Professional Documents
Culture Documents
Page 45, Counts 15-24: Corrupt receipt of bribe/reward for official action
concerning programs receiving federal funds 18 USC 666
UNITED STATES D I S TRICT COURT
FOR THE MIDDLE D I STRICT OF PENNSYLVANIA
FILED
I N D I C T M E N T
Count 1
HARRRI JRti.
SP 9-
PA
2009
18 u . s . c . 1 9 6 2 ( c )
{Racketeering )
THE GRAND JURY CHARGES:
A. THE PARTIES
1.
MICHAEL T .
Be tween
Between
In
direct or indirect.
reporting
The Administrative
Eastern District of
Pennsylvania.
B.
3.
THE ENTERPRISE
the Court of
18,
4.
11the Enterprise11 ) .
JR.
The Enterprise
interstate commerce.
CIAVARELLA,
by
Section 1961(4)
and
constituted an "enterprise" as
(hereinafter referred to as
was engaged in,
as
CONAHAN and
MARK
A.
CONAHAN and
MARK
A.
CIAVARELLA,
2007,
JR.
entering into
( hereina f t e r r e f e rred to a s
( hereina f t e r re f e rred to as
and
"We s tern
Luz e rne County Court budge t for the Luz erne County j uveni le
detent i on f a c i l i ty, e f f ec t ive ly c los ing the county - run youth
detent ion c ente r ;
summari ly
grant ing mot i ons to seal the record and for inj unc t ive r e l ie f in
a c ivil c a s e related to PA Chi l d Care ;
but not
l imi ted to, caus ing income in the form of c a s h, checks and wire
t rans fers to pa s s through intermediar i e s and c aus ing f a l s e
records to be c reated .
7.
In approxima t e ly June o f 20 0 0 ,
t he de f endant MARK A .
CIAVARELLA, JR. , whos e dut i e s then inc luded pre s i ding over
juveni l e proceeding s as a judge of the Court o f Common Pleas for
Luz e rne County, had d i s cus s ions with an a t torney who had a law
prac t i c e in Luzerne County, he reinaf t e r re f e rred to as
" PARTICI PANT #1 , " who was intere s ted i n cons t ruct ing a juvenile
de tent ion f ac i l i ty in Luzerne County .
CIAVARELLA, JR .
De f endant MARK A .
land for the juveni le f ac i l i ty and for cons t ruc t i ng the f ac i l i ty.
8.
Chi l d Care ,
agre ement with PARTI C I PANT #2 to cons t ruc t a juveni l e de tent ion
c enter to be operated by PA Chi l d Care .
9.
On or about January 29 , 20 0 2 ,
de f endant MI CHAEL T .
Care and the Court o f Common P l eas for Luz erne County to house
juven i l e o f f enders at the PA Chi ld Care f ac i l i ty.
Guarantee Agreement " provide d that the Court o f Common Pl eas for
Luzerne County would pay PA Chi ld Care the annual
Ins tal lment "
" Rental
CIAVARELLA, JR .
arranged to receive
I n f a c t, however, a large
port ion of
and MARK A.
1 3.
CIAVARELLA ,
MICHAEL T.
CONAHAN
JR.
CIAVARELLA, JR.
engaged
On January 21,
20 0 3,
The
20 0 3, the $6 1 0 , 0 0 0 in the
CONAHAN.
- - -
20 0 3,
CIAVARELLA, JR.
For examp l e, on
CONAHAN
20 0 3,
CIAVARELLA, JR. ;
CONAHAN
on or about July 1 5 ,
20 0 3,
CIAVARELLA ,
JR. ;
on or about Augus t 1 3 , 2 0 0 3 ,
and ,
on or about August 2 0 ,
CONAHAN.
CIAVARELLA ,
JR. ,
de f endant MI CHAEL T .
CONAHAN
Inc .
CIAVARELLA ,
JR.,
-c:
M Il1AEL
a port i on of the $ 3 8 7 ,6 0 0
C IAVARELLA ,
JR.
CONAHAN .
doing
same cont rac tor who bui l t the f ac i l i ty in Luz erne County ,
was
In
July o f 2005,
JR .
the
a $ 1, 000, 000
by PARTICI PANT #1 .
and CIAVARELLA,
JR . ,
however ,
C IAVARELLA ,
20.
LLC ,
JR .
Chi ld Care ,
In
CIAVARELLA ,
JR .
21 .
and CIAVARELLA ,
JR . ,
In f ac t ,
LLC ,
a bus ine s s
JR .
C IAVARELLA ,
JR . ,
in h i s capacity as a juveni le
co 11:r:_t juge, })e g:an di rect i!lg that youthful o f f E:_!1de r s be sent to
that faci l i ty .
January 1 ,
2 007 ,
CIAVARELLA ,
JR .
l ocat i on ,
s ource ,
by PARTI C I PANT # 1 .
23 .
Some of
LLC .
The
2004 ;
$ 5 2, 000
2004 ;
2004 ;
$ 7 5 ,000 paid on or
2004 .
24 .
CONAHAN
CONAHAN directed
In addi t ion
were made by wire t ran s f ers made f rom one or more bank accounts
under the c ontrol o f PARTICI PANT #1 and were t ran s f e rred to an
account under the c ont ro l of t he P innac l e Group of Jupiter, LLC .
The payment s inc luded, but were not ne c e s s ar i ly l imi t ed to, the
f o l l owing :
2004 ;
2006 ;
$ 4 2,000 paid on or
10
2006 ;
$ 31, 5 00 paid on or
28 .
Ac t One
- W ire Trans f e rs
Made In Conne c t ion W i th Cons truction
of PA Chi ld Care Juveni l e Detent ion
2 9.
January 1 ,
in the Mi ddle
MARK
A.
11
RACKETEERING ACT 1 . 1
On or about January 21 ,
2003,
e f.--t he :i.-r
r-i 9-ht--t-e-1;-he-nene s &- - s -e FVi Ge - s -e-f - -t.ne --GI.-e fe-nda nt-S-,- tJ:e-
de fendants M ICHAEL T.
CIAVARELLA, JR.
Uni t ed S t a t e s Code, 2,
1 3 4 3 and 1 34 6 .
RACKETEERING ACT 1 . 2
On or about January 24 ,
executing the s cheme and art i f ice to de f raud and deprive the
c i t i z ens of Luz e rne County and the Commonwea l th o f Pennsylvania
of the i r r i ght to the hone s t s ervi c e s of the de f endants, the
defendant s M ICHAEL T.
12
CIAVARELLA, JR .
- -
July 1 5 ,
134 3 and 1 34 6 .
Act Two
Made to Conahan and C i avare l la In
Connec t i on With Construc tion o f We s tern PA Chi ld
Care Juveni l e Detention
b.
33 .
in violation o f
i n the Midd l e
CONAHAN
and
MARK
A.
CIAVARELLA, JR.
- --
--
----
----
---
-- ----------
----
s e l f - enrichment,
On or about July 15 ,
the scheme and art i f ic e to def raud and deprive the c i t i z ens of
Luz e rne County and the Commonwealth of Pennsylvania of t he i r
right t o the hone s t s e rvi c e s o f the def endan t s , the de fendant s
MI CHAEL T . CONAHAN and MARK A .
C IAVARELLA ,
JR .
knowingly
LLC ,
in vio lat i on o f Tit l e 18, Uni ted States Code, 2, 134 3 and
134 6 .
c.
With
35 .
Ac t Three
of
Made to Conahan and C i avare l la I n Connec t i on
o f PA Chi ld Care Juveni l e De tent ion
JR.
dev i s e a material scheme and art i f ice to de f raud and deprive the
Judi c iary o f the Commonwealth of Pennsylvania and the c i t i z ens of
the Commonweal th o f Pennsylvania o f their righ t s to the hone s t
serv i c e s o f MI CHAEL T .
b i as ,
s e l f - enrichment,
CIAVARELLA ,
the
JR .
Act Four -
d.
Ciavarel la On
37 .
T.
acts ,
CIAVARELLA ,
JR. ,
i.
On o r about January 2 0 ,
3 8.
of Pennsylvania,
and MARK A .
and e l s ewhere ,
CIAVARELLA ,
wi l f u l l y a f f ect,
JR .
2 004 ,
did knowingly ,
CONAHAN
]_;_ tl].a_t i s ,
__
A.
CIAVARELLA, JR .
two
19 5 1 .
ii .
39 .
On or about January 2 0,
Pennsylvania ,
and MARK A .
is ,
name l y ,
C P:t'f <;!.nd K
and e l sewhere ,
C I AVARELLA,
JR .
in the Midd l e D i s tr i ct of
CONAHAN
anothe r ,
2 004 ,
that
to wi t ,
two
T.
4 7 0 1 (a) ( 3 ) .
e.
Act Five
C i avar e l l a Betwe en
40 .
acts ,
Pa.C . S .
in
CIAVARELLA ,
JR . ,
41.
February 2 4 ,
e l s ewhe re ,
2004 ,
JR .
and o n or about
t he de f endants MI CHAEL T .
CIAVARELLA ,
2004
did knowingl y ,
and at tempt to a f f e ct ,
Un i t e d S t a t e s Code ,
name l y ,
as t hose terms
1 95 1 ;
t hat i s ,
CIAVARELLA ,
Holdings ,
Inc .
defendant s o r t he i r o f f ice ,
co lor of o f f icial r i ght ,
not due t he
in v i o lat i on o f Ti t l e 1 8 ,
19 51 .
16
the
JR .
$2 0 0 , 0 0 0 ,
Code ,
and
under
Uni t ed S t at e s
ii .
42.
as
T.
f.
Ac t S ix C i avarel la on Or About
43 .
acts, any one o f whi ch alone cons t i tutes Racke t e e ring Ac t S ix.
i.
44 .
CIAVARELLA ,
JR.
did knowingly ,
Code,
A.
1951 ;
CIAVARELLA,
that i s ,
JR .
name ly,
two
Inc .
1951 .
ii .
45 .
Pennsylvania,
and MARK A .
i s,
and e l s ewhere ,
CIAVARELLA ,
JR.
CONAHAN
another,
T.
that
to wit,
two
cons iderat ion for viol at ions of known legal dut i e s of the
de fendant s as pub l i c s e rvant s ,
in viol at i on of T i t l e 18, Pa . C . S.
4701 (a) ( 3 ) .
g.
4 6.
T.
Ac t S even
and Ciavare l l a on
CIAVARELLA,
JR. ,
Paid to Conahan
acts, any one o f which alone cons t i tut e s Racke t e e ring Ac t Seven.
i.
On or about July 1 2, 2 0 0 4 ,
47 .
Pennsylvania,
and MARK A .
and e l sewhere,
CIAVARELLA,
w i l ful ly a f f e c t ,
JR .
in the Middle D i s t r i c t of
and attempt to af f e c t,
CONAHAN
1 951 ;
CIAVARELLA,
that is,
JR .
the
Inc .
color o f of f ic ia l right,
a wire
not due
in v i o l a t ion of T i t l e 1 8 ,
unde r
1 951 .
ii .
48.
On o r about July 1 2 ,
Pennsylvania,
and MARK A .
is,
name ly,
de f endants o r the ir o f f ic e ,
Code,
t rans f e r of $ 1 2 0 , 0 0 0 ,
o f Vis i on Holdings,
and e l s ewhere,
CIAVARELLA,
JR.
CONAHAN
that
t rans f e r of $1 2 0 , 0 0 0 ,
in the Middle D i s t r i c t of
another,
2004 ,
monetary bene f i t s,
to wi t ,
a wire
Inc .
as
in violat ion of T i t l e 1 8,
4 70 1 ( a ) ( 3 ) .
19
Pa . C. S .
T.
h.
Ac t
C i avare l l a on
4 9.
SO.
20 0 4 ,
in the M i ddle
CIAVARELLA, JR .
did knowingly,
int e rs t a t e
the
movement
of
artic l e s
and
commodit ie s
CIAVARELLA, JR .
51 .
On or about S ep temb e r 23 ,
CIAVARELLA, JR.
CONAHAN
Inc .
T.
i.
Ac t Nine
C i avare l l a on
52 .
53 .
On or about Augu s t 1 6 ,
20 0 6, in the M i ddle D i s t r i c t
CONAHAN
A. CIAVARELLA, JR .
in the amount of $ 42,0 0 0, whi ch was trans f erred f rom PART I C I PANT
#1,
21
ii .
54.
Pennsylvania ,
and'MARK A .
j.
55 .
acts, any one o f which alone c ons t i tute s Rack e t e e ring Ac t Ten .
i.
56.
CIAVARELLA, JR.
did knowingly ,
CONAHAN
CIAVARELLA, JR .
consent,
unde r c o l o r o f o f f i c i a l right,
United S t at e s Code,
1951 .
57 .
On or about November 1,
and MARK A .
and e l s ewhere,
CIAVARELLA,
JR .
in the Middle D i s t r i c t of
that
2006 ,
another,
#1,
ii .
Pennsylvania,
is,
monetary bene f i t s ,
to wit,
cash
in violat i on of T i t l e 18,
Pa . C . S .
4 701 ( a} ( 3 ) .
T.
58.
ac t s ,
k.
CIAVARELLA,
JR . ,
59 .
On or about Novembe r 2 0 ,
of Pennsylvania,
and MARK A .
and e l s ewhere,
CIAVARELLA,
wi l ful ly a f f e c t,
JR .
2006,
in the Middle D i s tr i c t
did knowingly,
and a t tempt t o a f f e c t,
23
C IAVARELLA, JR .
in t he amount of $50, 0 0 0,
#1,
Uni t e d S tates
6 0.
On or about November 20 ,
200 6 ,
in
CIAVARELLA, JR .
CONAHAN
as cons iderat ion for violat ions o f known l egal dut i e s of the
Pa . C . S .
6 1.
62 .
CIAVARELLA, JR .
did knowingly ,
CONAHAN
C IAVARELLA, JR .
1 951 .
ii .
63 .
on or about December
CIAVARELLA, JR .
CONAHAN
64 .
t he de f endant s MICHAEL T.
C IAVARELLA ,
JR .
did knowingly,
and
combine ,
conspire,
another ,
and toget her with other persons both known and unknown
name ly,
conduc t a f inanc ial t ransac t ion af fec t ing int e r s t ate commerce
which involved the proc eeds of a spe c i f ie d unlawful act ivity ,
knowing that the t ransac t ion was de s igned in whol e and in part to
conceal and disgu i s e the nature,
locat ion ,
source,
ownership and
control of t he proceeds of said spec i f ied unl awful act ivity and
that whi l e c onduc t ing and a t t empt ing t o conduc t s uch f inanc ial
t ransact ion knew that the property involved in the f inanc ial
t ransact ion repre s ented the proceeds o f some f orm of unlawful
ac t ivity,
1956 ( h ) .
Al l in violat ion o f T it l e 18, United S t a t e s Code ,
1962 ( c ) .
26
2 and
Count 2
1 8 u.s.c. 1 9 6 2 ( d)
( Racketeering Conspiracy)
THE GRAND
JURY
FURTHER CHARGES :
65.
in the
the de fendant s ,
MARK
CONAHAN and
MARK
27
28
1962 ( d) .
Count s 3 - 6
1 8 U . S. C . 134 3, 134 6 and 2 )
( Hone st S e rvic e s Wire Fraud )
THE GRAND JURY FURTHER CHARGES :
6 8.
and
the de f endant s,
MICHAEL T . CONAHAN and
MARK A. CIAVARELLA, JR. ,
each aiding and abe_t t ing t he o ther and each aided and abe tted by
the other and by other persons known and unknown,
devis ed and
CIAVARELLA,
JR .
concealment,
int e re s t .
29
f avorit ism,
b ia s ,
and conf l ic t o f
defendants MI CHAEL T .
the
CIAVARELLA ,
JR .
were
CIAVARELLA ,
JR .
The defendants
owed a f i duc iary
to refrain f rom
to recuse
di rect
or indirec t .
71.
Part o f the f i duc iary duty owed by the def endants aros e
from constitutional
law ,
inc luding ,
Arti c l e 5 ,
17 (b)
and 17 ( c )
30
Ple as .
73.
t he de f endant s
(1)
and ,
(2)
knowing l y so liciting ,
extorting and
accepting
JR .
31
JR . ,
for Luz e rne County in mat ters in which they had d i s c re t ionary
dec i s ion - making authori ty,
wri t ten,
to the extent that the de f endant s did not di s c lose the i r conf l i c t
-
..
which
JR . ,
32
of thi s action was to c lose the Luzerne County youth det ention
center .
CIAVARELLA, JR .
33
Probation Officers did no t rec ommend det e ntion and even when
de tention wa s unreas onabl e and unwarrant ed under the
circumstanc e s .
JR.,
and othe r s
offende rs.
de tention.
the defendant
of t he de f endants MI CHAEL T.
CJAVARELI.
as we l l as othe r
other ac tions ,
CIAVARELLA ,
JR .
and
financ ial relations hip that exis t e d between the defendant s and
PARTICI PANT # 1 , PART ICI PANT # 2 ,
Child Care ,
78 .
I t was
34
CIAVARELLA ,
JR .
impart ial ity and integrity in the exe r c i s e o f the ir dis c ret ionary
actions on behal f of the Court of Common P l e a s for Luz erne County
by f a i l ing to recuse t hems e lve s f rom a c t ing in matters in which
they had a mate r i a l conf l i c t of int e re s t and in f a i l ing to
di s c lo s e to part i e s appearing before the court and to the
Admini s t rat ive O f f i c e of the Pennsylvania Cour t s the i r conf l i c t
of interest and the i r f inanc ial re lat i onship w i t h PARTI C I PANT #1,
PARTICIPANT #2, PA Chi l d Care and We s te rn PA Child Care,
whi ch
we re material mat t e r s .
79 .
CIAVARELLA,
JR .
adop ted
CIAVARELLA,
JR .
CIAVARELLA,
JR .
took the s e
act ions without di s c lo s ing to the part i e s b e f ore the court and t o
the Admini s trat ive O f f i c e o f the Cour t s his conf l i c t o f intere s t
35
and the f inanc i a l relat ionship that exi s te d between the de fendant
MARK A .
CIAVARELLA,
JR.
PARTI C I PANT #2 ,
PA
mat ters.
80.
JR .
Common Pleas ,
int ere st and f i nanc ial relat i onship with PARTI C I PANT #1 ,
PARTI C I PANT #2 ,
knowing
tha t these were mat erial matt e r s that should have been d i s c losed
to part ies appearing be fore the court,
extorted and
For instance,
mot ion to s eal the record and for inj unc t ive re l i e f in a c iv i l
cas e re lated to PA Chi ld Care .
36
CIAVARELLA ,
in the
the de f endant s
JR . ,
abet t ing the other and each aided and abe t t ed by the othe r and by
other persons known and unknown,
JR . ,
MI CHAEL
T.
CONAHAN
and MARK A .
the f o l J_ qwing
Count
3
July 12,
S eptembe r 23,
July 1 5 ,
20 0 4
20 04
20 0 5
37
Count
February 3,
2006
1 34 6 .
38
2,
1 34 3 and
Counts 7 - 10
1 8 U . S . C. 134 1 , 134 6 and 2 )
( Hone s t Serv i c e s Mai l F raud )
2001,
and
the de f endant ,
MI CHAEL T .
CONAHAN,
t he c i t i z ens of the
se l f - de a l ing,
f avor i t i sm,
bias,
se l f -
CONAHAN,
39
in the
B oard
of
Penn s y lvani a
i n Harri sburg ,
M i dd l e
D i s tr i c t
of
of
Date
Apri l ,
2 0 04
Material ly f al s e annual
statement o f f inanc ial
interes t s s ubm i tted t o the
Admini s t rative O f f ice of the
Pennsylvani a Courts
March ,
2005
Materia l ly f al s e annual
s tatement of f i nanc ial
intere s t s submit ted t o the
Admini s t rat ive O f f i c e of the
Pennsylvani a Courts
March ,
2006
Materi a l ly f al s e annual
s tatement of f i nanc ial
intere s t s s ubmi t ted t o the
Admini s trat ive O f f ice of the
Pennsylvani a Court s
40
Count
10
Apr i l ,
Mat e r i a l ly f a l s e annual
statement o f f inanc ial
intere s t s subm i t t e d to the
Admin i s trat ive Of f ice of the
Pennsylvani a Courts
20 0 7
In vio lat i on o f T i t l e 1 8 ,
United S t a t e s Code,
1 34 6 .
41
2,
1 34 1 and
Counts 11-14
1 8 U . S . C . 134 1 , 134 6 and 2)
( Hone s t Servic e s Mail Fraud )
THE GRAND JURY FURTHER CHARGE S :
86 .
i f f u l l y s et forth herei n .
2001,
and
the de f endant ,
MARK A .
C IAVARELLA ,
JR. ,
JR. ,
Luzerne Count y ,
s e l f -enrichment ,
s e l f -dealing ,
favoritism ,
bias ,
intere s t .
EXECUTION OF THE S CHEME
88 .
C IAVARELLA ,
JR . ,
in the
de s c r ibed mat e rial scheme and art i f i ce to de f raud and deprive the
c i t i z ens of Luz e rne County,
C IAVARELLA, JR . ,
Eastern D i s t r i c t of
carri e r
in Harri sburg,
to
the
Judi c i al
Conduc t
Board o f
P e nnsylvan i a
the f o l lowing
t J:l,ings :
Count
11
Apr i l ,
2 004
12
March,
2005
13
Apr i l , 2 0 0 6
43
Count
14
March,
200 7
I n violat ion o f T i t le 1 8 ,
Mate r i a l l y f a l s e annual
s t atement o f f inanc ial
intere s t s subm i t ted to the
Admini s trat ive O f f ice of the
Pennsylvani a Cour t s
Uni ted S t a t e s Code ,
1 34 6 .
44
2,
1 34 1 and
Counts 1 5 - 24
1 8 u . s . c . 666 (a) ( 1 ) (B)
( Corrupt Rec e ip t of Bribe /Reward for O f f i c i a l Ac tion
Conce rning P rograms Rece iving Federal Funds )
THE GRAND JURY FURTHER CHARGES :
89 .
i nc luding ,
Off ice
of
the
Pennsylvani a
Court s ,
the
government
91 .
the Court o f Common P l eas for Luz erne County each received
f ederal as s i s tance in exc e s s of $ 1 0 , 0 0 0 dur ing each one - year
period beginning on January 1,
December 31,
20 0 7 .
92.
January 1,
2 0 0 7,
e l sewhere,
the de f endants,
2 0 0 2 and on or about
MI CHAEL T.
CIAVARELLA ,
and
JR . ,
each aiding and abe t t ing the other and each aided and abet ted by
the other and by othe r persons known and unknown ,
45
intent i onal ly and corrup t ly sol i c i t and demand for the i r own
bene f i t ,
f rom another
person ,
$5 , 000 ,
with the bus ine s s o f the government ent i t i e s they repre s ented as
j udges of the Court of Common P l eas for Luz erne County .
part icular ,
In
c onstruction and
PA
Chi l d
Care
and We s t ern
PA Chi l d
Care.
which occurred on
a sprt_e _<:;:aunt of
this I ndictment :
Amount and Type o f
Count
Date
15
2 - 15 - 2 0 0 4 2 - 24 - 2 0 04
Vi s ion
Holdings ,
Inc .
che cks )
16
4 -3 0 - 2004
Vi s ion
Holding s ,
Inc .
checks )
17
7 - 12 - 2 0 0 4
Vis ion
Holdings ,
Inc .
$ 1 2 0 , 0 0 0 W i re Trans fer
9 - 23 - 2 0 04
Vis ion
Ho ldings ,
Inc .
$ 1 0 0 , 0 0 0 W i r e Trans fer
18
From
$200 , 000
$1 0 0 , 0 0 0
46
( total o f three
( total o f two
Count
Date
19
7 - 1 5 - 20 0 5
Meri c l e
Construc t ion ,
Inc .
$ 1 , 0 0 0 , 0 0 0 W i re Transfer
20
2 - 3 - 20 0 6
Mer i c l e
Construct i on ,
Inc .
21
8- 16 - 0 6
Robe rt Powe l l
$ 4 2 , 0 0 0 Cash
22
11-1-06
Robert Powe l l
$ 20 , 0 0 0 Cash
23
1 1 - 20 - 0 6
Robert Powe l l
$ 5 0 , 0 0 0 Cash
24
12- 1 8- 0 6
Robert Powe l l
$ 31 , 5 0 0 Cash
In v i o l at ion of T i t le 1 8 ,
47
2 and
Count 2 5
18 u . s . c . 1956 (h)
( Money Laundering Consp i racy )
THE GRAND JURY FURTHER CHARGES :
The a l l egat ions contained in Count s 1 through 2 4 of
93 .
94 .
2 0 01,
T.
CONAHAN
i n the Middle D i s t r i c t
the de f endants,
and MARK A .
CIAVARELLA ,
JR . ,
did
onspire,
conf ederate and agree with one another and with other pers ons
known and unknown to the grand j ury to commi t c e rtain o f fens es
agains t the United S ta t e s as f o l lows :
a.
b.
and,
u.s .c.
19 57 .
In violat ion of T i t l e 1 8 ,
49
1956 (h) .
Count 2 6
1956 (a) (1 ) (B) ( i )
18 U. S . C .
( Money Launde ring )
THE GRAND JURY FURTHER CHARGES :
95 .
as
On or about January 2 0 ,
Pennsylvania ,
and e l s ewhere ,
MI CHAEL T .
2004 ,
in the Middle D i s t r i c t of
the de f endant s ,
C IAVARELLA ,
JR . ,
each ai ding and ab e t t i ng the other and each a i ded and abetted by
the o ther and by other pe rsons known and unknown ,
and in tent iona l ly conduc t ,
did knowing ly
a.
b.
LLC ,
that i s ,
in viol at ion of
extortion
18 u . s . c .
1951 ,
locat ion ,
s ourc e ,
owne rship
50
that i s ,
In violat i on o f T i t l e 1 8 ,
1956 (a) ( 1 ) (B) ( i )
and 2 .
51
Count 2 7
1956 ( a) ( 1 ) (B) ( i )
18 U . S . C .
( Money Laundering )
THE GRAND JURY FURTHER CHARGES :
97 .
as
On or about February 2 4 ,
2 0 04 ,
the defendant s ,
CIAVARELLA ,
JR . ,
each aiding and abe t t i ng the o ther and e ach a i ded and abet ted by
the o ther and by other pers ons known and unknown ,
conduc t ,
did knowingly
to wit ,
the
2.
3.
that i s ,
extort ion
in violation o f 1 8 U . S . C .
1951 ,
knowing that the t rans act ion was de s igned in who l e and in part to
52
In vio lat i on o f T i t l e 1 8 ,
1 9 56 ( a ) ( 1 ) ( B ) ( i )
and 2.
53
Count 2 8
1 9 5 6 ( a) ( 1 ) ( B ) ( i )
18 U. S . C.
( Money Laundering )
THE GRAND JURY FURTHER CHARGES :
99 .
though ful ly set f orth here i n , e ach o f the a l legat ions contained
in Count s 1 through 2 7 of thi s Indic tment .
100 .
On or about May 3 ,
the de f endants ,
did knowingly
to wit , the
check s :
1.
2.
spe c i f ied unlawful a c t ivity and that whi l e condu c t ing and
attempt ing t o c ondu c t such f inanc ial t rans action knew that the
prop erty involved in the f inanc ial transact ion,
the amount o f $100 , 000 ,
tha t i s ,
In violat ion of T i t l e 1 8 ,
1 9 5 6 ( a ) ( 1) ( B ) ( i )
funds in
and 2.
55
Count 29
1 956 ( a ) ( 1 ) ( B ) ( i )
18 u . s . c .
( Money Launder ing )
THE GRAND JURY FURTHER CHARGES :
101 .
though fully set f orth here in, each o f the al l e gat ions contained
in Count s 1 through 28 of this Ind i c tment .
102 .
CIAVARELLA, JR . ,
each aiding and abe t t i ng the other and each aided and abet ted by
the other and by othe r persons known and unknown, did knowingly
conduc t, attempt to conduct and did cause to be c onducted a
f inanc ial t rans act ion a f f e c t ing int e r s tate commerce, to wit, a
wire t rans f e r in the amount of $120,000 f rom an account o f Vis ion
Holdings, Inc . , to an account of the Pinna c l e Group of Jupiter,
LLC ,
in violat ion of 18 U . S . C .
Pa . C . S .
property involved in the f inanc ial t rans act ion, that i s , funds in
the amount of $ 1 20,000, repre s ented the proceeds of some form of
unlawful ac t ivity .
In vio lation o f T i t le 18, United S t a t e s Code,
19 5 6 ( a ) ( 1 ) ( B ) ( i )
and 2 .
57
Count 3 0
18
1956 (a) ( 1 ) ( B ) ( i )
( Money Laundering )
u.s. c .
On o r about September 2 3 , 2 0 0 4 ,
to wi t , a
1 3 4 3 and 1 3 4 6 ,
in vio lation of 1 8 U . S . C .
Pa . C . S .
in v iolat ion of 1 8
in v i o l ation of 1 8
spec i f ied unl awful a c t ivity and that whi l e conduc t ing and
attempt ing t o c onduct such f inanc ial transact ion knew that the
58
that is , funds in
unlawf ul activity.
I n vio lation of Tit l e 18 ,
19 56 ( a ) ( 1 ) ( B ) ( i )
and 2 .
59
Count s 3 1 - 3 8
1951
18 u. s . c .
( Extor t i on Unde r Co lor o f O f f i c i a l Right )
THE GRAND JURY FURTHER CHARGE S :
The Grand Jury hereby incorporat e s by re ferenc e ,
105 .
as
106 .
2002 ,
Pennsylvania ,
and e l s ewhere ,
MI CHAEL T .
20 07 ,
the de f endant s ,
CIAVARELLA ,
JR . ,
each aiding and abe t t ing the other and each a i ded and abe t ted by
the other and by other pers ons known and unknown ,
intent i ona l ly and wi l l fu l ly obs t ruct ,
att emp t to obstruc t ,
did knowing ly ,
de lay and a f f e c t ,
de l ay and a f f e c t ,
solic i t ing ,
demanding ,
and
as those
1 9 5 1 ( b ) ( 2 ) and 1 9 5 1 ( b ) ( 3 ) ,
that
that i s ,
payment s in ca s h ,
of o f f i c i a l r i ght .
Each o f the f o l l owing payment s ,
the date s indi cated ,
Indic tment :
60
Count
Date
V i s ion
Hol dings, Inc.
$200,000
checks )
( total o f three
31
4 - 3 0 - 2004
V i s ion
Ho l dings, Inc .
$100,000
checks )
( total of two
32
33
7 - 1 2 - 2004
Vi s ion
Hol dings, Inc .
34
9 - 23 - 2004
V i s ion
Hol dings ,
35
8 - 1 6 - 06
Robert Powe l l
$4 2,000 Cash
36
11- 1-06
Robert Powe l l
$20,000 Cash
37
1 1 - 20 - 06
Robert Powe l l
$50,000 Cash
38
1 2 - 18 - 06
Robert Powe l l
$ 3 1,5 00 Cash
Inc .
61
Count 39
18 u . s . c. 37 1
( Conspi racy to Defraud the Unit ed Stat e s )
THE GRAND JURY FURTHER CHARGES :
The Grand Jury hereby incorporat e s by re ference,
10 7 .
as
and
the qe f endant s ,
MICHAEL T . CONAHAN and
MARK A . CIAVARELLA, JR . ,
did knowingly,
confederate,
conspire ,
and together
with other pers ons known and unknown to the Grand Jury,
de fraud the United S t a t e s by impeding,
impairing,
to
de f eat ing the l awful Government funct ions of the Inte rnal Revenue
Serv i c e of the Treasury Department in the as c ertainment,
computat ion,
to wi t ,
income taxe s .
OVERT ACTS
10 9 .
and t o e f f e c t the
among others,
were
62
2.
On or about January 2 8 ,
2 0 0 3,
On or about January 2 8 ,
20 03,
to a bank
C IAVARELLA,
JR . ;
4 .
On or about Apri l 3 0 ,
20 0 3,
Inc .
20 0 3,
JR . ;
20 0 3,
to a bank account
C IAVARELLA,
JR . ;
On o r about Augu s t 2 0 ,
20 0 3,
20 0 3 ,
CONAHAN ;
63
de f endant MICHAEL T .
9.
CONAHAN ;
20 0 4 ,
"Rent Prepay" ;
10 .
11 .
$4 7 , 0 0 0
to
be
depo s i t e d
into a bank
20 0 4 ,
a c c ount
of Jupi ter, LLC and f a l s ely charac teri z ed the depo s i t in the
records of the P inna c l e Group o f Jup i te r, LLC " S l ip Renta l F e e s " ;
12 .
On or about February 24 ,
20 0 4 ,
"Re s erving
lease" ;
13.
On or about February 24 ,
20 0 4 ,
Mar , Apr" ;
14 .
On or about May 3 ,
20 0 4 ,
64
Jup i t e r ,
of the Pinna c l e Group of Jup i t er, LLC as " Lease Expenses Apr i l
May June " ;
15 .
On or about May 3,
2004 ,
LLC as
June " ;
16 .
On or about July 12 ,
LLC ;
LLC ;
LLC ;
On or about February 3,
LLC ;
On o r about November 20 ,
65
23 .
On or about December 18 1
20 0 6 1
As furthe r overt ac t s 1
66
371.
each
Each
Count 4 0
26 u . s . c . 7206 ( 1 )
( Subs c ribing and F i l ing a Materia l ly Fal se Tax Re turn )
THE GRAND JURY FURTHER CHARGES :
1 10 .
as
20 0 4 ,
t he def endant ,
MI CHAEL T .
a re sident o f Mountaintop,
in the Middle Di s tr i c t of
CONAHAN,
Pennsylvania ,
did
subscr ibed,
an IRS Form 1 0 4 0 ,
dec l arat ion that it was made under the penal t i e s of perj ury,
and
whereas,
as he then
income for the year 2 0 0 3 was materially more than that amount .
I n vio lat i on o f T i t le 2 6 ,
67
720 6 ( 1 ) .
Count 4 1
2 6 u. s . c. 7 2 0 6 ( 1 )
( Subs c ribing and F i l ing a Materially Fal s e Tax Re turn )
THE GRAND
112 .
JURY
FURTHER CHARGES :
On o r about Apri l 1 5 ,
2005 ,
Luzerne County ,
Pennsylvani a , did
wi l l fully make and subs cribe , and did cause to be made and
subscribe d , an IRS Form 1 0 4 0 , which was veri f i e d by a written
de clarat ion that i t was made under the pena l t i e s of perj ury , and
which he did no t be l i eve t o be t rue and c o rre c t as to every
material mat ter .
68
7206 ( 1) .
Count 4 2
26 u. s .c.
7206 ( 1)
THE GRAND
JURY
1 14 .
FURTHER CHARGES :
as
though ful l y s e t f orth here i n , each o f the a l l e gat ions conta ined
in Count s 1 through 4 1 of this Indic tment .
115 .
On or about Apr i l 1 5 , 2 0 0 6 ,
in the M i ddle D i s t r i c t of
did
wi l l ful ly make and sub s cribe , and did c ause to be made and
subscribe d ,
dec larat ion that i t was made under the penal t i e s of pertury , and
whi ch he did not b e l ieve to be true and correc t as to every
material matter .
69
7206 ( 1) .
Count 4 3
26 u.s.c. 7 2 0 6 ( 1 )
( Subs cribing and F i l ing a Mat erially Fal se Tax Return )
THE GRAND JURY FURTHER CHARGES :
116 .
though ful l y set forth here in , each of the a l l egat i ons contained
in Counts 1 through 4 2 of thi s Indic tment .
117 .
On or about May 2 1 , 2 0 0 7 ,
70
7206 ( 1 ) .
Count 4 4
2 6 u . s. c . 7 2 0 6 ( 1 )
( Subs cribing and F i l i ng a Mat erially Fal s e Tax Re turn )
THE GRAND JURY FURTHER CHARGES :
1 18 .
as
the de f endant ,
MARK A.
a re sident o f Mountaintop,
CIAVARELLA,
JR . ,
Pennsylvania,
did
dec l arat ion that it was made under the pena l t i e s o f perj ury,
and
whe rea s 1
as he then
income for the year 2 0 0 3 was materially more t han that amount.
In violat ion of T i t l e 2 6 1
71
7206 (1) .
Count 4 5
2 6 u . s . c . 7 20 6 ( 1 )
( Subs c ribing and F i l ing a Materially Fal s e Tax Return)
THE GRAND JURY FURTHER CHARGES :
120 .
though fully s e t f orth here in, each of the a l l egat ions contained
in Counts 1 through 4 4 of thi s Indic tment .
121 .
the de f endant ,
CIAVARELLA ,
JR. ,
sub s cribed ,
de c laration that it was made under the penal t i e s of perj ury, and
whi ch he did not b e l ieve to be true and c orrec t as t o every
material matter.
72
7 2 06 ( 1 ) .
Count 4 6
26 u . s . c . 720 6 ( 1 )
( Subsc ribing and F i l ing a Mat e r i a l ly Fa l s e Tax Return )
THE GRAND JURY FURTHER CHARGES :
122 .
as
On o r about Apr i l 1 5 ,
20 0 6,
in the Midd l e D i s t r i c t of
C IAVARELLA,
JR . ,
Pennsylvania,
did
subscribed,
an IRS Form 1 0 4 0 ,
dec l arat ion tha t it was made under the pena l t i e s of perj ury,
and
as he then
73
7 20 6 ( 1 ) .
Count 4 7
26 u . s . c . 720 6 ( 1 )
( Subs c ribing and F i l ing a Mat e rial ly Fal s e Tax Return )
THE GRAND JURY FURTHER CHARGES :
1 24 .
CIAVARELLA ,
JR .
Pennsylvania ,
did
dec l arat ion that it was made under the pena l t i e s o f perj ury ,
and
as he then
74
7 20 6 ( 1 ) .
though ful ly set f orth here in, each of the a l legat ions contained
in Count s 1 through 4 7 of thi s Ind i c tment for the purp o s e o f
a l leging forf e i ture t o the Uni ted States o f Ame r i c a pursuant to
the prov i s i ons of T i t l e 18, Uni ted S tates Code, 19 6 3, and T i t l e
28, United S t a t e s Code, S e c t ion 24 6 1 ( c ) .
Pursuant to Rul e 32 . 2,
CIAVARELLA, JR .
CONAHAN and
b.
c.
and
( a ) ( 3 ) , inc lude s, but i s not l imi ted to, the fol lowing
assets :
Uni ted S ta t e s currency in the amount of at least
$2,819,50 0 and all interes t and proceeds t raceable
thereto, in that such sum in the aggregate is property
whi ch was invo lved in the a f ores tated o f f ens es or i s
t raceab l e to such property, i n violat i on o f T i t le 18,
Uni t ed S ta t e s Code , 19 6 2 .
FRAUD AND MONEY LAUNDERING FORFEITURE
128 .
Pursuant
76
CIAVARELLA,
JR .
sha l l for f e i t to
involved in
a.
Any p roperty cons t i tut ing or der ived f rom any proc eeds
whi c h the de f endants MICHAEL T . CONAHAN and MARK A .
CIAVARELLA, JR . obtained, dire c t ly or indir e c t ly, f rom
w i re f raud, mai l fraud and money laundering v i olat ions ;
b.
c.
13 0 .
Indi c tment,
as a re sult of any
b.
c.
d.
e.
or depos i t e d with a
or
pursuant t o T i t l e 18,
9 82 ( b ) ( 1 )
and 28 U . S . C .
9 8 2 and
DENNIS C .
UNITED
S ATTORNEY
78