Office of the Attorney General
Attorney General Conway Files Suit Against Developers of the Falls Resort and Golf Club aka Green Farm Resort
Attorney General Jack Conway today filed a consumer protection lawsuit against the developers of Green Farm Resort in Grayson County, Ky. The complaint alleges that the defendants, 3D Resort Communities LLC and 3D Resorts-Bluegrass LLC, violated Kentucky’s Recreational and Retirement Use Land Sales Act and Consumer Protection Act. The complaint also alleges that the developers breached a 2008 agreement with the Office of the Attorney General.
The lawsuit, filed today in Grayson Circuit Court, accuses the defendants of violating the Kentucky Recreation and Retirement Use Land Sales Act and engaging in unfair, false, misleading or deceptive acts in the marketing and selling of lots at Green Farm Resort in Falls of Rough, Ky. The defendants are currently under a suspension notice issued by the U.S. Department of Housing and Urban Development (HUD), ordering them to cease marketing and sales activity. The Office of the Attorney General has also issued a cease and desist notice to the defendants to stop marketing sales until they comply with the Kentucky law that requires the developers to be registered, bonded, and approved by the Attorney General prior to any marketing or sales.
“Businesses that engage in deceptive or unfair marketing practices are not only misleading consumers, they are in violation of the law,” General Conway said. “My office is committed to enforcing Kentucky’s consumer protection laws and protecting consumers from unfair business practices.”
Green Farm Resort has been under development since 2001. A lawsuit filed by the Attorney General’s Office in 2005 against the original developer, GF Resort LP and Texas developer Samuel D. Ware, and others, resulted in approximately $2.5 million being placed in escrow for the purpose of infrastructure such as roads, waterlines, and electric service.
The 2005 litigation was resolved in 2008 upon the sale of the development to a new developer. The new developers, 3D Resort Communities LLC and 3D Resorts-Bluegrass LLC, entered into an agreement with the Office of the Attorney General obligating them to complete additional projects. The agreement also required developers to escrow an additional $1.2 million for the projects and to comply with all local, state and federal law in future sales.
Consumers, who purchased a lot at Green Farm Resorts from January 1, 2009 to the present day, are welcome to contact the Office of the Attorney General’s Consumer Protection Division at 502-696-5389 with any concerns or questions they may have.
Link to Complaint and Exhibit documents (9.2mb PDF)