Committee for the Elimination of Dishonesty on the

Board of Directors of Sapphire Bay Condominiums West

January 4, 2011

Note:

Progress Report

Dear Condo Owner:

This letter is a progress report on the investigations of major

irregularities, dishonest activities, embezzlement, insurance fraud,

Condo Association By-laws violations, building code violations and

other irregularities by current and past Board of Directors members

and Condo managers for Sapphire Bay Condominiums West.

We understand that there are presently at least five law enforcement

agencies in the USVI and on the mainland looking into these

irregularities.

The charges being investigated include:

• Criminal misrepresentation of an elected official

• Insurance Fraud (Criminal)

• Building Code Violations

• Fraud (Criminal)

• Embezzlement (Criminal)

• Coastal Zone Management Code Violations (Criminal and Civil)

The Criminal and Civil investigations center on all the SBCW

directors for the last ten years, the two Condo Managers, Condo

Association attorneys and accountants, and Realtor Jeyan Stout.

Of particular concern in the Civil and Criminal investigations are

present and past officers and Directors:

• Steven Kerschner

• Stephen Sokolow

• George (Bud) Wood

Committee for the Elimination of Dishonesty on the

Board of Directors of Sapphire Bay Condominiums West