£460,000 timeshare conmen jailed and 22 arrested in Spain over timeshare fraud

The BBC News website has reported that “two men have each been jailed for two-and-a-half years after 50 people were conned out of more than £460,000 in a timeshare holiday scam.

Arthur Goddard, 60, ran Graig Park Village Ltd, based in Denbighshire, with sales director Alan Hill, 51. Goddard must pay £600,000 in costs and compensation after fraudulent trading convictions at Mold Crown Court.

The judge told the men they had "tainted the good reputation" of the north Wales tourism industry. Two other men were cleared of fraud after a four-week trial at Mold Crown Court.

In a separate case, website typicallyspanish.com has reported that 22 people have been arrested in a timeshare fraud in Málaga and Tenerife. The scam swindled the victims out of money paid to cover the transfer of ownership for the fictitious sale of a share in their property.

There were even some cases when other members of the network contacted the owners again, offering their services as a lawyer to recover their money. They too, then disappeared with the fees which had been paid over.

Further news about Graig Park

All four had denied a fraudulent trading charge, brought by Denbighshire Council's trading standards department.

The court heard Goddard - who was banned from being a company director for eight years - had threatened the chief investigator, telling him: "I will come after you", if he persisted.

When asked during the trial if he thought he was fit to run a company, he said: "Some days yes, some days no."

He was given 56 days to pay £111,200 costs to Denbighshire Council and £25,405 compensation to the victims. He was also given six months to repay £461,651 gathered through the fraud. Sales manager Hill was disqualified from being a company director for five years. A £1 nominal order - not to be collected - was made against Hill, who is bankrupt.

However, the order means prosecutors can seek money from him if he comes into funds in the future.

The court heard some customers had been repaid, but three were owed £18,905 and the judge ruled that 13 victims should be paid £500 each for their emotional distress.

Judge John Rogers QC told the men: "You ignored your statutory obligations and deceived purchasers, and ignored their rightful requests for redress." He added: "You have tainted the good reputation of the tourist industry in north Wales."

During the trial, Goddard had told the jury he thought the investigation "was a waste of public money". The judge said: "Those words can come back to haunt you during the next few months of your life."

The scam, between May and December 2007, involved inviting people on a free mini-break at Graig Park, Dyserth, on condition they attended a sales presentation.

Many found themselves under severe pressure to sign up to timeshares on holiday lodges in Dyserth, the safeguards of the Timeshare Act 1992 were flouted, and many people were not informed of their right to cancel the agreement.

Most people were required to pay a deposit on the spot, usually £1,000.

The court heard the pair offered part exchange allowances, but their purchase prices were so inflated the part exchange became worthless.

In addition, the promise of taking over the existing part-exchange never materialised, so that customers found themselves liable for two sets of maintenance charges.

The investigation was launched following complaints to trading standards officials across the north of England. The judge praised the "dogged persistence" of Philip Richards and the Denbighshire trading standards team, praising them for an "exemplary investigation" which nipped the fraud in the bud.

Story from BBC News

Further news about timeshare scam in Spain

EFE said the network obtained their victims’ names from lists provided by employees of the companies which managed the timeshare complexes. No names or nationalities have yet been released by police.

Officers found in the 11 property searches which took place as part of the operation bank documents, lists of owners, and instructions for the telephone conversations to reel their victims in. Police also seized 30,000 € in cash, an air gun and an electric shock weapon.

 Story from www.typicallyspanish.com