Richard Neiswonger Indictment

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$ F-i l1 DANIEI- c), BOGDEN 1United smtes Attorney ) I .ICJL - 5 2011 ' .l

2 J. GREGORY DAMM j j! Assistan.t United States Atlerne

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5 'UNITED STATES DISTRICT CO URT

6 D ISTR IC T O F N EV A D A7

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9 UNITED STATES 0F AMERICA, ) CRIMINAL m DICTMENT) '

10 Plaintiff, ) 2: l l-cr- ..'l)

1 l vs. )) VIOLATIONS:

1 2 W IL L I AM S . RE E ,D )RICHARD C. NEISWONGER, and ) 18 U.S.C. j 371 - Conspiracy to Defraud the

l 3 WENDELL L. WAITE, ) United States)

14 Defendants. 18 U.S.C. j 1341 - Mail Fraud15 18 U.S.C. j 1343 - Wire Fraud16 18 U.S.C. 371 - Conspiracy to Commit Mail

Fraud and W ire Fraud1 7

26 U.S.C. j 7201 - Attempt to Evade orl 8 Defeat Tax

19 l 8 U.S.C. j l956(h) - Money LaunderingI Conspiracy1 20 'l 18 .U S.C. j l 028A(a)(1) - Aggravatedldentity!

21 Theft!p 22i

! 23 . . .i: 24 . . .

25 . . .

26 . . .

Case 2:11-cr-00247-JAD-CWH Document 1 Filed 07/05/11 Page 1 of 30

I1 Sum m ary of ChargesDefendant Counts CharRe2

.

RICHARD C. 1 18 U.S.C. j 37l - Conspiracy to DefTaud the3 NEISW ONGER United States '4 2-8 1 8 U

.S.C. j 1341 - Mail Fraud5 9-1 4 18 U

.S.C. j 1 343 - Wire Fraud6 15 18 U

.S.C. j 371 - Conspiracy to CommitM ail Fraud and W ire Fraud

730 18 U.S.C. j 1956(h) - Money Laundering8

. conspiracy

9WILLIAM S. REED 1 1 8 U.S.C. j 37 l - Conspiracy to Defraud the

10 United States

l 1 2-8 18 U.S.C. j 1341 - Mail Fraud12 9-14 18 U.S.C. 5 1343 - W ire Fraud13 15 18 U.S.C. j 371 - Conspiracy to Cornmit

M ail Fraud and W ire Fraud14

16-29 26 U.S.C. j 7201 - Attempt to Evade or15 Defeat Tax

16 30 18 U.S.C. j 1956(h) - Money LaunderingConspiracy

1731-32 18 U.S.C. j 1028A(a)(1) - AggravatedI

u entity TheftI l 8I

l 9I WENDELL L. WAITE 1 18 U.S.C. j 37 1 - Conspiracy to Defraud the

l 20 United Statespi 21 THE GRAN D JURY CHARGES THAT:

22 INTRODUCTIONi mj-jje parties. 23(

24 (1) At times relevant to this indictment, defendant RICHARD C. NEISW ONGER was25 engaged in sales and m arketing ventures and resided in Las Vegms, N evada, On or about November

26 l3, 1996, the Federal Trade Commission (''FTC'') filed acomplaintagainst defendantltlcllAlo C.

2


1 NEISW ONGER, charging him with promoting, marketing, and selling a business opportunity with

2 false and misleading income claims among other deceptive practices, in violation of section 5(a) of3 the FTC Act. Specifically, the FTC alleged that defendant RICHARD C. NEISW ONGER was

4 deceptively marketing business training programs, at a cost of approximately $10,000 per customer,5 and misrepresenting the earning potential and other aspects of the program to consumers. On or

6 before February 28, 1997, defendant RICHARD C. NEISW ONGER stipulated with the FTC to the

7 entry of a court ordered Permanent lnjunction prohibiting him from such sales in the future.1 8 (2) At times relevant to this indictment, defendan! WILLIAM S. REED owned at least one d t W ILLIAM S

. REED was adm itted to practice law in9 residence in Las Vegas

, Nevada. Defen an

.

10 the State of Colorado from approximately 1975 until on or about August 4, 1997. Defendanti l 1 W ILLIAM S. REED is the author of the books BulleproofAsset Protecton.

12 (3) At times relevant to this indictment, defendant W ENDELL L. W AITE resided in Las13 Vegas, Nevada. Defendant W ENDELL L. W AITE was a licensed Certitied Public Accountant

14 (''CPA'') in Nevada, California arld Utah. Defendant W ENDELL L. W AITE was first licensed by15 the N evada State Board of Accountancy on or about September 24, 1976.

1 6 n e Entities

17 (4) From at leastNovember 4, 1998, and continuing through at least July 1 7, 2006, defendantl 8 RICHARD C. NEISW ONGER owned, operated, controlled and directed a business entemrise

19 initially identified as APO M arketing, purportedly a sole proprietorship, and later identified as APG

20 M arketing, Inc., as well as other name variatlts, collectively referred to herein ms ''APGM ''.

21 (5) On or about January 31, 2002, APGM , controlled by defendant RICHARD C.22 NEISW ONGER, was incorporated in the state of Nevada. The Nevada Secretary of State assigned

23 APGM entity number C2635-2002; defendantW ltzlulAM S. REED was named President, Secretar,y

24 and Treasurer; and, APG, Inc., was named as the Regfstered Agent. On or about February 1 , 2010,

25 the active status of this entity was perm anently revoked.

26 , . .

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(6) On or about April 5, 2005, defendant RICHARD C. NEISW ONGER caused APGM tobe reincorporated in the state of Nevada. The Nevada Secretmy of State assigned APGM entity

numberE0188842O05-4; defend/ tW CHAM C.NEISW ONGERwaS namedpresident, Secretac,Treasurer and oirector; and, Ai'e, Inc., was nmned the Registered Agent. As orvay 1, 2008, theactive status of this entity was revoked.

(7) Attimesrelevanttothis indictment, defendantltlcllxklm C. NElsW oNGERcontzolledat least one APOM entity actively engaged in the sales and marketing of an asset and income

concealment scheme, controlled at least one bank account used to execute operations and receive

proceeds on behalf of APGM and, as a named officer, engaged in at least one business enterprise as

APGM in partnership with defendant W ILLIAM S. REED and defendant W ENDELL L. W AITE.

(8) From at least October 23, l 998, and continuing througb at least July 17s 2006, defendantW ILLIAM S. REED owned, operated, controlled and directed a business enterprise initially

identified as Asset Protection Group, Inc., and later identified as APG, Inc., as well as other name

variants, collectively referred to herein as ''APGI''.

(9) On or about Octobei 23, 1998, defendant W ILLIAM S. REED caused APGI to becomeincorporated in the state of Nevada. n e Nevada Secretary of State assigned APGI entity number

(224889-98) defendant AVILLIAM S. REED was nmned ms Prsident, Secretm'y and Treasurer;

defendant W ILLIAM S. REED and defendant RICHARD C. NEISW ONGER were both named

as Directors; and ''Legal Forms +'' was named as the Registered Agent.

(10) On or about November l2, 1999, defendant RICHARD C. NEISW ONGER wasrem oved from APGI'S Amm al List of Officers tiled with the Nevada Secretary of State. Defendant

W ILLIAM S. REED rem ained the sole named Director of APGI through the tinal filing of APGI'S

Annual List of Officers.

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1 (1 1) On or about April 10, 2002, defendant W ILLIAM S. REED tiled a change certificate2 withNevada Secretary of State to change AP(JI'S Resident Agent from ''Legal Forms +'' to APG, Inc.

3 A s of Novem ber 1, 2008, the active status of this entity was revoked,

4 (12) At times relevant to this indictment, defendant W ILLIAM S. REED controlled at least5 one APGI entity actively engaged in im plementing an asset and incom e concealment scheme,

6 controlled at least one bank account used to execute operations and receive proceeds on behalf of

7 APGI and, as anam ed ofticer, engaged in at least one business entem rise as APGI in partnership with

8 defendant RICHARD C. NEISW ONGER and defendant W ENDELL L. W AITE.

9 (13) At times relevant to this indictment, defendant W ENDELL L. W AITE was a Nevada10 licensed CPA. From at lemst October 23, 1998, and continuing through at least July 17, 2006,

l 1 defendant W ENDELL L. W AITE owned, operated, controlled and directed at least one tax services

12 business entity,

13 (14) From on or about December 1 1, 2001, defendant RICHARD C. NEISW ONGER and14 defendant W ILLIAM S. REED engaged defendant W ENDELL L. W AITE to provide asset and

15 income concealment scheme development and endorsement as well as tax services for APGI. 0n or

16 about December 28, 2001 , defendant W ENDELL L. W AITE incorporated a new business entity,

17 W aite & Associates, Inc., in the state of Nevada. On or about June 26, 2002, a press release

18 announced a ''strategic alliance'' between Asset Protection Group and W aite & Asseciates, in which

19 the newly formed W aite & Associates was described as ''founded locally 25 years ago by CPA

20 W endell W aite''.

21 (15) At times relevant to this indictment, defendant W ENDELL L. W AITE controlled at22 least one entity actively engaged in delivering asset and incom e concealment scheme development,

23 including marketing, testim onials, trainings and tax services for APGM and/or APGI; controlled at

24 lemst one bank account used to execute services in support of and to receive revenue derived from

25 APGM and/or APGI; and, as a nam ed ofticer, engaged in at least one business engagem ent with

26 , . .

5


@ 1. .

1 APGM and APGI in partnership with defendant RICHARD C. NEISW ONGER and defendant

2 W ILLIAM S. REED.

3 (16) Despite the attemptcd appearance of separation conveyed by the use of numerous4 business names and entities, the defendants RICHARD C.NEISW ONGER, W ILLIAM S. REED

5 and W ENDELL L. W AITE combined their efforts, skills, funds, professional knowledge and other

6 personally held resources. ''Asset Protection Group'' was the promotional nam e in use by defendants

7 RICHARD C. NEISW ONGER, W ILLIAM S. REED and W ENDELL L. W AITE to offer,

8 endorse, mmket, and profit from the sale of an interwoven fabric of fraudulent products designed to

9 defraud the governm ent and other bona tide creditors. n ese fraudulent products were also sold to

10 and by ''consultants'' who purchased the ''business opportunity'' to sell this asset and income

1 l concealm ent scheme.

12 (17) The combined pursuit of profit from the asset and income concealment scheme by13 defendants, RICH ARD C. NEISW ON GER, W ILLIAM S. REED and W ENDELL L. W AITE,

14 was most frequently referred to as ''APG''.

1 5 The Schem e to Defraud

16 (1 8) From on or about October 23, 1998, and continuing through at lemst July 17, 2006, APG17 offered, endorsed, marketed, and protited from a scheme to defraud which included the sale of three

1 8 interrelated products, including: a) disguised corporate ownership services with associated barzk19 accounts; b) fraudulent so-called ''friendly liens'' of encumbrance generated without consideration;20 and c) consultant ''business opportunities'l to sell these fraudulent products on behalf of APG to the21 public.

22 (19) The APG scheme relied upon defendant W ILLIAM S. REED'S intepretation ofhe use of bearer shares as outlined in his book, @23 elements of Nevada comorate law

, including t i

24 BulletproofAssetprotection. ApGfonnedovertwothousand (z,ooolhlevadacorporations forclients !I25

using defendant W ILLIAM S. REED as the corporate oflicer antl/or director. APG falsely informed I

26 . . . '

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customers that the lmnamed owners of each ccrporation could truthftllly deny their ownership of the

corporation.

(20) APG promoted the falsehood that one could own and control a corporation and itsassigned assets without that ownership and control ever having to be acknowledged, and that ene

could hide the ownership and control of assets from creditors. Three APG versions of incomoration

were offered to APG customers: a) the so-called Assetprotection Corporation,'' usedto conceal assetownership; b) the se-called tt-f'ax Savings Nevada Cczporatitm,'' designed to ''shift income'' toNevadato evade t,axation; and c) the so-called Intemational Business Comoration (''IBC''), designed to move''liquid assets'' (cash) offshere anenymously through the use of an APG escrow acceunt.

(2 1) As part of its scheme, APG opened cozporate bank accounts using thenazne of the clients'corporations. APG generated revenue from each newincorporation, each corporate renewal, and each

escrow account transaction,

' (22) APG provided clients fraudulent lien and lien release preparation services by creating''friendly'' encumbrance documents on client assets in the form of tnlst deeds or notes to be held by

client APO corporations. The clients would formally record the liens at their appropriate county

recorder's office, The false appearance. of an encumbrance and equity transfer, known as a so-called

''friendly lien,'' was a fraudulent conveyance' of an interest in property to a nominee for no

consideration. The objective of a so-called ''fliendly lien'' was to defraud creditors by creating thefalse impression that little or no equity was available in a respective client's property. Creating this

false impression allowed APG clients to protect equity in their assets by discouraging bona fide

creditors, including the government, from executing liens on assets that would appear to be over-

encumbered.

(23) APG also provided lien releases to clients allowing them to eliminate the fraudulent liensand to un-encumber the asset. APG provided these lien releases either subsequent to or simultaneous

with the sale of the fraudulent liens.


(24) APG generated revenue from each sale of a fraudulent lien and from each sale of anassociated lien release.

(25) APG promoted and sold an ''%set protection'' business opportunity package known as''the APG Program '' nationwide and promised ptlrchasers ''unlimited eam ing potential.'' lndividuals

who purchased the APG Program, typically at a price of $9,800, became APO ''consultants'' andreceived training in the marketing, sale and use of the APG scheme from defendants RICHARD C.

NEISW ONGER, W ILLIAM S.REED M dW ENDELL L.W AITE. TIZeAPG consultants, inturn,

soldthe APG assetand income concealm ent schemeto custom ers, referredto as ''clients'' who desired

to distancethemselves f'rom their liabilities and to conceal their assets from current as well as potential

litigants, creditors, govermnent agencies, and the couds. APG consultants received a portion of the

proceeds from their sale of the APG asset and income concealment scheme.

(26) APG generated revenue from every sale of the APG business opportunity program to anindividual and each such sale created a new consultant for APG who would in turn prom ote APG

products and senzices.

(27) From Octobey 23, 1998, through and including at least July 17, 2006, defendantsY CHAM C.NEISW ONGER,m LLIAM S.M EDR dW ENDELLL.W AITE,CaUSedat least

the followingvolttmeof assetandincome concealment activityto occurwhile doingbusinessas APG:

(a) From on or about the incorporation date October 23, 1 998, and continuing atleast through the receiver's suspension of APG corporate services business effective Janua!y 4, 2007,

APG sold the APG business opportunity program to at least 1 ,000 consultants who became prom oters

of the APG concealment schem e nationwide. The purchase price per consultant varied. The m ost

frequently occuning price point was $9,800. The receiver reported to the FTC, estimated grossreceipts from sales of the A PG business opportunity program to consultants, in excess of nineteen

million ($19M) dollars during this period. This Iigure does not include product sales generated by theoonsultants.

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Il (b) From tm or about October 23, 1998, and continuing at least through Januaz.y2 4, 2007, W ILLIAM S.REED, through APG, tiled asthe ofticer, director orresident agent forat Ieast

3 2,559 disguised ownership corporations with the Nevada Secretary of State. Domestic incorporation

4 prices charged by APG to consultants were at least $795 per new corporation.5 (c) From March 20, 2002, through May 22, 2006, W ILLIAM S. REED, through6 APG, caused to be opened at least nine hundred (900) disguised ownership corporate bank accounts

. 7 with Nevada First Bank on behalf of APG clients, thus enabling clients to mask ownership of their

8 ftmds while still retaining control and use of this money. Defendant W ILLIAM S. REED was the

9 sole signatory on at least six hundred nineteen (619) of these accounts.10 (d) Between March 1, 2003, and June 30, 2006, APO received over sixty-threel l million ($63M) dollars in deposits and perfonned over sixty-two million ($62M) dollars in12 withdrawals through one of the bank accounts designated by APG during this time as an ''escrow''

13 accotmt. This escrow account was used by APG for the disguised movem ent of client funds. ' 14 (e) Between August 1, 2003, and June 30, 2006, APG sent over eleven million l 5 ($1 lMldollars offshoreto Iscnomineesr oughoneorieb- accounts designatedbyApG duringiE l 6 this time as an ''escrow'' account. This escrow account was used by APG for the disguised movement!

l 7 of client ftznds offshore to hide liquid assets from creditors.

l 8 (9 From on or about October 23, 1998, and continuing at least tlurugh January19 4, 2007, APG prepared at least fotlr hundred twentpsix (426) fraudulent encumbrances in the form20 of so-called ''friendly liens'' to be tiled by clients. The dcklla.r amount of these fraudulent

21 encumbrances exceeded one hundred lifty-two million ($l 52M) dollars and ranged from $7,000 to22 three million ($3M) dollars per lien, None of these liens represented a valid transaction. Their23 purpose w4s to create the appearance of reduced equity available to bona fide creditors, including the

24 federal government and the IRS.

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1 (g) From January through December 2004, at least ninetpthree client ''corporate''2 tax referrals were made by APG to the tax service practice of defendant W ENDELL L. W AITE. A

3 $300 referral payment was made by APG to defendant W ENDELL L. W AITE for each of the4 referrals during this tim e.

5 (28) On or about July 17, 2006, the FTC brought a civil contempt action against defendant6 RIC C. NEISW ONGER, defendantW lti lAM S.REED, andthe APG enterprise. 'IN FTC

7 allegedthatdefendantltlcHAu C.NEISW ONGER M d defendantW llzlulAM S. REED violated

8 defendant RICHARD C. NEISW ONGER'S 1 997 Permanent Injunction by promoting, marketing,9 and selling the APG business opportunity scheme through misrepresentations and omissions of

10 m aterial facts.

l 1 (29) Following the July 17, 2006, FTC intervention into the APG operations, the following12 events occurred in the lives of defendants RICHARD C. NEISW ON GER, W ILLIAM S. REED

13 and W ENDELL L. W AITE:

14 (a) On or about September 28, 2010, defendant W ILLIAM S. REED stipulated1 5 inthe United States TM Court to personal income tax liabilitydeficiencies (understatement) in excess16 of thirteen million dollars ($13M) forhis 2001 through his 2006 personal income tix returns as tiled.17 (b) 0n or about March 27, 2008, the FTC appointed receiver, estimated APG18 proceeds received by defendant RICHARD C. NEISW ONGER, after reinvestment in ongoing

19 operations, to have exceeded three million ($3M) dollars.20 (o) When questioned in 2008, defendant W ENDELL L. W AITE self-reported21 that he received 1#3 APG corporate tax service client referrals. Defendant W ENDELL la. W AITE

22 caused the preparation of over 400 tax rem rns for these clients for tax years 2002 tltrough 2006.

23 (d) On at least four separate dates of tiling, namely August 29, 2007,. December24 12, 2007; April 8, 2008; and M ay 8, 2008, the United States moved to foreclose outstanding federal

25 tax liens on the disguised corporate bank accounts of over seventy (70) APG clients held at Barik ofI1 26 . . .

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Nevada. The combined federal tax liabilities forthese APC; clients exceeded fourteen million ($ 1 4M)dollars for tax years 1 988 tluoug.h 2006.

COUNT ONEConspiracy

(18 U.S.C. j 371)(30) Paragraphs cme through twentpnine are re-alleged and incorporated herein by

reference.

(3 1 )and continuing thereafter up to and including no earlierthan January 4, 2007, in the District of Nevada

and elsewhere,

From on or about October 23, 1 99:, the exact date being unknewn to the Grand Jury,

w ILLIAM s REEDItlclu % c NEISWONGiR, and

wENIW L L.wAITE,defendants herein, did unlawfully, vollmtarily, intentionally and knowingly conspire, combine,

confederate, arld agree together and with each other and with other individuals both known and

unknown to the Grand Jury to defraud the United States by deceit, craR, trickery and dishonest means

for the purpose of im ped.

ing, impairing, obstructing, and defeating the lawful govenunent functions

of the Internal Revenue Service of the Tremsury Department in the ascertainment, computation,

assessment, and ccllection of revenue, to wit; federal tax liabilities.

M anner and M eans

(32) Amongthe mannerandmeans bywhichdefendants W ILLIAM S.REED: RICHARDC. NEISW ONGER, and W ENDELL L. W AITE, and their co-conspirators carried out the

conspiracy were the following;

(a) The defendants devised, marketed, promoted, directed,implemented a fraudulent scheme that was focused on the sale and promotion of

multiple asset and income concealment instruments, to include; so-called - ttAsset

Protection Corporations,'' lnternational Business Comorations (''IBCs''), ItTaX SavingsNevada Corpomtionss'' dfsguised corporate ownership bank accounts and so-called

controlled ancl/or

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''friendly liens.'' A1l of these products were promoted and/or sold by defendants

Y CHAM C.NEISW ONGER,W ILLIAM S.M ED aM W ENDELLL.W AITE

as a way for individuals to create anonlqnity, disengage them selves from assets they

continued to control, and to defraud creditors, including the govemment and the

Internal Revenue Service (''lRS'').The lncorporation Devices

(b) Through the use of various means, including the use of mail and wirecomm unications to clients, APG established corporations for clients for a fee,

(o) The corporations established by APG for their clients were separate anddistinct: the so-called tAsset Protection Corporation'' was used to conceal asset

ownership from creditors', the so-called 't-f'ax Savings Nevada Cop oration'' was

designed to ''shill income'' to Nevada so that clients could evade taxation; and the so-

called International Business Corporation (''IBC'') was designed to move ''liquidassets'' (cash) offshore anonymously through the use of an APG escrow account,(d) For those purohasing so-called is-f'ax Savings Nevada Corporationss''promotional materials indicated that the fee for this product included a free, two hour

consultation with defendantW ENDEl-zla L. W AITE'S tirm , W aite & Associates, Inc.

Records indicate that for a period of time, APG paid defendant W ENDELL L.

W AITE $300 fer each sc-called tG-f'ax Savings Nevada Colporation'' client.(e) Once a corporation was formed and sold to a client, APG, at the request ordirection of the client, applied for a nominee corporate bank account for the client's

corporation. 'I'he majority of these accotmts would list defendatlt W ILLIAM S.REED ms the sole authorized signatory on the account, Anyone else who wanted to

be an additional signor on the account needed to provide APG with a copy oftheir

identification and social security number. Books of checks containing defendant

12


'W ILLIAM S. REED'S facsimile signature would be sentto the client fortheir use in

accessing any funds in their disguised ownership corporate bank account.

(9 APG operated an ''escrow'' accotmt into which clients could wire their money,and according to the client's instructions, APG would then wire that money into the

client's disguised ownership comorate bank account or offshore. In connection with

this ''Escrow Accounts'' defendant W ILLIAM S. REED stated: ''W e recommend our

clients use an escrow accotmt to deposit funds, either ours or their lawyers', and then

the funds are transferred by us or their lawyer to a Nevada or offshore account. There

is no link between the client and any corporate account.'' He went on to say that, ''this

allows our client to arlswer honestly and truthftzlly, under oath, that he has never

moved money in or out of the country.'' APG charged fees for these

inccming/outgoing wires, including the gmater ()f: a ,$250 fee or .25% of the wiredollar amotmt to execute the wire transfer.

The So-called ''Friendlv Lien''

(g) n rough the use of vmious means, to include the use of mail and wirecommlmications made available by APG to clients, APG for a fee created so-called

''friendly liens'' for their clients.

(h) APG created, sold, marketed and/or endorsed so-called ''friendly liens'' toclients and consultants. The so-called ''friendly lien'' was usually comprised of two

documents: the Deed of Trust or M ortgage, and a Promissory Note. These documents

detined the tictitious loan and repayment terms Letween the APG client and the

nominee corporation. For the preparation of these two dooum ents, APG would charge

the client a fee. For an additional charge, APG would prepare a Satisfaction of

M ortgage or Deed of Full Reconveyance that acted as a lien release to be used when

the client wanted to sell the real estate or otherwise satisfy the ''friendly lien'' and

unencum ber the property.

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(i) APG provided instnzctions regarding how to calculate the so-called ''friendlylien'' am ount-based on the equity in the property. These instructions stated: ''Clients

would simply subkact any loan/mortgages from the estimated property value. This

would be the mnount of equity in (thel home-the amotmt of the 'Friendly Lien'''. Theinstructions further informed the clients that the so-called ''friendly lien'' should be

filed at the County Recorder's Oftice where the propcrty was located.

() Whetheritwasforpttrchases ofApGcomorations orso-called ''friendly liens,''APG used a tictitious lirm name, M ountain Business Services, to process client credit

card purchases. This procedure was marketed to clients/consultants in the event

clients' credit card statem ents were ever subpoenaed, no one would see the name Asset

Protection Group or APG.

n e ''Business Opportlm ities'' Procram

(k) In order to pemetuate the sale of disguised ownership corporations and so-called Iifriendly liens,'' the defendants, W ILLIAM S. REED and RICHARD C.

NEISW ONGER, put together a business opportunity program wherein they would

sellto individuals,o icilyforsg,8oo, the opportunityto promote APG'S products andservices. This program was marketed by defendants, W ILLIAM S. REED and

RICHARD C. NEISW ONGER, with m isleading arld deceptive representations.

(l) Through the use of various means, including the use of mail and wirecommunications to clients, APG created, marketed and sold the APG business

opportunity program .

(m) As part of his marketing function, defendant RICHARD C-NEISW ONGERplaced, orcaused to be placed, advertisem ents forApG in magazines and on radio and

television. Some of these ads appeared or were scheduled to appear in m edia such as

USA Today, The Robb Report, BusinessW eek M agazine, The Rush Limbaugh Show,

The Glerm Beok Show , Seanl-lannity, and otherradio and television programs. Parties

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p'

I!!ii! l interested in beooming ApG consultants would typically respond by telephone to thei! f akingwithApGsales representatives

ypaid; 2 advertisementsand begintheprocess o spej '1 3 references, and even defendant RICHARD C. NEISWONGER himself. A1l suchlI 4 conduct was designed to convince the prospective consultant to buy the APG business1I@ 5 OPPOIXUIAiW program.1I 6 (n) In additionto speaking withApGrepresentatives and listeningto pre-recordedII 7 infonuational messages from APG

, the prospective consultants would be invited to

8 listen to and participate in defendant W ILLIAM S. REED'S weekly/bi-weeklyE 9 conrerence calls as well as to receive promotiopal materials

-

including defendant

' 10 W ILLIAM S. REED'S book and defendant RICH ARD C. NEISW ONG ER'S

l l promotional letters via the m ail.

12 (o) The prospective consultant paid a fee of typically $9,800 to APG via check,l 3 credit card, special financing, or other m eans. This fee allowed the consultant to

14 access APG'S promotional m aterials, products, and services in order to sell these

15 productsto prospectiveclients. The consultants wouldalso have accessto livetraining

16 by defendants RICH ARD C. NEISW ONGER, W ILLIAM S. REED and

17 W ENDELL L. W AITE in Las Vegas, Nevada, or they could receive the training via

18 audio CD's sent to them via the mail.

19 (p) Defendant WILLIAM S. REED would obtain his share of the proceeds paid20 by new consultants via a payment from defendant RICH ARD C. NEISW ONGER

21 often made payable to nom inee entities that defendant W ILLIAM S. REED

22 controlled. This paym ent would also, at times, be identified as ''training.''

23 (q) ApGsetwholesaleand suggestedretail prices fortheir incorporationpackages,24 but consultants could charge as much as tbey wanted for these products, Any amount

25 paid directly to APG over the wholesale am ount, less any applicable fees and service

26 requests, would be paid by APG and sent by regular mail payable to the prim ary

1 5


consultant. Either the consultants or the clients of the consultants could provide

payment for these selwices via check, credit card, money order, or other approved

methods of payment. APO used the fictitious business name or dba Western Business

Services for credit card sales.

* Defendant W ENDELL L. W AITE validated APO products for tax purposes

in a variet'y of ways. Defendant W ENDELL L. W AITE spoke at APG consultant

training seminarsiheappearedin anApG promotional video featuring Robert W agner;

he appeared and was referred to in printed brochures and promotional materials; and,

he spoke with APG clients/consultants by telephone, answering general tax questions

for no charge, Defendant W ENDELL L. W AITE and APG formed a ''strategic

alliance'' to market so-called tCTA'K Savings Nevada Cop orations'' through APG'S

network of consultants. Defendant W ENDELL L. W AITE wms the CPA specifically

selected to do business with APG. Defendants RICHARD C. NEISW ONGER,

W ILLIAM S-REED and W ENDELL L. W AITE, worked in concert to defraud the

United States, including the IRS.

The Promotional M aterials

(s) At al1 times relevant to this conspiracy, defendants RICHARD C.NEISW ONGER, W ILLIAM S. REED and W ENDELL L. W AITE, through the

use of a book, brochures, training manuals, marketing letters, mailings, and other

promotional communications, intended to perpetrate a fraud on any creditor of an APG

client and to defraud the United States government. The following are statements and

claims made in APG media and literature:

''M ost corporations form ed in Nevada are ewned and operated by their owners t)r by

a handful of people . . . they want protection and privacy from outside Iawsuits, lawyers, and the IRS.''

@ ''Nevada is the only state without a reciprocal agreement with the IRS to exchange tax

inform ation.''


l . ''Nevadans don't like governmentas ageneral rule, especially whenitcomesto taxes.''

2 * ''Nevada is the only state that provides al1 the elements in its corporate 1aw that Asset

3 Protection Group considers essentialz''

4 * ''n e use of Bearer Shares. These are like bearer bonds or even like cash. W hoever

5 has possession of the Bearer Share owns the company. And when the Bearer Shares aze out of the

6 client's possession (perhaps locked up in his parents' safe depositbox) he can tnzthftllly testify that he7 does not own the Nevada corporation,''

!

'

8 * ''Don't wait until youtre the defendant in a lawsuit or the target of an IRS investigation

9 to consider protecting yotlr assets.''

10 . ''Better to have your assets where the IRS can never seize them or know about them .''

1 1 . ''W hat ajudge can't tind, he can't seize. And, when asked about your assets, you want12 to be able to say, tl don't have any assets,' not tl've got assets-but you can't get them .'''

13 . ''In the event you are party to a federal lawsuit or in dispute with a federal govenunent

14 agency such as the lRS or customs service, you may want the maximum asset protection afforded by II4, I15 an offshore corporation. 1

II 6 . ''However, if you've been targeted by the IRS, or are routinely involved in litigation, II

I17 or have accumulated liquid assets over $250,000, an offshore corporation should be part of your asset i18 rotection plan.'' 'P

19 * ''Once an asset is out of reach of my friend the federaljudge and the IRS, it's safe. And, '20 even more important, if theynever learn the asset is offshore, there's no reason for anyone to talk about

:! 1 it.''

22 @ ''ASSET PROTECTION tailored to the individual and fam ily uses a combination of

23 tested, proven, legal tools to Sbulletproor assets against such lawsuits, against family disputes, eveh

24 against IRS atlacks.''

25 . . .

26 , . .

1 7

1


especially from a U,S. Govemment agency, we recommend an offshore corporation called an tIBC',

an lntemational Business Company. ln addition to total anonymity and a tax-free environment, this

offshore corporation provides your clients with COMPLETB PROTECTION AOAINST ASSET

SEIZURE BY THE IRS or other govermnent agencies.''

''But for those who desire or need the maximum in judgment-proof asset protection,

''If you stop and think about it, there are many reasons som eone might want this level

of asset protection. Someone in or anticipating a dispute with the IRS to be resolved tlzrough

prolonged negotiation or extended installm entpaym ents. Someone who has gone years without liling

taxes. Someone in or invested in a business regulated by and subject to fines from the FTC, the FDA,the SEC, or a state agency. Someone using tax shelters that might be challenged in the futures''

. ''Use a Tax Savings Nevada Corporation to: . . .sidestep t% es. . .move your personal

income to multiple Nevada Corporations owned by separate extended family members to take

advantage of the lower corporate tax rates on the first $50,000 of any corporate income.''''Asset Protection Group benefits you by offering products and selwices that can help

you sleep more soundly at night, knowing yottr assets are protected from the risk of a lawsuit, and can

bring youabetter lifestyle because you will have moreto spend onyour family,your interest, and your

future. . .because you won't have to send it to Uncle Sam or to some state tax authority.''

* ''W bo Should Have a TM Savings Nevada Com oration? The obvious answer is anyone

whose combined business andpersonal taxes are cutting deeply into income. lf you look atthe money

that is going to the government and tink, 11 could do so much more with that than they will,' you need

a Tax Savings N evada Com oration.''

. ''Block the lRS from levying your wages or seizing your property.''

''D ispose of cash so it's positively tmtfaceable, yet im mediately available.''

. ''17 of the many secrets you will learn.. .//6) How to create a ''friendly lien'' to protectyour home or other real esote from any' court judgment, collection, lawyer, or government agency.''

18


Overt Acts

(33) ln fartherance of the conspiracy and to effect the objects thereof, defendants RICHARDC. NEISW ONGER, W ILLIAM S. REED, arld W ENDELL L. W AITE and their co-conspirators

committed the following overt acts, among others, in the District of Nevada and elsewhere:

(a) Onoraboutoctoberz3, 1998, defendant RICHARD C.NEISW ONGERanCIdefendant W ILLIAM S. REED acted together to inoomorate the entity, Asset

Protection Czroup, Inc., andjoined together to fonn the tirst board of directors of theAPG entity.

(b) On or about November 4, 1998, defendant RICHARD C. NEISW ONGERand defendant W ILLIAM S. REED entered into a written agreement to market, sell,

promote, train, implement and operate a1l aspects of the APG Program including the

sale of business opportunities to individual ''consultants'' who sold APG concealment

schemes to individual ''clients.''

(c) On or about May 17, 1999, APG sold a consultant business opportunity to anindividual for $2,500.(d) During the month of December 1999, defendant WILLIAM S.REED, actingon behalf of Asset Protection Group M arketing, paid the linal installment for the tirst

shipment (3,000 oopies) of his self-published book, BulletproofAsset Protection. lnthis book, defendant W ILLIAM S. REED espoused his purportedly ''bulletproop'

strategy of using disguised ownership comorations and false conveyances to hide

mssets and income from creditors, specifically the federal government and the IRS.

(e) On or about March 7, 2001, APG sold a consultant business opportunity to anindividual for $9,800.(9 0n or about December 1 1, 2001, defendant RICHARD C. NEISW ONGER,on behalf of APG, signed and faxed a request to an ongoing APG vendor. This fmx

19


requested promotion of a ''new product endorsed and created by'' defendant

W ENDELL L. W AITE : the so-called TTaX Savings Nevada Corporation,''

(g) On or about Jkme 15, 2002, APG sold a consultant business opporttmity to anindividual for $9,800.(h) On or about June 26, 2002, APG caused a press release to appear at least twicein the Las Vegas m edia, alm ouncing a strategic alliance between Asset Protection

Group and W aite & Associates, lnc. n e press release named defendant W ILLIAM

S. REED and defendant W ENDELL L. W AITE as principals, stating that the two

companies had beglm marketing so-called C'TKX Savings Nevada Corporations''

through APG'S network of more than 15O consultants nationally.

(i) On or about September 5, 2002, APG formed or caused to be formed a so-called CtTa'K Savings Nevada Corporation'' for a client, and paid $300 to defendantW ENDELL L. W M TE.

() On or about September l0, 2002, APG formed or caused to be fonned a so-called

l (o) On or about August 7, 2003, APG sold a consultant busincss opportunity to an2 individual for $9,800.3 (.p) On or about September 15, 2003, APG created a so-called ''friendly lien'' for4 a client, with an encumbrance amotmt of $350,000.5 (q) On or about January 26, 2004, APG created a so-called ''friendly lien'' for a6 client, with an encumbrance amount of $1,985,000.7 (r) On or about March 25, 2004, APG sold a consultant business opportunity to8 an individual for $9,800.9 (s) 0n or about August 30, 2004, APG formed or caused to be formed a so-called10 EATKX SavingsNevadacomoration'' foraclientanpaid $300t0 defendantW ENlElwtz1 1 L. W AITE.

12 (t) On or about September 27, 2004, APG formed or caused to be formed a so-13 called iAsset Protection Com oration'' for a client.

14 (u) On or about September 30, 2004, APG opened or caused to be opened aIi 15 disguised ownership corporate bank account for a client with an opening deposit of1I 16 $250,I

17 (v) On or about Jarmm'y 20, 2005, APG formed or caused to be formed a so-called18 f'Asset Protection Corporation'' for a client.

19 (w) Onor aboutlanuary 26, 2005, APG opened orcaused to be opened a disguised20 ownership comorate bank account for a client with an opening deposit of $250.21 (x) On or about Februal'y 7, 2005, APO formed or caused to be formed a so-called22 Ks-f'ax Savings Nevada Comoration'' for a client and paid $300 to defendant23 W ENDELL L. W AITE.

24 (y) On or about May 24, 2005, APG sold a consultant business opportunity to an25 individual for $9,800.26 . . .

21


1 (z) On oraboutlune 14, 2005, APG created a so-called ''friendly lien'' for a client,2 with an encumbrance amotmt of $800,000.3 (aa) On or about September 1, 2005, APG formed a so-called sAsset Protection4 Corporation'' for a client.

5 (bb) On or about September 21 , 2005, APG opened or caused to be opened a6 disguised ownership corporate bank account for a client with an opening deposit of

7 $75,325.8 (cc) Onor aboutApril l2, 2006, APG created a so-called ''friendly lien'' for aclient,9 with an encumbrance amount of $1,000,000.10 (dd) On or about July 17, 2006, two days before the FTC appointed receiver took1 l control of the APG business and its aftiliates and subsidiaries, APG comm itted the

12 following overt acts in the ongoing prom otion of the asset protection scheme as

l 3 day-to-day business operations:

1 14 i. APG received payment for plzrchasing the APO Program business!

15 opportunity from at least one new consultant, to include one paym ent by check:

16 in the amount of $9,800 received by mail. In response, APG sent an operation17 manual to the consultant by m ail.

18 ii. APG sent corporate m inute books to at least three clients for three

1 9 newly formed asset protection corporations by mail (FedEx).20 iii. APG tiled orcausedto be filed Articles of Inoorporation for at leasttwo

2 1 new corporations with the Nevada Secretary of State.

22 iv. APG liled or caused to be tiled an Initial List of Ofticers with the

23 Nevadasecretmyof State for at least tive new com orations; these slings listed

24 defendant W ILLIAM S. REED as the only officer of al1 five corporations,

25 . . .

26 . . .

22


i1 1 v. APG liled orcausedto be tiled anlnitial List of Officers for at lrast one!

2 new so-called SCTKX Savings N evada Corporation'' with the Nevada Secretazy

3 of State.

4 vi. APG received payment for renewals of at least two corporations, to

5 inolude one payment by credit card in the amount of $8 18 and one payment by6 check in the amount of $ 1,295.7 vii. APG received payment for the formation of anewcorporation by check

8 in the amount of $1,992.9 viii. APG applied for at least four disguised ownership bank accounts at

10 Nevada First Bank for at least four clients using disguised ownership

1 1 corporations.

12 ix. APG received at least one electronic deposit into the APG escrow

13 account used for the transfer of client funds to disguised ownership

14 corporations, including one international wire in the amount of $4,595.50.115 x. Defendant W ILLIAM S. REED used APG proceeds received from

16 defendant RICHARD C. NEISW ONGER to make or cause to be made a

17 payment on his American Express credit card accotmt, disguising incom e and

18 the soume of funds used for payment.

19 A11 in violation of Title 18, United Stgtes Code, Section 37 1.

20

21 CO UNTS TW O THROUGH EIGHTM ail Fraud

22 (18 U.S.C. j 1341)11 Backzround23

24 (34) The allegations contained in paragraphs (l) - (17) lntroduction - The Parties and The25 Entities of Count l of this Indictm ent are hereby re-alleged and incorporated herein as though fully

26 set forth at length.

23


l The Schem e to Defraud

2 (35) The allegations contained in paragraphs (1 8) - (29) The Scheme to Defraud and3 paragraphs (32 (a)) - (32 (s)) Manner and Means - The Incorporation Devioes; The So-called

' 4 dtFriendly Lien''', The tBusiness Opportunities'' Program; and, The Promotional M aterials of Count

5 1 of this Indictment are hereby realleged and incorporated herein as though fully set forth at length.

6 (36) From on or about Jtme 29, 2006, through at least on or about July 17, 2006, in the7 District of Nevada and elsewhere, the defendants, RICH ARD C. NEISW O NGER and W ILLIAM

8 S. REED, with the intent to defraud, devised and willfully participated in, with knowledge of its

9 fraudulent nattlre the above-described scheme and artifice to defraud and to obtain money and property

10 by materially false and fraudulent pretenses, representations, and promises.

1 1 (37) On or about the dates listed in the table below, in the District of Nevada, for the12 purpose of executing or attempting to execute the above-described scheme and artifice to defraud and

13 to obtainmoney and property by false pretenses, the defendants, RICHARD C.NEISW ONGERanII

14 W ILLIAM S. REED, knowingly caused to be delivered by mail and by a private and commercial

l 5 interstate carrier according to the direction thereon the follow ing m atter described below for each

1 6 cotmts each delively constituting a separate count:

l 7 Count Date Description of M ail Delivery18 2 July 7

, 2006 FedEx delivery of Consultant W holesale Purchase Agreem ent

19 from 4601 W. Sahara Ave., Suite 1, Lms Vegas, Nevada, to P.K. in

20 Iu less, Texas

21 3 July 14, 2006 APG Consultant M anual m ailed from 4601 W . Sahara Ave., Suite

22 1, Lms Vegas, Nevada, to P.K. in Euless, Texas

23 4 July 17, 2006 FedEx delively of Consultant W holesale Purchase Agreement to

24 4601 W . Salzara Ave., Suite 1, Las Vegas, Nevada, sent by C,S.

25 from Hagerstown, M aryland5 July 17, 2006 APG Consultant M anual m ailed from 4601 W . Sahara Ave., Suite26

1, Las Vegas, Nevada, to C.S. in Hagerstown, M aryland

24


j ': b '

@

'

1* 6 July l7, 2006 FedEx delivery from Las Vegas, Nevada, of corporate minute2 books for Cooper Creek Holdings

, Inc., to A .H. in lndianapolis,

3 t (jianan4 7 July 17

, 2006 FedEx delivery from Las Vegms, Nevada, of comorate minute

5 books for Starlite Financial lncorporated, Inc., to H.R. in

6 Loveland, Ohio

7 8 July 17, 2006 FedEx delivery from Las Vegas, Nevada, of comorate minute

g books for DVC Consulting, Inc., to D.W . in Plant City, Florida

9

10 AIl in violation of Title 18, United States Code, Section 1341.

11

12 COUNTS NINE THRO UGH FO URTEENW ire Fraud

13 . (18 U.S.C. j 1343)14 . Backaround

15 (38) n e allegations contained in paragraphs (1) - (17) lntroduction - 'The Parties and The16 Entities of Count 1 of this Indictm ent are hereby re-alleged and incorporated herein as though fully

1 7 set forth at length.

1 8 The scheme to Defraud

19 (39) The allegations contained in paragraphs (1 8) - (29) The Scheme to Defraud and20 paragraphs (32 (a)) - (32 (s)) Manner mld Means - The Incorporation Devices; The So-called21 ttyriendly'' Lien Scheme; The tsBujiness Opportunities'' Program; and, The Promotional M aterials of22 count l of this Indictm ent are hereby re-alleged and incorporated herein as though fully set forth at

23 length.

24 (40) From on or about June 29, 2006, through at least on or about July 17, 2006, in the25 District of N evada and elsewhere

, the defendants, RICHARD C. NEISW ONGER and W ILLIAM

26 s. REED, with the intent to defraud,,devised and willftzlly participated in, with knowledge of its

25


fraudulentnature the above-described scheme and artifice to defraud and te obtain moneyand propelty

by materially faise and fraudulent pretenses, representations, and promises.

(41) On or about the dates listed in the table below, in the District of Nevada, for thepurpose of executing orattempting to execute the above-described scheme and artifice to defraud, the

Defendants, RICHARD C. NEISW ONGER and W ILIJAM S. REED, knowingly caused to be

transmitted bymeans of wire ccnzmunicatitm in interstate commerce the signals and sounds described

below for each count, each transmissicm constituting a separate count:

Count Date ' Description of W ire Transmission

9 July 6, 2006 $249,925 wire transfer out of the APG escrow account in LasVegas, NV to an accouns in Hamilton, Berm uda

10 July 13, 2006 $1 10,761.93 wire transfer from E-Yrade to the APG escrowaccount in Las Vegas, NV

1 l July l 3, 2006 $130,488.63 wire transfer from E--l-rade to the APG escrowaccount in Las Vegas, NV

12 July 14, 2006 $26s000 wire transfer from the APG escrow account in Las Vegas,AIV to arl account in Vaduz, Liechtenstein

13 July 14, 2006 $24,950 wire transfer from the APG escrow account in Las Vegas,NV to an account in Hamilton, Bermuda

14 July 17, 2006 $4,595.50 wire transfer into the APG escrow account in LasVegas, NV from an account in Rouen, France

AII in violation of Title 18, United States Code, Section 1343.

COUNT FIFTEENConspiracv to Commit M ail Fraud artd W ire Fraud

(18 U.S.C. 9 371)Baokcround

(42) n e allegations contained in paragraphs (1) - (1 7) Introduction - The Parties and TheEntities of Count 1 of this Indictm ent are hereby re-alleged and incorporated herein as though fully

set forth at length.

The Scheme to Defraud

(43) The allegations contained in paragraphs (18) - (29) Tht Scheme to Defraud andparagraphs (32 (a)) - (32 (s)) Marmer and Mcans - Thc Incomeration Devices; The So-called

26


ldFriendly'' Iwien Scheme; T'he Business Opporttmities'' Program; and, The Promtltional M aterials of

Caunt 1 ef this Indictment are hereby re-alleged and incorporated llerein as though fully set forth at

length.

(44)and continuing thereafter up to and including no earlier than January 4, 2007, in the District of Nevada

and elsewhere,

From on or about October 23, 1998, the exact date being unknown to the Grand Jury,

w ILLIAM S. REED andmclu ltp CLNEISWISNGCR,

defendants herein, together and with each other and with other persons both known and unknown to

the Grand Jury, did tmlawfully, willfully, and knowingly combine, conspire, confederate and agree

among themselves and each other to commit certain offenses against the United States to wit: mail

fraud and wire fraud in violation of Title l 8, United Sutes Code, Sections 1341 and 1343. All in

violation of Title 18, United States Code, Section 371 .

COUNTS SIXTEEN THROUGH TW ENTY-NINEIncome Tax Evasion & Aidin: and Abettin:

(26 U.S.C. j 7201 & 18 U.S.C. j 2)

(45) On or about September 10, 2002, through on orabout October 1, 2008, in the Districtof Nevada and elsewhere, the defendant, W ILLIAM S. REED, did willfully attempt ttl evade and

defeat the pam ent of a large part of the income tmx due and owing by James Delmis Tenito for tax

years 1987-1990, 1992-1996 and 1998-2002 to the United States of America by concealing and

attempting to conoeal from the Intem al Revenue Selwice the natlzre and extent of James Dennis

Territo's assets and the location thereof; making false statements to agents t)f the Intenaal Revenue

Service; placingfunds M dpropeo inieno esofnominees', establishingnominee corporationsiand,

establishing nom inee bank accounts, defendant's willful attem pt to evade taxes due for each tax year

constimtes a separate charge against defendant as provided in !he chart beltlw:


1 Count Tax Year Assessed Tax Accrued Interest M ay 2005 Total

2 & Penalties Balance Due

3 16 1987 $15,646.87 .$29,428.63 $45,075.504 17 1988 $7,216.79 $8,345.95 $15,562.74

18 1989 $2l ,469.55 $24,828.70 $46,298.25519 1990 $8,304.44 $9,710.73 $1 8,01 5.l 7

620 1992 $1,715.99 $2,153.24 $3,869.23

7 21 1993 $2,549.97 $3,348.93 $5,898.90

8 22 1994 $4 274.72 $3 663.27 $7,937.99

9 23 1995 $4,642.89 $4,170.45 $8,813.3410 24 1996 $5,928.58 $4,326.01 $10,254.59

25 1998 $35,441.26 $8,695.46 $44,1 36.721 126 1999 $33,599,07 $9,741.70 $43,340.77

l 227 2000 $91,957.52 $31 ,364.10 $123,321.62

l 328 2001 $56,009.81 $17,399.82 $73,409.63

14 29 2002 $83,845.26 $27,029,86 $110,875.12

15 Totals $372,602.72 $1 84,206.85 $556,809.57

16A1l in violation of Title 26, United States Code, Section 7201 . .17

1:C O U N T T HI R . T- Y '1 9

M oney Laundering Conspiracy() (18 U.S.C. 5 1956(h))2

(46) From on or about October 23, 1998, the exact date being unknown to the Grand Jury,2 1and continuing thereafter up to and including no earlier than Januazy 4, 2007, in the District of Nevada22

and elsewhere,23

W ILLIAM S. REED and24 mclulto c. xllswdxcfR,

25q 26 defendants herein, did knowingly combine, conspire, confederate and agree together and with other

1

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persons, to conduct and attempt to conduct tinancial transactions affecting interstate commerce, which

ftmds were in fact derived from spccified unlawful activity, that is, Mail Fraud and W ire Fraud, in

violation of 18 U.S.C. jj 1341 & 1343, with the intent to promote the canying on of the specitiedunlawful activity and knowing that the transactions were designed in whole or in part to conceal and

disguise the nature, location, source, ownershipy and oontrol of the proceeds of specified unlawftll

activity, in violation of Title l8, U.S.C. 5 1956(a)(1)(A)(I) and 1956(a)(1)(B)(I).A1l in violation of Title 18, United States Code, j 1956t1$.

CO UNT THIRTY-ONEAggravated Identity Theft(1 8 U.S.C. j 1028A)

(47) From onor about December 14, 2004, theexactdate being unknownto the Grand Jury,and continuing thereaher up to and including no earlier tban November 1, 2006, in the District of

Nevada and elsewhere,

W ILLIAM S. REED,

defendant hereins did knowingly possess and use, without lawful authority, a means of identitication

of another person, David K., dtuing and in relation to the commission of W ire Fraud, in violation of

U.S.C. j 1 343, as described in Count 10 herein, a11 in violation of Title 18, United States Code,Section 1028A(a)(l).

CO UNT TH IRTY-TW OAggravated ldentity Theft(l8 U.S.C. j l028A)

(47) From on or about January 4, 2005, the exact date being unknown to the Grand Jury,and continuing thereaher up to and including no earlier than November 1 , 2006, in the District o

N evada and elsewhere,

W 'ILLIAM S. REED,

defendant herein, did knowingly possess and use, without lawftzl authority, a means of identification

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of another person, Timothy S., dtlring and in relation to the commission of W ire Fraud, in violation

of U.S.C. j 1343, as described in Count l 1 herein, a1l in violation of Title 18, United States Code,Section 1028A(a)(l). yj

DATED: this day of July, 20l 1.

A TRUE BILL:

/s/FOREPERSON OF THE GRAND JURY

DANIEL G. BOGDENUnited States Attorney

J. GREGOR DAM MAssistant United States Attorney

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Richard Neiswonger Indictment

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