Monday, March 17, 2008

Hints of lawsuits permeate the air

I heard through the grapevine that some investors in the US were banding together to draw up a lawsuit. I wrote Scott Harris an e-mail asking him if he could shed some light, and he admitted that he heard something about it. There are several points:

1) Any lawsuit in the US would be moot since there are no assets being held there. All assets are in Panama so the lawsuit would have to start there. And apparently they take longer there than they do in the States.

2) A lawsuit in Panama would turn off any potential investors that might be interested in the project (the only hope we have of getting construction started back up). And then what would happen? Sell off the land? Given the current big project situation in Panama, there is nobody doing them right now, especially with the titling issues we have at Red Frog.

Tomorrow's conference call may or may not talk about this new development, but I thought it should be addressed here.

Mick @ Lot 83

3 comments:

lot66 said...

This would certainly present a dilemma. One cannot dispute the frustration incurred by owners and their concern regarding their investment. I concur with both assessments regarding law suit in either the U.S. or Panama. But the foundation for one still exists.

So consider this. To preempt such Joe and Scott should offer to fairly reimburse all owners who feel their expectations have not been met. I would consider full reimbursement for everything, including down payment, furniture, extraordinary expenses and interest for the value of money invested. Such compensation would recoup an investment with just gain. And Joe and Scott would acquire property they can resell at the new market value. A win-win for both sides. And J & S will have removed potential dissenters (litigants) from the owners.

But J & S do not have any money? Well, consider this. One could argue that their continued professment of expertise in financial markets may allow them the acquisition of funds adequate to meet this lower level of monetary demand. They could also consider delving into their own acquired wealth, as have many of the owner-investors at R.F., to realize a further gain in such.

You do not think those options are realistic? O.K. Then let’s offer such to the owners at Red Frog who support J and S and think this is a strong investment opportunity and patience will gain large rewards. Have such owners step forward to assist J. and S. and buy up such properties. They will increase their upside while getting rid of potential owners who may create bad publicity and put pressure on the down side.

It is time to separate the wheat from the shaft.

Bob

Betty-Lot 63 said...

Our original contract specifies the villa is to be completed within 36 months of date of contract or we are entitled to return of construction monies. For us, that means our villa is to be complete by June 08. There is no mention of interest or additional expenses.

We have put Red Frog on notice that
we intend to exercise that clause.

Anonymous said...

Both my brother and I would be happy to get just get our equity and forget the interest.


I agree that if there are those current RF owners that still believe in these guys they should consider buying those of us that no longer trust them.

I am confident that there are a number of people who are soon going to start asking for their money back based on the provision that provides for such when a villa is not completed within the months specified. If RF is unable to comply I am equally confident that there will be legal action.

I do believe a client only meeting for whoever can attend is a good idea. Possibly we could come up with a unified approach.

I don't know if there is any hope for any of us to get our money back. I don't however believe there is any chance if we trust these guys to get us out of the mess they have largely created.

I sure would like to talk to the new equity partners. Either they could convince us that their participation will enable RF to move forward or we could possibly give them the insight they need to put the project in more capable hands.

Kur 705E