The mastermind of a $35m fraud who was caught fleeing to Mexico with a stash of gold bars once threatened a spa worker then told cops: ‘I’m a billionaire… this is going to cost you.’
Justin Costello, 42, launched the bizarre rant against officers who detained him for harassing staff at the luxury spa in Washington State in 2019 – several years before his arrest on fraud charges, it has emerged.
Costello is currently in custody for allegedly tricking investors with false claims that he was a billionaire, a Harvard grad and an Iraq War vet.
Details of his earlier brush with the law have surfaced along with a cringeworthy yearbook photo from 1999 with the quote: ‘It’s easy to be someone you’re not, but hard to be yourself.’
Costello, who is facing 25 counts of wire and securities fraud, was arrested at Salish Lodge & Spa in Snoqualmie, Washington, on September 15, 2019 after staff told police he was causing a drunken disturbance.
Justin Costello’s 1999 yearbook photo included the quote: ‘It’s easy to be someone you’re not.’
Prosecutors claim Costello tricked businesses and investors into believing he was a billionaire
He was previously arrested at the luxury Salish Lodge and Spa (piuctured) for threatening staff
An FBI SWAT team captured him fleeing to Mexico with six gold bars and stacks of cash
Police arrived at 10.30pm after staff reported ‘a drunk male in front of the business being disruptive and verbal with employees’ and ‘threatening a valet driver’.
Costello had allegedly screamed profanities, threatened his girlfriend’s sister, then grabbed the valet driver and threatened to send his ‘boys’ after the worker, according to a police report obtained by CNBC.
Staff were convinced he was a ‘billionaire from Bellevue’, a city near Seattle, and so could follow through on his threats.
His ranting continued after police arrived, when he told officers he was ‘a really rich man… a billionaire’ and ‘you messed with the wrong dude’.
Costello allegedly approached one officer with ‘clenched fists’ and ignored three warnings that he’d be tasered.
When he was eventually cuffed, Costello told police: ‘I’m going to civilly hit you in the f***ing ass.
‘This is going to cost you brother, a lot of money.
‘Bro, take these handcuffs off, so I can kick your ass. I’m going to own you, motherf***er.’
Following his arrest at the spa (pictured), Costello told cops they ‘messed with the wrong guy’
Costello’s FBI wanted poster after he went on the run in September following the $35m fraud
He was initially booked at the King County Jail on a felony charge of intimidating a public servant, but later charged with obstruction and two counts of harassment.
Costello later made an Alford plea, which means he didn’t admit guilt but accepted prosecutors had enough evidence to convict him.
He was ordered to complete 40 hours of community service, avoid consuming alcohol and drugs for a year, and banned from contact witnesses or the lodge.
Prosecuting attorney Lynn Moberly told CNBC that even following his arrest, Costello continued to claim he was a billionaire with influence.
She said Costello’s attorney told her he could ‘afford to pay off’ the witnesses and was a ‘Harvard grad’ who was ‘involved in the marijuana business’.
Costello was arrested on the current fraud charges on October 4.
Justin Costello, 42, was arrested on October 4 after going on the run following his indictment
Costello was seized in El Cajon, California, just an hour away from the border with Mexico
He was captured by an FBI SWAT team an hour from Mexico’s border with six gold bars worth $12,000, Mexican pesos worth $10,000 and a slew of banking cards and checkbook.
At a court hearing days later, prosecutors asked a California federal judge to hold Costello in prison without bail in order to put an end to his criminal career.
‘Mr Costello allegedly told many tall tales to convince victims to invest millions of dollars – money he then used for his own benefit,’ said US Attorney Nick Brown.
‘In a complex scheme involving shell companies, penny stocks, and financial services for marijuana businesses, Mr Costello used Twitter, press releases, securities filings, and claims of great wealth to paint a picture of fabulous financial success.
‘In truth that picture was a mirage.’
Costello, of Las Vegas, faced a 25-count indictment in Washington State charging him with wire and securities fraud that victimized marijuana businesses, as well as private and public investors.
Costello used $42,000 from investors for James Bond-themed wedding with Katrina Rosseini
Costello allegedly claimed he was a Harvard MBA, special ops soldier wounded during two tours in Iraq, a Wall Street investor with 14 years of experience, and the owner of a private equity and hedge fund with $1 billion in assets under management.
One wealthy couple handed over $2 million for shares of the companies Costello controlled, and gave him direct access to their trading account worth $4 million.
Through his false identities, prosecutors said Costello duped 29 investors, who lost $6 million.
Costello then allegedly produced 10 press releases to indicate that this company was expanding and moving on to purchasing other companies to lure investors.
In all, about 7,500 investors lost a cumulative $25 million after investing in Costello’s stock.
At the same time, prosecutors said Costello engaged in illegal pump-and-dump activities, making $576,466 through the scheme.
Prosecutors also noted that Costello used at least $42,000 of the stolen funds to pay for his wedding, which included James Bond-themed cake and ice sculpture.
Costello faces up to 40 years in prison along with $5,250,000 in fines, or up to twice the gain he made off from the victims.
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