v. ) CAUSE NO. 3: 13-cr- -RLY-WGH ) JOHN CARTER, ) aka "Jay," ) ) Defendant. )

Transcription

1 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 1 of 13 PageID #: 1 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA EVANSVILLE DIVISION,,_., FILED,.."'.J,"-," ("' Tr')'-' ',.,.',,- '/",...J. ;)1,) r~ L, L~L:I..,;": i r" 1 H- < \,j!! ~ ", :'-/ ;{.;! ( ';!,,; 201 JI'hi\(.. ':1 7o!rn "'2 P'" ;, y. '+ UNITED STATES OF AMERICA, ) ) Plaintiff, ) ) v. ) CAUSE NO. 3: 13-cr- -RLY-WGH ) JOHN CARTER, ) aka "Jay," ) ) Defendant. ) INDICTMENT [18 U.S.C Conspiracy to Commit Money Laundering] The Grand Jury charges that: COUNT ONE Beginning at least as early as May, 2011, the exact date being unknown to the Grand Jury, and continuing up to and including November, 2012, in the Southern District ofindiana, Evansville Division, JOHN CARTER, aka "Jay," (hereinafter "CARTER") defendant, did knowingly conspire together and with diverse other persons, known and unknown to the Grand Jury, to conduct and attempt to conduct financial transactions affecting interstate commerce, knowing that the property involved in the financial transactions represented the proceeds of some form of unlawful activity, which transactions in fact involved the proceeds of specified unlawful activity, that is, the distribution of marijuana, knowing that the transaction was designed in whole and in part to conceal and disguise the nature, location, source, ownership and control of the proceeds of the specified unlawful activity; in violation of Title 18, United States Code, Section 1956(a)(l )(B)(I).

2 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 2 of 13 PageID #: 2 MANNER AND MEANS 1. Adrian Davison, Aaron Hardiman and others, not defendants herein, operated a marijuana distribution conspiracy, wherein the group regularly received multi-hundred pound quantities of the drug from sources in Mexico and Texas, including Jose "Tony" Ramos, not a defendant herein, and distributed the same in Evansville, Indiana. The distribution of marijuana yielded large amounts of cash proceeds to Davison, Hardiman and others. 2. CARTER agreed with Davison and Hardiman to launder the cash proceeds of their marijuana distribution through various purchases, financial transactions and ownership interest in businesses. OVERT ACTS In furtherance ofsaid conspiracy and to effect the objects thereof, the defendant and other individuals did commit, among others, the following overt acts: 1. The Overt Acts 1 through 22, set forth in Count One of the Indictment returned in Cause Number 3: 12-cr-25-RLY/WGH, in the United States District Court for the Southern District of Indiana, Evansville Division, are incorporated as though fully set forth herein. 2. In or around November, 2011, CARTER agreed to conceal the ownership ofa business property owned by Adrian Davison located at 105 South Kentucky Avenue, Evansville, Indiana. Davison originally purchased the property in 2006, together with another individual known to the Grand Jury. They purchased the property for $90, The purchase was on contract, for which Davison provided cash for the majority of the payments. Davison also provided $9, cash for a down payment on the property. The cash was derived from Davison's distribution of marijuana. On or about November 11,2011, CARTER transferred title -2

3 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 3 of 13 PageID #: 3 to the property to himself. CARTER recorded the date ofthe transfer as having occurred in July, On or about May 22,2011, CARTER deposited $7, cash into his account with Wood Forrest National Bank. On or about May 25, 2011, CARTER wire transferred $6, from the same account to Coparts, Inc., an on-line automobile auction business, for the purchase of a 2001 Cadillac automobile. Davison provided the cash, which constituted proceeds from the sale of marijuana, to CARTER for the purchase. The automobile was purchased to give to Jose Ramos in partial payment for marijuana previously fronted by Ramos to Davison. CARTER prepared sale documents in connection with the transfer to Ramos, which reflected the automobile being sold to a Ramos relative. 4. In or around December, 2011, CARTER purchased a hydraulic motor vehicle lift from Cll Inc., ofdetroit Lakes, Minnesota. Davison provided CARTER with approximately $18, cash for the purchase, derived from the sale and distribution of marijuana. CARTER deposited the cash into an account in the name of Shaggy's Towing, opened by CARTER, with Wood Forest National Bank in Evansville. CARTER structured the cash deposits into the bank account, making five deposits over a period of a week totaling $15,435.00, at three different branches of Wood Forest National Bank. CARTER then on or about December 23,2011, obtained a cashier's check, number , in the amount of$15, from Wood Forest National Bank, and mailed it to Cll Inc. for the purchase. The lift was delivered to the shop at 105 South Kentucky Avenue on or about February 13, In or around 2011, CARTER agreed with Davison to purchase, start and operate a local Evansville business with the proceeds of Davison and Hardiman's drug distribution activities. On or about November 18,2011, CARTER purchased the Shaggy's Towing vehicle -3

4 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 4 of 13 PageID #: 4 towing business for $12, On or about October 26 and 27, 2011, Carter deposited $18, cash, provided to him by Davison, and constituting the proceeds from drug distribution, into an account in CARTER's name at Wood Forest National Bank. Thereafter, CARTER moved money through various accounts CARTER had with the bank, before writing the check for $12, in payment for the Shaggy's Towing business. 6. CARTER purchased a 1991 Ford tow truck, VIN number 2FDLF47M2MCA92993, with $8, United States currency, from an individual known to the Grand Jury in Owensboro, Kentucky. Davison provided the cash, which constituted the proceeds of his drug distribution activities, to CARTER for the purchase. On or about December 5,2011, CARTER recorded the title to the vehicle with the Indiana Bureau of Motor Vehicles, in the name of Shaggy's Towing LLe. 7. In or around April, 2011, Davison and another individual known to the Grand Jury purchased a 1999 Chevrolet tow truck, VIN number 1GBJ6H1C7Xn 08201, in Evansville. Davison and the individual paid $18, cash for the vehicle. The cash was the proceeds of their drug distribution activities. In or around December, 2011, Aaron Hardiman purchased for $9, a part interest in the vehicle. In or around December, 2011, CARTER transferred title of the vehicle into the name of Shaggy's Towing. The original title paperwork, however, was seized by law enforcement during a November 2,2011, investigation at 5322 North Kerth Avenue. Thereafter, CARTER contacted the original seller and sought a duplicate title for the vehicle. The original seller obtained a duplicate title and provided it to CARTER. CARTER then transferred title of the vehicle into the name of Shaggy's Towing, LLe. CARTER falsely recorded that his wife purchased the vehicle for $7, on December 5, CARTER also forged a bill of sale, and an odometer disclosure statement for the transfer. -4

5 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 5 of 13 PageID #: 5 8. On or about April 27, 2012, CARTER purchased a 1999 Ford tow truck, vn'l" number 1FDAF56F1XEE10987, from Crouch's Wrecker of Kingston Springs, Tennessee. CARTER made the purchase with $8, United States currency and a check in the amount of $4, on an account at Wood Forest National Bank in the name of Shaggy's Towing. Davison and Hardiman provided CARTER with the money used for the purchase, which constituted the proceeds oftheir marijuana distribution activities. On or about May 25, 2012, CARTER transferred title of the vehicle to Shaggy's Towing. 9. In or around late 2011, CARTER approached Tri-State Towing, with a business proposition. CARTER suggested that if Tri-State Towing would partner with Shaggy's Towing, they could win the bid for the City ofevansville's vehicle towing contract. CARTER indicated that Shaggy's Towing was a minority and female owned business, partnering with which would improve their chances for obtaining the City contract. In or around January, 2012, CARTER entered into a written agreement with Tri-State Towing concerning the City contract. Thereafter, CARTER spoke on behalf of the bid before the City Public Safety Board, and offered to the Board the written agreement entered into between Shaggy's Towing and Tri-State Towing. Tri State Towing and Shaggy's Towing were awarded the City of Evansville towing contract on or about Apri125, On or about July 27, 2011, CARTER assisted Aaron Hardiman in opening a bank account with Wood Forest National Bank in the name "A Entertainment" at the Evansville bank branch. Earlier on the day in question, CARTER deposited $4, cash into one of his bank accounts with Wood Forest National Bank at the Newburgh bank branch. CARTER then transferred $4, from his account into Hardiman's account. -5

6 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 6 of 13 PageID #: In or around late 2011 or early 2012, Aaron Hardiman provided CARTER with approximately $50, cash, constituting the proceeds of Hardiman's marijuana distribution, for CARTER to hold and secure for him. Thereafter, Hardiman asked CARTER to return the money. CARTER returned to Hardiman approximately $42, cash. 12. In or around January, 2012, CARTER traveled to Owensboro, Kentucky, with Davison, to obtain a quantity of cash being held for Davison by Tiffany Nelson, not a defendant herein. The money, which belonged to Davison and was the proceeds of his drug distribution activities, was to be given to CARTER for further investment in Shaggy's Towing. Davison and CARTER took Nelson to the Chase Bank in Owensboro to retrieve $50, cash from a safe deposit box. When they arrived, they found the bank closed. Subsequently, Nelson went to the bank alone, and retrieved the $50, cash from the safe deposit box. CARTER later came to Nelson's residence and picked up the cash. All in violation of Title 18, United States Code, Section 1956(h). COUNT TWO [18 U.S.C Money Laundering] On or about December 5, 2011, the exact date being unknown to the Grand Jury, in the Southern District of Indiana, Evansville Division, JOHN CARTER, defendant, did knowingly conduct or cause to be conducted a financial transaction affecting interstate commerce, that is, JOHN CARTER purchased and titled in the name of Shaggy's Towing LLC a 1991 Ford tow truck, VIN number 2FDLF47M2MCA92993, with $8, United States currency, with the intent to conceal and disguise the nature, the location, the source, the ownership and control of the proceeds of specified unlawful activity, to wit: the distribution ofmarij uana, while knowing -6

7 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 7 of 13 PageID #: 7 that the funds involved in the financial transaction represented the proceeds of some fonn of unlawful activity and which in fact involved proceeds of specified unlawful activity, to wit: the distribution of marijuana, a Schedule I Controlled Substance, a violation of Title 21, United States Code, Section 841(a)(l) and 846. All in violation oftitle 18, United States Code, Sections I956(a)(l)(B)(I) and 2. COUNT THREE [18 U.S.C Money Laundering] On or about November 10,2011, the exact date being unknown to the Grand Jury, in the Southern District ofindiana, Evansville Division, JOHN CARTER, defendant, did knowingly conduct or cause to be conducted a financial transaction affecting interstate commerce, that is, JOHN CARTER received by transfer of warranty deed and transferred title to his name real property located at 105 South Kentucky Avenue, Evansville, Indiana, with the intent to conceal and disguise the nature, the location, the source, the ownership and control of the proceeds of specified unlawful activity, to wit: the distribution of marijuana, while knowing that the funds involved in the financial transaction represented the proceeds of some fonn of unlawful activity and which in fact involved proceeds of specified unlawful activity, to wit: the distribution of marijuana, a Schedule I Controlled Substance, a violation of Title 21, United States Code, Section 841 (a)(l) and 846. All in violation of Title 18, United States Code, Sections 1956(a)(l )(B)(I) and 2. -7

8 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 8 of 13 PageID #: 8 COUNT FOUR [18 U.S.C Money Laundering] On or about November 18, 2011, the exact date being unknown to the Grand Jury, in the Southern District of Indiana, Evansville Division, JOHN CARTER, defendant, did knowingly conduct or cause to be conducted a financial transaction affecting interstate commerce, that is, JOHN CARTER purchased a towing business, including a flat bed truck and the business name, Shaggy's Towing, with a check in the amount of $12,000.00, written on an account at Wood Forest National Bank, with the intent to conceal and disguise the nature, the location, the source, the ownership and control of the proceeds of specified unlawful activity, to wit: the distribution of marijuana, while knowing that the funds involved in the financial transaction represented the proceeds of some form of unlawful activity and which in fact involved proceeds of specified unlawful activity, to wit: the distribution of marijuana, a Schedule I Controlled Substance, a violation of Title 21, United States Code, Section 841(a)(1) and 846. All in violation of Title 18, United States Code, Sections 1956(a)(l )(B)(I) and 2. COUNT FIVE [18 U.S.C Money Laundering] On or about December 5, 2011, the exact date being unknown to the Grand Jury, in the Southern District ofindiana, Evansville Division, JOHN CARTER, defendant, did knowingly conduct or cause to be conducted a financial transaction affecting interstate commerce, that is, JOHN CARTER transferred title of a 1999 Chevrolet tow truck, VIN number 1GBJ6H 1C7XJ , to the name ofshaggy's Towing LLC, with the intent to conceal and -8

9 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 9 of 13 PageID #: 9 disguise the nature, the location, the source, the ownership and control of the proceeds of specified unlawful activity, to wit: the distribution of marijuana, while knowing that the funds involved in the financial transaction represented the proceeds of some form of unlawful activity and which in fact involved proceeds of specified unlawful activity, to wit: the distribution of marijuana, a Schedule I Controlled Substance, a violation of Title 21, United States Code, Section 841 (a)(l) and 846. All in violation of Title 18, United States Code, Sections 1956(a)( 1)(B)(I) and 2. COUNT SIX IStructuring a Currency Transaction - 31 U.S.c. 5313] Between December 16, 2011 and December 23, 2011, in the Southern District ofindiana, Evansville Division, JOHN CARTER, defendant, did knowingly and willfully for the purposes of evading the reporting requirements of Title 31, United States Code, Section 5313(a) and the regulation promulgated thereunder, 31 Code of Federal Regulations, Section , cause or attempt to cause a domestic financial institution to fail to file a Currency Transaction Report as required by Title 31, United States Code, Section 5313, for a currency transaction in excess of $10,000, by making or causing to be made multiple cash deposits ofless than $10,000 in United States currency to a bank account as more particularly described below: a. On or about December 16,2011, CARTER received approximately $18, cash, b. On or about December 16, 2011, CARTER deposited cash totaling $3, into an account, number XX709, with Wood Forest National Bank in the name of Shaggy's Towing, -9

10 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 10 of 13 PageID #: 10 c. On or about December 18,2011, CARTER deposited cash totaling $2, into an account, number XX0709, with Wood Forest National Bank in the name of Shaggy's Towing, d. On or about December 18,2011, CARTER deposited $4, currency into an account, number XX0709, with Wood Forest National Bank in the name of Shaggy's Towing, e. On or about December 20,2011, CARTER deposited $3, currency into an account, number XX0709, with Wood Forest National Bank in the name of Shaggy's Towing, f. On or about December 23,2011, CARTER deposited $2, currency into an account, number XX0709, with Wood Forest National Bank in the name of Shaggy's Towing, All in violation of Title 31, United States Code, Sections 5313, 5324(a)(3) and 5324(a), 31 Code of Federal Regulations, Sections and COUNT SEVEN [18 U.S.C Money Laundering] On or about December 23,2011, the exact date being unknown to the Grand Jury, in the Southern District ofindiana, Evansville Division, JOHN CARTER, defendant, did knowingly conduct or cause to be conducted a financial transaction affecting interstate commerce, that is, JOHN CARTER purchased a hydraulic motor vehicle lift with a cashier's check, number , in the amount of$15, obtained from Wood Forest National Bank, with the intent to conceal and disguise the nature, the location, the source, the ownership and control of the proceeds of specified unlawful activity, to wit: the distribution of marijuana, while knowing that the funds involved in the financial transaction represented the proceeds of some form of unlawful activity and which in fact involved proceeds of specified unlawful activity, to wit: the -10

11 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 11 of 13 PageID #: 11 distribution of marijuana, a Schedule I Controlled Substance, a violation of Title 21, United States Code, Section 841(a)(l) and 846. All in violation of Title 18, United States Code, Sections 1956(a)(l )(B)(I) and 2. COUNT EIGHT [18 U.S.C Money Laundering] On or about April 27, 2012, the exact date being unknown to the Grand Jury, in the Southern District of Indiana, Evansville Division, JOHN CARTER, defendant, did knowingly conduct or cause to be conducted a financial transaction affecting interstate commerce, that is, JOHN CARTER purchased and titled in the name of Shaggy's Towing LLC a 1999 Ford tow truck, YIN number 1FDAF56F1XEE10987, with $8, United States currency and a check in the amount of $4, on an account at Wood Forest National Bank, with the intent to conceal and disguise the nature, the location, the source, the ownership and control of the proceeds of specified unlawful activity, to wit: the distribution of marijuana, while knowing that the funds involved in the financial transaction represented the proceeds of some form of unlawful activity and which in fact involved proceeds of specified unlawful activity, to wit: the distribution of marijuana, a Schedule I Controlled Substance, a violation of Title 21, United States Code, Section 841(a)(l) and 846. All in violation of Title 18, United States Code, Sections 1956(a)(l)(B)(I) and 2. COUNT NINE [18 U.S.C Making Materially False Statements] -11

12 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 12 of 13 PageID #: 12 On or about October 15,2012, in the Southern District ofindiana, Evansville Division, JOHN CARTER, defendant, did knowingly and willingly make a materially false statement and representation in a matter within the jurisdiction of the executive branch of the United States, in that CARTER falsely stated and represented to a Special Agent of the Internal Revenue Service Criminal Investigations Division and a Task Force Officer of the Drug Enforcement Administration, during and in connection with their investigation of drug trafficking and money laundering crimes, that he (CARTER) purchased the shop (the property located at 105 South Kentucky Avenue, Evansville, Indiana) from an individual for $10, in July, 2011, and that he (CARTER) made payments on the sale to the individual for four to six months thereafter. All in violation of Title 18, United States Code, Section 1001 (a)(2). FORFEITURE If convicted of the offenses set forth above, the defendant herein shall forfeit to the United States any and all property constituting or derived from any proceeds the defendant obtained directly or indirectly as a result of the offense, and any and all property used or intended to be used in any manner or part to commit and to facilitate the commission of the offense. Pursuant to Title 21, United States Code, Section 853(p), the court shall order the forfeiture of any other property of the defendant, up to the value of any property described in paragraph 2, if, by any act or omission ofthe defendant, the property described in paragraph 2, or any portion thereof: a. cannot be located upon the exercise of due diligence; b. has been transferred or sold to, or deposited with, a third party; c. has been placed beyond the jurisdiction of the court; -12

13 Case 3:13-cr RLY-WGH *SEALED* Document 1 Filed 03/22/13 Page 13 of 13 PageID #: 13 d. has been substantially diminished in value; or e. has been commingled with other property which cannot be divided without difficulty. In keeping with the foregoing, it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p), to seek forfeiture of any other property of the defendant up to the value of all forfeitable property as described above in Paragraph 2. A TRUE BILL: /; /7 tll.. PERSON ~{JJL~~... JOSEPH H. HOGSETT United States Atto By: Matthew P. Brookma Assistant United States Attorney -13