Spotlight on Scams

From TimeSharing Today, December 2011

$5 Million in Less than a Year

According to government documents, Timeshare Mega Media and Marketing Group collected more than $5 million in less than a year while operating from an unmarked storefront in Fort Lauderdale, FL. The company played on the hopes of owners trying to find buyers for timeshares they could no longer afford.

The Federal Trade Commission said that several key players with Timeshare Mega Media have extensive criminal records, including the two alleged "masterminds" Pasquale "Posh" Pappalardo and Joseph "Joey" Crapella.

Pappalardo, 59, served time in federal prison in the mid-1990s on drug, firearms and counterfeit money charges.

Crapella, 45, spent nearly eight years in Florida prisons after a Broward County jury convicted him in 2000 of racketeering and grand theft. He had run a Sunrise based vending machine company that never delivered machines to people who had paid for them, court records show.

Repeated cries of, "Congratulations! We have a buyer for your timeshare!" came out of the one-room operation as salesmen pressed owners to put down as much as $10,000 to "lock in a deal," a former employee said in a sworn statement.

"Needless to say, there are no buyers," wrote Federal Trade Commission attorneys in court filings against Timeshare Mega Media. "Consumers receive absolutely nothing for their money. This is naked fraud.

After FBI agents raided the company's office, the Federal Trade Commission (FTC) filed a lawsuit a few months later against the former operators, demanding that they repay customers.

There is no indication Timeshare Mega Media ever arranged a single timeshare resale, according to a FTC staff attorney.

Former employee Scott Faraguna said that the key was to keep claiming the timeshare had a buyer and string customers along for 60 days so it would be harder for them to contest the credit card charge

Florida Man Arrested

Delray Beach detectives arrested a man suspected of running a timeshare property resale scam that cheated elderly victims across the country out of more than $60,000.

Josh Butcher, of Delray Beach, was arrested on Thursday for defrauding at least four people in Texas, Illinois, Tennessee and Indiana, according to Delray Beach police. He was using the common scenario that has sparked thousands of consumer complaints in Florida: A salesperson calls a timeshare property owner and claims to have buyers lined up for their property. The salesperson then has the owner pay a "sellerís fee" up front and disappears with the money.

Alert reader avoids scam

I recently received the following call from 702-583-0107 involving my Orange Lake Country Club.

"James Thomas" acknowledged and promised a refund of $1498 (from my attempt to sell almost 2 years unknown). He said they would deliver to my home address in Maine (which they had) a check IRS # 21245 in amount of $19,800.

He asked that I go through Bank of America and sent a wire transfer to "U.S. Federal Title Closings" Acct. #843719766, Routing No. 267-084-131, in the amount $1613.15 to cover Federal Taxes due on the sale). He said the State of Florida tax of $2800 is payable in Orlando, FL when reported. He said I was to call him back at 407-600-3933 to confirm.

That number rang my cell phone, but believing this to be fraud, I did not respond.

Thanks to TimeSharing Today for all their information on this problem. I will continue to keep and use my timeshare.