CAMDEN, N.J. – A federal grand jury for the District of New Jersey, sitting in Camden, has returned a 44-count Superseding Indictment against ten individuals involved with The Vacation Ownership Group, a/k/a VO Group LLC- for their alleged roles in a $3 million mail and wire fraud conspiracy involving time share mortgages, U.S. Attorney Paul J. Fishman announced. 

The six indicted defendants from New Jersey are:  Adam Lacerda, 28, and his wife, Ashley R. Lacerda, 32, of Egg Harbor Township; Ian Resnick, 37, of Absecon; Steven Cox, 48, of Ventnor City; Francis Santore, 52, of Northfield; and Joseph Diventi, 32, of Somers Point.

Also indicted are:  Alfred Giordano, 32, of Hurry County, S.C.; Brian Corley, 27, of Little River, S.C.; Joseph Saxon, 38, of St. Thomas, Virgin Islands; and Genevieve Manzoni, 46, of Lake Worth, Fla.  The indictment was
returned by a federal grand jury on Jan. 23, 2013.

Ian Resnick, Joseph Saxon, and Genevieve Manzoni previously were charged by criminal complaint.  Adam Lacerda, Ashley R. Lacerda, Steven Cox, Alfred Giordano, Francis Santore, Brian Corley, and Joseph Diventi previously were indicted on the same charges by a federal grand jury sitting in Trenton on May 3, 2012.

The defendants are expected to be arraigned before U.S. District Judge Noel L. Hillman in Camden federal court in the coming weeks.

According to the Complaint, during the course of the investigation, law enforcement officers interviewed approximately 225 victims of the conspirators’ scheme identified to date.  Many of the victims are elderly, causing them to be more vulnerable to the scheme.  The Indictment states that law enforcement has
determined that the conspirators defrauded the victims of more than $3 million.

 The mail and wire fraud conspiracy charge – with which all defendants named in the Superseding Indictment are charged – is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine.  Each
additional, substantive charge of mail fraud or wire fraud carries an additional, maximum potential penalty of 20 years in prison and a $250,000 fine. The conspiracy to commit money laundering charge subjects defendants Adam and Ashley Lacerda to an additional, maximum potential penalty of 20 years in prison
and a $500,000 fine.  Defendants Adam and Ashley Lacerda also face an additional, maximum potential penalty of 10 years in prison for each substantive money laundering count in which they are charged.


U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge David Velazquez in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for the investigation leading to today’s Indictment.  He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its
assistance.

The charges and allegations contained in the Superseding Indictment are merely accusations, and the defendants are considered innocent unless and until  proven guilty.

Anyone who believes they are a victim of fraud perpetrated by this company or individuals should contact the FBI’s Atlantic City Resident Agency at 609-677-6400.

 As  the result of a Federal Trade Commission investigaton, the operators of a telemarketing scheme that  allegedly deceived consumers who were trying to sell their timeshare properties  are permanently banned from the timeshare resale business, and from all  telemarketing, and one of them has been ordered to pay more than  $6  million.  

In July  2011, the FTC charged Leandro Velazquez, Edgar Gonzalez, Samuel Velazquez, Joel  Velazquez, and others with  violating the FTC Act and the FTC’s  Telemarketing Sales Rule by misrepresenting  that they had buyers willing to pay  a specific price for consumers’ timeshare  properties, that they would refund  their up-front fee when the property was  sold, and that the FTC would review  and approve proposed sales.  At the FTC’s request, the court halted the  operation, pending litigation.

 According to the FTC, the defendants  charged consumers up to $3,150 as an “earnest money deposit” to commit them to  the sale or for sale-related expenses, and promised to refund the money when  the sale closed.  Customers often were  not contacted again, their properties were never sold, and their refund demands  were ignored or denied.  Contrary to the  defendants’ alleged assertions, the FTC does not review or approve timeshare  sales.

The court entered a final judgment  against Leandro Velazquez and approved settlement agreements with Edgar  Gonzalez, Samuel Velazquez, and Joel Velazquez. In addition to banning Leandro Velazquez from  all telemarketing and from participating in the timeshare resale business, the court  order prohibits him from collecting money from customers, selling or otherwise  benefitting from consumers’ personal information, failing to properly dispose  of customer information, and misrepresenting material facts about any goods or  services.  The order also imposes a  judgment of almost $6.3 million against Leandro Velazquez.  The three settlement agreements include the  same bans and impose the same monetary judgment, which is suspended based on their inability to pay.  The full  judgment will become due immediately if those
defendants are found to have  misrepresented their financial condition.

 Litigation continues against and Kiomary  Cruz and the corporate  defendants.

The Commission vote, including  Commissioner J. Thomas Rosch, approving the  proposed settlement orders was  5-0.  The final order against Leandro  Velazquez  and the settlement orders with other defendants were entered by the  U.S.  District Court for the Middle District of Florida, Orlando Division.


NOTE:  Settlement orders are for settlement  purposes only and do not constitute an admission by the defendants that the law  has been violated.  Settlement orders have the force of law when approved and signed by  a District Court judge.

A new report of a telemarketing scam targeting timeshare resales has surfaced in a report on WPSD Channel 6 out of Paducah, Kentucky.  The victims own a Westgate timeshare in Orlando, and are desperate to sell it to escape the $500. per month mortgage payment to Westgate.

"That's all we talk about, is getting rid of this. This is the biggest mistake we've ever made," Mann said
of a timeshare.  

The victim received a telemarketing call from someone claiming to be from Coastal Properties in
California, who said they were sitting across from someone who just made an offer to purchase the timeshare. The victim was told that she needed to send a $500. prepaid cash card to cover title search fees.

So she turned to the sheriff's department and filed a report, but the sheriff tells Local 6 the chances of tracing the call and tracking the scammer is slim to none.

WPSD Local 6's Jason Hibbs reached out to Coastal Properties in  California.  The owner said the caller does not work for their company and this is the first time, to their knowledge, that anything like this has happened.  They said they'll work closely with law enforcement to try and track down the person using their company name.

This is another example of con artists using identity theft techniques to appear to be a legitimate company. counting on the victim to fail to research or verify the information.

There are a few simple strategies that will protect a consumer from this type of crime.

1) First and foremost- any telemarketing cold call promsing to sell or rent your timeshare is a scam! Unless you have purposefully placed ads showing your contact information, there is no way a legitimate timeshare resale brokerage will be able to obtain your information. Legitimate resale brokers do not purchase or call blackmarket owner lists, so the easiest way to avoid this type of telemarketing fraud is to simply hang up the phone!

2) Do not pay ANY type of upfront or advance fee to sell a timeshare! If you are selling or renting a timeshare through a third party brokerage, there is absolutely no reason to pay any type of advance fee. The timeshare resale process should proceed in the exact same manner as a residential home sale. You choose a respected broker who should be able to provide you with a free valuation of the timeshare's expected resale value. You list your property with that broker with an written agreement showing any and all costs or commissions that will be due if the timeshare is sold. The broker pays for advertising to secure a buyer. Once a buyer is located, a third party closing agency will provide you with an itemized breakdown of closing fees including any commissions due to the brokerage. You can compare this breakdown with the original listing agreement and the amounts should match!  Any payments required from you (unless you are upside down and owe more than the selling price) will be deducted from your sale proceeds at closing. You don't send in money, you just receive a little less from the sale price!

3) Does it pass the "Smell Test"? Finally, pay attention to your own common sense! Take a deep breath and always wait a day before you make a final decision. A timeshare that is purchased or sold on impulse will often lead to regret! Ask yourself if the promised transaction makes any sense. For instance, in the example above- why would a prepaid cash card be required from a legitimate company? Why would a legitimate company insist that you pay with an untraceable form of payment? The easy answer is that a legitimate reseller would not!

The South Florida Sun Sentinel has published an article updating the government prosecution against the owner of Timeshare Mega Media for timeshare related wire fraud. Joseph Crapella aka "Joey Cigars" and his mother are the most recent people facing criminal charges for this timeshare resale scheme that allegedly scammed more than four million dollars from desperate timeshare owners.

The Federal Trade Commission has already obtained a $2.7 million dollar judgement against the company, but now alledged con artists could also face serious jail time for related charges. A single  count of conspiracy to commit wire fraud can result in up to five years in prison.

Many of the companies employees have already been prosecuted.

A reader has submitted details of a timeshare scam which was previously reported. This one involves a telemarketing call from a company or individuals using the name "Access Travel Network". The readers email is below with specific details, and it appears this group is using some common tactics.

In this type of cold call scam, the con artist pretends to be affiliated with a respected timeshare exchange company. In this particular instance the reader reported that the caller represented an affiliation with RCI. The timeshare owner is told that they have a large number of "RCI Getaway Weeks" that are about to expire, and that the telemarket can successfully rent those weeks to "corporate clients for upcoming conferences in Orlando". The timeshare owner is told they must pay a reservation or exchange fee for each of the promised rentals. If the victim pays the imaginary fees (by the way these expiring getaway weeks don't actually exist) the promised rentals never happen and the victim is unable to obtain a refund.

If you have been a victim of this type of telemarketing scam, or believe you have been defrauded by this same company or individuals, please take the time to report the crime to the Florida Attorney General by calling the Florida Fraud Hotline at 1 (866) 966-7226.

"...Received a phone call on July 26, 2012 from Deborah Page at ACCESS TRAVEL NETWORK with an offer to sell my "RCI Vacation Getaway" weeks. She claimed I had  10 of these weeks that were due to expire in August 2012 and they were trying to  meet the rental needs of corporate clients for upcoming conferences
in Orlando.  She said she was working with RCI and had confirmed availability with them.  However since these benefit weeks belonged to me, they "required" me to pay  upfront for the booking fee of $149 per week for 10 weeks to release and reserve  the unit from the RCI inventory. They would arrange the
rental with their client  (taking a commission), and forward the net proceeds. 

First off, let me say right  now that I was absolutely "stupid" to have considered this and gone further.  However, I agreed to have them send me a contract to consider and sign. I  received an electronic version of the contract on July 27th which I  electronically signed. I immediately had second thoughts and called the company  within 24 hours and multiple other times over the next two days requesting  cancellation with no response. The contract stated "7 day cancellation policy"  on the form and also that "all owners must sign". My wife and I are joint owners  of our Wyndham time share and related RCI benefits, and she did not sign or  agree to this.

We sent the contract with "VOID" on all  pages and a cover  letter requesting cancellation and full refund (also noting that the contract  was not valid by ATN's own contract requirement that "all  owners must sign").  This was delivered via registered Fed Ex and signed for on July 31st at 2:30pm  and prompted a phone call from Paul Roberts at Access Travel Network during  which he promised a full refund would be credited to our  Discover account.  Of course, no credit has been applied. I am certain I have been burned for  $1,490.00 and my hope is to make others aware and save them from the same fate. 

I have filed a dispute complaint with my credit card and will file complaints  with the Florida Attorney General's office and others. Further research has  shown that I did not have the 10 weeks RCI Vacation
Getaway option available  and that this offer violates RCI's terms and conditions, obviously making ATN's  claims and offer unsupportable.

THIS IS STILL CLEARLY A SCAM!!! ..."

A reader has submitted what he believes is another version of the Mexican timeshare resale scam, this time being allegedly perpetrated by a company or individuals using the name "Property Solutions International". 

"...I'm not sure at this time if there is a scam but have been contacted (without cause) by a Perrie Walker with Property Solutions International 410 South Spring, Suite 310, Los Angeles, CA 90013 requesting to purchase our time share in Mexico. There is no up front cost but they request the attached sales agreement signed (of course they say they already have a buyer) a copy of the front page of our original sales agreement and our contract number. When  we asked for PSI's broker license number we were told they would send it once  the paperwork was faxed to them..."

When I reviewed the paperwork it appears to have the earmarks of many of the current telemarketing scams targeting Mexican timeshare owners: a very high sales price and an unsolicited cold call. 

If you believe that you have been the victim of a telemarketing scam or any other type of timeshare fraud perpetrated by this company, please take the time to contact the California Attorney General.

Over the past few years there have been numerous cases where individuals have been fined and imprisoned for timeshare related fraud. However, identifying and reporting con artists who victimize timeshare owners is the first step.  

A reader has submitted a possible timeshare scam alert regarding what he believes is a fraudulent sale contract for his Mexican timeshare from a company calling itself Mission Vacation Inc. which claims to be based out of San Diego, California.

The reader reports that he received a cold call promising that a buyer was secured for his Villa del Palmar timeshare in Mexico at an amazing resale price of more than $40,000! A quick search on popular timeshare classified websites shows resale weeks in this timeshare system offered for sale at prices as low as $495. as of the date of publish.

Mexican timeshare owners are often the target of timeshare con artists, who cold call with the promise of hugely inflated resale prices and no "upfront fees". Then the "sale" is referred to a fake closing and escrow agent, who then demands thousands in fake closing costs and Mexican transfer taxes that do not exist or apply to timeshare resale transfers. The timeshare owner is told that they must pay these "transfer fees" in order to have the escrow agent release the promised money. If the consumer pays these fake fees and taxes, no sale or transfer ever occurs and the timeshare seller is unable to obtain a refund.

If you believe that you have been the victim of consumer fraud or mail fraud perpetrated by Mission Vacation Inc or Tracy Eastham- please take the time to report the possible crime to the California Attorney General! Promptly reporting timeshare related fraud is the best way to stop it!

Police said that Damon Pucci was taken into custody by West Palm Beach police two days after  his 24th birthday on Oct. 4, on a fugitive from justice warrant. Pucci entered a not-guilty plea at his arraignment on 10 counts of second-degree larceny, online records show.

He is accused of contacting the victim earlier this year about a promised timeshare sale. Pucci allegedly said that he could help the woman sell the property, but only after she agreed to wire him "fees related to the sale".  The victim states she sent him $1,500, but the timeshare was never transferred or sold. Believing she was the victim of a timeshare scam, she alerted authorities and was able to provide them with enough evidence for him to be found and arrested!

This woman deserves our respect and congratulations for refusing to be a victim. By taking the time to report the crime, she has likely saved many other timeshare owners who might otherwise have also been taken in by what appears to be another fake closing cost timeshare telemarketing scam!

Authorities say they have finally caught up with a woman accused of defrauding more than seventy people in multiple states in a timeshare advocacy scam. The woman, Josephine Walker of Boynton Beach, Florida is accused of stealing more than $60,000 from timeshare owners in a timeshare advocacy scam operating under the name Restitution Advocacy Bureau LLC. Walker has been charged with grand theft and money laundering.

The Delray Beach Police Department discovered the timeshare scheme in 2011 when the Florida Attorney Generals office contacted them about two other fraudulent telemarketers in the area, Delta Corp. and G. 
William Clarke, P.A. Both companies were were operating as unlicensed telemarketers, targeting previous victims of timeshare resale fraud and promising they could collect refunds for the victims. Gerald William Clarke, who owned both companies, was arrested in March.

During that investigation, another mystery company using the same scam was uncovered using the name Restitution Advocacy Bureau LCC. Documents in the Florida Department of State's Division of Corporations list Josphine Walker as the company's manager.

Often, these con artists multiply like a nasty virus- splitting off into new "businesses" that use the same fraudulent tactics and often even use the same stolen lists of timeshare owners. In this case the con artists were even more brazen than ususal- telling victims that they were working with the Florida Attorney General's office to collect and distribute refunds to victims of timeshare resale fraud. The telemarketers then asked for upfront fees ranging from $400 to $4,000. Money that was supposedly being used for court costs and filing fees. The telemarketers promised to repay victims with funds from a non-existent "state restitution fund."
 

After a settlement with the Federal Trade Commission, the owner of a telemarketing operation that deceived consumers who were trying to sell their timeshare properties is permanently banned from the timeshare resale and rental business, and from all telemarketing operations.  The settlement followed a court ruling against Vacation Property Services.. 

According to the FTC’s lawsuit, Vacation Property Services, Inc., made tens of thousands of unsolicited telemarketing calls to timeshare owners falsely claiming that they already had, or could quickly find, buyers for the owners’ timeshares. The defendants demanded that consumers pay a large upfront fee. The FTC’s complaint charged Vacation Property Services, Inc. and its manager and owner, Albert M. Wilson, with violating the FTC Act and the Telemarketing Sales Rule by misrepresenting the company’s refund policy and the existence of potential buyers. The complaint also charged the defendants with calling hundreds of thousands of consumers whose phone numbers are on the FTC’s Do Not Call Registry.

In May, the United States District Court for the Middle District of Florida held that the company deceived consumers into paying large up-front fees by claiming that it had buyers lined up or would find buyers to purchase consumers’ timeshare properties, and that it had violated the TSR by calling telephone numbers listed on the National Do Not Call Registry. The court held that there were genuine issues of material fact with respect to whether Wilson had sufficient knowledge of Vacation Property Services’ misstatements and illegal calls such that he could be held financially liable for the illegal conduct. The court also held that the company and Wilson failed to pay the required fees to access the Registry.

The settlement order permanently bans Mr. Wilson from all telemarketing and from participating in the timeshare resale and rental business.  It also prohibits him from misrepresenting material facts about any goods or services, and from selling or otherwise benefitting from consumers’ personal information.

The order imposes a judgment of more than $4.2 million, which will be suspended when Wilson has surrendered $120,000, a 2002 Porsche 911, a Spectre Sportfish boat, and his interest in Vacation Property Services.  The full judgment will become due immediately if Wilson is found to have misrepresented his financial condition to the FTC.  Charges against the other defendants in this case were resolved in a settlement order announced in April.

NOTE FROM THE FTC:  This settlement order is for settlement purposes only and does not constitute an admission by the defendant that the law has been violated.  Settlement orders have the force of law when approved and signed by a District Court judge.