Time-Share Fraud Snares Oregonians
Salem, OR October 9, 2009 9:33 a.m.
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DiscussThe state of Oregon has fined several companies and insurance agents that took part in a scheme to sell fraudulent time-shares.
The Department of Consumer and Business Services says more than 100 Oregonians lost a total of at least $5 million in the scam.
The agency's chief of enforcement, Kevin Anselm, says people thought they were investing in vacation property that would yield rental income. Anselm says the fraud victims did get paid, at first.
Kevin Anselm: “It's like any other Ponzi scheme. The money ran out. They quit getting new investors. So they couldn't pay out the money any longer. And so when the payments stopped, that's when people said ‘Hey, what's going on?'”.
The state fined 10 Oregon salespeople, mostly insurance agents, for selling the time-shares without a license.
The federal government has a criminal case pending against an Indiana man who allegedly spearheaded the fraud.
© 2009 OPB
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