We, the legally constituted TAPRC Board of Pelican Resort (aka the "Board"), are writing to you in your capacity as a leader of the newly installed Dutch St. Maarten Island government for the reasons that follows:
1. This Board represents approximately 12,000 Pelican timeshare interval owners whose investments have been fatally compromised by the "very bad and what this Board believes to be illegal acts" of the Resort's outside management company (Royal Resorts Group/Royal Resorts Caribbean) and its principals/officers Mr. Richard Sutton and Mr. Richard Corso who, we are sure, you are already very familiar with..
2. This Board is very troubled by the fact that the newly installed Island government had not chosen to officially involve itself in this "financial and legal debacle" earlier given the "on the ground" reality that a closed Pelican resort (a possible outcome), or a significantly reduced interval owner membership base (already becoming a reality!), will have a tremendously negative financial impact on the Island's economy (given that it is acknowledged fact that tourism is the island's economic engine).
3. This Board is even more troubled by the fact that the newly installed Island government has chosen to meet with Mr. Sutton, Mr. Corso, and the representatives of the Pelican Resort WIFOL union employees but has chosen not to include the TAPRC Board in these meetings. Let us be clear, this Board is the sole legal representative of the interval interests of approximately 12,000 Pelican Resort timeshare intervals.
4. This Board is very concerned for the future economic well being of the island and all of its residents, business owners, etc. This Board, speaking on behalf of its thousands of interval owners is proud of the fact that we, Pelican intervals owners, have had a wonderful relationship with the Island and its residents and its business owners these past twenty five plus years. Pending the outcome of the current events that relationship could be severely curtailed.
5. This Board will have no choice but to send a powerful message to our constituency (the approximate 12,000 Pelican timeshare interval owners) that the sad reality is that Dutch St. Maarten Island timeshare protective legislation, which we have been told and assured for years is an impediment to unscrupulous and fraudulent resort managers and developers, is in reality a paper tiger without legal teeth ...powerless to protect our timeshare interval ownership interests, and that the newly installed island government, despite numerous TAPRC Board requests to meet, has chosen to "sit on is official hands" and not respond to our urgent calls for government intervention and substantive assistance.
A little bit of recent history is warranted at this point......
On November 30, 2010, the Tenants' Association Pelican Resort Club (TAPRC) held their Annual General Meeting (AGM) at Pelican Resort. As the Chairman of the Board at that time, Ms. Christine Schlunz, contacted the Prime Minister to see if she would be willing to meet with the Board to discuss the likely impact on and ramifications to the island and local employees if the foreclosure of the Resort was allowed to go forward. The Board had invited Mr. Franklin Meyers to attend the Resort's AGM and the Prime Minister assured Ms. Schlunz that would be the best person to meet with. Unfortunately the Board received notice through Mr. James' office the morning of the AGM that Mr. Meyers would be delayed, and could not attend the AGM but would meet with the Board later that day. Mr. James had specific instructions from Ms. Schlunz to bring Mr. Meyers to our meeting room whenever he arrived but the Board never saw him nor heard from him or his office as to why he missed the meeting.
A few days prior to the November 30th meeting, Ms. Schlunz and the Board's attorney Mr. Gerrit Van Giffen met with Mr. Theo Thompson, the WIFOL union leader, WIFOL's attorney, and several union stewards from Pelican Resort. Ms. Schlunz spent two hours telling them the history behind this foreclosure attempt and assured them that Mr. Sutton intended to file a structured bankruptcy soon after his foreclosure in order to break all the labor contracts. Mr. Sutton informed the Board in December, 2009 of these intentions. In July, 2010, Mr. Sutton told Ms. Schlunz that if she didn't get the Board to give him complete control of the Resort and its operations, he would take the Resort in a foreclosure. Ms. Schlunz categorically assured Mr. Sutton that the Board did not intend to miss a payment to the lender (Mr. Suttons' company, QIT) who held the lien as the Board had explicitly instructed Mr. Corso, CEO of the management company in writing, to make every payment on time before any other payments were made so a default was unlikely. Mr. Sutton said he would make sure the Resort was in default in August and that he would own the Resort before the end of the year and that's exactly what Mr. Sutton did. Mr. Corso had complete control of the Resort's bank accounts and money and made all the decisions on who got paid and who didn't (this is one of the issues we asked the island court judge for relief from). Mr. Corso is an employee of Mr. Sutton's, and as we've all seen and in spite of hundreds of Board legal directives to the contrary, made sure Mr. Sutton's threat of default and subsequent foreclosure came to pass.
The TAPRC Board of Directors represents the more than 12,000 timeshare owners at Pelican Resort Club who have just lost the ownership of the Resort in an impossibly bad judicial decision. Hundreds have written the Board asking why the island allowed this travesty to happen and many are walking away from their timeshares and will no longer be spending their money on the island of St. Maarten. They're baffled as to how a judge could rule that this was a valid default given the magnitude of evidence provided by the Resort's attorneys, independent accountants, etc. and the clear and material conflicts of interest between the parties who caused the default. The TAPRC Board was asking the judge for a delay on the auction date so that the Board could get rightful control of its bank accounts and cure the Sutton-Corso orchestrated default. The evidence to support the fraudulent default action was overwhelming.
There is another group of owners numbering approximately 150 who have collectively invested over $3.2 million dollars in Pelican Resort through a program called Pelican Capital Improvement Program (PCIP) implemented by Mr. Sutton. These investors, a number who have individually invested $100 thousand or more, will now lose their investments due to Mr. Sutton's orchestrated Resort foreclosure action. Mr. Sutton and Mr. Corso have stated they have no intention of honoring these debts which will have a dramatic negative financial impact on many of these long time Pelican owners (some who are retirees). The Board directed Mr. Corso to begin repaying these investors last year but their directive was ignored and since he had complete control of our bank accounts and funds, he decided it was not in the best interest of the Resort to repay these investors. We have come to learn that he was acting in the best interests of Mr. Sutton and his pre-planned foreclosure plan.
The Board is still pursuing justice in this issue and has filed appeals on both court actions and has a criminal court case pending in Florida against Mr. Corso and Mr. Sutton personally. The Board expects numerous additional court actions to be filed against Mr. Sutton, Mr. Corso, and their related business entities as new evidence has been uncovered recently concerning many aspects of the foreclosure, the subsequent auction, and the irregularities concerning the rushed issuance of "new licenses" to operate the Resort.
The Board believes that it is may not be too late to reverse this "financial/legal debacle" for the benefit of all aggrieved parties. The Board respectfully requests an opportunity to discuss the events/details of what has transpired at the Resort with the newly installed government of Dutch St. Maarten. The Board respectfully requests that you and other key Ministers in the government agree to convene a meeting with representatives of the TAPRC Board as soon as possible.
This Board anxiously awaits your response. A response can be sent to the Board at This email address is being protected from spambots. You need JavaScript enabled to view it.
Respectfully,
TAPRC Board of Directors, Pelican Resort
