HUD Moves to Shut Down Fraudulent Land Sales Scheme in Six States Including Missouri
WASHINGTON, (SLFP.com), August 21, 2003 - The Department of Housing and Urban Development (HUD) has announced a lawsuit against a group of developers, accusing them of using a fraudulent land sales scheme to bilk an estimated $25 million from more than a thousand people, primarily senior citizens.
In a 32-page civil complaint filed by the Justice Department this week in the U.S. District Court for the Eastern District of Virginia, the government charges the developers, operating under the name "Buyers Source," with violating the Interstate Land Sales Full Disclosure Act and is seeking an injunction to immediately shut down their operations.
HUD claims Buyers Source, and other similarly named businesses, sold more than 1,000 parcels of land at prices that far exceeded their value, sometimes by as much as 3,000 percent. The subdivisions in which Buyers Sources sold lots are: Sugarmill Woods near Homosassa Springs, Florida; Savannah Lakes Village, near McCormick, South Carolina; Apple Valley, near Howard, Ohio; Holiday Island near Eureka, Arkansas; Rayburn Country in Jasper County, Texas; and Valley View Village South, near Branson, Missouri.
In a statement, John C. Weicher, HUD Assistant Secretary for Housing - Federal Housing Commissioner, said, "Many of these victims worked their entire lives to build security for their later years. Now a company with a fraudulent scheme is attempting to take all that away. HUD, in conjunction with the Justice Department and State Attorneys General, will do everything it can to protect consumers from those who would steal their share of the American Dream."
HUD is seeking to shut down all operations of Buyers Source and its affiliated businesses, seize the company's profits, and freeze the personal assets of several defendants, including suspected ringleaders, Lannie "Mex" Campbell and Henry Montgomery.
HUD's complaint paints a complex picture of how Buyers Source and its salespersons operated. It began with Buyers Source obtaining mailing lists of persons who owned timeshares for several years. Buyers Source would then send timeshare owners a post card offering to buy their timeshares "for top dollar" and "without any tricks or gimmicks." Consumers would be directed to meet with Buyers Source salespersons in motel rooms where they were told they must purchase a lot from Buyers Source. The company would sell plots of land for as much as $32,000, after paying only $1,000 to $5,000 to acquire the lots only weeks earlier.
When victims of this timeshare exchange expressed concerns that they could not afford the property, Buyers Source's salespersons used high-pressure sales tactics and promised consumers the lots were such a good value, they would earn a significant profit within 18 months; in the meantime, the victims were told to use the proceeds from the sale of their timeshares to make payments on the lots. HUD estimates that the average consumer in this scheme would have paid $60,000 in principal and interest for a lot worth between $1,000-8,000.
St. Louis Under Hot Weather Health Advisory
ST. LOUIS, (SLFP.com), August 17, 2003 - A Hot Weather Health Advisory has been issued by Operation Weather Survival, in conjunction with local Health Departments. The advisory includes St. Louis City, St. Louis County, St. Charles County, and Jefferson County. This advisory is to alert area residents that hot weather can be dangerous to health.
All residents, especially the elderly and those at risk for heat related illness, should take precautions to protect themselves from the heat. Stay in the coolest environment possible and limit outdoor activity in the heat of the day. Drink plenty of cool water to prevent dehydration and avoid beverages containing alcohol or caffeine. Check daily on elderly or chronically ill relatives and neighbors.
A Hot Weather Health Advisory is declared when the National Weather Service reports that the Heat Index is expected to reach a minimum of 105 degrees F. for at least three hours, with a minimum nighttime Heat Index of 80 degrees F.
This Hot Weather Health Advisory will remain in effect until temperatures moderate.
For assistance with heat related problems or the location of cooling sites, contact the United Way Greater St. Louis Information Referral line at 314-421-4636 or 1-800-427-4626.
Lambert Airport Task Force Established
ST. LOUIS, (SLFP.com), August 17, 2003 - After a formal request from St. Louis Mayor Francis G. Slay, three St. Louis regional business organizations have created a task force to make recommendations on the future of Lambert-St. Louis International Airport.
Civic Progress, The Regional Business Council (RBC) and the St. Louis Regional Chamber & Growth Association (RCGA) have established a 17-member airport task force. The task force will make and help implement recommendations to maximize air service and jobs at Lambert Airport, and to sustain Lambert as an economic engine for the entire St. Louis region for the next two decades. Long-time St. Louis business and civic leader David C. Farrell, retired chairman and CEO of The May Department Stores Company, will chair the task force.
"With American Airlines flight reductions and dramatic changes in the airline industry, it is incumbent on us as a region to map out our own future," Mayor Slay said in an announcement. "There are going to be challenges and opportunities created by the upheaval in the airline industry. If we are smart, bold, and innovative, we will position ourselves to take advantage of the opportunities. But, we cannot bury our heads in the sand. I want this task force to take a completely fresh look at Lambert and what we need to do as a City and as a region to maximize the number of flights and jobs. Change can be difficult. But, sometimes doing nothing is worse."
While the task force works on recommendations to ensure the long-term viability of Lambert, the airport staff is already lining up air carriers to fill gaps created by the cutbacks in American's schedule. Already six carriers have agreed to add 14 flights. "We have received some very positive feedback from other carriers," Slay continued. "For the short run, that is encouraging and a positive reflection on this airport, the St. Louis market, and our great location in the heart of the country. But, we also need to develop a long-term plan to maximize the economic opportunities created by Lambert Airport."
The task force will begin its work immediately with the goal to conclude its work with a report to the Mayor within a six-month period. In addition to David Farrell, members of the task force are: Doug Albrecht, president and CEO, Centric Group; Deb Grossman, executive vice president, Reuters America Operations LLC; Barry Beracha, retired CEO, Sara Lee Bakery Group; Deborah Patterson, president, Monsanto Fund, Monsanto Company; Steve Cousins, partner, Armstrong Teasdale LLP; Jerry Feldhaus, executive secretary-treasurer, Building Trades Council of St. Louis; June Fowler, senior director, corporate communications and community affairs, Tyco Healthcare Mallinckrodt; Bruce Holland, president, Holland Construction Services; Larry Katzen, managing partner, Gateway Sports LLC; David Kemper, chairman, president & CEO, Commerce Bancshares, Inc.; Rich McClure, president & CEO, UniGroup Inc.; Paul McKee, chairman, McEagle; Jim Murphy, president & CEO, Murphy Company; Randy Schilling, president & CEO, Quilogy; Dr. Donald Suggs, president & publisher, St. Louis American Newspaper; and Doug Yaeger, chairman, president & CEO, The Laclede Group, Inc.
In addition to considering the impact of national and international aviation trends on St. Louis, the task force will address protecting the financial viability of the airport and St. Louis' investment in facility expansion. The task force will also provide recommendations to the Mayor and the airport staff on ongoing opportunities and business relationships as part of the city's negotiations with air carriers.
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