Office of the Attorney General
Attorney General Greg Stumbo Announces Relief for Green Farm Property Owners
Attorney General Greg Stumbo today announces relief for property owners in Grayson and Breckinridge counties. By Court Order, entered in Grayson Circuit Court, the developer of the Green Farm Resort in Grayson and Breckinridge counties must deposit more than $842,000 into a dedicated escrow account and complete roads, electrical service and water lines for residential building lots in the development.
“My Office of Consumer Protection sued Green Farm to protect the rights of victims,” Attorney General Stumbo said. “Many people invested their retirement savings only to be left with expensive but useless building lots.”
The Order, entered by the Grayson Circuit Court, requires the completion of this “Phase I” development by June 30, 2007. An earlier agreed order also remains in effect, which covers additional obligations of the defendants such as recreational amenities and lots in Phase II of the development.
The Defendants had previously agreed to complete this infrastructure by December 31, 2006 but sought an extension from the Grayson Circuit Court, which was opposed by the Attorney General’s Office. The Order also provides for a $500 per day penalty, including weekends and holidays, for every day past June 30, 2007 that the project is not completed.
“This Order is an important step for the successful completion of this project.” Stumbo said. “As this lawsuit progresses, we will continue to insist that the Defendants fully deliver to Kentucky consumers the resort community that was promised and for which the consumers have paid.”
The lawsuit was filed in February 2005 by the Attorney General’s Office of Consumer Protection. The Complaint alleges that the defendants sold residential building lots in Green Farm Resort through the use of false, misleading or deceptive practices. The defendants 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.
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.