LAS VEGAS, July 9, 2020 /PRNewswire/ -- Diamond Resorts™, a global leader in the hospitality, vacation ownership and entertainment industries, announces today a legal victory against Jason Hemingway, and his so-called 'timeshare exit company,' CLS, Inc. d/b/a Atlas Vacation Remedies and Principal Transfer Group. Diamond Resorts has secured a permanent injunction and was also awarded a monetary judgement of $600,000 against Hemingway. Hemingway and his company are prohibited from ever contacting Diamond Resorts' members about misleading 'exit' services again.
Diamond Resorts has taken an aggressive stance to protect its customers from the disturbing rise of unscrupulous exit companies that charge timeshare owners thousands of dollars in upfront fees, but do not deliver on their promises to help members transition out of vacation ownership. These fraudulent companies often leave customers in financial peril, with additional debt and damaged credit histories.
Fraudulent timeshare exit activity has been particularly rampant in Missouri. Diamond also recently obtained preliminary injunctions against a ring of other Missouri-based third-party companies, including Exchange Points, PR Rewards, VMG Resorts, Kyle Brown and Vacation Management.
On Monday, Missouri Attorney General Schmitt announced that his office has filed a lawsuit against Brian Scroggs and the 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 exit services they were promised by Scroggs despite paying large fees and many customers were left in additional financial peril after following his companies' misleading advice.
"We're pleased to see Missouri continue to lead the fight to shut down these fraudulent exit companies and we share Attorney General Eric Schmitt's commitment to hold any company seeking to defraud timeshare owners accountable," said Mike Flaskey, CEO, Diamond Resorts. "The Principal Transfer Group case is just one example of how rampant this activity is. This large monetary judgment speaks volumes about Hemingway's bad acts and these cases are more examples of exit companies taking hundreds of thousands of dollars from unsuspecting timeshare owners."
This is the second lawsuit to be filed by Schmitt against timeshare exit companies in recent months, and marks the fourth action brought by Attorneys General, including other actions in Washington and Arkansas. In February, Schmitt filed a lawsuit against timeshare exit company Martin Management and its owner Steve Martin. Schmitt cited his responsibility to protect Missourians stating 'it is my duty to protect consumers and hold fraudulent companies, including timeshare exit companies, accountable for their actions.'
Scroggs was also previously sued by the Arkansas Attorney General and was the subject of a Better Business Bureau (BBB) consumer alert in October 2018. According to the Arkansas Complaint, unsuspecting timeshare owners lost more than $136,000 in deceptive fees to Scroggs' company, Real Travel.
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.