Scam-busting article by leading financial journalist Andrew Penman highlights major timeshare con operation
Following reports by consumer organisation KwikChex, Which? magazine publishes a damning article revealing over a third of a billion pounds has been allegedly stolen from mainly British victims.
Since 1997 Global Great Hotels (GGH) has been selling memberships of a timeshare scheme illegally by describing it as an investment. They marketed the product as real estate units, and took over £350 million before closing down in September 2023.
World renowned investigative journalist Andrew Penman published the story in Which? in July 2024 and focussed on two example couples. Christopher & Christine Gandy and Paul & Simone Tomlinson who lost £218,250, and almost £90,000 respectively. Penman reports that the couples were promised generous rental returns which never materialised. The couples were cruelly encouraged to mortgage against equity in their properties because of the investment promise.
The sums of money lost by individual victims were reportedly often over £100,000. And in one horrifying case over £700,000.
Onagrup's official position is that they have no responsibility for the financial devastation inflicted by GGH. They insist that their involvement is limited to providing maintenance services for the hotel accommodation used in the scheme.
However consumer group KwikChex points to the Ona Vacation Club website clearly stating that they are a timeshare management business as an indication of Onagrup's deeper participation. Coupled with the fact that all GGH victims were enrolled into Interval International as owners weeks in Onagrup properties.
Many of the GGH sales presentations took place withing Onagrup hotels. Onagrup has also been threatening legal actions against GGH victims who refused to continue paying annual fees on the product they have lost following GGH's collapse.
KwikChex points out that by Onagrup's own admission these people never signed a contract with Onagrup. In addition the contracts that were signed (with GGH) were illegal. In the words of KwikChex they were "unlawful, misrepresented and non-compliant with EU timeshare regulations."
The organisation has revealed that they have evidence of Onagrup's direct involvement in the scam and will be presenting their findings to the giant Spanish hotel company in the near future as well as relevant authorities.
Chris Emmins, CEO of KwikChex made the following statement: “The Global Great Hotels scam is one of the largest and most devious fraudulent schemes we have seen since we started up in 2010. The sums paid, and the promises made are staggering, and are having life-altering effects, and we are determined to see justice prevail.”
Both companies have strong ties to embattled timeshare lobby group Resort Development Organisation (RDO).
Greg Wilson, CEO of European Consumer Claims (ECC) has long been aware of the shocking scope of the GGH scandal.
"People have been insidiously encouraged to release equity from their properties to buy this product. A UK FCA regulated financial advisor was complicit and allegedly he was even telling prospects that he had invested in the product himself. Whether this is true or not it seems an underhand way to influence someone in such a life changing decision."
"We are aware of the individual behind Global Great Hotels, a Frenchman based in Mallorca called Jacqques Abelac. This person - we are reliably informed - has profited from similar schemes in the past including a previous iteration called Restotel.
"He owns another business, also in Mallorca, that was charging GGH victims for fake 'compliance and registrations' services.
"The net is closing on on Monsieur Abelac. There is too much money involved and too many ruined lives for him to get away with this appalling, large-scale scam."
With both criminal and civil/financial justice catching up with the those involved there is a current window of opportunity for GGH and Onagrup victims to claim financial compensation.
If you want to know your options, get in touch with our team to arrange a free, confidential, no-obligation consultation with an ECC expert.
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