IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS (Kansas City, Kansas, Docket)

Transcription

1 UNITED STATES OF AMERICA, IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS (Kansas City, Kansas, Docket) Plaintiff, v. Case No.: KEITH L. COUNTESS, PLASTER MASTERS, L.C., MARCOS LANE STUBBS, LUIS FELIPE GUERRERO-GUERRERO, JOSE FELIPE HERNANDEZ-CALVILLO, MAURO PAPALOTZI, and ISAAC GALLEGOS, Defendants. The Grand Jury charges: SEALED INDICTMENT SUMMARY OF CHARGES Count 1, Conspiracy to Encourage or Induce Undocumented Aliens to Reside in the U.S. for Commercial Advantage or Private Financial Gain, 8 U.S.C. 1324(a)(1)(A)(iv) and (v)(i). Counts 2-9, Encouraging or Inducing Undocumented Aliens to Reside in the U.S. for Commercial Advantage or Private Financial Gain, 8 U.S.C. 1324(a)(1)(A)(iv) and (v)(ii). 1

2 Count 10, Conspiracy to Launder Monetary Instruments, 18 U.S.C. 1956(a)(1)(A)(i) and 18 U.S.C. 1956(a)(1)(B)(i). Counts 11-20, Money Laundering, 18 U.S.C. 1956(a)(1)(B)(i) Count 21, Conspiracy to Commit Bank Fraud, 18 U.S.C and 1344(2). Counts 22-31, Bank Fraud, 18 U.S.C. 1344(2) and Criminal Forfeiture GENERAL ALLEGATIONS 1. On or about the dates specified herein, defendant Keith L. Countess (Countess) was the principal owner of defendant Plaster Masters, L.C. (Plaster Masters), a Kansas limited liability company based at 619 N. 2nd St., Lawrence, Kansas. 2. Plaster Masters is a drywall subcontractor for commercial and residential construction projects in and around the Kansas City metropolitan area. is shorthand for interior walls usually constructed from sheets of pressed gypsum, paper joint tape and plaster. 3. Defendant Marcos Lane Stubbs (Stubbs) has been active in drywall installation in the Kansas City area and devised a scheme to enable drywall subcontractors to use undocumented workers to install drywall. 2

3 4. Defendant Luis Felipe Guerrero-Guerrero (Guerrero) manages crews of workers who install drywall for Plaster Masters and other drywall subcontractors. 5. Defendant Jose Felipe Hernandez-Calvillo (Hernandez) manages crews of workers who install drywall for Plaster Masters and other drywall subcontractors. 6. Defendant Mauro Papalotzi (Papalotzi) manages crews of workers who install drywall for Plaster Masters and other drywall subcontractors. 7. During the times specified herein, defendant Isaac Gallegos (Gallegos) operated the Boost Mobile cellular telephone store at 1319 Santa Fe, Olathe Kansas. 8. In about August 2011, a person named Jose Torres-Garcia (Torres) learned about a way to make money by being a financial intermediary between drywall subcontractors and drywall construction crews made up primarily of undocumented alien workers. The persons who described the venture to Torres were defendants Gallegos and Stubbs. 9. Gallegos and Stubbs explained to Torres that in order to pay undocumented drywall workers, someone had to serve as financial conduit 3

4 between the subcontractors and the workers. They described a model in which the subcontractor would contract directly with drywall crews but would use Torres as the financial intermediary. 10. The model described by Gallegos and Stubbs centered on Torres s holding himself out as a drywall subcontractor when his actual role was merely to receive checks from drywall construction crews, deposit the checks into accounts he established, then withdraw cash from those accounts to pay crew leaders, who in turn paid cash to themselves and the crew workers. 11. The model required that Torres obtain workers compensation insurance and liability insurance certificates for his shell drywall company, which he called Jose R. Torres. The drywall crews would present Torre s insurance certificates to the drywall subcontractors hiring the crews to satisfy the subcontractor s legal and contractual insurance requirements even though the subcontractors often knew Jose R. Torres didn t do drywall work and acted only as a means by which the undocumented workers would get paid for their work. 12. To get the venture started, in the fall of 2011 Torres borrowed about $1,400 from Gallegos, who allowed Torres to operate from Gallego s Boost 4

5 Mobile store in Olathe, and Torres established bank accounts at the Bank of America branch at 175 N. Clairborne, Olathe, Kansas, and the Wells Fargo Bank branch at 2137 E. Santa Fe, Olathe, among others. 13. The drywall crews were paid weekly. They directed the subcontractor to make their checks payable to Jose R. Torres and would pick the checks up directly from the subcontractors, usually on Fridays. Those checks were taken to Torres, usually at the Boost Mobile store, who then would deposit the checks into the accounts he established. On those occasions when Torres was not at the store when the checks were delivered, Gallegos or one of his employees would receive the checks, and then turn them over to Torres. 14. The next day, usually on Saturday mornings, Torres then would withdraw cash from those accounts sufficient to pay the drywall crews, usually at the Bank of America branch in Olathe. For this service, Torres charged the five percent, which he withheld from his cash payments to the crews. 15. Torres usually made the cash payments by dividing the cash he withdrew from the bank into envelopes for each drywall crew. Torres would write on the outside of the envelopes the total amount of the check deposited, the name of the crew leader, the amount of the five percent withheld by Torres, and 5

6 the net amount, meaning the amount of cash contained in the envelope. 16. The payments also usually were made at Gallego s Boost Mobile store, where someone from the drywall crew would come to pick up the envelope. Sometimes the payments were made at Torres snearby residence or at other predetermined locations. 17. Of the five percent withheld by Torres, during about the first year of the venture Torres paid Gallegos two of the five percent and one percent to Stubbs, who often referred drywall crews to Torres. After the first year, he no longer paid Gallegos the two percent but continued to pay one percent to Stubbs keeping the remaining four percent for himself. 18. Between about October 2012 and about October 2014, checks made payable to Jose R. Torres totaling about $11.5 million were deposited into two accounts Torres established at Bank of America; and between about December 2012 and about June 2014, checks totaling about $1.7 million were deposited into three accounts he established at Wells Fargo; for a combined total of about $13.2 million. 19. The subcontractors knew or recklessly disregarded that the drywall construction crews were made up primarily of undocumented aliens because (1) 6

7 there would have been no need to use the services of Jose Torres if the crews were operating lawfully; (2) the subcontractors accepted insurance certificates in the name of Jose R. Torres even though they knew Jose Torres wasn t in the drywall business; and (3) their interactions with the drywall crews confirmed they knew the crew members were not lawfully present in the United States. 20. For example, in November 2014, defendant Countess told a crew leader more than once that he knew the crew leader was a wetback, making the comments in front of other employees of his company, Plaster Masters. COUNT 1 8 U.S.C. ' 1324(a)(1)(A)(iv) and (v)(i) (Conspiracy to Encourage Aliens to Reside in the United States for Commercial Advantage and Private Financial Gain Knowing or in Reckless Disregard of their Unlawful Status) 21. Paragraphs 1-20 are incorporated by reference. 22. Between about October 2011 and about October 2014, within the District of Kansas and elsewhere, the defendants, KEITH L. COUNTESS, PLASTER MASTERS, L.C., MARCOS LANE STUBBS, LUIS FELIPE GUERRERO-GUERRERO, JOSE FELIPE HERNANDEZ-CALVILLO, 7

8 MAURO PAPALOTZI, and ISAAC GALLEGOS, and others both known and unknown to the grand jury, engaged in a conspiracy, for the purpose of commercial advantage and private financial gain, to induce and encourage aliens to reside in the United States, knowing and in reckless disregard of the fact that such residence is in violation of law, in violation of Title 8, United States Code, Sections 1324(a)(1)(A)(iv) and (v)(i). PURPOSE AND OBJECT OF THE CONSPIRACY 23. The purpose and object of the conspiracy, and its manner and means, included as follows: a. The purpose of the conspiracy was to make money and create wealth for the defendants. b. The object of the conspiracy was to facilitate the use of undocumented alien labor so that the costs of drywall construction projects could be minimized to the financial benefit of the co-conspirators. c. The conspiracy required that aliens not lawfully present in the United States be available to do the drywall work; this was accomplished by providing ongoing employment and unlawful cash payments to the them, thereby inducing 8

9 and encouraging their ongoing residence in the United States. d. But for the presence of the undocumented aliens working and being paid as described herein, the conspiracy could not be maintained because the commercial advantage gained by the co-conspirators would not be possible. e. By entering into an agreement to pay undocumented workers through the venture carried out by Jose Torres-Garcia, defendants Countess and Plaster Masters paid less in labor costs than they would have incurred had they used legitimately operating subcontractors or directly employed drywall workers. f. By going through Torres, defendants Countess and Plaster Masters avoided having to acquire and pay for unemployment insurance, workers compensation insurance, and liability insurance to cover the work crews paid through Torres. g. By going through Torres, defendants Countess and Plaster Masters avoided the expense of directly employing workers to perform their drywall construction projects, such as payment of market wages, employee benefits such as health insurance, payment of employee-related state and federal income tax and Social Security withholdings, and costs associated with complying with Employee Eligibility Verification Act and its I-9 form requirements. 9

10 h. By going through Torres, defendants Countess and Plaster Masters avoided the higher cost of hiring legitimately operating subcontractors, who must pay the various expenses associated with the direct employment of drywall workers that Countess and Plaster Masters were able to avoid. i. By going through Torres, defendants Countess and Plaster Masters placed themselves at a competitive advantage in the obtaining of drywall construction projects. j. By going through Torres, defendants Guerrero, Hernandez, and Papalotzi were able to gain employment for themselves and their crews without having to purchase and provide legitimate workers compensation and liability insurance certificates to Countess and Plaster Masters. k. By going through Torres, defendants Luis, Hernandez, and Papalotzi were able to obtain jobs and money for themselves and their crews without having to pay market wages, incur employee-related expenses such as workers compensation insurance, liability insurance, unemployment insurance, health insurance, state and federal income tax and Social Security withholdings, and other employee related expenses as I-9 form compliance and accounting and payroll services. 10

11 l. By going through Torres, the co-conspirators are able to maintain a stable of undocumented alien workers who, because they are unlawfully present in the United States, do not have permission or authority to be employed in the United States, and cannot easily open and maintain accounts at U.S. financial institutions, and therefore must be paid in cash to maintain their residence in the United States. m. By assisting Torres in the venture, and by lending him start-up capital, and by providing a place for Torres to do business, and by referring drywall contractors to Torres, defendants Stubbs and Gallegos regularly received tax-free cash payments from Torres. OVERT ACTS IN FURTHERANCE OF THE CONSPIRACY 24. In furtherance of the conspiracy, and to effect the objects thereof, one or more of the co-conspirators committed and caused to be committed at least one of the following acts, among others, within the District of Kansas and elsewhere: a. In about October 2011, Torres, at the direction of Gallegos and Stubbs, established bank accounts for the purpose of depositing checks into those accounts from which he could later make cash withdraws for payment to 11

12 drywall crews using primarily undocumented workers. b. In about October 2012, Torres, also at the direction of Gallegos and Stubbs, obtained an Employer Identification Number from the Internal Revenue Service, which he needed to be able to secure workers compensation and liability insurance and for the purpose of receiving payments from Plaster Masters. c. In about October 2012, and at other times during the course of the conspiracy, Torres purchased workers compensation insurance and liability insurance in the name of Jose R. Torres. d. During the course of the conspiracy, Torres deposited about 250 checks totaling about $735,000 issued by Plaster Masters for drywall construction work done by drywall crews who were obtaining cash from Torres to pay the crews. e. Torres instructed the drywall crews to direct Countess and Plaster Masters to make the drywall construction work checks payable to Jose R. Torres even though the crews were not employed by nor contracted through Jose R. Torres or Jose Torres. f. Torres arranged for workers compensation insurance and liability insurance certificates to be provided to Countess and Plaster Masters even though the crews doing jobs for Countess and Plaster Masters were not 12

13 employed by nor contracted through Jose R. Torres or Jose Torres. g. Countess and Plaster Masters assigned work daily and regularly to the drywall crews led by Guerrero, Papalotzi, Hernandez and others at the Plaster Masters office in Lawrence, at which time Countess and Plaster Masters provided supplies needed for those jobs to the crews and arranged for the delivery of sheetrock and other construction materials to the job sites. h. From time to time, Countess would go to the job sites while the crews were working to insure the jobs were being done properly and on schedule. i. Countess and Plaster Masters issued checks weekly to the drywall crews completing Plaster Masters jobs. The checks were made payable to Jose R. Torres regardless of which drywall crew was performing the jobs. j. Countess and Plaster Masters issued Department of the Treasury Forms 1099-MISC, to Jose R. Torres knowing Jose R. Torres and Jose Torres were not engaged in drywall construction; for example, Plaster Masters, L.C., issued a Form 1099-MISC for calendar year 2013 to Jose R. Torres in the amount of $426, k. Torres deposited the weekly checks issued by Plaster Masters into the accounts he established and withdrew cash to pay the drywall crews made up 13

14 primarily of undocumented aliens and withholding five percent, as described in paragraphs above. l. Between about October 2011 and October 2012, Torres paid Gallegos two of the five percent he withheld from drywall constructions checks issued to compensate Gallegos for his contributions to the venture. m. Between about October 2011 and about October 2014, Torres paid Stubbs one of the five percent to compensate Stubbs for his contributions to the venture. COUNTS U.S.C. ' 1324(a)(1)(A)(iv) and (v)(ii) (Encouraging or Inducing Aliens to Reside in the United States for Commercial Advantage and Private Financial Gain Knowing or in Reckless Disregard of their Unlawful Status) 25. Paragraphs 1-24 are incorporated by reference. 26. In about October 2014, within the District of Kansas and elsewhere, the defendants, KEITH L. COUNTESS, PLASTER MASTERS, L.C., MARCOS LANE STUBBS, LUIS FELIPE GUERRERO-GUERRERO, JOSE FELIPE HERNANDEZ-CALVILLO, 14

15 MAURO PAPALOTZI, and ISAAC GALLEGOS, Intentionally induced and encouraged an alien, for the purpose of commercial advantage and private financial gain, to reside in the United States, knowing and in reckless disregard of the fact that such residence is in violation of law, as follows: COUNT 2 Alien=s initials: JR COUNT 3 Alien=s initials: PR COUNT 4 Alien=s initials: JH COUNT 5 Alien=s initials: JR COUNT 6 Alien=s initials: F.L.U. L.N.U.#1 COUNT 7 Alien=s initials: F.L.U. L.N.U.#2 COUNT 8 Alien=s initials: F.L.U. L.N.U.#3 COUNT 9 Alien=s initials: MD All in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv) and 15

16 (v)(ii). COUNT U.S.C. 1956(h), 1956(a)(1)(A)(i), and 1956(a)(1)(B)(i) with reference to 8 U.S.C. 1324(a)(1)(A)(iv) (Conspiracy to Launder Monetary Instruments) 27. Paragraphs 1-26 are incorporated by reference. 28. Between about October 2011 and about October 2014, within the District of Kansas and elsewhere, the defendants, KEITH L. COUNTESS, PLASTER MASTERS, L.C., MARCOS LANE STUBBS, LUIS FELIPE GUERRERO-GUERRERO, JOSE FELIPE HERNANDEZ-CALVILLO, MAURO PAPALOTZI, and ISAAC GALLEGOS, knowingly and intentionally combined, conspired, and agreed with each other and with other persons both known and unknown to the Grand jury, to commit money laundering offenses against the United States, as follows: (1) the conducting of a financial transaction affecting interstate commerce that involved of a specified unlawful activity, knowing that the property involved in the transaction represented the proceeds of some form of unlawful 16

17 activity, and with the intent of promoting that carrying on of specified unlawful activity, in violation of 18 U.S.C. 1956(a)(1)(A)(i); and (2) the conducting of a financial transaction affecting interstate commerce that involved the proceeds of a specified unlawful activity, and knowing the transaction 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 18 U.S.C. 1956(a)(1)(B)(i). PURPOSE AND OBJECT OF THE CONSPIRACY 29. As set out in more detail in paragraph 23, the purpose of the conspiracy was to make money and create wealth for the defendants. The object of the conspiracy was to facilitate the use of cheap labor using undocumented aliens to maximize the financial benefits to the defendants. In so doing, the defendants necessarily encouraged and induced persons to reside in the United States they knew or recklessly disregarded were unlawfully present. MANNER AND MEANS OF THE CONSPIRACY 30. To accomplish the purpose and object of the conspiracy, the defendants engaged in financial transactions affecting interstate commerce that involved a specified unlawful activity, that being inducing and encouraging undocumented 17

18 aliens they knew were unlawfully present to reside in the United States in violation of 8 U.S.C. 1324(a)(1)(A)(iv), knowing the property involved in the transactions represented the proceeds of unlawful activity, and did so with the intent of promoting the carrying on of the specified unlawful activity. 31. Also to accomplish the purpose and object of the conspiracy, the defendants engaged in financial transactions affecting interstate commerce that involved the proceeds of a specified unlawful activity (inducing and encouraging undocumented aliens to reside in the U.S.), knowing the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of the specified unlawful activity. 32. The financial transactions were an integral part of the venture orchestrated by Jose Torres at the direction of defendants Stubbs and Gallegos designed to facilitate the use of undocumented aliens in drywall construction projects, which enabled subcontractors to decrease their labor costs and increase their profit margins. OVERT ACTS IN FURTHERANCE OF THE CONSPIRACY 33. The defendants engaged in the conduct alleged in paragraph 24 above. 34. In addition, Jose Torres sometimes would simply cash checks given to 18

19 him by crew leaders and covertly disperse the cash to them, and his delivery of cash from deposited checks was done in a secretive and surreptitious manner so as to avoid suspicion and undue attention, such as placing the cash in envelopes, and handing the envelopes to the persons picking them up quickly and quietly. 35. In addition to making the drywall crew checks payable to Jose R. Torres, Countess and Plaster Masters frequently listed the name of the crew leader in the memo line of the checks, an acknowledgement the payments were intended for the drywall crew doing the work, not Jose R. Torres. 36. Furthermore, Countess and Plaster Masters delivered the weekly checks not to Jose Torres or Jose R. Torres, but directly to the crew leaders or associates, often the person designated on the memo line of the check. 37. Not only were checks processed within the national banking system, thereby affecting interstate commerce, the drywall projects involved materials manufactured in various states, and the projects themselves often were for businesses engaged in interstate commercial activity. 38. The property involved in the transactions cash and checks were 19

20 the proceeds of unlawful activity because they were obtained and retained, directly or indirectly, including the gross receipts of such activity, as a result of payment for the completed drywall construction projects from the person or entity that contracted with Plaster Masters to perform the projects, and the projects were completed at a lower cost not possible without the use of undocumented workers who were thereby being induced and encouraged to reside unlawfully in the United States. COUNTS U.S.C. 1956(a)(1)(B)(i) Laundering of Monetary Instruments 39. Paragraphs 1-38 are incorporated by reference. 40. On or about the dates set forth below, within the District of Kansas and elsewhere, the defendants, KEITH L. COUNTESS, PLASTER MASTERS, L.C., MARCOS LANE STUBBS, LUIS FELIPE GUERRERO-GUERRERO, JOSE FELIPE HERNANDEZ-, MAURO PAPALOTZI, and ISAAC GALLEGOS, knowingly and intentionally conducted a financial transaction affecting interstate 20

21 commerce, to wit: the issuance of checks; the depositing of checks; the cashing of checks; and the delivery of cash; involving the proceeds of a specified unlawful activity, that is, property derived, directly or indirectly, by inducing and encouraging persons not lawfully present to reside in the United States; knowing the transaction was designed in whole and in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds; and that while conducting the financial transaction, knew the financial transaction represented the proceeds of some form of unlawful activity, represented as follows: Count Check Date Amount Payable to Memo Line Count 11 10/19/2012 $2, Jose R. Torres Count 12 02/15/2013 $6, Jose R. Torres Count 13 05/17/2013 $3, Jose R. Torres Count 14 06/21/2013 $5, Jose R. Torres Count 15 07/15/2013 $2, Jose R. Torres Count 16 07/19/2013 $2, Jose R. Torres Count 17 10/04/2013 $5, Jose R. Torres Count 18 03/14/2014 $5, Jose R. Torres (blank) (blank) Jorge Mauro Felipe Hernandez Mauro (Papalot) Jorge Fillipi 21

22 Count 19 04/18/2014 $5, Jose R. Torres Count 20 09/05/2014 $4, Jose R. Torres Jorge Fillipi All in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i) and 2. COUNT U.S.C and 1344(2) Conspiracy to Commit Bank Fraud 41. Paragraphs 1-40 are incorporated by reference. 42. Between about October 2011 and about October 2014, within the District of Kansas and elsewhere, the defendants, KEITH L. COUNTESS, PLASTER MASTERS, L.C., MARCOS LANE STUBBS, LUIS FELIPE GUERRERO-GUERRERO, JOSE FELIPE HERNANDEZ-CALVILLO, MAURO PAPALOTZI, and ISAAC GALLEGOS, knowingly and intentionally combined, conspired, and agreed with each other and with other persons both known and unknown to the Grand jury to commit an offense against the United States, to wit: Bank Fraud in violation of 18 U.S.C. 1344(2), and one or more of such person did an act to effect the object of the conspiracy, as follows: 22

23 PURPOSE AND OBJECT OF THE CONSPIRACY 43. As set out in more detail in paragraphs 23 and 29, the purpose of the conspiracy was to make money and create wealth for the defendants. The object of the conspiracy was to facilitate the use of cheap labor using undocumented aliens to maximize the financial benefits to the defendants. In so doing, the defendants obtained moneys and funds under the custody and control of a financial institution by means of false and fraudulent pretenses, representations, and promises. MANNER AND MEANS OF THE CONSPIRACY 44. To accomplish the purpose and object of the conspiracy, the defendants utilized the banking services of Bank of America and Wells Fargo Bank, federally insured financial institutions. OVERT ACTS IN FURTHERANCE OF THE CONSPIRACY 45. The overt acts alleged in paragraphs 24 and and hereby realleged. 46. Furthermore, in about August 2011, at the advice and direction of defendants Stubbs and Gallegos, Jose Torres opened bank accounts at the Bank of America branch at 175 N. Clairborne, Olathe, Kansas, and the Wells Fargo Bank branch at 2137 E. Santa Fe, Olathe, in the business name of Jose R. Torres 23

24 . 47. Jose Torres falsely and fraudulently represented to the banks, both of which are insured by the Federal Deposit Insurance Corporation and therefore are financial institutions as defined by federal law, that he was in the drywall construction business and that he intended to use the accounts lawfully in connection therewith. However, as the defendants well knew, Jose Torres was not in the drywall construction business but, instead, was a financial conduit in an unlawful scheme to permit and facilitate Plaster Masters and other drywall subcontractors to use undocumented workers on drywall construction projects. 48. In fact, Torres used the banks and bank accounts in his unlawful venture, depositing thousands of subcontractor checks, including checks from Plaster Masters, into his account as if he were being paid for working on drywall construction projects. He then withdrew cash from those accounts, less his five percent fee, which he then delivered to leaders of drywall construction crews so those leaders could, unlawfully, pay the undocumented alien workers in cash. 49. Specifically as to Plaster Masters, between about October 2011 and about October 2014, Torres deposited about 250 Plaster Masters checks made payable to Jose R. Torres totaling about $735,000 into the bank accounts. 24

25 50. Neither Torres, nor any defendant, disclosed to the banks that Jose R. Torres was not, in fact, a legitimate business, but instead part of an unlawful scheme to enable subcontractors to pay lower wages to undocumented alien workers and avoid the expenses associated with legitimate employment or contracting that included maintaining proper workers compensation insurance, liability insurance, making employee income tax and Social Security withholdings (and remitting those withholdings to state and federal tax agencies), and employing or permitting to be employed only those persons authorized to be employed within the United States. 51. Torres also sometimes simply cashed checks at the banks for crew leaders or subcontractors and returned the cash to them so they could pay themselves and their crews, using his account status and good standing at the banks to facilitate the cashing of the checks, again failing to disclose the true nature of his activities and those of the persons for whom he was cashing the checks. But for Torres s false and fraudulent pretenses and representations to the banks, they would not have cashed the checks nor permitted Torres to have accounts or do business with the banks. All in violation of Title 18, United States Code, Section 1349 with reference 25

26 to Title 18, United States Code, Section 1344(2). COUNTS U.S.C. 1344(2) Bank Fraud 52. Paragraphs 1-51 are incorporated by reference. 53. On or about the dates set forth below, within the District of Kansas and elsewhere, the defendants, KEITH L. COUNTESS, PLASTER MASTERS, L.C., MARCOS LANE STUBBS, LUIS FELIPE GUERRERO-GUERRERO, JOSE FELIPE HERNANDEZ-CALVILLO, MAURO PAPALOTZI, and ISAAC GALLEGOS, knowingly and intentionally executed a scheme and artifice to obtain money and funds under the custody and control of a financial institution by means of false and fraudulent pretenses, representations, and promises, in that he represented to Bank of America and Wells Fargo Bank that he operated a legitimate drywall construction business called Jose R. Torres and was using the bank accounts for lawful purposes when, instead, he operated unlawfully as a financial intermediary in a scheme to permit Plaster Masters and other drywall 26

27 subcontractors to use undocumented workers on drywall construction projects and, in so doing, deposited for processing and credit the following Plaster Masters checks on the dates and in the amounts listed below, then obtained cash from the banks for delivery to drywall crew leaders: Count Check Date Amount Payable to Memo Line Count 22 06/07/2013 $4, Jose R. Torres Count 23 09/06/2013 $5, Jose R. Torres Count 24 04/11/2014 $5, Jose R. Torres Count 25 04/11/2014 $4, Jose R. Torres Count 26 04/11/2014 $5, Jose R. Torres Count 27 06/13/2014 $7, Jose R. Torres Count 28 07/03/2014 $2, Jose R. Torres Count 29 07/03/2014 $6, Jose R. Torres Count 30 07/30/2014 $4, Jose R. Torres Count 31 09/08/2014 $3, Jose R. Torres Jorge Mauro Fillipi Jorge Mauro Fillipi (blank) Fillipi Jorge (blank) all in violation of Title 18, United States Code, Sections 1344(2) and

28 CRIMINAL FORFEITURE 54. The allegations in paragraphs 1-53 are realleged and by this reference fully incorporated herein for the purpose of alleging forfeiture to the United States of America of certain property in which the defendants have an interest, pursuant to the provisions of Title 8, United States Code, ' 1324(b), Title 18, United States Code, 1956(a)(1)(B)(i) and 2, and Title 18, United States Code, '' 1344(2) and 2, and the procedures outlined in Title 21, United States Code, ' 853 and Title 28, United States Code, ' Upon conviction of any violation of Title 8, United States Code, ' 1324(a), each defendant shall forfeit to the United States the gross proceeds of such violation, and any property traceable to such proceeds, pursuant to Title 8, United States Code, ' 1324(b) and pursuant to Title 18, United States Code, ' 982(a)(6). Upon conviction for any violation of Title 18, United States Code, 1546, each defendant shall forfeit to the United States the gross proceeds of such violation, and any property traceable to such proceeds, pursuant to Title 18, United States Code, 982(a)(1). Upon conviction of any violation of Title 18, United States Code, 1344(2), each defendant shall forfeit to the United States the proceeds of such violation, pursuant to Title 18, United States Code, 982(a)(2). 28

29 56. The property subject to the forfeiture includes, but is not limited to, the following: a. REAL PROPERTY b. PROCEEDS CONTAINED IN BANK ACCOUNTS c. SUBSTITUTE ASSETS If the property described above as being subject to forfeiture, as a result of any act or omission of any defendant, (1) cannot be located upon the exercise of due diligence; (2) has been transferred or sold to, or deposited with a third person; (3) has been placed beyond the jurisdiction of the Court; (4) has been substantially diminished in value; or (5) has been commingled with other property which cannot be subdivided without difficulty; it is the intent of the United States, pursuant to Title 21, United States Code, ' 853(p), as incorporated by Title 18, United States Code, ' 982(b), to seek forfeiture of any other property of the defendants up to the value of the above forfeitable property or to seek return of the property to the jurisdiction of the Court so that the property may be seized and forfeited. 29

30 All pursuant to the provisions of Title 8, United States Code, ' 1324(b), and the procedures outlined in Title 21, United States Code, ' 853(p). A TRUE BILL. 12/18/2014 /s/ Foreman Date Foreperson of the Grand Jury BARRY R. GRISSOM United States Attorney District of Kansas Brent Anderson #11611 Assistant United States Attorney District of Kansas 301 North Main, Suite 1200 Wichita, Kansas Jabari Wamble #22730 Assistant United States Attorney District of Kansas 500 State Avenue, Suite 360 Kansas City, KS (913) (913) (fax) [It is requested that jury trial be held in Kansas City, Kansas.] 30

31 PENALTIES Count 1, Conspiracy to Encourage or Induce Undocumented Aliens to Reside in the U.S. for Commercial Advantage or Private Financial Gain, 8 U.S.C. 1324(a)(1)(A)(iv) and (v)(i); Not more than 5 years in prison Not more than a $250,000 fine Not more than 3 years of supervised release $100 special crime victims fund assessment Counts 2-9, Encouraging or Inducing Undocumented Aliens to Reside in the U.S., 8 U.S.C. 1324(a)(1)(A)(iv) and (v)(ii): Not more than 5 years in prison Not more than a $250,000 fine Not more than 3 years of supervised release $100 special crime victims fund assessment Count 10, Conspiracy to Launder Monetary Instruments, 18 U.S.C. 1956(a)(1)(A)(i) and 18 U.S.C. 1956(a)(1)(B)(i); Not more than 5 years in prison Not more than a $250,000 fine Not more than 3 years of supervised release $100 special crime victims fund assessment Counts 11-20, Money Laundering, 18 U.S.C. 1956(a)(1)(B)(i); Not more than 20 years in prison Not more than a $500,000 fine or twice the value of the property involved in the transactions Not more than 3 years of supervised release $100 special crime victims fund assessment 31

32 Count 21, Conspiracy to Commit Bank Fraud, 18 U.S.C and 1344(2); Not more than 5 years in prison Not more than a $250,000 fine Not more than 3 years of supervised release $100 special crime victims fund assessment Counts 22-31, Bank Fraud, 18 U.S.C. 1344(2) and 1349: Not more than 30 years in prison Not more than a $1 million Not more than 3 years of supervised release $100 special crime victims fund assessment 32