UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MINNESOTA

Transcription

1 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 1 of 11 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MINNESOTA UNITED STATES SECURITIES AND EXCHANGE COMMISSION, Plaintiff, CIVIL ACTION v. FILE NO. 09-cv-3333 (MJD/JJK) TREVOR G. COOK, and PATRICK J. KILEY, et al., Defendants, and BASEL GROUP, LLC, et al. Relief Defendants. DECLARATION OF RICHARD L. OSTROM I, Richard L. Ostrom, do hereby declare under penalty of perjury, in accordance with 28 U.S.C. 1746, that the following is true and correct, and further that this declaration is made on my personal knowledge and that I am competent to testify as to the matter stated herein 1. I am currently licensed as a private investigator in the state of Minnesota and an owner of WayPoint Inc., a Minnesota corporation primarily involved in the field of private investigations. I am a retired special agent with the Federal Bureau of Investigation, having served as a federal law enforcement agent for twenty-six years, 1

2 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 2 of 11 including eight years as the supervisor of the white collar squad, responsible for the investigation of economic crimes. 2. WayPoint, Inc. has been retained by the Court appointed Receiver, R. J. Zayed, Attorney at Law with Carlson, Caspers, Vandenburgh & Lindquist in Minneapolis, MN to assist in locating, taking custody, control and possession of all funds, property and any and all other assets relating to Trevor G. Cook and Patrick J. Kiley in the matters of SEC v. Cook et al., 09-cv-3333 (D. Minn.) and CFTC v. Cook et al., 09-cv-3332 (D. Minn.). I am currently working with the Receiver in this matter. 3. On December 3, 2009, at 11 a.m. (CST) process servers for the CFTC personally served Trevor Cook at the Dover Drive residence with a subpoena for his appearance at the December 4, 2009 Court hearing in the above-referenced matters. 4. On December 4, 2009 agents of the Receiver located a black 2004 Audi RS 6, VIN WUAZZZ4B84N900987, registered to Trevor Cook at Dover Drive residence. The vehicle had no license plates. Agents of the Receiver seized this vehicle from the Dover Drive residence on December 4, 2009 as property of the Receivership. 5. On December 10, 2009, Gina L. Cook was personally served at her residence located at Dover Drive, Apple Valley, MN with a subpoena, cover letter and Court Orders establishing a Receivership and imposing and asset freeze in SEC v. Cook et al., 09-cv-3333 and CFTC v. Cook et al., 09-cv Gina Cook has neither turned over any assets to the Receiver nor responded to the items called for in the subpoena. Gina Cook also has not complied with the Receiver s request for an interview 2

3 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 3 of 11 of her. These same Court Orders were left in the door at the Cook s Dover Drive residence when the above-reference 2004 Audi RS 6 was seized from the Cook s driveway on December 4, On January 2, 2010, Gina Cook was personally served by the SEC with a subpoena for her appearance at the hearing on the SEC and CFTC s Motions for a Rule to Show Cause why her husband, Trevor Cook, should not be held in contempt for violating the Court s Orders compelling him to turn over Receivership assets and prohibiting him from any further dissolution of the Receivership Estate. 6. On January 12, 2010, Gina Cook testified at a contempt hearing in U.S. District Court, District of Minnesota, that she drives a 2005 Lexus SUV given to her by Trevor Cook. 7. According to records of the Minnesota Department of Public Safety, Driver and Vehicle Services, which are attached hereto as Exhibit A, Gina Lea Cook currently owns a 2005 Lexus, VIN 2T2HA31U15C086611, registered at Dover Drive, Apple Valley, MN This 2005 Lexus was registered to her on May 8, The previous owner was Trevor Gilson Cook who was the registered owner from May 1, 2006 to April 27, The registered owner before Cook was Market Shot, LLC, Tiffany Court, Burnsville, MN Market Shot, LLC is a Relief Defendant in SEC v. Trevor Cook et al., 09-cv-3333, D. Minn., and assets of Market Shot, LLC are covered by the various Receivership, Asset Freeze, and Preliminary Injunction Orders filed on November 23, 2009, November 24, 2009, December 8, 2009 and December 11, The estimated Blue Book value for this 2005 Lexus is $23,000. 3

4 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 4 of On January 12, 2010, Gina Cook testified at a contempt hearing in U.S. District Court, District of Minnesota, that there is a BMW parked in the garage of her house located at Dover Drive, Apple Valley, MN According to records of the Minnesota Department of Public Safety, Driver and Vehicle Services, Market Shot LLC, currently has registered a maroon colored 1997 BMW, VIN WBABK832XVEY85894, registered at Tiffany Court, Burnsville, MN. Two other vehicles registered to Market Shot, LLC have previously been seized by the Receiver; the purple BMW has not been located. Witness interviews conducted to date reveal that Cook had been seen driving a purple/blue BMW in the past. The estimated Blue Book value for this vehicle is $9, Cooperating Witness ( CW ) #1 observed a purple BMW parked in the garage located at Dover Drive, Apple Valley, MN on December 19, This is the residence of Gina and Trevor Cook. CW #1 has seen Trevor Cook driving this vehicle in the past. 11. A former employee of Trevor Cook, CW #2, advised that in October 2009, CW had seen Trevor Cook driving a purple BMW. 12. On January 9, 2010, a black Lexus was seen leaving the area of the Dover Drive residence house with a white male driving. The same Lexus later returned and parked in the garage at the Cook residence. The Lexus had MN license 945CNW. The license plate was not on file according to an online check of Minnesota Department of Public Safety, Driver and Vehicle Services. 4

5 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 5 of On January 11, 2010, a hand search by the Minnesota Department of Public Safety, Driver and Vehicle Services, revealed that MN plate 945CNW is listed as intransit and was issued to Graham Palmer Cook, Tiffany Court, Burnsville, MN 55337, on November 17, The car that Graham Cook registered was a 2004 Lexus, VIN JTHBN36F The declared purchase price was $19,000. The vehicle was purchased on October 22, A review of the title obtained from the Minnesota Department of Public Safety, Driver and Vehicle Services, which is attached hereto as Exhibit B, revealed the vehicle is a 2004 Lexus, VIN JTHBN36F , purchased from United Auto Group, Venture Drive, Framers Branch, TX on October 22, 2009, by Graham Cook. 15. Minnesota Department of Public Safety, Driver and Vehicle Services records revealed that Graham Palmer Cook does not possess a Minnesota Drivers License. Graham Palmer Cook only has a valid Minnesota Identification card. 16. On January 11 & 12, 2010, Mekki Bennis, United Auto Group (UAG), Dallas, TX, advised that Trevor Cook contacted him in October 2009, regarding a 2004 Lexus advertised for sale online by UAG. Bennis sent Trevor Cook pictures of the vehicle by . After reviewing the pictures Trevor Cook made an offer to buy the car by . Bennis had telephonic contact with Cook and negotiated the sale of the car. Bennis understood that Trevor Cook was buying the car as a present for his brother, Graham Cook. The total purchase price was $20,000 which included shipping the car to 5

6 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 6 of 11 Minnesota. Cook put a $500 deposit down through ebay and then wired transferred $19, to UAG. 17. Trevor Cook banking records located at the Van Dusen mansion, 1900 LaSalle, Minneapolis, MN included the check register for a Wells Fargo Account of PFG Coin and Bullion, account number XXXXXX2702. Noted in the hand written check register for that account was an undated entry, sometime between August and November of 2009, reflecting a wire in the amount of $19, On October 31, 2002, Gina L. Berg bought a home located at 4470 Dunkirk Lane North, Plymouth, MN in her name. Cook had two mortgages on the property in her name totaling $342,000. A 30 year mortgage in the amount of $300,700 and a 10 year Line of Credit in the amount of $41, Gina Cook and Trevor Cook were married on December 26, On July 29, 2005, Trevor and Gina Cook sold their home at 4470 Dunkirk Lane North, Plymouth, MN 55446, for $431,000. The Warranty Deed reflects that for valuable consideration Gina L. Cook, fka Gina L. Berg, and Trevor Cook, wife and husband sold the house to Steven and Susan Wittwer. 21. On July 29, 2005, Gina L. Cook purchased the house located at Dover Dr, Apple Valley, MN The single family residence was purchased for $570,000 and a 30 year mortgage was taken out on the property in the amount of $420,000 in Gina Cook s name. 22. The mortgage document on the Dover Drive property in Apple Valley, filed in Dakota County, shows the borrower was Gina L. Cook, a married woman. The lender 6

7 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 7 of 11 was listed as First Discount Mortgage, LLC, 1100 Atlanta, GA 30326, with loan number being XX Noted on the mortgage document was a notation that after recording the mortgage document, it was to be returned to Ohio Savings Bank, 111 Chester Ave., Cleveland, OH Banking records of Trevor Cook were located at the Van Dusen mansion, 1900 LaSalle, Minneapolis, MN. From a review of Trevor G. Cook s hand written check register for Wells Fargo Bank, account number XXXXXX6543, at least six payments were made to AmTrust Bank in 2008 and On several of the hand written entries in the check register were notations relating to the Gina Cook mortgage. For example check number 4524, payable to AmTrust for $3, had a notation of gina mortgage. Check number 4612 payable to AmTrust Bank, in the amount of $3,187.42, had a notation gina. On the duplicate carbon copy of check number 4660, payable to AmTrust Bank, dated November 9, 2009, in the amount of $3,187.42, was an account number of XX42722 noted. This is the loan number on the Dover Drive mortgage document filed in Dakota County. It is believed that AmTrust is the current mortgage holder on the Dover Drive property. 24. A review of the Wells Fargo Prime Checking Account statement for the account of Trevor G. Cook, dated November 1, 2009 to November 30, 2009, account number XXXXXX6543, revealed check number 4660 cleared the account on November 16, The notation on the statement showed the check was for Loan Pmt XXXXX XXXXX (XX42722 is the mortgage loan account number for the Dover Drive property.) 7

8 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 8 of Other Trevor Cook banking records located at the Van Dusen mansion, 1900 LaSalle, Minneapolis, MN included the check register for a Wells Fargo Account of PFG Coin and Bullion, account number XXXXXX2702. A duplicate copy of check number 1404, dated August 10, 2009, payable to AmTrust Bank, amount $3, was located. A handwritten note in the memo section of the duplicate check was written an account number, part of which could not be read, but the last five digits included Also written on the duplicate copy of this check was the notation Gina Cook. 26. On Friday, December 4, 2009, a woman who has been identified as Gina Cook, purchased $77.86 in items from the Burnsville Super Target using a $2000 gift card. On December 11, 2009, Trevor Cook turned over to the Receiver certain gift cards that he had purchased between December 1-3, He did not turn over the Target gift card that his wife used until December 14, On January 12, 2010, Gina Cook testified at a contempt hearing in U.S. District Court, District of Minnesota, that the woman pictured in the photograph from the Target Super Store in Burnsville, MN, on December 4, 2009, was her. 28. Witness interviews conducted to date reveal other assets of Trevor Cook that have not been accounted for by Cook to date. Assets include a collection of Faberge Eggs, a watch collection, a large diamond ring given to Gina Cook by Trevor Cook, cash, coins, and foreign currency. 29. CW #2 advised that Cook had a cash drawer located in his house at Dover Drive, Apple Valley, MN CW #2 knows that in the past Trevor Cook has 8

9 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 9 of 11 stored his gambling winnings in this cash drawer. Trevor Cook told CW #2 that Gina Cook knows about this cash drawer. 30. CW #1 advised that CW was at the Cook residence on Dover Drive on December 19, 2009, to conduct repair work at the home for the Cook s. Gina Cook paid the CW $400 in cash (3-$100 s and 5-$20 s) to purchase a hot water heater. When the repair work was completed, Gina Cook paid the CW with a $100 check drawn on Gina Cook s Wells Fargo checking account and additional $100 in cash. Trevor Cook than pulled an additional $100 in cash from a kitchen cabinet and gave it to the CW. 31. On January 12, 2010, the SEC introduced Exhibits #33-35 in a contempt hearing in U.S. District Court, District of Minnesota, which were photos, a video, and cash receipts from Trevor Cook paying $53.82 in cash for groceries from a Cub Foods. Brandon Guertin, Cub Foods loss prevention agent, testified that he noticed Trevor Cook having a large stack of $20 bills in his pocket that he pulled out to pay for the groceries. Also introduced at the hearing was Exhibit #36, which was a video from that same Cub Foods store that showed Cook loading the groceries that he had just purchased from the Cub store into a Lexus with MN license 945CNW on Saturday January 9, CW #3, another former employee of Trevor Cook, advised that Trevor Cook has a ROM exercise machine located in his house at Dover Drive, Apple Valley, MN Trevor Cook told CW #3 that Cook paid $9,000 for this machine. 33. CW #3, as well as other former employees and associates of Trevor Cook, including CW #4, CW #5, and CW #6 have advised that Trevor Cook had in his possession numerous Faberge Eggs. Faberge Eggs are jeweled eggs made by the 9

10 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 10 of 11 House of Faberge during the late 1800s and early 1900s, which have significant value in tens of thousands of dollars. CW #3 advised that in July 2009, after Trevor Cook learned of the SEC s investigation and a lawsuit brought by investors against him, that Trevor Cook s brother, Graham Cook, packed up the Faberge Eggs that were located in Trevor Cook s office at the Van Dusen mansion. The Receiver has not located any Faberge eggs at any of the Receivership properties. 34. Other individuals associated with Trevor Cook, including CW #2, CW #3, CW #4, CW #5, and CW #6 also advised that as of mid-2009, Trevor Cook had a collection of expensive high-end watches, such as those made by Rolex. At least two such individuals, CW #3 and CW #4, received Rolex watches as gifts from Trevor Cook. The Receiver has not located any of Trevor Cook s watches at any of the Receivership properties. 35. On January 12, 2010, Gina Cook testified at a contempt hearing in U.S. District Court, District of Minnesota, that she has a safe deposit box at Wells Fargo Bank. Located in that safe deposit box is a watch that Trevor Cook gave her. 36. CW #8, a former associate of Trevor Cook, advised that Trevor Cook had millions of Iraqi Dinars located on the third floor of the Van Dusen mansion. CW #8 further advised that if the value of this currency moved even a fraction of a cent, that this currency would yield substantial value. The Receiver has not located any Iraqi Dinars at any of the Receivership properties. 37. A review of Exhibit 3 to the November 20, 2009 Declaration of Scott J. Hlavcek in SEC v. Cook et al., 09-cv-3333, shows that since at least June 2008, Trevor 10

11 Case 009-cv MJD-JJK Document 139 Filed 01/19/10 Page 11 of 11 Cook has paid approximately $92 per month to Frontier Citizen from Wells Fargo Bank account number XXXXXX6543. According to Frontier Communications, Frontier Citizen was a name used in some areas, but now they operate under the name Frontier Communications. Frontier Citizen / Communications company, a provider of internet, phone and cable services. After the Receiver seized the Van Dusen property, Mr. Cook contacted Frontier Communications and requested to change the address for his Frontier bills from the Tiffany Court address to Dover Drive, Apple Valley, MN A review of the financial analysis conducted by the SEC revealed that from December 23, 2008 to August 25, 2008, Gina Cook deposited a total of $55, into UBS-Growth LLC and Crown FX LLC. The analysis further shows that Ms. Cook withdrew $8, from UBS-Growth LLC on February 23, 2009 and $103, from UBS-Growth LLC on June 23, The SEC believes that Trevor Cook was aware of the SEC investigation by at least June 22, On December 17, 2009, Trevor Cook submitted a request to the Receiver for monthly living expenses for he and his wife in the amount of $6,679 per month. The document submitted by their attorneys that details this request is attached hereto as Exhibit C. I, Richard L. Ostrom, declare under penalty of perjury that the foregoing is true and correct. Executed on the 19th day of January, s/richard L. Ostrom Richard L. Ostrom 11