Attorney General Stumbo Asks Court to Appoint Receiver for Green Farm Resort and LaFayette Golf Course

FRANKFORT, KY (August 1, 2005) - Attorney General Greg Stumbo today announced the filing of a Motion asking the Grayson Circuit Court to appoint a Receiver to manage the Lafayette Golf Course and oversee an accounting of funds in connection with the resort property known as Green Farm Resort. The Attorney General filed a lawsuit in February against four Texas individuals and six corporations or business entities for violations of Kentucky’s Consumer Protection Act in the sales of resort property in Grayson and Breckenridge counties.

The Motion for Receiver alleges that the defendants sold residential building lots in a development known as Green Farm Resort through the use of false, misleading or deceptive practices and have failed to complete infrastructure work such as roads and utilities, even though the Property Report filed in June 2002 by the defendants states that sufficient funds were escrowed for completion of this work.

The Motion also alleges that the Lafayette Golf Course, a premier nationally-recognized course, is in serious decline requiring immediate attention and that the value of the Green Farm lots are directly affected by the relative condition and reputation of the course. Named as Defendants in the suit are: Samuel D. Ware; Patrick Ramsier; Charles E. Schram III; Thomas Hillsman; GF Resort Limited Partnership; GF Resort GP, Inc.; American Resort Corporation; Kentucky Investors L.P.; Lazarus Property Corporation; and Green Farm Property Owners Association.

“The defendants collected millions of dollars from these land sales,” Stumbo said. “Yet consumers have been left with property which is not good for building and in many cases inaccessible due to the failure of the defendants to keep their promises. We will continue to seek all appropriate remedies for victims.”

Grayson Circuit Court
Tuesday, August 23, 2005
1:00 Central Standard Time