Evening star., 1963-02-07

ny bIlt legal llIIH VI bTOOkIldTJ,
venture groups, all controlled
by the defendants, through
which loan agreements al
legedly we're made with Indian
Lake Estates.
D. c. Court Reversed
When the present manage
ment Of Indian Lake Estates
brought suit in District Court
here in 1861, Judge Holtzoff
ruled in a summary Judgment
that the suit could not be MAIN
tained because of a final set
tlement between Mr.. Alderman
and the Lichtman group prior
to sale of Indian Lake Estates
to its present owner.
The District Court of Ap-
peals. however, reversed this
decision last December 20 and
remanded the case for further
proceedings.
1t ruled that If the original
contracts and engagements be-
tween Mr.. Ackerman and the
Lichtman group were illegal
and void, "the claims of the
complaint presented complex
issues Of fact and law, as well
as some which are mixed ques-
tions Of law and fact, which
were not susceptible of dispo-
sition by summary judgment. "
After filing of the amended
complaint yesterday, David G.
Bress, attorney for the defend
ants, told The Star he plans to
ask the District Court for an
other summary judgment in
favor of the defendants on
grounds of eStoppel.
A Florida court recently
ruled in favor of the defend
ants on the same grounds, he
said. An appeal in that case is
to be heard in March.
The charges made in this
suit represent a "buckshot
blast" against responsible
Washington businessmen and
have not been proved, he COM
mented.
5000 Acres Acquired
Under Mr.. Ackerman's man
agement, Indian Lake Estates
acquired around $500 acres in
Polk County, Florida, in Octo-
ber, 1855, and a month later it
signed its first 100000 loan
agreement with the Lake Wales
Group, one of the Lichtman
groups, the amended complaint
of Indian Lake Estates de-
clared.
According to the complaint,
the agreement provided that
$50, 900 of the loan was to be
evidenced by a promissory note
of Indian Lake Estates payable
to the Lake Wales Group with
in two years. The remaining
S50,000 was secured by 25-year
bonds calling for total pay
ments of at least s500,000, the
complaint alleged.
Indian Lake Estates was re-
quired to deposit in a sinking
fund 10 per cent Of its gross
receipts and no time limitation
was provided, the amended
complaint said. Proceeds we're
to be used first to pay up the
note and then to redeem the
bonds, it added.
The complaint also listed a
series of transactions by which
IA Lake Groups. numbering
first through IL, inclusive, and
IA and Is, took over land pur-
chase agreements with lot
owners in exchange for loans
to Indian Lake Estates amount
ing to IS per cent or 40 per
cent less than the face value
of the purchase agreements.
Under these transactions,
$l,859,796 was lent by these
groups to Indian Lake Estates
in return for lot sale contracts
calling for payment Of $3.226.-
028. the complaint alleged.
Lot Contracts Assigned
An agreement with another
entity, the Cypress Group
called for an assignment o.
around $4,000 of land pur.
chase contracts in return for 9
$l50,000 loan. the complaint
said.
In return for the $l50.00(
loan, Indian Lake Estates alSC
was required to deposit 5 pei
cent of its gross receipts from
sales Of lots and land. and ar
additional percentage scaled Il
gross annual volume. II said.
In October, 1858. Indian LAX
signed an agreement with an
other Joint venture grouI
known as the Barmit GrouI
and Net Limited. Inc, the COM
plant declared.
In exchange for a S500.00I
loan by the Barmit Group, In
dian Lake Estates agreed h
issue S500.000 OF interest bear
ing bonds secured by a rea
estate mortgage held by Ne
Limited as trustee for the Bar
nit Group. II continued.
The term OF each bond wa
five years from date OF issuance
and each bore interest at tn
rate Of Q per cent. payabl
monthly on the unpaid balance
II added. II bonds we're no
redeemed. each bond was to b,
convertible into 10 shares o
common stock OF Indian LAX
Estates and S750,000 was Tn,
redemption price OF the bonds
the complaint declared.
A series OF special fees ant