Uri Fried gets year in jail fo not reporting 1.9mil in income via timeshare sales

[comicbookman]

The foreclosure process varies by state and country. So the arguments here about whether or not it costs a lot of money or energy to foreclose are not meaningful. It really all depends on the location of the timeshare.

Similarly, whether or not Viking Ships are legal or illegal depends on the state/country of the timeshare as well as the LLC. The debate about whether they're immoral or fair game is unlikely to be resolved. It's a long-standing debate here on TUG.

So let's talk about the IRS. The news article at the beginning of this thread claims that they're owed $706,636 in federal taxes for two years. Who thinks the IRS has tons of evidence to support this claim and who thinks the IRS is just pulling numbers out of a hat?

Since the housing crash, foreclosure in most states has become a lot more difficult and expensive.

I doubt the irs is just making up numbers if they are willing to go to xourt.

 

[TUGBrian]

much less go to court, but to actually get a conviction.

its easily safe to say they have plenty of evidence to back up their number.

 

[ace2000]

Who's stiffing old ladies? Maybe DRI, Wyndham and developers is your reference.

Not really what I was referring to. Actually the names of the two companies you provided do currently offer deedbacks, at the least, in a limited way. There have been several posts on TUG about resorts that will not allow deedbacks, period. Or the process to even apply is just a time consuming hassle. I don't have time to go back and dig them up, but they're there.

IMO if a resort were to get more deedbacks than they could manage, then perhaps it's time for the resort to just close the doors. It really is that simple. But, I know many here disagree, and are more in favor of destroying the "deadbeat's" credit, simply because they can no longer afford to pay.

 

[Beefnot]

So let's talk about the IRS. The news article at the beginning of this thread claims that they're owed $706,636 in federal taxes for two years. Who thinks the IRS has tons of evidence to support this claim and who thinks the IRS is just pulling numbers out of a hat?

Are you suggesting that it is quite easy to be convicted for tax evasion without strong evidence? Or are you suggesting that IRS does not or cannot--via seizure of computers, investigation of bank transactions, credit card transactions, municipal records, et al.--arrive at a competent estimation of back taxes owed? Or both? And what would lead you to that conclusion?

 

[rickandcindy23]

Not really what I was referring to. Actually the names of the two companies you provided do currently offer deedbacks, at the least, in a limited way. There have been several posts on TUG about resorts that will not allow deedbacks, period. Or the process to even apply is just a time consuming hassle. I don't have time to go back and dig them up, but they're there.

IMO if a resort were to get more deedbacks than they could manage, then perhaps it's time for the resort to just close the doors. It really is that simple. But, I know many here disagree, and are more in favor of destroying the "deadbeat's" credit, simply because they can no longer afford to pay.

So if a percentage of any unit, say 25-30% of the owners in any one condo are wanting to walk away, how do you convince the other people of that one condo to let their ownerships go? This is a problem, especially when those older folks paid $15K for a ski week 30+ years ago and think they have something of value, when in fact they do not. This has been an issue at Twin Rivers.

Twin Rivers' new HOA BOD just sold weeks to a vacation club, which they didn't even name in the newsletter, and it was a substantial 125 weeks. Who knows if this group will pay the fees each year, and what club? I don't like the lack of information, and of course the folks in the office have NO IDEA.

 

[ace2000]

So if a percentage of any unit, say 25-30% of the owners in any one condo are wanting to walk away, how do you convince the other people of that one condo to let their ownerships go?

As you say, if 25-30% deed back their units, then the resorts will have to figure out a way to resell or give away those units. If the resorts can't even give those units away to other takers, then there's the problem. If the weeks are really that worthless that nobody else will take them for free (or at minimal cost), then that's why it might be time to close the doors.

In your example, if the other owners don't want to let their ownerships go, then the ones that do want to stick around, can pay the increased MFs to continue the operation of the resort.

 

[DeniseM]

I fully understand the issues involved thank you.

I have no idea why you posted this, since I was clearly addressing hotellier, and even quoted him in my post.

 

[DeniseM]

So let's talk about the IRS. The news article at the beginning of this thread claims that they're owed $706,636 in federal taxes for two years. Who thinks the IRS has tons of evidence to support this claim and who thinks the IRS is just pulling numbers out of a hat?

You think the IRS went to court with numbers they "pulled out of a hat," and the defense attorney, judge and jury bought it, and convicted Fried, and sent him to prison, based on made up numbers?

Or maybe it's a conspiracy, and they were all in on it?

 

[VegasBella]

much less go to court, but to actually get a conviction.

They got a plea deal. They didn't convict based on evidence. The court ruled based on a confession. To me, that says that Uri knew the IRS was going to make his life hell and simply decided to take the easier way out. He likely made the deal believing he would get probation. Did you read the article you posted? It said:

"Fried pleaded guilty on May 22, 2015.
Vaudreuil's office said Fried did business as a timeshare wholesaler. As part of the plea process, Fried agreed that his unreported income from this business between 2008 and 2009 was $1,980,035 and that he owed $706,636 in federal taxes for those two years.
Peterson rejected Fried’s request for probation and stated that a prison sentence was necessary to promote respect for the law and to deter others who may be inclined to cheat on their taxes."

Please note: I'm NOT saying the IRS's claims are baseless. I believe it's very likely that Uri committed tax evasion. But I highly doubt the numbers the IRS claimed are accurate. More likely, the numbers the IRS cites are higher or lower than the actual income.

You think the IRS went to court with numbers they "pulled out of a hat," and the defense attorney, judge and jury bought it, and convicted Fried, and sent him to prison, based on made up numbers?

Or maybe it's a conspiracy, and they were all in on it?

What jury? There was no jury. He plead guilty and waived his right to a jury trial.

 

[DeniseM]

1. I didn't post it

2. I read it

3. Your theory is silly

 

[TUGBrian]

I feel you simply take the most illogical stance on many posts just for the sake of argument, vs based on any sound reasoning.

 

[TUGBrian]

and another update on this, at least some wisconsin residents scammed by this guy will get some justice!

hope they arent the only ones!

https://content.govdelivery.com/accounts/WIDATCP/bulletins/1893df7

 

[theo]

Uri Fried! Holy Cow! It's been years since I last heard that name come up, although I'm not at all surprised by the current context.

 

[Jason245]

What I find interesting is that dri basically made their entire business out of buying timeshares for a dollar, taking over those resorts and selling those same timeshares to new people for tens of thousands. .and then buying them back for a fee.. if you want to dump any timeshare. . Dri may take it.

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[TUGBrian]

What I find interesting is that dri basically made their entire business out of buying timeshares for a dollar, taking over those resorts and selling those same timeshares to new people for tens of thousands. .and then buying them back for a fee.. if you want to dump any timeshare. . Dri may take it.

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not quite sure what this has to do with the topic in this thread? did you mean to post it in a different thread?

 

[rickandcindy23]

There are so many people who are in these scams up to their noses. I am surprised we still get cold calls from different companies to relieve us of our timeshare. I think news of these arrests aren't actually making it to the other scammers' ears and eyes.

I wonder if Uri would do the same, if he had to do it all over again.

 

[pedro47]

What is one year in jail?

 

[Jason245]

not quite sure what this has to do with the topic in this thread? did you mean to post it in a different thread?

Sorry meant to post as a reply to one of the viking ship comments as an alternative to deed back to your resort or viking ship. E.g. if resort has no process or is unwilling ( their choice which causes hardship to owner ) approach dri next ( as it is their model to not build inventory but instead buy it up for next to nothing or make seller pay and then resell for thousands while retaining voting rights enough to eventually get management contract by controlling hoa).

An independent with no deedback program may quickly become dri property this way.

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[MPERL]

What if you paid one of these companies to get rid of your timeshare a few years ago. How do you check to see if you are still on the hook in any way? Or involved in any shenanigans?

 

[WackyLucy]

What if you paid one of these companies to get rid of your timeshare a few years ago. How do you check to see if you are still on the hook in any way? Or involved in any shenanigans?

It seems to me that a very quick and easy way would be to just look up your own name in the County records where the timeshare is located.
For most of the U.S., this can usually be done online in a minute or less, day or night and at no cost.

If the latest deed you find with your name is an old one with you as the grantee that is definitely not good news, regardless of whatever amount of money was paid or when or to whom. Still being the most recent deed grantee indicates that you are still on the books as the owner of record.

I'm no expert, but reports repeatedly indicate that paying money to "exit" companies very often doesn't actually result in a legal exit at all.

 

[MPERL]

What if you paid one of these companies to get rid of your timeshare a few years ago. How do you check to see if you are still on the hook in any way? Or involved in any shenanigans?

My best friend's parents paid a lot of money about 8 years ago to EZ Exit to get rid of 2 timeshares.

 

[Saintsfanfl]

Sorry meant to post as a reply to one of the viking ship comments as an alternative to deed back to your resort or viking ship. E.g. if resort has no process or is unwilling ( their choice which causes hardship to owner ) approach dri next ( as it is their model to not build inventory but instead buy it up for next to nothing or make seller pay and then resell for thousands while retaining voting rights enough to eventually get management contract by controlling hoa).

An independent with no deedback program may quickly become dri property this way.

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What is "dri"? Do you mean Uri? I thought they resold timeshares for nothing. I bought one from one of his companies back in 2013 for $100 and free usage.

 

[Jason245]

What is "dri"? Do you mean Uri? I thought they resold timeshares for nothing. I bought one from one of his companies back in 2013 for $100 and free usage.

Diamond resorts international. There was a whole series of posts on viking ships so I gave an alternative.

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[Saintsfanfl]

Diamond resorts international. There was a whole series of posts on viking ships so I gave an alternative.

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Ahh. Gotcha.

 

[Saintsfanfl]

It seems to me that a very quick and easy way would be to just look up your own name in the County records where the timeshare is located.
For most of the U.S., this can usually be done online in a minute or less, day or night and at no cost.

If the latest deed you find with your name is an old one with you as the grantee that is definitely not good news, regardless of whatever amount of money was paid or when or to whom. Still being the most recent deed grantee indicates that you are still on the books as the owner of record.

I'm no expert, but reports repeatedly indicate that paying money to "exit" companies very often doesn't actually result in a legal exit at all.

The county records is a good start but it is not the ultimate way to go. Anyone can record a deed transfer but did the resort actually process the transfer in their system?