12. U.S. v. Les Price and Joseph R. Huard, Jr., a/k/a "Joe Huard,"
Case No. 02- 20626-CR-UNGARO-BENAGES
On July 25, 2002, a federal grand jury returned an Indictment
charging Les Price and Joseph R. Huard, Jr. with one count of wire and
securities fraud conspiracy, in violation of 18 U.S.C. § 371, ten counts of
wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346, and two counts of
securities fraud, in violation of 15 U.S.C. § 78j(b) and 17 C.F.R. §
240.10b-5. The Indictment also charges Price with one count of money
laundering, in violation of 18 U.S.C. § 1956(a)(2)(A). Price was the Chief
Executive Officer and, through nominees, a significant shareholder of
Medinah Minerals, Inc. (MDMN"), the stock of which was publicly traded on
the over-the-counter market. Huard was a licensed securities broker and
one of the founders and officers of Shamrock Partners, Ltd., a securities
brokerage firm located in Media, Pennsylvania. The Indictment alleges that
Price agreed to pay a $1.5 million undisclosed kickback to Huard, the FBI
UCA and others in return for their inducing the Fund to pay $5 million for
5 million shares of MDMN stock. The Indictment also alleges that Price and
Huard conspired to artificially inflate the market price of MDMN stock by
making illegal payments to securities brokers who would sell shares to
their unwitting clients. If convicted, the maximum, statutory term of
imprisonment is 5 years for conspiracy to commit wire/securities fraud,
wire fraud, and mail fraud, respectively, and 10 years for securities
fraud.
Money Laundering Indictments
21. U.S. v. John K. Purdy, a/k/a "Jack Purdy," Ronaldo Horvat,
a/k/a "Ron Horvat" and Harold A. Jolliffe, Case No. 02-20642-CR-LENARD
On August 1, 2002, a federal grand jury returned an Indictment
charging John K. Purdy, Ron Horvat, and Harold Jolliffe with one count of
money laundering conspiracy, in violation of 18 U.S.C. § 1956(h), and eight
counts of money laundering, in violation of 18 U.S.C. § 1956(a)(3)(B).
Purdy, Horvat, and Jolliffe were purported principals of Bolivian Hardwood
Corporation, a privately-held corporation engaged in harvesting timber in
Bolivia with an office in Vancouver, Canada. Purdy was stock promoter
residing in Canada. As part of the investigation, an undercover FBI agent
and an undercover RCMP officer posed as members of a Colombian drug
organization. The Indictment charges the defendants with conspiring to
conduct and conducting financial transactions involving money that was
represented by a law enforcement officer, and a person at the direction of
a law enforcement officer, as being the proceeds from the sale and
distribution of cocaine. The Indictment also seeks forfeiture from the
defendants of all property, real and personal, involved in the money
laundering offenses and all property traceable to such property, including
but not limited to, a Citibank account under the name of Jolliffe. If
convicted, the maximum, statutory penalty for money laundering and money
laundering conspiracy as charged in the Indictment is 20 years
imprisonment, respectively.
22. U.S. v. Kevan Garner and John K. Purdy, a/k/a "Jack Purdy,"
Case No. 02-20641- CR-MOORE
On August 1, 2002, a federal grand jury returned an Indictment
charging Kevan Garner and John K. Purdy with one count of money laundering
conspiracy, in violation of 18 U.S.C. § 1956(h), and two counts of
substantive money laundering, in violation of 18 U.S.C. § 1956(a)(3)(B).
Garner and Purdy were stock promoters and purported principals of Garner
Purdy Venture Capital and Diacom Ventures, Ltd. located in Vancouver,
Canada. As part of the investigation, an undercover FBI agent and an
undercover RCMP officer posed as members of a Colombian drug organization.
The Indictment charges the defendants with conspiring to conduct and
conducting financial transactions involving money that was represented by a
person at the direction of a law enforcement officer to be the proceeds
from the sale and distribution of cocaine. If convicted, the maximum,
statutory penalty for money laundering and money laundering conspiracy as
charged in the Indictment is 20 years imprisonment, respectively. |
