Business Name Used:
Nathan Resnick
Date Reported:
2024-05-12
Victim Postal Code:
00000
Total Dollars Lost:
$ 105,000
Scam Description:
This post is to bring awareness to the unethical business practices executed by self-proclaimed “serial entrepreneur” Nathan Resnick. Resnick utilizes crowdfunding platforms and social media marketing campaigns to collect money for his overpromising start-up companies. It is not unreasonable to compare his schemes to those of Fyre Fest’s Billy McFarland, who was prosecuted for fraud. Simply put, when he has an idea he markets and crowdfunds it, then keeps the money without fulfilling his promises— leaving projects abandoned and his buyers empty handed. Bubble Hotels is one of Resnick’s many business ventures and possibly one of his biggest scams to date. Resnick grossly overestimated his competency to complete the project and decided to abandon it without providing any updates or compensation to his buyers. Bubble Hotels was supposed to be a luxury, dome-style, camping hotel located in Joshua Tree National Park, San Bernardino County. It was first advertised on Instagram/Facebook around October 2020. The campaign ads were directed to their website (bubblehotels.com is inactive) and its Indiegogo page, a crowdfunding platform where backers can be the first to reserve a stay at a discounted price. Initially, an architect and contractor were hired for the Bubble Hotels project to provide fully rendered plans, photos, and promotional videos of the hotel. These renderings, along with the claim on Indiegogo that the team had a “working demo”, are what were used in the campaign ads to promote the hotel and find backers. It was clear from the ads and the website that Bubble Hotels was a project in the making that needed crowdfunding to completely move forward. Initially it was $1 to reserve a spot to become a backer, then when the promotional period was over, backers could purchase an undated reservation voucher. The prices for a voucher range between $299-$1495, depending on the bed size and length of the stay. They started with a goal of $25,000 to get the project started, but the marketing campaign was promising enough that they ended up raising $830,381 from 1,454 backers — clearly exceeding their goal to get the project up and running. The total cost for the project was projected to be around $2,725,000, and in one email we were told that the $830,381 raised would go towards a 30-50% down payment for the loan they would take out for the development. According to public record, the land for the hotel was purchased in 2020 for $105,000, and the permits were supposedly acquired in June of 2020. The Hotel was scheduled to open April 2021, with promised monthly email updates on its progress. In 2022, Resnick began taking reservations for dates in the following months and charging extra booking fees, despite the hotel not being ready yet. Several backers had their trip planned before discovering at the last minute that their reservations were canceled. It was later discovered that not all the necessary permits were issued, if any, and construction never started. “Waiting for permits” or “need county approval” became a typical response from the company when the opening date became indefinite. As the waiting period kept being extended, emails were sent with the impression that other “Bubble Hotel” locations were “in the works” in National parks that would be open before Joshua Tree. Backers were told they could use their Joshua Tree vouchers for any of the locations if we didn’t want to wait for the opening date. There was at least one other location, Bryce Canyon-Invisible Suites, that already had a website (invisiblesuites.com is now inactive) set up just like the Joshua Trees Bubble Hotel, ready to collect reservations through crowdfunding (this time through its own website rather than utilizing Indiegogo’s platform). So far, none of these locations actually exist. Initially, monthly email updates and live video AMA’s were consistent. Throughout the wait period, backers were given false impressions of the project’s progress, believing construction to be active or at least having a prototype built, none of which were true. The Bubble hotels instagram page also stayed updated with showing fake photos of its progress. In late 2022, there was a San Bernardino council meeting for the development of the project and the county finally approved the plan for construction. However, January 2023 was the last time an email update was sent out. Soon after, Resnick started promoting another business on his social media platforms, and it became clear he completely abandoned the Bubble Hotel project. Any email inquiries sent to Bubble Hotels are currently being handled by Gary, a presumed bot. Coincidentally, in 2023 Resnick started a company that handles customer service using AI technology called Caffeinated CX. It is believed this technology is being used to handle any email requests for updates on the hotel. This isn’t just a matter of having an issue with a company’s refund policy. A “no return policy” for goods or services would entail risking dissatisfaction with goods or services that have been received by a buyer. This is a case of not receiving anything in exchange at all. Resnick has yet to compensate anyone who has put their money into his project. Not to mention, Resnick is active on social media where he shares his lavish lifestyle to his followers, showing no evidence of actually working on any of his promised business ventures. It should be under the assumption that there are a set of rules and regulations for promoting products on these platforms as a way to protect not only the consumer, but the reputation/integrity of the platform hosting the product. Anyone who feels they have been defrauded by one of Resnick’s businesses is advised to report him to the Federal Trade Commission and Attorney General.
