USA V Wrobel Et Al Doc 1 Filed 17 Apr 12

Case 1:12-cr-00125-WMS-HBS Document 1
Filed 04/17/12 Page 1 of 34
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 -vsARNOLD WROBEL a/k/a Jim Palmer (Counts 1 - 40), MARTIN RHYS JONES a/k/a Martin Reece a/k/a John Allen (Counts 1 - 40), MONICA ROMASZKO a/k/a Monica Wrobel (Counts 1 - 40), 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), and JAMIE LEE CHURCH a/k/a Charlotte Keys (Count 1) INDICTMENT
Violations: Title 18, United States Code, Sections 1343, 1349, 1956(a)(2)(A) 1956(h), 1957(a) and 2 (40 Counts and 3 Forfeiture Allegations)
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 email address arniewrobel@yahoo.com was
the United States.
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
jonsey_37@yahoo.co.uk 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. WROBEL. ROMASZKO. ROMASZKO is the sister of
The email address cafe123409@yahoo.com was registered to
4.
The
defendant,
GENE
CLARK
FOLAND
(FOLAND),
was
citizen of the United States and he resided in Florida.
FOLAND
formerly held various securities licenses in the United States. 2
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 TATUM was an
the United States and he resided in California.
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 MARCUS was a
the United States and he resided in Florida.
certified public accountant and had an affiliation with Clean Coal Technology, Inc. and its predecessor entity. corporate entity called Illusion, Inc. He also owned a
8. Kuwait.
The defendant, SAAD SHUAIB (SHUAIB), was a citizen of
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.
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 socalled 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
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. issued by
The boiler room obtained shares of restricted stock 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.
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. 2.
OBJECT OF THE CONSPIRACY 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
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 BE ACCOMPLISHED
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.
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
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
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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. to obtain
The initial telephone calls by the fronters were intended 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 WROBEL used the name Jim
names in communicating with investors.
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. associated provider.
The defendants directed the investors to websites with email The addresses websites for for the these so-called so-called administrative 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 ROMASZKOs 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 Those
and ROMASZKO communicated regularly, including by email.
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. was also shared with FOLAND.
Bank account information
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 SHUAIBs 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. other cases, no certificates were ever delivered. In
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. b. More than $1,797,000 was wired to the La Caixa account of Quick Meds, SL. More than $799,000 was wired to WROBEL, to accounts at La Caixa, Deutsche Bank, and Zuercher Kantonal Bank. More than $543,000 was wired to an account in Florida belonging to KLEIN. More than $406,000 was wired to JONES, at accounts maintained at La Caixa, Deutsche Bank, and Abbey International, in the Channel Islands. More than $298,000 was wired to the La Caixa account of El Trebol Magico, SL. More than $170,000 was wired to accounts for the benefit of COLE. More than $80,000 was wired to accounts for the benefit of CHURCH.
c. d.
e. f. g.
16
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h. i. j.
More than $68,000 was wired to accounts for the benefit of MALIZIO. More than $38,000 was wired to accounts for the benefit of CLAYTON. A sum was wired to FOLANDs Charles Schwab account.
37.
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.
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 follows: a. b. c. More than $354,000 was wired to El Trebol Magico at La Caixa. $214,000 was wired to an account belonging to KLEIN. $41,000 was wired to the La Caixa account of Subscription Billing Solutions SL. More than $39,000 was belonging to WROBEL. 17 wired to accounts into the Bank of America Breckenridge Account, as
d.
Filed 04/17/12 Page 18 of 34
e.
$20,000 was wired Caixa.
to Quick Meds, SL at La
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
Filed 04/17/12 Page 19 of 34
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 2 DATE 08/26/08 WIRE COMMUNICATION $6,290 wire (Victor P.)into Breckenridge account #-1929 in the WDNY from Toronto Dominion Bank in Canada $4,450 wire (Randy D.)into Breckenridge account #-1929 in the WDNY from Bank of Nova Scotia in Canada $10,385 wire (Randolf J.)into Breckenridge account #-1929 in the WDNY from Bank of Montreal in Canada $11,385 wire (Raymond P.)into Breckenridge account #-1929 in the WDNY from Royal Bank of Canada in Canada $10,140 wire (Victor B.)into Breckenridge account #-1929 in the WDNY from Toronto Dominion Bank in Canada $60,130 wire (Randolf J.)into Breckenridge account #-1929 in the WDNY from Bank of Montreal in Canada $99,980 wire (Randolf J.)into Breckenridge account #-1929 in the WDNY from Bank of Montreal in Canada $5,900 wire (Victor B.) into Breckenridge account #-1929 in the WDNY from Toronto Dominion Bank in Canada $41,985 wire (Raymond P.)into Breckenridge account #-1929 in the WDNY from Royal Bank of Canada $92,480 wire (Randolf J.) Into Breckenridge account #-1929 in the WDNY from Bank of Montreal in Canada 19
08/26/08
08/29/08
09/04/08
09/05/08
09/08/08
09/12/08
09/16/08
10
09/16/08
11
09/22/08
Filed 04/17/12 Page 20 of 34
12
09/22/08
$99,980 wire (Randolf J.) into Breckenridge account #-1929 in the WDNY from Bank of Montreal in Canada $12,450 wire (Randy D.)into Breckenridge account #-1929 in the WDNY from Bank of Nova Scotia in Canada $10,700 wire (Gerard B.)into Breckenridge account #-1929 in the WDNY from Toronto Dominion Bank in Canada $7,990 wire (Victor B.) into Breckenridge account #-1929 in the WDNY from Toronto Dominion Bank in Canada $10,700 wire (Randy D.)into Breckenridge account #-1929 in the WDNY from Bank of Nova Scotia in Canada $6,150 wire (Eldon K.)into Breckenridge account #-1929 in the WDNY from Advantage Credit Union, Saskatchewan, Canada $16,235 wire (Raymond P.)into Breckenridge account #-1929 in the WDNY from Royal Bank of Canada in Canada $6,435 wire (Betty Y.)into Breckenridge account #-1929 in the WDNY from Royal Bank of Canada in Canada $3,450 wire (Ken J.)into Breckenridge account #-1929 in the WDNY from Bank of Nova Scotia in Canada $29,985 wire (Raymond P.)into Breckenridge account #-1929 in the WDNY from Royal Bank of Canada in Canada $7,697 wire (Richard R.) into Breckenridge account #-1929 in the WDNY from HSBC Bank PLC London, England $5,490 wire (Kevan T.) into Breckenridge account #-1929 in the WDNY from England $14,870 wire (Thomas B.)into Breckenridge account #-1929 in the WDNY from HSBC Bank PLC London, England 20
13
09/23/08
14
09/23/08
15
09/23/08
16
09/23/08
17
09/28/08
18
11/19/08
19
11/24/08
20
12/03/08
21
12/08/08
22
03/09/09
23 24
05/01/09 05/12/09
Filed 04/17/12 Page 21 of 34
25 26
05/14/09 06/10/09
$3,730 wire (Aldo M.)into Breckenridge account #-1929 in the WDNY from Barclays Bank, UK $7,225 wire (Richard R.) into Breckenridge account #-1929 in the WDNY from HSBC Bank PLC London, England $9980 wire (Aldo M.)into Breckenridge account #-1929 in the WDNY from Barclays Bank, UK $28,480 wire (Aldo M.)into Breckenridge account #-1929 in the WDNY from Barclays Bank, UK $3,975 wire (David H.) wired into Breckenridge account #-1929 in the WDNY from HSBC Bank PLC London, England $24,980 wire (Lawrence P.) into Breckenridge account #-1929 in the WDNY from Barclays Bank, England
27 28
06/18/09 06/30/09
29
07/08/09
30
07/29/09
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 21
Filed 04/17/12 Page 22 of 34
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) the
To knowingly engage in monetary transactions, that is, withdrawal and transfer of funds and monetary
deposit,
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).
22
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B.
MEANS BY WHICH THE OBJECTS OF THE CONSPIRACY WERE TO BE ACCOMPLISHED
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 23
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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 proceeds. FOLAND, TATUM, and MARCUS for their share of the fraud
24
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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.
25
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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 32 DATE 09/22/08 MONETARY TRANSACTION $100,000 wire from Bank of America -1929 (Breckenridge Administrative Providers) to KLEIN at Wachovia Bank, Florida $100,000 wire from Bank of America - 1929 (Breckenridge Administrative Providers) to KLEIN at Wachovia Bank, Florida $14,000 wire from Bank of America - 1929 (Breckenridge Administrative Providers) to KLEIN at Wachovia Bank, Florida
33
09/23/08
34
07/31/09
All in violation of Title 18, United States Codes, Sections 1957(a) and 2. 26
Filed 04/17/12 Page 27 of 34
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 35
DATE
MONETARY TRANSACTION
09/15/08 $120,000 wire from Bank of America -1929 (Breckenridge Administrative Providers) to El Trebol Magico SL account -3713 at La Caixa in Barcelona, Spain 09/23/08 $125,000 wire from Bank of America -1929 (Breckenridge Administrative Providers) to El Trebol Magico SL account -3713 at La Caixa in Barcelona, Spain
36
27
Filed 04/17/12 Page 28 of 34
37
10/01/08 $41,000 wire from Bank of America -1929 (Breckenridge Administrative Providers) to Subscription Billing Services SL account -9905 at La Caixa, Barcelona, Spain 11/24/08 $16,000 wire from Bank of America -1929 (Breckenridge Administrative Providers) to El Trebol Magico SL account -3713 at La Caixa, Barcelona, Spain 12/08/08 $20,000 wire from Bank of America -1929 (Breckenridge Administrative Providers) to El Trebol Magico SL account -3713 at La Caixa, Barcelona, Spain 12/09/08 $30,000 wire from Bank of America -1929 (Breckenridge Administrative Providers) to El Trebol Magico SL account -3713 at La Caixa, Barcelona, Spain
38
39
40
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 28
Filed 04/17/12 Page 29 of 34
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. 2. 3. 4. 5. cannot be located upon the exercise of due diligence; has been transferred or sold to, or deposited with, a third party; has been placed beyond the jurisdiction of the court; has been substantially diminished in value; or 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:
29
Filed 04/17/12 Page 30 of 34
As to Defendant GENE CLARK FOLAND: REAL PROPERTY: 5060 NE 23rd Terrace, Lighthouse Point, Florida, as described in the Broward County Clerks 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 Clerks 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 Clerks office, Book 24176, Page 0962 676 West Prospect Road (APN 49-42-22-08-0321), Oakland Park, Florida, as described in the Broward County Clerks office, Book 46050, Page 342. 676 West Prospect Road (APN 49-42-22-08-0360), Oakland Park, Florida, as described in the Broward County Clerks office, Book 46050, Page 342.
MOTOR VEHICLES: One 2010 Mercedes Benz E350, VIN: WDDHF5GB7AA221490.
One 2009 Buick Enclave, VIN: 5GAER23D29J137598.
30
Filed 04/17/12 Page 31 of 34
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;
31
Filed 04/17/12 Page 32 of 34
1. 2. 3. 4. 5.
cannot be located upon the exercise of due diligence; has been transferred or sold to, or deposited with, a third party; has been placed beyond the jurisdiction of the court; has been substantially diminished in value; or 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 and
981(a)(1)(C),
982(a)(2)(A),
982(a)(8)(A),
982(a)(8)(B)
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,
32
Filed 04/17/12 Page 33 of 34
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. 2. 3. 4. 5. cannot be located upon the exercise of due diligence; has been transferred or sold to, or deposited with, a third party; has been placed beyond the jurisdiction of the court; has been substantially diminished in value; or 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.
33
Filed 04/17/12 Page 34 of 34
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. WYLEGALA Assistant U.S. Attorney United States Attorney's Office Western District of New York 138 Delaware Avenue Buffalo, New York 14202 (716) 843-5700 ext. 822 gretchen.wylegala@usdoj.gov
A TRUE BILL: S/FOREPERSON FOREPERSON
34

USA V Wrobel Et Al Doc 1 Filed 17 Apr 12

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Case 1:12-cr-00125-WMS-HBS Document 1

Filed 04/17/12 Page 1 of 34

Case 1:12-cr-00125-WMS-HBS Document 1

Filed 04/17/12 Page 2 of 34

INTRODUCTORY ALLEGATIONS At all times relevant to this indictment:

the United States.

The defendant, MARTIN RHYS JONES a/k/a Martin Reece a/k/a

jonsey_37@yahoo.co.uk was registered to JONES.

The email address cafe123409@yahoo.com was registered to

citizen of the United States and he resided in Florida.

formerly held various securities licenses in the United States. 2

Case 1:12-cr-00125-WMS-HBS Document 1

Filed 04/17/12 Page 3 of 34

attorney and citizen of the United States and he resided in Florida.

The defendant, WALTER TATUM (TATUM), was a citizen of TATUM was an

the United States and he resided in California.

The defendant, JOEL MARCUS (MARCUS), was a citizen of MARCUS was a

the United States and he resided in Florida.

The defendant, SAAD SHUAIB (SHUAIB), was a citizen of

The defendants DAVID COLE (COLE), KYLE CLAYTON a/k/a

Case 1:12-cr-00125-WMS-HBS Document 1

Filed 04/17/12 Page 4 of 34

The defendant, RAYMOND MALIZIO (MALIZIO), was a United

States citizen and worked in Barcelona, Spain.

of freely traded shares.

JONES and WROBEL ran a telemarketing operation, sometimes

referred to as a boiler room, from a number of locations in

Case 1:12-cr-00125-WMS-HBS Document 1

Filed 04/17/12 Page 5 of 34

The boiler room also sold shares of Green Energy Live

(GELV), without ever obtaining those shares.

FOLAND was instrumental in identifying shares of stock to

sell to the boiler room.

KLEIN served as an escrow agent for stock transfers to

the boiler room.

Case 1:12-cr-00125-WMS-HBS Document 1

Filed 04/17/12 Page 6 of 34

COLE, CLAYTON, CHURCH and MALIZIO worked in Barcelona,

Spain at the boiler room operated by WROBEL and JONES.

incorporated as if fully set forth herein.

representations and promises and for the purpose of executing such 6

Case 1:12-cr-00125-WMS-HBS Document 1

Filed 04/17/12 Page 7 of 34

MEANS BY WHICH THE OBJECTS OF THE CONSPIRACY WERE TO BE ACCOMPLISHED

The objects of the conspiracy were to be accomplished in substance as follows:

The defendants utilized a high pressure sales pitch made

Case 1:12-cr-00125-WMS-HBS Document 1

Filed 04/17/12 Page 8 of 34

After investors purchased the stock, defendants directed

After receiving payments from the investors for the

ACTS IN FURTHERANCE OF THE CONSPIRACY

WROBEL and JONES became affiliated as members or managers

WROBEL and JONES held their boiler room

stock recommendation business using, at various times, the names

Case 1:12-cr-00125-WMS-HBS Document 1

Filed 04/17/12 Page 9 of 34

WROBEL and JONES caused the creation of numerous websites

The website literature and information sent by email to

London, England; and New York City, New York.

WROBEL and JONES hired callers, also known as fronters,

COLE, CLAYTON, CHURCH and MALIZIO, and others known and

used aliases when contacting investors. CLAYTON used the names