LAS VEGAS, June 9, 2020 /PRNewswire/ -- Diamond Resorts®, a global leader in the hospitality, vacation ownership and entertainment industries, has filed a federal lawsuit against Wesley Financial Group, LLC ("Wesley") and its founder and CEO Charles William "Chuck" McDowell, for allegations of fraudulent business practices and false advertising.
According to the lawsuit filed in the Eastern District of Tennessee, Wesley Financial Group operates as a so-called timeshare "cancellation" company and charges unsuspecting timeshare owners thousands of dollars in upfront fees in exchange for no legitimate service. Wesley does not help the customers it claims to protect, according to the lawsuit, but instead purposefully drives timeshare owners into financial jeopardy and foreclosure.
Wesley Financial Group's Misleading Business Practices
According to the suit, Wesley makes false and misleading promises with a "100% guarantee" that Wesley can legally relieve timeshare owners of their obligations. "Wesley's actual 'legal strategy' is neither 'legal' nor a 'strategy': it is a hoax," says the lawsuit.
According to Diamond's lawsuit:
- Wesley instructs timeshare owners to breach their agreements with Diamond by stopping payments to the company, "…hoping that it will result in foreclosure or forfeiture of the timeshare interest, so that they may claim 'success.'"
- Wesley falsely warns customers that continuing their timeshare payments will make the cancellation process take longer. This exposes owners to default and foreclosure.
- Wesley conceals dozens of online and Better Business Bureau complaints against the company as well as the Better Business Bureau's revocation of Wesley's accreditation.
- Wesley requires, under threat of forfeiture of already paid fees, which timeshare owners lie about hiring Wesley while discouraging communications between Diamond and its members.
- If a customer divulges that they have hired Wesley, the company refuses to provide the customer their "100% guaranteed" refund.
- Wesley employees call Diamond and impersonate timeshare owners by using timeshare owners' caller IDs and phone apps to disguise their voices.
William "Chuck" McDowell's Checkered Financial Past
According to the lawsuit, Wesley Financial Group owner William "Chuck" McDowell touts himself as a pioneer in the timeshare exit industry and "Wesley's aggressive television, radio, social media, and internet advertising campaigns often feature McDowell without revealing his checkered financial past" including:
- Three bankruptcy filings
- Eight federal tax liens
- 13 civil and debt collection lawsuits
- Two worthless check charges
- McDowell previously served as Vice President of Sales for Vacation Ownership Group, LLC, a "timeshare exit" company that was shut down for fraudulent activity. The principals of the company and nine others were indicted and the principal sentenced to 27 years in prison.
- McDowell previously founded ChuckLuck.com, an online sports betting "investment adviser," that made hollow promises of refunds, and then, amid a legion of angry and vocal bettors, mutated into SmokeyWins, a sports betting tout of no greater repute."
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 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.
SOURCE Diamond Resorts