JuanCarlosGuillen

8/7/2019 JuanCarlosGuillen

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AO 44 2 (Rev. 11/98) Warrant for Arrest

UNITED STATES DISTRICT COURT_ _ _

- ' -~ D l S T R I C T

OF CONNECTICUT

UNITED STATESOF AMERICA

V.

JUAN CARLOS GUILLEN ZERPA

WARRANT FOR ARREST

DOCKET NUMBER: 3: / /mj 31(w/&)

TO: The United States Marshaland any Authorized United StatesOfficer

JUAN CARLOS GUILLEN ZERPAYOU ARE HEREBY COMMANDED to arrest_ - " - " ' ' - ' ' - ' ~ - - " " ! ~ ' ' - - ' ' - , " " , , , , ~ ' ' - Name

and bring him forthwith to the nearest magistratejudge to answer a

o Indictment 0 Information .Complaint 0 Order of Court 0 Violation Notice 0 Probation Violation Petit ion

charging h im w it h (brief descriptionofoffense) Conspiracy to obstruct an official proceeding, to obstruct justiceand to def raud the U.S. Securities an d Exchange Commission; an d Obstruction of an official proceeding,

in violation of Title 18 United States Code, Section(s) 371, 1512 & 2

WILLIAM I. GARFINKEL UNITED STATES MAGISTRATE JUDGEName of Issuing Officer

Signatureo f ~ ; ; ; r i ~ ; ~ } " \ " ' - - > '

. - - -A--

Title of Issuing Officer

March 2, 2011 at Bridgeport, ConnecticutDate and Location

Bail fixed at $ _ byName of Judicial Officer

RETURN

This warrant was received and execu ted with the a rres t of the above named-defendant at

-

DATE RECEIVED NAME AND TITLE OF ARRESTING OFFiCER SIGNATURE OF ARRESTING OFFICER

DATE OF ARREST-rr\le Copy

A T T " ' ~ ' H :~

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2/18

AO 91 (Rev. 08/09) Criminal Complaint

UNITED STATES DISTRICT

C ~for theDistrict o f Connecticut 2011 HAR-2 P 3: 00United States o f America

v.

JUAN CARLOS GUILLEN ZERPA

Defendanus)

))))))

Case No.

u.s. oisnucr COURT

,:,jCGEPOET. CD

3://111) 31 (W/G)

CRIMINAL COMPLAINT

I, the complainant in this case, state that the following is true to the best o f my knowledge and belief.

On or about the date(s) o f October 2010 to March 2011 in the county o f Fairfield in the

District o f Connecticut , the defendant(s) violated:

Code SectionTitle 18. United States Code.Section 371

Title 18. United States Code,Sections 1512(c)(2) & 2

Offense DescriptionConspiracy to Obstruct Justice. to Obstruct an Official Proceeding and toDefraud the U.S. Securities and Exchange Commission

Obstruction of an Official Proceeding

This criminal complaint is based on these facts:

Se eattached affidavitof Special Agent Stacy G. Bowery. dated March 2, 2011

Olf Continued on the attached sheet.

Sworn to before me and signed in my presence.

Date:

~ : P - 2 ! - - = -& i - -

Judge s signature

City and state: Bridgeport. CT William I. Garfinkel. U.S. Magistrate JudgePrinted name and title


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STATE OF CONNECTICUT

COUNTY OF FAIRFIELD

s s :

AFFIDAVIT

B r i d g e p o r t , C o n n e c t i c u t

March 2 , 2011

I , S t a c y G. Bowery, b e in g d u ly sworn , h e r e b y depose and

s t a t e :

1 . I am a S p e c i a l Agen t o f t h e F e d e r a l Bureau o f

I n v e s t i g a t i o n (FB I), and have b e e n so employed f o r approx ima te ly

13 y e a r s . I am c u r r e n t l y a s s i g n e d t o a White C o l l a r squad i n t h e

F B I' s B r id ge po rt R e s i d e n t Agency. I n my r o l e as a S p e c i a l Agent

o f t h e FBI, I have r e c e i v e d t r a i n in g i n c o n d u c t i n g c r i m i n a l

i n v e s t i g a t i o n s , and I am f a m i l i a r w i t h t h e p r o c e d u r e s o f t h e FBI.

As a S p e c i a l Agent o f t h e FBI, I have p a r t i c i p a t e d i n numerous

c r i m i n a l i n v e s t i g a t i o n s i n v o l v i n g v i o l a t i o n s o f f e d e r a l c r i m i n a l

l aw, i n c l u d i n g i n v e s t i g a t i o n s o f o r g a n i z e d c r i m e , as w e l l a s

c r i m i n a l i n v e s t i g a t i o n s i n v o l v i n g m a i l f r a u d and w i r e f r a u d ,

money l a u n d e r i n g , mor tgage f r a u d and bank f r a u d o f f e n s e s , a s w e l l

a s o th e r f in a n c ia l f r a u d s .

2. I make t h i s a f f id a v i t i n s u p p o r t o f a t w o - c o u n t c r i m i n a l

c om p la in t s ee kin g an a r r e s t w a r r a n t f o r JUAN CARLOS GUILLEN ZERPA

( h e r e a f t e r , "GUILLEN") on c h a rg e s o f : Count On e - c o n s p i r a c y t o

o b s t r u c t j u s t i c e , t o o b s t r u c t an o f f i c i a l p r o c e e d i n g , and t o

d ef r a ud t h e U.S. S e c u r i t i e s and Exchange Commission ("SEC"),

c o n t r a r y t o 18 U.S .C . 1503, 1512 , and 371 , a l l o f which i s i n

v i o l a t i o n o f 18 U.S .C . 371; and Count Two - o b s t r u c t i o n o f an


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o f f i c i a l p r o c e e d i n g , i n v i o l a t i o n o f 18 U.S .C . 1512 and 2.

3. The i n f o r m a t i o n c o n t a i n e d i n t h i s a f f i d a v i t i s based

upon my p e r s o n a l knowledge d e v e l o p e d d u r i n g t h e i n v e s t i g a t i o n , my

rev iew o f documents , i n f o r m a t i o n s up pl i e d t o me by o t h e r a g e n t s

and o f f i c e r s , i n c l u d i n g c o n v e r s a t i o n s w i t h and i n f o r m a t i o n I have

o b t a i n e d from FB I S p e c i a l Agent J a s o n M. Breen , who i s t h e c a s e

a g e n t on t h i s i n v e s t i g a t i o n , i n f o r m a t i o n t h a t I have l e a r n e d

a b o u t i n f o r m a t i o n s u p p l i e d by a c o n f i d e n t i a l human source

("CHS"), my r ev iew o f p r e l i m i n a r y d r a f t t r a n s c r i p t s o f

c o n s e n s u a l l y r e c o r d e d phone c a l l s , a s w e l l a s e m a i l s and t e x t

messages i n v o l v i n g t h e CHS, GUILLEN a n d / o r o t h e r s , and

i n f o r m a t i o n and documents made a v a i l a b l e t o t h e FBI by

r e p r e s e n t a t i v e s o f t h e SEC, a s w e l l a s i n f o r m a t i o n t h e FB I

o b t a i n e d from a c o u r t - a p p o i n t e d r e c e i v e r and h i s s t a f f . The

f a c t s s e t f o r t h h e r e i n do n o t r e p r e s e n t e v e r y f a c t known t o me o r

e v e r y f a c t d e v e l o p e d d u r i n g t h e c o u r s e o f t h e i n v e s t i g a t i o n ,

which i s o n g o i n g . Due t o t h e ongo ing n a t u r e o f t h e

i n v e s t i g a t i o n , I r e s p e c t f u l l y r e q u e s t t h a t t h i s a f f i d a v i t a s w e l l

a s t h e c r i m i n a l c o m p l a i n t and any a r r e s t w a r r a n t i s s u e d by t h e

C o u r t i n t h i s m a t t e r , be s e a l e d u n t i l f u r t h e r O r d e r o f t h i s Cour t

o r o t h e r C o u r t .

A p p l i c a b l e Law

4. S e c t i o n 371 o f T i t l e 18 p r o v i d e s :

I f two o r more p e r s o n s c o n s p i r e e i t h e r t o commit anyo f f e n s e a g a i n s t t h e Uni ted S t a t e s , o r t o d e f r a u d t h e

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Uni ted S t a t e s , o r any agency t h e r e o f i n any manner o rf o r any p u r p o s e , and one o r more o f such p e r s o n s do anya c t t o e f f e c t t h e o b j e c t o f t h e c o n s p i r a c y , each s h a l lbe f i n e d u n d e r t h i s t i t l e o r impr i soned n o t more t h a nf i v e y e a r s , o r b o t h .

S e c t i o n 1503 o f T i t l e 18 p r o v i d e s i n p e rt in e n t p a r t :

Whoeverimpedes , o rimpede , t h ep un is hed as

. c o r r u p t l y . . i n f l u e n c e s , o b s t r u c t s ,endeavor s t o i n fl u en ce , o b s t r u c t , o rdue a d m i n i s t r a t i o n o f j u s t i c e , s h a ll bep r o v i d e d i n s u b s e c t i o n ( b ) .

o r

S e c t i o n 1512 o f T i t l e 18 p r o v i d e s i n p e r t i n e n t p a rt :

Whoever c o r r u p t l y . . o b s t r u c t s , i n fl u en ce s , o rimpedes any o f f i c i a l p r o c e e d i n g , o r a t t e m p t s t o do so ,s h a l l be f i n e d u n d e r t h i s t i t l e o r i m p r i s o n e d n o t moret h a n 20 y e a r s , o r b o t h .

S e c t i o n 1512 f u r t h e r p r o v i d e s , i n p e r t i n e n t p a r t , t h a t "an

o f f i c i a l p r o c e e d i n g need n o t be pend ing o r a b o u t t o be i n s t i t u t e d

a t t h e t ime o f th e o f f e n s e . n Moreove r, S e c t i o n 1512

p r o v i d e s t h a t t h e r e i s " e x t r a t e r r i to r ia l F e d e r a l j u r i S d i c t i o n

o v e r an o f f e n s e u n d e r t h i s s e c t i o n . "

Background o f th e I n v e s t i g a t i o n

5 . I am working w i t h o t h e r FB I a g e n t s on an i n v e s t i g a t i o n

o f v ar io u s i n d iv id u al s and e n t i t i e s , i n c l u d i n g t h e Michae l

Kenwood Group, LLC ( h e r e a f t e r , t h e "MK Group" ) , an a f f i l i a t e d

e n t i t y c a l l e d Michae l Kenwood C a p i t a l Management , LLC ( h e r e a f t e r ,

"MK C a p i t a l " ) and o t h e r r e l a t e d e n t i t i e s and hedge funds , as w e l l

a s a n o t h e r e n t i t y t h a t i s a r e g i s t e r e d i n v e s t m e n t a d v i s e r and

he d ge funds i t a d v i s e s . The i n v e s t i g a t i o n has r e v e a l e d t h a t some

o f t h e hedge funds i n v o l v e d i n c l u d e t h e S h o r t Term L i q u i d i t y Fund

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( h e r e a f t e r , "STLF"), t h e MK Venezue la Fund ( h e r e a f t e r , t h e "MK VZ

Fund") , t h e MK S p e c i a l O p p o r t u n i t i e s Fund ( h e r e a f t e r , "SOF"), and

o t h e r s . The v a r i o u s hedge funds i nvo l ved i n t h i s i n v e s t i g a t i o n ,

i n c l u d i n g t h e ones i d e n t i f i e d i n t h e p re v i ou s s en te nc e , w i l l be

r e f e r r e d t o h e r e i n c o l l e c t i v e l y a s t h e "Funds" .

6. The i n v e s t i g a t i o n i s focused on a f r a u d scheme

o c c u r r i n g i n C o n n e c t i c u t and e l s e w h e r e from a p p r o x i m a t e l y 2006 t o

2011 t o d e f r a u d i n v e s t o r s and c r e d i t o r s o f v a r i o u s hedge funds

a d v i s e d by t h e s e and r e l a t e d e n t i t i e s . P a r t o f t h e i n v e s t i g a t i o n

i s f o c u s e d on a pe r son who w i l l be r e f e r r e d t o h er e i n a s a

c o n f i d e n t i a l human so u rce ( th e "CHS"), GUILLEN and o t h e r s ,

i n c l u d i n g a fo rmer Venezue lan b a n k e r l i v i n g i n F l o r i d a who w i l l

be r e f e r r e d t o h e r e i n a s t h e "Middleman." GUILLEN i s an

a c c o u n t a n t i n Venezue la and p r a c t i c e s i n a f i rm a s s o c i a t e d with a

m a j o r i n t e r n a t i o n a l a cc ou n tin g f ir m. As s e t f o r t h i n g r e a t e r

d e t a i l below, th e i n v e s t i g a t i o n shows t h a t t h e CHS, GUILLEN, t h e

Middleman and o t h e r s a l l p a r t i c i p a t e d i n a c o n s p i r a c y t o f a l s i f y

an a s s e t v e r i f i c a t i o n l e t t e r on b e h a l f o f STLF which p u r p o r t e d t o

v er i f y t h a t STLF was owed money by v a r i o u s Venezue lan companies .

The l e t t e r a t t e s t e d t h a t t h e l o ans i n t o t a l amounted t o a t l e a s t

app rox i ma te l y $275 m i l l i o n , when t h e CHS, GUILLEN and t h e

Middleman a l l knew t h a t no such l o a n s were owed t o STLF. The

l e t t e r , which w i l l be r e f e r r e d t o h e r e i n a s t h e " F i c t i t i o u s A s s e t

Ve r if ic a t i o n L e t te r ," was f a l s e .

4

The c o n s p i r a c y i n c l u d e d

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p r o v i d i n g t h e F i c t i t i o u s A s s e t Ve r if ic a ti o n L e t te r t o t h e SEC i n

t h e c o u r s e o f i t s o f f i c i a l i n v e s t i g a t i o n . The c o - c o n s p i r a t o r s

a l s o c a u s e d t h e F i c t i t i o u s A s s e t Ve r if ic a ti o n L e t te r t o be

s u p p l i e d t o t h e b us i n es s a d v i s e r s a p p o i n t e d by t h e d i s t r i c t c o u r t

i n c o n n e c t i o n w i t h a c i v i l s u i t f i l e d by t h e SEC and s t y l e d SEC

v . 11 1 a r r a m e n d i , e t a l . , 3 :11 -cv -00078 (JBA) ( h e r e a f t e r , t h e "SEC

Act ion" )

7. Dur ing t h e c o u r se o f t h e i n v e s t i g a t i o n , t h e CHS

approached t h e FBI t o p r o v i d e i n f o r m a t i o n c o n c e r n i n g a scheme t o

d e f r a u d r e l a t i n g t o t h e Funds . Th e CHS h as a d m i t t e d d i r e c t i n g

t h e scheme t o d e f r a u d . Th e CHS has p r o v i d e d i n f o r m a t i o n i n t h e

g o v e r n m e n t ' s i n v e s t i g a t i o n and i s e x p e c t e d t o e n t e r a p l e a o f

g u i l t y t o v a r i o u s f e d e r a l f e l o n y c h a rg e s , i n c l u d i ng f ra ud cha rges

an d c o n s p i r a c y t o o bs t r u ct j u s t i c e , t o o b s t r u c t an o f f i c i a l

p r o c e e d i n g , and t o d e f r a u d , among o t h e r s , t h e SEC. The CHS hopes

t h a t t h e i n fo rm a tio n he has p r o v i d e d w i l l be c a l l e d t o t h e

a t t e n t i o n o f t h e s e n t e n c i n g c o u r t a t t h e t ime o f s en te nc in g. The

i n f o r m a t i o n p r o v i d e d by t h e CHS r e l a t i n g t o GUILLEN, t h e

Middleman an d o t h e r s h as been c o r r o b o r a t e d by, among o t h e r

t h i n g s , p u b l i c r e c o r d s , p r e l i m i n a r y d r a f t t ra n s l a t io n s o f

c o n s e n s u a l r e c o r d i n g s , e m a i l and t e x t communica t i ons , bank

r e c o r d s and t h e F B I ' s c r i m i n a l i n v e s t i g a t i o n .

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Th e SEC I n v e s t i g a t i o n and Lawsu i t

8 . Th e SEC i s a f e d e r a l government agency a u t h o r i z e d by

law t o i n v e s t i g a t e p o s s i b l e v i o l a t i o n s o f s e c u r i t i e s l aws ,

conduc t o f f i c i a l enfo rcemen t i n v e s t i g a t i o n s , and f i l e c i v i l

a c t i o n s t o p r o t e c t i n v e s t o r s i n c on ne ct i on w it h t h e purchase and

s a l e o f s e c u r i t i e s .

9. Beginn ing i n 2010, t h e SEC, as p a r t o f i t s o f f i c i a l

i n v e s t i g a t i v e and enfo rcemen t a u t h o r i t y , s o u g h t i n f o r m a t i o n and

documenta t ion from t h e CHS and t h e MK Group i n an o f f i c i a l SEC

e n f o r c e m e n t m a t t e r b e a r i n g SEC F i l e # B-2507. As p a r t o f i t s

e n f o r c e m e n t a u t h o r i t y , t h e SEC s e r v e d a sUbpoena f o r r e c o r d s upon

t h e MK Group. I n December 2010 and J a n u a r y 2011, th e SEC

conduc ted an e n f o r c e m e n t - d i r e c t e d r ev iew o f t h e MK Group and

r e l a t e d e n t i t i e s as p a r t o f i t s o f f i c i a l e n f o r c e m e n t

i n v e s t i g a t i o n . I n o r a b o u t e a r l y J a n u a r y 2011, t h e CHS caused

t h e F i c t i t i o u s A s s e t Ve r i f i c a t i o n L e t t e r t o be prov ided t o th e

SEC, i n f u r t h e r a n c e o f t h e c o n s p i r a c y .

10. On o r a b o u t J a n u a r y 14 , 2011, t h e SEC f i l e d t h e SEC

A c t i o n . The SEC a l l e g e d , among o t h e r c h a rg e s , t h a t i n v e s t o r

funds were m i s a p p r o p r i a t e d from STLF and t h e MK VZ Fund. Th e SEC

s o u g h t , among o t h e r r e m e d i e s , an i n j u n c t i o n and an a cc ou nt in g o f

i n v e s t o r funds . Subsequen t t o t h e f i l i n g o f t h e SEC A c t i o n , t h e

c o u r t a p p o i n t e d , and s o u g h t i n p u t from, b u s i n e s s a d v i s e r s and a

r e c e i v e r t o a s c e r t a i n t h e a s s e t s and l i a b i l i t i e s o f th e hedge

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funds a f f i l i a t e d w i t h t h e MK Group, among o th e r t a sk s.

The Scheme t o Def raud and t h e C o n s p i r a c y

11 . I n t h e c o u r s e o f t h e F B I ' s i n v e s t i g a t i o n , t h e CHS,

t h r o u g h c o u n s e l , r e q u e s t e d an o p p o r t u n i t y t o meet w i t h t h e FB I

an d th e U.S. A t t o r n e y ' s O ff i c e f o r t h e D i s t r i c t o f C o n n e c t i c u t .

The CHS h as s i n c e begun p r o v i d i n g i n f o r m a t i o n t o t h e government

r e l a t i n g t o i t s i n v e s t i g a t i o n . Th e CHS h as a d m i t t e d , among o t h e r

t h i n g s , t o engag ing i n a scheme and a r t i f i c e t o d e f r a u d i n v e s t o r s

and c r e d i t o r s o f t h e Funds and r e l a t e d e n t i t i e s , and c o n s p i r i n g

w i t h o t h e r s , i n c l u d i n g GUILLEN and t h e Middleman, t o o bs t r u ct

j u s t i c e , t o o b s t r u ct an SEC i n v e s t i g a t i o n and t o d e f r a u d t h e SEC.

The CHS h a s p r o v i d e d a s u b s t a n t i a l amount o f i n f o r m a t i o n , n o t a l l

o f which i s c o n t a i n e d i n t h i s a f f id a v i t. R a t h e r, t h is a f f id a v i t

i n s u p p o r t o f a c r i m i n a l compla in t a g a i n s t GUILLEN s e t s f o r t h

o n l y t h a t i n f o r m a t i o n n e c e s s a r y t o e s t a b l i s h p r o b a b l e c a u s e i n

s u p p o r t o f t h e two-coun t c r i m i n a l c o m p l a i n t a g a i n s t GUILLEN.

12 . A ccord in g t o t h e CHS, one o f t h e p r i n c i p a l g o a l s o f t h e

scheme t h e CHS engaged i n was t o d i s g u i s e t h e f a c t t h a t Funds and

r e l a t e d e n t i t i e s t h e CHS managed and a d v i s e d have o u t s t a n d i n g

l i a b i l i t i e s t h a t g r e a t l y exceed t h e c u r r e n t v a lu e o f t h e i r

a s s e t s , e x p o s i n g i n v e s t o r s and c re d i t o r s t o t h e r i s k o f s U f f e r i n g

l o s s e s p o t e n t i a l l y as h ig h a s hundreds o f m i l l i o n s o f d o l l a r s .

13. The CHS h as a d v i s e d , among o t h e r t h i n g s , t h a t t h e f r a u d

t ook p l a c e from i n o r a b o u t 2006 t o i n o r a b o u t Februa ry 2011.

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The CHS h as adv i s ed t h a t , a s p a r t o f t h e f r a u d , t h e CHS, among

o t h e r t h i n g s : (a ) u s e d some o f t h e money p rov id ed by new

i n v e s t o r s t o p a y o u t r e t u r n s t o o t h e r i n v e s t o r s ; and (b ) c r e a t e d

c e r t a i n f r a u d u l e n t documents t o mis l ead and dece ive c e r t a i n

i n v e s t o r s and t h e SEC a b o u t t h e e x i s t e n c e and e x t e n t o f th e

a s s e t s o f t h e Funds and r e l a t e d e n t i t i e s .

The Conspi racy t o Obs t ruc t and t h e O b s t r u c t i o n o f t h e SEC

14. Dur ing 2010, i n an e f f o r t t o f o r e s t a l l d i s c o v e r y o f th e

h o l e i n t h e a s s e t s o f t h e hedge funds t h e CHS ad v is ed , th e CHS

a gr eed w ith GUILLEN, th e Middleman and o t h e r s t o f a b ri c a t e

hundreds o f m i l l i o n s o f d o l l a r s o f a s s e t s p u r p o r t e d l y h e l d by

STLF.

1 5 . S p e c i f i c a l l y , t h e CHS has adv i sed t h a t th e CHS, GUILLEN

and t h e Middleman a g reed t o c r e a t e t h e F i c t i t i o u s A s s e t

Ve r if ic a t i o n L e t t e r t h a t f a ls e l y r e p r e s e n t e d t h a t th e STLF had a t

l e a s t $275 m i l l i o n i n c r e d i t s a s a r e s u l t o f o u t s t a n d i n g l oans .

Th e l e t t e r , which I have rev iewed , was on t h e accoun t i n g f i r m ' s

l e t t e r h e a d . The CHS sought t o c r e a t e t h i s f a l s e document i n an

e f f o r t t o m is l ea d and de f r aud i n v e s t o r s and anyone q u e s t i o n i n g

t h e v a l u e o f STLF's a s s e t s , and t h en sought t o u se i t t o convince

t h e SEC, among o t h e r s , t h a t STLF had a d e q u a t e c a p i t a l t o p r o t e c t

i t s i n v e s t o r s . I n o r a b o u t e a r l y J an ua ry 2011, t h e CHS caused

t h i s l e t t e r t o be p r o v i d e d t o t h e SEC i n f u r t h e r a n c e o f t h e

consp i r acy t o o b s tr uc t.

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s e p a r a t e l e t t e r t h e CHS had c r e a t e d r e q u e s t i n g a r ev iew o f t h e

bogus l o a n s by GUILLEN, t o be s u p p l i e d t o t h e SEC. The l a t t e r

l e t t e r was c r e a t e d by th e CHS on STLF l e t t e r h e a d and b a c k d a t e d so

t h a t i t p u r p o r t e d t o be a r e q u e s t from him t o t h e a c c o u n t a n t f o r

a v e r i f i c a t i o n o f o u t s t a n d i n g r e c e i v a b l e s o f t h e STLF.

19. T h e r e a f t e r , on o r a b o u t J a n u a r y 10 , 2011, t h e SEC

c o n t a c t e d GUILLEN i n an e f f o r t t o t r y t o c on fi rm w he th er t h e

a s s e t s l i s t e d i n t h e F i c t i t i o u s A s s e t Ve r if ic a t i o n L e t te r were

r e a l . Accord ing t o t h e SEC, a t t h e t ime o f t h e c a l l , GUILLEN was

v a c a t i o n i n g i n Miami, F l o r i d a . The CHS has a d v i s e d t h a t , when

GUILLEN l e a r n e d o f t h e SEC's i nvo lvemen t , he had e x p r e s s e d t o t h e

CHS h i s c o n c e r n a b o u t d ea lin g w it h t h e SEC, g i v e n t h a t h i s

a c c o u n t i n g f i rm was c on ne cte d w it h a l a r g e i n t e r n a t i o n a l

a c c o u n t i n g f i r m . N e v e r t h e l e s s , when t h e SEC c o n t a c t e d GUILLEN,

GUILLEN made f u r t h e r f a l s e s t a t e m e n t s c o n f i r m i n g t h e e x i s t e n c e o f

t h e l o a n p o r t f o l i o r e f e r e n c e d i n t h e F i c t i t i o u s A s s e t

Ve r i f ic a t i o n L e t t e r , when he w e l l knew t h a t no such a s s e t s

e x i s t e d .

20. During h i s c o n v e r s a t i o n w i t h t h e SEC, GUILLEN t o l d th e

SEC t h a t he wa s i n t r o d u c e d t o t h e CHS by t h e Middleman, whom

GUILLEN knew because o f t h e Midd leman ' s p r i o r work a t a f i n a n c i a l

i n s t i t u t i o n i n Venezue la . GUILLEN t o l d t h e SEC t h a t t h e CHS and

he had spoken abou t t h e CHS's d e s i r e f o r GUILLEN t o per fo rm

c e r t a i n a g r e e d upon s e r v ic e s t o v e r i f y th e e x i s t e n c e o f t h e

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l o a n s . GUILLEN t o l d t h e SEC t h a t t h e Middleman had p rov ided him

wi th t h e l i s t o f companies i n t h e l o a n p o r t f o l i o , which l i s t

i n c l u d e d t h e company a d d r e s s e s and t h e amount o f e a c h l o an .

GUILLEN f u r t h e r a d v i s ed t h e SEC t h a t he had spoken t o a l l t h e

companies t h a t had o u t s t a n d i n g l o a n s w i t h th e CHS's group and

t h a t he was w ai t in g f o r t h e i r r e sponse s t o conf i rm th e l o a n s .

GUILLEN t o l d t h e SEC t h a t he had r e c e i v e d s e v e r a l i n fo rma l

l e t t e r s and s e v e r a l loan agreements . GUILLEN t o l d th e SEC t h a t ,

f o r example , one company i n t h e l o an p o r t f o l i o t h a t had a $5 6

m i l l i o n l o a n b a l a n ce had n ot p ro vid ed him wi th documents , b u t

t h a t he had conf i rmed t h e lo an b ala nc e by t e l ephone . He f u r t h e r

a d v i s e d t h e SEC t h a t none o f t h e c om pa nie s h ad i n d i c a t e d t h a t

t h e r e wa s n o t a l o an agreement . GUILLEN a l s o t o l d t h e SEC t h a t

he had s t a r t e d c o n t a c t i n g th e companies i n Sep tember o r October

2010. Accord ing t o t h e SEC, GUILLEN was unable a t th e t ime o f

t h e i n t e r v i e w t o p rov i d e any names o f any pe r sons a t t h e

companies wi th whom he had spoken a b o u t t h e l o a n s , b u t i n d i c a t e d

he would do so a t a l a t e r d a t e .

21. I n f u r t h e r a n c e o f t h i s c o n s p i r a c y t o o b s t r u c t , on o r

a b o u t J a nua ry 12, 2011, t h e Middleman s e n t an e m a i l message t o

t h e CHS g i v i n g t h e CHS i n s t r u c t i o n s on where t o wire money t h a t

was p a r t o f t h e payo ff f o r t h e F i c t i t i o u s A sse t Ve r i f i c a t i o n

L e t t e r . Th e e m a i l sought payment o f $1 .9 m i l l i o n t o an a c c o u n t

a t Bank o f America i n th e name o f an e n t i t y c a l l e d JEISLO Real

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E s t a t e I nve s t men t s LLC ("JEISLO") . A p r e l i m i n a r y d r a f t

t r a n s l a t i o n o f th e e m a i l i n d i c a t e s t h a t t h e Middleman adv i sed t h e

CHS t h a t t h e Middleman was work ing on a p ro po sa l i nv ol vi ng a r e a l

e s t a t e m a t t e r , and t h a t t h e i nve s tm en t would be r e f l e c t e d as

t h a t . The p r e l i m i n a r y d r a f t t r a n s l a t i o n r e f l e c t s t h a t th e

Middleman p r o v i d e d t h e bank a c c o u n t d e t a i l s , i n c l u di n g th e

a ccoun t number, t h e name o f JEISLO, and t h e add re s s o f JEISLO,

which t h e ema i l r e f l e c t s wa s 1872 NW 139 Av , Pembroke Pines , FL

33028. The p r e l i m i n a r y d r a f t t r a n s l a t i o n a l s o r e f l e c t s t h a t the

ema i l n o t e s a t th e end t h a t t h e r ea son f o r t h e t r a n s fe r r e l a te d

t o a f i n a n c i n g agreement SECTION 8 p r o j e c t .

22. The CHS has adv i s ed , among o t h e r t h i n g s , t h a t the CHS

d i d n o t a c t u a l l y have a l oan p o r tf o l i o i n Venezue la wi th a l i s t

o f companies and d i d n o t p r e p a r e a l i s t o f such l o ans f o r

GUILLEN. Ra the r, as GUILLEN adv i sed t h e SEC, I have p robab l e

caus e t o b e l i e v e , and do b e l i e v e t h a t t h e Middleman, a fo rmer

banke r i n Venezue la , c r e a t e d t h e l i s t o f such f i c t i t i o u s l o a ns

and t hen f u r n i s h e d th e l i s t t o GUILLEN.

23. Accord ing t o t h e CHS, t h e cove r s t o r y i n th e

Middleman ' s e m a i l i s com ple t e l y f a l s e as t h e CHS has admi t t ed

t h a t t h e r e was no r e a l e s t a te f i n a n c i n g o r r e a l e s t a te d e a l o f

any k i n d be tween t h e CHS and t h e Middleman o r JEISLO. R a the r,

t h e CHS ha s adv i sed t h a t t h e r e q u e s t f o r t h e $1 .9 m i l l i o n was

p a r t i a l payment o f t h e more t han $3 m i l l i o n t h e CHS agreed t o pay

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t o have o t h e r s c r e a t e and f r a u d u l e n t l y s u b s t a n t i a t e t h e phony

STLF a s s e t s d e s c r i b e d i n t h e F i c t i t i o u s Ass e t Ve r i f i c a t i o n

L e t t e r .

24. The CHS has admi t t ed t h a t i n o r d e r t o c a r r y ou t t h e

consp i r acy, payments needed t o be made. The CHS h as adv i s ed t h a t

t h e CHS r e q u e s t e d t h a t a t h i r d p a r t y make t h e payment . The CHS

h a s a l s o a d v i s e d t h a t t h e CHS unde r s t oo d t h a t t h e t h i r d p a r t y

made t h i s payment from an a c c o u n t i n S w i t z e r l a n d . Th e CHS h as

a l s o r e p o r t e d t h a t th e CHS u nd e r s tood t h a t t h e t h i r d p a r t y made

two payments , one f o r a p p r o x i m a t e l y $1 m i l l i o n and th e second f o r

a p p r o x ima t e ly $250 ,000 .

25. Th e i n v e s t i g a t i o n shows t h a t JEISLO i s a F l o r i d a e n t i t y

w i t h a n add re s s l i s t e d as 1872 NW 139th Ave. , Pembroke Pines , FL

33028. The l i s t e d owner o f JEISLO i s a woman whose i n i t i a l s a r e

B.B. The add re s s l i s t e d f o r JEISLO i s t h e home a d d r e s s o f B.B.

Th e i n v e s t i g a t i o n a l s o r e v e a l s t h a t B.B. i s t h e w i f e o f t h e

Middleman, and t h a t t h e Middleman ha s been l i v i n g a t t h e add re s s

l i s t e d f o r JEISLO s i n c e ap p rox ima te ly 2009.

26. I have rev iewed bank r e c o r d s f o r an a c c o u n t a t Bank o f

America h e l d i n t h e name o f "JEISLO R e a l E s t a t e Inves tment LLC"

and e n d i n g i n 9422 ("JEISLO Account #1" ) . The r eco rds r e f l e c t

t h a t t h e a c c o u n t wa s opened by B.B. i n o u r a bo ut F eb ru ary 2010.

Th e add re s s on t h e a c c o u n t s t a t e m e n t s f o r JEISLO i s 1872 NW 139 t h

Ave. , Pembroke Pines , FL 33028-2839.

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The bank r eco rds f o r t h i s

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a ccoun t f u r t h e r r e f l e c t t h a t , on o r a b o u t J an ua ry 24, 2011, t h i s

JEISLO a c c o u n t r e c e i v e d a wire t r a n s f e r o f $1 ,000 ,000 from an

o r i g i n a t i n g bank i n Geneva, Swi t ze r l and . The bank r eco rds

r e l a t i n g t o t h i s incoming w i r e c o n t a i n t h e f o l l owing n o t a t i o n :

"Or ig t o Benef i n f o : LOAN FOR REAL ESTATE INVESTMENT." The

r e c o r d s f u r t h e r r e f l e c t t h a t , by t h e end o f t h e f o l l owing day,

J a n u a r y 25, 2011, app r ox i ma te ly $996,500 wa s t r a n s f e r r e d o u t o f

t h i s accoun t .

27. The bank r eco rds f u r t h e r r e f l e c t t h a t a p p r o x i m a t e l y

$750,000 o f t h e money r e f e r e n c e d i n t h e preced ing pa rag raph wa s

t r a n s f e r r e d on J a n u a r y 24, 2011 from JEISLO Accoun t #1 t o ano the r

Bank o f America a c c o u n t i n t h e name o f "JEISLO R e a l E s t a t e

I n v e s t m e n t LLC" and end ing i n 7068 ("JEISLO Account # 2 " ) . JEISLO

Account #2 a l s o h as a m a i l i n g add re s s on t h e s t a t emen t o f 1872 NW

139 t h Ave. , Pembroke P i n e s FL 33028-2839. Accoun t i n f o r m a t i o n

a v a i l a b l e t o d a t e s u g g e s t s t h a t t h i s a c c o u n t was opened on o r

a b o u t J an u a ry 13, 2011, th e day a f t e r t h e Middleman s e n t t h e

a b o v e - r e f e r e n c e d e m a i l t o t h e CHS s eek ing payment o f th e $1 .9

m i l l i o n . J u s t p r i o r t o th e t r a n s f e r o f $750,000 i n t o JEISLO

Account #2 from JEISLO A ccount #1, t h e b a l a n c e o f JEISLO Account

#2 was app rox im a te ly $100. M oreover, t h e r e c o r d s r e f l e c t t h a t ,

on J a nua r y 26, 2011, a wire t r a n s f e r o f app rox im a te ly $338,000

was s e n t from t h i s a c c o u n t t o an a c c o u n t a t Wachovia Bank. I n

a d d i t i o n , on J anua r y 25, 2011 and J anua ry 31, 2011, r e s p e c t i v e l y,

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$50,000 and $20,000 were w i r e d from JEISLO Account #2 back i n t o

t o JEISLO A ccount #1. The FBI i s c o n t i n u i n g t o i n v e s t i g a t e where

t h i s money went .

28. I have rev iewed p r e l i m i n a r y d r a f t t r a n s l a t i o n s o f

v a r i o u s c o n s e n s u a l l y r e c o rde d phone c a l l s and o t h e r

communica t ions i n v o l v i n g t h e CHS, GUILLEN a n d / o r t h e Middleman.

Those summaries i n c l u d e d i s c u s s i o n s r e l a t i n g t o t h e F i c t i t i o u s

A ss e t Ve r i f ic a t i o n L e t te r . I n sum and subs t ance , p a r t o f t h e

d i s c u s s i o n s concern t h e CHS and t h e Middleman a n d / o r th e CHS,

GUILLEN and t h e Middleman p lann ing t o make su re t h a t t hey t e l l a

c o n s i st e n t s to r y t o t h e SEC and t h e r e c e i v e r . They a l s o d i s c u s s

th e need t o comple te t h e s u p p o r t i n g d oc um e nt atio n s o t h a t th e

companies t h a t supposed ly have o u t s t a n d i n g l o ans t o STLF w i l l

s u p p o r t t h e s t o r y i f c o n t a c t e d by t h e SEC o r t h e r e c e i v e r .

29. Based on t h e f o rgo ing , t h e r e i s probab le c a u s e t o

b e l i e v e , and I do b e l i e v e , t h a t JUAN CARLOS GUILLEN ZERPA

c o n s p i r e d t o o b s t r u c t an o f f i c i a l SEC p r o c e e d i n g , t o o b s t r u c t

j u s t i c e and t o de f r aud , among o t h e r s , t h e SEC, i n v i o l a t i o n o f 18

U.S .C . 371, and commi t t ed , and knowingly a i d e d and a b e t t e d t h e

commiss ion o f , the cr ime o f o b s t r u c t i o n o f an o f f i c i a l

proceed ing , i n v i o l a t i o n o f 18 U.S .C . 1512 and 2.

Acc o rd i n g ly, I r e q u e s t t h a t a war ran t i s s u e f o r t h e a r r e s t o f

JUAN CARLOS GUILLEN ZERPA on such cha rges .

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30 . As n o t e d above , t h e c r i m i n a l i n v e s t i g a t i o n i s ongo ing .

A c c o r d i n g l y, t h e u n d e r s i g n e d r e q u e s t s t h a t t h i s A f f i d a v i t and t h e

accompanying Compla in t , a s w e l l a s any A r r e s t Warran t , be s e a l e d

i n t h e i n t e r e s t o f a v o i d i n g compromis ing t h e ongo ing

i n v e s t i g a t i o n , u n t i l f u r t h e r o r d e r o f t h e Cour t .

S u b s c r i b e d and sworn t o b e f o r e me on t h e 2nd day o f March2011 , a t B r i d g e p o r t , C o n n e c t i c u t .

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