Case 1:17-cr-00448-WJM Document 1 Filed 12/04/17 USDC Colorado Page 1 of 7

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLORADO

Criminal Case No. 17-cr-448-WJM

UNITED STATES OF AMERICA ,
Plaintiff,

v.

1. CATHLEEN VAN BUSKIRK

Defendant.

INDICTMENT
BANKRUPTCY FRAUD
18 U.S.C. § 157

CONCEALMENT OF BANKRUPTCY ASSETS

18 U.S.C. § 152(1)

FRAUDULENT TRANSFER AND CONCEALMENT

18 U.S.C. § 152(7)

MONEY LAUNDERING
18 U.S.C. § 1956( A )(1)

The Grand Jury charges:

Count 1: Bankruptcy Fraud

The Scheme to Defraud

1. In or about 2014, Defendant, Cathleen Van Buskirk devised and

intended to devise a scheme and artifice to defraud her creditors through a

bankruptcy proceeding under Title 11, United States Code.

2. It was a part of the scheme that Defendant would, prior to filing

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bankruptcy, transfer certain assets to other persons and do so in a way that would

both make it appear that the asset was no longer her property and conceal the

existence of the asset from the bankruptcy trustee, bankruptcy court, and her

creditors. Among those assets were:

• $46,000 in U.S. currency; 200 U.S. silver dollars; foreign currency from the

United Kingdom, European Union, and Belize; twenty British gold coins;

twenty Swiss gold coins; and one diamond ring; all of which Defendant gave to

A.L. and asked A.L. to keep for her; and

• $170,000 that Defendant transferred to Multiple Ventures, LLC, while still

directing the disposition of those funds.

Defendant would also omit these assets from her statement of financial affairs and

associated schedules and deny any ownership of the assets when questioned in

connection with the bankruptcy proceeding.

3. It was a further part of the scheme that Defendant would omit additional

items from her statement of financial affairs and associated schedules. Those items

included:

• more than $100,000 held by Neuro Logical, LLC, which was Defendant’s

property and under her control; and

• more than $7000 held by Multiple Ventures, LLC, which was Defendant’s

property and under her control.

4. It was a further part of the scheme that Defendant would damage and

alter a document that was to be provided to the bankruptcy trustee that might

otherwise indicate to the trustee that she owned valuable jewelry, a fact which she

wanted to conceal. Also, Defendant would minimize her ownership of jewelry when

questioned in connection with the bankruptcy proceeding.

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5. It was a further part of the scheme that Defendant would deny any

interest in or control over certain limited liability companies that were registered in

the name of either C.V., Defendant’s sister, or J.D., Defendant’s employee. In truth,

however, these entities held assets in which Defendant had an ownership interest

and over which Defendant exercised control. It was a further part of the scheme

that Defendant would fabricate fraudulent invoices from one of these entities,

Neuro Logical, LLC, and direct her attorney to provide these invoices to the

bankruptcy trustee in order to conceal her true relationship with that entity.

6. It was a further part of the scheme that Defendant would falsify a profit

and loss statement from Alpine Spine Center, PC, an entity which she controlled, in

order to defraud and mislead the trustee regarding the amount of cash that entity

had on hand at the time she filed her bankruptcy petition.

Execution of the Scheme

7. On or about August 25, 2014, in the State and District of Colorado, for

the purpose of executing and concealing (and attempting to execute and conceal) the

above-described scheme and artifice to defraud, Defendant filed a petition under

Title 11, chapter 7, United States Code, in the U.S. Bankruptcy Court for the

District of Colorado. All of the foregoing was in violation of 18 U.S.C. § 157(1).

Count 2: Concealment of Bankruptcy Assets

8. Beginning on or about August 25, 2014, and continuing until January 5,

2015, in the State and District of Colorado, Defendant, Cathleen Van Buskirk, being

the debtor in bankruptcy case no. 14-21678-MER, did knowingly and fraudulently

conceal from the trustee charged with control of the debtor’s property, the creditors,

and the United States Trustee, certain property belonging to the bankruptcy estate.

Specifically, Defendant concealed the following property by giving it to A.L. shortly

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before Defendant filed for bankruptcy and then failing to report the property during

the bankruptcy proceeding:

• $46,000 in U.S. currency;

• 200 U.S. silver dollars;

• foreign currency from the United Kingdom, European Union, and Belize;

• twenty British gold coins;

• twenty Swiss gold coins; and

• one diamond ring.

All of the foregoing was in violation of 18 U.S.C. § 152(1).

Counts 3 & 4: Fraudulent Transfer and Concealment

Count 3

9. On or about February 14, 2014, in the State and District of Colorado,

Defendant, Cathleen Van Buskirk, in contemplation of filing her own bankruptcy

case under Title 11, United States Code, and with the intent to defeat the provisions

of said title, did knowingly and fraudulently transfer and conceal her property by

negotiating to Multiple Ventures, LLC, a check for $170,000 that was originally

payable to Defendant. All of the foregoing was in violation of 18 U.S.C. § 152(7).

Count 4

10. On or about February 24 through 26, 2014, in the State and District of

Colorado, Defendant, in contemplation of filing her own bankruptcy case under Title

11, United States Code, and with the intent to defeat the provisions of said title, did

willfully cause another to knowingly and fraudulently transfer and conceal

Defendant’s property by loaning to Fetter Logic, Inc., $170,000 that was held by

Multiple Ventures, LLC, but which was, in truth, Defendant’s money. All of the

foregoing was in violation of 18 U.S.C. §§ 2(b) and 152(7).

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Counts 5 & 6: Money Laundering

Count 5

11. On or about June 3, 2015, in the State and District of Colorado,

Defendant, Cathleen Van Buskirk, willfully caused another to conduct and attempt

to conduct a financial transaction affecting interstate commerce, to wit, the

assignment of a promissory note from Multiple Ventures, LLC (a Delaware limited

liability company), to Golden Vision, LLC (a Delaware limited liability company),

concerning funds owed by Fetter Logic, Inc. (a Colorado corporation). Such financial

transaction involved the proceeds of specified unlawful activity, that is, a fraudulent

transfer and concealment in violation of § 152, and Defendant knew that the

transaction was designed in whole and in part to conceal and disguise the nature,

location, source, ownership, and control of the proceeds of said specified unlawful

activity. All of the foregoing was in violation of §§ 2(b) and 1956(a)(1)(B)(i).

Count 6

12. On or about October 2, 2015, in the State and District of Colorado,

Defendant, Cathleen Van Buskirk, did willfully cause another to conduct and

attempt to conduct a financial transaction affecting interstate commerce, to wit, the

payment of funds from Golden Vision, LLC, to J.B. Such financial transaction

involved the proceeds of specified unlawful activity, that is, a fraudulent transfer

and concealment in violation of § 152, and Defendant knew that the transaction was

designed in whole and in part to conceal and disguise the nature, location, source,

ownership, and control of the proceeds of said specified unlawful activity. All of the

foregoing was in violation of §§ 2(b) and 1956(a)(1)(B)(i).

Notice of Forfeiture

13. Upon conviction of any of the violations alleged in Counts 2–4 of this

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Indictment, Defendant shall forfeit to the United States, pursuant to 18 U.S.C.

§ 981(a)(1)(C) and 28 U.S.C. § 2461(c), any property, real or personal, which

constitutes or is derived from proceeds Defendant obtained as the result of such

violation, including (but not limited to):

• the property provided to A.L. as stated in ¶¶ 2 and 8 above;

• the $170,000 that was loaned to Fetter Logic, Inc., plus any interest, fees,

penalties, or other funds receivable under the terms of the promissory note;

and

• a money judgment equal to the amount of proceeds obtained by Defendant.

14. Upon conviction of any of the violations alleged in Counts 5 and 6 of this

Indictment, Defendant shall forfeit to the United States, pursuant to 18 U.S.C.

§ 982(a)(1), any property, real or personal, involved in such offense, or any property

traceable to such property, including (but not limited to) a money judgment in the

amount of such property.

15. If any of the property described in the previous two paragraphs, as a

result of any act or omission of Defendant, cannot be located upon the exercise of

due diligence; has been transferred or sold to, or deposited with, a third party; has

been placed beyond the jurisdiction of the Court; has been substantially diminished

in value; or has been commingled with other property which cannot be divided

without difficulty; it is the intent of the United States, pursuant to Controlled

Substances Act § 413(p), 21 U.S.C. § 853(p), as appropriate, to seek forfeiture of any

other property of Defendant, up to the value of the forfeitable property described

above.

DATED this 4th day of December, 2017.

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A TRUE BILL

Ink signature on file in Clerk’s Office

Foreperson

Robert C. Troyer
U.S. Attorney

s/Daniel E. Burrows____________
Daniel E. Burrows
E-mail: daniel.burrows@usdoj.gov
Special Assistant U.S. Attorney

s/Pegeen D. Rhyne_____________
Pegeen D. Rhyne
U.S. Attorney’s Office
1801 California St.
Suite 1600
Denver, CO 80202
Telephone: (303) 454-0100
FAX: (303) 454-0409
E-mail: pegeen.rhyne@usdoj.gov
Assistant U.S. Attorney

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Case 1:17-cr-00448-WJM Document 1-1 Filed 12/04/17 USDC Colorado Page 1 of 1

DEFENDANT : CATHLEEN VAN BUSKIRK

YEAR OF BIRTH: 1963

ADDRESS: Erie, CO

COMPLAINT FILED? YES x NO

IF YES, PROVIDE MAGISTRATE CASE NUMBER:

HAS DEFENDANT BEEN ARRESTED ON COMPLAINT? YES x NO

OFFENSES: 18 U.S.C. § 157, Bankruptcy Fraud (Count 1)

18 U.S.C. § 152(1), Concealment of Bankruptcy Assets (Count 2)
18 U.S.C. § 152(7), Fraudulent Transfer and Concealment (Counts 3–4)
18 U.S.C. § 1956(a)(1), Money Laundering (Counts 5–6)

LOCATION OF OFFENSE: Boulder and other surrounding counties, Colorado

PENALTY: § 157: NMT 5 years imprisonment and/or $250,000 fine; NMT 3 years
supervised release; $100 special assessment
§ 152(1) & (7): NMT 5 years imprisonment and/or $250,000 fine; NMT
3 years supervised release; $100 special assessment
§ 1956(a)(1): NMT 20 years imprisonment and/or $500,000 fine; NMT 3
years supervised release; $100 special assessment

AGENT: Special Agent John Hause, FBI

AUTHORIZED BY: Daniel Burrows

Special Assistant U.S. Attorney

ESTIMATED TIME OF TRIAL:

five days or less

x over five days

other

THE GOVERNMENT will seek detention in this case.

OCDETF case: _____ Yes __x__ No