Case: 5:19-cr-00108-GFVT-MAS Doc #: 1 Filed: 06/06/19 Page: 1 of 11 - Page ID#: 1
UNITED STATES DISTRICT COURT Eastern District of Kentucky
EASTERN DISTRICT OF KENTUCKY JI LID
CENTRAL DIVISION
LEXINGTON JUN O6 2019
~T LEXINGTON
UNITED STATES OF AMERICA CLER R.of3ERT R. CARR
K U.S. DISTRICT COUR"f
v. 1ND1cTMENT No. s·,q -cg ~06'-crvr
TIMOTHY WAYNE WELLMAN
* * * * *
THE GRAND JURY CHARGES:
INTRODUCTION
1. At all times relevant hereto, TIMOTHY WAYNE WELLMAN was a
resident of Lexington, Fayette County, Kentucky and was a part owner/operator of CRM
Companies (hereafter CRM).
2. At all times relevant hereto, CRM was a real estate development and
management company located in Lexington, Kentucky.
3. At all times relevant hereto, Lexington, Kentucky (hereafter City) was an
incorporated city in the Commonwealth of Kentucky and was governed by a mayor
(hereafter Mayor) and a city council (hereafter Council).
4. In 2017, as part of an ongoing process by the Mayor, Council and
concerned citizens to relocate Lexington government offices, the Mayor appointed a
committee of City employees (hereafter Committee) to take, evaluate, and rank proposals
from qualifying real estate development companies for the relocation of City offices.
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5. In late 2017 or early 2018, CRM submitted a proposal to the Committee
that involved renovating and retrofitting an abandoned newspaper building for City
offices.
6. During the spring of 2018, elections were held for seats on the Council and
for Mayor. A member of the Council was a candidate for Mayor. During these
campaigns, two sitting Council members received large personal contributions to their
campaigns from employees of CRM.
7. In mid-2018, the Committee ranked CRM's proposal the best of four such
submissions and recommended that it be pursued by the City.
8. In August, 2018, a resolution of the Council to begin negotiations with
CRM on its proposal was scheduled for a Council vote. Members of the Council made
various public statements concerning their support or opposition to the CRM proposal.
9. In September, 2018, the Lexington, Kentucky office of the Federal Bureau
of Investigation (FBI) and Office of the United States Attorney for the Eastern District of
Kentucky, initiated a federal grand jury investigation into complaints and suspicions that
the campaign contributions by employees of CRM to two Council members were made to
influence their votes regarding CRM' s proposal for relocating City offices.
10. Because the City receives more than $10,000 per year in federal funds, its
agents and employees are within the purview of 18 U.S.C. § 666(b), and the above-
described, suspected conduct of Council members and CRM employees and agents would
be within the purview of 18 U.S.C.§ 666(a)(B) and (2).
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11. As part of the aforesaid investigation, investigators sought to determine
whether agents and employees of CRM had engaged in what is commonly referred to as a
"straw contribution" scheme, wherein a large contribution in excess of state or federal
statutory limits is unlawfully disguised as a series of individual smaller contributions by
other individuals.
12. In furtherance of the investigation, agents sought and obtained federal
grand jury subpoenas for bank records of a number of individuals, including employees
of CRM suspected of having been asked to lend their names as straw contributors.
Analysis of these records revealed what appeared to be contemporaneous reimbursements
of these straw contributors by CRM.
13. As part of the investigation, agents began a series of interviews of the
suspected straw contributors, and testimony was obtained at two sessions of the Federal
grand jury in Lexington. As a result of the investigation it was determined that JC, AH,
KH, VS, TS, ES, WS, TN, TL, ZW, AW, and TW were, in fact, straw contributors as
defined above.
COUNT 1
18 U.S.C. §§ 2 and 1512(c)(2)
14. The allegations contained in paragraphs 1 through 13 above are restated and
incorporated herein by reference.
15. From on or about a date in September, 2018, until on or about the date of
the indictment herein, at Lexington, Fayette County, in the Eastern District of Kentucky,
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TIMOTHY WAYNE WELLMAN
aided and abetted by others known and unknown, did corruptly obstruct, influence, and
impede, and attempted to corruptly obstruct, influence, and impede, an official
proceeding, that is, a Federal grand jury investigation, in that he engaged in a course of
conduct that included, among other acts, the following:
a. TIMOTHY WAYNE WELLMAN made requests and suggestions to the
above-described straw contributors that they should lie to investigators if
questioned about being a straw contributor by saying the money was their
own or was borrowed and that they were not reimbursed.
b. TIMOTHY WAYNE WELLMAN suggested to the straw contributors an
individualized false story to tell to explain the checks written to them by
TIMOTHY WAYNE WELLMAN, including, among others, that it was a
loan, that it was repayment of a pre-existing debt, that it was a bonus for
work performance, that it was for house cleaning, that it was for tree
removal, that it was for property leasing, or that it was for tax preparation
services.
c. TIMOTHY WAYNE WELLMAN created fake and falsified documents
that the straw contributors could provide to investigators or the grand jury
to corroborate the above false stories, including a fake IRS 1099 form and a
fake cash repayment ledger.
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d. TIMOTHY WAYNE WELLMAN asked some employees to write him
checks to create the appearance that they were making loan repayments,
while simultaneously offering them cash to cover those checks.
e. TIMOTHY WAYNE WELLMAN asked a straw contributor who had
already admitted being such to investigators to sign a contradictory and
false statement, stating that the reimbursement check was a loan from
TIMOTHY WAYNE WELLMAN that he was going to repay.
f. TIMOTHY WAYNE WELLMAN suggested to straw contributors that
they should stick with their false stories during grand jury testimony.
All in violation of Title 18, United States Code, Sections 2 and 1512(c)(2).
COUNT2
18 U.S.C. §§ 2 and 1001
16. The allegations contained in paragraphs 1 through 13 above are restated and
incorporated herein by reference.
17. On or about a date in the Fall of 2018, at Lexington, Fayette County, in the
Eastern District of Kentucky,
TIMOTHY WAYNE WELLMAN
did knowingly aid, abet, counsel, induce and procure JC to commit an offense under 18
USC§ 1001, that is: on or about November 8, 2019, in an investigation into possible
violations of federal law, a matter within the jurisdiction of the FBI, part of the executive
branch of the United States Government, JC made a materially false, fictitious, and
fraudulent statement and representation to an FBI agent, to wit, that he had not been
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reimbursed for his political contributions and that he had the money for the contribution
because of leasing work he had done for TIMOTHY WAYNE WELLMAN, when, in
fact, as they both then knew, TIMOTHY WAYNE WELLMAN had provided him with
a reimbursement check for his political contribution.
All in violation of Title 18, United States Code, Sections 2 and 1001.
COUNT3
18 U.S.C. §§ 2 and 1001
18. The allegations contained in paragraphs 1 through 13 above are restated and
incorporated herein by reference.
19. On or about a date in the Fall of 2018, at Lexington, Fayette County, in the
Eastern District of Kentucky,
TIMOTHY WAYNE WELLMAN
did knowingly aid, abet, counsel, induce and procure KH to commit an offense under 18
USC§ 1001, that is: on or about November 7, 2018, in an investigation into possible
violations of federal law, a matter within the jurisdiction of the FBI, part of the executive
branch of the United States Government, KH made a materially false, fictitious, and
fraudulent statement and representation to an FBI agent, to wit, that checks she received
from TIMOTHY WAYNE WELLMAN were loans, when in fact, as they both then
knew, the checks were reimbursements for political contributions.
All in violation of Title 18, United States Code, Sections 2 and 1001.
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COUNT4
18 U.S.C. §§ 2 and 1001
20. The allegations contained in paragraphs 1 through 13 above are restated and
incorporated herein by reference.
21. On or about a date in the Fall of 2018, at Lexington, Fayette County, in the
Eastern District of Kentucky,
TIMOTHY WAYNE WELLMAN
did knowingly aid, abet, counsel, induce and procure VS to commit an offense under 18
USC§ 1001, that is: on or about March 13, 2019, in an investigation into possible
violations of federal law, a matter within the jurisdiction of the FBI, part of the executive
branch of the United States Government, VS made a materially false, fictitious, and
fraudulent statement and representation to an FBI agent, to wit, that she was not
reimbursed for contribution checks to political campaigns, and that checks written to her
by TIMOTHY WAYNE WELLMAN were for tax preparation services she performed,
when in fact, as they both then knew, the checks were reimbursements for political
contributions.
All in violation of Title 18, United States Code, Sections 2 and 1001.
COUNTS
18 U.S.C. §§ 2 and 1001
22. The allegations contained in paragraphs 1 through 13 above are restated and
incorporated herein by reference.
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23. On or about a date in the Fall of 2018, at Lexington, Fayette County, in the
Eastern District of Kentucky,
TIMOTHY WAYNE WELLMAN
did knowingly aid, abet, counsel, induce and procure TS to commit an offense under 18
USC§ 1001, that is: on or about November 7, 2018, in an investigation into possible
violations of federal law, a matter within the jurisdiction of the FBI, part of the executive
branch of the United States Government, TS made a materially false, fictitious, and
fraudulent statement and representation to an FBI agent, to wit, that a check from
TIMOTHY WAYNE WELLMAN written to TS was a bonus based on job performance
and not reimbursement, when in fact, as they both then knew, the said check was for
reimbursement for a political contribution.
All in violation of Title 18, United States Code, Sections 2 and 1001.
COUNT6
18 U.S.C. §§ 2 and 1001
24. The allegations contained in paragraphs 1 through 13 above are restated and
incorporated herein by reference.
25. On or about a date in the Fall of 2018, at Lexington, Fayette County, in the
Eastern District of Kentucky,
TIMOTHY WAYNE WELLMAN
did knowingly aid, abet, counsel, induce and procure TN to commit an offense under 18
USC§ 1001, that is: on or about April 10, 2019 in an investigation into possible
violations of federal law, a matter within the jurisdiction of the FBI, part of the executive
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branch of the United States Government, TN made a materially false, fictitious, and
fraudulent statement and representation to an FBI agent, to wit, that checks written to him
by TIMOTHY WAYNE WELLMAN were not reimbursements for political
contributions but were repayment of money previously owed to him, when in fact, as they
both then knew, the checks were reimbursements for political contributions.
All in violation of Title 18, United States Code, Sections 2 and 1001.
COUNT7
18 U.S.C. §§ 2 and 1001
26. The allegations contained in paragraphs 1 through 13 above are restated and
incorporated herein by reference.
27. On or about a date in the Fall of 2018, at Lexington, Fayette County, in the
Eastern District of Kentucky,
TIMOTHY WAYNE WELLMAN
did knowingly aid, abet, counsel, induce and procure ES to commit an offense under 18
USC § 1001, that is: on or about March 6, 2019, in an investigation into possible
violations of federal law, a matter within the jurisdiction of the FBI, part of the executive
branch of the United States Government, ES made a materially false, fictitious, and
fraudulent statement and representation to an FBI agent, to wit, that a check written by
TIMOTHY WAYNE WELLMAN to ES was payment for cleaning services and was
not for reimbursement of a political contribution, when in fact, as they then both knew,
the check was reimbursement for a political contribution.
All in violation of Title 18, United States Code, Sections 2 and 1001.
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COUNTS
18 U.S.C. §§ 2 and 1001
28. The allegations contained in paragraphs 1 through 13 above are restated and
incorporated herein by reference.
29. On or about a date in the Fall of 2018, at Lexington, Fayette County, in the
Eastern District of Kentucky,
TIMOTHY WAYNE WELLMAN
did knowingly aid, abet, counsel, induce and procure TL to commit an offense under 18
USC§ 1001, that is: on or about October 9, 2018, in an investigation into possible
violations of federal law, a matter within the jurisdiction of the FBI, part of the executive
branch of the United States Government, TL made a materially false, fictitious, and
fraudulent statement and representation to an FBI agent, to wit, that he was not
reimbursed for his political contribution and that he had the money to make the
contribution because of money paid to him by TIMOTHY WAYNE WELLMAN for
clearing trees, when in fact, as they both then knew, the money from TIMOTHY
WAYNE WELLMAN was reimbursement for a political contribution.
All in violation of Title 18, United States Code, Sections 2 and 1001.
A TRUE BILL
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PENALTIES
COUNT 1: Not more than 20 years imprisonment, $250,000 fine, and 3 years
supervised release.
COUNTS 2-8: Not more than 5 years imprisonment, $250,000 fine, and 1 year
supervised release.
PLUS: Mandatory special assessment of $100 per count.
PLUS: Restitution, if applicable.
