COUNT 6
22. Paragraphs 17 through 21 are incorporated herein by reference.
23. From in or about August 2006 through in or about February 2007 in the District of Delaware and elsewhere, MATTHEW W. BROWN, defendant herein, willfully and knowingly, by the use of the means and instrumentalities of interstate commerce, directly and indirectly, used and employed manipulative and deceptive devices and contrivances, and aided and abetted the use and employment of manipulative and deceptive devices and contrivances, in violation of Title 17, Code of Federal Regulations, Section 240.10b-5, by: (a) employing devices, schemes, and artifices to defraud; (b) making or causing to be made untrue statements of material fact and omitting or causing to be omitted statements of material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and
(c) engaging in acts, practices, and courses of business which operated and would operate as a fraud and deceit upon other persons in connection with purchases and sales of Asia Global stock.
In violation of Title 15, United States Code, §§ 78j(b) and 78ff, Title 17, Code of Federal Regulations, § 240.10b-5, and Title 18, United States Code, § 2.
COUNT 7
24. Paragraphs 17 through 21 are incorporated herein by reference.
25. From in or about August 2006 through in or about February 2007, in the District of Delaware and elsewhere, MATTHEW W. BROWN, defendant herein, having devised and intending to devise a scheme and artifice to defraud, as set forth in paragraphs 17 through 23 above, and to obtain money and property by means of false and fraudulent pretenses, representations, promises, and the concealment of material facts, caused the issuance of a false and misleading press release about Asia Global's revenue figures, for the purposes of executing such scheme and artifice and attempting to do so, and did transmit and cause to be transmitted by means of wire communication in interstate commerce a communication, to wit, an August 24, 2006 communication from screen name "mattbrownfl" to "evotrader2005" via the instant messaging functionality of America OnLine in furtherance of this scheme and artifice to defraud, in violation of 18 U.S.C. §§ 1343 and 2.
COUNT 8
26. Paragraphs 19 through 23 are incorporated herein by reference.
27. From in or about August 2006 through in or about February 2007, in the District of Delaware and elsewhere, MATTHEW W. BROWN, defendant herein, did knowingly conspire with RD. and J.M., separately indicted co-conspirators, along with persons known and unknown to the grand jury to commit an offense against the United States, that is, laundering of monetary instruments in violation of Title 18, United States Code, Sections 1956(a)(1); that is, MATTHEW W. BROWN, did knowingly conspire with persons known and unknown to the grand jury to conduct financial transactions affecting interstate and foreign commerce - to wit, the movement in the national banking system of the proceeds from the public sale of securities-which property involved the proceeds of specified unlawful activity - i.e., violations of Title 15, United States Code, Sections 78j(b) and 78ff, Title 17, Code of Federal Regulations, Section 240.10b-5 (securities fraud) and 18 U.S.C. Section 371 (conspiracy to commit securities fraud), and 18 U.S.C. Section 1343 (wire fraud), as set forth in paragraphs 17 through 25 of this Indictment, incorporated herein - knowing that the transactions were designed in whole and in part to conceal and disguise the nature, location, source, ownership, and control of the property constituting the proceeds of specified unlawful activity; and that while conducting and attempting to conduct such financial transactions, knew that the property involved in the financial transactions constituted the proceeds of specified unlawful activity.
Manner and Means
28. It was a part of the conspiracy that defendant MATTHEW W. BROWN, P.D. and J.M., along with others known and unknown to the grand jury, sought to conceal and disguise both the co-conspirators' participation in the underlying fraud and the nature, source, ownership, and control of the proceeds obtained through that fraud. They did this in various ways, including laundering the proceeds of the sales of AAGH stock through various individuals and unindicted co-conspirators' personal and business accounts, converting a portion of the securities fraud proceeds into cash, and concealing proceeds obtained through the fraud outside of the continental United States.
Overt Acts
29. In furtherance of the conspiracy, MATTHEW W. BROWN, defendant herein, P.D. and J.M., along with others known and unknown to the grand jury, committed and caused to be committed the following overt acts, among others, in the District of Delaware and elsewhere:
a. On or about August 15, 2006, defendant BROWN communicated via the instant messaging function of America OnLine with P.D. regarding discussions with J.M. about how P.D. was to be paid for his participation in the market manipulation of Asia Global stock.
b. On or about August 28, 2006, $25,185 was sent from a Hong Kong bank account into P.D.'s Tetrix Financial Account xxxxx-5658 at Commerce Bank.
c. On or about August 30 and 31, 2006, an AIS employee requested that the account representative designation on all AIS accounts holding 2005 Plan Participants' shares of Asia Global be changed to representative number 2196.
d. On or about September 12, 2006, a fax from AIS was sent to North American Clearing, Inc., requesting that checks representing the proceeds of Asia Global stock sales out of accounts at AIS held in the names of the 2005 Plan Participants be sent to the attention of J.M.
e. On or about September 18, 2006, defendant BROWN communicated via the instant messaging function of America OnLine with P.D. regarding discussions with J.M. and with M.M., an unindicted co-conspirator, about how P.D. was to be paid for his participation in the market manipulation of Asia Global stock.
f. On or about October 31, 2006, defendant BROWN, P.D., and J.M. traveled to Costa Rica for the purpose, inter alia, of establishing an off-shore account to hide P.D.'s proceeds from market manipulation outside the United States.
g. On or about November 2, 2006, P.D. communicated via the instant messaging function of America OnLine with L.B. regarding P.D.'s off-shore account in Costa Rica, noting that his "set up is now 100% sec safe," and that "funds [P.D.'s payment for the market manipulation of Asia Global shares] aren't coming from him [unindicted co-conspirator, M.M.] or anyone having anything to do with asagh (sic)."
h. On or about December 6, 2006, defendant BROWN communicated via the instant messaging function of America OnLine with P.D. regarding P.D.'s prior and intended future use of P.D.'s account in Costa Rica to conceal proceeds from market manipulation.
All in violation of Title 18, United States Code, Section 1956(h).
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04/16/2009 3 REDACTED VERSION of 2 Indictment by USA as to Defendant Sealed. (rpg) (rpg). (Entered: 04/22/2009)
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Doc 3 OCR extract INDICTMENT
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