, , ylujnw-yk . n-c. ELK G c sep 4, 2013 UNITED STATES DISTRICT COURT SOUTHERN DISTRIG OFFLORIDA tYX7*qITItQI. s .D. 0F #t.A. . MGMt 13-80173-CR-MAR MATTHEW MAN CASE NO. 18U.S.C. j1341 18U.S.C. j1343 18U.S.C. 91957 18U.S.C. j2314 UMTED STATES OF AMERICA, VK JOSEPH PAUL ZADA, Defendant. / INDICTG NT TheCzrand Jul chargesthat: COUNTS 1-21 MAIL FRAUD 1.From atleastasearly asin orabout January 1998, through inoraboutAugust2009, at Palm Beach County, inthe Southem District of Florida, and elsewhere, the defendnnt, JOSEPH PAUL ZADA, did knowingly and with intentto defraud,devise and intend to devise a scheme and artifke to degaudandforobtainingmoneyandpropertybymeans of materiallyfalseandfraudulent pretenses, representationsand prom ises, knowingthat thepretenses, representationsandpromiseswerefalse whenmade. PURPOSE AND OBJECT OF THE SCHEG TO DEFRAUD 2.It was thepurposeandobject of theschemeandartificetodefraudfor thedefendant to Case 9:13-cr-80173-KAM Document 1 Entered on FLSD Docket 09/04/2013 Page 1 of 12
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, , ylujnw-yk . n-c.ELK G c
sep 4, 2013
UNITED STATES DISTRICT COURTSOUTHERN DISTRIG OF FLORIDA tYX7*qITItQI.
s .D. 0F #t.A. . MGMt13-80173-CR-MA R M ATTHEW M A N
9. Once invested, the defendant sought to convince investors to continue to reinvest their
money ratherthan take out alleged profits or gains. In this way, the defendant was able to continually
solicit additional money from investors without having to pay out investment gains and/or
investm ent principal.
10. ln furtherance of the scheme to defraud, the defendant occasionally disbursed money
to investors as a supposed retunz of purported principal and profits. ln reality, the returns paid by the
defendant to the investors cam e from new investm ent rem ittances, and not profits.
1 1 . W hen the ftmds in the defendant's bank accounts were not suftkient to meet requests
from investors who sought return of principal and profits, the defendant lulled investors into a false
sense of security by entering into settlem ent agreements with investors. The defendant also sent
setllement checks to investors despite not having enough money in the defendant's bank accounts
to cover the settlem ent checks.
USE O F THE M AILS
12. On or about the dates specified as to each count below, the defendant, for the purpose
of executing and in furtherance of the aforesaid scheme and artifice to defraud and for obtaining
m oney and property by means of m aterially false and fraudulent pretenses, representations and
promises, did know ingly cause to be delivered by the United States Postal Service or by private or
com mercial interstate canier, according to the directions thereon, such matters and things, as more
particularly described in each count below :
4
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COUNT DATE DESCRIPTION OF M AILING
l August 18, 2009 A cover letter and check in the amount of $5,000mailed by the defendant to G.D.
July 6, 2009 A cover letter and three checks totaling $3,500mailed by the defendant to J.M .G.
3 June 17, 2009 A cover letter and check in the amount of $5,000m ailed by the defendant to G.D .
4 April 30, 2009 A cover letter, two Standstill Agreements and
two settlement checks totaling $8,000,000 mailedby the defendant to R.R. and R.J.D.
April 24, 2009 A cover letter and a settlem ent check in the
amount of $550,000 mailed by the defendant toR.J.N.
6 April 20, 2009 A settlement check in the amount of $5,000,000mailed by the defendant to R.H .
7 April 7, 2009 A check in the amount of $100,000 mailed by thedefendant to R.A .D.
8 April 6, 2009 A cover memo and a check in the amount of
$30,000 mailed by the defendant to J.D.G.
9 M arch 7, 2009 A Standstill Agreement m ailed by the defendant
to R.A .D .
10 M arch 10, 2009 A Standstill Agreement m ailed to S.F.
1 1 February 18, 2009 A cover letter and Standstill Agreement mailed
by the defendant to J.D.G.
12 February 18, 2009 A cover letter and Standstill Agreem ent mailed
by the defendant to J.W .
13 November 25, 2008 A cover memo and a $5,000 check mailed by thedefendant to R.J.N .
14 October 17, 2008 A check in the amount of $100,000 mailed by thedefendant to R.A.D.
15 October 6, 2008 A Release and Prom ise to Cooperate docum ent
mailed to J.R.W .
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COUNT DATE DESCRIPTION OF M AILING
16 M ay 23, 2008 A cover letter and a Release Form mailed by the
defendant to J.C.
17 April 9, 2008 A Satisfaction of Debt and Release and a
settlement check in the amount of $6,000,000mailed by the defendant to J.C.
18 M arch 12, 2008 Two Satisfaction of Debt and Release forms and
two settlement checks totaling $6,000,000 mailedby the defendant to R.R. and R.J.D.
19 Febrtzary 27, 2008 A cover letter and a M oditk ation to Satisfaction
of Debt and Release and a settlement check in the
amotmt of $850,000 mailed by the defendant toJ.W .
20 Febnlary 27, 2008 A cover letter and a M odification of the
Satisfaction of Debt and Release and a settlem ent
check in the amount of $750,000 mailed by thedefendant to J.D.G.
21 January 9, 2008 A cover letter and a check in the am ount of
$128,286 mailed by the defendant to J.M .G.
All in violation of Title 18, United States Code, Section 1341.
COUNTS 22-23
W IRE FR AUD
1. From at least as early as in or about January 1998, through in or about August 2009, at
Palm Beach County, in the Southern District of Florida, and elsewhere, the defendant,
JO SEPH PAUL ZADA,
did knowingly and with intent to defraud devise and intend to devise a scheme and artifice to defraud
and for obtaining m oney and property by means of m aterially false and fraudulent pretenses,
representations and promises, knowing that the pretenses, representations and promises were félse
6
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when nnade.
PURPOSE AND OBJECT OF THE SCHEM E TO DEFM UD
2. It was the purpose and objed of the scheme and artifice to defraud for the defendant to
unlawfully emichhimself bymisappropriatingmoney from investors forhispersonal use andbenefh
by m aking m aterially false representations, and omitting to state m aterial facts, concem ing am ong
other things, the use of investors' ftmds and the profitability of the investments made through the
defendant.
SCH EM E AND ARTIFICE TO DEFRAUD
3. Paragraphs 3 through 1 1 of the M anner and M eans section of Counts 1-2 1 of this
lndictment are re-alleged and incorporated by reference as though fully set forth herein as a
description of the scheme and artifice to defraud.
W IRE COM M UNICATION
4. On or about the dates speciûed as to each count below, the defendant, for the purpose of
executing and in furtherance of the aforesaid scheme and artitice to defraud and for obtaining money
and property by means of materially false and fraudulent pretenses, representations and promises,
did knowingly transm it and cause to be transm itted, by m eans of wire comm unications in interstate
and foreign commerce, certain writings, signs, signals, pictures and sounds, as m ore particularly
described in each count below :
COUNT DATE W IRE CO M M UNICATIO N
22 Septem ber 2, 2008 An email from J.C. to J.W . containing bank
routing information
23 December 24, 2007 A $100,000 wire transfer from the bankaccount of R.H . at Sterling Bank to the bank
account of the defendant at Peoples Barlk
Case 9:13-cr-80173-KAM Document 1 Entered on FLSD Docket 09/04/2013 Page 7 of 12
A1l in violation of Title 18, United States Code, Section 1343.
CO UNTS 24-25
M ONEY LAUNDERING
1. On or about the dates specified below, in Palm Beach County, in the Southern District of
Florida, and elsewhere, the defendant,
JO SEPH PAUL ZADA,
did knowingly engage in a monetary transaction, as specified as to each count below, affecting
interstate and foreign comm erce, by and through a financial institution, in crim inally derived
property of a value greater than $10,000, such property having been derived from a specified
unlawful activity, that is, mail and wire fraud, in violation of Title 18, United States Code, Sections
1341 and 1343:
COUNT DATE M ONETARY TRANSACTION
24 January 3, 2008 A check (#1060) in the amount of $12,500payable to Fishbones drawn on a bank
account of the defendant
25 December 6, 2007 A check (#3885) in the amount of $13,500payable to Sterling Bank drawn on a bank
account of the defendant
A11 in violation of Title 18, United States Code, Section 1 957.
COUNTS 26-27
INTERSTATE TRANSPORTATION OF STO LEN PRO PERTY
1 . On or about the dates specified below, in Palm Beach County, in the Southez.n District of
Florida, and elsewhere, the defendant,
JO SEPH PAUL ZADA,
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Case 9:13-cr-80173-KAM Document 1 Entered on FLSD Docket 09/04/2013 Page 8 of 12
did transport, transmit and transfer, and cause to be transported, transmitted and transferred in
interstate commerce, money of a value of $5,000 or more, as specitied below, that had been taken
by fraud, knowing the money had been taken by fraud:
COUNT DATE M O NEY TRANSFERRED BY FRAUD
26 March 14, 2008 A check (#4229) in the amount of $15,000to the Clerk and Comptroller of Palm
Beach County drawn on a bank account of
the defendant
27 January 14, 2008 A check (#3952) in the amount of $9,000to Braman M otorcars Palm Beach drawn
on a bank account of the defendant
A11 in violation of Title 18, United States Code, Section 23 14.
FO RFEITURE
The allegations contained in Counts 1-27 of this Indictment are hereby realleged and
incorporated by reference for the purpose of alleging forfeitures pursuant to Title 18, United States
Code, Sections 981(a)(1)(A) and (C) and Title 28, United States Code, Section 2461(c).
Upon conviction of the offenses in violation of Title 18, United States Code, Sections
1341, 1343, 1957, and 2314 set forth in Counts 1-27 of this Indictm ent, the defendant, JO SEPH
PAUL ZADA, shall forfeit to the United States of America, pursuant to Title 18, United States
Code, Sections 981(a)(1)(A) and (C) and Title 28, United States Code, Section 2461(c), any
property, real or personal, which constitutes or is derived from proceeds traceable to the offenses.
lf any of the property described above, as a result of any act or om ission
of the defendant:
a. cannot be located upon the exercise of due diligence;
9
Case 9:13-cr-80173-KAM Document 1 Entered on FLSD Docket 09/04/2013 Page 9 of 12
b. has been transferred or sold to, or deposited with, a third party;
has been placed beyond the jurisdiction of the court;
has been substantially diminished in value; or
has been com mingled with other property which cannot be divided without
diftkulty,
d.
the United States of America shall be entitled to forfeiture of substitute property plzrsuant to Title
2 1, United States Code, Section 853(p), as incorporated by Title 28, United States Code, Section
246l(c).
All pursuant to Title 1 8 United States Code, Sections 98 1(a)(1) (A) and (C) and Title 28
United States Code, Section 246 1(c).
A TRUE BILL
.x.-- /
FOREPERSON
Z#
W zW IFREDO A. FERRER
UNITED STATES ATTORNEY
ROLANDO GARCIA
ASSISTANT UN ITED STATES ATTORN EY
10
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UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDA
UNITED STATES OF AMERICA
VS.
JOSEPH PAUL M DADefendants.
I
CASE NO.
CERTIFICATE OF TRIAL ATTO RNEY.
Superseding Case Information:
Court Division: (select One)
Miami Ke W estx w )B FTPFTL
I do hereby certify that:
New Defendantts) Yes No XNumber of New DefendantsTotal number of counts
l have carefully considered the allegations gf the indictmqnt, the number qf defendants, the number ofrobable witnesses and the legal complexlties of the Indlctment/lnformatlon attached hereto.P
2 . I am Mware that the information supplied 9n thij jtatement will be relied upon by the Ju id es of thisCpurt ln Setting their galendars and schedullng crlmlnal trlals underthe mandate of tne Speedy Trial Act,Tltle 28 U.S.C. Sectlon 3161.
Iqterpreter: (Yes 9r NjLIst Ianguage and/or dlalecThis case will take q
Nn
days for the padies to try.
5. Please check appropriate category and type of offense Iisted below:
(Check only one) (Check only one)
0 to 5 days6 to 10 days1 1 to 20 days21 to 60 days61 days and over
6. Has this case been previously filed in this District Coud? (Yes or No) MnIf yes:
Judge: Case No.(Attach copy gf dispositive MrdejHas a complalnt been filed In thls matter? (Yes or No) YpqIf yeq:Maglstrate Case No.
Related Misc:llaneous numbers:Defendantts) ln federal custody as ofDefendantts) In state custody as ofRule 20 from the District of
Is this a potential death penalty case? (Yes or No)
P?ttyMjnorMlsdem.Felony
Does this case or gi inate from a matter pending in the Nodhern Region of the U.S. Attorney's Office priorG03? Yes X Noto October 14, 2
Does this case originate from a matter pending in the Central Region of the U.S. Attorney's Office priorD07? Yes Y Noto September 1, 2
8.
&
ROLANDO GARCIAAS@ISTANT UNITED STATES ATTORNEYFlorlda Bar No./court No. 763012
*penalty Sheetts) attached REV 4/8/08
Case 9:13-cr-80173-KAM Document 1 Entered on FLSD Docket 09/04/2013 Page 11 of 12
UNITED STATES DISTRICT CO URT
SOUTHERN DISTRICT OF FLORIDA
PENALTY SHEET
Defendant's Nam e: JO SEPH PAUL ZADA
Case No:
18 U .S.C. 1341
* M ax-penalty: twenty years' imprisonment. $250.000 fine. five years' supervised release and restitution
Count: 22-23
W ire Fraud
18 U .S.C. 1343
* M ax.penaltv: twentv vears' imprisonmenk $250.000 tine. five years' supervised release and restitution
Count: 24-25
M oney Laundering
18 U.S.C. 1957
* M ax.penalty: ten years' imprisonment. $250.000 fine. three years' supervised release and restitution
Count: 26-27
Interstate Transportation of Stolen Property
18 U.S.C. 2314
* M ax-penalty: ten years' imprisonment. $250.000 fine. three years' supervised release and restitution
*Refers only to possible term of incarceration, does not include possible fines, restitution, special
assessm ents, parole terms, or forfeitures that m ay be applicable.
Case 9:13-cr-80173-KAM Document 1 Entered on FLSD Docket 09/04/2013 Page 12 of 12