Self-professed 'Wolf of Airbnb' pleads guilty to wire fraud for defrauding landlords
Also: “Wolf Of Airbnb” Pleads Guilty In Connection With PPP And Real Estate Fraud Scheme (U.S. Attorney's Office, Southern District of New York)
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Source: Associated Press
Self-professed ‘Wolf of Airbnb’ pleads guilty to wire fraud for defrauding landlords
BY LARRY NEUMEISTER
Published 6:29 PM EDT, June 26, 2023
NEW YORK (AP) — A Florida man who dubbed himself the “Wolf of Airbnb” pleaded guilty to a wire fraud charge Monday, admitting gaining about $2 million illegally by defrauding landlords and cheating a government pandemic program.
Konrad Bicher, 31, of Hialeah, Florida, entered the plea in Manhattan federal court, agreeing not to appeal any prison sentence that is roughly four to five years long. The wire fraud charge otherwise carried a potential 20-year prison sentence.
Bicher also agreed to forfeit $1.7 million and make restitution of $1.9 million. A sentencing date was not immediately set.
U.S. Attorney Damian Williams said in a statement that Bicher proudly referred to himself as the “Wolf of Airbnb” but admitted that his businesses were premised on fraud after he entered lease agreements based on false pretenses and made false statements to obtain U.S.-guaranteed loans.
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Read more: https://apnews.com/article/airbnbwolf-konrad-bicher-plea-wire-fraud-d0c1ef530598d0668ee8eb8499f0adf8
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Source: U.S. Attorney's Office, Southern District of New York
“Wolf Of Airbnb” Pleads Guilty In Connection With PPP And Real Estate Fraud Scheme
Monday, June 26, 2023
For Immediate Release
U.S. Attorney's Office, Southern District of New York
Damian Williams, the United States Attorney for the Southern District of New York, announced that KONRAD BICHER pled guilty today to wire fraud in connection with his fraudulent operation of real estate companies, including by entering lease agreements for residential apartment units in Manhattan on false and fraudulent pretenses and by making false statements to obtain loans guaranteed by the United States government. BICHER pled guilty before U.S. Magistrate Judge Sarah L. Cave.
U.S. Attorney Damian Williams said: “Bicher proudly referred to himself as the ‘Wolf of Airbnb.’ But, as he admitted in court today, his businesses were premised on fraud. Bicher entered into lease agreements on false pretenses and made false statements to obtain loans guaranteed by the United States government. Bicher lined his own pockets by abusing government programs and tenant protections intended to benefit those in crisis during the COVID-19 pandemic. Thanks to the hard work of the FBI and this Office, he is being held accountable for his conduct.”
According to the allegations in the Complaint, Indictment, other court documents, and statements made in Court:
Beginning in at least February 2019, BICHER, and/or individuals working in concert with BICHER, began renting apartment units (the “Units”) in Manhattan. The Units were leased pursuant to lease agreements which required that the lessee make monthly rental payments and also included clauses that prohibited the lessee from renting the Units to third parties on a short-term basis and/or included clauses that prohibited the lessee from subletting the Units to third parties without written consent of the owner. Despite the requirement to make monthly rental payments, BICHER failed to make payments as required by the lease agreements. For many of the Units, BICHER also refused to vacate the Units after the expiration of the lease agreements. During the period of time that BICHER failed to make required rental payments, including the period of time after a lease agreement expired and the premises had not been vacated, BICHER derived income by renting the Units on a short-term basis, including by posting the Units for rent on various online marketplaces, such as Airbnb, Inc. (“Airbnb”).
Between in or about July 2019 and in or about April 2022, BICHER and his associates failed to make more than $1,000,000 in payments pursuant to the Lease Agreements or, for the period of time after the expiration of the Lease Agreements, based on the estimated fair market value for the Units. During this period, BICHER caused the Units to be listed for short-term rent on Airbnb and at least one other online marketplace for short-term rentals, resulting in at least $1,170,000 in rental income to BICHER and his associates.
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BICHER, 31, of Hialeah, Florida, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. BICHER also agreed to forfeit $1,740,407.12 and to make restitution to victims in the amount of $1,985,251.
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Read more: https://www.justice.gov/usao-sdny/pr/wolf-airbnb-pleads-guilty-connection-ppp-and-real-estate-fraud-scheme