Krystal Resorts Cancun and Latitude 21 Resorts Time share presentation as investment opportunity is fraud Cancun Q.R.

On the morning of December 12 2017, my wife Nancy and I (Ron) where pressured into attending a time share sales pitch at Krystal Resort during our stay at same resort. Although we were impressed with what they had to offer, we had no financial means of getting into a contract.

The high pressure sales team were truly friendly but also very good at giving you a high rate of info, and no time to think things out. We were convinced by our Krystal sales person and his supervisor, that the financial burden of a time share could be alleviated, if we bought into the shares as an investment opportunity.

If we bought the 17 weeks (13 weeks plus 4 bonus weeks) we would be guaranteed a projected annual average of 200% of bi-annual maintenance fee. We were also told that the weeks would all be sold in a average of 2 to 3 years. The sale of our shares would be organized through a 3rd party "Latitude 21" set up by Krystal resorts.

As explained to us, the bonus for us would be that our shares, although not used by us would create an income that we could use to travel to other destinations using the ICE rewards program and RCI that we would be register for if we bought in.

The cost to us in US funds that day was as follows:

2625.00 down payment (paid December 12 2017)

7875.00 financed on monthly payments (186.18 a month till 01/01/23) ______________________

10 500.00 Purchase price

1 189.00 Administrative registration fee (paid December 12 2017) ______________________

11 689.00 Total charge and Finance, billed by Krystal for purchase of above mentioned 17 weeks.

840.07 Maintenance fee for first year (billed bi-annually with increased cost every year "862.76 for 2019" for the 17 weeks when used) 862.07 X 17 = 14 655.19

total cost of ownership once all 17 weeks are used and/or sold 11 689.00 + 14 655.19= $26 344.19 (plus interest and increased maintenance cost year over year)

As explained by sales staff at Krystal, using the 200% average above maintenance fee promised the financial gain was : 200% of 840.07 = 1680.14 X 17 weeks = $28 562.38

28 562.38 - 26 344.19 = $2 218.19 profit.

This $2 218.19 profit would likely cover interest and maintenance fee increase if our time shares were all sold in the 2-3 years promised. The gain for us would be discount travel through RCI and ICE rewards program included in our Krystal International Vacation Club membership.

This concludes our experience with the sales team at Krystal. So far a good experience with no complaints.

Latitude 21:

On the day of purchased of our time share with Krystal, it was explained to us and formalized through a Latitude 21 letterhead paper work given to us by Krystal sales staff, welcoming us to Latitude 21 rental program, and informing us of that we would need to communicate with Latitude 21 ASAP to activate our program.

On January 6 2018, we communicated with Robert Diaz at Latitude 21. He informed us that we needed to provide them proof of ownership, a copy of a valid ID for both my wife and I and a fee of 695$ to activate our membership. This cost was explained to us on the day of our time share presentation by resort staff and expected. Robert explained to us that once they received the paper work and fee, they would activate our sales program and call us with a follow up appointment to finalize some details. Fees and paper work was sent that day through email.

On January 17 2018, the follow-up phone call was established and this is where the surprises began. I was informed by Latitude 21 staff that the $695 fee we had paid was only for a basic starter membership and it did not cover what the financial benefits that staff at Krystal had explained. If we did not upgrade our package, we would only receive 125% above maintenance fee for each week sold, it would take 15-25 years to sell them and I would be in full control of the selling process. In other words, 695$ to post my add on their web page is the only thing our money had bought.

In order to get maximum publicity and effectiveness out of our sale process, we were convinced to upgrade to the "Professional" package. At a extra cost of $2082 above the $695 already paid, they would Guarantee the sales process at 250% above maintenance fee and told that our 17 weeks would all sell in a 2 to 3 year average from date of purchase.

It was explained to us that this would mean that every one of our weeks would sell for $2400 plus $840 maintenance fee, totaling $3240. The maintenance fee portion of that would be paid directly to resort. Being skeptical, we asked how it could possibly sell for so much. He explained that the cost to the end customer is a all inclusive vacation price for a family of 4, includes transportation to and from airport and local tours. He also said that these weeks would likely be sold in the high travel season where the costs are always higher.

He also explained that they have a $54.99 / year fee. We assumed that after 3 years, our 17 weeks would be sold and that would mean an extra (54.99 x 3= $164.97)

If we did not upgrade we would only receive add placement at the bottom of their listing. After several questions we decided that we really didn't have much of a choice as we had already invested so much. With the professional package the way it was explained to us we would receive the following.

- Add placement at the top of their listing - Advanced description of our product - Photo slider on add - Weather widget on add - Map of hotel on add - Special offers (ie, golf, tours, airport pickup) - Renter processing Guarantee - Resale Escrow services..... (not sure what this even means) - Renter closing service - Cart Check-out - Phone Agent Assistance - Ad blast splash page -Secondary search page exposure - Front page add exposure - Added channels (sending out a list) - Full service package

Financially, if they do what the promise, our investment would now look like this:

Total cost with Krystal as described above: $26 344.19 Total cost with Latitude 21: (2082 + 695 + 164.97) $2 941.97 Total overall investment cost $29 286.16 Potential income (3240 x17) $55 080 Total profit (55 080 - 29 286.16) $25 793.84 - interest and maintenance fee increase over years

The Problem:

We are currently half way through the second high season of vacation sales and we have not had one single sale. We have contacted Latitude 21 several times and keep getting excuses. Over a month ago we were contacted by Latitude 21 and told that there was a third party "travel agent" interested in our 10 weeks that are currently available. (7 more weeks to be releases by Krystal next year).

This is where we were explained that the $54.99 annual fee was to release our weeks to be sold, therefore needed to pay an extra (54.99 x10 = 549 plus fee/tax = $637.90) so that our first 10 weeks could be sold without delay. With clarification that this would be the final cost to us in order to sell those 10 weeks and assured that most or all of these weeks would be sold this high season we authorized yet another charge to our credit card.

We have since contacted Latitude 21 2-3 times to see how the sale is going as we were led to believe the sale was imminent. Latest excuse told to us was that Krystal resort is not giving any availability to potential clients, but yet their web page does not indicate any full house bookings this season.

We have also been in communication with Krystal resort and they have even indicated through messaging that they have no Knowledge of Latitude 21 or the promises made to us by both Krystal and Latitude 21 staff. The initial set up of this whole deal was initiated by Krystal and I have dated paper work to prove this.

We have also been in communication with a few other Krystal/Latitude 21 clients that are not getting any results or sales as well. One of these members has been dealing with this since 2016, very similar storyline as ours and no results.