The Oregon Department of Consumer and Business Services has fined American-, Mexican-, and Panamanian-based companies in the amount of $2 million for unlawfully soliciting funds from Oregon residents in a timeshare fraud scheme. The parties sold unregistered securities involving timeshares in Mexico\u2019s Yucatan Peninsula. The Oregon residents, many of them elderly, lost more than $5 million. <\/p>\n
\u201cIt\u2019s unfortunate that many elderly Oregonians lost their hard-earned retirement funds by unwittingly investing in this scheme,\u201d said David Tatman, DFCS division administrator. Those considering property investments should do their due diligence and research, keeping an eye out for any potential \u201cred flags\u201d, which is this case, was a lack of information and details. \u201cInvestors received almost no information about the company involved, especially their capitalization and operating histories,\u201d Tatman said.<\/p>\n
Some of the companies involved were: Yucatan Resorts, Resorts Holdings International, and World Phantasy Tours. Michael E. Kelly, the founder of the fraudulent activity and Ruttenberg and Associates Financial Marketing, the sales company, were also assessed a $300,000 fine.<\/p>\n