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BBB St. Louis Update: Owner of former Springfield, Missouri-based timeshare exit businesses facing federal charges
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The operator of a group of now-defunct Springfield, Missouri-based timeshare exit companies was indicted by a federal grand jury last month. The charges include federal wire fraud and tax evasion.
Brian Jay Scroggs was charged in a six-count indictment by a federal grand jury in Springfield on May 14. Scroggs owned and operated Vacation Consulting Services, LLC; VCS Communications, LLC; The Transfer Group, LLC; and Real Travel, LLC. Those businesses were the focus of October 2018 and August 2019 Better Business Bureau® (BBB®) St. Louis consumer warnings.
According to the federal indictment, consumers who attended timeshare exit seminars in Massachusetts, Virginia, and California combined to pay Scroggs and his businesses more than $32,000 for timeshare exit services that were not performed.
The indictment also charges Scroggs with three counts of failure to pay federal employment taxes. Scroggs allegedly failed to pay the IRS more than $333,000 in federal income taxes and FICA taxes that were withheld from his employees’ paychecks for the third and fourth quarters of 2018 and the first quarter of 2019.
“We applaud the work done by the Department of Justice and the Internal Revenue Service in this case,” said Michelle L. Corey, BBB St. Louis president and CEO. “This action hopefully will deter others from trying to rip off timeshare owners desperate to get out of their contracts.”
The federal charges are Scroggs's latest legal troubles. In July 2020, the Missouri Attorney General’s Office filed a petition against him for violations of the Missouri Merchandising Practices Act. In January 2023, he was ordered to pay back consumers $700,000 as part of a judgment in that case.
In May 2021, Scroggs was ordered to pay restitution of more than $1 million as part of a court judgment filed by the Arkansas Attorney General’s Office and more than $2.7 million in restitution and fees as part of a default judgment in that case.
BBB offers these tips on how to exit a timeshare holding:
- Research any business and its owners carefully before paying any money. Check the company’s BBB Business Profile at BBB.org or by calling 888-996-3887.
- Contact the resort that originally sold you the timeshare to see if it has a deed-back program.
- Before paying, make sure you have a signed contract outlining what is to be done, a timetable, and an explanation of what happens if the business doesn’t remove you from your timeshare within the specified period of time.
- Be wary of anyone claiming that they have a buyer for your timeshare or who promised to rent your timeshare, especially if they ask for an upfront fee
- Pay by credit card whenever possible if you need to challenge the payment.
- If you feel like you have been misled, file complaints with BBB and the state’s attorney general’s office.
- For more information about the timeshare exit industry, refer to this 2023 BBB study.
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