Permanent Injunction Will Prevent Missouri-Based Companies From Using False Advertising to Mislead Members and the Public
OCT. 12, 2020 (LAS VEGAS, Nev.) – Diamond Resorts®, a global leader in the hospitality, vacation ownership and entertainment industries, announces the successful resolution of a lawsuit it brought against several companies accused of misleading timeshare owners. Diamond has obtained a permanent injunction against Kyle Brown, Martin Brown, and five business entities they own or operate – Exchange Points Club, LLC, Premier Rewards, LLC d/b/a Member Perks, LLC, VMG Resorts LLC, Vacation Management Group, LLC, and Owner Extras LLC.
The case – Diamond v. Exchange Points, et al., which was filed in the United States District Court of Nevada – was brought in response to activities by defendants in which they were accused of:
- Engaging in an advertising campaign directed at Diamond Resorts® members that falsely suggested an affiliation with Diamond Resorts® so as to trick members into turning over control of their vacation points.
- Renting out the use of Diamond Resorts® points to their own customers by falsely presenting themselves as authorized distributors of vacation stays at Diamond Resorts properties.
- Charging Diamond Resorts® members a substantial up-front fee for the “service” of renting out their vacation ownership points, even though Defendants have no authorization to do so.
“We believe that this scheme was designed to deceive our valued members,” said Mike Flaskey, CEO, Diamond Resorts®. “We hope this case sends a clear message that Diamond Resorts will do everything in our power to protect our members.”
As a result of a permanent injunction entered by the court, the Defendants are prohibited from soliciting Diamond Resorts® members, advertising to the general public any products or services related to Diamond Resorts®, selling access to any of the Diamond Resorts®, renting out the use of Diamond Resorts® points on behalf of members, and claiming or implying any affiliation with Diamond Resorts®. The permanent injunction is preceded by a preliminary injunction awarded by the Court last July against several of the defendants.
Businesses fraudulently targeting timeshare owners have been particularly rampant in Missouri. In July, Missouri Attorney General Schmitt announced that his office filed a lawsuit against Brian Scroggs and the so-called timeshare exit companies under his control: Vacation Consulting Services LLC, VCS Communications, LLC, The Transfer Group, LLC, and Real Travel L.L.C for defrauding consumers. According to the complaint, customers rarely received the services they were promised by Scroggs despite paying large fees and many customers were left in financial peril after following his companies’ misleading advice. In February, Schmitt filed a lawsuit against Martin Management and its owner Steve Martin. According to the lawsuit, despite paying Martin Management for timeshare exit services, consumers claim the company never delivered the promised services.
While the vast majority of members enjoy their vacation ownership, Diamond Resorts® also understands that life circumstances can change and provides options for members seeking to safely modify or leave their vacation ownership behind. To learn more about red flags and report possible fraudulent third-party exit activity, visit TimeshareCancellationAwareness.com.
About Diamond Resorts
Diamond Resorts® offers destinations, events and experiences to help members make a habit of breaking from the routine. From unforgettable getaways to exclusive concert series to VIP receptions and dinners, members turn to Diamond to recharge, reconnect and remind each other what matters most. Our focus on quality resorts, customer service and flexibility means members can return to a favorite resort, book a cruise to explore new countries or attend a once-in-a-lifetime event with the same level of confidence and anticipation. With access to a world of entertainment and activities, a Diamond membership ensures that people are always looking forward to vacation.
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