IN THE DISTRICT COURT OF THE UNITED STATES
For the Western District of New York
APRIL 2010 GRAND JURY(Impaneled 04/30/2010)
THE UNITED STATES OF AMERICA
-vs- INDICTMENT
ARNOLD WROBEL a/k/a Jim Palmer Violations:
(Counts 1 - 40),MARTIN RHYS JONES a/k/a Martin Reece Title 18, United States Code,
a/k/a John Allen Sections 1343, 1349, 1956(a)(2)(A) (Counts 1 - 40), 1956(h), 1957(a) and 2
MONICA ROMASZKO a/k/a Monica Wrobel (40 Counts and 3 Forfeiture
(Counts 1 - 40), Allegations)
GENE CLARK FOLAND (Counts 1 -31), JEFFREY G. KLEIN (Counts 1 - 34),WALTER TATUM (Count 1),JOEL MARCUS (Count 1),SAAD SHUAIB (Count 1),DAVID COLE (Count 1),RAYMOND MALIZIO (Count 1),KYLE CLAYTON a/k/a Kyle Swift a/k/a Richard Walker a/k/a Kyle McCauley (Count 1), andJAMIE LEE CHURCH a/k/a Charlotte Keys (Count 1)
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INTRODUCTORY ALLEGATIONS
At all times relevant to this indictment:
DEFENDANTS AND COCONSPIRATORS
1. The defendant, ARNOLD WROBEL a/k/a Jim Palmer (“WROBEL”),
was a citizen of the United States and he resided in Barcelona,
Spain. WROBEL formerly held various securities licenses within
the United States. The email address [email protected] was
registered to WROBEL.
2. The defendant, MARTIN RHYS JONES a/k/a Martin Reece a/k/a
John Allen (“JONES”), was a citizen of the United Kingdom and he
resided in Barcelona, Spain. The email address
[email protected] was registered to JONES.
3. The defendant, MONICA ROMASZKO a/k/a Monica Wrobel
(“ROMASZKO”), was a citizen of the United States and she resided in
the Western District of New York. ROMASZKO is the sister of
WROBEL. The email address [email protected] was registered to
ROMASZKO.
4. The defendant, GENE CLARK FOLAND (“FOLAND”), was a
citizen of the United States and he resided in Florida. FOLAND
formerly held various securities licenses in the United States.
2
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5. The defendant, JEFFREY G. KLEIN (“KLEIN”), was an
attorney and citizen of the United States and he resided in
Florida.
6. The defendant, WALTER TATUM (“TATUM”), was a citizen of
the United States and he resided in California. TATUM was an
officer and/or director of RHINO Outdoors International (RHOI) and
its predecessor and successor entities.
7. The defendant, JOEL MARCUS (“MARCUS”), was a citizen of
the United States and he resided in Florida. MARCUS was a
certified public accountant and had an affiliation with Clean Coal
Technology, Inc. and its predecessor entity. He also owned a
corporate entity called Illusion, Inc.
8. The defendant, SAAD SHUAIB (“SHUAIB”), was a citizen of
Kuwait.
9. The defendants DAVID COLE (“COLE”), KYLE CLAYTON a/k/a
Kyle Swift a/k/a Richard Walker a/k/a Kyle McCauley (“CLAYTON”),
and JAMIE LEE CHURCH a/k/a Charlotte Keys (“CHURCH”) were citizens
of the United Kingdom and worked in Barcelona, Spain.
3
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10. The defendant, RAYMOND MALIZIO (“MALIZIO”), was a United
States citizen and worked in Barcelona, Spain.
THE ENTITIES AND THE STOCK
11. Small, privately held United States corporate entities
could issue shares of stock, including freely traded shares which
were considered “over-the-counter” trades, and which were reported
on the “over-the-counter” bulletin board (“OTCBB”)or “pink sheets”.
The OTCBB and pink sheets were quotation mediums that contained
quotations for thousands of over-the-counter stocks not listed on
any of the major stock markets. Shares which had values
considerably less than a dollar per share were sometimes referred
to as “penny stock.”
12. Small, privately held corporate entities could also issue
restricted shares, which could not be freely traded, including so-
called “Reg S” shares, that is, sales of shares restricted to
purchasers outside of the United States. The sales of restricted
shares were not reported on the “over the counter” bulletin board
or “pink sheets.” Restricted shares had a value far less than that
of freely traded shares.
13. JONES and WROBEL ran a telemarketing operation, sometimes
referred to as a “boiler room”, from a number of locations in
4
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Barcelona, Spain. In this operation, callers contacted prospective
investors by telephone to sell “over the counter” or “pink sheet”
stocks, using high pressure sales tactics and fraudulent statements
and representations. The boiler room used a variety of names,
beginning with Newbridge International, then Brecon Global, then
Strategic Energy Partners, and then Hammerson Equity Group.
14. The boiler room obtained shares of restricted stock
issued by various companies, including Intersecurity Holdings
Corporation (“IXSV”); Universal Energy Corporation (“UVEC”); Rhino
Outdoor International, later known as Xtreme Motorsports
International (“RHOI” and “XTMS”); and Clean Coal Technologies,
Inc. (“CCTI” or “CCTC”), which were sold to investors without
disclosing the fact that the shares were restricted and leading the
investors to believe that the shares were freely traded shares.
15. The boiler room also sold shares of Green Energy Live
(“GELV”), without ever obtaining those shares.
16. FOLAND was instrumental in identifying shares of stock to
sell to the boiler room.
17. KLEIN served as an escrow agent for stock transfers to
the boiler room.
5
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18. COLE, CLAYTON, CHURCH and MALIZIO worked in Barcelona,
Spain at the boiler room operated by WROBEL and JONES.
COUNT 1(Conspiracy to Commit Wire Fraud)
The Grand Jury Charges That:
1. Paragraphs 1-18 of the Introductory Allegations are
incorporated as if fully set forth herein.
A. OBJECT OF THE CONSPIRACY
2. Beginning on a date unknown to the Grand Jury, but not
later than on or about February 3, 2006, and continuing until at
least on or about August 14, 2009, in the Western District of New
York and elsewhere, the defendants, ARNOLD WROBEL a/k/a Jim Palmer,
MARTIN RHYS JONES a/k/a Martin Reece a/k/a John Allen, MONICA
ROMASZKO a/k/a Monica Wrobel, GENE CLARK FOLAND, JEFFREY G. KLEIN,
WALTER TATUM, JOEL MARCUS, SAAD SHUAIB, DAVID COLE, RAYMOND
MALIZIO, KYLE CLAYTON a/k/a Kyle Swift a/k/a Richard Walker a/k/a
Kyle McCauley, and JAMIE LEE CHURCH a/k/a Charlotte Keys, did
knowingly, willfully and unlawfully combine, conspire and agree
together and with others known and unknown to the Grand Jury, to
commit the following offense, that is, to devise a scheme and
artifice to defraud investors and for obtaining money and property
from investors by means of false and fraudulent pretenses,
representations and promises and for the purpose of executing such
6
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scheme and artifice, transmitting and causing to be transmitted
writings, signs and signals, by means of wire communications in
interstate and foreign commerce, in violation of Title 18 United
States Code, Section 1343.
B. MEANS BY WHICH THE OBJECTS OF THE CONSPIRACY WERE TO BEACCOMPLISHED
The objects of the conspiracy were to be accomplished in
substance as follows:
3. The defendants procured nearly worthless restricted
shares of over-the-counter penny stock, and sold that stock at
inflated prices to investors through the boiler room located in
Spain.
4. The defendants utilized a high pressure sales pitch made
to investors containing false and fraudulent representations and
omissions, including, among other things, not telling investors
that the stock being sold was restricted stock; that the investors
were directed to web sites which showed stock prices for freely
traded stock, not the less valuable restricted stock actually
provided; directing investors to look at fictitious and highly
optimistic press releases which had been created for the boiler
room in order to make the particular stock appear valuable.
7
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5. After investors purchased the stock, defendants directed
the investors to send their payment, by international wire, to bank
accounts in Canada, the United States and elsewhere.
6. After receiving payments from the investors for the
worthless stock, which in total amounted to more than $5,000,000,
the defendants shared the profits from the conspiracy.
C. ACTS IN FURTHERANCE OF THE CONSPIRACY
In furtherance of the conspiracy, and to effect the objects
thereof, the following acts, among others, were committed in the
Western District of New York and elsewhere:
7. WROBEL and JONES became affiliated as members or managers
of several registered Spanish entities located in Barcelona, Spain,
including (a) Quick Meds, SL; (b) El Trebol Magico, SL; and (c)
Subscription Billing Solutions, SL; for the purpose of conducting
business operations in Spain. These entities were used in the
boiler room and maintained bank accounts at La Caja de Ahorros Y
Pensiones de Barcelona (“La Caixa”), also located in Barcelona,
Spain.
8. WROBEL and JONES held their boiler room out to be a
“stock recommendation business” using, at various times, the names
8
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Newbridge International; Brecon Global; Strategic Energy Partners;
and Hammerson Equity Group.
9. WROBEL and JONES caused the creation of numerous websites
connected to the names used by the boiler room operation, and also
obtained email addresses linked with those websites.
10. The website literature and information sent by email to
victim investors stated, on numerous occasions, that the businesses
the defendants purportedly operated were located in places other
than Barcelona, Spain, including Geneva and Zurich, Switzerland;
London, England; and New York City, New York.
11. WROBEL and JONES hired callers, also known as fronters,
to work in the offices in Barcelona, offering free rent for a
period of time, and using a pay structure which provided
commissions to the callers. COLE, CLAYTON, CHURCH and MALIZIO were
all callers hired by the boiler room.
12. COLE, CLAYTON, CHURCH and MALIZIO, and others known and
unknown to the Grand Jury, made sales calls to investors to induce
them to purchase shares of various stocks. Some of the callers
used aliases when contacting investors. CLAYTON used the names
9
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“Kyle Swift,” “Kyle McCauley” and “Richard Walker.” CHURCH used the
name “Charlotte Keys.”
13. The initial telephone calls, made by callers or fronters,
were to persons whose name and contact information were on lists
purchased from direct mail marketing companies and obtained from
other sources.
14. The initial telephone calls by the fronters were intended
to obtain information about the amount of money a potential
investor had available to invest, and to entice the investor by
promoting a promising new investment. The initial callers used
carefully written and detailed scripts, which included references
to press releases for the stock being sold, as well as information
as to websites to confirm the trading price of the stock being
sold.
15. A fronter who identified a likely prospective investor
generally passed the contact information over to a more experienced
caller (a “closer”), whose role was to conclude the deal. WROBEL
and JONES, along with others known and unknown, each acted and
operated as closers. Neither WROBEL nor JONES used their real
names in communicating with investors. WROBEL used the name “Jim
Palmer.” JONES used the names “John Allen” and “Martin Reece.”
10
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16. The scripts and press releases used by the fronters and
closers were written and edited by WROBEL, JONES, FOLAND and
others, and contained fictitious and misleading information
concerning the company whose stock was being sold.
17. WROBEL also operated as a “loader” or “reloader”, that
is, a person who sought to convince an investor who had already
sent money to purchase stock to purchase more.
18. During communications with the callers, investors were
referred to legitimate websites, the OTCBB and the Pink Sheets,
which reported the quotations for only freely traded shares. This
was misleading, in that the shares being sold by the boiler room
were restricted shares.
19. WROBEL, JONES, FOLAND, and SHUAIB were instrumental in
obtaining restricted IXSV stock which, from in or about March 2006,
until in or about September 2007, was sold by the boiler room,
using high pressure sales pitches and providing false and
fictitious information to investors. During this period, the
boiler room was operating as Newbridge International.
11
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20. WROBEL, JONES, and FOLAND were instrumental in obtaining
restricted UVEC stock which, from in or about September 2006, until
in or about December 2006, was sold by the boiler room using high
pressure sales pitches and providing false and fictitious
information to investors. During this period, the boiler room was
operating as Newbridge International.
21. WROBEL, JONES, FOLAND, KLEIN, and TATUM were instrumental
in obtaining restricted RHOI stock which, from in or about May
2007, until in or about March 2008, was sold by the boiler room
using high pressure sales pitches and providing false and
fictitious information to investors. During this period, the
boiler room was operating first as Newbridge International, then as
Brecon Global.
22. WROBEL, JONES, FOLAND, KLEIN, and MARCUS were
instrumental in obtaining restricted CCTC stock which, from in or
about February 2008, until in or about June 2009, was sold by the
boiler room using high pressure sales pitches and providing false
and fictitious information to investors. During this period, the
boiler room was operating first as Newbridge International, then
Brecon Global, then Strategic Energy Partners.
12
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23. Investors who agreed to purchase shares from the boiler
room were advised to wire payment for their purchase to a bank
account in the name of an independent “administrative provider” or
”clearinghouse.” These accounts were located at the Canadian
Imperial Bank of Commerce (CIBC) for Cambridge Administrative
Providers, an entity purporting to be located in Toronto, Ontario,
Canada; accounts in Bermuda for Cambridge Administrative Services,
Ltd., an entity purporting to be located in Bermuda; and an account
at the Bank of America in Buffalo, New York for Breckenridge
Administrative Providers, an entity purporting to be located in
Buffalo, New York.
24. The defendants directed the investors to websites with
associated email addresses for the so-called “administrative
provider.” The websites for these so-called “administrative
providers” were created by, among others, WROBEL and JONES.
25. The bank accounts, in the names of the “administrative
providers,” were, in fact, bank accounts opened by ROMASZKO and
controlled by WROBEL, JONES and ROMASZKO.
26. On or about June 13, 2006, ROMASZKO incorporated
Cambridge Administrative Providers, Inc., in New York State, with
an address in Buffalo, New York.
13
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27. On a date uncertain, but prior to August 2006, ROMASZKO
opened bank account (#-31711) at the Canadian Imperial Bank of
Commerce (CIBC), in Fort Erie, Canada, in the name of Cambridge
Administrative Providers, Inc. Addresses associated with this
account were in Buffalo and in Hamburg, New York.
28. In or about July 2006, ROMASZKO incorporated Cambridge
Administrative Services, Ltd. in Bermuda, and arranged for a bank
account (#-1067) to be opened in that name at HSBC in Bermuda. In
February 2007, JONES requested that ROMASZKO have statements for
that account sent to JONES and WROBEL.
29. In and about February 2007, when a bank asked ROMASZKO
questions about the “Cambridge” business, JONES provided ROMASZKO
with false information to provide to the bank, including
information about the source of funds, and of ROMASZKO’s role and
tenure at the business.
30. On September 27, 2007, ROMASZKO incorporated Breckenridge
Administrative Providers, Inc., in New York State, using an address
on Canyon Street, Hamburg, New York.
31. In or about March 2008, ROMASZKO opened bank account (#-
1929) at the Bank of America in the Western District of New York,
14
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in the name of Breckenridge Administrative Providers, Inc., using
an address on Canyon Street, Hamburg, New York.
32. During the time period of the conspiracy, WROBEL, JONES
and ROMASZKO communicated regularly, including by email. Those
communications included confirming details of the bank accounts
opened by ROMASZKO for the purpose of putting the information on
websites, confirming the senders and amounts of deposits into the
bank accounts maintained by ROMASZKO, and providing wire
instructions to and from the accounts. Bank account information
was also shared with FOLAND.
33. In some, but not all instances, the defendants sent
investors stock certificates for the shares purchased, which were
marked as restricted. The stock certificates were issued to the
investors by various stock transfer companies, who acted pursuant
to written instructions. In other cases, the investors did not
receive all or any certificate or shares of stock.
34. The restricted shares received by the investors were
issued in the United States and obtained by FOLAND, KLEIN, TATUM,
MARCUS and SHUAIB and, as well as by others known and unknown to
the Grand Jury, and were transferred to JONES or to SHUAIB’s wife,
before being transferred and delivered to the investors.
15
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35. There was usually a delay between the sale of the stock
by the boiler room and the delivery of the stock to the investors.
In some cases, the shares were sold before they were procured and
months passed before the certificates were actually delivered. In
other cases, no certificates were ever delivered.
36. Beginning on a date uncertain, but not later than in or
about August 2006, and continuing until in or about February 2009,
ROMASZKO, acting upon instructions she obtained from WROBEL and/or
JONES, authorized the wiring of the fraud proceeds which had been
deposited into the CIBC Cambridge Administrative Providers account,
as follows:
a. More than $1,797,000 was wired to the La Caixaaccount of Quick Meds, SL.
b. More than $799,000 was wired to WROBEL, toaccounts at La Caixa, Deutsche Bank, andZuercher Kantonal Bank.
c. More than $543,000 was wired to an account inFlorida belonging to KLEIN.
d. More than $406,000 was wired to JONES, ataccounts maintained at La Caixa, DeutscheBank, and Abbey International, in the ChannelIslands.
e. More than $298,000 was wired to the La Caixaaccount of El Trebol Magico, SL.
f. More than $170,000 was wired to accounts forthe benefit of COLE.
g. More than $80,000 was wired to accounts forthe benefit of CHURCH.
16
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h. More than $68,000 was wired to accounts forthe benefit of MALIZIO.
i. More than $38,000 was wired to accounts forthe benefit of CLAYTON.
j. A sum was wired to FOLAND’s Charles Schwabaccount.
37. Beginning on a date uncertain, but not later than in or
about September 2006, and continuing until a date uncertain but no
earlier than in or about February 2007, ROMASZKO, acting upon
instructions she obtained from WROBEL and/or JONES, attempted to
wire funds to SHUAIB, and to Quick Meds, from the bank account in
Bermuda.
38. Beginning on a date uncertain, but not later than in or
about August 2008, and continuing until in or about July 2009,
ROMASZKO, acting upon instructions she obtained from WROBEL and/or
JONES, authorized the wiring of fraud proceeds which had been
deposited into the Bank of America Breckenridge Account, as
follows:
a. More than $354,000 was wired to El TrebolMagico at La Caixa.
b. $214,000 was wired to an account belonging toKLEIN.
c. $41,000 was wired to the La Caixa account ofSubscription Billing Solutions SL.
d. More than $39,000 was wired to accountsbelonging to WROBEL.
17
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e. $20,000 was wired to Quick Meds, SL at LaCaixa.
39. Between in and about June 2006 and in and about July
2009, KLEIN transferred fraud proceeds to himself, and to FOLAND,
TATUM and MARCUS.
All in violation of Title 18, United States Code, Section
1349.
COUNTS 2 - 30 (Wire Fraud)
The Grand Jury Further Charges That:
1. The allegations contained in Count 1 of the Indictment,
including Paragraphs 1-18 of the Introductory Allegations, are
hereby repeated and incorporated here by reference.
2. On or about the dates listed below, in the Western
District of New York, and elsewhere, the defendants, ARNOLD WROBEL
a/k/a Jim Palmer, MARTIN RHYS JONES a/k/a Martin Reece a/k/a John
Allen, MONICA ROMASZKO a/k/a Monica Wrobel, GENE CLARK FOLAND and
JEFFREY G. KLEIN, having devised, and intending to devise, a scheme
and artifice to defraud investors and to obtain money and property
from investors by means of false and fraudulent pretenses,
representations and promises, as described above, did, for the
18
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purpose of executing such scheme and artifice, transmit, and cause
to be transmitted, by means of wire communication in interstate and
foreign commerce, writings, signs and signals, to wit, the
electronic payments and communications described below:
COUNT DATE WIRE COMMUNICATION
2 08/26/08 $6,290 wire (Victor P.)into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada
3 08/26/08 $4,450 wire (Randy D.)into Breckenridgeaccount #-1929 in the WDNY from Bank of NovaScotia in Canada
4 08/29/08 $10,385 wire (Randolf J.)into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada
5 09/04/08 $11,385 wire (Raymond P.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada in Canada
6 09/05/08 $10,140 wire (Victor B.)into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada
7 09/08/08 $60,130 wire (Randolf J.)into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada
8 09/12/08 $99,980 wire (Randolf J.)into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada
9 09/16/08 $5,900 wire (Victor B.) into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada
10 09/16/08 $41,985 wire (Raymond P.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada
11 09/22/08 $92,480 wire (Randolf J.) Into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada
19
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12 09/22/08 $99,980 wire (Randolf J.) into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada
13 09/23/08 $12,450 wire (Randy D.)into Breckenridgeaccount #-1929 in the WDNY from Bank of NovaScotia in Canada
14 09/23/08 $10,700 wire (Gerard B.)into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada
15 09/23/08 $7,990 wire (Victor B.) into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada
16 09/23/08 $10,700 wire (Randy D.)into Breckenridgeaccount #-1929 in the WDNY from Bank of NovaScotia in Canada
17 09/28/08 $6,150 wire (Eldon K.)into Breckenridgeaccount #-1929 in the WDNY from AdvantageCredit Union, Saskatchewan, Canada
18 11/19/08 $16,235 wire (Raymond P.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada in Canada
19 11/24/08 $6,435 wire (Betty Y.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada in Canada
20 12/03/08 $3,450 wire (Ken J.)into Breckenridge account#-1929 in the WDNY from Bank of Nova Scotia inCanada
21 12/08/08 $29,985 wire (Raymond P.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada in Canada
22 03/09/09 $7,697 wire (Richard R.) into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England
23 05/01/09 $5,490 wire (Kevan T.) into Breckenridgeaccount #-1929 in the WDNY from England
24 05/12/09 $14,870 wire (Thomas B.)into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England
20
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25 05/14/09 $3,730 wire (Aldo M.)into Breckenridge account#-1929 in the WDNY from Barclays Bank, UK
26 06/10/09 $7,225 wire (Richard R.) into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England
27 06/18/09 $9980 wire (Aldo M.)into Breckenridge account#-1929 in the WDNY from Barclays Bank, UK
28 06/30/09 $28,480 wire (Aldo M.)into Breckenridgeaccount #-1929 in the WDNY from Barclays Bank,UK
29 07/08/09 $3,975 wire (David H.) wired into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England
30 07/29/09 $24,980 wire (Lawrence P.) intoBreckenridge account #-1929 in the WDNY fromBarclays Bank, England
All in violation of Title 18, United States Code, Sections
1343 and 2.
COUNT 31(Conspiracy to Engage in Money Laundering)
The Grand Jury Further Charges That:
1. Paragraphs 1-18 of the Introductory Allegations are
incorporated as if fully set forth herein.
A. OBJECTS OF THE CONSPIRACY
2. From in or about February 2006, through in or about July
2009, in the Western District of New York and elsewhere, the
defendants, ARNOLD WROBEL a/k/a Jim Palmer, MARTIN RHYS JONES a/k/a
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Martin Reece a/k/a John Allen, MONICA ROMASZKO a/k/a Monica Wrobel,
GENE CLARK FOLAND, and JEFFREY G. KLEIN, did knowingly, willfully
and unlawfully combine, conspire and agree together and with others
known and unknown to the Grand Jury to commit the following
offenses:
(a) To knowingly transport, transmit and transfer monetary
instruments and funds, from a place in the United States to a place
outside the United States, with the intent to promote the carrying
on of specified unlawful activity, that is, wire fraud in violation
of Title 18, United States Code, Section 1343, in violation of
Title 18, United States Code, Section 1956(a)(2)(A); and
(b) To knowingly engage in monetary transactions, that is,
the deposit, withdrawal and transfer of funds and monetary
instruments, in and affecting interstate and foreign commerce, in
criminally derived property of a value greater than $10,000, such
property having been derived from specified unlawful activity,
namely, wire fraud in violation of Title 18, United States Code,
Section 1343, and knowing that the funds and monetary instruments
were derived from a criminal offense, in violation of Title 18,
United States Code, Section 1957(a).
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B. MEANS BY WHICH THE OBJECTS OF THE CONSPIRACY WERE TO BEACCOMPLISHED
The objects of the conspiracy were to be accomplished in
substance as follows:
3. Beginning in February 2006, WROBEL and JONES established
corporate identities and corporate bank accounts at La Caixa in
Barcelona, Spain.
4. On dates unknown, WROBEL established bank accounts in his
own name and in other names, at banks outside the United States,
including at La Caixa, Duetsche Bank and Zuercher Bank. WROBEL
also established at least one financial account in the name of
Harley Holdings.
5. On dates unknown, JONES established bank accounts in his
own name and in other names, at banks outside the United States,
including at La Caixa, Duetsche Bank and Abbey International in the
Channel Islands.
6. Beginning in June 2006, WROBEL and JONES caused ROMASZKO
to establish corporate entities and to open up financial accounts
in the United States, Canada and in Bermuda, for the purpose of
depositing the proceeds of wire fraud, that is, a boiler room
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scheme which sold worthless stocks to investors worldwide as set
forth in Counts 1 through 30 above, which counts are hereby
repeated and incorporated here by reference.
7. Once investors wired their money, as directed by the
defendants, to one of the accounts in Canada, the United States or
Bermuda, WROBEL and JONES provided direction, by email or other
communication, to ROMASZKO to transfer funds to various other
accounts.
8. Pursuant to instructions received by ROMASZKO from
WROBEL, JONES and FOLAND, the fraud proceeds received were wired to
the boiler room employees, to the transfer agents who were creating
stock certificates to send to the investors, to companies providing
the lead lists (the names of the prospective investors), and to
KLEIN, who, with FOLAND, TATUM, and MARCUS was being paid for
procuring the stock which was sold by the boiler room.
9. KLEIN, who received funds from the accounts in Canada and
in the United States into his bank account in Florida, transferred
money to FOLAND, TATUM, and MARCUS for their share of the fraud
proceeds.
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10. Pursuant to instructions received by ROMASZKO from WROBEL
and JONES, the fraud proceeds received were wired to the corporate
bank accounts for Quick Meds, El Trebol Magico and Subscription
Billing Solutions at La Caixa. Funds from those accounts were
used to pay for the expenses of operating the office spaces for the
boiler room in Barcelona, including rent, internet service and
telephone service.
11. Pursuant to instructions received by ROMASZKO from WROBEL
and JONES, significant portions of the fraud proceeds received were
sent to various personal accounts maintained by WROBEL and JONES
outside the United States.
All in violation of Title 18, United States Code, Section
1956(h).
COUNTS 32 - 34 (Money Laundering)
The Grand Jury Further Charges That:
1. The allegations contained in Count 1 of this indictment,
including paragraphs 1-18 of the Introductory Allegations are
incorporated by reference as if fully set forth below.
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2. On or about the dates set forth below, in the Western
District of New York and elsewhere, the defendants, ARNOLD WROBEL
a/k/a Jim Palmer, MARTIN RHYS JONES a/k/a Martin Reece a/k/a John
Allen, MONICA ROMASZKO a/k/a Monica Wrobel, and JEFFREY G. KLEIN
did knowingly engage, and attempt to engage, in monetary
transactions, that is, the deposit, withdrawal and transfer of
funds and monetary instruments, in and affecting interstate and
foreign commerce, such monetary transactions described in each
count listed below, in criminally derived property of a value
greater than $10,000, such property having been derived from
specified unlawful activity, namely, wire fraud in violation of
Title 18, United States Code, Section 1343, and knowing that the
funds and monetary instruments were derived from a criminal
offense.
COUNT DATE MONETARY TRANSACTION
32 09/22/08 $100,000 wire from Bank of America -1929 (Breckenridge Administrative Providers) toKLEIN at Wachovia Bank, Florida
33 09/23/08 $100,000 wire from Bank of America - 1929(Breckenridge Administrative Providers) toKLEIN at Wachovia Bank, Florida
34 07/31/09 $14,000 wire from Bank of America - 1929(Breckenridge Administrative Providers) toKLEIN at Wachovia Bank, Florida
All in violation of Title 18, United States Codes, Sections
1957(a) and 2.
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COUNTS 35 THROUGH 40 (Money Laundering)
The Grand Jury Further Charges:
1. The allegations contained in Count 1 of this indictment
are incorporated by reference as if fully set forth below.
2. On or about the dates set forth below, in the Western
District of New York and elsewhere, the defendants, ARNOLD WROBEL
a/k/a Jim Palmer, MARTIN RHYS JONES a/k/a Martin Reece a/k/a John
Allen, and MONICA ROMASZKO a/k/a Monica Wrobel, did knowingly
transport, transmit and transfer, and attempt to transport,
transmit and transfer, monetary instruments and funds, as described
in each count listed below, from a place in the United States to a
place outside the United States, with the intent to promote the
carrying on of specified unlawful activity, that is, wire fraud in
violation of Title 18, United States Code, Section 1343.
COUNT DATE MONETARY TRANSACTION
35 09/15/08 $120,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa in Barcelona, Spain
36 09/23/08 $125,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa in Barcelona, Spain
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37 10/01/08 $41,000 wire from Bank of America -1929(Breckenridge Administrative Providers) toSubscription Billing Services SL account -9905at La Caixa, Barcelona, Spain
38 11/24/08 $16,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa,Barcelona, Spain
39 12/08/08 $20,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa,Barcelona, Spain
40 12/09/08 $30,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa,Barcelona, Spain
All in violation of Title 18, United States Code, Sections
1956(a)(2)(A) and 2.
FIRST FORFEITURE ALLEGATION(Conspiracy)
The Grand Jury Alleges That:
Upon the conviction on Count 1 of the Indictment, the
defendants, ARNOLD WROBEL a/k/a Jim Palmer, MARTIN RHYS JONES a/k/a
Martin Reece a/k/a John Allen, MONICA ROMASZKO a/k/a Monica Wrobel,
GENE CLARK FOLAND, JEFFREY G. KLEIN, WALTER TATUM, JOEL MARCUS,
SAAD SHUAIB, DAVID COLE, RAYMOND MALIZIO, KYLE CLAYTON a/k/a Kyle
Swift a/k/a Richard Walker a/k/a Kyle McCauley, and JAMIE LEE
CHURCH a/k/a Charlotte Keys, and each of them joint and severally
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with each other, shall forfeit to the United States any and all
property constituting and derived from any proceeds obtained,
directly and indirectly, as a result of such violations and any and
all property used, and intended to be used, in any manner and part,
to commit and to facilitate the commission of such violations, and
determined to total, but not limited to, the following amount:
FIVE MILLION ($5,000,000.00) DOLLARS IN UNITED STATES CURRENCY.
SUBSTITUTE ASSETS
If any of the property described in this section, as a result
of any act or omission of the defendant;
1. cannot be located upon the exercise of due diligence;
2. has been transferred or sold to, or deposited with, a third party;
3. has been placed beyond the jurisdiction of the court;
4. has been substantially diminished in value; or
5. has been commingled with other property which cannot be divided without difficulty;
the court shall order the forfeiture of any other property of the
defendants up to the value of the above proceeds, including but not
limited to the following:
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As to Defendant GENE CLARK FOLAND:
REAL PROPERTY:
5060 NE 23rd Terrace, Lighthouse Point, Florida, as described in the Broward County Clerk’s office, Book 28913, Page 563.
As to Defendant JEFFREY G. KLEIN:
REAL PROPERTY:
10337 Parkstone Way, Boca Raton, Florida, as described in the Palm Beach County Clerk’s office, Book 22199, Page 1124.
MOTOR VEHICLES:
One red 2007 Porsche Cayman, VIN: WP0AB29807U780409.
One white 2007 Hummer, VIN: 5GTDN13E478248823.
One blue 2007 Volvo, VIN: YV1RS592672609542.
As to Defendant JOEL MARCUS:
REAL PROPERTY:
10579 Stonebridge Blvd, Boca Raton, Florida, as described in the Palm Beach County Clerk’s office, Book 24176, Page 0962676 West Prospect Road (APN 49-42-22-08-0321), Oakland Park, Florida, as described in the Broward County Clerk’s office, Book 46050, Page 342.
676 West Prospect Road (APN 49-42-22-08-0360), Oakland Park, Florida, as described in the Broward County Clerk’s office, Book 46050, Page 342.
MOTOR VEHICLES:
One 2010 Mercedes Benz E350, VIN: WDDHF5GB7AA221490.
One 2009 Buick Enclave, VIN: 5GAER23D29J137598.
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WATERCRAFT:
One 2004, 35 foot Contender, 600 Horsepower, VS Hull #JDJ35358G404.
All pursuant to Title 18, United States Code, Section
981(a)(1)(C), Title 28, United States Code, Section 2461, and Title
21, United States Code, Section 853(p).
SECOND FORFEITURE ALLEGATION(Wire Fraud)
The Grand Jury Further Alleges That:
As a result of their convictions from Counts 2 through 30 of
the Indictment, the defendants, ARNOLD WROBEL a/k/a Jim Palmer,
MARTIN RHYS JONES a/k/a Martin Reece a/k/a John Allen, MONICA
ROMASZKO a/k/a Monica Wrobel, GENE CLARK FOLAND and JEFFREY G.
KLEIN, shall forfeit to the United States any property, real or
personal, which constitutes or was derived from, or traceable to
the gross proceeds and any and all property used or intended to be
used to commit, to facilitate, or to promote the commission of such
offense as referenced in each count of conviction.
SUBSTITUTE ASSETS
If any of the property described in this section, as a result
of any act or omission of the defendant;
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1. cannot be located upon the exercise of due diligence;
2. has been transferred or sold to, or deposited with, a third party;
3. has been placed beyond the jurisdiction of the court;
4. has been substantially diminished in value; or
5. has been commingled with other property which cannot be divided without difficulty;
the court shall order the forfeiture of any other property of the
defendant up to the value of the above property, including but not
limited to the following:
Those specific items specifically identified and incorporated
as fully set forth in the First Forfeiture Allegation above.
All pursuant to Title 18, United States Code, Sections
981(a)(1)(C), 982(a)(2)(A), 982(a)(8)(A), 982(a)(8)(B) and
982(b)(1), Title 21, United States Code, Section 853(p), and Title
28, United States Code, Section 2461(c).
THIRD FORFEITURE ALLEGATION(Money Laundering)
The Grand Jury Further Alleges That:
As a result of their convictions from Counts 31 through 40 of
the Indictment, the defendants ARNOLD WROBEL a/k/a Jim Palmer,
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MARTIN RHYS JONES a/k/a Martin Reece a/k/a John Allen, MONICA
ROMASZKO a/k/a Monica Wrobel, GENE CLARK FOLAND and JEFFREY G.
KLEIN, shall forfeit to the United States, any property, real or
personal, involved in the offense of conviction or any property
traceable to such property, as pertaining to each count of
conviction.
SUBSTITUTE ASSETS
If any of the property described in this section, as a result
of any act or omission of the defendant;
1. cannot be located upon the exercise of due diligence;
2. has been transferred or sold to, or deposited with, a third party;
3. has been placed beyond the jurisdiction of the court;
4. has been substantially diminished in value; or
5. has been commingled with other property which cannot be divided without difficulty;
the court shall order the forfeiture of any other property of the
defendant up to the value of the above property including but not
limited to the following:
Those specific items specifically identified and incorporated
as fully set forth in the First Forfeiture Allegation above.
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All pursuant to Title 18, United States Code, Sections
982(a)(1) and 982(b)(1), and Title 21, United States Code, Section
853(p).
DATED: Buffalo, New York, April 17, 2012.
WILLIAM J. HOCHUL, JR.United States Attorney
BY: S/GRETCHEN L. WYLEGALA GRETCHEN L. WYLEGALAAssistant U.S. AttorneyUnited States Attorney's OfficeWestern District of New York138 Delaware AvenueBuffalo, New York 14202(716) 843-5700 ext. 822 [email protected]
A TRUE BILL:
S/FOREPERSON FOREPERSON
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