Fraud Alerts

   Lawsuit Leveled Against Timeshare Company in Crown Point

Indiana Company Fails to Honor Offers, Stipulations of Contracts

A timeshare and travel club sales center in Crown Point, Indiana is being sued by the state’s Attorney General for unlawful business conduct. The sales center, owned by three separate companies -- Harbor Management Corp., Harbor Management of Colorado LLC and Vacation Resort Management Inc. – has been accused of misrepresenting consumer contracts, failing to provide promised products and services, and refusing to honor refunds and prize giveaways.

Supposedly the companies have operated in Indiana and at least three other US states under a collection of assumed and fictitious names, including: Harbor Resort Management Group, Harbor Management Resort Group, Harbor Resorts, Vacation Resorts, Star Vacation Club, Star Vacations and VRM. The company representatives identified in the lawsuit are Madeline M. Allerton of Illinois, David W. Haddad of Las Vegas, Nevada and Lisa B. Jantalezio (a.k.a. Haddad, Alonso & Rogers) with addresses listed in Arkansas & Nevada.

"This operation was like a vacation bait and release program based on the information we've received," says Attorney General Steve Carter. "This is a marketing strategy that has gone awry and caused thousands of dollars of damage to people along the way."

The list of violations detailed in the suit include the following:
  • Failure to disclose the retail value or odds for the prizes listed in notices mailed to consumers

  • Failure to disclose all eligibility limitations and additional costs required when receiving prizes

  • Failure to furnish promised prizes or comparable substitutes

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  • False claims that customers had won a prize or gift during telemarketing calls

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  • Failure to file the required registration to sell timeshares in Indiana

  • Misrepresentation of the terms of company contracts

  • Misrepresentation of consumers’ financial obligations to third party finance companies

  • Misrepresentation of customers’ rights to refunds and cancellation terms

  • Misrepresentation of the company’s policy towards enrollment and fulfillment services for the consumer’s timeshare interests and vacation exchange club memberships


    • The lawsuit is seeking penalties and restitution for the alleged misdeed. At the moment the lawsuit only encompasses 15 consumers who signed contracts with this sales group under one of its many pseudonyms, but the Attorney General’s office anticipates that the number will increase heavily as the suit continues. The prices of these contracts range from $1,000 to $8,900.

    Two of the companies in question, Harbor Management and Vacation Resort Management, are also linked to another sales group being sued by the attorney general’s office for violating the Indiana Do Not Call Law with illegally pre-recorded telemarketing tools. One consumer received a call from a recorded voice identifying itself as “Paul at the Prize Claim Center” and extended an invitation to a Vacation Resort Management presentation in Crown Point.

    If you have had dealings with any of these companies and would like to contact the Indiana Attorney General, use the following link: http://www.in.gov/attorneygeneral/.

    Additionally, the Indiana Consumer website allows complaints to be filed electronically: http://www.indianaconsumer.com/filecomplaint.asp.

     

    Read the original Inside Indiana Business article here.