‘Wolf of Airbnb’ pleads responsible to wire fraud for defrauding landlords

NEW YORK (AP) – A Florida man who dubbed himself the “Wolf of Airbnb” pleaded responsible to a wire fraud cost Monday, admitting gaining about $2 million illegally by defrauding landlords and dishonest a authorities pandemic program.

Konrad Bicher, 31, of Hialeah, Florida, entered the plea in Manhattan federal court docket, agreeing to not attraction any jail sentence that’s roughly 4 to 5 years lengthy. The wire fraud cost in any other case carried a possible 20-year jail sentence.

Bicher additionally agreed to forfeit $1.7 million and make restitution of $1.9 million. A sentencing date was not instantly set.

U.S. Attorney Damian Williams mentioned in an announcement that Bicher proudly referred to himself because the “Wolf of Airbnb” however admitted that his companies have been premised on fraud after he entered lease agreements primarily based on false pretenses and made false statements to acquire U.S.-guaranteed loans.

“Bicher lined his own pockets by abusing government programs and tenant protections intended to benefit those in crisis during the COVID-19 pandemic,” Williams mentioned.

When Bicher was indicted in October, Williams mentioned Bicher operated no less than 18 residences in Manhattan “as mini-hotels” whereas utilizing the pandemic as an excuse to not pay landlords.

In a information launch, prosecutors famous that Bicher advised media shops that he referred to as himself the “Wolf of Airbnb” as a result of he was “hungry and ruthless enough to get on top of the financial ladder” and had the ferocity … of a wolf, as a result of wolves are territorial, vicious and present no mercy when provoked.”

The “Wolf of Airbnb” gave the impression to be a play on “The Wolf of Wall Street,” the title of a memoir by former stockbroker Jordan Belfort, who made a fortune on penny shares earlier than blowing a lot of it on a wild and lavish way of life and going to jail for monetary crimes.

Prosecutors mentioned in court docket papers that Bicher started his fraud by February 2019, renting residences in Manhattan earlier than subletting the items to 3rd events on a short-term foundation although clauses in his lease agreements mentioned he couldn’t achieve this.

Prosecutors mentioned he did not make hire funds required by the lease agreements and refused to depart the residences after the leases expired.

They mentioned that he and his associates did not make greater than $1 million in lease funds from July 2019 to April 2022 and earned no less than $1.17 million in rental revenue via his personal short-term leases.

From April 2021 to July 2021, he used fraudulent info to acquire over a half million {dollars} in government-guaranteed loans via a program administered by the U.S. Small Business Administration to offer reduction to small companies throughout the COVID-19 pandemic, prosecutors mentioned.