Browse Tag

Apollo Global Management

Friday’s Letter from America

Welcome to another edition of the Inside Timeshare Letter from America, today we publish Part 3 of the GoFundMe Campaign for Irene Parker and her Legal Defense Fund. As we know she has now become the focal point of attention in the lawsuit filed by Diamond Resorts against Finn Law Group, so far over $5,000 has been raised. In this weeks article, Irene explains how the VOLUNTARY work she does in helping others has taken control of her life and is actually costing her money. Your contributions will not only help Irene but will also send a message to Diamond that she does have our support!

How Diamond Resorts Thwarted my Dream to Teach Piano Lessons 

Pictured above a Diamond Member who visited my house on vacation from England

Please donate $10 (or more) to my GoFundMe to let your voice be heard or contribute anonymously

GoFundMe Launched: September 26, 2019

Link to my GoFundMe: Over $5,500 donated in one week towards $25,000 goal!

https://www.gofundme.com/f/irene-parker-diamond-resort-legal-defense-fund?utm_medium=email&utm_source=product&utm_campaign=p_email%2B2300-co-team-welcome

October 4, 2019 

By Irene Parker

The reason for my GoFundMe Legal Defense Fund is because I have become the central focus of a lawsuit Diamond Resorts filed against Finn Law Group in 2015. At a six-hour deposition, conducted at the law office of Baker Hostetler in Orlando, Diamond’s outside counsel attorney ran out of “no” answers to questions about receiving or paying money to the law firm. Seemingly at a loss, the two attorneys left the conference room to confer. When they returned, they took a new direction.

As I understand Diamond’s case against me, because it feels like a case against me, it is because they contend I am greatly enriched by receiving free legal advice from attorney Mike Finn in exchange for my soliciting Diamond members to sign up with Finn Law Group. I have never been compensated by any attorney, law firm, or timeshare member. I have listened to and responded to over 1,000 timeshare families. This link to the Orlando Sentinel article is about the lawsuit:

https://www.orlandosentinel.com/business/os-bz-orange-lake-timeshare-finn-20180404-story.html

Diamond’s accusations leave me infuriated, thankfully not beyond words. The volume of angry and mostly desperate timeshare members contacting me through Inside Timeshare, or through social media, has increased from one member on average every two weeks in 2016, to a current average of three members a day.

What this means is I can’t take piano students. In 2015 it was my intention to resurrect by first love career – teaching piano lessons. At ten students a week, I could have earned $100 a week at $10 per student. I could have charged more, but the five students I taught were mostly neighbours and friends. When you’re living on a fixed income, $400 a month is nothing to sneeze at. In the fall of 2015, we moved from Bowling Green, Kentucky to Venice, Florida. We used our Diamond points while nomads in-between houses.         

Today’s article proves I really did intend to move to Florida to teach piano lessons before I attended the ill-fated timeshare presentation at Diamond Resort’s Grand Beach Resort. https://insidetimeshare.com/peasant-venice-queen-versailles/

I’m hoping Maya P, formerly with Diamond’s PR firm Prosek, will be deposed because when Maya called me the first time in 2016, I was teaching a piano lesson. Our initial phone conversation went like this:

Maya: “Irene, this is Maya from Prosek, Diamond’s PR firm. Can we chat?”

Irene: “I’m in the middle of teaching a piano lesson. Can I call you back?”

Maya: “You’re a piano teacher???!!!”

Irene: “Yes, we’re ruthless. I’ll call you back as soon as we’re finished.”

Maya: “I’ve always wanted to learn to play the piano.” 

This student is five years old, playing from her John Thompson’s Easiest Piano Course Book 1. This picture was taken on May 20, 2016, when I would only hear from a timeshare member about once every two weeks.

The pace of callers picked up after I started publishing articles for Jim Cramer of CNBC’s Mad Money’s investment news service TheStreet. I was reaching out and unknowingly emailed TheStreet. One of the editors responded asking to arrange an interview to become a TheStreet contributor. My first TheStreet article was an editors’ pick. It was about how I made my worst enemy a fortune during the stock market crash beginning Black Monday, October 19, 1987. I’m hoping that is how all this turns out.

How I Made my Worst Enemy so much Money

https://www.thestreet.com/story/13576145/1/the-markets-crashed-my-first-day-as-a-stockbroker-and-here-s-what-i-did-next.html

Diamond ignored me until I published June 20, 2016, TheStreet article about how Apollo Global Management acquired Diamond in 2016. I have to admit I went berserk after I read the announcement. Apollo’s predecessor company was Drexel Burnham Lambert. DBL filed bankruptcy on a $650 million fine and Michael Milken was sent to jail for securities fraud. You can imagine my reaction when I learned – Drexel BOUGHT MY VACATION PLAN!!!?? My husband and I had been DBL clients.

https://www.thestreet.com/story/13624491/1/is-apollo-returning-to-its-junk-roots-with-its-acquisition-of-diamond-resorts.html

DBL banker Leon Black formed Apollo after the DBL bankruptcy. Mr. Black’s name is being circulated among the power brokers associated with the late Jeffery Epstein’s “Financial Black Book” concerning sex trafficking.

In order to find out how he (Jeffrey Epstein) amassed his fortune, it may take subpoenas from the U.S. Attorney’s Office in the Southern District of New York to Wall Street types in Epstein’s inner circle—people such as Leslie Wexner, the billionaire founder and CEO of L Brands, Glenn Dubin, the billionaire co-founder of the hedge fund Highbridge Capital Management, and Leon Black, the billionaire founder of Apollo Global Management, the private-equity behemoth.

https://www.vanityfair.com/news/2019/07/jeffrey-epsteins-financial-black-book

In addition to traditional piano lessons, I teach jazz piano, having mastered 13th chords after studying for five years with St. Louis jazz great Herb Drury. Prior to studying with Herb, I majored in classical piano at Lindenwood Colleges in St. Charles, Missouri.

Student Brian is a former Sarasota police officer and certified alligator wrestler. Brian plays by ear. I taught him some music theory.

Finally, we have Robert, brother to the five year old pictured above, Robert is playing a Sarabande at The Springs skilled care facility. I wish I could take credit for Robert’s brilliant ability, age 9, but I was his interim piano teacher while his piano teacher recovered from surgery. Robert speaks Polish and English. His piano teacher speaks Russian. The Springs activity director, who arranged our venues, was at her wit’s end trying to get rid of her Westgate timeshare. 

Pictured above Robert playing a Handel Sarabande at The Springs

Thank you if you are still reading. It is my hope this narration may convince timeshare power brokers and potential donors that I am not the kind of person to hustle law clients in exchange for great financial gain.

Never in my wildest imagination did I think answering the phone and responding to emails from infuriated timeshare members would lead to this. Who would have thought referring to any law firm, when asked a legal question that I was not legally able to answer, or because the timeshare member did not have the time or temperament to self-advocate, would be described illegal or immoral?  

Thank you to all donors. It is painful to have to ask for money from timeshare members already financially distressed because they made the mistake of buying timeshare points that led to their insolvency. By directing the vast majority of over 700 Diamond members to Diamond, as opposed to an exit company provider, or to an attorney, I probably saved Diamond and the members a fortune in legal and arbitration fees. Another way of saying no good deed goes unpunished:   

My Inside Timeshare September 24, 2019 article explains the subpoena.

https://insidetimeshare.com/the-tuesday-slot-49/

We seek to provide timeshare members with a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market, and to educate prospective buyers.

https://www.facebook.com/timeshareadvocategroup/

https://tug2.com/Home.aspx

https://www.barnesandnoble.com/w/everything-about-timeshares-wayne-c-robinson/1129749757?ean=2940161600962

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

https://www.facebook.com/groups/180578055325962/

Wyndham Facebook

https://www.facebook.com/groups/376743609795740/

Wyndham Carriage Resorts Facebook

https://www.facebook.com/groups/CHCROwners/

Sapphire Starpoint  https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

Gold Key Facebook

https://www.facebook.com/groups/1639958046252175/

Inside Timeshare Facebook

https://www.facebook.com/insidetimeshare/

Inside Timeshare Facebook Group

https://www.facebook.com/groups/2213231165610648/

Thank you, Irene and thanks to all who have donated so far, there is still a long way to go but with your help, the target will be reached. In the time I have known and worked with Irene she has selflessly put others first, I have on many occasions spoken with her and given her encouragement to lift her spirits. Inside Timeshare calls on all our readers to now help her in her hour of need. Thank you.

That is it for this week, join us again next week for more on news and information on the murky world of timeshare. Have a great weekend. 

Friday’s Letter from America

Welcome to another edition of our regular Letter from America, today we welcome another contribution from our very own Secret Shopper Coordinator Pete Gibbes. In his article, he explores and gives his insights into Apollo Global Management and the buyout of Diamond Resorts in 2016. Inside Timeshare ran a series of articles on this subject at the time but Pete has a better understanding of this and explains it in a very simple and easy manner.

A Tiger can Change his Diet – from Junk Bonds to Timeshares

A junk bond has some value, but Diamond points have no resale value 

New York-based Apollo was founded by veterans of junk-bond pioneer Drexel Burnham Lambert. The firm is known for its willingness to make aggressive, sometimes contrarian, bets. April 20, 2018

https://www.wsj.com/articles/apollo-plans-to-take-diamond-resorts-public-1524222000

By a Pete Gibbes, MBA, CFA

August 2, 2019

Over a year ago, I filed a complaint against a Diamond Resort sales agent. Buying Diamond points has caused our family considerable anguish. We have lost about $60,000 we can’t afford to lose. The public must be made aware that anything a timeshare sales agent says must be verified to be believed.

https://insidetimeshare.com/the-tuesday-slot-23/

I have 20 years’ experience in the investment industry. I worked as a portfolio manager for a firm that caters to high net worth individuals, foundations, endowments and retirement plans. The firm I worked for currently has $2.9 billion under management. I have an MBA, a CFP (inactive) and a CFA (Chartered Financial Analyst).

Thinking about how timeshare has evolved from a hard asset to ethereal points, I wondered why Apollo Global Management, the third-largest equity firm, would be so interested in timeshare. Venture capital is typically associated with fast-growing companies and start-ups, like high tech or biotechnology, rather than a mature industry like timeshare. Apollo acquired Diamond in 2016.

One need not look for the answer any further than Wikipedia. History provides the answer. Apollo’s predecessor company was Drexel Burnham Lambert. DBL filed for bankruptcy in the 80s after incurring a $650 million fine over a junk bond scandal that sent Michael Milken to jail for securities fraud. Apollo probably isn’t allowed to deal in junk bonds anymore.

https://en.wikipedia.org/wiki/Apollo_Global_Management

Apollo simply reinvented their lending by switching to timeshare. Timeshares provide an even better return (to private equity and stock investors) due to the fact Diamond points are worth nothing on resale. A junk bond is a lower-rated bond, and, like a sub-prime mortgage, has some value. When Diamond takes points back, the turnaround to resell is quick since foreclosure is non-judicial. It takes less time to foreclose on points than it would on a hard asset like a house or a fixed week timeshare that is defined as real estate. Diamond points are not deeded.

After taking Diamond private in 2016, an Initial Public Offering was planned for 2018. For some reason, the IPO did not materialize. The IPO was expected to generate over a billion dollars of profit for Apollo.

From the Wall Street Journal:

By Maureen Farrell (from the article linked above)

Updated April 20, 2018 10:11 a.m. ET

Private-equity firm Apollo Global Management APO -0.58% LLC is preparing to take Diamond Resorts public in the coming months, according to people familiar with the process.

The timeshare resort company has filed confidentially with the Securities and Exchange Commission and is expected to start trading in June or July (2018), these people said. Apollo could seek a valuation for Diamond Resorts of around $4 billion and aim to raise in excess of $500 million in the offering, though price expectations are moving around, according to people familiar with the process.

If Apollo moves forward with a listing this summer, it would come less than two years after the firm closed its $2.2 billion purchase of Diamond Resorts in September 2016. That would mark the latest quick move by Apollo to put one of its recently purchased companies back into public markets.

Our oral representations:

The only proof we have is the “S3” and “G2” our Virginia sales agent noted on the illustration below. We owned 11,500 Diamond points prior to our downfall. Mark said that if we became ‘Silver’ Loyalty members at 15,000 points, we would have the OPTION to SELL 15,000 points back to Diamond after three years (December 2019) for an estimated $108,000. If we increased our points up to ‘Gold’ loyalty level, we would be able to exercise this type of option after two years. Mark wrote $108,000 on a separate piece of paper.

Diamond’s Clarity™ Promise

While other companies make promises, we deliver. This is Diamond RESPECT:

Transparency

  • We will provide clear, concise and consistent information at our presentations so you can easily decide whether committing to vacation ownership is the right decision for you and your family.

I was sceptical when Mark presented this because I had not heard of a buy-back program. I asked Mark, “How in the world can Diamond offer to buy back our points for more than the total amount of all shares purchased? “Oh, it’s because Diamond makes a lot of profit on points sold to you, as well as maintenance fees over the years. Plus, they can recycle the points,” Mark explained. This made sense. Mark explained the program in astonishing detail.  

While we are stuck, both disabled, with points we bought to make a small profit, Apollo will rake in over $1 billion if the IPO comes to fruition.

In summary

A timeshare sales agent can earn over $2 million a year selling timeshare points that have no value on the secondary market. If deceived, a timeshare company can dismiss oral misrepresentations with “You signed a contract” or “We are not responsible for what sales agents say.” Some state regulators second the dismissal. This equates to no regulation. The buyer is stuck with a perpetual contract and no secondary market. A viable secondary market is mentioned as a risk to stock investors.  

What can we do? Continue to reach out to lawmakers, the media, regulators, hoping someone, someday, will shed light on the unfairness of the oral representation clause. 

Join our efforts to promote our clear, concise message.

A buyer cannot rely on a word a timeshare sales agent says

Without recording the sales presentation, you have no proof. This assures sales agents that they can continue without reprisal. 

Our Diamond self-advocacy Facebook, launched by an economics professor, has over 3,300 members.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

We seek to provide timeshare members with a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market, and to educate prospective buyers.

https://www.facebook.com/timeshareadvocategroup/

https://tug2.com/Home.aspx

https://www.barnesandnoble.com/w/everything-about-timeshares-wayne-c-robinson/1129749757?ean=2940161600962

Free at Last Facebook

https://www.facebook.com/groups/623703881470577/?ref=share

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

https://www.facebook.com/groups/180578055325962/

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Gold Key Facebook

https://www.facebook.com/groups/1639958046252175/

Inside Timeshare Facebook

https://www.facebook.com/groups/2213231165610648/

Related article:

“On June 26, 2016, the Diamond Resorts board voted in favor of the company’s sale to Apollo. But Cloobeck abstained from that vote. In not one, but two board meetings, Cloobeck said that he was abstaining because mismanagement of Diamond Resorts had negatively affected the sale price and it was therefore not the right time to sell the company.

Diamond failed to inform the stockholders of the reason for Cloobeck’s abstention:

https://www.diamondresortswatch.org/apolloreport/?fbclid=IwAR2KkrjqipLB2htnjo208yzsfyvwO6OrsB-r4AbB616IIhMhvbZoritZzeg

Highlight the link above right click and select go to.

Thank you Pete for all your hard work on behalf of all our US readers including the coordinating of the Secret Shopper program.

If you would like any information on becoming a Secret Shopper contact Inside Timeshare using our contact page and we will pas it on to Pete. This is a very important program as it helps to spread the word and warn others of what to be aware of and how to avoid the pitfalls of “UPDATE MEETING”.

Have a great weekend and join us again next week. 

Friday’s Letter from America

Welcome to this week’s Letter from America, today Patty Boyak who has been attending court on behalf of Inside Timeshare reports on the verdict in the trial between Candace Czarny and Hyatt for unfair dismissal. Unfortunately, it is not the result that we had all hoped for. We then go on to report on seven more complaints against a Diamond Resorts sales agent in Las Vegas and five against another Diamond sales agent in California. These complaints are becoming all too frequent with Inside Timeshare receiving them almost on a daily basis, yet the timeshare companies do nothing and continue to allow their sales agents to behave in this despicable manner.

Now on with Patty’s report.

Former Hyatt Timeshare Sales Executive Candace Czarny v Hyatt Residential Marketing Corporation and Kent and Allison R. Drysdale

CASE NO.  CV2013-006230

Jury Trial Verdict

Seven complaints against our Diamond Resorts Las Vegas sales agent and five complaints against our California agent 

By Patty Boyak

July 19, 2019

In the trial of Candace Czarny v Hyatt and Kent and Allison Drysdale, the jury ruled in favour of Hyatt. While the verdict was a profound disappointment for Candace, when God closes one door he often opens another.

In 1991 Anita Hill got dragged through the muck of Senate hearings after accusing U.S. Supreme Court nominee Clarence Thomas of sexual harassment. She didn’t want to go public, but knew in her heart she needed to speak out about actions she felt were inappropriate for a Supreme Court justice nominee. A movie was made about her humiliating ordeal. At the end of the movie, the wrap-up listed the positive consequences because of her efforts. Nationwide revisions to antiquated sexual harassment policies and procedures ensued.

To be honest, having listened to a week of testimony, I felt Candace had at best a 50/50 chance. She had only worked in the timeshare industry for 17 months. However, Candace scored a major victory in court for timeshare members, assisted by other witnesses, and Hyatt’s attorneys provided landmark evidence or lack of:

THERE IS NO LETTER!  

The reason this is so important is that so many timeshare complaints begin with, “They said I should have gotten a letter.” This statement is reported by many Diamond members, including a disabled veteran who caught deception on a recording. Understandably, his dispute was quickly resolved. We experienced the same agent but were told another member’s complaints had no bearing on our complaint.

If you listen to the recording, most would conclude this agent should have been fired. Instead, he introduced himself to us a year later as a Platinum Counselor, and just a few weeks ago, our group received complaint #7 against this agent.

Defendant Kent Drysdale was Hyatt’s Director of Training, but some of the deceptive practices described in Candace’s lawsuit (like the letter), were the same practices members complained about during the Arizona Attorney General’s investigation of Diamond Resorts in 2016. Mr Drysdale was the Director of Training for Diamond prior to being recruited by Hyatt. Arizona Attorney General Mark Brnovich issued an Assurance of Discontinuance against Diamond Resorts after the AG’s office received hundreds of complaints from Diamond members.

A “deceptive price freeze” demands the member buy points the same day or loose special pricing. In the case of the veteran who recorded our Diamond sales agent, not only had the veteran repeatedly asked for his driver’s license and credit card back over two hours of a five hour ordeal, he was told that because he “didn’t get the letter” he was not grandfathered in for a special price after Apollo Global Management had acquired Diamond. Alaa stated this meant they would have to pay enormous maintenance fees over the next ten years unless they purchased additional points. As this dispute quickly resolved, we will not identify the buyers or link the article published about their dispute.  

Thank you, Candace!  

Those of us whose families have been harmed by timeshare sales agents, now have proof of deceptive and unfair practices because Hyatt’s attorney could not produce the letter. One of the members of the jury had asked where it was. There were 200 exhibits. Two letters hastily produced at trial, but neither had anything to do with a prior letter the member was supposed to have received.    

I would like to share our Diamond Resorts experience so consumers may understand how the decked is stacked against the consumer. Of the 913 complaints our advocacy group has received, 115 are veterans and active duty service members. My husband is a Navy veteran.

Our Timeshare Accountability Group™  members share experiences in an effort to expose timeshare sales agents that have had multiple complaints filed against them. Including the veteran and our family, a total of seven complaints have been received, directed against Las Vegas sales agent Alaa C, and five complaints against California agent Trevor W. We purchased from both agents!

I have asked Inside Timeshare to publish our complaint submitted to the California and Nevada Real Estate Divisions hoping to reach lawmakers who, in recent Arizona legislation, bent to the will of ARDA lobbyists. ARDA’s position is that a state should not take responsibility for those who did not bother to understand the product and Arizona Senator Michelle Ugenti-Rita was quoted, “These people are adults. There was a meeting of the minds and they signed a contract. They should take responsibility.”

I’d like for ARDA lobbyists and lawmakers to read five complaints against the California agent in today’s article, and the seven complaints against Nevada agent Alaa C (to be published next Tuesday) to understand the kinds of minds that meet.            

Five complaints against California Diamond sales agent Trevor W and Principal Broker Peter M

Trevor W complaint #1 A Senior in her mid-70s

Trevor W complaint #2 Brandon and Patty Boyak

Trevor W complaint #3 A Navy veteran

Trevor W complaint #4 Reported complaint but did not buy

Trevor W complaint #5 A senior age 75, resolved 

Trevor complaint #1 Platinum Member #80 of 101, age 75

April 10, 2019

My mother lost her entire retirement annuity of $350,000, plus maintenance fees are $20,000 so almost $400,000. She was switched back and forth five times over six transactions.  (Highlighted in red are agents Inside Timeshare received multiple complaints against):   

Everything was okay until May 2015 when Rick C transferred her points to the US from Hawaii, which cost $42,000. September 2015 she was switched back to HI by Paul M for $33,000. April 2016 HI points were switched back to the US at Mystic Dunes in Orlando, by Angelica S. In March 2017 she was switched back to HI by Ras for $38,000. November 2017 Palm Canyon Resort $80,000 bought points from Trevor W. October 2018 Billie B and Fred K transferred points back to the US telling her she would be able to pay maintenance fees costing $45,000. In Hawaii, one of the brokers said he has a broker who could help her rent points (which is not allowed for-profit) to get her money back and in the future, her points could be sold back to Diamond. 

She did not buy a second time March 2019 from Paul M. Paul said she should switch back to HI because there was going to be a huge Special Assessment in the US if she didn’t switch back to Hawaii for $63,000. She ended up with 100,000 US Collection points and $17,000 in annual maintenance fees

Trevor complaint #2 Platinum Member #28 of 191

July 6, 2019

Brandon and Patty Boyak

Our complaint is against CA Diamond Resorts sales Agent Trevor W.  

We purchased 17,500 points October 21, 2017, from Trevor at Palm Canyon Resort in Palm Springs, CA for $72,850.

Consumers need to know there is nothing to prevent timeshare fraud without a recording because proof is required. I spoke to attorneys to ask what constituents proof. I was told a pattern of complaints serves as a form of proof.  This is why we are gathering complaints.    

Peter M, Principal Broker California  

Trevor W said if we became Platinum “members” as opposed to “owners” we would be eligible for a program to sell points back to DRI at $0.30 per point. He explained this as a buyback program available only to Platinum members. We had never heard the term “member” before.  Trevor explained that by becoming a member we would lock in our maintenance fees, preventing them from increasing at alarming rates over the coming years. There is no such thing as member or owner points.

We never attempted to sell points back at $.30 because we missed the window period. Trevor explained that we had to turn in points by November 30 and we had to have 20% of our loan paid to be eligible for the maintenance fee buyback program. In no way would we have 20% of the loan paid in such a short time. This avoided the rescission period.  We were already aware of a travel discount program called 30/30. We did not know at the time only Platinum members can pay maintenance fees at $.04 per point, a worthless benefit because 50,000 points turned in at $.04 a point would cover only $2,000 towards an $8,631 maintenance fee bill (in 2018).

Trevor explained that as soon as a buyer makes an initial purchase of Diamond points, they become an owner.  Any new purchaser is considered an owner, but once we became Platinum we would become a Diamond member. He reminded us that we were considered “owners” because of our past Monarch affiliation.

We had five contracts prior to this meeting. This would finally give us true Platinum Member status with DRI.  The contracts were not wrapped.

Trevor Complaint #3 #78 of 101

A Navy veteran (retired), age 69

April 5, 2019

To: Michael Flaskey, CEO

Maria Kalber

ARDA

ARDA ROC

Barclay’s Bank

January 28, 2018

Points purchased: 1,500

We attended a presentation at a hotel on January 28, 2018.  Mr R. He said it would be better if we were to upgrade to Platinum because then we would be able to use our points to pay maintenance fees. I explained that we did not have the resources to upgrade. After several hours we agreed.

September 4, 2018, NV

Points purchased: 16,000

Sales Agent: Mr J Trevor W

Manager: Mr Matthew G

Purchase price: $48,000

September 4, 2018, we met with Trevor W. Mr W went over our account and stated that we were only a temporary platinum member and that we could not use our points towards maintenance fees.

I recall being told several times that if we were to upgrade to Platinum it would be an investment that we could pass to our children. He said if our children did not want the timeshare in the future they would be able to say that they did not want it or that they could sell points to pay maintenance fees.

Mr W asked us how we were able to purchase our existing points at such a low price because the price for points now was much higher.  He left to talk to his manager and came back stating that they would honour the low point price but if we waited the price would be substantially higher, somewhere in the range of 9 dollars and that they would increase soon in the future.  It was again mentioned that we would be able to use our points to pay maintenance fees by selling points. He said we would be able to sell our timeshare points outright in the future, but not at the present time.

Mr W said he would assist me in using Barclay Card points and Platinum exchanged points to pay maintenance fees. Mr W gave me his cell phone number and told me to call him towards the end of the year and he would assist me with the process.  Mr W never returned calls. After contacting customer service I found out that the point conversion was so small it would not make a dent in the liability. I did not find this out until I was billed for maintenance fees and attempted to pay the fees via points.   

 I have learned members are not required to attend presentations unless accepting a promotion. This also is deceptive to be told an update is required when it is not. Diamond points are worthless on resale. 

A senior, age 73, who did not buy from Trevor  

Trevor Complaint #4 Platinum member #85 out of 101

At Palm Canyon CA Trevor showed me a graph of maintenance fees showing maintenance fees increasing. Trevor had said that the way my contract with Al C had been written, my maintenance fees were at a higher rate of increase. Al had told me my maintenance fees would be at the lower rate of increase, but Trevor explained that because of how C wrote the contract I was at the higher level because C wrote the contract as an owner contract and not a member contract. He explained that there is a difference between members and owners in terms of how much you pay in maintenance fees. However, I bought non-deeded Diamond points from Al, so what he sold me was a membership. He said C made more money selling owner points.

Trevor waived the maintenance fee graph in front of me and said, “I know you are telling me the truth because there would be a signature acknowledging receipt in your file”. I asked Trevor for a copy of the contract history he was reviewing, but he said he could not give this to me. Trevor said the only way to fix the problem C caused was to buy more points for $125,000. Had I believed Trevor’s nonsense about buying ownership and not membership points, I would have been driven deeper into debt. I would be another Platinum member-driven into foreclosure.

Trevor also presented the misrepresentation about heirs saying that my heirs would be responsible if I did not buy an additional 75,000 points for $125,000.

Trevor, and a second agent, Brad G, said I could get out of the owner status and go to “member status” if I made the purchase.  Trevor assured me if I bought the points, I would then have the lowest maintenance fees. He told me I would need to do this to take care of the mess C had created.

Trevor and Brad acknowledged that “middle easterners at Cancun” in Las Vegas often made these mistakes. They thought Al was one who had put another person in a bad situation, but they would call Mike B to see if they could help me. Trevor agreed that Al had sold me a bait and switch.  Trevor and Brad also stated that Al had sold me 7000 more points than I needed to reach platinum status.

In the end, I did not feel that I could trust Trevor. I asked Trevor for a copy of his proposal that he had written down so I could talk to my financial advisor. He would not give it to me. I said I had to talk to my family because they had been waiting for hours. My friend and daughter-in-law returned with me and said that I was not going to sign anything. Trevor got nasty and said, “I resent you coming in here at the last minute giving advice.”

I also was told that unless I bought the new points from Trevor I could not sell my points.  If I did buy the points from them, Diamond would give me a list of members to whom I may sell. Diamond points are worthless on resale.

Besides ruining my afternoon with my family for my grandson’s birthday, I was a mental wreck.  When I returned, I told the two men that I didn’t have enough funds to make the purchase. I asked for more time so I could talk to my financial advisor who was not available by phone.  Trevor denied that request. He said I had to sign right then. He said if I signed I had 7 days in CA to cancel the contract. 

Trevor Complaint #5

A senior, age 70, Diamond Platinum member #90 of 101

June 5, 2019

To Michael Flaskey, CEO

Hospitality

Barclay’s President’s office

ARDA ROC

California Real Estate Division

Peter M

Trevor W

On 4/22/19 in Palm Desert, I went to an “Owner Update” with Platinum specialist Trevor W.  I had previously been assured that since I already owned 90,500 points, I was well in excess of the 50,000 points needed to be Platinum. I am 70 years old and have no children. The timespan and need for points are limited. Trevor launched into an explanation of why I had to buy additional “membership” points because the prior Hawaii sales agent had fraudulently, or at least mistakenly, sold me “owner” points due to inadequate training.  

I explained to Platinum specialist Trevor W that my only goal was to find a way to SELL my points, and also to make absolutely sure that Diamond could NOT attach my estate because my heirs did not want the points. 

Trevor explained that my points were essentially worthless, that there was no market for them because of the type of ownership category I held. He explained that the points that I owned, on the secondary market, would have none of the myriads of benefits like travel reimbursement for air and hotel, or access to other features. The buyer could only access specific Diamond-owned properties. 

The Hawaii sales agent said that Hawaii points were the premium to own and in huge demand by buyers. They explained that Hawaii points have a limited supply, so I could use them and then easily sell them. In fact, they said Diamond itself would likely buy them back because they were running out of property in the tight Maui market. 

Trevor pretended to be disappointed that I was sold a pack of lies, and implied that the Diamond rep knew the Hawaii points had no resale value. He said the rep should have disclosed this fact about worthless “ownership” points, worthless even when sold in Hawaii. I was really discouraged. Trevor posed as my friend, sorry to have to explain this to me.

Trevor offered a solution. Apollo owned Diamond, and Apollo was going public in the next couple of months. He said Apollo wanted Diamond to be clean as a whistle to have a stellar rating and reputation. Many owners had complained about not being able to resell, so Apollo had created a new class of ownership called “membership” which entitles a future buyer to all the Platinum benefits of my points. The maintenance fees for “owners” were going to skyrocket, compounding every year. He showed me a horrifying chart showing maintenance fees growing to a million dollars in aggregate over 20 years.  But the “membership” category would be capped. This would result in huge savings over time.

Trevor said the terms of the public offering SEC filing by Apollo mandated that points had to be sold at a base rate of slightly over $11/point. No more bargaining. Trevor said there were scores of Platinum buyers clamouring to buy points, as they would not want to pay the new rate, creating a hot market to sell points to those who had previously purchased “ownership” points like I had been mistakenly sold. Trevor said he would give me a list of buyers with their emails once Apollo went public. Of course, it would be up to me to make a private party agreement.  We had an elaborate discussion about what my average cost per point would be – about $4.50. 

Trevor said he had recently purchased points, knowing he could sell them back at a profit. Being leery, I said I wanted to see his purchase contract, which he said was at home, so on speakerphone, he called his wife to ask her to fax it.  She answered, such a sweet voice, and said she was at the market, but would send it as soon as she got home. So we took a break, as we’d been talking for hours. The break stretched to an hour. When we reconvened Trevor showed me his purchase contract. It must have taken an hour to make the mock purchase contract, backdate it, and have it faxed.

The hook was lowered.  I would be required to buy 25,000 points at $112,500 in order for Diamond to convert all my “ownership” points to “membership” points.  I was shocked at the dollar amount. It was like betting on the come, but it seemed the only way out. In about 2 months, Apollo would go public and Trevor would give me a list of eager existing Platinum owner-buyers. As I stalled, exhausted and discouraged, Sales Manager, Bradley reassured me.

I signed the purchase contract with misgivings, and explained to the contract/quality control guy (who said he was there to protect me from any misleading sales practices), that I was forced to buy points in order to be able to sell points in the near future and at least break even.  He didn’t blink an eye, which was reassuring. 

During this process, a loved one was rapidly sinking into dementia/Alzheimer.  

Members and current and former timeshare sales agents like Candace can help by joining forces with others seeking to reform timeshare. Sign this petition for reform to let your voice be heard, and join one of these self-help groups.

https://www.change.org/p/state-legislators-in-arizona-florida-and-nevada-demand-reform-of-the-timeshare-industry-s-unfair-and-deceptive-practices

We seek to provide timeshare members with a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market, and to educate prospective buyers.

https://www.facebook.com/timeshareadvocategroup/

https://tug2.com/Home.aspx

https://everythingabouttimeshares.com/consider-exchange-options/

Free at Last Facebook

https://www.facebook.com/groups/623703881470577/?ref=share

Free at Last Timeshare Support Course offered by Straight-A-Guide

https://www.udprep.info/june

Bluegreen Facebook

https://www.facebook.com/groups/180578055325962/

Wyndham Facebook

New: https://www.facebook.com/groups/376743609795740/  

Sapphire Starpoint New: https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fgroups%2F292083584642570%2F%3Fref%3Dshare

Diamond Resort Facebook

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

Gold Key Facebook

https://www.facebook.com/groups/1639958046252175/

Inside Timeshare Facebook Group

https://www.facebook.com/groups/2213231165610648/

Once again thank you Patty for taking the time to attend the trial and submitting your report, itjust unfortunate that it was not the result that Inside Timeshare and our readers had hoped for. We must also give Candace a very big thank you for having the courage to take on the big boys, we all hope that you will now move on and rebuild your life.

If you have any comments or views on this or any other article published, please do use our contact page and let us know.

That is it for this week, have a great weekend and join us again next week.