- Introduction
- Scheme to infiltrate and control "Valley of Lakes"
- Land Development Scheme
- Lake Algonquin Scheme
- Building Fees Scheme
- Real Estate Scheme
- Sewage System Schemes
- Arnold Palmer Golf Course Scheme
- Bank's scheme to conceal insolvency of CBG Ltd.
- Scheme to continue Racketeering using Chapter 11 Bankruptcy protection
- Bank's Scheme to operate and manage the Racketeering Enterprise
- Scheme to conceal Racketeering Activity prior to merger and to continue Pattern of Racketeering Indefinitely
- Enterpise
- Pattern of Unlawful Racketeering Activity
- Summary of each defendant's association with and participation in the pattern of Racketeering Activity
- Summary of each plaintiff's injury to Business or Property
- Count II: Interstate Land Sales Full Disclosure Act
- Count III: Civil Rights Violations
- Count IV: N.J. Real Estate Sales Full Disclosure Act
- Count V: Common Law Fraud and Deceit
(G) "ARNOLD PALMER" DESIGNED AND MANAGED GOLF COURSE SCHEME
179. As a further part of the land development scheme, commencing on or about September 30, 1986, and continuing through the present, the Defendants, FRANK M. CEDRONE, C.B.G. , FIRST EASTERN BANK, RALPH CONTE, and other defendants did knowingly and willfully devise a scheme and artifice to defraud lot owners and prospective lot owners of "golf course lots" through numerous false and fraudulent pretenses, representations and promises that C.B.G. LTD. would complete a proposed nine hole and/or eighteen hole golf course on a designated site and that said golf course would be designed and managed by "Arnold Palmer", when in truth and fact the defendants knew that they would not be completing any golf course. As of this date, no golf course has ever been completed. This scheme to sell "golf course lots" with no golf course was patterned on High Vista Inc.'s scheme to sell "golf course lots" using the same proposed site (Exhibit 3). Numerous mis- representations, material omissions, etc., were made in the "Property Reports", print advertisements, contracts, etc.
180. In furtherance of the "golf course scheme", " CBG as a business course of conduct, entered into numerous INVESTMENT CONTRACTS for lots adjacent to the proposed golf course in which it GUARANTEED A RATE OF RETURN OF 25% PER ANNUM, in violation of the Federal Securities Laws, and CBG breached these contracts. Among numerous others: Exhibits 31, 32. The defendants engaged in numerous predicate acts involving fraud in the sale of securities by violating Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
181. A copy of "Palmer Press--A publication of Arnold Palmer Golf Management Co.," Volume 1 (Spring 1989), Pages One and Five is annexed hereto and made a part of this complaint, and marked Exhibit 101-1 to 101-2.
182. A copy of a newspaper article titled "Schuylkill planners table Valley of Lakes golf course," by Jim Dino, Staff Writer, published on or about September 21, 1989, in the Hazleton Standard Speaker of Hazleton, Pennsylvania is annexed hereto and made a part of this complaint, and marked Exhibit 102.
183. A copy of a newspaper article titled "Eagle Rock work ahead of schedule," published on or about August 9, 1990, in the Hazleton Standard Speaker of Hazleton, Pennsylvania is annexed hereto and made a part of this complaint, and marked Exhibit 103.
184. A copy of an advertisement titled "The 'Jewel' in The Arnold Palmer Crown," soliciting responses to "Valley of Lakes, P.O. Box 2039, Hazleton, PA 19201," published in The Philadelphia Inquirer on or about April 8, 1990, is annexed hereto and made a part of this complaint, and marked Exhibit 104.
185. A copy of an advertisement for "Eagle Rock Estates An Arnold Palmer Designed and Managed Facility" distributed by C.B.G. LTD. is annexed hereto and made a part of this complaint, and marked Exhibit 105-1 to 105-2.
186. A copy of an advertisement for "The Valley of Lakes" soliciting responses to "Valley of Lakes, P.O. Box 2039, Hazleton, PA 18201," is annexed hereto and made a part of this complaint, and marked Exhibit 105A.
187. A copy of a direct mail piece advertising "The Eagle Rock Resort Golf and Country Club" soliciting responses to "Valley of Lakes/Eagle Rock Resort, P.O. Box 2039, Hazleton, PA 18201," is annexed hereto and made a part of this complaint, and marked Exhibit 106-1 to 106-2.
188. A copy of a letter mailed as a group mailing, circa 1991, from Williard (Will) Berkheiser, Membership Chairman, on "Eagle Rock Golf & Country Club" letterhead, 300 Country Club Drive, P.O. Box 2039, Hazleton, Pennsylvania 18201 is annexed hereto and made a part of this complaint, and marked Exhibit 107-1 to 107-4.
189. A copy of a letter, dated July 30, 1990, from Randall B. Robertson, Marketing Services, Arnold Palmer Golf Management Company, 7575 Dr. Phillips Boulevard, Suite 270, Orlando, FL 32819, addressed to Mr. Ed Leiby, Valley of Lakes Civic Association, P.O. Box 150, Oneida PA, 18242 is annexed hereto and made a part of this complaint, and marked Exhibit 108.
190. A copy of a letter, dated February 14, 1992, from Ray Dongelewicz, President, VOLCA, P.O. Box 150, Oneida, PA 18242, addressed to Arnold Palmer Golf Management Company, 7575 Drive, Phillips Boulevard, Suite 270, Orlando, FL 32819, is annexed hereto and made a part of this complaint, and marked Exhibit 109.
191. A copy of a letter, dated March 12, 1992, from Robert C. Holzman, Jr., Vice President & Chief Operating Officer, Arnold Palmer Golf Management Company, 7575 Dr. Phillips Boulevard, Suite 270, Orlando, FL 32819, addressed to Mr. Ray Dongelewicz, President, Valley of Lakes Civic Association, P.O. Box 150, Oneida, PA 18242 is annexed hereto and made a part of this complaint, and marked Exhibit 110.
192. Frank Cedrone, in the name of C.B.G. Ltd., and full knowledge of First Eastern Bank, N.A., has continued to mail numerous letters delivered throughout the U.S. by the Postal Service, addressed to every property owner, claiming that the completion of the golf course is imminent, as detailed infra. In addition, the defendant's continue to advertise the site as the future site of the Arnold Palmer Manages and Designed Golf Course. See Exhibit 207.
193. FIRST EASTERN BANK continued to grant mortgages to purchasers, who were promised a golf course, when FIRST EASTERN BANK knew that CBG would not be completed the promised golf course.
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