Palace Elite Resorts Class Action Lawsuit Alleges Timeshare Scam

Palace Elite Resorts S.A. De C.V. has been with a class action lawsuit accusing it of releasing information regarding ownership of timeshare purchases to other defendants as part of a scam to dupe timeshare owners out of a significant amount of money.

Plaintiffs Kelsey T. Baker and Frank W. Baker of Pennsylvania allege they purchased from Palace Elite two timeshares agreements. The first agreement, dated Oct. 17, 2013, involved the purchase of “120 All Inclusive Elite Weeks and 10 Rounds of Golf. The second agreement, dated June 19, 2015, involved the purchase of “140 All Inclusive Elite Weeks and 10 Rounds of Golf.”

In August 2017, the Bakers say they were contacted via phone by a man called Adam Glenn, who identified himself as a business broker who allegedly was interested in providing a purchaser or renter of the Bakers’ timeshare units.

Glenn reportedly had the following information about the Bakers and their timeshare agreements: their telephone number, the number of weeks the Bakers owned pursuant to their two timeshare contracts, the account numbers that Palace Elite assigned to them, and other information that the Bakers allege could only have been obtained from Palace Elite’s files.

Because Glenn claimed that he had numerous people who were interested in renting or purchasing existing timeshare units and that the rental and/or sale income would substantially favor the Bakers, they asked the man to email a proposal.

According to the Palace Elite timeshare class action lawsuit, Glenn forwarded a proposed contract with an offer for the sale of 10 of the Bakers’ timeshare units for $31,700. He also requested the Bakers to provide him with a copy of their contract with Palace Elite, which the Bakers reportedly sent on Aug. 25, 2017.

A few days later, Glenn allegedly informed the Bakers that the prospective buyer agreed to purchase the timeshare units and had deposited the purchase money. However, Glenn informed the Bakers that they had to prepay all resort fees before Palace Elite would allow for the sale of the timeshare units. He promised that these fees would be reimbursed at closing.

The Bakers say they followed Glenn’s instructions and sent $9,320 to a company called Integrity Professional Closing. Glenn subsequently offered to offer a higher number of the Bakers’ timeshare units for sale, at which point the plaintiffs asked Glenn to provide a contact with Palace Elite so they could confirm that the transactions were legitimate. They contacted the representative and received information from him that they believe confirmed the timeshare transactions were proper and legal. They agreed to sell more of their timeshare units.

Although they were promised that they would receive a significant amount of money from the sale/rental of their timeshare units, the Bakers say they never received payment. Instead, Glenn reportedly contacted them to inform them that the Mexican government required the payment of taxes on the rental/sale income and other requirements, at which point the Bakers “realized that something was awry.”

They demanded a refund, which they were told would take 60 days. Although they were promised payment and documentation, the Bakers say they did not receive the money and documentation they were promised. According to the timeshare scam class action lawsuit, the Bakers suffered damages of more than $27,000.

“Needless to say, Plaintiffs’ time-share units were never rented or sold, and no contact from any party-defendant, but for Palace, was subsequently rendered possible as all contact telephone numbers were disconnected,” the Palace Elite class action lawsuit says. They subsequently contacted their local police department and the Federal Bureau of Investigation to report the alleged timeshare scheme.

The Palace Elite timeshare scam class action lawsuit alleges violations of the Federal Racketeer Influenced and Corrupt Organizations Act, Pennsylvania’s Unfair Trade Practices Law, common law fraud, conspiracy and negligence.

The Bakers are represented by Stuart A. Eisenberg and Carol B. McCullough of McCullough Eisenberg LLC.

The Palace Elite Resorts Timeshare Scam Class Action Lawsuit is Kelsey T. Baker and Frank W. Baker v. Palace Elite Resorts S.A. De C.V., Trading as Palace Elite and Palace Resorts, et al., Case No. 2:18-cv-00319-WB, in the U.S. District Court for the Eastern District of Pennsylvania.