Marc Baron Marc C Baron Rallye Club Has left a few people hanging financially in Puerto Rico Carolina Puerto Rico

I just want to check if this is the same Marc Baron as the one listed in the Welch Aviation complaint. If it is can you clarify and post on that one as well about this topic if not can you clarify that it is not.

The comments found in this allegation are misleading – unfortunately a business was not successful and had to close – which occurred in a normal winding down process. No one was “left hanging”  all parties involved in the business were aware of the risk in starting a new company.   I suspect  the person who is alleging the loss of equity ($18,000) was the author of these statements was the person who had one of the vehicles in his possession the entire time and delivered that vehicle to the bank when the company ceased business.  THIS STATEMENT IS AN ACCURATE REFLECTION OF WHAT TRANSPIRED WITH LINKS TO THE GOVERNMENT OF PUERTO RICO AS FURTHER PROOF.

In 2011 I, along with 3 other partners launched a fractional ownership club for exotic cars in Puerto Rico.  The company was called Rallye Club Automotive Group, LLC.  The company was registered in Puerto Rico with the  Estado Libre Asociado de Puerto Rico (http://www.estado.pr.gov/).  The registration number is 307433 – the company is still active as of 30 Sept 2014 – here is a link https://prcorpfiling.f1hst.com/CorpInfo/CorporationInfo.aspx?c=307433-1531 .   The President  and Resident Agent of the Company was another one of the partners Ray Lugo.

Rallye Club was in negotiations to enter into a franchise relationship with Ecuri 25 ( based out of London - http://bookings.ecurie25.com/login.aspx)  the franchise relationship was never finalized.  

Rallye Club did purchase two vehicles – Cadillac CTS Coupes (see photos).  The cars were modified and were available for rent or member usage.  Photos of the vehicles are included in this rebuttal.  

Due to the fact that Puerto Rico has been in a continuing recession since 2005 with outstanding debt of $70 billion (see Washington Post article - http://www.washingtonpost.com/business/economy/puerto-rico-with-at-least-70-billion-in-debt-confronts-a-rising-economic-misery/2013/11/30/f40a22c6-5376-11e3-9fe0-fd2ca728e67c_story.html)  any company that is trying to do business in Puerto Rico is facing stiff headwind.

Thousand of professionals are leaving Puerto Rico -  (See CNN Report “ Why more Puerto Ricans are living in mainland U.S. than in Puerto Rico” http://www.cnn.com/2014/03/22/us/puerto-rico-migration-economy/ ) .  I made the decision that it was time in leave Puerto Rico, after living in Puerto Rico for 5 years and trying to operate business in Puerto Rico.  I left Puerto Rico after Rallye Club Automotive Group was closed.

It is true that I, along with the other partners in the company, lost money when Rallye Club Automotive Group was closed.  One of the vehicles was sold, at a steep discount,  to a private owner .  The other vehicle was returned to Banco Popular Leasing.  The person who actually returned the car to Banco Popular Leasing, I suspect was the author of these statements.   He returned the car because he had the car in his possession – it was stored in the garage of his personal home and he had all of the keys to the car.  He (the person who alleges the $18,000 loss of equity) inaccurately believed that Banco Popular Leasing would pay him a reward for returning a car that was in the process of being repossessed.

When a business is closed it is common knowledge that the equity is lost, and the secured creditors (in this case Banco Popular Leasing) repossess their assets.  Equity was lost by all partners to this transaction.  Furthermore certain partners (myself and one other partner  - who has since that time relocated  to Mexico City due to his wife’s promotion with a major international corporation) had personal guarantees to Banco Popular Leasing which we were forced to satisfy.  At the end of the day Rallye Club Automotive Group ended its business and the secured creditors were made whole.