Wednesday, July 23, 2008

What this case is about

The Department began an investigation during November 2006. The inquiry focused on several issues including a) the offer and sale of investment interests sold in luxury resorts located in the Dominican Republic, b) the disclosures made to investors in the resort, and c) mortgage loan origination activities.

After lengthy negotiations, EMI Sun Village, Inc., Sun Village Juan Dolio, Inc., and Sun Village Juan Dolio Associates, LLC entered into a settlement agreement with the Idaho Department of Finance on July 19, 2007. James Catledge and Impact, Inc. entered into a separate settlement agreement with the Department on July 19, 2007. In part, the agreements call for the offer of rescission (refunds) to affected Idaho investors.

While the settlement orders called for rescission to be made by December 15, 2007, no such rescission offers were made until late in the first quarter of 2008. Few investors actually received refund payments as expected. The Department’s interest in this matter has not concluded and the Department is considering what further action may be necessary.

17 comments:

Anonymous said...

Have any complaints been lodged by people who have invested in this scheme and who are now not receiving their payments on time?
Currently, this is happening and people are being offered the chance to convert to "fractional ownership" of the resort in the DR, Maxim Bungalows. NetWorth Solutions is stating that Elliott is having cash flow problems and this may stem the tide until they finish construction on the new site they have been "selling".
It seems risky either way. Lose now or later. Any details coming your way?

lionness said...

I can tell you the Elliotts have disengaged with James Catledge siteing Impact Networth received money from the resale of clients inventory from Juan Dolio and did not pay the clients. In addition, representatives are calling Juan Dolio clients about their promissory notes asking for repayment now. I received such a call yesterday and I can also tell you the contract states there are no payments due until Juan Dolio opens. Further, there is additional language that goes on to state no payments are due even when the resort opens. Payments will be deducted from rents and any money left over after prorata share of expenses will be paid out as rental income to owners.
This certainly sounds like the possiblity of a class action lawsuit. Also I am not a resident of Idaho, but if I were, given there are unpaid fines and unresolved orders handed down by the court, I might be inclined to start putting liens on personal real estate holdings and other personal property owned by the Elliots and James Catledge. There are alot of clients accross the country that are going to be harmed financially by this group of people. I just read a press release from May 29, 2008 from the Financial News, Henderson, NV that James Catledge had dinner with President Bush and was personally invited by Mitt Romney. He is also a big financial contributor to President Bush and the John McCain campaign. It also goes on to state James was on the Nevada Finance committee with Mitt Romney on his own Presidential bid. Go figure he has the money for the presidential campaigns but has broken promisses to his investors and cannot pay a court ordered fine. I am wondering if this is news worthy?

Anonymous said...

Hi Lioness and IDOF. I have been dealing with NetWorth Solutions all weekend on behalf of my grandmother who "invested" in Juan Dolio. She was promised a 10% return on her loan for "non-use". She received a letter last week from Elliott group stating that they can no longer make their non-use fee payments, after paying her only 1 1/2 payments, and are offering fractional ownership at a discount.
How many people are counting on this non use fee payment as a major source of their income? My 87 year old grandmother was counting on it for HALF of her income. Now what? This is in California.
Now I have heard from NWT that they are hiring lawyers to get Elliott to honor the contracts. Our family just wants my grandmother's money back. She had a small stroke a few days ago, and we are panicking about paying for long term care. We wonder if purchasing fractional ownership will provide us with the opportunity to sell, rather than hope for the non-use payments.
From your post, lioness, it seems that both sides are rotten, but for now we are hoping NWS will get us where we need to be. The letter from Elliott was pretty damning, a huge admition of ugliness. NWS is
about as low as they come for conning older people into investing in high risk ventures and going on and on about how they are "educating" people about their money. We sat through their presentation on Friday and it was very strange. They took a whole hour, slowly trying to get a group of people excited about sitting down with NWS people so they could review their financial info, and inevitably be talked into purchasing high risk "product." This is what they "teach." And to do it to anyone is a shame, but to do it to old people is a crime.
Our intention is to contact the California Attorney General and alert their office about these people and the suffering they have caused. It is good to see the Idaho State case and have that info to back up the complaints.

lionness said...

Hi about time clothing & IDOF,
I learned yesterday through a conference call, that there are in fact resales of investors fractional ownership at Juan Dolio that sold and the money was paid to Impact Net Worth, James Catledges company, to distribute back to the investors and the money was never returned to the investors. I know this because one of my clients name is on that list of resales. I would suggest that you contact the Attorney General's office on your grandmother as soon as possible. Now her investment is different than the Juan Dolio fractional ownership. She had invested in what is called the "Residence" which guarnateed an annual rate of return and then her principal money back in 5 years. The Elliott's are unable to make those payments siteing once more James Catledge embezzled money from the Elliott's. Given that James flys where ever he wants to on a private jet whever he wants, and he is throwing big money to the Republican Campaign, I would say this is more than just heresay and mere accusations.

Anonymous said...

Hi Lioness, May I ask what is your connection? What do you do for a living? What state do you live in? I am just curious, trying to figure out what to do. Do we wait and try to let NWS try with lawyers, or do we do the conversion and sale. Either way we seem to not be able to get our money, despite what NWS is saying. Should we try to do the conversion then aim at Elliott for the reimbursement?
I really appreciate you talking with us. You seem to have clients interests in mind. Any more info would be super helpful.

lionness said...

Hi about time clothing,
I am a financial planner and I have several clients that purchsed through Impact Networth, or what ever they call themselves today. I am located in Arizona and so are my clients, I do not have any affiliation with Impact other than I purchased from them as well. I would highly suggest you do nothing in terms of any conversion and get legal advice as soon as you possibly can. I would not wait for NWT to act because they are just as much to blame for the current outcome as the Elliott's. If you sign conversion paperwork you will be getting your grandmother in deeper and you need to stop the bleeding.

PinPlayer said...

I, too, am an investor in both the Sun Village Residence product and the fractional ownership plan at Juan Dolio. I have been very close to many of the principals at Foundations Financial in Arizona - they were a big selling agent for these products. I am not and have never been an employee or agent of Foundations Financial but I did help launch the company. (I'm also guessing I may be familiar with Lionness on this post. Hi, Lionness.) Yes, Elliott needs about $13mm to complete the Juan Dolio Project. They are in need of a "white knight" - either a venture capitalist or an established hotel chain that can take on the uncompleted project asset, inject the neseccary capital, and bring it online. Or Elliott will just have to liquidate the asset and then us fractional investors get in line as unsecured creditors. In that scenario we'll see a return of cents on the dollar and that'll be way down the line. As far as the letters and phone calls are concerned regarding investors being arm-twisted into paying off their mortgages, DON'T DO IT! This is a strong-arm tactic (and a desperate one at that) to squeeze the current investors into coughing up more dough. Elliott is doing everything it can to generate the 13 million bucks it needs to get the doors opened at Juan Dolio. Don't be foolish. Don't even think about buying out your mortgage at a discount and don't respond to the phone calls. There is no legal basis for calling in the notes at this time. Look - we laid down 50% to get the project rolling. There isn't a court or judge in the world that would agree to having us pay the remaining 50% BEFORE THE PROPERTY IS EVEN COMPLETED! Are you kidding me? The model here is that, as investors, we make payment on the asset after the asset is open and generating cash flows. That's how business works, right? Sheesh!

concerned client said...

Be careful "learning" and relying on slanderous information from people on conference calls who in fact work for Elliott telling you lies about Catledge. Elliott has broken promises and is desperate and willing to say anything to get out of the mess they put themselves in. Ask Elliott for a financial accounting of all money received and spent. Let the money trail speak for itself. The DR is the forum and joining other clients there against Elliott is the strongest position to compel Elliott to keep their promises and secure the real property assets purchased with our money.

Unknown said...

i am a founder investor with the elliotts products and so far they have been very unprofesional with me, ii havent receive my payments a while ago and they are not doing what was promise to me at all.
honestly i dont think that IMPACT are the bad guys, i have meet alot of them and they are all investors like us as well.they need answers like us and they are demanding the elliotts to provide it for all of us. this has fustrated fred because he is not use to meeting demands.

this is what i received after the elliotts met with the leaders in salt lake city.
take a minute and read it, these are Fred Elliott words.

Fred Elliott’s comments, transcribed from a meeting held June 18, 2008 in Provo, Utah,
where he explained the Elliott Corporate financial condition to an audience of 44 Impact
Real Estate associates.
June 18, 2008 9:06 AM
Fred Elliott
“Some people will walk up to the front of a group and say something, great to be here, or
like Provo, my favorite city, You guys in Utah are awesome or how does everyone feel?.
Well, one thing I learned about James Catledge is the only tine he invites me to come to
this group is when it is time to go to work. He never invites me to a backyard BBQ or to
Ride in his golf cart; if you see me, it’s probably all about work. That’s who I am.
Over the years, for over 40 years I have been in the same business you’re in, for over 30
years I have been in the business I’m in today as you know. I started off in as a business
owner, started off in real estate syndication domestically in US and Canada
Identifying what structure in what municipalities they will be in.
Over the 31 years I hung my hat on my company I have been accused of being late of
delivering product, on more than one occasion. I have been accused of not properly and
clearly identifying markets and market trends. On more than one occasion. I have been
accused of selling too soon and been accused of selling too late, and justifiably so, I have
been accurately accused of all those accusations. .
But in those 31years of hanging my hat on my company I have never been accused of not
being truthful, and justifiably so.
And, if you are going to get out of bed this morning, as it looks like you all have at this
point, during that day, you may face some challenges. That’s not what’s important, what
is important is how you are going to deal with them.
This company that is now known as Elliott that I hang my hat on many years ago. Some
of you were probably still in school. Well…
Who wasn’t born? Laughter.
When I started this company in1977 for many, many years, all except the last 4 years
I was hands on in every aspect of the company; one day it made sense for Fred Elliott to
become the chairman.
The chairman from my experience, one of the chairman’s chief responsibilities is to let
the team be the team, to get out of the way. Make sure you surround your self with the
right team members which is another whole book. You can read it, Jack Welsh; “I’m
Winning”, and to know enough information, but not the miniscule information
Let me tell you what happened to me in the last 2 weeks. As a matter of fact it started 2
weeks ago today. I was in the Dominican Republic.
I was doing what I do at my level down there when I walked into our executive vice
president’s office on Wednesday afternoon, the 4th day of June.
It was the first time I was brought up to date on the tardiness of the NUF payments’
which is the income of the residence product.
Taking a page from Abraham Lincoln’s book; “My style is not to react to bad news or
good news, but to come to common ground on the news and make a decision when you
are not excited or not angry or disappointed”.
The next morning I walked into the office of the exec VP, Thursday, June 5th at quarter of
9 in the morning and at quarter of 5 in the afternoon it was my decision to get on the
phone with people in the Mediterranean and that gentleman and that gentleman, and a
few days later we met in Toronto on June 11.
It is now June the 18th, so from 2 weeks, to where we are today.
I am not here for shock and awe, and what ever shock and awe I give you will not come
with out solutions.
We concentrated as a company several years ago, it was decided that the US would be
our marketplace for the future on Real Estate product and on Hospitality product.
I want to talk about the Residence Product. I want to get clarity on the resident product
Residence product earns income from 2 sources:
It has cash flow coming from having our guests, on the hospitality side, people on
vacations, booking their vacations, making their stay and leaving money on deposit.
It also comes from Real Estate sales. I will pause here for a second as you are all taking
notes.
What we do is, we design, build and manage the hard asset that creates the financial
value to this whole team.
Your team are your investors - Our team is you.
If we are going to build that asset, it requires capital; the capital to build that asset
comes from residence sales.
As that asset is being built, there is a term in our industry called soft costs where we
build in a developer soft cost, during the period of construction, from the time we put a
shovel in the ground until it is finished, the income for your investors in the Residence
Product is paid out of soft costs that is built into that construction budget.
The day the product opens, the people who have money the residence product receive
their interest income from the sale of that product to the vacationers, to our guests, to the
person who books the vacation, and they make a reservation, come down, and stay in the
room, leaves. That’s where the cash flow is generated from.
That capitol that was structure through the residence that built the asset, that capitol is
regained through the sale of the RE sales.
Hospital side earns the cash flow to service the investment and the Real Estate sales side
earns the profit to pay the capitol back.
At our end we have challenges in 2 areas that we are totally prepared to deal with and
are dealing with.
1. The hospitality sales market is down due to the current recession that we’re in.
As a company we have tightened our belt and will continue to tighten our belt everywhere
we possibly can to help get through this recession, and it’s not going to end, it’s
temporary.
But from my point of view, as a company, we are prepared for it to not get better this
term.
I don’t know how long this recession will last, if you know you tell me how long it will
really last and how deep it will go, but we are clearly into it.
We will come out of it.
The NUF is dependant upon our ability to have sales in the hospitality field.
You take all that industry experience, on what occupancy should be when you put a new
product in the market, i.e. Maxim Bungalow at Cofresi. The industry experience is this,
our experience is this, when you launch a new product, we have an excellent reputation
in the filed by the way, if you go to Trip Advisor or Expedia.com, Sun Village ranks #10
or 11 which is right where it should be and you go on Trip Advisor or Expedia.com,
Maxim Bungalows are ranking number 1 or 2, which is incredibly high for a product that
has only been opened a couple of months.
The industry will tell you, based on opening that year 3 or 4 quarter of opening that
product, the cash flow generating from this asset should be represented by having 50 %
occupancy. Not when you open the door, but by the 3 or 4th quarter your occupancy
should be up to 50%. And by the 5 or 6th quarter. You will up to 70% plus and you will
see optimal profit.
The marketing minds which we have on our team and the marketing minds on Maxim
Magazine who have committed to us 30 % occupancy. -
The occupancy the first month was 10%, which is the reason we were tardy on the 1st
quarter NUF.
NUF is to me like getting a dividend on a stock. I am sure all here have owned a stock
and the dividend on that stock will vary in relation to the earning of the company who is
that stock...If the earnings go down, there will be a low dividend,. If there are no earnings
there will be no dividend
If there are high earning there will be a significant dividend
We as a company Elliott have a plan. Lots of time when I think we I mean us
I am here for accountability I try to get away from the I thing, when I say me, I mean
Elliott.
We have committed through a plan which your leaders are totally aware of, to commit to
the June 30 NUF. I won’t say that all clients will have it on July 3 or 4, but we are
committed to make sure that they receive their June 30th non use fee.
I cannot commit to pay the September 30th NUF, but there is a solution.
The solution is, let me tell you what I was involved in t in the 70s; when you go through
life, it doesn’t matter how much education you have, it doesn’t matter how much
experience your have, it doesn’t matter how old you are.
Age is a factor that only comes with age. I am not saying it makes you any smarted, you
guys who weren’t born in 1977, I had already been through a deep cutting recession in
1971 that was brought on by a shut down of oil supply in North America, where you
couldn’t find gas in North America at any price.
It wasn’t 5 bucks a gallon, filling stations were closed. Finally after reserves started to
rise, if your license plate ended in an odd number, you could get gas on odd days and
even number on even days, and if you ran out of gas on the wrong day, you were out of
gas.
Only age can give you experience like that.
I am going to take you to the mid 70s. I was in the mutual funds.
In the 60s no one knew what mutual funds were.
By the 70 everybody decided they wanted one,
What happened was that people that weren’t even qualified went into the mutual fund
business .I’m not talking about the distribution and sales level; I’m talking about those
who said we now have a mutual fund level.
People were buying mutual funds in box car numbers.
Let me tell you where the money was coming from that went into those mutual funds.
The money that was going into those mutual funds was going directly into the stock
market.
There was not a stock broker telling his investors, I think it’s time you stop dealing with
me and the commissions I make, and dealing with Joe Blow’s mutual fund, the money
was coming from the banks
Money was coming in large numbers out of bank deposits and going into mutual funds.
There are a couple of things happening here.
No 1 the market is losing intrinsic value, the sheer volume of cash had to find a stock to
buy.
I was in the industry at the time when the companies used to do a stock selection process
that they threw out the window because they had more money than their selective stocks
to buy. They were just buying stocks. Guess what business the banks got in?
Banks weren’t stupid; how are we going to take advantage of this.
It was the late seventies; they were spending more money in visual advertising and
television advertising on why you should buy mutual funds and not, spend money in
education loans, new car loans
People who weren’t qualified to sell the product and people who not qualified to borrow
the money were borrowing money form the banks who make it easy.
I participated in a large way with high capitol investors. At that time they were putting in
not 200K but 400 600 or 800k - a lot of money. You do not have to be a genius to know
that my commissions made on 400K were better that commissions made on 200K. We all
made a lot of
At that time my company was 4 yrs old, I didn’t have a James Catledge, Brent Goodrich
or a Steve Orcino to go to say you know what guys, that something just doesn’t feel right.
When you have a lot going on, it’s nice to have some light moments. I am an
entrepreneur. So here is my definition of an entrepreneur, if you weren’t an
entrepreneur, you wouldn’t be here this morning.
An entrepreneur lives by his wits. That’s my definition of it.
I don’t have a crystal ball, I don’t have an MBA, and make all correct decisions, I make
lots of mistakes. One morning in my hot tub in the summer of ‘81, July I believe, I said to
myself, this thing is going to blow up in people’s faces. I am going to help these people
make net worth. To build net worth, it’s not about holding the ground you captured
because we need to hold ground, sometimes you just need to hunker down, put up your
defenses, and wait for the shrapnel to stop flying and now focus on more new ground.
I made a decision on my own that I was going to take off on a mission and speak to each
one of the investors I had leveraged. I wasn’t gong to make a commission on it as I had
already made a commission on the original sale. But you know what; it was time to put
you in a position of security in this. And this was the real asset I had going for me
In ’81, on a one year bank deposit, do you now what the interest rate was? It was
what…20%. So, for one year you could get 20% on your CD. You could lock up your
money and make 20% on a CD and get a 20% rate of return.
Mortgages, what were they? 18%
I went to see each of my investors, it took me 6 - 7 weeks to talk to them all, I convinced
most of them to cash in their mutual funds, pay off their leveraged loans and sit in a fox
hole and collect 20% and pay your taxes, government is going to take 51% of your
income, but hold that ground that we’d moved to.
Most followed my advice some didn’t
The ones that didn’t some got hurt. The stock market dropped in November of ’81.
The market dropped 48 points; you can’t get out fast enough to save your life on that one.
The message to you today is this; the moral to the story today is this: the people that
converted under my leadership, some of them today are investors in the original land
purchase 22 years ago on the first land we did in the Dominican Republic.
Ones’ that didn’t convert, they remained clients, but the relationship between them and
myself never remained the same, it was just never the same.
Your people need your leadership, you need my leadership. I need his leadership and to
protect – put your investors in a secure position.
Today I’m here to talk about conversion.
Today I am here to talk about converting from the Resident Product to an asset backed
ownership in Real Estate, and here’s what it will give your investors:
They are going to get a check for June 30. You can’t count on September.
Love to be able to tell you different; but shoot me if you want. I am telling you the truth.
By converting, your clients will gets to own titled Real Estate, your client gets to own
titled real estate that can be sold immediately in a resale market, either in whole or part.
They can do a partial liquidation or a whole liquidation, or they can hold.
If they hold…you know the good news about the Maxim Bungalow 10% occupancy of the
Maxim Bungalow the first 4 weeks of being opened? The occupancy rate will go higher.
That’s the good news. That’s the good news.
Am I prepared to get tougher?
Yes I am, that’s my posture right now. But it is going to get better. What will happen, is,
we have been doing; necessity is the mother if invention, we have been forced by
necessity to tighten our belt down. So that if we can operate today by having one light on
instead of 3 light on, we’ll have one light on. I’m talking about things like lighting the
hallway; I’m talking about things like mothballing a section of the hotel.
Mothballing the hotel, but not letting anyone know its’ mothballed.
I’m talking about like having lights on in people’s home but it’s mothballed. Not having
anyone know we are mothballing. Cutting our expenses back to the bone on the
operations side which will change the number we have for profitability in cash flow.
In understandable terms, I’ll come around up there myself.
The first thing, when a person converts.
And when the Maxim Bungalows are profitable that will be shared after expenses,
50% with that owner, 50% with Elliott. My message today,……………. is on how the
NUF works.
My message today is……….
The swamp is being drained; the alligators are going to be pushed back.
Convert; like I did in the 70s then you will have that client forever.
The 2nd message I want to leave with you, we’ve been together 5 years. we are going to
stay together.
This meeting that we are having right now, that I’m having right now, we will have
again. I don’t know if it will be 9 years from now or 7 years from now. Or 3 years from,
but it will have this meeting again.
That’s my commitment to you.
It has been a pleasure being here.”

chales said...

i am also an investor with the elliott and i was searchin for information in other blogs and i found the information i am placing below from one of the elliott employees, my wife and i are very concerned now regarding the elliotts.

read below,


As a long time current employee of Elliott, I have seen a lot.
Before Net worth the impact people, Elliott had nothing, nearly broke, they were selling shares of their company to Canadians to stay in business, the impact people brought us higher wages, the best resort in cofresi and POP, and now Fred and Derek want to keep all those monies and not honor all that goodwill.
I have seen it all, I have cleaned up after drugs parties, I have seen Fred with prostitutes, I have seen how all the money has been mis spent and now they want to steal more money from new people.
I have to say that the impact group is full of good people they tread employees very good when they are down here, they have been very respectful with our country and our people and these Canadians have made a really big mess.
Derek Elliott is all about movies, magazines, fancy clothes and even crazy drugs parties and everybody knows that here, I don’t know why did it take so long for the impact guys to figure them out?
Derek Elliott is like a youth and his dad is no better maybe even a con man.
I really pray for all these investors and will stay here as long as I can.
I wish I could do more but these people here are so mean to clients and employee, they just care for their own well been.

Unknown said...

As an employee of the Elliott group I can assure that Mr. James Catledge and NWS doesn’t have anything to do with the mess that the Elliott has.
I have been working in this company for 5 years and I have watched Elliott hurt shareholders and impact clients, I have seen a lot of things that are not right.
Mr. Catledge is an investor like all of you and he wasn’t the person managing the money that came in from new and old investors.
That money was all deposit in Elliott’s accounts that were manage by Elliott staff, the Elliott’s are the responsible of mismanage of those funds.
Mr. Catledge and his hold team believed in this program like all the investors did and they trusted the Elliott’s.
Everybody has been betrayed by the Elliott’s, the clients, the sales force, we (the employees) and of course Mr. Catledge.
They just took this opportunity to put some money in their pockets and live a life of luxury.
I know for fact that the resale money doesn’t go to NWS or to Mr. Catledge account because I have access to that information and the checks go direct from here (Dominican republic) to the clients address, this is just another lie that the Elliott has created to look like the good guys.
Let me put it down this way for all of you, NWS was only the sale force that Elliott had to sale their projects but they never managed anything but clients and of course the agents were paid to do so because that was their job, now does anyone of you are going to tell me that you will work for free?
I have seen in this blogs crazy things and I just can say that the Elliott’s are the ones who have all this mess because they received the money and didn’t use it in what they had to.
I have heard that DR lawyers are working on this case with some clients and I am very happy because I know that legally the Elliott’s are breaking a lot of law rules.

I really want to help all these investors because I know that most of them gave away the only money that they had, that is why I am still in this company and you can count I will be back here and in every blog I can find to let you know what is really going on.
All clients deserve to know the truth.

its hapening said...

I run a foundation in Kenya Africa and Catledge and some of his key executives have given generously, in hopes of raising awareness for the work we do there.
I have to share this since I seeing so many interesting additions from mike Lawter on this blog, he is obviously hostile about being terminated from the impact group.
Mike was invited by Catledge to join Barbara and I and some other volunteers last year to see firsthand the work we do in Kenya. Mike took the opportunity to serve himself while the rest of us focused on needs of the village.
Oddly, he decided to use this charitable experience which had been financed completely by his company in hopes of filming and providing traction for the future efforts from the impact group.
Mike was a board member and trusted ally of all impact leadership , mike choose to become promiscuous with one of the young girls of the village, I had a visit man to man with him on this point.
6 month after returning to the states I hesitantly reported to Catledge, he ask me for mike and his marriage to keep this behavior to myself and I did.
I now see and presume this must be the cause of his dismissal and hostility, I have heard but cannot verify he had done the same thing in the Dominican republic with the employees, I can see that many of the slanderous remarks are clearly him spewing his anger about his release from the impact group.
I have learned he was paid over 250K the year he was released and this was a very high income for a man of his character and lack of education.
Mike Lawter needs counseling and his sweet wife needs her head examined for putting up with his garbage.

PinPlayer said...

Has it occurred to anyone that the Elliotts and Impact are nothing more than co-conspirators? Look at the situation we have here. Millions of dollars are unaccounted for, commissions have been paid, and we investors have a half-built resort on our hands. And now the Elliotts are screaming that Catledge and company are crooks, but there are just as many blogs that tell us quite the opposite. It doesn't take Sherlock Holmes to figure out that both parties have dirty hands. Hell, Larry Holmes could figure that out. I think it's quite clear that BOTH Impact and the Elliotts have engaged in malfeasance both jointly and severally, and now they're trying to position themselves to avoid the impact (no pun intended) and fallout from the lawsuits that are inevitable.

Unknown said...

FYI

Elliott Fails Clients
February 23, 2009 Henderson, NV – Today we at Impact were
advised that our lawyers in Miami (www.diazreus.com) have begun
the legal process of recovering our property. The Elliott Group has
received millions of dollars to enhance and develop resort property
that they sold to all of us. We at Impact along with our clients have
purchased millions of dollars of Real Estate products from the
Elliott’s.
We believed, until late June 2008, Elliott was a capable and
compliant real estate developer. We also believed Elliott was
financially responsible to manage development budgets. Elliott had
accountants and attorneys all representing the capacity of Elliott to
manage their various developer commitments. Associates of Impact
and many other selling organizations believed the same story the
Elliott’s repeated often. Elliott asked their attorneys to even speak at
our various meetings, functions and conferences; offering further
assurances that Elliott was capable and competent.
We regret the level of deception the Elliott's have used to
misrepresent, misappropriate and manipulate our many clients.
Lawsuits are always a last resort, but based on all we now know we,
remain 100% in support of the lawsuit being filed in South Florida.
Our desire is to assist all clients in the recovery of our collective
property. Impact is disappointed by the Elliott's pattern of business
behavior that this legal complaint will reveal. We have all been
devastated by their actions.
We will continue to pursue all legal remedies available. This is
our top priority, we are hopeful that these legal steps being taken will
begin the process of recovery for all of us.
About Impact
In 2003, Impact launched a unique grass-roots enterprise dedicated to the mission of building net
worth for families. Impact designed a marketing and sales program designed to educate the
masses. Through countless speaking engagements and events, Impact has spread this message
to thousands of people, sharing experience and expertise in marketing and sales. For more
information, learn more on You Tube at www.youtube.com/user/impactmarketinggroup

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