IN THE STATE OF FLORIDA
LETTER OF EXPLANATION
On May 16, 2008, at a meeting of the elected Board of Directors of Coral Beach Travel & Tours, Inc. (CBTT), it was decided to shut down operations due to the theft of the company’s client database and subsequent burglary and the grand theft of a remote storage server and its digital backup containing the CBTT client database. Evidence of credit card fraud was reported to CBTT and the proper authorizes have been advised of these events.
In February 2007, evidence showed that the CBTT database was stolen and sold to another timeshare developer in Kissimmee, Florida. The discovery of the theft was made clear when our clients started to complain about being harassed by Summer Bays Resort’s telemarketers. For the next six (6) months, complaints stated CBTT clients were being intimidated with high pressure and strong telemarketing techniques to buy an Orlando vacation package to Florida that included a timeshare tour of Summer Bay Resorts.
On September 11, 2007 and upon advice from legal counsel, a demand letter were produced and sent to Summer Bay Resorts, et al, located in Clermont, Florida, to “Cease and Desist” from using and/or contacting any CBTT clients for any purpose. Summer Bay Resorts and its marketing and telemarketing departments admitted to buying the alleged stolen database, stating that they had no knowledge that the database was stolen. Summer Bay executives would not disclose to CBTT the name(s) of any person(s) or any company(s) that sold the CBTT database to them to date.
On November 23, 2007, Summer Bay Resorts, et al, made an advance settlement payment to CBTT for the one time use of the database. As of today’s date, despite the “Cease and Desist” the database continues to being telemarketed by Summer Bay’s timeshare telemarketing department as well as other timeshare telemarketing companies that promote Orlando vacations for the purpose of selling timeshare intervals to CBTT’s client to buy their cheap vacations and travel to Orlando.
On March 18, 2008, it was reported that the computer server that digitally stored CBTT’s travel software programs and client’s records was stolen from the server room from the Radisson Worldgate Resort, in Kissimmee Florida. The Kissimmee police were called and advised of the theft. A police report was produced and currently the theft of the server is under investigation.
Evidence of fraud from CBTT’s client’s credit cards continued to be reported, therefore CBTT’s credit card merchant services provider and insurance company were advised. CBTT took legal steps to protect CBTT and it’s over 200, 000 clients from this “Identity Theft” crime. On May 16, 2008, all of CBTT company banking and credit card processing accounts were closed and all monies and assets were frozen therefore forcing CBTT to close. All CBTT clients that used a credit card to pay for their vacations have been reported to the merchant services fraud department and risk management department. State and Federal authorities have been notified of the current position that CBTT is currently experiencing.
I apologize for the inconvenience that this preventive measures have caused CBTT’s clients and vendors. All client’s with reservations that have a canceled status, will be contacted once all security and legal issues have been resolved.
Christopher B. Quilter
June 16, 2008