Newton Group Exposes Diamond Resorts PR Smear Campaign

Testimony of Former Newton Group Client Confirms Diamond Resorts Defrauded Her And She Exited Her Timeshare Only After Hiring Newton Group and DC Capital Law

Testimony by Diane Reeve, a former Newton Group client who was paid approximately $25,000 by Diamond Resorts to cooperate with them in a pending federal lawsuit against Newton Group and DC Capital Law, further exposes Diamond’s false and misleading public smear campaign targeting the two timeshare exit leaders.

“Mrs. Reeve clearly testified she was defrauded by Diamond Resorts and that she had tried for years to terminate her timeshares, including by asking Diamond, but her efforts were futile until she hired Newton Group,” said Gordon Newton, President of Newton Group and a non-attorney co-founding partner in DC Capital Law. “We are especially proud she felt protected by her DC Capital Law attorneys when deciding to follow the legal advice explained to her—advice which ultimately led to the successful conclusion of her decades-long quest to exit from her unwanted Diamond timeshares.”

Under subpoena by Diamond Resorts to testify on its behalf, Reeve admitted in a cross-examination by Newton Group and DC Capital law that Newton Group did in fact satisfy its contractual obligations to her. In her September 24 deposition, Reeve further stated that if she had not followed DC Capital Law’s legal advice, she would still be suffering the burden of what she called a “fraudulent” Diamond timeshare contract.

However, it appears that Diamond Resorts may have pressed Reeve to be dishonest as evidenced by her testimony, under oath, that she did not know that Diamond Resorts had offered her the deal prior to the time she claims to have terminated the services of Newton Group and DC Capital Law. Under cross-examination by Newton Group counsel, Jeffrey Wittenberg of Wittenberg Law, who presented her with an email Diamond Resorts sent to her containing a “final settlement agreement” days before she terminated her relationship with Newton Group and DC Capital Law, Mrs. Reeves confessed that her earlier testimony had been wrong and that she did in fact know about the Diamond Resorts offer to pay her off before she terminated the relationships.

“Diamond CEO Mike Flaskey’s strategy of offering Mrs. Reeve money in exchange for ‘cooperation’ against us seems to have backfired,” Newton said. “We invite Flaskey and Diamond to pay more of our clients to terminate their timeshares as they did with the Reeves. We believe Flaskey’s dissemination of false and misleading press releases regarding the Reeves is yet another tactic that will backfire on them. In the meantime, Newton Group will continue to help anyone looking for a safe and legal end to their timeshare.”

“Diamond CEO Mike Flaskey’s strategy of offering Mrs. Reeve money in exchange for ‘cooperation’ against us seems to have backfired,” Newton said. “We invite Flaskey and Diamond to pay more of our clients to terminate their timeshares as they did with the Reeves. We believe Flaskey’s dissemination of false and misleading press releases regarding the Reeves is yet another tactic that will backfire on them. In the meantime, Newton Group will continue to help anyone looking for a safe and legal end to their timeshare.”

Reeve also testified that a Diamond Resorts employee, Maria Kalber, spoke to her on the phone, along with two lawyers for Diamond Resorts holding on the line—telling Reeve they would like to talk with her but could not ethically do so while she was represented by legal counsel at DC Capital Law. Reeve also said her settlement agreement with Diamond Resorts was drafted by Diamond’s lawyers and that she signed it without having her own counsel advise her or explain the terms of the contract to her. During her deposition, Reeve appeared confused about certain legal issues surrounding her settlement agreement including that Diamond Resorts may have caused her to suffer additional damage arising from false statements she made as a result of her “cooperation” with Diamond Resorts.

“It appears that once again Diamond Resorts has manipulated a vulnerable retired couple by unethically interfering with their legal representation,” Newton said.

“It appears that once again Diamond Resorts has manipulated a vulnerable retired couple by unethically interfering with their legal representation,” Newton said.

Reeve and her husband first purchased a timeshare in 1995 from Diamond’s predecessor and then in 2017—with the promise of more flexible travel options—signed up for another Diamond contract for 4,600 points. When asked what she received in exchange for the purchase price of approximately $25,000, Reeve responded: “Absolutely nothing.” She said she and her husband were never able to use it because Diamond Resorts made it so difficult for them to make a reservation.

Reeve said Diamond defrauded her by making false and material statements. “It was an absolute fraud,” Reeve said. “Because when we tried to use [our timeshare points], they said, ‘Oh, no—there are more fees. No, you can’t—you can’t.’ They started giving us the list of things we could not do, and they did not correspond with what they had told us we could do.”

“Flaskey has accused Newton Group of offering ‘illusory’ services,” Newton said. “But Mrs. Reeve confirmed that the services we provide are real and her testimony shows that it is Diamond timeshares that are ‘illusory’ because the payment of $25,000 in exchange for Diamond points got her nothing at all. Sadly I have heard of many more Diamond owners having similar experiences of being unable to reserve rooms when they are able to travel despite promises to the contrary.”

“Flaskey has accused Newton Group of offering ‘illusory’ services,” Newton said. “But Mrs. Reeve confirmed that the services we provide are real and her testimony shows that it is Diamond timeshares that are ‘illusory’ because the payment of $25,000 in exchange for Diamond points got her nothing at all. Sadly I have heard of many more Diamond owners having similar experiences of being unable to reserve rooms when they are able to travel despite promises to the contrary.”

Reeve’s testimony proves Diamond Resorts is disseminating a smear campaign against Newton Group and DC Capital Law, as shown by Diamond’s press release dated September 15, 2020, wherein Diamond announced “as part of the agreement with the Reeves” Diamond filed a suit on their behalf against Newton Group and DC Capital Law to reclaim the Reeve’s $6,000 fee paid to Newton Group. But because Reeve testified she received the services provided by Newton Group and DC Capital Law—and that she benefited from those services—this latest sham lawsuit by Diamond Resorts will trigger a vigorous defense; whereby Newton Group will seek significant monetary sanctions against Diamond Resorts for its frivolous and abusive conduct.

“This entire Diamond deal is shady,” Newton said. “This is what happens when you let a timeshare salesman, Michael Flaskey, steer the company—Diamond timeshare owners deserve better. We are confident in our services and our track record proves we’ve successfully helped thousands of timeshare owners safely and legally end their ownership. Facts speak for themselves—our efforts led to the Reeves exiting their timeshare contracts.

“This entire Diamond deal is shady,” Newton said. “This is what happens when you let a timeshare salesman, Michael Flaskey, steer the company—Diamond timeshare owners deserve better. We are confident in our services and our track record proves we’ve successfully helped thousands of timeshare owners safely and legally end their ownership. Facts speak for themselves—our efforts led to the Reeves exiting their timeshare contracts.

Fraught with inaccuracies, the Diamond press release claims “[the Reeves] were also unaware that there was no reason to work with a so-called “exit” company in the first place. The Reeves could have contacted Diamond Resorts to discuss changes to their contract…”

But Reeve proved that a blatant falsehood by authenticating evidence that, prior to hiring Newton Group, she had written to Diamond on three separate occasions in 2017 notifying Diamond of her belief that she and her husband were “fraudulently induced” to enter into the Diamond timeshare contracts and asking Diamond to void their timeshare interests. Diamond Resorts ignored her requests. The Reeves then hired a different third party to help end their ownership, but that failed as well.

“We paid another company a few thousand and they took our money and disappeared, I guess they were a scam,” Reeve said. “That was many years before we contacted Newton Group—that was the first time we tried to get rid of it.”

Finally, the Reeves decided to hire the Newton Group which as part of their service, engaged legal counsel for her at DC Capital Law.

Diamond’s press release also falsely claimed Newton Group “deceived [the Reeves] into purchasing illusory timeshare exit services” based on Newton Group’s “false advertising”. This was refuted by Reeve, who testified she and her husband did not hire the Newton Group because of any particular advertisement—she hired them because she wanted out and believed she needed third party assistance to get out. At the time, the Reeves also considered engaging Timeshare Exit Team, but preferred the Newton Group.

“We interviewed with both companies and decided that the Newton Group was a better deal for us, and that was why we signed a contract with them,” stated Reeve.

Newton Group continues to make headway in federal court against Diamond’s allegations, including those of false advertising. On July 31, 2020 the court denied Diamond’s motion for summary judgment by stating that Diamond Resorts failed to meet its burden of proving a Newton Group advertisement to be false.

The Reeves also complained about a significant increase in their maintenance fees. Reeve agreed it was beyond what was expected. “It was $2,000, and then it was $3,000, and then I think the last I heard it was $7,000 or something like that,” she said.

According to Diamond, “The Newton Group also told the Reeves that the exit would be completed within a year.” However, under cross-examination, Diane Reeve admitted the contract she signed with Newton Group clearly informed her that there is no guarantee of any particular time frame for exiting timeshare ownership.

“Newton Group does not offer contracts with a specific timeframe, as a matter of fact, it’s something we warn against in our Consumer’s Guide to Timeshare Exit,” said Newton. “We have our clients initial their understanding of this in our contract.”

Diamond and its CEO Mike Flaskey have recently announced their commitment to shutting down consumers’ access to third-party exit companies.

“Flaskey’s ill-conceived war is irresponsible, even un-American,” Newton said. “In fact, it is really his war against Diamond timeshare owners. He wants to restrict consumers’ choice, forcing consumers to deal only with Diamond Resorts when they want to terminate. These consumers need help—they have the right to seek help and deserve to feel protected by counsel when seeking termination of a Diamond timeshare, as Diane Reeve said she did.”

“Flaskey’s ill-conceived war is irresponsible, even un-American,” Newton said. “In fact, it is really his war against Diamond timeshare owners. He wants to restrict consumers’ choice, forcing consumers to deal only with Diamond Resorts when they want to terminate. These consumers need helpthey have the right to seek help and deserve to feel protected by counsel when seeking termination of a Diamond timeshare, as Diane Reeve said she did.”

Reeve stated that, to this day, she still feels she was defrauded by Diamond. “I felt that their sales pitch is not honest, that they put high pressure on you, that you sign things when you are just too tired to even know what you are doing, and they are not honest as far as letting you out of a contract,” she said. “My opinion of Diamond has not changed.”