/Smith Barney to Dana  Investment Advisors from Brookfield, Wisconsin.   The meeting expenses for the meeting lasting 1 hour and 2 minutes were over  $6,500 for hotel and dinners. 

The interesting part of this is Frank Knox, the president of the board, works for BB&T.  Sounds like a conflict of interest here.  You have to ask was this also a business expense?       Would love to know how much work Dana Investment does with BB&T.


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## EducatedConsumer (Apr 13, 2011)

marksue said:


> 1.  At theDecember 9, 2010 New York Board Meeting held at 1177 Avenue of  Americas, which began at 5:30 p.m. and adjourned at 6:32 p.m. with a guest consultant from BB&T bank  they changed the Aruba Ocean Club investment policy and Investment company from Morgan Stanley/Smith Barney to Dana  Investment Advisors from Brookfield, Wisconsin.   The meeting expenses for the meeting lasting 1 hour and 2 minutes were over  $6,500 for hotel and dinners.
> 
> The interesting part of this is Frank Knox, the president of the board, works for BB&T.  Sounds like a conflict of interest here.  You have to ask was this also a business expense?       Would love to know how much work Dana Investment does with BB&T.



The way the Aruba Ocean Club HOA reportedly works, I'm surprised they're not investing their money with Bernie Madoff.

With all due respect, if what is reported of the antics of the Aruba Ocean Club HOA is anything close to reality, I find the Board's spending despicable. While we do not own in Aruba, I am extremely concerned about a culture at Marriott that has the appearance of being devoid of business integrity. I do not believe for one minute that the behaviors of the Board at Beach Place Towers are the norm for Marriott; I think in the case of BPT, that Board has been able to manage Marriott, rather than Marriott managing the Board. Right off the bat, I can think of four or five Marriott resorts that we either own at currently or have previously owned at, where there's been almost no turnover on the board in years (I believe two Board President's that I know of have been on their respective Board's for 15 years), and Marriott has invested great energy to keep it that way.

If for no other reason, I credit Allan Cohen for finding the skeletons in Marriott Vacation Club's closet and for exposing them. Clearly, every Marriott Owner has cause to be on guard.


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## cbdmvci (Apr 14, 2011)

marksue said:


> 1.  At theDecember 9, 2010 New York Board Meeting held at 1177 Avenue of  Americas, which began at 5:30 p.m. and adjourned at 6:32 p.m. with a guest consultant from BB&T bank  they changed the Aruba Ocean Club investment policy and Investment company from Morgan Stanley/Smith Barney to Dana  Investment Advisors from Brookfield, Wisconsin.   The meeting expenses for the meeting lasting 1 hour and 2 minutes were over  $6,500 for hotel and dinners.
> 
> The interesting part of this is Frank Knox, the president of the board, works for BB&T.  Sounds like a conflict of interest here.  You have to ask was this also a business expense?       Would love to know how much work Dana Investment does with BB&T.



Wow!

Has Frank Knox travelled "a bridge too far?"

If this is true, this is the opening Allan Cohen has been waiting for.

His battle with Knox has been hampered by the screens of Marriott rules and Aruba laws.

But improprieties with BB&T?  BB&T is in Charlotte.  And banks don't like even hints of scandal.


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## Luckybee (Apr 14, 2011)

marksue said:


> the answer is no.  When this board took over they changed the plan to cover 7 days not 3 as when Allan was in there.  daily per diem was raised to $100 a day. A lot was changed after Allan was there.  Allan always supplied reciepts and never paid for charged for his spouse.



I know I could contact Allan for this but do you know(or does anyone else)  the amount of typical expenditures were for a board member when he was still on the board. ie; you indicated it was raised to $100 per day, what was it then ? Im not sure I have alot of trbl with $100 per day(with receipts of course since I wasnt aware that there was any company in the entire world that didnt demand them in order to pay per an expense acc't) to be honest...but I really dont get the 7 days at all(why are we paying for their vacations?)...but the add'l expenditures as per the report is beyond astonishing !

Let me add, for clarification...when I say I dont have trbl with the $100 per day I say that operating under the assumption, that is the only reimbursement for meals...Im not assuming add'l wine and dine 6* star meals including the spouse and any other buddies who they may decide to have join in !

And palapa rentals....huh ???? If board members are doing board business then who is the palapa for ? Let me guess...the spouse??


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## marksue (Apr 27, 2011)

Questions to the board

 On December 11, 2010 you charged to your expenses , dinner with a Mr. R. David . Would you please tell me who this person is and what relationship he has with the Board and the Association.

WHO IS THE ASSOCIATION INVESTMENT ADVISORY COMPANY?

THE INFORMATION I AM REQUESTING IS NOT ON THE ASSOCIATION'S WEB SITE AND YOU ...

THE INFORMATION I AM REQUESTING IS NOT ON THE ASSOCIATION'S WEB SITE AND YOU KNOW THAT COREY. YOUR EMAIL OF APRIL 20,2011 STATED THE PERSON WAS THE ASSOCIATION'S INVESTMENT  ADVISORY COMPANY. I WANT TO KNOW WHO THE INDIVIDUAL IS THAT HAD DINNER WITH MR KNOX ON DECEMBER 11 2011,HIS NAME IS R. DAVID . THE ADVISORY MENTION ON THE ASSOCIATION 'S WEBSITE IS MICHELE GAREY OF B.B.AND T CORP.


HERE IS THE ANSWER FROM THE BOARD

Go to the website the answers are there, yet there are no answers on the website.  The board refuses to answer any questions regarding the expenses.

This board continues to ignore the owners and take advantage of the owners.


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## EducatedConsumer (Apr 27, 2011)

marksue said:


> Questions to the board
> 
> On December 11, 2010 you charged to your expenses , dinner with a Mr. R. David . Would you please tell me who this person is and what relationship he has with the Board and the Association.
> 
> ...



Sadly, I do not believe that this is unique to the Aruba Ocean Club. I see increasing evidence of this at several other MVCI resorts. 

I once thought there might be some level of business integrity at MVCI, but I now doubt that.


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## timeos2 (Apr 27, 2011)

EducatedConsumer said:


> Sadly, I do not believe that this is unique to the Aruba Ocean Club. I see increasing evidence of this at several other MVCI resorts.
> 
> I once thought there might be some level of business integrity at MVCI, but I now doubt that.



Blind trust in ANY organization or brand name to be the seller, management and operator of any resort/system is asking for trouble. There needs to be an independent party to keep tabs of things and assure compliance with the rules/regs. Placing all the power with one group is an open invitation for abue. 

That's why most HOA's are set up to be under the control of the independent owners. When they are not or the owners fail to use their power of voting and control the temptation for this type of corruption is usually too strong and owners end up losing.  Here is a classic example of that problem. The owners need to get an independent Board and even better an independent management to keep Marriott in line. They can still have their name on the resort but they do not need to be the management company.  This is the clear result and abuse that occurs when that simple rule isn't followed.


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## SueDonJ (Apr 27, 2011)

timeos2 said:


> ... They can still have their name on the resort but they do not need to be the management company. ...



Isn't that sort of what's going to happen when the spin-off is transacted?  And now you want to add a third non-Marriott entity as the management company?  What possible incentive is there for either Marriott or the spin-off to keep the franchise brand on the property but forfeit the contracted 10% of MF management fee?

{eta}  Sadly I think complaints surrounding the BOD at this particular resort are going to continue for a long time.  It may eventually end up that the owners force a vote to remove Marriott (or the spin-off) and hire a new third-party management company, and there's nothing wrong with that because it can only happen with a stipulated-percentage majority decision.  But if that happens, I find it very difficult to believe that Marriott (or the spin-off) would agree to give franchise rights to the new managers.  Why would they?  Have they done it with any resort which had a contentious history with MVCI and was subsequently separated from MVCI?


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## timeos2 (Apr 27, 2011)

SueDonJ said:


> Isn't that sort of what's going to happen when the spin-off is transacted?  And now you want to add a third non-Marriott entity as the management company?  What possible incentive is there for either Marriott or the spin-off to keep the franchise brand on the property but forfeit the contracted 10% of MF management fee??



The resort would pay the franchise fee to the new Marriott spin off but the 10% management fee, already a totally unnecessary overhead expense, would no longer apply as Marriott would no longer be the manager. A wise and fiscally responsible Board, which they obviously do NOT have now, would pen a much more owner friendly management contract that required living up to the standards required to meet the franchise rules but do away with the wasted money paid for 10% overhead, no bid contractors, etc. In other words they would get maximum value for the dollar spent rather than throwing away 15-25% to useless and unproductive  fees to Marriott that does nothing for the resort or owners. Instead all those funds could go directly to the needed upkeep and upgrades while helping to hold total fees down not giving Marriott guaranteed income for the taking. 

Why on earth owner would want it any other way is beyond me. There is zero requirement that Marriott manage the resort to have it meet whatever standards are needed as franchisee's in many businesses do it everyday. All it is now is a cash cow to Marriott, virtually on demand, from the pockets of the owners. And as this recent revelation has shown an easy invitation to abuse by those that hold such unlimited and unchecked power. Stop it by putting a real owner controlled Board in place.

Why would Marriott "allow" it? Because the franchise fee is how they get their money. The management should NEVER be a requirement of that as it is completely out of line, anti-competitive and could even be against many anti corruption laws for the very reasons we see in these abuses.


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## dioxide45 (Apr 27, 2011)

How does an owner even go about asking for a breakdown of the BOD expense. I see the total amount in the audited financial results for our MGV resort but no breakdown. Do you just ask to see copies of the expense reports? Are they even obligated to provide that information?


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## TJCNewYork (Apr 28, 2011)

marksue said:


> Sounds like a conflict of interest



While what has been described in this thread may be completely legit in Aruba, Florida statute says that a director, officer, or committee member of an HOA, _*“may not in any other way benefit financially from service to the association.”*_  A legal interpretation of the 2010 Florida statute makes it very clear that "HOA directors, officers, or committee members:
cannot work as association employees;
cannot serve as a paid manager; and
cannot provide services through firms or business entities in which such persons hold a financial interest."
Let's connect-the-dots.  In order to be successful, Spinco will need $$$$$ from institutional investors...


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## TJCNewYork (Apr 28, 2011)

dioxide45 said:


> How does an owner even go about asking for a breakdown of the BOD expense.



For MGV (and any resort located in Florida) see the statute.


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## TJCNewYork (Apr 28, 2011)

timeos2 said:


> There is zero requirement that Marriott manage the resort to have it meet whatever standards are needed as franchisee's in many businesses do it everyday.



Wouldn't that pose a breach of contract?  One of the usage options that many MVC owners enjoy is trading their week for MR points.


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## dioxide45 (Apr 28, 2011)

TJCNewYork said:


> For MGV (and any resort located in Florida) see the statute.



Do you have that statute on hand? I can search it out if necessary.


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## timeos2 (Apr 28, 2011)

TJCNewYork said:


> Wouldn't that pose a breach of contract?  One of the usage options that many MVC owners enjoy is trading their week for MR points.



As DRI has proven there is no reason for the operator of a system such as MR points HAS to manage a resort/Association. Just like the franchise all you have to do is meet the minimum specs required and be affiliated.


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## MikeM132 (Apr 30, 2011)

I am not an owner here, but traded in about 18 months ago. I wrote A. Cohen, and he asked me to call him, which I did. This pertained to the January "group" in Aruba thing, if you're curious. Mr. Cohen seems to be a fantastic person and I sincerely wish every Marriott property had somebody like him around. The owners at Aruba Ocean Club could not possibly have a better advocate.


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## ilene13 (Apr 30, 2011)

MikeM132 said:


> I am not an owner here, but traded in about 18 months ago. I wrote A. Cohen, and he asked me to call him, which I did. This pertained to the January "group" in Aruba thing, if you're curious. Mr. Cohen seems to be a fantastic person and I sincerely wish every Marriott property had somebody like him around. The owners at Aruba Ocean Club could not possibly have a better advocate.



As an owner of 3 platinum weeks at the Aruba Ocean Club I wholeheartedly agree with you!!!!


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## dioxide45 (Apr 30, 2011)

timeos2 said:


> As DRI has proven there is no reason for the operator of a system such as MR points HAS to manage a resort/Association. Just like the franchise all you have to do is meet the minimum specs required and be affiliated.



One of the requirements could be a large up front fee to become a franchisee. This could easily keep away many/most new potential resort systems that don't already have a franchisee agreement (like SpinCo does). While it is possible that any resort can become a franchisee, in reality do you really see that happening at Marriott? IMO, it won't happen. Just because something can happen, doesn't mean it will.


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## TJCNewYork (May 1, 2011)

*It's Inevitable-Franchising is a Core Competency*



dioxide45 said:


> One of the requirements could be a large up front fee to become a franchisee. This could easily keep away many/most new potential resort systems that don't already have a franchisee agreement (like SpinCo does). While it is possible that any resort can become a franchisee, in reality do you really see that happening at Marriott? IMO, it won't happen. Just because something can happen, doesn't mean it will.



Historically, franchising is a core competency that spinco inherits from Marriott via their new chairman of the board as well as many senior executives who grew up in the ranks. We can wager that years from now, a paternity test will validate that. 

There is some info on the Marriott franchisee fee structure in the public domain.  While dated (2007) and applicable to Courtyard, Fairfield Inn, Residence Inn and SpringHill Suites, it isn't rocket science to venture a guess what the fee structure might look like should SpinCo take that path.

According to the 2007 Marriott franchisee fee structure, there are at least 4 components.  The amounts differ by brand:
Application Fee
Royalty Fee
Marketing Fund Fee
Reservation Fee
Considering that the Residence Inn brand offers efficiencies and suites resembling the lockoff units and villas that MVC offers including thermostat controlled HVAC and individual unit hot water heaters, it's a reasonable comparison.  

The upfront Application Fee for a franchisee considering opening a Residence Inn (with suites ranging from studios and 1 bedroom 1 bath up to 2 bedrooms with 2 baths and a full kitchens) was $50,000 or $400 per suite - whichever is greater - in 2007.  

Applying this fee structure to MGV with 1,616 units, the Application Fee (2007 $) starts at $646,400. Considering that this number does not factor in in-room washer/dryers, resort amenities like pools, fitness centers, golf courses, parking and other amenities, the $646,400 is undervalue.

The Royalty Fee for Residence Inn was 5.5% of Gross Room Revenue in 2007.  The Marketing Fee was 2.5% of GRR and the Reservation Fee is bundled with the Marketing Fee.  Considering all the fees, there is a real possibility that MFs will rise significantly under a spinco franchise model.

Last but not least, the 2007 fee structure is silent about fees pertaining to MR points.  There are MVC resorts that do not participate in MR.  It would be interesting to know what % management fee those resorts have.

Bottom line, opening up MVC resorts to franchisees is a business model that spinco can fully leverage.  More importantly, there are many franchisees who own and operate several Marriott brands (among others) who would jump at the opportunity to realize new growth in markets ripe for timeshare, increase their brand portfolio and grow revenues and shareholder value with a market leader.  Like Boston Custom House and Grand Chateau in Las Vegas, urban areas are ripe/ripening for development and investors have already been prepped.  

To the extent that DC points has transformed vacation ownership into a glorified, legal, elite rental program, spinco's future growth depends heavily upon offering franchise opportunities. 

It's inevitable.  The question is, how will spinco encourage legacy owners' confidence that there is a benefit and what role can TUGers proactively take to realize that?    Keep in mind that MVC does not yet have registration in New York to solicit for DC.  How interesting that the president of AOC schedules a finance committee meeting in New York at the Marquis for the purposes already well noted.


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## dioxide45 (May 1, 2011)

My thought would also be that if additional resorts became franchisees it wouldn't necessarily be through MVCI(SpinCo). The agreement would be directly through Marriott International. This would mean they could potentially be outside of SpinCo's control. Meaning they likely wouldn't have a chance at DC or may not have an exchange priority in II.

I think it would be wise for SpinCo to add other resorts under it's umbrella by buying management rights. That is where the money will lie and that is where the potential for new owners of DC points will come from. The bulk of their income will have to come from a fee based structure at Fred indicates. They won't be building out new resorts any time soon and don't want to acquire resorts that have unsold inventory that they have to sell.

The problem is that in order to bring the resorts under the Marriott name through SpinCo, the new resorts will have to upgrade and take on additional costs. I am not sure of many resorts that will want to put that burden on their owners just to hang the Marriott sign.


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## Bunk (May 1, 2011)

dioxide45 said:


> Do you have that statute on hand? I can search it out if necessary.



The Florida Law covering vacation and timeshare plans is Chapter 721 of Florida Real and Personal Property.  Section 721.13 relates to duties of management and recordkeeping.

Chapter 718 covers condominiums and Chapter 720 covers Homeowners Associations

It looks to me that timeshares that function as a condominium are bound by Chapter 721 and Chapter 718 but I am not certain as to that.

To find the Florida law, go to the Florida government website: 
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Index&Title_Request=XL  OR 
http://www.littleurl.net/0263e1
Search Statutes for the most recent year, and then go to Title XL and then the applicable Chapter and Section.


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## dioxide45 (May 1, 2011)

TJCNewYork said:


> Historically, franchising is a core competency that spinco inherits from Marriott via their new chairman of the board as well as many senior executives who grew up in the ranks. We can wager that years from now, a paternity test will validate that.
> 
> There is some info on the Marriott franchisee fee structure in the public domain.  While dated (2007) and applicable to Courtyard, Fairfield Inn, Residence Inn and SpringHill Suites, it isn't rocket science to venture a guess what the fee structure might look like should SpinCo take that path.
> 
> ...



From the statement in the recent quarterly report,



> While all terms of the transaction are not yet complete, post spin-off, the company expects the new timeshare company will pay a franchise fee to Marriott International totaling approximately 2 percent of developer contract sales plus a flat $50 million annually for use of Marriott's brands.  The franchise fee is also expected to include a periodic inflation adjustment.



it doesn't seem that the franchise fee for SpinCo will have the same structure as hotels operate under. The basic foundation of timeshare and hotels are completely different and utilizing the same structure probably wouldn't work. To start, there is no fee charged when an owner makes a reservation. A percentage of zero is zero.

Secondly, I don't think that SpinCo can sub franchise the Marriott name. MI will be earning the franchise fee from SpinCo. SpinCo will be paying the franchise fee to MI. There is no benefit from a franchise fee standpoint for SpinCo since the Marriott name doesn't belong to them. The benefit to adding new resorts would be the management fee.


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## cbdmvci (May 2, 2011)

MikeM132 said:


> I am not an owner here, but traded in about 18 months ago. I wrote A. Cohen, and he asked me to call him, which I did. This pertained to the January "group" in Aruba thing, if you're curious. Mr. Cohen seems to be a fantastic person and I sincerely wish every Marriott property had somebody like him around. The owners at Aruba Ocean Club could not possibly have a better advocate.



I have queried both the Board and MVCI on the "Great Marriott Ocean Club Board T&E Scandals of 2010" and have had nothing but non-responsive, ingenuous replies.

For this reason, I will this year, for the first time, assign "Alan Cohen" my proxy.

Of course, I do so without hope.  So few owners pay attention that change is substantially impossible.

The hubris of unchallenged power is an infuriating thing to have to watch.


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## Fredm (May 2, 2011)

TJCNewYork said:


> There is some info on the Marriott franchisee fee structure in the public domain.  While dated (2007) and applicable to Courtyard, Fairfield Inn, Residence Inn and SpringHill Suites, it isn't rocket science to venture a guess what the fee structure might look like should SpinCo take that path.



In response to this very question during the most recent conference call, Arne Sorrenson (Marriott's COO) stated that the 50mm + 2% franchise fee was arrived at by assuming a trajectory in line with its current franchise fee structure.

This appears to be the case, based on the assumption that the annual new contract sales rate is ~600-650mm.
All in, ~10%. As the 50mm is fixed cost (adjustable for inflation), this will look better or worse depending on future actual new contract sales.

This goes to say IMO, that new contract sales expectations for Spinco will be ~650mm. The objective will be to lower cost of sale as a means to enhance profitability in this sector.
Sales and marketing efficiencies obtained from selling points should help this along.
Carry costs are improving.
Inventory valuations have been written down. Replacement inventory will be at yet (much?) lower valuations.
All in all, Spinco's new contract sales should be reasonably profitable at the current run rate, IMO. Not a growth segment near term, but a profitable one.

BTW, I don't think the franchise fee can be directly applied to owner m/f's. 
These are governed by the OM contract. A separate contractual relationship with the owners from which Spinco gets its 10% off the top. 
That is not to say the OM contact will not be renegotiated at expiration. But, that's another discussion. Spinco can find all kinds of ways to extract fees from owners without messing with its OM contact.

Currently, OM fees are ~$165mm (back of the envelope). As it is "off the top" it is almost all profit. Quite an annuity that will only grow over time.

The 50mm franchise fee is a cost of doing business.


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## SueDonJ (May 2, 2011)

cbdmvci said:


> I have queried both the Board and MVCI on the "Great Marriott Ocean Club Board T&E Scandals of 2010" and have had nothing but non-responsive, ingenuous replies.
> 
> For this reason, I will this year, for the first time, assign "Alan Cohen" my proxy.
> 
> ...



I don't have any idea how much the small details matter when designating proxy but just in case, his name is "Allan S. Cohen."  His contact information is in the first post of this thread if you want to verify the correct spelling.  Good luck.


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## cbdmvci (May 2, 2011)

Thanks, Sue.  I'll be sure to fill in the proxy form accurately.


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## TJCNewYork (May 3, 2011)

Fredm said:


> BTW, I don't think the franchise fee can be directly applied to owner m/f's.  These are governed by the OM contract. A separate contractual relationship with the owners from which Spinco gets its 10% off the top.  That is not to say the OM contact will not be renegotiated at expiration. But, that's another discussion. Spinco can find all kinds of ways to extract fees from owners without messing with its OM contact.



By 'OM' contract, do you mean Operations & Maintenance'? Is this equivalent to the Management Contract?


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## TJCNewYork (May 3, 2011)

dioxide45 said:


> To start, there is no fee charged when an owner makes a reservation. A percentage of zero is zero.



Hotel guests aren't charged a reservation fee either.  It's the franchisee that is charged the reservation fee, since the transaction is processed through the MAR reservation system - among the most robust in the industry.




dioxide45 said:


> Secondly, I don't think that SpinCo can sub franchise the Marriott name. MI will be earning the franchise fee from SpinCo. SpinCo will be paying the franchise fee to MI. There is no benefit from a franchise fee standpoint for SpinCo since the Marriott name doesn't belong to them. The benefit to adding new resorts would be the management fee.



Thinking outside-the-box, SpinCo doesn't have to use the MAR name.  The Autograph Collection of boutique hotels launched in 2010 offered a new approach.  The well-known, historic hotel, The Algonquin on W44th in Manhattan is among the newest additions to the Autograph Collection as is the the newly built Cosmopolitan in Las Vegas.  Neither have added MAR to their namesakes. But both enjoy the marketing, special promotions and online reservations including free stays redeeming MR points as well as opportunities to earn MR points for qualified revenue spent and nights towards MR Elite status.  In fact, in response to market demand, MAR extended the capability to redeem and earn MR points at Ritz-Carlton late last year.  

SpinCo has already branded the Explorer Collection, among others and is poised to extend franchise opportunities following in the footsteps of the Autograph Collection, but in unique and innovative ways.  Historically, MAR's core competency is building brands, profitable franchise operations and increasing shareholder value.  

With the right leadership, Spinco can achieve the same.  IMHO, the leadership challenge is not how to create successful franchise operations, but how to restore confidence and trust among legacy owners.


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## dioxide45 (May 3, 2011)

TJCNewYork said:


> Hotel guests aren't charged a reservation fee either.  It's the franchisee that is charged the reservation fee, since the transaction is processed through the MAR reservation system - among the most robust in the industry.



The point was that franchisees are charged a franchise fee based on the total cost of a room booked by a hotel guest. When an owner stays in their owned villa, they don't pay any regular charges like a hotel guest would pay. So zero percent of zero means that MI really can't charge a franchise fee based on a percentage of the room cost.


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## Fredm (May 3, 2011)

TJCNewYork said:


> By 'OM' contract, do you mean Operations & Maintenance'? Is this equivalent to the Management Contract?



Sorry. Yes, OM contract is the Operations Management contract.


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## TJCNewYork (May 3, 2011)

dioxide45 said:


> The point was that franchisees are charged a franchise fee based on the total cost of a room booked by a hotel guest. When an owner stays in their owned villa, they don't pay any regular charges like a hotel guest would pay. So zero percent of zero means that MI really can't charge a franchise fee based on a percentage of the room cost.



Noted and understood.  Regrets if this seems to be a bone of contention, it is not intended to be.  

For business purposes, the transition from legacy to the new world of spinco actually started earlier than Feb 2011. In 2009, MAR merged all MVC resorts into the Hotel Category framework.  The result was to facilitate and expand the rental of deeded units within the transient rack rate, MR points structure and MR PointSavers to non-MVC owners.  See MR Point Chart

The inclusion of MVC units in the MR points redemption program also forced the introduction of Point and Paid Upgrades.  This was needed to differentiate a standard room from larger accomodations, which logically command a higher rate for rental, again to non-owners.

To make the move to Spinco even more profitable, under intensive lobbying from ARDA, the Florida legislature passed HB 61 which made it legal to rent timeshare units w/o tax liability.  See ARDA Wins Two For The Timeshare Industry.   

So aside from the franchise fees, Spinco stands to gain big time from buying up foreclosed deeded inventory built on the backs of legacy owners which it can in turn rent for sizeable sums.


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## TJCNewYork (May 3, 2011)

Fredm said:


> Sorry. Yes, OM contract is the Operations Management contract.



Thanks for the clarification.  FWIW, it's reassuring that the franchise fee(s) are bundled into the Management Agreement which is 10% off the top.  And, you are correct, that the terms of the Management Agreement could be negotiated at time of renewal.  Let's hope that respective BoD's communicate this to owners at large.


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## TJCNewYork (May 3, 2011)

Bunk said:


> The Florida Law covering vacation and timeshare plans is Chapter 721 of Florida Real and Personal Property.  Section 721.13 relates to duties of management and recordkeeping.
> 
> Chapter 718 covers condominiums and Chapter 720 covers Homeowners Associations
> 
> ...



For a 'comprehensive' listing of statutes outside the state of Florida, see Statutes Related to Homeowner Associations


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## Fredm (May 3, 2011)

TJCNewYork said:


> Thanks for the clarification.  FWIW, it's reassuring that the franchise fee(s) are bundled into the Management Agreement which is 10% off the top.  And, you are correct, that the terms of the Management Agreement could be negotiated at time of renewal.  Let's hope that respective BoD's communicate this to owners at large.



You could say that the 'franchise fee' is bundled in the OM contract. There will not be a line item, as such. But, the components are there nonetheless; reservation system, branding, standards, etc.

As the OM fee is 10% off the top, any increase in m/f's also subject to the 10% fee. Inflation somewhat drives increases. Hence, the 50mm franchise fee is also subject to inflation adjustment. MI wants a part of that windfall from sold inventory as of the spin-off date.

As the 50mm is an otherwise fixed cost, Spinco's impetus is to grow the number  of resorts/shares under management. 50 or 500 resorts. The same 50mm overhead. MI gets a 1x 2% of new contract sales, but MI gets nothing additional if Spinco places new resorts under its management umbrella.
Among other reasons, this is why I believe that Spinco will aggressively pursue expansion this way.


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## marksue (May 6, 2011)

*Months and no response*

I would suggest , Mr Knox that your expense reports are never questioned by Mr Ricardo Vrolijk Director of Finance of the management team (Marriott )He just forward you a cheque.  That just wonderful, you can spend owner's money,without any questions  and claim all  the expenses you want. LIKE A $1200.00 DINNER IN NEW YORK CITY( no receipt on expense report ) ,over weight luggage at airports May 19 2010 $ 105.00 , over weight luggage Oct.10, 2010  $75.00 ,  $600.00 dinner at Papamiento's Restaurant  plus a  $ 90.00 tip. I am sure the expenses you rack up for the Association .you would never do  at B B and T  CORP. and get away with this kind of abuse as president on the board in Aruba.

Come on FRANK own up to the fact you and the rest of the board are taking advantage of the owners.  I certainly hope you have an answer at the board meeting because it will be a big topic.  Oh wait you will prevent that from being brought up.  Your parlimentarian will make sure no owner who questions yours and the boards fiduciary duties is allowed to speak.


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## marksue (May 6, 2011)

*Well we got a partial answerf rom one board member, who is offended we asked question*

As stated previously, all reimbursed expenses are within the Association's policy, which means only expenses that I incurred in order to attend these Board meetings were reimbursed.  You are mistaken about the duration of my trips.  I stayed 4 nights at Aruba Ocean Club from Friday, Oct 8 - Tuesday, Oct 12 to attend the Fall Board Meeting, which mainly is to discuss and approve the budget and maintenance fee.  I stayed 5 nights in May 2010 to attend the Spring Board Meeting and Annual Owner's Meeting.  I stayed 4 nights in January 2010 to attend the Special Meeting.  It is standard practice for Board members to stay at the MVCI resort being represented.  Marriott typically charges a reduced Board member rate of about $160 per night at AOC, unless it is during a high demand time when it affects Marriott's rental pool.  Please also note that the policy allows up to 7 nights due to the length of travel time to Aruba and to afford Board members time on property to gain a better understanding of owners and management concerns. 



It is NOT an owner's right to know who a Board member chooses to share his or her room with, but I will tell you - no my husband and children did not join me on the October 2010 meeting in Aruba.  As a matter of fact, my children were not able to join me for any meeting in 2010.  As you know, I am a younger owner, who has school-aged children and limited vacation time from work, so it personally costs me money to attend Board meetings due to added childcare costs.





Your Board of Directors at Aruba Ocean Club give much of their personal time in order to represent the owners.  While the policy only covers Board member's travel expenses, it has been standard practice since the Board was formed in 1999 to have a dinner or event which may include Board members, Management and guests of Board members and Management.  Below is a picture of Allan's family on a sunset sail the Board, Management and guests enjoyed together after days of Board meetings.  A social dinner or event is standard practice throughout MVCI (and for most other non-profit organizations with volunteers) as a small gesture of appreciation for everyone's time and effort.




Over the past several years, your Board of Directors and Management Team has worked hard to give the owner's a resort to be proud of, while continuing to reduce costs and ensure our reserves are properly funded.  Given all the personal sacrifices I and the rest of your board have made to protect Aruba Ocean Club owner's interests, your line of questioning is quite offensive and a complete waste of Management's and Board member's time.




Regards,

Melissa Pericolosi


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## marksue (May 6, 2011)

*resposne and the questions not yet answered*

You Answered Part Of My Original Question




1.did You Invite Other Than Your Husband Relative ,friend ,parent .or Mother -in -law ?




2 .was Your Owner's Week At The Ocean Club Traded Or Points Used To Reserve This Time Period October 8,2010 Through  October 12, 2010? 

Or Did You Trade Your Orlando Owner's Week To Reserve At The Ocean Club?




3. Do You Request The Master Suite At The Ocean Club ?




Prior To The Approval Of The Changes To The Board Of Director's Expense Policy, There Were Two (2 ) Board Meetings May And July 2009 With No Mention Of The Board Of Director's Expense Policy Changes Or For That Matter No Discussion --  No Recorded  Meeting Minutes. 




Is This The Board's Policy Not To Have Discussions ,or To Record Meeting  Minutes When It Decides To Increase Their Benefits In Regards To Their Expense Policy ?????????




Don't You And The Other Board Members Think That The Owners Should Have A Vote On The Expense Policy Changes ,or You And The Other  Board Members Think That The Expense Policy Changes Are Too Petty To Have Owners Vote On ??????




In The September 29 ,2009 Meeting You Make A Motion To Adopt The Updated " Travel " Expense Reimbursement Policy  Dated September 21 2009, As Presented ,again With No Discussion Or Debate .the Motion Was Seconded By Steve Richards ( Who's Expense Reports For 2010 Have  Very Few Receipts ,to Back Up His Expense.)



These Meeting  Minutes Are Not Recorded Accurately.

The Policy Changes You Had Made Included More Than Travel Expense ,did They Not ???????




You Also Included In The Changes  To The Expense Policy That  "use Owner's Week / Points For Lodging And Expense Would Be Reimbursed For The Approved Number Of Nights "




I Can Not See How This Change In Lodging Policy Benefits The Owner's At The Aruba Ocean Club.




I  Believe This Is A Conflict Of Interest.board Members Who Use Their Time Share Or Stay At The Hotel,are Staying An Average Of 1 Week.the Meetings Last 1/2 Day.i Understand That Members, Would Have To Stay At Least 3 Days For Such Meetings In Aruba,but It Is Not Necessary For All Owners To Have To Pay For The Board Members' Added Vacation Days In A 5 Star Resort,with All Expenses Paid.




I Take Offence To Your Comments "that Owners Don't Have The Right To Ask You Or Other Board Members Questions"




Who Do You Think You Are.???? The Owners Elected You And The Board . Owners Put Trust Into Their Elected Directors And As Far As I Can See You And The Board Have Lost That Trust.




It Is Owners' Money You And The Other Board Members Are Spending And It Appears That You Are All Enjoying Every Penny Of It.




Directors Have A Fiduciary Duty To The Ocean Club Owners And So Do You. Owners Have The Right To Question Board Expenses,and Management.




You Had 14 Days In Aruba  (all Expenses Paid )and You Spouse Had 7 Days (all Expenses Paid Except Airfare ???? ) At The Ocean Club Or The Marriott Hotel.

A Five Star Vacation Paid For By The Ocean Club Owners.




1. Lodging, If You Invite Your Spouse Or Friends ,they Should Pay Their Share Of The Lodging.




2. Car Rentals, Are You Having You Meetings In The Rental Car ?????? Car Rental Should Be At Director's Expense ,not Owners. Cab Fare Is $40 To And From The Airport In Aruba




3. Meals, " Be It A Standard Practise To Have Dinners With Board Members" As You Stated In Your Reply To Me.




 Each Board Member Receives A $100.00 Per Diem,  To Cover Meals And  Incidentals .this Should Be Adequate To Cover Board Dinners . Spouses  Should Pay Their Way. If Marriott Management Wants To Join The Board , Then Give Them The Bill For Dinner. They Make A Large Profit From The Ocean Club.




*********alcohol Consumed By Board Members Should Be At Their Expense, Not Owners 




4. Transportation "cabfare To And From Airport Is Also Reimbursable"  As Per Expense Policy.




 Private Limo Services That Cost The Owners  $ 597.00 On  Two  Occasions That Our  "rock Star Director " Tony Lifrieri  Spent In Getting To The Airports In The U.s. To Attend The Meetings Is Unacceptable!







If You Feel My Line Of Questioning Is Offensive And A Complete Waste Of Management And Board Member's Time 




Review My Comments ,then Try To Tell Me I Am Wasting Your Time 




1. You Claimed $ 1160.00 On Your 2010 Expense  Reports With No Receipts . Over $500.00 Dollars For Two ( 2 ) Trips To Aruba.

    You Claimed On One Day ( 1 )  May 25 ,2010 A $70.00 Tip "  Big Spender " Again With No Receipts.




2.  You Claimed For Lodging And Airfare $ 3278.00 

      The Only Airfare Receipt In Your Expense Files That I Found Was From Newark $ 692.00

      No Other Airfare Receipts Were Found Which Leads To The Question How Did You Get Reimbursed  For The Other Airfare  Without A Receipt????? 




3.you And Your Spouse Stayed At The Marriott Marquis In New York City For Two ( 2 ) Nights At A Cost Of $500.00 A Night.




    You And Your Spouse Enjoyed Dinner With The Other Directors And Their Spouses In New York City That Cost The Owners Of  The Ocean Club $1200.00 




4. You And Your Spouse Participated In A $ 6000.00 Expenditure  ( Owners' Money ) For A Bogus Board Meeting In New York City That Lasted One Hour And Two ( 2 ) Minutes 




5. You All Received Air Miles Points And Marriott Rewards Points Plus Visa Points ,when You  Are On Board Business .these Points Should Be Used To Reduce Board's Expenses (lodging And Airfare ) 




6.you Have Received Over $10,000.00 In Benefits From The Owners Of The Ocean Club.




Question:  Do You And The Other Board Members Report These Benefits To The I.r.s. ????????????? 










 After Reviewing The Above Do You Really Think  My Questions Are Offensive And A Complete Waste Of Time ??????????




  I Do Not Think So And So Do Many Other Owners.




                                                          Your Expense Reimbursement Policy States




It Is The Policy Of The Aruba Ocean Club Board Of Directors To Reimburse Its Board Members For The Reasonable Expenses , Which They Incur To Fulfill Their Duties And Responsibilities As Members In Attending Board Or Board Sub- Committee Meeting.




                                                             Reasonable Expenses     Fulfill Their Duties      And Responsibilities  As Members




You And The Other Board Members Are  Definitively  Not Following The Expense Policy For The Aruba Co-operative Association Board Of Directors







This Kind Of Abuse By Our Directors Is Not Acceptable To Me And Many Other Owners Of The Aruba Ocean Club.







I Would Request That You Present This E-mail On The Aruba Ocean Club Site And Let Owners Decide Your Fate.









Do The Right Thing And Resign.......................................


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## EducatedConsumer (May 6, 2011)

marksue said:


> You Answered Part Of My Original Question
> 
> 
> 
> ...




SADLY, THE COMMUNICATION FROM THE BOARD MEMBER DOES NOTHING BUT CONFIRM HOW CORRUPT AND UNSCRUPULOUS THE BEHAVIORS OF THAT MEMBER/MARRIOTT ARUBA OCEAN CLUB BOARD ARE. AND I HAVE EVERY REASON TO BELIEVE WHAT WE'VE SEEN OF THE ARUBA OCEAN CLUB BOARD IS FAR MORE WIDESPREAD AMONGST OTHER MVCI HOA'S.


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## KathyPet (May 8, 2011)

Wow Mark Sue you have certainly taken this fight to a whole new level of vitrol and rudeness.  I have no dog in this fight but I fail to see any reason why you should demand to know who this Board member shared her room with.  As far as I know the units be they time share or hotel are charged by the unit not by how many people stay there.  Your demand that she tell you who she stayed with (assuming that person if any paid for their own addl expenses such as air fare, food etc) is just way over the top.  You do yourself and your cause no favors by posting this sort of beyond civil behavior.


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## dioxide45 (May 8, 2011)

KathyPet said:


> Wow Mark Sue you have certainly taken this fight to a whole new level of vitrol and rudeness.  I have no dog in this fight but I fail to see any reason why you should demand to know who this Board member shared her room with.  As far as I know the units be they time share or hotel are charged by the unit not by how many people stay there.  Your demand that she tell you who she stayed with (assuming that person if any paid for their own addl expenses such as air fare, food etc) is just way over the top.  You do yourself and your cause no favors by posting this sort of beyond civil behavior.



Mark is just a mouthpiece on TUG for Allen. So I don't believe these are Mark's words.


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## MikeM132 (May 9, 2011)

dioxide45 said:


> Mark is just a mouthpiece on TUG for Allen. So I don't believe these are Mark's words.


I don't think I would publish an accusation such at this. 
I think the AOC issues have been brewing for a long time, and this "BOD Expense" issue is only the latest one. Certain owners have been extremely unhappy with defective construction for a few years, at least. They know of other issues, too. 
I've said before, I am not an owner at AOC (stayed there one week---nice place). In my one personal dealing with A. Cohen, I found him to be extrememly knowledgeable, professional, and reasoned. I would be very surprised if Mr. Cohen is using someone to speak for him on an internet forum. That does not jive at all with the way he dealt with me (he invited a direct conversation).


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## MOXJO7282 (May 9, 2011)

I own at the Surf Club but my concern is that this maybe pervasive with all MCVI resort boards. I say this because to me it seems like its a problem with the policy and this person like some that would, is just taking advantage of the system. 

I work for a Fortune 100 company and it is of course mandatory for expenses over $25 to be fully disclosed. And we get a per diem for food and expenses. This to me seems likea big part of the problem if I've read all the notes right.


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## SueDonJ (May 9, 2011)

MikeM132 said:


> I don't think I would publish an accusation such at this.
> I think the AOC issues have been brewing for a long time, and this "BOD Expense" issue is only the latest one. Certain owners have been extremely unhappy with defective construction for a few years, at least. They know of other issues, too.
> I've said before, I am not an owner at AOC (stayed there one week---nice place). In my one personal dealing with A. Cohen, I found him to be extrememly knowledgeable, professional, and reasoned. I would be very surprised if Mr. Cohen is using someone to speak for him on an internet forum. That does not jive at all with the way he dealt with me (he invited a direct conversation).



I think it's a valid accusation to make because TUGger Marksue has a long history on TUG of posting communications from other people (most often, Allan Cohen) and sometimes not crediting the person.  It's easy enough to find out though - Marksue, were the questions in Post #74 written up by you or somebody else?

From what I've read on TUG I would agree that Allan Cohen has a good reputation for responding one-on-one to anybody, AOC owner or not, who contacts him directly with questions and concerns.  But at the same time, a great deal of his communications have been copied to TUG by other people and he does not as a rule respond on TUG to any of the follow-up questions generated by his missives.  Again based on all I've read on TUG, it's not unreasonable to say that there are mouthpieces who act for Allan on TUG, and TUGger Marksue is at the head of that list.  Whether Allan approves of it is anybody's guess because he's never acknowledged that it happens on TUG.

Anytime something comes up about Aruba Ocean Club it's too easy to lump it all in together with that monster thread but to me this business of possible fiduciary abuse of BOD expenses is an entirely separate thing.  I don't think it's ever wrong for owners to question MVCI/BODs/GMs about things pertaining to their ownership, and with this particular situation at AOC it appears the BOD is being less than forthcoming.  It's odd considering that they have responded repeatedly to the other issues brought up in that monster thread.  It'll be interesting to see how this all plays out, if we ever hear all sides of the story.

I do wonder, though, why anybody takes what's being said in this thread and automatically assumes that similar alleged abuse must be happening on a widespread basis throughout all MVCI resorts.  It's one thing to have access to reports that lead you to the conclusion; it's an entirely different thing to expect that every BOD member volunteers for the position just to screw over the owners.  That assumption can only keep good people from wanting to serve.


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## marksue (May 9, 2011)

KathyPet said:


> Wow Mark Sue you have certainly taken this fight to a whole new level of vitrol and rudeness.  I have no dog in this fight but I fail to see any reason why you should demand to know who this Board member shared her room with.  As far as I know the units be they time share or hotel are charged by the unit not by how many people stay there.  Your demand that she tell you who she stayed with (assuming that person if any paid for their own addl expenses such as air fare, food etc) is just way over the top.  You do yourself and your cause no favors by posting this sort of beyond civil behavior.



Your are correct that I have No Respect or consideration for a board member who has no regard for the Owners of the Aruba Ocean Club . My comments by any means aren't hostile.My criticism is reality . The board's expense abuse  is reality. Why should owners pay for Board Members spouse's or friends? Why should they enjoy a 5 star vacation at the owner's expense?
I would suggest you review the response to Melissa one more time , focusing on the expense abuse Thank you


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## marksue (May 9, 2011)

SueDonJ said:


> I think it's a valid accusation to make because TUGger Marksue has a long history on TUG of posting communications from other people (most often, Allan Cohen) and sometimes not crediting the person.  It's easy enough to find out though - Marksue, were the questions in Post #74 written up by you or somebody else?
> 
> From what I've read on TUG I would agree that Allan Cohen has a good reputation for responding one-on-one to anybody, AOC owner or not, who contacts him directly with questions and concerns.  But at the same time, a great deal of his communications have been copied to TUG by other people and he does not as a rule respond on TUG to any of the follow-up questions generated by his missives.  Again based on all I've read on TUG, it's not unreasonable to say that there are mouthpieces who act for Allan on TUG, and TUGger Marksue is at the head of that list.  Whether Allan approves of it is anybody's guess because he's never acknowledged that it happens on TUG.
> 
> ...



Some of the posts are mine some are others I have been asked to post.  Specifically post 74 is a response from someone else.  I would not post anything I did not agree with nor what I had no information on.


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## KathyPet (May 10, 2011)

Unless you can convince me that who the BOD member shared their room with in any way increased the amount of money that was charged to the HOA for this Board Member's expenses it does not matter whether the BOD member slept in the room alone or with the entire US Water Polo team.  A room charge is a room charge.  The charge is the same whether one person occupies the space of multiple people occupy the space.  So what difference does it make how many people slept in that room and who they were?   As liong as the other expenses for that person or persons such as food and beverage for any other occupants of the room were not paid for the the HOA I see no reason why this information needs to be revealed.  If the BOD member took a taxi from the airport to the hotel and that is a flat charge per taxi from 1-4 people would you demand to know who else rode in the taxi?   The charge is the same no matter whether 1 person or 4 rode in the taxi or stayed in the room and you have stepped way over the line in demanding to know this information.


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## dioxide45 (May 10, 2011)

One concern I have is that Melissa is also on the Grande Vista board.


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## lovearuba (May 12, 2011)

*website*



SueDonJ said:


> I don't have any idea how much the small details matter when designating proxy but just in case, his name is "Allan S. Cohen."  His contact information is in the first post of this thread if you want to verify the correct spelling.  Good luck.



www.aocconcernedowners.com

Allan's information is on the front page, no need to register to get it.


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## lovearuba (May 12, 2011)

*and you are a mouthpiece for Marriott*



SueDonJ said:


> I think it's a valid accusation to make because TUGger Marksue has a long history on TUG of posting communications from other people (most often, Allan Cohen) and sometimes not crediting the person.  It's easy enough to find out though - Marksue, were the questions in Post #74 written up by you or somebody else?
> 
> From what I've read on TUG I would agree that Allan Cohen has a good reputation for responding one-on-one to anybody, AOC owner or not, who contacts him directly with questions and concerns.  But at the same time, a great deal of his communications have been copied to TUG by other people and he does not as a rule respond on TUG to any of the follow-up questions generated by his missives.  Again based on all I've read on TUG, it's not unreasonable to say that there are mouthpieces who act for Allan on TUG, and TUGger Marksue is at the head of that list.  Whether Allan approves of it is anybody's guess because he's never acknowledged that it happens on TUG.
> 
> ...



The pot calls the kettle black


----------



## Superchief (May 12, 2011)

*Compare BOD Expenses Between Resorts*

I assume that these expenses would all be included in the 'BOD Expense' breakout for the annual MF. It would be interesting to compare the BOD amounts between resorts. When I receive my yearly breakouts, I usually focus on the comparisons to prior year and to budgeted amount. I am now going to compare the BOD between resorts to help identify situations like what is happening in Aruba.

This sounds like a project for Matt.


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## SueDonJ (May 12, 2011)

KathyPet said:


> ... it does not matter whether the BOD member slept in the room alone or with the entire US Water Polo team. ...



:hysterical: :hysterical:  I've gotta admit this made me laugh right out loud.  Plus, for the first time I think it's relevant to use the "so random!" that my teen nieces and nephews blurt out eighteen times a day.


----------



## SueDonJ (May 12, 2011)

lovearuba said:


> The pot calls the kettle black



I'm not sure I understand this.


----------



## dioxide45 (May 12, 2011)

SueDonJ said:


> I'm not sure I understand this.



You need to also read the title of the post by lovearuba "and you are a mouthpiece for Marriott".


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## SueDonJ (May 12, 2011)

dioxide45 said:


> You need to also read the title of the post by lovearuba "and you are a mouthpiece for Marriott".



Well, I suppose it's easier to just think that, instead of focusing on the specific criticisms I've given to certain actions the "concerned owners" have taken which hurt their cause rather than helped it, or on the resort's governing docs which stipulate Marriott's and the owners' rights and limitations.


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## SueDonJ (May 12, 2011)

dioxide45 said:


> One concern I have is that Melissa is also on the Grande Vista board.





Superchief said:


> I assume that these expenses would all be included in the 'BOD Expense' breakout for the annual MF. It would be interesting to compare the BOD amounts between resorts. When I receive my yearly breakouts, I usually focus on the comparisons to prior year and to budgeted amount. I am now going to compare the BOD between resorts to help identify situations like what is happening in Aruba.
> 
> This sounds like a project for Matt.



How can an owner get access to the "breakout" reports?


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## dioxide45 (May 12, 2011)

SueDonJ said:


> How can an owner get access to the "breakout" reports?



The BOD Expense is a line item listed on the annual budget information that is usually included with your annual meeting/proxy information.


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## SueDonJ (May 12, 2011)

dioxide45 said:


> The BOD Expense is a line item listed on the annual budget information that is usually included with your annual meeting/proxy information.



Yes, and like Superchief says with access to the annual budgets you can compare that total amount year-to-year at a single resort as well as to all other resorts.  But I'm asking about getting the "breakout" report which Superchief mentioned and is what prompted this thread - somehow an owner at MAOC got his hands on a copy of one or more of the BOD members' detailed expense reports.  How does an owner get that?


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## dioxide45 (May 12, 2011)

SueDonJ said:


> Yes, and like Superchief says with access to the annual budgets you can compare that total amount year-to-year at a single resort as well as to all other resorts.  But I'm asking about getting the "breakout" report which Superchief mentioned and is what prompted this thread - somehow an owner at MAOC got his hands on a copy of one or more of the BOD members' detailed expense reports.  How does an owner get that?



I think Superchief was referring to the BOD breakout line item that everyone can see on their annual financials, not individual expense reports like was obtained by the AOC owner. I think to get those you just have to ask your BOD. They aren't freely available for all to see unless you request them.


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## cbdmvci (May 27, 2011)

*Allan?*

Allan Cohen advised earlier that he intended to attend the AOC BOD Meeting scheduled for last week ... and especially promised to query the board on the subject of the outragious BOD t&e submissions of last year.

But I don't yet see either here or on Allan's AOC Concerned owners website any report yet on the meeting.

Allan?


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## lovearuba (May 29, 2011)

*new posting on website*

Hi
I just posted a recap of the meeting on the owners website.

www.aocconcernedowners.com


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## ilene13 (May 29, 2011)

lovearuba said:


> Hi
> I just posted a recap of the meeting on the owners website.
> 
> www.aocconcernedowners.com



I just read the update and for those non owners and owners who feel that Allan is out of line it was interesting to read an update that was written by an owner who just happened to be there for her vacation.  As an OC owner I want to thank Allan Cohen for his continual and persistent work on our behalf.


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## marksue (Jun 2, 2011)

*more expense crap by the AOC president*

I   hope that they will read this and let the Board and Mr. Marriott know what   they think about what is going on.  No words   can express my shock with what I   witnessed.    Owners can write to the AOC Board of Directors, Mr. Marriott, President Arnie   Sorenson and the MI board of Directors c/o Board   secretary, Bancroft Gordon at:  bancroft.gordon@marriott.com,   Arne.Sorenson@marriott.com,    aocbod@vacationclub.com,  


My   wife and I had reviewed all the expense reports of the AOC Board of   Directors in March, 2011 which were presented to us.  We had   been assured by Corey Guest General Manager that these were all the   documents for our review.  After reviewing them and questioning the lack   of receipts, the blacked out items etc. I requested another review   including the 2008 -2009 - 2010 Board expenses as well as the legal   expenses for 2010 be available for review prior to the May 2011 annual   meeting. 

A   meeting was arranged on May 19, 2011 and was attended by Ricardo   Vrolijk (MVCI Director of Finance for the Ocean Club), myself, Allan   Cohen and one other owner, the meeting started at 3 p.m. in the   lobby of the Marriott Hotel.  Upon being presented the files   by Ricardo, I immediately questioned "are these the same director   expenses I reviewed in   March ?  The answer “NO,   these are my files” and   I was in Orlando during your March visit - these files are always   available, if General Manager Cory Guest would have phoned me I would of   told him where they could be found in my office at the Hotel. 


The   expense report documents that were presented in March 2011 for my wife   and I to review were compiled by our General Manager Cory Guest   who had blacked out line items in addition to personal   information.   Cory at that time said that the expense files were   not kept in   Aruba but were at MVCI offices in Knoxville,   Tennessee.  (at that time I had no reason not to believe Cory, we   now know that this is not   true)

Again,   when the Director of Finance was questioned on the legal expense   files "are these the same files that I reviewed in March, Ricardo's   response was  "ALL MY FILES ARE THERE FOR YOUR REVIEW " We now know   that the original documents reviewed by me in 2010 were edited   by Cory Guest.   Were these actions taken by Mr. Cory   Guest alone or with the consent and approval of MVCI executives and   the Board ? - We do not know ?

When   Mr. Cohen requested from the Director of Finance the original Board   expense reports that we had reviewed in March 2011, he was told that the   originals reports prepared by our General Manager Cory Guest had been   "destroyed" 


********IMPORTANT   TO ALL OWNERS OF THE ARUBA OCEAN CLUB TO READ ***********


The   following is one example of what I found in the new documents:





Board   President Frank Knox's expense report for October 11-18, 2010 (1 week) for a   total expense of $5019.44 





E-MAILS   IN MR FRANK KNOX FILES AS OF MAY 19,2011. SEEN BY THREE OWNERS, (I HOPE THAT THESE E-MAILS HAVE NOT   BEEN DESTROYED BY NOW) 


1.   E-MAIL FROM F. KNOX TO RICARDO VROLIJK  DEMANDING EXPENSE PAYMENT OF   $5019.44    FED-X TO HIM .


2.   E-MAIL FROM R. VROLIJK TO  FRANK KNOX  QUESTIONING THE ADDITIONAL   ROOM MR. KNOX RESERVED  AT A COST TO THE ASSOCIATION  OF $1783.60 .   MR KNOX REPLY "NEEDED ROOM FOR BOARD MEETINGS" (ONE WEEK ?) NO   RECEIPT 

3.   E-MAIL FROM CORY GUEST TO FRANK KNOX,  cc. RICARDO VROLIJK    ."IF YOU NEEDED A MEETING ROOM WHY DIDN'T YOU CONTACT ME ? YOU KNOW THAT   OCEAN CLUB OWNERS CAN REVIEW YOUR EXPENSES . YOU SHOULD NOT APPROVE YOUR   EXPENSES ,HAVE MELISSA PERICOLOSI APPROVE THEM."

4.FROM   F. KNOX TO CORY GUEST . "I WANT MY EXPENSE MONEY, I HAVE PAID MY   VISA"


5.FROM   CORY GUEST TO RICARDO VROLIJK  cc. FRANK KNOX  "PLEASE SEND A CHECK   FROM THE ASSOCIATION ACCOUNT IN THE AMOUNT OF $3235.84 (GL# 136340-0430-D701).   PAY $1783.60 FROM MVCI ACCOUNT (GL# 136340-0430-D329).


It   seems clear that this room payment was made with the full knowledge   and consent of the Association's Secretary/Treasurer Melissa Pericolosi,    General Manager Corey Guest and his superiors at MVCI, all at the request of   our President Frank Knox, MVCI Ocean Club.     IF   YOU would like to confirm this yourself - then any owner going to the   Ocean club (you must give them 72 hours notice) can request to review Mr.   Frank Knox expense reports as well as other   Board   members and look for the emails from Mr. Frank Knox to Finance Director   Ricardo Vrolijk, from Ricardo to Mr. Knox, and from Corey Guest to Mr.   Knox. cc. Ricardo.



Note   also that Mr. Knox rented a full size Dodge Caravan during this October   stay.  Owners you guess why - to hold Board meetings ? We   must insist on our annual meetings being video taped and   skyped allowing for owner participation and all Board meetings be   recorded and open to any members review .


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## marksue (Jun 2, 2011)

*minbutes from Owners meeting*

Another   year and another new low to the antics by the Aruba Ocean   Club   Board of Directors and Marriott Vacation Club International   (MVCI) at   the   2011 Aruba Ocean Club annual meeting.  





I   really believe that the MVCI executive staff in conjunction   with our Board of Directors continue to take the position that any owner   who has questions or concerns should be ignored.  The   continued lack of total transparency and the refusal to   provide answers   to   owners   legitimate questionsis   troublingand   continues to breed mistrust with a growing number of owners.  Yet,   Marriott and this Board seems to have little concern about owner rights, the   Boards spending, its lack   of documentation and feeling   of entitlement.   Marriott’s continuing actions in Aruba to do what it wants regardless of owner   interests is just plain inappropriate and unfortunately this Board just seems   to go along as a rubber stamp. 


Unfortunately   the owner turnout was very small at this years annual meeting which is   understandable considering several factors including the   cost involved to attend a meeting in Aruba.  I estimate that it cost me   around $1,000 including airfare just to attend this years annual meeting   arriving Wednesday and leaving Saturday, this was not a vacation   !. Since no major items were   on the agenda we did not push to get control of the proxies, this was a   mistake.  I want to thank you for the over 550 proxies I did   received. Among the lessons learned for ALL   OWNERS -   Owners need to think twice before appointing the Board President as their   proxy if they want their interests represented.  (see owner comments   below)

The   following are key points that were raised at the meeting and the Board and   Marriott’s (MVCI) reactions.  Some of this is hard to believe if I had   not witnessed it myself with other owners at the   meeting: 


1. Misstatements to   Owners:   After   denying any involvement or contact with the Aruba Today newspaper regarding   the concerned owners newspaper advertisement and the resulting cancellation by   Aruba Today at the past owner meeting - General Manager Corey Guest   with a nod from MVCI Senior Vice President Dirk Schavemaker   finally saidYES (only   after I stated we can review the court transcript) hedid tell   the judge that he was in contact with Aruba Today.  All this in   spite of Cory Guest's direct denial to the owners and the   lengthy defense by MVCI Senior Vice President Dirk Schavemaker   at last years annual meeting stating that "MVCI thoroughly looked into the   matter."  It only took us 1 year to get to a truthful   answer. 


2.      2.   Board Member Personal Expenses: 

aa.    a. Board documents and expense reports provided in   March upon an owners request had numerous items and notes   (other than personal identification numbers and credit card information)   blacked out by MVCI General Manager Cory Guest.  After the owner   reported and questioned the documents, prior to the annual   meeting the owner was given new documents and told by the   Marriott's Director of Finance that the old   documents had been "destroyed".  When I asked MVCI Senior Vice   President Dirk Schavemaker as to why they had two sets of documents and   why they destroyed the earlier copy - he said that they were "not destroyed they were shredded"   and that both sets were the same.  Since Mr. Kennedy and   his wife saw both copies, this wasabsolutely not true, the   new set had a lot more justification etc. and we are not sure what   set of documents were used originally to   justify reimbursement for Board member's expenses.  Please see Leonard Kennedy's   report below for further information on his review of the   documents.

b.    b. The   Board has again incurred thousands of dollars of unnecessary owner expense for   the Parliamentarian and equipment used at the annual meeting.   The   huge time clock to prevent owners from speaking for more than 3 minutes and   the need for the elaborate 3 different color voting cards used not   to mention the continuous rulings from the Parliamentarian often   whispering in the President's ear. No wonder many of the owners who are   even in Aruba on vacation choose not to waste their time at these   meetings. 

c.      c.  Board Treasurer Melissa Pericolosi defended her   approval of some significant Board expenses despite missing receipts   even though Board policy requires that   receipts must be provided. Her response was that despite the absence of   receipts she thought the subject expenses were reasonable and   customary and that the cost to the owners of $30-40,000 to run this Board   is very reasonable and should not be   questioned.  

d.       d. In response to owners questions concerning Board expenses,   Board President  Frank Knot and Vice President Steve Richards   stressed that Board members give up many hours of   their vacation time to serve on the Board and every   owner should be appreciative.It   sounded like they believed they have an entitlement to do and   spend whatever   they want. I believe that every volunteer is appreciated, but also   must remember that they volunteered for the board and many other   owner candidates have applied to offer their services.  If a person   feels that they are only doing everyone a favor in serving then they should   not serve.  Presenting owners with what may have been altered   expense documents and the rejection by this Board of legitimate   questions concerning the reimbursement of their personal expenses is defensive   and not appropriate.  

.   T     e. Our General Manager   under the supervision of MVCI Senior Vice President   Dirk Schavemaker seems to   think that MVCI has the authority to black out items on a Board   members expensereport, withhold official   copies from owners and then destroy and/or shred documents so that owners   are not able to review them   leaves many questions and raises a cloud over Marriott and the Board   at the Aruba Ocean Club.  Shouldn't there   be transparency.


 Why   can't we have transparency from this Board and MVCI.  Why must they act   to cover each others backs rather than represent the best interest   of owner ?  As one example,    MVCI's Finance director of the Aruba Ocean   Club reported a   request for reimbursement for two rooms by AOC Board President Frank   Knox which was correctly questioned by the financial staff for   justification - when the response was for private board meetings (for a week   ?), additional oversight issues were raised - then the MVCI   executive staff moved the charge over to a MVCI account for payment,   (see Leonard   Kennedy's report for   further details).   


3. The   Board along with MVCI voted against a motion to disseminate both   sides of the issues involved in the actions by the Concerned Owners (over   1000 strong) to all owners, The Board and MVCI has continued to misstate the   reasons behind the Concerned Owners actions. President   Frank Knox used every owners proxy vote to insure that owners would not   be informed and of course Marriott added their votes.  Again the   lesson learned for all owners -   Owners need to think twice before appointing the Board President as their   proxy if they want their interests represented.   (see below additional owners   comments regarding Annual meeting and   Marriott)   


4.   After numerous owners requesting the actual cost of all the glass   work from the Texas firm Garcia Glass Art, Inc. obtained by Board member   Steve Richards the only answer from the Board was " that the cost   of all the glass artwork in the rooms, hallways and lobby was the   same as the original designer proposed ..."  After owner   review of the invoices, the cost paid to Garcia Glass Art Inc.   including installation was $130,665.96 which   included 225 room wall pieces at $325 each.  Owners have a right to complete   disclosure and explanation.

These   are just a few of the actions noted at last weeks annual   meeting.     Why should owners be subject to   misinformation ?    How much more can we as owners put up with   ?  Other Owners who attended the meeting were similarly outraged by   the Board and MVCI's conduct.  I have included some comments below and on   our web site www.aocconcernedowners.com.  Despite what Marriott and this Board would try to   have uninformed owners believe - this is not just one persons fight - but   the efforts of over thousand plus owners whose numbers are   growing every day. 

Please   review other owner comments and observations from the meeting. We   need your help - we   need to reach out to   more   owners so our proxies will make a difference - to protect owner   rights.  We have a great resort and have paid dearly for it.  Let's   make sure that the past issues with the construction, maintenance   and expenses are not repeated.   





Our   Legal action which is to have the ability of uncensored communication with   every AOC owner is under appeal and our attorneys believe we have an   excellent chance to win based on the conduct of Marriott and this Board.   

Leonard   Kennedy is handling the legal defense fund.  The cost of the   appeal is   estimated at $5,000.  Please contact Leonard at - leonardkennedy@rogers.com  -   if you are willing to protect owners rights and inform every Aruba   Ocean Club Owner of the arbitrary actions of this Board and   Marriott's efforts against owners interests.   Please   express your support in any possible.  


As   you can see,  I have reached out to the Board of Directors of Marriott   International, Mr. Marriott, President Arne Sorenson   and his executive team again hoping that they will intervene and   meet with us to reach a common understanding.      

As   always, I urge you to become involved - after all it is your   resort..    If the Marriott timeshare spin off occurs - next year we will be a franchisee   of Marriott.  The actions of this Board and Marriott towards the   owners will be even more important. We need to make them responsible   to owners.   I   look forward to hearing from you.  Allan


Allan S. Cohen

Concerned   Owner & Former Board President Aruba Ocean Club
9613   Eldwick Way
Potomac, Maryland 20854
e-mail: C20854@aol.com


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## OutAndAbout (Jun 4, 2011)

marksue said:


> AOC Board of Directors 2010 expense reports.


Where do these expenses roll up into the Operating Budget?  Most other Marriott timeshares have a "BOARD OF DIRECTORS" line item, while MAO & MSU don't use this line item.  Is it rolled into "COMMON EXPENSE ASSESSMENT"?
*
MAO Budget* (11,227 Unit Weeks)
61.37 64.08 ADMINISTRATION 
146.25 145.80 COMMON EXPENSE ASSESSMENT 

*MSU Budget* (23,175 Unit Week)
41.83 48.67 ADMINISTRATION 
0.06 0.00 BOARD OF DIRECTORS 
155.19 158.49 COMMON EXPENSE ASSESSMENT 

*MGO Budget* (14,790 Unit Weeks)
47.85 49.70 ADMINISTRATION 
1.07 1.10 BOARD OF DIRECTORS 

*All MAO 2011 Operating Budget items*
ACCOUNTING	34.02
ACTIVITIES	33.47
ADMINISTRATION	64.08
BAD DEBT EXPENSE	9.01
BILLING AND COLLECTIONS	9.18
CABLE TELEVISION	5.67
COMMON EXPENSE ASSESSMENT	145.8
CREDIT CARD FEE	20.55
ELECTRICITY	125.65
FRONT DESK	66.61
HIGH SPEED INTERNET	-
HOUSEKEEPING	128.77
HUMAN RESOURCES	7.14
MAINTENANCE	100.19
MANAGEMENT FEE	95.84
OTHER INCOME	-38.74
OWNER SERVICES	29.56
POOL MAINTENANCE	5.69
POSTAGE AND PRINTING	5.71
WATER AND SEWER	51.8
OPERATING FEE	900
RESERVE FEE RESIDENTIAL	247.98
RESERVE FEE COMMON	52.02
Total	2,100


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## marksue (Jun 7, 2011)

there is a line item board expenses


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## dioxide45 (Jun 7, 2011)

marksue said:


> there is a line item board expenses



Yup

$2.64 per unit week.

Doesn't seem like much. All this trouble for a couple of bucks?


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## marksue (Jun 9, 2011)

*letter from an owner to Corey... name removed by request*

Corey....

I am an owner at the AOC.....I purchased a 2BR unit in 2001.....I am also an owner at Ocean Pointe in Florida and Marriott's Ocean Watch Villas in Myrtle Beach.....So I own 3 weeks with MVCI....

I was not able to attend this year's Annual meeting in May, as I did last year,  but I have spoken to several owners who were in attendance....

I want to thank you and the current members of the AOC board for CONTINUING to WASTE owner's funds....again having a Parliamentarian governing a simple board meeting is quite comical....that just goes to show that those members that are on the current AOC Board are incapable of governing the meeting on their own.....the board members knew that tough questions would surely be asked and rather than have to answer them they can simply turn to their expensive Parliamentarian to bail them out.... WHAT A JOKE!!

Isn't it funny how when I have attended the board meetings at Ocean Pointe and Ocean Watch in the past, I never recall a Parliamentarian in attendance to help govern the meeting.....Why is that??....I can only assume that only the AOC board just looks for ways to waste owner funds....

I also want to thank you, Corey, or whomever is responsible, for allowing the current board members to be reimbursed for travel expenses that you know our NOT legit..... yet somehow these board members are getting cut checks for big time dollars and they DON'T EVEN HAVE RECEIPTS....HOW IN GOD'S NAME IS THAT HAPPENING???  

I work in medicine.....and I too have an expense account for my CME travels and license fees.....The way my company reimburses me is pretty simple....they use an equation that looks like this:   REASONABLE EXPENSE + LEGIT RECEIPT = EXPENSE CHECK

If the expense is not deemed "reasonable"....OR...if there is no "legit" receipt....then the expense is not granted....apparently Marriott's AOC board uses a different formula for reimbursement??.....I would love to know what that formula is....Every now and again, my company actually gets audited....and that audit reviews expense reports.....maybe someone should audit the expense reports of the AOC board???  I wonder if any red flags would be raised??

I would appreciate if someone could call me and explain to me why owner's funds are being spent loosely??....Why are you, Corey, altering the receipts that were presented to those owners that wanted to see them??....Why are their items crossed off on the receipts so they cannot be viewed??....what do you, or the AOC board members, have to hide???

I am so disgusted with this AOC board.....I cannot believe what is going on at the resort my wife and I love so very much.....What's even more amazing to me is how people like Mr. Sorenson are allowing this stuff to continue at the AOC....

The Owners at the AOC deserve better.....we deserve a fresh start....I am counting down the days until the terms of the current board members have been completed.....I sure hope its soon....it is obvious that the current board is NOT working in the best interest of the owners.....

I can assure you that myself, as well as many other concerned owners, are never going to give up the fight to make things right at the AOC.....I will continue to do my part educate AOC owners of what exactly is going on with the current board....they all deserve to know.....


Thanks for you time!!


an owner


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## dioxide45 (Jun 9, 2011)

Why would they have sent the letter to Corey, isn't Corey the GM. He works for Marriott. Shouldn't it have been directed to the BOD?


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## EducatedConsumer (Jun 9, 2011)

dioxide45 said:


> Why would they have sent the letter to Corey, isn't Corey the GM. He works for Marriott. Shouldn't it have been directed to the BOD?



Unfortunately, Marriott Vacation Club appears as corrupt as the day is long.

Hopefully, the Concerned Owners will push the Security and Exchange Commission and Marriott's Internal Audit department for a critical appraisal of the operations of Marriott Vacation Club and the Ocean Club Board.

I'm curious what Marriott refers to when they refer to business integrity.


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## Armada (Jun 12, 2011)

There is a lot of information on mvci.com regarding BOD expenses if are you willing to spend some time looking for it.  From the 2011 budgets, here are some examples of budgeted amounts and cost/unit week:
Ocean Pointe              $15,943           0.91/unit week
Heritage Club             $15,630        10.42/unit week
Barony Beach $15,996 1.23/unit week
Cypress Harbor $30,563 1.12/unit week
Desert Springs Villas II $14,996 0.73/unit week
Harbor Point $30,035 6.98/unit week
Mountainside $6,962 0.75/unit week
Shadow Ridge $5,887 0.23/unit week
Aruba Ocean Club $29,639 $2.64/unit week
Aruba Surf Club $41,483 $1.79/unit week
VILLAGE D’ILE-DE-FRANCE €30,012 3.15/unit week
Marbella Beach €21,061 €1.42/unit week
Phuket Beach Club BHT 0 0.00/unit week
Maui Ocean Club $4,996 0.21/unit week
Ko'Olina Beach Club $17,930 0.85/unit week
Waiohai Beach Club $7,500 0.63/unit week

There seem to be some boards that are doing their best to hold down expenses and others who are not doing such a good job.  Of course, these are raw numbers.  It's hard to tell how various resorts allocate expenses to specific accounts.

Interesting overall.


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## OutAndAbout (Jun 12, 2011)

dioxide45 said:


> marksue said:
> 
> 
> > OutAndAbout said:
> ...


Ah, it's in the breakout of the 2011 COMMON EXPENSE ASSESSMENT:

10.14	ANNUAL LEASE PAYMENTS
2.14	AUDIT FEE
*2.64	BOARD OF DIRECTORS*
2.30	ELECTRICITY
21.42	GROUNDS
3.05	HOUSEKEEPING
11.22	INCOME / TRANSFER / GROUNDS - TAX
10.73	INSURANCE
-	LEGAL
36.66	LOSS PREVENTION / SECURITY
8.68	MAINTENANCE
13.25	MANAGEMENT FEE
1.92	PEST CONTROL
2.61	REFUSE COLLECTION
5.30	SITE ADMINISTRATION
13.74	WATER AND SEWER
*145.80*	OPERATING FEE


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## OutAndAbout (Jun 12, 2011)

dioxide45 said:


> $2.64 per unit week.
> 
> Doesn't seem like much. All this trouble for a couple of bucks?


US$2.64*11,227 unit/weeks =  $29,639/year
Some people will fight for a few bucks, some people will fight just based on principals/morals.

Wasn't there a tread about defaulting on your main fees wasn't a big deal because one default was generally less than $1 for each owner?  



BillMorrow said:


> There is a lot of information on mvci.com regarding BOD expenses if are you willing to spend some time looking for it.  From the 2011 budgets, here are some examples of budgeted amounts and cost/unit week:
> Ocean Pointe              $15,943           0.91/unit week
> Heritage Club             $15,630        10.42/unit week
> Barony Beach $15,996 1.23/unit week
> ...


*BillMorrow*, you're right on.  This is where I was going, MGO, which is a similar size (14,790 Unit Weeks) is $1.10 each or $16,269 total vs MAO at 2.64 each or $29,639.  MOA's total is 80% higher than MGO's.

Heck, even Ko'Olina's total ($17,900) is 40% lower than MAO and it's almost twice the size of MAO with 21,218 unit weeks


PS: Phuket Beach Club
Advisory Board Of Directors Expenses are 809,976 THB total & 109.22 THB/unit week 
809,976/30 ~=US$26,999
109.22/30 ~= US$3.64


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## marksue (Jul 23, 2011)

*open letter to the board and Corey*

: corey.guest@marriotthotels.com
CC: mhrs.auaar.oceanclub.gm@marriotthotels.com, aocbod@vacationclub.com
Sent: 7/22/2011 3:36:53 P.M. Eastern Daylight Time
Subj: Aruba Concerned Owners




Dear Mr. Guest and The Board of Directors, 

I own 3 weeks of Marriott Timeshares with 2 week at the Aruba Ocean Club. I find it appalling that you all believe that this ongoing concern is just a one person problem. It in fact concerns well over 1,000 Owner Members and not just Allan Cohen. The lack of Transparency buy both Mr. Guest and the entire Board of Directors I find very disheartening and makes me feel that you are all colluding to withhold information that should be shared by the entire ownership population. You say that Mr Cohen has caused the Board to spend in excess of $200,000 to defend a suit in which you have yourselves caused. Again this is not a one person affair and it is unfair to characterize it t his way. When I received a notice asking if I wanted my information shared I tried to find out the reasons for this notice by making phone calls to Aruba and to Marriotts Legal Counsel and no one would ever tell me what the exact reason for asking whether I wanted my information released or not. So not being able to find out the true reason I said that I did not want the information shared only to find out later what that reason was. Had I known this before I would have given my permission to share my information. The better informed that an owner is the happier that owner would be. The BOD and Mr. Guest have thwarted the will of the owners at Annual Meetings and I believe have not been held accountable to the ownership of expenses the board members have spent for the meetings that have taken place. You have also wasted money for a Parliamentarian who has also thwarted the voice of the owners. As I said before I own 3 Marriott weeks the other week is in Ko Olina Hawaii. The BOD there are very transparent in how the money is spent and what takes place at Annual Meetings. The maintenance fee has increased slightly over the last 10 years unlike the fees at the Ocean Club. I think that this BOD, Marriott, and Corey Guest do everything that is possible to keep the ownership in the dark and hope that this problem will go away. We are entitled to know everything that this BOD does because it will effect every owner. We need to see the records of what is spent and how it is spent as well as the income. I have in the past been a board member of an organization and I will tell you that we were held accountable for everything that we did as a board good or bad and what we spent and the income received. We were a very Transparent organization and this is the way we kept it honest. Being transparent to the owners should be your most important concern. I am willing to bet that if you are willing to go the extra distance for the owners that you would not have a situation like this. The owners Mr. Guest is what keeps paying your income and it does not help when you try to hide or withhold information. The BOD needs to at all costs make sure that there are acting in the best interest of the ownership. If you as a board cannot accomplish this then I think that you need to step down and let the ownership put other people in that will make sure that this is done. The Ocean Club is my home away from home and I have paid a great deal of money for this as has every other owner and we wish to make sure that it continues to be the best place to come to every year. Mr. Cohen only has the best interest of each and everyone of us and by the way did an admirable job when he was the President of the board originally. I don't feel the same way about this board as it has done anything but an admirable job thus far. 

So please stop the character assassination of Mr. Cohen as this is not a one man show an it does nothing to further the resolution of these concerens. 

Sincerely, 

Ron Rubin


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## marksue (Jul 23, 2011)

*Another letter to the board*

Hi, Corey....

First of all, I am happy to see that the satisfactory scores for the AOC are as excellent as you have indicated in the update.  Without question, the AOC is spectacular.  My wife Holly and I absolutely love the resort and it's refurbishments.   All owners, liike myself, have paid handsomely for the refurbishments and we expected the final product to be the best.

As for the litigation update, you make it sound like Alan Cohen is the ONLY unhappy AOC owner.  You and the AOC board know quite well that Mr. Cohen is just one of  well over 1000 AOC owners that are upset with the on goings in Aruba with the AOC board. The past two annual meetings have certainly demonstrated that Mr. Cohen is not the only owner with concerns and questions.  The problem is, and has been for some time now, that you and the Board could care less what the AOC owners want.  We want answers to our questions.  We deserve answers to our questions.  It's disturbing that you and the Board refuse to answer them.  It makes concerned owners like myself suspicious of you and the Board.  And the fact that Mr. Sorenson is letting all this happen is even more puzzling.  You would think that an owner of three MVCI weeks like myself would get more than an email reply saying a whole lot of nothing.  You would think that somone other than you and the Board would attempt to reach out to me and here my concerns.  But that hasn't happened either.  I can only assume that they upper Marriott Management could care less what owners like myself think.  

As I have said in past emails to you, I am no longer an advocate of MVCI.  When I see owners going on tours, and they ask my opinion, no way do I give them my blessing.  MVCI can thank you and the AOC Board Members for my displeasure.  Your actions, as well as the actions of the AOC board, are deplorable.  The expenses that have been approved by you and by our board president for other board members are not reasonable and quite excessive.  And the fact that owners like myself are paying for these expenses infuriates me, as well as other owners.  

I personally have sent you countless emails trying to get answers to questions about my concerns and you have managed to dance around essentially all of them without providing answers.  I have made many friends with fellow owners at the AOC and they too have posed questions that have gone unanswered. 

I feel that your litigation update would have been much more accurate had you not only mentioned Mr. Cohen, but mentioned owners like myself, and the over 1000 other AOC owners that Mr. Cohen represents,  that are trying to get answers about the concerns we have about our pricey investment in Aruba.  Maybe if there was over 1000 names listed on your litigation update, all of the other AOC owners that got your email would start to wonder what the heck is going on and why there are so many unhappy owners.  It's no wonder why Marriott is keeping the contact information of the AOC owners private.  God knows that if all the AOC owners got word of what you and the Board have been doing with our funds, there would be mutiny in Aruba.  The numbers of upset owners are growing by the day and we are all looking forward to the appeal.

Sincerely,

Frank 
AOC Owner


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## Zac495 (Jul 24, 2011)

I don't post much on the Marriott boards anymore after selling my Marriotts - particularly Aruba- for just this type of problem. I wish you all well getting these crooks to stop raising your fees so they can eat drink and be merry on your dime.


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## tlwmkw (Jul 24, 2011)

Are there any new issues at AOC that brought this thread to the top again?  I saw Griffer's addition to the other AOC thread- maybe someone could link it so that the recent news release could be part of this thread too.

Why did the concerned owner's object to Marriott giving out their web site information?  I thought they wanted to have other owners informed of this.

I haven't kept up with this so I guess I may be asking questions that have already been asked/answered.

tlwmkw


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## dioxide45 (Jul 24, 2011)

I notice that these letters indicate there are over 1000 concerned owners, but how many people are listed as the plaintiff in the lawsuit? Are all 1000 owners listed, or just Mr Cohen?


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## SueDonJ (Jul 24, 2011)

dioxide45 said:


> I notice that these letters indicate there are over 1000 concerned owners, but how many people are listed as the plaintiff in the lawsuit? Are all 1000 owners listed, or just Mr Cohen?



Just Mr. Cohen.

[eta]  Most of the documentation can be found if you click through the "Hot Off The Press" links on arubaoceanclub.com, which is the official website of the MAOC Association.  Eventually the docs make it to the "Owners" tab section of the MAOC page in my-vacationclub.com, too, but the Association's website is generally more up-to-date.  Here's the official translation of the latest court action which indicates the parties to the action.  Note this action isn't related at all to the most recent claims of fiscal irresponsibility by the board that were brought up in this thread; instead it's related to the release of contact information issue that was discussed in this other MAOC thread mentioned by tlwmkw.


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## dioxide45 (Jul 24, 2011)

SueDonJ said:


> Just Mr. Cohen.
> 
> [eta]  Most of the documentation can be found if you click through the "Hot Off The Press" links on arubaoceanclub.com, which is the official website of the MAOC Association.  Eventually the docs make it to the "Owners" tab section of the MAOC page in my-vacationclub.com, too, but the Association's website is generally more up-to-date.  Here's the official translation of the latest court action which indicates the parties to the action.



I was only curious as the board seems to be communicating out that it is one owner that is the source of the lawsuit. Which it seems is true. Why weren't all 1000+ concerned owners named as plaintiffs?


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## SueDonJ (Jul 24, 2011)

dioxide45 said:


> I was only curious as the board seems to be communicating out that it is one owner that is the source of the lawsuit. Which it seems is true. Why weren't all 1000+ concerned owners named as plaintiffs?



 Don't know, but that was suggested as a tactic by a few people.  Throughout the various actions some "Concerned Owners" did assign their proxy to Mr. Cohen for voting issues at meetings, but he's never been assigned offical legal authority by any owners to act on their behalf in court proceedings.


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