IN THE DISTRICT COURT OF THE UNITED STATES For the Western District of New York APRIL 2010 GRAND JURY (Impaneled 04/30/2010) THE UNITED STATES OF AMERICA -vs- INDICTMENT ARNOLD WROBEL a/k/a Jim Palmer Violations: (Counts 1 - 40), MARTIN RHYS JONES a/k/a Martin Reece Title 18, United States Code, a/k/a John Allen Sections 1343, 1349, 1956(a)(2)(A) (Counts 1 - 40), 1956(h), 1957(a) and 2 MONICA ROMASZKO a/k/a Monica Wrobel (40 Counts and 3 Forfeiture (Counts 1 - 40), Allegations) GENE CLARK FOLAND (Counts 1 -31), JEFFREY G. KLEIN (Counts 1 - 34), WALTER TATUM (Count 1), JOEL MARCUS (Count 1), SAAD SHUAIB (Count 1), DAVID COLE (Count 1), RAYMOND MALIZIO (Count 1), KYLE CLAYTON a/k/a Kyle Swift a/k/a Richard Walker a/k/a Kyle McCauley (Count 1), and JAMIE LEE CHURCH a/k/a Charlotte Keys (Count 1) Case 1:12-cr-00125-WMS-HBS Document 1 Filed 04/17/12 Page 1 of 34
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IN THE DISTRICT COURT OF THE UNITED STATES
For the Western District of New York
APRIL 2010 GRAND JURY(Impaneled 04/30/2010)
THE UNITED STATES OF AMERICA
-vs- INDICTMENT
ARNOLD WROBEL a/k/a Jim Palmer Violations:
(Counts 1 - 40),MARTIN RHYS JONES a/k/a Martin Reece Title 18, United States Code,
a/k/a John Allen Sections 1343, 1349, 1956(a)(2)(A) (Counts 1 - 40), 1956(h), 1957(a) and 2
MONICA ROMASZKO a/k/a Monica Wrobel (40 Counts and 3 Forfeiture
(Counts 1 - 40), Allegations)
GENE CLARK FOLAND (Counts 1 -31), JEFFREY G. KLEIN (Counts 1 - 34),WALTER TATUM (Count 1),JOEL MARCUS (Count 1),SAAD SHUAIB (Count 1),DAVID COLE (Count 1),RAYMOND MALIZIO (Count 1),KYLE CLAYTON a/k/a Kyle Swift a/k/a Richard Walker a/k/a Kyle McCauley (Count 1), andJAMIE LEE CHURCH a/k/a Charlotte Keys (Count 1)
Case 1:12-cr-00125-WMS-HBS Document 1 Filed 04/17/12 Page 1 of 34
INTRODUCTORY ALLEGATIONS
At all times relevant to this indictment:
DEFENDANTS AND COCONSPIRATORS
1. The defendant, ARNOLD WROBEL a/k/a Jim Palmer (“WROBEL”),
was a citizen of the United States and he resided in Barcelona,
Spain. WROBEL formerly held various securities licenses within
purpose of executing such scheme and artifice, transmit, and cause
to be transmitted, by means of wire communication in interstate and
foreign commerce, writings, signs and signals, to wit, the
electronic payments and communications described below:
COUNT DATE WIRE COMMUNICATION
2 08/26/08 $6,290 wire (Victor P.)into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada
3 08/26/08 $4,450 wire (Randy D.)into Breckenridgeaccount #-1929 in the WDNY from Bank of NovaScotia in Canada
4 08/29/08 $10,385 wire (Randolf J.)into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada
5 09/04/08 $11,385 wire (Raymond P.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada in Canada
6 09/05/08 $10,140 wire (Victor B.)into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada
7 09/08/08 $60,130 wire (Randolf J.)into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada
8 09/12/08 $99,980 wire (Randolf J.)into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada
9 09/16/08 $5,900 wire (Victor B.) into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada
10 09/16/08 $41,985 wire (Raymond P.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada
11 09/22/08 $92,480 wire (Randolf J.) Into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada
19
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12 09/22/08 $99,980 wire (Randolf J.) into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada
13 09/23/08 $12,450 wire (Randy D.)into Breckenridgeaccount #-1929 in the WDNY from Bank of NovaScotia in Canada
14 09/23/08 $10,700 wire (Gerard B.)into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada
15 09/23/08 $7,990 wire (Victor B.) into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada
16 09/23/08 $10,700 wire (Randy D.)into Breckenridgeaccount #-1929 in the WDNY from Bank of NovaScotia in Canada
17 09/28/08 $6,150 wire (Eldon K.)into Breckenridgeaccount #-1929 in the WDNY from AdvantageCredit Union, Saskatchewan, Canada
18 11/19/08 $16,235 wire (Raymond P.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada in Canada
19 11/24/08 $6,435 wire (Betty Y.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada in Canada
20 12/03/08 $3,450 wire (Ken J.)into Breckenridge account#-1929 in the WDNY from Bank of Nova Scotia inCanada
21 12/08/08 $29,985 wire (Raymond P.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada in Canada
22 03/09/09 $7,697 wire (Richard R.) into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England
23 05/01/09 $5,490 wire (Kevan T.) into Breckenridgeaccount #-1929 in the WDNY from England
24 05/12/09 $14,870 wire (Thomas B.)into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England
20
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25 05/14/09 $3,730 wire (Aldo M.)into Breckenridge account#-1929 in the WDNY from Barclays Bank, UK
26 06/10/09 $7,225 wire (Richard R.) into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England
27 06/18/09 $9980 wire (Aldo M.)into Breckenridge account#-1929 in the WDNY from Barclays Bank, UK
28 06/30/09 $28,480 wire (Aldo M.)into Breckenridgeaccount #-1929 in the WDNY from Barclays Bank,UK
29 07/08/09 $3,975 wire (David H.) wired into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England
30 07/29/09 $24,980 wire (Lawrence P.) intoBreckenridge account #-1929 in the WDNY fromBarclays Bank, England
All in violation of Title 18, United States Code, Sections
1343 and 2.
COUNT 31(Conspiracy to Engage in Money Laundering)
The Grand Jury Further Charges That:
1. Paragraphs 1-18 of the Introductory Allegations are
incorporated as if fully set forth herein.
A. OBJECTS OF THE CONSPIRACY
2. From in or about February 2006, through in or about July
2009, in the Western District of New York and elsewhere, the
defendants, ARNOLD WROBEL a/k/a Jim Palmer, MARTIN RHYS JONES a/k/a
21
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Martin Reece a/k/a John Allen, MONICA ROMASZKO a/k/a Monica Wrobel,
GENE CLARK FOLAND, and JEFFREY G. KLEIN, did knowingly, willfully
and unlawfully combine, conspire and agree together and with others
known and unknown to the Grand Jury to commit the following
offenses:
(a) To knowingly transport, transmit and transfer monetary
instruments and funds, from a place in the United States to a place
outside the United States, with the intent to promote the carrying
on of specified unlawful activity, that is, wire fraud in violation
of Title 18, United States Code, Section 1343, in violation of
Title 18, United States Code, Section 1956(a)(2)(A); and
(b) To knowingly engage in monetary transactions, that is,
the deposit, withdrawal and transfer of funds and monetary
instruments, in and affecting interstate and foreign commerce, in
criminally derived property of a value greater than $10,000, such
property having been derived from specified unlawful activity,
namely, wire fraud in violation of Title 18, United States Code,
Section 1343, and knowing that the funds and monetary instruments
were derived from a criminal offense, in violation of Title 18,
United States Code, Section 1957(a).
22
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B. MEANS BY WHICH THE OBJECTS OF THE CONSPIRACY WERE TO BEACCOMPLISHED
The objects of the conspiracy were to be accomplished in
substance as follows:
3. Beginning in February 2006, WROBEL and JONES established
corporate identities and corporate bank accounts at La Caixa in
Barcelona, Spain.
4. On dates unknown, WROBEL established bank accounts in his
own name and in other names, at banks outside the United States,
including at La Caixa, Duetsche Bank and Zuercher Bank. WROBEL
also established at least one financial account in the name of
Harley Holdings.
5. On dates unknown, JONES established bank accounts in his
own name and in other names, at banks outside the United States,
including at La Caixa, Duetsche Bank and Abbey International in the
Channel Islands.
6. Beginning in June 2006, WROBEL and JONES caused ROMASZKO
to establish corporate entities and to open up financial accounts
in the United States, Canada and in Bermuda, for the purpose of
depositing the proceeds of wire fraud, that is, a boiler room
23
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scheme which sold worthless stocks to investors worldwide as set
forth in Counts 1 through 30 above, which counts are hereby
repeated and incorporated here by reference.
7. Once investors wired their money, as directed by the
defendants, to one of the accounts in Canada, the United States or
Bermuda, WROBEL and JONES provided direction, by email or other
communication, to ROMASZKO to transfer funds to various other
accounts.
8. Pursuant to instructions received by ROMASZKO from
WROBEL, JONES and FOLAND, the fraud proceeds received were wired to
the boiler room employees, to the transfer agents who were creating
stock certificates to send to the investors, to companies providing
the lead lists (the names of the prospective investors), and to
KLEIN, who, with FOLAND, TATUM, and MARCUS was being paid for
procuring the stock which was sold by the boiler room.
9. KLEIN, who received funds from the accounts in Canada and
in the United States into his bank account in Florida, transferred
money to FOLAND, TATUM, and MARCUS for their share of the fraud
proceeds.
24
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10. Pursuant to instructions received by ROMASZKO from WROBEL
and JONES, the fraud proceeds received were wired to the corporate
bank accounts for Quick Meds, El Trebol Magico and Subscription
Billing Solutions at La Caixa. Funds from those accounts were
used to pay for the expenses of operating the office spaces for the
boiler room in Barcelona, including rent, internet service and
telephone service.
11. Pursuant to instructions received by ROMASZKO from WROBEL
and JONES, significant portions of the fraud proceeds received were
sent to various personal accounts maintained by WROBEL and JONES
outside the United States.
All in violation of Title 18, United States Code, Section
1956(h).
COUNTS 32 - 34 (Money Laundering)
The Grand Jury Further Charges That:
1. The allegations contained in Count 1 of this indictment,
including paragraphs 1-18 of the Introductory Allegations are
incorporated by reference as if fully set forth below.
25
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2. On or about the dates set forth below, in the Western
District of New York and elsewhere, the defendants, ARNOLD WROBEL
a/k/a Jim Palmer, MARTIN RHYS JONES a/k/a Martin Reece a/k/a John
Allen, MONICA ROMASZKO a/k/a Monica Wrobel, and JEFFREY G. KLEIN
did knowingly engage, and attempt to engage, in monetary
transactions, that is, the deposit, withdrawal and transfer of
funds and monetary instruments, in and affecting interstate and
foreign commerce, such monetary transactions described in each
count listed below, in criminally derived property of a value
greater than $10,000, such property having been derived from
specified unlawful activity, namely, wire fraud in violation of
Title 18, United States Code, Section 1343, and knowing that the
funds and monetary instruments were derived from a criminal
offense.
COUNT DATE MONETARY TRANSACTION
32 09/22/08 $100,000 wire from Bank of America -1929 (Breckenridge Administrative Providers) toKLEIN at Wachovia Bank, Florida
33 09/23/08 $100,000 wire from Bank of America - 1929(Breckenridge Administrative Providers) toKLEIN at Wachovia Bank, Florida
34 07/31/09 $14,000 wire from Bank of America - 1929(Breckenridge Administrative Providers) toKLEIN at Wachovia Bank, Florida
All in violation of Title 18, United States Codes, Sections
1957(a) and 2.
26
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COUNTS 35 THROUGH 40 (Money Laundering)
The Grand Jury Further Charges:
1. The allegations contained in Count 1 of this indictment
are incorporated by reference as if fully set forth below.
2. On or about the dates set forth below, in the Western
District of New York and elsewhere, the defendants, ARNOLD WROBEL
a/k/a Jim Palmer, MARTIN RHYS JONES a/k/a Martin Reece a/k/a John
Allen, and MONICA ROMASZKO a/k/a Monica Wrobel, did knowingly
transport, transmit and transfer, and attempt to transport,
transmit and transfer, monetary instruments and funds, as described
in each count listed below, from a place in the United States to a
place outside the United States, with the intent to promote the
carrying on of specified unlawful activity, that is, wire fraud in
violation of Title 18, United States Code, Section 1343.
COUNT DATE MONETARY TRANSACTION
35 09/15/08 $120,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa in Barcelona, Spain
36 09/23/08 $125,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa in Barcelona, Spain
27
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37 10/01/08 $41,000 wire from Bank of America -1929(Breckenridge Administrative Providers) toSubscription Billing Services SL account -9905at La Caixa, Barcelona, Spain
38 11/24/08 $16,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa,Barcelona, Spain
39 12/08/08 $20,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa,Barcelona, Spain
40 12/09/08 $30,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa,Barcelona, Spain
All in violation of Title 18, United States Code, Sections
1956(a)(2)(A) and 2.
FIRST FORFEITURE ALLEGATION(Conspiracy)
The Grand Jury Alleges That:
Upon the conviction on Count 1 of the Indictment, the
defendants, ARNOLD WROBEL a/k/a Jim Palmer, MARTIN RHYS JONES a/k/a
Martin Reece a/k/a John Allen, MONICA ROMASZKO a/k/a Monica Wrobel,
GENE CLARK FOLAND, JEFFREY G. KLEIN, WALTER TATUM, JOEL MARCUS,
SAAD SHUAIB, DAVID COLE, RAYMOND MALIZIO, KYLE CLAYTON a/k/a Kyle
Swift a/k/a Richard Walker a/k/a Kyle McCauley, and JAMIE LEE
CHURCH a/k/a Charlotte Keys, and each of them joint and severally
28
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with each other, shall forfeit to the United States any and all
property constituting and derived from any proceeds obtained,
directly and indirectly, as a result of such violations and any and
all property used, and intended to be used, in any manner and part,
to commit and to facilitate the commission of such violations, and
determined to total, but not limited to, the following amount:
FIVE MILLION ($5,000,000.00) DOLLARS IN UNITED STATES CURRENCY.
SUBSTITUTE ASSETS
If any of the property described in this section, as a result
of any act or omission of the defendant;
1. cannot be located upon the exercise of due diligence;
2. has been transferred or sold to, or deposited with, a third party;
3. has been placed beyond the jurisdiction of the court;
4. has been substantially diminished in value; or
5. has been commingled with other property which cannot be divided without difficulty;
the court shall order the forfeiture of any other property of the
defendants up to the value of the above proceeds, including but not
limited to the following:
29
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As to Defendant GENE CLARK FOLAND:
REAL PROPERTY:
5060 NE 23rd Terrace, Lighthouse Point, Florida, as described in the Broward County Clerk’s office, Book 28913, Page 563.
As to Defendant JEFFREY G. KLEIN:
REAL PROPERTY:
10337 Parkstone Way, Boca Raton, Florida, as described in the Palm Beach County Clerk’s office, Book 22199, Page 1124.
MOTOR VEHICLES:
One red 2007 Porsche Cayman, VIN: WP0AB29807U780409.
One white 2007 Hummer, VIN: 5GTDN13E478248823.
One blue 2007 Volvo, VIN: YV1RS592672609542.
As to Defendant JOEL MARCUS:
REAL PROPERTY:
10579 Stonebridge Blvd, Boca Raton, Florida, as described in the Palm Beach County Clerk’s office, Book 24176, Page 0962676 West Prospect Road (APN 49-42-22-08-0321), Oakland Park, Florida, as described in the Broward County Clerk’s office, Book 46050, Page 342.
676 West Prospect Road (APN 49-42-22-08-0360), Oakland Park, Florida, as described in the Broward County Clerk’s office, Book 46050, Page 342.
MOTOR VEHICLES:
One 2010 Mercedes Benz E350, VIN: WDDHF5GB7AA221490.
One 2009 Buick Enclave, VIN: 5GAER23D29J137598.
30
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WATERCRAFT:
One 2004, 35 foot Contender, 600 Horsepower, VS Hull #JDJ35358G404.
All pursuant to Title 18, United States Code, Section
981(a)(1)(C), Title 28, United States Code, Section 2461, and Title
21, United States Code, Section 853(p).
SECOND FORFEITURE ALLEGATION(Wire Fraud)
The Grand Jury Further Alleges That:
As a result of their convictions from Counts 2 through 30 of
the Indictment, the defendants, ARNOLD WROBEL a/k/a Jim Palmer,
MARTIN RHYS JONES a/k/a Martin Reece a/k/a John Allen, MONICA
ROMASZKO a/k/a Monica Wrobel, GENE CLARK FOLAND and JEFFREY G.
KLEIN, shall forfeit to the United States any property, real or
personal, which constitutes or was derived from, or traceable to
the gross proceeds and any and all property used or intended to be
used to commit, to facilitate, or to promote the commission of such
offense as referenced in each count of conviction.
SUBSTITUTE ASSETS
If any of the property described in this section, as a result
of any act or omission of the defendant;
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1. cannot be located upon the exercise of due diligence;
2. has been transferred or sold to, or deposited with, a third party;
3. has been placed beyond the jurisdiction of the court;
4. has been substantially diminished in value; or
5. has been commingled with other property which cannot be divided without difficulty;
the court shall order the forfeiture of any other property of the
defendant up to the value of the above property, including but not
limited to the following:
Those specific items specifically identified and incorporated
as fully set forth in the First Forfeiture Allegation above.
All pursuant to Title 18, United States Code, Sections
981(a)(1)(C), 982(a)(2)(A), 982(a)(8)(A), 982(a)(8)(B) and
982(b)(1), Title 21, United States Code, Section 853(p), and Title
28, United States Code, Section 2461(c).
THIRD FORFEITURE ALLEGATION(Money Laundering)
The Grand Jury Further Alleges That:
As a result of their convictions from Counts 31 through 40 of
the Indictment, the defendants ARNOLD WROBEL a/k/a Jim Palmer,
32
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MARTIN RHYS JONES a/k/a Martin Reece a/k/a John Allen, MONICA
ROMASZKO a/k/a Monica Wrobel, GENE CLARK FOLAND and JEFFREY G.
KLEIN, shall forfeit to the United States, any property, real or
personal, involved in the offense of conviction or any property
traceable to such property, as pertaining to each count of
conviction.
SUBSTITUTE ASSETS
If any of the property described in this section, as a result
of any act or omission of the defendant;
1. cannot be located upon the exercise of due diligence;
2. has been transferred or sold to, or deposited with, a third party;
3. has been placed beyond the jurisdiction of the court;
4. has been substantially diminished in value; or
5. has been commingled with other property which cannot be divided without difficulty;
the court shall order the forfeiture of any other property of the
defendant up to the value of the above property including but not
limited to the following:
Those specific items specifically identified and incorporated
as fully set forth in the First Forfeiture Allegation above.
33
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All pursuant to Title 18, United States Code, Sections
982(a)(1) and 982(b)(1), and Title 21, United States Code, Section
853(p).
DATED: Buffalo, New York, April 17, 2012.
WILLIAM J. HOCHUL, JR.United States Attorney
BY: S/GRETCHEN L. WYLEGALA GRETCHEN L. WYLEGALAAssistant U.S. AttorneyUnited States Attorney's OfficeWestern District of New York138 Delaware AvenueBuffalo, New York 14202(716) 843-5700 ext. 822 [email protected]
A TRUE BILL:
S/FOREPERSON FOREPERSON
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