Phoenix – Attorney General Mark Brnovich filed a consumer fraud lawsuit today against Condosmart LLC, an Arizona-based timeshare resale and rental advertising business accused of making hundreds of unsolicited telemarketing calls to consumers who owned timeshare properties. The State’s complaint also alleges Condosmart engaged in deceptive and misleading business practices. Consumers in Arizona, Arkansas, California, Florida, Georgia, Nevada, New Jersey, New York, Pennsylvania and South Carolina may have paid Condosmart thousands of dollars for services that were not provided.
The complaint was filed against Condosmart LLC and owner Roy J. Swartz (“Defendants”) who also did business as CS Marketing, CSR Financial, and Condosmart Marketing. The complaint alleges Defendants targeted consumers who owned timeshare properties and had information such as name and location of a consumers timeshare. During the telemarketing sales call, the Defendants would allegedly misrepresent to victims that bonus or getaway timeshare weeks were available to sell or rent to third parties. The Defendants told consumers well-known Fortune 500 companies were interested in renting consumers’ extra timeshare weeks, generally 10 to 12 weeks, for large events such as automobile races, trade shows, and sporting events. The Defendants represented that if consumers paid an up-front "activation", "advertising" or "maintenance" fee to Condosmart of $995 to $1990.00 for the bonus timeshare weeks, consumers would receive a check for $1,050.00 in rental income for each bonus week. In some instances, several months after the initial transaction, Defendants called consumers and represented that a check would be released once the consumer paid “taxes” to Condosmart. Once “taxes” were paid, consumers never received the promised rental checks.
The State’s Complaint further alleges that Defendants violated the Arizona Telemarketing Solicitations Act by failing to file a verified registration before soliciting consumers and by failing to maintain a surety bond, as required by Arizona law.
If you believe you have been a victim of consumer fraud, please contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6504, or outside the Phoenix and Tucson metro areas at 1 (800) 352-8431. Consumers can also file complaints online by visiting the Attorney General’s Web site at https://www.azag.gov/complaints/consumer.
This case is being handled by Assistant Attorney General Shanelle Schmitz. For additional information, please contact Mia Garcia, Spokesperson/ Director of Media Relations at (602) 339-5895 or [email protected].