The History of the Pelican Resort Club, St.Maarten

The main goal of this site will be to keep owners informed of past and future events of the resort. More sites – links and comments will follow so be sure to check back often. I have tried really hard to be factual on the events posted below. I ask all of you to help keep me straight on these issues below and what issues may follow. In all fairness I had given up on Pelican just after the take over by RRG in the way of the voting rights they are in possession of. I had hoped they would do the right thing and listen to what owners wanted. After ten years we are no better off then we were since first hiring RRG. In my opinion we are heading for another bankruptcy. History is repeating itself if one would only open their eyes to see. Is it greed and or corruption at foot here, I can’t say for sure. Let me ask you this if I may? At the Annual General Meeting of last Dec 2006 with 2 lawyers, accounting firm, RRG, TAPRC and Judy Young present they in fact tried to use the 508 FIP votes of units in default. Had they used any of these same-defaulted on unit votes any prior years? Now that has to make some of you wonder – just who is looking out for us owners? I don’t just make this stuff up. This type of thing has been going on since day 1. Just look up St.Maarten on the U.S. Department of State. They warn of a large number of complaints about misuse of maintenance fees. Is this true, I think we need to find out. Lets all help each other in getting to the truth here.

Posting a comment:

Posting a comment to this site might be a bit confusing for some. First step is to click on “comments” under each topic. 2nd type your comment. 3rd If you don’t have a Google account as with many, you may post with checking the “other” option and just type in your name in the new area that opens or check the “anonymous” option. Last preview or post. That’s it!

Monday, June 25, 2007

Why RRG has so many "DUMMY" Corporations – raise questions.

The Royal Resorts Groups - From what I know they appear to have been VERY CAREFUL not to sign anything other then maybe our first “expired” agreement between the Pelican Resort & Royal Resorts Group…… They have formed how many "DUMMY CORPORATIONS" since?

1. RR MANAGEMENT CO., LTD.
2. RR MARKETING CO., LTD.
3. Trident Sales & Marketing, LTD
4. Friendly Island Properties, LTD

The above has signed all if not most of the Agreements and contract to date… Maybe more corporations and deals we don’t know of?

My concerns are WHY would they have set up all these "DUMMY CORPS" in the first place? Why so many?

Royal Resorts Group – Publicly states they are the Management Company for the Pelican Resort Club, but on paper are they really?

I will be looking into the reason for a parent company to set up many “dummy Corporations”. I will be posting my findings under comments on this subject during the coming days.

Wednesday, June 13, 2007

Timeshare laws - Information

Updated - June 18th, 2007
It has come to my attention that some of the web links below have expired or are no longer active. Whatever the case leave a message if there is an area you looking for and I will do my best to track it down for you… You can also send me a message within the message not to post your comment. If it is of a sensitive nature, I would need a contact email, phone etc. to get back to you with the answer if I can find it.

Directive 94/47/EC of the European Parliament and the Council of 26 October 1994 on the protection of purchasers in respect of certain aspects of contracts relating to the purchase of the right to use immovable properties on a timeshare basis
Under : Article 2

For the purposes of this Directive:
Contract relating directly or indirectly to the purchase of the right to use one or more immovable properties on a timeshare basis. Hereinafter referred to as 'contract. shall mean any contract or group of contracts concluded for at least three years under which, directly or indirectly, on payment of a certain global price, a real property right or any other right relating to the use of one or more immovable properties for a specified or specifiable period of the year, which may not be less than one week, is established or is the subject of a transfer or an undertaking to transfer.
'immovable property` shall mean any building or part of a building for use as accommodation to which the right which is the subject of the contract relates, 'vendor` shall mean any natural or legal person who, acting in transactions covered by this Directive and in his professional capacity, establishes, transfers or undertakes to transfer the right which is the subject of the contract,

- 'purchaser` shall mean any natural person who, acting in transactions covered by this Directive, for purposes which may be regarded as being out with his professional capacity, has the right which is the subject of the contract transferred to him or for whom the right which is the subject of the contract is established.

http://www.ote-info.com/

NETHERLANDS: Contacts
Consumentenbond /Translate to:
consumer association Enthovenplein
1 Postbus 1000 2500 BA Den Haag Nederland Tel. (31-70) 445 45 45 Fax (31-70) 445 45 96 1e) Koos Peters,
kpeters@consumentenbond.nl 2e) Wibo Koole, wkoole@consumentenbond.nl Website: www.consumentenbond.nl


http://ec.europa.eu/index_en.htm

ACT:
http://eur-lex.europa.eu

http://europa.eu/scadplus/leg/en/lvb/l32016.htm

Directive 94/47/EC of the European Parliament and the Council of 26 October 1994 on the protection of purchasers in respect of certain aspects of contracts relating to the purchase of the right to use immovable properties on a timeshare basis.

If you believe you were misled:

http://www.ote-info.com/index.php?option=com_content&task=view&id=26&Itemid=4

If your complaint concerns a non OTE member timeshare seller in the UK and you are outside the 14-day cooling-off period before you discover that you have been misled. You can take up the matter with your local Trading Standards Office, which will handle the matter as a free service. In addition to the Timeshare Regulations of 1997, there is also a considerable amount of consumer legislation in this country which is designed to outlaw misrepresentation. The Trading Standards Officer will take up your complaint direct with the trader and his recommendation could be that you receive a full refund.

You also have additional rights of redress if you paid the seller by credit card (see additional rights of redress if you paid by credit card).

The national European timeshare industry associations grouped together within the European Timeshare Federation and spearheaded by the UK Timeshare Council, lobbied actively for the concept of a Directive which held a fair balance between the supply side on the one hand and the consumer on the other. They proposed detailed changes to the draft to achieve this throughout the period up to the final signing of the Directive in October 1994.



Organization for Timeshare in Europe:
http://www.ote-info.com/

We are founding members of the Organization for Timeshare in Europe which is the European self-regulating trade body for vacation ownership companies. As a member, we are obligated to comply with all laws as well.

For general information on the ECC-Net see:
http://europa.eu.int/comm/consumers/redress/ecc_network/index_en.htm

The European Consumer Centres Network (ECC-Net)is an EU-wide network to promote consumer confidence by advising citizens on their rights as consumers in the EU and helping them to solve disputes.
These Centers can advise you about your rights when you shop across borders and help you seek redress if you have a dispute with a trader in another EU country.

Europe Direct is a service to help you find answers to your questions about the EU.Freephone number throughout the EU:00 800 6 7 8 9 10 11
You can find online information about the EU in 20 European languages at:

http://www.europa.eu.int

Information about your rights in the EU is also available in 20 European languages at:

http://ec.europa.eu/geninfo/query/search_en.html
Advanced search:
http://ec.europa.eu/prelex/rech_avancee.cfm?CL=en

Official Journal of the European Union

http://europa.eu.int/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&lg=EN&numdoc=52003PC0241&model=guichett

http://europa.eu.int/youreurope/index_en.html

U.S.A. - Federal trade commission - FTC:
http://www.ftc.gov/bcp/icpw/lookingahead/lookingahead.htm


The Directive on Injunctions: An "injunction" is an order granted by a court whereby someone is required to do or to refrain from doing a specified act. The Injunctions Directive 98/27/EC establishes a common procedure to allow a qualified body from one country to seek an injunction in another. It aims to control traders that undertake activities in one Member State, which harm the collective interests of consumers in another Member State

http://www.ote-info.com/dmdocuments/OTeNews%20Pdf%20Files%20for%20Website/2004/issue04.pdf


The judiciary system in the Netherlands:
http://www.rechtspraak.nl/information+in+english

Alliance of Timeshare Consumers in Europe - “ATCE”
http://www.apaf-vtp.com

http://www.timeshare.org.uk

New legislation came into force throughout Europe on 29th April 1997 which will help timeshare buyers avoid some of the scams in the industry. The UK legislation is tougher than that of some of the popular holiday resort countries in southern Europe. The full text of the Timeshare Directive 1997 (the implementation of the European Directive on Timeshare in the UK) is on page: www.hmso.gov.uk/si/si1997/97108101.htm . For those not of a legal mind there is a good explanation at the bottom of that page. Or the consolidated version of the Timeshare Act 1992 is available from HMSO bookshops - (ISBN 0115154353)

http://www.opsi.gov.uk/si/em2006/uksiem_20063363_en.pdf
EU Consumer Protection:
5. The UK is signatory to multilateral and bilateral consumer protection co-operation agreements. In 2003, the Organization for Economic Co-operation and Development (OECD) agreed a set of Guidelines designed to improve co-operation between its members, including information sharing and co-operation on cases of cross-border fraud.
The DTI and OFT are also signatory to co-operation agreements with the United States Federal Trade Commission and Canada, Australia and New Zealand.

A study prepared for the Commission suggests that up to 80 million European consumers might buy more cross-border if they were confident about making purchases from shops or sellers located in another EU country.

THE ASSOCIATION OF TIMESHARE OWNERS COMMITTEES LIMITED
http://www.tatoc.co.uk/

Sunday, June 10, 2007

ROYAL RESORT GROUP GETS BOLD:

At the 2006 AGM, on the second day when a quorum of members are needed to cast votes, we find out that some way, some how, RRG / TAPRC/ FIP tries to vote the whole Block of 4004 votes.

When questioned by an owner about weeks that were foreclosed on, we find out that there are in fact 558 weeks that had been foreclosed on. AMF's for these 558 weeks are now owed to the PRC by FIP / RRG.

Q#1: Why didn’t Any foreclosed on units go back to the Pelican Resort Club inventory as per contract?

Q#2: We pay huge legal, accounting and independent auditor fees, representatives of which were present at the AGM. Why did no one question FIP’s right to vote these weeks?

Q#3: FIP/ RRG suggests that PRC received enough in rental fees to cover the annual maintenance fees. Wouldn’t it be nice if we could rent out our weeks for that kind of money? MOST OF ALL how come we ended up owing them $3,000,000 when we first hired them, didn't they collect rent to cover the AMF then??? If so where did thet money end up?

Corruption once again? But hey, maybe they just made a simple mistake here??? I'm sure they would like us to believe so, but with all the money that is being spent on lawyers accountants etc.; does a big company like this make such a serious mistake as this... My thought is that they are so bold, they think there are no owners out here watching them... We are here and won't go away anytime soon... I believe our best bet would be to sell the whole resort to a real company let owners get some money back and lets just start all over again. This way owners who wish to stay can and owners tired of all this BS could move on!

THE STAGE IS SET FOR THE REST OF THE TAKE OVER:

he 4004 votes bought and owned by FIP a subsidiary of RRG were first used to vote on to the TAPRC board, of all people, RRG - CEO Richard Sutton and some other RRG people. Enabling RRG to gain full and total control of the resort by way of the board. The first action of
Richard Sutton was to remove liens, mainly the one owed to the Vlietman bankruptcy trustees. Clearing the way for his new building permits and funding, resulting in more liens on the PRC.

THE TAKE OVER WENT LIKE THIS:

RRG used all the money owed to them as I see it - on the never collected AMF's on the units they were to have sold. RRG used this as leverage and even threatened bankruptcy, strong-arming the TAPRC Board into the agreement we have today...

You see there were other more favorable deals by other companies to save the resort presented by a few board members that were more favorable then the one we were getting from RRG. One offer was not to give voting rights just a right to sell / rent. A management agreement with not the 10% fee we now pay, but only 7%. RRG had won their war and wormed they way into what we now have...Email by yet another past TAPRC Board member. Confirming most of this.

1: New 10 year Management agreement.
2: Development agreement. (The Marina Residences).
3: FIP Purchase agreement. (The 4004 votes that RRG now controls).

The new Management agreement I understand has been changed from the 10 year agreement when Richard Sutton was chairing the TAPRC Board - to what is now a 20 Year agreement.

The Development agreement was not to have blocked any owners views when it was first presented to the board and owners. Now that too has been changed and some 12+ units will be totally blocked and another 12+ units will have partially blocked views. This will represent some 24+ units times the 52 weeks per units = 1248+ unit weeks owned by owners that have seen and help the resort by sending in all the fee's when asked... Yet none of these owners are being offered any restitution in any form! I am not the only disgusted owner! Read the 2006 RRG Board run Management Position Statement.

The 4004 voting block units are now used by RRG / FIP/ TAPRC to further their collective agenda... Now what I question is how was it that RRG / FIP was able to sell out all of these units in a short time, less then a year, but couldn't do it when we owned them??? Remember this is what they used as leverage to gain control of the resort. These are the same units they charged the 10% fee's on in their management agreement that we
ended up owing them more then $3,000,000.00 on??? Reason stands that RRG had the ability to sell these units when they first came on board as our management company, but didn't as a way to gain control of the resort... Very smart - it cost them nothing out of their pockets, only paper money in that term and picked up a $65+ million dollar resort in doing so!!!

ROYAL RESORTS GROUP MOVES TO TAKE OVER FULL CONTROL-The RRG Take Over:

Nearing the end of RRG first Management Agreement, a (3 year agreement) from 1997 to 2000. Whereas they had not fulfilled obligations contained in this agreement.

1: 5-star / Gold crown status.
2: Sale of the unsold inventory.
3: Fiscal liquidity.

None of these obligations were met by the end of RRG contract in 2000. What RRG had done in fact was to run the resort deeper in the hole by charging the agreed upon fee of 10% on the units (unsold Inventory) that they agreed on selling in their 1997 management agreement contract. A contract which in fact I believe they had written by their lawyer Tom Davis (AKA godfather of timeshare law) and start up owner of Interval international. So by this time we were in way to deep with RRG, owing them what they claimed was more then $3,000,000.00 / $3 - million U.S.
dollars...

THE NEW MANAGEMENT COMPANY CALLED - THE ROYAL RESORTS GROUP:

This is my reason for generating this web site, I will dedicate it to them. The Royal Resorts Group was hired to manage the Pelican Resort Club in a vendor capacity. A salute to Mr. Richard Sutton and his action and the action of this above company. RRG - Is a network of privately held companies registered in the Cayman Islands, Mexico, Florida and maybe elsewhere. You see, we don't know much more about them other then they have a resort in Cancun Mexico. They hide behind private Corporations world wide like snakes in the grass. It is said that ARDA / ISCO recommended this company to the TAPRC board, rumored if you will because I think this gets deeper with all the other secret dealings that have and continue to go on with Pelican and RRG company. But in a very short time the RRG was hired to manage the Pelican Resort and in less then 4 years they have managed to take full control of the resort. Mr. Sutton's first act was to gain control of what owners on the net were saying. He offered a FREE trip to their lovely Cancun resort in Mexico to the owner operator of the Pelican Resort Clubs main email forum ran
by Judy Young. Before this trip Judy Young questioned not all, but some of the things that RRG did. After this time, she gave 200% to them stating that they are a very good company. Judy Young has, as I have said before, always been biased in her postings about TAPRC. Her and Bob Ryan and his Wife Rosemary Ryan are close I might go as far to say VERY CLOSE. Judy received perks or at least ISP service from TAPRC. I assume Mr. Sutton saw an open door, someone that could be bought and offered Judy a deal when he invited her and her husband a trip to his Cancun Resort.
Judy Young now holds a position on the taprc board. I guess there are more perks to be had by Judy Young. I like the part where Judy states "Iam not trying to take sides, rather I am attempting to encourage the Board to communicate. We are all in this together. Communication will give us a better understanding of the situation. It is time for the Board to speak up and give owners all of the facts". Then i read on her postings of emails - that she will no longer post neg messages from owners!

OUR SERVICING COMPANY FIGHT:

Pelican Resort used a company called the vacation store, Francine Zukerman ran the Vacation Store and closed the doors Dec 31, 1996. They where always helpful when you called to confirm or book an extra night or two for your next visit to the island, in my opinion it was operated very professionally. Why then did they close? I was able to find out, by talking to a member of her staff, that they were fired for being discredited and associating with the former vender Vlietman. Also a member of our Board TAPRC was dating Ms. Zukerman. I was also told there was a legal action and that even gag orders were in place. Next thing we know we have a new company called ISCO who will be servicing the resort. Again it is unknown how they came about and so quickly. They seemed ok, I have never really dealt with them, nor heard anything too bad about them, at least none that I remember at the time of this writing. One can only assume that ISCO’s other business end handles all RRG (Royal Resorts Group) properties. So it’s a good bet, they must be other arm of the RRG companies...

TAPRC then hired a resort manager in 1996:

what did these stooges know about running a resort? Mr. Trowbridge was paid the sum of approx. $100,000.00 to manage the resort. This didn't work out how TAPRC wanted it to. It seems that board member Bob Ryan and some of the rest were using resort founds to take owners and friends out to dinner on the French side and for trips to the resort. You know, they had to stay on top of everything, not knowing anything about running a resort right? We all know how much that can cost. Read what one of the first TAPRC Board members had to say as his Parting Words - link. Michael Glantz is very diplomaatic in his writings, so read between the line of what he says here. Mike and I went head to head for
year online when TAPRC came to be. We came to an understanding after we sat together at the NY meeting - The Pelican Resort AGM. He and I learned alot from each other. I believe he had lost respect for some of his follow board members at this point. I think you will agree just who they would be in his parting words link - above... Mike pretty much confirmed what i heard from Mr. Trowbridge. Yes I had the pleasure of meeting Mr.Trowbridge after he was no longer resort manager. I had a nice talk with him regarding things that had gone on during his time as resort manager, I don't want to go in to detail, but will say they had major tones of corruption / abuse.

Background on Keith W. Trowbridge, Ph.D: is the author of Resort Timesharing: He has been involved in the development and marketing of 35 timeshare, he is known as the godfather of timeshare since being one of the first in this concept. Being such, I believe he didn’t agree with all the excess spending by some TAPRC Board members. Let us note that $100,000,00 is a lot less then we pay RRG now to manage the resort.... $1,000,000.00 - 1 million plus what they make on sales etc:...

EVERYDAY TIMESHARE OWNERS BECOME - RESORT OWNERS:

Vlietman again worked another deal with his stooge board TAPRC, Bob Ryan was chairman. Vlietman would sell the resort to the board TAPRC and TAPRC agreed. I can't give many details here as it was all done backdoor. But the result was that Timeshare owners would be
charged "A ONE TIME SPECIAL MAINTENANCE FEE TO BUY THE RESORT AND WE THE EVERYDAY TIMESHARE OWNER WOULD THEN OWN THE RESORT". Simple solution from simple minds I guess. But that's just what happened, owners forked over more money on top of the AMF's yearly to buy the resort. This one time assessment to be “owners of the resort” was nothing more then a ploy to get owners to pay more. We were told we would be owners of the resort, but in reality Pelican owners never were given full details of the day to day operations or any details of the resort or even asked for any input on what as owners would we like to see at the resort! Guess what the first action from our new TAPRC board / Owning company was? Owners were rewarded with new set of bylaws, which stated that we could be assessed by TAPRC Board / Owning Company over and over again and we were… When will be the next one?

THE BATTLE OF THE BOARDS TAPRC vs. PTOA:

Being turned down by the PTOA upset Vlietman and he decided to get a new board of directors. Vlietman found some stooges to front for him, made deals and hand picked his new board of directors called T.A.P.R.C. the board that is in office to date. All cited by the bankruptcy trustees; read link about backdoor deals. Bankruptcy Trustees Report
Vlietman had to discredit the PTOA board serving at this time, so he used what little resort funds we had left, earmarked to repair the major damage done to the resort. Vlietman sent out newsletters to all the owners - which only cost around $8,000.00 to $10,000.00 between printing handling and postage for each mailing. Vlietman sent out these newsletters it seemed, almost biweekly at least 6 mailings in all. Just to
discredit the board in place and get his board approved by the owners.

The PTOA tried to fight back, using mostly their own money for legal fees, court cost etc: other then the $20.00 the PTOA asked owners for. They couldn't compete and lost at the special general meeting Vlietman held and then the court battle. The PTOA was able to get a notice out to all owners in which one part was a questionnaire of what owners wanted at their resort. This is about the time I got involved with the PTOA and tried to support them and also my reason for doing so. It just made all the sense in the world to support the board that asked owners what they wanted at their resort.
This is also the time when the emails started flying online, - some owners believed what was fed to them by Vlietman and TAPRC and some supported the PTOA. Judy Young supported the TAPRC board. Friend of Bob and Rosemary Ryan (TAPRC) who we later found out were
paying for Judy Young's ISP service since Judy claimed a hardship to pay for it. From what I can see since Judy Young's formed an alliance with Mr. Sutton she seems to be able to afford 4 to 6 week vacations now. More on this later.

THE PELICAN OWNERS TIMESHARE ASSOCIATION:

The P.T.O.A., Comprised of Lawyers, CPAs and business men, Filed court papers in St.Maarten, using their own money, to fight Gonzy's claims. Shortly afterwards, a very big hurricane, "Cat 5", hit and sat on top of the island for nearly a week. Vlietman must have smelled insurance money, because he came running back into the picture soon afterwards to save the owners from such a travesty as Mr. Gonzy. At this time the PTOA found all Vlietman records and discovered just what he had been doing, which was costing the owners more than 35% in excess AMF's being paid. It is believed that the excess maintenance fees were used to cover his short falls on his new development the Royal Palm's across the bay. Vlietman went to the new board (PTOA) and tried to make a deal, but was turned down.

THE FIRST SALE OF THE RESORT:

Dr. Vlietman sold the Resort to Mr. Gonzy, who found no money left in the resort. Mr. Gonzy sent letters of notice to all owners, which said; If you want to keep what you paid for, send me 25% of what you paid, for what you own… At which point some well-intentioned owners at the resort banned together to form an ad-hoc board of directors (The PTOA) to come to the aid of all the owners.

THE BANKRUPTCY:

Owners came to find out years later from the bankruptcy trustees that Dr. Vlietman was using the main resort funds to make up for the shortfalls of the Royal Palms quarter share resort across the bay. This caused a huge drain on the main resort. The trustees went on to state how this was done. This was to loan to another one of Vlietman's off island companies at a low rate, which he went on borrowing back from yet another company that he owned at yet again a higher rate. Here is where the Resort started to fail, rooms, upkeep of the grounds and so on until he drained the resort and put it up for sale.

OPENING OF THE RESORT:

The Resort was first opened in 1980 by the developer, Dr. Marten Vlietman. The Resort is named "The Pelican Resort and Casino" and is located on the island of Saint Maarten. Times were pretty good in these first years - owners were happy, the resort was fully operating on a top level and received the highest industry rating of "5 star" or "Gold crown" Resort at this time. One of the largest Timeshare resorts in the world.
Then Dr. Vlietman decided to build next door and directly across the bay from the main resort. This is when the resort started its downhill spiral,spinning out of control. This new project was to be a bigger and better type of timeshare. Quarter shares, meaning that you owned for 3 months per year, the same as is being offered now. You owned your unit to do as you pleased. It came with a storage locker you could keep your belongings in for the other part of the year you didn't own. Everything appeared to be fine with this concept to the average owner. Until we noticed our annual maintenance fee's increasing, a fee owners of timeshare pay to cover the resorts day to day expenses. So owners forked over this increase.
Side Note: The Flamingo, Atrium and Royal Palms are no longer owned by PRC. These are the buildings that helped put the PRC into bankruptcy. Proceeds from the sale of these properties seem to have vanished.
 

Disclaimer: This web site is designed by an owner of the resort and for the owners of The Pelican Resort Club. Everything contained herein is believed to be accurate. If anything contained within this web site shall be misleading or inaccurate feel free to contact this web site operator with your proof, upon verification changes will be made. Views / opinions and Posted Comments of authors are their own.