HOUSTON – In a shocking turn of events, Ronald Frank Muise, 51, and his son Michael Derek Muise, 28, both of Las Vegas, Nev., have been convicted of conspiracy to commit wire and mail fraud in connection with a telemarketing fraud scheme that spanned almost five years and victimized approximately 1000 people.
The Muises and other alleged co-conspirators used various businesses known as The Jariv Companies to conduct a telemarketing timeshare resale scheme targeting timeshare owners throughout the United States and Canada. The Muises and others solicited timeshare owners by telephone to pay advance fees in exchange for The Jariv Companies promising they had willing buyers for the timeshare properties or points.
The Muises and their employees falsely represented that they had buyers for timeshare weeks or points and solicited fees, ranging from hundreds of dollars to several thousand dollars from each timeshare owner. They falsely represented that the fees were fully refundable at closing and were used to secure the owners’ place in an acquisition involving corporate buyers, as well as to pay for legal expenses such as title searches, estoppel letters and closing costs.
The defendants made several false representations to give the appearance of legitimacy. They claimed they were the only legitimate company selling timeshares for owners, were ‘certified,’ had sold hundreds of timeshares and had hundreds of employees. They also posted fake testimonials on websites for The Jariv Companies purporting to be from satisfied customers, but were actually written by employees.
Between Feb. 1, 2011, and Jan. 31, 2012, The Jariv Companies received approximately $6,925,137.04 in fraudulently obtained timeshare owner funds from approximately 1000 victims living in Canada and throughout the United States. The Muises received significant commissions for fraudulently obtaining victims’ money – 30-40% in most cases. In 2011-2012, Ronald Muise received nearly $1 million, while Michael Muise received $440,000.
U.S. District Court Judge Lynn N. Hughes, who accepted the guilty pleas yesterday, has set sentencing for March 17, 2013. The conspiracy count carries a maximum imprisonment of 20 years in federal prison, but because the wire/mail fraud involved telemarketing of 10 or more victims over the age of 55, federal law provides for an additional 10-year sentence in addition to what was imposed for the underlying fraud. Both defendants were permitted to remain on bond pending that hearing.
Related Federal Cases
- Muises, Timeshare Resale Fraud, Texas 2013 · Texas
- Muises, Timeshare Resale Fraud, Texas 2013 · Texas
- Six North Texans Indicted In Mortgage Fraud Conspiracy, Texas 2013 · Texas
- Six North Texans Indicted In Mortgage Fraud Conspiracy, Texas 2013 · Texas
- Six North Texans Indicted In Mortgage Fraud Conspiracy, Texas 2013 · Texas
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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