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Diamond Resorts Internationalcorporate fraud

I purchased a timeshare at Ka'anapali Beach through Diamond Resorts. During a sales presentation I was told I would save money on maintenance fees if I moved my deeded property ownership into the Hawaii Collection which included the Point at Poipu. On October 14, 2011 I received a maintenance fee invoice which increased by $2, 363.50 or 140%. The increase is for a project that starts on 6/11 and takes 5 yers to complete, yet they are requiring me to pay 84% or $2, 000 by 1/1/12 or face additional fees, penalties, suspension and possible foreclosure. The Board knew of these issues for three years, but waited until 10/11 to communicate this to the owners. A five year project should not include 84% of the money upfront based on estimates and not actuals. There was simply one line item for the total due by the Hawaii Collection of $25, 356, 399 (total project cost $65.8M) with little to no details. This gives new meaning to "Corporate Greed". A corporation of this size should be able to finance the project and pass this along to the owners over a 5-Year period based on actuals and not estimates. Requiring me to pay an additional $2, 000 or 84% by 1/1/12 with an advanced notice of 2.5 months is nothing shy of a corporate scandal. During the sales presentation I was told that I would save money on maintenance fees when mgmt. knew of these costs for three years and failed to include this information in the sales presentation. They simply needed more people to pay for their mistakes. A formal request for detailed information will be sent to Diamond Resorts with the appropriate Attorney Generals Offices copied. The sales presentation to move my deeded property to the Hawaii Collection was done with management's full intent and knowlege that my maintencance fees would significantly increase. On the Assessment Payment Schedule, only one group of owners can finance over 5 years, those with 51, 000 points. What does that represent, 1% of the owners? So, the remaining 99% are basically paying upfront. I am part of the 99%, shall I bring some protest signs for my next visit to Maui?

Responses

  • Lo
    louis66 Nov 20, 2012

    We purchased over ten years ago in Florida, 4500 points, maintenance fres were low and we liked it when we used it. On 2009, we went to Hawaii and like stupid people we were convinced into adding an additional 7500 points, they wanted for us to transfer the Florida collection to Hawaii, we didn't. We have finally paid off the Florida, but because we haven't paid the Hawaii maintenance fres, we can't use the system. The biggest problem is that the water intrusion fee fee is very high and we were never told of a repair that they new years prior that was coming up. If they would of mentioned this, we would of not paid. I owe 2010 and 2011 fees, $5000 worth and won't pay. I want to join any law suit against them. The sad part is how to avoid your credit being damaged or worse, even if I wrote them a check in full, how can I get rid of this time share. LETS UNITE

    0 Votes
  • Lo
    Loretta Deto Apr 11, 2012

    As a follow up to all who posted comments regarding the need for a lawsuit. I lawsuit against Diamond Resort International was filed Friday April, 6th in Federal Court in the state of Hawaii by a group of owners at the Point at Poipu. Details will be coming out shortly with information on who can join in to make this a class action suit. Follow Concerned Owners of Poipu Point Facebook page to see how things are going. Post this information on your own web pages and pass the word to help exposure our efforts to right the wrongs that we believe Diamond Resorts have placed upon us. Spread the word to any media outlets such as tv, radio, newspapers, magazines and of course the Internet. Hopefully we can see a news story pick up on our efforts.

    0 Votes
  • Oz
    OzWiz Jan 31, 2012

    Does anyone know any information on a class action? The name of the attorney or contact person. Thanks.

    Concerned Owner

    0 Votes
  • Va
    Vacation Owner Dec 08, 2011
    This comment was posted by
    a verified customer
    Verified customer

    A&J Mack

    Thanks for posting, you nailed it the head Diamond Resorts International's big money grab plan in a nutshell.

    First take over enough of the HOA Board at any given resort to get a strong hold (sometimes done under the radar)

    Next start Amending/Changing the Articles of Association so they fit better with the SCAM (make it all "LEGAL" the same way the politicians do it, just change the rules).

    With the new rules in place now Jack up all of the FEES and Special A$$essments (Much like "TAXATION WITHOUT REPRESENTATION") this forces other owners to default and get foreclosed (they STOP PAYING THE EXTORTION MONEY) or they buy into THE PONZI SCHEME, this is the crap DRI sells at their high pressure sales CON. The salesman tells you "it will save you money because you can use some of your worthless points to pay DRI's over inflated fees" (paraphrasing). How many folks were defrauded in to the Hawaii Collection using that exact tactic this past summer clueless? All of them...Right?

    By the way Clueless exactly how does that bribe/discount calculate in to the Resort's budget (which line item and who handles the audit on that? just asking cuz that is going to get asked by the prosecution I'm sure). It seems to me like the discount needs to be paid by someone, if it is part of a "REAL" budget (not some FAKE made up crap by some ego-centric ConMAN trying to EXTORT as much money from folks to which he has a REAL LEGAL fiduciary responsibility to protect, not harm). The budget that is supposed to be used to maintain and run the resort from which it is drawn not some EVIL GREEDY TRAVEL EMPIRE for KING FULLOFHIMSELF used to SWINDLE/FLEECE Thousands out of there vacation dollars.

    Maintain (v. used with object); to keep in an appropriate condition, operation, or force; keep unimpaired: to maintain order; to maintain public highways. TO MAINTAIN THE RESORT, that is why the fees are paid not to allow some has-been used car salesman to rub elbows with the Blue Bloods.

    BTW/JMO

    CVO

    0 Votes
  • Al
    alan and julie mack Dec 05, 2011
    This comment was posted by
    a verified customer
    Verified customer

    I have been an owner with my wife since 2002. We did the presentation to see about the pt system. We quickly saw there was no benefit learning they wanted not only our deed but also an additional 25k to get it. We were then surprised at the change of professionalism which turned into degrading comments as to our intelligence. They got hostile as we clearly could explain our stand & doing the math. They told us the people moving to pts would get first pick for reservation. We knew they were trying to intimidate us to force us to not only hand over our deed but at a 25k cost.
    Once they couldn't strong arm us into paying to give them our deed, they tried resorting to fraud and steal our deed. We paid off our time share and called numerous times to get our deed to show we fully owned it. Finally, we were told they were sending paper work to get this done and to sign and notarize it.They would send it to the state of HI to get a copy of our deed. We did just that trusting the paperwork was for that very purpose. Instead, it was a quit claim deed giving up ownership of our property to Diamond Resorts. We called to see where the deed was and they told us we deeded our property over to them. The women we spoke to was so ridiculously rude to us. We couldn't believe we were dealing with a time share co. It felt more like a bunch of cheap con artists. We explained to them we had paid off our time share & just booked our vacation, so why would we sign over our deed. We threatened to get an attorney & get our recorded phone conversations. They finally agreed to the mistake and sent the copy of our deed. Now, we are finding out about this $5, 498 assessment that they are passing on to the deeded owners. We would love to be part of a class action lawsuit and will also be looking for an attorney ourselves this week as we are just finding out about this increase. If anyone would like to call us our number is [protected] & ask for Alan. Thank you.

    0 Votes
  • Ma
    Mary Kreutz Nov 28, 2011

    We have also just received a new maintenance fee. It started at about $800 about 7 years ago. Then it quickly went to $1300. We just got the new maintenance fee that is due in January or else for $3, 300. I don't know if we can even come up with that amount of money so close to Christmas and I've just retired. I don't know what to do. I was sold such a bill of goods about this timeshare. If there is a lawsuit going, or anyone would be interested in pursuing a class action lawsuit, it may be time to look at that. Some are getting very wealthy because of this scam and something has to be done. This is for the Diamond Resort at Point of Poipu.

    0 Votes
  • Tr
    travlingringo Nov 25, 2011

    I had posted the following on another section but will add it here as it's pertinent to the Special Assessment fee for Hawaii Collection owners, especially those of us at The Point at Poipu.

    I am an owner of three weeks (2 bedroom unit) at the Point at Poipu. My regular maintenance fee per week is $1, 348. Special assessment fee per week is $5, 893. That's $7, 241 per week owned or, for me, $21, 724! I was given a 10 week notice of payment due, although it can be spread out over a few years. There is no way in hell I am paying that or any portion of it. The Special Assessment fee is to repair water damage to the resort, a total cost at this time of 65 million dollars or over $300, 000 per unit!! The insurance carrier will not pay. I do believe MANY owners will walk away, far more than the "10% default" rate that DRI is estimating and say they will cover. If it's greater than 10% then owners who stick around and pay may end up paying a lot more. No thank you. I do feel DRI wants owners to give up their deeds so they can charge a lot more reselling them.

    I encourage all Point at Poipu owners to join a large group fighting this at www.poipuowners.org. And all Kaanapali Beach Club owners should check out kbcowners.com. There is also information on Facebook at Point of Poipu Angry Owners. Other resorts of the Hawaii Collection are the Polo Towers Villas, Las Vegas, and the Sedona Summit Resort in Arizona. We all should band together. There is strength in numbers. We who have joined Poipuowners.org recently started a massive letter writing campaign to politicians, tourism officials, the Attorney General, and RICO in Hawaii. All owners at The Point at Poipu need to get involved with poipuowners.org. They have addresses and sample letters for ten different people of authority who can help. Poipuowners.org is currently in legal battles trying to get the list of all Poipu owners which DRI will not release even though they are obligated to under Hawaii law.

    For anyone looking into whether or not to buy from Diamond Resorts International, don't do it. You could end up like owners on Kauai or in "The Hawaii Collection" or like those in Europe dealing with a similar situation (see www.drip.enjin.com).

    0 Votes
  • Va
    Vacation Owner Nov 18, 2011
    This comment was posted by
    a verified customer
    Verified customer

    themajority,

    Were you a deeded owner that got sold the magic mystery points, I am sure there are others that would benefit from the details of your case and your particular filings... PLEASE ELABORATE!!! If you have filed a RICO complaint, there are others that would follow suite. There are enough folks (in my opinion) that are tired of getting FLEECED/EXTORTED by Diamond Resorts International, paying for all of Cloobeck's unsustainable corporate expenditures (like overpaying for acquisition of "Resorts" ie. new members to fleece/extort from, executive salaries and bonuses and political bribes [I mean contributions]). If enough folks complain perhaps some consumer advocate could step in to help sort this whole mess out once and for all. The simple fact that Hawaiian FEE SIMPLE DEEDED property has no monetary Value indicates to me that the Policies and Practices of the property management are not conducive to any real value whatsoever.

    We are the majority, but Diamond Resorts International fleecing company knows it is difficult for members to organize any real opposition to their systematic and hostile take over of any of the the resorts they acquire. To them it is simple math acquire a 500 room resort times 51 intervals per room is 25, 500 INTERVALS times avg $1, 200.00 per interval yields a cool $30.6 million per year or roughly 6 million per 100 units every year, year in and year out regardless of the cost to actually run the resort (which should be no where near the 6 million per 100/units).

    Does it really cost over $60, 000 per unit/year to operate a resort? If it does, your doing it wrong clueless... The real costs with Diamond Resorts International are running the BIG CORP SCAM and paying off the HUGE LOANS Cloobeck took out on the Sunterror purchase and the other resort acquisitions where he has over paid just to ring the membership cash register over and over again. Diamond Resorts is about as organized at their CRIMINAL ACTIVITY as some New Jersey Italians... (my humble opinion)

    CVO

    0 Votes
  • Th
    themajority Nov 17, 2011

    Hi Everyone, if you have a complaint please contact DCCA Hawaii and file a RICO complaint. I did which resulted in Diamond and the brokerage firm West Maui Resort Partners, LLP paying fines by the State of Hawaii and because their action was fraudulent (in my case), there is additional restitution under Real Estate laws.

    0 Votes
  • Ag
    AGHu Oct 31, 2011

    We are on the same boat- scam, scam, scam all over from DRI - I am so upset no that to many words are coming through my mind and is hard to capture them in one good sentence other that gangster robbery. How come there are no law suits against them already started? My frustration is how come there are no laws to protect the consumer against these frauds and pyramid schemes? Does anyone know about a class law suit action already against DRI?
    Thank you,
    AGH & family

    0 Votes
  • Va
    Vacation Owner Oct 29, 2011
    This comment was posted by
    a verified customer
    Verified customer

    Shelly

    DRI has ruined our property values for the deeded owners to a point we own HAWAII property that is literally not worth the paper the DEED is written on. In my opinion this is DAMAGES that can easily be quantified using comparable HAWAII real estate. Nobody in their right mind would buy my DEED, but of course I can not lie and con or commit fraud which is what I would need to do to sell my DEEDED interval ownership while years ago I realized this was never an Investment; however I had hoped I would be able to enjoy the beautiful location. NOW it brings on anxiety attacks and late night blogging and no real desire to go visit paradise. I guess I will always have a bad taste in mouth left by SJC when I think of KBC instead of all the wonderful times we spent with friends and family at the resort. Thanks Cloobeck your a real champ.

    Sorry you got all caught up by these DRI MAGIC POINTS SCAM. Maui Jim is right Join those groups mentioned above (and now below) united we can defeat them, but we must UNITE.

    www.poipupoint.org
    www.KBCowners.com

    CVO

    0 Votes
  • Mn
    MNJ01 Oct 23, 2011

    I Think we should picket the main office in Las Vegas!

    0 Votes
  • Ma
    MauiJim36 Oct 18, 2011

    Rafik & Shelly... If you are serious about getting involved against the fraud, lies and deception that have ruined our vacations, I would ask that you join these two groups of concerned owners. They have a concerted effort going on against this BS management crap.
    www.poipupoint.org
    www.KBCowners.com
    Be patient as the sites are being updated and getting more emails than they can handle on a daily basis.
    If you are serious, like me, lets all help the cause.
    thanks or Mahalo

    0 Votes
  • Ra
    Rafik Darnakh Oct 18, 2011

    Please, you seem to knowledgeable about what to do...my question is if there are problems with the property, why it is not insured? we almost were convinced into buying more points this year and thank God we did not. I am fed up with Diamond resorts and their greed and lies... Everyone should stand up against them. So, please let me know what steps to take against them. I really wanna sue them!

    0 Votes
  • Ra
    Rafik Darnakh Oct 18, 2011

    I agree, How can we sue the company for misrepresentation and lies... Is there anything can be done to stop them!

    0 Votes

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