In a startling revelation of deceit and manipulation, three residents of South Jersey have admitted to their involvement in a fraudulent scheme that preyed on timeshare owners. This conspiracy, which spanned over four years, has led to the potential incarceration of these individuals for several decades. The case, shedding light on the dark underbelly of fraudulent rental services, has become a cautionary tale for timeshare owners and a stark reminder of the pervasive nature of financial scams.
Details of the Scheme
The fraudulent scheme spearheaded by Alex Klemash, Michael Lambe, and La’Tresa Jackson, in collaboration with accomplices from Florida and California, was a masterclass in deception and manipulation. Operating from October 2016 to October 2020, this group executed a complex scam under the facade of legitimate businesses – Williams Andrews Burns LLC, Resort BnB Inc., and Williams & Burns Inc., collectively referred to as “WAB.”
➤ Strategies Employed in the Scam
The group’s modus operandi was multifaceted and cunningly designed to exploit the vulnerabilities of timeshare owners. They utilized several strategies to ensnare their victims:
● False Promises of Rentals and Purchases
WAB representatives, including the South Jersey trio, made convincing false promises to timeshare owners. They claimed they could rent out or even purchase their timeshares, providing a lucrative exit strategy for owners who might have been struggling to manage or offload their properties.
● Recovery Services Deception
Another facet of the scam involved offering services to recover money that the owners had supposedly lost in other timeshare-related scams. This tactic preyed on the desperation and frustration of owners who had previously been victims of fraud, making them particularly susceptible to further deception.
● Targeted Outreach and Cold Calling
The conspirators obtained extensive lists of timeshare owners, which included their contact information. Using these lists, they systematically cold-called potential victims, pitching their fraudulent services. This approach allowed them to cast a wide net and maximize their pool of potential victims.
● Upfront Fee Scheme
Central to the scam was the requirement for timeshare owners to pay upfront fees. These fees were presented as necessary for the services offered, whether for renting, buying, or recovering lost money. However, once these fees were paid, the promised services were never rendered.
● False Guarantees of Rental Income
To make their offers more attractive, the group falsely guaranteed significant rental income to the timeshare owners. These empty promises were designed to lure owners into paying hefty upfront fees in the hope of substantial future returns.
➤ The Role of Geographical Spread and Technology
The impact of this scheme was not confined to a single area but spanned across multiple states, including New Jersey, New York, California, Florida, and Arizona. This widespread operation allowed the group to target a diverse range of victims and evade localized detection by authorities.
A key element in the execution of this fraud was the use of modern communication and technology. The group relied heavily on phone and internet communication to reach out to potential victims, which enabled them to operate remotely and cover a larger geographic area. This use of technology not only facilitated the wide reach of their scam but also added a layer of anonymity to their operations.
The Larger Conspiracy
The conspiracy that ensnared the residents of South Jersey in fraudulent activities extends far beyond the state’s borders, encompassing a network that stretched across multiple states. The additional charges brought forth on March 29, 2023 against four other individuals reveal the expansive and intricate nature of this criminal enterprise. William O’Hanlon and Karen Stefanowski from Miami, Florida, James Toner of Lake Mary, Florida, and William Chiusano Jr. of Laguna Niguel, California, were implicated in a comprehensive 13-count indictment, signifying the multi-state reach and complexity of the operation.
➤ Roles and Responsibilities within the Scheme
Each individual in this larger group played a specific role, contributing to the overall effectiveness and deceit of the scheme. The involvement of O’Hanlon, Stefanowski, Toner, and Chiusano indicates a well-organized network, with each member fulfilling distinct responsibilities to perpetuate the fraud. This level of coordination highlights the premeditated and systematic approach employed by the conspirators to defraud timeshare owners.
The geographical spread of the conspirators, from Florida to California, underscores the widespread impact of their actions. This was not a localized scam confined to South Jersey; it was a far-reaching operation affecting numerous states. Such a wide operational base allowed them to target a larger pool of potential victims and evade easy detection by law enforcement.
➤ Lambe’s Role as a Supervisor
Within this network, Michael Lambe’s role as a supervisor in the South Jersey trio is particularly noteworthy. This position implies a higher level of involvement and possibly a greater degree of influence and control within the scheme. As a supervisor, Lambe may have had a hand in strategizing the fraudulent activities, directing the sales approach, and possibly recruiting or managing other members of the group.
The focus on the sales aspect of the scheme by the South Jersey trio and their accomplices reveals a cunning approach to victimization. By crafting persuasive sales pitches and employing aggressive marketing tactics, they were able to effectively lure in and exploit timeshare owners. The success of their scheme depended heavily on their ability to convincingly sell the illusion of legitimate services.
Consequences and Legal Proceedings
Alex Klemash, Michael Lambe, and La’Tresa Jackson are facing serious legal consequences for their roles in the South Jersey rental scheme. The judicial system charges them with conspiracy to commit wire fraud and wire fraud, demonstrating a firm stance against such deceptive practices. Each count could lead to a maximum penalty of 30 years in prison, showcasing the law’s severity in handling these offenses.
Additionally, their potential sentences may increase due to an enhancement clause applicable in this case. This clause, adding 10 years to the maximum sentence, activates when a scheme victimizes a vulnerable population. In this scam, the perpetrators targeted at least ten individuals over 55 years of age, highlighting its predatory nature. The law includes this aspect to provide extra protection for older individuals, who are often more susceptible to financial scams.
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Klemash, Lambe, and Jackson’s guilty pleas, entered on March 8, 9, and 13 of 2023 acknowledge their guilt and mark a pivotal moment in this complex legal saga. These pleas carry various implications. First, they might lead to reduced sentences compared to those possible if a trial had occurred and resulted in convictions. The pleas also indicate a level of cooperation with law enforcement authorities, which the court might consider during sentencing.
The case’s outcome extends beyond the individual sentences and plays a significant role in the broader fight against financial fraud. It sends a clear message to potential fraudsters about the severe consequences of engaging in such schemes. For the victims, the outcome offers a sense of justice and closure, although it cannot fully offset the financial and emotional hardships they have suffered.
Conclusion
This case serves as a stark reminder of the ongoing battle against financial fraud and the importance of vigilance in the face of too-good-to-be-true offers. As the legal process unfolds, it highlights the need for stringent measures to protect unsuspecting individuals from such predatory schemes. The South Jersey rental scam, while a significant bust in the realm of financial crimes, is a cautionary tale for all, emphasizing the importance of due diligence in financial dealings.
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