Case Document 327 Filed Page1 Of 50 UNITED STATES DISTRICT COURT . EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION UNITED STATES OF AMERICA, D-1 D-2 D-3 D-4 D-5 D-7 D-8 D-9 D-10 D-1 1 D-I 2 D-I3 D-14 D-15 D-16 Plaintiff, v. ALI ABDUL KARIM FARHAT a/k/a Allen Farhat, ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed" HASSAN ABDUL KARIM FARHAT, AKRAM ABDUL KARIM BERRO, JAMAL SAADALLAH BERRO, ABDUL HALIM BERRO BILAL EL-SABLANI, NOURA BERRO, SAMI AHMAD BERRO, ZEINAB BERRO, SADEK BERRO 11/k/a Sam Berro, AMIRA ALI FARHAT ABDUL KARIM AKRAM BERRO, HOUDA MOHAMAD BERRO, LINA REDA a/k/a LINA BERRO D-17 ALMIRE ALI-SADEK BERRO, D-18 NASSIB SAADALLAH BERRO, D-19 SALWA NASSIB BERRO Defendants. W., CRIMINAL No. 04-80370 HON. JOHN CORBETT VIOLATIONS: 18 U.s.c. 157: BANKRUPTCY FRAUD 18 U.s.c. 371: CONSPIRACY 18 U.s.c. 1001: FALSE STATEMENTS 18 U.s.c. 1341: MAIL FRAUD 18 U.s.c. 1344: BANK FRAUD 18 U.s.c. 1349: BANK FRAUD CONSPIRACY 18 U.s.c. 1956: MONEY LAUNDERING 18 U.s.c. 1957: MONEY LAUNDERING 18 U.s.c. 1962 RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS 18 U.s.c. 2: AIDING AKIEEJTTINCQ 235515 - 4? A SECOND SUPERSEDING INDICTMENT 7,2 _f uw "l P3 Case Document 327 Filed Page 2 of 50 THE GRAND JURY CHARGES: PART I: INTRODUCTION The Scheme 1. From in or about March 1999 through on or about April 2004, in the Eastcm District of Michigan, Southcm Division, and elsewhere, various defendants, together with others known and unknown to the grand jury, devised and intended to devise a scheme and artifice to defraud numerous banks, credit card companies, creditors, merchant service providers, mortgage lenders and bankruptcy trustees, and to obtain money and property by means of false and fraudulent pretenses, representations and promises ("thc scheme"). 2. To execute the scheme, many of the defendants processed or caused to be processed numerous credit card transactions at companies owned by the defendants as well as other establishments knowing and intending that the banks and credit card companies would not be paid for those transactions. In executing the scheme, these defendants employed a strategy to maximize the amount of cash and merchandise obtained from their credit cards. As pan of the scheme, some of the defendants declared bankruptcy so that creditors could not collect the amounts owed. Various defendants also used bank accounts of third parties, transferred title to property in sham transactions, including to wives and adult children, and laundered money to conceal assets from creditors and bankruptcy trustees. .2- Case Document 327 Filed Page 3 of 50 Plan And Purposes Of The Scheme 3. The plan and purpose ofthe scheme was for the defendants to "bust out" credit cards, as described in paragraphs eight through ten of this Count, and otherwise incur charges without payment and thereby obtain cash and merchandise; to evade collection efforts by creditors by declaring bankruptcy; to transfer and otherwise hide assets, property and the proceeds of their fraudulent activity from creditors and bankruptcy trustees. - Manner And Means 0fThe Scheme The manner and means by which the defendants sought to accomplish the plan and purposes ofthe scheme included, among others, the following: 4. The defendants possessed numerous credit cards and used various means to create the appearance of credit worthiness, such as inflating annual income on the credit card applications and submitting payments over a period of time in order to maintain good credit standing. 5. The defendants in some instances aided each other in making payments to establish or maintain the appearance of credit worthiness. In some such cases, credit card charges were processed at companies owned by the defendants and those defendants, receiving cash for the charges, would then make payments on the credit cards of the account holder. .3- Case Document 327 Filed Page 4 of 50 6. The defendants also made payments from proceeds of home refinancing loans, fraudulently obtained, to maintain the credit cards in good standing until the time of the bust out. 7. Although the defendants would sometimes charge credit cards to or above the maximum limit and leave the balances unpaid, typically, the defendants employed a strategy to maximize the amount of free merchandise or cash obtainable from credit cards. 8. That strategy - sometimes referred to as a "bust out"-- began with charging the credit card to or near the credit limit. Once the balance on the credit card was at its limit, the defendants knowingly submitted a bogus payment- a worthless check, electronic or other form of payment - to the credit card company which appeared to significantly reduce or eliminate the amount owing on the card balance, thereby fraudulently inflating the credit available on the card. 9. The defendants used the United States mail or commercial carriers when they sent non-sufficient funds checks falsely representing payments on credit cards to the credit issuing companies. 10. Before the credit card company became aware of the worthless nature ofthe payment, the defendants and others made charges and aided one another in making charges at companies owned by the defendants and other establishments, usually up to or over the limit ofthe fraudulently inflated balance, knowing the credit card holder would -4.. Case Document 327 Filed Page 5 of 50 never pay for these charges. In this way, the defendants succeeded in obtaining cash and merchandise worth twice the credit limit of the credit card. i 11. The defendants repeatedly used their credit cards at businesses owned by other defendants. When charges were processed at companies owned by the defendants, the defendants usually received either cash, rather than merchandise as in a legitimate credit card transaction with a merchant, or merchandise that they would then sell at significant profit and no cost since no payment was made to the credit card company for the purchase. 12. When charges were processed at companies owned by the defendants, the credit card company would transfer funds to those companies, usually through a merchant service provider, in the amount ofthe charges to the credit cards. In retum for processing the bogus charges at their companies, the defendant company owners would keep a portion of the money fraudulently obtained from the credit card companies. 13. The bogus payments made by the defendants on the credit cards were ultimately declined for insufficient funds and the defendants made no further payments on the credit cards. 14. The defendants then took deliberate steps to evade collection efforts by declaring bankruptcy so that creditors could not attach assets or otherwise collect on the amounts owed to them. In addition, the defendants concealed and transferred assets, and aided one another in concealing and transferring assets, in contemplation of bankruptcy -5- Case Document 327 Filed Page 6 of 50 so creditors could not attach those assets. For the same reasons, the defendants concealed the extent of their assets, property and the proceeds of fraudulent activity in their bankruptcy proceedings. As a result, their creditors suffered significant losses from unpaid and uncolleetible debts. PART II: GENERAL ALLEGATION At all times pertinent to this Indictment: 15. ALI FARHAT owned and operated Sigma Distribution Inc. (hereinafter a Michigan corporation, located in Dearbom, Michigan, which was a distributor of fragrances and cosmetics. 16. ABDULAMIR BERRO owned or operated Byblous Distribution Investment, Inc. (hereinafter a Michigan corporation, located in Dearbom, Michigan, which also operated under the names Wholesale," and "Budget Tele-Com," and was a cigarette wholesale business. 17. At various times, businesses closely associated with BDI were created. They included.Berro Enterprises, Smoker City Stop Inc. and Tobacco Outlet Stop Inc. 18. At various times, SIGMA and BDI had arrangements with merchant service providers who provided SIGMA and BDI with the capability of accepting credit cards and who transmitted funds via wire transfer from bank accounts outside the State of -5- Case Document 327 Filed Page 7 of 50 Michigan to bank accounts of SIGMA and BDI located in Michigan on behalf ofthe 5 . credit card issuers for credit card transactions processed at SIGMA and BDI. 19. Advanta Bank Corp., Associated Bank, Associates National Bank, Bank of America, Bank One, Capital One Bank, Chase Bank, Citibank, Columbus Bank and Trust, Direct Merchants Bank, Discover Bank, First USA Bank, N.A., Fleet Boston Financial Corp., The Huntington National Bank, Household Bank, Household Credit Services, N.A., JP Morgan Chase Bank, MBNA America Bank, National City Bank, People's State Bank, Retai1er's National Bank, Southport Bank, Standard Federal Bank, Wachovia Bank, N.A., and World Savings Bank are all financial institutions as defined by Title 31, United States Code, Section S312(a)(2), whose deposits are insured by the Federal Deposit Insurance Corporation. I 20. ABN AMRO Mortgage Group, Inc. is an affiliate of Standard Federal Bank. 21. All dates in this indictment are alleged to be "on or about" the specific date stated. -7- Case Document 327 Filed Page 8 of 50 PART RACKETEERING CONSPIRACY ONE (18 u.s.c. 1962(d) RACKETEERING CONSPIRACY) D-I ALI ABDUL KARIM FARHAT a/k/a Allen Farhat, D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed," D-12 SADEK BERRO a/k/a Sam Berro 1. Paragraphs through 111 ofthe Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. THE ENTERPRISE 2. Defendants ALI FARHAT, ABDULAMIR BERRO, SADEK BERRO, and the legal entities SIGMA and BDI, and others known and unknown to the grand jury, constituted an enterprise as that term is defined in Title 18, United States Code, Section 196l(4), namely, a group of individuals and legal entities associated in fact, which - engaged in and the activities of which affected interstate commerce. The enterprise constituted an ongoing organization whose members functioned as a continuing unit for a common purpose of achieving the objectives of the enterprise. -3- Case Document 327 Filed Page 9 of 50 OF THE The purposes of the enterprise included the following: defrauding banks, merchant service providers and credit card issuers through fraudulent schemes in order to obtain money and property; receiving, holding and distributing money received during the course of and as a result of fraudulent schemes; disguising and concealing the defendants' interest in and control over the money; i concealing assets from creditors; enriching the members of the enterprise andothers, both in the United States and Lebanon. The roles of the defendants in enterprise were as follows: ALI FARHAT was the President and owner of SIGMA and a leader of the enterprise in his role as a collusive merchant for the defendants and others in the bust out of numerous credit cards. ALI FARI-IAT processed credit card transactions for defendants and others through SIGMA, which on paper appeared legitimate, but which, in fact, were not intended to be paid by the account holder. Relying on the integrity ofthe transaction at SIGMA, the credit company, through a merchant service provider, paid ALI FARHAT the amount of money (less a fee) that had been charged on the -9- Case 2: B. Document 327 Page1O of 50 credit card at SIGMA. ALI FARI-IAT retained a percentage of that money for himself and gave the rest to the account holder who had made the bogus charge. The victim credit card company was never paid for the charges at SIGMA. ALI FARHAT also solicited individuals and otherwise offered to process credit cards at SIGMA for cash, knowing that the charges would not be paid by the account holder. In addition, ALI instructed individuals on how to bust out credit cards, provided advice about detrauding credit card companies and other creditors, and assisted in concealing assets so creditors could not attach them for payment. ABDULAMIR BERRO was the brother-in-law of ALI FARI-IAT. ABDULAMIR BERRO was also the President and owner of BDI and its related companies and a leader in the enterprise in his role as a collusive merchant for defendants and others in the bust out of numerous credit cards. ABDULAMIR BERRO processed credit card transactions for defendants and others through BDI which on paper appeared legitimate, but which, in fact, were not intended to be paid bythe account holder. Relying on the integrity ofthe transaction at BDI and its related companies, the credit company, through a merchant service provider, paid ABDULAMIR BERRO the amount of money (less a fee) that had been charged on the .1O. Case Document 327 Filed Page 11 of 50 credit card at BDI and its related companies. ABDULAMIR BERRO retained a percentage of that money for himself and gave the rest to account holder who had made the bogus charge. In some instances, ABDULAMIR BERRO would provide merchandise to the account holder who would then resell the merchandise at significant profit and at no cost since the credit card charge would never be paid, In either case, the victim credit card company was never paid forthe charges at BDI. ABDULAMIR BERRO also solicited individuals and otherwise offered to process credit cards at BDI for cash, knowing that the charges would not be paid by the account holder. In addition, ABDULAMIR BERRO instructed individuals on how to bust out credit cards and provided advice about defrauding credit card companies and other creditors and assisted in concealing assets so creditors could not attach them for payment. SADEK BERRO was the brother of defendant ABDULAMIR BERRO and brother-in-law of defendant ALI FARHAT. Defendant SADEK BERRO was a close associate of both defendants ALI FARHAT and ABDULAMIR BERRO in the scheme. Defendant SADEK BERRO's responsibilities included, but were not limited to, making payments onthe credit cards of defendants in order to keep them in good standing before the time of the defendants' bust out. Defendant SADEK BERRO also used and caused -11_ Case Document 327 Filed 11/09/05 Page 12 of 50 credit cards of defendants and others to be used for the benefit of defendants ALI FARHAT and ABDULAMIR BERRO and their companies. Defendant SADEK BERRO also recruited defendants to bust out their cards at SIGMA and BDI. Further, he taught defendants how to bust out their credit cards and how to tile for bankruptcy in order to evade creditors and assisted in concealing assets so creditors could not attach them for payment. THE RAC KETEERINQ 5. From approximately March 1999 through approximately April 2004, in the Eastem District of Michigan, Southcm Division, and elsewhere, defendants ALI FARHAT, ABDULAMIR BERRO, and SADEK BERRO, being persons employed by and associated with the enterprise described above in paragraphs 2 through 4 of Count One, which enterprise was engaged in, andthe activities of which affected, interstate commerce, did knowingly and intentionally conspire and agree with each other and with persons known and unknown to the grand jury, to violate Title 18, United States Code, Section 1962(e), that is, to conduct and participate, directly and indirectly, in the conduct of the affairs ofthe enterprise, through a pattem of racketeering activity, as that term is defined in Title 18, United States Code, Sections l961(1) and (5). -12- Case Document 327 Filed Page 13 of 50 6. The pattem of racketeering activity consisted of multiple acts indictable under the following laws ofthe United States: A. Title 18, United States Code, Section 1344 (Bank Fraud); B. Title 18, United States Code, Section 1343 (Wire Fraud); C. Title 18, United States Code, Section 1956 (Money Laundering); Title 18, United States Code, Section 1957 (Money Laundering). 7. It was part of the conspiracy that each defendant agreed that a conspirator would commit at least two acts of racketeering activity in the conduct of the affairs of the enterprise. MANNER AND MEANS QF THE 8. Among the manner and means by which the defendants conducted and participated in the affairs of the enterprise, and accomplished and attempted to accomplish the objectives of the conspiracy, were the following: THE 9. The defendants devised and intended to devise the scheme as set forth in paragraphs 1 through 14 ofthe Introduction to this Indictment. I 10. Defendants ALI FARHAT, ABDULAMIR BERRO and SADEK BERRO together with others known and unknown to the grand jury processed and caused to be processed credit card transactions at SIGMA, BDI and other establishments and fraudulently obtained money and merchandise, including* tobacco inventory for defendant _13- Case Document 327 Filed Page 14 of 50 ABDULAMIR BERRO and BDI, through those credit card transactions, knowing that payment would not be made for the transactions. Defendants ALI FARHAT, ABDULAMIR BERRO and SADEK BERRO fraudulently caused funds to be deposited via wire transfers from bank accounts held by merchant service providers to bank accounts of SIGMA and BDI as reimbursement forthe credit card transactions occurring at SIGMA and BDI. Defendant ALI FARHAT caused fake invoices to be transmitted via facsimile to SIGMA's merchant service provider purporting to substantiate credit card transactions that had been processed at SIGMA. Defendants ALI FARHAT, ABDULAMIR BERRO and SADEK fraudulent concealed and assisted others known and unknown to the grand jury in concealing assets and funds from creditors and bankruptcy trustees and conducted financial transactions designed to conceal the nature and source of the proceeds of their fraudulent activity. A 1 1. Defendants ABDULAMIR BERRO and SADEK BERRO, together with Zeinab Berro (not named as a defendant in this Count) made or caused to be made charges at BDI and other establishments on credit cards of defendant SADEK BERRO and his wife, Zeinab Berro, and fraudulently obtained money and merchandise, including tobacco inventory for defendant ABDULAMIR BERRO and BDI, through these credit card transactions, knowing that defendant SADEK BERRO and Zeinab Berro did not intend to make payments for those transactions. .14- Case Document 327 Filed Page 15 of 50 12. Defendants ALI FARHAT and ABDULAMIR BERRO assisted defendant I SADEK BERRO in concealing his true ownership of property and of funds in contemplation of the tiling by SADEK BEKRO and Zeinab Berro of bankruptcy and in order to avoid any application of assets and funds to offset his and Zeinab Berro's debts to creditors in bankruptcy. 13. Defendants ALI FARHAT, ABDULAMIR BERRO, together with Akram Berro and Jamal Berro (not named as defendants in this Count) made or caused to be made charges at SIGMA, BDI and other establishments on credit cards in the names of Akram Berro and his wife, Jamal Berro, and fraudulently obtained money and merchandise, including tobacco inventory for defendant ABDULAMIR BERRO and BDI, through these credit card transactions, knowing that Akram Berro and Jamal Berro did not intend to make payments for those transactions. 14. Defendant ABDULAMIR BERRO assisted Akram l3erro and Jamal Berro in concealing their interest in the residence at 7510 Appoline, Dearbom, through the selling of that property to their son, Abdul Karim Berro (not named as a defendant in this Count), and then laundered the $128,000 Akram and Jamal Berro received in that sale in order to conceal their true ownership of those funds. -15- Case Document 327 Filed Page 16 of 50 15. Defendant ALI FARI-IAT assisted Akram Bcrro and Jamal Bcrro in 'fraudulently concealing their true ownership in the property at 25800 Labana Woods, Taylor, through the purchase of that property with his wife, Amira Farhat (not named as a defendant in this Count), who acted as a nominee buyer. 16. At the direction of ALI FARHAT, Hassan Farhat (not named as a defendant in this Count), the brother of defendant ALI FARHAT and an employee at SIGMA, processed fraudulent credit card transactions at SIGMA for cash. 17. Defendants ALI FARHAT, ABDULAMIR BERRO, SADEK BERRO, together with Sami Bcrro and his wife, Noura Bcrro (not named as a defendant in this Count), made or caused to be made charges at SIGMA, BDI and other establishments on credit cards in the name of defendant NOURA BERRO, and fraudulently obtained money and merchandise through these credit card transactions, knowing that defendant NOURA BERRO did not intend to make payments for those transactions. 18. Defendant SADEK BERRO assisted Noura Bcrro in her bankruptcy tiling and proceedings in the United States Bankruptcy Court for the Eastem District of Michigan, Southem Division, which Noura Berro initiated so that credit card companies and other creditors could not collect payment. 19. With defendant ALI FARHAT's approval, Sami Bcrro (not named as a defendant in this count) arranged for other individuals to process credit card transactions at SIGMA for cash. .15. Case Document 327 Filed tt/O9/O5 Page 17 of 50 20. Defendants ALI FARHAT, ABDULAMIR BERRO, SADEK BERRO, together' with Nassib Berro (not named as a defendant in this Count) and his wife, Salwa Berro (not named as a defendant in this count) made or caused to be made charges at SIGMA, BDI and other establishments on credit cards inthe name of Salwa Berro and fraudulently obtained money and merchandise through those credit card transactions, knowing that Salwa Berro did not intend to make payments for those transactions. 21. Defendant SADEK BERRO assisted Nassib Berro and Salwa Berro in their bankruptcy filing and proceedings in the United States Bankruptcy Court forthe Eastem District of Michigan, Southem Division, which Nassib Berro and Salwa Berro initiated so that credit card companies and other creditors could not collect payment 22. Defendant ABDULAMIR BERRO and Abdul Halim Berro (not named as a defendant in this Count) made or caused to be made charges at BDI and other establishments on credit cards in the name of Abdul Halim Berro and fraudulently obtained money and merchandise through these credit carditransactions, knowing that defendant Abdul I-Ialim Berro did not intend to make payments for those transactions. 23. Defendants ALI FARHAT, ABDULAMIR BERRO, SADEK BERRO and Bilal El-Siblani (not named as a defendant in this Count) made or caused to be made charges at BDI and other establishments on credit cards in the name of Bilal El-Siblani and fraudulently obtained money and merchandise through these credit card transactions, Case Document 327 Filed Page 18 of 50 knowing that Bilal El-Siblani did not intend to make payments for those transactions 24. Defendant SADEK BERRO assisted Bilal El-Siblani in this fraudulent activity by making payments on credit cards held by Bilal El-Siblam 25. All in violation of Title 18, United States Code, Section 1962(d) PART IV: BANK FRAUD AND BANKRUPTCY FRAUD COUNTS D-1 D-2 D-4 D-5 D-7 D-8 D-9 D-10 D-11 D-12 D-18 D-19 (Counts 2 through 34) COUNTS TWO THROUGH TWENTY-EIGHT (18 U.S.C. 1344, 2 - BANK FRAUD AIDING AND ABETTING) ALI ABDUL KARIM FARHAT a/k/a Allen Farhat, ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed", AKRAM ABDUL KARIM BERRO, JAMAL SAADALLAH BERRO, ABDUL HALIM BERRO BILAL EL-SABLANI, NOURA BERRO, . SAMI AHMAD BERRO, ZEINAB BERRO, SADEK BERRO a/k/a Sam Berro NASSIB BERRO SALWA BERRO 1. Paragraphs 1 through 14 ofthe Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count 2. From on or about March 1999 to on or about April 2004 in the Eastem -18- Case Document 327 Filed Page 19 of 50 District of Michigan, Southem Division, defendants ALI FARHAT, ABDULAMIR BERRO, AKRAM BERRO, JAMAL BERRO, ABDUL HALIM BERRO, BILAL EL- SABLANI, NOURA BERRO, SAMI AHMAD BERRO, ZEINAB BERRO, SADEK BERRO, NASSIB BEKRO and SALWA BERRO devised and executed, and aided and abetted each other and others known and unknown to the grand jury in devising and executing, a scheme to defraud financial institutions and to obtain credits, moneys and other property owned by, or in the custody or control of; federally insured financial institutions by means of materially false and fraudulent prctenses, representations and promises. i 3. The defendants devised and intended to devise the scheme as set forth in paragraphs 1 through 14 of the Introduction to this Indictment, to fraudulently obtain i money and property from financial institutions through credit card transactions knowing that no payment would be made for those transactions. 4. As part of the scheme, defendants used credit cards or caused others to use credit cards at BDI and SIGMA and at other establishments, with the assistance of ALI FARHAT, ABDULAMIR BERRO and SADEK BERRO, and then knowingly submitted or caused to be submitted non-sufficient funds checks and other forms of bogus payments to financial institutions falsely representing them as payments on credit card balances in order to defraud those financial institutions and to fraudulently obtain credit from them. -19- Case Document 327 Filed Page 20 of 50 5. Each ofthe following constitutes a separate count of this Indictment: Ct. Defendant Financial Credit Card Location of Date Amount of Institution Account Unpaid Insufficient Insufficient Number Charges Funds Posted Funds To Account Check As Credit Zeinab Peoples 5416-5100- At Martin 03/23/01 $9,800.00 Berro Bank 0479-6764 Snyder for BDI Zelnab Citibank 5424-1800- At Martin 04/05/01 $12,600.00 Berro 7964-4354 Snyder for BDI Sadek Berro Bank of 5414-4131- Cash 05/16/00 $6,500.00 America 0035-6637 Advances Sadek Berro Citibank 5410-6540- Cash 05/17/00 $7,000.00 4737-4118 Advances Sadek Berro Direct 5458-0040- 05/21/01 $800.00 Merchants 1912-6125 Bank 7 Noura Discover 6011-3003- 02/02/01 $6,000.00 Berro 2800-1654 Noura MBNA 5329-0005- 02/05/01 $4,000.00 Berro America 9480-8852 Noura First 44l8-0290- 02/05/01 $6,000.00 Berro National 0095-9319 Bank 10 Bllal Ei- MBNA 4264-290+ 02/08/01 $5,000.00 Sablani 5264-4073 11 Bilal El- Citibank 4128-0032- 02/08/01 $4,600.00 Sablanl 1308-2392 Bllal El- Peoples 4388-3201- 02/13/01 $7,500.00 Sablani Bank 0841-4208 Nasslb Huntington 5422-2830- Jewelry 07/16/99 $3,000.00 Berro National 1007-8567 Store 07/19/99 $2,700.00 Bank .20. Case Document 327 Filed Page 21 of 50 Nasslb Berro Salwa Berro Akram Berro Akram Berro Akram Berro Berro Jamal Berro Jamal Berro Jamal Berro Abdul Hallm Berro Abdul Hallm Berro Capltol One Dlrect Merchant Bank First USA Bank Natnonal Clty Bank sa The Edvance Card Platinum sa Associates National Bank Citibank Associates Gold Mastercard First National Bank of Omaha Discover ple's Bank 5291 0715 0899 8463 5458 0005 7900 2334 4085 6700 0076 8283 4311 9660 1406-2838 4305-5006 0202 7719 2684-2684 4018 0401 8064 4716 5418 8703 7023 4826 4418 0290 0118 1731 6011 0057 0062 0688 4017 3500 0215 7222 Mlscellan eous Locatlons Sigma Martin Snyder for BD Sigma Budget Telecom, Martin Snyder for BD Slgma, Martln Snyder for BD Snyder for BD Sigma Appliance Electrical Stores Sigma, BDI, Martin Snyder for BD Sam's Club elsewhere 07/16/99 07/23/99 11/21/01 12/20/01 12/27/01 12/27/01 12/21/01 12/21/01 12/21/01 06/16/02 06/24/02 $500 00 $450 $3,000 ,soo oo . . Akram Citibank 5424-1805- Martin 12/27/01 $4,000.00 I . . .2 1. Case Document 327 Filed Page 22 of 50 Abdul I'eople's 5466-7470- 06/24/02 $5,450.00 I-Ialim Berro Bank 0152-5635 Abdul Citibank 4128-0039- 06/12/02 $8,550.00 Hallm Berro 8457-1953 27 Abdul National 4311-9660- 06/23/02 $6,750.00 Halim Berro City 1300- 3130/4311- 9660-1739- 5268 Abdul Capital 5397-0020- 06/23/02 $9,750.00 Hallm Berro One-Kmart 6550-7218 D-4 D-5 D-7 D-8 D-9 D-11 D-12 D-18 D-19 6. All in violation of Title 18, United States Code, Sections 1344 and 2. COUNTS TWENTY-NINE THROUGH THIRTY-FOUR (18 U.S.C. 157(1), 2 - BANKRUPTCY FRAUD, AIDING AND ABETTING) AKRAM ABDUL KARIM BERRO, JAMAL SAADALLAH BERRO, ABDUL HALIM BERRO, BILAL EL-SABLANI, NOURA BERRO, ZEINAB BERRO, SADEK BERRO a/k/a Sam Berro, NASSIB BERRO SALWA BERRO 1. Paragraphs 1 through 14 ofthe Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. .22- Case Document 327 Filed Page 23 of 50 2. From approximately March 1999 to April 2004, in the Eastem District of Michigan, Southcm Division and elsewhere, defendants, AKRAM BERRO, JAMAL BERRO, ABDUL HALIM BERRO, BILAL EL-SABLANI, NOURA BERRO, ZEINAB BERRO, SADEK BERRO, NASSIB BERRO and SALWA BERRO knowingly devised and executed, and aided and abetted each other and others known and unknown to the grand jury, in devising and executing, a scheme and attitice to defraud numerous issuers of credit cards as set forth in paragraphs 1 through 14 of the Introduction to this Indictment, hereby incorporated into this count. 3. In order to execute the scheme and artitice to defraud creditors and in order to evade collection efforts by those creditors for their credit card debts, defendants, AKRAM BERRO, JAMAL BERRO, ABDUL HALIM BERRO, BILAL EL-SABLANI, NOURA BERRO, ZEINAB BERRO, SADEK BERRO, NASSIB BERRO and SALWA BERRO on the dates noted below, signed and filed in United States Bankruptcy Court for the Eastem District of Michigan petitions under Title 11 ofthe United States Code, the Bankruptcy Code, claiming the approximate amounts noted below in debt, including credit card debt. Each tiling noted below constitutes a separate count of this Indictment. Ct, Defendant Date of Total Number of Approximate Claimed Bankruptcy Bankruptcy Credit Amount of Assets Petition Amount Cards on Credit Card Filing Bankruptcy Debt Petition Zeinab Berro 08/29/01 $554,878.34 37 $280,000.00 $208,700.00 Sadek Berro 09/19/01 $124,549.11 $98,199.00 $2,500.00 -23.. Case Document 327 Filed Page 24 of 50 31 Bllal El- 12/18/01 $489,174.25 23 $240,000.00 $22,300.00 Sablani 32 Nassib Berro 04/25/02 $468,301.09 71 $430,000.00 $5,350.00 Salwa Berro 33 Akram Berro 05/23/02 $521,657.09 76 $440,000.00 $8,676.00 Jamal Berro Abdul Halim 02/11/03 $421,120.00 $325,000.00 $1,000.00 34 Berro 4. All in violation of Title 18 United States Code, Sections 157(1) and 2. PART V: THE SADEK BERRO AND ZEINAB BERRO FRAUD ACTIVITY AND MONEY LAUNDERING (Counts 35 through 36) COUNT (18 U.S.C. 371 - CONSPIRACY) D-1 ALI ABDUL KARIM FARHAT a/k/a Allen Farhat, D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/lc/a "Abed," D-11 ZEINAB BERRO, D-12 SADEK BERRO a/k/a Sam Berro . 1. Paragraphs 1 through 14 of the Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. _24_ Case Document 327 Filed Page 25 of 50 2. Between May 2000 and September 2001, in the Eastem District of Michigan, Southem Division, defendants ALI FARHAT, ABDULAMIR BERRO, SADEK BERRO and ZEINAB BERRO did knowingly combine, conspire and agree with each other and persons known and unknown to the grand jury: A. to violate Title 18, United States Code, Section 1344 (Bank Fraud), by knowingly executing and attempting to execute a scheme and artifiee to defraud financial institutions, as set forth in paragraphs through 14 ofthe Introduction to this Indictment and to obtain money, funds, or other property owned by, or in the custody or control of, federally insured financial institutions by means of materially false and fraudulent pretcnses, representations and promises; B. to violate Title 18, United States Code, Section 1341 (Mail Fraud by knowingly placing and causing to be placed in an authorized depository for mail, for delivery by the United States Postal Service and private or commercial interstate mail carriers, non-sufficient funds checks representing payments on credit cards, for the purpose of executing and in i furtherance of the scheme and artifice to defraud, as set forth in paragraphs through 14 of the Introduction to this Indictment, and to obtain money or property by means of materially false and fraudulent pretenses, representations and promises. -25. Case Document 327 Filed Page 26 of 50 OBJECTS OF THE CONSPIRACY 3. The defendants conspired and agreed with each other and others known and unknown to the grand jury a) to defraud financial institutions and other credit card issuers by busting out credit card accounts and otherwise incurring charges without making payments; b) to obtain cash and merchandise by using credit cards at BDI and other establishments for which payment was never made; c) to evade collection efforts by creditors by declaring bankruptcy; and d) to conceal assets and theprocecds of their fraudulent activity in order to evade creditors and avoid detection. QVERT AQTS In furtherance of the conspiracy and to accomplish its objects, on or about the dates set out below, one or more ofthe defendants perfomied and caused to be performed overt acts, including but not limited to the following, in the Eastern District of Michigan, Southem Division, and elsewhere: Citibank, account no. 5424-1800-7964-4354 4. On April 5, 2001, the defendants mailed or caused to be mailed non- sufficient funds check no. 392 in the amount of $12,600.00 as payment on the Citibank account of ZEINAB BERRO, account number 5424-1 SOO-7964-4354. -26_ Case Document 327 Filed Page 27 of 50 5. On April 16, 2001, defendants ABDULAMIR BERRO and SADEK IBERRO caused a transaction in the amount of $9,500 to be processed at Martin Snyder, a cigarette wholesaler, on ZEINAB BER.RO's Citibank account for the purchase of tobacco products for ABDULAMIR BERRO's business, BDI. Purchase of 7749 West Morrovv, Dearborn 6. From June 15, 2001 through August 31, 2001, defendant SADEK BERRO, with the assistance of defendants ALI FARHAT and ABDULAMIR BERRO, participated in a transaction to purchase a residence located at 7749 West Morrow, Dearbom, Michigan in the name of defendant SADEK BERRO's son, Almire Bcrro (not named as a defendant in this Count). 7. On June 14, 2001, defendant ALI FARHAT, at defendant SADEK BERRO's request, provided $12,399 as part ofthe down payment for the property as a "gift" on June 14, 2001. 8. On June 14, 2001, defendant ABDULAMIR BERRO provided $27,400 as part ofthe down payment as a "gift" on June 14,_2001. Defendant SADEK BERRO had previously deposited that approximate amount into a BDI account held by ABDULAMIR BERRO. -27. Case Document 327 Filed Page 28 of 50 Bankruptcy Filing 9. On August 29, 2001, defendants SADEK BERRO and ZEINAB BERRO jointly tiled or caused to be tiled a voluntary petition for bankruptcy, under Chapter 7 of Title 11, United States Code, in United States Bankruptcy Court for the Eastem District of Michigan, Southem Division. 10. Defendant SADEK BERRO failed to disclose in connection with their bankruptcy case that he had an interest in the real property located at 7749 West Morrow, Dearbom, Michigan. 11. All in violation of Title 18, United States Code, Sections 371. COUNT THIRTY-SIX (18 U.S.C. 1956(h) - CONSPIRACY TO LAUNDER MONEY) D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed" D-12 SADEK BERRO a/k/a Sam Berro 1. Paragraphs 1 through 14 ofthe Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. I 2. From March 31, 2001 to June 15, 2001, in the Eastem District of Michigan, Southem Division, defendants ABDULAMIR BERRO and SADEK BERRO did knowingly combine, conspire and agree with each other and persons known and unknown to the grand jury to conduct a financial transaction, knowing the funds involved were proceeds derived from some form of unlawful activity, and in fact involved proceeds of .2g. Case Document 327 Filedtt/O9/O5 Page 29 of 50 bankruptcy fraud, 18 U.S.C. 152, a specified unlawful activity within the meaning of ;I`itle 18, United States Code, Section 1956(c)(7), knowing that the transaction was designed, in whole or part, to conceal and disguise the nature, the location, the source, the ownership, and the control of the proceeds of the above specified unlawful activity. QVERT .In furtherance ofthe conspiracy and to accomplish its objects, defendants ABDULAMIR BERRO and SADEK BERRO performed or caused to be performed the following overt actions, among others: 3. From March 31, 2001 through June 14, 2001, defendant ABDULAMIR BERRO deposited funds into BD1's Bank One account, number 362435504, in the fomi of checks made payable to defendant SADEK BERRO that had been issued by insurance companies. 1 4. On .Tune 15, 2001, defendant ABDULAMIR BERRO withdrew funds from BDI's Bank One account, number 362435504, in the form of an official check, number 262274629, in the amount of $27,400 and made payable to defendant ALMIRE BERRO, defendant SADEK BERRQ's son. 5. All in violation of Title 18, United States Code, Section 1956(h). .29- Case Document 327 Filed Page 30 of 50 PART VI: THE AKRAM BERRO AND JAMAL BERRO FRAUD ACTIVITY AND MONEY LAUNDERING (Counts 37 through 39) COUNT TI-IIRTY-SEVEN (18 U.S.C. 371 - CONSPIRACY) D-1 ALI ABDUL KARIM FARHAT a/k/a Allen Farhat, I D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed," D-4 AKRAM ABDUL KARIM BERRO, D-5 JAMAL SAADALLAH BERRO, D-12 SADEK BERRO a/k/a/ Sam Berro 1. Paragraphs 1 through 14 ofthe Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. 2. From December 2000 until November 2002, in the Eastem District of Michigan, Southem Division, defendants ALI FARHAT, ABDULAMIR BERRO, SADEK BERRO, AKRAM BERRO, and his wife, defendant JAMAL BERRO, did knowingly combine, conspire and agree with each other and persons known and unknown tothe grand jury: A. to violate Title 18, United States Code, Section 1344 (Bank Fraud), by knowingly executing and attempting to execute a scheme and artitice to defraud financial institutions, as set forth in paragraphs 1 through 14 of the Introduction to this Indictment and to obtain money, funds, or other property owned by, or in the custody or control of, federally insured 30- Case Document 327 Filed Page 31 of 50 financial institutions by means of materially false and fraudulent pretenses, representations and promises; ld. to violate Title 18, United States Code, Section 1341 (Mail Fraud) by knowingly placing and causing to be placed in an authorized depository for mail, for delivery by the United States Postal Service and private or commercial interstate mail carriers, non-sufficient funds checks representing payments on credit cards, for the purpose of executing and in furtherance of the scheme and to defraud, as set forth in paragraphs 1 through 14 ofthe Introduction to this Indictment, and to obtain money or property by means of materially false and fraudulent pretenses, representations and promises. OBJECTS OF THE CONSPIRACY 3. The defendants conspired and agreed with each other and others known and unknown to the grand jury a) to defraud financial institutions and other credit card issuers by busting out credit card accounts and otherwise incurring charges without making payments; b) to obtain cash and merchandise by using credit cards at SIGMA, BDI and other establishments for which payment was never made; c) to evade collection efforts by creditors by declaring bankruptcy; and d) to conceal assets and the proceeds of their fraudulent activity in order to evade creditors and avoid detection. _31_ Case Document 327 Filed Page 32 of 50 OVERT ACTS 4. In furtherance of the conspiracy and to accomplish its objects, on or about the dates set out below, one or more of the defendants performed and caused to be performed overt acts, including but not limited to the following, in the Eastem District of Michigan and elsewhere: 5 In a telephone conversation on September 8, 2001, defendant AKRAM BERRO asked defendant ABDULAMIR BERRO to process a credit card transaction for $2,000 cash for defendant AKRAM BERRO to bring to Lebanon. First USA Bank, account no. 4085-6700-0076-8283 6. On November 17, 2001, a credit card transaction on the First USA Bank credit card of defendant AKRAM BERRO was processed at Martin Snyder on the account and forthe benefit of VBDI. 7. On December 20, 2001 defendant AKRAM BERRO made or caused a payment to be made by non-sufficient funds check 2023 to First USA Bank in the amount of $8,000 falsely representing it as payment on the account. 8. On December 21, 2001, a credit card transaction on defendant AKRAM BERRO's First USA Bank credit card in the amount of $6,940 was processed at defendant ALI company, SIGMA. -32- Case Document 327 Filed Page 33 of 50 Citibank Associates National Bank, account no. 4018-0401-8064-4716 9. On December 20, 2000, a credit card transaction was processed at BDI in the amount of $4,700 on the Citibank Associates National Bank credit card of JAMAL BERRO, account number 4018-0401-8064-4716. I 10. Between March 7, 2001 and September 22, 2001 ABDULAMIR BERRO mailed and caused to be mailed to Citibank Associates checks representing payments on JAMAL BERRO's Citibank credit card account. 11. On December 21, 2001, JAMAL SAADALLAH BERRO mailed and caused to be mailed a non-sufficient funds checkin the amount of $3,000 falsely representing it as payment onthe account. 12. On December 22, 2001, a credit card charge in the amount of $2,800 was processed at SIGMA, ALI FARHAT's company. 7510 Appoline, Dearborn, Michigan 13. On February 15, 2002, defendants AKRAM BERRO and JAMAL BERRO transferred title to their residence at 7510 Appoline, Dearbom, Michigan, to their son, Abdul Karim Berro (not named a defendant in this Count) in a sale ofthe property to him 14. In his mortgage loan application, Abdul Karim Berro falsely represented that he eamed $3,900 from BDI, defendant ABDULAMIR BERRO's company. 15. At the time of the "sale" of the 7510 Appoline residence to their son, -33. Case Document 327 Filed it/O9/O5 Page 34 of 50 defendants AKRAM BERRO and JAMAL BERRO failed to disclose in closing affidavits and elsewhere that there was a lien on that residence held by ABN AMRO Mortage Group, Inc. 16. On February 15, 2002, defendants AKRAM BERRO and JAMAL BERRO received $128,094 in a cheek issued bythe Title Company of Michigan. 17. On the same date, February 15, 2002, defendants AKRAM BERRO and JAMAL BERRO caused a certified check to issue to ABDULAMIR BERRO's company, Berro Enterprises, in the amount of $128, 089.37. Bankruptcy Filing 18. On May 23, 2002, defendants AKRAM BERRO and JAMAL BERRO jointly filed or caused to be tiled a voluntary petition for bankruptcy, under Chapter 7 of Title 11, United States Code, in United States Bankruptcy Court forthe Eastem District of Michigan, Southem Division. I 19. Defendants AKRAM BERRO and JAMAL BERRO failed to disclose in connection bankruptcy case that they had received $128,000 in proceeds from the sale of their residence at 7510 Appoline, Dearbom, Michigan in April 2002. 20. From October 2002 through November 2002, while the bankruptcy petition of defendants AKRAM BERRO and JAMAL BERRO was pending, defendant ALI FARHAT participated and assisted in the purchase of property located at 25800 Labana Woods, Taylor, Michigan, in which the wife of ALI FARHAT, AMIRA ALI FARHAT, .34- Case Document 327 Filed Page 35 of 50 was a nominee buyer and fraudulently concealed that defendants AKRAM BERRO and JAMAL BERRO were the true owners of the property. 21. All in violation of Title 18, United States Code, Sections 371. COUNT THIRTY-EIGHT (18 U.S.C. 1956(h)- CONSPIRACY TO LAUNDER MONEY) D-2 ABDULAMIR BERRO a/k/a Abe Berrq, a/k/a "Abed" D-4 AKRAM ABDUL KARIM BERRO D-5 AMAL SAADALLAH BERRO 1. Paragraphs 1 through 14 ofthe Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. 2. From February 15, 2002 to May 14, 2002, in the Eastem District of Michigan, Southcm Division, defendants ABDULAMIR BERRO, AKRAM BERRO and JAMAL BERRO did knowingly combine, conspire and agree with each other and persons known and unknown to the grand jury to conduct a financial transaction, knowing the funds involved were proceeds derived from some fonn of unlawful activity, and which in fact involved proceeds of bank fraud, a specified unlawful activity within the meaning of Title 18, United States Code, Section 1956 with the intent to promote specified unlawful activities, namely bank fraud (18 U.S.C. 1344) and bankruptcy fraud (18 U.S.C. 152) and knowing that the transaction was designed, in whole or part, to conceal and disguise the nature, the location, the source, the ownership, and the control ofthe proceeds of the specified unlawful activity. -35- Case Document 327 Filed Page 36 of 50 OVERT ACTS In furtherance of the conspiracy and to accomplish its objects, defendants ABDULAMIR BERRO, AKRAM BERRO and JAMAL BERRO performed or caused to be performed the following overt actions, among others: 3. On February 15, 2002, AKRAM BERRO and JAMAL BERRO used proceeds of a bank fraud associated with their sale of 7510 Appoline, Dearbom, Michigan to purchase an official cheek, number 0052703, in the amount of $128,089.37 at Fifth Third Bank payable to Berro Enterprises, representing proceeds of bank fraud. 4. On February 15, 2002, ABDULAMIR BERRO deposited that official check into the Bank One account, number l7500l96582l, of Berro Enterprises. 5. On February 21, 2002, ABDULAMIR BERRO withdrew funds from the Berro Enterprise Bank One account in the form of an official check in the amount of A $84,000 made payable to Metropolitan Title forthe purchase of 22640 Kelly Road and 18700 Nine Mile Road, Eastpointe, Michigan. 6. On February 28, 2002, ABDULAMIR BERRO transferred $70,000 from the Berro Enterprises Bank One account to Berro Enterprises Fifth Third account. 7. From February 28, 2002 through May 7, 2002, defendant ABDULAMIR BERRO and AKRAM ABDUL KARIM BERRO engaged in a number of financial transactions whereby ABDULAMIR BERRO withdrew from the Berro Enterprises Fifth _35- Case Document 327 Filed Page 37 of 50 Third account approximately $48,000 in the form of checks made payable to AKRAM ABDUL KARIM BERRO. 8. From May 10, 2002 to May 14, 2002, ABDULAMIR BERRO withdrew funds from the Berro Enterprises Fifth Third account in the form of cheeks for expenses associated with establishing a business, A Oil, for and on behalf of AKRAM ABDUL KARIM BERRO. 9. All in violation of Title 18, United States Code, Section 1956(h). COUNT THIRTY-NINE (18 U.S.C. 1349- CONSPIRACY TO COMMIT BANK FRAUD) D-1 ALI ABDUL KARIM FARHAT a/k/a Allen Farhat, D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed," D-4 AKRAM ABDUL KARIM BERRO, D-5 JAMAL SAADALLAH BERRO, D-13 AMIRA ALI FARHAT 1. Paragraphs 1 through 14 ofthe Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. 2. From approximately October 2002 to March 8, 2005, in the Eastem District of Michigan, Southem Division and elsewhere, defendants ALI FARHAT, ABDULAMIR BERRO, AKRAM BERRO, JAMAL BERRO, and AMIRA ALI FARHAT, did knowingly combine, conspire and agree with each other and persons known and unknown to violate Title 18, United States Code, Section 1344, Bank Fraud, _37- Case Document 327 Filed Page 38 of 50 by knowingly executing and attempting to execute a scheme and artifice to obtain money, funds, or other property owned by, or in the custody or control of, federally insured financial institutions by means of materially false and fraudulent prctenses, representations and promises. OVERT Ag In furtherance ofthe conspiracy and to accomplish its objects defendants ALI FARI-IAT, ABDULAMIR BERRO, AKRAM BERRO, JAMAL BERRO, and AMIRA FARHAT performed or caused to be perfommed the following overt actions, among others: I 3. On October 14, 2002, defendant AMIRA FARHAT made false representations in a mortgage loan application for the purchase of 25800 Labana Woods, Taylor, regarding her use of that property as her primary residence, when, in fact, she was acting as a nominee buyer for defendants AKRAM BERRO and JAMAL BERRO. 4. In October 2002, defendant AKRAM BERRO participated in the negotiations for the purchase of the residence located at 25 800 Labana Woods, Taylor, Michigan. 5. On or about November 7, 2002, defendant ABDULAMIR BERRO caused official checks to issue made payable to defendant AMIRA FARHAT for a total approximate amount of $23,000 for the purchase of the property. 6. On November 12, 2002, World Savings Bank issued a mortgage loan for .3 8. Case Document 327 Filed Page 39 of 50 $197,250 to defendants AMIRA FARHAT and ALI FARI-IAT based on information in the loan application, including false information relating to defendant AMIRA FARHAT's employment at and income from SIGMA. 7. All in violation of Title 18, United States Code, Section 1349. PART VII: THE HASSAN FARHAT FRAUD ACTIVITY COUNT FORTY (18 U.S.C. 371 - CONSPIRACY) D-1 ALI ABDUL KARIM FARHAT a/k/a Allen Farhat, D-3 HASSAN ABDUL KARIM FARHAT 1. Paragraphs 1 through 14 ofthe Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. 2. From January 17, 2001, until January 2004, inthe Eastem District of Michigan, Southcm Division, defendants ALI FARHAT and HASSAN did knowingly combine, conspire and agree with each other and persons known and unknown to the grand jury: A. to violate Title 18, United States Code, Section 1344 (Bank Fraud), by knowingly executing and attempting to execute a scheme and to defraud financial institutions, as set forth in paragraphs 1 through 14 of the Introduction to this Indictment and to obtain money, funds, or other property -39_ Case Document 327 Filed it/O9/O5 Page 40 of 50 owned by, or in the custody or control of] federally insured financial institutions by means of materially false and fraudulent pretenses, representations and promises; B. to violate Title 18, United States Code, Section 1343 (Wire Fraud) by knowingly executing and attempting to execute a scheme to defraud, as set forth in paragraphs through 14 ofthe Introduction to this Indictment, and to obtain money or property by means of materially false and fraudulent representations, and for the purposes of executing the scheme, causing the interstate wire transmission of writings, signs, signals and sounds. OBJECTS OF THE CONSPIRACY 3. The defendants conspired and agreed with each other and others known and unknown to the grand jury to defraud financial institutions and other credit card issuers by processing fraudulent credit card transactions; and to conceal the fraudulent transactions. i OVERT ACTS 4. In furtherance of the conspiracy and to accomplish its objects, on or about the dates set out below, one or more ofthe defendants performed and caused to be performed overt acts, including but not limited to the following, in the Eastem District of Michigan and elsewhere: -40- Case Document 327 Filed Page 41 of 50 5. On February 4, 2002, a false invoice was created showing purchases of 'fragrance products totaling $7,450 by Hussein Bcrro at SIGMA, and listing the as The invoice was created to make fraudulent credit card transactions appear to be legitimate. A 6. On September 27, 2002, ALI FARHAT, HASSAN FARHAT and another individual discussed processing a $5,000 charge on the American Express card of the card holder at SIGMA, without the knowledge of the card holder, to obtain cash to satisfy a debt owed by the card holder to ALI FARHAT. 7. On December 15, 2003, at the direction of ALI FARHAT, FARHAT caused a $250 transaction to be processed at SIGMA's perfume c_ounter at the Gibralter Trade Center on the Aspire Visa credit card of an individual known to the grand jury, kept $20, and gave S230 to the individual. 8. All in violation of Title 18, United States Code, Section 371. _41- Case Document 327 Filed Page 42 of 50 PART THE SAMI BERRO, NOURA BERRO AND LINA BERRO FRAUD ACTIVITY (Counts 41 and 42) COUNT FORTY-ONE (18 U.S.C. 371 - CONSPIRACY) D-1 ALI ABDUL KARIM FARHAT a/k/a Allen arhat, D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed," D-9 NOURA BERRO, D-10 SAMI AHMAD BERRO 1. Paragraphs 1 through 14 of the Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. 2. From August 1999 until October 2002, inthe Eastem District of Michigan, Southem Division, defendants ALI FARHAT, ABDULAMIR BERRO, NOURA BERRO and SAMI BERRO did knowingly combine, conspire and agree with each other and persons known and unknown to the grand jury: A. to violate Title 18, United States Code, Section 1344 (Bank Fraud), by knowingly executing and attempting to execute a scheme and artifice to defraud financial institutions, as set forth in paragraphs I through 14 ofthe Introduction to this Indictment and to obtain money, funds, or other property owned by, or in the custody or control of federally insured .42- Case Document 327 Filed Page 43 of 50 financial institutions by means of material false and fraudulent pretenses, representations and promises; B. to violate Title 18, United States Code, Section 1341 (Mail Fraud by knowingly placing and causing to be placed in an authorized depository for mail, for delivery by the United States Postal Service and private or commercial interstate mail carriers, non-sufficient funds checks representing payments on credit cards, for the purpose of executing and in furtherance ofthe scheme and artifice to defraud, as set forth in paragraphs 1 through 14 of the Introduction to this Indictment, and to obtain money or property by means of materially false andfraudulent pretenses, representations and promises. OBJECTS OF THE CONSPIRACY 3. The defendants conspired and agreed with each other and others known and unknown to the grand jury a) to defraud financial institutions and other credit card issuers by busting out credit card accounts and otherwise incurring charges Without making payments; b) to obtain cash and merchandise by using credit cards at SIGMA, BDI and other establishments for which payment was never made; c) to evade collection efforts by creditors by declaring bankruptcy; and d) to conceal assets and the proceeds of their fraudulent activity in order to evade creditors and avoid detection. .43- Case Document 327 Filed Page 44 of 50 OVERT In furtherance of the conspiracy and to effect its obj ects, the defendants, and others known and unknown to the grand jury, performed ovext acts, including, but not limited to the following: 4. In a telephone conversation on April 3, 2001, defendant SAMI BERRO requested that defendant ALI FARHAT process a credit card transaction on the American Express card of a third party for cash. First National Bank, account no. 4418-0290-0095-9319 5. On November 22, 1999,'a transaction in the amount of $2,950 was processed at BDI on NOURA BERRO's First National Bank credit card account, number 4418-0290-0095-9319. 6. On May 13, 2000, a Westem Union money order issued from the account of defendant SAMI BERRO in the amount of $294.00 was mailed to First National Bank as payment on the credit card. 7. On February 1, 2001, a transaction in the amount of $1 ,791 was processed at BDI on defendant NOURA BERRO's First National Bank credit card. 4 8. On February 5, 2001, defendant NOURA BERRO mailed or caused to be mailed non-sufficient fixnds check number 629 in the amount of $6,000 to First National Bank falsely representing it as payment on the account. .44- Case Document 327 Filed Page 45 of 50 Bankruptcy Filing 9. On September 19, 2001, NOURA BERRO tiled a voluntary petition for bankruptcy on September 19, 2001 under Chapter 7 of Title 11, United States Code, in United States Bankruptcy Court for the Eastem District of Michigan, Southem Division. 10. ln that bankruptcy petition, defendant NOURA BERRO stated that she held no interest in real property when, in fact, defendant NOURA BERRO had an interest in the real property located at 6479 Hartwell, Dearbom, Michigan. 11. On October 18, 2001, defendant SADEK BERRO drove defendant NOURA BERRO to the to attend a hearing on her bankruptcy filing. 12. On October 18, 2001, defendant SADEK BERRO attended the bankruptcy hearing of defendant NOURA BERRO before a U.S. Bankruptcy Trustee at the United States Bankruptcy Court for the Eastem District of Michigan, Southem Division. 13. All in violation of Title 18, United States Code, Sections 371. COUNT FORTY-TWO (18 U.S.C. 1001, 2 - FALSE STATEMENTS, AIDING AND ABETTING) D-10 SAMI AHMAD BERRO D-16 LINA REDA a/k/a/ LINA BERRO 1. On or about October ll, 2002, in the Eastem District of Michigan, Southem Division, defendants SAMI AHMAD BERRO and LINA REDA did knowingly and willfully make, and aid and abet in making, false, fictitious, and fraudulent materially -45- Case Document 327 Filed tt/O9/O5 Page 46 of 50 statements and representations in a matter within the jurisdiction of the United States Department of Housing and Urban Development, a department of the executive branch of the govemment ofthe United States, in that in a Uniform Residential Loan Application for a Federal Housing Administration-insured loan for the purchase of property located at 6479 Hartwell, Dearbom, Michigan, defendant LINA REDA a/k/a/ LINA BERRO stated that she eamed a income of $5,277.37 working at a Subway restaurant, 8001 Gratiot Avenue, Detroit, Michigan, knowing the same to be false. 2. All in violation of Title 18, United States Code, Sections 1001(a)(2) and 2. PART IX: THE NASSIB BERRO AND SALWA BERRO FRAUD ACTIVITY (Count 43) COUNT FORTY-THREE (18 U.S.C. 371 - CONSPIRACY) D-1 ALI ABDUL KARIM FARHAT a/k/a Allen Farhat, D-2 ABDULAMIR BERRO alkla Abe Berro, a/k/a "Abed," D-12 SADEK BERRO a/k/a Sam Berro D-18 NASSIB BERRO, D-19 SALWA BERRO, 4 l. Paragraphs 1 through 14 of the Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. 2. From June 1999 until April 2002, inthe Eastem District of Michigan, .45- Case Document 327 Filed Page 47 of 50 Southem Division, defendants ALI FARHAT, ABDULAMIRBERRO, SADEK BERRO, NASSIB BERRO and SALWA BERRO did knowingly combine, conspire and agree with each other and persons known and unknown to the grand jury: A. to violate Title 18, United States Code, Section 1344 (Bank Fraud), by knowingly executing and attempting to execute a scheme and artitice to defraud financial institutions, as set forth in paragraphs through 14 ofthe Introduction to this Indictment and to obtain money, funds, or other property owned by, or in the custody or control of, federally insured financial institutions by means of material false and fraudulent prctenses, representations and promises; B. to violate Title 18, United States Code, Section 1341 (Mail Fraud) by knowingly placing and causing to be placed in an authorized depository for mail, for delivery by the United States Postal Service and private or commercial interstate mail carriers, non-sufficient funds checks representing payments on credit cards, for the purpose of executing and in furtherance of the scheme and artifice to defraud, as set forth in paragraphs 1 through 14 of the Introduction to this Indictment, and to obtain money or property by means of materially false and fraudulent prctenses, representations and promises. -47. Case Document 327 Filed Page 48 of 50 OBJECTS OF THE CONSPIRACY 3. The defendants conspired and agreed with each other and others known and unknown to the grand jury a) to defraud financial institutions and other credit card issuers by busting out credit card accounts and otherwise incurring charges without making payment; b) to obtain cash and merchandise by using credit cards at BDI and other establishments for which payment was never made; c) to evade collection efforts by creditors by declaring bankruptcy; and d) to conceal assets and the proceeds of their fraudulent activity in order to evade creditors and avoid detection. QVERT In furtherance of the conspiracy and to effect its objects, the defendants, and others known and unknown to the grand jury, performed overt acts, including, but not limited to the following: 4. In a telephone conversation on June 12, 2001, defendant NASSIB BERRO offered defendant ALI FARHAT his credit cards to process transactions on them for $10,000 cash. American Express Card account no. 3783-480958-71007 5. On June 1, 1999, a transaction in the amount of $7,208.00 was processed at Palisades Jewelers on defendant NASSIB BERRO's American Express credit card account, number 3783-480958-71007. .48- Case Document 327 Filed Page 49 of 50 6. On July 28, 1999, defendant NASSIB BERRO mailed or caused to be . mailed a non-sufficient funds check in the amount of $25,400.00 to American Express falsely representing it as payment on the credit card. Bank of America Card, account no. 4024-1150-1135-2119 7. On November 26, 2001, a transaction in the amount of $1,100 was processed at BDI on defendant SALWA BERRO's Bank of America credit card, account number 4024-1150-1135-2119. 8. On December 12, 2000, defendant SALWA BERRO mailed or caused to be mailed non-sufficient funds check number 1403 in the amount of $2,000, falsely representing it as payment on her Bank of American credit card. 9. On December 22, 2001, a transaction in the amount of $1,700 was processed at BDI on defendant SALWA BERRO's Bank of America credit card. Direct Merchants Bank, account no. 5458-0005-7501-9373 10. On November 21, 2001, defendant SALWA BERRO caused a fraudulent payment in the amount of $2,260 to be made on her Direct Merchants Bank credit card, account number 5458-0005-7501-9373. 11. On November 23, 2001, a transaction in the amount of $1,989 was processed at SIGMA on defendant SALWA BERRO's Direct Merchants Bank credit card. -49_ Case Document 327 Filed Page 50 of 50 Sale of 5903 Steadman Before Bankruptcy Filing 12. On April 4, 2002, defendants NASSIB BERRO and SALWA BERRO transferred title to their residence at 5903 Steadman, Dcarbom, Michigan, in a sale of that property to their son. 13. On April 4, 2002, defendants NASSIB BERRO and SALWA BERRO received $54,000 as proceeds of the sale representing their equity in the house as a result of payments made on the mortgage. Bankruptcy Filing 14. On April 25, 2002, defendants NASSIB BERRO and SALWA BERRO jointly filed a voluntary petition for bankruptcy, under Chapter 7 of Title 11, United States Code, in United States Bankruptcy Court for the Eastem District of Michigan, Southem Division i 15. In that bankruptcy petition, defendants NASSIB BERRO and SALWA BERRO failed to disclose that they had received $54,000 from the sale of the property at 5903 Steadman, Dcarbom, Michigan. 16. On November 12, 2003, defendant NASSIB BERRO advised an individual known to the grand jury about putting assets in the names of third parties before declaring bankruptcy so that creditors could not reach those assets. 17. On May 24, 2002 defendant SADEK BERRO attended the bankruptcy -50- Case Document 327-2 Filed Page 1 of 29 hearing of defendants NASSIB BERRO and SALWA BERRO before a U.S. Bankruptcy :Trustee at the United States Bankruptcy Court for Eastcm District of Michigan, Southcm Division. 18. All in violation ofTit1c 18, United States Code, Sections 371. PART X: THE ABDUL HALIM BERRO AND HOUDA BERRO FRAUD ACTIVITY AND MONEY LAUNDERING (Counts 44 through 46) COUNT FORTY-FOUR (18 U.S.C. 371 - CONSPIRACY) D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed," D-7 ABDUL HALIM BERRO 1. Paragraphs 1 through 14 of the Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. 2. From March 2000 until November 2002, in Eastcm District of Michigan, Southcm Division, 'defendants ABDULAMIR BERRO and ABDUL HALIM BERRO did knowingly combine, conspire and agree with each other and persons known and unknown to the grand jury: A. to violate Title 18, United States Code, Section 1344 (Bank Fraud), by knowingly executing and attempting to execute a scheme and artifice to defraud financial institution, as set forth in paragraphs 1 through 14 of the -51- Case Document 327-2 Filed Page 2 of 29 Introduction to this Indictment and to obtain money, funds, or other property owned by, or in the custody or control of federally insured i financial institutions by means of materially false and fraudulent pretenses, representations and promises; B. to violate Title 18, United States Code, Section 1341 (Mail Fraud) by knowingly placing and causing to be placed in an authorized depository for . mail, for delivery by the United States Postal Service and private or commercial interstate mail carriers, non-sufficient funds cheeks representing payments on credit cards, for the purpose of executing and in iixrtherance of the scheme and to defraud, as .set forth in paragraphs 1 through 14 of the Introduction to this Indictment, and to obtain money or property by means of materially false and fraudulent pretenses, representations and promises. OBJECTS OF THE CONSPIRACY 3. The defendants conspired and agreed with each other and others known and unknown to the grand jury a) to defraud financial institutions and other credit card issuers by busting out credit card accounts and otherwise incurring charges without making payment; b) to obtain cash and merchandise by using credit cards at Sigma, BDI and other establishments for which payment was never made; c) to evade collection efforts by .52. Case Document 327-2 Filed Page 3 of 29 creditors by declaring bankruptcy; and d) to conceal assets and the proceeds of their 'fraudulent activity in order to evade creditors and avoid detection. OVERT ACTS In furtherance of the conspiracy and to accomplish its objects, on or about the dates set out below, one or more of the defendants performed and caused to be performed overt acts, including but not limited to the following, inthe Eastcm District of Michigan and elsewhere: Discover card, account no. 6011-0057-0062-0688 4. On March 7, 2000, defendant ABDUL HALIM BERRO caused two transfers from his Disco_ver Financial credit card, account number, 6011-0057-0062-0688 in the amount of $14,000 to SAM DERRO. 5. On November 31, 2001, defendant ABDUL HALIM BERRO used his Discover credit card in making a payment in the amount of $15,000 to ABN AMRO Mortgage Group Inc., for mortgage, loan number 6l4455342, on the property located at 4926 Orchard, Dearbom, Michigan, held by Houda Berro (not named as a defendant in this Count). 6. On .Tune 16, 2002, defendant ABDUL HALIM BERRO mailed or caused to be mailed non-sufficient iimds check number 1115, in the amount of $14,250, falsely representing it as payment on the Discover credit card. .53- Case Document 327-2 Filed Page 4 of 29 People's Bank, account number 4017-3500-0215-7222 7. On November 29, 2001, defendant ABDUL HALIM BERRO used his People's Bank credit card, number 4017-3500-0215-7222 in making a payment in the amount of $9,650 to ABN AMRO Mortgage Group Inc. forthe mortgage, loan number 6l4455342, on the property located at 4926 Orchard, Dcarbom, Michigan, held by defendant HOUDA BERRO. 8. On June 24, 2002, defendant ABDUL HALIM BERRO mailed or caused to be mailed non-sufficient funds check number 1533 in the amount of $7,500 to People's State, falsely representing it as payment on the credit card. 9. On July 1, 2002, defendant ABDUL HALIM BERRO made or caused to be made a charge on his People's State credit card at BDI, the company of ABDULAMIR BERRO, inthe amount of $3,850. i 10. On July 1, 2002, defendant ABDUL HALIM BERRO also made or caused to be made a charge on his People's State credit card at BDI, the company of ABDULAMIR BERRO, in the amount of $3,325. Bankruptcy Filing ll. On February 11, 2003, in order to avoid payment and efforts by creditors to collect payment, defendant ABDUL HALIM BERRO filed a voluntary petition for bankruptcy, under Chapter 7 of Title ll, United States Code, in United States Bankruptcy Court for the Eastem District of Michigan, Southem Division. -54. Case Document 327-2 Filed Page 5 of 29 12. In that bankruptcy petition, defendant ABDUL HALIM BERRO falsely stated that he had no real property and total assets of $1,000 and knowingly and fraudulently concealed in his bankruptcy case that he, in fact, had an interest in the property located at 4926 Orchard, Dearbom, Michigan and that he had received $95,000 in proceeds from the refinancing of that property. 13. All in violation of Title 18, United States Code, Sections 371. COUNT FORTY-FIVE (18 U.S.C. 1956(h)- CONSPIRACY TO LAUNDER MONEY) D-7 ABDUL HALIM BERRO D-15 HOUDA MOHAMAD BERRO 1. The General Allegations are incorporated into this count by reference. 2. From March 2001 to May 2002, in the Eastem 'District of Michigan, Southem Division, defendants ABDUL HALIM BERRO and HOUDA MOHAMAD BERRO did knowingly combine, conspire and agree with each other and persons known and unknown to conduct a financial transaction, knowing that the property involved in the transaction represented the proceeds of some form of unlawiixl activity and which did involve proceeds of bank fraud, a specified unlawfixl activity within the meaning of Title 18, United States Code, Section 1956 and knowing that the transaction was designed, in whole or in part, to conceal and disguise the nature, the location, the source, the ownership, and the control of the proceeds of the above specified unlawful activities. .55- Case Document 327-2 Filed Page 6 of 29 QVERT ACTS In furtherance ofthe conspiracy and to accomplish its objects, ABDUL HALIM BERRO And HOUDA MOHAMAD BERRO performed or caused to be performed the following overt actions, among others: 3. On April ll, 2001, defendant HOUDA MOHAMAD BERRO obtained a mortgage loan from ABN AMRO Mortgage Group, Inc., forthe purchase of property located at 4926 Orchard Avenue, Dearbom, Michigan, by submitting fraudulent information relating to her income, as alleged in Count ifty-One, and incorporated herein by reference. 4. From May 2001 though April 2002, ABDUL HALIM BERRO used credit cards to make payments, through convenience checks and electronic payments, on the mortgage for 4926 Orchard, Dearbom, Michigan, in an amount exceeding $82,000, with credit cards he subsequently busted out, as alleged in Count Forty-Four, which, coupled with other payments, reduced the mortgage owing to approximately S626 as of April 2002. 5. On April 4, 2002, defendant HOUDA MOHAMAD BERRO refinanced the 4926 Orchard property and obtained a mortgage loan from ABN AMRO Mortgage Group, Inc., in the amount of $124,000, by submitting fraudulent information relating to her income, as alleged in Count Fifty-Two, and incorporated herein by reference. -55- Case Document 327-2 Filed Page 7 of 29 6. On April 4, 2002, Golden Title Insurance Agency, Inc. issued check 005130 drawn on its account at The Huntington National Bank and made payable to defendant HOUDA MOHAMAD BERRO for $19,542,representing the proceeds of the mortgage obtained by fraud. 7. On April 9, 2002, Golden Title Insurance Agency, Inc. issued cheek 1- 23195 drawn on its account at The Huntington National Bank and made payable to defendant HOUDA MOHAMAD BERRO for $100,835.94, representing the proceeds of the mortgage obtained by fraud. 8. On April 15, 2002, defendant HOUDA MOHAMAD BERRO deposited the two checks issued by Golden Title Insurance Agency, Inc. into her Huntington Bank account, number 02383200952. 9. On April 17, 2002, HOUDA MOHAMAD BERRO withdrew the money from the Huntington Bank account in the form ofa check, number 168, for $95,000 made payable to Halime Berro. 10. On April 17, 2002, the check for $95,000 issued off of defendant HOUDA MOHAMAD BERRO's account and made payable to Halime Berro was endorsed and deposited into a Charter One bank account, number 3640622609, in the name of Halime Berro. _57. Case Document 327-2 Filed Page 8 of 29 ll. On May 23, 2002, the money was withdrawn from the Charter One account .of I-Ialime Bcrro in the form of a check, number 132, for $95,000 made payable to defendant ABDUL HALIM BERRO. 12. On May 22, 2002, defendant ABDUL HALIM BERRO deposited the $95,000 check into his Huntington bank account, number 02380635449. 13. On May 28, 2002, ABDUL HALIM BERRO caused $95,000 to be transmitted by means of wire from his Huntington Bank account to an account at the Jammal Trust Bank in Beruit Lebanon. 14. All in violation of Title 18, United States Code, Section 1956(h). COUNT FORTY-SIX 1956- MONEY LAUNDERING) D-7 ABDUL HALIM BERRO i 1. The General Allegations are incorporated into this count by reference. 2. On May 28, 2002, in the Eastcm District of Michigan, Southem Division, ABDUL HALIM BERRO transmitted and transferred by wire approximately $95,000 from his bank account at Huntington National Bank in Dearbom, Michigan, to a place outside the United States, namely Beirut, Lebanon, knowing that the funds involved in that transmission and transfer represented the proceeds of some fonn of unlawful activity, namely bank fraud, in violation of Title 18, United States Code, Section 1344, and .5g- Case Document 327-2 Filed Page 9 of 29 knowing that such transmission and transfer was designed in whole or in part to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity. 3. A11 in violation of Title 18, United States Code, Section 1956(a)(2). PART XI: THE BILAL EL SIBLANI FRAUD ACTIVITY (Counts 47) COUNT FORTY-SEVEN (18 U.S.C. 371 - CONSPIRACY) D-1 ALI ABDUL KARIM FARHAT a/k/a Allen Farhat, D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed," D-8 BILAL EL-SABLANI, D-12 SADEK BERRO 1. Paragraphs 1 through 14 ofthe Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. 2. From August 1999 until December 2001, in the Eastem District of Michigan, Southcm Division, defendants ALI FARHAT, ABDULAMIR BERRO, SADEK BERRO and BILAL EL-SIBLANI did knowingly combine, conspire and agree with each other and persons known and unknown to the grand jury: A. to violate Title 18, United States Code, Section 1344 (Bank Fraud), by knowingly executing and attempting to execute a scheme and artitice to defraud financial institutions, as set forth in paragraphs 1 through 14 .59_ Case Document 327-2 Filedtt/O9/O5 Page1Oof 29 of the Introduction to this Indictment and to obtain money, funds, or other property owned by, or in the custody or control of, federally insured financial institutions by means of materially false and fraudulent representations and promises; B. to violate Title 18, United States Code, Section 1341 (Mail Fraud by knowingly placing and causing to be placed in an authorized depository for mail, for delivery by the United States Postal Service and private or commercial interstate mail carriers, non-sufficient fimds checks representing payments on credit cards, for the purpose of executing and in furtherance of the scheme and anifice to defraud, as set forth in paragraphs I1 through I4 ofthe Introduction to this Indictment, and to obtain money or property by means of materially false and fraudulent representations and promises. OBJECTS OF THE CONSPIRACY 3. The defendants conspired and agreed with each other and others known and unknown to the grand jury a) to dc&aud financial institutions and other credit card issuers by busting out credit card accounts and otherwise incurring charges without making payment; b) to obtain cash and merchandise by using credit cards at SIGMA, BDI and other establishments for which payment was never made; c) to evade collection efforts by -50. Case Document 327-2 Filedtt/O9/O5 Page11of29 creditors by declaring bankruptcy; and d) to conceal assets and the proceeds of their fraudulent activity in order to evade creditors and avoid detection. i OVERT ln furtherance of the conspiracy and to accomplish its objects, on or about the dates set out below, one or more of the defendants performed and caused to be performed overt acts, including but not limited to the following, in the Eastem District of Michigan_and elsewhere: MBNA, account number 4264-2904-5264-4073 4. On January 1 1, 2000, defendant SADEK BERRO mailed or caused to be mailed check 2006 in the amount $200 to MBNA as payment on an MBNA credit card, number 4264-2904-5264-4073, held by defendant BILAL EL-SIBLANI. 5. On January 16, 2001 a charge in the amount of $250 was processed at BDI on the MBNA credit card. 6. On February 8, 2001, defendant BILAL mailed or caused to be mailed a non-sufficient fimds check in the amount of $5,000 falsely representing the non-sufficient funds check as payment on his MBNA account. Citibank, account number 4128-0032-1308-2392 7. On February 8, 2001, defendant BILAL mailed or caused to be mailed a non-sufficient funds check in the amount of $4,600 falsely representing the non-sufficient funds check as payment on his Citibank account. Case Document 327-2 Filedtt/O9/O5 Page12 of 29 8. On February 10, 2001, a charge in the amount of $4690.90 was processed at on defendant BILAL Citibank credit card. Bankruptcy Filing 9. In order to avoid payment and efforts by creditors to collect payment, BILAL EL-SABLAN1 tiled a voluntary petition for bankruptcy on December 18, 2001 under Chapter 7 of Title 11, United States Bankruptcy Code, in United States Bankruptcy Court for the Eastem District of Michigan, Southem DivisionD-12 D-13 D-15 D-17 10. All in violation of Title 18, United States Code, Section 371. PART XII: BANK FRAUDS AND OTHER OFFENSES RELATED T0 MORTGAGES (Counts 48 through 58) COUNTS FORTY-EIGHT THROUGH FIFTY-FOUR (is U.s.c. 1344 BANK FRAUD) ALI ABDUL KARIM FARHAT a/k/a Allen Farhat, ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed," AKRAM ABDUL KARIM BERRO, JAMAL SAADALLAH BERRO, ABDUL HALIM BERRO, ZEINAB BERRO, SADEK BERRO a/k/a Sam Berro, AMIRA ALI FARHAT, HOUDA MOHAMAD BERRO, ALMIRE ALI-SADEK BERRO 1. Paragraphs 1 through 14 of the Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. -62- Case Document 327-2 Filedtt/O9/O5 Page13 of 29 2. From approximately September 12, 2000 to October 14, 2002, in the Eastem District of Michigan, Southem Division and elsewhere, defendants, ALI FARHAT, ABDULAMIR BERRO, AKRAM BERRO, JAMAL BERRO, ABDUL HALIM BERRO, ZEINAB BERRO, SADEK BERRO, AMIRA FARHAT, HOUDA BERRO and ALMIRE BERRO, knowingly devised and executed, and aided and abetted scheme to obtain moneys or other property owned by or in the custody or control of federally insured financial institutions by means of false and fraudulent pretcnses, Of Defendant Am.lra Farhat All Farhat Abdulamlr Berro Jamal Berro Abdul Halim Berro Property 28500 Labana Woods Taylor, MI 7510 Appollne Dearborn 7510 Appollne Dearborn 4926 Orchard Dearborn World Savings Bank ABN AMRO Mortgage Group Inc AB AMRO Mortgage AB AMRO Mortgage Mortgage Loan Account Number 615314463 1010032688 8013947/70 (ma 261- 3 Date of False Loan Applica lon 10/14/02 05/07/01 03/02/01 Mortgage False Loan Information Amount $197,250 $137 $108,800 Employment, income occupancy Employment Income existing ABN AMRO lien Employment income each other and others known and unknown to the grand jury, in devising and executingGroup, Inc. Group Inc 614455342 -53. 02/15/02 Case Document 327-2 Page14 of 29 Abdul Halim Berro 1-louda Berro Sadek Berro Almlre All Berro Zelnab Bcrro 4926 Orchard Dearborn 7749 West Morrow 7741 Calhoun AB 0622010341 02/14/02 S124 000 AMRO Mortgage Group Inc AB AMRO Group Inc Southport Bank 614796516 04/07/01 $182 400 7061162 09/12/00 S180 000 Employment Income Employment income Employment income 1 M1 . 53 . Abdulamlr Dearborn, Mortgage Berro MI Dearborn, MI 3. All in violation of Title 18, United States Code, Sections 1344 and 2. COUNT FIFTY-FIVE (18 U.S.C. 1001, 2 - FALSE STATEMENTS, AIDING AND ABETTING) D-1 ALI ABDUL KARIM FARHAT a/k/a Allen Farhat D-13 AMIRA ALI FARHAT l. On or about May 16, 2001, in the Eastem District of Michigan, Southcm Division, defendants ALI FARHAT and AMIRA FARHAT did knowingly and willfully make, and aid and abct in making, false, fictitious, and fraudulent materially statements and representations in a matter within the jurisdiction ofthe United States Department of Housing and Urban Development, a department ofthe executive branch of the govemment of the United States, in that in a Unifomt Residential Loan Application for a Federal Housing Administration-insured loan forthe purchase of property located at 6703 _64_ Case Document 327-2 Filed Page 15 of 29 Woodmont, Detroit, Michigan, defendant AMIRA FARHAT, stated that she eamed a income of $2,792 working at SIGMA, knowing same to be false. 2. All in violation of Title 18, United States Code, Sections 1001(a)(2) and 2. COUNT IFTY-SIX (18 U.S.C. 1001, 2 - FALSE STATEMENTS, AIDING AND ABETTING) 4 D-1 ALI ABDUL KARIM ARHAT a/k/a`AIlen Farhat D-13 AMIRA ALI FARHAT 1. On or about April 25, 2003, in the Eastem District of Michigan, Southem Division, defendants ALI FARHAT and AMIRA FARHAT did knowingly and willfully make, and aid and abet in making, false, fictitious, and fraudulent materially statements and representations in a matter within the jurisdiction of United States Department of Housing and Urban Development, a department ofthe executive branch of the govemment ofthe United States, in that in a Uniform Residential Loan Application for a Federal Housing Administration-insured loan to refinance the property located at 6703 Woodmont, Detroit, Michigan, defendant AMIRA FARHAT stated that she was employed at SIGMA, knowing the same to be false. 2. All in violation of Title 18, United States Code, Sections 1001(a)(2) and 2. _55_ Case Document 327-2 Filedtt/O9/O5 Page16of 29 COUNT FIFTY-SEVEN (18 U.S.C. 1001, 2 - FALSE STATEMENTS, AIDING AND ABETTING) D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed" D-14 ABDUL KARIM AKRAM BERRO 1. On or about February 15, 2002, in the Eastem District of Michigan, Southern Division, defendants ABDULAMIR BERRO and ABDUL KARIM AKRAM BERRO did knowingly and willfully make, and aid and abet in making, false, fictitious, and fraudulent materially statements and representations in a matter within the jurisdiction ofthe United States Department of Housing and Urban Development, a department of the executive branch of the govemment ofthe United States, in that in a Uniform Residential Loan Application for a Federal Housing Administration-insured loan relating to the purchase of property located 7510 Appoline, Dearbom, Michigan, defendant ABDUL AKRAM BERRO stated that he eamed a income of $3900 working at BDI, ABDULAMIR BERRO's company, knowing the same to be false. 2. All in violation of Title 18, United States Code, Sections 1001(a)(2) and 2. COUNT FIFTY-EIGHT (18 U.S.C. 1341 - FRAUD BY COMMERCIAL CARRIER) D-1 ALI ABDUL KARIM FARHAT a/k/a Allen Farhat 1. On or about April 25, 2003, in the Eastem District of Michigan, Southem -65- Case Document 327-2 Filed 11/09/05 Page 17 of 29 Division, defendant ALI FARHAT devised a scheme to defraud Shore Mortgage and to 'obtain money by means of materially false and fraudulent pretenses, by providing false infomation on Ioan documents to obtain a mortgage on a residential property located at 7546 Coleman, Dearbom, Michigan. 2. It was part of the scheme that defendant ALI FARHAT provided false information about the employment and income of the Ioan applicant. 3. On or about April 28, 2003, in the Eastem District of Michigan, Southem Division, defendant ALI FARHAT, forthe purpose of executing the scheme and attempting to do so, caused items to be sent and delivered through Federal Express, a commercial interstate carrier. 4. All in violation of Title 18, United States Code, Section 1341. PART ALI FARHAT AND ABDULAMIR MONEY LAUNDERING ACTIVITIES (Counts 59 through 66) COUNTS FIFTY-NINE THROUGH SIXTY-FOUR (18 U.S.C. 1956 - MONEY LAUNDERING) D-1 ALI ABDUL KARIM FARHAT a/k/a/ Allen arhat D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed" 1. Paragraphs 1 through 14 of the Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. 2. From May 24, 2001 through July 19, 2002, inthe Eastem District of _67- Case Document 327-2 Filedtt/O9/O5 Page18 of 29 Michigan, Southem Division, defendants ALI FARHAT and ABDULAMIR BERRO knowingly conducted and attempted to conduct financial transactions knowing that the property involved in the transactions represented the proceeds from some fomi of unlawful activity and which did involve the proceeds of bank fraud, a specified unlawful activity within the meaning of Title 18, United States Code, Section 1956 with the intent to promote the specified unlawful activity, and knowing that the transactions were designed, in whole or part, to conceal and disguise the nature, the location, the source, the ownership, and the control of the proceeds of the specified unlawful activity. 3. Each ofthe following financial transactions constitutes a separate count of this Indictment. Ct, Defendant Financial Transaction Account Date of Amount Financial Transaction All Farhat Withdrawal ln form of From Sigma 01/18/02 $8,000 check payable to Huntington Berro Enterprises National Bank - account Abdulamlr Deposit of check Into Berro 01/17/02 $8,000 Berro Enterprises Bank One account 61 All Farhat Withdrawal in form of From Sigma 01/25/02 $6,688 check payable to BDI Huntington National Bank account Abdnlamlr Deposit ol' check Into BDI Bank One 01/23/02 $6,688 Berro account .53_ Case Document 327-2 Page19 of 29 63 Abdulamlr Withdrawal by means From Berro 03/27/02 Berro of debit memo for Enterprises Bank deposit into Daoud One account Fara]'s Bank One account Abdulamir Withdrawal by means From BDI Bank 07/19/02 $6,245 Berri of debit memo for One account deposit into Daoud Faraj's Bank One account 4. All in violation of Title 18, Section l956(a)(l). COUNTS SIXTY-FIVE THROUGH SIXTY-SIX (18 U.s.c. 1957) D-1 ALI ABDUL KARIM FARHAT a/k/a/ Allen Farhat D-2 ABDULAMIR BERRO a/k/a Abe Berro, a/k/a "Abed" 1. Paragraphs 1 through 14 ofthe Introduction to this Indictment and paragraphs 15 through 21 of the General Allegations are incorporated in this Count. 2. On or about January 22, 2003, in the Eastcm District of Michigan, Southem Division, defendants ALI FARHAT and ABDULAMIR BERRO knowingly engaged in monetary transactions in criminally derived property of a value greater than $10,000 and derived from specified unlawful activity that took place within the United States, that is, proceeds of bank fraud, in violation of Title 18, United States Code, Section 1344. -59. Case Document 327-2 Filed Page 20 of 29 3. I Each ofthe following financial transactions constitutes a separate count of 'this Indictment. Ct Defendant Financial Transaction Account Date of Amount Financial Transaction Ali Farhat Withdrawal in form of From Sigma 01/22/02 $24,390 check payable to BDI Huntington National Bank account Abdulamir Deposit of check Into BDI Bank One 01/22/02 $24,390 Berro . account 4. All in violation of Title 18, United States Code, Section 1957. PART XIV: ORFEITURE ALLEGATIONS RACKI-STEERING FORFEITURE (rs U.s.c. 1963) 1. The allegations contained in paragraphs through 14 ofthe Introduction to this Indictment and paragraphs 15 through 21 through 21 of the General Allegations and Count lof this Indictment are hereby repeated, realleged, and incorporated by reference herein as though fully set forth at length for the purpose of alleging forfeiture pursuant to the provisions of Title 18, United States Code, Section 1963. Pursuant to Rule 32.2, Fed. R. Crim. P., notice is hereby given to the defendants that the United States will seek forfeiture as part of any sentence in accordance with Title 18, United States Code, Section 1963 in the event of any defendant's conviction under Count 1 of this Indictment. -70. Case 2 Document 327-2 Filed Page 21 of 29 The defendants ALI FARHAT, ABDULAMIR BERR) and SADEK BERRO A. have acquired and maintained interests in violation of Title 18, United States Code, Section 1962, which interests are subject to forfeiture to the United States pursuant to Title 18, United States Code, Section 1963(a)(1); B. have an interest in, security of; claims against, and property and contractual rights which afford a source of int1uence over, the enterprise named and described herein which the defendants established, operated, controlled, conducted, and participated in the conduct of; in violation of Title 18, United States Code, Section 1962, which interests, securities, claims, andrights are subject to forfeiture to the United States pursuant to Title 18, United States Code, Section 1963 C. have property constituting and derived from proceeds obtained, directly and indirectly, from racketeering activity, in violation of Title 18, United States Code, Section 1962, which property is subject to forfeiture to the United States pursuant to Title 18, United States Code, Section 1963(a)(3). _71_ Case Document 327-2 Filed Page 22 of 29 3. The interests of the defendants subject to forfeiture to the United States pursuant to Title l8, United States Code, Section l963(a)(l), and include but are not limited to: A. at least $868,285; 4 B. Real property, including all buildings, fixtures, improvements, and appurtenances, commonly known as 24512 Michigan Avenue, Dearbom, Wayne County, Michigan, titled in the name of Allen Farhat, and more fully described as: i Lots 1873 and 1874 of Hannan's Dearbom Hills Subdivision No. 5, as recorded in Liber 51, Page(s) 77 of Plats, Wayne County Records 82-09-204-08-013 4. If any of the property described above as being subject to forfeiture, 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 person; C. Has been placed beyond the jurisdiction ofthe court; D. Has been substantially diminished in value; or E. Has been commingled with other property which cannot be subdivided without difficulty; -72. Case Document 327-2 Filed Page 23 of 29 it is the intention of the United States, pursuant to Title 18, United States Code, Section ?1963(m), to seek forfeiture of any other property of the said defendants up to the value of the forfeitable property. 5. The above-named defendants, and each of them, are jointly and severally liable for the forfeiture obligations as alleged above. 6. All pursuant to Title 18, United States Code, Section 1963. MONEY LAUNDERING, BANK FRAUD AND MAIL FRAUD FORFEITURE ALLEGATIONS. (18 U.s.c. and 18 U.s.c. 981(a)(1)(c) and 28 U.s.c. ?2461(c)) 1. Upon conviction ot' one or more of the offenses alleged in Counts Two through Twenty-Eight,,Thirty-Five, Thirty-Seven, Thirty-Nine, Forty, Forty-One, Forty- Three, Forty~Four, Forty-Seven, orty-Eight through Fifty-Four and Fifty-Eight and of this Indictment, defendants ALI FARHAT, ABDULAMIR BERRO, AKRAM BERRO, JAMAL BERRO, ABDUL HALIM BERRO, BILAL EL-SABLANI, NOURA BERRO, SAMI BERRO, ZEINAB BERRO, SADEK BERRO, AMIRA FARHAT, HOUDA BERRO, ALMIRE BERRO, NASSIB BERRO and SALWA BERRO shall forfeit to the United States pursuant to 18 U.S.C. any property constituting or derived -73. Case Document 327-2 Filed Page 24 of 29 from proceeds obtained directly or indirectly as a result of said violations, including, but hot limited to: A. Real Property i) The proceeds from the sale of particular property, totaling 572,621.1 l, located at 25800 Labana Woods, Taylor, Wayne County, Michigan, and more fully described as: Lot 51, Labana Woods Subdivision, as recorded in Liber 115, Pages 96 through 103, both inclusive, of Plats, Wayne County Records, which proceeds are being held in escrow by the United States Marshals Service forthe Eastem District of Michigan; and, ii) Real property, including all buildings, fixtures, improvements, and appurtenances, commonly known as 4926 Orchard, Dearbom, Wayne County, Michigan, titled in the name of Houda and Rami Berro, and more fully described as: Lot 99 and Adjacent Vacated Alley, Orchard Boulevard Subdivision as Recorded in Liber 33, Page 13 of Plats, Wayne County Records. 82-10-081-29-033. -74- Case Document 327-2 Filed Page 25 of 29 2. Upon conviction of one or more of the money laundering offenses alleged 'in Counts Thirty-Six, Thirty-Eight, Forty-Five, Forty-Six, and Fifty-Nine through Sixty- six of this Indictment, defendants ALI FARHAT, ABDULAMIR BERRO, AKRAM BERRO, JAMAL BERRO, ABDUL HALIM BERRO, HOUDA BERRO and SADEK BERRO shall forfeit to the United States, pursuant to Title 18, United States Code, Section the following property: A. All right, title or interest in any and all property involved in defendants' offenses in violation of 18 U.S.C. ??1956 or 1957, for which the defendant is convicted, and all property traceable to such property, including the following: (1) all money or other property that was the subject of each transaction, transportation, transmission or transfer in violation of Section 1956 or 1957; (2) all commissions, fees and other property constituting proceeds obtained as a result of these violations; and (3) all property used in any manner or part to commit or to facilitate the commission of these violations, including but not limited to the following: i) Real property, including all buildings, fixtures, improvements, and appurtenances, commonly known as 24512 Michigan Avenue, Dearbom, Wayne County, Michigan, titled in the name of Allen Farhat, and more fully described as: Lots 1873 and 1874 of Hannan's Dearbom Hills Subdivision No. 5, as recorded in Liber 51, Page(s) 77 of Plats, Wayne County Records 82-09-204-08-013 Case Document 327-2 Filed it/O9/O5 Page 26 of 29 ii) Real property, including all buildings, fixtures, improvements, and appurtenances, commonly known as 4926 Orchard, Dearbom, Wayne County, Michigan, titled in the name of Houda and Rami Berro, and more fully described as: Lot 99 and Adjacent Vaeated Alley, Orchard Boulevard Subdivision as Recorded in Liber 33, Page 13 of Plats, Wayne County Records. 82-10-081-29-033. Real property commonly known as 22640 Kelly Road, Eastpointe, Macomb County, Michigan, together with all buildings, fixtures, improvements, and appurtenances, more fully described as: I Lots 8 through 11, inclusive, South 70 Feetiof Lot 12, SYNDERS ELMRIDGE SUBDIVISION, as recorded in Liber 8, Page 30 of Plats, Macomb County Records. iv) Real property commonly known as 18700 East Nine Mile, Eastpointe, Macomb County, Michigan, together with all buildings, fixtures, improvements, and appurtenances, more fully described as: North 50 FeetLots 13 through 17, Inclusive, SYNDERS ELMRIDGE SUBDIVISION, as recorded in Liber 8, Page 30 of Plats, Macomb County Records. -75- Case Document 327-2 Filed Page money equal to the total amount of money constituting or derived db from proceeds and involved in each offense, or conspiracy to commit such offense, for which the defendant is convicted. If more than one defendant is convicted of an offense, the defendants so convicted are jointly and severally liable forthe amount of money involved in such offense. 4. If any of the forfeitable property described in paragraphs 1 and 2, as a result of any act or omission of the defendantfs): 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 ofthe court; D. has been substantially diminished in value; or EA. has been commingled with other property which cannot be divided without difficulty; it is the intent ofthe United States, pursuant to 21 U.S.C. 853(p) as incorporated by 18 U.S.C. 982(b), to seek forfeiture of any other property of said .77. Case Document 327-2 Filed Page 28 of 29 defcndant(s) up to the value ofthe forfcitable property described in subparagraphs 3(a) A through 3(e) above. THIS IS A TRUE BILL. s/Qrand Jug Foreperson Dated: STEPHEN J. MURPHY United States Attomey M. QQORKEN Assistant U.S. Attomey L. Assistant U.S. Attomey Case Document 327-2 Filed Page 29 of 29 513185 Dl$lI'lCt COLIN Crin~|ina| Case Cover Sheet Case Number Eastern of - NOTE: lt ls the of the Assistant U.S. Attorney signing this form to comploto lt accurately ln all respects. Com anion Case information This may be a companion case based upon 57.10 me . case Title: usA v. ALI Aeou|_ FARHAT, et al County where offense occurred WAYNE JUDGE DO QA I2 A SCHEER Check One: Felony El Misdemeanor El Petty Indictment/ information no prior complaint. indictment/ Information based upon prior complaint [case number: 1 Indictment] information based upon 57.10 [Complete Superseding section belowj. Su ersedin Case lnformation: Superseding to Case No: 04-80370 Judge: JOHN CORBETT El Original case was terminated; no additional charges or defendants. lIl Corrects errors; no additional charges or defendants. 5: El Involves, for plea purposes, different charges or adds counts. 3 Embraces same subject matter but adds the additional defendants or chargzes below: i ?-fl 7:2 LEE \g 4 D-1 Ali Abdul Karim Farhat 18 U.S.C. 1962 ?525 IZ D-2 Abdulamir Berro 18 U.S.C. 1962 $52, D-12 Sadek Berro 18 U.S.C. 1962 D-18 Nassib Saadallah Berro 18 U.S.C. 371, 157, 1344 D-19 Salwa Nassib Berro 18 U.S.C. 371, 157, 1344 Please take notice that the below listed Assistant United States Attorney is the attorney of record for the above captioned case. November 9, 2005 Date CATHLEEN M. CORKEN Assistant United States Attorney 211 W. Fort Street, Suite 2001 Detroit, l\/ll 48226-3277 Phone: (313) 226-0206 Fax: (313) 226-4679 E-Mail address: Cathleen.Corken@usdoj.gov Companion cases are matters ln which lt appears that (1) substantially similar evidence will be offered at trial. (2) lhe same or rotated parties are present, and lho cases arise out same tran ll nco, Cases may be companion cases even though one ol thorn may have already been tar I ated. 5/20/04