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Mitchell Stein Criminal Indictment

Mitchell Stein Criminal Indictment

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Published by Martin Andelman
A copy of the criminal indictment for attorney Mitchell Stein, related to his alleged stock and securities fraud.
A copy of the criminal indictment for attorney Mitchell Stein, related to his alleged stock and securities fraud.

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Published by: Martin Andelman on Dec 21, 2011
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Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 1 of 20

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UNI TED STATES DI STRI C OURT CT SOUTH ERN DI STRI OF FLORI CT DA

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1 U.. j1 4 8 SC. 3 9 1 V.. j 1 41 8 SC. 3 1 U.. j 1 4 8 S C. 3 3 1 U.. j 1 4 8 S C. 3 8 1 U. C. 1 7 a 8 S. j 95 ( ) 1 U. C.j3 8 S. 71 1 U. C. 2 8 S. j
UNI TED STATES OF AM ERI CA,
Pl ntf, ai if
VS.

MI TCH ELL J.STEI N, Def ndant e .

SEA LED

I CTM ENT NDI

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

M a g dS t ms I c (ol ci l G g lf n, sac morto t a p m o tdy na e yse , n . c l t y t naie ) wa o ain h t u re l e ve si
m a ac ur d a s d elctoni hea tmoniorpr nuf t e nd ol e r c r t oduc s i udi as t , ncl ng uppos sa e of ed tt - -

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

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 2 of 20

St k Exc oc hange f om on ora r boutJ 8,2005,untlon oraboutSe em be 15,2008, une i pt r
aferw hi tm e Si ie s ock w a lsed on t O vert count Buletn Boar t ch i gnalf t s it he -heer l i d.

2.

ARC Fi nc Gr up LLC (W RC Fi nc ' wa a lmie la iiy na e o t na e' s i t d ib lt )

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.

D ef ndantM I e TCHELL J STEI w asa lc ed ator y who w asout i . N i ens t ne sde

couns f Si ie. STEI r i i Boca Ra on,Fl i a Hi el or gnalf N es ded n t orda nd dden H il , ls
Calf ni i or a.

4.

Cocons r or 1 was aha piat ndym an a STEI ' c nd N S haufeurwho r s ded i f ei n

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

TheUnie S ae Se urte a d Exc n Co s in (heG ' wa t d tt s c iis n ha ge mmiso t C ) s SEC'
a i pe ntagenc oft Unied St esr ponsbl f enf ci f a s urtes n nde nde y he t at es i e or or ng eder l ec ii
l s whi h ar des gnç t pr det i s i publc wih f ldicl ur ofal aw , c e i d o ovi he nve tng i t ul s os e l

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

prcie t ttndt ditr t f i a us prc ofsoc a tc s ha e o so the ar ndj t ie t k.

2

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 3 of 20

COUNT ONE

( ns r c t Comm i M a lFr a W i eFr ud) Co pi a y o t i aud nd r a
O vervi w oft Fr e he audul Schem e ent

6.

A se ai m or f l be ow ,f om i oraboutJ y 2005 t ough i or xpl ned e uly l r n ul hr n

a boutJ y 2010,STEI and ot r pe petat d a s m et defaud Si lf i s or ul N he s r r e che o r gna ie nve t s

by, mo o he t n : 1 a tica l i l tng t prc a d ma f rSi lf so k; a ng t r higs ( ) ri ily nfa i he ie nd e nd o gnaie t c

( )c nc ai g t i o rhi a ta ng o Si naieso k;( )mia o i tng 2 o e ln her wne s p nd r di f g lf t c 3 s ppr pra i

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

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 4 of 20

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

cr at t f l e a e e he a s ppea a ofs pm e st a act Si ie r nce hi nt o n ual gnalf
cust er. om

f STEI diect Co. N r ed cons r t 1t obt i a t lf e phone num be t pia or o a n ol- r e ro

be atrbut f s y t l vi ti ed al el o ndi dualA f pur esofs ppi Si ie or pos hi ng gnalf
pr oduct t l vi s o ndi dualA . g. STEI caus d t s pm entofSi iepr N e he hi gnalf oduc st I vi t o ndi dualA . h. STEI diec ed CoN r t cons r t 1 t s or t m por r l t s pped pia or o t e e a iy he hi pr oduc sw ih I vi t t ndi dualA and t n ha t pr he ve he oduc sr t ned t t e ur o
Si ie. gnalf

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

i t s a Si ie exec i s. Fore m pl Convesor nd gnalf utve xa e, cons r or 1m ai ai a piat nt ned

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

4

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 5 of 20

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

overt pur t y blndtuss die i t s eofm or t n $5 milon worh of he poredl i r t, r ctng he al e ha li t
Si ie soc fom t t s s gnalf t k r he nlt .

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

pa tes Fore pl STEI or hesr t a s m cons tng a eem e be we ri . xam e, N c ta ed ha uli gr nt t en
Si ie a Cognalf nd cons r t 1 pur uantt whi Si ie pai Copia or , s o ch gnalf d cons r t 1 pia or

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 o mae y $15 milo wh c i l e t maort oft $ 0, 0 c s a wela ppr xi t l . li n, ih ncud d he j iy he 68 00 a h s l s
pr oceeds fom s lng t Si i es oc bac t STEI . r eli he gnalf t k, k o N STEI a hi c cons r t sal o m iappr i t Si lf sas e sby N nd s o- pia or s s opr a ed gna ie' s t or tatng a eem ent underw hi Si lf pai t r pari st pr ot Si ie ches r i gr s ch gna ie d hid te o om e gnalf

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 6 of 20

soc bu te mild Si aiesc r aec ns la u t soc pr to t k t h n se gn lf ' oport ou e ào t he t k omoin
'

a eem e s. gr nt

1 2.

To conc t r s m e t de r Si ie i t s STEI a ot r eal hei che o f aud gnalf nves or , N nd he s

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

m i l di t tm ony r di am ong ot rt cs hi r e a Si ie,pur t d s es s ea ng es i egar ng, he opi , s ol t gnalf por e al
and s pm entofSi lf pr hi gna ie oduct ,t pl em entofSi ie s oc i nom i s he ac gnalf t k n nee ac count ,t pur t dl blnd tuss,a t s m cons tng a ee entbe w ee Cos he por e y i r t nd he ha uli gr m t n Cons r or 1and Si lf piat gna ie.
The C ons r v pi ac

13.

Fr i oraboutJ y 2005 untli ora om n ul in boutJ y 2010,w ihi t Sout r ul t n he he n

D it itofFl i a elewhe e,def ndant src orda nd s r e

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

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 7 of 20

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

M anne and M eans oft Cons rac r he pi v

15.

The c pia or us t f l i m annera m ea ,a ong ot r ,t ons r t s ed he olow ng nd ns m he s o

a c iht o j csa p pos o t c ns rc c ompls he be t nd ur e f he o pia y:
a. The cons r t scaus d Si ie t i s f s and m il ng pr s pia or e gnalf o s ue ale s eadi es r e esr di t com pa stna el as egar ng he ny' i ncesand ope a i . r tons

b. The cons r t scaus t i er t t s pm entofSi ie pr pia or ed he nt s a e hi gnalf oduc st t o
t addr s ofa i vi lwho wasnota c t e ofSi ie and he es n ndi dua us om r gnalf w ho had notor ed a Si ib pr der ny gnalf oduc s, o cr at t f s t t e e he al e a ppea a ofs e a i t a or f f lm e by Si ie. r nce al s ctviy nd der ulil nt gnalf

c. The cons r or c ed docuf nt t be fl w ih t SEC t piat s aus ne s o ied t he hat
i uded f s a m i l adi i or a i r di t fnances a ncl al e nd s e ng nf m ton egar ng he i nd ope a i ofSi lf r tons gna ie. d. The cons r t s c eal t row ner hi contol a s e of pia or onc ed hei s p, r , nd al
Si lf s ock by,am ong ot rt ngs pl ng t rs esofSi ie gna ie t he hi , aci hei har gnalf soc i nom i account and f l el cl m i t hol t rs r of t k n nee s a s y ai ng o d hei ha es

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

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 8 of 20

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

1 6. I frhea eoft c ns rc a t a hivet o j csa dpupos n u t rnc he o pia y nd o c e he be t n r e
t r ,atl as one oft cons r t sc m it a ca ed t be com m it i t he eof e t he pia or om ted nd us o ted, n he
Sout n D iti tofFl i and el e her s rc orda s wher a l tone oft f l i over ac s e, t eas he olow ng t t,
am ong ot s her :

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 es notcesf om Si ie' c t er t Si ie' Chi ddr s i r gnalf s us om s o gnalf s ef
Exec i O fi r utve fce . b. On oraboutM ar 25,2008,STEI ca ed t o f l e a m i l ng ch N us w a s nd seadi

pur s or rconfr a i t be f d f om Boca Ra on,Fl i t cha e de im tons o axe r t orda o
Si i e' cor a e couns i Ca gar Ca gnalf s por t el n l y, nada.

c. On oraboutJ 11 2008,STEI ca ed a f l e and m i l di lter une , N us as s ea ng e t
r ga di apur ed pur has or t be f d f om Boca Rat e r ng port c e der o axe r on,
Fl i t Si ie' cor at c orda o gnalf s por e ouns i Cal r Ca el n ga y, nada.

( 1i vi a in o Til 1 , t d Stt sCod ,Se to 1 49. A1 n olto f te 8 Unie ae e cin 3 )

8

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 9 of 20

COUNTSTW O THROUGH FOUR

( 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,

a de a a t by ot s havi devied a i e ng t devie t s hem e a i d nd beted her , ng s nd nt ndi o s he c nd
arii e t def a des i a tfc o r ud crbed bove,a t obt n m one a pr rt by m ea of nd o ai y nd ope y ns
m at r a f s a f a e i l al e nd r udul ntpr t e r es nt tons and pr i es f t pur e of e e ens s, epr e a i , om s , or he pos

e c i s h s he o a tfc o at mptng t do s ,d d: a plc i a y po tofi e xe utng uc c me r rii e r te i o o i ( ) a e n n s fc
a aut i de ior f m ai m ater a m atera t ng w ha eve t be s nta nd horzed post y or l t , ny t nd hi t ro e nd

d lv r d b t Posa Se vc ;( )de i a c u et b de ie a matra ei e e y he t l r ie b post nd a s o e postd ny te nd
t ng what ve t be s a delver by a prvat and com m er ali e sat car i ; hi e ro ent nd i ed ny i e ci nt r t e rer

()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:

9

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 10 of 20

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 pa ka c n ani St k Ce tfc t No. 088f r c ge o t i nj oc rii a e 6 o
J 1 2008 une 2, 390, s est be delve ed vi DHL fom Dr per 000 har o i r a r a , Ut t Boca Ra on,Fl i ah o t orda
A pac kage cont ni St Ce tfca e N o.6232 f ai ng ock ri i t or 400, s est be delver d vi DH L fom Dr pe , 000 har o i e a r a r Ut h t BocaR a on,Fl i a o t orda

4

A ugus 22,2008 t

( 1i vi a i o Til 1 , t d Stt sCod ,Se to 1 41a 2. A1 n olton f te 8 Unie ae e ci ns 3 nd )
COUNTSFI THROUGH SEVEN VE

( 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

a ded a a t d by ot s ha ng de s a i e ng t devi et s hem e a i nd bete her , vi vied nd nt ndi o s he c nd

arik e t def a des i a tt o r ud crbed bove a t obt n m oney and pr rt by m ea of nd o ai ope y ns
m a e i f s and f a t ral al e r udul pr e es r pr ent tons,a pr ies di t a m i a ent et ns , e es a i nd om s , d r ns t nd

ca e t be tans it by m ea ofw ie com m uni ton i i er t t a f ei us o r m ted ns r ca i n nt s a e nd or gn

10

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 11 of 20

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

7

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

( 1 nvi lto ofTil 1 , t d Stt sCod ,Se tons1 43a d 2. A1 i o ai n te 8 Unie ae e ci 3 n )
COUNTSEI GHT THROUGH TEN

( c ii sFr Se urte aud)
The ale tons cont ned i pa agr l ga i ai n r aphs 1tlough 1 a 1 t ough 1 of lr 2 nd 4 hr 6 t sl ct e a e r ale and i por t ast hi ndi m nt r e l ged ncor a ed hough s f t i f lhe ei et orh n ul r n. 22. 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 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

Unt d Stt sCod ,Se to 781 , a l Si n lf , nd( t o an, me nsoff le ie a e e ci n ) n mey, g a ie a b) o bt i by a as
orfaudul pr ens ,r pr ent tons and pr ies,a m oney orpr ry i r ent et es e es a i , om s ny ope t n c onne i w ih any sec iy ofa i s w ih a cl s ofs urtesr s e e unde d on t urt n s uer t a s ec ii egit r d r

11

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 12 of 20

s ci n 1 o t S c rte Exc ngeAc of1 3 ( te 1 , t d S a e Cod ,Se to e to 2 f he e u ii s ha t 9 4 Til 5 Unie t t s e ci n
78 ) na l Si naie a f l ws 1, mey, g lf , s olo :

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

a oxi ael $1 755 ppr m t y 9,
9 M ar h 5,2008 c
Sal ofa oxi a el 52, s esofSi lf s oc e ppr m t y 550 har gna ie t k f om A m e ir de acc r rt a ount#5251 f pr edsof or oce

a oxi ael $36, ppr m t y 388
1 0 Sal ofa oxi a el 118, s r ofSi ie soc e ppr m t y 100 ha es gnalf t k Aprl18- 2008 f om A m ert ade acc i 22, r ir ount/5251 f pr edsof / or oce

a oxi t y $11 820 ppr mael 5,

( l nvi lto ofTil 1 , t d Stt sCod ,Se tons1 48a 2. Al i o ai n te 8 Unie ae e c i 3 nd )
COUNTS ELEVEN THROUGH THI RTEEN

( 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

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 13 of 20

fa ( te 1 , t d S a e Cod ,Se to 1 41 ; r fa ( te 1 , t d Stt s r ud Til 8 Unie t ts e ci n 3 ) wie r ud Til 8 Unie ae
Cod ,Se to 1 43 ;a s c iisfa ( te 1 ,Unie Stt sCod ,Se to 1 48 : e ci n 3 ) nd e urte r ud Til 8 t d ae e ci n 3 )
Count Dat e Tr ns ton a ac i

11

J anuar 29,2008 y M ar 5,2008 ch

W iett frof$19, , fom Pacii W es a r r e ans 718 r fc t ccount #1 470
o M a ac ur sacc nuf t er ount/2154. /

W5251r f of$34, , fom Am e ir account iett er r ans 000 r rtade / /

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

( l nvi a in ofTil 1 , t d Stt sCod ,Se tons1 57a 2. A1 i olto te 8 Unie ae e ci 9 nd )
COUNT FOURTEEN

( Cons r c t Obs r tJ tc ) pi a y o t uc usi e
25. The alega i cont ned i pa agr l tons ai n r aphs 1t ough 1 a 1 t ough 1 of hr 2 nd 4 hr 6

t s I ct entar r le a i por t ast hi ndi m e ea l ged nd ncor a ed hough s f t i f lhe ei et orh n ul r n.

26.

Fr on oraboutOct r 16,2009 t ough on oraboutJ y 8,201 i t om obe hr ul 0, n he

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

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 14 of 20

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

a tfce des i above. rii crbed
M anner and M eans oft Cons rac he pi v

28.

The cons r t sus t f l i m annera m ea ,a ong ot s,t pia or ed he olow ng nd ns m her o

a c mpls t o j csa dp pos o t c ns ia y: c o ih he be t n ur e f he o prc
The c pia or di c s devel ons r t s s us ed, oped,and agr upon f s eed al e

t s i ony t tt y w oul pr de t t SEC r ga di a ong ot e tm ha he d ovi o he e r ng, m her
t cs pur t s es a s pm entofSi lf pr opi , pored al nd hi gna ie oduc s t s m t , he ha cons tng agr entbe we Couli eem t en cons r t 1 a Si lf and t pia or nd gna ie, he pl m e ofSi ie soc i nom i acc ace nt gnalf t k n nee ount . s
O ver A ct t s

29. l frhea c oft c ns r c a t efc iso j c,hec - o piaos n u t r n e he o pia y nd o fe tt be t t o c ns rt r
com m it d t f l i ove tact ,am ong ot r ,i t Sout r D it i ofFl i a te he olow ng r s he s n he he n srct orda nd
el e her s w e;

a. Be ween on oraboutD ece be 17,2009 and J y 8,201 STEI t m r ul 0, N
t tf e f s y on m uli e oc i bef et SEC i W as ngt es ii d al el tpl cas ons or he n hi on, DC .

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 15 of 20

b. I ora n boutFebr r 201 Def ndanta Coua y 0, e nd cons r t 1m eta a pia or t
r t anti BocaR a on,Fl i and di c s f l e t tm ony t t esaur n t or da s us ed a s esi ha

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

( li vi lto ofTil 1 Unie S a e Co ,Se to 3 . A1 n o ai n te 8, t d t t s de c in 71)
C RI I AL FO RFEI M N TURE A LLEG ATIO N

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,

s urtesf a i vi aton ofTil 18,Unied St t Code,Se i 1348,a m oney ec ii r ud, n ol i te t a es cton nd
l unde i i vi a i ofTil 18, nied St esCode,Sec i 1 a rng, n ol ton te U t at ton 957. The pr ry t ope t o

b f retdicud s bu i no lmie t amo yj me trprs ni tep oc e e o fie n l e , t s t i td o, ne udg n e e e tng h r e ds

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 16 of 20

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

o de off ret es l ber d e t amo t r j dg n . r r o f iur hal e uc d o nea y u me t
32. By vit oft c m i s on oft f ohy of e esc ged i Count One rue he om s i he el f ns har n s

t ough Thit en oft sI c m ent a a al i e es t tdef hr re hi ndi t , ny nd l nt r t ha endantM I TCHELL J.

STEI ha i t above- s i pr t i ves ed i t Unied St t and he e N s n he de crbed opery s t n he t a es r by
f f t t t U nied St t pur uantt Til 18,Unied St t Code,Sec i or eied o he t a es s o te t a es ton

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.

ha be nplc dbe ondtej rs ito ofteCo t s e a e y h u idcin h ur;
hasbee s t i l di i s i val or n ubs antaly m nihed n ue;

d.
e.

hasbee com m i ed w ih ot rpr n ngl t he opery t tca t ha nnotbe s vi d ubdi de
w ihoutdifculy; t fi t

i i t i enton oft U nied St es pur uantt Til 18,Unie St e Code,Se i t s he nt i he t at , s o te t d at s cton

98 ( ) 1 , n o po ai b r f r n eTil 21 Unie S a e Co ,S c in 8 3( , o 2 b ( ) i c r r tng y e e e c te , t d t t s de e to 5 p) t
s k f f t e ofany ot rpr ee or eiur he opery ofs d def nda up t t val ofs i pr t t ai e nt o he ue a d opery

lse a o a bengs j c t fret e itd b ve s i ube t o o f i . ur

16

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 17 of 20

( 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

AN DREW H .W ARREN A LBERT STI EGLI TZ Tr a Ator ys i l t ne

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

UNI TED STATES OF AM ERI CA
VS .

CASE NO.

CERTI CA TE O F TRI L ATTO RN EY* FI A
MI TCHELL J.STEI , N Def endant .
I

Super ng Case I or aton: sedi nf m i

Cour Di si (e c o e t vi on: s l t n ) e
Mi ami

FL T

xx

Ke W est w

) B

Fp T

NumberofNew Def endant s Tot numberofcount al s

Ne Def d ts) w en ant

Ye s
'

No

Ido her cediyt : eby f hat

I av c e ul c sier t eal ga in pf h idit tt enu er deen t tenu er h e arf l on d ed h l t s t e n cm:n h mb Qf f dans,h mb of y e o
Pr obabl winesses and t l compl tes oft I c mentl or l atached her o. e t he egal exli he ndlt /nf maton t et
Til 28 U. C.Sec ln 31 te S. to 61.

Iam Mwar t t i or i su l gnt j Aaer twi be r id up b te Ju ce o t s e hat he nf maton ppi ed hi tt pen l el l e on t h d s f hi v n al d te daeof e ee y i t al Cour I seti t rçalndar an s e l cl n tl sun erh man t h sp d-Tr Ac, tn tng hei e s d ch dul rmlalr

Ltrtr n/rle Iepgaea(odl qrne: de9N IIeug Ysa c sa t rj
Thi case wi t s l ake l
5.
( c o yo ) Cbek nl ne

N n
days f t pari t ty. or he t o r es
( eko yoe) Cht nl n

16

Pl ease check appr i e cat yand t ofofense I ed bel oprat egor ype f i st ow:

0 t 5d y o as 6 t 10 days o

11 t 20 days o 21 t 60 days o 61 days and over

YY

Ml sdem . Fel ony

P> t ty Ml nor

YY

6. l f

Jy es: udge:

Hasti c ebe prvi syfld i ti DititCou t ( sorNo) hs as en e ou l i n hs sr e c r? Ye
Case No.

Mn

H a op dipo iv r ( tchc yQf s st egdej At i

Def d ts)l fder cu tdyaso en anl n e al so f De e an I saecu tdyaso f nd qs)n tt so f
Rul 20 fom t e r he

M y stat Case No. ej : agl r e Rel ed M ic:l at s l aneous num ber s:

Iasac altb nfld I t smat ? f ompl n ee i n hl ter e

( sOrNo) Ye

Mn

Di rctof sti

I t sap eni de hpe l c s ( orNo) s hi ot t at nat a e? Yes al y
Doest scaseorgi efom a materpendi i t Nodher Reginoft U. Ator sOfi pror hi i nat r t ng n he n o he S. t ney' fce i t Oct o ober1 2003? 4, Yes XX No
8.

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' ïi 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 /

e al Sh ets at e pen t e l) t d y ach

R V480 E //8

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 19 of 20

UN I TED STA TES DISTR I CO UR T CT SO UTH ERN D I STR I O F FL O R I A CT D
PEN A LTY SHEET D ef endantf N am e:M i chel J.St n s t l ei

C as N o: e

Count # 1 Cons r y t c piac o omm i mai fa a wiefa t l r ud nd r r ud
Til 1 U nie St t s Code Se ton 1 te 8. t d a e - c i 349

* 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

Til 1 Unie St t Code Se ton 1 te 8. t d aes , c i 343

*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

Til 1 Unie Stt Code.Sq fon 1 te 8. t d aes çi 348

*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

Case 9:11-cr-80205-KAM Document 3 Entered on FLSD Docket 12/13/2011 Page 20 of 20

Coun s # 11 1 t -3
M oney l aunder nz i

Til 1 U nie St t Code Se ton 1 te 8- t d a es - c i 957

*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

Cons r c t o tuc i tc pia y o bsr t usie

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

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