Palm Coast, FL – July 28, 2010 – [Updated July 29, 2010] In the aftermath of real estate developer Ginn-LA's (Bobby Ginn and financial partner Lubert-Adler) bankruptcy of the Tesoro and Quail West projects, property owners are still trying to pick up the pieces. Sarasota-based The Monticello Group, LLC (TMG) is not making that process any easier. They purchased Ginn/Tesoro assets including delinquent club payments. Now they are trying to collect.
According to bankruptcy documents, Member Receivables totaling $8,866,611.69 were among assets transferred to Credit Suisse for $40,000. Receivables were subsequently acquired by TMG.
GoToby.com has heard of at least three Tesoro property owners recently contacted by TMG. A June letter put one owner on notice that a lien would be placed on their property if the outstanding balance (exceeding $45,000) was not paid within 45 days. The owner had resigned from the Club in late 2008. Another owner raised the issue of the uncompleted Beach Club.
The issue is not simple. Tesoro Club membership documents state that member deposits would be held in an escrow account until the completion of the Club amenities. The amenities were not completed. The promised Beach Club does not exist. Neither does the escrow account. Nor do the membership deposit funds.
Property owners should understand that TMG reportedly purchased the accounts receivable on an "as-is where-is" basis, without warranty of any kind as to its enforceability and subject to all defenses held by all of the account debtors. If TMG persists in efforts to collect, owners should consult an attorney.
Meanwhile, in a separate action, bankruptcy trustee Drew Dillworth is pursuing funds totally approximately $330 million allegedly transferred fraudulently to Ginn and Lubert-Adler from proceeds of the $675 million Credit Suisse loans that precipitated the bankruptcy. The lawsuit was recently amended to add Lubert-Adler investors to whom funds may have been distributed to the list of defendants. They are:
President and Fellows of Harvard College
University of Michigan
Catherine T. MacArthur Foundation
Maryland State Retirement and Pension System
Ohio Police and Fire Pension Fund
Pennsylvania Public School Employees' Retirement System
Pennsylvania State Employees' Retirement System
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