Yucatan Resorts, Jajesty Travel, Resort Holdings International, Avalon Resorts, Universal Lease, Wor Took my $150,000 in an apparent Ponzzi Scheme in Mexico Ripoff South Bend Indiana & Mexico

With all the news in the media over Madoff and others, it is clear the victims need leadership and a unified voice to make sure this abusive process does not abuse their rights. Recently in one case, the Fifth Court of Appeals told the SEC-Receiver he could not claw back money taken by some of the Stanford victims before the scam was closed down because it was the victims own money. The victims of Stanfords scam could not have done this if they had not come together to challenge the receivers actions. After almost four years Kelly is still being held and more than 50% of the money recovered so far has been used to pay the Special Master and his team. The IP Fund 1 members as an untied voice have caused the court to pressure the Special Master and his team to reduce their fees by over $1.4 million in their first six billings. From the beginning the Fund has been steadfast that the court did not have jurisdiction over Kelly's assets in other countries. The Special Master has now confirmed our claim that the US court does not have jurisdiction over foreign assets. What does this mean for you! The US statute used in Kellys case does not protect the Leaseholders, it only give the court the legal right to hold Kelly. The Special Master also admits there is no judgment entered against Kelly and no argument can be made that the real property assets are being sold in satisfaction of a judgment. What does this mean to you? You have a right to pursue Kelly in the US and Mexico using civil actions. T he Special Master informed the court that Mexican Law is controlling over the Trust, which holds the assets. This means that, under Mexican law, you have more rights as a leaseholder, unless you give up your leaseholder position! The Special Master also revealed Kelly may enter into an agreement for restitution; however, this is the same type of deal he made with other states. Paying only the money you paid less any money you received. What does this mean to you? If you received a monthly payment the plan may deduct that amount from any recovery and no rental income or interest would be paid . This would be about 30 cents on the dollar. The Special Master states, in court documents, that everything is being done for the benefit of the victims, the leaseholders, and the process has to be open and transparent.   However, at every turn, the Special Master covers up information about the assets and his plan ! It is also clear that the Special Master's appointment to the Mexican trust gave him lots of power and the court approved his proposed plan, which has been sealed.   What does this mean for you! As a unified voice, the leaseholders need to push for complete transparency. We believe that in the Special Masters plan, all money paid by Kelly to the leaseholders may be subject to a reduction of the recovery.   The Funds suit claims that Kelly owes the leaseholders the money they paid, the rental income and interest on the rental income not paid. The Funds claim is civil and the Special Masters is a criminal action and as long as the leaseholders hold on to their rights they have a legal voice in Mexico. The Court authorized the Special Master to utilize the sales procedures described in document #236 to conduct sales of real property from the inventory in the ordinary course of business and sales of discreet parcels of real property. First discreet parcels are lots or land that is not sold on a daily basis. The Special Master told the Court it would not be called upon to approve the sale or the buyer. The proposed sales process will leave it to the Special Master and his consultants. The sale of real property from inventory in the ordinary course of business is the Port of Cancun. The Special Master asked, and the court agreed, to allow Groupo Kelly to continue to sell the project. We believe, and have support for our belief, that all the money will be used to complete the projects and to pay the Special Master and his professionals. Only after the projects are complete will distributions be made to Kellys victims . In short, the longer this goes on the more cash will be taken from the cash cow . The Special Master also asked the Court to allow payment from the trust to pay Kellys managers. Clearly, Kelly is still in control! Without the Fund, the leaseholders would be clueless as to the impact of the Special Master's pending assault which is the most dangerous to date. Court documents show the Special Master will attempt to convince the leaseholders to give up their rights that are protected under Mexican laws claiming that without leases the hotels can be sold for more to the benefit of the victims . However, without their leases, the leaseholders will be at the mercy of the Special Master. This is what the Special Master told the court. Each victim will then have to either approve or ask for a recalculation of the Total restitution Amount. In addition, the Victim Claim Form will ask the victims to terminate their leases and release their claims on the properties themselves to allow the properties to be sold vacated, free and clear of all liens and/or abilities, to receive the maximum value possible. Any claims a victim might have against Michael E. Kelly in his personal capacity, however, will not be affected by this release.   However, Kelly has no assets and the Special Masters offer is a slap in the face, he is offering nothing in return for your rights! How about making the leaseholders shareholders of the Mexican Trust in exchange for their leases with complete transparency and making Kellys family pay the Special Masters fees from their share of the Trust! For more information on how you can be a part of this united voice go to www.ipfund1.com

As I reported previously....I was ripped off by Mike Kelly --Resort Holdings Intl. and other names he used (Majesty etc.).....I have video tape====of him doing a presentation and making the claims which he is now in trouble for. I will share these tapes with proper authorities or agencies wanting to prosecute him...and get my money back ($150,000.00) which I invested. I can be reached at Richard (((ROR REDACTED FOR SECURITY PURPOSES))) Thank you.

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IP FUND 1
January 10, 2007

Dear Lease Holder,

This is our first update to all our members by mail and I want to wish you all a happy new year.

The Fund placed the IRA Custodians and the State of Wisconsin Division of Securities on notice of Kelly's fraud and also placed notices on the Internet. Here is a small excerpt from one letter to a Custodian 3/06: RHI and its principles are involved in a $450 million scheme. There are ongoing FBI investigations surrounding RHI's and Kelly's fraudulent enterprise. Mike Kelly (Kelly), RHI and their co-conspirators are attempting to use IRA Custodians to further their fraudulent enterprise by asking the Custodians to forward an offer to buy back the leases for 75% of their purchase price without reimbursing the owners for the past due rental income. IP Fund 1 Inc. (the Fund) and its members are placing the IRA Custodians on notice that there is an ongoing effort by the Fund to file a formal Racketeer Influenced and Corrupt Organizations.

The Fund has been very active, we have held our cards close to our chest and it has paid off. The FBI arrested Kelly on December 22, 2006 in Florida. This is a good thing and will help the Fund's RICO complaint. Here is what the FBI is claiming:

Associated Press
December 28, 2006, 7:04 AM CST
CHICAGO -- FBI agents have arrested a man on charges that he used time-share leases in Mexico to bilk real estate investors, including several in Illinois, out of $400 million. Michael E. Kelly, 57, allegedly sold "universal leases" on time-share properties and promised buyers an 11 percent returns on their investments, according to a criminal complaint released Wednesday. Kelly, of Cancun, was arrested Friday in Jacksonville, Fla. He is in custody in Florida and will be brought to Chicago to face federal mail fraud charges, officials said. It is not immediately clear who Kelly's lawyer is. Authorities allege that he told investors that a third-party company would rent their time-shares. He also allegedly guaranteed high returns even if the properties weren't rented. But Kelly owned the third-party company and paid out the returns to investors himself, authorities allege. Eventually he stopped making payments and instead spent investors' money on a lavish lifestyle that included a private plane and a large yacht, officials said. He allegedly netted $400 million from the late '90s to 2004. Jennifer French, a financial institutions fraud special agent for the FBI, said investors didn't see the red flags in the deal until it was too late. "Many of these folks eventually said it was just too good to be true, but the victims were diverse," French said. "Some of these people were sophisticated investors."

I am sure more arrests are to come.

The Fund's attorneys are working with the FBI. The FBI has requested our members complete the enclosed questionnaire and return it to us before the 18th by fax or mail. We sent the news of Kelly's arrest to the Mexican newspapers to turn up the heat on Kelly at home and are working with them to expose all of Kelly's fraud there also.

The Fund's investigation uncovered 17 conspirators who may be named in our complaint or turned over to FBI and we will work with the FBI to get a handle on Kelly's and his conspirators ill-gotten gains and assets. We can now serve Kelly with our RICO complaint in jail; this should force a Receivership showdown. We will ask the court to allow the leaseholders to take over all the companies that received leaseholder money from Kelly or were started with leaseholder money, however, the government will not go away quietly. "The most terrifying words in the English language are: I'm from the government and I'm here to help." - Ronald Reagan. The agency in charge will want the court to allow them their own receivership claiming it is to protect the investors, however, the Receivership process can be a wolf in sheep's clothing.

It will be a dogfight to keep the government out as a receiver now that Kelly has been charged with fraud. The law is on the side of the investors, however, no one is ever on the ready to derail the appointment. This is why the government always appoints its own receiver who will charge millions in fees to "investigate wrongdoing" and the victim's recovery is always secondary.

There will also be attorneys surfacing, wanting to represent you for a fee of 30% - 50% of your recovery. Do not surrender your money. As members of the Fund, your claim will be pursued and the Fund will pay for the attorneys from the membership fees, no attorney's fee will be taken from the recovery.

It is more important than ever to have the leaseholders come together to take a stand. We propose to form a new company made up of leaseholders. The board of directors to head up this new company will also be leaseholders who will not take a paycheck and will act in the best interest of the leaseholders. This will cut out millions of dollars of expenses for a FTC or SEC Receivership. If you would like to be considered as a board member please fax us your resume to: 210.828.0096 or 7088.

For those leaseholders and brokers sitting on the fence, there is no time to take a wait and see attitude! It is time for the leaseholders to come together, When spider webs unite, they can tie up a lion!

Why join the IP Fund 1? Your membership is the best way to take action to recover your money without the expense of an FTC or SEC Receivership In most cases the Receiver and his attorneys receive most, if not all, of the money in fees. Receiverships are well known for taking all the assets and leaving the investors high and dry. I am guardedly optimistic the Lease Holders can recover their money without this type of receivership and since when does a victim have to pay for their own investigation?

For more infromation please contact (((REDACTED)))and include your full name and contact information.

Very truly yours,
Ernest ****

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