Izatys Resort Update 6/5/13

The Blackbrook and Sanctuary golf courses for Izatys Resort will be opening June 29th

Resort Update 5/17/13

As many of you know, Izatys Resort has been bank run for the past 4 years. Recently The Village at Izatys has been notified that the bank has sold Izatys Resort to a company called Izatys Acquisition Group. The new owners are planning to have the Blackbrook and Sanctuary golf courses open this season. The rest of the resort which is the clubhouse, pools, and links lodge hotel will be closed for extensive renovation with the intentions of having a grand reopening May 2014. The Village at Izatys Association is excited about the new owners and their plans to bring Izatys Resort back to its original splendor.

 Commerce Department Exposes Fraudulent Timeshare Schemes

Fake addresses, telephone numbers, and licenses used to deceive consumers

For Immediate Release:

SAINT PAUL, MN – The Minnesota Department of Commerce has uncovered eleven unlicensed sham companies targeting timeshare owners falsely claiming to be able to sell or rent their properties and scamming them into paying thousands of dollars in transaction costs that never result in a sale or rental of their properties.  In every case, the company used a fake street address on their website and in the materials they provided to timeshare owners.  The addresses either did not exist or were for buildings in which the sham company was not a tenant.  In one instance, a company used fake Minnesota business registration and license documents to convince a timeshare owner of its legitimacy. The Commerce Department ordered the eleven sham companies to immediately halt their alleged illegal activity in Minnesota. 

The investigation comes on the heels of a Minnesota Department of Commerce enforcement action in late 2012 against Renaissance Marketing for running an alleged “bait and switch” timeshare scheme that targeted consumers across the country. The initial investigation triggered further complaints about companies offering to sell or rent Minnesotans’ timeshares often using fake Minnesota addresses.

“The Department took swift and decisive action against these alleged schemes duping timeshares owners,” said Commerce Commissioner Mike Rothman. “These sham companies are preying on people desperate to sell their timeshares with the intent to scam and defraud them out of thousands of dollars.”

The sham companies went by the names of: Global Properties Specialists, Integrated Escrow Services, Platinum Resort Services, ABS Consulting Company, World Transfer Title, Premium Properties Management, Net Management Group, Concord International Title, Continental Property Solutions, Twin Cities Property Advisors, and World Event Management.

Concord International Title, Platinum Resort Services, ABS Consulting Services, and World Transfer Title all used fake Minnesota addresses, while Net Management Group claimed to be based in Michigan and World Event Management claimed to be based in Colorado.  Global Properties Specialists claimed an Arizona address but maintained it was affiliated with and used Integrated Escrow Services, which it represented had a Minnesota address.  The Department’s repeated efforts to contact and obtain information from these companies by email, U.S. mail, and telephone calls went unanswered.

The Department’s investigation found that the scams all followed a similar pattern like the one used by Global Properties Specialists.  Based on statements made by the scammed timeshare owner, Global Properties Specialists cold called the Michigan timeshare owner about selling their Costa Rica timeshare property and ultimately led the timeshare owner to believe that it had a buyer for the property.  The timeshare owner reported that Global Properties Specialists further stated it would guarantee the sale of the owner’s interest in the property.  Based on those representations, the timeshare owner agreed to wire cash in the amount of $6,550, which Global Properties Specialists claimed was a necessary transaction fee for service.  After wiring the initial payment, Global Properties Services advised the timeshare owner that an additional payment of $11,790 was necessary to pay a 15% sales tax plus a 3% foreign investment tax.  After they had wired the second payment, the timeshare owner was again contacted by Global Properties Specialists for yet another $4,585 for a payment of a 7% commission.  After making the third payment, the timeshare owner received an email from Global Properties Specialists stating that an additional payment of $4,422 was necessary for a bank surcharge.  The timeshare owner declined to make the final payment, after which Global Properties Specialists stopped answering the timeshare owner’s telephone calls and emails.

The Department’s investigation also found that the title company, Integrated Escrow Services, with which Global Properties Specialists represented it work with to complete the sale, used a fake Minnesota address and had supplied an Oregon resident with a fake Minnesota real estate and driver’s license, and a fake Minnesota business tax registration to bolster its credibility.

The Department worked with the Better Business Bureau of Minnesota and North Dakota in the investigation of these companies.

“Minnesotans need to exercise due diligence when selling their timeshares,” said Commissioner Rothman. “These scams are becoming increasingly prevalent and sophisticated, and Minnesotans should check with the Department of Commerce to confirm the licenses of purported timeshare resellers. Further, those who are considering the initial purchase of timeshares need to educate themselves on the potential benefits and disadvantages of timeshare ownership.”

The Commerce Department offers the following advice on selling and purchasing timeshares.

Timeshare Resale Scams

Timeshare reseller scams have multiplied over recent years and companies or individuals posing as resellers have scammed individuals out of thousands of dollars through false promises and upfront fees.

1. Always check with the Minnesota Department of Commerce to confirm the licensing claims of any reseller. Anyone selling timeshares in Minnesota must have a Minnesota real estate license. 
2. Resellers identify timeshare owners through public databases and real estate records. An agent will cold call or mail materials to consumers offering resale terms that are often too good to be true. Be very cautious of high pressure sales tactics and offers requiring you to pay upfront fees. These tactics are a red flag the offer could be a scam. 
3. A search of the caller’s telephone number, address or reseller contact information on an internet search engine will quickly expose a fraudulent company. Do this before signing a contract or sending any money.
4. Resale values are generally a fraction of the original purchase price. Anyone offering a purchase price that sounds too good to be true is too good to be true.

Purchasing a Timeshare:

1. Compare the cost of purchasing and owning a timeshare with the cost of staying at a hotel room in the resort area you are considering. Be aware that timeshares carry additional fees, such as monthly maintenance, taxes, brokerage fees and finance charges.
2. Timeshares located outside the country do not carry the same consumer protections that otherwise might be available domestically.
3. Know your cancellation rights before you sign any contracts. If a right of rescission is not among the contract terms, ask that it be included in the final contract.
4. Use an escrow account controlled by a licensed third party if purchasing undeveloped property. If it is developed, visit and inspect it carefully prior to signing a contract.
5. Always consult with a real estate attorney prior to signing a contract. 
6. Timeshares offered or sold to people in Minnesota must be registered with the Minnesota Department of Commerce. Call 651-296-6332 or 651-296-4973 to find out if the project is registered.

The Federal Trade Commission provides a wealth of information for individuals to consult prior to making a timeshare purchase.

The Better Business Bureau of Minnesota and North Dakota has additional resources for timeshare investors.  Check their website for more information.

For complaints regarding timeshare sales, contact the Securities Registration and Enforcement Section send an e-mail to securities.commerce@state.mn.us or visit Securities Registration and Enforcement Section of the website.

The Village at Izatys

Welcome to the Village at Izatys, II's only Minnesota based Premier Gold Resort.

The Village at Izatys on Lake Mille Lacs, only 90 minutes from the Twin Cities, is an exclusive yet affordable resort with year-round activities. Owners at the Village at Izatys enjoy full use of facilities of the renowned Izatys Resort including one of Minnesota's top golf courses, Blackbrook , the spectacular club house, outdoor pool, bar and restaurants and the full service marina.

Whether your interests include golfing, boating, and fishing or snowmobiling, cross-country skiing and ice-fishing, the Village at Izatys offers four seasons of endless activities.

11-12-12

 Izatys Resort (bar, restaurant and indoor pool) Closed. This does not affect your timeshare reservations.

Summer 2012 Newsletter

8/24/11

Please check under the 'Resort Updates' for the newest updates on the resort

4/30/11

To all Village at Izatys Timeshare Association Owners,

There was a fire in unit 116 of The Izatys Townhome Association last evening. The units affected were 116,115,114 and 113. No one was hurt and there is no damage to any other units. This in no way affected any Timeshare Units.

April 13, 2011

Izatys bank seeks new purchase agreement

The Izatys purchase was up in the air at press time on April 10. Roy Winjum is still hopeful that he will complete his purchase of Izatys Resort and get to work on a 250-site RV park when the ground thaws.

On Monday, April 4, Winjum appeared in Mille Lacs County District Court seeking an extension to the purchase agreement he signed over a year ago with Commerce Bank, the current owner of the resort.

Winjum said USDA financing fell through as a result of budget battles in Washington, but he intends to line up new financing over the next few weeks and needs the purchase agreement extended to make that happen.

According to Jason Tollette, Izatys property manager for Commerce Bank, the bank would like to renegotiate the expired purchase agreement, but they have no interest in halting the sale.

Tollette said of Commerce Bank, “They are wanting a little more money. But nothing that’s a deal breaker. The bank just wants to start fresh with a cleaned up purchase agreement.”

The closing was initially planned for May or June of 2010, but it was postponed until fall, when it was postponed again.

In the meantime, Winjum has been working with Mille Lacs County to obtain the necessary permits and with the city of Wahkon, which has agreed to let Winjum hook up to the city’s sewer ponds.

Tollette said the sewer has been the biggest holdup. “I think that an agreement has been reached with the city of Wahkon,” he said. “That’s the last piece of the puzzle.”

Tollette said the golf course is tentatively scheduled to open on April 22. “The weather could change that, but that’s our goal,” he added.

April 27th, 2010

Izatys Resort Now Open!                 

As of April 16th, Izatys Resorts Black Brook golf course has been open.  The restaurant, bar, and marina are also open limited hours until May 1st, 2010.

Izatys 2009: A Pleasant Surprise

When Jason Tollette announced that a pair of local businesses were going to join him to open Izatys Resort in April 2009, skeptics grinned. Since the resort filed for bankruptcy and closed abruptly in October 2007, there just wasn't much to be positive about.
More 

February 12, 2009

Commerce Bank Gets First Izatys Offer.
More

September 19, 2008

on September 11, 2008, Izatys Group LLC has turned over control of the Izatys Resort property to Commerce Bank.
More

September 12, 2008

After months of uncertainty, U.S. Bankruptcy Court Judge Nancy Dreher has ordered that the Izatys Group, LLC Chapter 11 reorganization case be converted to a Chapter 7 liquidation.
more

June 19th, 2008

Just prior to Wednesday's hearing Izatys Group and Commerce Bank reached an agreement which will allow Izatys until August 31, 2008 to implement its work-out plan.
More

All Village News