Originally posted by neem
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neemliu@yahoo.ca
http://www.calgarysun.com/2011/08/02...med-in-canmore
Two Albertans face a whopping 192 charges in a million-dollar time share fiasco that left dozens of buyers out in the Canmore cold.
The charges stem from a three-year provincial investigation of time share operations at Chateau Canmore Resort and the nearby Banff Gate Mountain Lodge and Spa in Harvie Heights.
Mike Berezowsky, a spokesman for Service Alberta, said buyers signed contracts that stipulated the facilities were held in trust.
“This should have protected consumers if the businesses became insolvent, however it is alleged the stipulation was false,” said Berezowsky.
The business operators defaulted on their loans and lenders took foreclosure action on both facilities.
By February 2010, the time share arrangement had altogether collapsed, effectively locking out buyers who could no longer access their units.
The 59 buyers who lodged complaints lost more than $1 million in the deal.
After a lengthy probe, authorities this week filed charges against Chateau World Vacations Inc., its director Kim Schram of Edmonton, and Andre Muran of Canmore, who operates Properties International Ltd., Royal Crown Resorts Ltd. and Royal Club Resorts Inc.
Combined charges include 168 criminal counts of fraud over $5,000 and 24 Fair Trading Act charges of misleading or deceiving consumers, misrepresenting a consumer’s rights, remedies or obligations, and using exaggeration, innuendo or ambiguity of material fact in a consumer transaction.
Penalities under Alberta’s Fair Trading Act, which prohibits businesses from misleading or deceiving consumers, includes up to two years in jail and a maximum fine of $100,000 or three times that which was obtained through the offence, whichever is greater.
Muran and Schram are scheduled to appear in a Calgary courtroom on Thursday.
Rules concerning time shares have been strengthened in Alberta since November, 2010, when new regulations came in to effect.
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