[2016] Huge upfront fee scam bust! Pro Timeshare Resales bilks owners of $15mil!

[TUGBrian]

http://protectingyourpocket.blog.pa...are-resellers-took-15-million-from-consumers/

this is such great holiday news! sounds like they froze the assets as well so some victims might have a chance at getting refunds!


(sad part is that these folks were first outed as scammers back in 2012 here on TUG)

 

[sts1732]

Thanks for the post Brian. Justice moves slowly but it's nice to know it does catch up, sooner or later.

 

[theo]

Good news indeed --- and very heartening. Thank you for providing that news item, Brian.
That's a whole lot of "customers" (the actual number is not actually disclosed in the article) to collectively "contribute" 15 million dollars!

It's great that the Feds have the wherewithal to freeze the assets of such thieving parasites. In an ideal word, the combination of criminal prosecution, fines and frozen assets would put a dagger through their thieving hearts and also serve to deter others from pursuing similar "enterprises".

I know, I know --- we don't actually live in that ideal world and there are (and will always be) other larcenous parasites to fill the void.
Just the same, it's wonderful to see at least some of these thieves get their comeuppance now and then.

 

[PamMo]

Hooray! It's heartening to see the Fed continues to go after resale scammers. Between criminal and civil charges that stick+hefty fines+jail time AND educating the public (kudos to you, TUGBrian, for plugging away on that front), I hope we'll see more and more scammers run out of business.

 

[Centurion]

The Florida AG has done an excellent job rounding these folks up. Freezing the assets was a strong strategic move. It eliminates the defendant's ability to finance their defense. It more or less seals their fate for right or for wrong.

 

[theo]

The Florida AG has done an excellent job rounding these folks up. Freezing the assets was a strong strategic move. It eliminates the defendant's ability to finance their defense. It more or less seals their fate for right or for wrong.

Say what, now???

If you read the story, this is a Federal case initiated by the Federal Trade Commission. Assets were frozen and a restraining order issued by a U.S. District Court.
In other words, there was no "Florida AG doing an excellent job rounding these folks up" in this matter at all.

 

[nhh]

Directly from the FTC.
https://www.ftc.gov/news-events/press-releases/2016/12/ftc-action-halts-timeshare-resale-scheme

At the FTC’s request, a federal court temporarily halted the operation and froze the defendants’ assets pending litigation. The agency seeks to permanently stop the allegedly illegal practices and return money to consumers.​

 

[TUGBrian]

looks like the FTC is seeking a 17m judgement against these folks....hopefully anyone on here scammed by them reported it and will get a piece!

https://www.law360.com/realestate/articles/977328/ftc-can-seek-refunds-in-17m-time-share-scheme-suit

 

[ronparise]

the scam outfits like this one absolutely deserve everything they get, but I cant help thinking its the timeshare developers themselves that make what they do possible

They sell an overpriced product using exaggeration and lies, often to people that cant afford it. They have created a group of folks that want nothing more than to get rid of their timeshares at any cost. Timeshare owners are perfect marks for the scam artists. Who better to take advantage of, than folks that have already been taken advantage of by the timeshare developers.

I think the FTC ought to take a close look at the sales tactics of the timeshare developers. What they do must be illegal

 

[brianfox]

They are a single weed in a forest, but it's good to see them get mowed down.

However, I have to wonder from which institution this reporter graduated:
"The defendants charge property owners as much as $2,500 or more..."

 

[DazedandConfused]

well, $15m divided by $3,000 is 5,000 people

It is hard to imagine 5,000 people falling for this scam

 

[T_R_Oglodyte]

well, $15m divided by $3,000 is 5,000 people

It is hard to imagine 5,000 people falling for this scam

not hard to imagine at all. Also, the average take is probably over $3000 per person. Usually, they keep coming back asking for more money to cover other fees that supposedly need to be paid. Based on reports, it's not uncommon for some people to pay more than twice that much money before they wise up.

 

[TUGBrian]

holy smokes, federal judge issues 18.7m in penalties!

https://www.law360.com/articles/1038904/ftc-nets-18-7m-win-in-suit-over-timeshare-resales


not that id imagine they would ever actually recover that, but this has to be one of the largest ive ever heard of!

 

[Passepartout]

This is the reason we've preached 'DON'T SIGN UP WITH UPFRONT FEE OUTFITS' for years. Glad to see someone is paying attention.

 

[brianfox]

holy smokes, federal judge issues 18.7m in penalties!

Great to see a large monetary penalty (that will never be paid).
However, I'd prefer to see the judge allow every plaintiff a baseball bat and 5 minutes time in a room with the defendants.
If a plaintiff is elderly give their strongest heir the bat and 10 minutes.
I think you would see a dramatic downturn in future fraudulent timeshare practices...

 

[TUGBrian]

id also prefer that the "fine" be added on to whatever jail sentence they got assuming they couldnt come up with the full 18.7m to pay back!

an extra day for every dollar owed works for me =)

 

[TUGBrian]

looks like the judge is seizing assets now! hope they leave these two broke and bankrupt for life!

http://www.orlandosentinel.com/busi...os-cfb-brinkmann-business-20180507-story.html

 

[mj2vacation]

id also prefer that the "fine" be added on to whatever jail sentence they got assuming they couldnt come up with the full 18.7m to pay back!

an extra day for every dollar owed works for me =)

If it only worked that way!

It’s sad that these people seem to pop up left and right. Enough people fall for it and get taken advantage of all over again.

It’s like the Sneetches from Dr Seuss.