Kapadia Indictment

8/9/2019 Kapadia Indictment

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...-ffiffifftfr"NSEALEDT]NITEDSTATESNITEDNITED STATESTATES DISTRICTISTRICTISTRICT COURTOURTOURT 'JUL 08200&8200&ul0s9000SOUTHERNOUTHERNOUTHERN DISTRICTISTRICTISTRICT OFFF TEXASEXASEXAS1qlot lJUL

COIIPTJS DryISIONHRISTIORPUSORPUS CHRISTIHRISTI DIVISIONIVISION cr. offCourtourtrarkrtof Gout

T,JNITEDTATESNITEDNITED STATESTATES OFFF AMERICAMERICAMERICA §$§$§$ CRIMINALRIMINALRIMINAL NUMBER:UMBER:UMBER: C-Q5-356-S05€6-s... C-05-356-S§$

ABDIJLREHIy{ANDAWOOD §BDULBDUL REHMANEHMAN DAAWOODOOD I .FILEDoro SEALEDEALEDFILED ASSs sEALEDABDIJL SHAKIRBDULBDUL SHAKIRHAKIR MEMONEMONBMoN § -

ASLAMSLAMSLAMISMAELSMAEL KAPADIAAPADIA §$SMAEL .KAPADIA§$§$

ANEESNEES AKHTARKHTAR §ffiANffiAN §$KHALIDHALIDHALID ZIAIAIA SIDDIQUIIDDIQUIIDDIQUI §$MOHAMIVIADSHAHID·SIDDIQUrHAHTDSIDDTQUI §

$OHAMMADOHAMMAD SHAHID-SIDDIQUr

SYRD cUI,lA,I\dMOHAMIy{AD §YEDYED GULAMULAM MOHAMMADOHAMMAD $§$§$

$L § . SAIRAENNIFERENNIFER SAIRAAIRA §YDENHAMYDENHAM §$ENMFER SYDBNHAI\,!

§$'

].1TH REDACTEDEDACTEDEDACTED1TH1TH.

SUPERSEDTNI(IUPERSEDINGUPERSEDING INDICTMENTNDICTMENTIDI9"I3\{ENT

rTMCNAXUruRY TTIAT:HEHE GRANDRAND CHARGESURYURY CHARGESHARGES THAT:HAT: .

COUNTQNEOUNIONE(Conspiraoyo t8 1956(h))ommitConspiracytbConspiracytb Commitommit Laundering,oneyoney Laundering,aundering, U.S.C.,88 U.S.C.,.S.C., § 1956(h)onoy $ lgid(h)

INTRODUCTIONNTRODUCTIONNTRODUCTION

TMES h{ATERTALTOTHISATERlALTTT ALLLLLL TIMESIMES MATERIAL TOO INDICTMENT:illSillS INDICTMENT:NDICTMENT:

I. ,SBA")Administution agercyhe.. Thehe Smallmallmall Businessusinessusiness (hereafterdministrationdministration (hereafterhereafter wasSBN')SBN') wasas annnof

gencygency off

thehehe

Unitednitednited

gowmmente.stablished thnough SmaIl Ast(li seq.ybongress ttretatestatestates governmentovernment establishedstablished byy Congressongress throughhrough Smallhehe Small Businessusinessusiness U.S.C.1515 U.S.C..S.C. 631ec.ec. 63131

toprovide sssistffice brxiness€.tttseq.),eq.),eq.), too financialroviderovide financialinancial tossistancessistance tooqualifiedualifiedualifiedsmallmallmall businesses.usinesses.




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Programn rcpayment

linancial percsntage

2.., Thehehe SBABABA Loan7(a)7(a) Loanoan Guarantyuarantyuaranty authorizedrogram"rogram" authorizeduthorized theSBAheSBA{a) theSBAtooo guaranteeuaranteeuarantee repaymentepayment

tooo a institutioninancialinancial institutionnstitution offfa certainertainertain ofercentageercentage offa loanoanoanmadeadeade byyy thathathat financialinancialinancial institutionnstitutionnstitution tooo

smallligibleligible smallmall businesses.usinesses.usinesses.ligibte

CONSPIRACYHEHE CONSPIRACYONSPIRACYrrE

oneginningeginning onn or-r- Augustboutbout Augustugust 10,0,0, 1999,999,999, andndnd continuingontinuingontinuing tooo onnn orrr aboutboutbout Aprilprilpril inf2oo6,f2oo6, inneginniag orabout of 2006,

Southernhehe Southernouthern Districtistrict off andexasexas andnd defendants,lsewhere,lsewhere, defendants,efendants,hs DishictofTexas elsswhere,

ABDULBDULBDUL REHMANEHMAN DAAWOOD,OOD,EHh{ANDAWOOD,ABDULBDUL SHAKIRHAKIR MEMON,EMON,ASLAMSLAM ISMAELSMAEL KAPADIAAPADIAABD1JLSIIAKIRMEMON,

. . ••• . '' ••• r.... ;'\'\

KHALIDHALIDHALID SIDDIQUI,IAIA SIDDIQUI,IDDIQUI,IAMOHAMMADOHAMMADOHAMMAD SIDDIQUI,HAHIDHAHID SIDDIQUI,IDDIQUI,I{AHID

SYEDYEDYED GULAMULAMULAM MOHAMMAD,OHAMMAD,OIIAMlvfllD,GHOUSEYEDYED GHOUSEHOUSE MOHIUDDIN,OHIUDDIN,ruD MOHruDDIN

KAMALAMAL KHAN,HMADHMAD KHAN,HAN,AMALAHMADJENNIFERENNIFERENNIFER SYDENHAM,AlRAAlRA SYDENHAM,YDENHAM, andndndAIRA

dididid knowinglynowinglynowingly conspireonspireonspire andndnd agreegree withogether,ogether, withith eachachach other,ther,ther, andndnd withithith othersthersthers knownnownnown andndndgreetogethcr,

tonknownnknown too thehehe jury,randrand jury,ury, tooo andonductonduct andnd attemptttemptttempt tooo financialonductonduct financialinancial transactionsransactionsransactions affectingffectingffectingnknovr'n gend sonduct conduot

interstatenterstatenterstate commerce,nd-foreignnd-foreign commerce,ommerce, thenhenhenwellell thatnowingnowing thathat thehehe transactionsinancialinancial transactionsransactions involvednvolvednvolved thehehendforeign wcll knorving finanoial

proceedsroceedsroceeds offfsomeomeome formorm offfunlawfulnlawful thatctivity,ctivity, thathat is,s,s, wireireire andraudraud andnd bankankank fraud,raud,raud, whichhichhich property"roperty"onn unlauniactivity, fiaud property'

involvednvolvednvolved innn thehehe financialinancialinancial transactionsransactionsransactions representedepresentedepresented thehehe proceedsroceedsroceeds offfspecifiedpecifiedpecified activity,nlawfulnlawful activity,ctivity, thathathatnlavnful

is,wire qndbankank (l)rauds,wires,wire fraudraud hank fraudraudraud withithith the1)1) thehe intentntentntent tooo promoteromoteromote thehehe carryingarryingarrying onnn offf thehehe specifiedpecifiedpecified

unlawfulnlawfulnlawful activity;ctivity;ctivity; namelyamelyamely wireireire fraudraudraud andndnd bankankank fraud;raud;raud; andndnd (2)2)2) knowingnowingnowing thehathat thehe transactionsransactionsransactions wereerebat werc

designcd disguisi souree, contrdlnesignedesigned inn wholeholehole orrr innn partartart tooo theisguiseisguise thehe nature,ature,ature, location,ocation,ocation, ownership,ource,ource, ownership,wnership, andndnd ofontrolontrol off

thehehe proceedsroceedsroceeds offf thehehe saidaidaid specifiedpecifiedpecified activity,nlawfulnlawful activity,ctivity, innn violationiolationiolation offf Titleitleitle 18,8,8, StatesnItednIted Statestates Code,ode,ode,

2

unlarvfirl United




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1956(aXl);956(a)(1);ectionectionection 1956(a)(I); andndnd tooo knowinglynowinglynowingly engagengagengage orrr attemptttemptttempt tooo engagengagengage innn monetaryonetaryonetary transactionsransactionsransactions innn

criminallyriminallyriminally derivederivederived propertyropertyroperty valuefafa valuealue greaterreaterreater thanhanhan $10,00010,00010,000 whichhichhich derivedasas derivederived fromromrom specifiedpecifiedpecifiedf a lvas

activitynlawfulnlawful activityctivity innn violationiolationiolation offf

18,itleitle 18,8, Unitednited Statestates 1957.ode,.Sectionode,.Section 1957.957.nla$rful ritle unitedstatescode,.section

OBJECTBJECTBJECT OFF CONSPIRACYONSPIRACYr CONSPTRAQy

Thehehe ofbjectbject off thehehe conspiracyonspiracyonspiracy wasasas fororor thehehe defendantsefendantsefendants tooo transferransferransfer obtainedraudulentlyraudulently obtainedbtained loanoanoanbjeot ftaudulently

cachroceedsroceedsroceeds betweenetweenetween andndnd amongmongmong otherachach otherther fororor theirheirheir personalersonalersonal benefit.enefit.enefit.

OYERTACTSVERTVERT ACTSCTS

Wilh ectsheithith thehe foregoingoregoingoregoing objectsbjectsbjects andndnd othertherther objectsbjectsbjects innn view,iew,iew, thehehe followingollowingollowing overtvertvert containedctscts containedontained

innn Countsountsounts Twowowo Fivehroughhrough Fiveive wereereere committedommittedommitted byyy thehehe defendantsefendantsefendants andndnd theirheir ino-conspiratorso-conspirators innbrough thie.iro-conspiratoii

Southemurtheranceurtheranceurtherance offf thehehe conspiracyonspiracyonspiracy innn thehehe Districtouthernouthern Districtistrict offfTexasexasexas andndnd elsewhere.lsewhere.lsewhere.

Allllll innn violationiolationiolation offfTitleitleitle 18,8,8, Unitednitednited Statestatestates Code,ode,ode, Sectionectionection 1956(h).956(h).95d(h).

qorrNTTwoQUNTTWOQUNTTWO(ConspiracyConspiracyConspiracy tooo Commitommitommit Wireireire Fraud,raud,raud, 188 U.S.C.,.S.C., 371§§ 37171 andndnd 1343)343)343)


l8 U.S,C.,$g

Loan:hehehe Investmentranusranus Investmentnvestment LOan:... Uraqtl$ l,oan;

l. Loinmall.. Smallmall Businessusinessusiness Sourceminmin Sourceource Inc.nc.nc. ("SBLS"),"SBLS"),"SBLS"), unindictednindictednindicted herein,erein,erein, wasasas a lendingendingendingcorporationorporationorporation locatedocatedocated innn Houston,ouston,ouston, Texas,exas,exas, thathathat participatedarticipatedarticipated asss annn approvedpprovedpproved lenderenderender innn thehetre

OuarantyBABABA 7(a)(a)(a) Loanoanoan Program.uarantyuaranty Program.rogram.

nUranus2... Investments Loan" usodof $675,000, Junb14,2000, unlndioted

2.' Thehehe "UranusUranus Inveshnentsnvcstments asoan,"oan," ass thctermhehe termerm isss insedsed inn thiSlndictment,hishis refersndictment,ndictment, refersefers tooo a loanoanoanmadef$675,000,f$675,000, madeade onnn orrr aboutboutbout Juneune to4,2000,4,2000, too Uranusranusranus Investments,nvestments,nvestments, Inc.,nc.,nc., unindictednindicted

herein,erein,erein, byyy SBLS,BLS,BLS, fororor whichhichhich loan,oan,oan, thehehe SBABABA guaranteeduaranteeduaranteed repaymentepaymentepayment tooo SBLSBLSBLS fororor uppp tooo 75%5%SYooftlref thefthe loanoanoan amount.mount.mount.

KHAN *as... ANEESNEESNEES AKHTARKHTARKHTAR defendant,HAN,HAN, defendant,efendant, formerlyasas formerlyormerly a Viceiceice Presidentresidentresident andndnd BusinessusinessusinessOfficcrevelopmentevelopmentevelopment forfficerfficer foror SBLS.BLS.BLS.

' 4... ASLAMSLAMSLAM ISMAELSMAELSMAELKAPADIA,APADIA,APADIA, defendant,efendant,efendant, wasasas a loanoanoan brokerrokerrokerwhohoho preparedreparedrepared theheheSBABABAdoouments Irivestmentsoanoanoanapplicationpplicationpplication andndnd supportingupportingupporting forocumentsocuments foror Uranusranus hiveshnents Incnc ...

3

uranusLivestnentsnc,.




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defendant,efendant,efendant, wasasas annn ownerndisclosedndisclosed ownerwner offf Uranusranusranus

Investmentsnvestments Inc.,nc., a Texasexas corporatIon.orporatIon.

5.. rmdisclosed

6.. andnd REHMANBDULBDUL REHMANEHMAN DAAWOOD,OOD, defendants,efendants,BDIJL DAWOOD,defendauts,

operatedperated Desi,esi, Inc.,nc., a Texasexas Corporation,orporation, herein,nindictednindicted herein,erein, whichhichhich corporationorporationorporation soldoldold thehehenindistedOdemdemdem Truckstopruckstopruckstop gasasas stationtationtation tooo Uranusranusranus Inc.nvestmentsnvestments Inc.nc.nvestrnents

B... . Thehehe Gordonordon QuicK Foodoodood Loan:oan:oaniOuick'ordonOuick

l. Businessmallmall Businessusiness Loanoanoan Sourceourceource Inc.nc.nc. (IISBLS") wasasas a lendingendingending corporationorporationorporation locatedocatedocated in_.1. Smatl ("SBLS"SBLS")l) innHouston,ouston,ouston, Texas,exas,exas, whichhichhich participatedarticipatedarticipated asss annn approvedpprovedpproved lenderenderender innn thehehe 7(a)BABA 7(a)(a) Loanoanoan

Guarantyuarantyuaranty Program.rogram.rogram.$BA

2... ANEESNEESNEES AKHTARKHTARKHTAR KHAN,HAN,HAN, defendant,efendant,efendant, wasasas formerlyormerlyormerly a Viceiceice andresideptresidept andnd Businessusinessreside$t BusinsssSBLS,evelopmentevelopmentevelopment Officerfficerfficer fororor SBLS.BLS.

3.·. IlGordoniGordonQuiok Loan, II Indiptmenl.- Thehehe "Gordon Fooduickuick Foodood Loan,"oan," asss thehehe termermerm isss usedsedsed innn thishishis refersndictment,ndictment, refersefers tooo a loanoanoanofff made460,000,460,000, madeade onnn orrr aboutboutbout Augustugustugust 10,0, 2000,000, byyy SBLSBLSBLS tooo defendantefendantefendant KAMALAMALAMAL460,000 10,2000,AHMADHMADHMAD KHAN,HAN,HAN, fororor loanhichhich loanoan thehehe SBABABA guaranteeduaranteeduaranteed repaymentepaymentepayment tooo SBLSBLSBLS fororor uppp too 75%5%offf thehehe loanoanoan amount.mount.mount.

whish to75%

4... Defendantefendantefendant KAMALAMAL AHMADHMAD KHANHAN contrarninatednrchasedrchased ann environmentallynvironmentallynvironmentally contaminatedontaminatedgasasas stationtationtation attt Texasexasexas (lithe Gordonordonordon Quickuickuick Food").ood")."the"thb Foodo).

C... Thehehe R.S..S. Sypennarket Loan:oan:oan:.$.,.$UpennarketUPermarket

unindicted.. Loanusinessusiness Loanoan Center,enter,enter, LLCLCLC (BLC),BLC),BLC), tmindicted waserein,erein, wasas a lendingendingending corporationorporationorporation. Businees unindiotedherei4partioipateds 7(a)ocatedocatedocated innn Washington,ashington,ashington, DC,C,C, whichhichhich participatedarticipated anss ann approvedpprovedpproved

lenderenderender

innn

thehehe

SBABABA 7(8)

(s)Loanoanoan Guarantyuarantyuaranty Program.rogram. .-rogram,

?. "R,S, Loan,r'he.. Thehe SupermarketR.S.R.S. Supermarketupermarket asoan,"oan," ass thehehe termermerm isss usedsedsed innn thishishis Indictment,ndictment,ndictment, refersefersefers tooo a loanoanoanofff$870,000,870,000,870,000, madeadeade onnn orrr Januaryboutbout Januaryanuary 31,1,1, 2003,003,003, byyy toLCLC too R.S..S..S. Supermarketupermarketupermarket Inc.,nc.,nc.,bout BtCunindictednindictednindicted herein,erein,erein, fororor whichhichhich loanoanoan thehehe SBABABA guaranteeduaranteeduaranteed repaymentepaymentepayment tooo BLCLCLC fororor uppp too 75%5%75o/o

loariamountfff thehehe loanoan amount.mount.

3... ANEESNEESNEES AKHTARKHTARKHTAR KHAN,HAN,HAN, wasefendant,efendant, wasas a loanoanoan packagerackagerackager employedmployedmployed byyy SparksparksparksFinancialinancialinancial Group,roup,roup, Inc.,nc.,nc., a Texasexasexas corporation,orporation,orporation, unindictednindictednindicted herein,erein,erein, whohoho referredeferredeferred thehehe R.S..S..S.Supermarketupermarketupermarket loanoanoan applicationpplicationpplication tooo BLC.LC.LC.

defendan!

b_.. Supermarket.S..S. Supermarketupermarket Inc.,nc.,nc., unindictednindictednindicted herein,erein,erein, wasasas a Texasexasexas corporationorporationorporation ownedwned

b•4._R.S. owni:dI• n.S.Supermarkelnc,ob@ rionindictednindictednindicted herein.erein.erein. R.S..S. Supermarket,upermarket, Inc.nc. obtainebtaine B r 0

SheU·gasurchaseurchaseurchase thehehe Sananan Jacintoacinto Shell-gas stationtationtation locatedocatedocated a Texas.exas.exas.

JaointoShellgas

4




7.of ;ilffi;;

locstedat

--,--

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sellerof theSanJacintoShellgassbtionwasas thehe sellereller off thehe Sanan Jacintoacinto Shellhell gasas stationtation

Texas.exas.exas.

rvho,wastheownetof oconstuctioncompany

6.. wasas thehe ownerwner offa constructiononstruction companyompany whoho wasasto thesanJacintoandrsnovationsbyy R.S..S. Supermart1.1permart Inc.nc. too pee ;;;"it"gireire ormrm remodelingemodeling andnd renovationsenovations too thehe Sanan Jacintoacinto

. Shellhell gasas station.tation.Sheltgasstation.

agentlicensedbytheStatewasanefendant,efendant,efendant, wasas insurancenn insurancensurance agentgent licensedicensed byy thehe StatetatethenamdKhanIns'uranceAgency'

Insurancensurance poo iciescies undernder thehe nameame Khanhan Insurancensurance Agency.gency.

brokcrwhooperatedaKHALID unsa.. KHALIn ZIAIA SIDDIQUI,IDDIQUI, defendant,efendant, wasas mortgage mortgageortgage brokerrokerwhoho operatedperated a

8. KHALID ZIA SIDDIQUI'-dgf3ndant' aTexasCorpotation'oii"itt,Ini.,ompanyompany calledalled Companyinancialinancial Companyompany offTexas,exas, Inc.,nc., a Texasexas Corporation,orporation,ca[edn*f fin],rmialcompanyunindictednindicted herein.erein.

unindictedhsrein.

D.. Ravenwoodhehe Havenwood Loan:oan:Lo4n:D. TheHavenwood

Magnus corporationFMFC";,yoiodi"jtq.h"t"in,wasalending1.. Firstirst Financialinancial Corporationorporation ('FMFC"),'FMFC"), unindictednindicted herein,erein, wasas a lendingending

l. FirstMagngsFinancial mortgageoanstohomeerieona,*i;fu-#6residentialorporationorporation locatedocated inn Tucson,ucson, Arizona,rizona, whichhich madeade residentialesidentialmortgageortgage loansoans too homeomecorporationocatedn i**oru, buyers.uyers..buyets'

"Ravenwood.. Thehe "Havenwood Loan,"oan," .asas thehe termerm iss usedsed inn thishis Indictment,ndictment, refersefers too a loanoan off2.r\e"H'Yenw-oo{lf#,:3y:.:1Tf :tl;"-lf'H:l.made fr['iT:?ffi"rHf"tlf400,000,400,000, madeade byy FMFCMFC onn orr aboutbout Februebru 21,2003,1,2003, too financeinance thehe purchaseurchase ofafabYMFc-o1i+oo,ooo, EgEl Texas,residentialesidential locatedropertyroperty locatedocatedattt Texas.exas.

LsidentialPropertY

,. as'thehe termerm iss usedsed inn thishis Indictment,ndictment, refersefers too • asTexas. .exas.

.4. SYRD4. SYED GULAMULAM MOHAMMEDOHAMMED defendant,efendant, appliedpplied too FMFCMFC undernder thehe aliaslias nameame4.SYEDGIJLAMM0HAMMBDdeftndant,alipliedtoFMFCunderthealiasname"MohammedMohammed G.. Syed"yed"

obtainoo obtainbtain

thehehe Ravenwoodavenwood loan.oan.avenwoodoan'

o. $red"to'ii*lrr**.dhereirrwas

CompanyofTexas,lnc"aTelat CYg:TPn' unindicted5.. A&K&K Financialinancial Companyompany offTexas,exas, Inc.,nc., a Texasexas Corporation,orporation, unindictednindicted herein,erein, wasas5. A&K Financial andrHelrn zLASIDDIQUIbiffiil;t mortgageortgage brokerroker ownedwned andnd operatedperated byy defendantsefendants KHALIDHALID ZIAIA SIDDIQUIIDDIQUI andndbroker#;i;dmortgage "penteiOHAMMADOHAMMAD SHAHill SIDDIQUI.IDDIQUI.HAHID SIDDIQUI'ilitnifilrrAD SHAHID

E.. Thehe Bayouayou Placelace Loan:oan:ThqBaYouPlaceoao:

1.. Worldorld Savingsavings Bank,ank, FSBSB (WSB),WSB), unindictednindicted herein,erein, wasas a financialinancial institutionnstitution1'WorldSavingsBank,FSB(wsB),unindictedherein,wBsafinancialinstitutioninsuredbytheFederalDepositlocatedocated inn Oakland,akland, California,alifornia, whosehose depositseposits wereere insurednsured byy thehe Federalederal Depositepositlocatedn oakland,d*if"*i*, *ft"i; a"p"tiit *tit

(IIFDIC'!). .nsurancensurance Corporationorporation ("FDIC'!).nFDIg't1'InsuranceCorPoration

to pfot€t depositorsy

2.. Thehe FDICDIC wasas ann agencygencyoffthehe Unitednited establishedtatestates establishedstablished too protectrotect depositorsepositors byy2, TheFDICwasansgensyof the9tlt"d states op'to$t00'000peraccount"

ins'ringdepositst;;;;; nnanciatnstitution'n arnountsnsuringnsuring depositseposits inn memberember financialinancial institutionsnstitutions inn amountsmounts up'top'to $100,000100,000 perer account:ccount:

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Loan," Indictrnent,oan,n tenn Indictment,... Thehehe "BayouBayouBayou Placelacelace Loan." asss thehehe isermerm iss usedsedsed innn thishishis Ipdictment, refersefersefers tooo a loanoanoan offf$95,000,95,000, ofa95,000.madeadeade byyy WSBSBSB onnn orrr aboutboutA rilil 233 2003003 too financeinance thehe purchaseurchase offa residentialesidentialesidential propertyropertyroperty locatedocatedocated att Texas.exas.

tlreterm usedsed Indic'trent,sIIass thehe isermerm iss llsed innn thishishis refersndictment,ndictment, refersefers ttlto.o.Texas.exas.

Inc,, herein,erein,nc"... A&K&K&K Financialinancialinancial Companyompanyompany offfTexas,exas,exas, Inc., a Texasexasexas Corporation,orporation,orporation, unindictednindictednindicted herein. wasasas

mortgagc ZLASIDDIQ{IIIDDIQill brokerortgageortgage brokerroker ownedwnedwned andndnd operatedperatedperated byyy defendantsefendantsefendants KHALIDHALIDHALID ZIAIA SIDDIQUI andndndMOHAMMADHAHIDSIDDIQU. _ . -'Thehehe Loo Pricerice Enterprises Loan:oan:oan:ntemrises... Lg-PriceEnternrises

The.. Thehe Priceoo Pricerice Enterprisesnterprisesnterprises loanoanoan wasasas a SBABABA guaranteeduaranteeduaranteed loanoanoan madeadeade byyy a certifiedertifiedertified lenderenderender. I,oBusinessusinessusiness Loanoanoan (BLC),enterenter (BLC),BLC), unindictednindictednindicted herein.erein. .entcr hsoin.

2... Thehehe loanoanoan wasasas approvedpprovedpproved onnn Octoberctober 16,2003;6,2003; ror Looo Pricericerice Enterprises,nterprises,nterprises, Inc.nc.nc. ("LO"LO"LO

PRICEU),RICE"),unindictednindioted stores.station/conveniences.station/convenience storetore knownnownnown

Ootober16,2003rforor

PRICE"),.unindictedherein,erein,erein, tooo purchaseurchase landand andnd a tho Texas.exas.exas.sss F.M.hehe F.M..M. Gasasas & Groceryroceryrocery locatedocatedocated att

CONSPIRACYHEHE CONSPIRACYONSPIRACYIIE

Fromroml'Om onnn orrr aboutboutbout Augustugustugust 10,0,0, 1999,999,999, andndnd continuingontinuingontinuing tooo onnn orrr aboutboutbout Aprilprilpril offf2006,006,006, innn thehehe

SouthemDistrictouthernouthernDistrictistrict offfTexasexasexas andndnd elsewhere,lsewhere, defendants,efendants,lsewhere, ,efendants .

DAWOOD,AWOOD,BDULBDULBDUL REHMANEHMANEHMAN DA WOOD,SHAKIRBDULBDUL SHAKIRHAKIR MEMON,EMON,EMON,BDUT

A

KHAUDZrASIDDIQUl.(HALIDHALID SIDDIQUI,IAIA SIDDIQUI,

MOHAMMADOHAMMADOHAMMAD SHAHIDHAHIDHAHID SIDDIQUI,IDDIQUI,IDDIQUI,GULAMYEDYED GULAMULAM MOHAMMAD,OHAMMAD,OHAMMAD,I'EDGHOUSEMOHITJDDINYEDYEDYED GROUSEROUSE MOHIUDDINOHIUDDIN

AHMADAMALAMAL AHMADHMAD KHAN,HAN,HAN,AT{ALSAIRAENNIFERENNIFER SAlRA SYDENHAM,YDENHAM, andnd

dididid knowinglynowinglynowingly conspireonspireonspire andndnd agreegreegree together,ogether,ogether, withithith eachachach other,ther,ther, andndnd withithith othersthersthers knownnownnown andndnd

tonknownnknown too thehehe grandrandrand jury,ury,ury, tooo offensesommitommit offensesffenses againstgainstgainst thehehe Unitednitednited States,tates,tates, thathathat is,s,s, tooo defraudefraudefraud theheheurknown sommit

6




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SBABABA throughhroughhrough thehehe usesese offf interstatenterstate communications,ireire communications,ommunications, whichhichhich wereereere violationsiolationsiolations offfTitleitleitle 18,8,8,

Unitednitednited Statestatestates Code,ode,ode, Sectionectionection 1343.343.343.

OBJECTSBJECTS OFF THEHE CONSPIRACYONSPIRACY

intErstatewiro

1.. defrriud

wer€b€ fu*her thc

l. Thehehe defendantsefendantsefendants andndnd theirheirheir co-conspiralorso-conspiratbrso-conspirators devisedevised a schemechemecheme tooo inefraud,efraud, inn whichhichhich .

wireireire communicationsommunicationsommunications wereere usedee usedsed tooo furtherurther scheme.hehe scheme.cheme.

2,,, Thehehe defendantsefendantsefendants andndnd theirheirheir co-conspiratorso-conspiratorso-conspirators knowinglynowinglynowingly andndnd willinglyillinglyillingly executedxecutedxecuted andndnd

at1ificentendedntendedntended tooo executexecutexecute a schemechemecheme orrr artificertifice tooo defraudefraudefraud andndnd tooo obtainbtainbtain monies,onies,onies, funds,unds,unds, credits,redits,redits, assets,ssets,ssets,

securities,ecurities,ecurities, orrr othertherther propertyropertyroperty byyymeanseanseans offfmateriallyateriallyaterially falsealsealse andndnd fraudulentraudulentraudulent pretenses,retenses,retenses,

andepresentationsepresentations andnd promises,romises,romises, including'thencluding'thencluding'the concealmentoncealmentoncealment offfmaterialaterialaterial facts.acts.acts.

3, Thehehe defendantsefendantsefendants andndnd theirheirheir co-conspiratorso-conspiratorso-consplratorshen.dividedividedivided thehehe proceedsroceedsroceeds obtainedbtainedbtained fromromrom

represe,ntations

then.. then

. defiaud FCIperty seowe hercin..thishishis schemechemecheme andndnd artificertificertifice tooo toefraudefraud too obtainbtainbtain andropertyroperty andnd loansecureecure loansoans previouslyreviouslyreviously notedotedoted hereinerein...

OVERTVERT ACTSCTSvERTACT$

wercithithith thehehe foregoingoregoingoregoing objectsbjectsbjects andndnd othertherther objectsbjectsbjects innn view,iew,iew, thehehe followingollowingollowing overtvertvert actsctscts wereere

committedommittedommitted byyy thehehe defendantsefendantsefendants andndnd theirheirheir co-conspiratorso-conspiratorso-conspirators innn furtheranceurtheranceurtherance offf thehehe conspiracyonspiracyonspiracy innn thehelre

-elsewhere:istrictouthernouthern Districtistrict offfTexasexasexas andndnd "elsewhere:outhem elsewhere:

Investmenthehehe Uranusranusranus Inyestment Loan:oan:oan:nvestmgnt

1999999 ABDULefendantsefendants ABDULBDUL REHMANEHMANEHMAN DAAWOOD,OOD,... DAWOOD,and andnd ASLAMSLAMSLAM ISMAELSMAEL causedAPADIAAPADIA causedaused annnSIvIAELKAPADLA

bctween Investmentg,nc.,arnestarnestarnest Moneyoneyoney Contractontractontract Desi,etweenetween Desi,esi, Inc.,nc.,nc., andndnd Uranusranusranus Investments,nvestments, tonc.,nc., too beeesubmittedubmittedubmitted tooo thehehe lenderenderender SBLS,BLS,BLS, whichhich representedepresented sales salesales oflicelice off$950,000950,000950,000 fororor thehesalealeale offf thehehe Odemdemdem Truckstop.ruckstop.ruckstop.

Onnn orrr aboutboutbout Decemberecember 222 rdN,rEEr(APADIA

whiohreprcsented prico tho

2.. 1999999 ASLAMefendantsefendants ASLAMSLAM ISMAELSMAEL andAPADIAAPADIA andnd

Bused Articlesrticles offf Incorporationncorporationncorporation fororor UranusranusranusInvestments,nvestments, Inc.,nc., too bee filediled inraudulentlyraudulently inn thehehe nameameame offfunindictednindictednindicted

a\1sed

(1).o-conspiratoro-conspirator (1).1).o-oonspirator

7




Filedilediled innn TXSDXSDXSD onnn Page7/08/20097/08/2009 Pageage 8 27ff 277aseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797979 07i08/2009 ot

On... Onn orrr aboutboutbout 14,2000,ebruaryebruary 14,2000, (,iefendant REHMANBDULBDUL REHMANEHMAN DAWOOD4, 2000, ABDLILsubsequent$afiicipated thehe

Februffy defendant DAWOODAwoonsecuredecuredecured employmentmploymentmployment withithith thehehe lenderenderender SBLSBLSBLS andndnd subsequentlyubsequently inarticipatedarticipated inn tbe

reviewevieweview offf Uranushehe Uranusranus loan.nvestmentsnvestments loan.oan. .e Investnents

ASTAM I(APADIA... u Marcharch 177 2000000 defendantsefendants ISMAELsLAMsLAM ISMAELSMAEL andAPADIAAPADIA andnd

indMdualausedausedaused anothernothernother tondividualndividual too signignign a fraudulentraudulentraudulentgiftiftift letter,etter,etter, falselywhichwhich falselyalsely representedepresentedepresented thathathat hadnotherindividualnotherindividual hadad furnishedurnishedurnished a giftiftift offfhich another.individual (l).240,000240,000 tooo unindictednindictednindicted co-conspiratoro-conspiratoro-conspirator (1).1).

5, Onnn orrr aboutboutbout Marcharcharch 31,1, 2000,'000,' ASLAMefendantsefendants ASLAMSLAM ISMAELSMAELSMAEL KAPADIA,APADIA, ANEESNEES

AKHTARKHTARKHTAR KHAN,HAN,HAN, andndnd ausedusedused thehehe followingollowingollowing

loanoanoan applicationpplicationpplication documentsocumentsocuments tooo beee submittedubmittedubmitted tooo SBLS:BLS:BLS:

5.. 31,2O0O,'defendants KAPADlA, AI,{EES

a... Formormnnn SBABABA Fonn 4::: Applicationpplicationpplication fororor Businessusinessusiness Loan,oan,oan, whichhichhich fraudulentlyraudulentlyraudulently(l)unindictedepresentedepresented unindictednindicted co-conspiratoro-conspirator as1)1) as thehehe ownerwnerwner offfUranusranusranus Investmentsnvestmentsnvestments

Inc.;nc.;nc.; . rcprcsented oo-conspirator ·as

b... annn SBABABA Formormorm 413:13:13: Personalersonalersonal Financialinancialinancial fortatementtatement foror unindictednindictednindicted co-conspiratoro-conspiratoro-conspiratortatoment(l), of$46,500f$46,500 properfyI) ; whichhichhich falselyalselyalsely reportedeportedeported cashashash assetsssetsssets of$46,500 andndnd personalersonalersonal worthropertyroperty worthorth

$30,000;30,000;30,000; .

c, aManagementesume,whichfalselyrepresentedhatunindictedqPhillips66gasstationownedby

a.. a ofourceource offCapitalapitalapital Injectionnjectionnjection form,orm,orm, whichhichhich falselyalselyalsely representedepresentedepresented thathathat unindictednindictednindicted, Sotuceco-consirimtor reccived individuaL1)o-conspiratoro-conspirator (1)1) aeceivedeceived a giftiftift offf$240,000240,000240,000 fromromrom anothernothernother individual;ndividual;

a letteretteretter t99 SBLS/SBA,BLS/SBA, falselyhichhich falselyalsely representedepresentedepresented thathathat anothernothernother individualndividualndividual wasas..

, tp SBLi/SBA,whiohlvas

"aunt lt (l),l) , fofiunehehe "aunt" offfunindictednindictednindicted co-conspiratoro-conspiratoro-conspirator (1). whohoho hadadad "inheritedinheritedinherited a fromortuneortune fromrom herererhe'!aunt"inarentsarents inn and,angladesh";angladesh"; and,nd,arcnts Bangladash"; .

f,' signaturc.'.' a letteretteretter explainingxplainingxplaining derogatoryerogatoryerogatory credit,redit,redit, whichhichhich containedontainedontained a forgedorgedorged ofignatureignature off

(I),nindictednindicted (1), andndnd whichhichhich falselyalselyalsely representedepresentedepresented thathathat thehehe fatheratherather tooounindictednindictednindicted co-conspiratoro-conspiratoro-conspirator (1)1)1) hadadad diediedied innn 1996.996.996.unindistedco-conspiratorl),

On.. Onn orrr aboutboutbout Maa A, defendants000,000, defendantsefendants ASLAMSLAMSLAM ISMAELSMAELSMAEL andAPADIAAPADIA andnday4.2000.4, I(APADIAuuuttu Lulllrul(ilgu gu-r,;ulls-uilarur I I r ru sl-lluusedused l.mindicted.mindicted co-conspiratoro-conspirator (1)1) too signign at

individualraudulentraudulentraudulent promissoryromissoryromissory note,ote,ote, listingistingisting anothernothernother as ass a witness,itness,itness, andndnd reflectingeflectingeflecting(l) Desi,esi, Iac.hathathat unindictednindictednindicted co-conspiratoro-conspiratoro-conspirator owed1)1) owedwed $175,000175,000175,000 tooo Desi. Inc.nc.

ornn orr abutbutbut Juneuneune 8,2000,,2000,,2000, defendantefendantefendant ABDULBDULBDUL SHAKIRHAKIRHAKIRMEMONEMON transferredransferred fundsunds... .On MEMO[tragqfeffedfundq'of lvlecoa defendanteferdantn. fraudulenttyhffiffi-

$27.000romhisisis Imports,eccaecca Imports,mports, Incnc.,nc,,• accountccountccount tooo defendarit_ offwhichhich was20,00020,000 wasas usedsedsed tooo fraudulentlyraudulently showhow thehe downownI:Iw!drt:$?o,oo_opaynrenTrequiffi Unmus Loan.aymentayment foreqUJreaeqUJrea foror thehehe Uninus Investmentsnvestmentsnvestments Loanoan.ranus

'8 .8




•••••

Caseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797979 Filedilediled innn TXSDXSDXSD onnn 07/08/20097/08/2009 . Pageageage of off 2777710812009 I

8...

9...

10.0.0.

I l .1.1.

t2,2.2.

13.3.3.

14.4.4.

t5.5.5.

16.6.6.

ordboutJune13,2000 DAWOODnnn orr aboutbout Juneune 13,3, defendant000,000, defendantefendant ABDULBDULBDUL REHMANEHMANEHMAN DAA signedOODOOD signedigned andndndsubmittedubmittedubmitted a fraudulentraudulentraudulent Resolutionorporateorporate Resolutionesolution tooo SBLS,BLS,BLS, whichhichhich falselyalselyalsely representedepresentedepresentedorporgtethatABDUL DAWOOD trnc.hathat REHMANBDULBDUL REHMANEHMAN DAA wasOODOOD wasas thehehe soleoleole ownerwnerwner offf Desi,esi,esi, Inc.nc.

13,2000, KAPADLA annn orrr aboutboutbout Juneuneune 13,3, 2000,000, defendantefendantefendant ASLAMSLAMSLAM ISMAELSMAELSMAEL purchasedAPADIAAPADIA purchasedurchased a

cashier'sashier'sashier's checkheckheck fromromrom Banketroetro Bankank innn thehehe ofmountmount off $20,00020,00020,000 thathathat wasasas depositedepositedepositedeho arnountintontonto thehehe bankank accountccount co-conspiratorfunindictedfunindicted co-conspiratoro-conspirator at1)1) att thehehe Firstirstirst Educatorsducatorsducatorsmk ascountof unindicted (l)Creditreditredit Union.nion.nio.n.

Onnn orrr aboutboutbout Juneuneune 13,3, defendants000,000, defendantsefendants ANEESNEESNEES KHANKHTARKHTAR KHANHAN andndnd ASLAMSLAMSLAM3,2000, AKIITAR'purchaseSMAELSMAELSMAEL KAPADIAAPADIAAPADIA causedausedaused unindictednindictednindicted co-conspiratoro-conspiratoro-conspirator (2)2)2) too ·purchase twowowoo'purchase

checksashier'sashier's checkshecks fromromrom Washingtonashingtonashington Mutualutualutual Bankankank innn thehehe amountsmountsmounts andndnd $50,000,50,000,50,000, andndnd falselyalselyalsely reporteporteport thehehe remitteremitteremitter onnn thesehesehese checksheckshecks asss UranusranusranuscashieCs of $167,019.74

Investments,nvestments,nvestments, Inc.nc.nc,

Onnn orrr aboutboutbout Juneuneune 13,3,3, 2000,000,000, defendantefendantefendant ABDULBDULBDUL REHMANEHMANEHMAN DAA signedOODOOD signedigned andndndAWOODnstandbysubmittedubmittedubmitted a "StandbyStandby Creditorsreditors Agreementll (SBASBASBA 155),ormorm 155),55), tooo SBLS,BLS,BLS, which·hich·redi'torsAgreement"greement" Fornn which

reflectedeflectedeflected Uranusranusranus Investments,nvestments, owednc.,nc., owedwed $175,000175,000175,000 tooo Desi,esi, innc.,nc., inn connectiononnectiononnectionnc,,nvestrnents, Desi,Inc.,withithith thehehe salealeale offf thehehe Odemdemdem Truckruck stop.top.ruokstop,

14,4, 2000,000, REHIvIANDAWOODnnn orrr aboutboutbout Juneuneune 14,2000, defendantefendantefendant ABDULBDULBDUL DAWOODEHMANEHMAN DAWOOD causedausedausedloanoanoan inroceedsroceeds inn thehehe ofmountmount off$464,230.11464,230.11I tooo disbursede.e.disbursedisbursed tooo Frostrostrost Nationalationalational

payoffof byABDLiLprrrceeds arnount $464,230.1 be

oftwoankankank fororor thehehe payoffayoffof twowo existingxistingxisting loansoansoans offf companiesompaniesompanies ownedwnedwned byy ABDULBDULREHMANEHMANEHMAN DAWOODAWOODAWOOD andndnd ABDULBDULBDUL SHAKIRHAKIRHAKIR MEMON.EMON.EMON.

OnoraboutJune4,4, 2000,000,nn orr aboutbout Juneune 14,2000, defendantefendantpurchascd shecknnurchasedurchased a cashiersashiersashiers checkheck iIi thehehe amountmountmount off 20,000.000,000.00 fromrom Internationanternationa BankankofffCommerceommerceommerce (lBC)lBC) madeade toayableayable too Uranusranusranus investments,nvestments, whichnc.,nc., whichhich falselyalselyalselylBC)madepayable investments,Inc.,

remitteraseportedeportedeported thehehe remitteremitter assiii••••

Onnn orr aboutbout Juneune 14,2000,4,2000, defendanefendanraboutJune4,2000,$70,000epositedepositedeposited S?O,OOO fromeceivedeceived fromrom defendantefendantefendant20,000ecsived

intontonto a bankankank forccountccount foror Uranusranusranus Inc., Inc.,nc., attt Firstirstirst Statetate Bankank ofOdemfOdem andndgcount Investmcnts,obtainedbtainedbtained a bankankank letteretteretter verifyingerifying onheseJundsheseJunds onn deposit.eposit.eposit.eriffingthese.funds

Onnn orrr Juneboutbout Juneune 14,2000,4,2000, defendantsefendants4,2000,det-endanrsSLAMSLAM KAPADIA,_'APADIA,_' .

I andnd , cau::rsBLStowireirea-oout nSLeM KAPADIA,f

loanoanoan proceedsroceedsroceeds innn thehehe amountmountmount offf$675,000675,000675,000 through.hrough. Fargoellsells Fargoargo Bankankank tooo thehehe escrowscrowhrough-Wolls essrowaccountccountccount offf Titleawyer'sawyer's Titleitle Companyompanyompany attt Southwestouthwestouthwest Bankank ofTexBS, innn Houston.ouston.Texas.exas.exas. .

lawyer's Bar* offTexas,exas, llouston,

14.2000,nnn orrr aboutboutbout Juneuneune 14,2000, ABDULefendantefendant ABDULBDUL REHMANEHMANEHMAN DAWOODAWOODAWOOD causedausedaused4,2000,defcndantprocceds $464,230.1464,230.1 I1oanoanoan inroceedsroceeds inn thehehe amountmountmount offf$464,230.11 tooo beee disbursedisbursedisbursed tooo FrostrostrostNationalationalationalforthepayoffof ovmedankankank foror thehe payoffayoff twoff twowo existingxistingxisting loansoansoans offfcompaniesompaniesompanies bywnedwned byy ABDULBDULBDUL

REHMANEHMANEHMAN DAA andOODOOD andnd anothernothernother .AI#OOD individual.

9




otCaseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797979 Filedilediled innn TXSDXSDXSD onnn 07/08/20097/08/20097/08/2009 Pageageage 1000 27ff 277

Onnn orr aboutbout Juneune 14, 2000, ABDULefendantsefendants ABDULBDUL REHMANEHMANEHMAN DAA andOODOOD andnd4,2000,7.7. 14,2000, defendents DAWOOD1. orabouiJunoASLAMSLAMSLAM KAPADIASMAELSMAEL KAPADIAAPADIA causedausedaused loanoanoanproceedsroceedsroceeds innn thehehe amountmountmount offf$227.020227.020 tooSIdAEL $227,020tabeee sententent tooo unindictednindictednindicted co-copspiratoro-copspirator and2),'2),' andnd $50,00050,00050,000 tooo beee toentent too defendantefendantefendantASLAMSLAMSLAM ISMAELSMAELSMAEL KAPADIA.APADIA.APADIA.

co-colrspirator2); eent

t8. Onnn orrr Juneboutbout Juneune 14,2000,4,2000, defendantefendantefendantbout 14, 2000, ABDIJLBDULBDUL REHMA].IDAWOODEHMANEHMAN DAAWOODOOD depositedepositedepositcd$110,000

18.8.of$110,OOOoanoanoan proceedsroceedsroceeds innn thehehe amountmountmount off$11 0,000 intontontohisisis personalersonalersonal checkingheckinghecking accountccountccount attt thehehe

F BU''r h' hh . '' . . . madetlytly madeade a paymentaymentaymeatofff$20,00020,00020,000 tooo defendantefendantefendant

19.9.9. OnoraboutJunenn orr aboutbout Juneune ,19,9 2000000 defendantefendant9, issuedssued a sheck inn thehe amountmount off$20,00020,000oheckheck too defendantefendantefendantdrawnrawnrawn onnn thehehe Uranusranusranus Inc.,nvestment,nvestment, Inc.,nc., accountccountccount attt thehehe Firstirstirst Statetatetate ofankank offOdem.dem.nvcstment, Bar* adem.

Onnn orrr aboutboutbout 20,0, 2000,000, defendanefendan0.0.0. Jung2l,2lll,atftna*depositedepositedeposited a drawnheckheck drawnrawn onnn thehehe Uranusranusranus Investment,nvestment,nvestment, accountnc.,nc., accountccount hi thehehe amountmountmount offfheok lnc., iriri

pcrsonal thdIntemational20,00020,00020,000 intontonto hisisis checkingersonalersonal checkinghecking accountccountccount attt thehe Banknternationalnternational Bankank offf

Commerceommerceommerce (IBC).IBC).IBC).

21.1.1. Onnn orrr aboutboutbout Julyulyuly 21,, 2000,000,000, defendantefendant ABDLJLSHAKIRBDULBDUL SHAKIRHAKIR iSj1ed a checkheckheckof $34,000 Odemdem

2l, dcfendant MEMONiqped iSiledinnn thehehe amountmountmount inf$34,OOOf$34,OOO inn thehehe nameameame offf thehehe adem Truokruokruok Stoptoptop tooo hisisis (ABDULABDULABDUL

BankHAKIRHAKIRHAKIR MEMON's)EMON's)EMON's) Meccaeccaecca Importsmportsmports accountsccountsccounts attt thehehe Frostrostrost Bank.ank.

Onnn orrr aboutboutbout Julyulyuly 25,5, 2000,000, ABDULefendantefendant ABDULBDUL MEMONHAKIRHAKIR MEMONEMON issuedssuedssued a checkheckheck ,2.2.2, 25,2000defendant SIIAKIR .of$34,000 accounfooo himselfimselfimself innn thehehe amountmountmount off$34,000 drawnrawnrawn onnn Meccaeccaecca Importsmportsmports andccount,ccount, andnd

depositedepositedeposited thehehe checkheckheck intontonto anothernothernother accountccountccount attt thehehe Frostrostrost Bank.ank.ank.$34$00

23, Onnn orrr aboutboutbout Juneuneune 30,0,0, 2000,000,000, defendantefendantefendant ASLAMSLAMSLAM ISMAELSMAELSMAEL KAPADIAAPADIAAPADIA depositedepositedeposited3.3.intontonto hisisis checkingheckinghecking accountccountccount a broker'sroker'sroker's feeeeee innn thehehe amountmountmount offf collected5,062.505,062.50 collectedollected fromromrom5,062,50

refellingefering Investnent applioation.hehehe lenderenderender SBLS,BLS,BLS, fororor referring thehehe Uranusranusranus loannvestmentnvestment loanoan application.pplication.

Thehehe GQrdon Quickuick FQod LQan:ordonordon OuiokFoodood Loan:oan:

24.4.4. co-conspiratoro-conspiratornnn orrr aboutboutbout Augustugustugust 10,0,0, 1999,999,999, unindictednindictednindicted cQ-conspirator (2)2)2) signedignedigned a "SpecialSpecialSpecialWananty Covenantn Buyer,t'topurehaseeedWarrantyWarranty Deedeed withithith andovenant"ovenant" andnd a "CertificateCertificateCertificate offfBuyer,"uyer," too theurchaseurchase theheGordonordon pmpertyordQn Quickuickuick Foodoodood withropertyroperty withith fullullull disclosureisclosureisclosure offf thehehe environmentalnvironmentalnvironmentalcontamination.ontamination.ontamination.

compteted5.5.5, Onnn orrr aboutboutbout Augustugust 20,0,ugrut20,1999,999,999, aompletedompleted a Questionnairell foror Gordonordon onnProjectProjectProject Planninglanninglanning Questionnaire"uestionnaire" fQr thehehe GordQn Quickuickuick Foodoodood gasasas station,tation,tation, Qn

whichhichhich heee falselyalselyalsely reportedeportedeported averageverageverage salesonthlyonthly salesales theuringuring thehe twelvereviousrevious twelvewelvemonths,onths,onths, whenhenhen innn truthruthruth andndnd innn fact,act,act, asss wellellell knew,new,new,usgas sloseddudnghehehe station stationtation hadadad beeneeneen closedlosed duringuring

1000




Caseasease2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument1797979 Filedilediled innnTXSDXSDXSDonnn07/08/20097/08/20097/08/2009 Pageageage 1111 offf2777

26.6.6.

. 27.7.7,

28.8.8.

29.9.9.

30.0.0.

24 KHAN'nnnorrraboutboutboutDecemberecemberecember 1999,4,4, 1999,999,defendantsefendantsefendantsKAMALAMALAMALAHMADHMADHMAD ANEESHAN,HAN, ANEESNEES

AKHTARKHTARKHTARKHAN,HAN,HAN,andndnd submittedubmittedubmittedandndnd causedausedaused tooobeee submittedubmittedubmitted thehe toollowingollowing too SBLS:BLS:ho

annn "SBLSSBLS Loanusinessusiness LoanoanApplication,"pplication,"pplication," whichhichhich falselyalselyalsely representedepresentedepresented thathathat,.. ',SBLSBusincss

$I36,000AMALAMALAMALAHMADHMADHMAD KHANHANHAN hadadad acashashash downownownpaymentaymentaymentofff$136,000136,000 tooo investnvestnvest innn thehehebusiness;nd,nd,nd,ordonordonordonQuickuickuickFoodoodood

b... Profile"rtrhichalselyclaimed AI{MADnnn "SBLSSBLSSBLS Personalersonalersonal Profilerofile lll whichhich falselyalsely KAMALlaimedlaimed KAMALAMAL KHANHMADHMAD KHANHAN1999.asasas employedmployedmployed asss thehehemanageranageranagerofffthehehe Gas13M13M GasasNN Foodoodood Mart"art"art" sinceinceinceJanuaryanuaryanuary 1999999 .3M

Onnn orrr aboutboutboutMayayay 8,, 2000,000, KAMALefendantefendant KAMALAMAL AHMADHMADHMAD KHANHANHAN signedignedignedandndnd,2000,dcfendant1040Income Retum 1999,uausedausedaused tooo beee submittedubmittedubmitted tooo SBLSBLSBLS a "FormFormForm 1040040 Taxncomencome Taxax foreturneturn foror with999,"999," withith

annn attachedttached W-2FormForm W-2-2 Wageageage andndnd Statement"axax Statement"tatement" purportedlyurportedlyurportedly fromromrom annn employermployermployerttnchedFofln Tal

"3-M3-M Foodoodood Inc."nc."13_M Ins."

Onnn orrr aboutboutbout Juneuneune defendant9,2000,9,2000, defendantefendant KAMALAMALAMAL AHMADHMADHMAD KHANHANHAN signedignedigned andndnd9,2000,the thehe followingollowingollowing tooo SBLS:BLS:BLS:ubmitted

a. form,orm,a.. a "SourceSourceSource offfCapitalapitalapital Injection"njection"njection" fonn, onnn whichhichhich KAMALAMALAMAL AHMADHMADHMAD KHANHANHAN; 0[$135,000.. : pita!ital investmentnvestmentnvestment of$135,000 wasasas derivederivederived frornaromrom a giftiftift ftomromromf $135,000gaapitaland,nd, .n4

a "ManagementManagement Resume,esume, onII onn whichhichhich h.e.e tolaimedlaimed too haveaveave beeneeneen employedmployedmployed asss theheheesume,"Gasas sinco

b... "Managemerrt hgolaimedManageranageranager offf thehehe 3MMM N Foodoodood Martartart Januaryinceince Januaryanuary 1999.999.999.

Onn orr aboutbout Julul 111 ANd000000 JENNIFERefendantsefendants JENNIFERENNIFER SAIRAAIRAAIRA SYDENHAMYDENHAMYDENHAM andndsignedignedigned andndnd causedausedaused tooo beee submittedubmittedubmitted tooo SBLSBLSBLS a

ofCertificateCertificate

off

Resolution"orporateorporate Resolution"

esolution"fororor ARARA

RAInvestment,inancial

inancialInvestment,nvestment,

Inc.,nc.,nc.,

onnnorporate

Finanoialwhichhichhich theyheyhey falselyalselyalsely thatertifiedertified thathat allllll franchiseranchiseranchise taxesaxesaxes paidereere paidaid andndnd thehehe corporateorporateorporatecharterharterharter wasasas innn goodoodood standing.tanding.tanding. .

cartified wc{e

defe!1dant I$MAL signednnn orrr aboutboutbout Julyulyuly 11,1,1, 2000,000,000, defe!ldant AHMADAMALAMAL AHMADHMAD KHANHANHAN andjgnedjgned andndSBLSI .

defendantcausedausedaused thehehe followingollowingollowing tooo beee submittedubmittedubmitted tooo SBLS:BLS:

a... "Envirorunental Covcnantsnilnnn "EnvironmentalEnvironmental Certificateertificateertificate withithith Representations,epresentations,epresentations, Covenantsovenants andndWarranties, Iarranties," onnn whichhichhich KAMALAMALAMAL AHMADHMADHMAD KHANHANHAN certifiedertifiedertified thathathat thehehe propertyropertyroperty wasasasananties,"

envirorunentallaws;ototot thehehe subjectubjectubject offf obligationsemedialemedial obligationsbligations underndernder environmentalnvironmental laws; and,nd,nd,emediat lalrns;

KAMALAHMAD KHANmisrepresented

capital,

b.., a "BorrowingBorrowingBorrowing Affidavit,ffidavit,ffidavit,nonII onn whichhichhich KAMALAMAL AHMADHMAD KHANHAN misrepresentedisrepresented

thathathat heee hasasas investednvestednvested $137,500137,500137,500 cashashash intontonto thehehe businessusinessusiness asss equityquityquity capital.apital.

I II1




Documentocumentocument1797979 07108/2009 Pageageage1222of27ff 277aseasease2:05-cr-00356:05-cr-00356:05-cr-00356 FiledilediledinnnTXSDXSDXSDonnn07/08/20097/08/2009

31.1.1. OnOnnor aboutrr aboutboutAugustugustugust9,2000,.. 2000,ANEESNEESNEESAKHTARKHTARKHTARKHANHANHANcausedausedausedunindictednindictednindicted000.loBBLSo-conspiratoro-conspirator to2)2) toopurchaseurchaseurchaseandndndsubmitubmitubmit toSBLS "Washington "WashingtonWashingtonMutualutualutualo-conspiratot4 tosBLSa

Officialfficial Checkheck #240060644,"240060644," payableayable too Chicagohicago Titleitle inn thehe amountmount off

$156,288.95,156,288.95,156,288.95,onnnwhichhichhichit falselytt falselyalselylistedistedistedtheheheromittcrasemitteremitter ass AHMAD'KAMAL'KAMAL AHMADHMAD

offrcialCheck#2400.,60644,''payabletoChicagoTitleintheamountof-'KAMAL

KHAN.'HAN."HAN."

KAMAI aT{MADI(HAN.32.2.2. Onnn or·aboutboutboutAugustugustugust10,0,0,2000,000,000, defendantsefendants KAMALAMAL AHMADHMAD JENNIFERHANHAN JENNIFERENNIFERrr defendsntsSAlRA SYDENHAM,YDENHAM, ANEESNEES AKHTARKHTAR KHAN,HAN,

andnd unindictednindicted co-conspiratoro-conspirator (2),2), caused.aused. SBLSBLS too disburseisburse loanoanSAIRAAIRASYDEI.IHAM,ANESSAKIIIAK o.t^*,I

'llll'lltX'{?;111j'ilFl,}jllfi"Hroceerocee S 0 60,0000,000 throughhrough 'aa wireire transferransfer fromrom Wellsells Fargoargo Bankank inn Sanan

i'ranoisco,Califoinia, esorowrancisco. California,rancisco, California. toooChicagohicagohicagoTitleitleitleCompany'sompany'sompany's accountscrowscrow accountccountheldeldeldatttBankankank

Onenene innnDallas,allas,allas,Texas.exas.exas.

t , 33...defendantsefendants KAMALAMAL AHMADHMAD KHANHANand.nd.causedcaused Chicagohicago Titleitle Companyompany too issuessue checkheck

numberumber 02004120041 too unindictednindicted co-conspiratoro-conspirator (2)2) inn thehe amountmountoff

$194,804.05194,804.05 assinndicatedndicated innChicagohicagohicago Titleitleitle Insurancensurance fileompany'sompany's fileile numberumber 254200Z.54200Z.ndjcated Insufanc€Compan/s numb$254200z,.

Onnn orrr aboutboutbout Auu ustst 2000,00 2000,000, AHMAD4.4.4. August10, defendantsKAMALAMALAMAL KHAN KHANHAN unOI cau$ed Ineurance t-sygtfeirhicagoausedaused Chicagohicago Titleitleitle Companynsurancensurance Companyompany tooo issuessue theirheirf

chec {2) thoamorurt $50'000fiunindictedec numberumber 02004220042 too unindictednindicted co-conspiratoro-conspiratoro*onspirator in2)2) inn thehe amountmount 0[$50,000ff$50,000

as 254200Z,.indicatedss indicatedndicated innn Chicagohicagohicago Titleitleitle Insurancensurancensurance Company'sompany'sompany's fileileile numberumberumber 254200Z.54200Z.

Ohit orrr aboutboutbout 'AugustAugustugust10,2000,0,2000, defendantsefendants0,2000, andnd5.5.5. On

Arn4AD InsurancoompanyAMALAMALAMAL KHANHMADHMAD KHANHAN causedausedaused Chicagohicagohicago Titleitleitle Insurancensurance toompanyompany too issuessue

theirheirheir checkheckheck 020046umberumber 02004620046 tooo unindictednindictednindicted co-conspiratoro-conspiratoro-conspirator (2)2)2) innn thehehe amountmountmount offfas345,499.24345,499.24 ass indicatedndicatedndicated innn Chicagohicagohicago Titleitleitle Insurancensurancensurance fileompany'sompany's fileile numberumberumber

numbcr$345,499,24 Companls

254200.54200.54200. .

Onnn orrr aboutboutbout Augustugustugust unindicted2,2000,2,2000, unindictednindicted co-conspiratoro-conspiratoro-conspirator (2)2)2) purchasedurchasedurchased a6.6.6. 12,2000, aChesk FinanoialWash,ingtonWash,ington Officialutualutual Officialfficial #240060655,"heckheck #240060655,"240060655," payableayableayable tooo ARARARA Financialinancial"WashjngtonVfutual

Investment,lnc.,nvestment,Inc., of $150'000f$150,OOO.nvestment, Inc .• innn thehehe amountmountmount of$150,000.

Onnn orrr aboutboutbout AUID1st 22,2, 2000,000, co-conspiratornindictednindicted co-conspiratoro-conspirator (2)2)2) withdrewithdrewithdrew $34,00034,0007.7.7, ugustzz,}}h},unindicted $34'000fromrom Mutualashingtonashington Mutualutual accountccountccount xxx-xxxx330-7xx-xxxx330-7xx-xxxx330-7 fororor thehe ofurchaseurchase off WashingtonashingtonashingtonrornlVashington thepurchase

. Oflicial defsndantutualutualutual checkfficialfficial checkheck numberumberumber 2400607084006070840060708 payableayableayable tooo KAMALefendantefendant KAMALAMAL

AHMADHMADHMAD KHAN.HAN.HAN.

R.S.hehe R.S..S. Supermarketupermarket Loan:oan:oan:he SUpermarkpt

On8.8. Onn orr llbout Decemberecember 21,20011,2001 and_nd_

herein,erein,38. or aboutDecsmbet2l,200l

unindictednindictednindicted herein. signedignedigned andndnd causedaused too bee submittedubmitted too BLCLC a constructiononstructionInc;,nc.; construota gas onroposalroposalroposal fromrom Castleastle Constructiononstruction Inc;. tooo constructonstruct Shell Shellhell stationasas stationtation thenn thehei'omCastlJConstruction

R.S..S. propertyupermarketupermarket propertyroperty fororor $670,000.00.670,000.00. .,S.Supcrmarket $67O000.00.

1222




Caseasease 2:05-cr-003"56 Documentocumentocument 1797979 ,Filed innn TXSDXSDXSD onnn ,33 offf2777:05-cr-00356 .Filediled 07/08/2009 Page:0S-cr-003'S6 "Page

39.9.9.

40.0.

41.1.1,

42.2.2,

43.3.3,

44.4.4.

45.5.5.

causednnn orrraboutboutbout Marcharcharsh8,,, 2002002 caused"reparedreparedrepared andndnd caused,tooo beee submittedubmittedubmitted tooo BLCLCLC a l'Contractor1s Qualificationualificationualification ontatement,"tatement," onn whichhichhich heee"Contractor'sContractor's Statemcnt,"misrepresentedisrepresentedisrepresented Castleastleastle Inc.onstructiononstruction Inc.nc. asss a corporationorporationorporation thathathatwasasas bondedondedonded byyy a suretyuretyurety companyompanyompany andndnd Iee allll businees

Constnrctiontoalifiedalified too dooo inusinessusiness inn thehehe Statetatetate offfTexas,exas,exas, whenhenhen innn

tYv$ rBrY"ruthruth andnd inn fact,act, ass ellll knew,new, CastleastleltllU 6IrLl ltl lBvlt s t

qompanyonstructiononstructiononstruction Inc.nc.nc. wasasas notototbondedondedonded byyy ntasuretyuretyurety andompanyompany andnd hadadad itststs corporateorporateorporatecharterharterharter forfeitedorfeitedorfeited innn Texas.exas.exas.

Onn orr aboutbout Juneune 17,7, 2002,002, defendantefendant ANEESNEES AKHTARKHTARKHANHAN andnd _ 'ffi m Tf,ilt,nindictednindicted herein,erein, causedaused too bee submittedubmitted too BLCLC a "SBASBA Formorm 4 fs,:L?'ilHil,'J;3311;Tf,1*l*l'fffiNon€Loan,"oan," swtionusinessusinessusiness Loan, II onnn whichhichhich wasNone"None" wasas reportedeportedeported innn thehehe thatectionection thathat requiredequiredequired

ofisclosureisclosure offpreviousreviousrevious SBABABA debt.ebt.ebt.isslosure

z,ilALldefendant *"O*,Innn orrr aboutboutbout Augustugustugust 2,, 2002,002, ANEESefendantefendant ANEESNEES AKHTARKHTARKHTARKHAN,_HAN,_ 'herpi$erein, andchusedandnindictednindictednindicted herein. andndnd unindictednindictednindicted co-conspiratoro-conspiratoro-conspirator (2)2)2) submittedubmittedubmitted 'and toausedaused too beee

Conhact," rvhichubmittedubmittedubmitted tooo BLCLCLC annn "UnimprovedUnimprovedUnimproved Propertyropertyroperty onontract,"ontract," onn theyhichhich theyheythoisrepresentedisrepresentedisrepresented thathathat $85,00085,00085,000 earnestarnestarnest moneyoneyoney wouldouldould paidaidaid byyy loanhehe loanoan applicant.pplicant.pplicant.

Onnn orrr aboutboutbout Septembereptembereptember 18,8,8, 2002,002,002, defendanefendansubmittedubmittedubmitted andndnd causedausedaused tooo beee submittedubmittedubmitted tooo BLCLCLC a"Certific,ate offLiabilityiabilityCertific.8te

Insurance,u compensatio!, buililershichnsurance."nsurance." whichhich showedhowedhowed thathathat liability,iability,iability, workersorkersorkers andompensation,ompensation, andnd riskuildersuilders riskiskinsuunce werc Consttuction Insuunceoliciesnsurancensurance policiesolicies issuedereere issuedssued tooo Castleastleastle byonstructiononstruction byy Burlingtonurlingtonurlington Insurancensurance

Nova'Insurance CO",o.o.o. andndnd Villaillailla Nova'Insuranceova'Insurance Co',o,

and_nd_nn orr aboutbout Octoberctober 166 2002,002, defendefendrf"na andlcau$edndeparedepared andnd toausedaused too beee submittedubmittedubmitted tooo CNANANA Suretyuretyurety a

whioherformanceerformanceerformance && Paymentaymentayment applicationpplicationpplication fororor Castleastleastle Builders,uilders,uilders, onnn theyhichhich theyheymisrepresentedisrepresentedisrepresented ownerhehe ownerwnerho offfCastleastleastle Buildersuildersuilders asss "MirageMirageMirage Inc.nc,"I .nc." .

Onnn orrr aboutboutbout Decemberecemberecember 16,6, 2002.002. KHALIDefendantefendant KHALIDHALID ZIAIAIA SIDDIQill6,2002,defendant SIDDIQUIIDDIQUIinsurance "A&KA&K Insuranccmpersonatedmpersonatedmpersonated a licensedicensedicensed agentnstuancenstuance agentgent usingsingsing thehehe nameameame IIA&K Insurancensurance

qigne{ompany"ompany"ompany" andndnd andignedigned andnd submittedubmittedubmitted tooo BLCLCLC a falsealsealse letteretteretter claiminglaiminglaiming thathathat Castleastleastleapprovcd paymeut tnrthuildersuildersuilders wasasas forpprovedpproved foror a andaymentayment andnd performanceerformanceerformance bond,ond,ond, whenhenhen innn andnlthnlth andnd innn

knew nA&K eact,act,act, asss KHALIDHALIDHALID ZIAIAIA SIDDIQUIIDDIQUIIDDIQUI wellellell knew,new, Insurance"A&KA&K Insurance"nsurance" wasasas nototot a licensedicensedicensed insurancensurancensurance agentgentgent andndnd Castleastleastle Buildersuildersuilders hadadad nototot beeneeneen approvedpprovedpproved fororor a paymentaymentayment andndnd performanceerformanceerformance bond.ond.ond,

31.2002. zIA SIDDIQII andlnnn orrr aboutboutbout Decemberecemberecember 31,1, defendant002,002, defendantefendant KHALIDHALIDHALID ZIAIA SIDDIQUIIDDIQUIand.nd.lu uE Duux'tqis tu Lrru r\suuu'v .,lllst-yausedaused too bee submittedubmitted too Oldld Republicepublic Suretyurety

Construotionnc., IIompanyompanyompany a bondondond applicationpplicationpplication fororor "MirageMirageMirage Inc.nc.nc. dbababa Castleastleastle Inc.,"onstructiononstruction Inc.,"

whichhichhich wasasas purportedlyurportedlyurportedly notarizedotarizedotarized byyy Texasexasexas Notaryotaryotary Publicublicublic knownnownnown tooo thehehe grandrandrand-.,austrujury,ury,ury, whenhenhen innn andruthruth andnd Inn asact,act, ass bothheyhey bothoth wellellell "Miragenew,new, "MirageMirage didnc."nc." didid nototot existxistxistuth in faot, tlrey kneq Inp."Publio'ssignaturc forgery.orgery.ndndnd thehehe Notaryotaryotary Public'sublic's wasignatureignature wasas a forgery,

1333




Caseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797979 Filedilediled innn TXSDXSDXSD onnn Page7/08/20097/08/2009 Pageage 1444 offf 27777108/2009

46.6.6.

47.7.7.

48.8.8.

49.9.9,

50.0.0.

51.1.1.

31,2002,nnn orrr aboutboutboutDecemberecemberecember 31, 2002,002, KHALIDefendantefendant KHALIDHALID ZIAIAIA SIDDIQUIIDDIQUIIDDIQUI causedausedaused aI, dsfendsntfrlse Surety Subc.ontactubconb:actopyalsealse copyopyofff "WeSternWeStern SuretY Companyompanyompany SubcontractPerformanceerformanceerformance Bondondond numberumberumberWeSbrn$urety58601417"8601417"8601417" tooo beee sentententbyyy faxaxax tooo BLC,LC,LC, whichhichhich wasasas alteredlteredltered tooo showhowhow "MirageMirageMirage Inc.nc.nc. dbababa

ths faot,astleastleastle Construction"onstruction"onstruction"asss "Obligee,"hehe "Obligee,"Obligee," whenhenhen innn truthruthruth andndnd innn asact,act, ass KHALIDHALIDHALID ZIAIAIASIDDIQUIIDDIQUI knew,ellell knew,new, Westernesternestern SuretyuretyuretyBondondond numberumberumber 5860141786014178601417 wasasas a policyolicyolicy toooIDDIQLIweil

bondondond annn company.nrelatednrelated company.ompany.trelated

Onnn orrr aboutboutbout Januaryanuaryanuary defendant0,2003,0,2003, defendantefendant KHALIDHALIDHALID ZIJ\ SIDDIQUIIDDIQUIIDDIQUI toaxedaxed too BLCLCLC0,2003, ZIAIA faxoda falsealsealse invoicenvoicenvoice fromrom ItA&K requestingnsurance,"nsurance," requestingequesting paymentaymentayment inf$12,000f$12,000 innom "A&KA&K Insurancg" of $12,000

withonnectiononnection withith a Performancealsealse Performanceerformance andndnd PaymentaymentaymentBond,ond,ond, inhenhen inn truthruthruth andndnd innnonnestion falso udrenuA&KasKHALID ItA&Kact,act,act, ass KHALIDHALID ZIAIAIA SIDDIQUIIDDIQUIIDDIQUI wellellell knew,new,new, "A&K Insurance"nsurance"nsurance" wasasas nototot licensedicensedicensed

tooo sellellell suretyuretyurety bondsondsonds andndnd nooo Performanceerformanceerformance Paymentndnd Paymentayment Bondondond wasasas eververver issuedssuedssuedbyyy a surety.urety.urety.

ahd

OnorabowJanuarynn orr aboutbout Januaryanuary caused7,2003,7,2003, causedaused thehehe7,followingollowingollowing falsealsealse documentsocumentsocuments tooo beee sententent byyy faxaxax tooo BLC:LC:LC:

and andnd forertificateertificate foror Payment"ayment" certifiedertified byy. an"Arplication certificate Payment lt sertitieduylnwhich ciaimof $12,000 performancc____ containedhichhich containedontained a falsealsealse claimlaim forf$12,000f$12,000 foror a bonderformanceerformance bondond

gandndndnd aforgedorgedorged signatureignatureignature offfaTexasexasexas Notaryotaryotary Publicublicublic knownnownnown tooo thehehe jury;randrand jury;ury; and,nd,nd,

IINo.No,SanJac-OOI"anJae-00l" q&ioh... annn Invoicenvoicenvoice "No. SanJac-001" fromromrom Castleastleastle Constructiononstructiononstruction Inc.,nc.,nc., onnn hehichhich hee billedilledilledninsurance.'lR.S..S..S. Supermarket a $12,00012,00012,000 feeeeee fororor "insurance. It .upennarketupermatket "insurance."

On or a u Januaanua , defendants AA _00 2003,003, KHALID KHALIDHALID SIDDIQUIIAIA SIDDIQUIIDDIQUI andndnd Iandbmittedbmitted andnd causedausedaused tooo beee submittedubmittedubmitted a ofopyopy off .copy

IIWesternWestcm PeIt:ormance BooderformanceWestern Suretyuretyurety Companyompanyompany Subcontractubcontractubcontract PeTt:ormance andndnd Paymentaymentayment numberondondnumberumbernMirage1558601417"558601417"558601417" tooo Partnersartnersartners Titleitleitle Company,ompany,ompany, whichhichhich falselyalselyalsely showedhowedhowed Inc.MirageMirage Inc.nc. dbababa

riObligee."

Castleastleastle Construction"onstruction" thess the

he "Obligee."Obligee."onstuctionngOnn orr aboutbout Januaanua 300 2003,003, ANEESefendantsefendants ANEESNEES AKHTARKHTARKHTAR K.HAN.HAN and_nd_

ausedused herein.dcfendants KHAN *dI

unindictedunindictednindicted herein,erein, tooo signignign andndnd submitubmitubmittoo@" a e ersrs receiptoff$$l{f,Q0066,000hichatement,"atement," whichhich falselyalselyalsely showedhowedhowed thehehe receipteceipt of$166,OOO innn

proceedsalesales proceedsroceeds fromromrom S.K..K..K. Mastersastersasters innc.,nc., inn withonnectiononnectionwithith thehehe salealeale affiliatef.f. affiliateffiliateales Ino,, c-onnection ofibusincss,whcn thcusiness,usiness, inhenhen inn truthruthruth andndnd innn fact,act,act, dispositionhehe dispositionisposition offf fundsundsunds dididid nototot occurccurccur asssrepresented.epresented. .cpresented.

Onnn orrr aboutboutbout Januaryanuaryanuary 30,0,0, 2003,003,003, defendantsefendantsefendants AKHTARNEESNEES AKHTARKHTAR KHANHANHANand.nd.IIEES *aIdsedunindistedco-oonspirator ardsedsed unindictednindicted (2)o-conspiratoro-conspirator (2)2) tooo purchaseurchaseurchase andnd

nWashingtonsubmitubmitubmit tooo BLCLCLC a MutualWashingtonWashington Mutualutual Officialfficialfficial Checkheckheck payable631337901,"631337901," payableayable tooo63133790l,"

Partnerartnerartner Companyitleitle Companyompany innn thehehe amountmountmount onf$136,000.00,f$136,000.00, onn whichhichhich ittt falselyalselyalsely listedistedisteditlc of $136,000.00,(prrrchaser) "S.K.Mastorilc."tS.K. IIhehehe remitteremitteremitter aspurchaser)purchaser) ass IIS.K. Masteraster Inc.nc. If

1444




Caseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797979 Filedilediled innn TXSDXSDXSD onnn 07/08/20097/08/20097/08/2009 Pageageage 1555 offf 2777

52.2. defendantsefendants ANEESNEES AKHTARKHTAR KHAN,HAN, _ _ andnd anothernother person,erson, unindictednindicted herein,erein, causedaused a falsealse

szffi;1litr1il::flffi:ffiffifl#;[tAssetsset Agreementurchaseurchase Agreementgreement tooo beee toubmittedubmitted too BLC.LC.LC.ssEtPurcha.se submittcd

53, January 2003003 defendantsefendants AKHTARNEESNEES AKHTARKHTAR KHAN.HAN, KHALIDHALIDHALIDn3.3. Onn orrr aboutboutbout Januaanua 311l ffiS KI{AN.

andnd I_ causedaused toLCLC too fundund proceedsoanoan proceedsroceeds throughf$329,850f$329,850 throughhrough a wireiref $329,850 witetoransferransfer too Partnersartnersartners Titleitleitle Company'sompany'sompany's escrowscrowscrow accountccountccount heldeldeld attt Chasehasehase Bankankank innnnnsfer

Houston,ouston,ouston, Texas.exas.exas,

54.4.4. Onnn orrr aboutboutbout Januaryanuaryanuary 2003,1,1, 2003,003, defendantefendantl, andndco-conqpirator rcceivcdo-eonspiratornindictednindictednindicted co-conspirator (2),2),2), theeceivedeceived thehe followingollowing disbursementsisbursements totalingotaling

$319,879.82319,879.82319,879.82 Partnersromrom Partnersartners Titleitleitle Co.:o.:o.:om

Dateateate Checkheckheck # Payeeayeeayee Amount Amountmount

av3u03 1466794667946679 (unindicted $260,029.82260,029.8211311031131103 (unun co-conspiratorndictedndicted co-conspiratoro-conspirator (2))2))2)) $;260,a29.82

0rBua3 1466784667846678 Mirageirageirage Inc.nc. Castle/b/a/b/a Castleastle Buildersuildersuilders $27,850.0027,850.0027,850.001/311031/31103 Ins.d/bla

14668046680 Ino, $20,000,0011311031131103t/31/03 r46680 Mirageirageirage d/b/anc.nc. d/b/a/b/a Castleastleastle Buildersuildersuilders $20,000.0020,000.00

01131/03 1466764667646676 Mirageirageirage Inc.nc.nc. andndnd A&Klnsurance&K&K Insurancensurance1/31/031/31/03 $12,00012,00012,000

ibout co-conspil'ator Parfrers5.5.5. Onnn orrr Januaryboutbout Januaryanuary 31,1,1, 2003,003,003, unindictednindictednindicted co-conspiratoro-conspirator (2)2)2) depositedepositedeposited PartnersartnersTitleitleitle Co.o.o. Checkheckheck #146679146679146679 innn thehehe amountmount $260,029ff$260,029260,029 intontonto hisisis WashingtonashingtonMutualutualmountof WashingtonMutualBankankank #XXX-XXX608-5.XXX-XXX608-5.ocoun[#)()ff -)00(608-5.

56.6.6. Onnn orrr aboutboutbout Februaryebruaryebruary 3,,, 2003003003 endorsedndorsedndorsed PartnersartnersartnersTitleitleitle Chec.k Chec.khec.k #146678146678146678 innn the·amount at att Bankankank offf America.merica.merica.g. the-amounthc-amountf $27,850.00

57.7.7. nnn orrr aboutboutbout Februaryebruaryebruary 4,2003,,2003, KHALIDefendantefendant KHALIDHALID ZIAIAIA SIDDIQUIIDDIQUIIDDIQUI endorsed,?0}3,dofendant endorscdof$12,OOOartnersartnersartners Titleitleitle Co.o.o. Checkheckheck #146676146676146676 innn thehehe amountmountmount of$12,000 attt Bankankank offf America.merica.merica.f $12,000

58.8.8. Onnn orrr aboutboutbout Februaryebruaryebruary 4,,,2003003,003, Partnersndorsedndorsed Partnersartners#14668Aitleitleitle Co.o.o. Checkheckheck # in4668046680 inn thehehe amountmountmount offf$20,00020,000 andnd depositedeposited thehe fundsunds intonto

Compassompassompass Bankankank accountccount whichXXXX7305,XXXX7305, whichhich belongedelongedelonged tooo unindictednindictednindictedccount#)fXXX7305,(2), co-conspiratoro-conspirator (2).2).oo-conspirator

1555




Caseasease 2:05-cr·00356:05-cr·00356:05-cr-00356 Documentocumentocument 1797979 Filedilediled innn TXSDXSDXSD onnn 01108/20091108/20097/08/2009 Pageageage 1666 offf 2777

Thehehe Hayenwood Loan:oan:avenwoodavgnwoodgptt:

Onnn orrr aboutbout Novemberovember IS, defendants002,002, defendantsefendants SYEDYEDYED GULAMULAMULAM MOHAMMADOHAMMADOHAMMAD andndnd5,2002,9.9.9. aboutNovember5,SHAmDOHAMMADOHAMMADOHAMMAD SHAInD SIDDIQUIIDDIQUI orubmittedubmitted orr toausedaused too beee submittedubmittedubmitted tooo

FMFC:MFC:MFC:SHAHIDSIDDIQTsubmined csused

a... a falsQalsgUniformniformniform Residentialesidentialesidential Loanoanoan Application,pplication,pplication, onnn whichhichhich "SyedSyedSyed G... Mobmmaduohmmad" Mohrnmad"aequestedequested a $400,000400,000400,000 toortgageortgage too purchaseurchaseurchase thehehe Havenwoodavenwoodavenwood propertyropertyroperty fororor a salesalesales

pricericerice offf$500,000;500,000;500,000;requcsted mortgagc

b... a falsealsealse Formormorm 1040040040 Individualndividualndividual Incomencomencome Taxaxax foreturneturn foror 2002;002;002; and,nd,nd,etum

c... aafalsealsealse Fonn W-2-2-2 Wageageage andndnd Taxaxax Statementtatementtatement foror 2002.002.ormorm fot2002,

Onnn orrr aboutboutNovemberovember 15,2002,5,2002, SYEDefendantsefendants SYEDYED GULAMULAMULAM MOHAMMADOHAMMADOHAMMAD andndnd0.0. aboutNovember5,20A2,efcndantsKHAUD gubmittedorrIAHALIDHALID ZIAIA SIDDIQUIIDDIQUIIDDIQUI submittedubmitted Or causedausedaused tooo beee submittedubmittedubmitted tooo FMFC,MFC,MFC, a

Disclosure"MortgageMortgage Broker/Loan Officerfficerfficer Disc10sure ll agreement.greement.greement.Mortgnge

BrokerlLoanroker/T-oan Disslosure"

61.1.1. Onnn orrr aboutboutbout Januaryanuaryanuary 27,7, defendants003,003, defendantsefendants SYEDYEDYED MOHAMMAD,ULAMULAM MOHAMMAD,OHAMMAD,T,2AOS GI"JLAMMOHAMMADOHAMMADOHAMMAD SHAHIDHAHIDHAHID andIDDIQUI,IDDIQUI, andnd KHALIDHALID SIDDIQUIIAIA SIDDIQUIIDDIQUI submitted,ubmitted,ubmitted,IDDIQLI, KHALIDZIAorrr causedausedaused tooo beee submittedubmittedubmitted tooo FMFCMFCMFC byyy facsimile,acsimile,acsimile, a signedignedigned Residentialesidential Contract,ontract,esidEntialConfiact,

oSyedonnn whichhichhich "SyedSyed G.. Mohmmadohmmad agreedll agreedgreed tooo purchaseurchaseurchase thehehe Havenwoodavenwoodavenwood propertyropertyroperty fororor a salesalesales pricericerice offf $500,000.500,000.500,000.

O.Mohmmad"

62.2.2. Onnn orrr aboutboutbout 20,2003,ebnlaryebnlary 20,2003,0,2003, defendantsefendantsefendants KHALIDHALIDHALID SIDDIQUIIAIA SIDDIQUIIDDIQUI andndndebruwf ZlMOHAMMADOHAMMADOHAMMAD SHAHIDHAHIDHAHID submittedIDDIQUIIDDIQUI submittedubmitted orr toausedaused too beee submittedubmittedubmitted toooIDDIQII orcausedFMFC,MFC,MFC, a falsealsealse Verificationerificationerification offfDepositepositeposit purportedlyurportedlyurportedly fromromrom Bankankank One.ne.no.

63, Onnn orrr aboutboutbout Februffy2l,2003,ebruaryebruary 21,1, defendant003,003, defendantefendant SYEDYEDYED GULAMULAMULAM signedOHAMMADOHAMMAD signedigned3.3. MOHAMIVIADHUD-I Havenwoodproporty SettlementUD-lUD-l Settlementettlement Statementtatementtatement tooo purchaseurchaseurchase thehehe Ravenwoodavenwood forropertyroperty foror$500,000.500,000.500,000.

64, Onnn orrr aboutboutbout Febrllaryebr.uary1, 2003, thehehe defendantsefendantsefendants4.4. Febrllal'Y 21,2003,1,2003,MOHAMMADOHAMMADOHAMMAD SHAHIDHAHIDHAHID SIDDIQUI,IDDIQUI,IDDIQUI, SYEDYEDYED GULAMULAMULAM MOHAMMADOHAMMADOHAMMAD andndnd

co-conspiratornindictednindicted co-conspiratoro-conspirator (2),2),2), FMFCausedaused FMFCMFC tooo wireireire loanoanoan proceedsroceedsroceeds offfnindictsd cdused$401,668.89401,668.89401,668.89 innn interstatenterstatenterstate toommerceommerce too annn accountccountccount offfChicagohicagohicago Titleitleitle Insurancensuranceommercs InsuranccCompanyheldompanyompany ateldeld att JPPP Morganorganorgan Chasehasehase Bank.ank.ank.

65.5.5. ot 24,20A3, (2)purchasednnn aboutrr aboutbout Februaryebruaryebruary unindicted4,2003,4,2003, unindictednindicted co-conspiratoro-conspiratoro-conspirator (2)2) orurchasedurchased orr causedausedausedtooo beee purchasedurchasedurchasedWashingtonashingtonashington Mutualutualutual Checkank-Officialank-Official Checkheck #631338070631338070631338070 innn theheheank.Official

amountmountmount madef$99,747.76,f$99,747.76, madeade payableayableayable tooo "ChicagoChicagoChicago Title."itle."itle."f 899,747.76,

1666





Onnn orrr aboutboutbout Februaryebruaryebruary 25,5, unindicted003,003, unindictednindicted co-conspiratoro-conspiratoro-conspirator (2)2)2) depositedepositedeposited orrr causedausedaused6.6.6, 25,2003,tooo beee Chicagoepositedeposited Chicagohicago Titleitleitle Insurancensurancensurance Companyompanyompany #004738heckheck #004738004738 innn thehehe amountmountmountcposited oheck

Co'mpassntof$182,493.74f$182,493.74 intonto Co·mpass Bankankank accountccountccount #xxxxx839xxxxx839xxxxx839 heldeldeld innn thehehe nameameameEnterprises."Danny'sDanny's Enterprises."nterprises."

of $182,493.74 Compass"Dannfs

Onnn orrr aboutboutbout Februaryebruaryebruary 27,7, 2003,003, co-conspiratornindictednindicted co-conspiratoro-conspirator (2)2)2) depositedepositedeposited Checkheckheck7.7.7. 27,[O[3,unindicted#625625 thenn thehe amountmount intof$182,493.74f$182,493.74 intonto hisisis Washingtonashingtonashington Mutualutualutual numberccountccount numberumber625in amouotof $182,493.74 ascountxxx608-5.xx608-5.xx508-5.

ThEBqvpu4laceLQan:hehe BayQUayQU Loan:lacelace Loan:

68.8.8. Onnn orrr aboutboutboutDecemberecemberecembar26,2002,6, 2002, defendantefendantefendant KHALIDHALIDHALID ZIAIAIA SIDPIQUIIDPIQUIIDPIQUI signedignedigned a6,2002,IQan approvalpproval letter,etter, onn Texashadexas'oanoan apprQvalletter, Qn whichhichhich heee certifiedertifiedertified thathathat A&K&K&K Financialinancialinancial Co.o.o. offfTexas· hadad

approvedpprovedpproved a $95,00095,00095,000 loanoanoan foror purchasehehe purchaseurchase Qfthe Bayouayou Placelacelace property.roperty.roperty.orths off thehe BaYQu

69.9.9. Onnn orrr aboutboutbout Januaryanuaryanuary 22,2003,2,2003, unindictednindicted co-cQnspiratQr (2)2)2) orurchasedurchased orr causedausedaused2,zA03,unindictedo-conspiratoro-conspirator putuhasedtooo beee purchasedurchasedurchased Washingtonashingtonashington Mutualutualutual Bankankank Official.fficial. #631337853heckheck #631337853631337853 innn theheheffrcial.Checkamountmountmount madef$91,100,f$91,100, madeade payableayableayable tooo "AmericanAmericanAmerican Titleitleitle Co."o."f $91,100, Co,"

Onnn Qr aboutboutbout Marcharcharch 6,, defendant003,003, defendantefendant MOHAMMADOHAMMADOHAMMAD SHAHIDHAHIDHAHID SIDDIQUIIDDIQUIIDDIQUI 70.0.0. orr 6,2AA3,signedignedigned andndnd submittedubmittedubmitted tooo WSBSBSB a ResidentialnifQrmnifQrm Residentialesidential Loanoanoan Applicationpplicationpplication onnn behalfehalfehalfniformofanotherfanothel' individual.ndividual.ndividual.fanothsr

Onnn orrr aboutboutbout Marcharcharch defendant,2003,,2003, defendantefendant MOHAMMADOHAMMADOHAMMAD SHAHIDHAHIDHAHID SIDDIQUIIDDIQUIIDDIQUI1.1.1. 6,2003,signedignedigned a "RequestRequestRequest fororor Verificationerificationerification offf Deposit"eposit"eposit" asormorm ass partartart offf thehehe WSBSBSB loanoanoanapplicationpplicationpplication fororor thehehe purchaseurchaseurchase offf thehehe Bayouayouayou Placelacelace property.roperty.roperty.

foffi

Onnn orr about'bout'Marcharch defendant8,2003,8,2003, defendantefendant MOHAMMADOHAMMADOHAMMAD SHAHIDHAHIDHAHID SIDDIQUIIDDIQUIIDDIQUI2.2.2. orabout'March28,2003

submittedubmittedubmitted orr causedaused

beQQ bee

submittedubmittedubmitted tooo

WSB,SB,SB,

fraudulent fraudulentraudulent "EvidenceEvidence offPropertyroperty

lnsuranco;" olaimed nAKlnsuranca" obtained floodloodloodorcausedos

"EvidqrqoofPropedy

onnsurance/'nsurance/' onn whichhichhich ittt falselyalselyalsely thatlaimedlaimed thathat "AKAK hadnsurance"nsurance" hadad abtainedbtained a pQlicy sn off$650.00.650.00,nsurancensurancensurance policyolicy fromromrom Texasexasexas Fairairair attt annualnn annualnnual premiumremiumremium costostost of$650.00.

Onnn orrr aboutboutbout Marcharch 28,8, defendant003,003, defendantefendant MOHAMMADOHAMMADOHAMMAD SHAHIDHAHIDHAHID SIDDIQUIIDDIQUIIDDIQUI3.3.3. Maroh28,2003,submittedubmittedubmitted orrr toausedaused too beee submittedubmittedubmitted tooo WSB,SB,SB, a "Evidencei'audulenti'audulent "EvidenceEvidence offPropertyropertyaused fraudulent QfProperty

UAK. Qnnsurance"nsurance"nsurance" binder,inder,inder, onn whichhichhich ittt falselyalselyalsely claimedlaimedlaimed thathathat Insurance"AKAK Insurance"nsurance" hadadad obtainedbtainedbtained a hazardazardazard insurancensurance fromolicyolicy fromrom Texasexasexas Fairairair att annualnn annualnnual premiumremiumremium costostost of$I,150.00.f$I,150.00.nswanceolioy at.an of $1,150.00.

Onnn orrr AprilbQutbQut Aprilpril 23,3, defendant003,003, defendantefendant MOHAMMADOHAMMADOHAMMAD SHAHIDHAHIDHAHID SIDDIQUIIDDIQUI4.4.4, about 23,2003 SIDDIQIIor tQ Fire/Hazardire/Hazardubmittedubmittedubmitted causedrr causedaused too beee submittedubmittedubmitted tooo WSB,SB,SB, a fraudulentraudulentraudulent "NoticeNoticeNotice offfFirelHazard

Insurancensurancensurance Requirements,"equirements,"equirements," onnn whichhichhich ittt falselyalsely "AKepresentedepresented "AKAK asnsurance"nsurance" ass thehehealse$represetrted Insurancenonhe

nsurancensurancensurance agentgentgent ofthe borrowerorrower...f lheborrower.

1777




Caseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797979 07108/2009iledilediled innn TXSDXSDXSD onnn 07/08/20097/08/2009 Pageageage 1888 offf 2777

Onnn orrr abou'tbou't Aprilpril 25,5, 2003,003, ass a ofesultesult off thehehe priorriorrior actionsctionsctions offfdefendantsefendantsefendants5.5.5. aboutAprit 25,2}03,as rcsultMOHOMMADOHOMMADOHOMMAD SHAHIDHAHIDHAHID SIDDIQUI,IDDIQUI,IDDIQUI, KHALIDHALIDHALID SIDDIQUI,IAIA SIDDIQUI,IDDIQUI, andndnd unindictednindictednindictedtAco-conspiratoro-conspiratoro-conspirator (2),2),2), WSBSBSB Wireire loanransferredransferred loanoan proceedsroceedsroceeds tof$93,533.94f$93,533.94 too annndretrans&rred of $93,533.94

accountscrowscrow accountccount offf Titlemericanmerican Titleitle ofo.o. offHouston,ouston,ouston, heldeldeld attt Southwestouthwestouthwest Bankankank offf. Texas.exas.exas.

oscrow Amerisan Co,

76, Onnn orrr aboutboutbout Aprilprilpril 28,8, unindicted003,003, unindictednindicted co-conspiratoro-conspiratoro-conspirator (2)2)2) signedignedigned a "ReleaseRelease8,2W3, "Releascfff6.6.

. Lien"ien"ien" innn connectiononnectiononnection withithith a $91,10091,10091,100 lienienien heee securedecuredecured onnn thehehe Bayouayouayou Placelace propertyropertylacoproperfy23,2003.nnn Januaryanuaryanuary 23,3, 2003.003.

Onnn orrr aboutboutbout Aprilprilpril 29,9, 2003,003, co-conspiratornindictednindicted co-conspiratoro-conspirator (2)2)2) depositedepositedeposited orrr causedausedaused tooo7.7.7, zg,z}}3,unindictedbeee depositedeposited Titlemericanmerican Titleitle ofo.o. offHouston,ouston,ouston, #016406heckheck #016406016406 innn thehehe amountmountmount offf

Washington " {e,positedAmsricsn Co, obeck

$100,000.00100,000.00100,000.00 intontonto Mutualashington'ashington' Mutualutual Bankankank accountccountccount # xxx608-5.xx608-5.xx608-5.

78.8.8. Onnn orrr aboutboutbout Aprilprilpril 29,9, defendant003,003, defendantefendant MOHAMMADOHAMMADOHAMMAD SHAHIDHAHIDHAHID SIDDIQUIIDDIQUI9,2003, SIDDIQIIInegotiatedegotiatedegotiated thehehe followingollowingollowing checksheckshecks fororor cashashash attt Kim'sim'sim's Liquoriquoriquor Warehousearehousearehouse innn Houston,ouston,Texas:exas:exas:

Housto4,

Americanmericanmerican Titleitleitle Co.o.o. offfHoustonoustonouston checkheckheck #016405016405016405 madeadeade payableayableayable tooo IIIAKK... "AK'innsurance"nsurance" inn thehehe amountmountmount of$I,150.00;f$I,150.00;nsuranceu of $1,150.00;

b... Americanmericanmerican Titleitleitle Co.o.o. offfHoustonoustonouston check"#016407heck"#016407 madeade toayableayable too "AKAKheck#01640?madepayable uAK

Insurance"nsurance"nsurance" innn thehehe amountmount $650.00;ff $650.00;650.00; and,nd,mountof an4

c... Titlemericanmerican Titleitle Co.o.o. offf Houstonoustonouston checkheckheck #016409016409016409 innn thehehe amountmountmount offf$23.94.23.94.morican $23,94,

Thehehe Looo Pricericerice Entetprisesntetprises Loan:oan:nte{prisesoer}:.

Onnn orrr aboutboutbout Januaryanuaryanuary 14,2003,4,2003, SYEDefendantefendant SYEDYED MOHIUDDINHOUSEHOUSE MOHIUDDIN enteredntered9.9.9. l4,z003,defendant GHOUSBMOHIUPDIN enteiedintontonto a Commercialommercialommercial Improvedmprovedmproved Moneyarnestarnest Moneyoney Contractontractontract fororor Loo Pricericerice Enterprises,nterprises,amest La Entcrprises,

UFMtonc.nc. too purchaseurchaseurchase thehehe "FM Gasasas andndnd Groceryllroceryll Canadianromrom Canadiananadian Startartar Investments,nvestments,nvestments, Inc.nc.nc.fororor $600,000.600,000.600,000. " Ine. "PM Grocery"tom

ebout 1,, 2003,003, signedigned ten tenen yearearear "0.0.0. Onnn orrr Aprilboutbout Aprilpril I, 2003. et'L€ser""Lease," too rententt e a se a s toocery"ocery" too annnLease." asss "Landlord'sLandlord'sLandlord's Agent,gent, annindividualndividualndividual knownnownnown tooo thehehe grandrandrand jury. whohoho hadadad nooo affiliationffiliation theithith thehe loanoanoan applicantpplicantpplicantury,ury, afliliation$'ithLo. Enterprises,nterprises,ricea·a·Pricerice Enterprises. Inc.nc.nc.

orabout 7,2A03, signedignedigned aHUD-lHUD-I1.1.1. Onnn orr Aprilboutbout Aprilpril 7,, 2003,003, aHUD-ITitle Gai.r rvettlementettlementettlement Statementtatementtatement attt Stewarttewarttewart Titit Co. Co.o. tooo purchaseurchase thehe "PMPM andasas andnd Grocery"rocery"rocery"vr

Canadianromrom Canadiananadian Startartar Inc.nvestments,nvestments, Inc.nc. fororor $415.000.iom Invesfments, $415,000.415,000.

Onnn orrr aboutboutbout Aprilprilpril 21,1,1, 2003,003,003, defendantefendantefendant SYEDYEDYED GHOUSEHOUSEHOUSE signedOHIUDDINOHIUDDIN signedigned2.2.2. MOHruDDINandndnd inurnedurned inn tooo thehehe Texasexasexas Alcoholiclcoholiclcoholic Beverageeverageeverage hisommissionommission hisis wineineine permitermitermit

licensc 456970 .tumed Comrnission

(Q456976)Q456976)Q456976) andndnd beereereer (BFicenseicense (BFBF 456976).56976). "

1888




Caseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797979 Filedilediled innn TXSDXSDXSD onnn Page7/08/20097/08/2009 Pageage 1999 offf 27777lO8l20O9

83.3.3.

84.4.4.

85.5.5,

86.6.6.

87.7.7.

88..8..8.

Onnn orrr aboutboutbout A ri126. 2003,003,003, JENNIFER JENNIFERENNIFER SAIRAAIRAAIRA SYDENHAMYDENHAMYDENHAM andndndil 26, defendantsangnedgned ann "AddendumAddendumAddendum tooo Earnesthehe Earnestarnest Moneyoneyoneyhc

Contract. .. Enterprises,nterprises,ontract... ,"" onn whichhich theyhey thatisrepresentedisrepresented thathat Looo Pricericerice Enterprises. Inc.nc.nc. wouldouldouldpayayay $95.000 tooo Castleastleastle Constructiononstructiononstruction Inc.nc.nc. fororor constructiononstruction aterfonnederfonned att thehehe "FMFMFM95,00095,000 sonstuctionpcrformedGasasas andndnd Grocery",rocery",.rrocery'1

Onnn orrr aboutboutbout Mayayay defendant,2003,,2003, defendantefendant SYEDYEDYED GHOUSEHOUSEHOUSE MOHIUDDINOHIUDDINOHIUDDIN requestedequestedequested,2003,copiesopiesopies andndnd obtainedbtainedbtained regulatoryegulatory andennitsennits andnd licensesicenses belongingelonging theQQ thehe tenantenantenant andndndcgulatorypermits licenscsbclongrngq

operatorruerue operatorperator offf thehe GasFMFM Gasas andndnd Grocery";rocery";rocery"; and. heee submittedubmittedubmitted orrr causedausedaused tooo beeeue the'FM and,nd,

submittedubmittedubmitted tooo BLCLCLC copiesraudulentraudulent copiesopies offf thehehe following:ollowing:ollowing:audulent

a... a"FoodDealcr'sPermit"ermit" Houston,ouston, whish "FoodFood Dealer'sealer's Pennit" #791527915279152 fromromrom thehehe Cityityity offfHouston. washichhich wasas namehehe nameame off thehe truerue permitermit holderolder falselyndnd falselyalselyraudulentlalterrdtoconcealthe ofthetruepumit holderandshowedhowed permitermit asss thehehe pennit holder;older;older;

b... a "DeliveryDeliveryDelivery Certificateertificate forII foror Owner/Operatorwner/Operator# from3220432204 fromrom thehehe Texasexasexas132204edificaten Ovmer/Opcratot

Quality,uality, ranasi'audulentlyisudulently

ommissionommissionommission onnn Environmentalnvironmentalnvironmental Quality. whichhichhich wasas fi-audulently alteredlteredltered tooo concealoncealonceal

thehe truerue siteite operatorperator andnd falselyalsely showedhowedIlE lfuc Jrtii ulr.,r.ntu. B's rursgty"rrt**I,

c... a "WineWineWineandndnd Beereereer Retailer'setailer'sOffff Premiseremise Permit"ermit" #BQ534847BQ534847 theromrom thehe Texasexasexase{ailey's Pennit"#8Q534847omffPremiseAlcoholiclcoholiclcoholic BeverageeveragecverageCommisqion, cogggl$ehichhichhich wasasas fraqdulentlyraqdulentlyraqdulently alteredlteredltered tooo concealonceal thehe

e p-ermit *I holderermitermit holderolder andndnd falselyalselyalsely showedhowedhowed thehehe permitermitermit holderolderolder • .._and,od,and.

d.. ann "AssumedAssumed Name"ame" certificateertificate fromrom thehe Harrisarris County,ounty, Texasexasfilediled Marcharch 5,, 2003,003, whichhichwasas fraudulentlyraudulently alteredltered too showhowd;$,nffi:fffti,11*'.X1ffi *i,Tffi::u';HTm'

of the"P.M.heasas thehe ownerwnerwner "F.M.fthefthe "F.M. Gasasas andndnd Grocery".rocery".rocery".I"r

Onnn orrr aboutboutbout Mayayay 19,9,9, 2003,003,003, unindictednindictednindicted co-conspiratoro-conspiratoro-conspirator (2)2)2) purchasedurchasedurchased "WashingtonWashingtonWashlngton$95,000utualutualutual Officialfficialfficial Checkheckheck #610380749." innn thehehe amountmountmount offf$95.000 on onn whichhichhich heeemadeadeade payableayableayable tooo "CastleCastleCastle Builder"uilder"uilder" andndnd falselyalselyalsely listedistedisted thehehe remitteremitteremitter (purchaser)purchaser)purchaser) asss"LoLoLo Pricericerice Inc."nc."nc."

#610380749,"610380749,n $95,000,

Onnn orrr aboutbout Juneune 9,, 2003,003, submitted,efendanefendan submitted,ubmitted, orrrboutJune,2003,causcd submitted,ubmitted, BLCa Insurance",oausedaused too beee submitted. tooo BLGaLGa ofCertificateCertificate offLiabilityiability Insurance". onnn whichhichhich heeensurancet',misrepresentedisrepresentedisrepresented a commercialommercialommercial generaleneraleneral liabilityiabilityiability policyolicyolicy "Markelromrom "MarkelMarkel International."nternational."om International,n

Onnn orrr aboutboutbout Juneuneune 17.2003. defendanefendan7,2A03, submittedubmittedubmitted7,2003,orrr causedausedaused tooo beee submittedubmittedubmitted tooo BLCLCLC a signeigne IIAsslgnmentIAsslgnment 0 Lll e Policysurancesurance Policyolicyasss whichollateral,"ollateral," whichhich containedontainedontained annn unauthorizednauthorizednauthorized notaryotaryotary stamptamptamp andndnd forgedorgedorgedollateral,u

signatureignatureignature off Texas Texasexas notary.otary.otary.fa

17,2003,nnn orrr aboutboutbout Juneuneune 17.2003.defendantsefendantsefendants ANEESNEESNEES KHANKHTARKHTAR KHANHAN andndnd SYEDYEDYEDT,2A0S AKI{TARGHOUSEHOUSEHOUSE causedOHIUDDINOHIUDDIN causedaused tooo beee submittedubmittedubmitted tooo BLCLCLC thehehe followingollowingollowing falsealsealsedocuments:ocuments:ocuments:

MOHITJDDIN

l999




'Caseasease2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument1797979 07/08i2009 ?age20 of 27iledilediledinnnTXSDXSDXSDonnn 07/08/20097/08/2009 Pageage 200 off 277

a.. ann FormBABA Formorm Application ApplicationpplicationforororBusinessusinessusinessLoan,oan,oan,onnnwhichhichhich "No"No" falselyasas falselyalsely. an$BA 4 "NonwasuArc

markedarkedarked questionoo questionuestion 10,0, asked,hichhich asked,sked, youAreAre yououorrryourourourbusinessusinessusinessinvolvednvolvednvolvedin anynn anyny

pendingendingending

lawsuits?";awsuits?";awsuits?"; .

to lb, whieh

b, an Pcrsonal "No" lrlflsfalscly.. SBAnn SBABAFormormorm9121212Statementtatementtatementofff History,ersonalersonalHistory,istory,onnnwhichhichhich ''No'''No'' wasas falselyalselyygu orarkedarked questionoo questionuestion which,, whichhichasked,sked,sked,"HaveHaveHave everouou eververbeeneeneenchargedhargedhargedwithithithandndnd orratkedto ?,

arrestedrrested foror criminalnyny criminalriminaloffenseffenseffenseotherthertherthanhanhanaaminorinorinormotorotorotorvehicleehicleehicleviolation?";iolation?";iolation?";nestedoianyand,nd,nd,

apcrsonalnetan.. ann SBABABA Formormorm4131313 Financialersonalersonal Financialinancial Statement,tatement,tatement,onnnwhichhichhich a personalersonal netet. Pertonalof$368,000.00f$368,000.00orthorthorth of$368,OOO.00 wasasas falselyalselyalselyclaimed.laimed.laimed.

On9.9. Onn orrr OctobereforeeforeOctoberctobereforc T,2AO3,, 2003.003. SYEDefendantsefendants SYEDYED MOHIUDDINROUSEROUSEMOHIUDDINOHIUDDINandndnd

SAIRAENNIFERENNIFER SAIRAAIRASYDENHAMYDENHAMYDENHAMsignedignedigneda "CommercialCommercialCommercialContract-Improvedontract-Improvedontract-Improved89. dcfendants GHOUSE

ffNMfgn

nroperty,"roperty," onn wpichtheyheyheymisrepresentedisrepresentedisrepresentedthehehebuyeruyeruyerhasasaspaidaidaid$95,00095,00095,000

towardsowardsowardsmperty," wlriohthe."FMOas C!rocery".renovationenovationenovationofff thehe "FMFM andasas andnd Grocery". .Qrocery".

Onnn orrraboutboutboutOctoberctoberctober 7,2003,,2003, SYEDefendantefendant SYEDYED GHOUSEHOUSE MOlllUDDIN signedignedigned0.0. 1,2}0!,defendant CHOUSEMOHIUDDINOHIUDDINSnAndndnd causedausedaused tooo beee submittedubmittedubmitted tooo BLCLCLC annn FormBABA Formorm 4131313 Personalersonalersonal Financialinancialinancial

$279'000Statement,tatement,tatement, onnn whichhichhich heee falselyalselyalsely certifiedertifiedertified thathathat hisisis personalersonalersonal netetet worthorthorth wasasas $279.000279.000

andndnd heee concealedoncealedoncealed ofiabilitiesiabilities off$88,00088,000. ..88'000.iabitities approximately

91. '1.' Onn orr aboutboutNovemberovember 7 2003,003, defendantsefendants ANEESNEES AKHTARKHTAR KHAN,HAN,91.SYBDENNIFERENNIFERENNIFER SYDENHAM,AlRAAlRA SYDENHAM,YDENHAM, SYEDYED

unindiotedniJldictedndndnd unirIdicted4,000 awirc

from lsland,ransferransfer fi'om Fleetleet Bankationalational Bankank innn Providence,rovidence,rovidence, Rhodehodehode tosland,sland, too Americanmericanmerican Titleitleitleransfcr'fromFieitNationalCompany'sompany'sompany's escrowscrow heldccountccount heldeld attt Southwestouthwestouthwest Bankankank offfTexasexasexas innn Houston. Texasexasexascrow.account Houston,ouston,

MOIIIUDDINsigned-inthenn 10,2003,ovemberovember 10,2003, defendantefendantefendant SYEDYEDYED GHOUSEHOUSEHOUSE MOHIUDDINOHIUDDIN signedigned inn thehe2.2. onNovember10, 2003,pr**r a public,ublic, a$womofresenceresence off notary notaryotary public. andndnd causedausedaused tooo beee submittedubmittedubmitted tooo BLC,LC,LC, a AffidavitwornwornAffidavitffidavit

andndnd Security Securityecurity Agreement.greement.greement. .

On3.3. Onn orrr aboutboutNovemberovember 10.2003,0.2003,boutNovernber0'2003 ubmitted,bmitted, orrr93.causedausedaused tooo beee submitted,ubmitted,ubmitted, tooo BLCLCLC aa"CertificateCertificate off Insurance",ropertyroperty Insurance",nsurance", whichnn whichhich heeropCrty on he

International'nisrepresentedisrepresented a "WindlHail andndnd Flood"lood"lood" policyolicyolicy fromromrom "MarkelMarkelMarkel International."nternational."isrcpresentedWind/Hail "Wind/flail

I3,2003' causedausedaussdOn4.4. Onn aboutrr aboutbout Novemberovemberovember 13,2003,3,2003,r

procegdsf $80'?7'77ousion of$SO,127.77mericanmericanmerican Titleitleitle Companyompanyompany offf tooustonouston too wireireire transferransferransfer loanoanoanproceedsroceeds of$80,127.77Bankank Cnstleaccountntonto accountccount numberumber xxxxxxx696xxxxxx696 att Fargoellsells Fargoargoumborxxxxxxx6g6atWells Bank. heldeldeld innn thehehe nameameameofffCastleastleirto

Developmentevelopmentevelopment andndnd Constructiononstructiononstruction Inc.nc.nc.

IS,llllll innnviolationiolationiolation offfTitleitleifle 18,8, Unitednitednited Statestatestates Code,ode,ode, Sectionsectionsections 3717171 andndnd 1343.343.343.

2000

GHOUSEco-conspirator2)causedBLCto fundloanproceeds throughGHOUSEMOHIUDDIN,co-conspirator (2) caused BLC to fund loan proceeds of$474,000 through a wireGROUSE MOHIUDDIN,co-conspirator (2) caused BLC to fund loan proceeds of $474,000 through a wire




Caseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 179ocumentocument 17979 Filedilediled innn TXSDXSDXSD onnn 07/08/20097/08/20097/08/2009 Pageageage 2111 offf 2777ocdment

CQUNITHREEQUNITHREEom{TTHREE(Consoiracv WisrFrau.d. U,S.C strdoConspiracyConspiracy too CommitommitommitWireire fnrqd. 188 U.S.C ... 371§§ 37171 1343)ndnd 1343)343)


fnrqd, l8 U.S.C..$$

Thehehe IrSydenhamManagementanagement Loans":oans":Sydenham lfanq":$ydenhflmvlaqqgeme,nt

("CDC"y(504)LoanProgram,.. Dcvelopment (ICDC")/(504)hehehe SBABABA Certifiedertifiedertified Companyevelopmentevelopment Companyompany (IrCDC Ir)/(504) Loanoan Programrogramprovidedrovidedrovided growingrowingrowing withusinessesusinesses withith long-term.ong-term. financingixed-rateixed-rate financinginancing fororor majorajorajorusinessos long-term,ixed-ratoprojectsrojectsrojects involvingnvolvingnvolving fixedixedixed assets,ssets,ssets, asuchuch ass landandand andndnd buildings.uildings.uildings.uoh

2.., Annn SBABABA 5040404 loanoanoan projectroject ancludedncluded arojeotnsluded loanoanoan securedecuredecured withithith a senioreniorenior Henienien fromromom a ofthe projcct securcdrivate-sectorrivate-sectorrivate-sector lenderenderender coveringoveringovering uppp tooo 5000 percentercentercent off thehe cost,rojectroject cost,ost, a loanoanoan securedecured

ftom pcrccntithithith a junioruniorunior lienienien aromrom a CDCDCDC (backedbackedbacked byyy 100 10000 SBA-guaranteedercentercent SBA-guaranteedBA-guaranteedIperccntofthe cos! l0ebenture)ebenture)ebenture) coveringoveringovering uppp tooo 4000 percentercent off thehe andost,ost, andnd a contributionontributionontribution offfattt leasteasteast 100

fiom helpcd. .ercentercentercent equityquityquity theromrom thehe smallmallmall businessusinessusiness beingeingeing helped.elped. .

3... Aroa ("HGALD'),ouston-Galvestonouston-Galvestonouston-Galveston Localrearea Localocal Developmentevelopmentevelopment Corporationorporationorporation (tlHGALDtI), a"HGALD"),nonprofitonprofitonprofit Texasexasexas corporation,orporation,orporation, wasas CDC CDCDC setetet uppp workork theithith thehe SBABABA andndndEs workwithprirrate-sectorendersrivate-sectorrivate-sector lendersenders tooo provideroviderovide financinginancinginancing tooo smallmallmall businesses.usinesses.usinesses.

Mainstreetainstreet LLC.ender.ender. LLC.LC. ("Mainstreet"Mainstreet wasender")ender") wasas a private-sectorrivate-sectorrivate-sector lenderenderender... MainsfreetLonder, ("MainsheetLendern)corporationorporation inocatedocated inn Chase,hevyhevy Chase,hase, MD. whichhichhich participatedarticipatedarticipated innn SBABABA 5040404 loanoanoanor?orationooated Cheqy MD,D,pmjects.rojects.rojects.

uSydenhem5, Thehehe "SSydenhamdenham Managementanagementanagement Loans"oans"oans" asss thehehe termerm isss usedsedsed innn thishishis Indictment,ndictment,ndictment, refersefersefers.. tenn$2,6 $1,5ooo a $2.62.6 millionillionillion loanoanoan byyy Mainstreetainstreetainstreet onnn orrr aboutboutbout Aprilprilpril 26,6,6, 2006,006,006, andndnd a $1.51.5

HGALDC. whioh I00%illionillionillion loanoanoan fromromrom HGALDC,GALDC, washichhich wasas backedackedacked byyy a SBA-guaranteed00%00% SBA-guaranteedBA-guaranteeddebsnture. .ebenhrre.ebenhrre.

6, Managementydenhamydenham Managementanagement wasnc.nc. wasas a Texasexasexas corporationorporationorporation ownedwnedwned byyy defendantefendantefendant.. Sydcnham Ino.SAIRAENNIFERENNIFER SAIRAAIRA SYDENHAM.YDENHAM.YDENHAM.ENNTFBR

7, Imaginemagine Hospitalityospitality Inc.nc. wasas a Texasexas corporationorporation owned.bywned.by de fendan t .e fendan t ...

8.. AmericanNationalTitle Cor4panync, ov',nednc.nc. wasasas a Texasexasexas corporationorporationorporation partlyartlyartly bywnedwned byy|.rororr,r-rl' anu J.E!!tI\lf.clL D.|lltf.tlefendantefendant andnd JENNIFERENNIFER SAIRAAIRA

whoYDENHAM,YDENHAM, whoho performederformederformed realealeal estatestatestate settlementettlementettlement closingslosingslosings fororor thehehe companyompanyompany asss

annn

escrowscrowscrow

agent.gent.gent. . .

SYDEIIHAM,

nRamada9... Thehehe Inn,"RamadaRamada Inn,"nn," asss thehehe termerm isss usedsedsed innn thishishis Indictment,ndictment,ndictment, refersefersefers tooo a hotelotelenn hotel,formerlyormerly brandedranded ass a Holidayoliday Inn,nn, locatedocated attt tltlEll-Y t tdlltlg..r aD A l l t' r tt ' l, ' ' l l ,, r - IUU' . ,.EL' t ta-

Texas,exas.cxas.

211t




Filedilediled innn TXSDXSDXSD onnn Page7108/20097108/2009 Pageage 2222 offf 2777aseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797979 0710812009

THEHEHE CONSPIRACYONSPIRACYONSPIRACY

onromrom onn orrr aboutboutbout Aprilprilpril and1,2005,1,2005, andnd continuingontinuingontinuing tooo onnn about1'1' aboutbout Aprilprilpril 28,8,8, 2006,006,006, innn theheherorn I l, 2005, or

DistrictouthernouthernDistrictistrict offfTexasexasexas andndnd elsewhere,lsewhere,lsewhere, defendants,efendants,efendants,outhenr

dididid knowinglynowinglynowingly conspireonspireonspire andndnd agreegreegree withogether,ogether, withith eachachach other,ther,ther, andndnd withithith othersthersthers knownnownnown andndogcthcr, a1d

tonknownnknown too thehehe grandrandrand jury,ury,ury, tooo commitommitommit offensesffensesffenses againstgainstgainst thehehe Unitednitednited States,tates,tates, thathathat isss violationsiolationsiolations offf

Titleitleitle 18,8,8, Unitednitednited Statestatestates Code,ode,ode, Sectionectionection 1343343343 (wirewirewire fraud).raud).raud).

unknovrn

0BJECTSOr CON.$PTR.ACYBJECTSBJECTS OFF THEHEHE CONSPIRACYONSPIRACY

l... objeot ttreschsme rcasonabty

fluther

Ittt wasasas annn objectbject offf thehe conspiracyonspiracyonspiracy thathathat thehehe defendantsefendantsefendants andndnd theirheirheir co-conspiratorso-conspiratorso-conspiratorsdevisedevisedevised a schemecheme tooo defraudefraudefraud innn whichhichhich ittt wasasas reasonablyeasonably foreseeableoreseeableoreseeable thathathat wireireirecommunicationsommunicationsommunications wouldouldould beee usedsedsed tooo furtherurther thehehe scheme.cheme.cheme.

2... **piru.y thatdefendantssclrme

MainsheetLonder,cedits,assets, proporly

Mainstreot bymOansfmateriallyfalsefraudulcnt prcmises,

facts.acts.

Ittt wasasas a furtherurtherurther objectbjectbject offf thehehe conspiracyonspiracy thafdefendantshafdefendants andndnd theirheirheir co-conspiratorso-conspiratorso-conspiratorsknowinglynowinglynowingly andndnd willinglyillinglyillingly executedxecutedxecuted andndnd intendedntendedntended tooo executexecutexecute aschemecheme orrr artificertificertifice tooodefraudefraudefraud Mainstreetainstreet Lender,ender, HGALDC,GALDC,GALDC, andndnd SBA,BA,BA, andndnd tooo obtainbtainbtain monies,onies,onies, funds,unds,unds,credits,redits, assets.ssets. securities,ecurities,ecurities, orrr othertherther propertyroperty ownedwnedwned byyy orrr underndernder thehehe custodyustodyustody orrrcontrolontrolontrol offfMainainstreettreet Lender,ender,ender, HGALDC,GALDC,GALDC, andndnd SBABABA byy meanseans offmateriallyaterially falsealseandndnd fraudulentraudulent pretenses,retenses,retenses, representationsepresentationsepresentations andndnd promises,romises, includingncludingncluding theheheconcealmentoncealmentoncealment offfmaterialaterialaterial facts .

3, 3.. deftndants

Ioan.

Ittt wasasas a furtherurtherurther objectbjectbject offf thehehe conspiracyonspiracyonspiracy thathathat thehehe defendantsefendants andndnd theirheirheirco-conspiratorso-conspiratorso-conspirators wouldouldould andndnd dididid receiveeceiveeceive proceedsroceedsroceeds offf thehehe Sydenhamydenhamydenham Managementanagementanagementloan.oan.

ovERTACTSVERTVERT ACTSCTS

Withithith thehehe foregoingoregoingoregoing objectsbjectsbjects andndnd othertherther objectsbjectsbjects innn view,iew,iew, thehehe overtollowingollowing overtvert actsctscts wereereere

committedommittedommitted byyy thehehe defendantsefendantsefendants andndnd theirheirheir co-conspiratorso-conspiratorso-conspirators innn furtheranceurtheranceurtherance offf thehehe conspiracy,onspiracy,onspiracy, innn thehehe

fotlowing

Southernouthern ofistrictistrict offTexasexasexas andndnd elsewhere:lsewhere:lsewhere:outhcmDistriot

2222




Caseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797979 Filedilediled innn TXSDXSDXSD onnn 07/08/20097/08/20097/08/2009 otageageage 2333 27ff 277

1... Onnn orrr aboutbout Aprilprilpril 2005,1,1, 2005,005, defendantsefendantsefendants andndnd l,purchased causdENNIFERENNIFERENNIFER SYDENHAMYDENHAMYDENHAM orurchased,urchased, orr toausedaused too beee purchased,urchased,urchased, Wellsellsells Fargoargoargo

Bank,ank,ank, NAAA Cashier'sashier'sashier's Checkheckheck #0040701193,0040701193,madeade toayableayable too Nationalmericanmerican NationalationalTitleitleitle Companyompanyompany innn thehehe amountmountmount offf$250,000.250,000.250,000.

#0040?0tg3,madepapble Americas

2... Onnn orrr aboutboutbout Mayayay 9,,, 2005,005,005, defendantefendantlefendant byntnt byyfexed, nletteroracsimile,acsimile, orr causedausedaused tooo beee aaxed,axed, a AgreementLetterLetter Agreementgreement foror Purchaseurchase Salenqnq Saleale offfacsimilc, forPurchasean{Texas,n thsprcviousolidayolidayoliday Innnnnn innn Houston,ouston,ouston, Harrisarrisarris County,ounty,ounty, toexas,"exas," too thehe ownerreviousrevious ownerwner offf thehehe

Ramadaamadaamada Innnnnn hotel.otel.otel.

3... Onnn orrr aboutboutbout Mayayay 11,2005,1,2005, defendantefendantl, 2005,defcndant Olmed,lmed, orrj:: ,causedausedaused tooo beee theonned,onned, thehe corporationorporationorporation I p p tyy • d herein.erein.ormed,

Onnn orrr aboutboutbout Mayayay 12,2, defendant005,005, defendantefendant JENNIFERENNIFERENNIFER SAIRAAIRAAIRA SYDENHAMYDENHAMYDENHAM formed,ormed,ormed,... 12,2445,orrr toausedaused too beee theonned,onned, thehe corporationorporationorporation Sydenhamydenham Management,lnc., unindictednindictedherein.erein.erein.

causcd formed, Management, Inc.,anagcment,Inc,,ydenharn unindieted

5... Onnn orrr aboutboutbout Decemberecemberecember defendant4,2005,4,2005, defendantefendant SAIRAENNIFERENNIFER SAIRAAIRA SYDENHAMYDENHAMYDENHAM4,2005, JENMFERsubmittedubmittedubmitted orrr causedausedaused tooo beee submittedubmittedubmitted tooo Lenderainstreetainstreet Lenderender andnd aGALDCGALDC a falsealsealseainstrcst aridHCef,OCandndnd signedraudulentraudulent signedigned SBABABA 413ormorm 41313 Personalersonalersonal Financialinancialinancial Statementtatementtatement datedatedatedDecemberecemberecember 15,2005.5,2005.5,2005.

freudulent Foim

'6. Onnn orrr aboutboutbout Januaryanuaryanuary 23,3, 2006,006, JENNIFERefendantefendant JENNIFERENNIFER SAIRAAIRAAIRA SYDENHAMYDENHAMYDENHAMsubmiffed submified Mainsteet

"6.6. 23,2006,defendantorubmittedubmitted orr causedausedaused tooo beee toubmittedubmitted too Lenderainstreetainstreet Lenderender a loanoanoan commitmentommitmentommitment

letter,etter,etter, onnn whichhichhich shehehe acceptedcceptedccepted thehehe termsermserms andndnd conditionsonditionsonditions offf thehehe SydenhamydenhamManagementanagementanagement loan.oan.oan.

$ydenham

On... Onn orrr aboutboutbout Februaryebruaryebruary 10,2006,0,2006, defendantefendant SAIRAENNiFERENNiFER SAIRAAIRA SYDENHAMYDENHAMYDENHAM0,2006,defcndantENNIFERcausedausedaused thehehe followingollowingollowing signedignedigned documentsocumentsocuments tooo beee toubmittedubmitted too Mainstreetainstreetainstreet Lenderenderender byyyubmittcdfacsimile:acsimile:aosimile:

Itt datedated Augustugust I,,'.. A "OneOne too Fourour Familyamily 'ff'deueu't2005,005, foror thehe propertyroperty att Texas;exas;l?5:",#ffi-Jliffi' f ; 'U "!!-' t too Contractontract Concerningoncerning thehe Propertyroperty att

Texas;"exas;" and,nd, . b..b' • "n ,.u', _

ryt+:::rffj,ton'omnsthePropertv"rxSectionA "SectionSection Exchange031031 Exchangexchange datedgreement"greement" datedated Februaryebruaryebruary I, 2006.... l03l Agreementu 1,2006.,2006.

On... Onn orrr aboutboutbout Februaryebruaryebruary 14,4,4, 2006,006,006, defendantefendantefendant SAIRAENNIFERENNIFER SAIRAAIRA SYDENHAMYDENHAMBNNIFBR SYDENIIAMsubmittedubmittedubmitted orrr causedausedaused tooo beee submittedubmittedubmitted Lendero.Mainstreeto.Mainstreet Lenderender andndnd HGALDC:GALDC:GALDC:o.Mainsueet

a... A loanoanoan application,pplication,pplication, onnn whichhichhich ''N/A'' wasasas falselyalselyalsely reportedeportedeported onnn thehehe sectionectionection offfN/Authehehe loanoanoan applicationpplicationpplication thathathat requiredequiredequired thehehe disclosureisclosureisclosure offf and,Affiliates";Affiliates"; and,nd,Affrliatesn;

2333





qnd. b.. A falsealsealse fraudulentndnd fraudulentraudulent signedignedigned SBABABA Formormorm 4131313 Personalersonalersonal Financialinancialinancial

datedtatementtatement datedated Decemberecember 31,2005.1,2005.tat€ment Deccmber3l, 2005,

On... Onn orrr aboutboutbout Februaryebruaryebruary 23,2006,3,2006,3,2006, defendantefendantefendant JENNIFERENNIFERENNIFER SAIRAAIRAAIRA SYDENHAMYDENHAMYDENHAMsubmittedubmittedubmitted orrr causedausedaused tooo beee submittedubmittedubmitted tooo SBABABA a signedignedigned SBABABA "ApplicationApplicationApplication fororor

Sectionectionection 5040404 Loanoanoan (FormFormForm dated244)"244)" datedated Februaryebruaryebruary 15,2006.5,2006.5,2006.244)n

Onnn orrr aboutboutbout Marcharcharch 6,, 2006,006, JENNIFERefendantefendant JENNIFERENNIFER SAlRA SYDENHAMYDENHAMYDENHAM0.0.0, 6,2006,defendant SAIRAAIRAsubmittedubmittedubmitted orrr causedausedaused tooo beee submittedubmittedubmitted tooo Mainstreetainstreetainstreet andenderender andnd HGALDCGALDCGALDC a falsealsealse

andndnd fraudulentraudulentraudulent signedignedigned SBABABA Formormorm 4131313 Personalersonalersonal Financialinancialinancial Statementtatementtatement datedatedatedknder

Decemberecemberecember 31,1, 2005.005.1,2005.

11.l . Onnn orrr aboutboutbout Marcharcharch 6,, 2006,006, defendantefendant 1. orubmitted,ubmitted, orr,2006, bmitted,causedausedaused tooo beee aubmitted,ubmitted, a "CertificateCertificate offLiabilityiability Insurance,nsurance,II onn whichhich heeubnitted, "Ccrtificate n hcmisrepresentedisrepresentedisrepresented a GeneralCommercialCommercial Generaleneral Liability"iability"iability" policyolicyolicy fromromrom MarkelarkelarkelCommerpial

Insurancenternationalnternational Insurancensurance Company.ompany.ompany.ntemational

12, Onnn orrr aboutboutbout Marcharcharoh8,,, 2006,006,006, defendantefendantefendant JENNIFERENNIFERENNIFER SAIRAAIRAAIRA SYDENHAMYDENHAMYDENHAM2.2.submittedubmittedubmitted orrr toausedaused too beee toubmittedubmitted too Mainstreetainstreet Lenderender HGALDCndnd HGALDCGALDC a signedignedigned."SBASBASBAAuthorizationuthorizationuthorization fororor Debentureebentureebenture Guarantee:" -

cawed submittEd Meinsileet,endersndGuarantee: I .luarantee."

On3.3. Onn orrr aboutboutbout Aprilpril 26,2006, defendantefendantefendant JENNIFERENNIFERENNIFER SAlRAAlRA6, SAIRASYDENHAMYDENHAMYDENHAM signedignedigned aa3. Apri126, 2006,006,f1HUD-1HUD-I Statementtatementt'l showed-illatHUD-I Settlementettlementettlement Statement" fromromrom Americanmericanmerican Nationalationalational Title,itle,itle, whichhichhich showed·ihathowed.that

Mortgage"A&KA&K Mortgage"ortgage" madeadeade a $1,080,0001,080,0001,080,000 loanoanoan tooo financeinanceinance thehehe salealeale offfpropertyropertyroperty attt 1026026Bayouayouayou Island,sland,sland, Houston,ouston,ouston, Texas.exas.exas.'A&K I026

14.4.4. On Onn orrr aboutboutbout Aprilprilpril 26,6,6, 2006,006,006, JENNIFERefendantefendant JENNIFERENNIFER SAIRAAIRAAIRA SYDENHAMYDENHAMefendanl SYDENILAMsubmittedubmittedubmitted orrr causedausedaused tooo submittedee submittedubmitted tooo Lenderainstreetainstreet Lenderender andndnd HGALDCGALDCGALDC a signedignedignedc Mains&et"LoanLoanLoan Agreement"greement" "Certificatendnd "CertificateCertificate offfAdditionaldditionaldditional Investment."nvestment."greemenf'nnd Investment.ft

Apri126. signedignedigned a,5.,5.5. Onnn orrr aboutboutbout Aprilpnl26.6,2006,006,006, defendantefendantefendantnBill"Bill offf Sale"ale"ale" andndnd "WarrantyWarranty witheedeed withith Lien."endor'sendor's Lien."ien."1BiI! "'WanantyDced Vendot's

Apri126, andndsi • ta tat

16.6.6. qnnn orahoutrahoutraboutAprilpril 26,6, 2006,006,006, defendantsefendantsefendantsJENNIFERENNIFERENNIFER SAIRAAIRAAIRA SYDENHAMYDENHAMYDENHAM signeigne • •••Ameripointmeripointmeripoint Titleitleitle offfHouston.ouston.ouston.

17.7.7. .- Onnn orrr aboutboutbout Aprilprilpril 26,6,6. 2006,006,006, defendantsefendantsJENMFER causedAIRAENNIFERENNIFER SAIRAAIRA SYDENHAM,YDENHAM,YDENHAM, andnd

fransfqT e ofmountmount offainstreetainstreetainstreet Lender,ender,ender, LLC,LC,LC, tooo wireireire transferransfer oanan proeeeroeee s m N,A., Marylan4 thsSteding4,100,0004,100,0004,100,000 fromromrom Wachoviaachoviaachovia Bank,ank,ank, in.A.,.A., inn Bethesda,ethesda,ethesda, toaryland,aryland, too thehe Sterlingterling

Bankankank innn Houston,ouston,ouston, Texas.exas.exas.

2444 ,





18.8.8. Onnn orrr aboutboutbout Aprilprilpril 27,7,?,2006,006,006, defendanefendan causedausedAmaripointTitlc Joanmeripointmeripoint ofitleitle off Houstonoustonouston tooo wireireire transferransfer loan proceedsroceeds inn amounthehe amountmount offf$903,038.67903,038.67903,038.67 fromromrom Sterlingterlingterling Bankankank innn Houston,ouston,ouston, Texas,exas,exas, tooo thehehe accountccountccount offf ImaginemaginemagineHospitalityospitalityospitality heldeld attt Wellsellsells Fargoargoargo Bank,ank,ank, N.A.,.A.,.A., innn Sananan Francisco,rancisco,rancisco, California.alifornia.eJd Califomia.

19.9.9. Aprilpril 28,8,2006,nnn orrr aboutboutbout April2S, defendant006,006, defendantefendant causedausedausedAmeripointmeripointmeripoint Titleitleitle offf Houstonoustonouston tooo wireireire transferransferransfer loanoan inroceedsroceeds inn thehehe amountmountmount offfoan procceds$1,045,433.551,045,433.551,045,433.55 fromromrom Sterlingterlingterling Bankankank innn Houston,ouston, toexas,exas, too thehehe accountccountccount ofImaginefImagineoustoqTcxq8, of Imagine

lfr/ells N.A, Francisco,rancisco,ospitalityospitalityospitality heldeldeld attt Fargoellsells Fargoargo Bank,ank,ank, N.A.,.A., innn Sananan FranCisco, California.alifornia.alifornia.

20.0.0. Onnn orrr aboutboutbout Aprilprilpril 28,8,8, 2006,006,006, defendantefendantefend*r causedausedausedgf Houstonmeripointmeripointmeripoint Titleitleitle tofHoustonfHouston too wireireire transferransferransfer loanoanoan proceedsroceedsroceeds innn thehehe amountmountmount offf

$2,935,012.622,935,012.622,935,012.62 Sterlingromrom Sterlingterling Bankankank innn Houston,ouston,ouston, toexas,exas, too a creditorreditorreditor ofImaginefImagineInc.nc. .

ftom Toxas, of ImagineHospitality,ospitality,ospitality, Inc..

Allllll innn violationiolationiolation offf Titleitleitle 18,8,8, Unitednitednited Statestatestates Code,ode,ode, Sectionsectionsections 3717171 andndnd 1343.343.343.

gouNTFouROUNTOUNT FOUROUR

SouthernouthernDistrictistrictnnn orrr aboutboutbout Septembereptembereptember 10,2003,0,2003,0,2003, innn thehehe SouthernDi'strict offfTexas,exas,exas, defendantefendantefendant

JENNIFERENNIFERENNIFER SAIRAAIRAAIRA SYDENHAM,YDENHAM,YDENHAM,

dididid knowinglynowinglynowingly engagengagengage andndnd attemptttemptttempt tooo inngagengage inn a monetaryonetaryonetary affectingransaction,ransaction, affectingffecting interstatenterstatenterstate andndndtgage finnsactioq

commerctr, properfyof aoreignoreignoreign cO!J1merce, innn criminallyriminallyriminally derivederivederived propertyroperty valuefafa valuealue greaterreaterreater thanhanhan $10,000,10,000,10,000, thathathat isss thehehe

of finds off$60,591.8060,591.80 firndsireireire transferransferransfer infftmdsfftmds inn thehehe amountmountmount 0[$60,591.80 tooo Castleastleastle Constructiononstructiononstruction Company,ompany,ompany, suchuchuch fundsunds

havingavingaving beeneeneen derivederivederived aromrom a specifiedpecifiedpecified unlawfulnlawfulnlawful thatctivity,ctivity, thathat isss wireireire fraud.raud.raud.tom acfivity,

Innn violationiolationiolation offfTitleitleitle 18,8,8, Unitednitednited Statestatestates Code,ode,ode, Sectionsectionsections 1957957957 andnd 2..ndz.

NOTICEOTICEOTICE OFFF CRIMINALRIMINAL FORFEITUREORFEITURERIMINAL-EORFEITURE(18.U.s.C..18 U.S.C ge82(aY.lIS V.S.C ... § 982(a)(J))82(a)(1»))

Pursuantursuantursuant tooo Titleitleitle 18,8,8, Unitednitednited Code,tatestates Code,ode, Sectionectionection as82(a)(1),82(a)(1), ass a resultesultesult offf commissionhehe commissionommissiontaies 982(a)(l), ths

offa Tittefa violationiolationiolation offf 18,itleitle 18,8, Unitednitednited Statestatestates Code,ode,ode, Sectionsectionsections 1956(h)956(h)956(h) asss chargedhargedharged innn Countountount Onenene offfthehehe

indictrnent,notisendictment,ndictment, isoticeotice iss giveniveniven thathathat thehehe defendants,efendants,efendants,

2555




Caseasease 2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797979 Filedilediled innn TXSDXSDXSD onnn 07/08/2009·7/08/2009· Page26ageage 266 27ff 2777lO8l2OO9' ot

REHMANBDULBDUL REHMANEHMAN DAAWOOD,OOD,

ABDULBDULBDUL SHAKIRHAKIRHAKIR MEMON,EMON,EMON,ABDTJL DAWOOD,

ANEESNEES AKHTARKHTAR KHAN,HAN,

KHALIDHALIDHALID ZIAIAIA SIDDIQUI,IDDIQUI,IDDIQUI,

SHAHIDOHAMMADOHAMMAD SHAHIDHAHID SIDDIQUI,IDDIQUI,IDDIQUI,SYEDYEDYED GULAMULAMULAM MOHAMMAD,OHAMMAD,OHAMMAD, .

MOHAT4MAD

••• ••• I Ill:II I 'Il:KAMALAMAL AHMADHMAD KHAN,HAN,

JENNIFERENNIFER SAIRAAIRA SYDENHAM,YDENHAM, andnd

propefi,hallhallhall forfeitorfeitorfeit tooo thehehe Unitednitednited Statestatestates allllll realroperty,roperty, realeal andndnd personal,ersonal,ersonal, involvednvolvednvolved innn thehehe suchuchuch offenseffenseffense andndnd

propprty:llllll propertyropertyroperty traceableraceableraceable tooo suchuchuch property,roperty,roperty, including,ncluding,ncluding, bututut nototot limitedimitedimited to,o,o, thehehe followingollowingollowing property:roperty:

Approximatelypproximately (seven7,080,668.897,080,668.89 (sevenseven million,illion,illion, eighty-thousand,ighty-thousand,ighty-thousand, six-hundredix-hundredix-hundred sixty-eightixty-eightixty-eight dollarsollarsollarspproximately$7,080,668.89

centsY innndndnd eighty-nineighty-nineighty-nine centsYin Unitednitednited Statestatestates Dollars.ollars.

Substituteubstituteubstitute Assetsssetsssets

cents) Dollars,

properfyhatnnn thehehe eventventvent thathathat thehehe propertyroperty ishathat iss subjectubjectubject tooo forfeitureorfeitureorfeiture asss aresultesultesult offfanynyny actctct orrr omissionmissionmission

off defendants:hehe defendants:efendants: 'fthe

a.., cannotannotannot beee locatedocatedocated uponponpon exercisexercisexercise offfdueueue diligence;iligence;iligencc;

b, oftheas.. hasas beeneeneen placedlacedlaced beyondeyondeyond thehehe jurisdictionurisdictionurisdiction off Court;hehe Court;ourt;

hasasas beeneeneen orransferredransferred orr soldoldold to,o,o, 01' depositedepositedeposited withithith a thirdhirdhird party;arty;arty;... transfened orr

has... hasas beeneeneen substantiallyubstantiallyubstantially iniminishediminished inn or,alue;alue; or,r,iminishd velue;

e..,hasasas beeneeneen commingledommingledommingled withithith othertherther propertyropertyroperty whichhichhich cannotannotannot beee dividedividedivided withoutithoutithout

diffficulty;ifficulty;ifficulty;

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Caseasease2:05-cr-00356:05-cr-00356:05-cr-00356 Documentocumentocument 1797929 Filedilediled innnTXSDXSDXSD onnn 07/08/20097/08/20097l08l2AA9 Pageageage2777offf2777

propefiyttt isss thehehe intentntentntentoffftheheheUnitednitednitedStatestatestatestooo seekeekeekforfeitureorfeitureorfeitureofffanynynyothertherther ofropertyroperty offthehehedefendantefendantefendantuppp tooo

property. 21. 853(p).hehehevaluealuealueofffsuchuchuchproperty,roperty,pursuantursuantursuant tooo Titleitleitle21,1,UnitednitednitedStatestatestatesCode,ode,ode, Sectionectionection 853(P).53(P).

AA TRUERUERUEBILL:ILL:ILL:

ORIGINALRIGINAL SIGNATUREIGNATURE ONN FILEILE

FOREPERSONOREPERSONOREPERSONOFFFTHEHEHE GRANDRANDRAND JURyURYURY

DONALDONALDONALDJ... DeGABRIELLE,eGABRIELLE,eGABRIELLE, JR.R.R·STATES·ATIORNEYNITEDNITEDNITED ·STATES·ATTORNEYTATES.ATTORNEY

(])y:y: C?JPATTIATn HUBERTUBERT BOOTHOOTH

AssistantssistantssistantUnitednitednited Attorneytatestates Attorneyttorneytates

."

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Kapadia Indictment

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