Case 3:13-cr KI Document 1 Filed 07/16/13 Page 1 of 9 Page ID#: 1 UNITED STATES DISTRICT COURT DISTRICT OF OREGON PORTLAND DIVISION

Transcription

1 ;.I Case 3:13-cr KI Document 1 Filed 07/16/13 Page 1 of 9 Page ID#: 1 UNDER SEAL UNITED STATES DISTRICT COURT DISTRICT OF OREGON UNITED STATES OF AMERICA, PORTLAND DIVISION 0033~ Case No. 3:13-CR OQ 322br)\ L.- v. GEOFFREY S. WALSH, aka Geoff Walsh, Defendant. 18 u.s.c. 1343, 1014, 2, 1957, 982(a)(1), 982(a)(2}, 982(b) UNDER SEAL At all times material and relevant herein: THE GRAND JURY CHARGES: COUNT1 [WIRE FRAUD] (18 u.s.c. 1343) INTRODUCTION 1. Defendant GEOFFREY S. WALSH, aka Geoff Walsh, hereinafter referred to as GEOFFREY S. WALSH, was a resident of Lake Oswego, Oregon. Defendant WALSH had been employed as the Vice President, Business Development and Lending Services at The Bank of Oswego from approximately January 2, 2009, to May 2, Page 1

2 Case 3:13-cr KI Document 1 Filed 07/16/13 Page 2 of 9 Page ID#: 2 2. H.S. is a successful businessman who works and resides in the State and District of Oregon. 3. Terwilliger Curves LLC is an Oregon limited liability company authorized to do business in Oregon. Defendant GEOFFREY S. WALSH is a member of Terwilliger Curves LLC. 4. H.O.T. LLC is a limited liability company authorized to do business in Oregon. H.S. is the owner ofh.o.t. LLC Legacy Drive, La Quinta, California was a condominium owned by Terwilliger Curves LLC from approximately February 2011 to approximately June 27, Legacy Drive, La Quinta, California was a condominium owned by Terwilliger Curves LLC from approximately February 2011 to approximately May 8, THE SCHEME TO DEFRAUD 7. Beginning in or about May 2012, and continuing to the date of this Indictment, in the District of Oregon and elsewhere, defendant GEOFFREY S. WALSH knowingly devised and intended to devise a material scheme and artifice to defraud H.S., and to obtain money and property from H.S. by means of materially false and fraudulent pretenses, representations, and promises, knowing that the pretenses, representations, and promises were false and fraudulent when made, and by knowingly failing to disclose material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading. MANNER AND MEANS OF THE SCHEME TO DEFRAUD 8. In or about May 2012, defendant WALSH was introduced to H.S. through a mutual friend. Page2

3 Case 3:13-cr KI Document 1 Filed 07/16/13 Page 3 of 9 Page ID#: 3 9. It was part of the material scheme to defraud that in or about May 2012, defendant WALSH told H.S. that he (WALSH) needed to borrow $500,000 for the purchase of two condominiums in California that were in foreclosure. WALSH promised to repay $500,000 plus interest of $75,000 to H.S. 10. It was part of the material scheme to defraud that on May 3, 2012, defendant WALSH, acting on behalf of his limited liability company Terwilliger Curves LLC, and H.S. acting on behalf of his limited liability company H.O.T. LLC, signed a loan agreement and promissory note for $500, Under the terms of the loan agreement and promissory note, defendant GEOFFREY S. WALSH promised to repay to H.S. and H.O.T. LLC, the loan of $500,000 plus interest of$75,000 in one lump-sum payment on November 30, Under the terms of the loan agreement, if any payment of principle or interest was not paid within ten days of the due date, defendant WALSH agreed to pay H.S. a late fee offive percent (5%) of the past due amount, including the balance of all principle, interest, late fees, costs and expenses due after default or at maturity. 13. Under the terms of the loan agreement, after default, defendant WALSH agreed to pay interest of two percent (2%) per month on the outstanding principle, interest, expenses and costs of the loan. 14. Under the terms of the loan agreement, defendant GEOFFREY S. WALSH falsely represented that the collateral for the promissory note was two recorded Trust Deeds for real property located at Legacy Drive, La Quinta, California and at Legacy Drive, La Quinta, California Page3

4 Case 3:13-cr KI Document 1 Filed 07/16/13 Page 4 of 9 Page ID#: Under the terms ofthe loan agreement, defendant GEOFFREY S. WALSH falsely represented that all financial documents and information provided by WALSH to H.S. were true and correct, and fairly represented WALSH's financial condition. 16. Under the terms of the loan agreement, defendant GEOFFREY S. WALSH falsely represented that the loan proceeds were to be used for business or commercial purposes only. 17. As part of the material scheme to defraud, defendant GEOFFREY S. WALSH failed to disclose to H.S., the following material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading: a. That on the day he signed the loan agreement, he (WALSH) had been fired from his job at Bank of Oswego the day before; b. That he (WALSH) was going to use the $500,000 loan proceeds for his personal expenses rather than for business or commercial purposes, or for the purchase of condominiums in California; c. That at the time the loan from H.S. was made, he (WALSH) was in negotiations to sell at least one of the condominiums that was the collateral for the $500,000 loan. 18. Based on defendant WALSH'S false promises, representations, misstatements and omissions of material facts, on or about May 3, 2012, H.S. agreed to make the loan to defendant WALSH, and issued a cashier's check to WALSH in the amount of $500,000, drawn on Key Bank. Page4

5 Case 3:13-cr KI Document 1 Filed 07/16/13 Page 5 of 9 Page ID#: As part of the material scheme and artifice to defraud, on or about May 3, 2012, defendant WALSH had Key Bank personnel split the $500,000 cashier's check into two cashier's checks in the amounts of$160,000 and $340,000, the cashier's check for $160,000 was made payable to defendant WALSH. 20. On or about May 3, 2012, defendant WALSH deposited the cashier's check for $160,000 to his personal bank account at US Bank in Oregon. 21. As part of the material scheme and artifice to defraud, defendant WALSH sold the loan collateral located at Legacy Drive, La Quinta, CA 92253, on or about May 8, 2012, without the knowledge or consent ofh.s. 22. As part of the material scheme and artifice to defraud, defendant WALSH sold the loan collateral located at Legacy Drive, La Quinta, CA 92253, on or about June 27, 2012, without the knowledge or consent ofh.s. 23. It was part of the material scheme and artifice to defraud, that defendant WALSH failed to repay H.S. the $500,000 loan and the $75,000 interest on November 30, 2012, as he had promised. 24. As part of the material scheme and artifice to defraud, defendant WALSH sent a series ofimessages to H.S. from approximately November 2012 to July 2013, the purpose of which were to lull H.S. into a false sense of security that he (WALSH) would repay H.S. the loan principle, as well as the interest and penalties due on the loan. 25. On or about June 26,2013, defendant WALSH made a $300,000 lulling payment to H.S. after learning that H.S. had spoken to law enforcement authorities about his (WALSH) material scheme to defraud. PageS

6 Case 3:13-cr KI Document 1 Filed 07/16/13 Page 6 of 9 Page ID#: As ofthe date ofthis Indictment, defendant WALSH owes H.S. at least $200,000 plus interest and penalties on the loan. 27. On or about the dates listed below, in the District of Oregon and elsewhere, defendant GEOFFREY S. WALSH, for the purpose of executing the aforementioned material scheme and artifice to defraud, and attempting to do so, did knowingly transmit and cause to be transmitted in interstate or foreign commerce, the following wire transmissions: COUNT DATE DESCRIPTION OF FROM WIRE Electronic image of Key US Bank in Bank Cashier's Check Oregon # for $160,000 to GEOFFREY WALSH imessage from defendant Oregon WALSH to H.S imessage from defendant Oregon WALSH to H.S /13 imessage from defendant Oregon WALSH to H.S /13 imessage from defendant Florida WALSH to H.S. TO Key Bank in Oregon (via Los Angeles, CA) Oregon (via California or North Carolina Oregon (via California or North Carolina Oregon (via California or North Carolina) Oregon (via California or North Carolina) All in violation of Title 18, United States Code, Section I I II I II II I IIIII I I II I Page6

7 Case 3:13-cr KI Document 1 Filed 07/16/13 Page 7 of 9 Page ID#: 7 COUNTS 6 AND 7 [ENGAGING IN MONETARY TRANSACTIONS WITH CRIMINALLY DERIVED PROPERTY] (18 u.s.c. 1957) 28. The grand jury alleges each and every allegation contained in the Introduction and all paragraphs of Counts 1 through 5 of this Indictment, and incorporates them by reference as if fully set forth herein. 29. On or about the dates set forth below, in the District of Oregon and elsewhere, the defendant GEOFFREY S. WALSH, aka Geoff Walsh, did knowingly engage and attempt to engage in monetary transactions affecting interstate and foreign commerce, in criminally derived property of a value greater than $10,000, that is, the withdrawal of proceeds of specified unlawful activity, that is wire fraud, for the issuance of cashier's checks in the amounts listed below, each such monetary transaction being a separate count of this Indictment. COUNT DATE DESCRIPTION OF TRANSACTION 6 5/4112 Withdrawal of $29,000 for the issuance of cashier's check # in the amount of$29,000 drawn on US Bank, made payable to J.S. 7 5/7112 Withdrawal of $71, for the issuance of cashier's check # in the amount of$71, drawn on US Bank, made payable to G.S. All in violation of Title 18, United States Code, Section COUNTS [FALSE STATEMENTS ON LOAN APPLICATION AND AIDING AND ABETTING] (18 u.s.c. 1014, 2) 30. Between on or about July 13, 2006, and August 3, 2007, defendant GEOFFREY S. WALSH, aka Geoff Walsh (hereinafter referred to as defendant WALSH), was a loan officer at the Lake Oswego Branch of Golf Savings Bank, Lake Oswego, Oregon. Page 7

8 Case 3:13-cr KI Document 1 Filed 07/16/13 Page 8 of 9 Page ID#: Golf Savings Bank was a financial institution, the deposits of which were at all times material to Count 8 of this Indictment, insured by the Federal Deposit Insurance Corporation (FDIC). 32. Sterling Savings Bank is a financial institution, the deposits of which were at all times material to Count 8 of this Indictment, insured by the Federal Deposit Insurance Corporation (FDIC). On or about September 16, 2010, Golf Savings Bank became Sterling Savings Bank. 33. On or about June 20,2007, in the District of Oregon, defendant GEOFFREY S. WALSH knowingly made false statements, and aided and abetted the making ofthose false statements, for the purpose of influencing the actions of Golf Savings Bank, now known as Sterling Savings Bank, a financial institution whose deposits at the time were insured by the Federal Deposit Insurance Corporation (FDIC), in connection with a Uniform Residential Loan Application (URLA) submitted on behalf of bank customers J.T.M. and N.M.M., in that the defendant WALSH falsely stated on the J.T.M. and N.M.M. Uniform Residential Loan Application (URLA) that J.T.M. had a monthly salary of$35,000, when in truth and in fact, defendant WALSH then and there well knew that J.T.M. did not have a monthly salary of $35,000. All in violation of Title 18, United States Code, Sections 1014 and 2. FORFEITURE ALLEGATION Upon conviction of the offenses alleged in Counts 1 through 5 and Count 8 ofthis indictment, GEOFFREY S. WALSH, aka Geoff Walsh, defendant herein, shall forfeit to the United States, pursuant to Title 18, United States Code, Section 982(a)(2) any property, which constitutes or is derived from proceeds obtained directly or indirectly as a result of the violations. PageS

9 Case 3:13-cr KI Document 1 Filed 07/16/13 Page 9 of 9 Page ID#: 9 Upon conviction ofthe offenses alleged in Counts 6 and 7 of this indictment, GEOFFREY S. WALSH, aka Geoff Walsh, defendant herein, shall forfeit to the United States, pursuant to Title 18, United States Code, Section 982(a)(l) any property, real or personal, involved in the offense or any property traceable to such property. If any of the above-described forfeitable property, as a result of any act or omission of the defendant: (a) (b) (c) (d) (e) cannot be located upon the exercise of due diligence; has been transferred or sold to, or deposited with, a third party; has been placed beyond the jurisdiction of the court; has been substantially diminished in value; or has been commingled with other property which cannot be divided without difficulty; it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p) as incorporated by Title 18, United States Code, Section 982(b ), to seek forfeiture of any other property of said defendants up to the value of the forfeitable property described above. Dated this* day of July, A TRUE BILL. Presented by: S. AMANDA MARSHALL, OSB # United States Attorney District of Oregon c~~~ Assistant United States Attorney Page 9 ( I I!