MEYER, OLSON, LOWY & MEYERS, LLP Jes, Calon 0067 10100 Santa Mea Houkou Su M25 » Lot ©anoan eon 10 " 12 13 14 18 16 17 18 19 20 21 22 23 24 25 26 27 28 DEI TION OF EDITH CURRY, E |, EDITH CURRY, ESQ., declare as follows: 4. lam a founding member of Palaxar Holdings, LLC ("Palaxar’), a company that provides occupational fraud analyses’, risk assessment, forensic investigations and due diligence for domestic and international companies. As set forth in further detail below, | am a principal investigator In an ongoing fraud case involving, inter alia, Petitioner, Daniel Giersch (“Mr. Glersch’), which commenced in February 2010. | have personal knowledge regarding the probable grounds upon which Mr. Giersch’s O-1 Visa was revoked, which | understand may be relevant to the within case. Specifically, | believe based upon the evidence uncovered during Paiaxar's 2010 investigation of Mr. Giersch, QUABB.COM, LLC (‘QUABB") and others, that neither Mr. Giersch nor any of his U.S. “shell” companies EVER filed the requisite United States Income Tax returns, and also ‘engaged In Vise fraud. | believe this behavior, and Palaxar’s 2010. ing of such, is the reason for the revocation of Mr. Giersch’s O-1 Visa. If called upon as a witness, | could and would competently testify to the following: 2. 1am a member of the Ohio State Bar with a Master's Degree in finance. | : (1) Patent #2008001- Methods of am a co-inventor on two (2) pending patent applicatio deterring fraud and other improper behaviors within an organization; and (2) Patent +#20080015978 - Methods of monitoring suspected fraudulent behavior/activity of an individual associated with an organization. | have been a witness for the United States Attomey and the Department of Justice regarding occupational fraud, and have personally conducted and/or supervised over one hundred (100) forensic fraud investigations, due diligence projects and governance, risk and compliance reviews. | have held senior "The Association of Certified Fraud Examiners (“ACFE”) defines occupational fraud as “the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization's resources or assets.” This definition includes a broad range of misconduct by executives, managers and employees of organizations ranging from petty theft to sophisticated investment swindles, Ponzi schemes, money laundering and tax evasion. 1 IN RE MARRIAGE OF GIERSCH LHW BDATARharaplendhges0s0012 Ean Cun dee wp DECLARATION OF EDITH CURRY, ESQ.Lowy & Meyers, Lu je 25+ Ls {0100 Sana Monica Bosker finance and legal positions with USAYr, Inc., Hughes Aircraft, Nestle USA and Capital One Services, Inc. In addition, | lecture both senior intemal auditors and corporate counsel worldwide on fraud detection, insider threats, risk analyses and how to design audit programs to detect, deter and investigate occupational fraud, Palaxar Hired to Conduct Due Diligence 3. In February 2010, Palaxar was engaged by corporate clients, who were potential investors, to conduct due diligence on several foreign and domestic IT 1 oF investment. companies, These companies were potential targets for either acai One of the subject companies under investigation was QUABB, a company registered fo do business in the United States, and the 2009 sponsor for the O-1 Visa of its apparent sole owner and employee, Mr. Giersch. The scope of Palaxar's investigation was to determine the legitimacy of not only the target companies, but their owners and executive employees as well. 4. Along with Mr. Giersch, Ms. Rutherford was also a subject of Palaxar’s investigation, until epproximately December 2010, when it was determined that Ms. Rutherford did not participate in any fraudulent activities engaged in by Mr. Giersch and/or QUABB. Palaxar was not retained by Ms. Rutherford and/or any of her agents in rsch and/or QUABB. | had never connection with its independent investigation of Mr. spoken to Ms. Rutherford and/or any of her agents before and/or during the course of my due diligence investigation, as discussed herein. Jaxar Released Investigation Results to the State Depart 5. While the relevant chronology of our investigation and research is set forth in detail hereinbelow, it is Important to note that in early 2010 Palaxar uncovered compelling evidence regarding suspected Visa fraud and income tax evasion by Mr. Giersch and others, which we were compelled to submit to the State Department, and which presumably led to the revocation of Mr. Giersch's O-1 Visa on or around January 2012. Specifically, on or around August 2010, Palaxar sent the results of its investigation regarding convicted felon, ich, QUABB, Mr. Giersch and others directly to the 2 IN RE MARRIAGE OF GIERSCH DECLARATION OF EDITH CURRY, ESQ. HWPDATAVRuterrsteadngsis812 ath Cary decompMEYER, OLSON, LOWY & MEYERS, LLP Monica Boner Site L625» Lon Angle, Ci 10100 Sa Criminal investigative Division, Visa .S. Department based upon the substantial behavioral indic: vered by Palaxar over th fits investigation of aberrant and potentially fraudulent activities. [See below] Income Tax Evasion and Visa Fraud by Mr. Giersch 6. During Palaxar’s investigation of Mr. Giersch ef a/., we identified a pattern behavior consistent with known fraudulent behavior patterns and indicative of substantial flight risk, as follows: ‘A. The agent for service of process for QUABB (Mr. Giersch's company) was Eli Rich (Mr. Rich"), a former California attorney who, according to the California Bar website, became inactive as of July 1, 2008, and resigned on April 9, 2006 because of his December 5, 2005 guil Vi id - Title 18 USC 1546(a). Mr. Rich had. rily surrendered his law license pursuant to his felony conviction at lime QUABB sponsored Mr. Giersch’s is ication in earl 2009, Mr. Rich's sentence was suspended and he was, inter alia, required to serve five (8) years’ probation and to perform 2,500 hours of community service. Attached collectively hereto as Exhibit “A” is a copy of the State Bar of California Attorney Search for Eli A. Rich - #173758, as well as the Judgment and Probation/Commitment Order for Mr. Rich filed on December 7, 2005. B. of. 2010, we could i that QUABB was ever a bona fide company within the United States the U.S.). In fact, all activity for this company originated from offices and a website e., never conducted business in located exclusively outside of the United States. C. _ inearly 2009, despite never havin ‘operations within the United States, QUABB sponsored an O-1 Visa application for Mr. Giersch, a German citizen with residences at that time in the United States, Monaco and Germany. Mr. Giersch’s 0-1 Visa was granted on June 18, 2009. Again, Mr. Rich already had pled guilty to Visa fraud, surrendered his law license and served four (4) of the five (5) year sentence for Visa fraud at the time he asassisted Mr. Giersch in obtaining an O- 3 IN RE MARRIAGE OF GIERSCH DECLARATION OF EDITH CURRY, ESQ. LRWPOATA'Ruberertleadngs\4050812 Ese, Cry docoMEYER, OLSON, LOWY & MEYERS, 10100 Sans Maia Houle, 15 + Las Angles, s QUABB's registered agent. It is my opinion that Mr. Giersch knew that Mr, Rich had been disbarred and was a convicted felon because the information was publicly available and Mr. Giersch represents himself as a sophisticated international financial investor with considerable successful litigation experience against major corporations such as Google, D. In April 2009, Mr. Giersch shipped his household goods from Germany to Oakland, CA, as well as a large shipment of "brass plumbing parts’ from Taiwan. Attached hereto as Exhibit “B” is a copy of the Ocean Bill of Lading reflecting said shipments. | was not able to establish a legitimate business purpose for Mr. Giersch, an IT entrepreneur and financial advisor, to order such quantities of materials from Talwan. The timing and sequence of Mr. Giersch’s behaviors from 2007-2010 were not consistent with those of someone with a legitimate business purpose. E. Mr. Giersch was also listed as the owner of Giersch Ventures, Inc., which according to its website at www.Glersch.com and www.GlerschVentures.com "Provides asset and wealth management, investment funding and management, and other financial advice. Based in the USA, caters to intemational cllents.” | could find NO lence of Giersch Ventures, Inc. havin; n incorporated or registered to 2 do business in the United States. There is NO evidence that Giersch Ventures, Inc.. license, registered in the State of California or obtaiy over filed for federal tax ID within the United States. Based on the results of Palaxar's investigation, | could find no evidence that QUABB or any business affiliated with Mr. Giersch conducted legitimate business within the United States. Accordingly, it is my belief that Mr. Giersch’s 0-1 Visa was fraudulently obtained in 2009 and fraudulently maintained by Mr. Giersch through 2012. F. My investigation further revealed that Mr. Giersch, while living in the United States between 2009 and 2012, never paid taxes to the Internal Revenue Service (“IRS"), in further violation of the O-1 Visa requirements. Specifically, Mr. Glersch owned real property in the United States, which he quitclaimed to various “shell” 4 IN RE MARRIAGE OF GIERSCH DECLARATION OF EDITH CURRY, ESQ. WPDATAIRutmtrdpiensngsic508 2th Curse wnsMerve, OLSON, LOWY & MEYERS, 10100 Sans Mona Howler ite 145 + Lo Angles, Calon 90067 companies. Further, ited or tran: large sums of money companies while he was NEVER listed as an officer or employee. This behavior is consistent with one who intends to conceal income and financial transactions, particularly from the IRS. Mr. Giersch, ef al., deposited in excess of $250,000 into various accounts held in trust by the "shell" companies for his benefit, and purchased, sold and/or transferred over $5.5 Million in real estate. | can find no evidence that such transactions were properly reported to the IRS. G. One of the “shell” companies used by Mr. Giersch is Walking Shtick Productions, Inc., which is an “active” corporation registered to do business in Califomia; however, its "corporate offices" are a Mail Depot located at 200 North Huntington Drive, Alhambra, CA 91801, Attached collectively hereto as Exhibit “G” are copies of the company description for Walking Shtick Productions, Inc., as well as an online Yellow Pages business search reflecting its "corporate offices" location at a Mail Depot. Other than transferring assets for Mr. Giersch, | can find no other business activitios for this, corporation, nor did it file @ tax return, H. On December 20, 2010, Walking Shtick Productions, Inc. purchased a home located at 195 Hildreth Road, Bridgehampton, New York ("Hildreth Residence”), with a property value of approximately $1 Million at that time. In 2011, Mr. Giersch primarily resided in the Hildreth Residence. On or around April 2, 2012, Walking Shtick Productions, Inc. listed the Hildreth Residence for sale at $1.45 Million. Attached herato as Exhibit “D” is a true and correct copy of the MLS listing for the Hildreth Residence, MLS #2482381. Based upon my experience, the timing and sequence of Mr. Giersch’s liquidation of assets both within the United States and internationally is a significant indicator of flight risk,” ?Outside of the United States, Mr. Giersch has transferred ownership of various assets, trademarks, corporations, LLCs and intellectual property between himself, Giersch Ventures, Inc. and his mother, Rosita Glersch. This behavior is highly predictive of one who intends to-conceal both his assets and his location IN RE MARRIAGE OF GIERSCH DECLARATION OF EDITH CURRY, ESQ. BW POATARutarcdoleadingls050812 Cath Cunydoe wpLOWY & MEYERS, LLP je L425 © Les Ange, Califo O07 a g ¥ i : eCernoaa nan 10 "1 12 13 14 16 16 7 18 19 20 24 22 23 24 25 26 ar 28 |. On the same date that Walking Schtick Productions, Inc. purchased the Hildreth Residence, Brigette Lehnard (Ms. Lehnard”), signed the deed as the “authorized agent” for Walking Schtick Productions, Inc. Ms. Lehnard is also the President of Flow Modern Design, Inc., an interior design firm with an office located at 701 E. Ocotillo Ave., Palm Springs, CA 92264. During 2009, Mr. Giersch deposited funds in excess of $250,000 into a client trust account held by Flow Modem Design, inc., from which account Ms. Lehnard would wire money, accept deposits and write checks from Flow Modern Design's “client trust account’ for Mr. Giersch’s living expenses not related to any “interior design’ activities. Conclusion 7. Based upon the foregoing, it my belief that Mr. Giersch’s O-1 Visa was revoked as a result of Palaxar’s investigation and reporting of evidence regarding Mr. fraud to the State Department. Further, the timing and sequence Glersch’s ongoing of Mr. Giersch's pattern of behavior are highly indicative of a likelihood of continuing fraudulent behavior and increased flight risk | declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on May_§ , 2012, at Richmond, Virginia, IN RE MARRIAGE OF GIERSCH DECLARATION OF EDITH CURRY, ESQ, IAWPDATAMRUtafonditnadinghSOS0BI2ESU.Cumy docwed