Receiver's Letter To Customers And Creditors Of J. William Enterprises, LLC And Pro Timeshare Resales

FEDERAL RECEIVERSHIP AUCTION

At the direction of Brian A. McDowell, Receiver, Ewald Auctions has been authorized to sell certain real and personal property at public auction. The auction will take place over a two day period. Please CLICK HERE for an informational flyer about Day 1, Friday, October 19, 2018 at 11:00am. Please CLICK HERE for an informational flyer about Day 2, Saturday, October 20, 2018 at 11:00am.

To learn more about the real and personal property to be auctioned, including photos, virtual tours, information about online bidding, and auctioneer contact information, please visit Ewald Auctions’ website:

Day 1, Friday, October 19, 2018 at 11:00am: http://www.ewaldauctions.com/auction/341441/federal-receivership-auction-day-1/

Day 2, Saturday, October 20, 2018 at 11:00am: http://www.ewaldauctions.com/auction/341445/federal-receivership-auction-day-2/

NOTICE TO CONSUMERS: It has come to the Receiver’s attention that an entity by the name of All Mobile Solutions, LLC (and possibly other companies) have been contacting previous customers of the Receivership Defendants and offering, FOR A FEE, to either purchase the customers’ potential claims in the case or file a dispute with customers’ credit card companies regarding charges billed to customers by the Receivership Defendants. All Mobile Solutions, LLC (and other similar companies) are not related to or authorized in any way by the Receiver. The Receiver cautions all customers of the Receivership Defendants AGAINST paying any up-front fees to any company, including All Mobile Solutions, LLC, that offers to purchase claims or file a dispute with the customers’ credit card companies. As noted above, if a claims process is implemented in the Case, you will be notified – and no fee will be required to participate in the claims process.

On December 13, 2016, United States District Judge Gregory A.Presnell in the Middle District of Florida appointed me, Brian McDowell, as Receiver over the following entities:

The Federal Trade Commission alleges that these entities (“Receivership Defendants”) along with their principals, through a common enterprise, engaged in a plan, program, or campaign to deceptively advertise, market, promote, offer for sale, or sell timeshare resale or rental services. The FTC’s charges are summarized in a December 22, 2016 Litigation Release.

As Receiver, I am authorized and directed by the United States District Court, among other things, to i) assume custody and control of all of the Receivership Defendants' businesses, assets and properties, ii) determine, adjust and protect the interests of consumers and customers who have transacted business with the Receivership Defendants, iii) evaluate the activities of the Receivership Defendants and determine whether to conduct any further business or cease operation of the business, and iv) preserve the value of the Receivership Defendants' assets and properties in order to prevent any irreparable loss or injury to the consumers or creditors of the Receivership Defendants. In conjunction with my appointment as Receiver, the Court also imposed a freeze upon all of the assets and properties of the Receivership Defendants and a stay of any litigation against the Receivership Defendants.

UPDATE: On April 30, 2018, the Court entered a Stipulated Final Judgment and Order (“Final Judgment”) (with the agreement of the FTC and the Defendants) pursuant to which the Defendants are permanently restrained and enjoined from advertising, marketing, promoting, offering for sale or selling, or assisting in the advertising, marketing, promoting, offering for sale or selling timeshare resale services. The Defendants are also permanently restrained and enjoined from participating in telemarketing. Please CLICK HERE for a copy of the Final Judgment. As further explained in the Final Judgment, the Defendants are required to transfer additional assets to the Receiver, which the Receiver must liquidate (if the assets are found to have recognizable value).

The trial that was previously set for June, 2018, has been cancelled. Although a claims process has not yet been established, please visit www.protimeshareresales.com for additional information as it becomes available.

The website upon which this letter appears has been set up to help provide you with information about the actions that led to my appointment, the status of the case, and the steps you can take to help process any claims that you may have against the Receivership Defendants. Please note that you can double click on any underlined blue entry to hyperlink to the referenced document. I will also endeavor to update this letter when developments warrant it.

If you wish to leave an e-mail message for me, please click on the following link, ProTimeshareResalesReceiver@hklaw.com. Due to the large number of inquiries, however, please allow me several days to respond.

Background Regarding Appointment of a Receiver

On December 12, 2016, the Federal Trade Commission (“FTC”) filed its Complaint for Injunctive Relief and Other Equitable Relief (Doc. No. 2) in the United States District Court for the Middle District of Florida, Tampa Division, against defendants J. Williams Enterprises, LLC, d/b/a Pro Timeshares Resales (“JWE”), Pro Timeshare Resales of Flagler Beach, LLC (“Pro Timeshare Flagler”) (JWE and Flagler are collectively referred to as the “Receivership Defendants”), Jess Kinmont (“Kinmont”), and John P. Wenz, Jr. (“Wenz”) (Receivership Defendants, Kinmont, and Wenz are collectively referred to as “Defendants”). In its Complaint, the FTC alleges that the Defendants, through a common enterprise, engaged in a plan, program, or campaign to deceptively advertise, market, promote, offer for sale, or sell timeshare resale or rental services.

On December 13, 2016, the Court entered its Ex Parte Temporary Restraining Order (“TRO”)(Doc. No. 11) enjoining the Defendants from misrepresenting, or assisting others in misrepresenting, directly or indirectly, expressly or by implication, that Defendants have a buyer or renter for the consumer’s timeshare property, and appointing me as temporary receiver over the Receivership Defendants. On December 21, 2016, and continuing on December 22, 2016, the Court conducted a show cause hearing in connection with the FTC’s Motion for Preliminary Injunction (Doc. No. 3). At the hearing, the Receiver testified about his actions taken pursuant to the TRO, the business of the Receivership Defendants, and his conclusion that the business could not operate lawfully and profitably. During the course of that hearing, the FTC and Defendants announced they had reached an agreement that the Defendants would stipulate to the entry of a preliminary injunction. As a result, on December 27, 2016, the Court entered the Stipulated Preliminary Injunction Order with Asset Freeze, Appointment of a Permanent Receiver, and Other Equitable Relief (the “Stipulated Preliminary Injunction”) (Doc. No. 55) . Pursuant to the Stipulated Injunction, I became the Permanent Receiver over the Receivership Defendants.

Status of the Receivership defendants

As Receiver, I am an independent agent of the Court charged with, among other things, conserving and managing all assets of the Receivership Defendants and performing all acts necessary or advisable to preserve the value of those assets in order to prevent any irreparable loss or injury to consumers or creditors of the Receivership Defendants. Immediately upon my appointment, I took a number of steps to discharge this obligation:

I have ceased all telemarketing and advertising business activities of the receivership defendants. I have also instructed the company responsible for debiting consumer bank accounts for the so-called enrollment fees for the Receivership Defendants to stop making such debits. Lastly, I am examining all transactions between the Receivership Defendants and the Individual Defendants and certain third parties to determine whether any such transactions were fraudulent, unsupported by adequate consideration, or otherwise unjustly enriched the Individual Defendants or third parties to the detriment of the Receivership Defendants. In the event I determine that the Receivership Defendants have viable claims against the Individual Defendants or third parties for the return of any misappropriated funds, properties or other assets, I intend to prosecute these claims on behalf of the Receivership Defendants and seek the recoveries of these ill-gotten gains.

Receivership Reports

Pursuant to the Court’s Orders, I have filed monthly reports with the Court. The monthly reports detail the actions taken by my counsel and me to carry out my mandate. For your review, I have provided links to the reports below:

The Claims Process

Ultimately, I anticipate that the Court will authorize me or FTC to develop and implement a process by which consumers, former employees, vendors, and any other persons who may have a claim for losses or damages against the Receivership Defendants may seek the distribution of funds from the Receivership Defendants in satisfaction of these claims. Please be aware that in any such claims process you will be required to document and otherwise support your claim for distribution.

Typically, I will review all claims and make a recommendation to the Court whether I believe the claim is valid and should be approved. I will also usually recommend the amount of the particular claim that should be approved. Creditors will be provided with adequate notice of my recommendation and an opportunity to file an objection to any adverse recommendation with the Court. The Court may, if it deems it appropriate, conduct a hearing on the various claims filed against the Receivership Defendants. At the end of the process, available funds of the Receivership Defendants will be distributed to those persons whose claims were approved by the Court.

Please continue to monitor this website for significant developments in this matter. As indicated at the outset, I will endeavor to update this site so that you might track and understand the action and proceedings that may affect your interests.

Contact Information For Receiver:
Brian McDowell, Receiver
Holland & Knight LLP
P.O Box 1526
Orlando, Florida 32802
ProTimeshareResalesReceiver@hklaw.com.