Friday, May 11, 2007
Time and Again (04-25-07)
On the 24th Mr. Julian was in court. The day before he retained a lawyer which created a very long delay. Our trial date was moved to October 20th. Don’t panic, there is much transpiring that makes that meaningless. The case is framing up nicely. Actually I couldn’t be more content at this moment. Bill will be moving over to Dublin soon and will look at the evidence to see if he wants to take a deal or come along for the ride. I have a desire for him but each man walks alone before God. Regardless of his choice it does not affect our plan. He does bring with him some interesting pieces of evidence that verify what we’ve been thinking about our enemy. I truly wish I could garner one bit of the concern I see on here about our well-being but I can find no factual basis. I am so underwhelmed by the threat that I struggle more with boredom. Why is it so hard for you to imagine that if God calls you to a battle He will equip you. He is not like the US begging the bankers for more debt so they can give their army supplies. He has all the resources He needs. 30 years ago I began asking God for opportunities to impact my generation with the truth I was discovering. This prayer was not vanity. All my lessons were to train me for when that opportunity arrived. I didn’t have to look for it, it found me. I trusted God in the training and I trust Him in the battle. I am not or yet have been dazed or confused by any event in this course. That doesn’t mean I know the future or understand everything God tells me to do. What is sure is that this voice can be trusted. Soon I learn of His tactical brilliance, which helps remove the temptation to rely on my skill. My skills in the employ of God is the enemy defeating weapon. This will work for you also. Enjoy the next blog “Our Goose is Cooked.”
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13 comments:
First again! yep-peeee!
Whatever....
I post this qustion one more time just because I can.
What dose the fact that Bill Julians return and charges have to do with a case that he was not part of the charges that were brought befor the gran jury and the base for the charges against Kurt and Scott? I know that he was part of the group but lets take a look at this I don't recall the laws changing around anyones right for a speedy trial ( again the judge said that he stopped the clock not because of anything that the two locked up did he said he was doing it because of waiting for Bill)
So along the the lines of that what happen when Ferral and any others that they brought up on charges Why no big delay there ? he got a lawyer, deal or no deal so what is the deal?
They don't know if Bill will cope a deal either but we never saw a truial date movemenet that was 8 months out for that and why in the hell dose anyone need 8 months for the discovery and that seem like just another way the good old boy are abusing there power to delay this in hope of depleating the numbers involved and all that .
You know being how Goggels is so happy to jump in and do anything the Giv't asks them to and in the process make you think it's all fine (good example of that is the forced reg. of online companies like pharms. that now to be included in a shearch from Goggles they must have a US pharm lic. or they don't get seen or seeen but the adderess you got to when you ckick it is not at all the same and nothing to do with the site you were given as a result in your ssearch)
That my freinds is selective cencorship and by my mind not at all what the net was ment to be.
Its just a short time before the Gov't will have the 'Net' all rapped up with things like this so thattheir only letting you see what they want to.
Sound all to much like the ways they have used the New's Media and others mass information forums out there.
Shame really when you think this was the last and best form you could goto and find things that you just wer'nt getting from anywhere else.
That and look how the numbers dropped off with the change in format on this Blog.
Being how this was such Blog was unexpected and how it is working to keep people up and intouch with the wiorking around this whole thing they must be trilled with how well it's wokin.
I thought we were that country where everyone was Free to speak and that the Gov't did not cause the info to be stopped in anyway shape or form. Its looking more like a country where you are told what you can say or do and not one where you have the Free Chooses we have boosted s being
You'all better be carefyl about how much you willing to buy into the terroor , and all the rest of the other crap feed up as excusses for have thing like this pretty soon you just might not hav to think the'll tell whet to thinkand do.
Land of the Free and your Constitution written right to be so able to speak out about and thing with out fear of some thug like Gov’t stopping you. When you wake up and whets left of it is gone then what ?
Do you think it can be give or taken back so easily or at the extreme do you think your self and this country are so big they will never be brought down.
How do you think these countries that are mostly made up of poor people and very few rich get that way and then you think the one’s that are rich and in control are going to make it easy to get it back to the freedom and wealth for most and all that?
Not a chance look at the Feds res. Bankers and do you think they will go quite if told to close up shop. We have seen the results for that many times haven’t we .
Abe L, Kennedy , Ragan, Carter, the last time the prez was the son of a former prez was when Adam and his son was and then there weren’t many people around to choose as today for that seat so again you’ll all better start looking and saying something about all this that goes on right in front of you before you can’t or more so it won’t be you that pays that price will it?
It so easy to see this stuff how in the hell can't you.
What a real good example of how people just don't think !
Who names their kid Bill Julian
or for the completly catatonisc state of mind out there.
BJ (you get it)
Now that has got to show you something and knowing how kids are in school I'll bett it was'nt a plus for him growing up got to be right up there with a name like Richard Head Or di&^$ ......you get the idea I hope!
Just pointing out the obvious to show the same about this dumbing up of the people in and around.
it just Amazed at the shit that is let to go on today and even when there is some group that wants to change things that are wrong like this story I saw this morning about the Banks and hoe they put a holed on your check when you deposit it but take the money out in a blink of an eye when someone else electronically dose the same .
But they do offer those nice sliding scales on how much they charge you for your account going in the negative for they doing that . let’s see what was that scale again …..hum.. right you start at $19 or so and if you get one overdraft whether it’s paid or not with protection or they just pay it because they think its low enough of an amount they can without worry like what $25 bucks and then if it’s the second time they charge you $35 up from that $19 . How nice for them ..
Anyway this site was a consumer site and offer you a chance to complain to congress and such but I thought as I read the form letter and there posting about this as the worded it
“Mr. Lawmaker please change the time that banks put hold on my local check deposits so that it is shorter and if not that …blah blah blah.. is was so much the tip of the problem when it comes to banks and their habits and directives when it comes to charging us.
When your making 60% of every miss place or wrong charge that get on to our statement and accounts it’s easy to see why they aren’t going to be changing it any time soon and at the rate people are getting up to speed about this stuff how can it get fixed . It like this you have a public that is made to be lacking the knowledge to understand even the basics around banking then you take that coupled by the Gov’t and the banks working to keep you that way and help out so that banks don’t have to much to worry about if the more like when they do these thing that make them tons of cash , rivers or fees and interest that is way out of balance to the return anyone can expect on the other side of that coin. It’s only just a fee months now that rates for anything you put your money into with regard to banks and savings to a level of 5. something and that’s still jack you got to be making in the 7, 8, 9 % range to make it work.
That’s it just my thoughts on how the Gov’t has done a good job making the masses so stupid they can keep doing what ever they want and so can banks and anyone for that matter as long as they do what the Gov’t want from them in all so un believable how the things that have happened in the past and today and more so with dumb ass in the Whitehouse (who by the way record time setting for one of his dumb ass remarked or diplomatic slip of the tongs and called the Queen on her visit a the equal of 173 year old with regard to her part and all the times she has been here to the U.S and he is such a u asssssss I can’t stand to think the world look at this gut and all as the example of the person that I would want to as in charge or competent for that matter to run a ice cream truck.
when you geet you deejay money, dun purr il all in e-glod
--------------------------------
E-gold Criminal Case Unsealed.
USA Moves To Seize Company In Its Entirety
http://www.moneynetnews.com/articles/53/1/E-gold-Criminal-Case-Unsealed--USA-Moves-To-Seize-Company-In-Its-Entirety/E-gold-Criminal-Case-Unsealed--USA-Moves-To-Seize-Company-In-Its-Entirety.html
-------------------------
TYRRANNY!! TRYANNY!!
WHAT DID ALEC JONAS SAYS....????
US Government Forces E-gold Redemptions - Seizes Gold
This article is Copyright 2007. You may re-publish for free if
left intact and only if you give credit with weblink back to
http://www.moneynetnews.com
===
In an unprecedented move on or just before Wednesday May 9th, 2007, the
United States of America has forced Omnipay et al E-gold to redeem all the
gold backing the 58 previously frozen accounts owned by e-gold, 1mdc,
icegold and a handful of other exchangers and customers to be liquidated
effective immediately to a us dollar account owned by the federal government.
According to the reduction in the gold bar list, the bar count
has dropped by 48 bars of approximately 400 oz each between May 3, and May 9.
This redemption totals USD $11.357 Million.
Date Gold Grams ($ Value)
03-05-07 3,489,436 77.015 Million
09-05-07 2,974,871 65.668 Milllion
Gold Bars value Sold: USD 11.357 Million
MoneyNetNews has learned from a reliable source that e-gold has been ordered
to hand over a fresh copy of the customer database when the redemption
is completed.
MoneyNetNews cannot confirm if all of the 48 bars redeemed account for
the forfeiture action of the United States. It is possible that a part
of this activity can be accounted for by increased volatility in e-gold's
general market.
Not only was E-gold / Omnipay ordered to convert gold (and silver) holdings
in the seized accounts into US Dollars, but that included their own
(Omnipay's, and E-gold's) frozen (seized) accounts. This will ultimately
result is great losses of value over time even if the victims of the seizures
are found to be innocent due to the in progress bull market in gold and bear
market in US Dollars.
The seizure order appears to be unrelated to the criminal case in progress
against E-gold and OmniPay in that the seizure of the accounts by the government
was done under a (separate) civil case, for which the Government has yet to file
anything.
By doing so, the government was able to seize accounts without having
to reveal anything to the owners of the accounts themselves. By law,
the government has 30, and possibly up to 90 days to file a complaint.
Until the government civil filing is done, none of the victims of the seizures
can possibly do anything to defend themselves, not even obtain information as
to why their accounts have been seized, or what they would have done wrong.
None of the victims of the account seizures have been advised of anything
officially at this time.
SHEEEEET! THEY GO ALL MY HYPIs!!
down the tubs; just lik the untied strays fo amerrycan of beans!
yep. good ole' uncle scam, the worlds BIGGEST HYIP by far!
shut everthins down!
shut the cunry down!
shut it down!
shut the lights off!
shut off the moosic!
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
Holding a Criminal Term
Grand Jury Sworn in on May 11, 2006
: Criminal No.
UNITED STATES OF AMERICA :
: GRAND JURY ORIGINAL
v. :
: VIOLATIONS:
E-GOLD, LTD. :
GOLD & SILVER RESERVE, INC. : 18 U.S.C. § 1956 (Conspiracy
DOUGLAS L. JACKSON, : to Launder Monetary Instruments);
BARRY K. DOWNEY, and :
REID A. JACKSON, : 18 U.S.C. § 371 (Conspiracy);
:
Defendants. : 18 U.S.C. § 1960 (Operation of
: Unlicensed Money Transmitting
: Business);
:
: D.C. Code § 26-1002 (Money
: Transmitting Without a License)
::
18 U.S.C. § 2 (Aiding
: and Abetting and Causing an Act to
: be Done); and
:
: 18 U.S.C. § 982(a)(1) (Criminal
Forfeiture).
I N D I C T M E N T
The Grand Jury Charges:
INTRODUCTION
At all times material to this Indictment:
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 1 of 28
2
Digital Currency
1. A “digital currency” was a medium of exchange offered over the Internet that was
purportedly backed by precious metals and offered users another option for conducting on-line
funds transfers. Digital currencies were generally marketed as offering global acceptance
without the need for conversion between national currencies, and were valued at fluctuating rates
tied to the price of a particular precious metal, particularly gold. Digital currency was used for
on-line commerce and for funds transfers between individuals for non-commercial purposes.
While technically speaking, the owner of digital currency could have had some right to acquire
the actual metal behind the currency, digital currency users typically converted their value into a
national currency when they wanted to take value out of the on-line system.
2. One of the earliest issuers of digital currency was e-gold, Ltd. (E-GOLD), which
operated via the Internet using the domain name www.e-gold.com, and began offering the digital
currency “e-gold” in 1996. E-GOLD appeared as the most popular and prominent digital
currency available on-line. E-GOLD was widely accepted as a payment mechanism for
transactions involving credit card and identification fraud, high yield investment programs and
other investment scams, and child exploitation. E-GOLD was not widely accepted by large or
mainstream vendors.
3. There were four primary steps involved in a financial transaction using “e-gold”:
(i) opening a digital currency account with E-GOLD; (ii) converting national currency into “egold”
to fund the account; (iii) using “e-gold” to buy or sell a good or service or transfer funds to
another person; and (iv) exchanging “e-gold” back into national currency. E-GOLD needed two
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 2 of 28
3
additional parties to complete these steps: (i) digital currency exchangers; and (ii) merchants or
individuals that accepted “e-gold” for the payment of goods and services or the transfer of funds.
4. Digital currency exchangers took national currency from customers and
exchanged it into “e-gold” for purposes of funding a new E-GOLD account, or increasing the
value of an existing account.
5. Exchangers also exchanged “e-gold” back into national currency and were
typically the only method by which users could obtain the value out of an E-GOLD account,
short of taking possession of the precious metal itself, which was not always possible and
practically never done. Each exchanger set its own terms and conditions on the types and
amounts of national currency that would be accepted for exchange. Some only accepted
transfers from banks or credit card accounts. Others accepted cash and money orders. Many
exchangers operated out of their home by using an Internet website to service customers, bank
accounts for accepting cash and other deposits, and post office boxes for receipt of checks and
other mailings.
6. Users around the world may register for a free E-GOLD account via the EGOLD
website and fund their account through a third party digital currency exchanger or
through E-GOLD’s own exchange service, which it called “OmniPay.” Once open and funded,
account holders could access their accounts through the Internet and conduct transactions with
other parties anywhere in the world. E-GOLD advertised on its website that it is “an alternative
Internet payment system” that “empowers people to use gold as money.” E-GOLD advertised
its service as “Better Money,” and “Internet Payments 100% backed by Gold.”
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 3 of 28
4
Money Transmitting Business Laws and Bank Secrecy Act Requirements
7. Under 18 U.S.C. Section 1960, it is a felony to conduct a money transmitting
business without the appropriate state license (in a state that has a licensing requirement and
punishes such operation as a misdemeanor or felony) or federal registration, or when it otherwise
involves the transportation or transmission of funds that are known to the defendant to have been
derived from a criminal offense or intended to be used to promote unlawful activity. The
majority of States and the District of Columbia require money transmitting businesses to obtain a
license and comply with the other regulatory requirements that apply to such licensed entities,
and punish the unlicensed operation of a money transmitting business as a misdemeanor or
felony. Likewise, the federal government requires money transmitting businesses to have
registered with the Financial Crimes Enforcement Network (FinCEN), a bureau of the
Department of Treasury, by December 31, 2001 if they were in existence before that date, and,
otherwise, within 180 days after the date the business was established.
8. The federal unlicensed money transmitting business statute, Title 18, United
States Code, Section 1960, was enacted in 1992 in order “to combat the growing use of money
transmitting businesses to transfer large amounts of the monetary proceeds of unlawful
enterprises.”
9. The term “money transmitting” under Section 1960(b)(2) includes “transferring
funds on behalf of the public by any and all means including but not limited to transfers within
this country or to locations abroad by wire, check, draft, facsimile, or courier.” The term
“State,” under Section 1960(b)(3) includes the District of Columbia.
10. In addition to being subject to the state licensing and federal registration
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 4 of 28
5
requirements, money transmitting businesses are subject to provisions of the Bank Secrecy Act.
The Bank Secrecy Act and its implementing regulations require, among other things, such
businesses to take steps to avoid laundering the proceeds of crime and to report suspicious
transactions to law enforcement authorities.
11. Pursuant to Title 31, United States Code, Section 5318(h), and the implementing
regulations (31 C.F.R. § 103.125), effective July 24, 2002, money transmitting businesses must
establish in writing an anti-money laundering program, minimally including:
(A) the development of internal policies, procedures, and controls;
(B) the designation of a compliance officer;
(C) an ongoing employee training program; and
(D) an independent audit function to test programs.
Therefore, unlike an ordinary business, money transmitting businesses have an independent
statutory and regulatory obligation to understand the nature and source of the funds they
transmit, and to ensure systems are in place to detect and prevent transactions made with the
proceeds of crime.
12. Pursuant to section 5318(g) of Title 31, United States Code, in conjunction with
31 C.F.R. § 103.20, money transmitting businesses are also required to file reports of suspicious
transactions (so-called “Suspicious Activity Reports” or “SARs”) in circumstances set forth by
statute and regulation, including where a transaction or pattern of transactions exceeding a
specified amount is in possible violation of a law or regulation.
13. E-GOLD and its associated entities were in the business of transmitting funds on
behalf of the public and were required to be licensed by the District of Columbia, the State of
Florida, and other States, to be registered with the federal government, and to establish an anti-
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 5 of 28
6
money laundering program.
Conspirators and their Roles
14. E-GOLD, LTD. (“E-GOLD”) was the issuer of the digital currency known as
“e-gold,” which functioned as an alternative payment system, was purportedly backed by stored
physical gold, and operated via the Internet using the domain name www.e-gold.com. E-GOLD
was incorporated in the British West Indies island nation of St. Kitts and Nevis, but was operated
out of Melbourne, Florida.
15. GOLD & SILVER RESERVE, INC. (“GSR”) was the operator of E-GOLD
and its respective website, and offered a digital currency exchange service (known as OmniPay)
for individuals wishing to purchase, transfer, and/or sell e-gold. OmniPay operated via the
Internet using the domain name www.omnipay.com.
16. DOUGLAS L. JACKSON (“DOUGLAS JACKSON”) was the co-founder,
Chairman, and Chief Executive Officer of E-GOLD and GSR (collectively “the E-GOLD
operation”). He also owned approximately fifty-five percent of GSR.
17. BARRY K. DOWNEY (“BARRY DOWNEY”) was the co-founder, Secretary,
Vice-President, and Director of E-GOLD and GSR. He also owned approximately twenty
percent of GSR.
18. REID A. JACKSON (“REID JACKSON”) was the Managing Director of EGOLD
and GSR. He also owned approximately three percent of GSR.
The E-GOLD Operation
19. The E-GOLD operation claimed publicly that it was not subject to the statutes
and regulations of the United States nor of any other country in which they operated or offered
their services, unlike legitimate financial institutions.
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 6 of 28
7
20. A valid email address was the only information required to open an E-GOLD
account. Although other contact information was requested, this information was not verified.
E-GOLD advertised on its website that there are no barriers to entry, that it costs nothing to
open an E-GOLD account, that there is no credit check, and that there is no minimum balance
requirement.
21. During the regular course of business, thousands of E-GOLD users opened their
accounts with obviously bogus and false contact information, including accounts opened in the
name of “Mickey Mouse,” “Donald Duck,” “Anonymous Man,” “bud weiser,” “No Name,” and
others.
22. Unlike other Internet payment systems, E-GOLD did not include any statement
in its User Agreement prohibiting the use of “e-gold” for criminal activity.
23. Because of the lack of controls as compared to those present with other payment
systems, E-GOLD has been a highly-favored method of payment by operators of investment
scams, which generally refers to pyramids, ponzis, HYIPs (i.e., high-yield investment programs)
and other “get-rich-quick”schemes. These scams typically promise abnormally high short-term
returns on investments, but rather than paying investors any actual returns on real investments,
the scams pay investors with new, incoming investment money from other investors in the scam.
Eventually, the operators of the scam either disappear with all the investment money or the scam
collapses because investment naturally slows as the scam grows and the operators are unable to
continue paying out the promised returns. E-GOLD has been favored in this area particularly
because of a user’s ability to operate accounts anonymously, and E-GOLD’s policy of making
all transfers of “e-gold” irrevocable and not subject to reversal.
24. Thousands of E-GOLD accounts have been opened using the term “hyip” in
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 7 of 28
8
either the account-owner’s name or e-mail address, or where “hyip” appears in the “memo” field
of the transaction record. E-GOLD employees knew and understood that these accounts were
used to fund investment scams, yet took no proactive measures to prevent the use of the EGOLD
system for this activity.
25. “e-gold” has been a highly-favored method of payment on websites operating to
facilitate credit card and identity fraud – so-called “carding” websites. Carding websites operate
as bulletin boards and are dedicated to the promotion and facilitation of a wide variety of
criminal activities including, among others, electronic theft of personal identifying information,
credit card and debit card fraud, and the production and sale of false identification documents.
On these websites, criminals around the world meet virtually and advertise and sell their
contraband, including stolen credit card numbers, compromised identities, and false
identifications, using “e-gold” as a method of payment.
26. “e-gold” has been a highly-favored method of payment for sellers of child
pornography over the Internet. In some instances, “e-gold” has been the only method of
payment available on websites offering child pornography for sale.
27. On every transfer of “e-gold” from one E-GOLD account to another, E-GOLD
collected a specified transaction (or “spend”) fee. E-GOLD also collected a maintenance or
storage fee, which was deducted monthly and was based on average daily value in the account.
COUNT ONE
(Conspiracy to Launder Monetary Instruments)
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 8 of 28
9
28. The allegations in paragraphs 14 through 27 are realleged as if fully set forth
herein.
THE CONSPIRACY
29. From on or about 1999 through December 2005, in the District of Columbia and
elsewhere, the defendants:
E-GOLD, LTD.,
GOLD & SILVER RESERVE, INC.,
DOUGLAS L. JACKSON,
BARRY K. DOWNEY, and
REID A. JACKSON
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, to wit:
(a) to knowingly conduct and attempt to conduct a financial transaction affecting
interstate and foreign commerce, that is transfers of “e-gold” from one account to another, which
involved the proceeds of a specified unlawful activity, that is child exploitation, wire fraud, and
access device fraud with the intent to promote the carrying on of specified unlawful activity, that
is child exploitation, wire fraud, and access device fraud, and that while conducting and
attempting to conduct such financial transaction knew that the property involved in the financial
transaction represented the proceeds of some form of unlawful activity in violation of Title 18,
United States Code, Section 1956(a)(1)(A)(i);
(b) to knowingly conduct and attempt to conduct financial transactions affecting
interstate commerce and foreign commerce, which transactions involved the proceeds of
specified unlawful activity, that is, child exploitation, wire fraud, and access device fraud,
knowing that the transactions were designed in whole or in part to conceal and disguise the
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 9 of 28
10
nature, location, source, ownership, and control of the proceeds of specified unlawful activity,
and that while conducting and attempting to conduct such financial transactions, knew that the
property involved in the financial transactions represented the proceeds of some form of
unlawful activity, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i);
(c) to transport, transmit, and transfer, and attempt to transport, transmit, and transfer a
monetary instrument or funds involving the proceeds of specified unlawful activity, that is, child
exploitation, wire fraud, and access device fraud, from a place in the United States to or through
a place outside the United States, knowing that the funds involved in the transportation,
transmission, and transfer represented the proceeds of some form of unlawful activity and
knowing that such transportation, transmission, and transfer was designed in whole or in part to
conceal and disguise the nature, location, source, ownership, and control of the proceeds of
specified unlawful activity, in violation of Title 18, United States Code, Section
1956(a)(2)(B)(i); and
(d) to knowingly engage and attempt to engage, in monetary transactions by, through
or to a financial institution, affecting interstate and foreign commerce, in criminally derived
property of a value greater than $10,000, that is the deposit, withdrawal, or transfer of funds,
such property having been derived from a specified unlawful activity, that is, child exploitation,
wire fraud, and access device fraud, contrary to the provisions of Title 18, United States Code,
Section 1957.
GOAL OF THE CONSPIRACY
30. It was the purpose of the conspiracy to engage in financial transactions with those
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 10 of 28
11
known to be involved in criminal activity in order to build the market share and profitability of
E-GOLD and enhance the personal wealth of DOUGLAS JACKSON, BARRY DOWNEY,
and REID JACKSON.
MANNER AND MEANS
The manner and means used to accomplish the objectives of the conspiracy included,
among others, the following:
31. The E-GOLD operation did not require users to provide their true identity, or any
specific identity at all, nor did it require any information, except for an e-mail address, to verify
or identify account holders at the time an account was opened. Numerous accounts were opened
using obviously false identifying and contact information.
32. With few exceptions, the employees hired to operate the E-GOLD payment
system had no experience in conducting financial transactions and no background in financial
matters at all. Employees of the E-GOLD operation received no training regarding financial
transactions or avoiding criminal transactions, nor were they provided any written materials on
these matters.
33. The E-GOLD operation routinely required law enforcement and others
requesting information through Grand Jury subpoenas and other process about “e-gold” accounts
to send their requests to a law firm in Bermuda, falsely making it appear as if the E-GOLD
operation was actually located offshore. In fact, the E-GOLD operation was located entirely in
Melbourne, Florida and all account information was located there.
34. Regularly, during the course of conducting the E-GOLD operation, the
defendants and their employees recognized that certain accounts were being used for criminal
purposes. On numerous occasions, the E-GOLD operation indicated in the account records
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 11 of 28
12
contained in the “e-gold” computer database the type of criminal activity that the account-holder
was engaged in, including, among other things, “child porn,” “Scammer,” and “CC fraud.” The
defendants nevertheless allowed transactions in these accounts to continue.
35. The E-GOLD operation regularly received complaints from customers that they
had been the victim of a crime and also regularly received notification from customers of
specific “e-gold” accounts that were involved in criminal activity. It was not the E-GOLD
operation’s practice to either close these accounts or, as is required by law for certain financial
institutions, report the activity to law enforcement. In certain cases, the E-GOLD operation sent
messages to customers who reported investment scams advising them to “educate” themselves
about certain types of investment fraud.
36. On numerous occasions when the E-GOLD operation discovered that its
customers were involved in activity that appeared to be unlawful, it would require that customer
to submit paperwork establishing that the customer was not an affiliate of the E-GOLD
operation, but then allow the customer to continue operating once the paperwork was received
rather than closing the account and refusing to engage in conducting further criminal financial
transactions.
37. Knowing that “e-gold” was being used for criminal activity, including child
exploitation, wire fraud (investment scams), and access device fraud (credit card and identity
theft), the E-GOLD operation continued to allow accounts to be opened without verification of
user identity, assigned only a single employee with no relevant experience to monitor hundreds
of thousands of accounts for criminal activity, and encouraged users whose criminal activity had
been discovered to transfer their criminal proceeds among other “e-gold” accounts.
38. When a specific account was determined to be engaged in criminal activity,
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 12 of 28
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defendants would regularly place a “value-limit” on that account, a procedure whereby an entry
would be made in the E-GOLD database limiting the incoming “e-gold” funds that could be
received by that account (sometimes to $5,000, sometimes to $500, and sometimes to $0), but
not limiting the ability of the account-holder to spend the funds already in the account. Thus,
even in circumstances in which the defendants knew that the account contained the proceeds of
crime, the defendants allowed the funds to be exchanged out into national currency or transferred
to another account.
39. On some occasions, when an E-GOLD customer was informed that a “valuelimit”
had been placed on his or her account, it was also suggested that an alternative to
providing further documentation for the existing account would be to open another E-GOLD
account. A single person or entity was able to open numerous “e-gold” accounts, without any
verification of identity or the source and purpose of the funds in question.
40. In some instances where a “value-limit” had been placed on an account, the EGOLD
operation would inform the customer subject to the “value-limit” that s/he was still free
to move funds out of the E-GOLD account. In these circumstances, no limit was placed on the
customer’s ability to transfer their “e-gold” funds to another account they controlled or to
another individual engaged in criminal activity, or to use those funds to purchase further
contraband, such as child pornography. Similarly, even if the “e-gold” funds involved were
criminal proceeds, the customer was free to exchange the “e-gold” for United States or other
national currencies without restriction. The customer was also free to open a new account and
transfer the funds to that account.
41. In various instances, the E-GOLD operation, at the request of its customer,
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 13 of 28
14
transferred funds from an account known to be engaged in criminal activity to another operated
by the same individual(s), who was then allowed to continue the same criminal activity.
42. On or about the dates listed below, defendants conducted the following
transactions on behalf of their customers within the District of Columbia:
DATE APPROXIMATE
AMOUNT
TRANSACTION
11/15/2004 $45.00 worth of
“e-gold”
Transfer from “e-gold” account number xxx4061 to “egold”
account number xxx1237 for the purchase of child
pornography
12/8/2004 $100.00 worth of
“e-gold”
Transfer from “e-gold” account number xxx4061 to “egold”
account number xxx1242 for the purchase of child
pornography
1/21/2005 $100.00 worth of
“e-gold”
Transfer from “e-gold” account number xxx4061 to “egold”
account number xxx1242 for the purchase of child
pornography
12/5/2005 $200.00 worth of
“e-gold”
Transfer from “e-gold” account number xxx2902 to “egold”
account number xxx9602 for the purchase of stolen
credit card information
12/12/2005 $39.95 worth of
“e-gold”
Transfer from “e-gold” account number xxx4061 to “egold”
account number xxx4220 for the purchase of child
pornography
43. On or about the dates listed below, among others, defendants conducted funds
transfers on behalf of their customers, knowing that the funds involved were the proceeds of
unlawful activity, namely child exploitation, and having placed a “value-limit” on those
accounts:
The “LS” Transactions
DATE APPROXIMATE
AMOUNT
TRANSACTION
1/30/2004 $11,056 worth of
“e-gold”
Transfer from “e-gold” account number xxx8135 to “egold”
account number xxx3751 for exchange
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 14 of 28
15
1/30/2004 $5,944 worth of
“e-gold”
Transfer from “e-gold” account number xxx0965 to “egold”
account number xxx3751 for exchange
2/22/2004 $7,660.40 worth
of “e-gold”
Transfer from “e-gold” account number xxx9785 to “egold”
account number xxx0493
2/22/2004 $3,169.80 worth
of “e-gold”
Transfer from “e-gold” account number xxx3520 to “egold”
account number xxx0493
3/9/2004 $1,970.50 worth
of “e-gold”
Transfer from “e-gold” account number xxx1960 to “egold”
account number xxx3751 for exchange
3/22/2004 $12,869 worth of
“e-gold”
Transfer from “e-gold” account number xxx4255 to “egold”
account number xxx3751 for exchange
The “MyLola” Transactions
DATE APPROXIMATE
AMOUNT
TRANSACTION
11/20/2003 $400.00 worth of
“e-gold”
Transfer from “e-gold” account number xxx6988 to “egold”
account number xx4486 for exchange
3/13/2004 $1,235.00 worth
of “e-gold”
Transfer from “e-gold” account number xxx7553 to “egold”
account number xx9481
6/30/2005 $663.75 worth of
“e-gold”
Transfer from “e-gold” account number xxx3897 to “egold”
account number xxx7684
The “Kidz Index / Timothy McNabb” Transactions
DATE APPROXIMATE
AMOUNT
TRANSACTION
9/9/2005 $890 worth of “egold”
Transfer from “e-gold” account number xxx6181 to “egold”
account number xx0775 for exchange
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 15 of 28
16
9/20/2005 $45.00 worth of
“e-gold”
Transfer from “e-gold” account number xxx1046 to “egold”
account number xxx4936
9/20/2005 $101.61 worth of
“e-gold”
Transfer from “e-gold” account number xxx1046 to “egold”
account number xx0775 for exchange
9/20/2005 $40.70 worth of
“e-gold”
Transfer from “e-gold” account number xxx5548 to “egold”
account number xx0775 for exchange
10/4/2005 $66.24 worth of
“e-gold”
Transfer from “e-gold” account number xxx1216 to “egold”
account number xxx5236
The “lolitanymphets” Transaction
DATE APPROXIMATE
AMOUNT
TRANSACTION
9/20/2005 $598.00 worth of
“e-gold”
Transfer from “e-gold” account number xxx1022 to “egold”
account number xxx0069
44. The E-GOLD operation conducted approximately $474,754 worth of transfers
within the above-listed accounts, all of which were engaged in the selling of child pornography.
45. On the following occasions, among others, defendants conducted funds transfers
on behalf of their customers, knowing that the funds involved were the proceeds of unlawful
activity, namely credit card fraud, and having placed a “value-limit” on those accounts:
DATE APPROXIMATE
AMOUNT
TRANSACTION
8/9/2004 $50 worth of “egold”
Transfer from “e-gold” account number xxx0398 to “egold”
account number xx3647
8/9/2004 $846 worth of “egold”
Transfer from “e-gold” account number xxx0398 to “egold”
account number xx6160
8/14/2004 $50 worth of “egold”
Transfer from “e-gold” account number xxx0398 to “egold”
account number xx0775
9/15/2004 $3,000 worth of
“e-gold”
Transfer from “e-gold” account number xxx0398 to “egold”
account number xx7789
9/22/2004 $3,000 worth of
“e-gold”
Transfer from “e-gold” account number xxx0398 to “egold”
account number xx7789
Case 1:07-cr-00109-RMC Document 1 Filed 04/24/2007 Page 16 of 28
17
9/24/2004 $276 worth of “egold”
Transfer from “e-gold” account number xxx0398 to “egold”
account number xxx9368
9/29/2004 $3,000 worth of
“e-gold”
Transfer from “e-gold” account number xxx0398 to “egold”
account number xx7789
10/18/2004 $3,000 worth of
“e-gold
Transfer from “e-gold” account number xxx0398 to “egold”
account number xx7789
46. The E-GOLD operation transferred approximately $76,688 in “e-gold” funds into
and out “e-gold” account number xxx03
VIOLATIONS:
E-GOLD, LTD. :
GOLD & SILVER RESERVE, INC. : 18 U.S.C. § 1956 (Conspiracy
DOUGLAS L. JACKSON, : to Launder Monetary Instruments
LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLO!!!!
wonder which tergent he wash his "monitry insutments" with??
all or tide???
monitary increments- they the same as promisroy notes he washing.
thats a good idea. maybe i take my promissory note and throw it in the wahsing maching too and see what happen.
the govt. will come after me for runnign a money laundry.
LOLOLOLOLOLOLOLOLOLOLOLOLLLLLOOOO!!
Need Glasses ?
http://www.youtube.com/watch?v=Q02HAHqc0kg
mccanney joins forces dg to help take a "bite out of beast"
LOLOLOLOLOLOLOLOLOLOLOLOLOL!!!!
-----------------------------
May 13, 2007 posting ... it seems that the newly released encryption code for the HD (high definition) commercial DVDs that would "ensure that they could not be copied" was busted shortly after release ... i have not gotten the full story in yet but here is apparently what happened ... the encryption cope was based on a large prime number and within less than a few weeks time ... from what i heard second hand from someone that heard this on a radio show ... some kids broke the code and published it on the internet in early may ... this was in the form of a large hexadecimal prime number and the factor "key" needed to program unix based computer systems ... the point is that ... as i have been saying and one of the main points of my "Calculate Primes" book and DVD is that the encryption codes used today for everything from simple security codes to the most complex national security data base "keys" are extremely vulnerable and the outfits that are touting "security" and marketing it are in for a grand shock ... their titanic has been breached and it is indeed sinking ... their "experts" ... as with many "experts" today ... are experts in outdated knowledge ... and you will not learn the real story in a classroom or in a university course ... the warehouses full of human chips and the RFiD chips that have been produced by the 100's of millions are susceptible to hacking ... viruses ... clones ... trogans ... self-replicating look-alikes ... and last but not least ... false representations that can jam big brothers lofty computer centers and bring it to its knees ... i hope that i have played a small part in this and increased the awareness of the frailty and porosity of the so called invincible encryption systems ... what an appropriate gift to mothers everywhere on this mother's day 2007 ... that the safety of their children from the impending "number" has a great new weapon ... the knowledge of the upcoming generation that they can defeat and fight the "number" on its own terms and defeat it ... jim mccanney
".....the warehouses full of human chips and the RFiD chips that have been produced by the 100's of millions are susceptible to hacking ... viruses ... clones ... trogans ... self-replicating look-alikes ... and last but not least ... false representations that can jam big brothers lofty computer centers and bring it to its knees ...
GO GIT 'EM JIMBO!
LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOLOLOLOLOLLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOL
I P Freely Sr. said...
The Dallas soap opera of the company selling poison ivy as celantro continues. Today the head of Lulac said they would do everything in their power to see that the people behind this "criminal act of war against hispanics" would get the death penalty. Then in the same segment, the news story goes to the man behind this and the owner says," We weren't trying to hurt anyone. We thought the massive amounts of jalapeno juice that hispanics eat would greatly limit any chance of harm from the poison ivy". Then if that wasn't enough, the company's lawyer said the company had done several tests and that because of the high volume of beans in hispanic diets, this also would help get rid of the harmful chemical that is found in poison ivy by flatulation. :-0
Channel 5 showed portions of the press conference again today on their 5:30 news. Who is the big guy with the australian type cowboy hat that the attorney kept looking at?
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