Denver DA warns consumers about timeshare scams

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DENVER – Using his Facebook page to reach a wider audience, Denver’s District Attorney, Mitch Morrissey, is warning consumers about a growing problem with timeshare resale scams. “Fraud Alert! Don’t Fall Victim to a Timeshare Resale Scam!” Morrissey posted on his Facebook page on Tuesday, Jan. 17, when he advised buyers, “Don’t Fall Victim to a Timeshare Resale Scam.” In his post, Morrissey wrote, “Beware, timeshare owners! Complaints of timeshare resale scams are on the rise. Victims, particularly those eager to sell their interests in timeshare properties, are being contacted by alleged buyers who are making sizable offers that may or may not require an up-front fee.” Often times, Morrissey wrote, the people making the offer claim to have a buyer waiting in the wings. Don’t believe it, he warned.

“In the interest of making the deal as simple and painless as possible, the buyer initiates all ‘necessary’ documents, and emails them to the seller to sign and send back,” Morrissey wrote. But it’s all part of an elaborate scam, he added. “One unique feature of this scam is that it involves a third party escrow account from which ‘foreign taxes’ and other questionable fees collected from the victim are deposited,” he wrote. “The so-called fees that accumulate are substantial, usually in the range of $3,000 or more. Sellers are told they will be reimbursed for these fees at the time of closing, only to find that the buyer and escrow account company have vanished before they have finalized the deal.” According to the Denver/Boulder Better Business Bureau, timeshare resale complaints ranked as the eighth most common scam reported to the agency last year. To protect yourself from getting ripped off by these ongoing scams, Morrissey recommends that sellers:

Never agree to anything over the phone or email if they were not the ones who initiated contact with the “buyer.”

Use only licensed real estate agents. Agents must be licensed in the country or state where the timeshare is located. For out-of-country locations, contact the American Resort Development Association (ARDA) at 202-371-6700. Always request a contract in writing, including refund policies. In Colorado, consumers have five calendar days after purchase to cancel a timeshare contract.

Anyone interested in filing a complaint, he said, should contact the Federal Trade Commission or visit its website.

Mitch Morrissey, a Democrat, was elected District Attorney of Denver in November 2004 and was sworn into office on Jan. 11, 2005. He’s responsible for the prosecution of more than 6,000 felony and 18,500 misdemeanor criminal cases every year.

Morrissey is also internationally known for his expertise in DNA technology, applying that technology in criminal prosecutions and working to ensure that DNA science is admissible in the courtrooms.