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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.
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17 thoughts onPalace Elite Resorts Class Action Lawsuit Alleges Timeshare Scam
I’ve been contact by City Point Real Estate based in Utah and it’s the same people mentioned above. They had my old contract information and told me they want to buy out my contract. They provided a 1 page document with the offer. I was first contacted by Joseph Colombo. After I agreed to look further into it, I was contacted by Robert Gallagher. The next day, he had the one page document with the offer. I signed the offer and the next day he told me a bank account with Banorte Bank in Mexico has created. He provided a 1 page document with my name and the funds deposited by the buyer. The next step he claims is there is a permit required to by purchased from the Mexican government to do business in Mexico. Thanks to all those above, I now know it is a complete scam. I have notified Palace Elite.
Tell me more about these guys in Utah (Matt Iverson / Citypoint Real Estate)…They are harrassing my in-laws and to me its an obvious scam. Curious your experience.
I have names, numbers, email addresses, and a company in Boston, MA that contacted me, but luckily I did not do anything except sign up with Palace Elite originally which means my information was shared.
I have been contacted by two guys from a real estate company in Boston, MA who are offering a ridiculous amount of compensation based on a similar explanation above, but I have not paid any money and asked a lawyer friend about this only to confirm what I thought was a scam. I do have email addresses, a company name in Boston, MA and a telephone number.
hi, we are in the same situation they offered to deposit the money in an un-touchable account in our name, was this company in MA, Sunrise Real Estate?
and they said we would be able to make sure the funds are securely deposited before we have to pay the taxes and fees, we have not agreed to anything yet.
Thanks for your comments
Their trying to scam me with purchasing 10 weeks for $57k today. I’d like to know how they got my info.
I was scammed out of $10,571.70 buying a so called vacation timeshare package from Palace Premier at the Moon Palace on our honeymoon. I was told we had 40 weeks to use in 25 years, not telling me that those weeks did not get discounted and were not free or included in this price. Only 1 free week that was thrown in at the end to seal the deal that would have normally costs $2200. And a card of some sort that would allow for 50% off discounts to other hotels which I was never given. Biggest mistake of my life and I PAID for it for sure.
I bought in too & would like to presue. I never get my benefit services…. Zumatanning@gmail.com
I was mislead in getting a Elite membership. I was told the minimum that I would have paid each time I book at moon palace or any hotel that they are in with. Upon paying $1899.50 for down payment. I came back to the states and realize that the website as nothing that was offered. 10 days into and still trying to cancel. I was told I cannot cancel. Upon signing the contract we were told that we can cancel before we start monthly payment. Our first payment will be July 15, 2022, moon palace refused in cancelling. I can only talk to someone through email. All lies were told to get us in. Very misleading and unethical.
I signed up in December 2022 at moon Palace jamaica.
I found out they are misleading I told them I wanted to cancel few days after which they refuse to do.
I’m still trying to get them to cancel but they are adamant that my deposit $800 is a risk, they disabled my account & said that their collection will not stop for the balance I owe usd $7200.
They didn’t even tell me it is a timeshare or that I can’t cancel, I searched them up on the internet that’s how I found out & that so many other persons has the same or similar issue with them.
I meant December 2021 I signed up
My friend and I were talked into signing a contract with Palace Elite on 7/24/22. A few days later, on 7/29/22, while we were still in Mexico, we changed our minds about this and went to the office to terminate the contract. However, we were told that they did not have any cancellation policy. Instead, the agent with whom we signed the contract, recommended us to enjoy our time in Cancun and when go back home, call our credit card company and put the charge on hold. After we had done what he recommended and filed the dispute, Palace Elite sent our credit card company the letter where it was stated that we failed to cancel our contract within 15 days. I have a proof that we were there to cancel.
This just recently happened to me but I did not send them any information or any money. They used the company Travel Elite LLC and Security National Title. They had all of my information to include my membership number. Very scary
We have 17 weeks left and Palace Resorts says our membership has expired. However, there is no expiration noted on the contract and instead the contract has an addendum stating “Palace Premier offers an extension to your membership No 3010121 for the period of time necessary to fulfill the use of all premier weeks left in it”.
Expiration??? That’s crazy!! We have so many weeks we will have to will them to our dependents…. time to get out my contract!!!… AGAIN!!!!
How do you join the class action lawsuit??
Let’s get one started!!! Zumatanning@gmail.com