United States And State Of Wisconsin Obtain Over $140M Judgment And Permanent Injunction Against Operator Of Deceptive Timeshare Exit Services Aimed At Elderly Consumers

The U.S. District Court for the Eastern District of Missouri granted summary judgment to the Department of Justice and State of Wisconsin against Defendant Christopher Lee Carroll, finding he was a “mastermind” of an unlawful timeshare exit services scheme that harmed over 11,000 consumers. As part of its ruling, the court permanently enjoined Carroll from marketing timeshare exit services and from engaging in other unfair and deceptive trade practices. The court also ordered Carroll to pay over $95 million to redress harm caused to consumers and over $45 million in civil monetary penalties for his misconduct.

“The Justice Department will hold accountable anyone who uses unlawful high-pressure sales tactics and deception to take advantage of and exploit consumers,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Americans deserve to be treated fairly and honestly.”

In a memorandum and order, the district court held that Carroll was at the center of an unlawful enterprise that violated the Federal Trade Commission (FTC) Act’s prohibition on unfair or deceptive trade practices, the federal Cooling-Off Rule’s requirement that consumers be given three business days to cancel certain purchases made at locations other than the seller’s regular place of business, and Wisconsin state laws concerning fraudulent misrepresentations and direct marketing.

The court found that Carroll and his co-defendants used high pressure tactics and false and misleading statements to induce consumers to pay from $5,000 to over $80,000 to businesses including Square One Group LLC, and Consumer Law Protection LLC, for a purported release or exit from the consumers’ timeshare contracts. Carroll and his co-defendants often did not actually provide those services, did not inform consumers of their right to cancel the sales contracts within three business days without penalty, and denied consumers refunds when they or law enforcement officials complained.

Carroll was the final remaining defendant in this action. The court previously also imposed permanent injunctions against seventeen other defendants. Those defendants include several interrelated corporate entities, which were also held liable for the over $140 million monetary judgment against Carroll, and four other individual defendants, who agreed to stipulated orders under which they are collectively liable for over $11 million in monetary penalties, partially suspended due to their demonstrated inability to pay.

The United States is represented in this action by Trial Attorneys Meredith L. Reiter and Zachary L. Cowan and Assistant Director Zachary A. Dietert, from the Enforcement Section of the Civil Division’s Enforcement and Affirmative Litigation Branch, in coordination with staff at the FTC. The United States was previously also represented by former Trial Attorney Wesline N. Manuelpillai. Lewis W. Beilin represents the State of Wisconsin.

For more information about the Enforcement & Affirmative Litigation Branch and its enforcement efforts visit www.justice.gov/civil/enforcement-affirmative-litigation-branch.