IN THE UNITED STATES DISTRICT coufrt..~: DISTRICT OF KANSAS ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) SEALED INDICTMENT

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1 UNITED STATES OF AMERICA, vs. GARY LESTER HALL THOMAS ANTHONY "TONY" GRANTHAM KEITH DION NOE JUSTIN W. BOYES DANNY RAY DAVIS IN THE UNITED STATES DISTRICT coufrt..~: Plaintiff, JEREMY WAYNE HOOKER JAMES WILLIAM "JIMMY"COBLE JUSTICE MICHAEL BERRY SUNFLOWER SUPPLY COMPANY, INC. DISCOUNT TOBACCO WAREHOUSE, INC. REBEL INDUSTRIES, INC., Defendants. THE GRAND JURY CHARGES THAT: DISTRICT OF KANSAS SEALED INDICTMENT Fit rn U.S. C ':~~lcf cq~~i "~ : i\n:,-\:' '08 OCT 15 ::'4 :45 I.'Lcl.}'j~CT CO U. RT... Criminal Actio~ylJPf~: No. 08-!Oduf tbl\~ni~ifv3 18 U.S. C Count 1 18 U.S.C. 2343(b - Counts U.S.C Counts U.S.C Counts U.S.C. 1952(a(l - Counts U.S.C. 2342(a - Count U.S.C. 1956(h - Count U.S.C. 1956(a(l - Counts U.S.C Counts U.S.C. 2 Forfeiture-18 U.S.C. 981(a(l(C & U.S.C. 2461(c 21 U.S.C. 853(p FILED UNDER SEAL At all relevant times alleged in this indictment in the District of Kansas and elsewhere:

2 INTRODUCTION 1. Defendant GARY HALL (HALL orchestrated a conspiracy to defraud the State of Oklahoma and various Native American Tribal Nations of approximately $25 million in taxes due from the sale of cigarettes to retailers located throughout Oklahoma. As part ofthe conspiracy, HALL utilized several corporate entities under his control including SUNFLOWER SUPPLY COMPANY, INC. (SUNFLOWER, DISCOUNT TOBACCO WAREHOUSE, INC. (DTW, REBEL n~dustries, INC. (REBEL, and National Tobacco Distributors, Inc., d/b/a Shawnee Tobacco Smoke Shop (Shawnee Tobacco to facilitate the criminal activities. 2. The tobacco industry is regulated by Federal and State governments. The States of Kansas and Oklahoma also impose an excise tax upon each pack of cigarettes possessed for sale within their borders. The State of Kansas and State of Oklahoma require that each cigarette pack, located within their respective State, have a stamp affixed thereto representing that the appropriate taxes have been paid for the location in which the cigarettes are sold. Wholesalers, such as SUNFLOWER and DTW, are responsible for purchasing and applying the applicable tax stamp. SUNFLOWER and DTW unlawfully distributed cigarettes without the applicable tax stamps. THE DEFENDANTS 3. Defendant GARY HALL (HALL is the president and sole shareholder of defendant SUNFLOWER located at 1001 W. 7 th Street, Galena, Kansas. Defendant HALL caused the creation of and exercised control of defendant REBEL also located at 1001 W. 7 th Street, Galena, Kansas, and defendant DTW located at 402 Grand, Joplin, Missouri. Defendant HALL also owned and controlled National Tobacco Distributors (later changed to Hall's Collection, Inc. which leased and operated Shawnee Tobacco Smoke Shop (Shawnee Tobacco located at NE 23 rd Street, Harrah, Oklahoma. He also owns and controls Sunflower Aircraft, Inc. Defendant HALL initiated, authorized, directed and profited from many of the illegal activities described herein. 4. Defendant THOMAS ANTHONY "TONY" GRANTHAM (GRANTHAM is employed by SUNFLOWER and managed operations of defendant SUNFLOWER and some operations of defendant REBEL for HALL. GRANTHAM participated in decision making meetings where the conspiracies to commit the illegal activities were developed and revised. Defendant GRANTHAM directed and supervised many of the illegal activities described herein. 5. Defendant KEITH DION NOE (NOE is employed by SUNFLOWER and is the accountant for defendant SUNFLOWER, defendant DTW, defendant REBEL, and Shawnee Tobacco. Defendant NOE was also the trustee for defendant HALL's trust accounts. Defendant NOE initiated and participated in many of the illegal activities described herein. 2

3 6. Defendant JUSTIN BOYES (BOYES, a former employee of SUNFLOWER, is listed as the president of defendant DTW located at 402 Grand, Joplin, Missouri, and manages the daily activities of the warehouse. Defendant BOYES initiated and participated in many of the illegal activities described herein. 7. Defendant DANNY DAVIS (DAVIS was formerly a truck driver for the defendant SUNFLOWER before managing the Shawnee Tobacco, leased and operated by HALL, in Harrah, Oklahoma. When the Shawnee Tobacco Smoke Shop closed, DAVIS began working again as a driver, but for defendant REBEL. Defendant DAVIS initiated and participated in many of the illegal activities described herein. 8. Defendant JEREMY HOOKER (HOOKER is the operator of Pipestone Smoke Shop (Pipestone, located at East Highway 66, Vinita, Oklahoma. Defendant HOOKER initiated and participated in many of the illegal activities described herein. 9. Defendant JAMES "JIMMY" COBLE (COBLE is a former employee and driver for defendant SUNFLOWER. COBLE is listed as the president of defendant REBEL, located at 1001 W. 7 th Street, Galena, Kansas. Defendant COBLE initiated and participated in many of the illegal activities described herein. 10. Defendant JUSTICE MICHAEL BERRY (BERRY was an employee for defendant SUNFLOWER working as an accountant under defendant NOE's supervision. As an accountant, BERRY prepared deposit slips, wrote the body of some checks, made entries into the Peachtree software and tracked funds coming into SUNFLOWER. Defendant BERRY initiated and participated in many of the illegal activities described herein. 11. Defendant SUNFLOWER SUPPLY COMPANY, INC. (SUNFLOWER, is a Kansas corporation, and is licensed as a Kansas and Oklahoma tobacco wholesaler and state cigarette stamping agent, having principal offices at 1001 W. 7 th Street, Galena, Kansas, within the District of Kansas. 12. Defendant DISCOUNT TOBACCO WAREHOUSE, INC. (DTW is a Kansas corporation, and is licensed as a Kansas and Oklahoma tobacco wholesaler and state cigarette stamping agent, having principal offices at 402 Grand, Joplin, Missouri. Defendant DTW was originally incorporated as National Tobacco Distributors, Inc. on September 9,2002. On January 13,2003, the corporate name was changed to DISCOUNT TOBACCO WAREHOUSE, INC. 13. Defendant REBEL INDUSTRIES, INC. (REBEL, is a Kansas corporation having principal offices at 1001 W. 7 th Street, in Galena, Kansas. Defendant REBEL was originally incorporated as Rebel Construction, Inc. on October 15,2003. On November 14,2003, the corporate name was changed to REBEL n'jdustries, INC. REBEL made tobacco deliveries exclusively for SUNFLOWER and DTW, except for a three month period from June to August of

4 14. Shawnee Tobacco was a retail smoke shop located at NE 23 rd Street, in Harrah, Oklahoma and leased by HALL for a seven year period, from the Absentee Shawnee tribe on May 1,2001, under the name National Tobacco Distributors, dba Shawnee Tobacco Smoke Shop. It ceased doing business in January of COUNT 1 CONSPIRACY TO DIVERT CIGARETTES 15. The allegations in paragraphs 1 through 14 above are realleged and incorporated in Count 1 as though fully set forth herein. 16. Beginning in or about sometime in January 2005 through May 7, 2007, the exact dates being unknown to the Grand Jury, in the District of Kansas and elsewhere, defendants, GARY LESTER HALL, THOMAS ANTHONY "TONY" GRANTHAM, KEITH DION NOE, JUSTIN W. BOYES, DANNY RAY DAVIS, JEREMY WAYNE HOOKER, JAMES WILLIAM "JIMMY" COBLE, JUSTICE MICHAEL BERRY, SUNFLOWER SUPPLY COMPANY, INC., REBEL INDUSTRIES, INC., and DISCOUNT TOBACCO WAREHOUSE, did knowingly and intentionally combine, conspire, confederate and agree with each other and with other persons, both known and unknown to the Grand Jury, to commit the following offenses, that is: 17. To make a false statement or representation regarding tobacco products with respect to such information required by Federallaw to be kept in the person's records, in violation of Title 18, United States Code, 2342(b; and 18. To devise a scheme or artifice to defraud the State of Oklahoma by means of false or fraudulent pretenses, representations, or promises, by placing in any post office or authorized depository for mail matter, to wit: state monthly cigarette reports to be sent or delivered by the United States Postal Service to the state tax administrator in Kansas which concealed the fraud scheme, in violation of Title 18, United States Code, 1341; and 19. To devise a scheme or artifice to defraud the State of Oklahoma, by means of false or fraudulent pretenses, representations, or promises; did transmit or cause to be transmitted, in interstate or foreign commerce, by means of a wire communication, cigarette orders from SUNFLOWER to manufacturers; and from retail stores to SUNFLOWER; and transferring funds 4

5 derived from the sale and distribution of cigarettes from Pipestone to SUNFLOWER, which were, to wit: electronic wire transfers containing certain writings, signs, signals, pictures or sounds, for the purpose of executing the scheme or artifice, in violation of Title 18, United States Code, To conduct and cause to be conducted financial transactions which in fact involved the proceeds of a specified unlawful activity, to wit: mail and wire fraud (18 United States Code, 1341 and 1343, knowing that the property involved in the financial transaction represented the proceeds of the aforesaid specified unlawful activity, with the intent to promote the carrying on of the aforesaid specified unlawful activity, in violation of Title 18, United States Code, 1956(a(1 (A(i; and 21. To conduct and cause to be conducted financial transactions which in fact involved the proceeds of a specified unlawful activity, to wit: mail and wire fraud (18 United States Code, 1341 and 1343, knowing that the property involved in the financial transaction represented the proceeds of the aforesaid specified unlawful activity, knowing that the transaction was designed in whole or part to conceal or disguise the nature, location, source, ownership, or control of the proceeds ofa specified unlawful activity, in violation of Title 18, United States Code, 1956(a(1(B(i; and 22. To knowingly engage and attempt to engage in monetary transactions in criminally derived property in an amount greater than $10,000 derived from a specified unlawful activity, to wit: mail and wire fraud (18 United States Code, 1341 and 1343 in violation of Title 18, United States Code, 1957; and 23. To knowingly and willfully, travel in interstate or foreign commerce, with intent to promote, manage, establish, carry on, or facilitate the promotion, management, establishment, or carrying on, of any unlawful activity, to wit: Money Laundering (18 United States Code, 1956 and 1957, and thereafter perform or attempt to perform such acts, in violation of Title 18, United States Code, 1952(a(3; and 24. To knowingly and willfully aid and abet other defendants and conspirators in the commission of the aforesaid criminal offenses in violation of Title 18, United States Code, 2. MANNER AND MEANS OF THE CONSPIRACY 25. The manner and means by which the co-conspirators carried out the purposes of the conspiracy include, but are not limited to, the following: 26. It was a part of the conspiracy that the defendants would and did play different roles, take upon themselves different tasks and participate in the affairs of the conspiracy through various criminal acts. The defendants would and did make themselves and their services available at various times throughout the conspiracy. The roles assumed by the defendants were interchangeable at various times throughout the conspiracy. 5

6 27. It was further a part ofthe said conspiracy that the defendants would and did use various methods to conceal the conspiracy and their unlawful activities in order to insure the conspiracy's continuing existence and success. 28. Philip Morris and R.J. Reynolds are large manufacturers of cigarettes in the United States. Cigarettes sold by both Philip Morris and RJ. Reynolds are considered "premium" cigarettes in the tobacco industry. Many smaller manufacturers use a lower grade oftobacco during the manufacturing of cigarettes. These cigarettes are considered "discount" or "4 th tier" cigarettes by the tobacco industry. 29. SUNFLOWER, at the direction and control of HALL, entered into agreements with R.J. Reynolds and Philip Morris which authorized SUNFLOWER to sell their tobacco products. Pursuant to the agreements, SUNFLOWER received rebates based upon SUNFLOWER's sales of their products. 30. To qualify for increased rebates from R.J. Reynolds and Philip Morris, defendants HALL, GRANTHAM and NOE created a scheme to separate their sales of premium and discount cigarettes by shifting the discount cigarette sales from SUNFLOWER to a separate corporation, thus making SUNFLOWER eligible for increased rebate money. 31. Thereafter, on September 9,2002, a corporation which came to be known as DTW was formed by defendant HALL and others to conceal SUNFLOWER's sales of discount cigarettes from R.J. Reynolds and Philip Morris. BOYES, who was an employee of SUNFLOWER was listed as the president of DTW and took over its day to day operations. Although BOYES was listed as the president, HALL retained control of the overall operations of DTW. HALL provided start up and operational funding for DTW, and HALL negotiated purchase agreements with Liberty Brands LLC, a discount brand cigarette manufacturer. 32. After the creation ofdtw, customers placed orders for discount cigarettes with DTW and premium cigarette orders with SUNFLOWER. The discount cigarettes were transported from DTW to SUNFLOWER and packaged together with the premium cigarette order for the same customer. SUNFLOWER's drivers, using SUNFLOWER delivery trucks, delivered both SUNFLOWER and DTW cigarettes to the retail stores. 33. Pursuant to the agreement with SUNFLOWER, R.J. Reynolds did an audit in August 2003 of SUNFLOWER and determined that SUNFLOWER and DTW had an "indirect affiliation." On September 12,2003, R.J. Reynolds sent a letter to SUNFLOWER stating "with the recent Wholesale Partnership Audit, it has come to our attention that Sunflower Wholesale misreported cigarette sales in conjunction with Discount Tobacco. Deliveries of Discount Tobacco products to 70% of retail location are considered an indirect affiliation. The non-reporting of 4 th tier products overstated RJRT's SOM providing Sunflower Wholesale financial benefits that it would not otherwise receive under our program." 6

7 This letter was written because RJ. Reynolds learned that products from both SUNFLOWER and DTW were being shipped together on SUNFLOWER's trucks. This was deemed a violation of the agreement and SUNFLOWER was required to pay a fine and/or return rebates money received for the first two quarters of Thereafter, on or about October 15, 2003, HALL and co-conspirators created a separate corporation named REBEL to deliver cigarettes for both SUNFLOWER and DTW. COBLE, who was an employee of SUNFLOWER was listed as the president of REBEL, however, his duties as a driver remained the same. 35. Thereafter, SUNFLOWER and DTW continued to sell cigarettes to various retail stores in Oklahoma and elsewhere which were now delivered by REBEL. 36. As stamping agents for cigarettes to be sold in Oklahoma, SUNFLOWER and DTW were responsible for purchasing rolls of cigarette tax stamps from the State of Oklahoma and affixing the applicable stamp to the packs of cigarettes prior to distribution. SUNFLOWER and DTW purchased the tax stamps in advance and stamped the cigarettes. SUNFLOWER and DTW were also responsible for submitting monthly cigarette reports to the States of Kansas and Oklahoma, which reported the number of cigarettes sold on specific dates and the location where the cigarettes were ultimately destined for retail sales to the consumer. 37. The State of Oklahoma operates a multi-tiered excise tax system for cigarettes, due to the compacts between the State and the various Federally Recognized Indian Tribes or Nations located within the State. The tiers are based on the cigarette retailer's store location in Oklahoma and whether or not they are subject to compacts between a tribe and the State of Oklahoma. 38. Pursuant to these compacts, the State of Oklahoma distributes some of the cigarette excise tax revenue to the tribes based upon the amount of cigarettes sold by the tribal retailers which fall under the compact system. 39. This system of taxation, which went into affect January 2005, created seven different tax tiers on cigarettes. Cigarette tax rate per pack: Full Tax $ 1.03 Non-compact $ Original Compact $ New Compact $ New Compact Arkansas Border $ New Compact Kansas Border $ Exception Rate $

8 40. The Oklahoma Tax Commission regularly sends updates to distributors and wholesalers, such as SUNFLOWER and DTW, listing the applicable tax rate for each smoke shop within the State of Oklahoma. 41. Beginning sometime after January 2005, defendants HALL, BOYES, NOE, GRANTHAM, BERRY, COBLE, HOOKER and DAVIS entered into a conspiracy to defraud the State of Oklahoma and various Native American Tribal Nations out of a total of approximately $25 million in taxes due from the sale of cigarettes to retailers located throughout Oklahoma. By stamping cigarettes to be sold in the higher tax rate areas with the lower exception rate stamps, defendants SUNFLOWER and DTW retained customers and maintained their volume of tobacco sales in effect before the tax rate changed. The cigarettes diverted from the exception rate smoke shops to the higher tax rate smoke shops were ultimately sold in higher tax rate stores, and did not have the applicable higher State cigarette tax stamp. 42. In order to carry out and promote the cigarette diversion scheme, defendants HALL, BOYES, NOE, GRANTHAM, BERRY, COBLE, HOOKER and DAVIS as principles and aiders and abettors, utilized various means of wire communications. The wire communications utilized included the internet, facsimile, and money wire transfers. SUNFLOWER placed orders with tobacco manufacturers using a Internet based ordering system; SUNFLOWER and defendant DTW received cigarette orders from retail shops via facsimile; and SUNFLOWER received payments via electronic wire transfer from Pipestone Smoke Shop. 43. In order to conceal the cigarette diversion scheme, defendants HALL, BOYES, NOE, GRANTHAM, BERRY, COBLE, HOOKER and DAVIS caused the mailing of false monthly cigarette reports filed with the State of Kansas. The false reports concealed the true destination of cigarettes transported to various retail locations throughout Oklahoma including cigarettes shipped to and purchased by Shawnee Tobacco which was operated by HALL and managed by DAVIS. Without the filing of the false reports, Defendants SUNFLOWER and DTW would have been required to place the proper stamps on the cigarettes diverted through the exception rate stores which would have reduced the volume of cigarette sales to the various higher tax rate Oklahoma retail stores. 44. The proceeds from the mail fraud and wire fraud violations were then used to promote the carrying on of the illegal activity by using the proceeds to purchase more cigarettes and tax stamps to continue the scheme. 45. Defendants HALL, BOYES, NOE, GRANTHAM, BERRY, COBLE, HOOKER and DAVIS, further attempted to conceal the true nature and source ofthe proceeds from the sale of cigarettes by funneling payments through a third party corporation named Gawkskey, Inc. 46. For the period of June through August of2005, defendant REBEL transported checks from retail stores throughout Oklahoma to defendant SUNFLOWER in Galena, Kansas. Defendant REBEL also transported checks from SUNFLOWER to Pipestone Smoke Shop, in Vinita, Oklahoma. These checks represented proceeds from the illegal activities 8

9 47. Over time, in order to conceal the conspiracy and continue the criminal activity of the cigarette diversion scheme, the manner and means of the conspiracy changed as discussed in the substantive counts and overt acts as alleged in ~~ and incorporated herein. OVERT ACTS 48. In furtherance of the conspiracy and scheme or artifice to defraud, and to accomplish their purposes and objectives, one or more of the co-conspirators, both indicted and unindicted, in the District of Kansas and elsewhere, committed the following overt acts: 49. Pipestone Smoke Shop (Pipestone was leased by defendant HOOKER. Pipestone was authorized to sell exception rate ($ cigarettes to consumers from its location in Vinita, Oklahoma. In February 2005, Pipestone began purchasing cigarettes from defendants SUNFLOWER and DTW, and started funneling those cigarettes to other retail smoke shops in the higher tax rate areas. These other shops were given a Pipestone number designation such as Pipestone #1, 2, 3, etc. Included in these shops were Firelake in Shawnee, Oklahoma and Shawnee Tobacco, leased by defendant HALL, in Harrah, Oklahoma. 50. Gawkskey, Inc. was a retail smoke shop owned by Danny Carter and was located in Webbers Falls, Oklahoma. Danny Carter maintained the exception tax rate until sometime in February Prior to that, he purchased cigarettes from defendants SlJ1\TFLOWER and DTW who delivered them to Gawkskey directly. Carter then paid defendants SUNFLOWER and DTW out of his Gawkskey, Inc.'s account with Armstrong Bank. 51. Sometime in February 2005, Gawkskey began purchasing cigarettes from SUNFLOWER and DTW and funneling them through Pipestone, which continued to maintain the exception tax rate. 52. Shawnee Tobacco Smoke Shop in Harrah, Oklahoma, was leased by defendant HALL from the Absentee Shawnee Tribe of Oklahoma. Shawnee Tobacco was located in a New Compact area where the cigarette excise tax rate was $ per pack of cigarettes beginning January 1, Prior to April 2005, Shawnee Tobacco ordered cigarettes directly from defendant SUl'J"FLOWER and defendant DTW. The last payments made by Shawnee Tobacco to SUNFLOWER and DTW were dated April 13, After April 2005, Shawnee Tobacco continued to be supplied with exception rate cigarettes by SUNFLOWER and DTW, funneled through Pipestone to avoid detection of the diversion scheme. The cigarettes were delivered by Gawkskey to Shawnee Tobacco. Shawnee Tobacco was assigned Pipestone #15. Shawnee Tobacco paid Gawkskey directly. The first check written by Shawnee Tobacco to Gawkskey was April 21,

10 55. Danny Carter, owner of Gawkskey, Inc., picked up the cigarettes being funneled through Pipestone for the other smoke shops, would remit payment for the entire order to Pipestone, drawn on the Gawkskey Armstrong Bank account. He also picked up the invoice for each shop's order, then delivered the invoice, along with the cigarettes to the other shops, including to Shawnee Tobacco. He continued to deliver to the retail shops until June Danny Carter would receive payment from each shop for the cost of their individual orders to reimburse him for the payment he made up front to Pipestone. 56. In June 2005, Gawkskey contracted with Pipestone and defendant REBEL to transport the cigarettes from Pipestone to the smoke shops in non-exception areas. The agreement was signed by defendants COBLE and HOOKER. REBEL, instead of Danny Carter with Gawkskey, Inc., began delivering cigarettes to these various retail smoke shops around June 13, Also, beginning in June 2005, the cigarette orders for the non-exception smoke shops were faxed either by Pipestone or by the various retail shops, from Oklahoma to defendant SUNFLOWER in Kansas and defendant DTW in Missouri. The shops used their assigned Pipestone number when faxing orders to SUNFLOWER and DTW. 58. The cigarette orders were filled by defendant SUNFLOWER in Kansas and defendant DTW in Missouri. Defendant REBEL would pick up the cigarettes from DTW in Missouri and bring them to SUNFLOWER in Kansas. There the premium and discount cigarettes were packaged together, and the shop's Pipestone number was affixed to each order. REBEL would deliver the orders to each of the shops, including to Shawnee Tobacco and Pipestone. REBEL delivered many of the orders directly from defendant SUNFLOWER in Kansas to each shop in Oklahoma without physically stopping at Pipestone. 59. Each shop's invoice from defendants SUNFLOWER or DTW were labeled as being delivered to Pipestone with a Pipestone number, rather than being delivered to the individual shops. 60. When defendant REBEL came to Pipestone with the cigarettes, defendant HOOKER, or an employee of Pipestone, wrote a check for the full amount of the cigarette orders, one each payable to defendants SUNFLOWER and DTW. These checks would be carried by the REBEL truck driver as he or she finished delivering to the retail shops in Oklahoma. Defendant COBLE was one of the truck drivers involved. 61. When REBEL delivered each shop's cigarettes, the REBEL truck drivers would pick up payment from many of the shops, made payable to Gawkskey. These checks, as well as the checks written by Pipestone to defendants SUNFLOWER and DTW, would then be transported by REBEL from Oklahoma back to SUNFLOWER in Kansas. Firelake's payment, however, was not made at the time of delivery, but often days or weeks later. During the period of the conspiracy, defendant GRANTHAM, on behalf of defendant SUNFLOWER, traveled to Firelake, in Shawnee, Oklahoma. He met to discuss a late payment for a shipment of cigarettes. 10

11 Present at the meeting was a representative of Firelake, defendant GRANTHAM, and Danny Carter. Defendant HOOKER was not present. 62. Checks delivered by REBEL to SUNFLOWER and made payable to defendant SUNFLOWER were deposited into SUNFLOWER'S US Bank account in Joplin, Missouri. Checks made payable to DTW were deposited into DTW's US Bank Account in Joplin, Missouri. 63. An account in the name of Gawkskey, Inc. Had been created at US Bank in Joplin, Missouri on June 10,2005. Signors on the account were Danny Carter, Rebecca Carter, defendant NOE, and defendant BOYES. The checks made payable to Gawkskey, transported from Oklahoma by REBEL, were deposited into the newly established bank account at U.S. Bank in Joplin, Missouri. The Gawkskey deposit slips were often written by defendant BERRY. BERRY also completed a spreadsheet to track payments made by the shops. Defendant NOE was signor on all three accounts. Defendant BOYES was signor on DTW's account as well as the Gawkskey US Bank account. 64. Defendants NOE, BOYES, or another authorized signor, would write a check on the Gawkskey U.S. Bank account, made payable to Pipestone to reimburse HOOKER at Pipestone for his up-front payments of all cigarette orders delivered to the various smoke shops. Defendant BERRY would often fill in the amounts. These reimbursement checks were then taken back to Pipestone on the REBEL truck with the next delivery of cigarettes made by defendant REBEL from Kansas into Oklahoma. 65. Defendant HOOKER charged each of the smoke shops at least $0.10 per carton as his mark-up fee for his role in the scheme. 66. Defendant REBEL charged the individual smoke shops $25.00 per delivery of cigarettes from defendants SUNFLOWER and DTW. 67. After August 2005 the cigarette diversion scheme changed, then remained virtually the same until at least May 8, Defendant REBEL no longer delivered cigarettes to each store, but began delivering all the orders to Pipestone. The individual shops, including defendant DAVIS, as manager of Shawnee Tobacco, would then go to Pipestone to pick-up their orders. Checks from smoke shops were made payable to Pipestone instead of Gawkskey, but Gawkskey continued to coordinate the orders, invoices and payments for defendant HOOKER. 68. Shawnee Tobacco received deliveries of cigarettes until it went out of business in January 2006, after receiving a letter from the Absentee Shawnee Tribe which held the lease. After the Oklahoma tax rate increase went into effect in January of2005, Shawnee Tobacco was located in a $.7725 per pack cigarette tax area. On or about January 6,2006, the Absentee Shawnee Tax Commission sent a letter addressed to defendant NOE with a copy to defendant DAVIS, manager of Shawnee Tobacco, which stated that 11

12 "the Absentee Shawnee Tribe Executive Committee has directed that all smoke shops be in compliance with the Compact. Therefore in the event Shawnee Tobacco Smoke Shop is not, the Absentee Shawnee Tribe Tax Commission requests it be brought into compliance within fifteen days or show just cause for not being in compliance." In January of2006, defendant HALL abandoned the seven year lease and Shawnee Tobacco ceased doing business. 69. Defendant DAVIS, formerly the manager of Shawnee Tobacco, was stopped by the Kansas Highway Patrol in Coffeyville, Kansas on April 28, 2006, while transporting a load of cigarettes worth in excess of $200, He told the trooper that he was self employed, but had a health insurance card on his person imprinted with name of defendant SUNFLOWER. DAVIS was a paid employee of defendant REBEL on the date of this stop. All in violation of 18, United States Code, 371 and 2. COUNTS 2 through 7 CONTRABAND CIGARETTE TRAFFICKING ACT RECORD KEEPING 70. The allegations of paragraphs 1 through 69 are realleged and incorporated in Counts 2 through 7 below as though fully set out herein. 71. Beginning on or about the dates as alleged in each count listed below, in the District of Kansas and elsewhere, defendants, GARY LESTER HALL, THOMAS ANTHONY "TONY" GRANTHAM, KEITH DION NOE, JUSTIN W. BOYES, DANNY RAY DAVIS, JEREMY WAYNE HOOKER, JAMES WILLIAM "JIMMY" COBLE, JUSTICE MICHAEL BERRY, SUNFLOWER SUPPLY COMPANY, INC., REBEL INDUSTRIES, INC., and DISCOUNT TOBACCO WAREHOUSE, did knowingly, and unlawfully ship, transport, receive, possess, sell, and distribute cigarettes, and failed to maintain the required record keeping related to these sales, to wit: failed to keep records listing the name, address, destination (including street address, vehicle license number, 12

13 driver's license number, signature of the person receiving such cigarettes, the name of the purchaser, and/or a declaration of the specific purpose of the receipt (personal use, resale, or delivery to another. COUNT INVOICE NUMBER DATE 2 Sunflower Supply Co Inc #66883 for Pipestone Tobacco # 15 (Shawnee Tobacco 3 Discount Tobacco Warehouse, Inc # for Pipestone #15 (Shawnee Tobacco 4 Discount Tobacco Warehouse, Inc # forpipestone # 15 (Shawnee Tobacco June 20, 2005 June 27,2005 July 5, Sunflower Supply Co Inc # for Pipestone Tobacco # 10 (Firelake July 25, Sunflower Supply Co Inc # for Pipestone Tobacco #15 (Shawnee Tobacco August 10, Discount Tobacco Warehouse, Inc # for Pipestone # 10 (Firelake August 10, 2005 In violation of Title 18, United States Code, 2343(b, 2344(b and 2. COUNTS 8 through 17 MAIL FRAUD 72. The allegations of paragraphs 1 through 71 are realleged and incorporated in Counts 8 through 17 below as though fully set out herein. 13

14 73. Beginning on or about the dates as alleged in each count listed below, in the District of Kansas and elsewhere, defendants GARY LESTER HALL, THOMAS ANTHONY "TONY" GRANTHAM, KEITH DION NOE, JUSTIN W. BOYES, DANNY RAY DAVIS, JEREMY WAYNE HOOKER, JAMES WILLIAM "JIMMY" COBLE, JUSTICE MICHAEL BERRY, SUNFLOWER SUPPLY COMPANY, INC., REBEL INDUSTRIES, INC., and DISCOUNT TOBACCO WAREHOUSE did devise, execute and attempt to execute a scheme and artifice to defraud the State of Oklahoma, and for the purpose ofconcealing and in furtherance of executing such scheme and artifice to defraud, did knowingly, willfully and unlawfully place and cause to be placed in and affecting interstate commerce in the United States Postal Service, an item, to wit: false monthly cigarette reports to be sent or delivered by the United States Postal Service to the Kansas tax administrator, addressed to: Kansas Department of Revenue, Division of Taxation, 915 SW Harrison Street, Topeka, Kansas : Count Date 8 April 2005 report from Sunflower, received on or about May 11, May 2005 report from DTW received on or about June 23, June 2005 report from Sunflower, received on or about July 12, July 2005 report from DTW, received on or about August 25, August 2005 report from Sunflower, received on or about September 14, January 2006 report from Sunflower received on or about February 13, February 2006 report from DTW received on or about March 13, December 2006 report from Sunflower received on or about January 11,

15 16 March 2007 report from Sunflower received on or about April 12, April 2007 report from Sunflower received on or about May 14,2007 In violation of Title 18, United States Code, 1341 and 2. COUNT 18 through 24 WIRE FRAUD: CIGARETTE ORDERS 74. The allegations of paragraphs 1 through 73 are realleged and incorporated in Counts 18 through 24 herein below as though fully set out herein. 75. Beginning on or about the dates as alleged in each count listed below, in the District of Kansas and elsewhere, defendants GARY LESTER HALL, THOMAS ANTHONY "TONY" GRANTHAM, KEITH DION NOE, JUSTIN W. BOYES, DANNY RAY DAVIS, JEREMY WAYNE HOOKER, JAMES WILLIAM "JIMMY" COBLE, JUSTICE MICHAEL BERRY, SUNFLOWER SUPPLY COMPANY, INC., REBEL INDUSTRIES, INC., and DISCOUNT TOBACCO WAREHOUSE, INC., did knowingly, intentionally, and unlawfully devise, execute and attempt to execute a scheme and artifice to defraud the State of Oklahoma, or to obtain money by means of false and fraudulent pretenses, representations, or promises, did transmit or cause to be transmitted, in interstate or foreign commerce cigarette orders, by means of a wire communication, certain signs, signals, pictures or sounds, for the purpose of executing the scheme or artifice: Count Date Wire transmission from and to: 18 May 4, 2005 Internet order from Sunflower in Kansas to Philip Morris in Virginia 19 June 8, 2005 Internet Order from Sunflower in Kansas to Philip Morris in Virginia 15

16 20 January 12,2006 Internet Order from Sunflower in Kansas to Philip Morris in Virginia 21 June 29, 2006 Facsimile order from Willy and Billy's Tobacco Shack (Pipestone 2 in Oklahoma to Sunflower in Kansas 22 December 29, 2006 Facsimile order from 4 Feather-Pryor-Pipestone #27 in Oklahoma to Sunflower in Kansas 23 January 29,2007 Facsimile order from Firelake Express 10-7 in Oklahoma to Sunflower in Kansas 24 April 18, 2007 Facsimile order from Willy and Billy's Tobacco Shack (Pipestone 2 in Oklahoma to Sunflower in Kansas In violation of Title 18, United States Code, 1343 and 2. COUNT 25 WIRE FRAUD: MONEY TRANSFER 76. The allegations ofparagraphs 1 through 75 are realleged and incorporated in Count 25 below herein below as though fully set out herein. 77. On or about January 24,2006, in the District of Kansas and elsewhere, the defendants, GARY LESTER HALL, THOMAS ANTHONY "TONY" GRANTHAM, KEITH DION NOE, JUSTIN W. BOYES, DANNY RAY DAVIS, JEREMY WAYNE HOOKER, JAMES WILLIAM "JIMMY" COBLE, JUSTICE MICHAEL BERRY, SUNFLOWER SUPPLY COMPANY, INC., REBEL INDUSTRIES, INC., and DISCOUNT TOBACCO WAREHOUSE, INC., did knowingly, intentionally, and unlawfully devise, execute and attempt to execute a scheme and artifice to defraud the State of Oklahoma, or to obtain money by means of false and 16

17 fraudulent pretenses, representations, or promises, did transmit or cause to be transmitted, in interstate or foreign commerce, by means of a wire communication, certain signs, signals, pictures or sounds, for the purpose of executing the scheme or artifice, to wit: defendant HOOKER caused to be transmitted electronic wire transfers from Pipestone Smoke Shop's account at Mayes Credit Union account XXX5868 of$967, to the US Bank account of Sunflower Supply Company, Inc., in Joplin, MO. In violation of Title 18, United States Code, 1343 and 2. COUNTS 26 through 31 INTERSTATE TRANSPORTATION IN AID OF RACKETEERING 78. The allegations of paragraphs 1 through 77 are realleged and incorporated in Counts 26 through 31 below as though fully set out herein. 79. Beginning on or about the dates as alleged in each counts listed below, in the District of Kansas and elsewhere, defendants, GARY LESTER HALL, THOMAS ANTHONY "TONY" GRANTHAM, KEITH DION NOE, JUSTIN W. BOYES, DANNY RAY DAVIS, JEREMY WAYNE HOOKER, JAMES WILLIAM "JIMMY" COBLE, JUSTICE MICHAEL BERRY, SUNFLOWER SUPPLY COMPANY, INC., REBEL INDUSTRIES, INC., and DISCOUNT TOBACCO WAREHOUSE, INC., traveled or used the mail in interstate or foreign commerce to and from Oklahoma and Kansas, with the intent to promote, manage, establish, carry on, and facilitate the promotion, management, establishment, and carrying on of an unlawful activity, money laundering, and thereafter performed and attempted to perform an act, to wit: checks representing payment for cigarettes were either mailed or transported by Defendant REBEL trucks between Oklahoma and Kansas, as more fully set out below: 17

18 COUNT DATE MANNER 26 On or between June 13 to June 21, 2005 Defendant REBEL transported and delivered from Oklahoma to SUNFLOWER in Kansas checks payable to Gawkskey, Inc., U.S. Bank, including but not limited to: A check written on the account of Willy and Billy's Tobacco Shack, dated June 14,2005, in the amount of$12, A check written on the account of Eufaula Smoke Shop, dated June 14, 2005, in the amount of $21, On or between June 29 to July 7,2005 Defendant REBEL transported and delivered from Oklahoma to SUNFLOWER in Kansas checks payable to Gawkskey, Inc., U.S. Bank, including but not limited to: A check written on the account of Gawkskey, Inc., Armstrong Bank, dated June 30, 2005 in the amount of $25, A check written on the account of Eufaula Smoke Shop, dated June 30, 2005, in the amount of$16, On or about July 7, 2005 Firelake mailed from Oklahoma to defendant SUNFLOWER, received in Kansas two checks written on Firelake accounts payable to Gawkskey, Inc. Check # dated July 7, 2005 for $63, Check #3936 dated July 7,2005 for $39, l

19 29 On or between July 7 to July 15,2005 Defendant REBEL transported and delivered from defendant SUNFLOWER in Kansas to Oklahoma, a check payable to Pipestone Tobacco, written on the Gawkskey, Inc., US Bank, and signed by defendant NOE: Check #1009 dated July 12,2005, for $103, with the notation "Firelake deposit" on the face of the check 30 On or between August 3 to 9, 2005 Defendant REBEL transported and delivered from Oklahoma to SUNFLOWER in Kansas checks payable to Gawkskey, Inc., US Bank, including but not limited to: A check written on the account of Gawkskey, Inc., Armstrong Bank, dated August 4, 2005 in the amount of $15, A check written on the account of Eufaula Smoke Shop dated August 4, 2005 in the amount of $13, On or between August 8 to 11, 2005 Defendant REBEL transported and delivered from SUNFLOWER in Kansas to Oklahoma check payable to Pipestone Tobacco, Check #1035 dated August 10, 2005 in the amount of $292, In violation of Title 18, United States Code, 1952(a (1 and 2. COUNT 32 CONTRABAND CIGARETTE TRAFFICKING ACT TRANSPORTING CONTRABAND CIGARETTES 80. The allegations of paragraphs 1 through 79 are realleged and incorporated in Count 33 below as though fully set out herein. 19

20 81. On or about April 28, 2006, in the District of Kansas, the defendant, DANNY RAY DAVIS, did knowingly and unlawfully ship, transport, and possess more than 10,000 contraband cigarettes which did not have the applicable tax stamp affixed thereto. COUNT 33 In violation of Title 18, United States Code, 2342 (a; 2344 (a and 2. CONSPIRACY TO COMMIT MONEY LAUNDERING 82. The allegations of paragraphs 1 through 81 are realleged and incorpporated in Count 33 below as though fully set out herein 83. Beginning on or about sometime in January 2005 through May 7, 2007 the exact dates being unknown to the grand jury, in the District of Kansas and elsewhere, defendants, GARY LESTER HALL, THOMAS ANTHONY "TONY" GRANTHAM, KEITH DION NOE, JUSTIN W. BOYES, DANNY RAY DAVIS, JEREMY WAYNE HOOKER, JAMES WILLIAM "JIMMY" COBLE, JUSTICE MICHAEL BERRY, SUNFLOWER SUPPLY COMPANY, INC., REBEL INDUSTRIES, INC., and DISCOUNT TOBACCO WAREHOUSE, INC., did knowing and intentionally combine, conspire, confederate, and agree with each other and with others, both known and unknown to the grand jury, to commit offenses against the United States in violation of Title 18, United States Code, 1956 and 1957, to wit: 84. to knowingly conduct or caused to be conducted financial transactions affecting interstate or foreign commerce, which involved the proceeds of specified unlawful activities, that is Mail Fraud and Wire Fraud, in violation of Title 18, United States Code, 1341 and 1343; with the intent to promote the carrying on of these specified unlawful activities, and that while conducting and attempting to conduct such financial transactions knew that the property involved in the financial transaction represented the proceeds of some form of unlawful activity in violation of Title 18, United States Code, 1956(a(l(A(i; and 20

21 85. To knowingly conduct and attempt to conduct financial transactions affecting interstate and foreign commerce, which transactions involved the proceeds of specified unlawful activity, that is, Mail Fraud and Wire Fraud, in violation oftitle 18, United States Code, 1341 and 1343; knowing that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership and control of the proceeds of unlawful activity and that while conducting and attempting to conduct such financial transactions knew that the property involved in the financial transaction represented the proceeds of some form of unlawful activity in violation of Title 18, United States Code, 1956(a(l(B(i; and 86. to knowingly engage and attempt to engage, in monetary transactions by, through or to a financial institution affecting interstate and foreign commerce, in criminally derived property of a value greater than $10,000, that is such property having been derived from a specified unlawful activity, that is, Mail Fraud and Wire Fraud, in violation of Title 18, United States Code, 1341 and 1343, in violation of Title 18, United States Code, MANNER AND MEANS OF THE CONSPIRACY 87. The defendants obtained the proceeds from the conspiracy and scheme to defraud, as alleged in Counts 1 through 25 and 32 ofthis Indictment and did engage in numerous financial transactions involving these proceeds, including but not limited to, financial transactions for the payment of cigarettes, tax stamps, and the maintenance and/or payments toward an aircraft and vehicles, as alleged and incorporated in Counts 34 through 44, in order to promote the carrying on of specified unlawful activities, to wit: Mail Fraud and Wire Fraud and in part or in whole, to conceal and disguise the nature, location, source, ownership and control of the proceeds ofthese unlawful activities. All ofthese financial transactions were of a value greater than $10, In violation of Title 18, United States Code, 1956(h and 2. COUNTS 34 through 36 MONEY LAUNDERING 88. The allegations ofparagraphs 1 through 87 are realleged and incorporated in Counts 34 through 36 below as though fully set out herein. 89. Beginning on or about the dates as alleged in each count listed below, in the District of Kansas and elsewhere, defendants, GARY LESTER HALL, THOMAS ANTHONY "TONY" GRANTHAM, KEITH DION NOE, JUSTIN W. BOYES, DANNY RAY DAVIS, JEREMY WAYNE HOOKER, JAMES WILLIAM "JIMMY" COBLE, 21

22 JUSTICE MICHAEL BERRY, SUNFLOWER SUPPLY COMPANY, INC., REBEL INDUSTRIES, INC., and DISCOUNT TOBACCO WAREHOUSE, INC., knowing that the property involved in the financial transactions listed below represented the proceeds of some form of unlawful activity, knowingly and willfully conducted, and caused to be conducted, the financial transactions below designed in whole and in part to conceal and disguise the nature, location, source, ownership and control of the proceeds of unlawful activity and was conducted with the intent to promote the carrying on ofthe specified unlawful activities, to wit: Mail Fraud, in violation of Title 18, United States Code, Sections 1341 and 2 and/or Interstate Transportation in Aid of Racketeering, in violation of Title 18, United States Code, Sections 1952 (a and 2; and each transaction involved the use of a financial institution engaged in, and the activities of which, affected interstate commerce: ICount Date of Offense Financial Transaction/lnstitution Amount rjune 14,2005 Check #2487 drawn on National Tobacco $63, ~istributors, Inc.'s BancFirst Bank account XXXXX7042 payable to Gawkskey, Inc. I o purchase cigarettes ~5 ~uly 1,2005 K:heck #2507 drawn on National Tobacco ~27, Distributors, Inc.'s BancFirst Bank account pexxxxx7042 payable to Gawkskey, Inc. o purchase cigarettes 36 ~ugust 5, 2005 ~heck #2550 drawn on National Tobacco ~35, Distributors, Inc.'s BancFirst Bank account pexxxxx7042 payable to Gawkskey, Inc. o purchase cigarettes In violation of Title 18, United States Code, 1956(a (1 and 2. COUNTS 37 through 43 ENGAGING IN A MONETARY TRANSACTION 90. The allegations ofparagraphs 1 through 89 are realleged and incorporated in Counts 37 through 43 below as though fully set out herein. 91. Beginning on or about the dates as alleged in each count listed below, in the District of Kansas and elsewhere, defendants, GARY LESTER HALL, THOMAS ANTHONY "TONY" GRANTHAM, KEITH DION NOE, 22

23 JUSTIN W. BOYES, DANNY RAY DAVIS, JEREMY WAYNE HOOKER, JAMES WILLIAM "JIMMY" COBLE, JUSTICE MICHAEL BERRY, SUNFLOWER SUPPLY COMPANY, INC., REBEL INDUSTRIES, INC., and DISCOUNT TOBACCO WAREHOUSE, INC., knowingly engaged and attempted to engage in a monetary transaction by, through or to financial institutions, affecting interstate or foreign commerce, in criminally derived property of a value greater than $10,000.00, that is, deposits, withdrawals, transfers, and exchanges described below of United States currency, funds, and monetary instruments in the amounts specified below, such property having been derived from a specified unlawful activity, that is Mail Fraud in violation of Title 18, United States Code, Section 1341 and 2 and/or Interstate Transportation in Aid of Racketeering in violation of Title 18, United States Code, Sections 1952 (a and 2; on the dates and in the amounts alleged as follows: Count Date of Offense Monetary Transaction/Financial Institution Amount 37 July 7, 2005 Wire transfer from Hall's Wholesale Co. Inc.' s bank account X XXX XXXX 9190 payable to Desert BMW of Las Vegas for 2006 BMW 38 July 12, 2005 Check #1009 drawn on Gawkskey's Inc.' s US Bank Account X XXX XXXXX 4257 payable to Pipestone Tobacco for cigarettes 39 August 9, 2005 Check #71285 drawn on Sunflower Supply Company, Inc.'s US Bank account X XX XXXX 3528 payable to Oklahoma Tax Commission to purchase exception rate tax stamps 40 August 10, 2005 Check #1035 drawn on Gawkskey's Inc.'s US Bank account X XXX XXXX 4257 payable to Pipestone Tobacco for cigarettes 41 February 1,2006 Electronic transfer from Sunflower Aircraft's American Bank account X3051 to GE Capital for loan payment on Hawker 800XP aircraft $86, $103, $61, $292, $39,

24 42 March 8, 2007 Check #80336 drawn on Sunflower Supply Company, Inc.' s US Bank account X XXX XXXX 3528 payable to Mizzou Aviation for aircraft expenses 43 April 10, 2007 Check #2692 drawn on Rebel Industries, Inc.'s American Bank account XXX2322 payable to Crossroads Chevrolet Cadillac for purchase of a utility van $14, $31, In violation oftitle 18, United States Code, 1957 and 2. FORFEITURE FORFEITURE ALLEGATION 92. The allegations ofparagraphs 1 through 91 ofthis Indictment are realleged and incorporated as though fully set out herein for the purpose of alleging forfeiture pursuant to 18 U.S.c. 981(a(1(C and 982 and 28 U.S.C. 2461(c. 93. Upon conviction of one or more ofthe offenses alleged in Counts 1, and Counts 8 through 25 ofthis Indictment, the Defendants shall forfeit to the United States pursuant to 18 U.S.C. 981(a(1(C and 28 U.S.C. 2461(c, all property constituting or derived from proceeds obtained directly or indirectly as a result of the said violations, and pursuant to 18 U.S.C. 982, all property involved in Counts 26 through 31, and Counts 31-43, including but not limited to the following: A. MONEY JUDGMENT: A sum of money equal to the amount of gross proceeds received as a result ofthe offenses in Counts 1, and 8 through 25 ofthis Indictment, which sum the Defendants are jointly and severally liable. B. PERSONAL PROPERTY: (1 Hawker Beechcraft Model 4000 jet aircraft, Serial Number RC-7, Registration # N7007Q (pending change to N711GD, including all maintenance aircraft logs, with all attachments thereon; ( BMW automobile, VIN: WBAHN83536DT26819, with all attachments thereon; ( Chevrolet Utilimaster Van, VIN: 1GB-JG , with all attachments thereon; 24

25 .. C. REAL PROPERTY: (1 A parcel ofland located at 5964 West 7 th, Joplin, Missouri, with all appurtenances, improvements and attachments thereto, also described as: TRACT 1: ALL OF A TRACT OF LAND DESCRIBED AS BEGINNU'lG AT THE NORTHEAST CORNER OF THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 12, TOWNSHIP 27, RANGE 34, JASPER COUNTY, MISSOURI, THENCE WEST 189 FEET, THENCE SOUTH 80 RODS, THENCE EAST 189 FEET, THENCE NORTH 80 RODS TO THE POU\lT OF BEGINNU\lG. TRACT 2: ALL OF THE NORTH ONE-HALF OF THE NORTHEAST QUARTER OF SECTION 12, TOWNSHIP 27, RANGE 34, JASPER COUNTY, MISSOURI EXCEPT ONE ACRE U\l THE SOUTHEAST CORNER THEREOF USED FOR CEMETERY PURPOSES. TRACT 3: ALL OF THE TRACT OF LAND LOCATED AS FOLLOWS: BEGINNU\lG 791 FEET EAST AND 296 FEET SOUTH OF THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 12, TOWNSHIP 27, RANGE 34, JASPER COUNTY, MISSOURI, THENCE SOUTH 1024 FEET TO THE SOUTH LU\lE OF SAID QUARTER, THENCE EAST ALONG SAID LU\lE 340 FEET, THENCE NORTH 1024 FEET, THENCE WEST 340 FEET TO THE PLACE OF BEGINNU\lG. (2 A parcel ofland located at 5593 West Junge, Joplin, Missouri, with all appurtenances, improvements and attachments thereto, also described as: All that part of the South half (S Y2 of the Northeast Quarter (NE 114 of Section 12, Township 27, Range 34, Jasper County, Missouri, described as follows: Beginning at the East Quarter (E 114 comer of said Section 12, thence South 89 degrees 05' 51" West along the South line of said Northeast Quarter (NE 114, feet, thence North 0 degrees 04'42" East feet to the North line of said South Half (S Y2 of the Northeast Quarter (NE 114, thence North 89 degrees 10'53" East along said line feet to the Northeast corner of said South Half(S Y2 of the Northeast Quarter (NE 114, thence South 0 degrees 04'42" West along the East line of said 114, feet to the point of beginning, EXCEPT any part taken or deeded for road rights-of-way off the South and East sides thereof. All pursuant to Title 18, United States Code, 981 and 982 and 28 U.S.C. 2461(c. 25

26 94. If any of the property described in the Forfeiture Allegation, as a result of any act or omission of any defendants, 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; d has been substantially diminished in value; or e has been commingled with other property which cannot be divided without difficulty, the United States of America shall be entitled to forfeiture of substitute property pursuant to Title 21, United States Code, Section 853(p, as incorporated by Title 28, United States Code, Section 2461(c, including but not limited to the following: (l A parcel ofland located at 1101 West 7 t \ Galena, Kansas, with all appurtenances, improvements and attachments thereto, also described as: A part of the Southeast Quarter (SE/4 of the Southeast Quarter (SE/4 of the Southeast Quarter (SE/4 of Section Fifteen (15, Township Thirty-four (34 South, Range Twenty-five (25 East of the Sixth Principal Meridian, Cherokee County, Kansas and being more particularly described as follows: Beginning at a point which is located by commencing at the Southeast corner of said quarter quarter quarter section, thence North Zero degree and Thirteen (13 minutes East along the East line of said quarter quarter quarter section for Thirty (30.00 feet, thence South Eighty-nine (89 degrees, Fifty-nine (59 minutes and Sixteen (16 seconds West and parallel with the South line of said quarter quarter quarter section for Two hundred twenty-five ( feet to the aforementioned place of beginning, thence from said place of beginning continue South Eightynine (89 degrees, Fifty-nine (59 minutes and Sixteen (16 seconds West and parallel with the South line of said quarter quarter quarter section for Sixty-three and eighty hundredths (63.80 feet, thence North Thirty-five (35 degrees, and Thirty-three (33 minutes, and Two (2 seconds West for Nineteen and twenty hundredths (19.20 feet, thence North seventy-six (76 degrees, and Sixteen (16 minutes West for Twenty-three and five hundredths (23.05 feet, thence North Two (2 degrees and Forty-five (45 minutes, and Four (4 seconds West for Two hundred eighty-eight and twenty-two hundredths ( feet thence North Eighty-nine (89 degrees, Fifty-nine (59 minutes, and sixteen (16 seconds East and parallel with the South line of said quarter quarter quarter section for One hundred twelve and thirty-six hundredths (112.36' feet, thence South Zero (0 degree and Thirteen (13 minutes West and parallel with the East line of said 26

27 .. quarter quarter quarter section for Three hundred nine ( feet to the place of beginning; The above described real estate IS subject to any legal rights-of-way and easements of record. ALSO a Twenty (20.00 foot easement for ingress and egress and being more particularly described as follows: Beginning at a point which is located by commencing at the Southeast comer of said quarter quarter quarter section, thence North Zero (0 degree and Thirteen (13 minutes East along the East line of said quarter quarter quarter section, for Thirty (30.00 feet, thence South Eighty-nine (89 degrees, Fifty-nine (59 minutes and Sixteen (16 seconds West and parallel with the Southline of said quarter quarter quarter section for Two hundred eighty-eight and eighty hundredths ( feet to the aforementioned place of beginning, thence from said place of beginning North Thirty-five (35 degrees, Thirty-three (33 minutes, and Two (2 seconds West for Nineteen and twenty hundredths (19.20 feet, thence North Seventy-six (76 degrees and Sixteen (16 minutes West for Twenty-three and five hundredths (23.05 feet, thence South Two (2 degrees, Forty-Five (45 minutes, and Four (4 seconds East for Twenty and eighty-six hundredths (20.86 feet, thence South Seventy-six (76 degrees and Sixteen (16 minutes East for One and fourteen hundredths (1.14 feet, thence North Eightynine (89 degrees, Fifty-nine (59 minutes, and Sixteen (16 seconds East and parallel with the South line of said quarter quarter quarter section for Thirty-one and forty-five hundredths (31.45 feet to the place of beginning. (2 A parcel ofland located at 5593 West Junge, Joplin, Missouri, with all appurtenances, improvements and attachments thereto, also described as: All that part of the South half (S Yz of the Northeast Quarter (NE Y4 of Section 12, Township 27, Range 34, Jasper County, Missouri, described as follows: Beginning at the East Quarter (E Y4 comer of said Section 12, thence South 89 degrees 05'51" West along the South line of said Northeast Quarter (NE Y4, feet, thence North 0 degrees 04'42" East feet to the North line of said South Half (S Yz of the Northeast Quarter (NE Y4, thence North 89 degrees 10' 53" East along said line feet to the Northeast comer of said South Half(S Yz of the Northeast Quarter (NE Y4, thence South 0 degrees 04'42" West along the East line of said Y4, feet to the point of beginning, EXCEPT any part taken or deeded for road rights-of-way off the South and East sides thereof. 27

28 (3 A condominium located at 2877 Paradise Road, Unit 3303, Las Vegas, Nevada, with all appurtenances, improvements and attachments thereto, also described as: PARCEL ONE (1: LIVING UNIT PH3303 IN PHASE ONE (1 OF FINAL MAP - AMENDMENT I OF TURNBERRY PLACE AS SHOWl'1 BY MAP THEREOF ON FILE IN BOOK 97 OF PLATS, PAGE 29, AND AS SET FORTH IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND RESERVATION OF EASEMENTS (THE II DECLARATION" FOR ONE TURNBERRY PLACE, RECORDED JANUARY 14,2000 IN BOOK AS DOCUMENT NO , BOTH IN THE OFFICE OF THE COUNTY RECORDER OF CLARK COUNTY, NEVADA. PARCEL TWO (2: ONE (1 ALLOCATED INTEREST AS A TENANT-IN-COMMON IN THE COMMON ELEMENTS OF TURNBERRY PLACE (INCLUDING ANY ANNEXATIONS THERETO, AS SHOWl\1 BY MAP THEREOF ON FILE IN BOOK 97 OF PLATS, PAGE 29, IN THE OFFICE OF THE COUNTY RECORDER OF CLARK COUNTY, NEVADA, AND AS SET FORTH IN THE DECLARATION. AS PHASES ARE ADDED OR WITHDRAWl\1 TO ONE TURNBERRY PLACE THE ALLOCATED INTEREST FOR EACH UNIT WILL BE AS SET FORTH IN SECTION 1.1 OF THE DECLARATION. RESERVING THEREFROM FOR THE BENEFIT OF OWl\1ERS IN FUTURE DEVELOPMENT, NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT AND OTHER PURPOSES, ALL AS DESCRIBED IN THE MASTER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND RESERVATION OF EASEMENTS (THE "MASTER DECLARATION" FOR TURNBERRY PLACE RECORDED JANUARY 14,2000 IN BOOK AS DOCUMENT NO , AND THE DECLARATION, AS THE SAME MAY FROM TIME TO TIME BE AMENDED AND/OR SUPPLEMENTED IN THE OFFICE OF THE COUNTY RECORDER OF CLARK COUNTY, NEVADA. FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF OTHER OWNERS IN ONE TURNBERRY PLACE, EXCLUSIVE EASEMENTS APPURTENANT TO THEIR UNITS, OVER ANY LIMITED COMMON ELEMENTS ALLOCATED TO SUCH UNITS AS SHOWl\1 ON EXHIBIT lid" IN THE DECLARATION. PARCEL THREE (3: AN EXCLUSIVE EASEMENT APPURTENANT TO PARCELS ONE (1 AND TWO (2 DESCRIBED ABOVE, OVER AREAS DEFINED AND DESCRIBED AS LIMITED COMMON ELEMENTS, ALLOCATED TO PARCELS ONE (1 AND TWO (2 IN THE DECLARATION AND AS SHOWl\1 AND DELThTEATED UPON THE PLAT REFERRED TO ABOVE. 28