April 8, 1994 RENARDO HICKS BUREAU OF CONSUMER PROTECTION 1425 STRAWBERRY SQUARE HARRISBURG, PA 17120 DEAR MR. HICKS, WE ARE WRITING TO YOU WITH THE HOPE THAT YOU WILL ASSIST US WITH OUR PROBLEM. WE ARE RELUCTANT TO CONTACT THE ATTORNEY GENERAL'S OFFICE BECAUSE WE HAVE BEEN UNSUCCESSFUL IN GENERATING ANY ACTION THROUGH THE SCRANTON OFFICE ON OTHER ISSUES. THE SCRANTON OFFICE IS RESPONSIBLE FOR THIS GEOGRAPHICAL AREA. BASICALLY OUR DEVELOPMENT KNOWN AS VALLEY OF LAKES LOCATED OUTSIDE OF HAZLETON, HAS BEEN IN CHAPTER 11 BANKRUPTCY FOR THE PAST TWO YEARS. WE FEEL THE DEVELOPER (CBG LTD) HAS COLLECTED AN ESTIMATED $40 MILLION FROM THE SALE OF 1100 LOTS AND OTHER SOURCES SUCH AS CONSTRUCTION FEES AND BANK LOANS. THE DEVELOPER HAS FAILED TO PROVIDE SUCH BASIC AMENITIES AS SEWER, WATER, AND ROADS TO CERTAIN SECTIONS. OTHER MAJOR DEFICIENCIES EXIST IN THE PRESENT SEWER AND WATER SYSTEMS WHILE OTHER MAJOR COMMITMENTS AS A GOLF COURSE AND LAKE HAVE NEVER MATERIALIZED. THE QUESTION, THEREFORE, MOST FREQUENTLY ASKED BY THE MEMBERSHIP OF VOLCA IS: WHERE DID THE MONEY GO AND WHERE WAS IT SPENT?? FOR YOUR GUIDANCE THE VALLEY OF LAKES CIVIC ASSOCIATION (VOLCA) HAS ATTEMPTED THROUGH A COURT APPOINTED UNSECURED CREDITORS COMMITTEE TO HAVE INVESTIGATIVE ACTION INITIATED. THIS ACTION, HOWEVER, WAS ABORTED BECAUSE THE CHAIRMAN OF THE COMMITTEE, WHO WAS ELECTED IN ABSENTSIA AND A FORMER SERVICE PROVIDER TOTHE DEVELOPER, WOULD NEVER MOVE TO APPOINT AN ATTORNEY AND GENERATE OTHER ACTIONS WHICH WOULD ENABLE THE COMMITTEE TO AUDIT THE DEVELOPER'S BOOKS TO DETERMINE HOW THE MONEY WAS SPENT. IN AN EFFORT TO GAIN MEMBERSHIP RESPONSE TO THIS QUESTION VOLCA RECENTLY WROTE AN ARTICLE IN ITS NEWSLETTER (ENCLOSED) ASKING OUR MEMERSHIP IF THEY WOULD LIKE TO HAVE AN ACCOUNTING OF HOW THE MONEY WAS SPENT. AT THIS POINT WE HAVE RECEIVED 30 RESPONSES WITH OTHERS ARRIVING DAILY. THE SIGNATURED COPIES OF THESE RESPONSES IS ATTACHED FOR YOUR PERUSAL. THE PROBLEM DESCRIBED ABOVE REPRESENTS THE "TIP OF THE ICEBURG" IN A SERIES OF PROBLEMS WHERE WE FEEL THE DEVELOPER HAS ABUSED HIS AUTHORITY, PUBLIC TRUST, AND THE RIGHTS OF CITIZENS. IN VIEW OF THE ABOVE MAY WE REQUEST YOUR PERSONAL INTERCESSION IN THIS MATTER ? WE FULLY REALIZE THAT THERE MAY BE A NEED TO MEET WITH YOU AND WE STAND READY TO MEET WITH YOU AT ANY MUTUALLY CONVENIENT TIME. IF ADDITIONAL INFORMATION SHOULD BE REQUIRED PLEASE DO NOT HESITATE TO CONTACT US. WE DO HOPE, HOWEVER, THAT WE HAVE GIVEN YOU ENOUGH INFORMATION WHICH WILL ENABLE YOU TO ASSIST US. SINCERELY, /s/ R. DONGELEWICZ PRESIDENT, VOLCA COPIES TO: VOLCA BOARD MEMBERS
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