usa v. winick et al doc 3 filed 09 aug 13

7/27/2019 USA v. Winick Et Al Doc 3 Filed 09 Aug 13

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SC:JPL:CAO/SSSF.# 2011R01982UNITED STATES DISTRICT COURTEASTERN DISTRICT OF NEW YORK

- - - - XUNITED STATES OF AMERICA

- aga ins t -SANDY WINICK,

a lso known as "Jer rySarrano ," "John Pe te rSmith," "Abdie lVergara," "Robin Cheer,""Glen Forman," "KyleBendford" and "StephenThompson,"

GREGORY CURRY,KOLT CURRY,also known as "MichaelEast,"

GREGORY ELLIS,GARY KERSHNER,JOSEPH MANFREDONIA,

also known as "Maurizio,""Richard, fI \\PanamaJoe" and "Guil lermoMendoza,"

CORT POYNER,SONGKRAM ROY SAHACHAISERE andWILLIAM SEALS,

Defendants .- - - - - - - - - - - - - - X

THE GRAND JURY CHARGES:

SU P E R SED I N GI N D I C T MEN TCr. No. 13-452 (S-l ) (WFK)(T . 15, U.S.C. , 78j (b) and78ff ; T. 18, U.S.C. , 371,912, 981 (a) (1) (C), 982 (a) (8) ,982(b) , 1343, 1349, 2 and3551 e t s eq . ; T. 21, U.S.C. , 853 (p ) ; T. 28, U.S.C. , 2461 (c))

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INTRODUCTIONAt a l l t imes re l evan t to t h i s Superseding Indictment ,

unless o therwise i nd ica t ed :1. The defendan t SANDY WINICK, a l so known as "Je r ry

Sarrano ," "John Pe t e r Smith ," "Abdie l Vergara ," "Robin Cheer ,"

,

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 1 of 35 PageID #: 40


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"Glen Forman," "Kyle Bendford" and "Stephen Thompson," toge therwith others , engaged in tw o separa te but i n t e r re l a t ed schemes,referred to herein as the \\Penny Stock Scheme!! and the "AdvanceFee Scheme." The Penny Stock Scheme involved f raudulent lyi n f l a t i ng and a t tempt ing to i n f l a t e , the share pr ices and t radingvolumes of ce r ta in penny s tocks ("Target Stocks") . The AdvanceFee Scheme involved making fa l se promises to inves to r s to inducethem to pay fees fo r non-ex i s t en t se rv ice s to s e l l t he i r i l l i qu idpenny s tock shares .The Defendants

2. The defendan t SANDY WINICK was a Canadian c i t i z e nwho had l ived a t var ious t imes in China, Thai land, Vietnam,Canada and the United S t a t e s . Among o ther th ings , WINICKorches t r a ted the Penny Stock Scheme and the Advance Fee Scheme.

3. The defendan t GREGORY CURRY was a Canadian c i t i z e nwho l ived in Thai land. To fu r the r the Advance Fee Scheme,GREGORY CURRY, among o th e r th ings , helped to manage c a l l cente rst ha t were used to s o l i c i t Advance Fee Scheme vic t ims . Thedefendant GREGORY CURRY also helped to prepare fa l se l e t t e r s ,websi tes and email accounts which were used to dece ive po ten t i a land ac tua l vic t ims of the Advance Fee Scheme.

4. The defendan t KOLT CURRY, also known as "MichaelEast , " was a Canadian c i t i zen who l ived , a t var ious t imes, inThai land and Canada. To fu r the r the Advance Fee Scheme, KOLT

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CURRY, among other th ings , helped to manage c a l l cen te r s whichwere used to s o l i c i t Advance Fee Scheme vic t ims . The defendantKOLT CURRY also personal ly part ic ipated in making fraudulentte lephone ca l l s to these v ic t ims and helped to prepare fa l sel e t t e r s , websi tes and emai l accounts which were used to deceivepo te n t i a l and ac tua l vic t ims of the Advance Fee Scheme.

5. The defendant GREGORY ELLIS was a Canadian c i t i z e nwho l ived in Canada. ELLIS, among o ther th ings , ac ted as thepres iden t of seve ra l of the companies t ha t i ssued the TargetStocks ( the "Target Stock Companies") and pe rsona l ly par t i c ipa tedin f raudulent phone ca l l s to p o t e n t i a l and ac tu a l vic t ims of theAdvance Fee Scheme.

6. The defendant GARY KERSHNER was a United Sta tesc i t i z e n who l ived in Arizona and Kansas. To fu r t h e r th e PennyStock Scheme, KERSHNER, among o ther t h ings , made fa l se s ta tementsto r egu la to r s and i nves t iga to rs , and a l so crea ted fa l se andf raudulent documents which were presented to t r a ns f e r agents andc lea r ing f i rms to s u r r e p t i t i ous ly t r ade in the Target Stocks .

7. The defendant JOSEPH MANFREDONIA, also known as"Maurizio f" "Richard, fI "Panama Joe ll and "Guillermo Mendoza, II was auni ted Sta tes c i t i zen who l ived in New Je r sey . To fu r the r thePenny Stock Scheme, MANFREDONIA, among o ther th ings , f raudulent lyused fa l se pre ss r e leases to promote the Targe t Stocks and

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rec ru i t ed others to manipulate the Target Stocks ' pr ices andt rad ing volumes.

8. The defendant CORT POYNER was a United Statesc i t i z e n who l ived in Flor ida . To fu r the r the Penny Stock Scheme,POYNER, among o ther t h ings , knowingly br ibed brokers to purchasethe Targe t Stocks on beha l f of t h e i r c l i en t s .

9. SONGKRAM ROY SAHACHAISERE was a United Sta tesc i t i z e n who l ived in Cal i fo rn ia . SAHACHAISERE ownedInves t source , In c . , a publ ic r e l a t i ons firm t h a t did businesswith penny s tock companies. To fu r the r the Penny Stock Scheme,SAHACHAISERE, among o ther th ings , f raudulent ly promoted theTarget Stocks .

10. WILLIAM SEALS was a United Sta tes c i t i zen whol ived in Cal i fo rn ia . To fu r the r the Penny Stock Scheme, SEALS,among o ther t h ings , bought and so ld seve ra l of the Target Stocksto f raudulent ly manipulate t h e i r share pr ice and market volume.The Targe t Stock Companies

11. Blackout Media Corp. ("BKMP") was a holdingcompany with subs id ia r i e s t ha t purported to conduct bus inesses int e l ev i s ion , radio , In te rne t and p r i n t media. BKMP was a publ ic lyt raded corpora t ion whose shares t raded on the over- the-counte rexchange under the t i c ke r symbol "BKMP."

12. Resource Group In te rna t iona l , Inc . ("RSGR") was aWyoming corpora t ion headquar tered in Thai land, with off i ces

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located in Sco t t sda le , Arizona. At var ious t imes , RSGR claimedit was in the bus iness of developing a revolu t ionary f e r t i l i z e r ,generat ing wind power, genera t ing s o l a r power and enhancing o i lrecovery . RSGR was a pub l ic ly t raded corpora t ion whose sharest raded on the over- the-counte r exchange under the t i c ke r symbol"RSGR. "

13. Liquid Gold In te rna t iona l Corp. ("Liquid Gold")was a Nevada corpora t ion headquar tered in Ind iana . On March 12,2010, Foy Johnston, a Delaware corpora t ion headquar tered inToronto, Canada ("FOYJ"), acquired Liquid Gold. Following theacqu is i t ion , FOYJ changed i t s purpor ted bus iness focus from themanufacture of pa in t s , cosmetics , c leaning prepara t ions andenvironmental con t ro l appara tuses to the f i e l d of secondary o i lrecovery . FOYJ was a pub l ic ly t raded corpora t ion whose sharest raded on the ove r - the -coun te r exchange under the t i c ke r symbol"FOYJ. 1I

14. Imusic Worldwide Inc . ("Imusic" o r "IMWL") was aWashington s t a t e corpora t ion . Imusic purpor ted to be anIn te rne t -based bus iness involved in the music i ndus t ry . Imusicwas a pub l ic ly t raded corpora t ion whose shares t raded on theover- the-counte r exchange under the t i c ke r symbol "IMWL."

15. WGI Holdings Inc . ("WGIH") or ig ina l ly wasincorporated in Delaware in December 2006 under the name DataTrakInc . ("DataTrak") and l a t e r changed i t s name to WGIH. WGIH

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purpor ted to d i s t r i b u t e petroleum products and to own o i l and gaswel ls in Oklahoma. WGIH was a pub l i c ly t r aded corpora t ion whoseshares traded on the over-the-counter exchange under the t ickersymbol "WGIH."

16. Talisman Holdings Inc. ("TMHO") o r i g i n a l l y wasincorpora ted in Colorado in June 1998 under th e name AXYN Corp.and exper ienced mul t ip l e name changes . TMHO was a hold ingcompany with subs id ia r i e s tha t cla imed to produce an organ icf i sh -based f e r t i l i z e r and a l so to own i n t e r e s t s in gold mines inGuyana and Peru. TMHO was a pub l i c ly t r aded corpora t ion whoseshares t raded on t he ove r - the -coun te r exchange under th e t i c k e rsymbol "TMHO."

17. Nikron Technologies Inc . ("NKRN") purpor ted to bein the enhanced o i l recovery business . NKRN was a pub l ic lyt raded corpora t ion whose shares t raded on th e over- the-counte rexchange under th e t i c k e r symbol "NKRN."

18. Tal-Cap Inc. ("TALC") was a Minnesota corpora t iont h a t purpor ted to be in the process of t ry ing to "acquire" av iab le bus iness . TALC was a pub l i c ly t r aded corpora t ion whoseshares t raded on the over- the-counte r exchange under th e t i c ke rsymbol "TALC."

19. RainEarth , Inc. ("RainEarth" o r "RNER") .was aNevada corpora t ion , with its pr inc ipa l o f f i c e loca ted in Bei j ing ,China. RainEarth purpor ted to be in th e minera l exp lo ra t ion

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business and th e f i e l d of developing and manufactur ing hollowf i b e r membrane mater ia l s t h a t could be used in th e medical f i e ldas wel l as sewage treatment. RainEarth waS a publ ic ly tradedcorpora t ion whose shares t raded on the ove r - the -coun te r exchangeunder th e t i c k e r symbol "RNER."

20. Sync2 Networks Corp. ("SYNW") was a Nevadacorpora t ion t ha t purpor ted to be an i n t e rn a t i o n a l businessdevelopment and market ing f i rm. SYNW was a p u b l i c ly t radedcorpora t ion whose shares t raded on th e ove r - the -coun te r exchangeunder th e t i c k e r symbol "SYNW."

21. MASS Petro leum ("MASP") was a Nevada corpora t ionheadquar te red in Vancouver, B r i t i sh Columbia, Canada. MASPpurpor ted to engage in o i l explora t ion and d r i l l i n g . MASP was apubl i c ly t raded corpora t ion whose shares t raded on th eover- the-counte r exchange under th e t i c k e r symbol "MASP."

22. The shares of BKMP, RSGR, Liqu id Gold, FOYJ, IMWL,WGIH, TMHO, NKRN, TALC, RNER, SYNW and MASP, t oge the r withothers , a re c o l l e c t i ve ly r e fe r red to in t h i s SupersedingIndic tment as th e T arg e t Stocks .

23. The companies t h a t i s sued the T arg e t Stocks useds tock t r a n s fe r agenc ies . Stock t r a n s fe r agen t s maintained thecorpora te shareho lder records . When a shareho lder sold h iss tock , fo r example, th e s tock t r a n s fe r agen t would subs t i tu t e the

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new sha reho lde r ' s name fo r the o ld one on the o f f i c i a l mastershareho lder l i s t i n g .

24. A penny s tock wa s a pub l ic ly t r aded equ i tyse c u r i t y t h a t had a share p r i ce of l e ss than f ive d o l l a r s . Mostof the Targe t Stocks were l i s t ed on the Pink Sheets , a s tockquota t ion system fo r such penny s tocks . The companies t ha tt raded on th e Pink Sheets gene ra l ly d id no t meet th e minimuml i s t i n g requirements fo r t r ad ing on a na t iona l s e c ur i t i e sexchange, such as th e New York Stock Exchange o r th e Nat iona lAssocia t ion o f Secur i t i e s Dealers Automated Quotat ions ("NASDAQ")Stock Market .The Penny Stock Scheme

25. The defendan t SANDY WINICK, t oge the r with others ,including defendan ts GARY KERSHNER, JOSEPH MANFREDONIA, CORTPOYNER, SONGKRAM ROY SAHACHAISERE and WILLIAM SEALS( co l lec t ive ly , th e "Penny Stock Defendants" ) perpe t ra ted thePenny Stock Scheme. The ac t s t aken in fu r therance of the PennyStock Scheme descr ibed below a l l occurred in o r about and betweenJanuary 2008 and Ju ly 2013.

26. To ca r ry out the Penny Stock Scheme, th e PennyStock Defendants f raudu len t ly i n f l a t e d and at tempted to i n f l a t e ,th e share p r i ce s and t r ad ing volumes of th e Target Stocks . Afterf raudu len t ly i n f l a t i ng the share p r i ce s and t r ad ing volumes ofthe Target Stocks , th e Penny Stock Defendants so ld th e Target

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Stocks a t a p r o f i t , and a t tempted to do so , a f t e r t h e i rf raudu len t conduct deceived i nves to rs in to be l i ev ing t ha t marketforces alone se t the Target Stocks; ar t i f i c ia l l y inf la ted sharepr ices and t r ad ing volumes.

27. The Penny Stock Defendants acquired con t ro l l ingi n t e r e s t s in th e Target Stocks fo r little o r no co s t . At thet ime the Penny Stock Defendants purchased t h e i r i n t e r e s t s in theTarget S tocks, th e Target Stocks had little o r no t r ad ing volume.The Penny Stock Defendants then employed var ious means toa r t i f i c i a l l y and f raudu len t ly i n f l a t e th e Target S tocks ' sharepr ices and t r ad ing volumes. The Penny Stock Defendants alsot r an s f e r r ed shares o f th e Target Stocks in to the possess ion andcon t ro l of s tock promoters who would then comment upon the TargetS tocks .

28. To concea l t h e i r con t ro l and d i s t r i bu t ion of theTarge t Stocks from r egu la to r s and i nves to rs , th e Penny StockDefendants of ten f a l s e ly repor ted to brokerage f i rms the means bywhich they acqu i red th e Target Stocks . For example, throughoutthe scheme, th e penny Stock Defendants depos i t ed the TargetStocks in to mult ip le accounts a t d i f f e r e n t brokerage f i rms heldby nominee e n t i t i e s , inc lud ing o f fshore e n t i t i e s .

29. The Penny Stock Defendants promoted the TargetStocks, themselves and through s tock promote rs , using emai lb la s t s , ch a t rooms, so c i a l networking s i t e s , message boards ,

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s tock t ou t ing websi tes and news le t t e r s . This promot ionala c t iv i t y did no t revea l the involvement of th e Penny StockDefendants in the promotion campaigns or the i r in teres t s in theTarget S tocks, nor d id th e promot ional ac t i v i t y accura te lydisc lose the i n t e r e s t s of the s tock promoters in th e TargetStocks. The Penny Stock Defendants a l so used s to l en and inventedi d e n t i t i e s to promote th e Target Stocks f raudu len t ly .

30. The Penny Stock Defendants coord ina ted t radinga c t iv i t y with th e i s suance o f pre ss r e leases , some of whichknowingly contained f a l s e and misleading informat ion, to crea tethe appearance o f market i n t e r e s t in th e Target Stocks, therebyi n f l a t i ng th e Target Stocks ' share p r i ce s and providing f a l sepre tex t s fo r the increased t r ad ing volumes in th e Target Stocks.

31. The Penny Stock Defendants disseminated f a l se andmisleading informat ion about th e Target Stocks inc lud ing f a l ses ta tements about s a l e s con t rac t s fo r th e Target Stocks Companies'products , governmental approvals purpor ted ly obtained by theTarget S tock Companies, the number of ou t s tand ing shares and eventhe very na ture of the type of bus iness the Target StockCompanies conducted. For example, th e Penny Stock Defendantswidely promoted c e r t a in Target Stock Companies' pa r tne rsh ips withChinese h o s p i t a l s and corpora t ions such as " F i r s t SwissIn te rna t iona l Group Inc . , " even though the Penny Stock Defendantsknew t h a t no such pa r tne rsh ips ex is ted .

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32. The Penny Stock Defendants pa id and at tempted topay undisc losed kickbacks to s tock b rokers to induce the s tockbrokers to cause the ir c l i ent s to buy the Target Stocks. ThePenny Stock Defendants a l so engaged in "matched t r ades , " whichwere orders to buy o r s e l l s e c ur i t i e s en te red with th e knowledget ha t a prear ranged matching o rd e r on the oppos i t e s ide of thet r ansac t ion had been o r would be en te red . They also engaged in"wash sa les , " which were sa les between accounts owned by the sameperson o r e n t i t y . Using these kickbacks, matched t r ades and washsa les , the Penny Stock Defendants were able to a r t i f i c i a l l yinc rease the t r ad ing volumes and shares p r i c e s of th e Targe tS tocks .

33. Many of the phone ca l l s and emai l s used tocoordinate the f a l s e and misleading s ta tements and ac t ions of thePenny Stock Scheme were d i rec ted toward o r emanated from a mobilephone loca ted in Brooklyn, New York.

34. The proceeds of the f raudulent sa les of TargetStocks were wired from brokerage f i rms where nominee e n t i t i e s hadaccounts to var ious bank accounts , also in th e names of thenominee e n t i t i e s , inc lud ing bank accounts based in Panama andCosta Rica . Por t ions of the proceeds of th e sa le of th e TargetStocks were then wired to th e Penny Stock Defendants , minuscommissions charged by those who con t ro l l ed th e nominee e n t i t i e s .Through these nominee e n t i t i e s , defendan ts SANDY WINICK, GARY

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KERSHNER, JOSEPH MANFREDONIA, CORT POYNER, SONGKRAM ROYSAHACHAISERE, WILLIAM SEALS and othe rs depos i t ed and sold s tock.The Advance Fee Scheme

35. The defendan t SANDY WINICK, t oge the r with othe rs ,including defendants GREGORY CURRY, KOLT CURRY, a l so known as"Michael East" and GREGORY ELLIS ( co l l e c t i v e ly , the "Advance FeeDefendants" ) perpe t ra ted the Advance Fee Scheme. The ac t s takenin fu r therance of th e Advance Fee Scheme descr ibed below a l loccurred in o r about January 2009 and Ju ly 2013.

36. To car ry out the Advance Fee Scheme, the AdvanceFee Defendants f raudu len t ly s o l i c i t e d inves to r s in penny s tocks ,including the Target Stocks ( the "Advance Fee Vict ims") , to payadvance fees t h a t purpor ted ly would enable th e Advance FeeVictims to s e l l t h e i r nea r ly worth less penny s tocks a t a p r o f i t .The Advance Fee Defendants inven ted non-ex i s t en t businesses suchas law f i rms , consul t ing agenc ies and o th e r companies (the "FakeCompanies") as p a r t o f the scheme to convince th e Advance FeeVictims to pay a fee in advance of s e l l i ng s e c ur i t i e s . The FakeCompanies ' fees came in th e form of a phony commission,regu la to ry fees o r t axes , o r some othe r f i c t i t i o u s expenses . Thedefendants knew t ha t once the "advance fee" was pa id they wouldkeep the advance fees fo r t h e i r own purposes and do nothing fo rthe Advance Fee Vict ims in r e tu rn .

37. The Advance Fee Defendants posed as employees of

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th e Fake Companies inc lud ing the Madden Group, Inc . ("MaddenGroup"), S mith, S hore and Jenkins ("Smith Shore" ) , BensonSinc la i r and Se l ec t American Transfer Company ("Select ATe"); andac tua l e n t i t i e s such as the I n t e r n a l Revenue Serv ice ("IRS") ,among othe rs . In r ea l i t y , th e Advance Fee Defendants had noo f f i c i a l ro le a t th e Fake Companies o r th e IRS. In f ac t , theMadden Group, Smith Shore, Benson S i n c l a i r and Se lec t ATC, andothe rs , so le ly ex i s t ed to f a c i l i t a t e th e Advance Fee Scheme. Tot h i s end, the Advance Fee Defendants c rea t ed bank accounts , phonenumbers, s t a t i o n e r y , emai l accounts and websi tes s o l e ly tocommunicate with p o t e n t i a l and ac tua l vic t ims of th e Advance FeeScheme.

38. The Advance Fee Defendants main ta ined ca l l ingcen te r s in Vietnam, Thai land and Canada. The Advance Fee Vict imsl ived in coun t r i e s th roughout the world. Beginning on o r aboutMarch 1, 2013, th e defendan t WINICK began r e c ru i t i n g add i t iona lpeople to open new c a l l i n g cen te r s in Brooklyn, New York, andToronto, Canada. These rec ru i t ing e f fo r t s included mult ip lete lephone ca l l s from Bangkok, Thai land to Brooklyn, New York.

39. Ind iv idua l s , a c t ing a t th e d i r e c t i o n and con t ro lof the Advance Fee Defendants , placed phone c a l l s from thec a l l i n g cen te r s ( the "Cal le rs") t o a c tu a l and p o t e n t i a l vic t ims .The Cal l e r s f a l s e l y cla imed to rep re sen t u n id en t i f i ed buyersi n t e r e s t e d i n purchas ing th e Advance Fee Vict ims ' r e s t r i c t ed

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s tock a t an a t t r ac t i ve p r i c e . On these occas ions , th e Cal l e r sfa l se ly adv ised th e Advance Fee Vict ims t h a t they needed to pay afee prior to any stock sa le for a l ega l opinion regarding thesa le of " r e s t r i c t e d s tock" ("Legal Opinion Fee") .

40. On o ther occas ions , th e Cal l e r s f a l s e l y cla imed tobe assoc ia t ed with a law f irm t ha t sought to sue th e Target StockCompanies. The Cal l e r s f a l s e l y adv ised th e Advance Fee Vict imswho sought to j o in the l awsu i t t h a t they needed f i r s t to pay afee ("Lawsuit Fee") .

41. Shor t ly a f t e r the Advance Fee Vict ims agreed topay the Legal Opinion Fee o r th e Lawsuit Fee, they rece ived aninvo ice fo r th e fee v ia email . Once th e Advance Fee Vict ims paidthe Legal Opinion Fee o r th e Lawsuit Fee, the Cal l e r s advised theAdvance Fee Vict ims t ha t they owned "warrants" in add i t ion to theshares of s tock he ld .

42. A warrant , o r s tock warran t , was a secur i ty i ssuedby a corpora t ion . The owner could redeem th e warran t fo r sharesof s tock in th e company fo r a predetermined p r i c e . A warran tcould be t raded on an exchange and could have a very longdura t ion to ex p i r a t i o n o r no exp i ra t ion a t a l l .

43. The Cal l e r s f a l s e l y adv ised th e Advance Feevic t ims t h a t the u n id en t i f i ed purchaser also was i n t e res t ed inpurchasing t h e i r warran ts a t an a t t r ac t i ve p r i c e , but f i r s t , afee had to be pa id to conver t th e warran ts in to a sa l eab le

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secu r i ty ("Warrant Conversion Fee") . The Cal lers aga in fa l se lyadvised the Advance Fee Victims t h a t t h e i r payment of the WarrantConversion Fee would resu l t in the unnamed investors deposi t ingfunds d i r ec t l y i n to the Advance Fee Vic t ims ' accounts to purchasethe warrants .

44. Before any payment was made, however, the AdvanceFee Defendants sen t each Advance Fee Vict im, v ia emai l s acrosss t a t e and i n t e rna t i ona l l i nes , a no t i ce t h a t th e IR S requi redadvance payment of approximately 30 percen t of the t r ansac t ion intaxes before the sa l e could be consummated ( the "IRS Fee" ) .These emai l s conta ined fa l se and f raudulent communicat ionspurpor t ing to i s sue from employees of the IR S with names such as"Daniel Summers" and "Trevor Duncan." The Advance Fee Defendantscrea t ed these f i c t i t i o u s IR S documents and personas so le ly fo rthe purpose of def rauding the Advance Fee Vict ims.

45. Afte r payment of the requi red advance fees , noneo f the Advance Fee Vict ims rece ived the ant i c ipa t ed sa l e sproceeds . During the course of the Advance Fee Vic t ims ' dea l ingswith the Advance Fee Defendants , through the var ious FakeCompanies, the Advance Fee Victims received l e t t e r s , forms,invoices , wire i n s t ruc t i ons , and o the r documents from the FakeCompanies v ia emai l and fax. The Advance Fee Vict ims a l so sen tcompleted documents, r e c e i p t s and reques ted forms back to theFake Companies by emai l o r fax .

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46. The Advance Fee Defendants d i r ec t ed the AdvanceFee Vict ims to wire th e Legal Opinion Fee, th e Lawsui t Fee, theWarrant Conversion Fee and the IRS Fee through Citibank in NewYork City , to Cred i t Card Services Company SAL, which then passedthrough Ci t ibank ' s Funds Trans fe r Network ("FTN"), which wasloca ted in Ge tzv i l l e , New York. The fees then were sen t to aCit ibank account maintained in Bei ru t , Lebanon.

47. In 2009 and 2010 a lone , the proceeds of theAdvance Fee Scheme t o t a l e d more than $5 mil l ion . Those proceedswere wired to bank accounts throughout the world , wheredefendants SANDY WINICK, GREG CURRY, KOLT CURRY and GREG ELLIS,among others used those f raudu len t ly obta ined funds fo r t h e i r ownpurposes .

COUNT ONE(Conspiracy to Commit S ecu r i t i e s Fraud- th e Penny Stock Scheme)48. The a l l ega t ions conta ined in paragraphs one

through for ty-seven a re rea l l eged and incorpora ted as thoughfu l ly s e t fo r th in t h i s paragraph.

49. On o r about and between May 1, 2008 and Ju ly 31,2013, both da tes being approximate and inc lus ive , with in theEaste rn D i s t r i c t of New York and elsewhere , th e defendants SANDYWINICK, a l so known as " Je r ry Sarrano ," "John Pe te r Smith ,""Abdie l Vergara ," "Robin Cheer ," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GARY KERSHNER, JOSEPH MANFREDONIA, a lso

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known as "Maurizio/ 11 "Richard/II "Panama Joe ll and "GuillermoMendoza," CORT POYNER, SONGKRAM ROY SAHACHAISERE and WILLIAMSEALS, t oge the r with othe rs , did knowingly and w i l l fu l l y conspireto use and employ manipu la t ive and decept ive devices andcon t r ivances , cont ra ry to Rule 10b-5 of th e Rules and Regulat ionsof th e United S ta t e s S ecu r i t i e s and Exchange Commission, Ti t l e17, Code of Federa l Regula t ions , sec t ion 240.10b-5 , by: (a)employing dev ices , schemes and a r t i f i c e s to defraud; (b) makinguntrue s ta tements of mate r i a l f a c t and omi t t ing to s t a t e mater ia lf ac t s necessary in orde r to make the s t a tements made, in l i gh t ofth e circumstances under which they were made, n o t mis lead ing ; and(c) engaging in a c t s , p r ac t i c e s and courses of bus iness which

would and did opera te as a f raud and d ece i t upon i nves to rs andp o t e n t i a l i nves to rs in th e Target Stocks , in connect ion with thepurchase and sa le of inves tments in the Target Stocks , d i r e c t l yand i nd i rec t ly , by use of means and i n s t rumen ta l i t i e s ofi n t e r s t a t e commerce and the mai ls , con t ra ry to T i t l e 15, UnitedSta tes Code, Sect ions 78j (b) and 78ff .

50. In fu r therance of the conspiracy and to e f f e c t i t sob jec t s , within the Eas te rn D i s t r i c t of New York and e lsewhere ,the defendan ts WINICK, KERSHNER, MANFREDONIA, POYNER,SAHACHAISERE and SEALS, t oge the r with othe rs , committed andcaused to be committed, among othe rs , the fo l lowing:OVERT ACTS

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a . On o r about November 29, 2008, POYNER s ta ted ,among other th ings , how the Penny Stock Defendants would be ableto manipulate the Target Stocks' prices from approximatelyp e r share to over $1.00 per share .

b. On o r about January 14, 2009, POYNERarranged, among o ther t h ings , fo r cash payments to be made fo rpurchases of the Target Stocks to manipulate th e Target Stocks 'pr ice and t r ad ing volume.

c . On or about June 26, 2009, SAHACHAISERErece ived a t e lephone c a l l from an i nd iv idua l in Brooklyn, NewYork, to discuss , among o ther t h ings , how th e Penny StockDefendants would be able to dr ive up the pr ices of the TargetStocks and how they have access to i n s ide rs a t the Target StockCompanies.

d. On o r about October 19, 2009, SAHACHAISEREplaced a t e lephone c a l l from Huntington Beach, Cali forn ia , to ani nd iv idua l in Brooklyn, New York, to di scuss , among o ther th ings ,the process by which the Penny Stock Defendants would conceal thet rue ownership the Target Stocks.

e . On o r about June 23, 2011, KERSHNER receiveda te lephone c a l l from an i nd iv idua l in Brooklyn, New York, todiscuss , among o ther t h ings , how KERSHNER would c rea te fa l sedocuments with fake names and s igna tures fo r the Target StockCompanies.

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f . On o r about July 22, 2011, KERSHNER rece iveda te lephone c a l l from an i nd iv idua l in Brooklyn, New York, todiscuss , among other things , how KERSHNER would create fa l senames of execu t ives in f raudu len t documents t ha t th e Penny StockDefendants would use in connect ion with th e Target StockCompanies.

g. On o r about June 1, 2012, WINICK placed ate lephone c a l l from Bangkok, Thai land, to an i nd iv idua l inBrooklyn, New York, to discuss , among othe r th ings , i s su ing f a l sepress r e leases from th e Target Stock Companies fo r use by th ePenny Stock Defendants .

h. On o r about June 4, 2012, MANFREDONIA placeda te lephone c a l l from Freehold, New Je rsey , to an i nd iv idua l inBrooklyn, New York, to discuss , among o th e r t h ings , how the PennyStock Defendants should bu i ld t r ad ing volume fo r the Targe tStocks before in te rven t ion by s e c ur i t i e s r eg u l a to r s .

i. On o r about February 24, 2012, WINICKrece ived a te lephone c a l l from an i nd iv idua l in Brooklyn, NewYork, t o d i scuss , among othe r th ings , how th e Penny StockDefendants should l i qu ida te the Target Stocks p r i o r toin t e rven t ion by th e Federa l Bureau of Inves t iga t ion .

j . On o r about February 27, 2012, WINICKreceived a t e lephone c a l l from an i nd iv idua l in Brooklyn, NewYork, to di scuss , among o ther t h ings , how th e Penny Stock

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Defendants should l i qu ida te th e Targe t Stocks because of the r i skposed by an i n v es t i g a t i o n by se c u r i t i e s r eg u l a to r s .

k . On o r about August 29, 2012, l'fl.ANFREDONIl".received a t e lephone c a l l from an i nd iv idua l in Brooklyn, NewYork, t o d i scuss , among o ther th ings , how none of the Penny StockDefendants even remember th e Targe t Stock Companies ' f a l sebus iness plans .

1 . On o r about September 18, 2012, MANFREDONIAplaced a te lephone c a l l from Freehold , New Je rsey , to anindiv idua l in Brooklyn, New York, to d i scuss , among othe r th ings ,reschedul ing th e d i s semina t ion of the Target Stock Companies'f a l se press r e leases to coincide with th e promotion of the TargetStocks .

seq . )(T i t l e 18, United Sta tes Code, Sect ions 371 and 3551 e t

COUNT TWO(Conspiracy to Commit Wire Fraud- the Penny Stock Scheme)51. The a l l eg a t i o n s con ta ined in paragraphs one

through fo r ty -seven a re rea l l eged and incorpora ted as i f fu l lys e t for th in t h i s paragraph .

52. On o r about and between January 1, 2008 and Ju ly31, 2013, both da te s being approximate and inc lus ive , within theEastern D i s t r i c t of New York and elsewhere , th e defendants SANDYWINICK, a l so known as " Je r ry Sarrano ," "John Pe te r Smith,"

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"Abdie l Vergara ," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GARY KERSHNER, JOSEPH MANFREDONIA, alsoknown as "Maurizio,1I "Richard,"Mendoza," CORT POYNER, SONGKRAM ROY SAHACHAISERE and WILLIAMSEALS, t oge the r with o ther s , d id knowingly and i n t en t iona l lyconspire to dev ise a scheme and a r t i f i c e to defraud th e PennyStock Vic t ims, and to obta in money and proper ty from them bymeans of mater ia l ly fa l se and f raudu len t pre t enses ,rep re sen ta t ions and promises r e l a t e d to th e Penny Stock Scheme,and, fo r the purpose of execu t ing such scheme and a r t i f i c e , tot ransmi t and cause to be t r ansmi t t ed by means of wirecommunication in i n t e r s t a t e and fo re ign commerce wri t ings , s igns ,s igna l s , p ic tu res and sounds, con t ra ry to Ti t l e 18, United Sta tesCode, Sect ion 1343.

e t seq . )(T i t l e 18, United Sta tes Code, Sect ions 1349 and 3551

COUNT THREE(Conspiracy to Commit Wire Fraud- th e Advance Fee Scheme)53. The a l l ega t ions con ta ined in paragraphs one

through fo r ty -seven a re rea l l eged and incorpora ted as if fu l lyse t f o r th i n t h i s paragraph .

54. On o r about and between January 1, 2008 and Ju ly31, 2013, both da tes being approximate and inc lus ive , with in theEastern D i s t r i c t of New York and elsewhere , th e defendan ts SANDY

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WINICK, a l so known as "Jer ry Sarrano ," "John Pe te r Smith,""Abdie l Vergara ," "Robin Cheer," "Glen Forman," "Kyle Bendford"and \\Stephen Thompson / " GREGORY CURRY, as"Michael East , " and GREGORY ELLIS, t oge the r with othe rs , d idknowingly and i n t e n t i o n a l l y consp i re to devise a scheme anda r t i f i c e to defraud th e Advance Fee Vict ims, and to obta in moneyand proper ty from them by means of mater ia l ly fa l se andf raudu len t pre t enses , rep re sen ta t ions and promises re l a t ed to theAdvance Fee Scheme, and, fo r the purpose of execut ing such schemeand a r t i f i c e , to t ransmi t and cause to be t r ansmi t ted by means ofwire communication in i n t e r s t a t e and fore ign commerce wri t ings ,s igns , s igna l s , p i c tu r e s and sounds, cont ra ry to Ti t l e 18, UnitedSta tes Code, Sect ion 1343.

e t ~ . )(T i t l e 18, United Sta tes Code, Sect ions 1349 and 3551

COUNTS FOUR THROUGH THIRTEEN(Wire Fraud - the Penny Stock Scheme)55. The a l l ega t ions con ta ined in paragraphs one

through fo r ty -seven a re rea l l eged and incorpora ted as i f fu l lys e t fo r th in t h i s paragraph .

56. On o r about and between July 22, 2009 and December1, 2012, both da tes being approximate and inc lus ive , within theEas te rn D i s t r i c t of New York and elsewhere , th e defendan ts SANDYWINICK, a l so known as " Je r ry Sarrano ," "John P e t e r Smith,""Abdie l Vergara ," "Robin Cheer," "Glen Forman," "Kyle Bendford"

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and "Stephen Thompson," GARY KERSHNER, JOSEPH MANFREDONIA, a lsoknown as "Maurizio," "Richard," "Panama Joe ll and "GuillermoMendoza,;; CORT POYNER, SONGKR.i\N

SEALS, t oge the r with othe rs , d id knowingly and i n t en t iona l lydev ise a scheme and a r t i f i c e to defraud th e Penny Stock Vict ims,to wi t : the Penny Stock Scheme, and to obta in money and proper tyfrom them by means of mater ia l ly fa l se and f raudu len t p re tenses ,rep re sen ta t ions and promises , and fo r th e purpose of execut ingsuch scheme and a r t i f i c e , d id t ransmi t and caused to bet ransmi t ted , by means of wire communicat ion in i n t e r s t a t e andfo re ign commerce, wri t ings , s igns , s igna l s , p ic tu res and sounds,as se t fo r th below:

Count Approximate Description o f the WireDate

FOUR June 26, Telephone c a l l from Brooklyn, New York,2009 to Hunt ington Beach, Cal i fo rn ia

FIVE October 19, Telephone c a l l from Hunt ington Beach,2009 Cal i fo rn ia , to Brooklyn, New York

SIX June 23, Telephone c a l l from Brooklyn, New York,2011 to Tucson, ArizonaSEVEN July 22, Telephone c a l l from Brooklyn, New York,

2011 to Tucson, ArizonaEIGHT June 1 , Telephone c a l l from Bangkok, Thai land,

2012 to Brooklyn, New YorkNINE June 4, Telephone c a l l from Freehold , New

2012 Je rsey , to Brooklyn, New YorkTEN February Telephone c a l l from Brooklyn, New York,

24, 2012 to Bangkok, Thai landELEVEN February Telephone c a l l from Brooklyn, New York,27, 2012 to Bangkok, Thai land

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TWELVE August 29, Telephone c a l l from Brooklyn, New York,2012 to Freehold , New Je r sey

THIRTEEN September Telephone c a l l from Freehold , New118, 2012 . - . - -I Jersey , to BrooKLyn, New YorK(T i t l e 18, United Sta tes Code, Sect ions 1343, 2 and

3551 e t seq. )COUNTS FOURTEEN THROUGH EIGHTEEN

(Wire Fraud - th e Advance Fee Scheme)57. The a l l eg a t i o n s con ta ined in paragraphs one

through for ty-seven a re rea l l eged and incorpora ted as i f fu l lys e t fo r th in t h i s paragraph .

58. On o r about and between March 6, 2013 and May 7,2013, both da tes being approximate and inc lus ive , with in theEas tern D i s t r i c t of New York and elsewhere , th e defendants SANDYWINICK, a l so known as "Jer ry Sarrano ," "John P e t e r Smith,""Abdiel Vergara ," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GREGORY CURRY, KOLT CURRY, also known as"Michael East , " and GREGORY ELLIS, t oge the r with othe rs , didknowingly and i n t e n t i o n a l l y devise a scheme and a r t i f i c e todefraud th e Advance Fee vic t ims , to wit : the Advance Fee Scheme,and t o ob ta in money and proper ty from them by means of mater ia l lyfa l se and f raudu len t pre t enses , r ep resen ta t ions and promises , andfo r the purpose of execu t ing such scheme and a r t i f i c e , d idt ransmi t and caused to be t r ansmi t t ed , by means of wirecommunication in i n t e r s t a t e and fore ign commerce, wri t ings ,s igns , s igna l s , p ic tu res and sounds, as s e t fo r th below:

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Count Approximate Description o f the WireDate

FOURTEEN March 6, Telephone c a l l from Brooklyn, New2013 York, to Bangkok, Thai land

FIFTEEN March 21, Telephone c a l l from Bangkok, Thai land,2013 to Brooklyn, New YorkSIXTEEN A p r i l 8, Telephone c a l l from Bangkok, Thai land,

2013 to Brooklyn, New YorkSEVENTEEN May 1, 2013 Telephone c a l l from Queens, New York,to Toronto, CanadaEIGHTEEN May 7, 2013 Telephone c a l l from Brooklyn, NewYork, to Bangkok, Thai land

(T i t l e 18, United Sta tes Code, Sect ions 1343, 2 and3551 e t ~ . )

COUNT NINETEEN(Secur i t i e s Fraud - RSGR)

59. The a l l eg a t i o n s con ta ined in paragraphs onethrough for ty-seven a re rea l l eged and incorpora ted as thoughfu l l y s e t fo r th in t h i s paragraph.

60. In o r about and between May 2008 and July 2013,both dates being approximate and inc lus ive , with in the Eas ternD i s t r i c t of New York and elsewhere , the defendan ts SANDY WINICK,also known as " Je r ry Sarrano," "John Pe te r Smith ," "Abdie lVergara ," "Robin Cheer," "Glen Forman," "Kyle Bendford" and"Stephen Thompson," JOSEPH MANFREDONIA, a l so known as "Mauriz io ,""Richard ," "Panama Joe" and "Guillermo Mendoza," CORT POYNER,SONGKRAM ROY SAHACHAISERE and WILLIAM SEALS t oge the r with othe rs ,d id knowingly and w i l l fu l l y use and employ one o r more

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manipulat ive and decep t ive devices and con t r ivance s , con t ra ry toRule 10b-5 of th e Rules and Regulat ions of th e United Sta tess ecur i t i e s and Exchange COfcnnission, Ti t l e 17 Code of FederalRegula t ions , Sect ion 240.10b-5 , by: (a ) employing one o r moredev ices , schemes and a r t i f i c e s to defraud ; (b) making one o r moreuntrue s ta tements of mate r i a l f ac t and omit t ing to s t a t e one ormore mate r i a l f ac t s necessary in order to make th e s ta tementsmade, in th e l i g h t of the circumstances in which they were made,n ot misleading; and (c) engaging in one o r more a c t s , prac t icesand courses of bus iness which would and d id opera te as a fraudand d ece i t upon one o r more i nves to rs o r po te n t i a l i nves to rs inRSGR, in connect ion with the purchases and sa l e s of investmentsin RSGR, d i r e c t ly and i nd i rec t ly , by use of means andi n s t r u men ta l i t i e s o f i n t e r s t a t e commerce and the mai l s .

(T i t l e 15, United Sta tes Code, Sect ions 78j(b) and78ff ; Ti t l e 18, uni t ed Sta tes Code, Sect ions 2 and 3551 e t seq.)

COUNT TWENTY(Secur i t i e s Fraud - FOYJ)

61. The a l l eg a t i o n s con ta ined in paragraphs onethrough fo r ty -seven a re r ea l l eged and incorpora ted as thoughfu l ly s e t fo r th in t h i s paragraph.

62. In o r about and between February 2010 and Ju ly2013, both da tes being approximate and inc lus ive , with in theEastern D i s t r i c t of New York and elsewhere , th e defendant SANDYWINICK, a l so known as "Jer ry Sarrano ," "John Pe te r Smith,"

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"Abdie l Vergara ," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," t oge the r with othe rs , d id knowingly andwi l l fu l l y use and employ one 0]:-- mOl.-e manipulat ive and deceptivedev ices and con t r ivances , cont ra ry to Rule 10b-5 of the Rules andRegulat ions of th e United Sta tes Secur i t i e s and ExchangeCommission, T i t l e 17, Code of Federa l Regulat ions , Sect ion240.10b-5, by: (a) employing one o r more dev ices , schemes anda r t i f i c e s to defraud ; (b ) making one o r more unt rue s ta tements ofmate r i a l f a c t and omi t t ing to s t a t e one o r more mate r i a l f ac t snecessary in orde r to make th e s ta tements made, in th e l i gh t ofthe c i rcumstances in which they were made, not mis lead ing ; and(c) engaging in one o r more ac t s , p r ac t i c e s and courses of

bus iness which would and did opera te as a f raud and dece i t uponone o r more i nves to rs and p o t e n t i a l i nves to rs in FOYJ, inconnect ion with th e purchases and s a l e s of inves tments in FOYJ,d i r e c t ly and i n d i r e c t l y , by use of means and i n s t r u men ta l i t i e s ofi n t e r s t a t e commerce and the mai l s .

(T i t l e 15, United Sta tes Code, Sect ions 78j(b) and78ff ; Ti t l e 18, uni t ed S ta t e s Code, Sect ions 2 and 3551 e t seq.)

COUNT TWENTY-ONE(Secur i t i e s Fraud - TMHO)

63. The a l l ega t ions con ta ined in paragraphs onethrough for ty-seven a re rea l l eged and incorpora ted as thoughfu l l y s e t fo r th in t h i s paragraph.

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64. In o r about and between February 2011 and Ju ly2013, both da tes being approximate and inc lus ive , within theEastern Distr ic t o f New York and elsewhere, the defendants SA.NDYWINICK, a l so known as "Jer ry Sarrano ," "John P e t e r Smith ,""Abdiel Vergara ," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GARY KERSHNER and JOSEPH MANFREDONIA,also known as "Maurizio,1I "Richard," "Panama Joel! and "GuillermoMendoza," t oge the r with othe rs , d id knowingly and w i l l fu l l y useand employ one o r more manipu la t ive and decep t ive dev ices andcon t r ivances , con t ra ry to Rule 10b-5 of the Rules and Regulat ionsof the United S ta t e s Secur i t i e s and Exchange Commission, Ti t l e17, Code of Federa l Regula t ions , Sect ion 240.10b-5 , by: (a)employing one o r more devices , schemes and a r t i f i c e s to defraud;(b) making one o r more unt rue s ta tements of mate r i a l f ac t andomi t t ing to s t a t e one o r more mate r i a l f ac t s necessary in orderto make the s t a tements made, in th e l i g h t of th e circumstances inwhich they were made, n ot mis lead ing ; and (c) engaging in one o rmore ac t s , p rac t i ces and courses of business which would and didopera te as a f raud and d ece i t upon one or more i nves to rs andp o t e n t i a l i nves to rs in TMHO, in connect ion with th e purchases andsa les of inves tments in TMHO, d i r e c t ly and i n d i r e c t l y , by use ofmeans and i n s t rumen ta l i t i e s of i n t e r s t a t e commerce and the mai l s .

(T i t l e 15, United Sta tes Code, Sect ions 7Sj(b) and7Sff ; T i t l e IS , United S ta t e s Code, Sect ions 2 and 3551 e t seg.)

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COUNT TWENTY-TWO(Secur i t i e s Fraud - WGIH)

65. The a l l eg a t i o n s con ta ined in paragraphs onethrough fo r ty -seven a re rea l l eged and incorpora ted as thoughfu l ly se t fo r th in t h i s paragraph .

66. In o r about and between Apri l 2012 and July 2013,both da tes being approximate and i nc lus ive , w i th in the Eas ternD is t r i c t of New York and elsewhere , th e defendan ts SANDY WINICK,a lso known as "Jer ry Sarrano," "John Pete r Smith ," "Abdie lvergara , " "Robin Cheer," "Glen Forman," "Kyle Bendford" and"Stephen Thompson," GARY KERSHNER and JOSEPH MANFREDONIA, alsoknown as "Maurizio,1I "Richard," "Panama Joe" and "GuillermoMendoza," t oge the r with othe rs , d id knowingly and w i l l fu l l y useand employ one o r more manipu la t ive and decept ive dev ices andcon t r ivances , con t ra ry to Rule 10b-5 of the Rules and Regulat ionsof the uni t ed S ta t e s S ecu r i t i e s and Exchange Commission, Ti t l e17, Code of Federa l Regula t ions , Sect ion 240.10b-5 , by: (a)employing one o r more devices , schemes and a r t i f i c e s to defraud;(b) making one o r more untrue s ta tements of mate r i a l f a c t andomit t ing to s t a t e one o r more mate r i a l f ac t s necessary in orde rto make the s t a tements made, in th e l i g h t of the circumstances in

which they were made, not mis lead ing ; and (c) engaging in one o rmore ac t s , p r ac t i c e s and courses of bus iness which would and didoperate as a f raud and d ece i t one o r more inves to r s andpo ten t i a l inves to r s in WGIH, in connect ion with the purchases and

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sa les of inves tments in WGIH, d i r e c t ly and i n d i r e c t l y , by use ofmeans and i n s t r u men ta l i t i e s of i n t e r s t a t e commerce and the mai ls .

(Ti t l e 15 1 United States Code! Sections 78j(b) and78ff ; Ti t l e 18, United Sta tes Code, Sect ions 2 and 3551 e t seq. )

COUNT TWENTY-THREE(False Impersonat ion of an Off i ce r and Employeeof the United Sta tes - "Trevor Duncan")

67. The a l l eg a t i o n s con ta ined in paragraphs onethrough for ty-seven a re r e -a l l eged and incorpora ted as thoughfu l l y s e t fo r th he re in .

68. On o r about and between January 1, 2008 and July31, 2013, both da te s being approximate and inc lus ive , with in theEastern D i s t r i c t o f New York and elsewhere , th e defendan ts SANDYWINICK, a lso known as "Jer ry Sarrano ," "John Pe te r Smith ,""Abdiel Vergara ," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GREGORY CURRY, KOLT CURRY, a l so known as"Michael East , " and GREGORY ELLIS, t oge the r with othe rs ,knowingly and i n t e n t i o n a l l y f a l s e l y assumed and pre tended to be"Trevor Duncan," an of f i c e r and employee ac t ing under th eau thor i ty of th e United S ta t e s and any depar tment , agency andof f i c e r t he reof , and ac t ing as such, and in such pre tendedcha rac te r demanded and obtained money, papers , documents andth ings o f va lue , to wit : the f i c t i t i o u s IRS Fee.

(T i t l e 18, United Sta tes Code, Sect ions 912, 2 and 3551

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COUNT TWENTY-FOUR(False Im personat ion of an Off i ce r and Employeeof th e United Sta tes - "Danie l Summers")

69. The a l l ega t ions C011tained in paragraphs onethrough fo r ty -seven a re r e -a l l eged and incorpora ted as thoughfu l ly s e t fo r th he re in .

70. On o r about and between January 1, 2008 and Ju ly31, 2013, both da tes being approximate and inc lus ive , within theEastern D i s t r i c t of New York and elsewhere , th e defendants SANDYWINICK, also known as "Je r ry Sarrano," "John P e t e r Smith,""Abdiel Vergara ," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GREGORY CURRY, KOLT CURRY, a lso known as"Michael East , " and GREGORY ELLIS, t oge the r with othe rs ,knowingly and i n t e n t i o n a l l y f a l s e l y assumed and pre tended to be"Daniel Summers," an o f f i c e r and employee ac t ing under theau thor i ty of th e uni t ed Sta tes and any department , agency andof f i c e r t he reof , and ac t ing as such, and in such pre tendedcha rac te r demanded and obtained money, papers , documents andth ings o f va lue , to wit : the f i c t i t i o u s IRS Fee.

e t gg.)(T i t l e 18, United Sta tes Code, Sect ions 912, 2 and 3551

CRIMINAL FORFEITURE ALLEGATION AS TO COUNTS ONEAND TWO, FOUR THROUGH THIRTEEN, AND NINETEEN

THROUGH TWENTY-TWO71. The United Sta tes hereby gives no t ice to the

defendants charged in Counts One and Two, Four through Thir teen,

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and Nineteen through Twenty-Two t ha t , upon t h e i r convict ion ofany such of fenses , the government w i l l seek fo r f e i t u r e inaccordance with Ti t l e 18, uni ted S ta tes Code, Sec t ion981(a) (1) (C) and Ti t l e 28, United Sta tes Code, Sec t ion 2461(c) ,which requ i re any person convic ted of such offenses to f o r f e i tany proper ty , rea l o r persona l , cons t i tu t ing o r der ived fromproceeds obtained d i r e c t ly o r i nd i r e c t l y as a r e s u l t of suchoffenses .

72. I f any of the above-descr ibed fo r f e i t a b l eproper ty , as a r e s u l t of any ac t o r omission of th e defendants:

a . cannot be loca ted upon the exerc i se of dued i l igence ;

b. has been t rans fe r red o r sold to , or depos i tedwith , a t h i rd par ty ;

c. has been placed beyond th e j u r i s d i c t i on ofthe Court;

d . has been subs tan t ia l ly diminished in value;or

e . has been commingled with o th e r proper ty ,which cannot be divided without d i f f i cu l t y ;it i s the i n t e n t of the United Sta tes , pursuan t to Ti t l e 21,United Sta tes Code, Sec t ion 853(p) , as incorpora ted by Ti t le 28,uni ted Sta tes Code, Sec t ion 2461(c), to seek fo r f e i t u r e of any

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othe r proper ty o f the defendan ts , up to the value of thefo r f e i t a b l e proper ty descr ibed in t h i s fo r f e i t u re a l l eg a t i o n .

(Tit le 28, United States Code, Sect ion 2461(c) ; Tit l e18, United Sta tes Code, Sect ion 981(a) (1) (C); Ti t l e 21, UnitedSta tes Code, Sect ion 853(p

CRIMINAL FORFEITURE ALLEGATION AS TOCOUNTS THREE AND FOURTEEN THROUGH EIGHTEEN

73. The United Sta tes hereby gives no t ice to thedefendants t h a t , upon conv ic t ion o f any of the o f fenses chargedin Count Three o r Counts Fourteen through Eighteen , thegovernment w i l l seek fo r f e i t u re i n accordance with Ti t l e 18,United S ta t e s Code, Sect ion 982(a) (8) , which requ i re s any personconvic ted of such offenses to f o r f e i t any prope r ty (A) used orin tended to be used to commit, to f a c i l i t a t e , o r to promote thecommission of such offense , and (B ) cons t i tu t ing der ived from, o rt raceab le to the gross proceeds obtained d i r e c t ly o r i nd i rec t lyas a r e s u l t of such of fenses .

74. I f any of the above-descr ibed fo r f e i t a b l eproper ty , as a r e s u l t of any ac t o r omission of th e defendants :

a . cannot be loca ted upon th e exe rc i se of duedi l igence ;

b. has been t rans fe r red o r so ld to , o r deposi tedwith , a t h i rd p a r ty ;

c . has been placed beyond th e j u r i s d i c t i on ofthe Court ;

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d. has been su b s t a n t i a l l y diminished in value;o r

e . has been corCimingled with other propertywhich cannot be div ided without d i f f i c u l t y ;it i s the i n t e n t of th e United Sta tes , pursuan t to Ti t l e 21,United Sta tes Code, Sect ion 853(p) , as incorpora ted by Ti t le 18,United Sta tes Code, sec t ion 982(b) , to seek for fe i ture of anyothe r p rope r ty of the defendants , up to the value o f thefo r f e i t a b l e proper ty descr ibed in t h i s f o r f e i t u r e a l l ega t ion .

(T i t l e 18, United Sta tes Code, Sect ions 982(a) (8) and982(b) ; Ti t l e 21, United S ta t e s Code, Sect ion 853(p))

A TRUE BILL

FORE PERSON

~ ((})JJ;: C:.R TTA E. LYNCHUNITED STATES ATTORNEYEASTERN DISTRICT OF NEW YORK

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F. #2011R01982FORMDBD-34JUN. 85

No. 13-CR-452 (S-l) (WFK)UNITED STATES DISTRICT COURT

EASTERN District afNEW YORK.CRIMINAL DIVISION

THE UNITED STATES OF AMERICAVS.

SANDYWINICK, also known as "Jerry Sarrano, " "John Peter Smith, " "AbdielVergara, " "Robin Cheer, " "Glen Forman, " "Kyle Bendford" and "StephenThompson, "GREGORYCURRY, KOLT CURRY, also known as "Michael East, "GREGORY ELLIS, GARY KERSHNER, JOSEPH MANFREDONIA, also knownas "Maurizio, " "Richard, ""Panama Joe" and "Guillermo Mendoza, " CORTPOYNER, SONGKRAMROYSAHACHAISERE and WILLIAM SEALS,Defendants.

SUPERSEDING INDICTMENT(T. 15, U.S.c., 78j(b) and 78ff; T. 18, U.S.c., 371, 912, 981(a)(l)(C),982(a)(8), 982(b), 1343, 1349,2 and 3551 e t ~ . ; T. 21, U.S.C., 853(p);T. 28, U.S.C., 2461(c).)

-------- ~ f ~ - - - - - ~ ; ; ; ~ ~4'YryFiled in open court this _________________ day, of ____________ ';i.D. 20

A true bill.

Clerk

Bail, $ __________ _Christopher Ott, Assistant U.S. Attorney (718) 254-6154



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usa v. winick et al doc 3 filed 09 aug 13

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