I wish.

Quote:

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The total amount we must have to put Vaquero on a sound financial footing is $5.4 million. $2.5 million of this overall amount will go to immediately pay off Vaquero's debt that has been incurred as a result of Mr. Miller's deception. The remaining $2.9 million will provide the financial resources we need to run Vaquero through the end of the fiscal year which ends in June. To derive the assessment amount, consistent with Vaquero's bylaws the $5.4 million was split between Vaquero golf and social members consistent with the allocation of annual dues. Social members will pay 50% of a golf member assessment. Each golf member will be required to pay an assessment of $14,304.64, and each social member will be required to pay an assessment of $7,152.32 along with applicable taxes.

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https://candysdirt.com/2020/02/28/vaquero-club-fires-cfo-assesses-members-to-cover-5-4-million-deficit/

Poor babies of high end exclusive clubs...

Looked at a house over there. Wife said, "look babe. There's a course just down the road." Told her id buy the house immediately if she let me take out a second mortgage to join Vaquero.

How did he keep $2.5 million in debt a secret?

I legitimately don't know how that's possible.

Create some bull**** financials like Madoff and it wouldn't be that difficult. I'm curious if they had an accounting firm audit them over the years, but even if they did, with such a tiny accounting shop (scammer CFO and 2 staff accountants who are probably just HS degree folks doing basic AR and AP) it wouldn't be that difficult to fake either. Just never report the debt and all you may have to do for an auditor is potentially disguise how you are drawing or servicing it. The risk that comes with one guy running the whole shop is high.

I can understand the debt if it's an equity club, but not the operating costs. Is the membership full?

My guess is the bank hasn't been the only one not getting paid lately. Probably has built a healthy backlog of overdue operating costs in AP too. He had to be siphoning dues to help keep the debt serviced enough to keep it from being uncovered, and he only came clean because things hit the breaking point. But that doesn't mean just with the bank. Probably have a backlog of vendors ready/threatening to cut then off

This is why you don't join an equity club.

If 7-10,000 is a lot of money to you then you wouldn't join the club in first place...its an annoyance for sure but it's worth what you get out there (or atleast it was)

HouAggie said:

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jja79 said:

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This is why you don't join an equity club.

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The list of why not to join a corporate owned club or one privately owned by an individual or a few individuals is significantly longer, in my opinion.

This seems like a case of hiring the wrong guy, not a poor ownership structure.

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No doubt. I'm on the board for our club which is owned by ClubCorp and our board meetings are basically a waste of time because the GM, Super and entertainment manager can't do a damn thing without corporate approval. So we've basically gotten to the point where we ask for small petty crap like "can we move the tees on 11 to the opposite tee box?" And that doesn't even get done. But it is relearively I expensive and we don't get hit with assessments.

What's the list?

The investigation should be interesting. I wonder if it will be embezzlement or incompetence.

Sorry. What's the story here? Sounds juicy.

Supposedly alot of members have been fed up lately with the Club. Wondering if there will be a trickling affect (especially since most of the members are members at other clubs as well)

Members can afford an assessment but can the club afford signficant amounts of members leaving ?

They have to pay dues until they are refunded on non-resident memberships and the resident memberships are tied to their property. Now if the amount owed is greater than the time value of the membership deposit or they could go down some legal route that may be a different situation on the non-residents. The residents would be crazy with the amount they have invested in the real estate to push this thing beyond the embezzlement or mismanagement.

Anyone heard any updates on this?

I've heard it was incompetence...

Fraud

Yesterday said:

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HouAggie said:

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jja79 said:

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This is why you don't join an equity club.

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The list of why not to join a corporate owned club or one privately owned by an individual or a few individuals is significantly longer, in my opinion.

This seems like a case of hiring the wrong guy, not a poor ownership structure.

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No doubt. I'm on the board for our club which is owned by ClubCorp and our board meetings are basically a waste of time because the GM, Super and entertainment manager can't do a damn thing without corporate approval. So we've basically gotten to the point where we ask for small petty crap like "can we move the tees on 11 to the opposite tee box?" And that doesn't even get done. But it is relearively I expensive and we don't get hit with assessments.

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It is a catch 22. We absolutely abhor Club Corp, now Invited (Woke Clubs). Their parent corporation is stripping all the profit out of the member clubs and they are suffering terribly. We are at a "Premier" level club but after 30 + years of membership with these people we are looking at equity clubs in the area………

I played a round with a long time Texas Ranger who was a member when all this came about. He paid about $260,000 and never even got a round in before he quit.

He has the coin for it but that still has to hurt.

What course?

the members at Lakeside got hit with $25k assessment twice in the last 3 yrs. it just goes with it, but if the assessment is because of fraud, i would say suck it and move to a different club

Pignorant said:

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How did he keep $2.5 million in debt a secret?

I legitimately don't know how that's possible.

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I did some consulting work at a hospital in Houston and CFO and CEO were later indited by the DOJ for $100M in medicare/medicaid fraud.....