U.S. vs. Miguel Trevino, et al
A joint investigation by the FBI and IRS-CI targeted the money laundering activities of the Los Zetas Drug Trafficking Organization, known for its extreme violence. Led by brothers Miguel Angel Trevino-Morales and Oscar Omar Trevino-Morales, the Zetas funneled drug profits to their brother in the U.S., who used the funds to buy, breed, and race quarter horses in the U.S. This scheme involved buying horses, depositing illegal proceeds into co-conspirators' accounts, and extorting funds for horse-related expenses. The Zetas also engaged in fraudulent transactions to create the illusion of legitimate income. Despite challenges in prosecution, including the complex financial tracing and legal strategies required, the investigation led to the indictment of nineteen defendants and the seizure of assets worth over $30 million, setting a precedent for similar cases nationwide. I was the government’s designated financial and money laundering expert witness at trial responsible for the financial analysis of the two main defendant’s financial records. My analysis and testimony proved that such records failed to demonstrate the cash flow needed to support the ongoing transactions and expenses related to their purported legitimate quarter horse business.
U.S. vs. Charles McAllister
McAllister orchestrated a fraudulent scheme through his company, Bullion Direct, Inc. (BDI), a web-based service based in Austin, TX. BDI allowed customers to purchase and store precious metals, with options to advance cash for future purchases and trade metals through its website and proprietary platform named Nucleo. Customers could buy metals via catalog sales or exchanges, with BDI earning commissions on transactions. However, BDI did not always have the metals on hand or immediately purchase them, leading to discrepancies in customer accounts. Additionally, BDI failed to segregate customer funds, using them for company expenses and personal gain. BDI filed for bankruptcy in 2015, owing customers $24 million. McAllister fraudulently obtained over $16 million through the scheme, misrepresenting the company's financial status. I was the government’s designated financial expert witness at trial, responsible for the financial analysis of both BDI and McAllister individually. My analysis and testimony at trial proved the $16 million loss amount to approximately 6,500 victims over the course of 15 years.
U.S. vs. Sean Hager
Sean Hager devised a scheme to defraud his employer, a local electronics dealer, by creating a shell company, Echt Electronics, LLC (ECHT). He used ECHT to purchase electronic components at lower prices than what his employer paid, resulting in a profit exceeding $1.3 million. Hager, a trusted employee, managed the "PCP" line of business, which involved purchasing components unique to Dell. He used his position to obtain confidential and proprietary business information to orchestrate the scheme, portraying ECHT as a legitimate vendor while concealing his ownership. The scheme involved purchasing components from eBay, paying with PayPal linked to personal credit cards, and then reselling them to his employer through ECHT at inflated prices. I was the sole case agent and summary witness at trial responsible for tracing the purchase and sale of each PCP component through Echt and determining total loss and restitution amount.
U.S. vs. Nicolette Osborne
Nicolette Osborne orchestrated two fraudulent schemes through her employer, Bison Global Logistics, Inc. (BGL) a transportaion company, involving factoring and a tax scheme. In the factoring scheme, invoices were inflated and provided to the factoring company. In order to hide her scheme, fake email accounts were created as was a fake website used to provide purported repayment notices. In all, the factoring company was defrauded in excess of $7 million. To avoid paying taxes on her ill-gotten gains, Nicolette Osborne created a fake employee in their payroll system and funneled commissions to a personal bank account, evading reporting $1.8 million in income.
U.S. vs. Gilberto Villarreal-Arelis, et al
IRS-CI and DEA targeted five brothers running a Drug Trafficking Organization (DTO) known as "Los Piojos." These brothers, along with family members and others, formed the Villarreal Money Laundering Organization (MLO), which laundered narcotics proceeds for the Gulf and Los Zetas cartels. The MLO imported, transported, and distributed cocaine and marijuana from Central and South America, using nominees and business fronts to conceal their activities. They also purchased horses and real estate to launder money, structured funds into various bank accounts, and transported bulk currency to Mexico. I was responsible for the financial aspects of the investigation and more specifically for a co-conspirator who was a former federal prosecutor in Mexico and Director of Intelligence for a Mexican state. Efforts included review of real estate transactions, public financial filings, loan documents, and financial statements for nominee companies to show lack of economic effect in form and substance.
U.S. vs. Kurt Barton
Through his company, Triton Financial, Kurt Barton and John DiMeglio operated a fraud scheme and raised money for purported investment in commercial real estate through their affiliation with the Heisman Trophy Trust and network with NFL players. Victims included current and former college and professional football players and church members. Money raised was to be used for the acquisition of commercial real estate or raw land, refurbishment of these properties and subsequent sale. In excess of $75 million was raised and lost as a result of the fraud scheme. Additionally, conventional and “hard money” loans were obtained in an effort to subsidize the loss from the raises due to Barton’s personal use of funds. These loans were obtained with false and fraudulent information. I was responsible for the financial analysis of each raise and summary witness at trial testifying to the tracing of funds through various bank accounts and entities, and determining loss and restitution amounts.