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How a retired highway patrol officer lost over $900k in a timeshare scam
Seth Combs
April 15, 2024
Table of Contents
Sometimes, truth is not only stranger than fiction but also far more heart-wrenching. When we think about our golden years, we picture tranquility, relaxation, but for a retired highway patrol officer and his retired nurse wife, their dream became a financial nightmare. 💔
In 18 months, they went from retired in Florida with multiple houses to selling a childhood home, taking a loan from their children, and losing $900,000 to scammers in the Mexican Cartel.
In their seventies, James and his wife had raised their kids and were enjoying their retirement in Florida.
Decades earlier, they had bought a timeshare in Lake Tahoe for $8,000. The timeshare was great but they weren’t using it much anymore and still paying annual maintenance fees. They wondered if they should sell it.
And that is when they got a call.
One day in late 2022, James got a call from Michael (scammer) from a company that identified themselves as Worry Free Vacations.
Michael asked James a simple question - do you want to buy a timeshare? James responded by letting them know he already owned a timeshare.
Michael was excited and asked James - do you want to sell your timeshare? And Michael proceeded to explain that a Mexican businessman, was interested in the timeshare and willing to buy it for about $20,000.
It sounded like a great opportunity. James was going to sell his timeshare at a profit and put an end to the annual maintenance fees.
Before he continued, James wanted to make sure this Mexican businessman was legitimate so he googled his name and found the businessman was a real person and a respected individual. James was satisfied with what he found and ready to sell his timeshare.
The Scam Begins
Soon, James was going back and forth with Michael from Worry Free Vacations to get the paperwork ready for the sale. A couple weeks after they finalized the agreement with the buyer, James is told he needs to send a couple of thousand dollars to facilitate the purchase.
Michael stated these fees were necessary for cross-border registration and that these payments were going to the Mexican government.
So, James begins wiring money to a bank in Mexico to facilitate the transaction.
Instead of the transaction being completed, James is informed that there are more fees to be paid, and is told the buyer will reimburse the fees once the transaction is completed.
Michael reassures James that the money is in a commercial escrow account in New York, and send documents to show all the payments that James has made and will be reimbursed. Yet, every time James believes the transaction is going to close…another fee comes up.
After more than a year James has sent over $300,000 in fees, and every time he asks for a partial release of funds, they refuse.
Complexity - The Heart Of A Good Scam
At this point, Michael confides in James that this transaction is really complicated and it will be difficult for James to get his money out.
Instead, Michael suggests to James that he can make a lot more money by investing into an environmentally conscious development in Laredo, Mexico. This real estate investment is guaranteed to earn a lot more than $20,000.
Now, James is trying to figure out a way to get his money back and this seems like it might be a chance to get his $300,000+ and make even more.
Guess what happens next - more fees.
Every time James pushes back, he gets more excuses. He even gets a call from someone claiming to be an agent from the Mexican government. The agent informs James that he will never see a penny if he doesn’t pay the additional fees.
Desperate to get his money back, James sells his childhood home and takes a $150,000 loan from his daughter and son-in-law. It’s been 18 months since James received that fateful call from Michael at Worry Free Vacations.
James has now sent over $900,000 to the scammers in Mexico.
Now, James is contemplating taking out a second mortgage when his daughter steps in and hires an attorney.
Finally, with the help of a fraud attorney and his daughter, James comes to the realization that it was all a scam.
Defeated, James tells Michael at Worry Free Vacations that there is no more money. Once Michael realizes there is no more money left, he stops calling James and moves onto the next victim.
Now, James and his wife are left picking up the pieces and paying off their debts.
For those outside of the scam, it looks like a blatant scam. It’s not that easy though. These scams are complex and prey on people’s trust, emotional vulnerability, and financial situation. In 2023, over $38 Billion was exploited from senior citizens in the US, and that number may still be low.
If you or someone you know has been involved in a scam, please email me and I will help provide the support and tools needed to help.
To listen to the New York Times Podcast 🎧 on this scam, click here.
So, how does the Mexican cartel play into the timeshare scam?
Money.
The FBI estimates that over $300 million has been lost to the timeshare scam over the past five years. That’s not all. They estimate that only about 20% is reported, meaning this is a billion dollar enterprise.
It’s a much easier operation than moving drugs because there is no inventory and is practically untraceable.
The cartel finds people who can speak English well, obtains information on timeshare owners in Canada and the US, creates a call script, and from there it is a numbers game.
To learn more about how the cartel moved into the scamming business, click here.