Follows is an except from the article, but please take the time to read the full article as it sheds light on some of the inner workings and individuals responsible for this type of timeshare scam. You can read the full article at:
"....From an unmarked Fort Lauderdale storefront sandwiched between a men's bath house and a dry cleaner, a timeshare resale company raked in money — an estimated $5 million in less than a year.
Founded by two convicted felons who went by "Posh" and "Joey," Timeshare Mega Media and Marketing Group capitalized on cash-strapped people in Florida and beyond, playing on their hopes of unloading their costly vacation rentals, according to federal authorities. A regular chorus of "Congratulations! We have a buyer for your timeshare!" came out of the one-room operation as salesmen pressed clients to put down as much as $10,000 to "lock in a deal," a former employee said in a sworn statement.
"Needless to say, there are no buyers," wrote Federal Trade Commission attorneys in court filings against Timeshare Mega Media. "Consumers receive absolutely nothing for their money. This is naked fraud."
Legal proceedings involving the now-defunct business offer a rare look into the inner workings of a Florida timeshare resale company— a fraud-riddled industry that has become big business in the current economic downturn. The amount of timeshare resale complaints in Florida jumped from 800 in 2007 to 11,509 in 2010, according to the Florida Attorney General's Office.
Since 2009, the Attorney General's Office has reached consumer protection settlements with 16 timeshare resale companies totaling $7.3 million. Another 30 companies are currently under state investigation.
Authorities say many of the unscrupulous resale companies operate the same way: They claim to have a buyer for a prospective client's timeshare or the advertising capabilities to attract one. They demand an upfront fee, sometimes charging people's credit cards before they have even signed off on paperwork. Once the money comes in, nothing ever happens to the timeshares and clients' messages are often unreturned...."
This possible timeshare fraud was previously reported as a timeshare scam alert on Vacation-Times.org in April of 2011.