Phony Rental Scheme Could Imprison 3 South Jersey Residents For Decades: Feds

CAMDEN, NJ — Three South Jersey residents face decades in prison after admitting to their roles in a conspiracy that targeted timeshare owners, officials said. Seven people have been charged in relation to the scheme that offered phony rental services in exchange for upfront fees, according to federal authorities.

Alex Klemash, of Williamstown; Michael Lambe, of Mullica Hill; and La’Tresa Jackson, of Lindenwold, pleaded guilty last month to conspiracy to commit wire fraud. The charges arise from a scheme in the South Jersey residents, three people in Florida and a California resident offered fraudulent services to timeshare owners, according to the U.S. Department of Justice.

The conspiracy ran from October 2016 through October 2020, operating through businesses Williams Andrews Burns LLC, Resort BnB Inc., and Williams & Burns Inc. — collectively referred to as "WAB" — authorities said.

Their actions included offering to rent or buy the owners' timeshares under fraudulent pretenses and offering to recover money that the owners previously paid in connection with other scams, the DOJ said. The conspirators obtained lists of timeshare owners with their contact information and cold-called them to pitch their various services in return for upfront fees, according to authorities.

The individuals lied to owners that WAB would rent for them in return for an upfront fee, falsely guaranteeing thousands of dollars in rental income for the timeshare owners, officials said. Once the owners paid their fees to the phony businesses, the conspirators generally pitched collections/recovery services by offering to obtain refunds on money previously paid, in return for fees, according to the DOJ.

The conspirators made false statements to both timeshare owners and credit-card companies, authorities said. WAB maintained its primary offices in New Jersey while also operating at various times in New York, California, Florida and Arizona, according to court documents.

Four other people were charged March 29 in a 13-count indictment in relation to the scheme, according to the DOJ:

• William O'Hanlon and his wife, Karen Stefanowski — both of Miami, Florida.
• James Toner, 41, of Lake Mary, Florida.
• William Chiusano Jr., 48, of Laguna Niguel, California.

The South Jersey trio worked for the company in sales, court documents state. Lambe was also a supervisor.

If convicted, each count of conspiracy to commit wire fraud and wire fraud are punishable by a maximum of 30 years in prison. The penalties include an enhancement of 10 years for victimizing at least 10 people older than 55, authorities said.

Lelmash, Lambe and Jackson pleaded guilty in Camden federal court on March 8, 9 and 13, respectively.