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STATE OF COLORADO)

COUNTY OF WELD ) ss. AFFIDAVIT

Case Report: 15DA00022

In support of a request for the issuance of a Warrant for the arrest of Jana Leigh Koretko, date of birth, July 30,
1968, (hereinafter referred to as "Defendant"), the undersigned affiant, being first duly sworn upon oath deposes
and says:
That affiant has knowledge of the following facts from which there is probable cause to believe that the crimes;
Count 1; Theft greater than $20,000.00,but less than $100,000.00 18-4-401(1) (a), C.R.S. a Class 4 Felony.
Count 2; Theft in excess of $5,000.00, but less than $20,000.00, 18-4-401 (1) (a), C.R.S. a Class 5 Felony.
Count 3; Theft in excess of $5,000.00, but less than $20,000.00, 18-4-401 (1) (a), C.R.S. a Class 5 Felony.
Count 4; Theft in excess of $2,000.00 but less than $5,000.00, 18-4-401 (1) (a), C.R.S. a Class 6 Felony.
Count 5; Tax Evasion, 39-21-118 (1), C.R.S., a Class 5 Felony.
Count 6; Filing a False Tax Return, 39-21-118 (4) C.R.S, a Class 5 Felony
Count 7; Computer Crime in excess of $5,000.00 but less than $20,000.00, 18.5-5-102 (1) (b) C.R.S., a Class 5
Felony.
Count 8; Tax Evasion, 39-21-118 (1), C.R.S. a Class 5 Felony.
Count 9; Money Laundering 18-5-309 (1) (II) (A), C.R.S., a Class 3 Felony.
Count 10; Computer Crime 18-5.5-102 (1) (b), C.R.S., involving $15,000.00 or more, a Class 3 Felony.
Count 11; Money Laundering 18-5-309 (1) (II) (A), C.R.S., a Class 3 Felony.
Count 12; Computer Crime 18-5.5-102 (1) (b), C.R.S., involving $15,000.00 or more, a Class 3 Felony.
Count 13; Money Laundering 18-5-309 (1) (II) (A),C.R.S., a Class 3 Felony.
Count 14; Computer Crime 18-5.5-102 (1) (b), C.R.S., involving $15,000.00 or more, a Class 3 Felony.
Count 15; Money Laundering 18-5-309(1) (II) (A),C.R.S., a Class 3 Felony.
Count 16; Computer Crime 18-5.5-102 (1) (b),C.R.S., involving $15,000.00 or more, a Class 3 Felony.
Count 17; Money Laundering 18-5-309 (1) (II) (A),C.R.S., a Class 3 Felony.
Count 18; Computer Crime 18-5.5-102 (1) (b), C.R.S., involving $15,000.00 or more, a Class 3 Felony.

Hereinafter described were committed by the Defendant on and between January 1, 2013 and April 18, 2016 in
the County of Weld, State of Colorado.

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1. Your affiant, Keith Olson, is Chief Investigator for the Weld County District Attorneys Office and has
gained the following information by reading the reports of fellow officers, the statements of the victims and
witnesses, and through personal investigation.

2. On August 12, 2015, Ms. Brandie Birge1 met with investigators of the Weld County District Attorneys
Office to present evidence she believed proved her publishing company, JK Publishing, was defrauding
her, and other independent authors, of their royalties on the sale of their books through various online
websites. Ms. Birge and the other authors contract with JK Publishing to publish and provide to various
online retail book sites that offer books in eBook and traditional book formats. Under the contract, the
authors receive fifty percent (50%) of the net royalties JK Publishing receives from retail platforms such as
Amazon, Barnes and Noble, Smashwords, All Romance, and others. Those platforms retain a portion of the
proceeds from each book and then send the remaining net proceeds to JK Publishing. JK Publishing then
retains 50% of royalties for services provided to their authors. Ms. Birge stated the Defendant is the owner
of JK Publishing of Johnstown, Colorado.

3. Your affiant checked with the Colorado Secretary of State and found a previously registered Limited
Liability Corporation named JK Publishing. The principal office address listed is 128 Brush Lane,
Johnstown, Colorado and the registered agent listed as Jana Leigh Kudron. On May 30, 2012, the filing of
the Articles of Organization were recorded by the Secretary of State. JK Publishing failed to file periodic
reports and was placed into delinquent status until August 26, 2015 when a report was filed to change the
status to active. It should be noted this filing occurred after your affiant personally advised the Defendant
of the delinquent status of JK Publishing. The Defendant stated, although married, she used her maiden
name of Kudron when initially filing the LLC registration with the Secretary of State.

4. Ms. Birge stated JK Publishing calculates and issues monthly and quarterly sales reports which detail the
authors sales from the various retail sites. The monthly reports include sales from retailers Amazon, iTunes
(Apple), and Barnes and Noble. The quarterly sales reports include the sales from All Romance, Kobo,
Apple, Google, JK Publishing, and Amazon Non-US. Ms. Birge stated she, and other authors, have noticed
discrepancies in the compensation they were receiving when compared to the sales reports generated by JK
Publishing.

5. On August 16, 2015 your affiant reviewed an email sent on the same date from the Defendants email
account addressed to several of the authors who had joined with Ms. Birge in seeking an investigation into
JK Publishings activities. The email stated the authors had conspired to commit fraud against JK
Publishing by altering pay statements resulting in overpayment to the authors. The email stated the District
Attorney and police had been contacted and [the Defendant] had been assured that this case is solid
and all records which have been individually verified at the site level are currently correct and notarized.

6. Contrary to the representations in this e-mail, the Weld County District Attorneys Office had not been
contacted by the Defendant or any representatives from JK Publishing. On August 17, 2015, your affiant
sent an email to the Defendant and all those who had received the earlier email stating our office had not
been approached by the Defendant, and indeed the Weld County District Attorney was investigating JK
Publishing for alleged fraudulent activities.

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BrandieBirgeusespennamesWillowBrooke,ShaeShannon,andHarleyMcRide.

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7. On the same date, your affiant received a phone call from the Defendant. She stated she had not sent the
aforementioned email and believes someone had hacked her account and then sent the email. The
Defendant stated that she believed Ms. Birge had accessed JK Publishings accounts and inflated the sales
reports resulting in overpayment to several of JK Publishings authors. The Defendant stated the iTunes
book sales reported on several authors monthly sales reports had been grossly inflated. The Defendant
stated she relied on those monthly sales reports to pay the authors which resulted in overpayments of
thousands of dollars.

8. Your affiant examined Facebook messages from the Defendant and found on August 10, 2015 (one week
prior to the email the Defendant denied sending) the Defendant posted a copy of the contents of the email
to Jammi Beverly and a Rayne OGara. The narrative of the email was proceeded with the message,
LMAO sent this morning.

9. Over the next several days, the Defendant provided your affiant numerous JK Publishing monthly sales
reports she represented as having been recently audited by her and her partners. Their audit found the sales
numbers had been fraudulently inflated resulting in a theft from JK Publishing. The Defendant also
provided your affiant the monthly and quarterly sales reports that are compiled and furnished to JK
Publishing by the individual retailers. Specifically, your affiant was provided spreadsheets from Kobo,
Amazon, All Romance, Google, and Barnes and Nobles for the years 2014 and 2015. The Defendant
stated sales figures are taken from the retailers sales reports to produce each JK Publishing authors
monthly and quarterly sales reports.

10. Defendant explained book sales are reported to JK Publishing by various retail platforms. Monthly sales
for Amazon (United States sales), iTunes, and Barnes and Noble are downloaded for each author. Caroline
Shook, a partner of Defendants, then uses those figures to construct a monthly sales report for the
individual authors. Your affiant examined the JK Publishing monthly reports and observed they contained a
list of the authors titles and the number of books sold for each title. This is repeated for each of the
aforementioned retail platforms. The report then provides a dollar amount in a column titled; Royalties
Owed to Author for each of the retail platforms. Also included in this monthly report is the total Payment
to Author and total Payment to Editor.

11. The Defendant stated Ms. Caroline Shook pulls the numbers for Amazon and Barnes and Noble. Once that
portion of the monthly is completed, the Defendant then accesses the iTunes sales and adds those sales to
the monthly. The Defendant is the only person at JK Publishing with access to iTunes sales. Monthly sales
reports are not completed until three (3) months after the sale as reportedly that is how the retail platforms
pay JK Publishing. As an example, sales for the month of April would not be paid until July.

12. The Defendant then issues payments to the authors based on the monthly sales reports she and Caroline
Shook prepare.

13. Your affiant, through examination of documents provided by The Defendant, established for the years
2014 and 2015 JK Publishing published books for authors using the pseudonyms: Tanya Sands, Samantha
Potter, Willow Brooke, Avery Gale, Lei Carol, Decota A. Janmes, Keira Kendrik, Sasha Parker, Sabrina
Kent, Jeff Buffett, Alice Brown, Electra Remington, Lady V, Vixon Blackhart, Whiskey Starr, Lynn Ray
Lewis, Ryder Dane, Charlotte Morgan, Lynn St. James, Marquaylla Lorette, T.S. Chanz, Zana King, Lucy
Kelly, Rae Brewer, K.D. Jones, KD Jones, Bryce Evans, Cheyenne Winters, Carlene Laye, CM Edelbeck,
Dakota Lindsey, Edlyn Reynolds, Gracie Meadows, Hazel Gower, Honor James, J.B. Miller, J.C.
Cerrigone, Jessica Anderson, Jessica Lupo, Lori King, Nancy Lommel, Selena Cross, Shelby Lynn, Carlene

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Laye, Rayne OGara, Taren Baker, H.L. Laffin, Rory Flannigan, and Harley McRide. Your affiant has
learned JK Publishing authors use multiple pseudonyms and variations of a pseudonym.

14. Your affiant examined iTunes sales of the JK Publishing monthly sales reports provided by The Defendant
reportedly containing the inflated iTunes sales. Your affiant compared those numbers to the actual monthly
iTunes sales provided by Smashwords and found The Defendant was correctin most cases, the JK
Publishing monthly sales reports substantially inflated the iTunes sales during portions of 2014 and 2015.

15. Your affiant requestedfrom The Defendant monthly sales reports for JK Publishing author Gale Soukup2.
The Defendant told your affiant as part of their investigation into altered and inflated monthly sales reports
they audited Ms. Soukups monthly sales reports against actual sales and found no discrepancies in her
monthly sales reports. Ms. Soukup is JK Publishings top selling author.

16. In an August 26, 2015 email sent to JK Publishing authors including Ms. Patsy Hevener, Ms. Birge and Ms.
Lynda Shook3, The Defendant specifically accused them of fraudulently receiving payment for grossly
inflated iTunes sales and demanded repayment of those overpaid funds. The Defendant sent copies of those
emails to your affiant on the same date.

17. Your affiant viewed Facebook messaging that indicated the Defendant had grossly exaggerated sales of
authors books during conversations. The Defendant also uploaded monthly sales reports to those
conversations indicating it was the Defendant who was actually responsible for the inflated sales reports.
The following are examples of such deception.

18. During a June 26, 2015 Facebook conversation between the Defendant and Ms. Birge, the Defendant
informed Ms. Birge she had just paid her. The Defendant uploaded Ms. Birges June, 2015 JK Publishing
monthly sales report showing iTunes sales of 3,198 books sold for the month of March. JK Publishing pays
royalties three months after the actual month the books are sold. The June monthly sales report shows date
submitted as June 26, 2015, the same date this Facebook conversation occurred. Your affiant examined Ms.
Birges actual iTunes sales of books through Smashwords and found she had only sold ten (10) books in
March of that year. This conversation and the release of the monthly sales report to Ms. Birge on the same
date it was created supports the premise that the Defendant actually inflated the iTunes sales.

19. Your affiant examined the following Facebook messaging between Ms. Shook and the Defendant
occurring on May 8, 2015 at 4:23 p.m.
Defendant: I just got an updated report, over 750 on iTunes.
Shook: books
Defendant: yes
Shook: holy shit!!!
Defendant: woot!!!
Shook: and thats just on iTunes?

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GaleSoukupusespennameAveryGale.
3
LyndaR.ShookusespennameLynnSt.James.

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Defendant: yep
Your affiant examined the iTunes sales for Ms. Shook and found only ten (10) of her books sold on
iTunes for the month of May, 2015.

20. Your affiant examined the following Facebook messaging between the Defendant and Ms. Shook which
occurred on February 19, 2015 at 3:37 p.m.
Defendant: Want some good news?
Shook: Uck. And yes Id love some good news.
Defendant: Did total for royalties for end of month payment 732 for editors pay Annnnnddddd 3842.00
for sales.
Shook: No way!
Defendant: Yes way
Shook: Fuck me running
Defendant: Lol.
Shook: Okay. And OMG! You have no idea what a relief that is. Especially since it looks like my books
arent selling at all now.
Defendant: Shit. Hang on, gotta go to computer lol. They r on iTunes I hit it with ads hard in November.
The Defendant then uploaded the JK Publishing November Monthly report to the conversation. In that
report it shows Ms. Shook with 2,920 books sold on iTunes for the month. Your affiant pulled the actual
November 2014 sales of Ms. Shooks books from Smashwords and found she had only sold six (6) books
on iTunes.

21. Your affiant also reviewed the following Facebook messenger conversation between the Defendant and
author Patsy Jean Hevener4 occurring on June 29, 2015;
Defendant: and tequila took off on iTunes. Took a few days but today it did go bestseller in UK and
Canada.
Hevener: Great! Thanks!
Defendant: It is actually moving on US as well, which is awesome.
Your affiant examined June, 2015 iTunes sales for Ms. Heveners book Tequila Sunrise and found
there were no sales of the book. It would be impossible to become a bestseller if there were no sales. In
fact, only two (2) copies of Tequila Sunrise were sold by Smashwords affiliates, to include iTunes,
from January 1, 2015 through August 25, 2015.

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PatsyJeanHevenerusespennamesAliceBrownandElectraRemington

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22. With the records provided by the Defendant and Smashwords, your affiant conducted an audit in which JK
Publishing monthly and quarterly sales reports were compared to the sales reports provided to JK
Publishing by Amazon.

23. Your affiant examined the 2014 and 2015 Brandie Birge sales reports from Amazon and totaled the actual
numbers of books sold for Ms. Birge. Those numbers were then compared to the monthly sales reports the
Defendant provided and characterized as accurate and audited reports for Ms. Birge. Your affiant found
several months in which JK Publishing under reported Brandie Birges Amazon sales. Specifically, JK
Publishing received compensation for 2,013 books, but failed to properly report the actual sales thus
denying Ms. Birge full compensation of those royalties.

24. Your affiant also examined 2014 and 2015 book sales for top selling author Gale Soukup. Just prior to my
audit, the Defendant assured your affiant no discrepancies had been found during her audit of Gale
Soukups reports. Again, your affiant compared monthly sales reports provided by the Defendant and
monthly sales reports from Amazon. Your affiant found the Defendants sales figures for Ms. Soukups
books were grossly under-reported when compared to Amazons reported sales. The differences resulted in
an actual loss to Ms. Soukup in royalties for 5,344 books.

25. Your affiant also examined the 2014 and 2015 book sales for author Ms. Joye Rathgeb5. Your affiant
compared monthly sales reports provided by the Defendant to the monthly sales reports from Amazon.
The Defendants figures are grossly under-reported when compared to Amazons reported sales. The
differences resulted in an actual loss to Ms. Rathgeb in royalties for 4,576 books.

26. Your affiant examined JK Publishings First Quarter 2014 Sales Report (January, February, and March) for
Gale Soukup. The report was used by JK Publishing to establish Gale Soukups quarterly royalty
commission from retailers Kobo, JK Pub Bookstore, Google, All Romance, and Smashwords. JK
Publishing reported 81.75 Gale Soukup books sold by Kobo. Your affiant examined Kobo sales reports for
the same time period and found Kobo reported and paid to JK Publishing royalties for 207 Gale Soukup
books sold resulting in Gale Soukup being deprived of royalties for 125.25 books.

27. The JK Publishing 2014 First Quarter Report for Gale Soukup showed sales by Smashwords of 41 books.
Your affiant examined the actual sales records from Smashwords for the same time period and found Gale
Soukup sold 109 books through Smashwords. JK Publishing received payment from Smashwords for 109
books sold, but reported to Gale Soukup and paid royalties for 41 books resulting in Gale Soukup being
deprived of royalties on 68 books.

28. In the same First Quarter Report JK Publishing reported 189.75 Gale Soukup books sold on the All
Romance website. Your affiant examined the sales report from All Romance for the same quarter and
found Gale Soukup actually sold 230 books. JK Publishing received compensation from All Romance for
230 books, but reported only 189.75 books sold and compensated Gale Soukup for that number. This action
resulted in Gale Soukup being deprived of royalties for 40.25 books.

29. Over the course of this investigation, fifteen (15) current or former authors of JK Publishings estimated
thirty (30) authors contacted your affiant. The authors all stated JK Publishing failed to consistently provide

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JoyeRathgebusespennamesLynnRayLewis,RyderDane,andCharlotteMorgan.

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monthly and quarterly sales reports. Each expressed their concerns that the Defendant and partners of JK
Publishing failed to accurately report actual book sales on a regular basis. The authors also expressed
concerns that monthly and quarterly reports actually received contained frequent errors and omissions.
Those authors providing statements to your affiant reside throughout the United States and Australia and are
identified as:
Mrs. Samantha Astill, Australia6
Ms. Brandi Birge, Evans, Colorado
Ms. Bobbi Antonelli-Szabo, Stone Mountain, Georgia7
Ms. Angelina Catlett, Madras, Oregon8
Ms. Marqualla Thomas, Bakersfield, California9
Ms. Lynda Shook, Melbourne, Florida
Ms. Jessica Henshall, New South Wales, Australia10
Ms. Marijke van Nieuwstadt, DeKalb, Illinois11
Ms. Patsy Hevener, Clinton, North Carolina
Ms. Victoria Hevener, Clinton, North Carolina12
Ms. Joye Rathgeb, Lawrence, Michigan
Ms. Kerri Good, Kill Devil Hills, North Carolina13
Mr. Charles Tschanz, Cocoa, Florida14
Ms. Kelli Winter, Snohomish, Washington15
Ms. Teresa DeVito, Clarks Hill, South Carolina16
Ms. Jammi Beverly17

30. Your affiant learned from Ms. Birge and Ms. Jammi Beverly the Defendant had made Ms. Beverly her
personal assistant to assist in scheduling various meetings. Ms. Beverly was seemingly provided an email

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SamanthaPotterusespennameSamanthaPotter.
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Ms.AntonelliSzabousespennameTanyaSands.
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Ms.CatlettusespennameLeiCarol.
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Ms.ThomasusespennameMarquayllaLorette.
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Ms.HenshallusesthepennameJessBuffett.
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Ms.vanNieuwstadtusesthepennamesLucyKellyandRaeBrewer.
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Ms.V.HevenerusesthepennamesLadyVandVixonBlackhart.
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Ms.GoodusesthepennamesKeiraKendrik,SashaParker,andSabrinaKent.
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Mr.TschanzusesthepennameT.S.Chanz.
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Ms.WinterusesthepennameZanaKiing.
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Ms.DevitousesthepennameDeCotaA.Jaymes.
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Ms.BeverlyusesthepennamesofGracieMeadowsandWhiskeyStarr

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address for Mr. Mark Coker, CEO of Smashwords a retail platform JK Publishing contracts with. On July
21, 2015, Ms. Beverly received an email from email account marksmashwords@gmail.com. Which read:

Jana gave me your email to reschedule meetings we were supposed to have last week. So there are four
meetings with sites which she needs to have. She needs to block three hours during this time in order to
make sure she gets all of the information. Most of the meetings are in regards to the site changes,
marketing with the sites, etc. Amazon (Delia), Kobo (Marcus), Barnes and Noble (Timothy), and iTunes
(Browyn). Also, I know she is coming to San Diego in Aug. I would like to fly her up to Seattle more than
once to meet with our people finally. So I would like to claim four of her days, they do not have to be
consecutive. I will provide her lodgings etc, just need her to finally agree to come up.
Mark
CEO Smashwords Inc.

31. This email was then followed by several exchanges in which Ms. Beverly was consulting with the
Defendant to schedule the meetings she was being presented by the various retailers.
The Defendant provided Ms. Beverly dates and times she would be available and this information was sent
to Mark at the aforementioned email account. A reply email was received by Ms. Beverly which read:

Those times are fine. I will get them marked down. As for the event, it is a party for her, Jana has like five
awards she has not claimed in the last ten years from several of the sites. She knows this, and I have
harped on her for years, so she needs to suck it up, just dress nicely, it is at my house.

Mark

32. Your affiant, had previously been in contact with Mark Coker. I forwarded the email string to Mr. Coker
asking him if he was familiar with the contents and purpose of the email string. Mr. Coker responded to me
with the following statement:
Keith, wow. Wow wow wow. Insane. :) Those emails were not from me, that's not my email address
(Mark Crocker <marksmashwords@gmail.com<mailto:marksmashwords@gmail.com>> ), and those
people at the retailers are completely invented out of thin air. Wow.
Happy to sign a declaration to that effect.
best wishes,
mark

33. Your affiant also learned JK Publishing, per contract, was to file for copyrights on all books published by
authors under JK Publishing contract. Authors, Gale Soukup, Joye Rathgeb, and Marijke Van Nieuwstadt
learned their books had no copyrights registered, even though the Defendant had assured them their books
had been copyrighted. Ms. Rathgeb sought proof of copyrights for her books from the Defendant. In
response the Defendant sent what was represented as proof of copyright of ten (10) books authored by Ms.
Rathgeb. The documents provided by the Defendant contained registration numbers which Ms. Rathgeb
learned were not connected to any copyrighted books.

34. Your affiant received documents from the Defendant, including screen shots of payments made to authors
on a regular basis. These screen shots all showed the same USAA bank account. In the screenshots, funds

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are transferred from the Defendants USAA bank account *******. The Defendant told your affiant she
conducts JK Publishing business through this account.

35. Your affiant spoke with Ms. Kerri Good a former partner of the Defendant in JK Publishing. Ms. Good
stated JK Publishing had used USAA bank account ******* while she was associated with the company.
Ms. Good was a signer on the account along with the Defendant. Ms. Good provided bank statements for
the account *******. The statements provided began in September of 2012 and show Kerri W. Good listed
as a co-holder of the account. Ms. Good stated the name JK Publishing was derived from her and the
Defendants first initial of their given names (Jana and Kerri.)

36. Your affiant examined the bank statements for account ******* and found extensive deposits into the
account from book retailers, Amazon, All Romance, Amazon Europe, and Kobo. Deposits into the account
between February, 2014 and June, 2014 totaled $258,783.00. Beginning in July of 2014, deposits from book
retailers into this account ceased.

37. Your affiant sought Court Orders for Production of Records for the following entities: USAA Bank
(Accounts ******* and *******) Facebook, Amazon Books, Barnes and Noble, Smashwords, Kobo Inc.,
All Romance, and Google.

38. The Court Orders for Production of Records were issued by Judge Thomas Quammen on October 2, 2015
and served on October 5, 2015 through October 7, 2015. On and between the dates of October 7, 2015 and
March 9, 2016 your affiant received the requested records from Amazon, Facebook, Barnes and Noble,
Kobo, All Romance and USAA Bank account records of ******* and *******.

39. An examination of USAA bank records received for JK Publishing bank accounts****** and ******along
with the sales reports received from the aforementioned retail platforms provided the basis for determining
JK Publishings annual income for 2014 and 2015.

40. On and between January 1, 2014 and December 31, 2014, JK Publishing had Amazon book sales producing
royalties of $550,075.52 paid to JK Publishing. These royalties were paid to JK Publishing between March
1, 2014 and February 28, 2015. This delay in payment is due to Amazon paying royalties 60 days after the
month in which the book sales are reported. In addition, the Defendant maintained a separate account with
Amazon under the title Jana Kudron. This account represents books sold under the pen names used by the
Defendant18. Between January 1, 2014 and December 31, 2014, the Defendant had Amazon book sales
totaling $68,793.57 in royalties. These royalties were also paid to the Defendant between March 1, 2014
and February 28, 2015. Combined Amazon royalties received by the Defendant were $618,869.09. (See
Exhibit 1)

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JanaKoretkousedpennamesLeighBrock,HarleyMcRideandJanaLeigh.

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Exhibit 1

41. Your affiant examined 2014 deposits into the Defendants USAA Bank accounts ****** and ******and
identified deposits from various retail platforms. This examination did not include deposits between June 1,
2014 and September 25, 2014 as royalties had been directed to a JK Publishing bank account for which
records have not been obtained. Total deposits into the aforementioned accounts for the available eight
monthsequaled $480,560.19. (See Exhibit 2.)

Exhibit 2

42. Between January 1, 2015 and October 1, 2015, JK Publishing had Amazon book sales totaling $292,821.55
in royalties. These royalties were paid to JK Publishing between March 1, 2015 and December 1, 2015.

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This delay in payment was due to Amazon paying royalties 60 days after the month in which the book sales
were reported. In 2015, the Defendant maintained a separate account with Amazon under the title Jana
Kudron. This account represents books sold under the pen names used by the Defendant. Between January
1, 2015 and October 1, 2015, the Defendant had Amazon book sales totaling $44,551.84 in royalties.
These royalties were paid to the Defendant between March 1, 2015 and October 1, 2015. Combined
Amazon royalties received by the Defendant, during the nine month period available to you affiant, were
$292,821.55. (See Exhibit 3)

Exhibit 3

43. Your affiant examined 2015 deposits into the Defendants USAA Bank accounts ****** and ****** and
identified deposits from retail platforms. Retailers payment records were used to determine payments made
to JK Publishing in the absence of certain JK Publishing bank records. This examination included available
records from January 1, 2015 through October 1, 2015. Total deposits into the aforementioned accounts
equaled $404,004.25. (See Exhibit 4.)

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Exhibit 4

44. Your affiant documented the individual book sales from January 1, 2014 through September 2015 for
individual authors. This documentation occurred by examining the individual authors monthly and
quarterly sales reports provided by Amazon, Barnes and Noble, Kobo, Smashwords, and All Romance.
Those records had been provided by those retailers pursuant to the Court Order for Production of Records.
Those records provided detailed accounting of the number of books sold by the authors as well as the
royalty paid for each book sold. The Defendant, in concert with partner Caroline Shook, ostensibly used
these same reports to construct the monthly and quarterly sales reports used to determine the royalty
payment each author was to receive from JK Publishing.

45. Your affiant documented individual payments made to the authors between January 1, 2014 and October 1,
2015 by obtaining deposit records from the individual authors. In addition, payments to authors were further
documented by examining the bank records of JK Publishing provided by USAA Bank pursuant to the
Court Order for Production of Records.

46. In support of Count 1: The Defendant, acting as principal owner of JK Publishing and operating out of
the principal business address in Johnstown, Weld County, Colorado, through a single scheme of theft
perpetrated between January 1, 2014 and December 31, 2015, by knowingly obtaining monies owed to
author, Ms. Gale Soukup, without authority and through the use of deception retained control of those
monies the Defendant knew to be stolen. The Defendant then used, and concealed the monies intending to
permanently deprive Ms. Soukup of the use and benefit of said monies. The Defendants conduct resulted
in a financial loss to Ms. Soukup in excess of $20,000.00, but less than $100,000.00, which constitutes
Theft 18-4-401, C.R.S. a Class 4 Felony. The Defendants conduct described as follows;

47. A comprehensive comparison of Gale Soukups verified book sales and earned royalties to payments
received by Ms. Soukup from JK Publishing was conducted by your affiant. The time period examined was
from January 1, 2014 through December 1, 2015. According to Ms. Soukup, the agreed upon percentage of
royalties she was to receive from JK Publishing was 60% of sales.

48. Your affiant also compared the known sales to the monthly and quarterly sales reports issued by JK
Publishing. At no time did the reports reflect the true and verified monthly sales for Ms. Soukup.The JK

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Publishing reports were provided to your affiant by the Defendant with her assurance the figures had
recently been audited and found to be accurate. (See Exhibit 5.)

Exhibit 5

49. Over the aforementioned time period, Ms. Soukup should have received $240,546.83 ($228,957.45 monthly
royalties plus $13,115.78 quarterly royalties less editing costs of $1,878.50) from JK Publishing, yet her
total payments received were $141,932.23, resulting in a loss of $98,614.60. (See Exhibit 6.)

Exhibit 6

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50. In support of Count 2: The Defendant, acting as principal owner of JK Publishing operating out of the
principal business address in Johnstown, Weld County, Colorado, through a single scheme perpetrated
between January 1, 2014 and December 31, 2015, knowingly obtained monies owed to Ms. Joye Rathgeb
without authority and through the use of deception retained control of those monies the Defendant knew to
be stolen. The Defendant then used, and concealed the monies intending to permanently deprive Ms.
Rathgeb of the use and benefit of said monies. The Defendants conduct resulted in a financial loss to Ms.
Rathgeb in excess of $5,000.00, but less than $20,000.00, which constitutes Theft 18-4-401, C.R.S. a Class
5 Felony. The Defendants conduct described as follows;

51. A comprehensive comparison of Joye Rathgebs verified book sales and earned royalties to payments
received by Ms. Rathgeb from JK Publishing was conducted by your affiant. The time period examined was
from January 1, 2014 through December 1, 2015. According to Ms. Rathgeb, the agreed upon percentage
of royalties she was to receive from JK Publishing was 50% of sales.

52. Your affiant also compared the known sales to the monthly and quarterly sales reports prepared and issued
by JK Publishing. At no time did the reports reflect the true and verified monthly sales for Ms. Rathgeb.
The JK Publishing reports were provided to your affiant by the Defendant with her assurance the figures
had recently been audited and found to be accurate. (See Exhibit 7.)

Exhibit 7
53. Over that time period Ms. Rathgeb should have received from JK Publishing $51,409.36 ($50,749.65 in
monthly royalties and $3,811.84 in quarterly royalty payments less editing costs of $3,152.12), yet her total
payments received were $40,351.91, resulting in a loss of $11,057.45. (See Exhibit 8)

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Exhibit 8
54. In support of Count 3: The Defendant, acting as principal owner of JK Publishing operating out of the
principal business address in Johnstown, Weld County, Colorado, through a single scheme perpetrated
between January 1, 2014 and August 31, 2015, knowingly obtained monies owed to Hazel Gower without
authority and through the use of deception retained control of those monies which the Defendant knew to
be stolen. The Defendant then used, and concealed the monies intending to permanently deprive Ms.
Gower of the use and benefit of said monies. The Defendants conduct resulted in a financial loss to Ms.
Gower in excess of $5,000.00, but less than $20,000.00, which constitutes Theft 18-4-401, C.R.S. a Class
5 Felony. The Defendants conduct described as follows;

55. A comprehensive comparison of Ms. Gowers verified book sales and earned royalties to payments received
by Ms. Gower from JK Publishing was conducted by your affiant. The time period examined was from
January 1, 2014 through August 1, 2015. According to Ms. Gower the agreed upon percentage of royalties
she was to receive from JK Publishing was 50% of sales.

56. Your affiant also compared the known sales to the monthly and quarterly sales reports issued by JK
Publishing. At no time did the reports reflect the true and verified monthly sales for Ms. Gower. The JK
Publishing reports were provided to your affiant by Ms. Birge who had downloaded them from JK
Publishing documents. (See Exhibit 9.)

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Exhibit 9
57. Over that time period, Ms. Gower should have received from JK Publishing $20,496.55 ($20,271.89 in
monthly royalties and $1,785.89 in quarterly royalty payments less editing costs of $1,561.23), yet her total
payments received were $9,974.21, resulting in a loss of $10,522.34. (See Exhibit 10).

Exhibit 10

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58. In support of Count 4: The Defendant, acting as principal owner of JK Publishing operating out of the
principal business address in Johnstown, Weld County, Colorado, through a single scheme perpetrated
between January 1, 2014 and December 31, 2015, knowingly obtained monies owed to Marijke Van
Nieuwstadt without authority and through the use of deception retained control of those monies the
Defendant knew to be stolen. The Defendant then used, and concealed the monies intending to
permanently deprive Ms. Van Nieuwstadt of the use and benefit of said monies. The Defendants conduct
resulted in a financial loss to Ms.Van Nieuwstadt in excess of $2,000.00, but less than $5,000.00, which
constitutes Theft 18-4-401, C.R.S. a Class 6 Felony. The Defendants conduct described as follows;

59. A comprehensive comparison of Marijke Van Nieuwstadts verified book sales and earned royalties to
payments received by Ms.Van Nieuwstadt from JK Publishing was conducted by your affiant. The time
period examined was from January 1, 2014 through December 1, 2015.

60. According to Ms. Van Nieuwstadt, the agreed upon percentage of royalties she was to receive from JK
Publishing was 50% of sales.

61. Your affiant also compared the known sales to the monthly and quarterly sales reports prepared and issued
by JK Publishing. At no time did the reports reflect the true and verified monthly sales for Ms. Van
Nieuwstadt. (See Exhibit 11.)

Exhibit 11
62. Over that time period Ms.Van Nieuwstadt should have received from JK Publishing $9,638.17 ($8,628.81
in monthly royalties and $1,598.59 in quarterly royalty payments less editing costs of $589.22), yet her total
payments received were $6,399.51, resulting in a loss of $3,238.66. (See Exhibit 12).

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Exhibit 12
63. Your affiant received complaints from authors that they had received 1099s from the Defendant that did
not match payments they had received from JK Publishing. In addition, your affiant observed comments
made by the Defendant in Facebook messages that suggested the Defendant was violating criminal statutes
related to the filing of tax returns.

64. On February 1, 2015, Caroline Shook, JK Publishings partner and bookkeeper, sent the following inquiry
to the Defendant on Facebook messenger:
Shook: hey did the account get back to you regarding us and W2?
Defendant: Yes, we fell .79 which is not a problem. We fall under the blanket it is in form 720 for the Irs.
they will be providing a letter to each of us with total of paid.
Shook: so we don't have to pay taxes then on what we were paid?
Defendant: Nope, we do not. Our earnings fell under the coverage of non-taxable income due to royalties.
In essence it was taxed too many times for us to have to pay on the money.
65. On June 2, 2015, the Defendant advised author Ms. Antonelli-Szabo that JK Publishing pays the editing
costs, but includes it on the authors monthly report so the author can claim it as a write off. The Defendant
further stated, The total that is included like that in case u or we r audited it shows monetarily that u r
allowed to take the deduction instead of us. So when I send out W2 this is included. I have no clue of u have
ever filed taxes from royalties but they can be harsh. This buffers u, we don't need the deduction as we have
ton.

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66. On June 3, 2015, Ms. Kelli Winter had an exchange with the Defendant on Facebook messenger as
follows;

Winter: What percent do the editors get? I'm trying to make sense of my statement
Defendant: They are not getting a percentage of your sales. They are added in so you can take
the write off for taxes and it has to include what I paid editors for books. So, if I pay them out totally for a
book out on company end, it will be added into to show you are allowed to take the deduction from taxes. So
next month your editor will show nothing was taken out or added in. Your editing was small, and so I paid it
all out so I wouldn't have to continue to add it in. The IRS requires us to put that in showing you
are allowed to take the deduction on a royalty payment. When tax time comes any royalties you are paid
out, you will have to pay taxes on, I do not need the deduction so you are given it. Has to be shown as
income so you can take the write off or you can't take the right off at the end of the year. The IRS requires
you to pay a hefty tax on royalties and this helps you

Defendant: When your sales come in, they are divided 50 50 and then on my side I pay editors out. So
essentially I make a lot less on the actual sales of books since I give you the write off. Should I keep it, it
would be wasted but I can. The IRS will not allow you to take a deduction for business expenses when you
do not pay them directly. Since I pay them technically out of my portion of the sales they are considered
income. Since my fifty percent allowed me to pay the editing out all the way I did, because next month, I will
not have to pay them at all.

67. On February 9, 2016, based on the aforementioned statements and possible failure to provide accurate
1099s and the skimming of authors royalties, your affiant requested the assistance of Special Agent Peter
Muggli of the Colorado Department of Revenue (CDOR), Criminal Investigation Section. I met with Agent
Muggli and provided him USAA bank records for JK Publishing as well as Facebook messages containing
statements made by the Defendant regarding income taxes.

68. On May 5, 2017, Agent Muggli provided your affiant the results of his investigation based on the
documents I had provided him in February of 2016 as well as his examination of Colorado and IRS tax
records associated with the Defendant. Agent Muggli determined the following:
The Defendant was the CEO of JK Publishing and was aware of the 1099 requirements for payments to
authors.
The Defendant was a full year resident of Colorado, living in Weld County for at least tax years ending
December 31, 2013, December 31, 2014 and December 31, 2015.
A Colorado Income tax return was electronically filed, using Intuit Turbo Tax software, for the
Defendant for tax year ending December 31, 2014. This return was filed February 18, 2015. This return
listed business income from JK Publishing of $114,949.00. JK Publishing bank deposits showed at least
$474,233.18 was received for EBook Publishing during tax year 2014.
No Colorado Income tax returns were filed for tax years ending December 31, 2013 and December 31,
2015. CDOR, using the best available information available, calculated a Colorado Income Tax due for
both of those years.
No Colorado income tax payments have been made for tax years ending December 31, 2013, December
31, 2014, and December 31, 2015.
The Defendant had access to the money received from the EBook Publishing and paid various authors.

Page19of24

JK Publishing Reported Income compared to Actual Income (See Exhibit 13.)

Exhibit 13

The Defendant was aware in tax year ending December 31, 2013, Amazon paid $128,000. The
Defendant reported the Amazon form 1099 only showed income of $20,000.00.
1099s were provided to the Defendant and JK Publishing by the vendors for income received from the
sale of eBooks for the tax years in question.
In all years income was claimed on the JK Publishing Schedule C there was also an expense for Contract
Labor. This contract labor is most likely for the amount of money paid to authors.

69. Agent Mugglis analysis of Colorado income tax returns for tax years January 1, 2013 through December
31, 2015, determined the Defendant and her husband, Darren Scott Koretko, whose last known address is
2087 Pioneer Drive, Milliken, Colorado, filed an electronic Colorado income tax return for tax year ending
December 31, 2014. Moreover, the Defendant and her husband provided an amount of total income that
was not correct. According to the Defendants bank statements and retailers sales reports, it was
determined the income listed by the Defendant was fabricated, thus reducing the amount of income tax due
to the Colorado Department of Revenue which indicated a willful filing of income tax returns that were not
true and correct as to every material matter. For tax years ending December 31, 2013 and December 31,
2015 the Defendant and her husband filed federal income tax returns listing income from JK Publishing
and failed to file Colorado Income Tax returns or payments of tax.

70. In support of Count 5: The Defendant, for tax year ending December 31, 2013, due by April 15, 2014,
willfully attempted to evade or defeat any tax administered by the department or the payment thereof, by
failing to file a Colorado Income tax return and failed to pay taxes or estimated taxes, estimated to be in
excess of $3,775.00, which is a violation of Tax Evasion Failure to pay 39-21-118 (1), C.R.S., a Class 5
Felony.

71. In support of Count 6: The Defendant for tax year ending December 31, 2014, electronically filed a
Colorado income tax return jointly with her husband Darren Koretko on February 18, 2015. The return was
filed electronically using Turbo Tax Intuit software. The 2014 Schedule C was filed for business JK
Publishing, Federal Employer Identification Number 45-5380445 and listed the proprietors name of Jana
L. Kudron. The company listed business activity as EBook Publishing. The company reported total gross

Page20of24

72. receipts of $114,949.00 along with total expenses of $290,654.00. Part of the total expenses on the schedule
C was contract labor for $275,074.00. This contract labor is most likely for money paid to the individual
contracted authors of JK Publishing. The net loss for the tax year was listed as $175,705.00. JK Publishing
bank deposits from vendors for tax year 2014 was at least $474,233.18. Rather than a loss of $175,705.00,
as reported by the Defendant, the actual estimated Colorado taxable income for the Defendant was
$167,239.18. The estimated Colorado tax due is $7,743.00. The Defendant knew the information on the
Colorado income tax return was not true and correct as to every material matter which is a violation of
Filing a False Tax Return 39-21-118 (4), C.R.S., a Class 5 Felony.

73. In support of Count 7: The Defendant filed her Colorado Income tax return for year ending December 31,
2014 on February 18, 2015 electronically by using Turbo Tax Intuit software. In filing her tax return the
Defendant knowingly accessed a computer, computer network, or computer system for the purpose of
executing a scheme or artifice to defraud the Colorado Department of Revenue and the People of the State
of Colorado. The Defendants conduct resulted in her avoiding the payment of at least $7,743.00. The
Defendants conduct resulted in the loss of $5,000.00 or more, but less than $20,000.00, a violation of
Computer Crime 18-5.5-102 (1) (b), C.R.S., a Class 5 Felony.

74. In Support of Count 8: The Defendant, for tax year ending December 31, 2015, due by April 15, 2016,
willfully attempted to evade or defeat any tax administered by the department or the payment thereof, by
failing to file a Colorado Income tax return and failed to pay taxes or estimated taxes, estimated to be at
least $10,478.00, which is a violation of Tax Evasion 39-21-118 (1), C.R.S., a Class 5 Felony.

75. On and between January 10, 2014 and June 2, 2014 the Defendant, through 58 individual electronic
transactions performed over the internet, transferred a total of $41,177.37 which was received into JK
Publishings then primary USAA account ******. The proceeds were then transferred into USAA bank
account ******, an account controlled by the Defendant.

76. On and between August 28, 2014 and October 5, 2015, the Defendant, through 143 individual electronic
transactions performed over the internet, transferred a total of $209,705.16 which was received into JK
Publishings then primary USAA account ******. The proceeds were transferred into USAA bank account
******, an account controlled by the Defendant.

77. In Support of Count 9 and 10: On and between January 10, 2014 and October 5, 2015, the Defendant,
while in sole control of royalties received from the various retail platforms and through the normal course
of handling the affairs of JK Publishing, systematically directed monies into USAA account ******,
monies she knew, were in part, proceeds of a criminal offense. The Defendant, through the use of the
internet and a computer network, conducted on-line financial banking transactions for the purpose of
executing a scheme or artifice to defraud and with the intention to conceal, and disguise the location and
ownership of the proceeds which were known or believed to be in whole or in part, proceeds in any form of
a criminal offense. The Defendants conduct is a violation of Count 9; Money Laundering 18-5-309,
C.R.S., a Class 3 Felony and Count 10; Computer Crime 18-5.5-102 (1)(b), C.R.S., involving
$15,000.00 or more, a Class 3 Felony.

Page21of24

78. On and between January 19, 2014 and May 14, 2014 the Defendant, through 12 individual electronic
transactions performed over the internet, transferred a total of $4,451.00 which was received into JK
Publishings then primary USAA account ******. The proceeds were transferred into USAA bank account
******, an account controlled by the Defendant.

79. On and between September 8, 2014 and October 1, 2015, the Defendant, through 26 individual transactions
performed over the internet, transferred a total of $16,434.00, which was received into JK Publishings
primary USAA account ******. The proceeds were electronically transferred into USAA bank account
******, an account controlled by the Defendant.
80. In Support of Count 11 and 12: On and between January 19, 2014 and October 1, 2015, the Defendant,
while in sole control of royalties received from the various retail platforms and through the normal course
of handling the affairs of JK Publishing, systematically directed monies into USAA account ******,
monies she knew, were in part, proceeds of a criminal offense. The Defendant, through the use of the
internet and a computer network, conducted on-line financial banking transactions for the purpose of
executing a scheme or artifice to defraud and with the intention to conceal, and disguise the location and
ownership of the proceeds which were known or believed to be in whole or in part, proceeds in any form of
a criminal offense. The Defendants conduct is a violation of Count 11; Money Laundering 18-5-309,
C.R.S., a Class 3 Felony and Count 12; Computer Crime 18-5.5-102 (1)(b), C.R.S., involving
$15,000.00 or more, a Class 3 Felony.

81. On and between January 14, 2014 and May 29, 2014 the Defendant, through 15 individual electronic
transactions performed over the internet, transferred a total of $14,312.00 which was received into JK
Publishings then primary USAA account ******. The proceeds were transferred into USAA bank account
******, an account controlled by the Defendant.

82. On and between September 5, 2014 and September 28, 2015, the Defendant, through 8 individual
electronic transactions performed over the internet , transferred a total of $13,240.00, which were royalties
received into JK Publishings primary USAA account ******. The proceeds were electronically transferred
into USAA bank account ******, an account controlled by the Defendant.

83. In Support of Count 13 and 14: On and between January 14, 2014 and September 28, 2015, the
Defendant, while in sole control of royalties received from the various retail platforms and through the
normal course of handling the affairs of JK Publishing, systematically directed monies into USAA account
*****, monies she knew were, in part, proceeds of a criminal offense. The Defendant, through the use of
the internet and a computer network, conducted on-line financial banking transactions for the purpose of
executing a scheme or artifice to defraud and with the intention to conceal, and disguise the location and
ownership of the proceeds which were known or believed to be in whole or in part, proceeds in any form of
a criminal offense. The Defendants conduct is a violation of Count 13; Money Laundering 18-5-309
C.R.S., a Class 3 Felony and Count 14; Computer Crime 18-5.5-102 (1)(b), C.R.S., involving
$15,000.00 or more, a Class 3 Felony.

84. On and between April 15, 2014 and May 20, 2014 the Defendant, through 4 individual electronic
transactions performed over the internet, transferred a total of $3,263.00 which was received into JK

Page22of24

Publishings then primary USAA account ******. The proceeds were transferred into USAA bank account
******, an account controlled by the Defendant.

85. On and between August 29, 2014 and September 28, 2015, the Defendant, through 55 individual electronic
transactions performed over the internet , transferred a total of $26,845.37, which were royalties received
into JK Publishings primary USAA account******. The proceeds were then electronically transferred into
USAA bank account ******, an account controlled by the Defendant.

86. In Support of Count 15 and 16: On and between April 15, 2014 and September 28, 2015, the Defendant,
while in sole control of royalties received from the various retail platforms and through the normal course
of handling the affairs of JK Publishing, systematically directed monies into USAA account ******,
monies she knew were, in part, proceeds of a criminal offense. The Defendant, through the use of the
internet and a computer network, conducted on-line financial banking transactions for the purpose of
executing a scheme or artifice to defraud and with the intention to conceal, and disguise the location and
ownership of the proceeds which were known or believed to be in whole or in part, proceeds in any form of
a criminal offense. The Defendants conduct is a violation of Count 15; Money Laundering 18-5-309,
C.R.S., a Class 3 Felony and Count 16; Computer Crime 18-5.5-102 (1)(b), C.R.S., involving
$15,000.00 or more, a Class 3 Felony.

87. On and between April 18, 2014 and May 15, 2014 the Defendant, through 4 individual electronic
transactions performed over the internet, transferred a total of $3,359.00, which was received into JK
Publishings then primary USAA account ******. The proceeds were transferred into USAA bank account
******, an account controlled by the Defendant.

88. On and between September 25, 2014 and October 9, 2015, the Defendant, through 27 individual electronic
transactions performed over the internet , transferred a total of $26,845.37, which were royalties received
into JK Publishings primary USAA account ******. The proceeds were then electronically transferred into
USAA bank account ******, an account controlled by the Defendant.

89. In Support of Count 17 and 18: On and between April 18, 2014 and October 9, 2015, the Defendant,
while in sole control of royalties received from the various retail platforms and through the normal course
of handling the affairs of JK Publishing, systematically directed monies into USAA account ******,
monies she knew were, in part, proceeds of a criminal offense. The Defendant, through the use of the
internet and a computer network, conducted on-line financial banking transactions for the purpose of
executing a scheme or artifice to defraud and with the intention to conceal, and disguise the location and
ownership of the proceeds which were known or believed to be in whole or in part, proceeds in any form of
a criminal offense. The Defendants conduct is a violation of Count 17; Money Laundering 18-5-309
C.R.S., a Class 3 Felony and Count 18; Computer Crime 18-5.5-102 (1)(b), C.R.S., involving
$15,000.00 or more, a Class 3 Felony.

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Based on the above, your Affiant requests a Warrant be issued for Jana Leigh Koretko, date of birth; July 30,
1968, described as a white female, approximately 57 in height, 180 lbs., with BROWN hair and BROWN eyes.
The Defendants last known address is ******, Milliken, CO, 80543.

The above described events took place in Weld County, Colorado.

Dated this _____ day of ____________, 2017.

_________________________
AFFIANT

This affidavit, consisting of 24 pages, was subscribed and sworn


to before me this _____ day of _______________, 2017.

_________________________
NOTARY PUBLIC/JUDGE

It is hereby ORDERED that a warrant for the arrest of Jana Leigh Koretko, be issued and that bond be set in the
amount of $_____________.

_________________________
JUDGE

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