# SA vote due to ilegal loans and conflict of intrest.



## cwolfe (Nov 13, 2010)

I recently received a SA vote proxy for raising funds to cover legal costs for Whistler lake placid vacation club. The management company evergreen whom were owners in other companies made over 500,000 dollars in illegal unrecoverable money to companies they have an interest in. I voted no but I'm really pissed that this conflict of interest was never addressed form the start. I have no problem with act of god SA or remodel, but this one makes me nuts. i try non stop to contact whistler but the phone is busy due to probably raging owners. I love the area of Vc but this is just becoming pointless what recourse if any do i have.


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## Carolinian (Nov 13, 2010)

These transactions would probably have been approved by the BOD, which probably has liability insurance with a high limit.  I have never seen a timeshare HOA that does not carry that insurance.  Even if not recoverable directly, then it should be recoverable through a claim on directors liability insurance.

The second route to look at is pursuing criminal embezzlement charges.  Courts often force defendants to pay restitution as a condition of probation, even it the probation follows an active sentence.

Have both of these options been pursued against the wrongdoers and the insurance company?


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## cwolfe (Nov 13, 2010)

*SA reply*



Carolinian said:


> These transactions would probably have been approved by the BOD, which probably has liability insurance with a high limit.  I have never seen a timeshare HOA that does not carry that insurance.  Even if not recoverable directly, then it should be recoverable through a claim on directors liability insurance.
> 
> The second route to look at is pursuing criminal embezzlement charges.  Courts often force defendants to pay restitution as a condition of probation, even it the probation follows an active sentence.
> 
> Have both of these options been pursued against the wrongdoers and the insurance company?



yes BOD did approve the loans because two of the BOD members where involved in this illegal loan stuff and were officers in evergreen the company who managed whistler and its sister resort TWIN in VC. correction there were 3 BOD members involved. PTP destination is involved and owns 73 intervals and is in default of dues and the new management is raising funds by SA to keep the resorts going and legal services that they have retained.  they are pursuing legal issue with authorities. They state they will run out of money if SA not put in-place. My TS is paid off and did i not pay much for it and i feel for those still paying on their TS here but this i feel is just going to get worse and has the possibility to become a bitt expensive. As far as insurance non has been mentioned in the doc's. they have recovered 130,000 of the 513,000 that know of monies loaned.


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## Carolinian (Nov 13, 2010)

I would specifically ask the new management about what directors liability insurance the HOA had and if a claim has been filed.  I would also ask if the local prosecutors what been consulted about criminal charges.




cwolfe said:


> yes BOD did approve the loans because two of the BOD members where involved in this illegal loan stuff and were officers in evergreen the company who managed whistler and its sister resort TWIN in VC. correction there were 3 BOD members involved. PTP destination is involved and owns 73 intervals and is in default of dues and the new management is raising funds by SA to keep the resorts going and legal services that they have retained.  they are pursuing legal issue with authorities. They state they will run out of money if SA not put in-place. My TS is paid off and did i not pay much for it and i feel for those still paying on their TS here but this i feel is just going to get worse and has the possibility to become a bitt expensive. As far as insurance non has been mentioned in the doc's. they have recovered 130,000 of the 513,000 that know of monies loaned.


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## montyh (Nov 15, 2010)

Got our 11-01-2010 Whistler V.C. Twin Peaks Board letter over the weekend.  Yes, we are long time owners of Whistler Vacation Club, Twin Peaks....this year it all came to a head with Evergreen Coast Developments. Ltd, getting fired for illegal loans to West Coast Timeshares & loans are in default, ($1.1M owed to Twin Peaks, with $660K unrecovered) and Point to Pont Destinations is in this mix and Vacation International.  Duel Directors and Officers of these most likely scam entities set up to charge high managment fees and skim members' money off to themselves.

Now we are asked to pay up a special assesment for Twin Peaks of $408.48, now, in addtion to 2011 dues.  Convoluted mess, but it shows how real owners can "sleep at the wheel" and let the likes of Johnny Saldat, Payman Mehrani, and Lynn Cartwright and their minions steal them blind.

Owners need to "audit" their own Board members and actions, including any "amemded" bylaws, etc. and scrutinize fat management fees, CPA firms connected to Directors and other large unessary fees/expenses.....you sleep at your own peril.

I can only assume BC policeand or WA police have been alerted that a crime has been committed, but will know more soon. I smell a civil suit against the former Directors and Officers and the law firms and accounting firms that aided them in this theft of member money.


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## D & J (Nov 16, 2010)

*Lake Placid*

We are planning on attending the meeting on November 20th and will certainly raise the insurance question.  One more thing to be aware of - in addition to all of the recent criminal activity, none of the Lake Placid envelope issues were disclosed to those of us purchasing after 1990.  The problem was clearly known by the Strata and the vacation clubs at that time.  What sort of legal action is available to us?


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## D & J (Nov 16, 2010)

*SA vote due to illegal loans and conflict of interest*

We are also very upset about this situation.  We are planning to attend the November 20th meeting.  Is anyone else planning to attend?

We will certainly be raising the questions about insurance and criminal charges.  Does anyone know whether the assets of the criminals can or have been frozen?


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## cwolfe (Nov 16, 2010)

*SA proxy*

unfortunately i cannot attend, I'm on the east coast and to short of a notice for me work wise.


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## cwolfe (Nov 17, 2010)

*lake placid*



D & J said:


> We are planning on attending the meeting on November 20th and will certainly raise the insurance question.  One more thing to be aware of - in addition to all of the recent criminal activity, none of the Lake Placid envelope issues were disclosed to those of us purchasing after 1990.  The problem was clearly known by the Strata and the vacation clubs at that time.  What sort of legal action is available to us?



I'am unaware of the lake placid enevelope issues, could you please tell me about them?


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## Carolinian (Nov 18, 2010)

D & J said:


> We are also very upset about this situation.  We are planning to attend the November 20th meeting.  Is anyone else planning to attend?
> 
> We will certainly be raising the questions about insurance and criminal charges.  Does anyone know whether the assets of the criminals can or have been frozen?



Freezing assets requires some time of pending case, usually civil.

In criminal court, often a defendant's freedom can be good collateral.  They receive probation based on their making restitution.  No restitution means they go in the pokey.


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## smertens (Nov 21, 2010)

I attended the meeting in Bellevue and it was well attended around 450 people. The unofficial vote count was that both resolutions passed. We have some strong owners that have come forward to be on the board and are trying to sort out this mess through the legal system to save on the expense of legal counsel for the owners. It was decided that the Special Assessment could be made in two payments. The amount listed in the letter was in Canadian dollars and will need to be converted to US dollars if applicable.


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