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Valley of Lakes RICO Class Action against PNCBANK, et al.
ripped edge: exhibits

Valley of Lakes Letterhead

May 11, 1990



Mr. Dino A. Ciccozzi, President
Cicoozzi Construction Company, Inc.
409 Rear East Broad Street
Tamaqua   PA   18252

RE: Valley of Lakes

Dear Mr. Ciccozzi:

It is the published and recorded intention of C.B.G. Limited ('CBG') 
to develop the Valley of Lakes and Eagle Rock Resort (the 'Valley')
as a first-class residential community.  CBG desires to maintain 
the natural beauty and environment of the Valley to assure high 
standards of quality for its enjoyment by residents, their guests 
and visitors.  To achieve this important goal, to provide for the 
preservation, enhancement and maintenance of the Valley, and to 
enhance, promote and protect the health, welfare and enjoyment of 
property owners, CBG has provided for certain Covenants and 
Restrictions ("Covenants"), Rules and Regulations ) and a Building 
Code ("Code").  CBG has also reserved ownership of all common areas 
including roadways and certain woodlands and has established 
restrictions for their preservation and protection.

Your entry onto the property of the Valley to conduct business is a 
privilege, not a right.  It is conditioned upon, and your status as 
a tenant requires full compliance with the Covenants, Regulations 
and the Code.  Furthermore, your application for and issuance to you 
of Building Permits makes you subject to these requirements.

However, during routine property inspections conducted by Thomas 
Marnell on March 12 and 13, 1990, numerous conditions were observed 
to have been caused and continued by you which are in violation of 
these requirements.  A summary of the conditions observed and the 
Covenants, Regulations and code requirements which each violates is 
attached as Exhibit "A".

You were notified of these violations verbally and in writing on 
several occasions, and in formal notices by letter dated March 13, 
and March 15, 1990.  You were instructed, both verbally and in 
writing to correct these deficiencies.  Unfortunately, instead of




complying with these reasonable requests, you have chosen to permit
the conditions to continue unabated.

The violations are not, as you and your attorney have suggested, 
insubstantial.  Instead, they go to the very heart of philosophy of 
the Valley. The conditions created by you have detracted 
substantially from the appearance of the development, interfered 
with the quiet enjoyment of the resort by residents, caused 
actual or potential damage to other property owners and most 
importantly, have endangered health and safety.  Some of these 
actions, including improper disposal of construction waste and 
trespass onto other's property may even rise to the level of 
criminal conduct.  Moreover, complaints and other information 
received from property owners, your customers, other contractors, 
the Architectural Control Committee and professionals, disclose 
questionable business practices which, because of your relationship 
with CBG reflects adversely on the Valley and on CBG and related 
companies.  Your continued disregard for the rules developed for the 
benefit of all, cannot be tolerated.

Please be advised that effective immediately, Ciccozzi Construction 
Company, Inc. is being removed from the list of approved builders at 
Valley of Lakes.  As a consequence, except as otherwise noted, no 
further permits for construction will be issued and you will be 
denied permission to build at the Valley.

You are hereby notified that access to the Valley shall be limited
to the following purposes:

1.  Correcting the violations and deficiencies.

2.  Completing construction of all homes where a permit has already
been issued by C.B.G. to the owner or to you and work is under way.

3.  Construction of the home for the Johnstons upon issuance of the 
permit to them.

4.  Access to the property you have rented.

5.  Access to any properties you may own.

If the violations and/or deficiencies are not corrected or provision 
made for correction or abatement within seven (7) days from the date 
of this letter, then all access to the Valley will be denied except



for the purpose of correction or abatement, and except for access to 
your owned or rented properties.  However, all other rights and 
privileges afforded to you as an owner or renter, including use of 
amenities, will be revoked.

If the deficiencies are not corrected within seven (7) days of the 
date of this letter, CBG may, at its option, take all remedial 
action it deems necessary and charge all costs, expenses and 
administrative add-on to your account,

The above actions are being taken without prejudice to any other 
rights or remedies available at law or equity or in any other 
appropriate tribunal. If you fail to comply with this notice, CBG 
will take any and all action that it deems appropriate.

Compliance shall be to the satisfaction of C.B.G. Limited, acting
initially by and through its appointed representatives.



Your immediate action is requested.



Very truly yours,

/s/

Frank M. Cedrone
General Partner

FMC/va

cc:	John Mattioni, Esquire 
	Marvin 0. Schwartz, Esquire





		      EXHIBIT "A"

	     CICCOZZI CONSTRUCTION CO.,.INC.

	        SUMMARY OF VIOLATIONS


The following is a summary of violations pertaining to Ciccozzi 
Construction, Inc. ("Ciccozzi") as noted on routine inspections 
conducted on March 12 and 13, 1990, and thereafter.  For each 
condition noted, applicable provisions of the Covenants and 
Restrictions, Rules and Regulations, and Building Code relating 
to Valley of Lakes Development which the condition violates is 
also set forth.  However, failure to list a provision is not 
intended to nor should it be deemed to be a waiver of any other 
provision violated.

1.  Driveway ramp constructed by Ciccozzi for access to Lot 1-82 
protrudes onto and partially blocks the roadway on Iroquois 
Circle and blocks a drainage ditch.  This condition is in 
violation of at least, the following:

A.  Covenants and Restrictions

    Article V.1 (a), Which prohibits construction of anything 
    on a lot so as to create a hazard upon or block the vision
    of motorists upon the Valley roads.

    Article V.2 (c), which prohibits activities as determined
    by CBG that are offensive, an annoyance or nuisance to CBG 
    other property owners, or the neighborhood.

    Article V.2 (i), which prohibits nuisances which are 
    detrimental to other lots, their occupants of to the 
    Common Areas.

    Article V.2 (j), which prohibits offensive uses, and
    the committing of waste to any Common Areas.

B.  Rules and Regulations

    Article IV,E., prohibiting the destruction damage, injury 
    defacing or disturbance of common areas or of the property 
    of CBG, and requiring that property rights and interests of 
    CBG be respected by all persons.

    Article XIII.A.2, which requires contractors to keep 
    drainage ditches and other means of run off control free 
    of debris and obstruction.

    Article XIII.B.11, which prohibits activities determined
    by CBG to be offensive, annoying or a nuisance.




    Article XIII.C.5, which requires persons to cleanup and 
    remove any dirt, refuse, trash or other waste placed by 
    them on any part of the Valley, including the road system.

    Article XIII.C.6, which requires contractors to cleanup
    all dirt or debris generated by any work they perform in 
    the Valley.

    Article XV.2, permitting CBG to discipline, evict or 
    take other action against any person for conduct which 
    CBG determines may endanger health, welfare or property 
    of others.

C.  Building Code

    Work Site Organization

    Paragraph 2, requiring contractors to maintain an orderly 
    construction site.

    Paragraph 3, requiring that construction materials should

    Paragraph 7, prohibiting any culvert or drainage ditch 
    from being temporarily or permanently stopped.

    Paragraph 11, requiring contractors to immediately 
    remove mud from all black top roads.

2.  Excess rock including huge boulders and other excavated 
materials from Lot I-82 have been dumped by Ciccozzi on Lots I-27 
and I-28.  Rock and excavated material have also been dumped at 
corner of Lots J-32 and J-33 covering and damaging property stakes 
and water curb boxes.  These conditions are in violation of at 
least the following:

A.  Covenants and Restrictions

    Article V.2.(c) (1) and (i), prohibiting activities which 
    are offensive, annoying or a nuisance, and the committing of 
    waste to any Common Areas.

    Article V.3. (a) requiring that lots be kept clean and 
    free of debris.

B.  Rules and Regulations

    Article IV.E., prohibiting the destruction, damage, 
    injury, defacing or disturbance of property of CBG or of 
    other property owners, and requiring that the property 
    rights and interests of CBG and all other owners be 
    respected.



    Article XIII.B.1, requiring that lots and property
    be kept free and clear of debris.

    Article XIII.B.11, prohibiting activities determined
    by CBG to be offensive, annoying or a nuisance.

    Article XIII.C.3, prohibiting the dumping of refuse
    or solid waste in any area of the Valley.

    Article XIII.C.5, requiring persons to clean up and 
    remove any dirt, refuse, trash or other waste placed 
    by them on any part of the Valley,

    Article XIII.C.6, requiring contractors to cleanup 
    all dirt or debris generated by any work performed in the Valley.

    Article XV.2, permitting CBG to discipline, evict or 
    take other action against any person for conduct which 
    CBG determines may endanger health, welfare or
    property of others.

C.  Building Code

    Work Site Organization

    Paragraph 2, requiring contractors to maintain an 
    orderly construction site.

    Paragraph 3, prohibiting superfluous construction 
    material from being left for an unreasonable period 
    of time.

    Paragraph 4, requiring that all construction 
    materials be neatly piled within the boundaries 
    of the construction site.

    Paragraph 5, prohibiting spoil from protruding onto
    any neighboring lot.

    Paragraph 6,prohibiting spoil from running on
    neighboring lots.

    General

    Prohibiting excess backfills to remain during con-
    structure, and requiring its removal at time of 
    excavation.



3.  Excess building material and construction debris and waste 
    is being stored on the property of a completed home (Lot B-1) 
    which is leased by Ciccozzi from Richard Templin for use as a 
    model.  Piles of building material encroach upon the adjacent 
    roadway, and the "green belt" to the rear of the lot and




butting Choctaw Drive.  This is in violation of at least the
following:

A.  Covenants and Restrictions

    Article V.l.(a), prohibiting placement on a lot of 
    anything which creates a hazard upon or blocks the 
    vision of motorists upon roads of the Valley.

    Article V.l.(e), prohibiting obstructions to
    visibility at street intersections.

    Article V. 1. (h), requiring that all materials, 
    supplies and equipment stored outside must be con-
    cealed from view from roads and adjacent properties.

    Article V.2 (a) and (d), restricting lots to 
    residential use and requiring prior written approval 
    from CBG for the use of a lot for a commercial, 
    business, trade or other non-residential use.  
    Although use of a home as a model is permissible, 
    storage of building materials and debris after 
    construction is beyond the scope of that limited 
    exception.

    Article V.2 (c). (i) and (j), prohibiting 
    nuisances, and offensive and annoying activities 
    and the committing of waste to any Common Area.

    Article V.3 (a) and VIII.7 (a), requiring that
    lots be kept clean and free from debris.

B.  Rules and Regulations

    Article III.H.7, requiring renters to obey the
    Rules and Regulations of Valley of Lakes.

    Article IV.E, prohibiting the disturbance of 
    common areas or of property of CBG, and requiring 
    all persons to respect the property rights and 
    interests of CBG and other owners.

    Article XIII.B.1, requiring lots to be kept free 
    of rubbish, junk, refuse, debris and similar materials.

    Article XIII.B.7, requiring that grounds be main-
    tained in a good and clean condition and in a 
    reasonable safe manner.

    Article B.11, prohibiting nuisances, and offensive
    and annoying activities.




    Article XIII.C.3, prohibiting dumping solid waste
    in any area of the Valley.

    Article XIII.C.5, requiring that dirt, debris, 
    refuse, trash and other waste be cleaned up and 
    removed by person depositing same.

    Article XIII.C.6, requiring contractors to cleanup 
    all dirt, debris and trash generated by work performed 
    in the Valley.

    Building Code

    Model Home, prohibiting model homes from appearing
    as supply depots.

    Work Site Organization

    Paragraph 2, requiring Builders to maintain an
    orderly model site.

    Paragraph 4, requiring that all construction
    material be piled up neatly within the boundary of the
    construction site and covered whenever possible.

    Paragraph 3, prohibiting superfluous construction 
    material from being left on a site longer than is 
    reasonable necessary as determined by CBG.

    Paragraph 5., prohibiting construction materials from 
    protruding onto neighboring lots, right-of-ways, or 
    access roads,



4.  Excavation of Lot I-82 has resulted in unsupported and 
unrestrained vertical wall of the mountain exposed to the 
elements with no means of erosion control. The danger of a rock 
or land slide or other uncontrolled erosion is highly possible, 
especially in the event of inclement weather, posing a serious 
threat to life and property.  No fencing is provided to prevent 
persons from falling into the excavation. This condition is in 
violation of a least the following:

A.  Covenants and Restrictions

    Article V.2 (c), which prohibits activities as 
    determined by CBG that are offensive, and annoyance 
    or nuisance.

    Article V.2 (i), which prohibits nuisances which are
    detrimental to other lots or their occupants.





B.  Rules and Regulations

    Article XIII.A.2 requiring contractors to take all 
    necessary steps to assure that adequate provision is 
    made to control erosion and soil runoff, and to per-
    form all soil work in conformity to a reasonable plan 
    for limiting soil erosion and control of
    sedimentation.

    Article XIII.B.11, prohibiting activities which are 
    offensive, an annoyance or a nuisance.

    Article XV.2, permitting CBG to discipline, evict 
    or take other action against any person for conduct 
    which CBG determines may endanger the health, welfare 
    or property of others.


Valley of Lakes RICO Class Action against PNCBANK, et al.

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