AG Obtains Preliminary Injunction Against Owners of Peter’s Pond Community

AGO/September 08, 2011

BOSTON – AG Martha Coakley’s Office obtained an order prohibiting the owners of a Sandwich based manufactured housing community from continuing intimidating sales tactics to charge homeowners excessive fees for a questionable membership club in order to stay in their homes. Suffolk Superior Court Judge Paul E. Troy found the Commonwealth’s claims that the defendants violated the Consumer Protection Act held merit and therefore granted the preliminary injunction.

Last month, AG Coakley filed an enforcement action against Morgan RV Resorts, LLC (“Morgan”) and its sales team for violating the Massachusetts Manufactured Housing Act and the Consumer Protection Act by using intimidating sales tactics to force manufactured homeowners at Peters Pond in Sandwich to pay thousands of dollars in additional fees to remain in the community and avoid losing their homes.  The AG’s complaint alleges that Morgan sales people threatened homeowners that if they did not join a new membership program and pay up to $16,000 in membership fees their manufactured homes would be removed from their sites.  According to the complaint, nearly one hundred homeowners have paid to join the club out of fear that they would lose their homes.

The preliminary injunction issued by the court prohibits Morgan and its sales team from soliciting or collecting membership fees from homeowners for the alleged membership club, and from destroying any documents or information. The order also requires Morgan to place all collected membership fees in an escrow account and on a monthly basis provide the Attorney General’s Office with a record of fees collected and any inquiries concerning Peters Pond membership programs.

The Attorney General’s lawsuit seeks the recovery of monies that Morgan improperly collected for the club memberships, as well as penalties for violations of the Manufactured Housing Act and the Consumer Protection Act.  The lawsuit would also require that Morgan obtain proper licensure and cease all unfair and deceptive conduct. 

Assistant Attorney General Jonathan Engel of Attorney General Coakley’s Consumer Protection Division is handling this matter, with assistance from Assistant Attorney General Emily Armstrong and paralegal James Maloney.

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