Scam Alerts!
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An article by consumer watchdog Melanie Payne published on News-Press.com under the title "Time Share Turns Into Bamboozle" describes a possible timeshare con where unsuspecting consumers who want to be rid of their timeshares are sold a promise of rci points in "exchange" for their current timeshare usage.. What the consumers don't realize is that they are simply being sold another timeshare- specifically a small rci points package at the Club Trinidad timeshare in Palm Springs.
Consumers should never buy or sell any type of timeshare or vacation travel club on impulse. Always take the time to research the industry prior to signing any contract or submitting any type of payment. Often, a few minutes research can help to avoid a lifetime of frustration! RCI points owners have the right to a program called "Points for Deposit" wherein they have the ability to deposit non RCI points resort weeks into their RCI points account. This program does not eliminate those ownerships, it simply provides another way of exchange. If you believe that you were the victim of any type of timeshare fraud, or any type of unlawful marketing and sales practice involving timeshares, please take the time to report the crime to your states Attorney General as well as the Attorney General of the state where the property is located. A recent article is warning consumers about a complex timeshare scam possibly being perpetrated by Hector Reyes operating under the business names Innovative Resorts International as well as Consumer Protection Agency.
The alleged scam began with phone solicitations made by Innovative Resorts International to timeshare owners promising them that a buyer had been found for their unwanted timeshare resort. The timeshare owners were told that an upfront fee must be paid for document preparation, title search, and processing fees. The owners were promised a full refund if the sale did not complete within 120 days. Once the fee was paid, no sale ever occurred and no refunds were given. The same group of scam artists would then allegedly call the same victims under the guise of another business calling itself the Consumer Protection Agency. They would then promise victims that this new company would assist them in recovering their money taken in the first scam- but again called for an upfront fee for alleged "legal fees". Consumer Protection Agency would then falsify consumer complaints in the names of its clients to the Florida Department of Agriculture and Consumer Services as a way or trying to validate the fee charged to consumers. Individuals reportedly named in the court action are Hector Reyes, John Egan, Vera Egan, and Karin Fowler. If you believe that you have been the victim of consumer fraud perpetrated by these companies or individuals, please take the time to report the crime to the Florida Attorney General by clicking HERE. In an earlier published scam alert, we notified consumers of a South Florida timeshare scam operating under the name Real Time Marketing that was being pursued by the US Dept of Justice who had named Darnell Disroe, Michael Lentine, and Michael Starace as defendants in the indictment.
Now, it is being reported that the sentencing phase has been completed. The article also goes on to state that all three men and the majority of their employees worked similar scams prior to this one. Darnell Disroe was sentenced in federal court to 121 months in prison and ordered to pay restitution of $1.1 million. Michael Starace was sentenced to 18 months in prison for mail fraud and was ordered to pay $23,723 restitution. Michael Lentine was sentenced to 51 months for conspiracy and mail fraud and was ordered to pay restitution of $249,432. These severe penalties should serve notice that timeshare fraud is a serious crime, and is punished accordingly. Anyone working for a timeshare scam should reconsider, and anyone operating a timeshare scam needs to understand that they may find themselves locked in prison for years! Consumers who have been the victim of timeshare related fraud or other consumer scams should always take the time to report the crime. The wheels of justice may move slowly at times, but justice will eventually be served! Police Raid Jams Management and Vacation Property Network LLC for Possible Timeshare Resale Fraud5/5/2011
Media sources in Orlando are reporting that offices from the Orlando Police Department raided nine timeshare businesses on Wednesday, including one using the name Jams Management. The address given on the WFTV video matches that listed as the address for Vacation Property Network LLC. Police took seventeen people into custody and seized two vehicles. The people arrested may face charges of money laundering and racketeering charges.
Links to the stories are http://www.wesh.com/news/27783878/detail.html and http://www.wftv.com/countybycounty/27782059/detail.html. Another Scam Warning About Premier Escrow Services and International Properties and Resorts Inc5/1/2011
A report has been issued warning consumers about a potential timeshare scam involving a company calling itself Premier Escrow Services. It is unclear if this is the same scam operation that was previously noted in a warning issued by officials in the state of Washington, but the fraud appears to be the same.
"...The Better Business Bureau is warning timeshare owners who are trying to sell or rent their timeshares to beware of an escrow service called Premiere Escrow Services. In addition to being named in customer complaints, the business uses a fictitious address in Dallas and a phony City of Dallas license. When BBB representatives tried to go to Premiere Escrow Services at 306 N. Akard Street, Dallas, they found the address doesn’t exist. Also, the business furnished one customer with a “City of Dallas License Certificate” signed “Richard M. Daley, Mayor” -- not the mayor of Dallas, but the mayor of Chicago...." Timeshare owners claim that they have received calls from a company called International Properties and Resorts, Inc which told them that the company had a buyer willing to pay a ridiculously high price for their timeshare week. The sellers are then told that they must wire money to the "escrow" agent for the sale, a company identified as Premier Escrow Services. After wiring money, often stated to be fake government taxes allegedly required to sell Mexican resorts. If you have been approached by one of these companies, or feel that you have been the victim of timeshare related scams or consumer fraud- take the time to report the crime to your state attorney general and the attorney general of the state where the scam business claims to be located. You can find contact information for the United States Attorney Generals by clicking HERE. Royal Resorts management has issued another resale scam warning to its owners in the April newsletter. Members have reported receiving calls and emails from "resale" companies claiming to be affiliated with the resort developer and management company. These bogus companies are claiming to have a ready and waiting buyer for the timeshare week, and claim to require no upfront marketing fee or even a commission on the sale. What they say they require is a title search fee!
We've covered this issue in past scam alerts dealing with title search fraud and Mexican timeshare fraud. However, repetition of ways consumers can avoid timeshare resale scams is always a good thing! A title search only applies to deeded ownerships. Mexican timeshares are not sold as deeded property, they are simply a right to use leasehold. A title search does not apply to a Mexican timeshare sale! For a deeded timeshare sale- the buyer wold have the option of purchasing a title search or a title insurance policy. This cost will vary by state, but is generally less than $300. In Florida- a timeshare title search from a respected title company or attorney should cost less than $100. As a general rule, any timeshare reseller that requires the seller to pay any type of upfront fee has a very high potential to be some type of resale scam. Never pay any type of upfront fee to sell an unwanted timeshare week! A new consumer complaint has been registered with ripoffreport.com about a company operating our of Winter Park by the name of Premium Timeshares Only.
This group allegedly promises timeshare rental prices far above market value, which it states are possible because of corporate relationships for convention visitors. They require a large upfront "documentation" fee, which is stated is due to estoppels and title search charges. If you believe that you have been the victim of consumer fraud perpetrated by Premium Timeshares Only, please take the time to report the crime to the Florida Attorney General by clicking HERE. Consumers should be aware that estoppels and title searches are traditionally part of a sale process and are not traditional part of a short term lease or rental program. Also, title searches for timeshares in Florida should not cost more than $100. and should always be purchased from a respected attorney or title provider. If you are approached by a timeshare reseller who asks for you to pay an advance fee for a title search- demand that you be allowed to purchase the title search directly from the title company. Their scammer's story will always change at that point! Florida timeshare title searches can be ordered at very low cost from several respected companies, including both First American Title Insurance Company and PCS Title. A new consumer complaint has been posted about a company operating out of Clearwater, Florida under the names Meridian Media Group and Timeshare Advisor Magazine. This group is allegedly cold calling timeshare owners with the promise of a buyer offer for their unwanted vacation ownership property. The seller is allegedly required to pay an upfront fee, and then the promised sale does not occur. In this posted complaint, the seller states that he has reported the crime to the Florida Attorney General's office. According to the Better Business Bureau, this company currently has a D+ rating due to 56 registered consumer complaints.
If you believe that you have been the victim of consumer fraud perpetrated by this company, please take the time to report the crime to the Florida Attorney General by clicking HERE! Another potential scam alert has been reported involving Sierra Resort Services or Sierra Corporate Sales and Rentals. Victims of Sierra allegedly paid a fake escrow company called Gibraltar Escrow high upfront fees to sell Mexican timeshares to a mysterious "corporate" buyer. Then, Sierra is reported to have simply disappeared with the money- and no sales ever occurred.
Now, a continuation of this scam appears to be unfolding. Victims have reported that a new "company" calling itself Priority Escrow is allegedly calling on behalf of the original "mysterious" buyer and requires a fake Mexican closing tax to finalize the transfer and pay the sellers. If you have been the victim of any type of timeshare related fraud or scam, help warn others by contacting us The Florida Attorney General has reported an ongoing investigation of a timeshare marketing company and telemarketing operation using the names Hicks Inc, Universal Marketing Solutions, and Creative Vacation Solutions that are operating out of Lake Worth, Florida.
Case Number: L08-3-1192 Subject of investigation: Hicks, Inc. d/b/a Universal Marketing Solutions/Creative Vacation Solutions, Inc. Subject's address: 1300 NW 17th Avenue, Delray Beach, FL 34445; 3900 Woodlake Ave. Lake Worth, FL. 33463 Subject's business: Telemarketing Allegation or issue being investigated: Alleged violations of Chapter 501, Part II, misrepresentation of services to be rendered-Chapter 501, Part IV, violations of Telemarketing Act AG unit handling case: Economic Crimes Division in West Palm Beach, Florida |
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