U.S. markets open in 7 hours 53 minutes
  • S&P Futures

    +18.00 (+0.52%)
  • Dow Futures

    +133.00 (+0.47%)
  • Nasdaq Futures

    +51.50 (+0.44%)
  • Russell 2000 Futures

    +10.50 (+0.65%)
  • Crude Oil

    -0.27 (-0.65%)
  • Gold

    +5.20 (+0.27%)
  • Silver

    +0.18 (+0.70%)

    +0.0018 (+0.15%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    +0.17 (+0.58%)

    +0.0027 (+0.20%)

    -0.1650 (-0.16%)

    +1,173.82 (+10.62%)
  • CMC Crypto 200

    +6.80 (+2.84%)
  • FTSE 100

    +4.57 (+0.08%)
  • Nikkei 225

    +96.56 (+0.41%)

Diamond Resorts Announces Big Win in Battle Against Timeshare Exit Company Defrauding Consumers

So-Called Timeshare Exit Companies Mislead Timeshare Owners By Charging Large Upfront Fees and Not Delivering on Promises

LAS VEGAS, Nov. 12, 2019 /PRNewswire/ -- Diamond Resorts®, a global leader in the hospitality, vacation ownership and entertainment industries, announces yet another significant victory in its lawsuit against another so-called timeshare exit company's principal, Jason Levi Hemingway, the sole owner of Principal Transfer Group, related to his misdeeds and those of his entities.

Diamond Resorts Logo (PRNewsfoto/Diamond Resorts International)
Diamond Resorts Logo (PRNewsfoto/Diamond Resorts International)

Diamond Resorts has taken an aggressive stance to protect its customers from the disturbing rise of unscrupulous exit companies that charge timeshare owners thousands of dollars in upfront fees, but do not deliver on their promises to help members transition out of vacation ownership. These fraudulent companies often leave customers in financial peril, with additional debt and damaged credit histories.

Diamond Resorts had sued the Missouri-based CLS, Inc. d/b/a Principal Transfer Group and Jason Hemingway, and others. Claims were made for breach of contract, tortious interference, trademark infringement, trademark dilution, false advertising and violations of the Defend Trade Secret Act and the Computer Fraud and Abuse Act.

The Missouri Court has entered default judgment on all counts against Defendant, Jason Hemingway, and in favor of Diamond Resorts. Diamond Resorts will now have the opportunity to file a motion for a final judgment against Jason Hemingway, requesting both a permanent injunction and monetary damages. (CLS, Inc. d/b/a Principal Transfer Group had previously been defaulted and Diamond may similarly pursue them further.)

To date, Diamond has pursued legal actions against 12 so-called "timeshare exit companies," resulting in nine injunctions and an attorney being disbarred. In recent months, Diamond has obtained a preliminary injunction against a ring of other Missouri-based third-party companies, including Exchange Points, PR Rewards, VMG Resorts, Kyle Brown and Vacation Management. The companies are accused of defrauding Diamond Resorts customers by falsely claiming to be associated with Diamond and then charging fees to unlawfully "rent" Diamond vacation points on their behalf.

"Timeshare exit company" activity has been particularly rampant in Missouri. The Better Business Bureau recently won an award for its in-depth investigative study of Missouri's timeshare exit industry, which prompted the Arkansas Attorney General to announce a lawsuit against one of the companies featured in the study.

"We hope that this and our prior legal victories sends a clear message to illegal companies looking to prey on our valued customers. Diamond Resorts is committed to protecting consumers and stopping the reprehensible actions of third-party exit companies," said Mike Flaskey, Chief Executive Officer of Diamond Resorts. "We're honored that the vast majority of our members love their vacation ownership because it allows them to spend quality time with family, friends and experience unforgettable getaways. But we also recognize that when life circumstances change, some members may want to transition out of their ownership. Diamond Resorts encourages any customer looking to transition from timeshare ownership to work directly with us to do so in a safe way."

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 Diamond membership ensures that people are always looking forward to vacation.


View original content to download multimedia:http://www.prnewswire.com/news-releases/diamond-resorts-announces-big-win-in-battle-against-timeshare-exit-company-defrauding-consumers-300955932.html