SAN JUAN Green Isle Partners has reportedly filed suit against Marriott International, alleging that contracts were breached, records falsified and kickback schemes used to defraud ownership during the course of day-to-day operations of the Ritz-Carlton San Juan Hotel, Spa & Casino here.
Reportedly raising charges that smack of Woodley Road-case overtones that of the mandatory purchasing of goods and services from preferred vendors offering rebates to the property s operator the suit, filed in U.S. District Court in Delaware, seeks $420 million in damages from Bethesda, MD-based Marriott International.
In addition to the aforementioned mandated compliance with vendor agreements, sources maintain that Green Isle Partners contends the operator also made fake entries on the hotel s books, and induced the acceptance of a $22 million loan from a Marriott unit.
As noted, Green Isle said it invested $140 million in the hotel since 1995, partly financed by $85.2 million in bonds guaranteed by the Puerto Rico Tourism Development Fund bonds that are said to now be in default.
Marriott spokespersons declined comment on the suit or any of the charges levied by Green Isle. (4/2/01)