Federal Indictment Against Unburdening Operation – USA vs. Kosco and Duffield

On November 17, 2014, DANA J. BOENTE, UNITED STATES ATTORNEY filed within the Eastern District of Virginia Case 4:14-cr-00066-RGD-DEM an indictment against Keith D. Kosco (24 counts), and Julie L. Duffield, (22 counts) Conspiracy to commit mail and wire fraud, mail fraud, wire fraud, aggravated identity theft and forfeiture. For a detailed article on this action – see http://insidethegate.com/gatehouse/2014/12/virginia-usa-timeshare-news-december-6-2014/

Subsequently, Julie L. Duffield, 45, of Eureka, MT, pleaded guilty yesterday to conspiracy to commit mail and wire fraud. See http://www.justice.gov/usao/vae/news/2015/01/20150113duffield.html

TTR has updated its 24 records connected with this unburdening operation.The following is a summary of allegations made within the indictment:

Between 2007 and 2013, Julie L Duffield owned and operated Professional Closing Company that provided closing services for the transfers of timeshare units, operating in Arizona and Montana.

Kosco offered services to developers of timeshare resorts in the business of selling new timeshare units. Kosco’s trade-in business model would allow a timeshare owner wanting to sell their unit, to trade the existing unit as part of the purchase, using Elite Equity Transfers (EET), which would then transfer the unit to a new owner.  The customer could also advertise the existing unit for sale or rent using Resort Solutions, Inc.  (RSI).

Kosco boasts that the bundled services of RSI and EET created one of the largest and most successful trade-in companies in the world, claiming success in transferring over 50,000 as of September 2013.  However, federal prosecutors state that EET did not accomplish the number of transfers claimed by Kosco.  He and his employees represented that the transfer of the timeshare units would be legitimate and result in a clean title transfer with no further obligations of maintenance fees or taxes after the transfer was complete.  EET would take the information on the unit to prepare transfer paperwork; including a new deed and transferring it from the original owner to the new transferee, provided that all maintenance fees and taxes be made current by owner.

Transfer paperwork was handled by EET in coordination with Julie L. Duffield and Professional Closing Company, (PCC), which served as a third party closing entity between 2007 and 2013 and was paid fees by EET until the end of 2013, ETT started using a law firm in Williamsburg, VA to handle the closing in the timeshare units transferred. These straw owners were not made aware of the consequences of such practice and were unable and unwilling to meet the obligations of timeshare ownership, including making payments of maintenance fees.

Starting in early 2009 Kosco and Duffield and their employees and others used names of stolen identities and straw owners (those who agree to have timeshare units transferred into their names for a fee paid by EET,) as the new owners for the transferred timeshare units.

In or about September 2013, following notification that a certain resort would not accept any more transfers to two straw owners, KOSCO began to fraudulently use the identity of his daughter, Kristianne L. Kosco, as a grantee. KLK was at that point incarcerated in Rockingham County, Virginia, and was unaware and did not consent to transfers made into her name.

One case of stolen identity, listed only as SL in the indictment, hundreds of timeshare units were transferred into this person’s name beginning in 2010. TTR believes this individual is Steven T. Levy. Kosco. Employees would falsely represent to resorts and original owners that the transfers were legitimate when, in truth and fact, Levy was unaware that hundreds of timeshare units were transferred into his name.  Under Kosco’s direction, employees of EET would falsely notarize Levy’s signature on transfer paperwork.  Kosco even created an email address for Levy, opened up a bank account and routed mailings to a PO Box in Williamsburg, VA, to which Kosco had access.  By 2012 and into 2013 resorts began declining Kosco’s attempts to transfer timeshare units into Levy’s name due to nonpayment of maintenance fees.

Professional Closing Company is an Arizona registered name filed September 7, 2010. The agent/owner is listed as Julie L. Duffield. This company’s address is 16485 N. Stadium Way, #3021, Surprise, AZ  85374, 602-291-9042.  Another company name found registered to Ms. Duffield is TITLE TRANSFER RELIEF, an active entity since August 3, 2011. Address is listed as PO BOX 2350, EUREKA, MT 59917-2350.

Between 2005 and 2013 Keith D. Kosco owned and/or operated a number of entities involved in the timeshare industry: Resort Realty, Inc., Resort Solutions, Inc. – this company was in the business of providing advertising and marketing services for individuals seeking to sell or rent their timeshare units in exchange for an advance fee charged to the owner.  Company’s status is listed as active in corporate records. Resort Rental LLC – Company began February 2005 and is currently listed as cancelled in corporate records. K & K Property Consultants – Company began in August 2005 and cancelled as of August 2011. Auction America, LLC – began in 2006 and cancelled August 2011.  GLADTrips.com – Company began May 2007 and was cancelled September 2012. Resort Rentals International – began May 2007 and now cancelled. Royal Elite Vacations – Company began March 2008.and now cancelled.  Royal Equity Transfer – Company began May 2009 and now cancelled in corporate records. Exotic Equity Transfers LLC, (also doing business as Elite Equity Transfers) began in 2007 company conducted timeshare transfers in exchange for a fee charged to the original owner. Company is listed as ACTIVE. Royal Elite Exchanges – Company began May 2009 and is now cancelled.  Resort Rentals Mexico  – Company began November 2011 and is currently listed as active.  Resort Advantage International –Company began April 2012 and is currently listed as active. Timeshare Auctions USA – began April 2012 and is now cancelled. Resort Rentals Worldwide – Company began April 2012 and is currently listed as active. GPV International, LLC – Company began in June 2012 and its status is currently active. Grand Premier Vacations – Company began January 2012 and is now cancelled. Priority Exchange Network – Company began in July 2013 and its status is active in corporate records.