Complaint / review text:
Before Doing Any Business With This Person or These
Companies: Michael Eugene Kelly * a. K. A. Mike Kelly
or Mike Kelly Jr. Of: South Bend/La Paz Indiana * Cancun, Mexico Las Cumbres, Panama * Ambergris Caye, Belize
Isla Mujeres, Mexico Doing Business As: Avalon Grand Hotel * Avalon Resorts Avalon Vacations *Avalon Reef Club
Hotel Baccara * Avalon Bay Hotel Majesty Travel * World Phantasy Tours Fantasy Tours * Viajes Majesty Avanti Motor Corporation Yucatan Investments S. A. De C. V.
Yucatan Resorts S. A. De C. V. Operadora Hoteles Grand S. A. De C. V. Josefine's Clubs (Panamanian brothels / strip clubs) et al.
Be Aware that:
It is a matter of public record that Michael E. Kelly has been and is currently under investigation for fraud, violation of securities laws and other questionable activities related to investment scams in a number of States in the United States.international investigations are also underway at this time.
Michael Eugene Kelly is known to be involved in the sales of illegal,
Unregistered securities investments and in the operation of illegal "Ponzi" investment schemes. Kelly operated investment scams can take several forms. This Fraud Alert
concerns two. These scams are called the "Universal Lease" and the "Yucatan Nine Month Note"."Yucatan Nine Month Note"
This scam usually involves a salesperson who appears to be connected to a legitimate insurance, real estate or investment company. These "sales agents" often are not licensed or registered in the states where the frauds occur. The agent will sell unsuspecting clients a promissory note. These notes promise returns of 8 to 13 % A. P. R. These promissory notes are not registered in
any U.S. State and are illegal. According to investigators, these promissory notes are part of a classic "Ponzi" scheme.
A Ponzi scheme is one of the oldest investment scams. The Ponzi scheme involves taking money from newer investors to pay older investors thereby gaining legitimacy to attract more suckers.
When the scam is large enough the perpetrator of the scam then "skips town" with the money to someplace like Cancun, Mexico or Panama City, Panama, leaving the newer investors "holding the bag".
During the period of time the "Yucatan Nine Month Note" scam was operating Kelly called his company Yucatan Investments / Yucatan Resorts / Majesty Travel / Viajes Majesty / Hotel Baccara.
After pressure from law enforcement agencies in a large number of U.S. States Kelly is known to have moved his family and assets to Cancun, Mexico (a country that does not actively pursue illegal investment scammers) and to
Panama City, Panama.
In 1999 news reports and lawsuits started to appear against the Yucatan companies. These pressures forced Kelly to change the name of his companies to Avalon Resorts / Avalon Vacations / Operadora Hoteles
Grand S. A. De C. V. / et al.in 1999 or the first part of 2000.
Kelly used the money that he bilked from investors of the 'Yucatan Nine Month" note to buy a small, hurricane damaged hotel called Club Baccara in Cancun, Mexico. It was from this small hotel that Kelly launched his
next scam, the: Universal Lease Servicing Agreement
This scam, which is being investigated by a number of U.S. States, is connected to a small chain of discount hotels in Cancun, Mexico, Isla Mujeres, Mexico and Manuel Noriega's home country of Panama.
The "Universal Lease Servicing Agreement" scam involves the victim making a timeshare purchase from one of Kelly's Mexican or Panamanian discount hotel properties. Kelly promises "investors" that he will reinvest the purchase price into his timeshare company, Avalon Resorts. Kelly promises unusually large returns on these investments of from 9% to 13% A. P. R. While paying
sales commissions of up to 13% Kelly's "Universal Lease" sales pitch boasts that timeshare vacations which are
unused by the investor will be leased out by a "third party" leasing agent. Kelly promises proceeds of the leasing will revert back to the investor minus a
"leasing fee" commission consisting of a minimum $435 or 40 % of the rental fee, whichever greater.
Kelly fails to mention in his literature that the "third party" leasing agent is actually a Panamanian company, Majesty Travel a. K. A. Phantasy Travel a. K. A
Fantasy Travel. This so called "third party" company is actually owned by Kelly's 23 year old son, Mike Kelly Jr. This company is physically located in the Panama City, Panama offices of one of Kelly's boiler-room sales
Kelly's method is to sell "Universal Lease" certificates to unsuspecting clientsthrough legitimate appearing investment advisors. These investment advisors
come in the form of insurance salespeople, real estate agents or timeshare salespeople. The "Universal Lease" is also sold at timeshare sales presentations
at several small hotels in and around Cancun, Mexico.
"Universal Lease" investments have also been pushed from telephone "boilerroom" sales operations. One such boiler room operates from Kelly's Panamanian office of Majesty Travel.investigators also believe that a Kelly
run "boiler room" was also operated from a location in the South Bend, Indiana area.
Kelly's sales representatives in several of these fraud cases are people who are known to have had administrative orders filed against them in different U.S.
State courts. These court administrative orders involve the sale of illegal, unregistered securities. Michael Kelly himself has been fined in at least one state (Connecticut) for failure to appear to answer State charges against him.
Numerous other States Attorney Generals have files cease and desist orders against Kelly and his associates. These court orders bar Kelly and his associates from peddling these illegal investments in those States.
Court documents outline how proceeds from the sale of the "Universal Lease Servicing Agreement" were misappropriated by Kelly. The same documents
refer to Kelly paying sales agents commissions of up to 13% on sales of the "Universal Lease" program.
Court documents detail how Kelly also used some of the proceeds from the "Universal Lease" fraud in a classic "Ponzi" scheme to pay back some of the
investors from the earlier "Yucatan Nine Month Note" scam.in addition to being used in the illegal Ponzi scheme, court documents also outline how proceeds from the "Universal Lease" were "used to finance a Mexican
Investment scams often fleece elderly, unsuspecting investors. Several court documents and press releases refer to elderly people who have lost life savings
in Kelly run scams. The State of New Mexico has issued news releases naming a Kelly owned company, Yucatan Investments for its role in fleecing mostly elderly New Mexico residents out of over $350,000 in bogus investment scams.
The state of Arizona has a court case that names one of Kelly's companies, Majesty Travel. Arizona court documents detail a scam in that state that involved redirecting $1,000, 000 from a "children's foundation" to Kelly owned
If you have been burned by one of Kelly's scams, there
is a timeshare industry magazine called "The Timeshare Beat"that wants to hear from you!
Go here to give them your experiences with Kelly's
companies: [email protected]
Here is the article in "Timeshare Beat" in which they are
soliciting the public's experiences with Kelly run frauds:
Yucatan Investments &hl=en&ie=UTF-8
The following is a partial list of news releases and court orders involving Kelly. If you would like to read them in their original form, you can follow the links and look up the original documents for yourself.
The State of Arizona has prosecuted a case involving
children's charities in that state. The scam was perpetrated in the State of Arizona by a company called "One Vision Children's Foundation". This organization of thieves duped investors out of millions in the name of helping children. Over $1,000, 000 of this foundations money was diverted to Kelly through a Panamanian business, Majesty Travel. Majesty
Travel is allegedly owned by Kelly's 23 year old son Mike
Kelly Jr. Read all about the Arizona charity scam at:
(PDF file page 6&7) http://www.ccsd.cc. State. Az. Us/enforcement/Actions/
2002/oct28-02. Pdf The State of Wisconsin has filed petitions against Kelly and his associates. The court documents indicate that Mike Kelly and his associates offered illegal, unregistered securities in the State of Wisconsin. The petitions outline frauds and other crimes including an illegal "Ponzi scheme" in which it is alleged that Kelly redirected investor funds collected from the sale of the "Universal Lease" to repay investors from an earlier Kelly fraud called the Yucatan Nine Month Note.
Read the originals here: (PDF file): Petition from 2001:
admin_orders/2001/ma_yucatan_pet. Pdf Petition from 2003:
Order from 2003: hhtp://www.wdfi.org_resources/indexed/site/newsroom/
This document outlines Kelly's decision and agreement with the State of Wisconsin not to do business or hire anyone else to represent Yucatan Investments in that State. See it here: http: www.wdfi.org_resources/indexed/site/newsroom/
The State of Connecticut has filed a Cease and Desist order against Kelly and Yucatan Investments for violation of the Connecticut Uniform Securities Act for selling unregistered securities in that State in regard to the sale of the Yucatan Nine Month Note. This order became permanent when Kelly withdrew his petition for a hearing in the matter. Http://www.state. Ct. Us/dob/orders/yucatan. Txt
Here's an official press release from the State of
Connecticut concerning a crackdown on companies selling
promissory notes in that State.
Http://www.state. Ct. Us/dob/newsrls/pnotes.htm
Here is an order fining Kelly owned Yucatan Investments
$20,000 for failing to appear in court to answer Connecticut State charges against it.
Http://www.state. Ct. Us/dob/orders/yicfine. Txt
The State of Oklahoma has deemed that it is in the public interest that an investigation be opened into possible illegal activities by Michael Eugene Kelly. These activities include the alleged sale of fraudulent securities. Follow this link to read
about the accusations against Kelly in that state:
http://www.securities. State. Ok. Us/Enforcement/Orders/
SW_Inc_Mgmt_OII. Pdf The State of New Mexico filed administrative orders against Kelly and Yucatan investments on May 18,1999.
Charges include "selling unregistered, illegal securities with unlicensed agents" concerning the "Yucatan Nine Month Note".
This article details how Kelly fleeced mostly elderly New
Mexico citizens out of more than $350,000:
Read all about it at: www.rld. State. Nm. Us/FastStats Analyzer/RLD Web Statistics-FID/
There are a number of cease and desist order announcements from the State of Pennsylvania against Kelly and his sales associates who have been trying to pass off Kelly's illegal investment scams in that State.
Here are some of them: To halt the offer and sale of unregistered securities in Pennsylvania, the Pennsylvania Securities Commission has issued a Summary Order to Cease and Desist against Yucatan Resorts S. A. (Yucatan) and Rodney Hinkle d/b/a Preferred Marketing, LLC d/b/a RLH Financial Services in regard to the Universal Lease program. Read all about it at:
http://sites. State. Pa. Us/PA_Exec/Securities/actions/yucatan.html
To order to halt the offer and sale of unregistered securities in Pennsylvania in regard to the Universal Lease program. The Pennsylvania Securities Commission issued a Summary Order to Cease and Desist against Yucatan Resorts S. A. (Yucatan) and Emerald Majestic International, Inc. And Debra Aragon. EMI is located in San Jose, California. See the announcement here:
http://sites. State. Pa. Us/PA_Exec/Securities/actions/emmaj.html To halt the offer and sale of unregistered securities in Pennsylvania with regard to the Universal Lease program, the Pennsylvania Securities Commission issued a Summary Order to Cease and Desist against Yucatan Resorts S. A. (Yucatan) and SeniorLife Asset Management and Chamber financial located in Prescott and Mesa, Arizona, http://sites. State. Pa. Us/PA_Exec/Securities/actions/
To halt the offer and sale of unregistered securities in
Pennsylvania, the Pennsylvania Securities Commission issued a Summary Order to Cease and Desist against Yucatan Resorts S. A. (Yucatan) and InterMountain Agency (IM).
Located in Edgewood, New Mexico in regard to the Universal
Http://sites. State. Pa. Us/PA_Exec/Securities/actions/intermtn.html
The Pennsylvania Securities Commission issued a Summary
Order to Cease and Desist against Yucatan Investments of
South Bend Indiana and Resort Holdings, Inc. A Nevada
corporation located in Las Vegas, NV. This order was for
offering Yucatan Nine Month Promissory Notes, with an
interest rate of 12% per annum in amounts of $5,000 or
Http://sites. State. Pa. Us/PA_Exec/Securities/actions/resort.html
To halt the offer and sale of unregistered securities in
Pennsylvania with regard to the Universal Lease program,
the Pennsylvania Securities Commission issued a Summary
Order to Cease and Desist against Yucatan Resorts S. A. And Safe Estate Plans and G. Lin Phelps. Located in San Antonio, Texas.
Http://sites. State. Pa. Us/PA_Exec/Securities/actions/sep.html To halt the offer and sale of unregistered securities in Pennsylvania with regard to the Universal Lease program, the Pennsylvania Securities Commission issued a Summary Order to Cease and Desist against Yucatan Resorts S. A. And Lawson Marketing and Consulting. Located in Indianapolis, Indiana,
Http://sites. State. Pa. Us/PA_Exec/Securities/actions/lawsonmc.htmlThe State of South Carolina on July 26,1999 filed an administrative order charging Kelly with violations of the anti-fraud provisions of South Carolina securities law, including the sale of unregistered, illegal securities concerning the "Yucatan Nine Month Note". This order also outlines the misuse of investors money by Michael Eugene Kelly.
South Carolina Securities Regulators do not post their cases on the web. If you would like more info on this case please contact South Carolina Securities Regulators directly.
The State of Minnesota has filed cease and desist orders
against Michael Kelly and Yucatan investments for selling
the "Universal Lease" illegally to Minnesota residents.
See it here:
http://www.commerce. State. Mn. Us/pages/NewsReleases/
The State of Indiana Securities Division has filed a petition against Yucatan Investment Corporation, a LaPaz, IN company engaged in the sale of Yucatan Investments Nine Month promissory notes, This petition seeks to compel compliance with an administrative subpoena seeking
production of records. According to the Indiana Securities Division, Yucatan Investment Corporation has failed to fully comply with the subpoena, including the request that it produce the names and addresses of all investors who hold promissory notes issued by the company.
Read it here: