News Releases

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.

Media Contact

John Eddy
212-319-3451, ext. 648
john@goldin.com

Diamond Names 13 Defendants, Continues to Expose Unscrupulous “Cancellation” Companies Preying on Timeshare Owners

SEPT. 23, 2020 (Las Vegas, Nev.) – Diamond Resorts^®, a global leader in the hospitality, vacation ownership and entertainment industries, has filed a lawsuit against a ring of so-called timeshare “exit” companies for allegations of fraudulent business practices and false advertising. The 13 defendants are based in Florida and Nevada and include Timeshare Freedom Group, Jordan Salkin, Shayna Schroeder, John E. Mortimer, Frank Silva, Harold O. Miller, Michael A. Molfetta and William Saliba. The lawsuit alleges that the defendants use false and misleading advertising to convince timeshare owners to stop making payments on their timeshare contracts, while charging the unsuspecting victims thousands — sometimes tens of thousands — of dollars in upfront fees in exchange for no legitimate service.

The Diamond Resorts complaint outlines how these Defendants falsely present their timeshare exit services as a “legal” solution. This lie is supported by the use of lawyers and “law firms” to inaccurately suggest the active involvement of a licensed attorney. However, according to the lawsuit, the “exit” services offered by these companies amount to nothing more than instructing timeshare owners to cease making payments. These companies do not deliver on their promises to help timeshare owners out of their contracts, but instead charge thousands of dollars to drive owners into financial jeopardy and foreclosure, according to the lawsuit. 

An Elaborate Ring Designed to Deceive

Diamond Resorts is warning its owners not only about the illusory services offered by these companies, but also about the deceptive way in which they collaborate to mislead and profit off of timeshare owners. According to the lawsuit, the timeshare cancellation ring operates as follows:

• Nevada-based Timeshare Freedom Group purports to provide timeshare cancellation services and is owned and operated by defendant Jordan Salkin. Timeshare Freedom Group promotes several of the Defendants’ “legal” cancellation “process” as part of false and misleading advertising targeted at timeshare owners. Timeshare Freedom Group then splits the large upfront fees it receives from deceiving timeshare owners with the other Defendants.
• The owner of Timeshare Freedom Group, Jordan Salkin, currently refer timeshare customers to Michael A. Molfetta, attorney for Jordan Salkin in an unrelated criminal matter.
• Defendant Michael A. Molfetta, a criminal defense attorney in California, has represented Salkin as his attorney in the criminal cases. Molfetta and his law firm, Molfetta Law, also play a major role in the timeshare cancellation scheme by either sending perfunctory letters of representation, or allowing his name and signature to be used for such letters sent by the other defendants, to Diamond on behalf of numerous unsuspecting owners.
• Defendant John Mortimer operates the timeshare exit business d/b/a Middle Earth Sales and Service and Middle Earth Ltd. Mortimer is one of the key operators of the Defendants’ scheme and handles “referrals” to the “law firms” that are used to create the false appearance of a “legal process.” According to Diamond’s lawsuit, however, the work is done by people who are not lawyers, such as Mortimer himself, and the attorneys involved fail to provide their clients with adequate representation.
• William Saliba, yet another attorney involved in the scheme, who was the sole officer of Solomon Cross, a Florida corporation with a principal place of business in Lake Worth, Florida until it was dissolved by Saliba in January 2020. Although Solomon Cross was not a law firm, it presented itself as one in communications with timeshare developers on behalf of timeshare owners referred to it through Defendants’ scheme. 

Diamond Resorts reminds its owners that Attorneys General are also warning consumers and working to stop the deceptive acts of these so-called timeshare “exit” companies. In addition to Washington Attorney General Bob Ferguson’s lawsuit against Timeshare Exit Team, Missouri Attorney General Eric Schmitt has filed a lawsuit against Brian Scroggs and the following timeshare exit companies under his control: Vacation Consulting Services LLC, VCS Communications, LLC, The Transfer Group, LLC, and Real Travel LLC, as well as a lawsuit against Martin Management. In 2019, Arkansas Attorney General Leslie Rutledge filed a consumer protection lawsuit against Brian Scroggs, Bart Bowe and their company Real Travel LLC for violations of the Arkansas Deceptive Trade Practices Act. Numerous other agencies have also warned consumers about timeshare cancellation companies, including the Better Business Bureau (BBB). 

Diamond Resortsencourages timeshare owners who may be interested in adjusting their contracts to contact their developer for options. To learn more about red flags and report possible fraudulent third-party exit activity, visit TimeshareCancellationAwareness.com or ResponsibleExit.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.

Nightmare on “Exit” Street: According to Lawsuit Filed by Diamond Resorts, Couple Paid So-Called Timeshare Cancellation Companies Thousands of Dollars & Received No Legitimate Service, Only Financial Ruin

SEPT. 15, 2020 (LAS VEGAS, Nev.) – Diamond Resorts®, a global leader in the hospitality, vacation ownership and entertainment industries, and victims of a timeshare “exit” scams are warning timeshare owners not to work with fraudulent third-party exit companies. Diamond has filed a lawsuit against Newton Group and DC Capital Law Firm, LLP for allegations of false advertising and fraudulent business practices. As part of its complaint, Diamond alleges that the Newton Group deceived former timeshare owners into purchasing illusory timeshare exit services. 

According to Diamond’s lawsuit filed through the Superior Court of the District of Columbia, Paul and Diane Reeves were first introduced to the Newton Group in 2017 when they heard radio advertisements claiming that the company had a “safe and legal” process to help owners out of their timeshare contracts. The Reeves also received a mailer from the Newton Group warning that there were new timeshare laws that allow developers to increase maintenance fees “with no restriction.” 

This advertisement is undeniably false, as there were no such new timeshare laws, and it was designed solely to scare timeshare owners. The Reeves contacted the Newton Group and attended a presentation where they were promised a legal exit from their interest with Diamond Resorts – a promise supported by a 100% money-back guarantee. The Newton Group also told the Reeves that the exit would be completed within a year. None of these promises were true.

But, based on these false claims, the Reeves paid the Newton Group over $6,000 in upfront fees and waited for confirmation of their exit. In the interim, the Newton Group “hired” DC Capital Law Firm, LLP, and they both told the Reeves not to communicate with Diamond and to stop paying their financial timeshare obligations. Unbeknownst to the Reeves, DC Capital sent Diamond a letter demanding that Diamond stop communicating with the Reeves, in order to conceal from the Reeves the true status of their timeshare – which was default and foreclosure, due to the lack of payment. Despite Diamond sending delinquency and default notices to the Reeves, DC Capital never provided the Reeves with this critical information. The couple had no idea about the financial ruin they faced by following DC Capital and the Newton Group’s instruction. 

Indeed, it was not until 2019 when the Reeves received an IRS tax form identifying their potential tax liability that they reached out directly to Diamond and discovered that the Newton Group and DC Capital had no legitimate legal exit process. Instead, the Newton Group and DC Capital simply allowed the Reeves to go into foreclosure and touted it as a successful exit. The couple never wanted this outcome, nor the consequent credit reporting and tax-related issues. They were also unaware that there was no reason to work with a so-called “exit” company in the first place. The Reeves could have contacted Diamond Resorts to discuss changes to their contract without paying thousands of dollars in upfront fees and negatively impacting their credit history and finances. 

After the Reeves shared with Diamond Resorts how they were deceived, Diamond was able to reach an agreement with the Reeves to provide them with relief from the credit reporting and tax-related issues caused by DC Capital and the Newton Group. Unfortunately, the Reeves are still out the $6,000 paid to the Newton Group because, despite written demands for the return of the money and the Newton Group’s 100% money-back guarantee, no refund has been issued. As part of the agreement with the Reeves, Diamond has accepted an assignment of the Reeves’ claims against the Newton Group and DC Capital and is pursuing those claims against the alleged fraudulent “exit” company and “law firm.”     

“Sadly, the Reeves’ story is not uncommon, and thousands of other timeshare owners have fallen victim to these fraudulent companies,” said Mike Flaskey, CEO of Diamond Resorts. “There is simply no need for these companies to exist other than to mislead consumers for their own benefit. Diamond Resorts and other timeshare developers offer a safe way for owners to exit their timeshare contracts without someone stealing their money. We encourage you to work with your timeshare developer directly. Save your money, protect your credit, and do not pay Newton Group or any ‘exit’ company thousands of dollars for a default and foreclosure.”   

Facing numerous lawsuits for its deceptive practices, Newton Group has made desperate attempts to separate itself from other cancellation companies, including filing its own suit against Wesley Financial, yet another cancellation company offering no legitimate service. 

While the vast majority of members enjoy their vacation ownership, Diamond Resorts also understands that life circumstances can change. Diamond encourages timeshare owners who may be interested in adjusting their contracts to contact their developer for safe and legitimate options. 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.

Country Music Singer-songwriter will Perform Exclusive Concerts for Diamond Resorts Members through Diamond Live

AUG. 20, 2020 (LAS VEGAS, Nev.) – Diamond Resorts^®, a global leader in the hospitality, vacation ownership and entertainment industries, is excited to announce that southern rock-influenced country music artist Travis Tritt has signed on as the company’s newest Diamond Celebrity ambassador.

Tritt will represent Diamond Resorts alongside a roster of celebrities, including country music artists Cole Swindell, Lee Brice, Jana Kramer, Dan + Shay, Colt Ford and Lauren Alaina.

“Travis Tritt is a legendary talent in the country music industry,” said Mike Flaskey, Chief Executive Officer of Diamond Resorts. “We are thrilled to have him join our roster of Diamond Celebrity ambassadors and perform exclusive shows for our members. Our Diamond Live concert series brings once-in-a-lifetime vacation experiences to members and invited guests, and Tritt will help us continue to bring these top-notch experiences to members.”

In 2020, the Diamond Live event platform went digital, transforming into the #DiamondLIVE @ Home concert series. Diamond Celebrities and invited musical performers including Maddie Poppe, Tyler Farr and Neal McCoy have performed exclusive live concerts from their homes to spread positivity during the global pandemic.  

For the full schedule of #DiamondLIVE @ Home events, go to DiamondResorts.com/diamond-live-at-home/event-calendar/.

About Travis Tritt

Three decades after Travis Tritt launched his music career, the Southern rock-influenced artist continues to sell-out shows and stay true and relevant to country music fans across the globe. The highly abbreviated Tritt timeline started when the young Marietta, Georgia native incorporated his lifelong influences of Southern rock, blues, and gospel into his country during a honky-tonk apprenticeship that led him to Warner Bros. in 1989. Tritt’s albums, seven of which are certified platinum or higher, led him to amass more than 30 million in career album sales, two Grammy Awards, four CMA Awards, including the CMA Horizon Award (now known as the Best New Artist Award); a Billboard Music Award for Top New Artist, an invitation to become a member of the world-famous Grand Ole Opry and a devoted fan base that has filled venues coast-to-coast. Among his eleven studio albums and numerous charted singles are nineteen Top 10 hits, including “Modern Day Bonnie and Clyde,” “Here’s A Quarter” and “It’s A Great Day To Be Alive.” Tritt’s talents, however, are not limited to music as he has also appeared in numerous feature films and TV shows throughout his extraordinary career.

Tritt recently signed to Big Noise Music Group and is gearing up for the release of a new original full-length album. An album release date has not been set. Produced by award-winning producer Dave Cobb(Chris Stapleton, The Highwomen, Sturgill Simpson), the album marks Tritt’s first studio album in thirteen years.  For more information on Travis Tritt, visit his website TravisTritt.com and follow him on Twitter and Facebook.

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.

Lawsuit Accuses Attorney Joshua Neally & Ring of So-Called Timeshare Exit Companies of False Advertising, Conspiracy & Fraudulent Business Practices

July 30, 2020 (LAS VEGAS, Nev.) – Diamond Resorts^®, a global leader in the hospitality, vacation ownership and entertainment industries, has filed a federal lawsuit against Attorney Joshua Neally (“Neally”) and his Springfield, Missouri law practice Neally Law, LLC (“Neally Law”) for allegedly conspiring with a group of nefarious so-called timeshare exit companies, and for allegations of deceptive business practices and false advertising. Neally, Neally Law, and other Missouri based entities JRD Travels, LLC d/b/a Timeshare Legal Cancellation and/or TLC Pros; RSI LLC d/b/a Relief Solutions International; and Nationwide Transfer, LLC d/b/a Nationwide Settlement Solutions are accused of charging timeshare owners exorbitant upfront fees for illusory services.

Diamond’s lawsuit alleges that these companies falsely promise a “legal” method to cancel timeshare owners’ contracts, in exchange for upfront fees typically ranging from approximately $2,500 to more than $10,000. According to the Complaint, timeshare owners are not provided any legal service by the defendants and instead are misled into defaulting on their timeshare contracts. These companies are alleged to even tout loan defaults, foreclosure or bankruptcy as a “successful exit” from a timeshare.

“Attorneys take an oath to act with integrity and to help their clients. Many of these timeshare exit businesses masquerade as legitimate legal professionals but all they really do is harm and mislead our members and other timeshare owners. Diamond Resorts is committed to stopping the fraudulent activities of so-called timeshare exit companies that often exist for no reason other than to swindle consumers out of thousands of dollars.” said Mike Flaskey, CEO, Diamond Resorts.

Deceptive Business Practices

According to the lawsuit, Neally and Neally Law frequently work with Timeshare Legal Cancellation; TLC Pros, Nationwide Settlement Solutions and Relief Solutions International using false and misleading advertising in order to obtain customers or customer referrals. This referral relationship exists to circumvent attorney marketing rules and to add false legitimacy to the Defendants’ fraudulent businesses, says the lawsuit.

These partners have even sued each other over their failure to deliver any service. In 2017, Nationwide Transfer, LLC filed a lawsuit against Neally and Neally Law, seeking a refund of fees Nationwide paid to Neally and Neally Law pursuant to Neally providing timeshare termination services Nationwide promised its customers.

According to the allegations in Diamond’s Complaint:

• Neally and/or Neally Law fail to provide any effective legal services to its clients. Instead, they send a form letter of representation to a timeshare company, requesting the timeshare company voluntarily cancel the customer’s contract without any explanation. “There is no investigation of the customer’s situation, no investigation of claims, no claims asserted, no advocacy, and no initiation of any adversarial proceeding, which would be necessary to legally cancel the contract. In other words, there are no legal services provided.”
• Neally instructs timeshare owners to stop paying fees required by their contracts and directs all debt collection notices directly to Neally. Therefore, timeshare owners are not aware of the harmful consequences of working with Neally until it is too late and they face damaged credit ratings or even foreclosure.
• The Better Business Bureau (BBB) has issued a formal “Advertising Review” for Timeshare Legal Cancellation and TLC Pros, noting concerns about the exit company’s proclaimed money back guarantee and credit protection.
• The BBB issued a formal “Alert” against Nationwide Settlement Solutions, noting a “Pattern of Complaints” regarding misleading sales presentations, failures to honor contracts, and failure to issue refunds.
• Relief Solutions International, LLC utilizes marketing companies to aggressively solicit timeshare owners for in-person sales presentations sown with false scare tactics about timeshare ownership.

Diamond Resorts^® encourages timeshare owners who may be interested in adjusting their contracts to contact their developer for legal and legitimate options. To learn more, visit ResponsibleExit.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.

Media Contact
John Eddy
212-319-3451, ext. 648
john@goldin.com

Victims of Fraudulent Timeshare Exit Companies Share Stories of Losing Thousands of Dollars in Upfront Fees in Exchange for Empty Promises

JULY 27, 2020 (LAS VEGAS, Nev.) – Diamond Resorts^®, a global leader in the hospitality, vacation ownership and entertainment industries, has released a new video documenting the disturbing rise of a deceptive and illusory so-called “timeshare exit” industry. In the video, victims of timeshare exit scams, Former Arizona Attorney General Grant Woods and Diamond Resorts CEO Mike Flaskey detail the misleading tactics of these nefarious companies and educate consumers about safe and responsible exit options available to timeshare owners.

In the video, timeshare owners report paying so-called timeshare exit companies as much as $10,000 in upfront fees in exchange for a promise to help them exit their timeshare contracts. These consumers say they lost their money and the companies failed to deliver any service.

“I just feel we were so taken and we were ashamed that we fell for any of it. It’s been two years already and I know the money is gone,” says one timeshare owner.

Watch the Video

In just the past year, Attorneys General in Washington, Missouri and Arkansas have all sued timeshare exit companies for alleged fraudulent activity. Former Arizona Attorney General Grant Woods is also featured in the video, saying, “One of the main things that Attorneys General do is protect consumers against fraud. When you look at timeshare exit companies, a lot of us feel it’s just a real rip-off.”

“To protect our members and owners, Diamond Resorts remains committed to shutting down this cottage industry and challenging its deceptive operations in court. There is simply no need for these companies to exist other than to mislead consumers for their own benefit. Diamond Resorts and other timeshare developers offer a safe way for owners to exit their timeshare contracts without someone stealing their money,” said Mike Flaskey, CEO, Diamond Resorts. 

Former Arizona Attorney General Grant Woods notes, “My advice to consumers out there is very clear, you should run as fast as you can from timeshare exit companies, they are a big rip off.”

Timeshare owners are encouraged to follow these tips to protect themselves from timeshare exit scams:

1. Never Pay an Upfront Fee

One of the hallmarks of third-party timeshare exit companies is charging thousands of dollars — sometimes tens of thousands of dollars — in upfront fees. These companies fail to deliver on their promises and instead leave customers in deeper debt and still under contract. One vacation owner scammed by an exit company warns that the exit company she worked with “kept adding more charges” despite failing to deliver any service.

2. Don’t Fall for Scare Tactics

Third party exit companies target timeshare owners with incessant telemarketing calls and false advertisements. Many of these companies will lie about an increase in maintenance fees coming from the timeshare developers or claim to have information pertaining to timeshare contracts that is often not truthful. Timeshare owners should verify any claims with their timeshare company directly.  

3. Work with Your Timeshare Company to Make Any Changes to Your Membership

While the vast majority of members enjoy their vacation ownership, Diamond Resorts also understands that life circumstances can change. Diamond and other timeshare developers provide options for members seeking to safely modify or leave their vacation ownership behind. To learn more visit ResponsibleExit.com.

This video will air on television stations across the country and be shared via social and digital advertising. To report suspicious timeshare exit activity or to learn more about exit options available through timeshare developers visit ResponsibleExit.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.

Media Contact
John Eddy
212-319-3451, ext. 648
john@goldin.com

JULY 24, 2020 (LAS VEGAS, Nev.) – Diamond Resorts International, Inc., a global leader in the hospitality and vacation ownership industry (the “Company”), announced today that it has terminated its offer to purchase for cash (the “Tender Offer”) any and all of its $500 million aggregate principal amount of 7.750% First-Priority Senior Secured Notes due 2023 (the “Notes”), as a result of the Financing Condition (as defined in the Tender Offer Materials) not having been satisfied. The market conditions were not satisfactory to achieve a financing on reasonably satisfactory terms to the Company.  The Company maintains sufficient liquidity and its maturity windows remain adequate to address recapitalization in the future.  As a result of this termination, no Notes will be purchased in the Tender Offer and all Notes validly tendered (and not validly withdrawn) will be promptly returned to tendering holders. No consideration will be paid in the Tender Offer for any of the tendered Notes.

“As a result of changing market conditions, the contemplated financing was uneconomic relative to our current Notes so we chose to terminate the contemplated financing,” said Mike Flaskey, Chief Executive Officer of the Company. “We continue to believe the company has sufficient liquidity and a manageable capital structure to weather our current environment and look forward to serving our current and future owners at our industry leading collection of vacation destinations around the world.”

The Company commenced an opportunistic Tender Offer on July 15, 2020, pursuant to the terms and conditions as disclosed in the Offer to Purchase, dated July 15, 2020 and the Notice of Guaranteed Delivery, dated July 15, 2020 (collectively, the “Tender Offer Materials”).

The Company’s obligation to consummate the Tender Offer by accepting for purchase, and paying for, any Notes validly tendered (and not validly withdrawn) was subject to and conditioned upon the satisfaction or waiver of (i) the Financing Condition and (ii) General Conditions (as defined in the Tender Offer Materials). The Financing Condition provides that the Tender Offer is subject to, and conditioned upon, the Company’s incurrence, on or prior to the Settlement Date (as defined in the Tender Offer Materials), of senior secured indebtedness, on terms reasonably satisfactory to the Company, yielding net proceeds in an amount sufficient to purchase any and all Notes validly tendered (and not validly withdrawn) and accepted for purchase pursuant to the Tender Offer, to add $50 million of cash on the balance sheet of the Company and to pay related fees and expenses. The Financing Condition has not been satisfied and has not been waived by the Company.

This press release constitutes a formal termination of the Tender Offer, which was made pursuant to the terms and conditions set forth in the Tender Offer Materials. This press release is for informational purposes only and is not an offer to buy, or the solicitation of an offer to sell, any securities.

RBC Capital Markets is acting as the dealer manager (the “Dealer Manager”) for the Tender Offer. D.F. King & Co., Inc. is acting as the tender agent and information agent for the Tender Offer.

Requests for the Tender Offer Materials may be directed to D.F. King & Co., Inc. at (212) 269-5550 (for brokers and banks) or (877) 783-5524 (for all others) or e-mail at diamondresorts@dfking.com.

Questions or requests for assistance in relation to the Tender Offer may be directed to the Dealer Manager at RBC Capital Markets, (877) 381-2099 (toll free) or (212) 618-7843 (collect).

About Diamond Resorts International, Inc.

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.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties.  Forward-looking statements include any statements that address future results or occurrences. In some cases you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “would,” “should,” “could” or the negatives thereof.  Generally, the words “anticipate,” “believe,” “continue,” “expect,” “intend,” “estimate,” “project,” “plan” and similar expressions identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance contained elsewhere in this press release, including developments related to COVID-19, are forward-looking statements.  These forward-looking statements include statements that are not historical facts, including statements concerning our possible or assumed future actions and business strategies.  We have based these forward-looking statements on our current expectations, assumptions, estimates and projections.  While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, including developments related to COVID-19, many of which are outside of our control, which could cause our actual results, performance or achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements.  Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.  We disclaim any obligation to update any such factors or to announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.  Statements in this press release are made as of the date hereof.  New factors emerge from time to time that could cause our actual results to differ, and it is not possible to predict all such factors.

Media Contact
John Eddy
212-319-3451, ext. 648
john@goldin.com

Diamond Resorts receives permanent injunction against Sumday Vacations, LLC & Standard Timeshare Transfers LLC days after Washington Attorney General files preliminary injunction against affiliate Timeshare Exit Team

JULY 24, 2020 (LAS VEGAS, Nev.) – Diamond Resorts^®, a global leader in the hospitality, vacation ownership and entertainment industries, announces today another legal victory in its fight against fraudulent third-party timeshare exit companies accused of misleading consumers. Diamond has obtained a permanent injunction against Sumday Vacations, LLC (“Sumday”) and Standard Timeshare Transfers, LLC (“Standard Timeshare Transfers”). As part of this ruling, Sumday Vacations and Standard Timeshare Transfers will close and will be prohibited from ever engaging in any timeshare sales or exit services again.

Sumday & Standard Timeshare Transfers Faked Timeshare ‘Exits’ & Misled Owners 

Diamond’s complaint alleged that Sumday and Standard Timeshare Transfers preyed on and misled timeshare owners by violating Florida and Nevada laws against deceptive and unfair business practices. According to the lawsuit, these defendants orchestrated fake timeshare sales to individuals who had no means, intent, or ability to use the timeshare or pay the maintenance fees. On several occasions, Standard Timeshare Transfers transferred 30 or more timeshares to a single person who often had minimal or no income. Diamond identified four individuals to whom Standard Timeshare Transfers transferred, in total, over one hundred timeshares. None of the recipients used these timeshares or paid the maintenance fees for them, an act that harms the Association and other members.

The lawsuit further detailed the Defendants scheme, which included instructing timeshare owners to execute these fake deeds, purchase agreements, or other forms of transfer documents in order to create the appearance of a legitimate transfer of their timeshare ownership.

Standard Timeshare Transfers & Timeshare Exit Team

Standard Timeshare Transfers is a known affiliate of Reed Hein & Associates LLC, a company that does business as Timeshare Exit Team. In February, Washington State Attorney General Bob Ferguson filed a consumer protection lawsuit against Timeshare Exit Team accusing the company of unfair or deceptive business practices related to services to “exit” consumers’ timeshares.

Washington Attorney General Files Preliminary Injunction Against Timeshare Exit Team

This month, Attorney General Ferguson filed a motion for preliminary injunction requesting that Timeshare Exit Team be required to show proof that the company has enough in its reserves to cover the 100% money-back guarantee it has promised clients who have yet to receive

any service. According to the filing, nearly half of Timeshare Exit Team’s more than 32,000 contracted customers are still waiting for resolutions and more than 4,600 customers have been waiting for three years or more.

Timeshare Exit Team Takes $58 Million in Upfront Fees & Fails to Deliver Any Service

Timeshare Exit Team’s provided data showing that it has taken more than $58 million in upfront fees from unsuspecting customers, yet only has $3 million in its accounts as of August 2019 – not nearly enough to refund customers if needed. If Timeshare Exit Team cannot provide a $6.5 million dollar reserve, the Attorney General requests that the company be prohibited from taking on new clients pending the outcome of the litigation, stating that the defendants “…should not be permitted to entice additional vulnerable customers and use their upfront payments to pay off its promises to existing customers.”

“Our goal at Diamond Resorts is to stop unlawful timeshare exit companies from scamming timeshare owners. We are glad that some of these companies have been shut down but other companies continue to take thousands of dollars in upfront fees from unsuspecting consumers. We applaud Washington Attorney General Bob Ferguson for his office’s continued action to protect timeshare owners. General Ferguson’s litigation against Timeshare Exit Team further reveals the truth behind the company’s business practices. Timeshare Exit Team promises customers a 100% money-back guarantee but does not have nearly enough money in its accounts to deliver on this assurance. The company’s bank account, like its promises, are nearly empty,” said Mike Flaskey, CEO, Diamond Resorts.

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.

Media Contact
John Eddy
212-319-3451, ext. 648
john@goldin.com

JULY 22, 2020 (LAS VEGAS, Nev.) – Diamond Resorts International, Inc., a global leader in the hospitality and vacation ownership industry (the “Company”), announced today the results of its previously announced  tender offer to purchase for cash (the “Tender Offer”) any and all of its $500 million aggregate principal amount of 7.750% First-Priority Senior Secured Notes due 2023 (the “Notes”) of the Company.

As of 5:00 p.m., New York City time, on July 21, 2020, the tender deadline with respect to the Tender Offer (the “Expiration Time”), the Company was advised by D.F. King & Co., Inc., tender agent and information agent for the Tender Offer, that the Company has received tenders from holders of $460,324,000 aggregate principal amount of the Notes pursuant to the Tender Offer, representing approximately 92.06% of the outstanding Notes, as well as $7,382,000 aggregate principal amount of Notes subject to the guaranteed delivery procedure described in the Tender Offer Materials (as defined below).

Each holder who validly tendered its Notes in the Tender Offer prior to the Expiration Time and did not validly withdraw such tendered Notes at or prior to the Expiration Time will receive the Tender Consideration (as defined below).  Holders of the Notes validly tendered prior to the Expiration Time will also receive accrued and unpaid interest from the last interest payment date for the Notes up to, but not including, the Settlement Date for such Notes accepted for purchase in the Tender Offer.  The “Settlement Date” for the Tender Offer is expected to be on July 28, 2020.  Notes tendered whether prior to, on or after the Expiration Time may no longer be withdrawn at any time, subject to limited exceptions where withdrawal rights are required by law.

The consideration for the Notes validly tendered (and not validly withdrawn) in the Tender Offer is set forth in the table below.

Notes	CUSIPs	Aggregate Principal Amount Outstanding	Tender Consideration(1)(2)
7.750% First-Priority Senior Secured Notes due 2023	23422RAB8 / U3200YAB0	$500,000,000	$1,002.50

(1)   For each $1,000 principal amount of Notes, excluding accrued and unpaid interest from the last payment date, which interest will be paid up to, but not including, the Settlement Date, in addition to the Tender Consideration.

(2)   Payable only to holders who validly tendered (and did not validly withdraw) Notes that are accepted for purchase at or prior to the Expiration Time.

The Tender Offer is being made pursuant to an Offer to Purchase dated July 15, 2020 and an accompanying notice of guaranteed delivery (collectively, the “Tender Offer Materials”), which sets forth a more detailed description of the Tender Offer.

The Tender is subject to certain conditions, including the satisfaction or waiver of the Financing Condition and the General Conditions (as defined in the Tender Offer Materials) on or prior to the Settlement Date.

This announcement does not constitute an offer to sell any securities or the solicitation of an offer to purchase any securities.  The Tender Offer is being made only pursuant to the Tender Offer Materials.  The Tender Offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.  In any jurisdiction in which the securities laws or blue sky laws require the Tender Offer to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made on behalf of the Company by one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.

RBC Capital Markets is acting as the dealer manager (the “Dealer Manager”) for the Tender Offer. D.F. King & Co., Inc. is acting as the tender agent and information agent for the Tender Offer.

Requests for the Tender Offer Materials may be directed to D.F. King & Co., Inc. at (212) 269-5550 (for brokers and banks) or (877) 783-5524 (for all others) or e-mail at diamondresorts@dfking.com.

Questions or requests for assistance in relation to the Tender Offer may be directed to the Dealer Manager at RBC Capital Markets, (877) 381-2099 (toll free) or (212) 618-7843 (collect).

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.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties.  Forward-looking statements include any statements that address future results or occurrences. In some cases you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “would,” “should,” “could” or the negatives thereof.  Generally, the words “anticipate,” “believe,” “continue,” “expect,” “intend,” “estimate,” “project,” “plan” and similar expressions identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance contained elsewhere in this press release, including developments related to COVID-19, are forward-looking statements.  These forward-looking statements include statements that are not historical facts, including statements concerning our possible or assumed future actions and business strategies.  We have based these forward-looking statements on our current expectations, assumptions, estimates and projections.  While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, including developments related to COVID-19, many of which are outside of our control, which could cause our actual results, performance or achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements.  Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.  We disclaim any obligation to update any such factors or to announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.  Statements in this press release are made as of the date hereof.  New factors emerge from time to time that could cause our actual results to differ, and it is not possible to predict all such factors.

###

Media Contact
John Eddy
212-319-3451, ext. 648
john@goldin.com

JULY 15, 2020 (LAS VEGAS, Nev.) – Diamond Resorts International, Inc., a global leader in the hospitality and vacation ownership industry (the “Company”), announced that it has launched a tender offer to purchase for cash (the “Tender Offer”) any and all of its outstanding 7.750% First-Priority Senior Secured Notes due 2023 (the “Notes”).

The Company’s obligation to accept and pay for the Notes is conditioned upon the satisfaction or waiver of certain conditions precedent. The Tender Offer is scheduled to expire at 5:00 p.m., New York City time, on July 21, 2020 (as the same may be extended, the “Expiration Time”), unless extended or earlier terminated by the Company.  Holders who wish to receive the Tender Consideration (as defined below) must validly tender (and not validly withdraw) their Notes at or prior to the Expiration Time (or, if the initial Expiration Time is extended, the earlier of the Expiration Time and ten (10) business days after the date hereof) The Tender Offer is being made pursuant to an Offer to Purchase dated July 15, 2020 and an accompanying notice of guaranteed delivery (the “Tender Offer Materials”), which sets forth a more detailed description of the Tender Offer. Holders of the Notes are urged to carefully read the Tender Offer Materials before making any decision with respect to the Tender Offer.

Concurrently with the Tender Offer, the Company is offering to purchase (the “Term Loan Purchase”) an aggregate principal amount of term loans under its senior secured credit facilities equal to (i) $450 million minus (ii) the aggregate principal amount of the Notes tendered and accepted for purchase by the Company pursuant to the Tender Offer.  The purchase price of the term loans will be $930 per $1,000 principal amount of term loans.

The consideration for the Notes validly tendered (and not validly withdrawn) in the Tender Offer is set forth in the table below.

Notes	CUSIPs	Aggregate Principal Amount Outstanding	Tender Consideration(1)(2)
7.750% First Priority Senior Secured Notes due 2023	23422RAB8 / U3200YAB0	$500,000,000	$1,002.50

(1)   For each $1,000 principal amount of Notes, excluding accrued and unpaid interest from the last payment date, which interest will be paid up to, but not including, the Settlement Date, in addition to the Tender Consideration.

(2)   Payable only to Holders who validly tender (and do not validly withdraw) Notes that are accepted for purchase at or prior to the Expiration Time.

Holders of Notes will also receive accrued and unpaid interest from the last interest payment date for the Notes up to, but not including, the Settlement Date.  The “Settlement Date” for the Tender Offer is expected to be on July 28, 2020.

Any Notes that are tendered prior to the Expiration Time but not validly withdrawn prior to the Expiration Time may not, subject to limited exceptions where withdrawal rights are required by law, be withdrawn thereafter. 

The Tender Offer may be terminated or withdrawn at any time and for any reason, including if certain conditions described in the Tender Offer Materials (including the Financing Condition, as defined in the Tender Offer Materials) are not satisfied, subject to applicable law. The Company is making the Tender Offer only by, and pursuant to, the terms of the Tender Offer Materials.  None of the Company, the Dealer Manager (as defined below), the trustee under the Indenture (as defined in the Tender Offer Materials), the tender agent and information agent nor any of their respective affiliates makes any recommendation as to whether or not holders of the Notes should tender or refrain from tendering their Notes.

This announcement does not constitute an offer to sell any securities or the solicitation of an offer to purchase any securities.  The Tender Offer is being made only pursuant to the Tender Offer Materials.  The Tender Offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.  In any jurisdiction in which the securities laws or blue sky laws require the Tender Offer to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made on behalf of the Company by one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.

RBC Capital Markets is acting as the dealer manager (the “Dealer Manager”) for the Tender Offer. D.F. King & Co., Inc. is acting as the tender agent and information agent for the Tender Offer.

Requests for the Tender Offer Materials may be directed to D.F. King & Co., Inc. at (212) 269-5550 (for brokers and banks) or (877) 783-5524 (for all others) or e-mail at diamondresorts@dfking.com.

Questions or requests for assistance in relation to the Tender Offer may be directed to the Dealer Manager at  RBC Capital Markets, (877) 381-2099 (toll free) or (212) 618-7843 (U.S.).

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.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements include any statements that address future results or occurrences. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “would,” “should,” “could” or the negatives thereof. Generally, the words “anticipate,” “believe,” “continue,” “expect,” “intend,” “estimate, “project,” “plan” and similar expressions identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance contained elsewhere in this press release, including developments related to COVID-19, are forward-looking statements. These forward-looking statements include statements that are not historical facts, including statements concerning our possible or assumed future actions and business strategies. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, including developments related to COVID-19, many of which are outside of our control, which could cause our actual results, performance or achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments. Statements in this press release are made as of the date hereof.   New factors emerge from time to time that could cause our actual results to differ, and it is not possible to predict all such factors.

Media Contact
John Eddy
212-319-3451, ext. 648
john@goldin.com