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SEA LED
The Gr nd J y Char st t a ur ge ha :
BACKGROUND
Atal tm e r e ntt t sl c me ,unl s o her s i caed: l i s elva o hi ndi t nt e s t wie ndi t He tTr cs I ,f mery doi busi s asSi ie,I .a Re om ar oni , nc. or l ng ne s gnalf nc nd c
t - r hea tmoniorng d c caled t Fi iy 1 Si iewasi or a e i he a t r t i evi e l he delt 00. gnalf nc por t d n Delwar a he dqua t r i Gr nvil Sout Ca olna. Si lf w a apublcy a e nd a re ed n ee le, h r i gna ie s il
tade company snc i oraboutSe embe 2002.Issoc w a lsed on t Am e i an r d i en pt r t t k s it he rc
2.
com pa i por ed i D el w ar and hea ny ncor at n a e dqua e ed i Boca Ra on,Fl i On or rtr n t orda.
aboutSe em ber 1 2002,ARC Fi nce ac r a oxi a el 85 pe c oft soc pt 9, na quied ppr m t y r ent he t k ofSi ie. The wi eofdef gnalf f endantM I TCHELL J.STEI w ast nom i low ne of N he na r
A RC Fi nance.
3.
4.
Boc Rat Fl i Coa on, orda. cons r t 1pur t t be,atvaroustm es t co- ef pia or pored o i i , he chi
Tec ogy Of i rofSi ie a a consulantf Si i e. hnol fce gnalf nd t or gnalf
m a eralf t r di m a t s i vi t ofer pur has and s e ofs urtes t i ac s egar ng ter nvol ng he f , c e, al ec ii . Thes l w spr ec t i tng publc i t pur has ofsoc t ti publcl ea ot t he nvesi i n he c e t k ha s iy dit i ed by m ai ai ng f rand hones s curt m ar t a elm i i m a pul i srbut nt ni ai t e iy ke s nd i natng ni atve
COUNT ONE
6.
Sg lf sa st; n ( )tsiyi fleyt t SEC t c e lt i c nd t inaie' ses a d 4 etf ng as l o he o onc a her o uc.
7. STEI a hi co- pia or i l ed arii aly t prce a dem and f N nd s cons r t s ntat tfci l he i nd or
Si ie soc by m ir pr e i Si lf s o a i a fna gnalf t k s e es ntng gna ie' per tons nd i nces i udi , ncl ng
i or a i r ga di t s e ofSi lf pr nf m ton e r ng he al gna ie oduc s A m ong ot rt ngs: t. he hi a. STEI and hi co- pia or cr t f s pur has or sa N s cons r t s ea ed ale c e der nd
pur chase or rconfr a i t pur t y wer f om Si ie' de im tons hat poredl er gnalf s
cust ers. om
b. STEI a hi co- piat s c e ed f s c nge ofaddr snotces N nd s cohs r or r at al e ha es i t pum or e y w e e f om Si ie' cusom er hat t dl r r gnalf s t s. c. STEI a hi co- piat s ca ed t i s N nd s cons r or us he s uanc off s and e ale m i l di pr sr ea es c ai i t Si ie had r ved or st s ea ng es el s l m ng hat gnalf ecei der o
pur has ispr c e t oduc s t.
d. STEI a hi co- piat s or hesr t t s it off l e a N nd s cons r or c t a ed he ubm tal a s nd m i l di flngst t SEC r r ng Si ie' s esand s pm e s ea ng ii o he ega di gnalf s al hi nt
ofpr oduc s. t
STEI diec ed CoN r t cons r t 1 t i ntf an i vi ,her nafe pia or o de iy ndi dual ei tr
l vi lA ,t w hom Si ie pr ndi dua o gnalf oduct coul be s ppe i or t s d hi d, n der o
8.
STEI and hi co- pia or al o conc ed t row ne s p a tadi N s cons r t s s eal hei r hi nd r ng
ofSi ie s ock by,a ong ot f s a m il ng pr ctc ,pl ng t i s esof gnalf t m her ale nd s eadi a i es aci he r har Si ie soc i br ageaccount t w e e hel i t na e ofot ri vi sbut gnalf t k n oker s hat r d n he m s he ndi dual whi w er i f tcont oled by STEI a hi co- ons r t s. STEI and hi coch e n ac r l N nd s c pia or N s
c pia or t n diec ed t s e ofSi ie s ock f om t enom i br a ons r t s he r t he al gnalf t r hes nee oker ge account and tans er ed t pr dst bank account i t row n nam es t e s r f r he ocee o s n hei , her by concealng t tans er a s es ofSi lf s ock by St n and hi co- ons r t sf om i he r f s nd al gna ie t ei s c pia or r
br a ac oker ge counti whih hes d mor t $1milon worh ofSi ie sqc t n c ol e han li t gnalf t k, he
pr edsofwhi h w e e tans e r d t St n. oce c r r f r e o ei
9.
l addii t e pl ng nom i a n ton o m oyi nee ccount STEI and hi co- ons r t s s, N s c pia or
conceal t rtadi ofSi ie s oc t ough t us ofpur t y blnd tus s ed hei r ng gnalf t k hr he e poredl i r t -
t us acc r t ount overw hi t pur t y had lm ied i any know l s ch hey poredl i t f edge and contol r .
Forexa pl STEI de ied m ilons ofs r s ofSi lf s ock ow ne by A RC m e, N post li ha e gna ie t d
Fi nance i o m uli epur t y blnd tuss. STEI t ca ed Si ie t m a nt tpl poredl i r t N hen us gnalf o ke
publc flngsw ih t SEC satng t tt e s r wer hel i t blnd t t a t t i i t he t i ha hos ha es e d n he i russ nd ha A RC Fi ncew oul have no know l na d edge oft a ac i ofSi lf s ock w ihi t r ns tons gna ie t t n he
t uss. Conta y t t SEC flngs however STEI r t ned a exer s d dicr ton r t r r o he ii , , N e ai nd ci e s e i
1 0.
STEI and hi co- piat s m i ppr i t Si ie' a s spr m a iy N s cons r or sa opr a ed gnalf s s et i r l
by or he tatng s c sr i ham agre e st ough whi h Si i epai cas a s ock t t r em nt hr c gnalf d h nd t o hid
appr mael $680, i c h and s ver lm ilon s r ofSi iesoc pur t y oxi t y 000 n as e a li ha es gnalf t k, poredl
f varouscons tng s vi esr r ng Si ie pr or i uli er c ega di gnalf oduc s. As STEI w e lkne ,Cot N l w
Cons r or 1per or ed no s h cons tng s rvi . Copiat f m uc uli e ces cons r t 1 i t n r m it pia or n ur e ted
a eem e s. gr nt
1 2.
t tfed f s y unde oa h t t SEC. Fore pl i s or t tm ony on ora esii alel r t o he xam e, n w n es i bout
D e be 17-1 2009,Aprl 1 201 a Jul 8,201 STEI pr ded f s and cem r 8, i 5, 0, nd y 0, N ovi ale
13.
MI TCH ELL J.STEI N di unlw f l and know i y com bi ,cons r conf at a agr e w ih ot s bot d a uly ngl ne pie, eder e nd e t her , h known and unknown,t com m i t of e esofm ai faud and w ie f a i vi aton of o t he f ns lr r r ud, n ol i
Til 18,U nied St t Code,Sectons 1 te t a es i 341 and 1343,r pe i y. es ctvel Purpos oft C onspi ac e he r v
1 4.
I w asa pur e oft cons r y t STEI and hi co- pia or t pos he piac hat N s cons r t s
w oul e i t s vesby a ii aly i l tng t s r pr c ofSi ie t ough t d nrch hem el rtfci l nfa i he ha e i ex gnalf hr he di s m i ton off s i or a i t n s lng t rs r ofSi ie s ock a t e s e na i ale nf m ton, he eli hei ha es gnalf t t hos
i l t prces l a ton,STEI and hi co- pia or m iappr i t Si ie' nfa ed i . n ddii N s cons r t s s opr a ed gnalf s
a s st ough s m agr ment ,whi di re a oxi ey $1. milon i cor ae s et hr ha ee s ch ve td ppr matl 5 li n por t
a s s t STE I . s et o N
15.
Si lf s ock i blnd t us s gna ie t n i r t. e. The cons r t sm i a opra e Si ie' as et ,i udi pia or s ppr it d gnalf s s s ncl ng
a oxi ael $680, i cas and s r milon dolar worh of ppr m t y 000 n h eve al li ls t
s oc usng s m agr em ent a f s a m i l ng docum e s. t k, i ha e s nd ale nd seadi nt
f The cons r or pr ded and diec ed ot r t pr de f s a . piat s ovi r t he s o ovi al e nd m i l ng t tm ony t t SEC. s eadi esi o he
O ver A c s t t
a. On or a boutJ anua y 11,2008,STEI em aied f om Boc Ra on, r N l r a t Fl i t o f s and m i l di doc ent pur tng t be c or da w ale s ea ng um s pori o hange of
( a IFr M i aud)
1 7. The alega i cont ned i par a 1 t ough 1 and 1 t ough 1 of l tons ai n agr phs hr 2 4 hr 6
t sI c m e a e r l d and i or at a t hi ndi t nt r ealege nc por ed s hough s f t i f lhe ei et orh n ul r n. 18. On ora boutt r pec i da ess n bel ,eac s dat c tt i a he es tve t how ow h uch e onsiutng
s par e countoft sl c m ent wihi t Sout r D i ti ofFl i and el e her e at hi ndi t , t n he he n srct orda s w e,
def nt enda
M I CH ELL J.STEI T N,
()tkea r c i a ma tra t ng wha e rt t sbe n s nta d dei r dby c a nd e eve ny te nd hi t ve ha ha e e n lve e a y prva ea c mm e ca i tr tt c ni r a d ( )kno ngl c us t bed lve e by n i t nd o r il n e sae a e ; n d wi y a e o e i r d
m ai a by prvat a com m e ci i e s a e ca re any m a t rand t ng wha eve l nd i e nd r al nt r t t r i r te hi t r
a ccor ng t t diec i t r di o he r ton he eon,t f l i he olow ng:
Count
D ae t
M aii lng
M ar 1 2008 ch 9,
A pa ge cont ni St k Cerii at N o.5879 f cka ai ng oc tfc e or 300, s est be delve ed vi D HL fom D r per 000 har o i r a r a , Ut t Boca Ra on,Fl i ah o t orda
A ugus 22,2008 t
( ieFr ud) W r a
19. The alega i c ai i pa ag aphs 1t ough 12 a 1 t ough 1 of l tons ont ned n r r hr nd 4 hr 6
t sI ct e a e r l hi ndi m nt r ealeged and i por t a t ncor a ed s hough s f t i f lhe ei et orh n ul r n. 20. On oraboutt r pec i da ess he es tve t hown bel ,eac s h da e cons iutng a ow h uc t tt i
s r t countoft sl ct ent w ihi t Sout r D it i ofFl i and el e her epa a e hi ndi m , t n he he n srct or da s w e, def nda e nt
M ITCH ELL J.STEI , N
10
com m er any w rtngs,s gns si s pi ur a s ce, ii i , gnal , ct es nd ounds,f t pur e ofexe i or he pos cutng
s s hem e and a ii uch c rtfce:
Count
D ae t
W ie Tr m i s on r ans s i
M 6 M
ar 25,2008 ch
ar 25,2008 ch
Facsm ie ofpur t pur eor confr a i i l pored chas der im ton f r Boc Ra on,Fl i t Cal y,Canada om a t or da o gar Facsm ie ofpur t pur eor confr aton i l pored chas der im i f r Boc Ra on,Fl i t Cal y,Canada om a t or da o gar
J une 11 2008 ,
Facsm ie ofpur t pur eor ca lton i l pored chas der ncela i f r Boc Rat Fl i t Cal y,Canada om a on, or da o gar
countoft s I c m ent w ihi t Sout r Di ti tofFl i a elewhe e,de e hi ndi t , t n he he n sr c orda nd s r f ndant
MI TCH ELL J.STEI , N
ai and a ted by ot r ,know i y exec ed and a t pt t exe e a s m e a ded be t he s ngl ut tem ed o cut che nd
a tfc ( )t d fa a y pe s n i c n ci n wi a s c iy o a is rwih aca s rii e a o e r ud n r o n o ne to t ny e urt f n sue t ls h o s c iisr git r d u rs c i 1 o t S c rte Exc ngeAc o 1 4 ( te 1 , f e urte e se e nde e ton 2 f he e u ii s ha t f 93 Til 5
11
Cou t n
Dae t
J anua y 28,2008 r
De c iio s rp i n
Sal ofa oxi a el 50, 48 s r ofSi lf s ock e ppr m t y 1 ha es gna ie t f om Pa fc W es ac r cii t count#1 f pr eedsof 470 or oc
( o y La M ne unde i ) rng
The ale tons cont ned i pa agr l ga i ai n r aphs 1t ough 1 a 1 t ough 1 of hr 2 nd 4 hr 6
t s I ct e a e r aleged and i por t ast hi ndi m nt r e l ncor a ed hough s f t i f lhe ei et orh n ul r n. 24. O n ora boutt da ess n bel ,eac s h da e cons iutng a s pa a e he t how ow h uc t tt i e rt
countoft s l c m e ,w ihi t Sout r Di ti tofFl i a ele he e,de e hi ndi t nt t n he he n sr c orda nd s w r f ndant MI TCH ELL J.STEI , N ai a a ted by ot s di know i y engage a a t m ptt e ge i m one ar ded nd be t her , d ngl nd te o nga n t y
ta aci i c i i l derve pr t ofavauegr t t $1 000,t ti,t r ns tons n rm naly i d opery l eaer han 0, ha s he
t a f rofpr r ns e oceeds ofs es ofSi ie s ock,s h pr t ha ng bee de i f om a al gnalf t uc opery vi n rved r s fe unl w f ac i t aspr de i Til 1 Unied St t Code,Se i pecii d a ul tviy ovi d n te 8, t a es cton
1 6()7 ,nc r r tngTil 1 , tdSttsCo ,Se to 1 61 1,owi: i 95 c( ) i opo ai te 8 Unie ae de cin 9 ( )t t mal
11
oV a a t r rsa c n # 5 nuf cu e c ou t 21 4.
.
1 3
Apr l22,2008 i
W ietanserof$105,, fom W#gjsy aa r r f 000 r ac hovi ccount /5541 t M a ac ur sacc / o nuf t er ount
26.
Sout r Dit i ofFl i and el e her def ndant he n srct orda s w e, e MI TCH ELL J.STEI N di unl w f l a know i y com bi cons r conf de a e and a ee w ih ot r ,bot d a uly nd ngl ne, pie, e rt gr t he s h
known a unknown, ocomml ofens a ns t Unied St t , m el t corupty nd t t f es gai t he t aes na y: o r l ,
i l nce obsr tand i pede,a e ntue , t uc m nd ndea t i l nce,obs r tand i pe i w hol vor o nfue tuc m de, n e ori pa t a pe ng pr n r , ndi oceedi bef e a de t enta a ng or ny parm nd gency oft U nied St t he t a es ofAm e i t ti ,t SEC,i vi a i ofTil 18,U nied St t Code,Sec i 1 rca, ha s he n olton te t a es ton 505.
1 3
Purpos oft Cons r v e he pi ac 27. l w asapur e oft cons r y t tSTEI a hi cot pos he piac ha N nd s cons r t s pia or
w oul corupty i l d r l ntuence,obsr and i tuct mpede t SEC ' i tgaton ofSi ie,i he S nvesi i gnalf n a ef ortt a ong ot rt ngs per t t and pr ntdet cton oft sc e a n f o, m he hi , pe ua e eve e i he hem nd
28.
Cocons r t 1 woul pr det t SEC. pia or d ovi o he c. On ora boutFe ua y 25,2010,Cobr r cons r t 1t tfed f s y pia or esi i alel bef e t SEC i W a hi on,D C. or he n s ngt
A S TO C O UNTS O NE TH RO UG H TH I TEEN R
30. Thevi a i aleged i Count One t ough Thit n oft sl c m ent oltons l n s hr ree hi ndi t
ar r - l ged a t e e ale s hough s f t f l her n a i or a ed by r f r et orh uly ei nd nc por t e e ence f t or he pur poseofalegi f f t et t Unied St t ofA m ercapur uantt t pr s ons l ng or eiur o he t a es i s o he ovii
ofTil 1 , td Sae Co , cin981a ()C)Til 1 Unie Sae Cod , te 8 Unie tts de Se to ()1( , te 8, td tts e
Se to 98 a ( ) a Til 28, t d Stt sCod ,S c i 2 1c . c in 2( ) 1 , nd te Unie ae e e ton 46 ( )
A sa r ul oft ofens ale i Count One t ough Thit oft s es t he f es l ged n s hr reen hi I ct e ,def nda M I ndi m nt e nt TCH ELL J.STEI s lf f i t t U nied St esa a a1 N hal or e t o he t at ny nd 1
pr opery,r orper ona ,cons iutng,orderve f om , oceeds obt i d die l or t eal s l tt i i d r pr a ne r cty
i r cty,ast r ul ofa c piac i vi aton ofTil 1 Unied St t Code, ndie l he es t ons r y, n ol i te 8, t a es Sec i 1349,a m ai faud s m e,i vi a i ofTil 18,U nied St esCode Sec i ton lr che n ol ton te t at , ton
1 ,a w ie f a s hem e,i vi a i ofTil 18,Unied St t Code,Sec i 1 341 r r ud c n ol ton te t a es ton 343,
obt ned,die l ori r ty,asa r s toft c ged of e es w hi upon ent' ofan ai r cty ndiec l e ul he har f ns , ch l y
981a( )C) Til 1 , tdSae Co , cin98 a( ) a Til 28 UntdSae ( )1( , te 8 Unie tts de Se to 2()1, nd te , ie tt s
Co , ci n 2461 c . de Se to ()
l ,asar ul ofany actorom i s on oft def f es t si he endant ,t pr ry s he ope t i ntfed above: de ii
a.
c annotbe l at d upon t e cie ofdue dii oc e he xer s lgence; hasbee tans er e ors d t orde ie w ih,at r per on; n r f rd ol o, pos t d t hid s
b.
C.
d.
e.
16
( i na Fo f i e i vi lto ofTil 1 , t d S a e Co ,S c in Crmi l r et ,n o ai n ur te 8 Unie t t s de e to 981 a ( )C) Til 1 , t d S a e Co , c in 98 a ( ) a Til 2 Unie Stt s ( ) 1 ( , te 8 Unie t t s de Se to 2( ) 1 , nd te 8, t d ae Co ,Se to 24 1 c ) de ci n 6 ( )
A TRU E BI LL
FOREPER SO
DEN I J.M CI S NERNEY Chi ,Fr Se i ef aud cton Crm i D i s on,U . D eparm entofJ tc i nal vi i S. t usi e
UNI TED EnteredSTRI COURT CT Case 9:11-cr-80205-KAM Document 3STATES DIon FLSD Docket 12/13/2011 Page 18 of 20 SO UTHERN DI STRI OF FLORI CT DA
CASE NO.
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days f t pari t ty. or he t o r es
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Pl ease check appr i e cat yand t ofofense I ed bel oprat egor ype f i st ow:
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Doest s caseorgi e fom am aterpendi i t Cental onoft U. Ator sOf ce pror hi i nat r t ng n he r Regi he S. t ney' i i t Sept o ember1,2DO7? Yes XX No
ANDREW H.W ARREN TRI ATTO RNEY,U. .DEPARTMENT OF JUSTI AL S CE DC BarNo.coud No.503003 /
R V480 E //8
C as N o: e
* M a pe t 20yea si i o nt 3 ye r s r s r las ;$250, fne x. naly: r mprs nme ' a s upe vied ee e , 000 i
Count # 2s 4 M ai fa l r ud
Til 18. nie St t s Code-Se t o 1 41 te U t d a e cin 3
*M ax. naly (ac c ) 20ye r i ionme ;3ye r s r s drla e;$ 000fne pe t e h ount: a s mprs nt a s upe vie ee s 250, i
Count # 5s 7
*M a pe t ( h c ) 20ye r i ionme ;3ye r s r s rl s ;$25 000tne x- naly eac ount: as mprs nt a s upevied eea e 0, i
Count # 8 1 s -0
Secm ii f aud tes r
*M ax. penaly (ac c ) 20ye r i ionme ;3ye ss r s drlas ,$250, fne t e h ount: a s mprs nt ar upe vie ee e' 000 i
Coun s # 11 1 t -3
M oney l aunder nz i
*M ax. ly(ac c ) 1 ye r i io nt 3ye r s r s r l s '$250, fne penat e h ount: 0 as mprs nme ; a s upevied eea e , 000 i
Count # 11 1 s -3
Co # 1 unt 4
Til 1 Unie St e Code,Seci 371 ye 8. t d ats ton * M ax. naly;5 ye r i prs e ;3yea ss r s d r l a e;$250, fne pe t a s m ionm nt r upe vie e e s 000 i