{"id":53098,"date":"2023-05-08T19:32:19","date_gmt":"2023-05-09T02:32:19","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=53098"},"modified":"2023-05-08T19:36:21","modified_gmt":"2023-05-09T02:36:21","slug":"ring-leader-of-a-multimillion-dollar-boiler-room-operation-that-targeted-owners-guilty-of-wire-fraud","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=53098","title":{"rendered":"Ring Leader of a Multimillion-Dollar Boiler Room Operation That Targeted Owners Guilty of Wire Fraud"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong><span style=\"font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/strong><strong><span style=\"font-family: helvetica;\">SANTA ANA, California<\/span><\/strong><\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-21344 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/03\/Lottery-scam-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/03\/Lottery-scam-300x200.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/03\/Lottery-scam-90x60.jpg 90w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/03\/Lottery-scam-180x120.jpg 180w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/03\/Lottery-scam-95x64.jpg 95w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/03\/Lottery-scam.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>A former Long Beach resident pleaded guilty Monday to a federal criminal charge for leading a telemarketing scheme in which boiler room tactics were used to scam dozens of timeshare owners out of more than $3.5 million by giving them false promises of financial relief, officials stated.<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Michael McDonagh, 42, currently residing in Lowell, Massachusetts, plead guilty to one count of wire fraud. The other four defendants charged along with McDonagh, also have pleaded guilty to one count of wire fraud,\u00a0<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 McDonagh, this criminal case\u2019s lead defendant, founded and\/or controlled several telemarketing companies \u2013 Irvine-based Global Transfer Inc., Costa Mesa-based Global Transfer SoCal Inc., Santa Ana-based Nationwide Transfer Inc., and Signal Hill-based Nationwide Exit Specialist Inc. \u2013 that purported to offer timeshare relief.<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\"> <img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3918 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice.png 350w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Once one telemarketing company became inundated with consumer complaints, McDonagh formed a new company to perpetuate the fraud.<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 According to court documents, from 2015 to May 2019, \u201copeners\u201d who worked for the McDonagh-controlled telemarketing companies contacted timeshare owners and offered to help them terminate their timeshare interest for a fixed fee. <\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\">If the timeshare owner expressed interest in the telemarketing companies\u2019 services, the call was transferred to a \u201ccloser\u201d who convinced victims to sign contracts with the telemarketing companies to get them out of their timeshare for a \u201cone-time fee.\u201d<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Within weeks of the victim paying the fee, the victims were contacted and told a series of lies to induce them to pay more. <\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-52300 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/7722244-300x300.jpg\" alt=\"anonymous, hacker, security compromise\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/7722244-300x300.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/7722244-1021x1024.jpg 1021w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/7722244-150x150.jpg 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/7722244-768x770.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/7722244.jpg 1276w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>For example, some victims were falsely told that they would obtain a large settlement payment for an additional fee based on purported litigation against the victim\u2019s timeshare company.<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 McDonagh and his co-schemers also made false promises of securing \u2013 for an additional fee \u2013 a large \u201crestitution\u201d payment from the victim\u2019s timeshare company because the company had purportedly rented out the victim\u2019s timeshare property without the victim\u2019s permission.<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 McDonagh admitted in his plea agreement that more than $3.5 million in actual losses were caused by him or his co-schemers employed at his telemarketing companies.<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 U.S. District Judge David O. Carter scheduled an Oct. 30 sentencing hearing. McDonagh faces up to 20 years in federal prison.<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The U.S. Secret Service and the Huntington Beach Police Department investigated this matter.<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: helvetica; font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorneys Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section and Ian V. Yanniello of the General Crimes Section are prosecuting this case.<\/span><\/p>\n<p class=\"yiv4376145382MsoNormal\" style=\"text-align: center;\">\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0SANTA ANA, California A former Long Beach resident pleaded guilty Monday to a federal criminal charge for leading a telemarketing scheme in which boiler room tactics were used to scam dozens of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":29042,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[1730,3711],"class_list":["post-53098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-department-of-justice","tag-scam","tag-timeshare"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ring Leader of a 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