Case: 1:19-cr-00240 Document #: 1 Filed: 03/14/19 Page 1 of 23 PageID #:1

FILED UNITED STATES DISTRICT COURT

~~ MAR
14 2019 NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
THOMAS G. BRUTON
CLERK,U.S. DISTRICT COURT

UNITED STATES OF AMERICA )

19C
No.
240
)
V. ) Violations: Title 18, United States
) Code, Sections 371 and 666
DONALD DONAGHER, JR., and ) J D ~-,LEE
PENN CREDIT CORPORATION )
MAGISTRATE
JUDGE rn~--u
.....<l.lUJUYUf'IGS
COUNT ONE

The SPECIAL FEBRUARY 2017 GRAND JURY charges:

1. At times material to this indictment:

a. Defendant PENN CREDIT CORPORATION ("PENN CREDIT"),

located in Harrisburg, Pennsylvania, contracted with various governmental entities

to provide debt collection services, such as for the Clerks' Offices described below.

b. Defendant DONALD DONAGHER, JR., was an owner and the

Chief Executive Officer of PENN CREDIT.

c. Employees A through E were employees of PENN CREDIT who

were based in Pennsylvania and Florida.

d. PENN CREDIT employed lobbyists to engage with current and

potential government clients in Illinois and Florida.

e. DONAGHER also controlled at least seven other companies (the

"DONAGHER Entities").

f. Cook County was a county located within the State of Illinois.

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g. Orange County, Brevard County, and St. Johns County were

counties located within the State of Florida.

h. Each County provided governmental functions and services on

behalf of its citizens through various elected officials, including an elected public

official known as the "Clerk" who ran a County office that was responsible for, among

other things, maintaining court records and collecting debt owed the County, such

as traffic fines and court fees. Each Clerk held discretionary authority on behalf of

their respective offices (collectively, the "Clerks' Offices") to award contracts for debt

collection work to outside vendors and/or to allocate the work to or between multiple

vendors under such contracts. The Clerks' Offices were run by the following Clerks,

each of whom was an agent of their respective County and their respective Clerk's

Office:

1. The Office of the Clerk of the Circuit Court of Cook County

was run by Clerk A.

11. The Office of the Orange County Clerk of Courts was run

by Clerk B from in or around January 2014, until in or around November 2014, and

by Clerk C from in or around November 2014, to the date of this indictment.

m. The Office of the Brevard County Clerk of the Court was

run by Clerk D from in or around January 2013 to the date of this indictment.

1v. The Office of the St. Johns County Clerk of Court and

Comptroller was run by Clerk E from in or around October 2015 to the date of this

indictment.

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1. Cook County was a local government that received in excess of

$10,000 in federal benefits each calendar year from 2009 through 2016.

J. The Office of the Orange County Clerk of Courts, Office of the

Brevard County Clerk of Court, and the Office of the St. Johns County Clerk of Court

and Comptroller were local government agencies that received in excess of $10,000

in federal benefits in each calendar year from 2009 through 2016.

2. Beginning in or around 2009, and continuing until m or around

November 2016,

DONALD DONAGHER, JR., and

PENN CREDIT CORPORATION,

defendants herein, together with others known and unknown to the Grand Jury,

conspired to corruptly give, offer, and agree to give anything of value to the Clerks,

and to individuals and entities associated with the Clerks, intending to influence and

reward the Clerks in connection with any business, transaction, and series of

transactions of such government and agency involving anything of value of $5,000 or

more, namely, the award and allocation of debt collection work to PENN CREDIT, in

violation of Title 18, United States Code, Section 666(a)(2).

3. It was part of the conspiracy that defendants DONAGHER and PENN

CREDIT, together with Employees A through E, and others, corruptly gave, offered,

and agreed to give money, gifts, and services to the Clerks-and to individuals and

entities associated with the Clerks, such as their campaign committees and affiliated

charities-for the purpose of seeking favorable treatment for PENN CREDIT in the

award, allocation, and retention of debt collection work.

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4. It was further part of the conspiracy that defendants DON AG HER and

PENN CREDIT, together with Employees A through E, and others, corruptly gave,

offered, and agreed to give a variety of benefits to the Clerks and their associates,

seeking to influence and reward the Clerks in connection with:

a. awarding contracts to PENN CREDIT;

b. increasing the share of debt collection work allocated to PENN

CREDIT;

c. increasing fees paid to PENN CREDIT;

d. declining to institute a bid process for debt collection contracts;

and

e. extending the termination date of expiring PENN CREDIT

contracts.

5. It was further part of the conspiracy that d~fendants DONAGHER and

PENN CREDIT, together with Employees A through E, and others, corruptly gave,

offered, and agreed to give a variety of benefits to the Clerks and their associates,

such as the following:

a. sponsorship of events and meetings hosted by certain Clerks,

including paying for food and other items at such events and meetings;

b. gifts to certain Clerks, including free meals and entertainment;

c. consulting contracts to individuals and entities associated with

certain Clerks;

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d. donations to charities affiliated with and supported by certain

Clerks;

e. contributions to certain Clerks' campaigns;

f. contributions to political action committees (commonly referred

to as "PACs") associated with certain Clerks; and

g. free, discounted, and in-kind contributions in the form of

automated telephone calls (commonly referred to as "robocalls") for certain Clerks.

6. It was further part of the conspiracy that defendant DON AG HER and

the co-conspirators utilized electronic mail to discuss their plans and the progress of

the conspiracy, and to take certain actions for the purpose of corruptly influencing

and rewarding the Clerks and individuals associated with the Clerks.

7. It was further part of the conspiracy that defendant DONAGHER

utilized his cellular telephone to communicate with certain Clerks, and associates of

certain Clerks, to discuss:

a. upcoming and pending bids for contracts;

b. terms of contracts;

c. allocating more lucrative and additional debt collection work to

PENN CREDIT;

d. increasing the fees collected by PENN CREDIT;

e. donations to charities affiliated with and supported by certain

Clerks;

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f. how much competitor debt collection companies had donated to

certain Clerks' campaigns;

g. gifts, including free meals and entertainment;

h. sponsorship of events and meetings hosted by certain Clerks and

certain Clerks' Offices;

1. the award of consulting contracts to individuals and entities

associated with certain Clerks;

J. campaign contributions;

k. contributions to PACs; and

1. free, discounted, and in-kind contributions m the form of

robocalls.

8. It was further part of the conspiracy that defendants DON AG HER and

PENN CREDIT, together with Employees A through E, and others, caused the

purpose and source of robocalls made to support certain Clerks' campaigns to be

concealed by:

a. not invoicing the campaigns;

b. invoicing the campaigns at a reduced cost;

c. invoicing the campaigns in the names of individual PENN

CREDIT employees at their home addresses;

d. invoicing the campaigns in the name of one of the DONAGHER

Entities; and

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e. not collecting from the campaigns amounts owed to PENN

CREDIT.

9. It was further part of the conspiracy that defendants DONAGHER and

PENN CREDIT, together with Employees A through E, and others, caused the

purpose and source of certain campaign contributions to certain Clerks' campaigns to

be concealed by directing that the contributions be made in the name of individual

PENN CREDIT employees, lobbyists, and the DONAGHER Entities.

10. It was further part of the conspiracy that defendants DONAGHER and

PENN CREDIT, together with Employees A through E, and others, circumvented

campaign contribution limits by directing that certain campaign contributions to

certain Clerks' campaigns be made in the name of individual PENN CREDIT

employees, lobbyists, and the DONAGHER Entities.

11. It was further part of the conspiracy that defendants DONAGHER and

PENN CREDIT, together with Employees A through E, and others, reimbursed

individual employees for certain campaign contributions to certain Clerks'

campaigns-contributions that had been directed to be made by DONAGHER-via

payroll as a "bonus" to the employee in order to circumvent campaign contribution

limits and conceal the purpose and source of certain campaign contributions.

Overt Acts

12. In furtherance of the conspiracy and to effect its objects, DONAGHER,

PENN CREDIT, together with Employees A through E, and others, committed and

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caused to be committed the following overt acts, among others, in the Northern

District of Illinois, and elsewhere:

a. On or about June 7, 2011, DONAGHER caused a PENN CREDIT

check in the approximate amount of $5,000 to be deposited into an account in the

name of Clerk A Scholarship and Community Development Fund at JPMorgan Chase

Bank in Chicago.

b. On or about August 19, 2011, DONAGHER sent an email to

PENN CREDIT employees and one of its lobbyists in Illinois, including Employees

A, B, C and E, in which DONAGHER advised them that he promised Clerk A "l0k

of 'early' money," which email was sent less than three weeks after PENN CREDIT

began collecting debt for the Office of the Clerk of the Circuit Court of Cook County.

c. On or about August 24, 2011, DONAGHER sent an email to

PENN CREDIT employees and one of its lobbyists in Illinois, including Employees

A, B, C and E, in which DONAGHER asked if the lobbyist was available to attend

an event for Clerk A: "We are giving her 10k and want to make it count with [first

name of Clerk A] and her staff."

d. On or about September 6, 2011, DONAGHER sent an email to the

Comptroller of the Office of the Clerk of the Circuit Court of Cook County in which

DONAGHER advised that he could not make an event for Clerk A but would be

sending a lobbyist to attend the event: "... I have told [first name of Clerk A] and

[first name of Clerk A's Chief of Staff] that we would be sending a donation of 10,000

dollars from [name of a DONAGHER Entity]."

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e. On or about September 14, 2011, DONAGHER caused a

contribution of approximately $10,000 to be made via a Pay Pal account in his name

"towards the fund raising efforts of Contributions to Friends of [Clerk A]."

f. On or about February 28, 2012, DONAGHER directed Employee

A to make hundreds of thousands ofrobocalls to Cook County residents for Clerk A's

campaign and Clerk A's associates, for which DONAGHER neither collected

payment from, nor issued an invoice to, Clerk A or Clerk A's campaign.

g. On or about November 20, 2012, DONAGHER sent an email to

two of PENN CREDIT's lobbyists in Illinois where he directed them to ensure PENN

CREDIT was getting an equal share of debt collection work from the Office of the

Clerk of the Circuit Court of Cook County as compared to a competitor vendor under

the same contract: "Just a reminder that we made a shitload of calls for [first name

of Clerk A]. Have you received all of the numbers we requested to make sure

everything is equal?"

h. In or around February 2013, DONAGHER and Employee D met

with Clerk D and representatives of Clerk D's office regarding Clerk D's intention to

initiate the bid process for a debt collection contract for the Office of the Clerk of

Brevard County, and DONAGHER offered: (i) campaign contributions to Clerk D;

(ii) to partially or fully subsidize a picnic for the Clerk's Office; and (iii) to purchase

shirts for Clerk's Office employees to wear at charity events. DONAGHER persisted

with these offers even after learning of Clerk D's stated practice of not accepting

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anything, including campaign contributions, from vendors or prospective vendors

doing or seeking to do business with the Clerk's Office or Brevard County.

1. On or about July 3, 2013, DONAGHER sent an email to

Employees C and E, and an Illinois lobbyist, regarding a Clerk A campaign

fundraiser in which DONAGHER advised his fellow co-conspirators that "[w]e will

give as much plus a dollar" that a competitor debt collection company had

contributed to Clerk A's campaign.

J. On or about July 3, 2013, DONAGHER sent an email to

Employees A, C, and E, and an Illinois lobbyist, regarding a Clerk A campaign

fundraiser in which DONAGHER stated, "I called [Clerk A] about [competitor debt

collection company] donation number for the year. [Employee A's first name] get our

year to date total for [first name of Clerk A]."

k. On or about July 19, 2013, DONAGHER caused a contribution of

approximately $2,500 to be made via a PayPal account in his name to a Clerk A

campaign fundraiser.

1. On or about September 22, 2013, DONAGHER sent an email to

Employees A and E, and two lobbyists in Illinois, regarding a request for

contributions to a birthday celebration in honor of Clerk A and stated in part:

"Handle this appropriately. I told her we would do 2500."

m. On or about September 24, 2013, DONAGHER caused five $500

checks to be mailed to "Friends of [Clerk A]" in Chicago from DONAGHER, PENN

CREDIT, and three DONAGHER Entities.

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n. On or about February 18, 2014, DONAGHER sent an email to

Employees A through E concerning Clerk C's intention to run as a candidate for the

Clerk of the Office of the Orange County Clerk of Courts that stated:

It looks like it would be [first name of Clerk C] and [first

name of Clerk B] ifhe ran. Ifhe does not run [first name of
Clerk C] is it. Hope [competitor debt collection company]
stays out of it one way or the other. If [first name of Clerk
C] wins and throws [competitor debt collection company]
out, we need to get all the backlog. Ask [first name of
Florida lobbyist] when u talk to him for guidance.

Urgent. Early money counts the most. If first name of Clerk

B] is out we raise 20k for [first name of Clerk C] and do her
calls. How can [lawyer for another competitor debt
collection company] do 1000. I thought 500 was the max.

o. On or about February 19, 2014, DONAGHER sent an email to

Employees A through E concerning Clerk C's intention to run as a candidate for the

Clerk of the Office of the Orange County Clerk of Courts that stated:

Find out quickly if [first name of Clerk B] is running. I [sic.]

not we will send this woman 3000 as insurance. If
[competitor debt collection company] beats us to the punch
we could be out. [Another competitor debt collection
company] in [competitor debt collection company] in penn
out. Ask [first name of Florida lobbyist] if we should send
money now for insurance for us. Early money always wins.

p. On or about March 12, 2014, DONAGHER forwarded to Employee

C and two Illinois lobbyists an email from an employee of the Office of the Clerk of

the Circuit Court of Cook County thanking DONAGHER for underwriting the

expenses for the Clerk of the Circuit Court of Cook County's Women's History Month

Celebration and DONAGHER wrote "I told her we are fans of [first name of Clerk

A]. We gotta stay ahead of [competitor debt collection company]!!"

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q. On or about March 20, 2014, DONAGHER, Employee A, and

Employee C caused a PENN CREDIT check in the approximate amount of $869 to

be delivered to a trophy company located in Morton Grove, Illinois, which check was

issued to pay for plaques for the Clerk of the Circuit Court of Cook County's Women's

History Month Celebration.

r. On or about March 25, 2014, DONAGHER, Employee A, and

Employee C caused a PENN CREDIT check in the approximate amount of$1,000 to

be delivered to a food services company located in Chicago, Illinois, to pay for food

served at the Clerk of the Circuit Court of Cook County's Women's History Month

Celebration.

s. On or about March 31, 2014, DONAGHER caused PENN

CREDIT to enter into a contract with a government relations firm headed by the

husband of a close personal friend of Clerk B, pursuant to which the government

relations firm received a monthly payment of approximately $5,000 from PENN

CREDIT.

t. On or about June 10, 2014, DONAGHER used a PENN CREDIT

credit card and paid approximately $936 to a strip club in West Palm Beach, Florida,

which payment covered expenses incurred by DONAGHER, Clerk B, and other

attendees of the Florida Court Clerk & Comptrollers Conference at the strip club.

u. On or about July 28, 2014, DONAGHER caused four checks

totaling $2,500 from DONAGHER, PENN CREDIT, and Employees Band C to be

sent by Federal Express to "Friends of [Clerk A]" in Chicago.

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v. On or about November 5, 2014, the day after Clerk C was elected

Clerk of Orange County, DONAGHER sent the following email to Employees A

through E concerning Clerk C:

[Employee C], find out all you can about this woman. It
seems the deal is that when people want deals to happen
in orange county large contributions are made and then the
deal happens the very next day. Look into that look into
Facebook to see who her friends are look at all the articles
in the Orlando Sentinel that involve these deals that she
was involved in getting passed through the commissioners
and find out who the lobbyist or public relations person was
that put together all these deals, and packaged them up,
put them before the commissioners and then head [sic.]
[first name of Clerk C] rubberstamp them. We need to find
that person and get him or her on our payroll.

We need to find out who her best friend/friends are and get
them on the penn credit team before [name of competitor
debt collection company] and [name of debt collection
company with whom PENN CREDIT shared the contract
in Orange County] and [name of another competing debt
collection company] get to her first. Find out who her closet
[sic.] political confidant is. We will move very quickly. We
are talk huge amounts of profit here. [First name of
Employee D] jump in here too with your ideas as well, this
is one of your commission clients. Help yourself by helping
us. This is war. Thank you.

Don

w. On or about December 16, 2014, DONAGHER met with Clerk C

and gave Clerk C a check for approximately $2,500, made out to a charity selected

by Clerk C.

x. On or about December 16, 2014, DONAGHER met with the

Sheriff of Brevard County and the Fire Chief of Titusville, to whom DONAGHER

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provided checks totaling approximately $15,500, made out to Brevard County

charities.

y. On or about December 16, 2014, DONAGHER met with the

Sheriff of Brevard County and asked the Sheriff to call Clerk D and let Clerk D know

that DONAGHER was a good guy and that DONAGHER didn't want to lose his

contract with the Office of the Brevard County Clerk of the Court.

z. On or about December 17, 2014, DON AG HER forwarded an email

regarding the charitable donations he had made the day before in five counties in

Florida, and wrote to a PENN CREDIT salesperson located in Florida: "Pray for

[Clerk DJ to pick us as one of the agencies."

aa. On or about December 31, 2014, after learning that PENN

CREDIT had not been selected to continue as a debt collection vendor for the Office

of the Brevard Comity Clerk of the Court, DON AG HER sent the following email to

Clerk D and members of Clerk D's staff that stated in part (emphasis in original):

Penn Credit is scheduled to discontinue collections on our

remaining portfolio/accounts on January 5th.

What I am proposing is that Penn Credit would keep the

current inventory until May 15th. As a gesture of good will
we will donate 50 percent of all of our fees generated
January 2015 through May 15th, paid monthly to charities
within Brevard County, and if you feel comfortable, they
can be charities of your choice.

We have recently (December 2014) made sizable donations

to charitable causes in Brevard County in the amount
$15,500 including 2,000 to MADD, 6,000 to the County
Animal Services program recently taken over by [Sheriff of

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Brevard County], 2000 for Shop with a cop program and

5500 for toys for children through the North Brevard
Children's program. This was administered by [Titusville
Fire Department Chief] of the Titusville fire department.

We sent 10 kids with 5 firemen and a hook and ladder truck

to Orlando's Toys R us and each child bought 500 dollars
worth of toys for other children, topped of [sic.] by dinner
at McDonalds.

We have made commitments to the animal shelter and the

fire department this year as well.

We estimate that within the next 4 months we can both do

a great thing, and donate anywhere between 75,000 and
112,500 dollars, and make a lot of animals and children of
Brevard County happy! We have nothing to lose and a lot
to gain. We can do much good here. I personally am going
to donate time monthly as a volunteer at the Animal
Shelter. Hopefully I won't have to clean out the dog cages
every time!

bb. In or around February 2015, DONAGHER caused PENN

CREDIT to enter into an arrangement with a government relations firm headed by

Clerk C's campaign manager, which provided the government relations firm would

receive a payment of approximately $2,000 a month from PENN CREDIT.

cc. On or about April 27, 2016, DON AG HER caused five $1,000

checks to be written to Clerk E's campaign from DONAGHER, PENN CREDIT, and

three DONAGHER Entities.

dd. On or about May 20, 2016, DONAGHER caused PENN CREDIT

to issue a check in the approximate amount of $2,000 to a charity in Orange County

in response to a request for a donation from Clerk C.

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ee. On or about July 26, 2016, DONAGHER caused two $1,000

checks and two $500 checks to be written to Clerk E's campaign from three

DONAGHER Entities and a Florida lobbyist.

ff. On or about September 26, 2016, while PENN CREDIT's request

to obtain a contract with Office of the Orange County Clerk of Courts was under

consideration, DONAGHER sent the following email to Employees A, C, D, and E, a

Florida lobbyist, and others, concerning Clerk C:

She busted my stones and said [another debt collection

company competing for the same contract] ponied up
another 10k.

Send 5 to [first name of a Florida lobbyist] and then have

[first name of a Florida lobbyist] tell her we gave her 10
and then gave 5. With this 5 we are 20k.

gg. On or about November 17, 2016, in response to an email from a

Florida lobbyist asking if DON AG HER had seen a note from Clerk E thanking the

lobbyist for his "generous support and help during my campaign," DONAGHER

replied in an email to the lobbyist and Employees A, D, and E, and others: "I did. It

would be nice to have the whole account. 100 percent."

All in violation of Title 18, United States Code, Section 371.

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COUNTTWO

The SPECIAL FEBRUARY 2017 GRAND JURY further charges:

1. Paragraph One of Count One of this Indictment is incorporated here.

2. On or about July 19, 2013, at Chicago, in the Northern District of

Illinois, Eastern Division, and elsewhere,

DONALD DONAGHER, JR., and

PENN CREDIT CORPORATION,

defendants herein, corruptly gave, offered, and agreed to give anything of value,

namely, a $2,500 campaign contribution to a fundraiser to benefit Clerk A, an agent

of Cook County, a local government that received in excess of $10,000 in federal

benefits in 2013, intending to influence and reward Clerk A in connection with any

business, transaction, and series of transactions of such government involving

anything of value of $5,000 or more, that is, the referral of traffic debt placements

from the Clerk's Office to PENN CREDIT pursuant to its contract with Cook County;

In violation of Title 18, United States Code, Section 666(a)(2).

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COUNT THREE

The SPECIAL FEBRUARY 2017 GRAND JURY further charges:

1. Paragraph One of Count One of this Indictment is incorporated here.

2. On or about September 23, 2013, at Chicago, in the Northern District of

Illinois, Eastern Division, and elsewhere,

DONALD DONAGHER, JR., and

PENN CREDIT CORPORATION,

defendants herein, corruptly gave, offered, and agreed to give anything of value,

namely, $2,500 in campaign contributions to benefit Clerk A, an agent of Cook

County, a local government that received in excess of $10,000 in federal benefits in

2013, intending to influence and reward Clerk A in connection with any business,

transaction, and series of transactions of such government involving anything of

value of $5,000 or more, that is, the referral of traffic debt placements from the Clerk's

Office to PENN CREDIT pursuant to its contract with Cook County;

In violation of Title 18, United States Code, Section 666(a)(2).

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COUNT FOUR

The SPECIAL FEBRUARY 2017 GRAND JURY further charges:

1. Paragraph One of Count One of this Indictment is incorporated here.

2. On or about March 20, 2014, at Chicago and Morton Grove, in the

Northern District of Illinois, Eastern Division, and elsewhere,

DONALD DONAGHER, JR., and

PENN CREDIT CORPORATION,

defendants herein, corruptly gave, offered, and agreed to give anything of value,

namely, a payment of approximately $869 to a trophy company located in Morton

Grove, Illinois, which payment was made for the benefit of Clerk A, an agent of Cook

County, a local government that received in excess of $10,000 in federal benefits in

2014, intending to influence and reward Clerk A in connection with any business,

transaction, and series of transactions of such government involving anything of

value of $5,000 or more, that is, the referral of traffic debt placements from the Clerk's

Office to PENN CREDIT pursuant to its contract with Cook County;

In violation of Title 18, United States Code, Section 666(a)(2).

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COUNT FIVE

The SPECIAL FEBRUARY 2017 GRAND JURY further charges:

1. Paragraph One of Count One of this Indictment is incorporated here.

2. On or about March 25, 2014, at Chicago, in the Northern District of

Illinois, Eastern Division, and elsewhere,

DONALD DONAGHER, JR., and

PENN CREDIT CORPORATION,

defendants herein, corruptly gave, offered, and agreed to give anything of value,

namely, a payment of $1,000 to a food services company located in Chicago, Illinois,

which payment was made for the benefit of Clerk A, an agent of Cook County, a local

government that received in excess of $10,000 in federal benefits in 2014, intending

to influence and reward Clerk A in connection with any business, transaction, and

series of transactions of such government involving anything of value of $5,000 or

more, that is, the referral of traffic debt placements from the Clerk's Office to PENN

CREDIT pursuant to its contract with Cook County;

In violation of Title 18, United States Code, Section 666(a)(2).

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COUNT SIX

The SPECIAL FEBRUARY 2017 GRAND JURY further charges:

1. Paragraph One of Count One of this Indictment is incorporated here.

2. On or about July 28, 2014, at Chicago, in the Northern District of

Illinois, Eastern Division, and elsewhere,

DONALD DONAGHER, JR., and

PENN CREDIT CORPORATION,

defendants herein, corruptly gave, offered, and agreed to give anything of value,

namely, $2,500 in campaign contributions to benefit Clerk A, an agent of Cook

County, a local government that received in excess of $10,000 in federal benefits in

2014, intending to influence and reward Clerk A in connection with any business,

transaction, and series of transactions of such government involving anything of

value of$5,000 or more, that is, the referral of traffic debt placements from the Clerk's

Office to PENN CREDIT CORPORATION pursuant to its contract with Cook County;

In violation of Title 18, United States Code, Section 666(a)(2).

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FORFEITURE ALLEGATION

The SPECIAL FEBRUARY 2017 GRAND JURY alleges:

1. The Grand Jury re-alleges and incorporates the allegations of Counts

One through Six of the Indictment, which are incorporated by reference as though

fully set forth herein.

2. Pursuant to Title 18, United States Code, Sections 981 and 982, Title

21, United States Code, Sections 853 and 881, and Title 28, United States Code,

Section 2461(c), and upon conviction of one or more of the offenses alleged in Counts

One through Six of the Indictment, the defendants shall forfeit to the United States

of America all right, title, and interest in:

a. any property constituting, or derived from, any proceeds the

persons obtained, directly or indirectly, as the result of the offense; and

b. any of the defendants' property used, or intended to be used, in

any manner or part, to commit, or to facilitate the commission of such offense.

3. If any of the forfeitable property, as a result of any act or omission of the

defendants:

a. cannot be located upon the exercise of due diligence,

b. has been transferred or sold to, or deposited with, a third party,

c. has been placed beyond the jurisdiction of the court,

d. has been substantially diminished in value, or

e. has been commingled with other property which cannot be

divided without difficulty,

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it is the intent of the United States to seek forfeiture of any other property of said

defendants up to the value of the above-described forfeitable property, pursuant to

Title 21, United States Code, Section 853(p).

All in accordance with Title 18, United States Code, Sections 981 and 982, Title

21, United States Code, Sections 853 and 881, Title 28, United States Code Section

2461(c), and Rule 32.2, Federal Rules of Criminal Procedure.

A TRUE BILL:

FOREPERSON

UNITED STATES ATTORNEY

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