11-22-2010 To: All Media and Press Re: John Hennessay, Deluxe Rent A Car, NetStar, Johnny Cars, Johnny Park

, Ace Rent-A-Car John Hennessay is in the business of nationwide fraud. He is using state fees and taxes that he does not pay to subsidize falsely advertized low prices and thereby violating unfair business practices laws and stealing undue market presence. He is using his Attorney’s Firm and 4 other corporate entities to insulate himself and the sister corporations from the fraud done by Deluxe. Deluxe Rent A Car frauds include illegally charging the following fees that they are not authorized by state statue: a) DMV’s Vehicle Licensing Fee – 26X the Legal Amount b) Airport Concession Recover Fee (ACRF) 11-27% c) California Tourism Fee (CTF) 2.5 - 3.5% d) Customer Facility Fee (CFC) - $10 e) Ace Rent A Car – ACRF Fraud Other complaints include: a) Forgery b) Unauthorized Credit and Debit card use c) Failure to refund deposits d) Charging customers for various insurance schemes. e) Rental of expired Vehicles illegal to drive on California streets. In June 2007 I became a victim of fraud, illegal rental of a vehicle. When I refused to pay Deluxe forged my signature and by “Identity Theft” stole my money. Subsequent research uncovered a pattern of continuing fraud that starting with the illegal charging of Airport Concession Recovery Fee. This was reported and documented with an estimated $2 million of ACRF money defrauded to the Los Angeles World Airport. The original forgery complaint on 6/19/08 was initiated at the PAC Div of the LAPD where Detective Allen actually told me he refused to take my case or look at the actual documentation. I was forced to file a formal LAPD complaint to actually get this case reluctantly investigated. The informed LAWA has done nothing to address this fraud and claims to have no authority this despite have full authority over the sister company Johnny Park that provides the access to this fraudulent activity I was finally given help from LAPD Commercial Division Detective Gipson whose investigation of Deluxe’s forgery of my signature ended after Deluxe then blamed a former employee for the forgery that could she could have done and then “lost” the original they claimed to be in possession of when demanded by Gipson for analysis . This concluded with a the District Attorney's final revealing this conclusion “…."Former employee of Deluxe Rent A Car is being framed by her employer. No evidence to indicate that defendant forged a customer's signature. To this day other than detective Gipson not one of California’s governmental agencies including the City Attorney’s Office, The District Attorney’s Office,The Mayor’s Office, The LAWA, The Department of Justice has assisted me in any way.

John Hennessay remains so assured he is protected and insulated by his Beverly Hills Attorney’s well designed corporate structure, loopholes in the laws, protections inherited through Eminent Domain and inherent authority issues of created by the board guarantees of Bond Funded Projects that despite knowing about the efforts of myself and others to expose him with post, websites www.deluxerentacar.info, travel website postings, reporting to authorities and he continues to defraud up to 1400 people and the State of California of millions of dollars each and every day with impunity. No wonder California is in a financial crisis. I live in California within 10 miles of Deluxe and have spent 3 years and hundreds of hours dealing with my fraud. 90% of Deluxe’s customers are innocent travelers delivered through Carrentals.com and come through LAX. 1400 people per day victimized who are defrauded and then have to get on a plane within 2hrs. He likes this setup so much that during some times he exclusively rents to travelers arriving through LAX. Nothing has been done and to this day I have received none of the money stolen. These are the horror stories you hear about when traveling to Mexico… who would have thought the State of California would allow this to go on here.

Deluxe Case History
Timeline
06/00/07 – I Rented a car from Deluxe Rent A Car and was Defrauded 09/00/07 – Deluxe Forged my signature 07/ 28/08 -Website went up. http://www.deluxerentacar.info 07/31/08 - Deluxe became aware of my activities 07/01/08 - Deluxe threatens to sue me on http://www.youtube.com/deluxerentacar and call me “a scum bag” and to “have Micky D deliver another big mac to your fat ass.” 08/04/08 - I am contacted by their Attorney for John Hennesey/Deluxe and I inform them about the additional ACRF violation I discovered and Ashley’s problem. I ask them to make a fair offer and set up a program that returns the money bilked. 08/08/08 - all communication stop and I continue what I was doing. 08/09/08 - A trip to Deluxe’s office with videotaped activities and exposure to their clients result in unexplained ACRF refunds to people returning the vehicles and were charged it on their booking 08/11/08 - Deluxe and Carrentals.com change the site and remove the ACRF fee. 08/11/08 - I wrote Mayor Antonio R. Villaraigosa and explained the fraud.

08/11/08 - I also filed a complaint with the FTC - # 19862472 08/13/08 - Deluxe renamed the fee to just “Airport Fee” and raised it to 17.62 % and changed it again to just “Fee” and charged 27.62% until 12/11/08 11/26/08 - My attorney gave notice of our intent to sue and to seek an injunction to prohibit their behavior. 11/26/08 - Our Notice of Intent to file suit was dated 12/11/08 - Dani’s rented from Deluxe 8X and 1st & “Only” legit bill in 1 year of rental history 12/15/08 ‐ We Received response to suit stating in a letter in regards to my case “Although in the past Deluxe did charge an ACRF tax. It has long since changed its policies and no longer does.” 02/10/09 - Deluxe e‐mails “False Advertisement” in an attempt to hide their illegal and control the “spin” of my efforts to expose the fraud. In this advertisement they state “Through special contracts with the Los Angeles Airport, Deluxe Rent A Car at LAX no longer needs to charge our valued car rental customers ANY additional Airport fees or taxes that other car rental company’s charge. I forward this E-mail to the LAWA and LAWA confirms “No Relationship” 05/2009 - A Former Deluxe employee contacts me because of my site and postings and we meet. At that meeting he advises me on multiple frauds scams of Deluxe including Insurance Fraud and suggest I look into the VLF because he is not sure what it is but John Hennessay always has fees changing at Deluxe and they are usually fraud 05/2009 ‐ Deluxe creates new 13-16% fraud replacing the ACRF fraud. This time using Vehicle Licensing Fee increase that the Governor enacted to help the State of California’s Budget Crisis, he has used the state to pursue the continuance at an estimated $100,000 per month in fraud. 11/2009 - Ace Rent-A-Car replaces Deluxe-Rent-A-Car on carrentals.com and starts ACRF Fraud again along with VLF Fraud 11/2009 - The California Department of Tourism Confirms that they have no knowledge of who Deluxe-Rent-A-Car is and have never received any payments from them 11/2009 - The Department of Insurance states Deluxe Rent-A-Car’s license to sell insurance expired in 2007

Violations of Law
1) 2) 3) Fraud Forgery Consumer Fraud on the form of the illegal advertising, charging and retention of Airport Concession Recovery Fee at the rate of 13-27% of rentals from a company with a fleet of approx 1400 cars and public records claiming $5-10M in receipts Property Theft – The right to control access to the airport belongs to the LAWA and has contracts with 10 companies of which Deluxe is not. This right is a definable financial asset as the contract requires the payment of 10% of all revenue generated for the privilege to use of this right and amounts to an estimated $1-2M per year in theft and loss of funding to be used for labor and construction at LAX Unfair and Deceptive Trade Practices in use of this fee to obtain an unfair market share with low prices subsidized by the fraudulent collection of the ACRF fee. Tax Evasion – in the underpayment of California tax revenue because the rental tax charged is based on the rental rate and not the actual amount being charged and this amounts to another $100-200K /yr Wire fraud – Deluxe e-mailed advertisement after filing of this case and being exposed on http://www.deluxerentacar.info . “Through special contracts with the Los Angeles Airport, Deluxe Rent A Car at LAX no longer needs to charge our valued car rental customers ANY additional Airport fees or taxes that other car rental companys charge.” This Email is a voluntary admission of the commission of this fraud because no relationship with the LAWA exists and “no longer needs to“ indicates the knowledge and intent to conceal the fraudulent charging of this fee. The mailing of communications that are designed to lull the victims of the fraud into believing they have received the services they bought is sufficient to support a conviction under § 1341. See, e.g., United States v. Angelilli, 660 F.2d at 36-37. It would appear as the attached e-mail and the multiple receipts from various could go directly to summary judgment VLF Fraud - Due to California’s huge deficit Governor Shwartznegger enacted Ca Civil Code Section 1936.015. The increase fee ”… the fee increase in the vehicle license fee above 0.65 percent of the value of the vehicle. The increased vehicle license fee shall be separately charged, clearly stated, and prorated at one-three hundred sixty-fifth of the fee increase in the annual vehicle license fee. Deluxe stopped ACRF fraud only after the actual filing of this case, but quickly replaced the 13% fraud with a new scheme constructed as soon as it went into effect in The Vehicle Licensing Fee is being collected and charged at a rate of 13.3 16.1% of the rental fee 22-28X the legal amount that under Revenue & Taxation Code §§10751, 10752, 10755 they are mandated to collect and not to overcharge and is clearly a “False Claim” . Deluxe has been charging and collecting collected the $10/car CFC belonging to the LAWA but has that fee on every rental.

4)

5) 6)

7)

8)

9)

10) Allegations by previous employee include multiple forms of insurance fraud including charging insurance never applied because customer was renting on automatically protected Gold or Platinum cards. Dept of Insurance reports license expired in 2007.

11) Conspiracy to Defraud 12) Racketeering

Carrentals.com – Deluxe & Ace Rent-A-Car – ACRF Fraud
Carrentals.com is the company that provides the majority of Deluxe’s victims. As the largest online rental car booking agency and embedded in the industry they receive a portion of this fraudulent business. Having been informed about the ACRF fraud they did nothing to safeguard their site against the predatory behaviors of this. In December 2008 Deluxe Rent-A-Car stopped charging this fee after my lawsuit was filed. November 2010 Deluxe disappeared from carrentals.com and Ace has now appeared in its place. Ace is the company name Deluxe used previously. Ace is now charging the ACRF fee that Deluxe is not. They are charging a tourism fee and the VLF fee and while it is not 23x the legal amount it is about 4x.

Vehicle Licensing Fee
I uncovered the new Vehicle Licensing Fee fraud initiated in May of this year by John Hennessay. This was to replace the original ACRF fraud he was forced to stop when I filed my case. This fraud was initiated immediately after the Governor enacted emergency legislation SBX2 10 (Oropeza) and it went into effect. This .5% fee increase of the current VLF fee is an effort to offset California’s $21Billion deficit. I have been tracking this on both www.carrentals.com or www.deluxerentacar.com since May 2009.

Customer Facilities Charge- Fraud
Fiscal Year 2008 Compared to 2007. For fiscal year 2008, LAWA’s total operating revenues increased by $115.3 million, or 17.5%, to $774.3 million, mainly due to a $51.0 million, or 19.2% increase in concession revenues, and $35.8 million, or 25.3%, growth in revenue from building rentals. Additionally, LAWA’s landing fees increased $21.3 million, or 12.4%, while other aviation revenue increased $75 million, or 10.1%. A new concession revenue item for LAX this year is On-Airport Customer Facilities Charge (CFC). CFC is a fee collected by the airport from customers per vehicle rental. The charge is similar to a Passenger Facility Charge except that it is not airline-related and is classified as operating revenue. It generated total revenue of $25.0 million and is mainly contributory to the increase in concession revenue this fiscal year.

*** Upto 1400 cars @ $10 = $14-28K/wk in revenue loss ***
The 2006 bill AB 2592, which became law on Jan. 1, 2007, originally was drafted to promote tourism in California by imposing a surcharge on car rental firms totaling 2.5% to raise up to $50 million annually for the tourist. AB2592 was sold in exchange for agreeing to form a commission to self-regulate LAX rental car activities the rental car companies would be allowed to unbundle the 10% “fee” that they were already paying as a cost of business. This agreement was made under the auspice that this would allow the customer to see that the fee wasn’t profit but a cost and the lower advertised rental price prices attract more business. There would be no economic change to the consumer

Department of Tourism Fraud

What Really Happened Was…. An analysis by the Center for Public Interest Law found that the average daily base rate quoted on the Internet for seven car rental firms at LAX during the week of Dec. 21, 2006, was $59.56 for a mid-size car, including tax. That rate included the 11% airport concession fee. For the week of Jan. 25, 2007, after the state law took effect, the average daily price excluding fees for the seven firms quoted on the Internet for the same car was $64.88, the study found. The 11% airport concession fee was an additional $7.21, and the new 2.5% California Trade and Tourism Fee added $1.62. Taxes brought the total to $79.
Passenger Car Rental Industry Tourism Assessment Section 5357. (a) The passenger car rental industry tourism assessment collection program shall apply to companies that have business locations renting passenger vehicles at either Airport Location or Accommodation Locations in California. …Deluxe has neither. ** California Board of Tourism has no record of Deluxe Rent A Car or Netstar ever paying **

While reviewing the other frauds I decided to check other charges on the receipts to see if they were also fraud. I contacted Chris McLucas of the Department of Tourism regarding Deluxe and its sister companies. She has never heard of Deluxe and has no records of any of the tourism fees they have collected. This represents an additional 2.5-3.5% in Fraud

Fraud Analysis

Deluxe Rent-A-Car & Carrentals.com Fraud A
Assumptions
CA Tax Fleet - #'s Cars % usage Tour Tax 1-Time LAWA CFC Charge Annual Rentals @ 3 Day rental 9.25% 1,400 70.00% 2.50% $10.00 118907 Unbundled VLF Total/Yr Legal VLF/Day $19,000.00 $35,000.00 $218.50 $402.50 $0.26 $0.48 units 980 Advantage Alamo Avis Budget Dollar Enterprise Hertz Fox Payless National Thrifty www.advantage.com www.alamo.com www.avis.com www.budget.com www.dollar.com www.enterprise.com www.hertz.com www.foxrentacar.com www.paylesscarrental.com www.nationalcar.com www.thrifty.com

Vehicle Licensing Fee
Economy Car Cost Luxury Car Cost

• Others - (1.6% market s

Weekly Analysis / Car -Advertised Pricing
Carrentals - Companies LAWA-Fee Daily Lowest W/Taxes Tax & Fee CA Tax Tourism Tax CFC $10

Deluxe Airport Van Rentals Fox Payless
Economy Luxury Economy Luxury

N n/a
y

$190.40 $362.69
$243.70 $425.40

$248.53 $441.92
$311.88 $536.98 $318.08 $543.17 $543.75 $601.69 $546.94 $644.29 $546.94 $644.29 $641.82 $706.24 $546.94 $644.29 $546.94 $644.29 $669.64 $731.57

$56.13 $79.23
$68.18 $111.58 $69.38 $132.30 $116.36 $127.91 $113.53 $132.30 $113.53 $132.30 $131.83 $144.25 $113.53 $132.30 $113.53 $132.30 $137.15 $149.08

$21.66 $38.45
$22.54 $39.35 $23.00 $39.81 $39.53 $43.82 $40.09 $47.36 $40.09 $47.36 $47.17 $51.98 $40.09 $47.36 $40.09 $47.36 $49.26 $53.88

$4.76 $9.07
$6.09 $10.64 $6.22 $10.76 $10.68 $11.84 $10.84 $12.80 $10.84 $12.80 $12.75 $14.05 $10.84 $12.80 $10.84 $12.80 $13.31 $14.56

$0.00 $0.00
$10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

y y y y y y y y $76.00 $72.86 $80.28

$248.70 $430.40 $427.39 $473.78 $433.41 $511.99 $433.41 $511.99 $509.99 $561.99 $433.41 $511.99 $433.41 $511.99 $532.49 $582.49

Enterprise Economy
Luxury

Dollar Alamo Budget National Avis Hertz

Economy Luxury Economy Luxury Economy Luxury Economy Luxury Economy Luxury Economy Luxury

*** All Companies listed on carrentals.com are on the list of approved agencies - therefore, we can conclude that all of the busine This means a) The " California's" direct loss of tax revenue due to this fraud exceeds $149,474 annualy
b) The "State of California's" indirect loss could be between $194,433 and $1,555,732 c) The LAWA's direct loss of ACRF funds amounts to between $1,077,000 and $2,051,577 d) The LAWA's indirect loss is between $1,077,010 and $3,295,074 "Approved Agencies" e) The illegal VLF overcharges the consumer up to $1,523,100 per yearin fraudulent fees f) The LAWA is also loosing the $10 CFC charge on every rental originating from LAX

*Carrentals.com currently has figures that don’t match invoices … incorrect tax calculation and fees for other companies

om Fraud Analysis
• Alamo (10.5% market share) • Avis (21.4% market share) • Budget (10.5% market share) • Dollar (8.5% market share)

com

• Enterprise (3.7% market share) • Hertz (28.0% market share) .com • National (12.1% market share) • Thrifty (3.7% market share)

ental.com

rs - (1.6% market share)

Pricing
ACRF-10% Other Fees VLF-Charged Legal VLF

FRAUD
VLF FRAUD Tax Defecit

Fraud Results /Wk
CA Tax "Not paid" VLF/Weekly California's Loss Sales/Use Tax-

Ann

* $19.04 * * $36.27 *
$27.05 $47.22 $27.61 $47.77 $47.48 $52.64 $48.15 $56.88 $48.15 $56.88 $51.00 $56.20 $48.15 $56.88 $48.15 $56.88 $59.11 $64.66

$0.00 $0.00
$2.50 $4.38 $2.55 $4.43 $8.66 $9.60 $4.45 $5.26 $4.45 $5.26 $10.91 $12.02 $4.45 $5.26 $4.45 $5.26 $5.47 $5.98

$31.71 $31.71

$1.82 $3.36
VLF $1.82 $3.36 $1.82 $3.36 $1.82 $3.36 $1.82 $3.36 $1.82 $3.36 $1.82 $3.36 $1.82 $3.36 $1.82 $3.36 $1.82 $3.36

$29.89 $28.35
No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud No Fraud

$2.93 $2.93
Tax loss $0.88 $0.90 $1.34 $1.36 $17.87 $5.37 $18.43 $8.91 $18.43 $8.91

$29,290.32 $27,786.76
LAWA-ACRF $26,509.00 $46,275.60 $27,057.80 $46,814.60 $46,530.40 $51,587.20 $47,187.00 $55,742.40 $47,187.00 $55,742.40

$2,874.51 $2,874.51
Tax loss $864.60 $881.51 $1,317.86 $1,334.76 $17,516.10 $5,267.16 $18,061.82 $8,730.89 $18,061.82 $8,730.89 $25,003.79 $13,263.39

$149,475 $149,475
+ Tax Loss + $44,959 $45,839 $68,528 $69,408 $910,837 $273,892 $939,214 $454,006 $939,214 $454,006 $1,300,197 $689,696 $939,214 $454,006 $939,214 $454,006 $1,406,258 $786,329

LAWA's
CFC Loss $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067 $1,189,067

unknown unknown
$18.43 $8.91 $18.43 $8.91 $27.60 $15.43 $47,187.00 $55,742.40 $47,187.00 $55,742.40 $57,927.80 $63,366.80

$18,061.82 $8,730.89 $18,061.82 $8,730.89 $27,043.42 $15,121.72

all of the business from carrentals.com (90%-95% of Deluxe's business) would have gone to one of those 10 companies

other companies -

See other fees column for discrepancies

Annual Cost of Fraud - Fleet Annual LAWA
Vehicle Licensing Fraud ACRF Loss

Yearly Fraud

Direct Tax loss from Actual Fraud

$1,523,097 $1,444,911 No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud No Consumer Fraud

$1,077,009 $2,051,578
ACRF Loss $408,190 $1,436,053 $436,727 $1,464,081 $1,449,302 $1,712,256 $1,483,446 $1,928,326 $1,483,446 $1,928,326

$2,749,580 low loss $3,645,964 high loss high loss + Additional Loss + $1,791,690 $2,820,433

Additional Tax Revenue Lost

$1,843,797 Additional revenue deficit resulting from $2,872,030 the deflection of legit business from the $3,698,681 LAWA approved rental car agencies $3,324,689 $3,761,201 *** This assumes the the average rental = *** This assumes average rental days days = $3,720,874 and reflects net effect including missing CFC $3,761,201 added to the initial direct loss by this fraud $3,720,874 unknown unknown $3,761,201 $3,720,874 $3,761,201 $3,720,874 $4,786,766 $4,449,666 ######## ######## ######## 3

unknown unknown
$1,483,446 $1,928,326 $1,483,446 $1,928,326 $2,041,967 $2,324,795

Conspiracy to Defraud
Participating Fraud Entities - Scheme
The parent corporation of this criminal enterprise is Netstar. John Hennessay owns Netstar, Johnny Parking, Johnnycars, Deluxe Rent A Car, and Ace Rent-A-Car. Johnny Cars is a dealer/leasing company who leases the vehicles to Deluxe and Ace. Johnny Park has parking structure, Airport shuttles and houses Deluxe on its property. His “Top Notch” Attorneys have structured this corporate arraignment in a way that takes advantage of the legal structure of corporations, the protections provided through the use of political subdivisions and regulatory difficulties of jurisdiction. It has taken a while to understand why every entity I have dealt with just sits on their hands despite full knowledge of this fraud. Deluxe’s Attorneys have set this operation up so he will be free to defraud anyone, anywhere he wants. This is why when customers complain his response “Fuck You…. Sue me then, That’s what I pay the lawyers for” and why they simply ignore injured consumers.

This is the way it works….. John Hennessay and some minor partners own Netstar the parent company. Under this shell Johnny Cars is the dealer/leasing company who purchases the vehicles and then leases them to Deluxe Rent-A-Car and Ace Rent-A-Car. They are the rental companies. Johnny Park is the Parking company which has a contract with the LAWA allowing them to enter LAX airport and pick up parking customers. Johnny Park owns the property and leases it to Deluxe. Neither Ace nor Deluxe own anything they are simply the arms of fraud. Deluxe instructs its customers to board the Johnny Park shuttle at the parking pick-up instead of the Rental Car one. In doing so Deluxe pays the LAWA $1.60- $1.87 per shuttle load of up to 24 persons instead of the $10 + 10% ACRF + 3.5% California Tourism per auto rental as required by California statue. Because there is insufficient oversight of the rental car industry there is no direct regulator. I have gone to the LAWA and they claim that it’s out of their scope and jurisdiction as they regulate Johnny Park. I have gone to the DMV and I am told that because the vehicles belong to Johnny Cars that the new Vehicle License Fee that they are responsible for and since Deluxe is doing the fraud, it is once again out of their scope as the one responsible is Johnny Cars. This would be the same for AceRent-A-Car who also does not pay the LAWA but is currently charging ACRF fees today. All of these organizations belong to John Hennessay and are under his Netstar Corporation.
Ideal Steel Supply Corp. v. Joseph Anza, 254 F.Supp.2d 464 (S.D.N.Y. 2003), vacated, 373 F.3d 251(US 2nd Cir. July 2, 2004), reversed in part and remanded (US Supreme Court, June 5,2006). Ideal Steel Supply Corp. collected New York state and local sales tax. National Steel Supply, a competitor located a short distance away, did not collect the state and local sales tax. Ideal sued National under the federal Racketeer Influenced and Corrupt Organizations Act ("RICO"). Ideal pleaded that its lost sales were proximately caused by National's pattern of offering customers lower bottom line cost by means of the unlawful omission of state sales tax. Ideal alleged National concealed those omissions by means of mail and wire

fraud. District court dismissed the case on the grounds of an inadequate pleading. The Second Circuit appellate court agreed with Ideal and reinstated the case. The US Supreme Court remanded to the appellate court. 1) Monongahela Navigation Co. v. United States, 148 U.S. 312 (1893) (concerning a franchise to operate locks on river); City of Oakland v. Oakland Raiders, 646 P.2d 835, 839 (Cal. 1982) (en banc) (holding that a city may properly exercise eminent domain over intangible property, including a football franchise); The federal fraud statutes prohibit the use of the mails or wires in furtherance of "any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises." 18 U.S.C. §§ 1341, 1343. Because these statutes use the same relevant language, they are analyzed in the same way. See , e.g. , United States v. Schwartz , 924 F.2d 410, 416 (2d Cir. 1991); United States v. Covino , 837 F.2d 65, 71 (2d Cir. 1988). See United States v. Trapilo, 130 F.3d 547, 552 (2d Cir. 1997) (holding that a scheme to deprive a country of tax revenue is a scheme to deprive that country of property); United States v. Bucey, 876 F.2d 1297, 1310 (7th Cir. 1989) (deciding that uncollected federal income tax is the government's property); United States v. Doe, 867 F.2d 986, 989 (7th Cir. 1989) (holding that a county has a property right in uncollected tax revenue); United States v. Porcelli, 865 F.2d 1352, 1360 (2d Cir. 1989) (holding that unpaid taxes are intangible property protected by the mail and wire fraud statutes). See McNally v. United States, 483 U.S. 350, 358 (1987) ("[A]ny benefit which the Government derives from the [mail fraud] statute must be limited to the Government's interests as property holder."). If the prosecution wants to avoid having to prove a property interest, the best bet is to rely on 18 U.S.C. § 371, the general statute involving conspiracy to defraud the government, in which the prosecution only needs to prove that the defendant deprived the government of something of value by trickery, deceit, or chicane. See Hammerschmidt v. United States, 265 U.S. 182, 188 (1924). See United States v. Dinome, 86 F.3d 277, 283‐84 (2d Cir. 1996) ("Under the mail fraud statute, the definition of property includes intangible property interests such as the right to control the use of one's assets. This interest is injured when a person is deprived of information he would consider valuable in deciding how to use his assets.") (emphasis omitted); United States v. Simpson, 950 F.2d 1519, 1523 (10th Cir. 1991) ("A conspiracy to defraud the victim of the use or control of his money is . . . within the purview of the wire fraud statute."). Weisman, 624 F.2d at 1122. Thus, an enterprise with "a single purpose," here fraud continuing indefinitely, can provide the basis for a section 1962(c) violation. Section 1962(c) provides: It shall be unlawful for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate, or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise's affairs through a pattern of racketeering activity or collection of unlawful debt. Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses,…. any thing whatever to be sent or delivered ……shall be fined under this title or imprisoned not more than 20 years, or both.

2)

3)

I think the Los Angeles World Airport operations and legal dept have failed in their duties. Aware of the fraud, losing a revenue stream and doing nothing while they are the authority on all things to do with LAX. The fact that this fraud is being committed using a company that they do have authority over and that they are aware of the fact that John Hennessay is using this scam to unjustly enrich himself while revenue dropped for LAWA last year is a failure of duty. The reputation and finances of LAX and the City of Los Angeles is their responsibility and because

they receive federal funding for both the traffic and air quality that is addressed with the RAC development bond this breach is also approachable under Federal Law. The LAWA contends that only the consumer has been defrauded as Deluxe is under no direct responsibility to pay the ACRF Fee. Deeper analysis shows that Deluxe receives the majority of its clients through the internet marketing and partnership of Carrentals.com who is the largest rental cart booking agency in the world. So much so that at times he only receives customers from LAX and refuses to rent to locals without airline tickets. This means he gets 100% of his business through LAX. Deluxe is consistently the lowest price rental agency on carrentals.com because he maintains an unfair competitive advantage acquired through this fraud. Since Deluxe’s sister company Johnny Park only pays $1.60 per trip (on a trust system to top it off ) to LAX regardless if there is 1 or 24 customers on the bus this is the only revenue the LAWA receives which they would get anyway as the shuttles would make the trips anyway for parking clients. All this creates multiple losses for LAWA. They lose $10 per rental which could mean up to $14,000 in CFC, plus they lose 10% of the rental amount. Deluxe is one of 11 companies on carrentals.com which all have direct access to LAX. They all pay the LAWA off their gross. If Deluxe did not exist or prevented from engaging in this fraud the consumer would have chosen one of the other provider and as such the LAWA would have the correct revenue due to them.

The LAWA fails to understand the following principles : JULIUS L. SACKMAN, 1A NICHOLS ON EMINENT DOMAIN, §§ 2.1[2], 2-8 to 2-11 (3d ed. 1999) ("Personal property is subject to the exercise of the power of eminent domain. Intangible property, such as choses in action, patent rights, franchises, charters or any other form of contract, are within the scope of this sovereign authority as fully as land . . . . Hammerschmidt v. United States, 265 U.S. 182, 188 (1924) ("[T]he words 'to defraud' . . . have been given a wide meaning. . . . to wrong[] one in his property rights by dishonest methods or schemes.").United States v. Trapilo, 130 F.3d 547, 552 (2d Cir. 1997) See Adler, 186 F.2d at 577 (noting that a chose in action is property because property is anything in which one has a "right that could be assigned, traded, bought, and otherwise disposed of"). United States v. Trapilo, 130 F.3d 547, 552 (2d Cir. 1997) (holding that a scheme to deprive a country of tax revenue is a scheme to deprive that country of property); United States v. Bucey, 876 F.2d 1297, 1310 (7th Cir. 1989)

Nationwide Fraud with “The Deluxe Brand” ?
http://www.autorentalnews.com/Channel/Rental-Software/News/Story/2010/05/Deluxe-Rent-A-Car-Launches-Deluxe-Reservation-Network.aspx

“Deluxe also recently signed an agreement to partner with an unnamed provider of Internet reservations. "As we were planning the Deluxe Reservation Network, Deluxe was contacted to join their brand. It was the first time an agreement of this type has been done. This industry leader has great insight into the future of the travel business and wanted Deluxe to be a part of it," Hennessay said. The car rental company also plans to build a nationwide independent parking brand, called "Deluxe Airport Parking," to follow the success of its independent parking operations at LAX. "This is a perfect fit for our travel reservation suppliers to cross-sell for the first time all four revenue sources: airline, hotel, car rental, and now parking. This also opens up opportunities for our car rental network associates to explore the parking business as a huge new revenue source," Hennessay said. Deluxe Rent A Car is now accepting applications for all airports. For information, contact Samantha Combs at (310) 216-9250 x230. I am sure that a “Nationwide Fraud Network” will create “Huge Fraud Opportunities” and become a “Huge Revenue Source” especially when you can to fraud with impunity and the State does nothing. This new company will be funded with the $6-15 million dollars of fraud done in the name of “The State of California”

CarRentals.com - Rental Search

Page 1 of 14

Car Rentals Home
Date/Time

Customer Care
Selected Pick-Up Location

Car Rentals FAQ
Selected Drop-Off Location

Pick-Up Date: Aug Drop-Off Date: Aug

17 20

10:00 AM 10:00 AM

Los Angeles International Airport California (LAX)
Click Here To Modify Location Search 100% completed. Found 140 rates

Los Angeles International Airport California (LAX)
Click Here To Modify Location

Modify Pickup and Dropoff Times

Pickup: Sunday, August 17 10:00 AM
Sort By: Price

Dropoff: Wednesday, August 20 10:00 AM
Vendor Car Type

Los Angeles International Airport (LAX)

Economy (2009 Corolla Le (37 Mpg) Or Similar)

Special 10% Discount Automatic $36.48/day Air Conditioning Unlimited Mileage $32.83/day GUARANTEED Total With Taxes $106.62 MODEL 2007 Or 2008! Select Vehicle

Los Angeles International Airport (LAX)

Compact (2009 Toyota Matrix (37 Mpg) Or Similar)

Special 10% Discount Automatic $37.50/day Air Conditioning Unlimited Mileage $33.75/day GUARANTEED Total With Taxes $109.60 MODEL 2007 Or 2008! Select Vehicle

Los Angeles International Airport (LAX)

Intermediate (2008 Civic,Advenger (36 Mpg) Or Similar)

Special 10% Discount Automatic $38.58/day Air Conditioning Unlimited Mileage $34.72/day GUARANTEED Total With Taxes $112.75 MODEL 2007 Or 2008! Select Vehicle

Los Angeles International Airport (LAX)

Special (2008 Honda, Pt Cruiser (36 Mpg) Or Similar)

Special 10% Discount Automatic $38.58/day Air Conditioning Unlimited Mileage $34.72/day GUARANTEED Total With Taxes $112.75 MODEL 2007 Or 2008! Select Vehicle

Los Angeles International Airport (LAX)

Automatic Air Conditioning Unlimited Mileage Economy (Hyundai Accent Or Similar)

$28.95/day
Total With Taxes $116.62

Select Vehicle

Los Angeles International Airport (LAX)

Automatic Air Conditioning Unlimited Mileage Compact (Ford Focus Or Similar)

$29.76/day
Total With Taxes $119.60

Select Vehicle

Los Angeles International Airport (LAX)

Automatic Air Conditioning Unlimited Mileage Intermediate (Dodge Caliber [hwy 29 Mpg] Or Similar)

$30.62/day
Total With Taxes $122.78

Select Vehicle

Los Angeles International Airport (LAX)

Standard (2008 Accord, Charger ( 31 Mpg) Or Similar)

Special 10% Discount Automatic $43.81/day Air Conditioning Unlimited Mileage $39.43/day GUARANTEED Total With Taxes $128.05 MODEL 2007 Or 2008! Select Vehicle

Automatic Air Conditioning

Special 10% Discount $43.81/day

http://www.carrentals.com/rentalrates.jsp?r=1218408840192

8/10/2008

CarRentals.com - Local Policy Information

Page 1 of 1

Local Policy Information
Print This Page YOU ALWAYS SAVE MORE BECAUSE DELUXE DOES NOT CHARGE ANY EXTRA AIRPORT FEES LIKE OTHERS........YOU WILL ALWAYS RECIEVE A TOTAL PRICE WITH NO SUPRISES. AFTER YOU COLLECT YOUR LUGGAGE, EXIT THE TERMINAL AND GO TO THE OUTSIDE ISLAND UNDER THE RED SIGN THAT READS HOTELS AND COURTESY SHUTTLES. BOARD THE WHITE JOHNNYPARK SHUTTLE at C THAT WILL BRING YOU TO OUR FACILITY.....WE ARE OPEN 24 / 7 Minimum age for renters and drivers is 21. Renters and drivers under the age of 25 are subject to an underage charge of $20.00 per day. .........NO LOCAL RENTERS...........................YOU may be asked to HAVE A RETURN AIRLINE TICKET TO RENT WITH US............DELUXE IS AN AIRPORT CAR RENTAL COMPANY. only access is from LAX . No walk ins allowed. RENTALS........................................................................Renters must have a valid return Airline ticket in their name departing from LAX. Debit cards: Debit card only accepted at time of rental when presented with the return flight segment of a round trip airline ticket in the renters name. .... Debit card must have available funds of $400.00 plus total estimated rental charges. Unused funds will be returned through the credit card processor after vehicle return. Due to bank processing it can take up to 14 days to appear back on your account when using this form of payment, additional fees and restrictions may apply....................................................................... State of California requires that all renters have Liability insurance. Deluxe requires all renters to have insurance to cover damage to our rental car. Residents living in the U.S.A or Canada please bring with you your insurance card issued by your auto insurance company. If you did not bring this proof with you, you will be required to fill out a statement of insurance form that Deluxe will provide. .Deluxe Rent A Car is an Airport Only Car Rental Company.. NO LOCAL RENTALS. Renters must have a valid return Airline ticket in their name departing from LAX. Our company is not insured or set up to service the local customers.. Any violations of the rental contract will cause your rate to change. Rate changes will be determined by the management. MPG information is highway miles from Manufactures web site. International Drivers, other restrictions or fees may apply. .......... Additional drivers must have a valid drivers license and the additional proof of insurance required by renter. Major credit cards: Valid drivers license and credit card must be in the same name. Credit card must have available funds of $300.00 plus estimated amount of rental charges. Unused funds will be returned through the credit card processor after vehicle return. Due to bank processing it can take between 2 to 5 days to appear back on your account when using this form of payment. Cash payments also accepted at end of rental. .............................................................................. Reservations will be honored for a period of four hours after the confirmed pick up date and time. Vehicles must be returned with the same amount of fuel as at the start of the rental to avoid refueling charges. All renters must have a return airline ticket in their name departing out of LAX no latter than 28 days from the rental pick up date. Renters are only allowed to drive in the state of California, Nevada and Arizona.

http://www.carrentals.com/localPolicy.jsp?vendor=21&pickupCode=19737_LAX

8/11/2008

CarRentals.com - Make Reservation

Page 1 of 2

Car Rentals FAQ Customer Care Car Rentals Home

Pick-Up Sunday, August 17 10:00 AM
LOS ANGELES INTERNATIONAL AIRPORT (LAX) 11101 S HINDRY AVENUE LOS ANGELES, CA 90045

Drop-Off Wednesday, August 20 10:00 AM
LOS ANGELES INTERNATIONAL AIRPORT (LAX) 11101 S HINDRY AVENUE LOS ANGELES, CA 90045

Vendor Deluxe Rent A Car Car Type Full Size Special

2008 Charger/advenger (30 Mpg) Or Similar * image represents sample car - actual may differ Features Automatic Air Conditioning Unlimited Mileage GUARANTEED MODEL 2007 Or 2008! Rate Information 3 Days @ $43.81/day $131.43 Special 10% Discount Rate
3 Days @ $39.43/day $118.29

Estimated Taxes and Fees $9.76 Total Price= $128.05 Deluxe only services clients who are flying into LAX Airport. Renters must have a valid return Airline ticket in their name departing from LAX. No local renters. After you collect your luggage, please exit the terminal and go to the middle island. Look for the red sign that reads "Hotels and Courtesy Shuttle." Please wait there for a white shuttlevan that reads (Johnnypark). The shuttle circles the airport every 15 minutes, and will bring you directly to the facility. If you have any questions, call 1-800-831-5556 from any phone for information. Local Policy Information General Rental Rules

http://www.carrentals.com/order.jsp;jsessionid=BNMGDNBOKJCE?id=50&psid=BNMG... 8/10/2008

Vehicle Registration Fee Calculator

Page 1 of 1

Vehicle Registration Fee Calculator
Transaction Date: Type of Calculation: Type of Vehicle: Model Year: Motive Power: Purchase Date: Purchase Price: County: Zip Code: November 08, 2010 New California Vehicle Purchase Automobile 2009 Gas January 01, 2009 $26,900.00 Los Angeles 90045 31.00 22.00 175.00 1.00 1.00 6.00 6.00 8.00 1.00 6.00 1.00 3.00 2,219.00 1.00 $262.00 $2,219.00 $2,481.00

Current Registration: Current California Highway Patrol: Current Vehicle License Fee: Current County Service Authority for Freeway Emergencies Fee: Current Fingerprint ID Fee: Current Smog High Polluter Repair Fee: Original Smog Abatement: Alt Fuel/Tech Smog Fee: Current Auto Theft and/or DUI Crime Deterrence Program: Current Air Quality Management District: Current South Coast Air Basin: Alt Fuel/Tech Reg Fee: Use/Sales Tax: Reflectorized License Plate Fee: Total Registration Fees: Total Use/Sales Tax: Grand Total Registration Fees:

Print Result

See Registration Fees and Smog Abatement/High Polluter Fees for additional information. This is an estimate based on the information provided. Fees may vary depending on the actual vehicle registration. All fees are subject to statutory change.

Conditions of Use | Privacy Policy Copyright © 2007 State of California

https://mv.dmv.ca.gov/FeeCalculatorWeb/newVehicleFees.do

11/8/2010

Vehicle Registration Fee Calculator

Page 1 of 1

Vehicle Registration Fee Calculator
Transaction Date: Type of Calculation: Type of Vehicle: Model Year: Motive Power: Purchase Date: Purchase Price: County: Zip Code: November 08, 2010 New California Vehicle Purchase Automobile 2009 Gas January 01, 2009 $40,000.00 Los Angeles 90045 31.00 22.00 261.00 1.00 1.00 6.00 6.00 8.00 1.00 6.00 1.00 3.00 3,300.00 1.00 $348.00 $3,300.00 $3,648.00

Current Registration: Current California Highway Patrol: Current Vehicle License Fee: Current County Service Authority for Freeway Emergencies Fee: Current Fingerprint ID Fee: Current Smog High Polluter Repair Fee: Original Smog Abatement: Alt Fuel/Tech Smog Fee: Current Auto Theft and/or DUI Crime Deterrence Program: Current Air Quality Management District: Current South Coast Air Basin: Alt Fuel/Tech Reg Fee: Use/Sales Tax: Reflectorized License Plate Fee: Total Registration Fees: Total Use/Sales Tax: Grand Total Registration Fees:

Print Result

See Registration Fees and Smog Abatement/High Polluter Fees for additional information. This is an estimate based on the information provided. Fees may vary depending on the actual vehicle registration. All fees are subject to statutory change.

Conditions of Use | Privacy Policy Copyright © 2007 State of California

https://mv.dmv.ca.gov/FeeCalculatorWeb/newVehicleFees.do

11/8/2010

Welcome to Deluxe Rent-A-Car of LAX

Page 1 of 1

Home Vehicle Fleet

Contact Us Rental Center

Open 24 hours a day, 7 days a week
Location Travel Guide Deals Rental Policies

About

Why Rent from Deluxe?

Testimonials

My Reservations

Travel Agents

Car Rental at LAX | Los Angeles International Airport
LAX's most competitive rates and superior service

Rates and Reservations

1

Location & Dates

2

Vehicle Selection

3

Rate Quote

4

Your Information

5

Complete

Step 3 Confirm your rate quote and click on "Reserve this Vehicle".

Reservation Summary

Dodge Charger SE No Extra LAX Airport Fees

Rate Quote
Rental Rate 1 week @ $ 110.47 Coverage and Extra Charges Energy Recovery Fee Car License Fee Sub Total Taxes and Fees SALES TAX Free Mileage $ 110.47 $ 110.47 $ 4.90 $ 31.71 $ 147.08 $ 14.34 unlimited

Itinerary

change

Pickup Date: Dec 04, 2010 @ 12:00 AM Dropoff Date: Dec 11, 2010 @ 12:00 AM Pickup Location: Los Angeles Airport Dropoff Location: Los Angeles Airport

Dodge Charger

vehicle features

Total Charges
All rates are in USD

$ 161.42

Vehicle Details

change

Vehicle: Dodge Charger SE No Extra LAX Airport Fees Description: Dodge Charger

>> RESERVE THIS VEHICLE Currency Converter 161.42 USD to choose a currency Courtesy of Yahoo Finance

Copyright© 2010 Express Internet Technologies Inc.

Car Rental Reservation System provided by Express Internet Technologies Inc.

Specials and Deals | Rental Policies | Travel Agents | Contact Us Home | About Deluxe | My Reservations | Travel Guide

http://reservations.deluxerentacar.com/rates?action=vehicle_details

11/17/2010

Request for Licensing Information

Page 1 of 1

CALIFORNIA DEPARTMENT OF INSURANCE PRODUCER LICENSING BUREAU

Thank you for your inquiry
Name Email Telephone Number Alternate Telephone Number Licensee Name Subject Of Inquiry License Number SSN or FEIN

Powell, Kevin l theplatinumlife@aol.com 310-259-2240

John Hennessay - Deluxe Rent A Car Netstar RAC Business Entities (Agencies) DBA fictitious names

Comments

I am investigating John Hennessay of Deluxe Rent A Car and Netstar Inc. for various frauds. I was a victim of fraud and forgery and uncovered fraud commited against every customer from 2007 until December 2008 by illegally charging the Airport Cost Recovery Fee due to the Los Angeles World Airport in the amount of 11-17% on upto 1400 vehicles per day. I put up the website http://www.deluxerentacar.info to expose this fraud. During my investigation I was approached by an ex-employee who gave me insight into other forms of fraud commited including insurance fraud. He claims that John Hennessay had the employees charge for insurance that was already covered and did not apply the additional coverage. Further he said that people with credit cards that provided free coverage we told they were not covered and charged for a policy never given. If a claim happened they would just charge it to the credit cards insurance and pocket the fee charged. I am unable to locate any information on their insurance license and seek information to help stop the ongoing fraud

You should be receiving a confirmation email shortly at theplatinumlife@aol.com. Click here to return to CDI website or close browser window.

https://interactive.web.insurance.ca.gov/pli/servlet/PlbwEmailController

11/12/2010

Re: ST20101112_0000000061 Business Entities(Agencies)DBAfictitiousnames

Page 1 of 1

From: To: Subject: Date:

cem@insurance.ca.gov theplatinumlife@aol.com Re: ST20101112_0000000061 Business Entities(Agencies)DBAfictitiousnames Fri, Nov 19, 2010 11:48 am

Please include the following line in all replies. Tracking number: ST20101112_0000000061 Any unlicensed person or entity that is selling insurance product is conducting business illegally. Our department is not aware of your allegations unless you file a fraud complaint which you indicated you were not going to do. Our department must follow legal protocols. We can not open an investigation without a fromal complaint. If you do not wish to file a compaint we can not proceed unless we receive a complaint from someone else. I can not continue to respond to your email as nothing further can legally be done without a complaint. Best Regards Colleen California Department of Insurance Business Entity Section

http://mail.aol.com/32945-111/aol-1/en-us/mail/PrintMessage.aspx

11/19/2010

Re: ST20101112_0000000061 Business Entities (Agencies) DBAfictitious names

Page 1 of 1

From: To: Subject: Date:

cem@insurance.ca.gov theplatinumlife@aol.com Re: ST20101112_0000000061 Business Entities (Agencies) DBAfictitious names Wed, Nov 17, 2010 7:17 am

Please include the following line in all replies. Tracking number: ST20101112_0000000061 The corporate license that was approved to use the name Deluxe Rent-A-Car expired in 2007. Best Regards Colleen California Department of Insurance Business Entity Section

http://mail.aol.com/32945-111/aol-1/en-us/mail/PrintMessage.aspx

11/19/2010

Deluxe Rent A Car Launches ‘Deluxe Reservation Network’ - News - Auto Rental News

Page 1 of 1

Deluxe Rent A Car Launches ‘Deluxe Reservation Network’
May 26, 2010 in Rental Software Deluxe Rent A Car, an independent operator serving the Los Angeles International Airport, has launched the Deluxe Reservation Network to help improve how its affiliate systems operate. "All airport operators want the same thing - more reservations. Our primary goal is to bring reservations to our network associates at an affordable cost and to help with their success as they grow," John Hennessay, president of Deluxe Rent A Car, said. Deluxe also recently signed an agreement to partner with an unnamed provider of Internet reservations. "As we were planning the Deluxe Reservation Network, Deluxe was contacted to join their brand. It was the first time an agreement of this type has been done. This industry leader has great insight into the future of the travel business and wanted Deluxe to be a part of it," Hennessay said. The car rental company also plans to build a nationwide independent parking brand, called "Deluxe Airport Parking," to follow the success of its independent parking operations at LAX. "This is a perfect fit for our travel reservation suppliers to cross-sell for the first time all four revenue sources: airline, hotel, car rental, and now parking. This also opens up opportunities for our car rental network associates to explore the parking business as a huge new revenue source," Hennessay said. Deluxe Rent A Car is now accepting applications for all airports. For information, contact Samantha Combs at (310) 2169250 x230. Tags: airport rentals, independent operator

Copyright 2010 Auto Rental News. All rights reserved.

http://www.autorentalnews.com/News/Print/Story/2010/05/Deluxe-Rent-A-Car-Launches... 11/23/2010

Sign up to vote on this title
UsefulNot useful