Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gilles, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Frank Adderley, Chief, Fort Lauderdale Police Department, announced Oct. 6 the filing of an information charging defendants Scott Faraguna, 41, Charles Blomquist, 52, Peter Borkowicz, 31, Raymond Harcar, 39, James Taylor, 23, Ryan Greene, 23, Jason Hampton, 28, Chris Faccone, 43, Steven Sokoloff, 47, Marco Sguera, 30, Joseph Giancola, 38, Ryan Soltow, 27, and Donna Ackermann Brown, 50, in a one-count Criminal Information with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 371.
The defendants are scheduled to make their initial appearances in court Tuesday morning October 11, 2011, in West Palm Beach before U.S. Magistrate Judge Linnea Johnson.
According to the Information, the defendants worked for Timeshare Mega Media and Marketing Group, Inc. (TMMMG), on Oakland Park Boulevard, in Fort Lauderdale. From in or about October 2009 and continuing to May 2010, the defendants and others at TMMMG called owners of time-share units and told them that they had buyers for their time-share units if the time-share unit owners would send $1,996 to TMMMG for the fees associated with the sale of the unit, such as closings costs and a title search. In fact, however, the defendants knew that they did not have buyers for the time-share units, and nor were the units previously sold.
The Information alleges that after the time-share unit owners agreed to pay the fee associated with the sale of their units, the time-share unit owners would be called by another employee from TMMMG who acted as a “verifier.” The “verifier” would try to get the time-share unit owners to admit on tape that they knew that the fee they were paying was for the advertising of their time-share units and that TMMMG could charge their credit card. Some of the defendants would pay the “verifier” $50-$100 per sale in order to either not call the time-share unit owners or to process the transaction with the credit card company, even though the victim did not want to go through with the transaction.
According to the Information, in order to make it more difficult for the time-share unit owners to obtain a refund of their money, the defendants were instructed by coconspirators not to give the time-share unit owners closing dates for the sale of their time-shares, or if they insisted, to give closing dates more than 60 days after the receipt of their money. When time-share unit owners would call TMMMG inquiring about the sale of their time shares, coconspirators would try to “lull” the victims by falsely stating to the time-share unit owners that the original buyer had a credit problem and was not approved, but that TMMMG had another buyer and that the sale would take place in the near future, in order to keep the victims from complaining to the credit card companies or the authorities.
If convicted the defendants each face a statutory maximum term of imprisonment of 5 years and a fine of up to $250,000.
Mr. Ferrer commended the investigative efforts of the FBI and the Fort Lauderdale Police Department in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An Information is only an accusation, and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
SOURCE: US Attorney General’s Office of the Southern District of Florida
Saturday, October 15, 2011
Friday, October 14, 2011
Four Things Timeshare Can and Should Concentrate On
Here's a link to my latest article in RCI Ventures magazine about the four things that the timeshare industry needs to focus on if it is ever going to stage a comeback and be the success that it can be.
http://bit.ly/rm7fB4
As usual, we welcome your thoughts and comments.
http://bit.ly/rm7fB4
As usual, we welcome your thoughts and comments.
Thursday, October 6, 2011
Proposed Florida Legislation
Here's a recap of the proposed legislation in Florida regarding timeshare resales:
- A timeshare resale advertiser may not misrepresent a pre-existing interest in the owner’s timeshare.
- A timeshare resale advertiser may not mislead a customer as to the success rate of the advertiser’s sales.
- A timeshare resale advertiser may not provide brokerage or direct sale services.
- A timeshare resale advertiser must honor a cancellation request made within 7 days following a signed agreement.
- A timeshare resale advertiser must provide a full refund by a timeshare owner within 20 days of a valid cancellation request.
- A timeshare resale advertiser must not collect any payment or engage in any resale advertising activities until the timeshare owner delivers a signed written agreement for the services.
- A timeshare resale advertiser must also provide a full disclosure statement printed in bold type, with no smaller than a 12-point font, and printed immediately preceding the space provided for the timeshare owner’s signature.
- A timeshare advertising agreement must be put in writing.
- A company who violates these provisions has committed a violation of the Unfair and Deceptive Trade Practices Act with a penalty not to exceed $15,000 per violation.
Tuesday, October 4, 2011
Innovation and Timeshare
I'll start off today's post with two oft-repeated disclaimers; 1) I don't profess to know everything and 2) I firmly believe that the way to bring timeshare into the 21st century and to more people is to look to non-timeshare experts to help.
Today's help comes from Donny Deutsch's and Catherine Whitney's book "The Big Idea" and a chapter in which they talk about "The Five Qualities of an Innovator."
Quality #1-Innovators ask "How would I approach this business challenge if I had no preconceived notions of how it should be done?" The timeshare industry has thankfully, seen it fit to at least start the discussion here as witnessed by the exceptional panel discussions held at both ARDA and CRDA earlier this year where participants, myself included, talked about the many ways we would start from scratch and reinvent timeshare. We need to keep this momentum going and see some real changes.
Quality #2-Innovators don't care if it's never been done. In fact, they love it. "It's never been done" has to rank up there as the stupidest reason not to pursue a new idea. It leaves no room for change. You can call me a lot of things as many people have over the years, but this is my mantra, so I guess I'm an innovator. All I'll say on this point is this..."timeshare marketing."
Quality #3-Innovators don't believe it has already been done. In virtually every category there is room for innovation-a unique twist on an exciting concept. And no, I don't think upgrades to point-based memberships designed to get more money out of owners qualify as innovation. Here's a unique twist that I appreciated...the open conversation atmosphere at this years GNEX conferene put on by Perspective Magazine. Now, if we could just harness that open atmosphere and expand it to transparancy to timeshare owners and prospective owners, we'd be onto something.
Quality #4-Innovators are champions of individuality. Not so evident in either the timeshare product nor the timeshare professional. Sales directors hate to take into account individuals, demanding instead that every salesperson go through the same hackneyed sales steps with every client. My very last "tour" that I had as a salesperson was a man in his late 50s that had just gotten out of jail on a 17 year crack cocaine charge. (Yes, this is a true story, I am not that creative of a writer to make this up.) My manager insisted that I go through all the steps and then came over and asked the man, "so, did you like the model?" To which I answered, "yes, it's much nicer than the jail cell he's been in for the past 17 years."
Quality #5-Innovators are disruptive. Innovators will challenge everyday assumptions. About the only thing disruptive in timeshare seems to be, well, me!
As always, I welcome your thoughts.
Today's help comes from Donny Deutsch's and Catherine Whitney's book "The Big Idea" and a chapter in which they talk about "The Five Qualities of an Innovator."
Quality #1-Innovators ask "How would I approach this business challenge if I had no preconceived notions of how it should be done?" The timeshare industry has thankfully, seen it fit to at least start the discussion here as witnessed by the exceptional panel discussions held at both ARDA and CRDA earlier this year where participants, myself included, talked about the many ways we would start from scratch and reinvent timeshare. We need to keep this momentum going and see some real changes.
Quality #2-Innovators don't care if it's never been done. In fact, they love it. "It's never been done" has to rank up there as the stupidest reason not to pursue a new idea. It leaves no room for change. You can call me a lot of things as many people have over the years, but this is my mantra, so I guess I'm an innovator. All I'll say on this point is this..."timeshare marketing."
Quality #3-Innovators don't believe it has already been done. In virtually every category there is room for innovation-a unique twist on an exciting concept. And no, I don't think upgrades to point-based memberships designed to get more money out of owners qualify as innovation. Here's a unique twist that I appreciated...the open conversation atmosphere at this years GNEX conferene put on by Perspective Magazine. Now, if we could just harness that open atmosphere and expand it to transparancy to timeshare owners and prospective owners, we'd be onto something.
Quality #4-Innovators are champions of individuality. Not so evident in either the timeshare product nor the timeshare professional. Sales directors hate to take into account individuals, demanding instead that every salesperson go through the same hackneyed sales steps with every client. My very last "tour" that I had as a salesperson was a man in his late 50s that had just gotten out of jail on a 17 year crack cocaine charge. (Yes, this is a true story, I am not that creative of a writer to make this up.) My manager insisted that I go through all the steps and then came over and asked the man, "so, did you like the model?" To which I answered, "yes, it's much nicer than the jail cell he's been in for the past 17 years."
Quality #5-Innovators are disruptive. Innovators will challenge everyday assumptions. About the only thing disruptive in timeshare seems to be, well, me!
As always, I welcome your thoughts.
Monday, September 26, 2011
A Lesson On Overcoming Resistance
In the excellent book "Enchantment" by Guy Kawasaki, Chapter 6 is entitled "How To Overcome Resistance." I thought I'd outline Mr. Kawasaki's insights into why people are reluctant and make some points about timeshare.
* Inertia-People don't like to do things differently. They've been renting hotel rooms for years and years and are either satisfied with the status quo and/or lazy.
* Hesitation to reduce options. As hard as it is for people in the timeshare industry to believe, there are MANY consumers out there who don't know/understand about exchanging, Those people look at a timeshare as a huge reduction in their vacation options. Couple this with the fact that many timeshare salespeople oversell the exchange option so badly that people don't believe ANY of it.
* Fear of making a mistake. Closely tied to inertia. Consumers don't like to think they've made a mistake, so oftentimes they don't do anything differently. While renting a hotel room may in fact be a mistake for them, purchasing a timeshare seems like a bigger choice and therefore a larger potential mistake.
* Lack of role models. I've been saying for years now that timeshare needs a credible spokesperson. And by "credible spokesperson" I don't mean Alan Thicke, Rosanne Barr and/or David Faustino; all of which have tried and failed.
* Your cause sucks. No, I don't think timeshare sucks. But I do think that things have to change; and change in a hurry if we are to capture the Gen Xs and other younger demographics out there.
Thankfully, Guy Kawasaki points out solutions to these problems. Before I talk about his solutions, I'm curious to hear your thoughts and your ideas for solutions.
* Inertia-People don't like to do things differently. They've been renting hotel rooms for years and years and are either satisfied with the status quo and/or lazy.
* Hesitation to reduce options. As hard as it is for people in the timeshare industry to believe, there are MANY consumers out there who don't know/understand about exchanging, Those people look at a timeshare as a huge reduction in their vacation options. Couple this with the fact that many timeshare salespeople oversell the exchange option so badly that people don't believe ANY of it.
* Fear of making a mistake. Closely tied to inertia. Consumers don't like to think they've made a mistake, so oftentimes they don't do anything differently. While renting a hotel room may in fact be a mistake for them, purchasing a timeshare seems like a bigger choice and therefore a larger potential mistake.
* Lack of role models. I've been saying for years now that timeshare needs a credible spokesperson. And by "credible spokesperson" I don't mean Alan Thicke, Rosanne Barr and/or David Faustino; all of which have tried and failed.
* Your cause sucks. No, I don't think timeshare sucks. But I do think that things have to change; and change in a hurry if we are to capture the Gen Xs and other younger demographics out there.
Thankfully, Guy Kawasaki points out solutions to these problems. Before I talk about his solutions, I'm curious to hear your thoughts and your ideas for solutions.
Tuesday, September 20, 2011
The Four Pillars Of Branding
I recently read something that included the four pillars of branding and as usual, it got me thinking about the timeshare industry.
The four pillars of branding are:
KNOWLEDGE
ESTEEM
RELEVANCE
DIFFERENTIATION
I don't know about you, but I would not give the timeshare industry in general a grade much above a C- on these pillars.
How much do you as an owner know about timeshare? How much does the salesperson? How much does the ordinary non-timeshare owner know? It's true that the people at the top of the industry know a LOT. I've said it before and I'll say it again...knowing something and doing something with that knowledge are two different things.
Are timeshare owners held in esteem? Are timeshare salespersons held in esteem? How many people in timeshare tell their friends, relatives and acquaintenances that they are in "vacation", "real estate", or something else rather than acknowledging and being proud to say "timeshare"?
Is timeshare relevant today? From the number of non-timeshare companies at timeshare industry events, I would have to question that. The same old marketing and sales techniques are certainly NOT relevant to today's consumer. The very product (deeded for life) may not be relevant anymore. The recent conventions that I've attended prove that even the people in the industry know that change is necessary.
How are timeshares different from travel clubs, hotels, motels, etc.? It depends on who you ask. Consumers seem to think that timeshares are less flexible and more expensive than other vacation alternatives...certainly NOT what the timeshare industry wants them to believe. When a family can stay at a timeshare resort for a week for less than a timeshare owner's annual fee to own at that resort, I have to wonder where the differentition comes into play.
Again, I don't claim to have all the answers. This blog is nothing more than a sounding board and a invitation to converse and exchange ideas.
The four pillars of branding are:
KNOWLEDGE
ESTEEM
RELEVANCE
DIFFERENTIATION
I don't know about you, but I would not give the timeshare industry in general a grade much above a C- on these pillars.
How much do you as an owner know about timeshare? How much does the salesperson? How much does the ordinary non-timeshare owner know? It's true that the people at the top of the industry know a LOT. I've said it before and I'll say it again...knowing something and doing something with that knowledge are two different things.
Are timeshare owners held in esteem? Are timeshare salespersons held in esteem? How many people in timeshare tell their friends, relatives and acquaintenances that they are in "vacation", "real estate", or something else rather than acknowledging and being proud to say "timeshare"?
Is timeshare relevant today? From the number of non-timeshare companies at timeshare industry events, I would have to question that. The same old marketing and sales techniques are certainly NOT relevant to today's consumer. The very product (deeded for life) may not be relevant anymore. The recent conventions that I've attended prove that even the people in the industry know that change is necessary.
How are timeshares different from travel clubs, hotels, motels, etc.? It depends on who you ask. Consumers seem to think that timeshares are less flexible and more expensive than other vacation alternatives...certainly NOT what the timeshare industry wants them to believe. When a family can stay at a timeshare resort for a week for less than a timeshare owner's annual fee to own at that resort, I have to wonder where the differentition comes into play.
Again, I don't claim to have all the answers. This blog is nothing more than a sounding board and a invitation to converse and exchange ideas.
Tuesday, September 6, 2011
The Research Shows...
A recent survey by the Ypartnership/Harrison Group 2011 Portrail of American Travelers showed some interesting things:
* 77% of those surveyed reported that they had become a much smarter shopper thanks to today's economic situation
* Among those travelers who use the Internet to either get travel information or make a reservation, 84% say that the ability to check the lowest fares/rates is the most important feature, followed by 82% who say that it's the lowest price/rate guarantee
* 70% of leisure travelers state that they have have taken a "celebratatory vacation" in the last year, to coincide with a birthday, anniversary, etc.
These findings beg these questions (and many more):
* If 77% thought they had become a much smarter shopper, why does a company who does nothing but take timeshare deeds and several thousand dollars from timeshare owners who don't know any better make more than $44 million in one year?
* If 84% of travelers use the Internet to check fares and rates, why aren't "new" timeshare prices readily available for comparison?
* If more than 70% of travelers take a celebratory vacation, doesn't it stand to reason that people DO in fact wake up one day with the intention of going on a vacation and DON'T those celebratory vacations frequently occur?
As I've stated before, the research has already been done...the timeshare industry has ALL the tools to bring this product to far more people than it has. Who is going to take the lead?
* 77% of those surveyed reported that they had become a much smarter shopper thanks to today's economic situation
* Among those travelers who use the Internet to either get travel information or make a reservation, 84% say that the ability to check the lowest fares/rates is the most important feature, followed by 82% who say that it's the lowest price/rate guarantee
* 70% of leisure travelers state that they have have taken a "celebratatory vacation" in the last year, to coincide with a birthday, anniversary, etc.
These findings beg these questions (and many more):
* If 77% thought they had become a much smarter shopper, why does a company who does nothing but take timeshare deeds and several thousand dollars from timeshare owners who don't know any better make more than $44 million in one year?
* If 84% of travelers use the Internet to check fares and rates, why aren't "new" timeshare prices readily available for comparison?
* If more than 70% of travelers take a celebratory vacation, doesn't it stand to reason that people DO in fact wake up one day with the intention of going on a vacation and DON'T those celebratory vacations frequently occur?
As I've stated before, the research has already been done...the timeshare industry has ALL the tools to bring this product to far more people than it has. Who is going to take the lead?
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