LDS Bishop Indictment

8/2/2019 LDS Bishop Indictment

1/8

FELK.NZ0lZ4ARb P l : 3l

: . i r I ST [ t | 0T0 ! . ] i l T, rC I P0R T ,U l i $UNITEDSTATESOFAMERICA CriminalNO.3: 2CRGL Glo

VIOLATIONS:l8 U.S.C.$341 [MailFraud]18U.S.C.$343 [WireFraud]l8 U.S.C.$957 [Money aundering]INDICTMENT

TheGrand uryCharges:COUNTONE(Mail Fraud)

.Atall times elevanto this Indictment:TheDefendant

1. DefendantULIUSC. BLACKWELDER "BLACKWELDER") esidedn theState f Connecticutntil20l0.

2. Forapproximately ight years,ncludingduring heevents et orthbelow,BLACKWELDERwas heBranchPresidentr Bishopof theChurch f Jesus hristof Latter-daySaints ongregationocatedn Trumbull, onnecticutthe..church").

3. BLACKWELDERalsopurportedo be heorganizer f an nformal nvestmentpoolcalledFriend'snvestment roupor Friends f JuliusBlackwelder"Friend'snvestmentGroup").

4. BLACKWELDERcontrolledbankaccounts t certain inancial nstitutionshatwereengagedn and heactivitiesof whichaffectednterstate nd oreigncommerce,ncluding,

UNITEDSTATESDISTRICTCOURTDISTzuCTOF CONNECTICUTGRANDJURYB-1I-1

v.JULIUSC. BLACKWELDER

Bankendingn 5820.

Case 3:12-cr-00061-EBB Document 1 Filed 03/26/12 Page 1 of 8


2/8

The Victim-Investors5. The victim-investorsknown to the GrandJury consistedof approximatelysix

individuals, ffiffiY of whom were membersof the Church. Certainvictim-investorsknown to theGrandJury arerefened o in this Indictmentby their initialsas ollows: R.A., D.C., J.G.,D.H.,and J.L.

The Schemeand Artifice to Defraud6. From approximately2005 to the present, he precisedatesbeing unknown to the

GrandJury, in the District of Connecticutand elsewhere,he defendant,JULIUS C.BLACKWELDER, willfully, knowingly, and with intent to defraud,devisedand ntended odevisea schemeand artifice to defraudand to obtain money and property by meansof materiallyfalse and fraudulentpretenses,epresentations, nd promises.

7. The purposeof the schemewas for BLACKWELDER to enrichhimself bydefrauding ndividuals out of money and property by meansof materially false and fraudulentpretenses,epresentations,ndpromises.

8. It was part of the scheme hat BLACKWELDER falsely and fraudulentlyrepresentedo victim-investorsthat he was an experiencedand successful nvestor incommodities futurescontracts. In fact, as BLACKWELDER well knew, he was not a successfulcommodities nvestor,but insteadconsistentlyost money nvesting n commodities.

9. It was further part of the scheme hat BLACKWELDER falsely and fraudulentlyrepresentedo victim-investorsthat he would invest their funds in commoditiesfutures contracts,in some nstancesasa part of Friend's InvestmentGroup. BLACKWELDER falsely andfraudulently representedhese nvestments o be safe, n many instancesguaranteeinghe victim-

return on their investment. Inthevictim-investors'moneyasrepresented,nd nstead ivertedheir funds or his ownpersonal

2-



3/8

use andbenefit- BLACKWELDER used he diverted funds for various purposes, ncludingrepayinghis earliervictim-investors,constructinghis waterfronthome,and repayinghis lenders,including a TroubledAssetRelief program-recipientbank.

10. It was further part of the scheme hat BLACKWELDER prepared,executed,andprovided certaindocuments,ncluding, amongothers,promissorynotes,offering memoranda,and fraudulentaccountstatements,which contained alseand fraudulentrepresentationsovictim-investors.

I 1. It was furtherpart of the scheme hat BLACKWELDER causednumerousvictim-investors o investa total of morethan $400,000with him.

12. It was furtherpart of the scheme hat BLACKWELDER sought o lull victim-investors nto believing that their investment unds hadbeen nvestedas represented ndwouldbe repaid' He did this to preventand forestall the discoveryof his schemeand the diversion ofthevictim-investors' unds. In order o achieve his goal,BLACKWELDER issuedperiodicpayments o certainvictim-investors,provided accountupdates,and promisedadditionalpayments,when in fact, therewere no actual nvestmentsand BLACKWELDER sometimesusedportions of other victim-investors' funds to make such ulling payments.

Execution of the Schemeand Artifice13. On or about he dateset forth below, in the District of Connecticut and elsewhere,

for the purposeof executingand attempting to execute he aforementionedschemeand artifice todefraudand to obtain moneyand property by meansof materially falseand fraudulent pretenses,representations, nd promisesas describedabove, he defendant,JULIUS C. BLACKWELDER,knowingly did cause o be deliveredby United StatesMail andprivate commercial interstate

ions thereon,an item to be sentas set forth below, constituting acountof this Indictment:

-3-



4/8

Count Date From To Description2/17t11 BLACKWELDER Victim-investorR.A.

Mailed$500 ullingpaymentand etterpromising uturepayment.In violationof Title 18,United States ode, Sections 34r and,2.

COLTNTSTWO THROUGH SIX(Wire Fraud)14' The allegationscontained n Paragraphs1 through 12 of this Indictment are

repeatedand reallegedand incorporatedby referenceas thoughfully set forth herein.15. From approximately2005 to the present, he precisedatesbeing unknown to the

GrandJury, in the District of Connecticutand elsewhere,he defendant,JULIUS C.BLACKWELDER, willfully, knowingly, and with intent to defraud,devisedand intended odevisea schemeand artifice to defraudand to obtain money andproperty by meansof materiallyfalse and fraudulentpretenses,epresentations, nd promises,asmore fully set forth herein,andfor the purposesof executingsuchschemeand artifice, did knowingly transmit, and cause o betransmitted,by meansof wire communication in interstateand foreign commerce,certainwritings, signs,signals,andsounds.

16. Specifically,BLACKWELDER sentemails o victim-investorswith.the ntentand purposeof soliciting investments,and later with the intent and purposeof lulling them intobelieving that their investment unds had been nvestedasrepresented nd would be repaid. Hedid this in an effort to preventand forestall the discoveryof his schemeand to avoid the victim-investors eaming of the true useof their funds.

17. On or aboutthe datesset forth below, in the District of Connecticutandelseand artifice to defraudand to obtain money and property by meansof materially falseand

-4 -



5/8

fraudulent retenses,epresentations,ndpromises sdescribedbove,hedefendant,ULIUSC' BLACKWELDER,didknowingly ransmit,andcauseo be ransmitted,y means f wirecommunicationn interstatend oreigncommerce,ertainwritings,signs,signals, ndsounds,eachwiring asset orthbelowconstituting separateountof this ndictment:Count Date From To Descrintion

2 4t30t08 BLACKWELDER Victim-investorD.H.Lulling email epresentingfundshadbeen nvestedncommoditiesuturescontractsandpromising uturepayment.

J r0/24t08 BLACKWELDER Victim-investorD.C.Email representing unds hadbeen nvested n commoditiesfuturescontractsand solicitinsinvestment.

4 8tsn0 BLACKWELDER Victim-investorD.C. Lulling email attachingo'AccountUpdate."5 t0/23n1 BLACKWELDER Victim-investorJ.L. Lulling emailpromising uturepayment.6 12tr&nl BLACKWELDER Victim-investorD.H. Lulling emailpromising uturepayment.

All in violation f ritle 18,UnitedStatesode,sections1343and2.COLTNTS EVENTHROUGHNINE(Engagingn MonetaryTransactionsnPropertyDerivedFromSpecifiedUnlawfulActivities)

18. Theallegationsn Paragraphs hrough12 andParagraphs5 hrough16of thisIndictmentare ealleged nd ncorporated y reference s hough ully set orthherein.

19. Onor abouthedatesistedbelow, hedefendant,ULIUSC. BLACKWELDER,did knowinglyengage ndattempto engagen monetaryransactionsn criminallyderivedpropertyof a valuegreaterhan$10,000, ll involving inancial nstitutionshat areengagedn,

specifiedunlawful activity, that is mail fraud in violation of Title 18.United StatesCode.Section-5 -



6/8

l34l andwire fraud in violation of Title 18, United StatesCode,Section 1343,eachmonetarytransactionasset forth below constitutinga separate ount of this Indictment:Count Date FundsAttributable To:

Monetarv Transaction

7 10tr0t07 Victim-InvestorsD.H. andJ.G.Purchasef$15,000ashier'sheck 0595710with victim-investors'undswithdrawn romBLACKWELDER'sBankof Americaaccountendingn8702.

8 t0t10t07 Victim-InvestorsD.H.and .G.Purchasef $31,250ashier'sheck 0595711with victim-investors'undswithdrawn romBLACKWELDER'sBankof Americaaccountendingn8702.

9 7t3t08 Victim-InvestorR.A.Purchasef $15,000ashier'sheck#6309135with victim-investors'undswithdrawn romBLACKWELDER'sPeople's nitedaccountendingn 5820.

All in violationof ritle 18,United States ode, Sections1957and2.FORFEITURE ALLEGATIONS(ForfeitureRelatedTo Mail and Wire Fraud)

Upon conviction of oneor more of the mail fraud and wire fraud offensesalleged nCountsOne through Six of this Indictment, JULIUS C. BLACKWELDER shall forfeit to theUnited States f America,pursuanto Title 18,United StatesCode,Section931(a)(1)(C)andTitle 28, United StatesCode,Section 2461(c),all right, title, and nterest n any and all property,realor personal,hat constitutes r is derived rom proceedsraceableo violationsof Title 18,United StatesCode,Sections1341or l343,including but not limitedto the following:

Money Judgment:A sum of money equal o the total amount of any property,real or personal,whichconstitutes r is derived rom proceedsraceableo violationsof Title 18.United StatesCode,Sections 34l or 1343.If any of the above-describedorfeitable property, asa result of any act or omission of the

defendant,cannotbe locatedupon the exerciseofdue diligence,hasbeen ransferred,sold to, or

-6



7/8

deposited ith a third party,hasbeenplacedbeyondhe urisdictionof theCourt,hasbeensubstantially iminishedn value,or hasbeencommingledwith otherpropertyhatcannotbedividedwithoutdifficulty, t is the ntentof theUnitedStates, ursuanto Title 21,UnitedStatesCode,Section 53(p), s ncorporatedy Title28,UnitedStates ode,Section 461(c),to eekforfeitureof anyotherpropertyof thedefendant p to the valueof the orfeitable ropertydescribedbove.

All in accordanceithTitle 18,UnitedStates ode,Section 31(a)(1)s ncorporatedyTitle28,UnitedStates ode,Section 461(c),and ule32.2(a),Federalulesof CriminalProcedure.

FORFEITURE LLEGATIONS(ForfeitureRelatedTo MoneyLaundering)Uponconviction f oneor moreof themoneyaunderingffensesllegedn Counts

seven hroughNineof this Indictment, ULIUSc. BLACKWELDERshall orfeit to theUnitedStates f America, ursuanto Title 18,UnitedStates ode,Section 82(a)(l),all right, itle,andinterestn anyandall moneyandanyotherproperty, ealorpersonal,nvolved n suchoffensesin violationof Title 18,UnitedStates ode,Section1957,and,all ropertyraceableo suchproperty,ncluding utnot imited o the ollowins:

MoneyJudgment:A sumof moneyequal o the otalamountof any property, ealor personal,whichconstitutesr s derivedrom proceedsraceableo violations f Title 18.UnitedStatescode,sections 341 r 1343,ncluding utnot imited o $61,250.If anyof theabove-describedorfeitableproperty,asa resultof anyactor omissionof the

defendant,annot e ocated pon heexercise fduediligence, asbeenransferred,old o,ordeposited ith a third party,hasbeenplacedbeyond he urisdictionof theCourt,hasbeensubstantially iminishedn value,or hasbeencommingledwith otherpropertywhich cannotbe

-7 -



8/8

divided without difficulty, it is the intent of the United States,pursuant o Title 21, United StatesCode'Section853(p),as ncorporated y Title 18,United StatesCode,Sectiongt2(b),to seekforfeiture of any other property of the defendantup to the value of the forfeitable propertydescribed bove.

All in accordanceithTitle 18,UnitedStates ode,Section 82(a)(1),ndRule32.2(a),FederalRulesof Criminalprocedure.

A TRUEBILL

FOREPERSON

LINITEDSTATESOFAMERICA

DAVID B. FEINLINITEDSTATESATTORNEY

SPECIALASSISTANTUNITEDSTATESATTORNEYNATHAN N. FRANCIS

-8-

/s/


LDS Bishop Indictment

Documents

Transcript of LDS Bishop Indictment