Mark Rowe, the ringleader of a £28 million timeshare scam, has been jailed for seven-and-a-half years. He was the main conspirator in a conspiracy that defrauded more than 3,500 timeshare owners. His other company, SMT, ran a fraudulent operation that preyed on vulnerable people to get them out from under decades-old timeshare agreements. This case serves to remind us that the fight against timeshare abuse continues on behalf of timeshare owners. Older adults especially have difficulty traversing an industry laden with bad acts.
A persistent and diligent investigation and prosecution revealed SMT’s fraudulent scheme. We shined a light on how this company preyed on vulnerable, desperate timeshare owners. Many of the victims, aged between 60 and 80, were lured into high-pressure sales meetings lasting up to six hours. These in-person sessions were usually pitched as their opportunity to escape these financially crippling contracts, but in reality often led to more financial exploitation.
In January, Rowe was sentenced after being convicted of conspiracy to defraud. This surprising development has raised the hackles of consumer protection advocates everywhere and represents a major reversal of fortune in the case. He is the fifteenth person to be convicted for his role in the fraud under his leadership. 60-year-old Josephine Cuthill-Fox was one of those surprised. She received a 24-month suspended sentence for participating in the conspiracy.
SMT engaged in this kind of fraud by encouraging vulnerable consumers to spend money on “Monster Rewards.” This program held the potential for great rewards yet came to fruition as utterly worthless. This left victims victimized double over, as they were misled to believe that the only way to leave their timeshare contracts was by accepting these rewards. In order to take part, they were coerced into paying a £6,740 deposit—an amount that was unattainable for many.
The case is doubly tragic considering how much money is at stake in this matter. Further, over 500 victims reported losses of more than £10,000, with the highest loss by a single individual topping £80,000. The lies about SMT’s day-to-day workings are just a piece of the greater issue at hand with the timeshare industry. This insidious industry has long been plagued by mis-selling and predatory practices.
The timeshare industry once wooed an estimated 600,000 new timeshare fans every year with the promise of greatly expanded vacation options. Alongside that initial flurry of optimism came a wave of disillusionment as reports started surfacing of bad actors preying on their eager, exhausted, uninformed victims. Countless Americans who purchased timeshares did so under the impression that they were stuck in permanent agreements. Besides financial loss, they personally experienced despair in their struggle to recover their investments.
As the case played out in open court, it was obvious that SMT’s intimidation tactics were anything but uncommon. They were representative of a much bigger pattern of wrongdoing embedded in the industry. The company’s high-pressure sales tactics targeted victims at their most vulnerable. Like all of us who have violated the first rule of timeshares, these people were already buried by their current timeshare obligations.
Nicola Williams was one of the final three defendants sentenced for their part in this case. This trial’s outcome is a cautionary tale for consumers and industry players. It serves as a stark reminder that we must remain ever vigilant and hold the timeshare industry accountable in all transactions.