This article is written as so many Owners have asked why they are not getting paid the income they have seen on their recent statements.
As the covering letter to the recent Statements explained, the resorts generally had a mixed year with a solid first winter after the pandemic and a poor summer, but with high expectations for winter 2023 and beyond. Income has been used to pay Owner taxes and also maintenance fees that were not paid in the pandemic shutdown. However for some fractional Owners there was still a surplus which could be used to pay an income to owners.
As we explained, soon this income will start to flow, but we must warn you that TRG is still being blocked in getting. payments to some Owners..
For those fraction Owners who are part of a UK-based LBG Company, you have had David Hannah as a Director of those Companies since 2018, and together with his brother Nick Hannah who controls Fractional Property Solutions Limited, they have been in control of these fractional companies.
Take a look at the file attached to this article.
In July 2021, and again in March 2022 Mr. Hannah wrote on behalf of the Fractional Companies requiring that any rental income earned by the LBG Companies should be sent to a Company called FPS Corporate Services which is owned by him and his wife, and which has (until last month) been used to collect fees on behalf of Nick Hannah's company - Fractional Property Solutions Limited. You will note from the letter that if TRG were to send money directly to Owners, then Mr. Hannah is reserving the right to ask for it again and would not recognise it as payment of money owed by TRG. You will note he threes action against TRG if we do not comply.
To be completely fair to Mr. Hannah, it is not clear exactly what he would do with the money if we sent it to him. It maybe that he would send it on to Owners, but we believe it is likely that he would send a significant portion to his brother's company for the disputed 'fractional fees'. Please note that it is these same fees that FPSL charge directly to Members on a regular basis.
Despite being asked by Directors who are independent of the Hannah brothers to remove this requirement, and despite TRG agreeing a draft, Mr. Hannah has refused to withdraw his demand. This was one of the reasons the the Members of a number of Fractional Companies have voted to take legal action against Mr. Hannah and his brother.
About 20 Fractional Companies have now removed David and Nick Hannah and where those properties have earned surplus income, it is being paid. If you would like to do the same, please request to join this group by e-mailing your request to admin@sua-caa.net.