Florida residents have been betrayed by a ruthless time-share resale scam that has left thousands of dollars in financial ruin. Pasquale Pappalardo, 60, of Coral Springs, FL, has been convicted of conspiracy to commit mail fraud and wire fraud in the Southern District of Florida.
Pappalardo and his accomplice, Audwin Lovinsky, 35, of Tamarac, FL, were found guilty of running a telemarketing scheme that targeted vulnerable victims, taking in over $5,000,000 from approximately 3,000 customers.
The scam involved Timeshare Mega Media and Marketing Group, Inc. (TMMMG), a company run by Pappalardo and his associates. They would take customer files and electronic databases from other companies without their knowledge and use them to deceive victims into paying fees for nonexistent time-share unit sales.
According to the evidence presented at trial, Pappalardo and his associates knew about the lies being told to victims but chose to do nothing to stop them. Lovinsky, who used the phone name Edwin Lovins, would ask victims for a fee of at least $1,996, and as much as $10,000, with no intention of selling their time-share units.
Pappalardo faces a maximum sentence of 40 years in prison and a fine of up to the greater of $750,000 or twice the gross gain or twice the gross loss. Lovinsky faces a maximum sentence of 20 years in prison and a fine of up to the greater of $250,000 or twice the gross gain or twice the gross loss.
The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan. The FBI, Fort Lauderdale Police Department, Federal Trade Commission, and Broward Sheriff’s Office were also involved in the investigation.
Pappalardo and Lovinsky were remanded to the custody of the Bureau of Prisons after the verdicts and are scheduled to be sentenced on January 29, 2014.
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Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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