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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

-vs- INDICTMENT

ARNOLD WROBEL a/k/a Jim Palmer Violations:

(Counts 1 - 40),MARTIN RHYS JONES a/k/a Martin Reece Title 18, United States Code,

a/k/a John Allen Sections 1343, 1349, 1956(a)(2)(A) (Counts 1 - 40), 1956(h), 1957(a) and 2

MONICA ROMASZKO a/k/a Monica Wrobel (40 Counts and 3 Forfeiture

(Counts 1 - 40), Allegations)

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), andJAMIE LEE CHURCH a/k/a Charlotte Keys (Count 1)

Case 1:12-cr-00125-EAW-HBS Document 1 Filed 04/17/12 of 34

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 United States. The email address [email protected] was

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

[email protected] 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. ROMASZKO is the sister of

WROBEL. The email address [email protected] was registered to

ROMASZKO.

4. The defendant, GENE CLARK FOLAND (“FOLAND”), was a

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

formerly held various securities licenses in the United States.

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mailto:[email protected]



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

the United States and he resided in California. TATUM was an

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

the United States and he resided in Florida. MARCUS was a

certified public accountant and had an affiliation with Clean Coal

Technology, Inc. and its predecessor entity. He also owned a

corporate entity called Illusion, Inc.

8. The defendant, SAAD SHUAIB (“SHUAIB”), was a citizen of

Kuwait.

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.

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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 so-

called “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

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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. The boiler room obtained shares of restricted stock

issued by 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.

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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. OBJECT OF THE CONSPIRACY

2. 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

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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 BEACCOMPLISHED

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.

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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

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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. The initial telephone calls by the fronters were intended

to obtain 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

names in communicating with investors. WROBEL used the name “Jim

Palmer.” JONES used the names “John Allen” and “Martin Reece.”

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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.

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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.

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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. The defendants directed the investors to websites with

associated email addresses for the so-called “administrative

provider.” The websites for these so-called “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.

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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 ROMASZKO’s 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,

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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

and ROMASZKO communicated regularly, including by email. Those

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. Bank account information

was also shared with FOLAND.

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 SHUAIB’s wife,

before being transferred and delivered to the investors.

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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. In

other cases, no certificates were ever delivered.

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. More than $1,797,000 was wired to the La Caixaaccount of Quick Meds, SL.

b. More than $799,000 was wired to WROBEL, toaccounts at La Caixa, Deutsche Bank, andZuercher Kantonal Bank.

c. More than $543,000 was wired to an account inFlorida belonging to KLEIN.

d. More than $406,000 was wired to JONES, ataccounts maintained at La Caixa, DeutscheBank, and Abbey International, in the ChannelIslands.

e. More than $298,000 was wired to the La Caixaaccount of El Trebol Magico, SL.

f. More than $170,000 was wired to accounts forthe benefit of COLE.

g. More than $80,000 was wired to accounts forthe benefit of CHURCH.

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h. More than $68,000 was wired to accounts forthe benefit of MALIZIO.

i. More than $38,000 was wired to accounts forthe benefit of CLAYTON.

j. A sum was wired to FOLAND’s Charles Schwabaccount.


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.


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 into the Bank of America Breckenridge Account, as

follows:

a. More than $354,000 was wired to El TrebolMagico at La Caixa.

b. $214,000 was wired to an account belonging toKLEIN.

c. $41,000 was wired to the La Caixa account ofSubscription Billing Solutions SL.

d. More than $39,000 was wired to accountsbelonging to WROBEL.

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e. $20,000 was wired to Quick Meds, SL at LaCaixa.

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

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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 DATE WIRE COMMUNICATION

2 08/26/08 $6,290 wire (Victor P.)into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada

3 08/26/08 $4,450 wire (Randy D.)into Breckenridgeaccount #-1929 in the WDNY from Bank of NovaScotia in Canada

4 08/29/08 $10,385 wire (Randolf J.)into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada

5 09/04/08 $11,385 wire (Raymond P.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada in Canada

6 09/05/08 $10,140 wire (Victor B.)into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada



9 09/16/08 $5,900 wire (Victor B.) into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada

10 09/16/08 $41,985 wire (Raymond P.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada

11 09/22/08 $92,480 wire (Randolf J.) Into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada

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12 09/22/08 $99,980 wire (Randolf J.) into Breckenridgeaccount #-1929 in the WDNY from Bank ofMontreal in Canada


14 09/23/08 $10,700 wire (Gerard B.)into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada

15 09/23/08 $7,990 wire (Victor B.) into Breckenridgeaccount #-1929 in the WDNY from TorontoDominion Bank in Canada


17 09/28/08 $6,150 wire (Eldon K.)into Breckenridgeaccount #-1929 in the WDNY from AdvantageCredit Union, Saskatchewan, Canada


19 11/24/08 $6,435 wire (Betty Y.)into Breckenridgeaccount #-1929 in the WDNY from Royal Bank ofCanada in Canada

20 12/03/08 $3,450 wire (Ken J.)into Breckenridge account#-1929 in the WDNY from Bank of Nova Scotia inCanada


22 03/09/09 $7,697 wire (Richard R.) into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England

23 05/01/09 $5,490 wire (Kevan T.) into Breckenridgeaccount #-1929 in the WDNY from England

24 05/12/09 $14,870 wire (Thomas B.)into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England

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25 05/14/09 $3,730 wire (Aldo M.)into Breckenridge account#-1929 in the WDNY from Barclays Bank, UK

26 06/10/09 $7,225 wire (Richard R.) into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England

27 06/18/09 $9980 wire (Aldo M.)into Breckenridge account#-1929 in the WDNY from Barclays Bank, UK

28 06/30/09 $28,480 wire (Aldo M.)into Breckenridgeaccount #-1929 in the WDNY from Barclays Bank,UK

29 07/08/09 $3,975 wire (David H.) wired into Breckenridgeaccount #-1929 in the WDNY from HSBC Bank PLCLondon, England

30 07/29/09 $24,980 wire (Lawrence P.) intoBreckenridge account #-1929 in the WDNY fromBarclays Bank, England

All in violation of Title 18, United States Code, Sections

1343 and 2.

COUNT 31(Conspiracy to Engage in Money Laundering)


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

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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) To knowingly engage in monetary transactions, that is,

the deposit, withdrawal and transfer of funds and monetary

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).

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B. MEANS BY WHICH THE OBJECTS OF THE CONSPIRACY WERE TO BEACCOMPLISHED

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

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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 FOLAND, TATUM, and MARCUS for their share of the fraud

proceeds.

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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)


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.

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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


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 DATE MONETARY TRANSACTION

32 09/22/08 $100,000 wire from Bank of America -1929 (Breckenridge Administrative Providers) toKLEIN at Wachovia Bank, Florida

33 09/23/08 $100,000 wire from Bank of America - 1929(Breckenridge Administrative Providers) toKLEIN at Wachovia Bank, Florida

34 07/31/09 $14,000 wire from Bank of America - 1929(Breckenridge Administrative Providers) toKLEIN at Wachovia Bank, Florida

All in violation of Title 18, United States Codes, Sections

1957(a) and 2.

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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


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 DATE MONETARY TRANSACTION

35 09/15/08 $120,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa in Barcelona, Spain

36 09/23/08 $125,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa in Barcelona, Spain

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37 10/01/08 $41,000 wire from Bank of America -1929(Breckenridge Administrative Providers) toSubscription Billing Services SL account -9905at La Caixa, Barcelona, Spain

38 11/24/08 $16,000 wire from Bank of America -1929(Breckenridge Administrative Providers) to ElTrebol Magico SL account -3713 at La Caixa,Barcelona, Spain



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

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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. cannot be located upon the exercise of due diligence;

2. has been transferred or sold to, or deposited with, a third party;

3. has been placed beyond the jurisdiction of the court;

4. has been substantially diminished in value; or

5. 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:

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As to Defendant GENE CLARK FOLAND:

REAL PROPERTY:

5060 NE 23rd Terrace, Lighthouse Point, Florida, as described in the Broward County Clerk’s 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 Clerk’s 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 Clerk’s office, Book 24176, Page 0962676 West Prospect Road (APN 49-42-22-08-0321), Oakland Park, Florida, as described in the Broward County Clerk’s office, Book 46050, Page 342.

676 West Prospect Road (APN 49-42-22-08-0360), Oakland Park, Florida, as described in the Broward County Clerk’s office, Book 46050, Page 342.

MOTOR VEHICLES:

One 2010 Mercedes Benz E350, VIN: WDDHF5GB7AA221490.

One 2009 Buick Enclave, VIN: 5GAER23D29J137598.

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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,


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



31








defendant up to the value of the above property, including but not


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

981(a)(1)(C), 982(a)(2)(A), 982(a)(8)(A), 982(a)(8)(B) and

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



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









defendant up to the value of the above property including but not


Those specific items specifically identified and incorporated

as fully set forth in the First Forfeiture Allegation above.

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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. WYLEGALAAssistant U.S. AttorneyUnited States Attorney's OfficeWestern District of New York138 Delaware AvenueBuffalo, New York 14202(716) 843-5700 ext. 822 [email protected]

A TRUE BILL:

S/FOREPERSON FOREPERSON

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