Mouli Cohen Criminal Indictment

PER 18 U.S.C. 3170

DEFENDANT INFORMA nON RELATIVE TO A CRIMINAL ACTION -IN u.s. DISTRICT COURT

BY: 0 INFORMATION Il]INDICTMENT .,...--.

Matter Sealed: o Juvenile IZI Other than Juvenile USA vs.

o Pre-Indictment Plea o Superseding o Defendant Added Defendant:

Samuel Cohen (a/kla Mouli Co~) .4(\ o Indictment o Charges/Counts Added '~~.p ~ o Information ".{.f,~ ~ l'

Name of District Court. andlor JudgeiMagistrate Location (City) AdusR 1 0 o§~i~ ~

UNITED STATES DISTRICT COURT Northern DISTRICT OF California Divisional Office

/,...".,>." -'\) '/ -c'~- ~ ,~.,~~\ .

Joseph P. Russoniello -'c:./:'~t1- ':; f Name and Office of Person Furnishing Information on DU.s.Atty DOther U.S, Agency 0 ~O C'

~RM Phone No. (415) 436-7200 Interpreter Required Dialect: ~(;~ ~

~ l Name of Ass!.

~ Alien U.S. Attorney Jeffrey Finigan

Birth IZl Male (if assigned)

Date 4/8/1958 0 (if applicable) Female PROCEEDING

Name of Complainant Agency, or Person (& Title, if any)

IRS & FBI Social Security Number

0 person is awaiting trial in another Federal or State Court (give name of court) DEFENDANT

IlJ Warrant o Summons Issue:

0 this person/proceeding transferred from another district per (Circle one) FRCrP 20, 21 or 40. Show District

Location Status:

Arrest Date or Date Transferred to Federal Custody

0 this Is a reproseculion of charges 0 Currently in Federal Custody previously dismissed which were dismissed on motion of: 0 Currently in State Custody D U.S. Atty 0 Defense

SHOW o Writ Required

0 this prosecution relates to a DOCKET NO. 0 Currently on bond pending case involving this same D Fugitive defendant. (Notice of Related Case must still be filed with the

0 Clerk.)

MAG. JUDGE prior proceedings or appearance(s) CASE NO. Defense Counsel (if any): before U.S. Magistrate Judge regarding this defendant were DFPD o CJA D RET'D recorded under

Place of I San Francisco 0 Appointed on Target Letter

countySan Francisco offense

o This report amends AO 257 previously submitted

OFFENSE CHARGED· U.S.C. CITATION· STATUTORY MAXIMUM PENALTIES· ADDITIONAL INFORMATION OR COMMENTS

Total # of Counts 32

Set Title & Section/Offense Level Description of Offense Charged Count(s) (Pettv = 1 I Misdemeanor" 31 Felonv = 4)

1 18 USC Section 1343 Wire Fraud 1 -19

2 18 USC Section 1957 Money Laundering 20- 32

(cts 1 - 19: 20 yrs BOP; $250,000 fine; (cts 20 - 32: 10 yrs BOP; $250,000 fine or twice amount

3 yrs supervised release; of criminally derived property; 3 yrs suprevised release;

$100 assessment) $100 assessment)

1 JOSEPH P. RUSSONIELLO (CSBN 44332) United States Attorney

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

UNITED STATES OF AMERICA, G It.: 1 0 0547 Plaintiff,

v.

SAMUEL COHEN, aIkIa Mouli Cohen.

Defendant.

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Violations: 18 U.S.C. § 1343 - Wire Fraud; 18 U.S.C. § 1957 - Engaging in Monetary Transactions in Criminally Derived Property; Forfeiture Allegations - 18 U .S.C. § 9SI(a)(1)(C) and 28 U.S.C. § 2461 (c) and IS U.S.C. § 982(a)(1)

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INDICTMENT

The Grand Jury charges:

BACKGROUND

23 At all times relevant to this Indictment:

24 1. Defendant SAMUEL COHEN ("COHEN") was an individual residing in

25 Belvedere, California.

26 2. Hari Dillon ("Dillon") was an individual who was the President of the Vanguard

27 Public Foundation ("'Vanguard"), a privately-funded nonprofit organization based in San

28 Francisco. California, with a stated mission of advancing the causes of civil rights and social

INDICTMENT

1 justice by providing grants to various individuals and entities.

2 3: Ecast, Inc. ("Ecast"), was a company based in San Francisco, California, and in

3 the business of providing digital music, games, entertainment, and information to bars and

4 nightclubs. COHEN was one of the founders of Ecast and held Ecast shares of stock ("shares")

5 in his name and in a trust he controlled.

6 THE SCHEME TO DEFRAUD

7 4. Beginning at a time unknown to the grand jury, but no later than in or about

8 September 2002, and continuing through about December 2008, in the Northern Distric~ of

9 California and elsewhere, the defendant,

10 SAMUEL COHEN,

11 aIkIa Mouli Cohen,

12 did knowingly and intentionally devise a material scheme and artifice to defraud investors and

13 lenders, and to obtain money and property from investors and lenders by means of materially

14 false and fraudulent pretenses, representations, promises, and omissions, knowing that the

15 pretenses, representations, promises, and omissions were false and fraudulent when made.

16 MANNER AND MEANS OF THE SCHEME TO DEFRAUD

17 5. As part ofthe scheme to defraud, in late 2002 COHEN advised Dillon and other

18 investors and lenders associated with Vanguard that Microsoft was going to acquire Ecast and

19 that upon completion of the acquisition COHEN's Ecast shares would be exchanged on a I-for-l

20 basis for Microsoft shares of stock, which were valued at several times the value of Ecast shares.

21 COHEN further represented that Microsoft's acquisition of Ecast would be finalized within

22 months oflate 2002. COHEN offered to sell his Ecast shares to Dillon and other investors

23 associated with Vanguard at prices ranging from $2 to $3.50 per share. COHEN further

24 represented to Dillon that Vanguard could significantly benefit and advance its cause if Dillon

25 and other investors associated with Vanguard shared their eventual profits from their investment

26 in COHEN's Ecast shares once they were exchanged for Microsoft shares.

27 6. It was further part of the scheme to defraud that Dillon and other investors, in

2 8 reliance upon CO HEN's representations about Microsoft's purported acquisition of Ecast, would

INDICTMENT 2

1 purchase Ecast shares from COHEN and that Dillon would solicit additional investors to

2 purchase Ecast shares from COHEN by repeating COHEN's representations about Microsoft's

3 acquisition of Ecast to those additional investors. As a result of COHEN's representations to

4 Dillon and other investors, both directly and through Dillon, numerous individuals purchased

5 Ecast shares from COHEN, both directly and through Dillon.

6 7. It was further part of the scheme to defraud that once COHEN obtained the

7 payments for his Ecast shares, and in order to respond to investor inquiries about why

8 Microsoft's acquisition of Ecast was not finalized, COHEN would advise Dillon and other

9 investors and lenders, both directly and through Dillon, that Microsoft's acquisition of Ecast

10 required approval of governmental regulatory entities in the United States and the European

11 Union ("EU"). COHEN further advised Dillon and other investors and lenders, both directly and

12 through Dillon, that they needed to pay COHEN millions of dollars in order for COHEN to cover

13 costs associated with the governmental approval, both U.S. and EU, of Microsoft's acquisition of

14 Ecast and that if COHEN did not receive the money to cover the costs that the investors who

15 purchased Ecast shares from COHEN would lose their investments.

16 8. It was further part ofthe scheme to defraud that COHEN caused Dillon and other

17 investors and lenders, in reliance upon COHEN's representations about costs associated with the

18 governmental approvals of Microsoft's acquisition of Ecast, to pay COHEN in order for COHEN

19 to pay the costs.

20 9. As part of the scheme to defraud, COHEN's representations regarding the alleged

21 Microsoft acquisition ofEcast as set forth herein were false. Specifically, in order to obtain

22 money from investors and lenders, COHEN engaged in certain conduct and made, in sum and

23 substance, certain materially false and fraudulent pretenses, representations, promises, and

24 omissions, including, but not limited to, the following:

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a.

b.

INDICTMENT

That Microsoft was going to acquire Ecast.

That upon completion of Microsoft's acquisition ofEcast, COHEN's

Ecast shares would be exchanged on a I-for-l basis for Microsoft shares

of stock.

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That a United States governmental regulatory agency required the payment

of costs associated with its review and approval of Microsoft's acquisition

of Ecast.

That the ED required the payment of costs associated with its review and

approval of Microsoft's acquisition ofEcast.

That various law firms required the payment of fees and costs associated

with their work on behalf of the victims related to Microsoft's acquisition

of Ecast.

That investors who purchased Ecast shares from COHEN would lose their

investments if they did not pay COHEN to cover the costs imposed by the

U.s. and EU regulatory entities related to their review and approval of

Microsoft's acquisition of Ecast.

It was further part of the scheme to defraud that COHEN would convert for his

14 own use the money he unlawfully obtained as described in paragraphs 6 and 8. As a result of

15 COHEN's scheme to defraud, the investors and lenders COHEN defrauded as set forth herein

16 have incurred losses totaling more than $30,000,000.

17 COUNTS ONE THROUGH NINETEEN: (18 U.S.C. § 1343 - Wire Fraud)

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Paragraphs 1 through 10 are realleged as if fully set forth herein.

On or about the dates set forth below, in the Northern District of California and

20 elsewhere, for the purpose of executing the material scheme to defraud and to obtain money by

21 materially false and fraudulent pretenses, representations, promises, and omissions, the

22 defendant,

23 SAMUEL COHEN,

24 a/k.Ia Mouli Cohen,

25 did knowingly transmit and cause to be transmitted the following wire communications in

26 interstate and foreign commerce:

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INDICTMENT 4

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2 ONE 9113/2005 $132,000 . W.P. Charles Wells Fargo

3 Schwab Bank account account ***-****546 in

4 *****748 in San Francisco, San Francisco, CA(viaNew

5 CA Jersey)

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7 TWO 9121/2005 $100,000 W.P. Charles Wells Fargo Schwab Bank account

8 account ***-****546 in *****748 in San Francisco,

9 San Francisco, CA (via New CA Jersey)

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11 THREE 9/22/2005 $100,000 S.M. and RB. Wells Fargo

12 Charles Bank account Schwab ***-****546 in

13 account San Francisco, *****457 in CA (via New

14 San Francisco, Jersey) CA

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16 FOUR 9/29/2005 $43,000 W.P. Charles Wells Fargo

17 Schwab Bank account account ***-****546 in

18 *****748 in San Francisco, San Francisco, CA(viaNew

19 CA Jersey)

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21 FIVE 10/14/2005 $150,000 W.P. World Wells Fargo

Savings Bank Bank account account ***-****546 in

22 ******084 in San Francisco,

23 Albany, CA CA(viaNew

Jersey)

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25 SIX 12/112005 $200,000 JS&E U.S. Wells Fargo Bank account Bank: account

26 ************ ***-****021 in 361 in S1. Paul, California (via

27 MN New Jersey)

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INDICTMENT 5

INDICTMENT 6

INDICTMENT 7

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NINETEEN 4/18/2007 $15,000 S.G. Citibank California, FSB account *********742

Wells Fargo Bank. account ***-****546 in San Francisco, CA (via New Jersey)

AU in violation of Title 18, United States Code, Section 1343.

COUNTS TWENTY THROUGH THIRTY TWO: (18 U.S.C. § 1957- Engaging in Monetary Transactions in Criminally Derived Property)

13. Paragraphs 1 through 10 and 12, of this Indictment are realleged as iffully set

12 forth herein.

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14. On or about the dates set forth below, in the Northern District of California and

elsewhere, the defendant,

SAMUEL COHEN, aIkIa Mouli Cohen,

did knowingly engage in monetary transactions, in and affecting interstate commerce, in

criminally derived property that was of a value greater than $10,000, and that was derived from

19 specified unlawful activity, namely, wire fraud, as follows:

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TWENTY 9/15/2005

TWENTY ONE 9/27/2005

INDICTMENT

$600,000 transfer from Wells Fargo Bank account ***-****021 to Wells Fargo Bank account *******646 and derived from specified unlawful activity, namely, wire fraud, as set forth in count]

$600,000 transfer from Wells Fargo Bank account ***-****021 to Wells Fargo Bank account *******646 and derived from specified unlawful activity, namely, wire fraud, as set forth in counts 2 and 3

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2 TWENTY TWO 10/4/2005 $1,200,000 transfer from Wells Fargo Bank

3 account ***-****021 to Wells Fargo Bank account

4 ***-****646 and derived from specified unlawful activity, namely, wire fraud, as set forth in count 4

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6 TWENTY THREE 10/19/2005 $500,000 transfer from Wells Fargo Bank account ***-****021 to Wells Fargo Bank account ***-

7 ****646 and derived from specified unlawful activity, namely, wire fraud, as set forth in count 5

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9 TWENTY FOUR 12/5/2005 $500,000 transfer from Wells Fargo Bank account

10 ***-****021 to Wells Fargo Bank account ***-****646 and derived from specified unlawful

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13 TWENTY FIVE 12/7/2005 $167,000 transfer from Wells Fargo Bank account


15 activity, namely, wire fraud, as set forth in counts 8 and 9

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17 TWENTY SIX 1124/2006 $700,000 transfer from Wells Fargo Bank account


19 activity, namely, wire fraud, as set forth in count 10

20 TWENTY SEVEN 211/2006 $542,000 transfer from Wells Fargo Bank account

21 ***-****021 to Wells Fargo Bank account ***-

22 ****646 and derived from specified unlawful activity, namely, wire fraud, as set forth in count II

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24 TWENTY EIGHT 4112/06 $600,000 transfer from Wells Fargo Bank account ***-****021 to Wells Fargo Bank account ***-

25 ****646 and derived from specified unlawful activity, namely, wire fraud, as set forth in counts

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INDICTMENT 9

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TWENTYNINE

TIIIRTY

THIRTY ONE

THIRTY TWO

5/30/2006

7127/2006

8/23/2006

119/2007

$590,000 transfer from Wells Fargo Bank account ***-****021 to Wells Fargo Bank account *******646 and derived from specified unlawful activity, namely, wire fraud, as set forth in count 14


$300,000 transfer from Wells Fargo Bank account ***-****021 to Wells Fargo Bank accollllt *******646 and derived from specified unlawful activity, namely, wire fraud, as set forth in count 16 and 17


All in violation of Title 18, United States Code; Section 1957.

18 FORFEITURE ALLEGATION: (18 U.S.C. § 981 (a)(l)(C) and 28 U.S.C. § 2461 (c) -Forfeiture of SUA (wire fraud) proceeds)

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20 16. The allegations of Counts ONE through NINETEEN of this indictment are

21 realleged and by this reference fully incorporated herein for the purpose of alleging forfeiture

22 pursuant to the provisions of 18 U.S.C. § 981 (a)(I)(C) and 28 U.S.C. § 2461 (c).

23 17. Upon a conviction of any of the offenses alleged in COllllts ONE through

24 NINETEEN, the defendant,

25 SAMUEL COHEN,

26 alk/a Mouli Cohen,

27 shall forfeit to the United States all property, constituting and derived from proceeds traceable to

28 said offenses, including but not limited to the following property:

INDICTMENT 10

1 (a) a money judgment equal to the amount of the proceeds obtained from the

2 offense; and

3 If any of said property, as a result of any actor omission of the defendant-

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cannot be located upon the exercise of due diligence;

has been transferred or sold to or deposited with, a third person;

has been placed beyond the jurisdiction of the Court;

has been substantially diminished in value; or

has been commingled with other property which cannot be subdivided

9 without difficulty, any and all interest defendant has in other property shall be vested in the

10 United States and forfeited to the United States pursuant to Title 21, United States Code, Section

11 853(P), as incorporated by Title 28, United States Code, Section 2461 (c) and Rule 32.2 of the

12 Federal Rules of Criminal Procedure.

13 FORFEITURE ALLEGATION: (18 U.S.C. § 982(a)(I) - Forfeiture (money or property involved in money laundering))

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18. The allegations of Counts TWENTY through THIRTY TWO of this indictment

are realleged and by this reference fully incorporated herein for the purpose of alleging forfeiture

pursuant to the provisions of 18 U.S.C. § 982(a)(I).

19. Upon a conviction of any of the offenses alleged in Counts TWENTY through

THIRTY TWO, the defendant,

SAMUEL COHEN, aJkIa Mouli Cohen,

21 shall forfeit to the United States all property, constituting and derived from money or property

22 involved in money laundering, including but not limited to the following property:

23 (a) a money judgment equal to the amount of the money or property involved

24 in the offense; and

25 If any of said property, as a result of any act or omission of the defendant-

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(a)

(b)

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INDICTMENT

cannot be located upon the exercise of due diligence;

has been transferred or sold to or deposited with, a third person;

has been placed beyond the jurisdiction of the Court;

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(d)

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has been substantially diminished in value; or

has been commingled with other property which cannot be subdivided

3 without difficulty, any and all interest defendant has in other property shall be vested in the

4 United States and forfeited to the United States pursuant to Title 21, United States Code, Section

5 853(p), as incorporated by Title 28, United States Code, Section 2461(c) and Rule 32.2 of the

6 Federal Rules of Criminal Procedure.

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iC "'!fi Dated: July ~2010

JOSEPH P. RUSSONIELLO United Sta s Atto~ I /

(~ IJkn~ J. S TCH / F

hief, Criminal Division

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INDICTMENT 12

Mouli Cohen Criminal Indictment

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