Amended Lawsuit against Ginn-LA adds Lubert-Adler Investors as Defendants
Lawsuit to recover alleged fraudulent transfers from Credit Suisse loan proceeds now names high-profile Lubert-Adler investors including the President and Fellows of Harvard College.
Palm Coast, FL – June 30, 2010 – A lawsuit against Bobby Ginn and financial partner Lubert-Adler to recover the alleged fraudulent transfer of over $328 million from a Credit Suisse loan was amended to add high-profile Lubert-Adler investors as defendants. The defendant list now includes the President and Fellows of Harvard College, the University of Michigan, the Catherine T. MacArthur Foundation, the Maryland State Retirement and Pension System, the Ohio Police and Fire Pension Fund, the Pennsylvania Public School Employees’ Retirement System, and the Pennsylvania State Employees’ Retirement System.
The filing contemplates the addition as Defentants of even more Lubert-Adler investors that may be uncovered during the Discovery phase of the proceedings.
Drew Dillworth, as Trustee for the consolidated Chapter 7 bankruptcies of Tesoro and Quail West filed the lawsuit. It alleges that Credit Suisse artificially inflated the value of five of Ginn’s developments to support a $675 million loan, then encouraged Ginn and Lubert-Adler to take more than $328 million as advanced profit distributions directly from the loan proceeds, dooming the developments to failure. Ginn-LA defaulted on the $675 million loan resulting in the Chapter 7 Bankruptcy of the Tesoro in Port St. Lucie, FL and Quail West near Naples, FL.Dillworth’s is not the first suit surrounding Credit Suisse loans to real estate developers. It is, however, the first to name as Defendants, investors in the participating Lubert-Adler funds. The earlier complaint listed Princeton, Drexel, and Yale as investors but not as defendants.
Using the same credit facility structure, Credit Suisse loaned millions to Lake Las Vegas, Tamarack Lodge, the Yellowstone Club and others. All ended in the bankruptcy. In the Yellowstone Club bankruptcy, Judge Ralph B. Kirscher described the Credit Suisse loan this way:
"In 2005, Credit Suisse was offering a new financial product for sale. It was offering the owners of luxury second-home developments the opportunity to take their profits up front by mortgaging their development projects to the hilt. Credit Suisse would loan the money…., earn a substantial fee, and sell off most of the credit to loan participants. The development owners would take most of the money out as a profit dividend, leaving their developments saddled with enormous debt. Credit Suisse and the development owners would benefit , while their developments – and especially the creditors of the developments – bore all the risk of loss. This newly developed syndicated loan product enriched Credit Suisse, its employees, and more than one luxury development owner, but it left the developments too thinly capitalized to survive. Numerous entities that received Credit Suisse’s syndicated loan product have failed financially, including…Ginn. If the foregoing developments were anything like this case, they were doomed to failure once they received their loans [and made the transfers contemplated thereby]."
Read: First Amended Complaint for Avoidance and Recovery of Fraudulent Transfers (pdf 29 pages)
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GREAT BUT NOTHING WILL HAPPEN
YOU KNOW WHAT, ALL THESE REPORTS ARE GREAT BUT THESE TWO CREEPS,MEANING GINN AND LA HAVE DONE FAR MORE HARM TO MANY MORE INDIVUALS THAN MADOFF EVER HAS…THE PROBLEM HERE IS THE BIG MONEY PEOPLE HAD THE CONNECTIONS TO INVESTIGATE AND PUT HIM IN JAIL
HOW CAN THESE GUYS BE PROTECTED IS BEYOND ME,AND FURTHERMORE TOBY YOU SHOULD REALLY ASK YOUR NEW FREINDS AT REYNOLDS HOW THGEY ARE PULLING THE SAME ILLEGAL STUNTS UP AT REUNION,PLAYING AROUND WITH FREE FURNITURE AND ADDING FREE FURNITURE TO THE PRICE AND RAISING THE APPRAISALS JUST LIKE BOOBY DID YEARS AGO
THESE GUYS ARE FOLLOWING BOOBYS ORDERS,AND DONT THINK FOR A MINUTE HE IS NOT STILL CALLING THE SHOTS ALONG WITH LA
Sammy
Sammy,
I cannot get onto the Reunion Resort Owners website anymore. Do you know whats happened to it, or has the web address changed?
Chris Wolsey
gone
chris, the brits on that site use to bash sam and myself as being the greedy americans that caused the problems at reunion.They praised booby on how nice the courses and resort looked, but never even played on them.A lot of them bought in here and DON’T PLAY GOLF, i don’t get it!!!! They would come here and say that service was great.I don’t know how waiting for 1.5 hours for food at forte, paying 13$ for a martini,9$ for an inport beer at pool,200$ dinner at eleven and come out feeling hungry is a great. The bottom line is that these brits bought here with no intention on playing golf, no idea on what good service is and they handed over their keys to the bank and flew home. There is no web site because they are all broke from the failed promises from booby and gang.
ginn-LA Lawsuit
Reply to Frankie.
Being a Brit myself I can defend Chris to a certain extent, firstly 60% of the people in any Golf Community do not play Golf, they just like to live on a Golf Course. Secondly American’s expect higher standards than the British, we do not have the level of service in the U.K. that you have here and we tend just to put up with things and not complain too much.
That being said we are all victims of Bobby Ginn and to a greater extent Lubert Adler. Just to give you one example, when the West Side was released in 2004 the sales hit close to $300m. What is significant is the infrastructure was paid for by the CDD the Golf Course is subject to a huge mortgage, so what did Ginn-LA pay for on the West side, the answer is nothing, they pocketed $300m and walked away with the profit, which like the Credit Suisse money went to Lubert Adler’s investors, this will be money the Attorneys will be trying to get back. They didn’t even build the Nicklaus Club House, it is amazing that they have got away with it for so long.
Again I am not defending what was posted on the Reunion Website, but don’t forget I would not be surprised if there was some Ginn people posting on there trying to deflect blame away from Ginn-LA and cause trouble amongst the owners themselves to create a divide. Do not forget they are 5,000 miles away and did not know how bad things were and paid at least 25% deposit which is why the Bank’s targeted them more as there was less risk. One Foreign National I have spoken to last week was given 16 mortgages by two loan originators, which was outrageous, those loan originators knew exactly what they were doing and one of them made $600,000 in 3 months in Reunion and $1.5m in Bella Collina buying and flipping lots when others could not and they both gave Ginn insiders mortgages they would not qualify for.
This is one example of Ginn-LA making money from nothing and running away from the Community without finishing it, I have plenty more examples which will come out when the time is right for the maximum effect.
They will be made to pay the piper, I can promise you that, I have said it once and I will say it again, this is the largest Real Estate Fraud in U.S. History and that is not my Statement but one from someone who is investigating this whole scam at a Federal Level.
Victims no matter were they are from should be United and should not blame each other I would go back to the old blog and I will put money on it that it was Ginn insiders posting those remarks, I know because they did it to me all the time on another blog, Ginn used to monitor those Blogs all the time.
its time for the slayer to come through with somet
mr slayer..you have been preaching for 1 year that ginn will be in jail soon,i think either that has to happen already or you have to take off your mask and come out of the closet
dont take anything personally but frankie hit it on the head . why would you purchase a house ON the golf course if you dont play gold,there are tons of properties on the ocean or even off of a golf course available
you are correct about the ginn boys answering on the web site,van bergen once commented to me that some of the employees were not happy with my comments. my response was you are doing such a miserable job here maybe its because you are reading the chat garbage.he never spoke to me again
Bobby trying again…
Word around the campfire has been rampant regarding Bobby trying earnestly to put another deal together to take over Bella Colina & Bahamas with a different group of investors. In light of all the fraud allegations, does anyone believe he can pull a rabbit out of the hat or would he be better served focusing on a pending criminal investigation?
ginn-LA Lawsuit
Reply to Sam- these things take time but believe me it will happen, I expect to see a lot of indictments in the next month or so, but it will take a little longer before Bobby & Dean get what they deserve. Investigations of this type take time, they have to make sure they have all the evidence necessary.
Reply to Mark S. I can see why Bobby would want to buy back Ginn Sur Mer, but not Bella Collina, there is nothing to be made there all the lots have been sold, unless he buys them back off the Banks and I cannot see the Banks wanting to play ball with Bobby again. It would be a brave investor that backs Bobby now with all the baggage he has.