Court Orders Timeshare Exit Scheme Operator to Pay $140 Million

A federal court has ordered Christopher Carroll, a key operator of a timeshare exit scheme, to pay $140 million after the Department of Justice and the state of Wisconsin proved that the operation defrauded consumers out of over $90 million. The judgment includes $95 million in consumer redress and a $45 million civil penalty, which will be paid to the U.S. Treasury.

The court also permanently banned Carroll from marketing or selling timeshare exit services and engaging in deceptive sales practices.

Details of the Scheme and Legal Action

The case began in November 2022, when the Department of Justice, representing the Federal Trade Commission (FTC), teamed up with Wisconsin authorities to file a lawsuit against Carroll and others operating under companies such as Consumer Law Protection, Square One Group, Premier Reservations Group, Resort Transfer Group, and Timeshare Help Source.

The defendants used direct mail and in-person presentations to deceive primarily older consumers. They falsely claimed affiliations with timeshare companies and pressured consumers by asserting they could not exit their timeshares without paying high fees. The scheme also involved failing to honor refund promises and requiring consumers to sign contracts that violated the FTC’s Cooling-Off Rule, which allows a three-day cancellation period for door-to-door sales.

Permanent Restrictions and Enforcement

Besides the financial penalties, the court order prohibits Carroll from advertising, marketing, or offering timeshare exit services or engaging in any deceptive door-to-door sales in the future. The order also bans other deceptive and misleading conduct as outlined in the FTC’s complaint.

Why it matters

This decision highlights ongoing federal efforts to curb fraudulent schemes targeting vulnerable consumers, especially older adults, within timeshare exit markets. The large financial penalty and permanent ban serve to protect consumers and deter similar scams.

The Federal Trade Commission continues to promote consumer protection by monitoring such schemes and pursuing legal action against fraudulent operators. Consumers are advised to report suspected fraud and consult official FTC resources for guidance on scams and their rights.

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