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Diamond Resorts Lawsuit Alleging Fraudulent Business Practices Against Newton Group & DC Capital Law Firm Will Proceed

December 17, 2020 GMT
Diamond Resorts Brand Logo (PRNewsfoto/Diamond Resorts)
Diamond Resorts Brand Logo (PRNewsfoto/Diamond Resorts)

LAS VEGAS, Dec. 17, 2020 /PRNewswire/ -- Diamond Resorts®, a global leader in the hospitality, vacation ownership and entertainment industries, announces its lawsuit will proceed against Newton Group and DC Capital Law Firm, LLP based on their alleged fraud, conspiracy to defraud, and tortious interference as it relates to former Diamond members, Paul & Diane Reeve. A Superior Court Judge in the District of Columbia ruled that Diamond properly alleged all of its claims against the Defendants and provided “sufficient facts to ultimately support a finding of wanton, malicious, and/or grossly fraudulent conduct by DC Capital” to support Diamond’s claim for punitive damages.

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As part of its complaint, Diamond outlined the sworn allegations of the Reeves that the Newton Group deceived them into paying over $6,000 in upfront fees for an allegedly “safe and legal” exit process backed by a “money-back guarantee.” The Newton Group then “hired” DC Capital Law Firm, LLP, and both companies instructed the Reeves not to communicate with Diamond and to stop paying their financial timeshare obligations. This advice led the couple to unknowingly – and against their wishes – default on their contract with Diamond. Indeed, neither Newton nor DC Capital had a “safe” or “legal” exit process and their money back guarantee was hollow as they refused to refund any money to the Reeves despite not providing any services to them.

In his order filed on December 9, Judge Robert R. Rigsby said “the Reeves did not ‘elect’ to default on their contract with Diamond and were not simply following legal advice. Rather, DC Capital took substantial steps to hide the default from the Reeves, and only by redirecting all communications away from the Reeves did DC Capital keep the Reeves from performing their contractual obligations.” Indeed, Plaintiffs allege that ”[t]o preserve this deception, Defendants positioned themselves between Diamond and the Reeves and directed the Reeves not to contact Diamond in an effort to prevent the Reeves from discovering the truth.”

Diamond’s complaint alleges that “the lack of communication between the Reeves and Diamond was essential to the Defendants’ scheme, as it prevented the Reeves from discovering the Defendant’s misrepresentations.” The complaint also alleges that DC Capital “continued to further the conspiracy by ‘conceal[ing] the true nature of the exit they ‘obtained’ for the Reeves,” by failing to advise the Reeves that the “exit” had merely been a foreclosure of their Timeshare Interest.”

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“Thousands of other timeshare owners have fallen victim to fraudulent companies,” said Mike Flaskey, CEO of Diamond Resorts. “We will continue to do everything in our power to protect our members from the deceptive practices of unscrupulous companies.”

After the Reeves shared with Diamond Resorts how they were deceived, Diamond was able to work with the Reeves to provide them with relief from the credit reporting and adverse tax-related issues caused by DC Capital and the Newton Group. Unfortunately, the Reeves are still out the $6,000 paid to the Newton Group because, despite written demands for the return of the money and the Newton Group’s advertised “100% money-back guarantee,” no refund has been issued.

Diamond Resorts remains committed to protecting its members from so-called timeshare exit companies that not only hurt vacationers, but often break the law. In addition to this case, Diamond Resorts has pursued more than a dozen actions in courts across the country against numerous companies marketing themselves as third-party exit companies. Diamond has obtained more than 10 permanent injunctions.

While the vast majority of members enjoy their vacation ownership, Diamond Resorts also understands that life circumstances can change and provides options for members seeking to safely modify or leave their vacation ownership behind. To learn more about red flags and report possible fraudulent third-party exit activity, visit TimeshareCancellationAwareness.com.

About Diamond Resorts
Diamond Resorts® offers destinations, events and experiences to help members make a habit of breaking from the routine. From unforgettable getaways to exclusive concert series to VIP receptions and dinners, members turn to Diamond to recharge, reconnect and remind each other what matters most. Our focus on quality resorts, customer service and flexibility means members can return to a favorite resort, book a cruise to explore new countries or attend a once-in-a-lifetime event with the same level of confidence and anticipation. With access to a world of entertainment and activities, a Diamond membership ensures that people are always looking forward to vacation.

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SOURCE Diamond Resorts