Attorney General Eric Schneiderman

The operators of a luxury timeshare building in midtown Manhattan have agreed to pay $6.5 million for misleading customers. The owners and operators of the Manhattan Club reached a $6.5 million settlement with Attorney General Eric Schneiderman’s office over allegations that the company misled purchasers about their ability to reserve rooms and resell shares.

Under the terms of the settlement—the largest in the recent history of the Real Estate Finance Bureau—the operators of the Manhattan Club acknowledged that it “repeatedly misled shareowners about the club’s reservation process, their ability to sell back their shares, and the details of the club’s state-approved offering plan,” according to Schneiderman’s office.

In addition to the $6.5 million restitution, the owners and operators—T. Park Central; O. Park Central; Park Central Management; developer Ian Bruce Eichner; Leslie H. Eichner; Stuart P. Eichner; Scott L. Lager; Hospitality Advisors; New York Urban Ownership Management; and Manhattan Club Marketing Group—have been barred from the timeshare industry. The owner and operators will also have to relinquish management control, sell their stakes to a third-party purchaser and remove all sponsor-appointed current officers and directors from their positions as members of the Board of the Timeshare Association. The settlement was a result of an investigation that began in 2014 after Schneiderman’s office received complaints from share owners who said they were unable to make reservations. Meanwhile at the same time, the Manhattan Club was taking in reservations from the general public online.

The Manhattan Club did not return a request for comment.