Stumbo Sues Texas Real Estate Developers for violations of Kentucky Consumer Protection Act

FRANKFORT, KY (February 25, 2005) - Attorney General Greg Stumbo today announced the filing of a lawsuit 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 Complaint 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, including failing to provide promised amenities and infrastructure such as roads and utilities, failing to provide unencumbered title to the lots, and misuse of required annual maintenance fees.

The Complaint further alleges misrepresentations regarding memberships in the Lafayette Golf 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 have collected millions of dollars from these land sales.” Stumbo said. “Victims, many of whom invested all the money they had, are left with unusable lots, few or no roads, and nearly worthless property. My Office will protect such victims of unfair business practices.”

The lawsuit seeks an injunction against further sales of lots without full and complete disclosures, restitution to Kentucky consumers, civil penalties, and the appointment of a receiver to assist with restitution efforts.