KCRA 3 News that broadcasts in Sacramento and Stockton, ran an interesting article, warning people about a problematic timeshare deal from Holiday Travel of America.

It seems that the company offers two round-trip coach air tickets and two nights in economy accommodations in Hawaii, if you sit through their timeshare sales presentation. Representatives of the news station tried it, and did in fact receive their certificate good for their airfares and hotel stay.

The certificate from the timeshare company came with the stipulation that it had to be used within 45 days or it would be void. A letter requesting travel dates, restricted to travel on Tuesdays through Thursdays only, plus the payment of a hotel and airline tax deposit followed it.

Too Many Complaints about this Timeshare Sales Company

Other people, who had been through the timeshare sales presentation with Holiday Travel of America, voiced complaints with the process. Many had trouble getting travel dates scheduled by the timeshare company. No matter what two days they picked, even within their limited choices, the answer always came back that those days were unavailable.

The KCRA crew had six different travel dates requested before they called the timeshare company to complain. They were finally offered dates in September, but were told they had to book on the spot, fax a written confirmation of travel with a credit card number, and agree to having a nonrefundable charge of between $75 and $100 placed on their credit cards.

KCRA’s article about the scam said, “The Better Business Bureau of San Diego said other people have had trouble, too: Holiday Travel of America has an unsatisfactory record because of a pattern of complaints.”

Finding the Good Deals in Timeshare Sales and Timeshare Resales

Good job of investigative reporting by KCRA. I wonder, if the current tough economy will bring on a rash of opportunistic vultures, who prey on people’s desire to enjoy a little vacation time despite budgets being tight. Whatever the situation, the advice is always the same. If it sounds too good to be true, it is. There are plenty of good deals available in timeshare resales and timeshare rentals, and you don’t have to sit through a timeshare sales pitch in order to enjoy them.

The March 31 Timeshare Owners Blog ran a post titled, They Wouldn’t Have this Problem if They’d Bought Timeshare Resales. We were looking at a situation that occurred when a timeshare developer presold timeshare units, in many cases without recording deeds, but failed to build the timeshare resort. In another instance, the resort is built and operational, but this same developer and his partner failed to pay bills on the property or to give owners their share of the timeshare rental money.

Robert Reposa of Hingham, MA, the property owner, now owes thousands of dollars in unpaid state and federal taxes, not to mention the restitution he owes to timeshare buyers at the two properties: the Navigator Beach Club and Beachside Village in Falmouth.

The MA Attorney General has 50 complaints from timeshare owners who paid for, but did not receive, deeds for the unfinished timeshare units at the Navigator Club. On Tuesday, the Navigator Beach Club was sold at auction to a man who says he does not intend to use it as a timeshare resort. What happens next is just a wait and see situation for timeshare buyers, some who are out as much as $50,000.

Contact Information Regarding the Troubled Timeshare Deal

The Timeshare Owners Blog will continue to provide information about this timeshare deal gone wrong as it becomes available, as well as offering good advice for avoiding this problem when you buy timeshare. Here is a list of phone numbers and contact information that may be helpful if you have questions about the property or the ongoing investigation:

Massachusetts Attorney General.
(617)-727-8400

Consumer Complaint Form

Det. Sgt. Ben Wunderlich (Working the case for the Dennisport Police and coordinating with the Attorney General’s Office and the District Attorney’s Office)
(774) 352-1433

Robert Reposa
(781) 264-5296

George Fintonis
(508) 398-9153
george@capecodoceanresorts.com

Website for victims and others trying to learn more about this situation:
http://www.navigatorbeachclub.org/

This is an interesting link to the actual property auction from the ABC affiliate in Boston, WCVB:
http://www.thebostonchannel.com/video/15827067/index.html

Last November, the Timeshare Owners Blog reported on the arrest of Dennis Drummond. In the summer of 2007, Drummond was picked up on a fugitive warrant in North Carolina and was then extradited to Massachusetts, where he faced multiple counts of larceny. Dennis Drummond has faced charges in MA in 1990, 2003, and 2005, each time on charges related to timeshare fraud.

The former resident of Plymouth, Drummond was accused of a timeshare scam involving more than 80 people. According to police, Drummond would set up real estate offices and offer (for a fee) to exchange people’s timeshare units for better weeks or vacations at better timeshare resorts.

Last Wednesday, Drummond pleaded guilty to three charges of larceny over $250; larceny over $250 involving a person over the age of 60; and larceny over $250 in a single scam. Drummond was sentenced to 2 and a half years in jail, but will only serve 10 more months. He is also required to make restitution to his victims.

Elderly Can Be Targeted in Timeshare Scams

One particularly sad account in this timeshare scam is the story of the Doucettes. Janice Doucette told the court that in 2002, she and her husband gave Drummond $25,000 and the deed for two of their three timeshare weeks, but that they never received anything in return. As Doucette explained, her husband Charles is now 79 years of age and receiving kidney dialysis in a nursing home. Doucette blames Drummond for ruining the golden years of her marriage.

While Drummond’s sentence may seem light, if he fails to make restitution, or is arrested again, he could then be sentenced to up to five years in state prison.

For more information on ways to safely buy, rent or sell timeshare, visit Sell My Timeshare NOW.

When Tom Corbin and Steve Bodack bought timeshare units at the Navigator Beach Club in Dennisport, Massachusetts, they thought they were making vacation planning simple. Instead, they bought into a huge headache.

In May of 2006, Corbin paid $16,000, (according to a report published online by TheBostonChannel.com) for the right to vacation one week per year in timeshare unit number 6 at the Navigator Beach Club. Bodack paid $4300 for his timeshare and Ernie Morin paid $4500 for his. Each of the three men is still waiting.

It now looks like it is going to be a long wait.

Not only is construction on the Navigator Beach Club timeshare unfinished, but the resort had been scheduled for auction for nonpayment of the $2.2 million mortgage, just two days from now. Instead, the developer, Robert Reposa of Hingham, caught a break; the lender has agreed to give him another two weeks to find a buyer for the partially built timeshare resort property.

The Legalities of Buying Timeshare

According to Kathleen O’Donnell, a property law expert, Corbin, Bodack, Morin, and an undisclosed number of others have, “…bought something that doesn’t exist.”

Massachusetts law requires developers to form entities and file deeds. Neither of which was done in the case of the Navigator Beach Club timeshare resort. Simply put, where there is no entity to sell timeshare, any “timeshares” sold just don’t exist.

The next step is likely to be that the Massachusetts Attorney General will get involved. Whether or not the timeshare buyers ever see their money again is anybody’s guess at this point.

Don’t Gamble; Buy Timeshare Resales Instead

There are many situations in which timeshare developers legitimately sell pre-construction timeshare units. And as the situation at Navigator Beach Club timeshare resort proves, there are times when they don’t.

The simplest advice to avoid falling victim of a timeshare scam, is to know what you are buying. You can do this by thoroughly investigating the business stability and track record of a timeshare developer before you sign on the dotted line or you can buy timeshare at a resort that is already built, already operating, and already proven.

Timeshare resales can take a lot of the guesswork out of buying vacation ownership property. Not only can you visit an operational timeshare resort and decide for yourself if you are spending your money wisely, but you can talk to others at the resort and online at Sell My Timeshare NOW’s Timeshare Owners Forum. Find out what current owners like and what they dislike about their timeshare resort.

Vacations are supposed to provide you rest and relaxation - freedom from worry, which might be the best reason ever to buy right-priced, already proven timeshare resales.

I’ve written about this before, but in light of Sell My Timeshare NOW’s press release this week supporting more consumer education for people who buy timeshare resales or sell timeshare resales, it never hurts to pass on this message again.

The “Nigerian scam,” also called the “419 scam,” never seems to go away, although its sources have spread far beyond Nigeria and touched many areas besides timeshare sales. When it comes to selling timeshare, here’s basically how the Nigerian scam works:

The timeshare owner receives a letter, email, or phone call saying that someone wants to purchase his timeshare unit. The phony timeshare buyer, or his phony representative, then sends the timeshare owner a check for more than the purchase price of the timeshare unit, a check that the elated owner deposits. If the timeshare owner makes the mistake of promptly sending to the phony buyer the executed deed to his timeshare and the difference between the check sent and the sales price, then the timeshare owner has lost both his timeshare and the money he or she sent back to the buyer.

Even though many people have heard about this timeshare scam, they get bitten by it because the check they receive from the phony timeshare buyer usually looks so authentic that even the timeshare owner’s bank may initially accept it as either a valid bank check or credit union draft. Despite the fact that your bank accepts the buyers check and at first credits it into your account, days or even weeks later, when the counterfeit check works its way back to the issuing bank, its fraudulence will be discovered.

Why People Still Fall for a Timeshare Scam

As old as this timeshare scam is, people still get caught by it. While dozens, maybe hundreds, of bogus deals may cross your desk, never doubt the ability of one lone criminal to craft an approach that sounds so sincere and so genuine, that even savvy skeptics fall for it. Letterheads that look like they come from a timeshare resales company, from eBay, or another seemingly authentic source may trick you into believing that you have a genuine offer to buy timeshare in your hands.

Another variation on this timeshare scam is for you to be contacted by someone who says he or she has a guaranteed buyer for your timeshare weeks or timeshare unit, and asks you to send a check - say for $200 - to cover the transfer costs. Mail that check, and guess what happens next?

Nothing. Absolutely nothing.

You might as well have taken two one-hundred dollar bills and flushed them away. The loss is not as great this way, but it is still money gone with nothing to show for it.

Reliable Ways to Sell Timeshare

The message here is not a warning against paying fees upfront to sell timeshare, despite what some voices in the timeshare industry try to preach. There are many situations in which it makes good sense to pay someone to help you advertise and market your timeshare for sale. Just make sure you first confirm that the timeshare company you are paying has a proven record of successfully advertising timeshare resales and timeshare rentals in a global marketplace.

More than 1.7 million people visit Sell My Timeshare NOW’s website each month. In 2007, Sell My Timeshare NOW presented over $274 million in offers to buy timeshare or rent timeshare advertised on its website.

Last week, Florida’s Attorney General, Bill McCollum increased his focus on consumer education specifically targeting scams in timeshare sales.

It makes sense that McCollum would have a particular interest in timeshare issues since more timeshare resorts are located in Orlando than in any other city, and more timeshare resorts located in the state of Florida than any other US location. McCollum’s office recommends that people who want to sell timeshare use either, a licensed real estate broker or they sell by owner — and both are excellent suggestions.

Sell Timeshare Through a Timeshare Broker

A licensed real estate broker, like Sell My Timeshare NOW’s sister company, Timeshare Hot Deal, is an excellent choice for some people who are ready to sell timeshare. A timeshare broker gives you the benefit of a commission-motivated sales professional and the plus of paying no fees until your timeshare unit or timeshare weeks actually sell.

Sell Timeshare By Owner

Selling timeshare by-owner is also a good option. By owner selling lets you control every detail of your timeshare resale; and it is the way many of the timeshare sellers at Sell My Timeshare NOW handle their timeshare resales transaction. Sell My Timeshare NOW advertises and markets available timeshare real estate, attracting over 1.7 million visitors per month to our website. In 2007, more than $274 million in offers to buy timeshare or rent timeshare were made on properties in our inventory.

But Attorney General Bill McCollum’s message for more consumer education is important! Before you buy, rent, or sell timeshare, do your research to ensure that whomever you hire to help you is reputable and has a proven track record in the timeshare resales industry.

To read more about the importance of consumer education for people who want to buy timeshare, sell timeshare or rent timeshare, click here to read Sell My Timeshare NOW’s press release.

State of Missouri Attorney General Jay Nixon has filed a lawsuit in Taney County Circuit Court against Branson log Homes, a company which does business as Executive Timbers Resort and Golf Course. The lawsuit alleges that the southwest Missouri company used deceptive practices, fraud, and misrepresentation in the sale an advertisement of timeshare memberships, timeshare plans, and timeshare property.

Details of the Alleged Timeshare Fraud

According to the Attorney General’s Office, consumers who contacted them complained that the timeshare company:

• Failed to provide required notice to them of their right to cancel contracts.
• Failed to allow consumers to cancel their contracts within five days after they purchased a timeshare membership.
• Billed timeshare buyers for maintenance or upkeep fees on property they were trading in, after neglecting to inform consumers that they would be required to pay such fees.
• Did not reimburse consumers for maintenance fees after telling them those fees would be reimbursed.
• Promised that consumers who purchases a timeshare membership, plan, or property from them would receive certain benefits , but then didn’t make good on those promises, and
• Did not disclose the fact that it was already over $30,000 in debt to the travel club that it was using to provide travel club memberships to the consumers.

What To Do If You Are a Victim of a Timeshare Scam

The Missouri Attorney General’s investigation has revealed that most victims of this timeshare scam have lost between $7,000 and $17,000 each, but some people may have lost more. If you want more information about this problem, contact the Office of the Attorney General at cphillips@phillipsgarcia.com or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

If you believe you are a victim of timeshare fraud in another US state, contact that state’s office of Consumer Protection or the Attorney General. Another way to learn more about protecting yourself against timeshare fraud is to talk with other timeshare owners at online forums, such as Sell My Timeshare NOW’s Timeshare Owners Forum.

And to learn more about safe and cost effective ways to buy timeshare, visit the website for Sell My Timeshare NOW.

You own timeshare weeks. You get a call, out of the blue, from a timeshare sales company that tells you they have someone interested in buying your timeshare real estate. Maybe you were thinking about selling…maybe the idea to sell timeshare you own had not crossed your mind before. Either way, if there really is an interested buyer, you think…perhaps this is a good time to sell my timeshare.

So you send the timeshare sales company a refundable deposit, typically between £ 400 and £ 1000 (approximately 750 to 1900 US dollars). The timeshare company calls the fee a “guarantee”. Once they have the deposit, they explain to you that they will hold your deposit for up to twelve months, awaiting the timeshare sale they had implied was imminent.

So you wait…and wait…and finally called the timeshare sales company, who tells you either that there has been a paperwork slowdown or perhaps, does not even take your call at all.

You are the victim of a timeshare scam.

Your timeshare real estate won’t be sold and you probably won’t see your “guarantee” money again, or at best not more than a small percentage of what you paid, should the legal system be able to intervene on your behalf. While this and other timeshare scams have happened before, this particular scenario describes Yacht Trading UK, a timeshare sales company that now faces charges in British High Court, following an investigation by the UK governmental Companies Investigation Branch.

In reality, Yacht Trading UK was never more than a post office box in Manchester, England, from which mail was then forwarded to Spain. Checks were cashed, some “company executives” (and I use the phrase loosely) were living the good life, and not one single timeshare resale was ever sold, nor did any of the timeshare owners receive their money back.

The petition to wind up the company in the public interest was presented in December 2007 and the company went into compulsory liquidation earlier this month. Good that they have been shut down, but the people behind this company have been part of other timeshare scams in the past, and are likely to surface again.

If you have had problems with Yacht Trading UK Timeshare company, and would like additional information about the investigation, contact: The Official Receiver, Public Interest Unit, PO Box 326, 17-21 Chorlton Street, Manchester, England M60 3ZZ. Telephone: 0161 934 4182 Email: piu.north@insolvency.gsi.gov.uk

Also, here is an interesting link to HolidayWatchdog.com where you can read about the problems others have had with this timeshare sales company. You are also welcome to post your comments here on the Timeshare Owners Blog or Sell My Timeshare NOW’s Timeshare Owners Forum.

Sadly, it seems that many timeshare scams target the elderly, but then, a lot of fraudulent business or investment deals in general prey on some older people who may be more trusting or more willing to believe that they are being given all the facts in a credible way.

This week, the Arizona Corporate Commission ordered Leonard Clark Rhodes, Jr., of Gilbert, Arizona to pay $160,663 in restitution and $50,000 in administrative penalties for defrauding elderly investors in two different investment programs. I am going to give you several facts about Rhodes’s scheme, because I think the more we drag this type of timeshare fraud out into the bright light of day, the less likely people are to fall for it in the future.

Rhodes told investors that his Universal Lease program offered the timesharing of investment hotel units in Mexico and Central America. The timeshare unit “investors” (and I use the word with sarcasm because these people were victims, not investors) were given the option to use the timeshare units themselves or to use them as timeshare rental units. Using the timeshare units was downplayed as an option in the written and oral presentations to investors, and in many cases was not even an option that interested some older investors.

The option to actually use the timeshare unit applied only to “investors” (there’s that word again) who had contributed a minimum of $5,000, in return for which they received no choice of location or date of the timeshare vacation week they received. Personal use of the timeshare unit also carried with it annual fees ranging from $380 to $645, which could increase based on the Consumer Price Index.

In the Universal Lease deal, “investors” were given two other options, besides using the mystery-location timeshare units themselves. The first option was to use the timeshare unit as a rental for potential investment return, but again the timeshare buyer was only told the location, date, and timeshare unit he or she owned, after the timeshare transaction was completed. In this option, the timeshare buyer was responsible to find timeshare renters and handle the timeshare rental transaction himself. The timeshare buyer was still obligated for the same annual fees, and was also told that managing his own timeshare rental was likely to yield less return than taking advantage of the other option.

The second timeshare rental option was to let a “professional third party servicing agent” manage the timeshare rental, a choice that the timeshare buyer was told, “…provided a superior rate of return over most other investments…” Investors—the timeshare buyers—were told that the Universal Lease would yield 11 percent annual return over 25 years if the investor used the designated servicing agent to manage and lease the timeshare units.

If you would like to read the charges brought by the Arizona Corporate Commission for violation of the Securities Act of Arizona, click here.

I can only shake my head in disgust that people were defrauded of their money in this way and breathe a sigh of relief that the State of Arizona is demanding restitution for the timeshare fraud victims. So here’s my summary of what this timeshare fraud case should teach all of us:

1. If it seems too good to be true, assume that it is.
2. If someone tells you that timeshares are an investment, be skeptical of everything else that person says because it is a flagrant violation of Securities and Exchange Commission rules to represent in any way that a timeshare is an investment.
3. Never buy timeshare “blind”. You should always know what timeshare resort and what week you are purchasing, or if you are buying a floating week. Where your timeshare unit is located, and when your timeshare week occurs during the calendar year both help determine the fair price you should pay for timeshare. It is impossible to know you are making a sound purchase if you buy timeshare without knowing all the facts!

To learn more about buying, renting or selling timeshare, visit the website of timeshare resale and timeshare rental marketing company, Sell My Timeshare NOW.

The TimesLeader.com reported last week about some Luzerne County, Pennsylvania officials who were questioned when the word “timeshare” appeared on their government-issued debit card statements.

No, the officials explained, they were not taking timeshare resort holidays. Instead, they were simply spending the taxpayers’ dollars carefully by staying at the Manhattan Club timeshare when they were in New York City on official business.

The timeshare rental, according to the article, appeared as a charge of $208.44 per night (a government rate) and was deemed more affordable than other hotels in the area. According to the officials involved, the trips to New York City included meetings with New York City police personnel in order to learn improved crime-fighting techniques centering around a police records management system that Luzerne County is currently implementing.

The Manhattan Club timeshare was recommended to the Pennsylvania government officials because it offers affordable accommodations in New York City. The article also went on to point out that, some business travel of the county’s officials was paid for through money confiscated in criminal investigations and arrests.

Timeshare rental can be an incredibly affordable travel lodging solution, and it doesn’t matter if you are trying to save tax payer dollars or your own. To learn more about timeshare resale and timeshare rental, visit Sell My Timeshare NOW. In a tight-dollar economy, timeshares make more sense than ever.

Here’s an interesting YouTube video, as unicyclists take to the city streets of Manhattan. Be sure you watch it all the way to the end when you will see a bold (and dangerous) way to travel the Long Island Expressway.