Pennsylvania Attorney General Michelle Henry has initiated legal action against Eagle Rock Resort, located near Hazleton, accusing the resort of employing deceptive sales tactics. The lawsuit aims to halt the resort’s sales of undeveloped lots and secure compensation for individuals who have purchased properties at inflated prices.
According to the lawsuit, Eagle Rock Resort allegedly lures buyers with the promise of undeveloped lots at prices significantly below market value. However, the Attorney General’s office contends that these lots, often marketed between $30,000 and $100,000, possess a considerably lower resale value, ranging from $5,000 to $20,000. This discrepancy forms the core of the deceptive practice allegations against Eagle Rock Resort.
Eagle Rock Resort, situated on a sprawling 5,000-acre property across Hazle and East Union townships, continues to profit even after the initial sale. The resort allegedly provides financing for mortgages, generating substantial income from what the lawsuit describes as financially “devastated” consumers. The legal action also names United Equitable Mortgage Corp. of Texas as a defendant, citing its role in extending mortgages for Eagle Rock properties and its alleged material support from Eagle Rock Resort Co. LLC. Eagle Rock Real Estate Co. and Double Diamond – Delaware Inc. are also listed as defendants in the lawsuit.
The lawsuit includes a poignant account from a consumer who expressed the frustration and financial burden associated with owning a lot at Eagle Rock Resort. “We have been trying to sell this lot for about eight years now,” the consumer stated. “Unfortunately, the value just keeps declining while the fees just keep adding up, from property taxes, community association fees, and school taxes… We are so upset, frustrated and depressed that Eagle Rock deceived us and continues to sell lots without regard to how it will affect the value of lots already sold.” This testimony underscores the real-world impact of the alleged deceptive practices at Eagle Rock Resort.
Further অভিযোগ in the lawsuit detail how Eagle Rock Resort allegedly entices prospective buyers with a purported $15,000 membership discount. However, the Attorney General argues that this discount is illusory, stating, “Upon information and belief, Eagle Rock has never charged, and no consumer has ever paid, the fake initial offer price.” This allegation suggests a pattern of fabricated pricing to create a false sense of value and urgency for potential buyers at Eagle Rock Resort.
Filed in the U.S. District Court for the Middle District of Pennsylvania, the five-count lawsuit alleges violations of both federal consumer financial law and state law. The legal action seeks a court order to prevent Eagle Rock Resort from engaging in future violations. Furthermore, the lawsuit demands restitution for affected consumers, civil penalties of $1,000 per violation (or $3,000 for victims aged 60 or older), and coverage for the costs associated with the investigation and legal proceedings.
Attorney General Henry’s office has urged individuals who believe they may have been victimized by Eagle Rock Resort or its associated entities to file a complaint with the Bureau of Consumer Protection. Complaints can be submitted online, via phone at 1-800-441-2555, or by email to [email protected]. This call to action emphasizes the importance of consumer awareness and reporting in addressing alleged deceptive practices like those described in the lawsuit against Eagle Rock Resort.
