Court Orders Timeshare Exit Operator Carroll to Pay $140M, Issues Permanent Ban

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Why it matters

A federal court in Missouri has ordered Christopher Lee Carroll to pay over $140 million in consumer redress and civil penalties for operating a timeshare exit scheme that defrauded more than 11,000 consumers—predominantly elderly—of $90 million. The U.S. District Court for the Eastern District of Missouri granted summary judgment to the DOJ on behalf of the FTC and the State of Wisconsin on April 1, 2026. The court found Carroll, president and CEO of Square One Group LLC, was the "mastermind" behind the operation, which used high-pressure sales tactics, false claims of affiliation with timeshare companies, and systematic violations of the FTC's Cooling-Off Rule by denying refunds and three-day cancellations. Carroll faces a permanent injunction barring him from timeshare exit services, door-to-door sales, and any deceptive practices.

The scheme operated through multiple corporate entities including Consumer Law Protection LLC, Premier Reservations Group, Resort Transfer Group, and Timeshare Help Source, charging consumers between $5,000 and $80,000 per exit that never materialized. The DOJ and FTC filed their initial complaint in November 2022. Seventeen other defendants, including co-defendants George Reed, Louann Reed, Scott Jackson, and Eduardo Balderas, were resolved in prior rulings; four individuals owe $11 million in partial suspension. The April 1 judgment concludes the multi-year enforcement action.

Attorneys representing consumers in timeshare disputes should monitor enforcement trends in this space. The FTC has signaled heightened focus on exit scams targeting seniors, and the substantial judgment against Carroll—exceeding $140 million—signals the agency's commitment to pursuing individual operators, not just corporate entities. Practitioners should expect continued FTC and state AG activity in this sector.

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