Ashley Lacerda, 32, Egg Harbor Township, New Jersey; Francis Santore, 52, Northfield, New Jersey; and Brian Corley, 27, Egg Harbor, New Jersey, are being arraigned on charges of conspiracy to commit mail and wire fraud, mail and wire fraud, and conspiracy to commit money laundering in a $2.6 million time share mortgage fraud.
The defendants are scheduled to appear before U.S. District Judge Noel L. Hillman in Camden federal court to be arraigned. Four more defendants also charged in the indictment: Adam Lacerda, 28, Egg Harbor Township, New Jersey; Steven Cox, 48, Ventnor City, New Jersey; Alfred Giordano, Hurry County, South Carolina; and Joseph Diventi, 32, Somers Point, New Jersey, and they are scheduled to be arraigned before Judge Hillman on May 21 at 12:15 p.m.
The seven people listed above and nine others were arrested on April 17, 2012 on a complaint that charged them with conspiracy to commit mail and wire fraud. Additional substantive counts of mail fraud and wire fraud and conspiracy to commit money laundering were added when they were charged by an indictment returned by a federal grand jury May 3, 2012.
The nine other defendants””Ian Resnick, 37, Absecon, New Jeresy; Ryan E. Bird, 34, Clementon, New Jersey; Catherine Bannigan, 57, Egg Harbor Township; Vincent Giordano, 27, Margate, New Jersey; Joseph Saxon, 38, St. Thomas, Virgin Islands; Aimee Allen, Little River, South Carolina; Genevieve Manzoni, 46, Lake Worth, Florida; Eric Reilly, 33, Galloway, New Jersey; and Eric K. Reiff, 40, Williamsburg, Virginia””remain under the charge in the complaint.
According to documents filed in this case and statements made in court:
In July 2010, law enforcement officers began investigating The Vacation Ownership Group, (a/k/a VO Group LLC). The investigation revealed that from at least March 2009 and to September 1, 2011, the defendants, through the VO Group, participated in a fraudulent scheme in which representatives of the VO Group, often using false identities, telephoned owners of timeshare vacation properties purchased from Flagship Resort Development, Wyndham Vacation Resorts Inc., and other timeshare developers. They convinced the owners in some cases to submit money to the VO Group, purportedly to pay off the owners’ “mortgages” on their timeshares.
The VO Group claimed that the timeshare owner could pay off the mortgage balance at a substantially reduced amount””often by as much as 50 percent the amount of the owner’s original mortgage””by mailing payment to the VO Group at a post office box in Pleasantville, New Jersey. The VO Group representatives also got timeshare owners to send the VO Group money, purportedly to have timeshares cancelled or sold. After receipt of payments for the VO Group‘s “service,” the conspirators caused those payments to be deposited into a bank account in the name of the VO Group. Rather than paying off the timeshare owner’s mortgage, cancelling the owner’s timeshare, or selling the timeshare, the conspirators used the timeshare owner’s money for their personal use.
The investigation also revealed that in an attempt to cover up the scheme, the conspirators in most cases engaged in a “bait and switch” tactic by purchasing an additional timeshare in the victim’s name without the victim’s knowledge. The victim purportedly had assented to the purchase based on documents the VO Group previously emailed to the victim for signature even though the victim had been led to believe he or she was simply paying off the original timeshare mortgage.
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. Law enforcement has determined that the conspirators defrauded the victims of more than $2.6 million.
Since the arrests, the VO Group changed its name to VO Financial Corp.
U.S. Attorney Paul J. Fishman announced the indictment.
The investigation also revealed that Adam Lacerda, Ashley Lacerda, and Brian Corley sought and received unemployment compensation during the time they were working at the VO Group. The indictment charges them with mail fraud in connection with this related scheme.