BOSTON -- The Massachusetts Attorney General is launching a state investigation into financial troubles uncovered by Team 5 Investigates at two Cape timeshares resorts.

Raw Video: Cape Timeshares Auctioned

Tuesday morning in Dennisport, one of those resorts -- the Navigator Beach Club at 405 Old Wharf Road -- was on the foreclosure auction block. It sold for $2.7 million.

The property was owned by Robert Reposa of Hingham. But when Reposa stopped paying his $2.2-million mortgage, the bank foreclosed. It's not clear what that means for the dozens, maybe hundreds, of people who gave Reposa thousands of dollars thinking they were buying a beachfront timeshare on the Cape.

"I need to get my money back," said Tom Corbin, who paid more than $16,000 for a timeshare in 2006. "I don't know what I'm going to do."

"They stole our money. It's that simple," Steve Bodak said. He purchased a timeshare for $4,300.

After two months of reports by Team 5 Investigates, the Attorney General's office announced Tuesday that her office will investigate Reposa's "failure to fulfill his promises." The Attorney General has 50 complaints about the still-unfinished resort from owners who never got deeds.

The same thing happened at Beachside Village in Falmouth where buyers allege Reposa not only failed to record deeds, but also failed to pay bills and give owners their share of rental money.

But forcing Reposa to ultimately pay restitution or civil fines would just add to his financial troubles. Team 5 Investigates confirmed he owes more than $500,000 in unpaid state and federal taxes.

And Tuesday's auction, which Reposa did not attend, leaves buyers like Corbin and Bodak stuck for now with little recourse.

"There's people with some big, big bucks -- a lot of their retirement money -- you know, dedicated to this program, this project," Bodak said. "And right now, they're out."

The Rhode Island man who bought the timeshare Tuesday told Team 5 Investigates that he had no idea how many angry people are out thousands of dollars, but has no plans to operate a timeshare development.

People who had given Reposa money have set up a Web site to share information.