Jul. 31--Epic Resorts LLC, which owns the Desert Paradise Resort in Las Vegas, has left more than 100 employees unpaid locally and nearly 3,000 nationally, a former sales representative said Monday. 

The company, headquartered in King of Prussia, Pa., announced last week it would be closing its resorts after being forced into Chapter 7 bankruptcy by bondholders. 

In addition to the Las Vegas property at 5165 S. Decatur Blvd., Epic operated time share resorts in Daytona Beach, Fla.; Hilton Head, S.C.; Lake Havasu, Ariz.; Palm Springs, Calif.; and Scottsdale, Ariz. 

On July 20, the majority of the 2,500 to 3,000 Epic employees and Epic's vendors were notified that payday would not be forthcoming. 

"Nobody likes to be cheated out of money, but the way they went about it ... they lied to everybody, they were deceitful," said the Las Vegas employee, who requested anonymity. 

"July 20th was payday and we all showed up at work and no explanation was given (for not being paid). They said it was part of the reorganization, and to come back on Tuesday, which was July 24th. We came back Tuesday and there were still no checks and everyone was sent away." 

A call to the Las Vegas sales office for comment was not returned. 

Epic began sending faxes to its vendors and memos to its employees on July 20 stating that the company would hopefully have the problem resolved soon and would keep them notified as to the progress, according to a report in The Timeshare Beat. The company apologized for any inconveniences. 

"However, Epic failed to mention to vendors or employees at that time that the company had already, in fact, been forced into Chapter 7 bankruptcy," the report said. "From the faxes that were sent out to vendors (after the filing of Chapter 7) the appearance and information relating to Epic's situation implied that all could be resolved soon." 

Epic announced in late June that it was trying to get financing from Credit Suisse First Boston to sustain normal sales and marketing operations. If unsuccessful, Epic "intends to actively explore alternatives." 

The company also said it may not be in compliance with certain covenants relating to $130 million in 13 percent senior secured notes issued by Epic and its subsidiary, Epic Capital Corp. Specifically, Epic did not make an interest payment due June 15. 

Additionally, the monies to make such payment were not held, as required by the terms of the notes, in a separate escrow account. 

"While Epic is working toward stabilizing its funding arrangements in order to make the payment, there is no assurance that it will be successful," the company said in a June 28 statement. 

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