Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 1 of 14 UNITED STATES DISTRICT COURT District of Kansas UNITED STATES OF AMERICA, Plaintiff, v. CASEN0.16-M-!.Dl 0 fl-ol- l<frg:- GEORGE S. JAMES, FILED UNDER SEAL Defendant. CRIMINAL COMPLAINT I, the undersigned complainant, being duly sworn, state that the following is true and correct to the best of my knowledge and belief: COUNT ONE 18 U.S.C. 1343 Wire Fraud On an unknown date but continuing through October 7, 2016, in the District of Kansas, the defendant, GEORGES. JAMES, did devise a scheme and artifice to defraud and to obtain money by false and fraudulent pretenses, representations, and promises, did transmit and cause to be transmitted by means
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 2 of 14 of interstate commerce writings, signs, signals, pictures and sounds for the purpose of executing such scheme and artifice, to wit; the defendant submitted, via the internet, a form to the Department of Finance for Sedgwick County, Kansas, representing that he was R.C. of Cornejo & Sons, LLC, (hereinafter referred to as Cornejo) directing Sedgwick County to issue payments due to Cornejo, via the Automated Clearing House (ACH) to a new bank account at Wells Fargo Bank, account number xxxx xx 5764, thereby causing employees of Sedgwick County to make an electronic transfer of funds, via the internet, from Sedgwick County's bank account at Intrust Bank, in Wichita, Kansas, to the Wells Fargo account number xxxx xx 5764, an account opened in the State of Georgia In violation of Title 18, United States Code Section 1343 and 18 U.S.C. Section 2. I further state that I am a Special Agent of the Federal Bureau oflnvestigation (FBI), and that this Complaint is based on the following facts: SEE ACCOMPANYING AFFIDAVIT, WHICH IS INCORPORATED BY REFERENCE AS THOUGH SET OUT IN FULL HEREIN. ~~ RYA~ROSS, Special Agent Federal Bureau of Investigation 2
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 3 of 14 Sworn to before me and subscribed in my presence this zj~day of December, 2016, at Wichita, Kansas. After reviewing this Complaint and the accompanying Affidavit, there is probable cause to believe that the defendant, George S. James, committed the offense set forth in this Complaint. 3
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 4 of 14 UNITED STATES DISTRICT COURT DISTRICT OF KANSAS UNITED STATES OF AMERICA, ) ) Plaintiff, ) ) CASE NO. vs. ) ) FILED UNDER SEAL GEORGE S. JAMES, ) ) Defendant. ) ) AFFIDAVIT IN SUPPORT OF APPLICATION FOR CRIMINAL COMPLAINT I, Ryan S. Ross, Special Agent of the Federal Bureau of Investigation, being duly sworn, state the following: INTRODUCTION 1. This Affidavit is offered in support of an Application for Criminal Complaint for GEORGES. JAMES (hereinafter "JAMES"), a black male, date of birth February 20, 1968, for violation of Title 18 U.S.C. 1343 (Fraud by Wire, Radio, or Television). 2. Since October 2016, federal and state law enforcement officers have been conducting an investigation into a business e-mail spoofing scheme that fraudulently obtained payment of more than Five Hundred Sixty-Six Thousand Page 1of11
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 5 of 14 Dollars ($566,000.00) from Sedgwick County, Kansas, (hereinafter "Sedgwick County") in violation of Title 18 U.S.C. 1343. 3. Based on the facts as set forth in this Affidavit, there is probable cause to believe that: a. JAMES devised a scheme to obtain money from Sedgwick County by means of false or fraudulent pretenses; b. For the purpose of executing this scheme, JAMES transmitted or caused to be transmitted wire communication(s) in interstate commerce; and c. This scheme to obtain money by false or fraudulent pretenses affected a financial institution. 4. I am a Special Agent of the Federal Bureau of Investigation (FBI), and currently assigned to the Kansas City Division, Wichita Resident Agency. I have been employed by the FBI since January of 2015. Prior to commencing service with the FBI, I was an attorney licensed to practice law in the State of Indiana, where I practiced for approximately eight years. As a Special Agent of the FBI, I have participated in a wide variety of criminal investigations, including: white collar, bank robberies, crimes against children, illegal gambling businesses, and other violent and non-violent Federal offenses. Additionally, I have participated in the execution of multiple search and arrest warrants. Page 2of11
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 6 of 14 5. The statements contained in this affidavit are based on information known to me as a result of my participation in this investigation or on information provided to me by witnesses or other law enforcement personnel involved in this investigation. BACKGROUND RELATED TO CASE INVESTIGATION 6. Sedgwick County contracted with contractor Cornejo & Sons, LLC, (hereinafter "Cornejo & Sons") for Project No. 2016 Bond Tekk (Rl 75-J) (hereinafter "Bond Tekk Project"). The contract was scheduled to start on June 22, 2016 and have an end date of December 31, 2016. 7. R. C. is a former owner of Cornejo & Sons, a family-built construction company located in Wichita, Kansas. In 2013, Summit Materials, LLC acquired Cornejo & Sons. R. C. has not been a member of the company for several years now. 8. On September 23, 2016, Sedgwick County Director/County Engineer, David Spear, signed off on a Certification as to Completion of Work and a Contractor's Pay Estimate which approved payment of Five Hundred Sixty-Six Thousand Eighty-Eight Dollars and Ninety Cents ($566,088.90) to Cornejo & Sons for completion of Bond Tekk Project. 9. Vendors contracting with Sedgwick County can choose to receive direct deposit of payments on their contracts through enrolling m Automated Page 3of11
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 7 of 14 Clearing House (ACH) payments. To enroll, vendors are to complete and sign an "Authorization for ACH Deposit of Vendor Payment" form (hereinafter "ACH form") and forward it to a designated mailing address, fax number, or e-mail address. The form, instructions for completing the form, and designated recipient addresses are all provided on-line at www.sedgwickcounty.org. 10. If a vendor has already enrolled in ACH payments, but subsequently changes account numbers or financial institutions, then it would notify Sedgwick County by completing and signing another ACH form. On this second form, it would simply indicate where necessary that it is a financial institution or account change as opposed to a new enrollment. This form would then be forwarded to a designated mailing address, fax number, or e-mail address. If e-mailed, the form then goes directly in to the OnBase Program used by Sedgwick County, where it is received by the Accounts Payable department. The Accounts Payable department then manually enters the change(s) into the accounts payable program ("SAP"). 11. The day before an ACH payment is deposited into a vendor's account, the SAP program generates and sends an "ACH Payment Advice" to the vendor. 12. The vendor contract information for awarded contracts for goods & services, professional services, construction, architectural & engineering, and technology can also be found on-line at www.sedgwickcounty.org. This information includes: contract number; contract name; contractor name; contract start date; Page 4of11
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 8 of 14 contract end date; total contract value; buyer name; and attached documents (Board of County Commissioners Recommendation and/or Legal Contract). PROBABLE CAUSE 13. This investigation began in October 2016 after the Sedgwick County Sheriffs Department reported to the FBI that Sedgwick County was fraudulently induced to disburse the above-referenced payment of Five Hundred Sixty-Six Thousand Eighty-Eight Dollars and Ninety Cents ($566,088.90) to Cornejo & Sons into an incorrect account. 14. On September 23, 2016, Sedgwick County received an e-mail from r.cornejo@cornejocorp.net requesting a change to vendor bank routing and account information for Cornejo & Sons. Attached to this e-mail was a completed ACH form. The attached form was an older version of the form currently accessible on-line at www.sedgwickcounty.org, but was e-mailed to the designated e-mail address on the current form -AP_invoices@sedgwick.gov. 15. The attached ACH form indicated it was being submitted for the purpose of a financial institution or account change and provided the following information: a. Payee/Vendor Name: Cornejo & Sons LLC b. Address: 2060 E. Tulsa Street, Wichita, KS 67216 Page 5of11
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 9 of 14 c. Telephone: (xxx) xxx-4003 1 d. Contact Name: R. C. 2 e. Contact e-mail: r.cornejo@cornejocorp.net f. Bank Name: Wells Fargo g. Branch: MAC N9301-041 h. City, State Zip: Minneapolis, MN 55479 1. Transit/Routing Number: 061000227 J. Bank Account: xxxxxx5764 3 k. Account Type: Checking The ACH form was signed "R. [C.]" 4 and was dated "23/09/2016" and identified R. C. as holding the title of "CEO." 16. During the course of this investigation, several subpoenas have been issued. One of those subpoenas was issued to Wells Fargo Bank seeking any and all account holder information for Wells Fargo account number xxxxxx5764. The return from Wells Fargo provided, among other things, the following information: a. The Business Account Application for this account was processed on March 5, 2016; 1 The full telephone number provided has been redacted to protect privacy of user/owner of the number. 2 The full name provided has been redacted for protection of privacy. 3 The full account number provided has been redacted to protection of financial infom1ation. The account will be referenced as "xxxxxx5764" throughout the remainder of this document. 4 Signature modified to protection of privacy. Page 6of11
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 10 of 14 b. The business associated with this account was Rapid Repairs and Consultants, and the sole owner/signer for the business/account was JAMES, date of birth February 20, 1968, address 3833 Peachtree Road NE, Apartment 809, Brookhaven, Georgia 30319; c. While the business is not enrolled in on-line banking, the account is enrolled in online banking under GEORGES. JAMES and the e-mail address is rapiddynamics@gmail.com; and d. Surveillance photos show an individual, matching the description of JAMES, conducting ATM and in-person, counter transactions for this account in the State of Georgia. 17. A search on Bizapedia, an on-line search engine providing free company and people searches, revealed that Rapid Repairs and Consultants is a Georgia Domestic Profit Corporation filed on April 10, 2012. There are three principals on record for the company, namely: B. F., George S. James, and P. C. 18. Driver's license records for JAMES revealed the following information: a. Driver's License Number: xxxxx5579 5 b. Date of Birth: February 20, 1968 5 Full driver's license number redacted for protection of privacy. Page 7of11
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 11 of 14 c. Address: 3833 Peachtree Road NE, Apartment #809, Brookhaven, GA 30319 19. The surveillance photos provided by Wells Fargo were compared to JAMES'S driver's license photo and investigators believe the photos depict the same individual - specifically JAMES. 20. A criminal history check on JAMES revealed, among other things, the following alias names: a. George James; b. James S. James; c. Oladoke Oniwinde; d. George Oladoke Oniwindle; e. George Samuel James; f. George Oniwinde; and g. Olavoke Akintola Oniwinde. 21. On or about October 5, 2016, Cornejo & Sons inquired to Sedgwick County, via telephone, when payment would be made on the Bond Tekk Project. Sedgwick County subsequently advised Cornejo & Sons that payment was contingent upon Cornejo & Sons submitting its Project Completion Certificate. On that same day, Cornejo & Sons sent an e-mail from @cornejocorp.com to Page 8of11
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 12 of 14 @sedgwick.gov 6 submitting the Project Completion Certificate as an attachment. Sedgwick County then responded to Cornejo & Sons that the form was sufficient and payment would be made on October 6, 2016. 22. Sedgwick County then processed the Cornejo & Sons Project Completion Certificate and, on October 6, 2016, an SAP ACH Payment Advice was generated and e-mailed to @cornejocorp.com. 7 23. On October 7, 2016, an ACH payment in the amount of Five Hundred Sixty-Six Thousand Eighty-Eight Dollars and Ninety Cents ($566,088.90) was generated by Sedgwick County for the Bond Tekk Project and deposited into Wells Fargo checking account, account number xxxxxx5764 (the account identified on the ACH form attached to the e-mail received from r.cornejo@cornejocorp.net). 24. On October 25, 2016, after not having received payment yet, Cornejo & Sons again inquired to Sedgwick County, via telephone, when payment would be made on the Bond Tekk Project. After multiple telephone calls between Sedgwick County and Cornejo & Sons, and some researching of the issue by Sedgwick County, it was determined that Cornejo & Sons did not send the e-mail from r.cornejo@cornejocorp.net, nor did it submit a request to change its vendor account information from its current bank to Wells Fargo. 6 Full e-mail addresses redacted to protect privacy. 7 Full e-mail address redacted to protect privacy. Page 9of11
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 13 of 14 25. Sedgwick County then contacted Intrust Bank (the bank at which Sedgwick County maintains its account) to identify actions it could take to possibly recall the ACH transfer or trace the payment. Ultimately, Sedgwick County was too late to recall the ACH transfer, but did receive assistance from Intrust Bank in getting Wells Fargo to freeze the account and tum the transaction over to Wells Fargo's fraud department. CONCLUSION 26. Based upon the aforementioned facts, there is probable cause to believe that JAMES violated Title 18 U.S.C. 1343, Fraud by Wire, Radio, or Television in that he: a. Devised a scheme to obtain money by false or fraudulent pretenses; and b. For the purpose of executing this scheme, transmitted or caused to be transmitted wire communications in interstate commerce. 27. JAMES sent an e-mail, or caused an e-mail to be sent, to Sedgwick County from a spoofed e-mail account for the purpose of executing a scheme to obtain money by means of false or fraudulent pretenses. Sedgwick County then transferred, via a routing number attributable to a Wells Fargo location in Minneapolis, Minnesota, Five Hundred Sixty-Six Thousand Eighty-Eight Dollars Page 10of11
Case 6:16-mj-06191-KGG Document 1 Filed 12/28/16 Page 14 of 14 and Ninety Cents ($566,088.90), intended for Cornejo & Sons, into an account controlled by JAMES at Wells Fargo. FURTHER AFFIANT SA YETH NAUGHT.,. Special Agent Federal Bureau of Investigation SUBSCRIBED TO AND SWORN before me this -z!6day of December, 2016. U ited States Judge istrict of Kansas Page 11of11