Illinois Attorney General Lisa Madigan has filed suit in Cook County Circuit Court against an Indiana man and his Illinois cohort for allegedly luring consumers to flashy travel club sales presentations and then misleading them with false claims about free trips and features of a travel membership club that was anything but a bargain.
The two defendants made their way across the Midwest, renting hotel conference rooms or ballrooms to lure would-be travelers to their promotional performances. At least half of the consumers who complained were seniors who likely were planning to travel during their retirement years. All of the 23 complaints were made by couples who purchased the packages together.
Madigans consumer fraud lawsuit alleges American Travel and Management, LLC, of Dyer, Indiana, company manager Kevin B. Raines of Crown Point, Indiana, and Francine M. Bauer of McHenry, an agent of the firm, traveled from town to town setting up one-day travel club sales presentations and leaving local consumers with little more than a packet of deception and misrepresentations.
Madigans office alleges that after the defendants had left town, consumers found the free trips they had signed up for would actually cost them hundreds or thousands of dollars.
Raines and Bauer allegedly took these consumers on a trip, but it certainly was no vacation, Madigan said. Many of these couples no doubt worked hard for years to enjoy travel in their retirement, but they were deceived.
Madigans suit alleges Raines and Bauer engaged in unfair and deceptive acts in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act. Among the many misrepresentations alleged in Madigans lawsuit, the defendants allegedly told prospective members that by joining the travel club, they would enjoy substantial discounts on airline tickets; receive vouchers for free condominium stays anywhere in the world; be eligible for trips to Mexico and other vacation spots; and receive a money-back guarantee if they were dissatisfied with their membership.
Madigan said that Raines and Bauer allegedly misled and deceived consumers about the free trip and travel membership club by omitting facts and making misleading statements.
For example, during the sales presentation, they allegedly failed to mention that consumers were responsible for paying certain costs for the promotional travel voucher, including, but not limited to, port fees of $99 a night, activation charges and services charges. The duo also led consumers to believe the expiration date of the promotional vouchers was five to seven years when in fact the expiration date of cruise certificates was 18 months while airfare and all-inclusive certificates expired in 36 months.
Additionally, Raines and Bauer allegedly misrepresented to consumers that a benefit of the travel club membership included time shares available anywhere in the world when in fact they were available only in Tennessee and Arkansas. They also orally misrepresented the value of the travel club as being worth nearly $3,000 when in fact it was worth $275.
Madigans lawsuit alleges that Bauer, at one point, operated as an independent sales agent, selling memberships to the Grand Getaways Vacation Club through an arrangement with a Florida corporation, Mini-Vacations, Inc. However, after Mini-Vacations severed its ties with Raines and Bauer last March, the pair began selling travel club memberships in June for Michigan-based Vacation Travel Incentives, Inc. Raines company, which is registered in Indiana, is not licensed to conduct business in Illinois.
Madigans lawsuit seeks to permanently bar the defendants from advertising or offering vacation packages to Illinois consumers. In addition, Madigans suit asks the court to impose civil penalties of $50,000 for each violation of the Consumer Fraud Act and $10,000 for each violation committed against a person aged 65 or older, and order the defendants to pay full restitution to consumers.
