THIS MAN WAS PROMISED A FLASHY VACATION...
ONLY TO BUY A 21-THOUSAND DOLLAR STAYCATION...
BUYING TIMESHARES MAY SOUND LIKE A GREAT DEAL...
BUT SOME CUSTOMERS NOW WISH THEY COULD GO BACK IN TIME AND INVEST THEIR MONEY ELSEWHERE.
INVESTIGATIVE REPORTER PATRICK NELSON JOINS US-- PATRICK, THE FRAUDSTERS WANT US TO BELIEVE THEY CALL
COLORADO SPRINGS HOME.
SUPER IT'S ALL ABOUT GAINING OUR TRUST-- THEY'RE GOOD AT IT-- MILLIONS OF DOLLARS ARE
LOST IN TIMESHARE SCAMS EVERY YEAR-- AND WE FOUND MANY OF THESE COMPANIES ARE GETTING LAZY-- USING THE SAME BUSINESS ADDRESS RIGHT HERE IN DOWNTOWN
COLORADO SPRINGS.
RICK PAINE SAYS 2017 SEEMED LIKE THE RIGHT TIME TO INVEST IN A TIMESHARE.
RICK PAINE / COLORADO SPRINGS RESIDENT "I REALLY WANTED TO GET MY TWO SONS IN AND I WANTED TO HELP THEM WITH THE YOU KNOW WITH HONEYMOONS.
I'VE GOT EMPLOYEES AND I THOUGHT YOU KNOW, I'LL REWARD THEM HEY HOW ABOUT A TRIP TO SO AND SO PAID FOR." IT'S A DECISION HE NOW REGRETS.
RICK PAINE / COLORADO SPRINGS RESIDENT "ONCE WE GOT INTO THIS EVERY TIME YOU TRIED TO CALL THEM AND ASK, HEY HOW CAN WE USE THIS?
THEY'D SAY LOOK, FOR ANOTHER FEW THOUSAND DOLLARS FOR THIS.
IT WAS CONSTANT UPSELLING".
NOW, NINE THOUSAND DOLLARS INTO THE TIMESHARE AGREEMENT-- RICK GETS ANOTHER CALL FROM A DIFFERENT COMPANY-- PROMISING TO BUY OUT THE
ORIGINAL TIMESHARE.
RICK PAINE / COLORADO SPRINGS RESIDENT "GIVE US $12,000 AND WE'LL GET YOU OUT OF THE $9,000 THAT YOU WERE IN THE OTHER ONE.
AND I STILL REMEMBER THAT 90% OF THE PEOPLE THAT GO THROUGH THIS GET THEIR MONEY BACK." BUT RICK GOT MORE EMPTY PROMISES-- AND HE'S HOPING TO WARN OTHERS.
RICK PAINE / COLORADO SPRINGS RESIDENT "THESE PEOPLE ARE JUST CROOKS." "I WAS STUPID TWICE IT COST ME WELL OVER $21,000.
I'D LOVE TO GET THAT MONEY BACK, BUT BOY I JUST HATE TO SEE THESE PEOPLE DOING THIS I HATE BULLIES AND THIS IS WHAT THESE PEOPLE ARE DOING THEIR BULLYING PEOPLE." THE NUMBERS SHOW
RICK ISN'T ALONE IN LOSING MONEY TO TIMESHARE PITCHES.
ACCORDING TO THE BETTER BUSINESS BUREAU TRAVEL/VACATION SCAMS WERE THE 2ND RISKIEST SCAM-- SPECIFICALLY FOR MEN.
MEN LOST ON AVERAGE $3,950 DOLLARS.
RICK PAINE / COLORADO SPRINGS RESIDENT "IT DIDN'T TAKE MONEY AND THEN TAKE FOOD OFF MY TABLE, BUTTHERE'S GOT TO BE A LOT OF PEOPLE OUT THERE THAT FALL FOR
THIS STUFF AND THEY'RE GOING HUNGRY OR YOU KNOW THEY'RE NOT ABLE TO PAY THE RENT" WE ADDRESSED RICK'S CONCERNS WITH THE BETTER BUSINESS BUREAU OF SOUTHERN COLORADO--
THEY TOO ARE HEARING ABOUT DEVASTATING LOSSES.
PAUL MYERS-BENNETT / BBB SOUTHERN COLORADO "ONE WOMAN WAS TAKEN FOR OVER 100 THOUSAND DOLLARS AND SHE SENT A WIRE AND COULD NEVER GET ANY OF IT BACK." IT TURNS
OUT TIMESHARE COMPANIES AREN'T JUST TARGETING PEOPLE IN COLORADO SPRINGS-- THEY ARE ALSO GIVING OFF THE ILLUSION THEY ARE A PART OF THE CITY'S DOWNTOWN BUSINESS COMMUNITY.
AT LEAST TWO TIMESHARE COMPANIES WHO LIST THEIR ADDRESS AT 102 SOUTH TEJON-- HAVE BEEN INVESTIGATED BY STATE OFFICIALS AND LABLED AS FRAUDULENT COMPANIES.
CONDUCTING BUSINESS OUT OF A VIRTUAL OFFICE-- LITTERALLY IN THE SAME BUILDING AS THE CHAMBER OF COMMERCE.
PAUL MYERS-BENNETT / BBB SOUTHERN COLORADO "SOMEONE'S FOUND THAT IT WORKS SO THEY WILL USE THE SAME ADDRESS IT DOES IN FACT HAVE BUSINESSES THAT ARE CREDIBLE IN
THE SAME ADDRESS SO IT'S HARD TO SAY NOT EVERYONE THAT DOES BUSINESS OUT OF A CERTAIN ADDRESS IS ACTUALLY A FRAUDSTER." NEWS 5 INVESTIGATES ALSO
DISCOVERED TIMESHARE COMPANIES CHANGING THEIR BUSINESS NAME MULTIPLE TIMES TO AVOID DETECTION.
EVEN RESTORING DORMANT BUSINESS NAMES TO FOOL CONSUMERS.
"WHEN A COMPANY RESURRECTS A COMPANY THAT WAS FILED WITH THE STATE IN THE 90S AND MAKES HIM LOOK CREDIBLE IT IS SOMETIMES YOU CAN DO A QUICK SEARCH AND I'LL SAY HEY THIS COMPANY
APPEARS TO HAVE BEEN AROUND SINCE 1997 WELL IF A BUSINESS HAS BEEN AROUND SINCE 1997 IS PROBABLY LEGITIMATE THAT'S WHAT PEOPLE THINK EVEN THOUGH THAT COMPANY MAY NOT HAVE
BEEN IN BUSINESS THE WHOLE
TIME." RICK HAS FILED A COMPLAINT WITH THE ATTORNEY GENERAL'S OFFICE AND THE CONSUMER FRAUD DIVISION OF THE F-B-I-- BUT SO FAR--
NOTHING.
THE HOPE IS-- ONE DAY THERE WILL BE ENOUGH EVIDENCE TO BRING CHARGES AGAINST THE PEOPLE BEHIND THESE COMPANIES.
RICK PAINE / COLORADO SPRINGS RESIDENT "JUST KNOWING THAT THESE PEOPLE THAT WERE HELD ACCOUNTABLE I THINK THAT IS MOST IMPORTANT THING.
YOU KNOW THERE ARE RETIRED PEOPLE OUT THERE.
THEY'RE FIXED INCOME AND THEY FALL FOR THIS STUFF THAT SHOULDN'T HAPPEN IN THIS COUNTRY."
IF YOU ARE CONTACTED BY A TIMESHARE RESALE COMPANY-- THE FIRST STEP YOU SHOULD TAKE IS CONTACTING THE STATE'S DIVISION OF REAL ESTATE-- THEN YOU CAN VERIFY THE
COMPANY AND ITS BUSINESS LICENSE ARE LEGITAMATE.
THIS HAS BEEN A PROBLEM FOR A LONG TIME HERE IN COLORADO.
IT HAS...
IN FACT, IN 2013 STATE LAWMAKERS PASSED A LAW REGULATING HOW TIMESHARE COMPANIES DO BUSINESS-- SO THE ATTORNEY GENERAL DOES HAVE THE POWER TO BRING CHARGES AGAINST COMPANIES
WHO ARE NOT MAKING GOOD ON THEIR PROMISES.