According to the criminal information filed with the court, the defendants engaged in a scheme to defraud timeshare owners throughout the United States and Canada. From July 2009 to February 2010, telemarketers contacted more than 2,000 victims, and collected more than $3.3 million for timeshare marketing and sales services, which were never provided. The telemarketers, operating under the name International Resort Solutions LLC, solicited clients through at least four separate boiler rooms, each of which was located in Palm Beach County.
Franzenburg allegedly created International Resort Solutions LLC and arranged to have individuals establish boiler room telemarketing centers in Palm Beach County, through which they could solicit customers who were willing to pay advanced fees for purported timeshare marketing and sales services. The boiler room owners, including Grizzanti, used managers to operate the boiler rooms. The managers, including Foote, were, in turn, responsible for the day-to-day operations of the boiler rooms, including oversight of all sales and supervision of the telemarketers.
According to the information, the boiler room managers directed the telemarketers to call timeshare owners throughout the United States and Canada to induce them to pay up-front fees for purported timeshare marketing and sales services by making false and misleading representations about the company's services. Among the false claims was that International Resort Solutions had buyers for their timeshares, that the company had closings scheduled for their timeshares, and that they would actively market their timeshares to potential buyers.
If convicted, each defendant faces a maximum term of imprisonment of up to 20 years, to be followed by up to three years of supervised release. This is a very interesting case as prosecutors are targeting all levels of the organization: the LLC owner, the call center owners, and the direct supervisors of the boiler room call center.
As always, it is important to understand that the Information above is only an accusation, and a defendant is presumed innocent unless and until proven guilty. However, this type of aggressive prosecution of timeshare scam artists will hopefully encourage other owners and employees of timeshare scams to close their operation before they too face punishment including long terms of imprisonment!
More information on this case can be found at these links: