Duo behind timeshare scam jailed
Filed under: Fraud , Property, Travel
How would you like to take a mini-break in an idyllic holiday park in the Welsh countryside without paying a penny for it? Sounds almost too good to be true, doesn't it?That was certainly the case for the 50 or so people invited to Graig Park Village in Dyserth, Denbighshire, where they were pressurised into buying timeshare properties in a con that netted the unscrupulous individuals behind it more than £460,000.
The good news is that the men who ran this timeshare scam are now behind bars.
Arthur Goddard, 60, who ran Graig Park, and his sales director Alan Hill, 51, will each serve two-and-a-half years at her majesty's pleasure, while Goddard must also pay £600,000 in costs and compensation.
Two other men were cleared of fraud after a four-week trial at Mold Crown Court in Wales.
All four had denied a fraudulent trading charge, brought by Denbighshire Council's trading standards department.
What was the scam?
The scam, which took place between May and December 2007, involved inviting people on a free mini-break to Graig Park; on condition they attended a timeshare sales presentation.
Unsurprisingly, many people took them up on the offer, thinking that they could walk away from the sales presentation without putting their hands in their pockets if they did not like what they heard.
However, those who attended the meetings found themselves under severe pressure to sign up to timeshares on holiday lodges in Dyserth.
The safeguards of the Timeshare Act 1992 were also flouted as many people were not informed of their right to cancel the agreement within the first 14 days.
Most were also required to pay a "non-refundable" deposit on the spot, usually of £1,000.
Are all timeshares dodgy?
There are some reputable timeshare firms out there. But it is important to keep your wits about you when delving into the world of timeshare investment.
It is easy to think that you will be able to leave a timeshare sales meeting without signing up, but it's not always that simple.
If you do attend a sales presentation, it is therefore crucial to read up on your rights. These include the fact that you have a window of time in which to cancel any agreement, and get any money you may have handed over back.
Will people affected by this case get their money back?
Prosecutors stated that, while some customers had been repaid, three were owed £18,905 and the judge ruled that 13 victims should be paid £500 each for their emotional distress.
Goddard was given 56 days to pay £111,200 costs to Denbighshire Council and £25,405 compensation to the victims. On top of that, he was given six months to repay the £461,651 gathered through the fraud.
Sales manager Hill, who is bankrupt, was disqualified from being a company director for five years and a £1 nominal order was made against him.
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