Response - Maxim / Sun Village

[Castellamonte]

It is likely they called them anything you wanted to hear in order for them to get your money.

But I do know that fractional ownership is available in Cabarete--some of it is being offered after the sale by owners of individual condos who don't need to be there the whole year, and some of it is packaged that way at the outset. You can Google "fractional versus timeshare" and go to school on all the differences.

In a fly-to destination like the DR, fractionals need to be set up with multiple consecutive weeks available to buyers--otherwise it makes no sense. There are many other things to consider too, but that's for another thread.

According to Fabio Guzman over on the Legal Forum, there is no legally defined fractional ownership in the Dominican Republic. In other words, no laws currently on the books in the DR will protect anyone with a fractional ownership in a piece of property.

I was mostly asking because I am interested in developing the concept of fractional ownership but, apparently, it must be done offshore from the DR. Then, of course, you cannot rely upon the DR real estate laws to protect you as a 'co-owner' under traditional fractional terms.

Check out the thread over there...http://www.dr1.com/forums/legal/79109-fractionals-dominican-republic.html

 

[Tiger22]

Fractions

The Elliotts went through Turks and Caicos Island

 

[abe]

I think that any buyer willing to spend real money (not the $10k for a timeshare) in the DR understands that it is a major crapshoot. I am only referring to the prospect of getting any real satisfaction via the DR legal system, not the inherent value of spending time here.

The lack of true legal protection that you can "take to the bank" is not first on the list of concerns to anyone who has progressed far enough in the buying process of fractional or whole ownership real estate.

You simply have to have the stomach for the DR--on many levels.

But thanks for the referral to the other thread.

 

[Lambada]

I hope this is the correct thread on which to post this.

'Alpha Media Group Inc., publisher of Maxim, has initiated a lawsuit in the U.S. District Court for the Southern District of New York against EMI Resorts (S.V.G.) Inc., the developer and operator of the Sun Village Resorts in the Dominican Republic. In the Complaint, Alpha Media contends that EMI Resorts has breached the terms of the parties' licensing agreement that entitled EMI Resorts to use the Maxim brand name in connection with its resorts.'
More here:
State College Business | Centre Daily

 

[abe]

Maxim-ize your troubles

I am not sure this is going to change much, but it does illustrate once again the business practices of the Elliotts. But what lovely high roller memories they must have of being hangers on in the glitzy world of cheap women and C level entertainment people.

 

[Tiger22]

I got a call yesterday from one of the Groups who are trying to convert our promissory notes into the Elliott pay options. If we dont buy into one of Elliotts pay options they will send us to a collection agency on Oct 15th

What are people doing???

Should we walk away from our investment? $37,500. and let the collection agency end up with the fractions??

Should we try to work with the Elliotts and start sending them money?? I have a hard time trusting these people. If I send them money are they just going to lose it again?? or use it to their benefit again...what ever they did with those millions.

What should we do

 

[planner]

I think you should look at their history, look at what is going on, and kiss your money goodbye. Don't throw good money after bad.

They have investors - original investors - not paid dividends since 2001 and always an excuse.

 

[abe]

Good money after bad

If you look at their one and only rescue strategy--it is timeshare. Timeshare marketing traditionally costs 50% of the sales price--I would agree that it won't cost them quite as much because they already have a sales facility in place and their tours won't cost them quite as much as, say, Orlando where the competition if so fierce among so many resorts.

Nevertheless the task facing them is akin to turning around a cruise ship in a bathtub--or whatever similar analogy you can come up with.

If I were you, I would not give the Elliotts another cent, write off the loss on your income taxes if you can, and move on. You will get no satisfaction in the DR courts and you already have enough insight into the Elliotts to know (in your heart) that you have been flim-flammed.

Do not let them do it again.

 

[Conchman]

I got a call yesterday from one of the Groups who are trying to convert our promissory notes into the Elliott pay options. If we dont buy into one of Elliotts pay options they will send us to a collection agency on Oct 15th

What are people doing???

Should we walk away from our investment? $37,500. and let the collection agency end up with the fractions??

Should we try to work with the Elliotts and start sending them money?? I have a hard time trusting these people. If I send them money are they just going to lose it again?? or use it to their benefit again...what ever they did with those millions.

What should we do

Excuse my ignorance, but I am trying to understand how they can force you to pay more or you lose your investment. Who owns a promissory note from who? Was the 37,500 a downpayment with the rest financed?

 

[kashbarker]

As investors we invested 50% down and signed a promissory note for the rest. Our promissory note payments were to start effective Nov 2007. But we haven't had to make any until now. On the 15th of Oct if we don't start making payment to the Elliott's, then they will sell the notes to another party. If our notes are sold the new party will require that the back payment be made to them at once and that we continue making payments to them or we stand to loose our fractions. This is how I understand it.

 

[kashbarker]

I got a call yesterday from one of the Groups who are trying to convert our promissory notes into the Elliott pay options. If we dont buy into one of Elliotts pay options they will send us to a collection agency on Oct 15th

What are people doing??? I used my residence money to pay off my notes.

Should we walk away from our investment? $37,500. and let the collection agency end up with the fractions??May I ask how much you paid for your fraction? You might find out how much your fraction is sell for today? You put down 50% and signed a promissory note for 50%. If $37,500 is for one fraction, you might find out how much you can purchase the same fraction today at the discounted prices. If you can purchase the same fraction for less than $37,500, then why in the world would you send them$37,500 just to keep your original purchase???? If this doesn't make sence, then PM me and I will be happy to explain better. I have spent many hours trying to figure out how I can best protect my investment down there.

Should we try to work with the Elliotts and start sending them money?? I have a hard time trusting these people. If I send them money are they just going to lose it again?? or use it to their benefit again...what ever they did with those millions.I have been told that all funds will go directly to a law firm in the DR and that they will only be used to complete the resort, none will go to the Elliott's pockets.

What should we do

PM me and I will be happy to visit with you on the phone if you like. Take care..

 

[Conchman]

is this for MB - Juan Dolio?

Don't you have some recourse since you purchased the 'Maxim' name and now they are not delivering? probably not much .

 

[kashbarker]

is this for MB - Juan Dolio?

Don't you have some recourse since you purchased the 'Maxim' name and now they are not delivering? probably not much .

I wish we did, but when Steven Colvin left and Alpha Media Group took over, they pulled out of the Resort. That is another part of the problems were facing.

 

[abe]

Even in the US, where there is a legal system that has considerably more teeth than that of the DR, the loss of a Brand Name at some point in the term of ownership has no impact on the owner's ability to roll back the deal.

For example, all timeshare documents have language regarding the Exchange Companies that indemnify the developer if the Exchange Company "de-lists" the resort, goes out of business, etc. That actually happens very rarely, but the end user would have no recourse.

The departure of Maxim is not actionable on your part, I am afraid. It was, alas, just one more aspect of the Potamkin Village that the Elliotts conjured up in their attempt to wrest money from "investors."

Do not give them any more money.

 

[Tiger22]

We put down $37,500 for what we thought were 2 fractions and then leverage another two. Once we went to the DR in Dec 07 and signed those darn promissory notes - the fractions were set up so that we only owned 1/2 of each of the 4 fractions. Not a prob we thought because Juan Dolio was suppose to open in Jan of 08 and totally booked ..as they lied again. So since the Elliotts called in the loans in Aug 08, if we dont pay up (the promissory notes equally $37,500 - they have payment options), they will send us to a DR collection agency.

I dont want to give the Elliotts another dime and I hate the thought of losing the money I invested. $10K for Confresi and $37,500 for Juan Dolio. But if we have to walk away - we'll do it. I just dont see giving good money towards bad.

I wish there was some sort of class action suit out there. This scam has fraud written all over it.

 

[abe]

I suppose you could look into doing something in Canada, where they have a presence, but it's likely that you would only get some satisfaction of shining the light of the Canadian media on them. Which would have some psychic reward, I am sure.

 

[Castellamonte]

Given that Maxim is in court forcing removal of its brand from the Bungalows, isn't it odd that they continue to advertise as Maxim? Check TripAdvisor, for example, and they are all over it.

 

[Conchman]

Well the Maxim Bungalows website is down, the word 'Maxim' has been removed from all signs at the resort, to me it seems they have done a lot to remove the Maxim name but of course some advertising material you cannot get rid of immediately as it is out there used by 3rd parties.

 

[planner]

And often those 3rd parties are very slow at removing the information. It MAY be out of their control.

Then again - they just might not have bothered or even thought about it!

 

[planner]

Here is an interesting link that someone sent me:

Street Talk: A Timeshare Blog for News & Gossip Blog Archive IDAHO & THE DOMINICAN REPUBLIC: October 19, ‘07

It is full of interesting information - you have to be patient and read thru it all!