Fraud Alerts

East Coast Timeshare Developer Accused of Fraud

Boston's Channel 5 Uncovers a Potential Pyramid Scheme

Channel 5 in Boston has uncovered an alleged timeshare scandal on the East Coast. Timeshare developer Robert Reposa is being charged with fraud from many of the hundreds who have purchased his properties in Falmouth, Massachusetts. His customers were told that the properties would be rented out for high returns, but many owners have not heard from Reposa since signing their contracts and issuing their checks. The accusations against Reposa are very similar to a common timeshare pyramid scheme wherein properties are "sold" purely as investments, and then never rented out. The scheme masterminds often use funds from new victims to briefly pacify irate customers who had made timeshare purchases earlier but had not seen any income generated.

From the article:

"Reposa is the person behind Beachside Village in Falmouth. His company sold timeshares to hundreds of people and promised big returns, which for many have never come....

Team 5 Investigates tracked Reposa to his home in Hingham. Though he initially agreed to talk with Team 5 Investigates' Susan Wornick, he later refused.

'I have no comment,' Reposa said. 'My attorney will talk to you.' "

Channel 5's article can be viewed here. If you think you may be a victim of Beachside Village we urge you to follow the link and contact the proper authorities.

UPDATE 3/31/08

Boston's Channel 5 has published another article exposing further alleged scandals on the part of Robert Reposa. It seems that in addition to Beachside Village in Falmouth, Reposa had also started developing a timeshare resort in Dennisport called Navigator Beach Club. Two years after selling properties at the yet-to-be-completed resort, Reposa was discovered to have never completed the project.

Reposa sold thousands of dollars worth of Navigator Beach Club properties between 2005 and 2008. It was initially slated to be complete in Fall, 2006. After plans to build the resort fell through, he decided to find a new buyer for the proprety, leaving his collection of owners with absolutely nothing.

From the article:

" 'They bought something that doesn't exist,' said Kathleen O'Donnell, a property law expert with the Massachusetts Bar Association.

Timeshare law in Massachusetts clearly states that developers must form entities and file deeds. Reposa said he filed the necessary paperwork, but Team 5 Investigates could find no records to prove his assertion. Nor could the Barnstable County register, or a title examiner, or O’Donnell, all of whom did records searches.

'There isn't anything on record. There's no entity on record to sell the timeshares,' said O'Donnell. And if it's not on record with the state, she said, 'It doesn't exist.' "

"Team 5 Investigates obtained records that show the attorney general's office has received at least 19 complaints about the Navigator Beach Club. Some date back to 2006, but to date, the attorney general has declined to step in.

'Anybody who buys that as far as I'm concerned right now, has got to be out of their mind,' said Bodack. 'Because there are so many liens and everything else against this, all right? And I'll be there Wednesday to make sure they know that --- OK?' said Bodack."