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SYNOPSIS OF NEW YORK DISTRICT ATTORNEY'S INDICTMENT OF JOHN MAZZUTO, JAMES MARGULIES, ET AL RELATED TO INTERNATIONAL ENTERPRISES OF AMERICA (IEAM)

FRAUD

Named Defendants
Name Felony Charges Felony Counts Potential Sentence Allegations
Grand Larceny in the First Degree 2 up to 25 years conspired with Margulies to steal over
John Mazzuto $60,000,000
Violation of General Business Law 2 1 1/3 - 4 years
Scheme to Defraud in the First Degree 1 1 1/3 - 4 years personally obtained over $15,000,000 from
scheme
Conspiracy in the Fourth Degree 1 1 1/3 - 4 years
Falsifying Business Records in the First Degree 51 1 1/3 - 4 years
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Grand Larceny in the First Degree 2 up to 25 years conspired with Mazzuto to steal over
James Margulies $60,000,000
Violation of General Business Law 2 1 1/3 - 4 years
Scheme to Defraud in the First Degree 1 1 1/3 - 4 years personally obtained over $6,000,000 from
scheme
Conspiracy in the Fourth Degree 1 1 1/3 - 4 years
Falsifying Business Records in the First Degree 33 1 1/3 - 4 years
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Unindicted Co-Conspirators
Alleged Value/Shares of
Co-Conspirator # Relationship Name Ilegal Stock Received
1 friend and cohort of James Margulies Randall Rosenthal $9,250,000
2 John Mazzuto's girlfriend Ilene Engleberg 750,000 shares
3 business associate of Mazzuto (controlled OH based entity) TBD 500,000 shares
4 Mazzuto's attorney TBD 150,000 shares
5 business associate of Mazzuto George Cannan is Co-conspirator #5 or #6 500,000 shares
6 business associate of Mazzuto George Cannan is Co-conspirator #5 or #6 500,000 shares
7 business associate of Mazzuto (controlled TX based entity) TBD
8 IR rep TBD 1,000,000 shares
9 stock promoter who arranged sham private stock sales TBD 40,000 shares
10 accountant located in OH TBD

Referenced in Indictment
Alleged Value/Shares of
Relationship Name Ilegal Stock Received
John Mazzuto's Family John Mazzuto's Family 425,000 shares
John Mazzuto's university alma mater Yale University $1,700,000
John Mazzuto's high school alma mater Tabor Academy $1,500,000
James Margulies' wife Susan Margulies 150,000 shares
Entity Controlled by John Mazzuto M4 Capital $2,600,000
Mazzuto-controlled entity Sapphire Associates - owned by Mazzuto's girlfriend Ilene Engleberg 400,000 shares