Timeshare Warning from a Resident

Other's Experiences & Efforts

These are others' experiences or comments in their efforts to get their money back from the Velas, especially the Velas Vallarta in Puerto Vallarta. We all want our money back.

November 16, 2010

20/20
147 Columbus Avenue
 New York, NY 10023

Dear 20/20 Producers,

I am writing to tell you of the horrible timeshare scam I have lost thousands on in hopes that you will be able to help others spare themselves the same experience.  I must ask you to please keep my identity concealed if you decide to follow up with this piece. I have provided all the documents. 

On March 10, 2001 I purchased a timeshare in Puerto Vallarta, Mexico.  This timeshare was simply outstanding in view, & I felt thrilled that I could give myself such a luxurious treat.  I was 35 yrs old & had gone through a horrendous experience with Non Hodgkin’s Lymphoma.  I felt that I deserved to enjoy life as I had just been through the ordeal of my life.  My father had died in Feb 2000, I was in a near fatal car accident in March 2000 and was diagnosed with NHL by May.  Not a great year.

I was told that this timeshare came with an 90 day option to purchase an annuity with a 25yr term and fixed return of $25, 350.00 at the cost of $1014.00 which I purchased on June 6, 2001. It seemed like a great idea to get the principle back at the end of the term for the timeshare purchase.  It was a great incentive. This annuity was a main selling point in the sales pitch. I had no idea that this annuity was not legitimate.  I trusted the young, earnest, seemingly helpful sales person.  I was told that the resort was American owned.  This was another selling point, as you trust those you are most familiar with, and all around there were American sales people selling units to other North Americans.

 I received a contract from Global Capital Insurance Ltd. Policy # A11578 and a certificate #1054 confirming this purchase.  This annuity was purchased through Club Velas Vallarta. Since that time I have paid my maintenance fees to Promotora Turistica Punta Bete, SA De CV, 8525 Sunset Blvd. West Hollywood CA 9006.

In July, 2008 when I returned to Velas Vallarta things started to fall apart.   I was asked to attend a ‘membership update meeting’.  This meeting was conducted by a salesperson named Maney, who wanted to sell me an ‘upgrade’.  During this meeting ‘Maney’ quoted many outrageous amounts for the upgrade & then told me that I didn’t have an annuity. If I had the annuity, I could get this great new program for only $10 000 which is the cost of all of maintenance fees over the next ten years anyway.   He said he would check by calling the ‘registration department’ in California.  Then he came back and confirmed that I didn’t have it.  This shocked me since I knew that I did.  I was very upset that they did not have any confirmation or correct information about annuities that they are promoting/selling through their timeshare contract.  They also use this annuity to tell buyers that the ‘annuity’ will help offset the purchase price since they will get their principle back at the end of the contract.  Maney offered to sell me the annuity plus the upgrade for $40 000 or so and insisted that it was too late for me to get the $1000 option originally offered since the time had elapsed. This made no sense to me.  I left this very long meeting feeling upset that there was no record of this annuity purchase.

I immediately wrote to the Velas Vallarta sales dept to inform them that I did indeed have an annuity when I returned from the trip.  I also wrote to them again in Dec. 2008 with my reservation, telling them to keep it on file and to send email confirmation of receipt of my email.  I wrote to them about the way the meeting had upset me, with salesperson ‘Maney’. They did not reply.

When I returned to the Velas Vallarta in Aug, 2009 I was invited to another ‘update meeting’. I was anxious to tell them that I did have my annuity and give a copy of my certificate. At this point I was unsure of who the payout was from as the policy was at home and I had tried to locate this company but had not received any response.  Since this annuity was/is featured so prominently in their sales pitch I wanted to ensure that they knew I had it.

 At this meeting I first met with a young lady.  She was new.  When she was unable to convince me to purchase the upgrade a ‘sales manager’ arrived named Alberto Rayas.  I was still fuming about the mix up with Maney.  He told me that Maney had been fired due to his unprofessionalism.  I believed it.  Then the upgrade talk began again but considerably more high pressured.  Mr. Rayas had many great reasons why I should invest in the update.  Once again an annuity was presented as a means to offset the purchase price.  I told Mr. Rayas I couldn’t afford it and moreover didn’t need it.  I told him that I liked the suite I had. I told him that as a vegetarian I had no interest in the all inclusive.  I wish I’d just got up and left.  The meeting  went on for hours.  The sales person, Alberto Rayas brought up the annuity again as a means to offset the cost of this upgrade.  He also said he was ‘buying back 5 weeks’ from to end my contract 5 weeks earlier and therefore reducing the cost of the upgrade.  I was also going to sell the remaining weeks at a quoted price of $2950 approx each to pay off the visa debt.  I was skeptical but thought that I could give it a shot, if worse came to worse I’d just use the upgrade.  I asked repeatedly about how my initial annuity was going to reduce the price of the upgrade which he said normally sold for $40 000 like Maney had said, but due to me possessing the original annuity it could be reduced by taking out some kind of loan against it.  I was confused about the involvement of the annuity so I kept asking about it. He said he made a phone call and the transaction was approved. I was confused about what the transaction was.  It was the transaction that involved using the annuity to offset the cost of the upgrade. 


But there is no written information in the contract or anywhere else to indicate any of these transactions occurred. He said that the resort would buy back any remaining weeks that I didn’t want as well through an independent company, Dreams RSI as according to Mexican Law they could only ‘buy back’ 5 weeks as the owner.  Again in this contract the annuity option is presented.  This time there is a one year option to buy a annuity for an anticipated value of $22 439.00 for $1121.95.

I was stressed out severely by this meeting.  I researched Mexican timeshare law later that night and presented him with a letter the following day canceling my contract. This was within the five day rescission period.   He refused to accept it.  I said loudly, ‘Are you refusing to permit me to cancel this timeshare contract? I know that I have 5 days according to Mexican law’ He told me that was true but not for this addendum, only the ‘original contract’ from 2001.  In both contracts there is a stipulation that the buyer cannot get a refund.  This is illegal according to Mexican law.  More lies.  Now I was also getting scared of them.  If they would not allow me out of the contract when provided with a written letter in the lobby, with a witness, what else would they do?


I called my credit card company to cancel the transaction but they said it had gone through.  Furthermore I suffer from cognitive exhaustion and fatigue.  After an hour I was very tired.   This is a result of the chemotherapy.  Yet through all of this I never suspected that the annuity was also a scam.  I couldn’t imagine such a blatant fraud being perpetrated on long time, faithful customers. It just doesn’t make any sense. I would have loved to continue my original contract with them but that is not their vision. 
I was intimidated having another 6days to spend there so I didn’t know how to pursue it further.  I was worried about them planting something in my suite and me ending up in jail.  I decided to let it go until I got back home.

I resumed trying to figure out what happened with this annuity and this contract when I returned home. I was in touch via email with a person in the contracts department called Roberto Garcia.  I have attached all the emails.  He confirms in one email that I do have the annuity said to mature at $25 350.00.  I also tried to follow up to sell my weeks. There didn’t seem to be any recourse so I wasted another 1000 listing them with this Dreams RSI company.  Mr. Rayas had said that it would take about 7 mo before anything sold.  It’s been over a year.  He assured me I would be thrilled with the results of selling these weeks with the ‘new program’.

The straw that broke the camel’s back was me not being able to make heads or tails out of this new contract that I never wanted.  I’m out thousands of dollars.  I don’t understand the all inclusive where there are so many bizarre conditions and stipulations.  I haven’t sold any weeks and it seems that the annuity is non existent.  The entire contract is based on verbal promises which contradict everything in writing.  It’s a fraud.  I can’t afford to take them to court to recover my money.  The whole contract has been negotiated on false premises and in bad faith. Mr. Rayas said they bought back 5 weeks, and shortened the contract yet it has been extended.  I was exhausted after hours and hours so I used my right to cancel the next day & they simply refused to give me my money back.  Mr. Rayas started to intimidate me with allegations of slander and libel and asked me to sign an oath not to ever make any negative complaints about this resort.  Here I have written the truth of what transpired between the Velas Vallarta and there are plenty of online testimonials to corroborate that this is their standard practice.  I am very disgusted with Mr. Rayas, “Maney” and all the other ‘salespersons’ at this resort. I can’t tell you the level of betrayal that I feel towards this company that manipulates, lies, deceives and abuses all of it’s clients.  I cannot imagine the amounts that they are accumulating through maintenance fees, canceled contracts, alleged fraudulent annuities etc.

In my last email dated Nov. 2, 2010, I asked questions about the contact information of the Insurance company they are promoting/ selling these annuities for, why I have never received any updates or status reports, etc and I have not heard from Mr. Garcia again.


On Nov. 6, 2010 I found a website for this annuity company, Global Capital Insurance Ltd.  They cite Global Capital Ltd as their parent company.  I sent an email to the contact provided and got a response from Ms. Barbara Saunders within 30 min.  The logos of the two companies are different.  She offers to send me all required information if I send her my address etc.  Not wanting to give further information out to any more con artists I have declined to do so.  I checked out the address and previous US address using a satellite internet locator and does not seem to be a financial district of any kind. 

All receipts, copies of transactions, email communications, are provided here. I have also included the complaints of other customers who have fallen for both this timeshare and annuity scam.  I hope that you can attend one of these sales meetings and film their heavy handed tactics first hand.  It would be enlightening for all the viewers. I wish this scam would get shut down asap.

Sincerely,
R. Engineer

Hello Duke!

Happy New Year! Let this year be scamless :)  Today I received another update on the Executive Property Management scam and am outraged, to say the least.  The letter came in TODAY! Same names of the crooks, Malcolm Lovig and Brian Goodwin (what a funny choice of sur-names).

I would love for you to publish my story.  I am not completely sure how to proceed on finding the executive property people and getting all the money back.  Should a private investigator be hired? Seriously!

My husband and I vacationed in Puerto Vallarta in December of 2008, around Christmas time.  At the airport we were "invited" for a fully paid tour at the Velas resort, just outside of the town.  The taxi was paid for, the childcare was provided and the breakfast too, of course.  We have attended time share presentations before, so were sure there is no way we are actually going to buy one this time... Our salesperson was Robert Weinburg, I think.  He was very polite and courteous.  He said, this is not a "regular" time share purchase, this is an investment opportunity.  As many who fell for this know, our weeks  would be rented out and before we know it, our 36 thousand dollars put toward the purchase would make us 20K; 28K the first year from the rental of our weeks and 28K for the second year from rent.  I asked him numerous times in disbelief if this what actually happened all the time and he said, of course, Mexico is the best destination for conferences, etc.  Of course we have not seen a penny from the promised money.  First there was a swine flu, then drug wars in Mexico, then economy bad... all the fine stories.
I took my whole family to the Velas resorts at the beginning of 2010, there were 8 of us.  We paid the "all inclusive" fee for each person and TWO maintenance fees, since we needed two units.  I assumed my dues were paid up for two years, but NO! It turned out that the second maintenance payment went to week 25.  I kept explaining to the personnel who was contacting me about the payment that their resort may not even be there in 25 years, but they kept harassing me.  To this day, I have not paid a dime on that maintenance fee, and am not about to do so.
On that visit, in 2010, I was also summoned for the short presentation to pay some silly 9 thousand dollars so that my weeks would rent better. I could not believe my ears!!! I basically told them to go screw themselves and to stop bothering me with stupid non-stop pay-ups!
Of course I still owe all the money for the purchase of the time share I don't feel like using anymore.
This year I was "lucky"!  Kind people from Executive Property Management in CA contacted me and offered to pay 26,000 dollars for the wholesale purchase of my time share! I was so happy!
Meagan Schwartz was a wonderful contact person, who sent me the Purchase offer.  A little later it turned out that I had to pay "transfer tax" imposed by Mexican government.  It had to be wire transferred.  I sent out 3,222 bucks and started anxiously waiting for my 26,000.  A week had gone by, the people on the other end would not pick the phone up.  Eventually I reached someone, yelled at them, told them they were crooks and that I don't want to deal with them anymore and asked for the money back.
"Malcolm Lovig" told me what a hard day he was having dealing with all the Mexican officials, and how his stomach is not used to all that Mexican food and that in the letter that I should have received in the mail I should have noticed that I need to pay another 2900 dollars in order for the deal to close.  I was outraged yet again.  I said that I don't print money, and that they could take that out of my "escrow account".  I was pleading with all of them to not scam me.  I told them I have no money, I have taxes to pay and a daughter to raise.  But no, they took all of my money and disappeared....

Sad but true!

Since then, and after finding this "scam site" I called FBI and reported my case with names and dates.  I would go on with this if I knew how.  I have the time, just don't have the money.  I think innocent people should not be ignored with scams like these.

If there is anything I could do, I would

Thank you for your time!
Sincerely,
Irina Barsky
224-522-2693


I do hope something will come out of your efforts. I've given up hope. Velas and many others would stoop so low just to make the sale. It was definitely the worst decision I ever made.They told me a lot of lies, the man who talked to us said that I can use my week to exchange with HI and I can break it up for a vacation in multiple locations. I found out much too late that that is not true. I bought thinking I would have that benefit which I could not have with my other timeshare only to find out that my other timeshare actually has more flexibility it being a point system. He showed me this confusing computation that meant to do just that. I even asked the same questions over and over to see if he's consistent and he was. So I thought he was being real but as I started to use it and spoke with HI and Velas the cold reality came out.

Did they hook you up with Sierra Rentals too? Because my woes involve them as well. I paid over $500 for them to rent out 9 of my 12 weeks and I have never gotten anything out of what I paid. I myself had been able to rent it out with me posting my own ad and paying fees for it. I wish I can have them refund that money but how? It's been 4 years since. I kept thinking they will eventually contact me with a renter as they kept reassuring me. Until a whole 2years has passed and there was nothing. I don't know where to file a complaint. It wasn't enough that Velas swindled me, they had to make another fool out of me with Sierra. They never said how they will rent out my weeks, just that they will. Now I know all they do is post an ad at their wibsite which doesn't have traffic at all! How will people know about it? If I had known that I never would have paid that money. It's a ridiculous amount for just posting an ad without any hope of ever being seen. 
  
Please if you know anything or anybody who can get these people, let me know because I would like to put a stop to this. And I would like justice on all of us who have been swindled or scammed. Most of all I want to see that money back!

Sheilla


To Whom It May Concern,
Back last April, 2008 myself and two other people planned to stay at both of our Timeshares in Puerto Vallarta. We had one with Villa Del Palmar and One with Velas Vallarta. The first week we stayed at our Timeshare at Villa Del Palmar and had a lovely relaxing week. The second week we
went and Checked in with our Timeshare with Velas Vallarta. We were told that they had overbooked and did not have our three bedroom available and would we Be able to take a Junior Suite for one night and then the next day they would move us to our normal Three Bedroom Timeshare. We agreed and in return They gave us All Inclusive which was wonderful. On our second day they had scheduled us to go to their Owners Timeshare Update to become aquainted With what was new and exciting at the Resort. While there we were presented with a proposal that if we were to Trade into them our Timeshare with Villa Del Palmar, which at that time had $48,000.00 in Equity, and our $10,000.00 Equity with our Velas TimeShare that they would sell us 100 more weeks And that they had a Rental Program with a Company name Sierra that we could deposit some of our weeks that Sierra could rent on our behalf and therefore Recover any money that was initially layed out. After seven hours of negotiations we agreed to give it a try. We at no time were advised that we had Five days to cancel should we change our mind. We were clearly told by Joel Rodriguez [joel.z.rodriguez@gmail.com] and Mr. Jon Rayburn (jondavid43@hotmail.com) that within a definate nine month period we would see some money from our Weeks that we were to deposit with Sierra and that we would be so thrilled with the program that we would be returning to Puerto Vallarta to purchase More weeks from Velas. Mr. Rodriguez had even made a call to Sierra and I was able to talk to a representative from Sierra who assured Us that they were indeed a Rental Company and that they worked with over 1,000 companies that use there services to book weeks for companies Holding Sales Conventions at the Velas Convention facility. Here it is nine months later and I happen to google Velas Vallarta SCAM on the Internet and low and Behold there are well over 20 other people that have been shafted by the Velas Timeshare Sales People that have no problem whatsoever looking you Straight into your eye and boldly lie to you. I know truly believe that not one word out of their mouths was at all the truth. Something truly needs to be Done about Velas and the tactics that they tot to
American Citizens. I have truly loved the weeks I have spent in Puerto Vallarta over the past 16 Years but this truly has left a very bad taste in my mounth and doubt that I will ever again vacation anywhere in Mexico.

It is a fact that many of us here in the United States that have been taken advantage of are presently seeking Legal Counsel to initiate a Class Action Law Suite against Velas Vallarta and PROMOTORA TURISTICA LAS VELAS which operates here in the Los Angeles area on Behalf of Velas Vallarta. For Velas Vallarta to be allowed to operate as such and lure unsuspecting American's into their web of decite is just as bad as what Has been going on in Mexico with the Drug Cartel. They both need to be shut down and stopped dead in their tracks. A Cancer such as this will only spread and spread and will trulybring down the Vacation Trade in Mexico. I am sure that Mexico Thrives on money that is brought into your country by Tourism. Please lets put a stake into the ground and do something about this terrible Situation that is happening. Velas Vallarta should be shut down and driven out of the Vacation/Timeshare business.

Furthermore to add Insult to Injury we received the below Email from Sierra last December; We were offered  $99,000.00 for our weeks and entered into negotiations with them and every month they came up with a different excuse at to why the deal had not closed.  After seven months we determined that it was just another SCAM they closed their doors and probably moved to greener pastures.


From: corporatesales5@sierraresortservices.com
To: rmitten@msn.com
Subject: Sierra Resort Services Resale Offer
Date: Mon, 14 Dec 2009 10:45:16 -0600

Dear Robert A. Mitten Jr., Randy Ray Duncan and Ms. Adeline Lavigne
As you may recall we here at Sierra Resort Services are the rental and resale brokerage you enrolled with when you made your purchase at Velas, in Puerto Vallarta Mexico. We are currently in negotiations with a large Mexican resort residence club that wishes to acquire inventory in Velas Vallarta. If you are interested in the possibility of selling your vacation property at Velas Vallarta, we have an offer to present to you.

Please remember if you have maintenance fee, (these typically are starting above $500.00 USD) then you have the original program, and qualify for this offer.

If you are interested in more information regarding this offer, please respond to Bill Gomez at corporatesales5@sierraresortservices.com or call toll free at 1-800-542-9842.


 Thank you,
Bill Gomez
Corporate Sales Division
Sierra Resort Services S.A. de C.V.
848 N. Rainbow Blvd. Suite 2110
Las Vegas NV. 89107
USA/Canada Toll Free..... 1-800-542-9842
Fax.................................1-702-948-0625


Robert A. Mitten, Jr. R & R Lhasa Apso's www.randrlhasaapsos.com 11091 Irwin Dr. Stanton, CA 90680 714-896-9540 (Home) 714-381-6694 (Cell)


The James Story:
We arrived at Velas Vallarta in November 2007. At check-in we were given a book, Conde Nast Johansens "The World's Leading Hotel Guide to the Americas",  a listing of top hotels across North, South, and Central America. The Plaza, the Pierre, the Mark, all of the best in New York, where we spend a great deal of time, were featured as well. We were then walked over to a sales person who gave us the "Time Share" pitch to meet with their people. She had a Conde Nast Book on her desk. I've heard the pitch before and I am not interested, my wife loves the girl; we signed up for the pitch. We are shown to our room, in our room, on the coffee table, the Conde Nast Book. We arrive the next day for the pitch, the salesman has the Conde Nast Book on his desk. The Pitch: Buy a time share for $60,000 (no need to see it, you rent it) and you receive 4 weeks per year at any of the Conde Nast properties in the book, for 25 years. Done deal! Never even asked to see the "Time Share".  The properties in the book would average $1,000/night. At 28 nights a year for 25 years plus rental income, it was a no brainer. Further, Bank of America works with them and you can put 40% down on a newly opened credit card. All real estate owned by my wife and me are in my wife's trust. We therefore purchased the "Time Share" in my wife's name as well as applied for the credit card in my wife's name.

Not two hours later at lunch we hear three couples complaining about the "Time Share" presentation. We are told they are a bunch of crooks and that they have NO affiliation with Conde Nast, and that we had just been duped. One of the couples and myself immediately went to see the Manager of the "Time Share" Program.. His name was Johnny Noe. We explained everything in detail. His Response: " I told those men not to use the Conde Nast Book and not to mention renting, we have no association with Conde Nast" ( contrary to our entire pitch) He went on to say, "The purchase is firm and there is no backing out".  I asked him to explain how all 10-15 desks directly outside his door could all have the Conde Nast Book displayed on top of the desk if they are not allowed to have them.  I explained we were out of the deal, the credit card was stopped, and I wrote on his stationary that we were cancelling the deal, made a copy and left.

My wife's application to BOA, was stopped through a phone call to BOA minutes before meeting with Johnny Noe. We were successful in diverting the biggest scam I had ever seen. NOT QUITE. Johnny Noe, took my wife’s application, our income etc. and merged it with information I had given earlier completing various drawn out paper work, signed my name, and transferred the ownership of the "Time Share" as well as the BOA credit card application to my name alone. A month after returning from Mexico, I received a credit card statement from BOA in my name for $24,000. I have never to this day received any documentation nor had any contact whatsoever with Vela Velarta. My attorney has made every attempt to reach them, but to no avail. It is as if I had never been there. Meanwhile BOA gave them $24,000 on a fraudulent credit card and refuses to accept my story. They have made every move possible to ruin my credit. Never been back to Mexico, and never will. It is hard to believe even to this day that these men could so easily commit such out right fraud. Velas Vellarta is as bad as it gets. Do not go there....... B. James
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