The Ohio bankruptcy court has finally agreed with courts in
California, Michigan, and others that Novelli is abusing
the bankruptcy system. The Ohio bankruptcy, filed more than
2 years ago has finally been converted to a Chapter 7 liquidation.
The court found that:
Debtor co-mingled Debtor's bank accounts with other
non-bankrupt related entities;
Debtor has entered into transactions that required
Court approval pursuant to para 363(b) of the Bankruptcy
Code without obtaining such authorization; and
Debtor has used its bank account, which is protected
from attachment and levy by 5 362 of the Code, for
the benefit of non-bankrupt related entities.
Subject: Bankruptcy of:
Olando Resort (Clermont),
All Seasons Resorts (ASR)
November 28, 2004
The subject companies have abused many of their members
and played the bankruptcy courts like a fiddle for many
years. That chapter of their activities may be coming
to an end. Several events appear to be combining to end
- Bankruptcies have been dismissed or thrown out in
California and Michigan that we know of.
There may have been others.
- Apollo, alleged parent of some of these companies
filed bankruptcy in Youngstown, OH, alleging that
their only asset was the Orlando Resort real estate
in Clermont, Florida. The mortgage holder foreclosed
with the blessing of the bankruptcy court and is
in the process of selling that campground.
- Apollo's other creditor, the US Government, is pursuing
lawsuits for back taxes against all of the subject
companies alleging that they are ALL alter-egos of
just one entity controlled by Mr. Raymond Novelli.
- A bankruptcy motion has been made to convert the
bankruptcy in Youngstown to a 'Chapter 7' liquidation.
It appears that any assets of the 'real' debtor,
Mr. Novelli and his cronies, might be vulnerable
to consolidation, seizure, and liquidation by
This time — they are not marching their bevy of
heavy-handed, in-house attorneys into war with some poor
little old lady who cannot afford to fight back or small
town attorney who does note know how or cannot afford
to go after the assets of this abusive organization.
This time they seem to have picked a fight with someone
who is known for tenacity and thorough prosecution of
their cause: the US Government.
There has never been any question that the Novelli companies
routinely move equipment, people and money from company
to company in the course of everyday business. This includes
their most lucrative asset, the campground memberships
and the millions of dollars they produce annually.
So what does that mean to us?
It may mean the end of the extortionist practice of demanding
money from people for the rest of their lives, people
who want nothing to do with them.
It may mean the eventual end of deceiving and downright
fraudulent sales and collection practices by some of
It may also mean the campgrounds that survive might eventually
be run by a more reputable organization.
Special Note for Ponderosa Members:
The mortgage holder in the Ponderosa bankruptcy
and the county taxing authority appear to
be engaging in a plan that will take advantage
of the fact that you do NOT have an attorney
to represent your interests in the Ponderosa
- How will you be notified of court actions
that could strip you of ALL rights to
your UDI, etc.
- What is the value of your UDI?
- Do you have any ownership rights
in the campground?
- What can you do, if anything,
to protect your Investment in
If the answers to these questions are important
to you - you must consult an attorney, quickly,
not just the bankruptcy trustee or the attorney
for the campground or mortgage holder, but
YOUR OWN attorney. Your attorney should be
experienced in both bankruptcy and real estate
You may want to get together with other people
in your campground and find an attorney to
represent you now, if it snot too