TimeShare Blog & Reviews Timeshare Reviews – Buying Selling or Renting

Conviction in Florida timeshare scam

Stephen R. Wigginton, U.S. Attorney for the Southern District of Illinois, announced Friday that on Thursday, Ralph Johnson, 34, of Delray Beach, Fla., pleaded guilty to a one-count criminal information charging him with conspiracy to commit mail fraud and wire fraud

The plea was entered in federal district court in East St. Louis.

"While I urge consumers to always be wary of internet or telephone solicitations which sound too good to be true, I will never cease in my determination to prosecute scammers who prey upon the citizens of southern Illinois," said Wigginton.

This is the fourth prosecution arising out of a Florida-based telemarketing scam operating under the name Universal Marketing Solutions and Creative Vacation Solutions targeting owners of timeshares throughout the U.S. The information alleges that Johnson was a telemarketer for Creative Vacation Solutions. The criminal information alleges that he bilked approximately 141 victims of approximately $282,155.58. In previous court filings related to the Universal Marketing Solutions/Creative Vacation Solutions scam, the government has alleged that the overall scam bilked over 22,000 victims of $30 million.

Previous court filings have also alleged that the scam victimized consumers in all 50 states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in 28 of the 38 counties comprising the Southern District of Illinois.

The criminal information alleges that telemarketers for Creative Vacation Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners' timeshare property. Telemarketers then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within the next sixty to ninety days. Despite collecting fees from 22,000 victims, these companies were not successful in selling a single timeshare unit, the Indictment alleges.

The criminal information alleges that Johnson participated in the scheme during 2009. Other court filings allege that the larger scheme operated between 2007 and 2010.

Defendant faces a penalty of up to 25 years imprisonment, a fine of up to $250,000 and a term of supervised release of up to five years. His sentencing is scheduled for Dec. 16, 2011 in East St. Louis.

On June 30, 2011, Jennifer Kirk, alleged to be a principal of both companies, pleaded guilty to conspiracy to commit mail and wire fraud for her role in the alleged scam. Her sentencing is scheduled for Oct. 24 in East St. Louis. On Aug. 17, 2011, a federal grand jury charged Ryan Brazel, Brian Morris and Steve Folan in a multi-count indictment for their alleged involvement in the alleged scheme. On Aug. 19, 2011, Joel Intravaia entered a plea of guilty to conspiracy to commit mail and wire fraud.

His sentencing is scheduled for Dec. 9, 2011.

The guilty plea follows an investigation by the St. Louis Field Office of the Chicago Division of the U.S. Postal Inspection Service which was assisted by the Boynton Beach (Florida) Police Department and the Florida Attorney General's office. The prosecution of the case is being handled by Assistant U.S. Attorney Bruce E. Reppert. 

Article source: http://www.carmitimes.com/news/police_and_fire/x219212666/Conviction-in-Florida-timeshare-scam