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UNITED STATES mSTRTCT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION
) ) ) ) ) )
Criminal No.1
iCR0609
) VIOLATIONS:
1) RAUL BORCUTA,
2) ZACHERY TAYLOR,
3) JARRED CLOSE,
Defendants.
) ) ) ) ) )
(b)(l)(A)-(C)
(bribery)
INDICTMENT
The Grand Jury charges that:
BACKGROUND
1. For the purposes ofthis indictment, the "relevant period" is that period from in or
nations undertook an effort to develop the infrastructure and economy ofthc Islamic Republic of
Afghanistan (hereinafter "Afghanistan"). The development projects that the United States
undertook in Afghanistan included building transportation networks, improving Afghanistan's
energy infrastructure, and constructing healthcare and educational facilities. To complete these
development projects, the United States sent a Provincial Reconstruction Team (PRT) to Farah,
Afghanistan. The PRT was composed of individuals in the
United States Government agencies. The PRT was funded with money from the United States
Treasury and it had autho;ity to enter into contracts on behalf of
3. The PRT issued contracts that were fundcd with money from the Commander's
Emergcney Response Program (CERP). The purpose of
indigenous population. The CERP was funded with appropriations from the United States
Government. In November of 2003, Congress passed the first appropriation for CERP as part of
Public Law 108-106, the "Emergency Supplemental Appropriations Actfor Defense and For the
Reconstruction of Iraq and Afghanistan, 2004." Since 2004, Congress has made additional
appropriations of CRRP funds in Department of Defense annual and supplemental
appropriations. Disbursements of CERP funds were typically made through wirc transfers made
from accounts in Afghanistan held by the United States Governmcnt to accounts held by the
con~raetor.
4. Defendant JARRED CLOSE was a Staff Sergeant in thc United States Army
Active Guard Reservc Program. At all times material herein, JARRED CLOSE was an o1cer,
employee, or person acting for or on behalf of
Active Guard Reserve Program. At all times material herein, ZACHERY TAYLOR was an
ofIcer, employee, or person acting tor or on behalf ofthe United States Department of Defense.
6. CH, a person known to the grandjury, was an individual residing in the Northern
District of Ilinois.
Chicago, Illinois that did business as a lending institution throughout the United States, including
thc Northern District of
Ilinois. Money deposited with Harris Bank was insured by the Federal
and assigncd to the PRT in Farah. TAYLOR worked as a paying agent and CLOSE was a project
officer. Their dutics incILded negotiating and executing on behalf of the United States
Government contracts funded with CERP lunds. TAYLOR's and CLOSE's rcsponsibilities
included identifying contractors to pertorii work for the PRT, defining the scope of
work that
was to be performed, and authorizing payment requests submitted by firms and individuals that
were selected to pertorm contracts.
10. Defendant RAUL BORCUT A was an individual who maintained a residence in
the Northern District of
in Afghanistan, where he had been employed by a defense contractor that supported the Unitcd
States's military operations in that country.
11. On or about February 10,2010, CLOSE issued a Statement of
Work which
Number 20100202171045 (the "Contract"), which incorporated the Statement otWork described
in paragraph 11 herein and set the contract value at $200,000 (made payable in the equivalent
amount of
which sought a 100% lip front payment (i.c., a payment before contractual performance) of
$200,000 on the contract.
14. On or about February 19,2010, TAYLOR and CLOSE authorized payment of
invoice described in paragraph 13 even though BORCUTA had not delivered the vehicles
describcd in the Contract.
15. On or about February 28, 2010, the U.S. Army Finance Offce in Kandahar,
Afghanistan paid the invoice described in paragraph 13 herein by sending a wire transfer in the
amount of9,476,000 Afghanis, the cunency of
to $197,217.04), from an account held by the U.S. Treasury at Afghanistan International Dank to
Harris Bank in Naperville, Illinois, in the Northern District of Ilinois. The wire transfer was sent
from Afghanistan to the State of
16. At no time did BORCUTA deliver the vehicles described in thc Contract.
COUNT ONE
18 U.S.c. 1349
(Cunspiracy)
17. Paragraphs 1 tlnough 16 of this Indictment are re-alleged and incorporated herein
as if sct forth in fulL
18. Bcginning at least as early as in or about October 2009, and continuing through at
least in or about October 2010, in the Northern District of
pretenses, representations and promises, and material omissions, and for the purpose of executing the scheme and artifice, using wire communications in interstate commerce, in violation of Titlc
18, United States Code, Section 1343.
b. Mail Fraud, that is, to devise and intend to dcvisc a semc and artifice to
pretenses, representations and promises, and material omissions, and for the purpose of cxecuting
the scheme and aitifiee, using the United States Postal Service and commercial interstate carriers
to send and deliver mail matter, in violation of l' it
a. influence TAYLOR and CLOSE to award him the Contract by paying hoth
befote BORCl.T A performed his contractual obligations by paying both TAYLOR and CLOSE
$10,000 each; and
c. steal money from the United States by collccting a $200,000 payment
the conspiracy include, but arc not limited to, the following:
the Islamic
Republic of Afghanistan).
d. TAYLOR and CLOSE acecpted BORCUT A's invoice and authorized the
Kandahar Finance Office of the United States Army to make a wire transfer, in international and
interstatc commerce, in the amount of9,476,000 Afghanis (the cquivalent of$197,2l7.04) from
an account held by the United States Treasury at Afghanistan International Bank to en account at
Harris Bank in Illinois held by BORCUTA and CH.
e. BORCUT A paid TAYLOR and CLOSE $10,000 each to influence them to
make to BORCUTA a $200,000 paymel't under CERP Contract Number 20100202171 045 cvcn
to purchase from a Harris Bank branch in Naperville, l1inois, in the Northern District of l1inois,
two cashier's checks each for $10,000. One of
to TA YLOR and the other $10,000 cashier's check was made payable to CLOSE. CH sent the
checks to TA YLOR and CLOSE via United States mail from and within the Northern District of
Ilinois. CH sent the checks to TAYLOR and CLOSE at the direction of BORCUT A and
transmitted the checks in two separate mailings.
22. Beginning at least as early as in or about October 2009, and continuing through at
leas! iii or about Octobcr 2010, in the Northern District of Ilinois and elsewhere,
fraudulent pretenses, representations and promises and for the purposc of executing the scheme
to dcfraud, and attempting to do so, knowingly caused to be transmitted, and aided and abetted
the transmission of, hy means of
n. The object of
a. influence TAYLOR and CLOSE to award him the Contract by paying both
TA YLOR and CLOSE $10,000 each;
b. influence TAYLOR and CLOSE to authorize payment under the Contract beore
BORCUTA performed his contractual obligations by paying both l' AYLOR and CLOSE
". to steal money from the United States by collecting a S200,000 payment undcr the
Contract without performing his contractual obligations.
24. It was part of
the scheme and artifice to defraud that BORCUTA agreed to and did in
fact pay l' AYLOR and CLOSE $10,000 each to award to BORCUT A a PRT contract (CERP
Contract Number 20100202171045) to provide
value of
2010, TAYLOR and CLOSE authorized a wire payment to BORCUTA in the amount of
$200,000 even though BORCUTA had not delivered the two vehicles required by the Contract.
26. On or about Februar 28,2010, in the Northern District of l!inois and elsewhere, for
the purpose of executing the scheme and artifice, and attempting to do so, TAYLOR and CLOSE transmitted and caused to be transmitted by means of wire communications in interstate and
international commerce, a wirc transfer in the amount of $197,217.04, in viclation ofTitlc 18,
United States Code, Sections 1343.
27. At no time did BORCUT A deliver the vehiclcs described under the Contract.
COUNTS THREE THROUGH FOUR 18 U.S.C. 1341 and 2 (Mail Fraud and Aiding and Abetting)
28. Paragraphs 1 through 16, 20 and 23-27 ofthe Indictment are re-alleged and
incorporated herein as if set forth in nill.
29. Beginning at least as early as in or about October 2009, and continuing through at
least in or about October 20 1 0, in the Northern District ofIllinois and elsewhere,
defendants herein, did knowingly and intentionally devise and intend to devise a scheme and
artifice to defraud and for obtaining money and property by means of material false and
fraudulent pretenses, representations and promises and for the purpose of the scheme to defraud,
knowirigly caused to be delivered by the United States mail or by a commercial interstatc carrier
the mail
30. On or about the dates set forth below, in the Northern District of Ilinois and
elsewhere, for the purpose of executing the schemc and artificc, and attempting to do so, the
dcfendants caused CH to place mail
matter, to be sent and delivered by the United States Postal Service, and did knowingly cause
mail matter to be dc1ivered by mail according to the dircction thereon, that is, the payments
identified below, with each mailing constituting a separate violation of Titlc 18, United States
Code, Section 1341.
Count
3
Date
3/9/2010
Description
cashier's check in the amount of$IO,OOO made payable to CLOSE, with the knowledge and approval 01'
A mailing containing a
BORCUTA, for the purpose of influencing CLOSE's oftcial actions and decisions.
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3/9/20 i 0
A mailing containing a
32. Beginning at least as early as in or about October 2009, and continuing through at
least in or about October 2010, in the Noiihern District of Ilinois and elsewhcre,
RA.UL BORCUTA,
defendant herein, directly and indirectly, did corruptly give, offer, and promise something of
value to a public offcial, with intent to influence official acts and to induce such public offcial
to do and omit to do acts in violation of
corruptly gave, offered, and promised the following payments to l' AYLOR and CLOSE in return
for TAYLOR and CLOSE awarding him pRT contract number 20100202171 045 and to pay
BORCUTA 100% of
Count
5
Date
3/9/20 i 0
Description
BORCUTA caused CH to mail to CLOSE a payment of $10,000.
3/9/2010
All in violation of
COUNT
SEVEN
18 U.S.c. 201(b)(2)(A)-(C)
(Bribery)
33. Paragraphs 1 through 16,20,23-27, and 30 ofthe Indictment are re-alleged and
incorporated herein as if set forth in fulL.
34. Beginning at least as early as in or about October 2009, and continuing t'rough at
least in or about October 2010, in the Northern District of
ZACHERY
TAYLOR,
as a public official, directly and indirectly did corruptly demand, seek, receive, accept, and agrcc
to receive and accept things of value
acts, and in rcturn for being induced to do and omit to do acts in violation of a lawful duty; that
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is, TAYLOR corruptly demanded, sought, received, accepted, and agreed to receive and accepted
$10,000 tram BORCUTA in return for awarding BORCUTA a pRT contract (number
20100202171 045) and authorizing payment of iOO% of
COUNT EIGHT
18 IJ.S.c. 201(b)(2)(A)-(C)
(Bribery)
35. Paragrzphs 1 through 16,20,23-27, and 30 of
36. Bcginning at least as early as in or a'Jout October 2009, and continuing tlu'ough at
least in or bout October 2010, in the Northem Oistric\ of
JARRED CLOSE,
as a public olfcial, direcCy and indirectly did cDrmp\ly demand, seek, receive, accept, and agree to receive and accept things of value in return for being influenced in the performance of official
acts, and in return for being induced to do and omit to do acts in violation of a lawlul duty; that
is, CLOSE corruptly demanded, sought, received, accepted, and agreed to receive and accepted
$10,000 from BORCUTA in return for awarding BORCUT A a pRT contract (number
20100202171045) and authorizing payment of 100% ofthc contract value before BORCUTA
performed the Contract.
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COUNT
NINE
18 U.S.c. 641
38. Beginning at least as early as in or about October 2009, and continuing through at least
in or about October 2010, in the Northern District of
RAUL BORCUTA,
did knowingly embezzle, steal, purloin, and convert to his use money and things 01' valuc 01' the
United States and a department and agency of the United States, that is, RAUL BORCUT A
knowingly and intentionally collected $197,217.04 from the United States Department 01' Defense
under the Contract to provide two up-armored vehicles when he then aJid there well knew that he did
not deliver the vehicles and had no intention of delivering the vehicles.
All in violation of
incorporated by reference for the purpose of alleging that certain property is subject to forfeiture
pursuant 10 Title 18, United States Code, Section 981 (a)(l )(C) and Title 28, United States Code,
Section 2461(c).
40. As a result 01' their violations of Title 18, United States Code, Sections 201, 1341,
1343, and 1349, as alleged in the foregoing Indictment,
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defendants herein, shall forfeit to the United States, pursuant to Title 18, United States Code,
Section, 981(a)(l)(C) and Title 28, United States Code, Section 2461(c), any and all right, title
and interest in property, real and personal, which constitutes and is derived trom proceeds
traceable to the charged offenses.
41. The interests of
Code, Section, 981(a)(l)(C) and Title 28, United States Code, Section
the property subject to forfeiture and describcd abovc, as a result of any act
diffculty,
the United States of Americ shll be entitled to forfeiture of substitute property, under the
provisions ofTitlc 21, United States Code, Section 853(p), as incorporated by Title 28, United
All pursuant to Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United
States Code, Section 2461(C).
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DATED: this
day of_.
, 20 i 1.
TRUE
BILL:
Brian R. Young Trial Attorney Criminal Division United States Department of Justice
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