Case Documentl Filed 09/11/18 Page10f29 . . - - +90 Fl U. 5 5 1 col-jar . MCC. {3 IN mnnmITEaaTAtrgs DISTRICT COURT I RICT i? MARYLAND if: C: At 8A UNITED STATES OF WERIC - - CRIMINAL NO. W0 v. (Conspiracy to Commit Wire Fraud . (18 U.S.C. ?1349); Wire Fraud (18 KEVIN B. MERRILL, U.S.C. 1343); Identity Theft (18 JAY B. LEDFORD, U.S.C. Money-Laundering CAMERON R. JEZIERSKI, Conspiracy (18 U.S.C. 1956(h)); Defendants. Financial Transactions Over $10,000 in Criminally Derived Property (18 U.S.C. 1957(3); Forfeiture). UNDER SEAL INDICTMENT Conspiracy to Commit Wire Fraud The Grand Jury for the District of Maryland charges: COUNT ONE 1. At all times material to this Indictment, KEVIN B. MERRILL lived in Maryland. I 2. At all times material to this Indictment, JAY B. LEDFORD lived in Texas and Nevada and operated, among other companies, Riverwalk Financial Corporation at Riverwalk Financial HQ, 1132 Glade Road Colleyville, Texas 76034, and Ledford and Associates, PLLC, an accounting ?rm, at 2801 Paramount Boulevard, Amarillo, Texas 79109. 3. At times material to this Indictment, CAMERON R. JEZIERSKI lived in Texas. Ca?se Document 1 Filed 09/11/18 Page 2 of 29 4 . At times material to this Indictment, MERRILL controlled, among others, bank accounts at the following ?nancial institutions: Account Name Bank Last 4 Digits of Account Number Delmarva Capital Wells Fargo Global Credit Recovery, LLC PNC Bank ?4768 Global Credit Recovery, LLC (General Trust) PNC Bank *4776 Global Credit Recovery, LLC *0636 Global Credit Recovery, LLC Wells Fargo Global Credit Recovery, LLC Eagle Bank Global Mercer Holdings LLC PNC Bank K. B. Merrill Associates LLC Wells Fargo Rhino Capital Holdings LLC PNC Bank 5. At times material to this Indictment, LEDFORD controlled, among others, bank accounts at the following ?nancial institutions: Account Name Bank Last 4 Digits of Account Number De Ville Asset Management Limited Bank of America De Ville Asset Management Limited Bank of the West *6495 De Ville Asset Management Limited 8410 De Ville Asset Management Limited Citibank De Ville Asset Management Limited JPMorgan Chase Receivables Portfolio Interchange Inc. Bank of America Riverwalk Debt Solutions, Inc. Riverwalk Debt Solutions, Inc. Citibank 5324 Riverwalk Financial Corporation Bank of America *8932 *895 8 JBL Holdings LLC Bank of America *2414 BL Holdings LLC *0401 BL Holdings LLC Citibank *5340 BL Holdings LLC PMC *0482 Case Document 1 Filed 09/11/18 Page 3 of 29 6. At all times material to this Indictment, consumers in the United States had outstanding debts to consumer lenders, including to credit card issuers, such as banks, to car and truck ?nance companies, to retail companies, and to student loan lenders. From time to time, consumer lenders sold to third parties, either directly or through brokers, portfolios of consumer debt ("consumer debt portfolios"); the consumer debt portfolios were typically identi?ed by the total number of consumer accounts, the face value of the total indebtedness, and the consumer lender. THE SCHEME TO DEFRAUD 7. From in and around January 2013 and continuing until the present, in the District of Maryland and elsewhere, the defendants, KEVIN B. MERRILL JAY B. LEDFORD, CAMERON R. JEZIERSKI, and others known and unknown to the Grand Jury, knowingly and willfully devised and intended to devise a scheme and arti?ce to defraud investors in consumer debt portfolios of more than $364 million and to obtain money and property in excess of $364 million from investors in consumer debt portfolios by means of materially false and fraudulent pretenses, representations and promises ("the scheme to defraud"), in that MERRILL, LEDFORD and JEZIERSKI: a. purported to invest in consumer debt portfolios and offer to potential investors opportunities to invest with them, when in fact, MERRILL, LEDFORD and JEZIERSKI in emails, by telephone, and in promotional materials falsi?ed the actual seller of the consumer debt portfolio, the actual purchase price of the consumer debt portfolio from the seller, the nature and fact of MERRILL and/or participation in the transaction, and at times created ?ctitious transactions; b. purported to sell or the consumer debt portfolios to independent, third party 3 Case Document 1' Filed 09/11/18 Page 4 of 29 buyers for a pro?t, when in fact there were no sales to independent third party buyers; c. purported to ?collect? consumer debt payments on the portfolios, when in fact, MERRILL, LEDFORD and JEZIERSKI in?ated or invented the collection reports they provided to investors; d. purported to pay pro?ts to investors from successful "?ips" or collections from consumer payments on the debt portfolios, when in fact, MERRILL, LEDFORD and JEZIERSKI used money from investors to pay purported pro?ts and/or collections to investors, including using rte-investments from investors to fund payments to them of their purported pro?ts and/or collections; and e. purported to provide third party documentation to the investors of their actions, when in fact MERRILL, LEDFORD and JEZIERSKI created imposter companies and their bank accounts, shell companies and their bank accounts, falsi?ed bank wire transfer records and bank statements, created false consumer debt portfolio overviews and sales agreements, and created false collection reports; and undertook all these fraudulent actions while MERRILL, LEDFORD and EZIERSKI personally enriched themselves and concealed their diversion of over $73 million of investors' monies to purchase luxury automobiles, purchase and/or renovate high end houses in Maryland, Texas, Nevada, and Florida, buy a boat, watches, jewelry, and collectibles, acquire a share in ajet plane, gamble at casinos, and support a lavish lifestyle. THE CONSPIRACY CHARGE 8. From in and around January 2013 through the present, in the District of Maryland and elsewhere, the defendants KEVIN B. MERRILL JAY B. LEDFORD, and CAMERON R. JEZIERSKI Ca?s-e Document 1 Filed 09/11/18 Page 5 of 29 did knowingly and willfully conspire, combine, confederate, and agree with each other and with other persons known and unknown to the Grand Jury, to commit wire fraud, that is to knowingly execute and attempt to execute the scheme to defraud through the use of interstate wires in violation of Title 18, United States Code, Section 1343. THE PURPOSE OF THE CONSPIRACY AND SCHEME TO DEFRAUD 9. The purpose of the conspiracy and scheme to defraud was for MERRILL, LEDFORD, and JEZIERSKI, the co?schemers and co-conspirators, to persuade, and attempt to persuade, investors to use interstate wire transfers to send in excess of $364 million to bank accounts controlled by MERRILL, LEDFORD and JEZIERSKI for the purpose of investing in consumer debt portfolios and purported consumer debt portfolios so that MERRILL, LEDFORD and JEZIERSKI could use the invested monies to fund purported collection payments or purported proceeds from "?ips" to entice continued investor participation and recruitment of new investors all while MERRILL, LEDFORD and JEZIERSKI instead used those monies to pay expenses of the scheni'e to defraud and diverted monies for their personal bene?t. MANNER AND MEANS OF THE CONSPIRACY and SCHEME TO DEFRAUD 10. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD represented to investors and potential investors that MERRILL and LEDFORD were investing their funds in consumer debt portfolios, to be purchased directly from consumer lenders, and invited the investors and potential investors to invest funds alongside MERRILL and LEDFORD's funds, when in fact, MERRILL and LEDFORD often made no investment in the portfolios or faked their investment in the portfolios. Ca'se Document 1 Filed 09/11/18 Page part of the conspiracy and scheme to defraud that LEDFORD incorporated and controlled Receivables Portfolio Interchange, Inc., which MERRILL and LEDFORD held out to investors and prospective investors as an unaffiliated third-party seller of consumer debt portfolios. 12. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD represented to investors and potential investors a purported purchase price for consumer debt portfolio purchases which was either an in?ated price or a made up price for a ?ctitious transaction. 13.' It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD falsi?ed the purchase prices on consumer debt portfolio purchase agreements between their companies and consumer lenders and furnished the falsi?ed documents to investors and potential investors as though the agreements were genuine. 14. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD at times created a ?ctitious asset purchase agreement between a company they controlled and an actual consumer lender and invited investors and potential investors to invest in a non-existent transaction. 15. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD used the identity of an of?cer or employee of a consumer lender on the ?ctitious asset purchase agreement and forged the bank signature on the agreement to lend credibility to the false document and the fraudulent transaction. 16. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD falsely represented to investors'and potential investors that often within 90 days, consumer debt portfolios purchased by investors would be, and were, "?ipped" or sold to new, . third party buyers for a pro?t. Ca?se Document 1 Filed 09/11/18 Page part of the conspiracy and scheme to defraud that MERRILL and LEDFORD used the interstate banking system to wire transfer funds to investors which they falsely represented to be the pro?ts from their sales of the investors? portfolios to new, third party buyers; in fact, MERRILL and LEDFORD funded the wire transfers through new investors' monies or by persuading old investors to re-invest. 18. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD used the interstate banking system to wire transfer funds to investors which they falsely represented to be the results of collections on the investors' portfolios; in fact, MERRILL and LEDFORD funded the wire transfers through new investors' monies, by persuading old investors to re-invest, and through collections which were far smaller than MERRILL and LEDFORD represented. . 19. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD communicated with each other and with investors and potential investors through interstate wire communications including email, text messages, and telephone calls. 20. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD operated, and JEZIERSKI managed, collections centers at 1601 West Airport Freeway, Euless, Texas and 9151 Boulevard 26, North Richland Hills, Texas, to collect on some of the consumer debt portfoliOs they acquired; MERRILL, LEDFORD and JEZIERSKI toured the collections centers with investors and potential investors to lend credibility to their Operations; in fact, MERRILL and LEDFORD used any funds received from collections to fund the cash needs of the scheme to defraud, and MERRILL, LEDFORD and JEZIERSKI routinely in?ated or invented collection reports. . 21. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD caused JEZIERSKI to incorporate two companies in Texas, namely SCUSA 7 . Ca?se Document 1 Filed 09/11/18 Page 8 of 29 Financial, Inc., and NLEX, Inc., which companies were used as imposters for the consumer lender Santander Consumer USA, Inc., which uses the acronym and the consumer debt portfolio broker, National Loan Exchange Inc., which uses the acronym 22. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD caused JEZIERSKI to open a bank account at JP Morgan Chase, Richland Hills, Texas, ending in in the name of the imposter company, SCUSA Financial, and a bank account ending in at JP Morgan Chase, North Richland Hills, Texas, in the name of the imposter company, NLEX, so that when LEDFORD and MERRILL directed investors to send funds to the imposter bank accounts, the wiring instructions fostered a belief in the investors that their funds had purchased consumer debt portfolios directly from. a true lender or broker, but LEDFORD, MERRILL and JEZIERSKI in fact controlled the funds. 23. It was a part of the conspiracy and scheme to defraud that JEZIERSKI, at the direction of MERRILL and LEDFORD, immediately transferred investors' funds from the bank accounts of the imposter companies to bank accounts controlled by MERRILL and LEDFORD. 24. It was a part of the conspiracy and scheme to defraud that MERRILL and LEDFORD diverted investors? funds to their personal bene?t to fund lavish lifestyles and the purchase of a. . over 20 high end automobiles; b. at least nine (9) real estate purchases and/or renovations, including 1. 1848 Circle Road, Towson, MD 21204; 2. 1055 Lane, Naples, FL 341102; 3. 27776 Sharp Road, Easton, MD 21601; 531 Hampton Lane, Towson, MD 21204; 5. 3018 Susanne Court, Owings Mills, MD 21117; 8 Ca?se Document 1 Filed 09/11/18 Page 9 of 29 6. 1718 Greenspring Valley Road, Stevenson, MD 21153; 7. 9017 Grove Crest Lane, Las Vegas, NV 89134; 8. 1132 Glade Road, Colleyville, TX 76034; and 9. 1650 Cedar Hill Dallas, TX 75208 c. over $8.3 million in watches, jewelry, and collectibles; and (1. over $25 million in casino gambling. 18 U.S.C. ?1349 CaSe Document 1 Filed 09/11/18 Page 10 of 29 COUNT Two Wire Fraud The Grand Jury for the District of Maryland further charges: 1. The allegations of Count One, Paragraphs 1-7 and 9-24 are incorporated by reference. 2. On or about December 6, 2017, MERRILL emailed the representative of a prospective investor group ("Investor #1 and falsely represented that Global Credit Recovery was awarded the bid by Santander to purchase a $316 million Santander debt ?le for $15.8 million, more or less. GCR Mercer Holdings LLC, which was controlled by MERRILL, was to take title to the Santander ?le; closing was represented to occur on December 27, 2017. 3. On or about December 25, 2017, LEDFORD emailed a Riverwalk Financial Corporation employee with instructions to create a debt portfolio with 33,881 accounts and a principal value of $315,917,096.04 from four portfolios that DeVille Asset Management Limited had acquired or would acquire from Santander. 4. On or about December 26, 2017, MERRILL emailed Investor Group #1 a link to a purported Purchase Sales Agreement (PSA) between Santander and GCR Mercer Holdings, LLC. 5. On or about December 27, 2017, LEDFORD emailed MERRILL the signature page from the purported Purchase Sales Agreement between Santander and GCR Mercer Holdings, LLC, which bore the forged signature of an actual Santander employee SB. 6. On or about December 27, 2017, MERRILL signed the fraudulent Purchase Sales Agreement that contained the forged signature of SB. and emailed it back to LEDFORD. 7. Investor Group #1 agreed to fund 90 of the purported acquisition of the $316 million debt file from Santander, namely $14,216,269.32, while MERRILL falsely claimed that 10 Document 1 Filed 09/11/18 Page 11 of 29 he would fund the remaining 10% of the transaction or $1,579,585.48, through Delmarva Capital. 8. On or about April 23, 2018, LEDFORD sent an email to MERRILL and to an investor representative for Investor Group #1 which attached multiple Portfolio Sales Agreements including the fraudulently created $316 million Santander debt portfolio purchase but with the forged signature redacted. THE CHARGE 9. On or about December 28, 2017, in the District of Maryland, the defendants, KEVIN B. MERRILL JAY B. LEDFORD and CAMERON R. JEZIERSKI, for the purpose of executing the scheme and arti?ce to defraud, caused to be transmitted in interstate commerce, writings, signs and symbols, namely a wire transfer of investor funds totaling $14,216,269.32 from Investor Group #l's account at Texas Capital Bank, NA, Dallas, Texas, to Global Mercer Holdings, account ending in at PNC Bank, Towson, Maryland. 18 U.S.C. 1343 11 Ca?e Document 1 Filed 09/11/18 Page 12 of 29 Wire Fraud The Grand Jury for the District of Maryland further charges: 1. The allegations of Count ?One, Paragraphs 1?7 and 9-24 are incorporated by reference. 2. The allegations of Count Two, Paragraphs 1-8 are incorporated by reference. 3. On or about December 28, 2017, in the District of Maryland, the defendants, KEVIN B. MERRILL JAY B. LEDFORD, and CAMERON R. JEZIERSKI for the purpose of executing the scheme and arti?ce to defraud, transmitted and caused to be transmitted in interstate commerce, writings, signs and symbols, namely a wire transfer of $15,795,854.80 from Global Mercer Holdings LLC's bank account ending in at PNC Bank, Towson, Maryland to imposter SCUSA Financial, Inc., bank account ending in at JPMorgan Chase, North Richland Hills, Texas, which wire transfer included $14,216,269.32 from Investor Group #1 and what purported to be 10% share of the investment, that is, $1,579,585.48. 18 U.S.C. 1343 12 Ca'se Document 1 Filed 09/11/18 Page 13 of 29 Wire Fraud The Grand Jury for the District of Maryland further charges: 1. The allegations of Count One, Paragraphs 1-7 and 9-24 are incorporated by reference. 2. The allegations of Count Two, Paragraphs 1-8 are incorporated by reference. 3. On or about December 29, 2017, in the District of Maryland, the defendants, KEVIN B. MERRILL and JAY B. LEDFORD for the purpose of executing the scheme and arti?ce to defraud, transmitted and caused to be transmitted in interstate commerce, writings, signs and symbols, namely a wire transfer of $1,579,585.48 from De Ville Asset Management Limited account ending in at Bank of America, Colleyville, Texas, to Delmarva Capital account at Wells Fargo Bank ending in in Lutherville, Maryland, for the purpose of returning "show money"-- that is, MERRILL's purported 10% investment in the Santander $316 million portfolio. 18 U.S.C. 1343 13 Ca?e Document 1 Filed 09/11/18 Page 14 of 29 COUNT FIVE Wire Fraud The Grand Jury for the District of Maryland further charges: 1. The allegations of Count One, Paragraphs 1-7 and 9-24 are incorporated by reference. 2. The allegations of Count Two, Paragraphs 1-8 are incorporated by reference. 3. On or about December 29, 2017, in the District of Maryland, the defendants, KEVIN B. MERRILL and JAY B. LEDFORD for the purpose of executing the scheme and arti?ce to defraud, transmitted and caused to be transmitted in interstate commerce, writings, signs and symbols, namely a wire transfer of $612,133.46, which was ?inded by the investor funds described in Count Two, from De Ville Asset Management Limited account ending in at Bank of America in Colleyville, Texas, to Global Credit Recovery, LLC's account ending in at Eagle Bank, Bethesda, Maryland. 18 U.S.C. 1343 14 Cas?e Document 1 Filed 09/11/18 Page 15 of 29 Wire Fraud The Grand Jury for the District of Maryland further charges: 1. The allegations of Count One, Paragraphs 1-7 and 9-24 are incorporated by reference. 2. In and around December 2017, LEDFORD and JEZIERSKI acquired a $33 million in face value consumer debt portfolio of BBVA Compass Bank through National Loan Exchange, Inc. for $1.69 million. 3. On or about January 5, 2018, LEDFORD emailed MERRILL, who forwarded the email to the representative of Investor Group the email and its attachments falsely represented that the $33 million BBVA Compass Bank consumer debt portfolio was being offered for the purchase price of $2.7 million and that closing was scheduled for January 18, 2018. 4. On or about January 11, 2018, LEDFORD emailed MERRILL, who forwarded the email to the representative of Investor Group a document which purported to be a draft Purchase Sales Agreement between BBVA Compass Bank and GCR Mercer Holdings LLC. 5. On or about January 23, 2018, LEDFORD emailed MERRILL a PSA ready for GCR signature.? The attachment to the email was a Purchase Sales Agreement, which used the in?ated purchase price of $2.7 million and contained the forged signature of BBVA Compass Bank of?cer and employee, P.G. I 6. On or about January 26, 2018, MERRILL emailed a representative of Investor Group #1 ?New deal executed for the $33 million BBVA Compass Bank consumer debt portfolio with an attachment titled which again used the false purchase price of $2.7 million and the forged signature of BBVA Compass Bank of?cer and 15 Document 1 Filed 09/11/18 Page 16 of 29 employee P.G, as wellias signature as a representative of GCR Mercer Holdings, LLC. 7. In and around January 2018, MERRILL emailed a representative of Investor Group #1 an Asset Purchase Overview for a $91 million Alta student loan debt ?le which was available for $8,002,809.79 and was being "purchased directly from the original issuers." In fact, LEDFORD and JEZIERSKI had created the $91 million Alta student loan debt ?le from previously purchased debt portfolios and added the forged signature of Alta College'sofflcer and employee, NB. 8. MERRILL falsely represented to Investor Group #1 that through Rhino Capital, MERRILL intended to supply 10% of the funds to purchase both the $33 million BBVA Compass Bank portfolio and the $91 million Alta student loan debt portfolio. 9. Investor Group #1 agreed to fund a portion of the purported acquisition of both the $33 million BBVA Compass Bank and the $91 million Alta student loan debt portfolios. THE CHARGE i 10. On or about January 24, 2018, in the District of Maryland, the defendants, KEVIN B. MERRILL JAY B. LEDFORD, and CAMERON R. JEZIERSKI for the purpose of executing the scheme and artifice to defraud, caused to be transmitted in interstate commerce, writings, signs and symbols, namely a wire transfer of investor funds in the amount of $9,644,552.00 from Investor Group #l's account at UBS Financial Services, Jersey City, New Jersey, to GCR Mercer Holdings LLC's account ending in at PNC Bank, Towson, Maryland. 18 U.S.C. 1343 16 CaSe Document 1 Filed 09/11/18 Page 17 of 29 COUNT SEVEN Wire Fraud The Grand Jury for the District of Maryland further charges: 1. The allegations of Count One, Paragraphs 1-7 and 9-24 are incorporated by reference. 2. The allegations of Count Six, Paragraphs 1-9 are incorporated by reference. 3. On or about January 25, 2018, in the District of Maryland, the defendants, KEVIN B. MERRILL JAY B. LEDFORD, and CAMERON R. JEZIERSKI for the purpose of executing the scheme and arti?ce to defraud, caused to be transmitted in interstate commerce, writings, signs and symbols, namely a wire transfer from GCR Mercer Holdings LLC's account at PNC Bank, Towson, Maryland of investor funds in the amount of $8,002,809.79 to imposter NLEX, Inc. account ending in at JPMorgan Chase Bank, North Richland Hills, Texas. 18 U.S.C. 1343 17 Case Documentl Filed 09/11/18 Page 18 of 29 COUNT EIGHT Wire Fraud The Grand Jury for the District of Maryland further charges: 1. The allegatiOns of Count One, Paragraphs 1-7 and 9-24 are incorporated by reference. 2. The allegations of Count Six, Paragraphs 1 - 9 are incorporated by reference. 3. On or about January 25, 2018, in the District of Maryland, the defendants, KEVIN B. MERRILL JAY B. LEDFORD, and CAMERON R. JEZIERSKI, for the purpose of executing the scheme and arti?ce to defraud, caused to be transmitted in interstate commerce, writings, signs and symbols, namely a wire transfer from GCR Mercer Holdings LLC's account ending in at PNC Bank, Towson, Maryland of investor funds in the amount of $2,713,358.74 to JEZIERSKI's imposter NLEX, Inc., account ending in at JPMorgan Chase Bank, North Richland Hills, Texas. 18 U.S.C. 1343 18 Case Document 1 Filed 09/11/18 Page 19 of 29 COUNT NINE Identity Theft The Grand Jury for the District of Maryland further charges: 1. The allegations of Count One, Paragraphs 1-7 and 9-24 are incorporated by reference. 2. The allegations of Count Six, Paragraphs 1?9 are incorporated by reference. 3. On or about December 27, 2017, in the District of Maryland and elsewhere, the defendants, KEVIN B. MERRILL and JAY B. LEDFORD did knowingly transfer, possess, and use, without lawful authority, a means of identi?cation of another person, that is, MERRILL and LEDFORD transferred, possessed, and used the name and signature of an employee and of?cial of Alta College, namely N.B., and the name and signature of an employee and official of BBVA Compass Bank, namely P.G., which is personal identifying information, during and in relation to Wire Fraud, 18 U.S.C. 1343, as alleged in Count Six of this Indictment. 18 1028A(a)(1), 18 U.S.C. 2 19 CaSe Document 1 Filed 09/11/18 Page 20 of 29 COUNT TEN Money Laundering Conspiracy The Grand Jury for the District of Maryland further charges: 1. From in and around January 2013 through the present, in the District of Maryland and elsewhere, the defendants KEVIN B. MERRILL and JAY B. LEDFORD did knowingly combine, conspire, and agree with each other and with other persons known and unknown to the Grand Jury to commit offenses against the United States in violation of Title 18, United States Code, Section 1956 and Section 1957, that is: a. to knowingly conduct and attempt to conduct ?nancial transactions affecting interstate commerce, which transactions involved the proceeds of speci?ed unlawful activity, that is, wire fraud as described in Counts One - Eight, knowing that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of speci?ed unlawful activity, and that while conducting and attempting to conduct such ?nancial transactions, knew that the property involved in the ?nancial transactions represented the proceeds of some form of unlawful activity, in violation of Title 18, United States Code, Section and b. to knowingly engage and attempt to engage, in monetary transactions by, through, and to a ?nancial institution, affecting interstate commerce, in criminally derived pr0perty of a value greater than $10,000, such property having been derived from a speci?ed unlawful activity, that is, wire fraud as described in Counts One - Eight, in violation of Title 18, United States Code, Section 1957. 20 Case Document 1 Filed 09/11/18 Page 21 of 29 MANNER AND MEANS OF THE MONEY LAUNDERING CONSPIRACY 2. It was a part of the money laundering conspiracy for MERRILL and LEDFORD to conceal the proceeds from the wire fraud offenses through a purchase of real property. 3. It was a part of the money laundering conspiracy for LEDFORD to manage the cash ?ow of the wire fraud offenses. 4. It was a part of the money laundering conSpiracy that when MERRILL decided to acquire the property located at 1055 Lane, Naples, Florida 34102, for an approximate purchase price of $10.5 million, LEDFORD acted as accountant in preparing and explaining ?nancial statements for businesses to the prospective mortgage lender. 5. It was a part of the money laundering conspiracy for LEDFORD to transfer in interstate commerce proceeds of the scheme to defraud for MERRILL's use in partially ?mding purchase of 1055 Lane, Naples, Florida 34102. 6. It was a part of the money laundering conspiracy that on or about January 26, 2018, LEDFORD transferred $1.3 million in interstate commerce from DeVille Asset Management Limited's account ending in at Bank of America, Colleyville, Texas to MERRILL's Rhino Capital Holdings, LLC's account ending in at PNC Bank, Lutherville, Maryland. 7. It was a part of the money laundering conspiracy that on or about January 31, 2018, LEDFORD transferred $3 million in interstate commerce from Riverwalk Financial Corporation's account ending in account at Bank of America, Colleyville, Texas to MERRILL's Rhino Capital Holdings, LLC's account ending in at PNC Bank, Lutherville, Maryland. 8. It was a part of the money laundering con5piracy that on or about February 20, 2018, MERRILL transferred $2,506,794.49 in interstate commerce from Rhino Capital 21 CaSe Document 1 Filed 09/11/18 Page 22 of 29 Holdings, account ending in at PNC Bank, Lutherville, Maryland to account ending in at inemark National Bank Trust, Fort Myers, Florida for the purchase of 1055 Lane, Naples, FL, 34102. 9. It was a part of the money laundering conspiracy that on or about February 21, 2018, MERRILL transferred $2 million in interstate commerce from MERRILL's Rhino Capital Holdings, LLC's account ending in at PNC Bank, Lutherville, Maryland to account ending in at Finemark National Bank Trust, Fort Myers, Florida for the purchase of 1055 Lane, Naples, FL, 34102. 18 Use. 1956(h) 22 CaSe Document 1 Filed 09/11/18 Page 23 of 29 COUNTS ELEVEN - FOURTEEN Financial Transactions in Excess of $10,000 in Fraud Proceeds The Grand Jury for the District of Maryland further charges: 1. The allegations of Count Ten, Paragraphs 2-9 are incorporated by reference. 2. On or about the dates set forth below, in the District of Maryland and elsewhere, the defendants KEVIN B. MERRILL anfd JAY B. LEDFORD did knowingly engage in a monetary transaction in criminally derived property having a value greater than $10,000 and which was derived from speci?ed unlawful activity, that is a wire fraud con5piracy and wire fraud in violation of 18 U.S.C. 1349 and 1343, as described in Counts One - Eight of this Indictment, in that MERRILL and LEDFORD did withdraw and transfer the sums set forth below through the bank accounts described below for the acquisition of 1055 Lane, Naples, Florida 34102, which affected interstate commerce: Count Date Sending Bank Account Amount of Receiving Bank Name No. Transaction I Account No. Eleven 1/26/18 LEDFORD's DeVille $1.3 million 7 MERRILL's Rhino .- Asset Management Ltd?s - Capital Holdings, LLC Bank of America account 1 account ending in ending in I at PNC Bank, i I Colleyville, TX Lutherville, MD Twelve I 1/31/18 LEDFORD's Riverwalk $3 million I MERRILL's Rhino Financial Corporation?s . Capital Holdings, LLC account ending in i account ending i at Bank of America, at PNC Bank, Colleyville, TX - Lutherville, MD 23 Case Document 1 Filed 09/11/18 Page 24 of 29 Count I Date Sending Bank Account Amount of IReceiving . I Name No. Transaction I Account No. I Thirteen 2 2/20/18 I Rhino Capital $2,506,794.49 if Account ending in I Holdings, account I at Finemark I ending in at PNC National Bank Trust, I I,Bank Lutherville, MD Fort Myers, Florida I Fourteen I 2/21/18 Rhino Capital $2 million Account ending in 4701 Holdings, account at Finemark National I ending 111 at PNC Bank Trust, Fort I I I Bank, Lutherville, MD 18 U.S.C. 1957; 18 U.S.C. 2 24 Myers, Florida CaSe Document 1 Filed 09/11/18 Page 25 of 29 WIRE FRAUD The Grand Jury ?lrther ?nds that: 1. Pursuant to Rule 32.2, Fed. R. Crim. P., notice is given to the defendant KEVIN B. MERRILL, that upon conviction of offenses in violation of 18 U.S.C. 1349 and 1343 as alleged in Counts One - Eight, the United States will seek forfeiture as part of any sentence of all property, real and personal, which constitutes and is derived from proceeds that the defendant obtained directly and indirectly from the offense, including, but not limited to, the following: a sum of money equal to the value of the proceeds of the offense retained by MERRILL, which amount is at least $39 million; 2. As a result of the offenses set forth in Counts One Eight, the defendant, KEVIN B. MERRILL shall forfeit to the United States all property, real or personal, which constitutes or is derived from proceeds traceable to the conspiracy to commit wire fraud and the wire fraud offenses, including but not limited to, the following: Real Property: 1. 1848 Circle Road, Towson, MD 21204; 2. 1055 Lane, Naples, FL 34102; 3. 27776 Sharp Road, Easton, MD 21601; 4. 531 Hampton Lane, Towson, MD 21204; 5. 3018 Susanne Court, Owings Mills, MD 21117; and 6. 1718 GreeHSpring Valley Road, Stevenson, MD 21153; 25 Case Document 1 Filed 09/11/18 Page 2014 Ford Explorer, VIN 1FM5K8GT7EGA78090, titled to Amanda Marie Schlissler (Also Known As Amanda Merrill, Wife Of Kevin Merrill) in Maryland, License Plate Number 5BK0031 2014 Lamborghini Aventador Roadster, VIN ZHWURIZD4ELA02398, titled to - Rhino Capital Holdings LLC In Montana, License Plate Number 7SEVN7 . 2014 Mercedes-Benz S63, VIN WDDUG7JB1EA061984, titled to Rhino Capital Holdings LLC In Montana, License Plate Number 739152B 2015 BMW VIN WB10D210XFZ352440, titled to Kevin Bryan Merrill in Maryland 2015 Harley-Davidson Night Rod Special Edition VIN titled to Kevin Bryan Merrill in Maryland 2016 Ferrari 488 Coupe, VIN ZFF79ALAXG0214388, historically titled to Rhino Capital Holdings, LLC in Montana 2017 Audi R8 5.2 Plus Coupe, VIN WUAKBAFX1H7902028, titled to Rhino Capital Holdings LLC in Montana, License Plate Number BST385 2017 Lamborghini Huracan Convertible, VIN ZHWURZZFIHLA07683, historically titled to Rhino Capital Holdings, LLC In Montana 2017 Land Range Rover, VIN titled to Rhino Capital Holdings LLC in Montana, License Plate Number BWC041 2017 Land Range Rover Sport, VIN SALWZ2FE6HA145282, titled to Rhino Capital Holdings LLC in Montana, License Plate Number 2017 Porsche 911 Turbo S, VIN WPOAD2A96H8167075, titled to Rhino Capital Holdings LLC in Montana, License Plate Number BST540 2017 Rolls Royce Dawn Convertible, VIN SCA666D57HU107107, titled to Rhino Capital Holdings LLC in Montana, License Plate Number CAV701 2017 Rolls Royce Wraith Coupe, VIN SCA665C58HUX86607, titled to Rhino Capital Holdings LLC in Montana, License Plate Number BWC226 2018 McLaren 7208 Coupe, VIN SBM14DCA9IW001142, titled to Rhino Capital Holdings LLC in Montana, License Plate Number CAV699 26 Case Document 1 Filed 09/11/18 Page Boat 2008 Bugatti Veyron, VIN VF9SA25C78M795164, titled to-Rhino Capital Holdings LLC in Montana in 2018, License Plate Number CAV700 2013 Ferrari California Convertible, VIN ZFF65TJA7D0195090, titled to Rhino Capital Holdings LLC in Montana, License Plate Number 711582B 2014 BMW M6 Gran Coupe, VIN WBS6C9C51EDV73690, titled to Rhino Capital Holdings LLC in Montana, License Plate Number 7242578 2014 Ferrari F12 Berlinetta, VIN ZFF674UFA2E0199037, titled to Rhino Capital Holdings LLC in Montana 2014 Pagani Huayra, VIN ZA9H11RAYYSF76034, titled to Rhino Capital Holdings LLC in Montana, License Plate Number BZZ743 2015?Mercedes Benz S63, VIN titled to Rhino Capital Holdings LLC in Montana, License Plate Number 711582B 2015 Mercedes Benz S63, VIN titled to Rhino Capital Holdings LLC in Montana, License Plate Number BMV416 2017 Cadillac Escalade ESV, VIN 1GYS4JKJ7HR194939, titled to Rhino Capital Holdings LLC in Montana, License Plate Number BWC034 2017 Lamborghini Aventador, VIN titled to Rhino Capital Holdings LLC in Montana, License Plate Number BSC624 2018 Ferrari 488 Spider, VIN ZFFSOAMA4J 0228310, titled to Rhino Capital Holdings LLC in Montana, License Plate Number BZZ746 2018 Lamborghini Huracan, VIN ZHWUS4ZF6JLA10746, titled to Rhino Capital Holdings LLC in Montana, License Plate Number CEY700 1. 2018 Formula 350 Crossover Bowrider Sportcruiser, Hull Number (HIN) TNRD1491C818, bearing registration number FL4747RP, titled in Florida to Kevin B. Merrill (1. Miscellaneous 1. 'Cash Surrender Value of Guardian Policy Number 6921245 held in the name of KEVIN 2. KEVIN B. MERRILL's interest in the Aircraft G200, Serial Number: 152, Registration Number: N52AJ, Engines: Pratt Whitney Canada Model PW306A, Serial Numbers: PCE-CC0246 and PCE-CC0373 with others held through Rhino Capital Holdings; 27 Case Document 1 Filed 09/11/18 Page 28 of 29 3. A Platinum and Diamond Ring bought from and appraised by Dominion Jewelers: Center stone consists of one radiant cut diamond weighing 5.10 cts, certi?ed by GIA report #2155084402 and side stones consist of 14 square radiant diamonds weighing 4.20 total set into a platinum ladies engagement ring. 4. Seven (7) Richard Mille Watches all appraised by Dominion Jewelers in July August 2017. 3. Pursuant to Rule 32.2, Fed. R. Crim. P., notice is given to the defendant JAY B. LEDFORD, that upon conviction of offenses in violation of 18 U.S.C. 1349 and 1343 as alleged in Counts One - Eight, the United States will seek forfeiture as part of any sentence of all property, real and personal, which constitutes and is derived from proceeds that the defendant obtained directly and indirectly from the offenses, including, but not limited to, the following: a sum of money equal to the value of the proceeds of the offense retained by LEDFORD, which amount is at least $34.6 million; 4. As a result of the offenses set forth in Counts One - Eight, the defendant, JAY B. LEDFORD shall forfeit to the United States all property, real or personal, which constitutes or is derived from proceeds traceable to the conspiracy to commit wire fraud and the wire fraud o?enses, including but not limited to, the following: a. Real Property: 1. 9017 Grove Crest Lane, Las Vegas, NV 89134; 2. 1132 Glade Road, Colleyville, TX 76034; 3. 1650 Cedar Hill Dallas, TX 75208; 1. 2016 Ferrari 488, VIN ZFF79ALA3G0217973, registered to JBL Holdings, LLC in Montana, bearing license plate number 778209B 2. 2016 Tesla Model S, VIN SYJSA1E49GF155262, registered to Lalaine Barretto Hughes in Nevada 28 Case Document 1 Filed 09/11/18 Page 29 of 29 3. 2015 Bentley Flying Spur, VIN SCBET9ZA7FC042592, titled to Jay Brian Ledford in Texas, license plate number PST 7942 0. Miscellaneous: 1. A Platinum and Diamond Three Stone Ring purchased from, and appraised by Eiseman Jewels, Dallas, Texas in December 2016; the ring is centered by a 7.32 carat emerald cut diamond with two tapered baguette cut diamonds, one on each side, which have a combined weight of 0.51 carats. 2. A Platinum and Diamond Line Bracelet purchased from and appraised by Eiseman Jewels on December 26, 2016. A Platinum and Diamond Line Bracelet set with forty seven emerald cut diamonds that have a combined total weight of 23.26 carats. 3. A Breitling for Bentley, Bentley B06S watch, Serial Numberz'4311996. 5. 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; 0. has been placed beyond the jurisdiction of the court; (1. has been substantially diminished in value; or e. has been commingled with other property which cannot be divided without dif?culty, the United States of America shall be entitled to forfeiture of substitute property. 28 U.S.C. 2461(c); 18 U.S.C. 18 U.S.C. 1956(c)(7); 18 use. 1961(1); 21 U.S.C. ?853(p) Robert K. Hur United States Attorney .. I, . nEnActE Q. ?/52 ??lneTpErs?on 7 C7 . Date 29