Orlando, FL (July 28, 2015 — United States Attorney A. Lee Bentley, III announces that Tammie Lynn Cline (33, Leominster, MA) has pleaded guilty to conspiracy to commit mail fraud and wire fraud for her role in the operation of a boiler room. She faces up to 20 years in federal prison. Sentencing has been set for October 9, 2015.
Cline and Mark Gardner (28, Osteen, Florida) were indicted on January 28, 2015.
According to court documents, Gardner and Cline operated a boiler room in Central Florida. Along with the telemarketers who worked at their call center, they would make unsolicited calls to owners of timeshare properties located throughout the United States. During those calls, they claimed that they worked for Universal Timeshare Sales Associates (UTSA) out of Beaverton, Oregon, that UTSA had a purchaser who was interested in buying a timeshare, and that the timeshare owner just needed to pay a fee between $1,600 and $2,200 for the sale to proceed.
In order to convince timeshare owners to pay the fee, Gardner, Cline, and their telemarketers would sometimes claim that an interested purchaser was present in the showroom ready to buy a timeshare, that a buyer had already deposited money into an escrow account for the sale, or that the sale would take place in about 90 days. Those representations were false. The timeshares were not sold as had been promised, and members of the conspiracy would deny or ignore requests for refunds, and would dispute chargebacks with the credit card companies.
In total, victims lost approximately $1.6 million due to the operation of the telemarketing call center.
In May 2013, the Federal Trade Commission and the Florida Attorney General’s Office filed a civil action against Gardner, Cline, and others in federal court. In June 2014, the district court entered a permanent injunction against them related to certain telemarketing practices.
Gardner is set for trial in September 2015. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
PRESS RELEASE SOURCE: USAO – Florida, Middle District