Case: Doc 1 Filed: 06/27/17 Page: 1 of 8 PAGEID 1 .1. ""1?11 7-1.1! 11.1111. UNITED STATES DISTRICT COURT 115-1: r: SOUTHERN DISTRICT OF OHIO . . EASTERN DIVISION 21.117.511.127 PH 5: 05 1L3 UNITED STATES OF AMERICA, 1.1111 . 11111112111 1111121133 CASE No. Plaintiff, JUDGE Graham BERND D. APPLEBY, INFORMATION - and? JAMES A. OLDING, LAWRENCE E. QUINN, JR, 13 use. 2 JASON T. JOYCE, 13 11.3.13. 1343 18 U.S.C. ?1349 Defendants. FORFEITURE THE UNITED STATES ATTORNEY CHARGES: At all times relevant to this Bill of Infonnation: 1. From in or about June 199? through in or about May 201?, Computer Company, Inc. was a third-natty?r company that sold hardware and provided maintenance and support for various original equipment manufacturers including, but not limited to, Sun Microsystems, Inc. and Oracle Corporation 2. was incorporated in California on or about June 4, 199?. ?s principal place of business was in Sunnyvale, Califomia. had substantial operations in Dublin, Ohio, which is located within the Southern District of Ohio. 3. Defendant D. APPLEBY resided in San Jose, California and Saratoga, California and served as the Chief Executive Of?cer of from in or about June 199? through in or about May 201?. Defendant APPLEBY was one of two co-owners of Case: Doc 1 Filed: 06/27/17 Page: 2 of 8 PAGEID 2 and owned 20% of and all af?liated entities and subsidiaries of Defendant APPLEBY was listed as the Chief Executive Of?cer, Chief Financial Of?cer, and Director on the corporate ?lings in California for 4. Defendant JAMES A. OLDING resided in Dublin, Ohio and was one of two co-owners who owned 30% of and all affiliated entities and subsidiaries of from in or about 199'? through in or about May 201?. From in or about December 1999 through November 2005, Defendant title at was Vice President of Sales. From in or about November 2005 through of about May 201?, Defendant title at has been Chief Operating Officer. Defendant OLDING was listed as the Secretary on the corporate ?lings in California for 5. Defendant LAWRENCE E. QUINN, JR. resided in Hilliard, Ohio and served as the Director of Sales of ?om in or about November 2005 through in or about 2011. From in or about 20! I through in or about May 2017, Defendant title at has been Executive Vice President. In each of these two capacities, Defendant QUINN was responsible for sales ?rnctions. 6. Defendant JASON T. JOYCE resided in Dublin, Ohio and served as a system support engineer of from in or about November 2004 through in or about June 2009. From in or about June 2009 through in or about April 2013, Defendant title at was Technical Services Manager-{Software Support Manager. From in or about April 2013 through in or about May 2017, Defendant title at has been Director of Technical Services. In all of these capacities, Defendant JOYCE was responsible for service delivery functions including, but not limited to, delivery of patches on and products to customers. Case: Doc 1 Filed: 06/27/17 Page: 3 of 8 PAGEID 3 West Coast Computer Exchange, Inc. located in Carson City, Nevada and Rancho Cordova, California, was a wholly owned subsidiary of WEX was incorporated in Nevada on or about June 13, 2007. Defendant APPLEBY was listed as the President, Treasurer, and Director on the corporate ?lings in Nevada for WEX. Defendant OLDING was listed as the Secretary on the corporate ?lings in Nevada for WEX. WEX was legally merged into on or about April 3, 2013. 8. Savanna Financial Inc. a company located in Saratoga, California, was an af?liate of SEVANNA was incorporated in Nevada on or about January 10, 2006. Defendant APPLEBY was listed as the President, Treasurer, Secretary, and Director on the corporate ?lings in Nevada for SEVANNA. On or about March 30, 2006, SEVANNA listed its registered agent as Defendant APPLEBY using his home address in Saratoga, California. 9. Summit Technology a ?ctional entity created by Defendant APPLEBY and Defendant JOYCE for the purposes set forth below, was effectively an af?liate of 10. SUN merged with ORACLE effective on or about January 2010 with ORACLE being the surviving legal entity. Conduct associated with Defendants APPLEBY, OLDING, QUINN, and JOYCE that occurred prior to that date was related to SUN. Conduct associated with Defendants APPLEBY, OLDING, QUINN, and JOYCE that occurred on or a?er that date was related to ORACLE. COUNT 1 (18 11.3.0. 1349: Conspiracy to Commit Wire Fraud) 1. Paragraphs 1?10 of the Introductory Allegations of this Information are re-alleged and incorporated here. Case: Doc 1 Filed: 06/27/17 Page: 4 of 8 PAGEID 4 2. From in or about May 2005, and continuing thereafter until in about January 2014, in the Southern District of Ohio and elsewhere, Defendants APPLEBY, OLDING, QUINN, and JOYCE knowingly and intentionally conspired and agreed, together and with other persons, both known and unknown, to commit wire fraud; that is, to devise and intend to devise a scheme to defraud, and to obtain money and property by means of false and ?audulent pretenses, representations, promises, and material omissions, and for the purpose of executing the scheme, using wire communications in interstate commerce, in violation of 18 11.3.0. 1343. Obiect of the Conspiracy 3. The primary purpose of the conspiracy was for the Defendants to fraudulently obtain SUNIORACLE intellectual property worth millions of dollars, then use that intellectual property in support of unwitting third-party customers that entered into service business relationships with to ?nancial bene?t and the personal bene?t of the Defendants. Defendants APPLEBY, OLDING, QUINN, and JOYCE provided that intellectual property directly to those third-party customers and indirectly to them as the product of internal research conducted by Defendants APPLEBY, OLDING, QUINN, and JOYCE using the intellectual property fraudulently obtained from SUNIORACLE. Manner and Means of the Conspiracy 4. It was part of the conspiracy that Defendants APPLEBY, OLDING, QUINN, and JOYCE accomplished the object of the conspiracy by using anonymized, TERiX-speci?c credentials, speci?cally, by utilizing subsidiaries, af?liates, and ?ctitious entities WEX, SEVANNA, and SUMMIT, to access online websites and download software patches without being detected by SUNIORACLE. Case: Doc 1 Filed: 06/27/17 Page: 5 of 8 PAGEID 5 5. It was ?thher part of the conspiracy that Defendants APPLEBY, OLDING, QUINN, and JOYCE agreed to enter each of those TERiX-related entities into a service contract with SUNKORACLE using the following methods, all utilized to access intellectual property without being detected by SUNIORACLE: 5.1. False names and addresses for the purpose of entering into contracts with SUNIORACLE and gaining credentials to use to download intellectual property; 5.2. Pro-paid cellular phones for telephonic conversations with SUNIORACLE employees; 5.3. Misatn?ibutable internet connections for downloading intellectual property from 5.4. Misattributable email addresses for email correspondence with SUNIORACLE employees; and 5.5. Serial numbers for equpiment that was no longer being used or had never been used for the purpose represented by WEX, SEVANNA, SUMMIT to SUNIORACLE. 6. It was further part of the conspiracy that WEX, SEVANNA, and SUMMIT credentials were used to ??auduiently download intellectual property from approximately 16 (W EX), 258 (SEVANNA), and 2,430 (SUMMIT) times, respectively, between on or about December 9, 2010 and on or about March 20, 2014. It was further part of the conspiracy that in addition to using the credentials for downloading intellectual property from SUNIORACLE, the pre-paid cellular phones described above and respective aliases associated with such credentials were used to make service calls to engineers in support of third-party customers, between in or about July Case: Doc 1 Filed: 06/27/17 Page: 6 of 8 PAGEID 6 2011 and in or about August 2012. These service calls to SUNIORACLE were made using the WEX, SEVANNA, or SUMMIT credentials (and the aliases associated with them) rather than identifying to the SUNIORACLE employee(s) that the calls were being made by a employee. 8. It was further part of the conspiracy that, at least internally within Defendants APPLEBY, OLDING, QUINN, and JOYCE created andfor used a series of code names such as ?Boeing,? ?Tank,? ?Snoe Wight,? ?James Bond,? and ?Plan to ensure that other employees andfor SUNKORACLE did not learn of the conspiracy or the means being used in furtherance of the conspiracy. 9. . It was further part of the conspiracy that Defendants APPLEBY, OLDING, QUINN, and JOYCE regularly discussed via telephone, via email, andl?or in person, how WEX, SEVANNA, and SUMMIT credentials would be utilized to access online websites to download so?ware?undetected?for ?research? purposes. As an example, Defendants APPLEBY, OLDING, QUINN, and JOYCE engaged in email correspondence in or about April 2010 wherein Defendant APPLEBY instructed Defendant JOYCE to ?Purchase a Boeing for WEX. Use this as a trial run,? copying Defendants OLDING and QUINN. 10. It was further a part of the conspiracy that these processes were memorialized in an internal document titled Snoe White 2 which was created by andIor made available to Defendants APPLEBY, OLDING, QUINN, and JOYCE. The critical mechanics of SNOE WIGHT were created by Defendants APPLEBY, QUINN, andfor JOYCE. Each of Defendants APPLEBY, OLDING, QUINN, and JOYCE had access to SNOE WIGHT and reviewed the document before its implementation by Defendants APPLEBY, OLDING, QUINN, and JOYCE and a very small number of other trusted employees. As an Case: Doc 1 Filed: 06/27/17 Page: 7 of 8 PAGEID 7 example, and among other details, SNOE WIGHT provided the SWIORACLE credentials for WEX, SEVANNA, and SUMMIT, and also indicated that those credentials were for common access when completing research for customers. All in violation of Title 18, United States Code, Sections 1349, 1343, and 2. ORFEITURE ALLEQATION l. The allegations contained in Count 1 of this information charging wire fraud conspiracy, in violation of 18 U.S.C. 1349, are re-alleged and incorporated by reference for the purpose of alleging forfeitures to the United States of America, pursuant to 18 U.S.C. 981(a)(1)(C) and 28 U.S.C. 2461(c). 2. Upon conviction of the offense set forth in Count I of this Information, Defendants APPLEBY, OLDING, QUINN, and JOYCE shall forfeit to the United States, pursuant to IS U.S.C. and 28 U.S.C. 2461(c), any property, real or personal, which constitutes or is derived from proceeds traceable to the offense. 3. If any of the property described above, as a result of any act or omission of the defendants: a. cannot be located upon the exercise of due diligence; b. has been transferred or sold to, or deposited with, a third party; c. has been placed beyond thejurisdiction of the court; d. has been substantially diminished in value; or c. has been commingled with other property which cannot be divided without difficulty, the United States shall be entitled to forfeiture of substitute property pursuant to 2] U.S.C. 353(p), as incorporated by 28 U.S.C. 246ltc). Case: Doc 1 Filed: 06/27/17 Page: 8 of 8 PAGEID 8 All pursuant to IS U.S.C. 28 U.S.C. and Federal Rule ol? Criminal Procedure 32.2. BENJAMIN C. GLASSIHAN UNITED STATES ATTORNEY JESSICA H. KIM (0087331) Assistant United States