Just last week in the Sun Sentinel, Miami, I read that in a company named Mega Media, employees were being charged by the U.S. Attorney with criminal charges of wire fraud. The company was in practice of re-sales of timeshares. Some of the allegations are that the employee’s of this company were claiming they had buyers lined up to purchase timeshare units that were for sale and in fact, did not.
The sellers of timeshares were told the closing dates had changed multiple times; the tactics according to the U.S. Attorney was to delay processes so that the sellers could not claim refunds of the monies they paid for the sales services. These Federal charges are serious and if each person involved is convicted they may be facing up to five years of prison time and fines of up to $25,000.00 each.
The Federal Trade Commission has also filed suit against the company with the implications that the company was fraudulently operating in the procedure of timeshare sales. In this economy no one can afford to be defrauded, yet we have brokers who commit securities fraud and lose investors’ assets every day. Miami Beach, Fort Lauderdale and Palm Beach are prime locations for vacationers and many use the timeshares as a great investment, but you need to watch your investment and know who you are dealing with. Broker misconduct and mortgage backed securities are one of the many ways you can get scammed into thinking you own something and later find out you have lost it all.