Jan. 2, 2012 – Thirteen employees from a now-defunct timeshare resale company have admitted to fraud in front of a federal judge to committing fraud over the past two months. The company, which was known as Timeshare Mega Media, was one of the most successful timeshare resale scams in recent years. So far, the thirteen former employees have admitted to scamming customers out of over $5 million dollars in less than a year according to the Federal Trade Commission.
In what is called a “naked fraud”, Timeshare Mega Media – which was run by two felons – took as much as $10,000 at a time from customers who believed the company was going to get rid of their timeshare by selling it to pre-existing buyers with the expectation that a portion of their money would be refunded once the timeshare was sold. However, the buyers never existed and the money was never returned.
After raiding the company’s Ft. Lauderdale office in July 2010, the FTC filed a lawsuit against the company and confessions from former staffers have continued to roll in. Fifteen people have been arrested so far, with 13 having admitted to conspiracy to commit mail and wire fraud, which can carry up to five years in prison. The 14th employee will more than likely take a plea deal and the 15th passed away a couple of months ago.
This is just one example of the importance of researching timeshare resale companies before you pay any upfront fees. Timeshare resale scams are a real threat to people who are desperately trying to get rid of their timeshares. By knowing what to look out for, doing your homework, and never paying upfront fees in excess of $100 can help you to protect yourself (and your money) from these potentially devastating frauds.
About Donna Connelly
