the indictment against him here

Transcription

Case 1:14-mj-03418-PAW Document 1 Entered on FLSD Docket 11/24/2014 Page 1 of 22
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IN THE UNITED STATESDISTRICT COURT FOR HE
IIOV 17 2014
.
EASTERN DISTRICT OF VIRGIN IA
NewportNewsDivision
UNITED STATES OF AM ERICA
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CRIM INAL NO.4:l4cr
FILED UNDER SEAL
V.
KEITH D.KOSCO,
18U.S.C.j1349
(Countsl-24)
Conspiracy to Comm it
M ailand W ireFraud
JULIE L.DUFFIELD,
lcount1)
(Countsl-22)
18U.S.C.jj1341and2
Defendants.
M ailFraud
(Counts2-11)
18U.S.C.jj1343and2
W ire Fraud
(Counts12-19)
18U.S.C.jj1028A and2
Aggravated Identity Theft
tcounts20-24)
18U.S.C.jj981& 982and
21U.S.C.j853(p)
Forfeiture
IN D ICTM EN T
November2014 Tenn -AtNewpon News,Virginia
GENERAL ALLEGATIONS
1.
From in oraboutatleast2005,through in oraboutatleasttheend of2013,KEITH D.
KOSCO (hereinahert'KOSCO''),thedefendantherein.owned and/oroperateda numberofentities
involvedinthetravtl,tourism and tim esharebusiness,including:ResortRealty,1% .,Resort
Solutions,Inc.,ResortRenlal,K& K Property Consultants,Auction Am ericw G tA DTrips.com ,
*
ResortRentalsImem ational,RoyalEliteVacations,RoyalEquityTransfer.ExoticEquityTransfers,
LLC,(alsodoingbusinessasEliteEquityTrnnqfers),RoyalEliteExchanges,ResortRentalsMexico,
Resod Advantage Intem alional,TimeshareAuctionsUSA,ResortRentalsW orldwide,GPV
lntem ational,Grand Prem ierVacations,and Priority ExchangeNetwork.
2.
KOSCO operated manyoftheseentitiesoutofan om ce location in W illinmsburg,
Virginiw within theEastem DistrictofVirginia. Atvu oustimts,ovtrlap txisted in termsoftht
employees,operationsand servicesofferedby thesevariousentities. Additionally,9om inorabout
2003through in orabout2013,KOSCO wasthe signatory on overthirty bnnk accountsrelatedto
certainoftheabove-referenced entitiesand others,and ohentransferred fundsbetweenaccounts
associatedV tIithevariousentities.
3.
From inoraboutatleast2007,throughinoraboutatleast2013,JULIE L.DUFFIELD
(hereinaher ttDUFFIELDH), the defendant herein, owned and operated Professional Closing
Company, a business that,nmong other things, provided closing services for the transfers of
timeshareunits. DUFFIELD operated thisbusinessatvarioustim es&om Arizonaand M ontana.
4.
A Sttimeshareunit''(hereinaheralsoreferredtoasaeetimeshare''orçtunit''lisadeeded
ornon-dtedtd inteastinrtalestattdividtd into inttrvals,mostcom monly bytheweek.A timvshare
unittypicallycomesin theform ofa furnisbed resortaccommodation.The timesharetmitownerhas
the righttousetheunitduring aspecisc periodoftimeand theobligation to pay theIlnit'snnnual
maintenance fee.n eannualmaintenancefeesarerequired to olsetthecostofonsitemanagement.
unitupkeepandrtfurbishing,utilitits,and maintenanceofthtresort'scomm on areas. Dtptnding
on where the resortislocated,the annualmaintenance fee m ay also include applicable realestate
taxesortherealestatetaxesmay bebilled sepnm tely.Th'
enmountofthe yearly maintenancefees
depends on the size,location,and sm enitiesofthe resort. Obligationsto pay maintenance feesand
2
realestatetnxesareincidentsoftimeshare ownership,memorialized intimeshnreunitdeedsand/or
resortcommunity association covenants.
5.
Exotic Equity Tmnsfers, LLC,operating as Elite Equity Transfers (hereinaher
$%ET''),wasoneoftheentitiesownedand/oroperatedbyKOSCO. Sinceatleastinorabout2007,
EET wasinthebusinessoftransfei ngownership oftimeshareunitsthatwertwhollyowned(not
molgaged)by an owneror'çgrantor''to a new owneror'lgrantee.'' EET conducted timeshare
transfersin exchange forafeecharged to theoriginalowner.
6.
ResortSolutions,Inc.,(hereinaher$$RSI''),wasanotherentityownedand/oroperated
by KOSCO since approximately June 2005. RSIwasin the businessofproviding advehising and
marketing sew icesforindividtmlsseekingto sellorrenttheirtimeshnre unit.RSIofferedservicesin
exchangeforanadvancefeecharged to theowner.
7.
KOSCO offered servicesto developersoftime shareresortsinthebusinessofselling
new timeshareunits. KOSCO o/eredtoacceptalltrade-intimeshnreunitsidentifiedinconjunction
with thesaleofanew timeshareunitby aresortdeveloperto an individualowner. Ifan individual
customerwhoalreadyowneda tim eshareunitsoughtto purchasea new timeshareunitfrom aresol
devgloper,the customerwaspresented with optionsfortheirexisting timeshareunit. n ecustomer
couldtrade intheexistingtimeshareunitaspartofthepurchase,using the servicesofEET,which
would then transferthtunittoa new ownerortsgrantte.'' Altem atively,the customercould
advertisetheexisting unitforsaleorrentusing theservicesofRSI.
8.
KOSCO advertisedthebundled servicesofRSIand EET to variousresortcompanies.
Indoing so,KOSCO claimed to havecreated in EET oneofthe largestand mostsuccessfultrade-in
companiesintheworld and claimed successattransferringover28.000 propertiesasofAugust2012
andalmost50,000asofSeptem ber2013. Heclaimed thatresortshad asalesandclosing incremseof
3
15-18% using EET and thatEET'Ssuccesswasasalestoolto overcomeobjectionsifa potential
buyerofa new timeshare unilalready owned too many timeshare units,as EET could accomplish
transfersofsuch llnits,thus,removing thetimeshareobligationsoftheoriginalowners. In truth and
fact,however,EET didnotaccomplish thenumberoftm nsfersclaim ed by KOSCO.
9.
Thepairing ofthe servicesprovided through EET and RSIallowed KOSCO to oFer
resortcompaniesthe completesea ice oftrade-insoftimeshareunits,through eitherthe tmnsferof
thetmittoanew owner(which resultedintheoriginalownerOceivingno saleorrentproceeds)or
through theadveMising forsale and/orrentaloftheunit. n oughtheRSlbusinesswasthefarmore
profltable entity in terms of paym ents rcceived,the companion services provided by the EET
business were a necessary aspectofwhatKOSCO olered to provide to developers oftimeshare
resortsand supportedtheRSIbusinessmodel.
l0.
KOSCO and his employees represented and caused to be represented that the
timeshareunittmnsfersconducted by EET would be legitimate and resultinclean title passing to a
new ownerort%grantee,''withno furtherobligationsoftimeshareownership(includingmaintenanct
fees)on the originalowneraherthetransferhad been completed and recorded in therespective
locality.
In conducting the transferprocess,resortpersonnelwould ohen referownersto EET
employees,who would then take information from the owner and prepare transfer pape- ork,
includinga new deed forthetimeshareunit,transferring theunitfrom theoriginalownerto 1henew
'
owneror'egrantee.'' PriortoengaginFcompletinginatmnAfer,EET required alImaintenancefees
.
and taxes to be m ade current by the originalowner. Transfer paperwork wœs handled by EET in
coordination with DUFFIELD and ProfessionalClosing Com pany,which served as a third party
closingentityforlhetransaclionsfrom atleast2007,through in oraboutmid-2013. Forengagingin
4
such sew ices,DUFFIELD waspaid feesby EET. Inorabout2013,EET started using the services
ofalaw ;nn inW illinmsburg,Virginiw to handletheclosingson thetimeshareunitsittransferred.
Beginning inatleast2009,and exttndingthrough2013,abusinesspracticeofEET,as
directed andengaged inby thedefendants,theiremployeesandothers,wastousethennmesofstolen
identititsand straw ownersasthenew ownersorgranteesforthttransferred tim eshare units. n e
category ofstolen identitiesconsisted ofindividualswho did notconsentand were noteven aware
thattheirnnmeswere being used to receive timeshare units. Straw ownerswere individuals who
agreed to have timeshare units transfeced into their nnmes for a fee paid by EET,without full
knowledge ofthe consequencesofsuch pmctice,butwho were unable and unwilling to meetthe
obligationsoftimeshareownership,particularly making paymentsonm aintenance fees.
12.
n e straw owners did notpay for the timeshare units and though they were made
responsible formaintenance fees and taxes forthe units acquired,the straw owners exercised no
rights ofcontrolorownership overthe units placed in theirnnmes. On the rare occasion thata
timeshareunitplaced in the nnmeofastolen identity orstraw ownerwassold orrented,itwasEET
thatconductedthetrnnqnctionand beneqtted from any proceedsofasaleorrental.
KOSCO and DUFFIELD,theiremployeesand others accomplished the transfersof
timeshareunhsinto thtnlmesofstolenidentitiesand straw ownersbyhaving afraudultntdetdand
contractproduced to document the sale,sending those documents by m ail to be signed by the
previousownerandthenm ailed totheresol company.n edeed identified thepreviousou erasthe
ugrantor''and the new owneras the etgrantee''forthetimeshare unit. Deedsalso stated (either
expresslyorbyreferencetocovenantsorotherdocuments)thatgranteesagreed,asaconditionofthe
tm nKfer,to the incidents of tim eshare unit ou ership. including the paym ents of current and
subsequentmaintenancefees(sometimesincludingorrefeM ngtorealestatetlxes).
14.
Upon completion,the deed was also mailed to the resort'scity orcounty forsling.
Originalownerswerenotmadeawarethattheirtimeshareunitswerebeingtransferred inthismnnner
to stolen identities or seaw owners,who had neither the ability nor intention to make required
maintenancefeepam ents.
15.
KOSCO and DUFFIELD and theiremployeesobtained and maintained identiscation
paperwork forthestolen identitiesand straw ownersand would transmitto resortsasnecessary in
connection with the tmnsferprocess. KOSCO and hisemployeesengaged in various transactions
usingthenxmesofthestolen identitiesand straw owners,including using postom ceboxes,opening
bnnk accounts,establishing emailaccountsand having tax retumsprepared in the namesofa stolen
identity.
16.
Uponcompletionsofthe transfersinto thennmesofthe stolen identitiesand/orstraw
owners,regularmailingsformaintenance fee billswere sentto these new pum orted owners. EET
collected such mailings sentto stolen identities ata postom ce box in W illinmsburg,Virginia;
however,EET failed to pay maintenance feeson thesubstantialmajority timeshare unitsthathad
been tmnsferred to eitherthestolen identitiesorthestraw owners.
17.
For a number of years prior to 2010 and continuing to at least 2012, KOSCO,
DUFFIELD andtheiremployeesused thestolenidentityofSL asagrantee fortransfersoftimeshare
units. n e defendantsand theiremployees falsely represented to resortsand originalowners that
this was a legitimate transferto SL when,in truth and fact, SL was unaware that htmdreds of
timeshareunitswerebeing transferredto SLsname. UnderKOSCO'Sdirection,employeesofEET
would falsely notnrize SLssignature on transferpaperwork. K OSCO caused an em ailaddressto be
obtained forSL,om ned a bnnk accounton SLsbehalfand routed mailingsto a postom ce box in
W illinmsburg,towhichKOSCO had access.
6
18.
Dueto thenumberoftimeshareunitstmnRfelx d inlo SLsname and the factthatno
maintenancefeeswerepaidforthesttransfers,resortcompnniesraisedobjectionslosubsequentEET
eflbrtsto transfertmitsto SL. In certain instancts,thedefendantsand theirtmploytescontrived to
contactthe resortcompnnies,falsely claiming to be SL,in orderto accomplish the timeshare unit
transfer. At various times,however,in 2012 and 2013,resol com panies began declining th:
defendants'attemptstotransfertimeshareunitsinto SLsnameduetothenonpaymentofmaintenance
feesand otherproblems. Resortcompanieswould oftenthen imposetheowed maintenance feeson
theoriginaltimeshareunitowner.
19.
Inorabout2012,whenproblemsbegan toariseusingSLsidentity,thedefendantsand
their employees recruited straw owners to be used for timeshare tmittransfers and continued to
represenlto originalowners and reso- thatthese were legitimate transfers. KOSCO caused the
creation ofpowersofattom ey documents forcertain straw owners,thatpum orted to give KOSCO
and EET theauthorityto conducttransactionsontheirbehalft n estraw owners,ohen withoutfull
knowledge asto how the transferswould affecttheircreditorthe obligationsthey were assuming,
agreed to actasthe pM tee fortimeshare unittransfersin exchange forpaymentsofapproximately
$35-$50 fortach kansfer. None ofthe straw owners had any intention or ability to uphold the
obligationsoftimeshare ownership includin: paying mmualtaxesand maintenance ftts,which the
transferringdocumentation specifically required thenew ownerto assume.
20.
Aswith the useofSL,theuseofthesestraw ownea resulted in unpaid maintenance
ftes, objtctions and declinations from ct- in resort companits. The defendants and their
em ployeesw ould then attem ptto shih thetransferinto the nnm eofanotherstraw ow nerand try to use
altem ating straw owners to avoid notiûcation ofthe resortcom panies. Additionally,in orabout
2012,EET advisedDUFFIELD thatdueto problemswithtmnKfers,DUFFIELD should no longeruse
7
EET incorrespondencewithresortcompanies,butrathershould use ProfessionalClosing Company.
2l.
In orabom Septem ber2013,following notiscation thata certain resortwould not
acceptany moretransfersto two straw owners,KOSCO beganto fraudulently usetheidentityofhis
daughter,KLK,asap antee. KLK wasatthatpointincarcerated in Rockingham County,Virginiw
and wasunawareand did notconsenttotransfersmadeinto hername.
22.
On oraboutOctober30,2013,KOSCO obtained adrah powerofattom ey forKLK
fbraparticularpieceofpropertythenjointlyownedbyKOSCO andKLK. KOSCO thenalteredthis
powerofattom ey to bea gentralpowerofattorney and attached asignaturepage from KLK from
July 2013 thatwasrelatedtothespeciscpieceofproperty owned by KOSCO and KI-K. KOSCO
thencausedtheforgedsignatureofKLK to bemadeonvariousdeedsand trnnqferpape- ork related
to timeshareunittmnAfers.
23.
From in orabout2009,through in orabout2013,thedefendantsand otherscausedthe
transferofoveronethousand tim eshare unitsinto the nnmesofstolen identitiesand straw owners,
including over 450 into the nnme of SL. These fraudulenttransfers resulted in approximately
$822,914.53in lossesto variousresortcompaniesand related comm unity entitiesassociated with the
stolen identitiesand straw owners used by the defendantsand theiremployees. During this snme
time period, EET collected fees related to the fraudulent transfers in the nmount of at least
approximately$683,959.50.
8
CO UNT O NE
THE GRAND JURY CHARGES THAT:
1.
n efactllnlallegationscontained inthe GeneralAllegationssection are incom orated
hereinby referenceasifsetom in full.
2.
Beginning in orae ut2009,and continuing untilin oraboutthe end of 2013,the
exactdatesbeing unknown to the Grand Jury,in the Eastem DistrictofVirginia and elsewhere.
KEITH D.KOSCO and JULIE L.DUFFIELD,thedefendantsherein,along with othersknownand
unknown to the Grand Jury,did knowingly and willfully combine,conspire,and agree with each
otherand othersknewn and unknown to the Grand Juc ,to committhe following offensesagainsl
theUnited States:
a.
To knowingly devise and intend to deviseaschemeand artiice to defraudandfor
obtaining money and property by means of materially false and H udulent pretenses,
representations,and promises,forwhich thtdefendantsand co-conspiratorsknowingly caused tobe
placed in a postom ce,in an authorized depository formailmatterto be sentand delivered by the
PostalService,or caused to be deposited a matterorthing to be sentordelivered by private or
comm ercialinterstatecarrieratcording to the directionsthereon cedain mattersand things,for the
pum ose ofexecuting the scheme and artifice to defraud,in violation ofTitle 18,United States
Code,Section 1341;and
b.
To knowinglydeviseand intend todeviseaschemeandartisceto defraud and
for obtaining money and property by means of materially false and fraudulent pretenses,
representations,and promises,forwhich thedefendantsand co-conspiratorstransmitted and caused
to betmnsmitted by means ofwirecommunicationsin interstatecommerce cedain writings,signs,
9
signalsand sounds,forthepum ose ofexecuting the scheme and artisce to defraud,in violation of
Title 18,United StatesCode,Section 1343.
W AYS.M ANNER AND M EANS OF THE CONSPIRACY
n eways,manntrandmeansbywhichtheforegoingobjectivesoftheconspiracyto
commitm ailand wirefraud wereto be accomplished included,butwerenotlimited to,the
following:
n epo osesandobjectsoftheconspiracytocommitmailandwirefraudandthe
scheme and artiûct induded,butwtrtnotlimhtd to,theuse offalsepretensts,representations,
promisesand materialomissionsin orderto obtain money and property,including customerfees
and timeshnre units,by engaging in a scheme targeting timeshare unit owners and resorts
throughoutthe United States in order to obtain and then transfer such units into the names of
stoltn identities and straw buyers,thtrtby collecting fees from the originalownersoftht units
andoblaining controlovertherespectiveunits.
4.
Itwasapartoftheconspiracy and theschemeand artilicethattheconspimtors
worktd through various business enthies,including,but notlim ited to EET and Professional
Closing Companyand directed employeesofsuch entitiesin thecourseofthe fraudulenttransfer
schem e.
lt was further a part of the conspiracy and tht scheme and artifke that the
conspirators and employeesacting attheirdirection m isled originalownersthattheirtim eshare
llnittmnAfers would be accomplished legitimately to willing grantees and otherwise concealed
from the originalowners thattheirtimeshare unitswerebeing transferred to astolen identity or
stm w ow ner.
10
6.
It was further a part of the conspiracy and the scheme and artifke that the
conspirators and employees acting at their direction H udulently used and maintained the
identificationdocllmentationofotherindividuals(includingtheaforementioned stolenidentities)
withouttheir knowledge,consentand lawfulauthority in the course ofthe fraudulenttmnsfer
scheme.
Itwasfurtherapartoftheconspiracy andthe schemeand artiicethatconspimtors
recruited smaw ownersto pm icipateasw anteesforaccepting timeshare unitson thepromiseof
paymentto the straw owners,withthe knowledge thatthestraw ownershad neithertheability or
intentionofmakingrequiredmaintenancefeepaymentsand did notfully inform thestraw owners
oftheconsequencesofallowing timeshare unitsto % putin theirnnmes. AtalItimes,however,
controlofthetmnnferredtimeshareunitsremained with EET,contrary totherepresentationsmade
on thetmnsferpaptrwork.
8.
It was further a part of the conspiracy and the scheme and artifice that the
conspiratorscaused false representationsand promisesto be madeto resortcompnnlesregarding
theintentionofthegrantees,whichwerecomprisedofstolen identitiesandstraw owners,tosatisfy
theobligationsoftimeshare ownership,including thepaymentsofmaintenance feesand mxes.
9.
It was further a part of the conspimcy and the scheme and artifice that the
conspiratorsand employeesacting attheirdirection prepared transferpaperwork thatpurpoded
to transfertimeshareunitsfrom anoriginalownerinto thennm esofstolen identitiesand/orstraw
ownersthatwereunableand unwillingto satisfytheobligationsofsuch ownership.
10.
It w as funher a part of the conspiracy and the schem e and m iflce that the
conspimtors and employeesacting attheirdirection acted to furtherlul1resortcompanies and
originalownersregarding the status and legitimacy oftransfers oftimeshare units in orderto
avoid scrutiny and/ordeclination ofthetransfers.
!1.
It was fudher a part of the conspiracy and the scheme and artiflce that the
conspirators took and othelw ise caused various actionsto make the stolen identities and s% w
ownersappeartobe legitimate grantees,including,butnotlimited to,forging granteesignatures,
sending money orders in paymentratherthan personalchecks,obtaining em ailaccounts,bnnk
accounts,post om ce boxes and other indicia of occupancy and employment for the stolen
identitiesand s% w owners,
12.
It was further a part of the conspimcy and the scheme and artiqce that the
conspiratorsimpersonated anddirected othersto impersonatestolen identitiesused asgrnnteesin
communicationswith resortcompanies.
13.
Itwas a partofthe conspiracy and the scheme and artifke thatthe conspirators
worked to use an alternate stolen identity or straw owners if resortcompanies noted celain
problemsrelatedto the timesharetransfers,such as Iack ofproperidentiscation documentsora
historyofunpaidmaintenancefees.
14.
Itwaspartofthe conspimcy thatthe defendantsand conspim torscommunicated
with one another and others through telephones and electronic mail, which resulted in the
transmission of information electronically between computers and computer servers in the
Eastem District of Virginia and computers and computer servers located ouzide tht
Commonwealth ofVirginia.
15.
Itw asa partofthe conspimcy and the schem e and artifice thatthe defendantsand
conspiratom caused correspondence related to the timeshare tm nsfer process to be sentto and
12
Y
from resortcompnnies,localitiesand originalownersthrough the use ofthe United States mails
and otherprivateinterstatecomm ercialcarriers.
16.
It was further a partof the conspimcy and the scheme and artifice that the
defendants and conspirators caused resort compe es and am liated entities to experience
substnntiallosses in connection with unpaid maintenance fees and tnxes and caused original
ownersto incuradditionalmaintenancefeesand otherexpenses.
(InviolationofTitlel8,UnitedStatesCode,Sections1349,1341and 1343.)
13
COUNTS TW O THROUGH ELEVEN
THE GRAND JURY FURTHER CHARGESTHAT:
1.
n e factualallegationscontained in the GeneralAllegationssection and in Count
One,pnrngmphs3 -16,areincolw ratedherein byrefem nceasifsetoutin 1 11.
2.
On oraboutthedatessetforth below,within the Easlem DistrictofVirginia and
elsewhere,KEITH D.KOSCO and JULIE L.DUFFIELD, the defendants herein,aided and
abetted by each otherand othersand along withothersknownand untnown totheGrandJury.
having devised and intended to devise a scheme and artisceto defraud and forobtaining money
and property bymeansofmaterially false,fraudulentand sctitiouspretenses,representations,and
promises,and,forthe pum oseofexecuting the aforesaid scheme and artifceto defraud and for
obtaining m oney and property by means of materially false and H udultnt pretenses,
representations,and prom isesthe defendants and others,did knowingly cause to be placed in a
postom ce,in an authorized depository for mailmatterto be sentand delivered by the Postal
Serviceorcausedtobedeposited amatterorthing tobesentordelivered byprivateorcommercial
interstatecaM eraccording to thedirectionsthereonthe following mattersand things:
14
4
12/2/2011
5
g/jq/x jz
6
4/l1/2:12
7
2/!g/20l3
8
10/25/2013
9
10/25/2013
Letterfrom EET to TM regnM ing EETl
TM
transferofSandsBeach Club
W illlam sburg, M ontgomtry,
timeshareunit,t-nsfeaed to SL. Virginia
Alabama
Letterfrom EET to SW regarding
transfercfKingston Cove
timeshareunit,transferred to SL.
Letterfrom EET to CS/PS
regarding transferoftimeshare
units,tmnsferred to SL.
EET2
W illlamsburg,
Virginia
EET!
W illlam sburg,
Virginia
Letterfrom EET to BB regarding EET2
paymentneeded by EET for
W illlamsburg,
timeshareunittransfer,
Virginia
transferredto SB.
Letterfrom law 5% regarding
Law Ii= ,
transferofW yndham W estwinds W illiamsburg,
Condominium timeshareunitto
Virginia
KLK.
Variousdeedssentby
Professional
DUFFIELD to EET containing
Closing Co.,
transfersto SB,FS.
Eureka,
SW
Duluth, Georgia
CS/PS
st. Charles,
M issouri
BB
clyde, Ohio
W yndham
Reso- ,
Orlando,
Florida
EET,
W illiam sburg,
Virginia
M ontana
1:
1l
11/14/2:13
11/20/2013
Letterfrom law 5m 1regarding
recording ofEET tmnsferof
w m dham Grand Desert
tim eshareunit,tmnsferred to
KLK.
Letterfrom Iaw firm toRopa
Associatesregardingtransferof
timesha unittoGT.
Law srm,
Clark County
W illiamsburg, Gou .Center,
Virginia
Lasvegas,
Nevada
Law flrm,
Ropa
w illiamsburg, Associates,
virginia
Lake Hannony,
PA
(InviolationofTitle 18,UnitedStatesCode,Sections134land2.)
l
COUNTS TW ELVE THROUGH N m ETEEN
THE GRAND JURY FURTHER CHARGES THAT:
The factualallegationscontained in theGeneralAllegationssection and in Cotmt
One,Parapaphs3 -16,are incomorattd herein byreferenceasifsetoutin 1 11.
2.
On or aboutthe dates and in connection with the transactions described below,
KEITH D.KOSCO and JULIE L.DUFFIELD,the defendan? herein aided and abetted by each
otherandothersand alongwith othersknown andunknowntothe GrandJury,havingdevised and
intended to devise a scheme and artifke to defraud and forobtaining money and propely by
meansofmaterially false,fraudulentand sctitiouspretenses,representations and prom ises,and,
forthepumoseofexecuting the aforesaid schemeand M ifketo defraudand forobtainingmoney
and property by means of materially false and fraudulent pretenses, representations and
prom ises,in theEastem DistrictofVirginia and elsewhere,did knowingly and willfully tmnsmit
and cause to V transmitted by means ofwiK communication in interstate commerce,the
following certain signs,signals,and sounds:to wit,the following e-m ailcommunicationssent
from,through orto locationswithin theEastem DistrictofVirginiw to,through orfrom locations
outsidetheCommonwealthofVirginia.
16
14
5/4/2012
Emailfrom DUFFIELD to EET conll= ingtransferoftimeshare
propeny from RR to SL.
EmailFom DUFFIELD to EET regardingtransferoftimeshareunitat
Kingston Cove to SL.
Emailfrom DUFFIELD to EET regarding problem with SL andother
sourcesto usefortimtsharetransfers.
Emailfrom DUFFIELD to EET regarding declination oftmnsferof
timesha unitto SL and plnnned tmnAferto FS,
Emailfrom DUFFIELD to EET regardingtransferofSandsBeach
Club M yrtle Beachtimeshareunitto SL and consrming thatSL willbe
billed forfœ sfor2013.
Eleclonicallyrecordeddeed fortrnnAferofW estgatetimeshare unit
15
9/20/2012
16
10/17/2012
17
11/5/2012
lg
2/20/2013
19
11/20/2013 prorhytoGTresultinginelectronictmnsmissionofinformationfrom
W illlam sburg,Virginiato OrangeCounty,Florida.
(InviolationofTitle12,United StatesCode,Sections1343and2.)
17
COUNTSTW ENTY THROUGH TW ENTY-FOUR
THE GRAN D JU RY FURTH ER CHA RGES THA T:
n efactualallegationscontained inthe GeneralAllegationssection and in Count
One,Pnmgraphs3-16,areincop orated herein by referenceasifsetoutin 111.
2.
Onoraboutthe datesand in themmm ersetfodh below,in the Eastem Districtof
Virginia and elsewhere,KEITH D.KOSCO and JULIE L.DUFFIELD,the defendants herein,
aided and abetted by each otherand others and along with others known and unknown to the
GrandJuc,did unlawfully,knowingly and intentionallytransfer,possessand use,withoutlawful
authority,a means of identiscation of another during and in relation to felony violations of
provisions contained in chapter63 ofTitle l8 ofthe United StatesCode,to wit:Conspiracy to
CommitM ailand W ire Fraud,in violation ofTitle 18,United States Code,Section 1349,M ail
Fmud,in violation ofTitle l8,United StatesCode,Section 1343 and W ire Fraud,in violation of
Title 12,United StatesCode,Section 1349,asfollows:
.
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paqo.go oçux ofM lnnmof
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20
7/21/201l
21
4/23/2013
22
6/25/2013
Fel
!n
V
oo
ln
gvo
. .
KOSCO,
Emailfrom DUFFIELD toKOSCO 18U.S.C.99
DUFFIELD
containing SL passportand
identifying inform ation.
1349,1343
KOSCO,
Defendantspossessedand
18U.S.C.9
DUFFIELD
transferred name,addressand
1349
driver'sIicenseinformationofFS in
connection withtransferof
timeshareunitto FS.
KOSCO,
DUFFIELD
transferred name,addressand
1349
driver's license inform ation and
SocialSecurity NumberofSB in
connectionwith efforttotransferof
timesharellnitto SB.
Defendantspossessedand
18
18U.S.C.j
KOSCO causedKLKSname,
18U.S.C.jj
23
10/25/2013
KOSCO
addressand emailaddressto be
1349,1341
used asagranteein connectionwith
transferoftimeshareunit.
24
11/20/2013
KOSCO
addressto beused in connection
withtimeshareunit.
KOSCO causedGT'snameand
18U.S.C.sj
1349,1341
(InviolationofTitle18.UnitedStatesCode,Sections1028A(a)(1)and(c)and2.)
19
FORFEITURE ALLEGATION
THE GRAND JURY FURTHER ALLEGES THAT:
A.n edefendants,ifconvictedofany oftheviolationsalleged in Counts1through 19ofthis
Indictment shallforfeittotheUnited Statesaspartofthesentencing pursuantto Fed.R.
Crim .P.32.2:
1. Any pm perty,realorpersonal,which constitutesorisderived from proceeds
% ceablelotheviolationts).
B. Ifanyproptrtythatissubjecttoforfeitureabove,asaresultofanyactoromissionofthe
defendant,(a)cnnnotbelocatedupontheexerciseofduediligence,(b)hasbeen
tmnKferredto,soldto,ordepositedwithathirdparty,(c)hasbeenplacedbeyondthe
jurisdictionoftheCourq(d)hasbecnsubstantiallydiminishedinvalue,or(e)hasbeen
commingledwith otherpropelythatcnnnotbedivided withoutdiffk ulty,itisthe
intention ofthe United Statesto seek forfeitureofany otherpropertyofthedefendant,as
subjecttoforfeitureunderTitle21,UnhedStatesCode,Section8531).
C.n epropertysubjecttoforlkitureincludes,butisnotlimitedto,thefollowing:
1. A monetaryjudgmentinthenmountofatleast$683,959.50,whichrepresentsthe
procetdsoftheoffenses.
2. A 2002 Harley Davidson FXDW G M otorcycle with Vm num ber
111D1GEV132Y323864 and registered to Keith Kosco.
3. A 2008LexusG5350 with Vm numberJ7-14CE965580013736and registered to
Keith Kosco.
4. RealPropeo and im provementslocatedat335 M cLawsCircle,W illinmsburg,
Virginiatitled inthennmeofCannm Marketing,LLC (KehhKosco).
5. Chesapeake Bnnk accountnum ber 13581640 in the nnm e ofExotic Equity
TransfersLLC (KeithKosco).
20
*
6. ChesapeakeBsnkaccountnumber13566994 inthenameofResod Realty Escrow
(KeithKosco).
ChesapeakeBank accountnumber13594602 in thename ofExoticEquity
TransfersLLC (Keith Kosco).
8. ChesapeakeBnnk accountnumber13585948 in the name ofGrand Prem ier
VacationsLLC (KeithKosco).
9. ChesapeakeBnnk accountnumber13594599 in the name ofPriority Exchange
NetworkLLC (KeithKosco).
10.ChesapeakeBnnk accountnumber13594610 in the name ofPriority Exchange
NetworkLLC (Keith Kosco).
11.Chesa> akeBank accountnumber13562778 in the name ofResortRentals
IntemationalLLC (KeithKosco).
12.Chesar akeBankaccountnumber13590623inthenameofGmndPremier
VacatlonsLLC (KeithKosco).
13.ChesaN akeBankaccountnumber13590836 inthenameofResortAdvantageInt.
LLC (Keith Kosco).
14.ChesaN akeBnnkaccountnumber13588831inthenameofResortAdvantageInt.
LLC (KeithKosco).
l5.SunTrustBânk accountnumber0000700008934 in thenameofResortSolutions
Inc.(KeithKosco).
16.SunTrustBnnk accountnumber1000009210849 in thenameofKeith D.Kosco.
17.SunTrustBlnk accountnumber701073675 in thennm eofKeithD.Kosco.
18.SunTrustBnnkaccountnum ber700009361in thenameofCanam M arketingLLC
(KeithKosco).
19.Bnnk ofAmerica accountnumber435026688518 inthenameofGPV Int'lLLC
(KeithKosco).
20.JP M organ Chaseaccountnumber834094815 in thenam eofJulie Dum eld.
(InaccordancewithTitle 18,UnitedStatesCode,Section981(a)(1)(C)byTitle28,UnitedStates
Code,Section2461(c)).
*.
IJNITEDSTATESv.KEITHD.KUSCOandJULIEL.DUFFIELD,4:14crii
A TRUE Bm L:
f
F O R E PE R SO N
.
DANA J.BOENTE
X TED STATES AH ORNEY
By: % =
W
BrianJ.Samuels
AssistantUnhed StatesAttom ey
VirginiaStateBarNo.65898
Foun#m'n PlazaThree,Suite300
721LakehontCommons
NewportNews,Virginia23606
.
T:l.(757)5914000
Fax:(751 591-0866
22

the indictment against him here

Transcription

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