This action might not be possible to undo. Are you sure you want to continue?
,JAMES C. FRANCIS IV THE HONORABLE _ d ~:;~llTD STATES MAGISTRATE JUDGE United States Magistrate ge Ju k SOUTHERN DISTRICT OF NEW YORK Southern District of New Yor
STATES OF AMERICA - v. JR.,
SEALED COMPLAINT Violation 18 U.S.C. of
TYRONE L. GILLIAMS,
COUNTY OF OFFENSE: New York
OF NEW YORK, ss:
SCOTT F. ROMONOWSKI, being duly sworn, deposes and says that he is a Criminal Investigator with the United States Attorney's Office for the Southern District of New York, and charges as follows: From in or about July 2010 through and including the present, in the Southern District of New York and elsewhere, TYRONE L. GILLIAMS, JR., the defendant, unlawfully, willfully, and knowingly, having devised and intending to devise a scheme and artifice to defraud, and for obtaining money and property by means of false and fraudulent pretenses, representations, and promises, did transmit and cause to be transmitted by means of wire, radio, and television communication in interstate and foreign commerce, writings, signs, signals, pictures, and sounds for the purpose of executing such scheme and artifice, to wit, in furtherance of a scheme to defraud investors in a supposed financial venture, GILLIAMS caused a victim to wire approximately $4 million from a bank account in New York, New York to a bank account in Pennsylvania. (Title 18, United States Code, Sections 1343.)
The bases for my knowledge charge are, in part, as follows:
and for the foregoing
1. I am a Criminal Investigator with the United States Attorney's Office for the Southern District of New York, and I have been personally involved in the investigation of this matter. This affidavit is based upon my conversations with other law enforcement agents and other persons and my examination of reports and records. Because this affidavit is being submitted for the limited purpose of establishing probable cause, it does not include all the facts that I have learned during the course of my investigation. Where the contents of documents and the actions, statements and conversations of others are reported herein, they are reported in substance and in part, except where otherwise indicated. I have spoken with an attorney (the "Victim's Attorney"). The Victim's Attorney informed me that in or about the spring of 2010, his client (the "Victim") invested approximately $4 million through an intermediary (the "Intermediary") in what the Intermediary represented to be a United States Treasury Strips ("Treasury Strips") trading program. 1 The Victim's Attorney informed me that the Victim made the investment in order to obtain income to operate a charitable foundation. The victim's Attorney informed me that the Victim subsequently requested the return of his money from the Intermediary, but his money has not been returned. The Victim's Attorney informed me that he has obtained financial records during the course of several lawsuits that he has brought on the Victim's behalf (the "Lawsuits"), and that those records show that the Intermediary transferred all of the Victim's $4 million to TYRONE L. GILLIAMS, JR., the defendant, who misappropriated at least several million dollars of it. 3. I have reviewed a deposition given under oath by the Intermediary in one of the Lawsuits (the "Intermediary's Deposition"). In the deposition, the Intermediary testified that he was introduced to the victim in or about January or February 2010. The Intermediary testified that the Victim expressed an interest in finding investments that would produce Treasury Strips are derivatives of Treasury bonds that are created by separating each individual payment associated with a Treasury bond (i.e., the periodic interest payments and the eventual return of the principal) into its own individual security.
income to fund the operations of the Victim/s charitable foundation. The Intermediary testified that he told the Victim that he had "access to and knowledge of various sources of investment and. . would be glad to work with [the Victim] and introduce him to situations that can serve his purposes. The Intermediary testified that he told the Victiml in particularl that "the~e were certain people that [the Intermediary] knew in the trade that were in the business of buying and selling U.S. treasuries with good results and good returns.
I II II
4. I have reviewed a resolution of the board of directors of an "associationH that claims to be incorporated in the State of Washington (the "Intermediary/s AssociationH). The resolutionlwhich was provided to me by an attorney for the Intermediary purports to make the Intermediary a director and manager of the Intermediaryls Association. The resolution authorizes the Intermediary tO among other things execute contracts and open bank accounts on behalf of the Intermediaryls Association.
I I I
5. The Victim/s Attorney has provided me with two contracts between the Victim and the Intermediaryls Association that were executed after the Victimls meeting with the Intermediary. In the first contract dated February 231 20101 the Victim agreed to provide the Intermediaryls Association with $2 million to be invested in "treasury stripsl treasury billsl [and] U. S. government paper. The second contract dated May 101 20101 replaced the first and raised the Victim/s investment to $4 millionl again to be invested in "treasury stripsl treasury billsl [and] U.S. government paper.H
I II I
6. I have reviewed bank records obtained from JP Chase. Those records show that on or about February 25 20101 the Intermediary opened an account at JP Morgan Chase in the name of the Intermediaryls Association ("Association Account #lH). Thereafterl on or about March 31 20101 a $2 million wire transfer from the Victim/s bank account was received in Association Account #1. SubsequentlYI the Intermediary opened a linked savings and checking account in the Intermediary/s Associationls name (the "Association Account #2H) at JP Morgan Chase in New York New York. On or about March 231 20101 the Victim/s $2 million was transferred from Association Account #1 into Association Account #2. Thereafterl on or about May 13 and May 141 20101 two wire transfers totaling an additional $2 million were received from the Victim/s bank account into Morgan
Association Account #2. Thus, after the May 13 and 14, 2010 wire transfers, Association Account #2 held approximately $4 million that had been transferred by the Victim to the Intermediary. 7. In the Intermediary's Deposition, the Intermediary testified that in or about July or August 2010, he was introduced to TYRONE L. GILLIAMS, JR., the defendant, by another individual (the "Individual"). The Intermediary testified that the Individual described GILLIAMS as someone who had been successful in earning profits trading Treasury Strips. The Intermediary testified that he then met with GILLIAMS, and the Intermediary and GILLIAMS agreed that the Intermediary would provide $4 million of the Intermediary's Association's money to GILLIAMS's company - TL Gilliams, LLC - to be invested in Treasury Strips. The Intermediary testified that the Individual subsequently directed the Intermediary to wire the $4 million for the investment to a specified attorney trust account, from which it would be forwarded to GILLIAMS. 8. I have reviewed an email, provided to me by the victim's Attorney, which appears to have bee~ sent by the Individual to the Intermediary on or about August 10, 2010. In the email, the Individual provides the account number for the attorney trust account (the "Attorney Trust Account") to which' the Intermediary was to wire the $4 million investment. 9. I have reviewed bank records obtained from Wells Fargo Bank (the successor to Wachovia Bank) for the Attorney Trust Account. Those records show that on or about August 24, 2010, the Attorney Trust Account - which is located in Pennsylvania - received a $4 million wire transfer from the Intermediary's Association. Records provided by JP Morgan Chase show that the wire transfer came from Association Account #2i namely, the account (located in New York, New York) that then held the $4 million originally supplied by the Victim. 10. I have reviewed a motion to dismiss and accompanying memorandum of law (the "Motion Papers") that TYRONE L. GILLIAMS, JR., the defendant, filed in one of the Lawsuits, seeking the dismissal of claims filed by the Victim against GILLIAMS and TL Gilliams, LLC. The Motion Papers were personally filed by GILLIAMS, who is acting pro se in that civil action, and are signed by him. Attached to one of the documents comprising the Motion Papers is a verification in which GILLIAMS states that he prepared the Motion Papers and that the
statements the Motion
therein Papers, a.
are true to the best of his knowledge. GILLIAMS asserts the following: On or about July 7, 2010, GILLIAMS
Intermediary. b. "One month later," GILLIAMS entered into an agreement whereby the Intermediary would supply GILLIAMS with $4 million "to be invested in gold and commodities in West Africa and specifically in Ghana, invested with African banks. 112 c. Thereafter, GILLIAMS received $4 million from the Intermediary "through the office of a lawyer Gilliams retained for the transaction." d. Of the money that GILLIAMS received, "$1.620 Million was invested on [a] gold deal in Ghana." The proceeds of GILLIAMS's "investments in gold in Ghana are to be shared justly with investors." e. GILLIAMS "used investment funds in the ordinary course of business and no funds were unlawfully converted or misused by Mr. Gilliams or his company." 11. I have reviewed various bank records that establish that TYRONE L. GILLIAMS, JR., the defendant, did, in fact, misappropriate at least $2 million of the $4 million that he acknowledges receiving from the +ntermediary. As previously noted, I have reviewed bank records for the Attorney Trust Account that received the $4 million wire transfer from the Intermediary on or about August 24, 2010. Those records show that prior to receiving the $4 million wire transfer on or about August 24, 2010, the Attorney Trust Account had a balance of only approximately $5,000. On or about August 25, 2010, after I have spoken with the Intermediary and the Individual, both of whom state that the investment was for purposes of trading in Treasury Strips. I have also reviewed contemporaneous emails and documents obtained from a variety of sources, which corroborate that the Intermediary's investment was for purposes of trading Treasury Strips, not for purposes of investing in gold or ,West African commodities. In my investigation of this case, I have neither seen nor been told anything that corroborates GILLIAMS's assertion that the Intermediary's investment with GILLIAMS was for the purpose of being "invested in gold and commodities in West Africa[.]
receiving the $4 million distributed as follows:
the funds were
a. $450,000 was transferred to a small investment company. The records of the transfer include the notation, "Full Return of Escrow Deposit," which indicates that this transfer was not for purposes of making an investment on behalf of the Intermediary or the Intermediary's Association. b. $40,000 was transferred to the operating account of the law firm that owned the Attorney Trust Account and, thus, was not used for investment purposes. c. $510,000 was transferred to a linked savings and checking account held by TL Gilliams, LLC at Citibank (the "Gilliams Citibank Account"). d. $3 million was transferred to a brokerage account held by TL Gilliams, LLC at Wells Fargo Advisors (the "Gilliams Wells Fargo Account") . 12. I have reviewed records for the Gilliams Citibank Account. In just the first month after that account received the $510,000 transfer from the Attorney Trust Account, TYRONE L. GILLIAMS, JR., the defendant, made the following expenditures among others - from the Gilliams Citibank Account: (i) a $25,000 wire transfer to a company identified as "Gateway Realty"; (ii) a $14,000 wire transfer to a company identified as "Homerun Heating"; (iii) a $218,672.35 wire transfer to a company identified as "Fidelity National [T]itle - NTS Denver"; and (iv) a $17,000 wire transfer to a company identified as "SPT Entertainment." 13, I have reviewed records for the Gilliams Wells Fargo Account. Those records show that the account was empty prior to receiving the $3 million transfer from the Attorney Trust Account on or about August 25, 2010. From the records for the Gilliams Wells Fargo Account and other sources, I am aware of the following concerning the distribution of funds from the Gilliams Wells Fargo Account: a. On or about November 15, 2010, approximately $1.6 million was wired from the Gilliams Wells Fargo Account to the account of a financial company. Although I have not seen records indicating what the financial company did with that money, contemporaneous records from the Gilliams Wells Fargo
Account suggest that TYRONE L. GILLIAMS, JR., the defendant, intended - as he later claimed in the Motion Papers - for that money ultimately to be transferred to the financial company's bank account in Ghana. b. Between on or about October 4, 2010 and on or about December 17, 2010, GILLIAMS wrote approximately 20 checks on the Gilliams Wells Fargo Account for the purpose of transferring approximately $1.1 million from the Gilliams Wells Fargo Account to the Gilliams Citibank Account. Approximately 15 of those checks bear notations that say "Joy to the World," "Joy Fest," "Joy Fest (Bahamas)," "Joy to the World Foundation," and "Ritz." GILLIAMS wrote another approximately $130,000 in checks to various individuals with some variation on the notation, "Joy Fest." I am aware t-hat the "Joy to the World" festival was a black-tie, gala event organized by GILLIAMS that took place at the Ritz-Carlton hotel in Philadelphia, Pennsylvania on or about December 18, 2010. I am also aware that GILL lAMS organized a "Joy to the World" event in the Bahamas in or about December 2010. c. In or about December 2010, GILLIAMS also used the "check card" feature on the account to spend: (i) approximately $17,000 on airfare, some of the charges relating to which included the notation "Nassau" (which is a city in the Bahamas); (ii) approximately $15,000 on resort and limousine charges in the Bahamas; (iii) approximately $70,000 on charges at the Ritz-Carlton hotel in Philadelphia, Pennsylvania.
WHEREFORE, the deponent prays that a warrant be issued for the arrest of TYRONE L. GILLIAMS, JR., the defendant, and that he be arrested and imprisoned, or bailed, as the case may be.
Sworn to before me this 28th day of September, 2011.
JAMES C. FRANCIS IV UNITED STATES MAGISTRATE JUDGE SOUTHERN DISTRICT OF NEW YORK
CR 12 (Rev. 5103)
~nfub:~t&rez ~iztrid ([OUr!
UNITED STATES v. TYRONE
OF NEW YORK
NAME AND ADDRESS
TO BE ARRESTED
ISSUED ON THE BASIS OF:
MARSHAL OR ANY
o Order of Court
DISTRICT OF ARREST
YOU ARE HEREBY COMMANDED to arrest the above-named person and bring that person before the United States District Court to answer to the charge(s) listed below.
DESCRIPTION OF CHARGES
UNITED STATES CODE TITLE
OTHER CONDITIONS OF RELEASE
CLERK OF COURT
" .I ..~
.JAMES C, FRA
,)t)U n"p-c'l\' l
r .c!:, J DI~rRIC I Ur I\!tVV YUK~l ETURN v
and executed with the arrest of the above-named
This warrant was received
NAME AND TITLE OF ARRESTING
Note: The arresting officer is directed to serve th~ attached copy of the charge on the defendant at the time this warrant is executed.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.