State v. Mr. W (DMC No. 13130) – Federal Bank and Wire Fraud ($1,000,000), Felony Fraud Schemes ($450,000 Misappropriated from Wire Amount), Felony Money Laundering, Felony Sale of an Unlicensed Security and Felony RICO – Not Charged – FBI Investigated.

Mr. W had two co-defendants that were in the process of trying to raise money for a new energy company venture. They had a primary investor out of China who was to wire $1 million to a bank in Singapore to begin the investment. The idea was that Mr. W and the two co-defendants were to purchase AAA rated “paper,” which they would buy at ¢.85 and sell at ¢.92. By doing these securities transaction sales, they were attempting to raise $5 billion for the energy startup company. These types of transactions are illegal in the United States.

After the initial $1 million wire was sent out, $100,000 was immediately misappropriated by one of the co-defendants. The other co-defendant took $450,000, and the remaining $450,000 was split between all three co-defendants in order to cover past expenses.

The FBI became involved on behalf of the alleged victim, and they issued a subpoena for Mr. W to testify in a Grand Jury proceeding in the New Jersey District Court. We then became involved and began talking to the FBI agent and the Assistant U.S. Attorney General involved in the case. We were able to work with them in order to show that one of the other co-defendants should be the actual target of the investigation. We ended up providing the documents that they were seeking, and we also made Mr. W available for interviews. Mr. W was never charged with any crimes, and he has no criminal record.