Diamond Resorts Obtains Preliminary Injunction To Protect Customers from Third Party Companies Preying on Timeshare Owners

Missouri-Based Companies Sued for Preying on Timeshare Owners Through False Advertising

LAS VEGAS, /PRNewswire/ – Diamond Resorts®, a global leader in the hospitality, vacation ownership and entertainment industries, announces it has succeeded in obtaining a preliminary injunction against several third party companies based in Missouri. Diamond’s lawsuit against Exchange Points, PR Rewards, VMG Resorts, Kyle Brown and Vacation Management is the latest in the company’s efforts to protect its customers from the disturbing rise of third-party companies that prey on, and attempt to scam, timeshare owners.

The companies are accused of defrauding Diamond Resorts customers by falsely claiming to be associated with Diamond and then charging fees to unlawfully “rent” Diamondvacation points on their behalf.

The case – Diamond v. Exchange Points, et al., which was filed the United States District Court of Nevada – was brought in response to a scheme by defendants in which they are alleged to have:

  • Engaged in an advertising campaign that falsely suggested an affiliation with Diamond Resorts designed to trick members into turning over control of their vacation points.
  • Rented 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.
  • Charged 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.

“Our members love their vacation ownership so we’re very concerned that they are being targeted by fraudulent companies,” said Mike Flaskey, Chief Executive Officer of Diamond Resorts. “We’re taking reselling and exit scams very seriously because they hurt our members who are being charged big fees and only receive empty promises.”

In a ruling on July 18, the Federal Court in Las Vegas denied the defendant’s motion to dismiss and granted Diamond’s request for a preliminary injunction against several of the defendants. This preliminary injunction prevents the defendants from engaging in any further advertising that suggests an affiliation with Diamond, or suggests that defendants are authorized managers of Diamond Resorts points, or have authority to use Diamond Resorts points to book vacation stays for their customers.

This court order follows a previous ruling earlier this month in Diamond’s suit against Nashville-based Castle Law Group PC, its principals and related entities. That order bars Castle Venture Group and William Michael Keever from communicating with any Diamond Resorts timeshare owner. The Supreme Court of Tennessee previously disbarred Judson Wheeler Phillips, former senior partner with Castle Law, for misleading and defrauding timeshare customers. In addition to these cases, Diamond Resorts has pursued twelve lawsuits against numerous companies marketing themselves as timeshare exit companies and obtained permanent injunctions in seven suits.

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 Diamondmembership ensures that people are always looking forward to vacation.

By Darren Wheeling August 13, 2019 24 Comments