I4-8OZ?W V -.RYSKAMP/HOPKINS

Transcription

1 *. Case 9:14-cr KAM Document 17 Entered on FLSD Docket 12/17/2014 Page 'F I L b D 1 u*9 of 10 ().C I - i-'t' f7t.-$ kr >A,.) r Dec 17, 2014 UNITED STATES DISTRICT CO URT SOUTHERN DISTRICT OF FLORIDA I4-8OZ?W V -.RYSKAMP/HOPKINS 18 U.S.C.j 1349 i x 'ï' f:1ṅ R. t.>pl 9$7,3$9 6( :-. L.E ##.x u vs?lt4 s T. f: r- s. o. tidr ëf -1 UNITED STATES OF AMERICA, VS. DANIEL w. TERR Y, BRIANA BUCKHALTER, and AMBER AYLWARD, Defendane. I INDICTM ENT The G rand Jury charges that: GENERAL ALLEGATIONS At a1l tim es relevant to this lndictm ent: International Resod Solutions LLC (hereinafter 'IRS') was a Florida limited Iiability com pany whose Adicles of Organization were filed with the State of Florida on July 28, RS was purpodedly in the business of providing tim eshare m arketing and sales services to timeshare owners Iocated in the United States ahd Canada. The main office of IRS was initialy Iocated in Lake Wodh, Florida, and then moved to West Palm Beach, Florida, IRS solicited clients through at Ieast five separate telem arketing rooms (hereinaqer referred to as 'boiler rooms'), each of which was located in Palm Beach County. M ichael W. Franzenburg was Iisted as the Vice-o perating M anager of lrs and was the sole signatory on the IRS bank accounts.

2 Case 9:14-cr KAM Document 17 Entered on FLSD Docket 12/17/2014 Page 2 of DANIEL W. TERRY was an experienced telemarketer, having previously worked for other fraudulent timeshare telemarketing companies, including Universal Marketing Solutions and Creative Vacation Solutions. In approximately August 2009, TERRY was hired by Franzenburg to be the manager of the IRS main office. While at the IRS main office, TERRY'S job included managing the other IRS boiler room managers, distributing lead sheets to telem arketers who w orked at the m ain office, and handling com plaint ca ls from upset timeshare owners who demanded refunds. Beginning in approximately January 2010, TERRY operated his own lrs boiler room. 3. AMBER AYLW ARD was hired in approximatety September 2009 as a telemarketer at an IRS boiler room owned by Jeffrey Fields and Joseph Grizzanti, and m anaged by Kenneth Foote. Based upon IRS biling data obtained through a former em ployee, AYLW ARD padicipated as an t'opener' and/or 'tcloser' in her role as telemarketer, generating sales of approximately $382, during approximately 09/30/2009 through 02/17/2010 from approximately 13O timeshare owners. 4. BRIANA BUCKHALTER was hired in approxim ately Septem ber 2009 as a telemarketer at an lrs boiler room owned by Jeffrey Fields and Joseph Grizzanti, and m anaged by Kenneth Foote. Based upon IRS biling data obtained through a former em ployee, BUCKHALTER participated as an 'opener' and/or 'closer' in her role as telemarketer, generating sales ofapproximately $206, during approximately 09/30/2009 through 02/17/2010 from approximately 80 timeshare owners.

3 Case 9:14-cr KAM Document 17 Entered on FLSD Docket 12/17/2014 Page 3 of 10 COUNT 1 (Conspiracy to Com mit Mail Fraud: 18 USC j 1349) 5. Paragraphs 1 through 4 of the General A legations section are realeged and incorporated as though fu ly set fodh herein. 6. From in or about July 2009, and continuing through in or about February 2010, in Palm Beach County, in the Southern District of Florida, and elsewhere, the defendants, DANIEL W. TERRY, BRIA NA BUCKHALTER, and AMBER AYLW ARD did wilfuly, that is, with the intent to fudher the objects of the conspiracy, and knowingly com bine, conspire, confederate and agree w ith each other and with others known and unknown to the Grand Jury, to commit an offense against the United States, that is, to knowingly and with intent to defraud, devise, and intend to devise a scheme and adifice to defraud and to obtain money and propedy by means of materialy false and fraudulent pretenses, representations, and prom ises, know ing that they were false and fraudulent when m ade, and knowingly causing to be delivered cedain m ail m atter by private and com m ercial interstate ca rier, according to the directions thereon, for the purpose of executing the scheme, in violation of Title 18, United States Code, Section PURPOSE OF THE CONSPIRACY 7 It was the purpose of the conspiracy for the defendants and their co-conspirators to unlawfuly enrich themselves by attempting to colect more than $4.9 m ilion in advanced fees from tim eshare ow ners located thàoughout the United States and Canada, for purpoded timeshare marketing and sales services, which the defendants and their co-conspirators never provided.

4 Case 9:14-cr KAM Document 17 Entered on FLSD Docket 12/17/2014 Page 4 of 10 MANNER AND MEANS OF THE CONSPIRACY The m anner and m eans by w hich the defendants and their co-conspiralors sought to accom plish the object and purpose of the conspiracy included, among others, the folowin () : é1. Franzenburg established IRS and arranged to have various co-conspirators (hereinafter referred to as 'boiler room owners') set up boiler rooms in Palm Beach County where they could solicit custom ers who were wiling to pay advanced fees for purpoded timeshare marketing and sales services. The boiler room owners would typicaly have managers operate the boiler rooms for them. The managers were responsible for the day-to-day operations of the boiser rooms, including oversight of al sales and supervision of the telemarketers. Under the direction of the boiler room managers, the telemarketers would cal tim eshare owners throughout the United States and Canada to induce them to Pay up-front fees for purported timeshare marketing and sales services. The telem arketers would routinely make false and fraudulent representations to the tim eshare owners about IRS'S services, including falsely claiming that lrs had buyers for their timeshares, falsely representing that IRS had closings scheduled for their timeshares, and/or falsely stating that IRS would actively market their timeshares to potential buyers. 10. The telemarketers, including BUCKHALTER and AYLWARD, directed the timeshare owners to pay advanced fees typicaly ranging from $999 to $2,996, for purpoded closing and/or marketing costs. In most instances, the timeshare owners would pay the fees by credit card over the tebephone. These payments were typicaly

5 Case 9:14-cr KAM Document 17 Entered on FLSD Docket 12/17/2014 Page 5 of 10 processed the next day by a merchant account set up by IRS. After the credit card processing fees were paid, the rem ainder of the credit card paym ents were transferred to the IRS bank account. 1. Franzenburg would deduct 35% from the total profits for each boiler room as IRS'S fee, which were then used to pay expenses and salaries of the main IRS office, including the salal'y of TERRY. The remaining 65% was paid to the boiler room owners, who would pay the expenses and salaries for their respective boiler room s and retain the rem ainder for them selves. 12. To conceal the manner in which the IRS proceeds were being distributed, TERRY would have IRS checks issued to co-conspirators, who would cash the checks and then return the cash to TERRY. AYLWARD and BUCKHALTER also engaged in this check cashing scheme by cashing IRS checks made payable to them, then returning the cash to their boiler room owners Grizzanti and Fields. 13. In an attempt to conceal the fact that the telemarketers had made numerous false and fraudulent representations to the timeshare owners, IRS sent the timeshare owners, via Federal Express, sanitized sales and marketing contracts which did not include any of the fase and fraudulent statements. The timeshare owners were directed to sign and return these contracts to IRS. The written contracts were retained by lrs purpodedly as proof that lrs never made any fraudulent representations to the tim eshare OW ners. 14. For the nine-m onth period between July 2009 and February 2010, IRS telemarketers contacted more than 2,000 victim s throughout the United States and

6 Case 9:14-cr KAM Document 17 Entered on FLSD Docket 12/17/2014 Page 6 of 10 Canada, and succeeded in colecting more than $3.3 milion fortimeshare marketing and sales services, which werenever provided. A1! in violation of Title 18, United StatesCode, Section A TRUE BILL FO EPERSON W IFREDO A. FE RER UN TED STATES AU ORNEY ADRIENNE RABINO I Z ASSISTANT UNITED ATES ATTORNEY - 6-

7 UNITED STATES DISTRICT COURT Case 9:14-cr KAM Document SOUTHERN 17 Entered DISTRICT on OF FLSD FLORIDA Docket 12/17/2014 Page 7 of 10 UNITED STATES O F AM ERICA VS. DANIEL W. TERR K BRIANA BUCKHACTER, and AMBER AYLW ARD, Defendants. I CASE NO. CERTIFICATE OF TRIAL ATTORNEYA Superseding Case lnform ation: Court Division: (select one) Miami FTL Ke W est 'r- w)s l do hereby certify that: New Defendants) Yes No Num ber of New Defendants Total num ber of counts FTP of I have probable careful wilesses considered and the Iegafcomplexities ale ations of the indictment of the lndiétment/lnformation the number of defendants atached the number hereto. I am afare that thq information supplied on this statemeqt wil be relied upon by the Judges of this Cqurt ln setting thelr calendary and scheduling criminal trlals under the mandate of the Speedy Trlal Act, Title28 U.S.C. Sectlon Iqterpreter: (Yes or No) No LIst Ianguage and/or dialect This case will take 4 days for the parties to try. Please check appropriate category and type of o#ense Iisted below: (Chec: only one) (Check oniy one) O to 5 days X P:tty 6 to 10 days Mlnor 11 to 20 days Mlsdem 21 to 60 days Felony. 61 days and over 6. Has this case been previously filed in this District Coud? (Yes or No) No If yes: Judge: Case No (Atach copy 9 Isposltlve 9r eq. Has If a complalnt been filed ln thls mater? (Yes or No) - Yes Maglstrate yep: Case No WM Related Misc: laneous num bers: Defendantls) ln federal custody as of Defendants) In state custody as of Rule 20 from the ls nc o ls this a potential death penalty case? (Yes or No) Dges this case originate from a mater pending in the Nodhern Region of the U.S. Attorney's Office prlor to O ctober 14, 2003? Yes X No 8. D?es this case originate from a matter pending in the Central Region of the U.S. Attorney's Office prlor to Septem ber 1, 2007? Yes X No ADRIENNE OW ITZ ASSISTANT UNITED ST ES ATTORNEY Florida Bar No *penalty Sheets) atached REV 4/8/08

8 Case 9:14-cr KAM Document 17 Entered on FLSD Docket 12/17/2014 Page 8 of 10 UNITED STATES DISTRICT CO URT SOUTHERN DISTRICT OF FLORIDA PENA LTY SHEET Defendant's Name: DANIEL W. TERRY Case No: Count #: 1 Conspiracv to Com m it M ail Fraud 18 U.S.C * Max.penalty: 20 years' imprisonment, $250,000 fine or twice the gross gain or loss resulting from the offense, w hichever is greater, 3 years' supervised release and restitution. WR efers only to possible term of incarceration, does not include possible fines. restitution, special assessm ents, parole term s, or forfeitures that m ay be applicable.

9 Case 9:14-cr KAM Document 17 Entered on FLSD Docket 12/17/2014 Page 9 of 10 UNITED STATES DISTRICT CO URT SOUTHERN DISTRICT OF FLORIDA PENALTY SYEET Defendant's Nam e: BRIANA BUCKHALTER Case No: Count #: 1 Conspiracv to Com m it M ail Fraud 18 U.S.C * Max.penalty: 20 years' imprisonment, $250,000 fine or twice the gross gain or Ioss resulting from the offense, whichever is greater, 3 years' supervised release and restitution. *R efers only to possible term of incarceration, does not include possible fines, restitution, special assessments, parole terms, or forfeitures that may be applicable.

10 Case 9:14-cr KAM Document 17 Entered on FLSD Docket 12/17/2014 Page 10 of 10 UNITED STATES DISTRICT CO URT SO UTHERN DISTRICT OF FLORIDA PENALTY SHEET Defendant's Name: AMBER AYLW ARD Case No: Count #: 1 Conspiracv to Com m it Mail Fraud 18 U.S.C. :1349 * Max.penalty: 20 years' imprisonment, $250,000 fine or twice the gross gain or Ioss resulting from the offense, whichever is greater, 3 years' supervised release and restitution. WR efers only to possible term of incarceration, does not include possible fines, restitution, special assessm ents, parole term s, or forfeitures that m ay be applicable.