Chapter 6 Class Litigation Against Lenders for Campground PL94Ch06

8/4/2019 Chapter 6 Class Litigation Against Lenders for Campground PL94Ch06

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Chapter 6 Class Litigation Against Lenders for CampgroundMembership Fraud

6.1 Complaint

IN THE UNITED STATES DISTRICT COURTFOR THE NORTHERN DISTRICT OF OHIO

John GRAY and Laurie GRAY, residents of West Virginia, and Peter ISAAK and Susan J.ISAAK, residents of Ohio, on behalf of themselves and other persons similarly situated,

Plaintiffs,

[vs.]

TRUMBULL SAVINGS AND LOAN COMPANY, a state chartered savings and loan in Ohio,Defendant.

CIVIL ACTION NO.

CLASS ACTION COMPLAINT

NATURE OF THE ACTION

This action is brought on behalf of all individuals who purchased interests (or

memberships) in Ponderosa Park and The Landing At Clay's Park two Ohio recreational

campground resorts pursuant to certain purchase money loans with Trumbull Savings And Loan

Company (hereafter "Trumbull"). The Plaintiffs seek damages under Sections 1962(c) and

1962(d) of the Racketeering Influenced And Corrupt Organizations Act, 18 U.S.C. Sec. 1962

(RICO) for Defendant Trumbull's aiding and abetting of the campgrounds violation of RICO.

The Plaintiffs also seek damages pursuant to contractual rights created by the Federal Trade

Commissions [hereafter "FTC"] "holder provision" regulation as set forth at 16 C.F.R. 433.2.

The Defendant, Trumbull, is or was the holder of the purchase money loan agreements made

with Plaintiffs which are subject to this FTC regulation. As a holder, Trumbull is subject to "any

claims" that the Plaintiffs have against the two sellers of campground resort services, Ponderosa

Park and The Landing At Clay's Park. The Plaintiffs have pled six separate claims under federal

and state law against Trumbull arising in part out of the conduct of Ponderosa and/or The

Landing, two commonly owned and operated campgrounds respectively in Mahoning and Stark


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Counties in Ohio. As set forth below Defendant Trumbull is liable for all federal and state

claims under the contractual rights created by the FTC holder provision.

JURISDICTIONAL STATEMENT

1. Counts II and III arise under 18 U.S.C. Section 1962(c) and 18 U.S.C. Section 1962(d)

respectively. The remaining Counts arising under contract and the common law are properly

asserted under this Court's pendent jurisdiction.

PARTIES AND OTHERS

2. Representative Plaintiffs, John Gray and Laurie Gray [hereafter "Grays"], are residents

of West Virginia and at all material times resided at 100 Main Street, Anytown, West Virginia.

3. Representative Plaintiffs, Peter Isaak and Susan J. Isaak [hereafter "Isaaks"], are

residents of Ohio and at all material times resided at 100 Main Drive, Anywhere, Ohio.

4. Defendant, Trumbull Savings And Loan Company, is a state chartered savings and loan

of Ohio and at all material times was located at 105 High Street, N.E., Warren, Ohio, 44482.

5. Ponderosa Park is a recreational campground located at 9362 Salem-Warren, Salem,

Ohio 44460. Ponderosa Park previously was operated by Ponderosa Park, Inc., an Ohio

corporation. In October 1988 Ponderosa Park, Inc. filed for bankruptcy.

6. The Landing At Clay's Park is a recreational campground located in Stark County,

Ohio at 5540 Manchester Avenue, NW, North Lawrence, Ohio 44666. The Landing was

previously operated by The Landing, Inc., an Ohio corporation which was owned and operated by

the same shareholders who owned and operated Ponderosa Park. In October of 1988, The

Landing also filed for bankruptcy.

7. The LiVorio-Sabatini Control Group is a group of interrelated corporations owned by

the same principals which operated both Ponderosa Park and The Landing At Clay's Park and in

addition Alpine Valley in Fayette County, Pennsylvania, another campground which also became

financially insolvent in October of 1988. The Controlled Group consists of three commonly

owned companies: Bo-Anthony Land Company, Inc., Eastern Resorts Corporation and Resort

Consultants of America, Inc. Bo-Anthony Land Company, Inc. has two wholly owned


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subsidiaries, Ponderosa Park Resort, Inc. and Ponderosa Park Music, Inc. Eastern Resort

Corporation has three wholly owned subsidiaries, The Landing At Clay's Park, Inc., Landing

Development Company, Inc. and Alpine Valley Resorts, Inc.

STATEMENT OF THE CASE

The Agreement To Purchase Campground Recreational Services

8. On January 3, 1987 the Representative Plaintiffs, John and Laurie Gray, purchased

from Ponderosa Park, Inc. a 1/750th interest in Ponderosa Park for $4,495 as represented by the

Agreement For Deed which is attached hereto as Exhibit A and the Facts And Regulations,

Exhibit B.

9. On January 4, 1987 the Representative Plaintiffs, Peter and Susan J. Isaak, purchased

from The Landing At Clay's Park, Inc. a 1/750th interest in The Landing for $5,220 as

represented by the Agreement For Deed which is attached hereto as Exhibit C and the Facts And

Regulations, Exhibit D [neither exhibit is reprinted infra].

10. The Grays and the Isaaks purchased the right to use recreational Ponderosa and The

Landing facilities or services as identified in the respective Agreement For Deeds and Facts And

Regulations both form documents utilized by the Campgrounds in their selling schemes.

11. As represented by the Agreements For Deed and the Facts And Regulation

Statements, the Grays received the right to use certain campground facilities and services. The

Grays' purchase constituted only a limited right of access to property owned by Ponderosa and a

right to use (or a membership to use) the recreational services to be provided by Ponderosa.

Thus, in the Agreement For Deed, Ponderosa expressly reserved the right to limit and/or deny the

Grays access to Phase 1-C of Ponderosa in the following manner:

A. The Agreement For Deed provides that the Grays did not have the right to

an exclusive use of any portion of Phase 1-C of Ponderosa.

B. The Agreement For Deed provides that on certain holiday weekends the

campsites would be allotted on a first come, first serve basis and that a

campsite was not guaranteed to the Grays for such holiday weekends.


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C. The Agreement For Deed provides that the Grays' interest in Phase 1-C of

Ponderosa was not transferable without the written consent of Ponderosa.

12. The Grays were never assessed nor did they ever pay any annual real estate taxes to

any taxing authority on their interest as levied by Mahoning County or any other taxing authority.

13. Simultaneously with their purchase, the Grays received and executed the Facts And

Regulations Statement (referenced in the Agreement For Deed) which contained contractual

commitments that Ponderosa had constructed or would construct certain recreational facilities.

The Grays Facts And Regulations attached hereto as Exhibit "B" provided:

2. Ponderosa Park now has, or under construction and proposed thefollowing recreational amenities and activities available for your use;

Lounge & RestaurantLarge Club HouseSupervised Activities For Youngsters, Teen & AdultsGolf Driving RangeSecurity Gate SystemSecurity Guard PatrolIndoor Heated PoolOutdoor PoolChildren's Wading PoolTeen CenterRecreational Game RoomTable TennisModern Comfort Stations

Softball FieldWestern StoreLake Fishing and Boating4400 Seat Theater with Professional EntertainmentTwo Tennis CourtsBasket Ball CourtVolley Ball CourtBadminton CourtShuffleboard CourtHorseshoe CourtExercise RoomSauna RoomWhirlpool BathIce SkatingSnowmobile TrailsPlaygroundsArchery RangeHiking TrailsDances and Buffets

Fact and Regulation No. 5 provided:


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5. Campsites in Phase 1-A will be provided with water, electricity, adriveway, a picnic table and a fire ring.

Fact and Regulation No. 13 provided:

13. There is a dump station located convenient to the campsites. Trash

receptacles are located throughout the campground.

14. The Grays' right to use Ponderosa was not limited to the Phase I-C in which

they were to receive a so-called warranty deed upon full payment of the purchase

price but instead provided:

20. Phase I-C Owners may use campsites in any Phase ofPonderosa Park Resort where undivided interestmemberships are sold on a basis similar to Phase 1-C andowners in those sections may use Phase 1-C campsites.

15. Ponderosa by the Facts and Regulations retained the right to limit and or exclude the

Grays' guests from their interest:

7. As a Ponderosa Park Resort Owner, you may have guests visit you. No onebut you or your immediate family may use your card. Guest passes will beissued by the Resort.

8. If you have additional guests that wish to stay at another campsite, theywill be charged $7.00 per day. Guest Campsite Reservations must bemade in advance.

16. The Agreements For Deed and the Facts And Regulations Statements of the Isaaks

and all other class Plaintiffs contained the identical boilerplate contract provisions as the

Agreement For Deed and Facts And Regulations used by The Landing at Clay's Park. Like the

Grays they never paid real estate taxes.

Trumbull Is Liable For All Claims Plaintiffs

Have Against Ponderosa And The Landing

17. Pursuant to an Agreement with Ponderosa, Trumbull obtained the right to provide

financing to purchasers of interests in Ponderosa. See Exhibit E [not reprinted infra]. The

Landing also had a virtually identical financing agreement with Trumbull.


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18. Simultaneously with execution of the Agreement For Deed, the Representative

Plaintiffs also executed a document entitled a "Promissory Note" (See Exhibit F, Grays'

Promissory Note and Exhibit G, Isaaks' Promissory Note) whereby the Grays and the Isaaks

agreed to obtain loan financing to purchase their campground interests from Trumbull.

19. Under Federal Trade Commission Rule, 16 C.F.R. 433.2, Ponderosa and The Landing

were both required to incorporate a contractual "holder provision" in the Promissory Note (which

in fact under the FTC Rule was a "purchase money loan"). This FTC regulation provides, inter

alia:

433.2 Preservation of Consumers' Claims and Defenses, Unfair or Deceptive

Acts or Practices.

In connection with any sale or lease of goods or services to

consumers, in or affecting commerce as "commerce" is defined in

the Federal Trade Commission Act, it is an unfair or deceptive act

or practice within the meaning of Section 5 of that Act for a seller,

directly or indirectly, to:

(b) Accept as full or partial payment for such sale or lease,

the proceeds of any purchase money loan (as purchase money loan

is defined herein), unless any consumer credit contract made in

connection with such purchase money loan contains the following

provision in at least ten point, bold face, type:

NOTICE

ANY HOLDER OF THIS CONSUMER CREDITCONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSESWHICH THE DEBTOR COULD ASSERT AGAINST THESELLER OF GOODS OR SERVICE OBTAINED WITH THEPROCEEDS HEREOF. RECOVERY HEREUNDER BY THEDEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THEDEBTOR HEREUNDER.


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20. Ponderosa and The Landing were both sellers engaged in the selling of services to

consumers in or affecting "commerce" as that term is defined by the Federal Trade Commission

Act, 15 U.S.C. Sec. 41 etseq.

21. Trumbull drafted the purchase money loans executed by Plaintiffs but failed to

incorporate the Federal Trade Commission holder provision required by 16 C.F.R. Section 433.2.

22. The FTC holder provision Rule is intended to provide individuals, including the

Plaintiffs, with contractual rights of action against the holder of their purchase money loan

agreements.

23. Despite its absence from the Grays' and Isaaks' purchase money loans, the holder

provision is by operation of law deemed to be a term of the loans. The purchase money notes of

the Grays and Isaaks thus must be deemed to contain the following implied contract provision:

NOTICE

ANY HOLDER OF THIS CONSUMER CREDITCONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSESWHICH THE DEBTOR COULD ASSERT AGAINST THESELLER OF GOODS OR SERVICE OBTAINED WITH THEPROCEEDS HEREOF. RECOVERY HEREUNDER BY THEDEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THEDEBTOR HEREUNDER.

24. Trumbull is or was a "holder" of the Representative and Class Plaintiffs' purchase

money loans.

25. As the holder of the Representative and Class Plaintiffs' purchase money loan

agreements, Trumbull is liable under the "holder" provision for all claims the Representative and

Class Plaintiffs have against Ponderosa and The Landing.

The RICO Claims Against Ponderosa And The Landing For Which

Trumbull Under The Holder Provision Is Liable

26. Beginning on or about January 1, 1985 the owners of the Ponderosa and The Landing

developed illegal schemes in the nature of a "bust-out" utilizing the United States wires and mails


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to sell campground interests or memberships in the Ponderosa and The Landing. In these

fraudulent schemes, Ponderosa and The Landing undertook the marketing of memberships in and

development of recreational campgrounds. After Ponderosa and The Landing had partially

developed the campgrounds and obtained millions of dollars in purchase money loan proceeds

and other membership sales proceeds, the campgrounds were then looted by the LiVorio-Sabatini

Control Group of all capital necessary to complete and operate the campgrounds by the principal

owners and/or officers of the campgrounds. After only 3 years of operation, Ponderosa and The

Landing were intentionally made insolvent and placed into bankruptcy.

27. The Representative and Class Plaintiffs were thus sold an interest in a campground

that was undeveloped. The owners of the campgrounds then implemented and executed bust-out

type schemes that would prevent the campgrounds from ever being "fully developed" as

contractually provided for in the Plaintiffs' Agreement For Deed.

28. Ponderosa's and The Landing's schemes involved utilizing the United States wires and

mails to attract potential campground purchasers to the undeveloped campgrounds, and then

make a quick sale using high pressure sales tactics and on-site financing from Trumbull. Upon

making the sales and arranging the financing on behalf of Trumbull, the campgrounds were then

paid only a portion of the proceeds of the purchase money loans directly by Trumbull with the

remainder of the proceeds being held by Trumbull in a "hold-back" account.

29. In disbursing the loan proceeds, Trumbull withheld a portion of the loan (either 10%

or 60% of the amount of each loan). Trumbull's portion was credited to an account commingled

in the general deposits of Trumbull. The remaining portion of the loan was paid directly to the

Campgrounds. The Representative and Class Plaintiffs paid 18% interest on the full amount of

the loan, including the portion never disbursed thus substantially increasing the amount of

interest (and profit) to Trumbull in excess of that allowed by Ohio law.

30. Once the proceeds of the sales were collected and after virtually all capital had been

looted from the Campgrounds, the LiVorio-Sabatini Control Group looted both Ponderosa and

The Landing and caused them to be insolvent and then placed them into bankruptcy.


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31. With reference to the Facts And Regulation (referred to in the Agreement For Deed),

numerous contracted for recreational facilities have either never been constructed, were only

partially constructed or have been or are being provided in such a condition as to make them

completely unusable.

32. Plaintiffs' interests as set forth in the Agreement For Deed and the Facts And

Regulations were rendered worthless when the LiVorio-Sabatini Control Group along with

Ponderosa and The Landing developed and then implemented schemes to loot the campgrounds.

In this connection, the campgrounds, even today, are not operational on a year round winter

through summer basis offering winter use and activities but are now (at best) what they were

prior to the illegal schemes, i.e., only seasonal rental campgrounds. Numerous contracted for

recreational facilities and activities have not been provided.

33. Ponderosa and The Landing thereby obtained money by employing an illegal scheme

in the nature of a "bust-out" in violation of the mail and wire fraud statutes.

34. Trumbull is subject to liability for Ponderosa's and The Landing's violation of Section

1962(c) of RICO, under the terms of the Federal Trade Commission holder provision which by

operation of law is deemed to be included in Representative and Class Plaintiffs' purchase money

loan agreements.

Aiding And Abetting Liability Claim Against Trumbull

35. Trumbull had knowledge of and substantially participated in Ponderosa's and The

Landing's pattern of racketeering from early 1987 to October 1988 when the schemes suddenly

ended.

36. Ponderosa initiated its campground sales scheme in January, 1985 in Mahoning

County, Ohio and The Landing's campground scheme was soon thereafter initiated in Stark

County, Ohio in November 1985. In 1985 and 1986 Bank One of Youngstown contracted for the

exclusive right to provide purchase money loans to purchasers of interests in both Ponderosa and

The Landing. In this time period, Bank One extended millions of dollars in purchase money

loans to purchasers of interests. In 1985 and 1986, the owners and officers of Ponderosa and The


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Landing, including William LaVorio, Robert Sabatini (and others) looted from Ponderosa and

The Landing millions of dollars needed to develop the then undeveloped campgrounds. Bank

One thereafter cancelled its purchase money arrangements with both Campgrounds.

37. In 1987, Defendant Trumbull contracted to provide purchase money loans to

purchasers of interests in Ponderosa and The Landing. In contracting to provide purchase money

loans pursuant to this agreement, Trumbull had obtained and reviewed financial information on

Ponderosa Park, The Landing and the LiVorio-Sabatini Control Group. Trumbull also provided

other lines of credit and/or mortgage financing to the LiVorio-Sabatini Control Group and/or its

individual officers and thus had knowledge of the financial condition of these corporations and

their ability (or inability) to meet their financial obligations. It was contemplated by Trumbull at

the Campgrounds that their financing relationship would continue for many years.

38. Trumbull knew (or was reckless in not knowing) about Ponderosa's and The

Landing's fraudulent bust-out type bankruptcy schemes. In this connection, Trumbull (knew or

acted recklessly in not knowing) that:

A. The owners and officers of Ponderosa and The Landing had taken millions of

dollars of capital from the Campgrounds in the years 1985 and 1986 (and since

there were no owner personal guarantees from the owners were highly likely to

continue to loot the campgrounds) which were in 1987 grossly undercapitalized.

Such undercapitalization was concealed from Trumbull's purchase money loan

borrowers, i.e., the Plaintiffs;

B. Ponderosa and The Landing could not meet their debt obligation to other financial

institutions and in addition its debt obligation to Trumbull as well as meet their

contractual commitments;

C. Ponderosa and The Landing never intended to honor their Agreement For Deed

obligations with Plaintiffs;

D. Ponderosa and The Landing could not (or would not) provide a "fully developed"

campground as contracted for in the Agreements For Deed; and finally


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E. The owners of Ponderosa and The Landing had millions of dollars in other loans

from and/or contingent liabilities to other financial institutions and they were

using money generated from Ponderosa and The Landing to pay these other

obligations instead of developing the undeveloped campgrounds.

39. Despite substantial knowledge or available information within its possession,

Trumbull knowingly and substantially assisted Ponderosa and The Landing in committing a bust-

out type scheme which has damaged representative Plaintiffs interests in the two campgrounds as

well as the interests of others. In this connection, Trumbull:

A. Retained Ponderosa and The Landing as its credit arranger to facilitate the making

of purchase money loans at the premises of the Campgrounds despite knowing

about (or recklessly ignoring) the Campgrounds' illegal schemes;

B. Withheld a portion of each purchase money loan to increase its loan profit without

the knowledge of Plaintiff borrowers and credited only a portion of the loan

directly to Ponderosa and/or The Landing pursuant to respective agreements.

Using this "hold-back" method of purchase money lending enabled Trumbull to

lend substantially less than agreed and receive interest greatly in excess of that

contracted for in the purchase money loan agreement and in excess of that allowed

by Ohio law;

C. Consciously intended that Ponderosa and The Landing continue their fraudulent

campground sales schemes in order for Trumbull to continue to receive its high

illegal profits from its purchase money arrangement with Ponderosa and The

Landing. In this connection, Trumbull sought continuation of its installment loan

program with the Campgrounds despite knowing (or recklessly ignoring) that the

campgrounds could not continue to fulfill their contractual obligations to

Plaintiffs and others and by concealing this fact from Plaintiffs;

D. Hired a former Bank One employee to implement and administer its purchase

money loan program who had direct knowledge of the Campgrounds' illegal


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schemes and the high profitability of the purchase money loan program used by

Bank One at the Campgrounds; and

E. Agreed with Ponderosa and The Landing not to incorporate the holder provision

in the purchase money loan agreements so that Ponderosa and The Landing could

perpetrate their schemes without subjecting Trumbull to liability under

agreements that explicitly contained the holder provision.

The Representative And Class Plaintiffs' ClaimsFor Ponderosa's And The Landing's Bad Faith

Conduct And Other Breaches Of Contract

40. In the Agreement For Deed and the Facts And Regulations, Ponderosa made explicit

contractual commitments that the Representative and Class Plaintiffs were to be provided a fully

developed campground:

The Purchaser further understands and agreed that this

purchase is on an "under development basis" and that the use of the

fully developed campgrounds is not guaranteed until Ponderosa

Park Resorts, Inc. is fully developed. Purchaser further

understands and agrees that all purchases of a 1/750th interest in

Ponderosa Park Resorts, Inc. shall be guaranteed the use of a

campsite anytime during the year except for the following holiday

weekends preceding and succeeding holidays: Memorial Day

holiday weekend, July 4th holiday weekend and the weekend

preceding and succeeding, and Labor Day holiday weekend. On

the weekends listed in the preceding sentence, campsites shall be

allotted on a first come, first serve basis or such other equitable

basis as Ponderosa Park Resorts, Inc. shall establish from time to

time.


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41. Despite this contractual commitment and many others in the Facts And Regulations

describing the facilities to be provided, Ponderosa Park, Inc. and The Landing, Inc. and the

LiVorio-Sabatini Control Group embarked upon schemes to loot the campgrounds of the capital

necessary to complete and operate the campgrounds. In the years 1985, 1986, 1987 and 1988 the

LiVorio-Sabatini Control Group which owned and operated the Campgrounds looted millions of

dollars from Ponderosa Park and The Landing at the same time they were engaged in an

aggressive campaign to sell interests in the campgrounds and while the campgrounds were

undeveloped. Ultimately, Ponderosa and The Landing simultaneously filed for bankruptcy in

October 1988.

42. After millions of dollars of campground interests were sold, Ponderosa and The

Landing were rendered insolvent by their owners and placed into bankruptcy. Ponderosa Park,

Inc. and The Landing, Inc. through its owners and operators intentionally failed to fully develop

and operate the campgrounds as contracted for with Plaintiffs.

43. The assets of Ponderosa and The Landing were purchased by Guardian Credit

Corporation pursuant to a Plan of Reorganization approved in April 1991. Both Campgrounds

are now being operated by Buckeye Resorts, Inc., a newly formed subsidiary of Guardian Credit.

Notwithstanding this Plan of Reorganization, the Plaintiffs have been and continue to be

damaged by the Campgrounds bad faith contract and breaches of contract. In this connection,

many of the contracted for recreational facilities have never been built or completed and many

others remain non-operational. The Campgrounds are not fully operational on a year round

winter through summer basis. Plaintiffs cannot now obtain restitution from Ponderosa and The

Landing for their illegal scheme given the Campgrounds' bankruptcies.

44. Ponderosa and The Landing during all material times, used substantially identical

Agreements For Deed and Promissory Notes with the Grays, the Isaaks and all other Plaintiffs in

connection with the selling of interests and the financing of loans with persons purchasing

Ponderosa and The Landing interests.


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CLASS ALLEGATIONS

45. This action is brought as a class action pursuant to Fed.R.Civ.P. Rule 23 on behalf of

all persons who purchased interests in The Landing and Ponderosa Park and obtained financing

for their purchase from Trumbull Savings And Loan Company pursuant to promissory notes.

46. The Class is believed to include thousands of persons, and is, therefore, so numerous

as to make it impracticable to bring all members of the respective class before the Court. The

exact number of purchasers is unknown to the representative Plaintiffs, but may be determined

from the records maintained by Defendant Trumbull. In many instances, such persons are

unaware that claims exist on their behalf or, having knowledge of such claims, have, in most

instances, sustained damages in such amounts that when taken individually are too small in

number to justify the expense and effort required to bring suit separately, but whose damages are

of such a significant size, if taken as a group, that they do justify the taking of legal action.

47. Common questions of law and fact affect the rights of each member of the class and a

common relief by way of damages for the Plaintiff class is sought.

48. Among the predominating common questions of fact and law are:

A. Whether Trumbull aided and abetted the Campgrounds' violation of 18 U.S.C.

Sec. 1962(c)?

B. Whether Ponderosa Park, Inc. and The Landing, Inc. violated RICO, 18 U.S.C.

Section 1962(c)?

C. Whether Trumbull, Ponderosa and The Landing conspired to violate Section

1962(c) of RICO in violation of Section 1962(d)?

D. Whether Ponderosa Park, Inc. and The Landing, Inc. breached their contracts with

the Plaintiff class?

E. Whether Ponderosa and The Landing violated their duties of good faith and fair

dealing in performance of their contractual obligations with the Plaintiff class?

F. Whether the FTC holder provision is by operation of law deemed to be a

contractual term in the Plaintiff class' purchase money loan agreements?


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G. Whether Trumbull is subject to liability for the federal and state law claims

Plaintiffs could have asserted against Ponderosa and The Landing under the FTC

holder provision?

49. The representative Plaintiffs will assure the adequate representation of all members of

the class, and have no conflict with class members in the maintenance of this action.

Representative Plaintiffs' claims are not only typical but identical to the claims of the class

members. They have no relationship with Defendant Trumbull except as borrowers pursuant to

purchase money loans and are aware that they cannot settle their action without Court approval.

Their interests in this action are antagonistic to the interests of Trumbull and they will vigorously

pursue the claims of the Class.

50. The representative Plaintiffs can acquire the financial resources to litigate this action.

Moreover, the Plaintiffs' undersigned counsel has agreed to pay all reasonable and necessary

costs to litigate this action.

51. Retained counsel are experienced in litigating class actions and have handled many

class actions in the state and federal courts (including a number of cases in this Court) for and on

behalf of other representative Plaintiffs. Many of these cases were consumer class actions.

Counsel are handling this case on a contingent basis and will receive compensation for their

professional services only as awarded by this Court.

52. A class action provides a fair and efficient method of adjudicating this controversy.

The substantive claims of the Representative and Class Plaintiffs are identical and will require

evidentiary proof of the same kind and application of the same law. Since Trumbull has treated

and are treating all Class members in a similar and/or identical manner equitable and declaratory

relief is appropriate with respect to the Class.

53. Representative Plaintiffs believe and therefore aver that there are no unusual legal or

factual issues which would cause management problems not normally and routinely handled in

Class actions, and because damages may be calculated with mathematical precision, the cost of


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administering the class fund will be minimized. The Representative Plaintiffs believe and

therefore aver that because Class members are unaware that their rights have been violated, or, if

aware, would be unable to secure counsel to litigate their claims on an individual basis because

of the relatively small nature of their damages in relation to the value of the professional services

which would have to be rendered, that a class action is the only proceeding in which they can

recover. Individual actions, as a result of the doctrine ofstaredecisis, could substantially impair

the rights of the purported Class members and an inconsistent adjudication would require

Defendant Trumbull to treat similarly and/or identically treated Class members differently.

54. The representative Plaintiffs are unaware of any other similar litigation against

Defendant Trumbull and believe that this action will further the public policies underlying

federal and state law. This Court is an appropriate forum since Defendant Trumbull does

business and is located within this forum.

COUNT I

RICO CLAIMS AGAINST PONDEROSA AND THE LANDING ANDTHEREFORE UNDER THE HOLDER PROVISION AGAINST TRUMBULL

55. The averments of the foregoing Paragraphs 1 through 54, inclusive, are incorporated.

56. For the purposes of this Count and Counts II and III, the LiVorio-Sabatini Group ("the

Control Group") is an association in fact enterprise engaged in and/or the activities of which

affect interstate commerce. In this connection, the Control Group was engaged in the business of

establishing corporations to sell campground interests like Ponderosa, The Landing and Alpine

Valley Resorts.

57. Ponderosa and The Landing were associated with the LiVorio-Sabatini Control Group

and actively participated in the operations of the LiVorio-Sabatini Control Group. In this

connection, Ponderosa and The Landing directed and controlled the selling of campground

interests on behalf of the LiVorio-Sabatini Control Group.

58. Ponderosa and The Landing engaged in a pattern of mail and wire fraud violations by

mailing and telephoning thousands of potential campground interest purchasers by offering them

"free prizes" if they would visit and tour the undeveloped campgrounds. The contracts executed


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by the representative and Class Plaintiffs contained a contractual commitment that Ponderosa and

The Landing would be developed. Instead Ponderosa and The Landing engaged in a bust-out

type scheme by looting The Landing and Ponderosa of capital necessary to complete

development of and operate the Campgrounds.

59. In furtherance of the fraudulent schemes, Ponderosa and The Landing undertook the

primary responsibility in Ohio for the marketing and selling of campground interests and for the

execution of the bust-out type bankruptcy scheme. After The Landing and Ponderosa had

successfully sold and obtained the proceeds for the sale of thousands of interests, millions of

dollars in capital necessary for the development and operation of the campgrounds the

campgrounds were "looted" by the officers and directors of the LiVorio-Sabatini Control Group.

60. The knowing and intentional conduct of Ponderosa and The Landing to defraud the

Representative and Class Plaintiffs of their contracted campground interests and the use of a

bust-out type bankruptcy scheme constituted violations of 18 U.S.C. Secs. 1341 and 1343.

61. As a direct and proximate result of the fraudulent conduct of Ponderosa and The

Landing in violation of Section 1962(c) of RICO, Representative and Class Plaintiffs have

suffered very substantial losses and damages to their property.

62. Defendant Trumbull's agreement with Representative and Class Plaintiffs by

operation of law is deemed to have provided:

NOTICEANY HOLDER OF THIS CONSUMER CREDIT

CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSESWHICH THE DEBTOR COULD ASSERT AGAINST THESELLER OF GOODS OR SERVICE OBTAINED WITH THEPROCEEDS HEREOF. RECOVERY HEREUNDER BY THEDEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THEDEBTOR HEREUNDER.

See C.F.R. Section 433.2.

63. By virtue of the foregoing, Defendant Trumbull is liable to the Representative and

Class Plaintiffs for Ponderosa's and The Landing's violation of 18 U.S.C. Sec. 1962(c).


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COUNT II

AIDING AND ABETTING LIABILITY AGAINST TRUMBULL


65. Defendant Trumbull had knowledge of and knowingly and substantially participated

in Ponderosa's and The Landing's pattern of racketeering activity.

66. Defendant Trumbull aided and abetted Ponderosa and The Landing by:

A. Financially assisting Ponderosa and The Landing in its selling schemes by

providing financing to the Plaintiffs with full knowledge of the illegal schemes

being perpetrated;

B. Intended and/or encouraged continuation of the illegal schemes so that Trumbull

could continue to receive illegal excessive interest rates on its purchase money

loans, which high interest were unknown to Representative and Class Plaintiffs

and illegal under Ohio law; and

C. Sent false loan statements to Plaintiffs concerning the true loan amount, true

unpaid balance, true interest rates and concealed its hold-back accounts.

67. Defendant Trumbull's aiding and abetting Ponderosa's and The Landing's violation of

RICO has caused substantial damage to Representative and Class Plaintiffs.

COUNT III

CONSPIRACY UNDER RICO SECTION 1962(d) TO VIOLATERICO SECTION 1962(c) AGAINST TRUMBULL


69. The owners of Ponderosa and The Landing, Ponderosa, The Landing and Trumbull all

agreed to participate in the affairs of the enterprise through the commission of at least two

predicate acts under RICO, 18 U.S.C. Sec. 1962(c). In this connection, Trumbull agreed with

Ponderosa and The Landing notto incorporate the FTC holder provision in the purchase money

loan contracts in violation of FTC Regulations and then used the United States wire and mails in

sending loan information to the Plaintiffs. In addition Trumbull agreed with Ponderosa and The


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Landing that it would finance the Plaintiffs' purchase of interests knowing of the Campgrounds'

illegal bust-out type schemes, to increase its own profits by use of its hold-back accounts.

Trumbull thus agreed with Ponderosa and The Landing to commit violations of 18 U.S.C.

Sections 1341 and 1343.

70. Trumbull as set forth above agreed to participate in and/or aided and abetted

Ponderosa's and The Landing's violation of Section 1962(c).

71. Trumbull therefore conspired with Ponderosa and The Landing to violate Section

1962(c) of RICO and therefore has violated Section 1962(d) of RICO which makes it unlawful

for any person to conspire to violate Section 1962(c).

COUNT IV

BREACH OF CONTRACT CLAIMS AGAINST PONDEROSAAND THE LANDING AND THEREFORE TRUMBULL


73. At the time of the purchase of their campsite interests in the campgrounds from

Ponderosa and The Landing, the Grays, Isaaks and the Class Plaintiffs executed the Agreements

For Deed (See Exhibits "A" and "C") setting forth the terms and conditions concerning their

purchases.

74. Ponderosa and The Landing (and their owners) have failed to comply with the terms

and conditions in their Agreements for Deed by failing to provide the contracted for fully

developed campsite facilities but instead looted all or virtually all capital from the campgrounds

and by causing the Campgrounds' bankruptcy.

75. Ponderosa and The Landing have therefore breached their agreements with the Grays,

Isaaks and the Class Plaintiffs, and caused them to suffer substantial losses and damages.

76. Defendant Trumbull by its purchase money loans with the Representative and Class

Plaintiffs, by operation of law agreed to be subject to any claim by a purchaser of a Ponderosa

interest or Landing interest that could be asserted against Ponderosa and The Landing under the

terms of the FTC "holder provision" which is deemed to be included in all the purchase money

loans.


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77. By virtue of the foregoing, Trumbull is liable to the Representative and Class

Plaintiffs for Ponderosa's and The Landing's breach of their contracts with the Representative and

Class Plaintiffs.

COUNT V

BREACH OF CONTRACT -- DUTY OF GOOD FAITH AND FAIRDEALING AGAINST THE CAMPGROUNDS AND THEREFORE TRUMBULL


79. The Plaintiffs' Agreements For Deed contain a duty that Ponderosa and The Landing

exercise good faith and fair dealing in the performance of their contractual obligations.

80. In the Agreements For Deed executed by the Representative and Class Plaintiffs,

Ponderosa and The Landing contracted to provide Plaintiffs a fully developed campground.

81. The Landing and Ponderosa failed to exercise good faith and fair dealing by looting

the campgrounds of all or virtually all capital which was needed to develop and operate the

campgrounds. In this connection, Ponderosa and The Landing acted in bad faith and unfairly

dealt with the Representative and Class Plaintiffs by failing to develop and operate the

campgrounds and intentionally causing their insolvency and eventual bankruptcy.

82. Defendant Trumbull in its purchase money loans with the Representative and Class

Plaintiffs, by operation of law, is deemed to be subject to any claim by a purchaser of a

Ponderosa interest or Landing interest that could be asserted against Ponderosa and The Landing

under the terms of the FTC "holder provision."

83. By virtue of the foregoing, Trumbull is liable to the Representative and Class

Plaintiffs for Ponderosa's and The Landing's breach of their contracts with the Representative and

Class Plaintiffs.

COUNT VI

CONSPIRACY TO INTENTIONALLY OBSTRUCT OR DENY PLAINTIFFSA REMEDY PROVIDED BY FEDERAL TRADE COMMISSION LAW



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85. Trumbull and Ponderosa and The Landing knew (or was reckless in not knowing) that

the Federal Trade Commission required inclusion of the holder provision in Plaintiffs' purchase

money loan contracts. In this connection, Ponderosa and The Landing arranged credit at the

Campgrounds on behalf of Bank One of Youngstown in 1985 and 1986 for thousands of

campground purchasers using purchase money loan contracts containing the holder provision.

86. Ponderosa and The Landing had a legal duty to incorporate the holder provision in the

purchase money loan agreements utilized to finance the Plaintiffs' purchase.

87. Defendant Trumbull and Ponderosa and The Landing agreed that the holder provision

not be incorporated in Trumbull's purchase money loan agreements in order to obstruct or

prevent Representative and Class Plaintiffs from pursuing their rights under Federal Trade

Commission rights as set forth in 16 C.F.R. 433.2.

88. Trumbull and/or Ponderosa and The Landing drafted and agreed to use and used the

purchase money loan contracts without incorporating the required FTC holder provision.

89. Representative and Class Plaintiffs have been damaged as a result of the conspiracy

by Trumbull, Ponderosa and The Landing to obstruct or attempt to deny their legal rights.

PRAYER FOR RELIEF

WHEREFORE, the Representative Plaintiffs, individually and on behalf of all

other class members similarly situated, demand judgment against Trumbull as follows:

1. Judgment against Defendant Trumbull for Ponderosa's and The Landing's RICO

violations and granting Plaintiffs the purchase price of their campground interests and any

interest they paid thereon. (Count I)

2. Judgment declaring that Defendant Trumbull has aided and abetted Ponderosa and The

Landing to violate RICO (thereby violating RICO itself) and granting Plaintiffs triple damages

pursuant to 18 U.S.C. 1964(c), and an award of reasonable attorneys fees. (Count II)

3. Judgment declaring that Defendant Trumbull has violated 18 U.S.C. 1962(d) by

conspiring with Ponderosa and The Landing to violate 18 U.S.C. 1962(c) and granting Plaintiffs

triple damages pursuant to 18 U.S.C. 1964(c) and an award of reasonable attorney fees.


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4. Judgment against Defendant Trumbull for Ponderosa's and The Landing's breach of

contract and granting Plaintiffs the purchase price of their campground interest and the interest

they paid on the purchase. (Counts III and IV)

5. Judgment against Trumbull for conspiracy to obstruct Plaintiffs' legal remedies and

granting Plaintiffs damages in the amount of the purchase price of their interest and any interest

they paid. (Count V)

6. Any and all such other relief as this Court finds fair and equitable.

Attorneys for the RepresentativePlaintiffs, John Gray and Laurie Gray

and Peter Isaak and Susan J. Isaak,

and the Class PlaintiffsDATED:

6.2 First Set of Interrogatories

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF OHIO

Peter ISAAK and Susan J. ISAAK, residents of Ohio, and John GRAY and Laurie GRAY,

residents of West Virginia, on behalf of themselves and other persons similarly situated,

Plaintiffs,

[vs.]

TRUMBULL SAVINGS AND LOAN COMPANY, a state chartered savings and loan in Ohio,

Defendant.

CIVIL ACTION NO. 4:93 CV 01121

(JUDGE DOWD)

(Magistrate Streepy)


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PLAINTIFFS' FIRST INTERROGATORIES

TO TRUMBULL SAVINGS AND LOAN

NOW COMES the Representative Plaintiffs, Peter and Susan Isaak and John and Laurie

Gray, by their undersigned counsel, pursuant to Fed.R.Civ.P. Rule 33 with their First

Interrogatories to Defendant, Trumbull Savings and Loan Association ("Trumbull") to be

answered fully, in writing and under oath.

INTRODUCTION

In these Interrogatories:

1. "Defendant: refers to Trumbull Savings and Loan ("Trumbull") including any present

or former officers, management, employees, or members of the Board of Directors of Trumbull,

its predecessors, successors, parents, subsidiaries, affiliates, segments or divisions.

2. "The Campgrounds" refers to The Landing at Clay's Park, an Ohio corporation which

operated and sold interests in The Landing at Clay's Park campground and Ponderosa Park, Inc.,

an Ohio corporation which operated and sold "interests" in Ponderosa Park campground or any

one such Campground.

3. "Borrowers" mean all persons who obtained financing for the purchase of an interest in

the Campgrounds from Trumbull.

4. Eastern Resorts refers to Eastern Resorts, Inc. a Pennsylvania corporation, which was

the parent corporation of The Landing.

5. "A 1/750 interest in [a Phase]" describes the nature of Plaintiffs' purchase as provided

in the Agreements For Deed for each of the Campgrounds.

6. The Livorio-Sabatini Group refers to three commonly owned companies and their

affiliates as identified below. The three companies are Bo-Anthony Land Company, Inc., Eastern

Resorts Corporation and Resort Consultants of America, Inc. Bo-Anthony Land Company, Inc.

has two wholly owned affiliates, Ponderosa Park Resort, Inc. and Ponderosa Park Music, Inc.


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Eastern Resort Corporation has three wholly owned affiliates, The Landing at Clay's Park, Inc.,

Landing Development Company, Inc. and Alpine Valley Resorts, Inc.

7. The Agreements refers to the August 25, 1986 agreements between Trumbull and the

Campgrounds whereby Trumbull agreed to provide loans to approved purchasers of interests at

the Campgrounds.

8. Purchase Money Loan refers to those loans defined in 16 C.F.R. 433.1.

9. "Document" as used herein has the full extent of its meaning as provided in

Fed.R.Civ.P. Rule 34(A), and includes any written, drawn, recorded, transcribed, filed or graphic

matter, however produced or reproduced, and any drafts, revisions or amendments thereof.

10. The word "person(s)" means all entities, and, without limiting the generality of the

foregoing, includes natural persons, joint owners, associations, companies, partnerships, joint

ventures, corporations, trusts and estates.

11. The word "document(s)" means all written, printed, recorded or graphic matter,

photographic matter or sound reproductions, video tapes and/or films, however produced or

reproduced, pertaining in any manner to the subject matter indicated, including computer tapes,

discs, or other electronically stored data.

12. The words "identify", "identity" and "identification", when used with respect to a

person or persons, means to state the full name and present or last known residence and business

address.


document or documents, means to describe the document or documents by date, subject matter,

name(s) or person(s) that wrote, signed, initialed, dictated or otherwise participated in the

creation of the same, the name(s) of the addressee or addressees (if any) and the name(s) and

address(es) of each person or persons who have possession, custody or control of said document

or documents. If any such document was, but is no longer, in your possession, custody or

control, or in existence, state the date and manner of its disposition.


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14. The word "identify", when used with respect to an act (including an alleged offense),

occurrence, statement or conduct [hereinafter collectively called "act"], means to: (1) describe

the substance of the event or events constituting such act; and to state the date when such act

occurred; (2) identify each and every person or persons participating in such act; (3) identify all

other persons (if any) present when such act occurred; (4) state whether any minutes, notes,

memoranda or other documentation of such act was made; (5) state whether such document now

exists; and (6) identify the person or persons presently having possession, custody or control of

each document.

15. The term "you" or "your" refers to Defendants and any agents, employees, officers, or

other representatives acting on each such Defendant's behalf.

16. Unless otherwise indicated, the time period for answering these Interrogatories shall

be January 1, 1984 to the present.

A. If the space provided for your answer is not sufficient, please use additional

sheets, numbered, for example, in the case of Interrogatory No. 1, 1-a, 1-b, 1-c,

etc., after each such interrogatory, and insert same in proper order in all copies

served.

B. Each of the following Interrogatories is intended to be a continuing Interrogatory

and Plaintiffs hereby request that in the event, at any later date, you obtain any

additional facts or form any conclusions, opinions or contentions different from

those set forth in your answers to these Interrogatories, you should amend your

answer to such Interrogatories promptly and sufficiently in advance of any trial to

fully set forth such difference.

INTERROGATORIES1. Identify each person who was involved in negotiating and arranging the Agreements

and the extension of loans and/or lines of credit for the purchase and/or development of the

Campgrounds or to the Livorio-Sabatini Group for (a) you and (b) the Campgrounds or the

Livorio-Sabatini Group. In answering this Interrogatory identify:


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A. Each person who was involved in the described negotiating or arranging credit on

behalf of Trumbull;

B. Each person who was involved in negotiating or applying for credit on behalf of

the Campgrounds or the Livorio-Sabatini Group; and

C. Each person from Bank One of Youngstown, Bank One of Columbus or Banc

One Corporation who at any time contacted Trumbull about providing financing

to purchasers of interests at the Campgrounds.

ANSWER:

2. Identify each person who participated or dealt with the Campgrounds and/or their

principals in negotiating and/or managing or overseeing any and all agreements between

Trumbull and the Campgrounds and/or its principals and/or the Livorio-Sabatini Group relating

to the construction and development of the Campgrounds. In answering this Interrogatory

identify:

A. Each person who was so involved on behalf of Trumbull; and

B. Each person who was involved on behalf of the Campgrounds or the Livorio-

Sabatini Group.

ANSWER:

3. Identify each person who participated or dealt with the Campgrounds and/or its


Trumbull and the Campgrounds and/or its principals relating to the operation and maintenance of

the Campgrounds or any loan relationship with the Campgrounds or the Livorio-Sabatini Group.

In answering this Interrogatory identify:A. Each person who was so involved on behalf of Trumbull; and

B. Each person who was so involved on behalf of the Campgrounds or the Livorio-

Sabatini Group.

ANSWER:


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4. Identify each person who participated or dealt with the Campgrounds and/or its


Trumbull and/or its principals relating to the sales and financing of interests in the Campgrounds.

In answering this Interrogatory identify:

A. Each person who was so involved on behalf of Trumbull; and

B. Each person who was so involved on behalf of the Campgrounds.

ANSWER:

5. Identify each person who participated in or was engaged in negotiations with the

United States trustee and/or any lending institutions relating to the proposed continued operation

of the Campgrounds after the bankruptcy of Ponderosa and The Landing in October 1988. In

answering this interrogatory, identify:

A. The person involved in said negotiations on behalf of Trumbull;

B. The person involved in said negotiations on behalf of the United States Trustee;

and

C. The person involved in said negotiations on behalf of any financial institutions or

any other companies or individuals.

ANSWER:

6. Identify each person who inspected or visited the Campgrounds on behalf of Trumbull

at any time from 1984 until the present. In answering this interrogatory identify:

A. The name of each such person;

B. The date of the inspection or visit;

C. The purpose for the inspection or visit; and

D. Any documents, memoranda, notes and/or letters referring or relating to the

inspection or visit.

ANSWER:

7. Identify all Borrowers who obtained financing from Trumbull for the purchase of an

interest in the Campgrounds. In answering this interrogatory, identify:


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A. The name of such Borrower;

B. The address and telephone number of such Borrower;

C. The loan number;

D. The amount of principal, interest, late fees and prepayment fees or other fees or

charges paid to Trumbull by each such Borrower;

E. The amount still alleged owing to Trumbull by each such Borrower;

F. The documents that relate to each such Borrower; and

G. Whether Trumbull is still the holder of the financing agreement.

ANSWER:

8. Identify all documents describing or tending to explain the nature of the Agreement For

Deed which was used as a security interest in your financing agreement with persons who

purchased Campground interests.

ANSWER:

9. Identify all documents which refer to or relate to the plan or proposal to use reserve

accounts or hold back accounts under the Agreements.

10. Identify all documents which refer to or relate to the operation and maintenance of the

reserve accounts or hold back accounts under the Agreements.

ANSWER:

11. Identify all your existing corporate and individual document retention and destruction

policies, practices and procedures.

ANSWER:

12. Identify your credit approval practices for analyzing and approving loan applications

made by the Campgrounds and/or its principals which were to be used for the construction,

development and maintenance of the Campgrounds.

ANSWER:

13. Identify other customers of Trumbull that have established agreements with Trumbull

similar to that established in the Agreements in which reserve or hold back accounts are used.


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ANSWER:

14. Identify all appraisals, financial analyses, or financial projections performed either by

Trumbull or an outside agency with respect to the Campgrounds or Trumbull's campground loan

portfolio.

ANSWER:

15. Identify each communication between Trumbull and any state or federal banking

authority referring or relating to any one or more loans by Trumbull to the Campgrounds or their

principals or the Livorio-Sabatini Group or referring to Trumbull's loan portfolio relating to the

Campgrounds and/or the Agreements.

ANSWER:

16. Identify the terminology used by Trumbull to delineate, according to degree of risk,

the various classifications by which it categorizes loan risks, problem loans and loan

applications. Identify any document defining these identifiable degree risks.

ANSWER:

17. Identify by name, title and business address each past or present manager or board of

director of Trumbull known to you who has knowledge or information concerning the following

topics related to Trumbull, the Campgrounds, or the Livorio-Sabatini Group:

A. Analyses, reports, plans, forecasts or any other documents concerning the

condition of Trumbull's or Bank One's installment loan portfolio and/or problem

and non-performing loans made to the Campgrounds or their principals;

B. Trumbull's auditing and loan administration procedures implemented to monitor

the quality of its loan portfolio with the Campgrounds or the Livorio-Sabatini

Group, including, but not limited to, procedures for checking or reviewing the

underlying loan and collateral documentation;

C. The current financial condition of the Campgrounds; and

D. The current operating condition of the Campgrounds.

ANSWER:


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18. State whether you have ever been interviewed or investigated, either formally or

informally, or have ever testified before or produced any documents at any proceedings

conducted by, a grand jury, or any state agency in connection with loans made to the

Campgrounds or the Livorio-Sabatini Group or regarding the development and operation of their

Campgrounds, and if so, identify the following:

A. The date and the place of each such examination, interview, investigation

testimony or document production;

B. The subject matter of each such proceeding;

C. The person or persons conducting such proceeding;

D. All transcripts of such proceedings and of each such examination, interview,

investigation, testimony or document production; and

E. All documents so produced.

ANSWER:

19. Identify the operating condition of the Campgrounds, by Campground, in 1985, 1986,

1987 and 1988. In your answer, by year, include:

A. The amount of income generated by assessment of maintenance fees;

B. The amount of loan proceeds paid to the Campgrounds pursuant to Trumbull's

August 25, 1986 Agreements with the Campgrounds;

C. The amounts credited to the reserve accounts under the Agreements;

D. State separately the amount of loans or lines of credit made by Trumbull to each

of the Campgrounds for the constructions and development of each of the

Campgrounds;

E. The recreational facilities or other construction which had been completed;

F. The recreational facilities or other construction built within the calendar year;

G. The recreational facilities or other construction which remained to be completed;


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H. Any projections, proposals, plans, appraisals, financial outlooks or other

documents of similar kind done for or by Trumbull regarding the projected future

operation of the Campgrounds;

I. All documents referring or relating to the financial condition of the Campgrounds;

and

J. All persons preparing and/or providing the information or documents identified in

this Interrogatory No. 18.

ANSWER:

20. Identify the operating condition of the Campgrounds, by Campground, in October

1988 and thereafter (by year). In your answer include:

A. The amount of income generated by assessment of maintenance fees in:

i. 1988;

ii. 1989;

iii. 1990;

iv. 1991;

v. 1992; and

vi. 1993

B. The recreational facilities or other construction which had been completed by

October 1988;

C. The recreational facilities or other construction built within the calendar year;

D. The recreational facilities or other construction which remained to be completed

within the Campground after October 1988. In answering this interrogatory,

identify:

i. the facilities or other construction that were completed and/or undertaken;

ii. the cost of building or completing such facilities; and

iii. the lenders or any other entities or individuals involved in funding such

building or construction; and


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F. All documents related to your answers to this Interrogatory No. 19; and

G. All persons preparing and/or providing the information in this Interrogatory No.

19.

ANSWER:

21. Identify each present and former employee, officer, agent or consultant of Trumbull

who has knowledge concerning the operating condition of the Campgrounds, by Campground,

beginning in 1985 and each year thereafter.

ANSWER:

22. In separate paragraphs numbered to correspond with the number paragraphs of the

Defendant's Answer and Defenses, identify all persons who have knowledge of the matters

alleged in each paragraph of Trumbull's Answer and Defenses.

ANSWER:

23. Identify all documents sent to or received from Bank One relating to the

Campgrounds or the Livorio-Sabatini Group.

ANSWER:

24. In separate paragraphs numbered to correspond with the numbered paragraphs of

Trumbull's Answer and Defenses, identify the persons whom you intend to call as witnesses at

trial to establish the facts alleged in each paragraph of the Answer and Defenses.

ANSWER:

25. In separate paragraphs numbered to correspond with the number paragraphs of

Trumbull's Answer and Defenses, identify each document including, without limitation,

correspondence which relates, refers or pertains to the allegations of each paragraph of the

Answer and Defenses.

ANSWER:

26. State whether any borrowers have made any complaints to you or known to you,

either verbally or in writing, as to the Campgrounds. In answering this Interrogatory identify:

A. The name and address of each borrower making such complaint; and


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B. Any documents relating to each complaint.

ANSWER:

27. Identify every expert retained or employed by Trumbull who will be a witness at trial,

and, as to each, state:

A. His present or last known business and residential address and telephone number;

B. A complete identification of all documents examined, prepared, requested or

made by such expert with respect to this case;

C. His present or last known business or professional position (including his job title

and a description of his job functions, duties and responsibilities);

D. A chronological resume of the expert's educational and professional background,

including the associations and societies of which is a member;

E. A complete identification of all documentary materials published by such expert

within his field; and

F. The subject matter on which each such expert is expected to testify and the

substance of the facts and opinions to which each expert is expected to testify, and

a summary of the grounds for each opinion.

ANSWER:

Attorneys for the Representative

and Class Plaintiffs

DATED:

6.3 First Request for Production of Documents






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Plaintiffs,

[vs.]TRUMBULL SAVINGS AND LOAN COMPANY, a state chartered savings and loan in

Ohio,

Defendant.


(JUDGE DOWD)


PLAINTIFFS' FIRST REQUEST FOR PRODUCTION

OF DOCUMENTS TO DEFENDANT TRUMBULL SAVINGS AND LOAN

Pursuant to Fed.R.Civ.P. Rule 34 Representative Plaintiffs, Peter and Susan Isaak and

John and Laurie Gray, by their attorneys, make this their First Request for Production of

Documents to Defendant Trumbull Savings and Loan ("Trumbull").

A. DEFINITIONS

Unless otherwise specified in or required by the context of a specified document request,

the following definitions shall apply to this request for production of documents:

1. "Defendant" refers to Trumbull Savings and Loan ["Trumbull"] including any present







3. "Borrowers" mean all persons who obtained financing from Trumbull for the purchase

of an interest in the Campgrounds.


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4. Eastern Resorts refers to Eastern Resorts, Inc. a Pennsylvania corporation, which was a

parent corporation of one or both of the Campgrounds.

5. "A 1/750 interest in [a Phase]" describes the nature of Plaintiffs' purchase as provided

in the Agreements for Deed for each of the Campgrounds.

6. The Livorio-Sabatini Group refers to three commonly owned companies and their






7. The Agreements refer to the August 25, 1986 agreements between Trumbull and The

Campgrounds whereby Trumbull agreed to provide financing for approved purchasers of

interests in the Campgrounds.

8. "Purchase Money Loan(s)" refers to those loans defined in 16 C.F.R. 443.1.



matter, however produced or reproduced, and any drafts, revisions or amendments

10. "Refer to", "relate to" and "concerning" means, directly or indirectly, referring to,

relating to, connected with, commenting on, impinging or impacting upon, affecting, responding

to, showing, describing, analyzing, reflecting or constituting.

11. "Financial statements" include, but are not limited to the following, whether audited

or unaudited, and whether final, interim,proforma, complete or partial: consolidated and non-

consolidated balance sheets, statements of earnings, additional paid-in capital, retained earnings

or source and application or use of funds; cash-flow projections; notes to each of such

statements; and any other statements and notes that pertain to the applicable persons' past or

present financial condition, including accountants' work papers.


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B. INSTRUCTIONS

1. In responding to these requests, Trumbull shall furnish all responsive documents

available at the time of production, and shall supplement its responses whenever necessary, in

accordance with the requirements of Fed.R.Civ.P. Rule 26(e).

2. Where a claim of privilege is asserted in response to any document request, or subpart

thereof, and a document is not provided on the basis of such assertion, for each document not

provided:

a. The party asserting the privilege shall in the objection to the document request, or

sub-part thereof, identify the nature of the privilege (including work product

immunity) which is being claimed; and

b. The following information shall be provided in the objection: (1) the type of

document (letter memorandum, etc.); (2) the general subject matter of the

document; (3) the date of the document; (4) the author of the document; (5) the

addressee(s) of the document; and (6) all recipients of the document.

3. If a document was prepared in several copies, or if additional copies were thereafter

made, and if any such copies were not identical or are no longer identical by reasons of any

notation or modification of any kind whatsoever, including without limitation notations on the

front or back of any of the pages thereof, then each such non-identical copy is a separate

document and must be produced.

4. It is requested that all requested documents be produced at Gallagher, Sharp, Fulton &

Norman, Seventh Floor, Bulkley Building, 15012 Euclid Avenue, Cleveland, Ohio 44115,

September 20, 1993, or at such other time and place mutually agreed to by the Parties.

C. RELEVANT TIME PERIOD

All requests herein refer to the period from January 1, 1984 to present, unless otherwise

specifically indicated.


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D. REQUEST FOR PRODUCTION OF DOCUMENTS

1. Any and all Documents, contracts, agreements, recourse agreements, corporate

guarantees, personal guarantees or other materials by and between Trumbull and the

Campgrounds and/or Trumbull and Eastern Resorts and/or Trumbull and William LaVorio,

Robert Sabatini, Walter Dragelevich, Thomas Carney, Thomas LiVorio and/or Marc LiVorio or

Eastern Resorts or with the Livorio-Sabatini Group or any one of its affiliated entities.

2. Any and all Documents, memoranda, plans, plats, business proposals, correspondence,

minutes of any meetings, Financial Statements, notes, files, reports, etc. relating to:

a. The construction and development of the Campgrounds including but not limited

to Documents relating or referring to the Campgrounds including any proposal or

plan to construct the Campgrounds;

b. The operation of the Campgrounds including but not limited to documents or

other material referring or relating to the recreational facilities and/or other

facilities available or offered at the Campgrounds; and

c. The sales procedure employed by the Campgrounds including but not limited to

Documents relating to or referring to the Campground's plan to sell "1/750th

interests."

3. Any and all Documents referring or relating to the finances of The Campgrounds,

Robert Sabatini, Mary Ann Sabatini, Peter Livorio, Walter Dragelevich, Thomas Carney, Karen

Livorio, Thomas Livorio, Marc Livorio, Eastern Resorts and the Livorio- Sabatini Group

including but not limited to:

a. Any and all files, credit files, loan agreements, loan applications, financial

statements, memoranda, workout plans, borrowers statements, Financial

Statements, correspondence, accounting records, minutes of any meetings,

business proposals, plans, plats, property appraisals, constructions estimates,

construction bids, credit reviews or other materials or documents of similar kind;


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b. Any and all documents of members of the Trumbull Board (or any Committee)

discussing any loan related to said individual or entities;

c. All communications or correspondence or other Documents sent to or received by

Trumbull from Bank One of Youngstown , Bank One of Columbus, Banc One

Corporation, Buckeye Union Insurance Company, GEICO, Terry Platthley or

Platthley and Scheffler, the LiVorio-Sabatini Group, William LaVorio, Robert

Sabatini, Walter Dragelevich, Thomas Carney, Marc LiVorio, Thomas LiVorio or

Robert LiVorio related to the finances of the Campgrounds;

4. All Documents related to the construction and development of the Campgrounds.

5. All Documents referring or relating to the Borrowers including, but not limited to:

a. All correspondence, contracts, agreements notices, claims, demands, Financial

Statements maintained by Trumbull and/or sent to Borrowers;

b. All correspondence claims, complaints, statements, sent to or communicated to

Trumbull by Borrowers;

c. All minutes of any meetings, notes, files, reports, correspondence, memoranda,

communications or other documents of similar kind relating to or referring to

Borrowers; and

d. All pleadings, correspondence, notes, minutes of meetings, memoranda relating to

or referring to lawsuits filed by Trumbull against Borrowers;

e. The amount of principal, interest, late fees and prepayment fees paid to Trumbull

by each one of the Borrowers including any amount charged off by Trumbull.

f. The amount of principal, interest and late fees or other fees which Trumbull

claims to be owed by the Borrowers.

6. All Documents sent to other lenders or financial institutions by Trumbull and

Documents received by Trumbull from other lenders or financial institutions referring or relating

to the Campgrounds, its officers and/or employees or the Livorio-Sabatini Group including but

not limited to the following:


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a. FirstSouth Savings and Loan of Pittsburgh;

b. Gallatin National Bank of Uniontown;

c. Integra Financial;

d. Cortland Banking and Savings Company;

e. McKinley Federal Savings and Loan;

f. Bank One of Youngstown;

g. GEICO Financial Services, Inc;

h. Bank One of Columbus; and

I. Banc One Corporation.

7. All Documents sent to or received from any state or federal agency referring to or

relating to the Campgrounds and/or its officers, agents or employees including, but not limited, to

such governmental agencies or officers as:

a. The Federal Trade Commission;

b. The Pennsylvania Department of Banking;

c. The Pennsylvania Attorney General;

d. The United States Attorney, including all Trumbull documents subpoenaed by the

United States Attorney;

e. The Ohio Attorney General or any other official of the State of Ohio;

f. The trustee in bankruptcy for The Landing and Ponderosa;

g. The United States Comptroller of the Currency;

h. The Internal Revenue Service; and

i. Federal Bureau of Investigation.

8. All Documents identified in Trumbull's Answers to Plaintiffs' First Set of

Interrogatories.

9. All analyses and/or projections done by or obtained by Trumbull referring to or relating

to the development and operation of the Campgrounds.


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10. All Documents concerning Trumbull's internal auditing or loan administration

procedures for monitoring loans of or loan relationships.

11. All minutes, drafts of minutes, exhibits, summaries, memoranda, resolutions, notes or

other Documents recording, concerning, or exchanged or distributed at any meeting of the Board

of Directors, or any committee thereof, of Trumbull including any executive, finance, audit, loan

or nominating committee referring or relating to:

a. The Campgrounds;

b. Terry Platthley or Platthley and Scheffler;

c. Eastern Resorts;

d. Peter Livorio;

e. Robert Sabatini;

f. Thomas Livorio;

g. Marc Livorio;

h. The Livorio-Sabatini Group;

i. Walter Dragelevich;

j. Thomas Carney.

12. All charts and other graphic presentations which list and/or describe the organization

of Trumbull personnel at the managerial level and above, including all major departments of

Trumbull and other subsidiaries including changes that have occurred throughout the relevant

time period.

13. All Documents concerning any special financial audit or investigation of the accuracy

of any Financial Statements prepared by or on behalf of the Campgrounds.

14. All Documents concerning any disagreement by Trumbull or any of its officers,

directors or employees with the conclusions or recommendations contained in any report,

Financial Statements, audit or analysis referring or relating to the operation of the Campgrounds.

15. All Documents referring or relating to Trumbull's Agreements including, but not

limited to:


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a) All agreements, memoranda, analyses, projections related to the reserve accounts

which were maintained by Trumbull pursuant to Paragraph 3 of the Agreements.

b) All agreements with other Trumbull customers in which Trumbull has agreed to

the use of reserve or holdback accounts, such as, but not limited to, car dealers,

mobile home dealers, or recreational vehicle dealers.

c) All analyses, studies, reports or projections prepared by Trumbull or received by

Trumbull as to the yield or profit to be obtained or obtained on Trumbull's loan

portfolio created by the Agreements.

d) All reports, analyses, studies or other similar documents received by Trumbull or

sent to other entities by Trumbull referring to or relating to the operation of

reserve or holdback accounts on Purchase Money Loan arrangements with

automobile dealers, mobile home dealers or recreational vehicle dealers, or other

similar lending relationships of Trumbulls;

e) All analyses, agreements, studies, reports, projections prepared by Trumbull or

received by Trumbull as to the yield or profit obtained or to be obtained on

Trumbull's arrangements with dealers of automobiles, mobile homes, recreational

vehicles, home siding or other similar relationships where Trumbull has agreed to

provide Purchase Money Loans to customers of said dealers.

f) All Documents related to the negotiation of the August 25, 1987 Agreements;

g) All Documents related to the negotiation of or attempts to obtain personal

guarantee agreements with Peter Livorio and Robert Sabatini on the August 25,

1987 Agreements.

h) All Documents reflecting how the yield on Trumbull's loan portfolio under the

Agreements with the Campgrounds was calculated.

i) All Documents related to the credit criteria established by or applied by Trumbull

in providing loans under the Agreements.


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j) All Documents sent to or received from Bank One relating to the August 25, 1986

Agreements or the Campgrounds

Attorneys for the Representative Plaintiffs,

Peter Isaak and Susan J. Isaak and

John Gray and Laurie Gray

DATED:

6.4 Second Set of Interrogatories





Plaintiffs,

[vs.]

TRUMBULL SAVINGS AND LOAN COMPANY, a state chartered savings and loan in Ohio,

Defendant.


(JUDGE DOWD)


PLAINTIFFS' SECOND INTERROGATORIES

TO TRUMBULL SAVINGS AND LOAN

NOW COMES the Representative Plaintiffs, Peter and Susan Isaak and John and Laurie

Gray, by their undersigned counsel, pursuant to Fed.R.Civ.P. Rule 33 with their First


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Interrogatories to Defendant, Trumbull Savings and Loan Association ("Trumbull") to be

answered fully, in writing and under oath.

INTRODUCTION

In these Interrogatories:

1. "Defendant" refers to Trumbull Savings and Loan ("Trumbull") including any present







3. "Eastern Resorts" refers to Eastern Resorts, Inc. a Pennsylvania corporation, which was

the parent corporation of The Landing.

4. "Floor Plan Financing" refers to any financing of multiple motor vehicles for an entity

or person who is in the business of selling motor vehicles.

5. "The LiVorio-Sabatini Group" refers to three commonly owned companies and their






6. "Loan" shall mean any form of financing, extension of credit, or the providing of

monies for any reason whatsoever.



matter, however produced or reproduced, and any drafts, revisions or amendments thereof.


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8. The word "person(s)" means all entities, and, without limiting the generality of the

foregoing, includes natural persons, joint owners, associations, companies, partnerships, joint

ventures, corporations, trusts and estates that were employed by you or associated with you.

9. The word "document(s)" means all written, printed, recorded or graphic matter,

photographic matter or sound reproductions, video tapes and/or films, however produced or

reproduced, pertaining in any manner to the subject matter indicated, including computer tapes,

discs, or other electronically stored data.


person or persons, means to state the full name and present or last known residence and business

address.


document or documents, means to describe the document or documents by date, subject matter,

name(s) or person(s) that wrote, signed, initialed, dictated or otherwise participated in the

creation of the same, the name(s) of the addressee or addressees (if any) and the name(s) and

address(es) of each person or persons who have possession, custody or control of said document

or documents. If any such document was, but is no longer, in your possession, custody or

control, or in existence, state the date and manner of its disposition.

12. The word "identify", when used with respect to an act (including an alleged offense),

occurrence, statement or conduct [hereinafter collectively called "act"], means to: (1) describe

the substance of the event or events constituting such act; and to state the date when such act

occurred; (2) identify each and every person or persons participating in such act; (3) identify all

other persons (if any) present when such act occurred; (4) state whether any minutes, notes,

memoranda or other documentation of such act was made; (5) state whether such document now

exists; and (6) identify the person or persons presently having possession, cus

Chapter 6 Class Litigation Against Lenders for Campground PL94Ch06

Documents

Transcript of Chapter 6 Class Litigation Against Lenders for Campground PL94Ch06