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Resort Holding International, RHI, Majesty Travel, World Phantasy Tours, Galaxy Properties Management, Grupo Kelly, Michael Kelly, Universal Lease Fraudulent Universal Lease scam by Michael Kelly, Grupo Kelly and RHI ripped off our investment! South Bend Indiana
My Husband and I purchased a Universal Lease from Resort Holding International, RHI. A third party management company, Majesty Travel aka World Phantasy Tours, was to maintain and lease this propery in Cancun.
We were guaranteed a 9% return on our investment and the interest was to accumulate. Majesty later became Galaxy Properties Management S.A. Then I stopped receiving statements. I have heard recently that the whole thing is under investigation for fraud and misrepresentation.
I have been unable to contact the management company, Majesty Travel or Galaxy Properties, but was told their office was destroyed in a hurricane by RHI. RHI has acknowlegded my investment. I would like to be cashed out but RHI said they were not re-purchasing shares and I may not get my investment back until some other company buys the lease.
I've been in contact with the sales representative, Dee Marley whom sold the lease to us and he said to contact the US Attorney, Victim Witness Unit, Chicago D.A. Felice Whiler @ 312 886-4196 to learn about the investigation. She is mailing us the information.
Nancy
Long Beach, California
U.S.A.
6 Updates & Rebuttals
Ernest
San Antonio,Texas,
U.S.A.
Ip Fund 1 Leaseholders come together
#7Consumer Comment
Fri, April 16, 2010
The leaseholders need to intervene in Kelly's criminal case to protect their leaseholders rights to hold RHI, Grupo Kelly and others civilly responsible! The order appointing the special master obligates the SM to cause Kelly to add Assets to Restitution Fund necessary to make full restitution and pay SMs fees and/or obligates the Court to expand the Restitution Fund to include all necessary Assets to make full restitution to victims and pay fees. The appointment does not preclude victims from pursuing any rights they may have that do not encumber, restrain or dissipate the Assets, enforcement of any rights (specifically characterized as a lien) against the Assets or Legal Structure unless the Court orders otherwise. However, the special master's claim form is contrary to the courts order of appointment. The claim form bars victims not adhering to the Claims procedure from asserting a claim against SM, Claims Processing Agent; Restitution Trust, Kelly Business Entities or any successor in interest to or third party beneficiary of any asset owned by or affiliated with Grupo Kelly The claim form recognizes a possible difference between amount of loss calculated for criminal restitution and that could be awarded a defrauded investor in a civil lawsuit, and that criminal restitution does not supplant a civil judgment. Assets collected by SM will not be available to satisfy any civil judgment against Kelly.
Coming Victim Claim Form (i) D. Waiver/Release (a) terminates leases (b) bars claimant from asserting any claims against SM, CPA and waives claims regarding the universal Lease Program including lease, any assets purchased with proceeds, any remedy entitled to under the Universal Lease Program [waived and assigned in benefit of SM or designee. (c) bars claims against any transferee of or successor in interest to any asset or any third party beneficiary of any asset owned by or affiliated with Grupo Kelly. The special master wants the leaseholder to terminate their leases claiming the hotels can be sold free and clear of liens, however, I believe that they are not canceling all the other timeshares Kelly sold. "Therefore the hotels would not be free and clear of liens". The special master also wants the leaseholders not to hold him responsible for his actions, however, when the court appointed him; the court gave him immunity as long as he did not do anything outside of his appointment. If his actions are in line with his appointment he would have no immunity. Why is he asking the leaseholders to waive their rights to hold him responsible for his actions?
If you sign the claim form you are buying the pig sight unseen and you will have no recourse because you signed your rights away! It is clear the special master is attempting do keep the leaseholders from going after some of the assets and others. It is also clear that his actions are not inline with his appointment. Furthermore the special master doesn't disclose how much of your money will be recovered. For all we know its pennies on the dollar!
If you are a leaseholder and have not joined with other leaseholders please go to (((ROR redacted))) for more information to join.
Ernest
San Antonio, TX 78209
(((ROR redacted)))
Ernest
San Antonio,Texas,
U.S.A.
IP Fund report, the court appoints a Receiver for RHI.
#7Consumer Suggestion
Tue, March 10, 2009
Kelly's case has moved forward and the court has appointed a Receiver. The Fund filed a motion asking the court to allow the Leaseholders, as Resort Management Group (RMG), to serve as a Special Master to assist the court in the collection, administration and distribution of restitution to victims. Resort Management Group's board of Directors is made up of leaseholders who have vested interests in recovering all the money Kelly defrauded from the leaseholders and protecting the leaseholders' vested interests. The Leaseholders, as a Special Master, have an interest in holding down the costs, unlike a Special Master with no personal investment but who has a financial interest and would generate massive fees for attorneys and other professionals at the cost to Kelly's victims.
On December 19, 2008 the court granted the Fund's motion appointing RMG and then the Court, without explanation, amended its Order on December 22, 2008 and appointed Mr. Doetsch of Mayer & Brown as Special Master I believe that the Fund's Motion laid out to the court the Leaseholders' concerns of a Receiver victimizing them like other fraud victims in other cases. Judge Guzman pointed to another case before him, which is like Kelly's case, with assets all over the world and admits that it has been ongoing at a very high cost for eight years.
Judge Guzman stated: "The nightmare scenario in this type of case for those of us who are on the public servants' side of this case is for a million dollars in fees to expended from the assets of forfeitable property and no results be obtained for the allegedly defrauded investors. That's a nightmare scenario. That has happened in the past. It's also true in these cases, the dollars to investors is usually pennies. Usually pennies and nobody can predict or guarantee that such a thing won't happen in this case."
The record shows that, of all of the other candidates, the court believed Doetsch had the best combination of assets in terms of expertise, specialized expertise and real estate transactions in Mexico. The court stated that its concern was that even if the cost is higher the overall costs would be less because it would take less time to get things up and running. The cost of the attorneys and support staff will be at a blended cost of $465 an hour. This means that regardless of who does the work, one hour of work is at that rate. Everyone should be aware that if you call Mr. Doetsch's group to ask questions or complain the call will cost everyone money, a 15 minute call will cost $116.25! Furthermore, the cost of the Special Master's team is as follows: $400 and $300 an hour for the Mexican attorneys; Panamanian Counsel $250, $225, and $175 per hour; Financial Consulting FTI senior managing director $710; managing director $625; director $520; senior consultant $380 and other consultant $255; claims processing senior managing consultant $325; senior consultant $255 to $275; and team members consultant $165 to $245. Stenger & Stenger, the group the Judge mentioned who has been working on a case like Kelly's for eight years and was appointed as second claims processor, will paid up to $300 per hour.
The Court ordered Kelly to pay $1,000,000 to fund the initial phase of the restitution plan which includes the Receivership fees and to transfer $5.4 million from the sale of Hazama Corp Desarrollos, the owner of Pok ta Pok golf course, to the Receiver within one week of the Receiver's request. This money will not be used to pay the victims, it is to pay the Receivership costs first. For more information go to www.ipfund1.com
Nancy
Long Beach,California,
U.S.A.
Michael Kelly Arrested -Victims should contact FBI
#7Author of original report
Tue, February 20, 2007
U.S. Department of Justice
Federal Bureau of Investigation
In Reply, Please Refer to Release No. 219 South Dearborn Street
Chicago, Illinois 60604
December 27, 2006
SUSPECT IN PONZI SCHEME ARRESTED IN FLORIDA
Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI) and Michael J. Folmar, Special Agent-in-Charge of the Jacksonville Office of the FBI announced today that MICHAEL E. KELLY, age 57, who resides in Cancun, Mexico was arrested without incident by Special Agents of the Jacksonville Office of the FBI on Friday, December 22. KELLY was taken into custody and processed by Special Agents of the Jacksonville FBI Office after KELLY had traveled to the United States earlier last week.
KELLY was charged in a criminal complaint that was filed in Chicago on Friday, December 22 with one count of mail fraud for allegedly operating a scheme in which individuals were recruited to invest in what were purported to be timeshares in KELLY's Mexican hotels. The investors were issued "universal leases", which were sold to hundreds of United States victims who invested over $400 million dollars into KELLY'S alleged fraud scheme. It is alleged that KELLY operated this Ponzi-type scheme from 1999-2004.
Although KELLY was arrested in Florida, he will be appearing in Federal Court in Chicago at an as yet undetermined date to face his detention and preliminary hearings.
It is believed that victims of KELLY's alleged scheme are scattered throughout the United States and the Chicago Office of the FBI is encouraging anyone who may believe that they were a victim of KELLY to contact the FBI at(312) 421-6700.
The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.
EDITOR'S NOTE: A copy of the complaint filed against KELLY is available from the Chicago FBI Press Office at (312) 829-1199.
Nancy
Long Beach,California,
U.S.A.
Michael Kelly Arrested -Victims should contact FBI
#7Author of original report
Tue, February 20, 2007
U.S. Department of Justice
Federal Bureau of Investigation
In Reply, Please Refer to Release No. 219 South Dearborn Street
Chicago, Illinois 60604
December 27, 2006
SUSPECT IN PONZI SCHEME ARRESTED IN FLORIDA
Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI) and Michael J. Folmar, Special Agent-in-Charge of the Jacksonville Office of the FBI announced today that MICHAEL E. KELLY, age 57, who resides in Cancun, Mexico was arrested without incident by Special Agents of the Jacksonville Office of the FBI on Friday, December 22. KELLY was taken into custody and processed by Special Agents of the Jacksonville FBI Office after KELLY had traveled to the United States earlier last week.
KELLY was charged in a criminal complaint that was filed in Chicago on Friday, December 22 with one count of mail fraud for allegedly operating a scheme in which individuals were recruited to invest in what were purported to be timeshares in KELLY's Mexican hotels. The investors were issued "universal leases", which were sold to hundreds of United States victims who invested over $400 million dollars into KELLY'S alleged fraud scheme. It is alleged that KELLY operated this Ponzi-type scheme from 1999-2004.
Although KELLY was arrested in Florida, he will be appearing in Federal Court in Chicago at an as yet undetermined date to face his detention and preliminary hearings.
It is believed that victims of KELLY's alleged scheme are scattered throughout the United States and the Chicago Office of the FBI is encouraging anyone who may believe that they were a victim of KELLY to contact the FBI at(312) 421-6700.
The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.
EDITOR'S NOTE: A copy of the complaint filed against KELLY is available from the Chicago FBI Press Office at (312) 829-1199.
Nancy
Long Beach,California,
U.S.A.
Michael Kelly Arrested -Victims should contact FBI
#7Author of original report
Tue, February 20, 2007
U.S. Department of Justice
Federal Bureau of Investigation
In Reply, Please Refer to Release No. 219 South Dearborn Street
Chicago, Illinois 60604
December 27, 2006
SUSPECT IN PONZI SCHEME ARRESTED IN FLORIDA
Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI) and Michael J. Folmar, Special Agent-in-Charge of the Jacksonville Office of the FBI announced today that MICHAEL E. KELLY, age 57, who resides in Cancun, Mexico was arrested without incident by Special Agents of the Jacksonville Office of the FBI on Friday, December 22. KELLY was taken into custody and processed by Special Agents of the Jacksonville FBI Office after KELLY had traveled to the United States earlier last week.
KELLY was charged in a criminal complaint that was filed in Chicago on Friday, December 22 with one count of mail fraud for allegedly operating a scheme in which individuals were recruited to invest in what were purported to be timeshares in KELLY's Mexican hotels. The investors were issued "universal leases", which were sold to hundreds of United States victims who invested over $400 million dollars into KELLY'S alleged fraud scheme. It is alleged that KELLY operated this Ponzi-type scheme from 1999-2004.
Although KELLY was arrested in Florida, he will be appearing in Federal Court in Chicago at an as yet undetermined date to face his detention and preliminary hearings.
It is believed that victims of KELLY's alleged scheme are scattered throughout the United States and the Chicago Office of the FBI is encouraging anyone who may believe that they were a victim of KELLY to contact the FBI at(312) 421-6700.
The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.
EDITOR'S NOTE: A copy of the complaint filed against KELLY is available from the Chicago FBI Press Office at (312) 829-1199.
Nancy
Long Beach,California,
U.S.A.
Michael Kelly Arrested -Victims should contact FBI
#7Author of original report
Tue, February 20, 2007
U.S. Department of Justice
Federal Bureau of Investigation
In Reply, Please Refer to Release No. 219 South Dearborn Street
Chicago, Illinois 60604
December 27, 2006
SUSPECT IN PONZI SCHEME ARRESTED IN FLORIDA
Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI) and Michael J. Folmar, Special Agent-in-Charge of the Jacksonville Office of the FBI announced today that MICHAEL E. KELLY, age 57, who resides in Cancun, Mexico was arrested without incident by Special Agents of the Jacksonville Office of the FBI on Friday, December 22. KELLY was taken into custody and processed by Special Agents of the Jacksonville FBI Office after KELLY had traveled to the United States earlier last week.
KELLY was charged in a criminal complaint that was filed in Chicago on Friday, December 22 with one count of mail fraud for allegedly operating a scheme in which individuals were recruited to invest in what were purported to be timeshares in KELLY's Mexican hotels. The investors were issued "universal leases", which were sold to hundreds of United States victims who invested over $400 million dollars into KELLY'S alleged fraud scheme. It is alleged that KELLY operated this Ponzi-type scheme from 1999-2004.
Although KELLY was arrested in Florida, he will be appearing in Federal Court in Chicago at an as yet undetermined date to face his detention and preliminary hearings.
It is believed that victims of KELLY's alleged scheme are scattered throughout the United States and the Chicago Office of the FBI is encouraging anyone who may believe that they were a victim of KELLY to contact the FBI at(312) 421-6700.
The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.
EDITOR'S NOTE: A copy of the complaint filed against KELLY is available from the Chicago FBI Press Office at (312) 829-1199.