Attorney General's News Release

August 24, 2004

Nixon sues nine companies for travel-related fraud; seeks $200,000 in refunds for consumers

Branson, Mo. — Travelers from around the country who had their vacation dreams shattered are getting help from Attorney General Jay Nixon. At a news conference at the Branson Chamber of Commerce Welcome Center, Nixon announced today he filed suit against nine travel companies for violating Missouri's consumer protection laws. Nixon is seeking more than $200,000 in restitution for at least 154 consumers who say they were taken by the businesses.

The companies deceived consumers in a variety of ways, including promising that joining a travel club would save consumers money; using high pressure sales tactics to sell travel memberships, then refusing to allow consumers to cancel their order; and charging an up-front fee for selling consumers' existing timeshares, then failing to sell them.

Many of the companies Nixon sued sold trips to Branson and timeshares in Taney and Stone counties, one of the country's most popular vacation destinations.

"People visit Branson to relax and have fun, not to get ripped off," Nixon says. "The filing of these lawsuits shows the con artists Missouri will not allow them to turn consumers' vacation dreams into nightmares."

The lawsuits ask the courts to order the companies to pay back consumers, pay penalties and stop their deceptive practices.

Nixon sued eight companies in Taney County Circuit Court:

• John M. Delgrosso, d/b/a FunTyme Vacations, 1494 Hwy. D 248, Branson, for $47,000 in restitution.
• Worldwide Dream Vacations, 4560 Gretna Road, Branson; and William H. Large, 235 Meadowbrook Estates, Building 5, Unit 5, Branson, for $25,000 in restitution.
• Leisure Access, 3000 Green Mountain Drive, Suite 109, Branson; James C. Taylor, Germantown, Tenn.; and Amy E. Harris, 610 Abby Lane No. 3, Branson, for $25,792 in restitution.
• Tommy Tran and Tommy Tran. Inc., d/b/a World of Vacations, 2404 Hwy. 248, Suite 1, Branson; and Troy Daniel Bratz, for $19,286 in restitution.
• Vacation Services of America LLC and Vacation Services of America Inc., 101 State Drive, Suite Q, Hollister; and Thomas Aloysius Wood, 1726 Pointe Royal Drive, Branson, for $10,371 in restitution.
• Cherry D. Murr, of Sylmar, Calif., d/b/a National Vacation Services (a.k.a. NVS.com), for $16,371 in restitution.
• Oswald Crabtree, Cookville, Tenn.; Daniel James Crabtree, Kirbyville, Mo.; and Linda Kay Caldwell, 101 Ridge Crest, Branson, all d/b/a as Tickets for Less, for $3,425 in restitution.
• Susan Gannucci, 497 El Monte Road, Branson, d/b/a Your Best Friend in Branson, for $11,500 in restitution.

Nixon also sued Student Express, a Colorado corporation, in Perry County Circuit Court, for $42,750 in restitution. Details of the lawsuits are as follows:

FunTyme Vacations

Nixon sued five companies that offer travel club memberships including John Delgrosso, d/b/a FunTyme Vacations Inc., of Branson. The suit says Delgrosso misrepresents the benefits of the travel club memberships he sells; does not follow Missouri's buyer's club law that allows consumers a three day right of recision; and routinely overcharges consumers' credit cards then fails to provide refunds.

Consumers often pay up to $7,000 to join this travel club. Nixon says FunTyme deceives consumers in many ways including:

• Telling consumers the value of the services they are buying is approximately $7,000, when it is actually less than $1,000.
• Promising consumers they will receive 60 percent off the price of accommodations, when, in fact, they can get better prices without the membership.

The Attorney General seeks $47,000 in restitution for consumers from FunTyme, a temporary restraining order and a permanent injunction against the business.

Worldwide Dream Vacations

A Branson business called Worldwide Dream Vacations LLC and its managing member William H. Large are the subject of another lawsuit involving travel club memberships. Nixon says this business promises discounts on travel services such as hotel rooms, airfare and cruises. The memberships vary in price, with consumers often paying up to $5,644 to join. The lawsuit states Worldwide Dream Vacations and Large have deceived consumers in many ways including:

• Telling consumers they will save money on vacations by joining the club, when, in fact they can get better deals on their own.
• Telling consumers they will get rebates from Rebates International, when this rebate program did not pay anything of value and was in violation of Missouri statutes.
• Failing to tell consumers they have three days to cancel their contract or to cancel contracts of consumers who changed their minds within three days.

Nixon is seeking $25,000 in restitution for consumers defrauded by Worldwide Dream Vacations LLC and Large.

Leisure Access

Nixon also sued travel club seller Leisure Access LLC, 3000 Green Mountain Drive, Suite 109, Branson, and its owner, James C. Taylor, Germantown, Tenn., and its executive administrator, Amy E. Harris, 610 Abby Lane No. 3, Branson. Nixon's lawsuit says Leisure Access deceives consumers in many ways, including telling them they will receive discounts on travel services; they will be able to book airline flights cheaper than on the Internet; and they will be able to book condos and timeshares at desirable locations at desirable times.

The price of a membership in Leisure Access starts at $6,995. Nixon is seeking $25,792 in restitution for nine consumers who have complained about the company and asking the court to order the business to stop its deceptive practices.

World of Vacations

Branson resident Tommy Tran, d/b/a World of Vacations, 2404 Hwy. 248, Suite 1, and his employee Troy Daniel Bratz are the subject of another lawsuit involving travel club memberships. The lawsuit states that since at least May 2003, Tran and Bratz have sold travel club memberships to Club Resort Intervals of Manchester, N.H. They promise consumers discounts on travel, airfare, hotel rooms and more for a membership fee ranging from $1,495 to $6,000.

Several consumers told the Attorney General they had trouble making travel arrangements using their club memberships. They could not reach a person on the phone when they called the club and no one returned their voice mail messages. At least one consumer who tried to book a vacation through the club was told his agreement with World of Vacations would not be honored. Several consumers who tried to book vacations through the club found they could get better prices on their own.

World of Vacations also refused to allow consumers to cancel their contracts within three days and would not give refunds. Nixon is seeking $19,286 in restitution for six consumers in this case.

Vacations Services of America

In another suit against a travel club, Nixon says since at least January, Vacation Services of America LLC, Vacations Services of America Inc. and Thomas Aloysius Wood refused to allow consumers to cancel their travel club memberships when the consumers requested cancellation within three business days of purchase. The defendants sell travel club memberships to Vacation Travel Club of Benton Harbor, promising consumers discounts on travel, hotel, condos, cruises, rental cars and more. Some consumers alleged they bought the travel club memberships in Branson after being subjected to high-pressure sales presentations, and were asked to make immediate decisions on whether to join the club.

When they did decide to join and wanted to pay by credit card, some were told the company's credit card machine was broken. Salesmen suggested they get a credit advance on their credit card at a nearby bank. Most major credit card issuers allow consumers to dispute charges, but not cash advances.

The cost of the memberships in this travel club in some cases runs from $3,500 to $6,433. Nixon is seeking a total of $10,371 in restitution in this lawsuit.

National Vacation Services

Nixon also sued Cherry D. Murr, d/b/a National Vacation Services (a.k.a. NVS.com.) The lawsuit says consumers who own timeshares or condominiums signed contracts with NVS to market their property for sale or lease. The consumers paid an up-front fee for this service that averaged $499. National Vacation Services promised to refund the fee upon the sale or lease of the property.

Nixon says Murr misrepresented her services and made false promises to consumers in many ways including:

• Promising that NVS's marketing program is "relentless and will work for you 24 hours a day, 7 days a week."
• Misrepresenting that NVS would answer questions over the phone or via email, when the business's phone lines were disconnected.
• Concealing many facts, including that NVS failed to reimburse previous consumers who paid the marketing fee.

Nixon is seeking more than $16,000 in restitution for 31 consumers in the suit against NVS.

(Editor's note: Three consumers who lost money with NVS are willing to talk to reporters: Dennis Waldman, St. Louis, 314-961-5295; Barbara Brown, Prescott, Ariz., 870-887-5085; and Barbara Engle, Summerville, S.C., 843-871-4932 or 843-746-2367.)

Tickets for Less

Consumers paid for what they thought would be a vacation to Branson through three individuals doing business as Tickets for Less. Nixon is suing Oswald Crabtree, Daniel James Crabtree and Linda Kay Caldwell for violating Missouri's consumer protections laws.

The defendants used telemarketing, direct mail and sales presentations to sell "certificates" for a three day, two night stay at a deluxe hotel, tickets to shows and dinner vouchers for $149 in exchange for listening to a 90-minute sales presentation when they arrived in Branson. Some consumers upgraded their packages for more nights at a hotel, dinners and tickets.

When consumers tried to use their travel certificates by calling the Tickets for Less phone number, they found the phone had been disconnected. Consumers who tried to redeem their certificate by mail learned the company had moved without leaving a forwarding address. Nixon is seeking restitution for at least 16 consumers who lost $3,425.

(Editor's note: A consumer who lost money through Tickets for Less is willing to talk with reporters. Contact Jerry Bredwell of Bonner Spring, Kan., at work at 816-358-5000.)

Your Best Friend in Branson

Nixon also sued a travel agent who defrauded many consumers through her travel agency in Hollister. Susan Gannucci operated under the name Your Best Friend in Branson, specializing in providing vacation packages to Branson. The lawsuit states that in June, she abruptly closed her business without any advance notice to people who had bought vacation packages but had not yet traveled to Branson. At least nine consumers had paid Gannucci from $190 to $2,700 for hotel reservations, show tickets and/or amusement park tickets. Nixon says Gannucci called the consumers and said she would give them refunds, but she has not done so.

The Attorney General is asking the court to prohibit Gannucci from ever operating another travel agency, to order her to provide $11,500 in restitution to consumers and to pay penalties for her violations of the law.

Student Express

Missouri students hoping for a trip to Cancun, Mexico, are the victims of another company sued by Nixon. Student Express, a Colorado corporation, advertised all-inclusive trips to Cancun for $821 to $1,021. The company recruited student organizers to sell the trips in exchange for a free trip plus a portion of the proceeds.

From September 2003 to April 2004, at least 45 students paid for vacations scheduled for June 2004. At the end of May and beginning of June, Student Express notified student organizers via email their trips had been cancelled due to financial circumstances beyond the company's control. To date, none of the consumers has received a refund. Nixon is seeking restitution of $42,750 from Student Express to provide refunds for the students as well as additional money for penalties.

While Nixon takes action to protect consumers, he says consumers can take steps to protect themselves. The Attorney General offers the following tips to avoid becoming a victim of travel-related fraud:

• Beware of prices for vacations that are too good to be true.
• Don't be pressured into making a decision today. Legitimate businesses will offer the same price tomorrow.
• Ask for details of the offer. Does it include hotel, air fare and meals? Consider calling the hotel and airline directly to confirm the offer.
• Ask about the cancellation policy. What happens if you are sick or there is severe weather? Is cancellation insurance available?
• Do business with an established company. Ask your friends and family for referrals.
• Do not give your credit card number over the phone unless you expect to be charged for the product or service.
• Get the information in writing before you make a final decision. Make sure the written information agrees with what you were told on the phone.
• Sign up for Missouri's No Call list to prevent calls from telemarketers. Call 1-866-NOCALL1 or register online.

Consumers who have trouble with travel businesses are encouraged to call the Attorney General's Consumer Protection Hotline at 800-392-8222 or file a complaint. Nixon's complaint team works to mediate problems for consumers.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818