Case 3:12-cr-00061-EBB Document 1

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UNITED STATESDISTRICT COURT DISTzuCTOF CONNECTICUT GRANDJURYB-1I-1 UNITED STATES AMERICA OF v. JULIUSC. BLACKWELDER

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Criminal NO. 3:\2CRGL Glo

VIOLATIONS: l8 U.S.C.$ 1341 [Mail Fraud] 18U.S.C.$ 1343 [WireFraud] l8 U.S.C.$ 1957 [Money Laundering] INDICTMENT

The GrandJuryCharges: COUNT ONE (Mail Fraud) .Atall timesrelevant this Indictment: to The Defendant 1. Defendant JULIUSC. BLACKWELDER("BLACKWELDER")resided the in

State Connecticut of until20l0. 2. For approximately eight years,includingduringthe events forth below, set

BLACKWELDERwasthe BranchPresident Bishopof the Church Jesus or of Christof Latterday Saints congregation located Trumbull,connecticut in (the..church"). 3. BLACKWELDER alsopurported bethe organizer an informalinvestment to of

pool calledFriend's Investment Groupor Friends JuliusBlackwelder ("Friend'sInvestment of Group"). 4. BLACKWELDER controlledbankaccounts certainfinancialinstitutions at that

wereengaged andthe activitiesof which affected in interstate foreigncommerce, and including,

Bankending 5820. in

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The Victim-Investors 5. The victim-investors known to the Grand Jury consistedof approximately six

individuals, ffiffiY of whom were membersof the Church. Certain victim-investors known to the Grand Jury are refenedto in this Indictmentby their initials as follows: R.A., D.C., J.G.,D.H., and J.L. The Schemeand Artifice to Defraud 6. From approximately 2005 to the present,the precise datesbeing unknown to the

Grand Jury, in the District of Connecticut and elsewhere,the defendant,JULIUS C. BLACKWELDER, willfully, knowingly, and with intent to defraud, devised and intendedto devise a schemeand artifice to defraud and to obtain money and property by meansof materially false and fraudulent pretenses, representations, and promises. 7. The purposeof the schemewas for BLACKWELDER to enrich himself by

defrauding individuals out of money and property by meansof materially false and fraudulent pretenses, representations, promises. and 8. It was part of the schemethat BLACKWELDER falsely and fraudulently

representedto victim-investors that he was an experiencedand successfulinvestor in commodities futures contracts. In fact, as BLACKWELDER well knew, he was not a successful commoditiesinvestor,but insteadconsistentlylost money investingin commodities. 9. It was further part of the schemethat BLACKWELDER falsely and fraudulently

representedto victim-investors that he would invest their funds in commodities futures contracts, in some instancesas a part of Friend's Investment Group. BLACKWELDER falsely and fraudulently represented theseinvestmentsto be safe,in many instancesguaranteeingthe victimreturn on their investment. In

the victim-investors' moneyasrepresented, instead and divertedtheir fundsfor his own personal

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use and benefit- BLACKWELDER used the diverted funds for various purposes,including repaying his earlier victim-investors, constructing his waterfront home, and repaying his lenders, including a Troubled Asset Relief program-recipient bank. 10. It was further part of the schemethat BLACKWELDER prepared,executed,and

provided certain documents,including, among others,promissory notes, offering memoranda, and fraudulent accountstatements, which containedfalse and fraudulent representations to victim-investors. I 1. It was further part of the schemethat BLACKWELDER causednumerousvictim-

investorsto invest a total of more than $400,000with him. 12. It was further part of the schemethat BLACKWELDER sought to lull victim-

investors into believing that their investment funds had been investedas represented and would be repaid' He did this to prevent and forestall the discovery of his schemeand the diversion of thevictim-investors' funds. In order to achievethis goal, BLACKWELDER issuedperiodic paymentsto certain victim-investors, provided accountupdates,and promised additional payments,when in fact, there were no actual investmentsand BLACKWELDER sometimesused portions of other victim-investors' funds to make such lulling payments. Execution of the Schemeand Artifice 13. On or about the date set forth below, in the District of Connecticut and elsewhere,

for the purpose of executing and attempting to executethe aforementionedschemeand artifice to defraud and to obtain money and property by meansof materially false and fraudulent pretenses, representations, and promises as describedabove,the defendant,JULIUS C. BLACKWELDER, knowingly did causeto be delivered by United StatesMail and private commercial interstate ions thereon, an item to be sent as set forth below, constituting a

countof this Indictment:

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Count

Date

From

To

Description

Mailed$500lullingpayment 2/17t11 BLACKWELDER Victim-investor andletterpromisingfuture R.A. payment.

In violation of Title 18,United Statescode, Sectionsl34r and,2. COLTNTSTWO THROUGH SIX (Wire Fraud) 14' The allegationscontainedin Paragraphs1 through 12 of this Indictment are

repeatedand reallegedand incorporatedby referenceas though fully set forth herein. 15. From approximately 2005 to the present,the precisedatesbeing unknown to the

Grand Jury, in the District of Connecticut and elsewhere,the defendant,JULIUS C. BLACKWELDER, willfully, knowingly, and with intent to defraud,devised and intended to devise a schemeand artifice to defraud and to obtain money and property by meansof materially false and fraudulent pretenses, representations, and promises,as more fully set forth herein, and for the purposesof executing such schemeand artifice, did knowingly transmit, and causeto be transmitted, by meansof wire communication in interstateand foreign commerce,certain writings, signs,signals,and sounds. 16. Specifically,BLACKWELDER sentemailsto victim-investorswith.the intent

and purposeof soliciting investments,and later with the intent and purpose of lulling them into believing that their investment funds had been invested as represented and would be repaid. He did this in an effort to prevent and forestall the discovery of his schemeand to avoid the victiminvestors leaming of the true use of their funds. 17. else and artifice to defraud and to obtain money and property by meansof materially false and -4On or about the dates set forth below, in the District of Connecticut and

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fraudulent pretenses, representations, promises described and as above, defendant, the JULIUS C' BLACKWELDER,did knowinglytransmit,andcause be transmitted, means to by of wire communication interstate foreigncommerce, in and certainwritings,signs,signals, sounds, and eachwiring assetforth belowconstituting separate a countof this Indictment: Count Date F rom To Descrintion

Lulling emailrepresenting Victim-investor fundshadbeeninvested in 4t30t08 BLACKWELDER D.H. commodities futurescontracts andpromisingfuturepayment.

r0/24t08 BLACKWELDER

Email representingfunds had Victim-investor beeninvested in commodities D.C. futures contractsand solicitins investment.

8tsn0

Lulling email BLACKWELDER Victim-investor o'Account attaching D.C. Update."

5 6

t0/23n1 BLACKWELDER Victim-investor Lulling emailpromisingfuture

J.L. payment. payment.

12tr&nl BLACKWELDER Victim-investor Lulling emailpromisingfuture

D.H. All in violationof ritle 18,UnitedStates code, sections1343and2. COLTNTS SEVENTHROUGHNINE (Engaging MonetaryTransactions In In Property DerivedFrom Specified UnlawfulActivities) 18. Theallegations Paragraphsthrough12 andParagraphs through16of this in 1 15

Indictmentarerealleged incorporated reference thoughfully setforth herein. and by as 19. On or about dates the listedbelow,the defendant, JULIUSC. BLACKWELDER,

did knowingly engage attempt engage monetary and to in transactions criminally derived in propertyof a valuegreater than$10,000, involving financialinstitutions all that areengaged in,

specified unlawful activity, that is mail fraud in violation of Title 18. United StatesCode. Section

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l34l and wire fraud in violation of Title 18, United StatesCode, Section 1343, eachmonetary transactionas set forth below constituting a separate count of this Indictment:

Count

Date

Funds Attributable To: Victim-Investors D.H. andJ.G.

Monetarv Transaction

Purchase of$15,000 cashier's check #0595710 with victim-investors' fundswithdrawnfrom 10tr0t07 BLACKWELDER's Bankof Americaaccount ending in8702. Purchase $31,250 of cashier's check #0595711 Victim-Investors with victim-investors' fundswithdrawnfrom t0t10t07 D.H.andJ.G. BLACKWELDER's Bankof Americaaccount endingin8702. Purchase $15,000 of cashier's check#6309135 Victim-Investor with victim-investors' fundswithdrawnfrom 7t3t08 R.A. BLACKWELDER's People's Unitedaccount ending 5820. in
All in violation of ritle 18,United Statescode, Sections1957 and2. FORFEITURE ALLEGATIONS (Forfeiture Related To Mail and Wire Fraud) Upon conviction of one or more of the mail fraud and wire fraud offensesalleged in

Counts One through Six of this Indictment, JULIUS C. BLACKWELDER shall forfeit to the United Statesof America, pursuantto Title 18, United StatesCode,Section931(a)(1)(C)and Title 28, United StatesCode, Section 2461(c), all right, title, and interest in any and all property, real or personal,that constitutes is derived from proceeds or traceable violations of Title 18, to United StatesCode, Sections1341or l343,including but not limited to the following: Money Judgment: A sum of money equal to the total amount of any property, real or personal, which constitutes is derivedfrom proceedstraceable violationsof Title 18. United States or to Code, Sectionsl34l or 1343. If any of the above-described forfeitable property, as a result of any act or omission of the defendant,cannot be located upon the exerciseofdue diligence, has been transferred, sold to, or

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deposited with a third party,hasbeenplacedbeyondthejurisdictionof the Court,hasbeen substantially diminished value,or hasbeencommingled in with otherpropertythat cannotbe dividedwithout difficulty, it is the intentof the UnitedStates, pursuant Title 21, United States to Code,Section 853(p), incorporated Title 28, UnitedStates as by Code, Section 2461(c),to seek forfeitureof anyotherpropertyof the defendant to the valueof theforfeitable up property described above. All in accordance Title 18,UnitedStates with Code,Section 931(a)(1) incorporated as by Title 28, UnitedStates Code,Section 2461(c),and Rule 32.2(a),Federal Rulesof Criminal Procedure. FORFEITURE ALLEGATIONS (Forfeiture Related Money Laundering) To Uponconviction oneor moreof themoneylaundering of offenses alleged Counts in seventhroughNine of this Indictment, JULIUS c. BLACKWELDER shallforfeit to the United States America, of pursuant Title 18,UnitedStates to Code,Section 982(a)(l),all right,title, and interestin any andall moneyandanyotherproperty,real or personal, involvedin suchoffenses in violationof Title 18,UnitedStates Code,Section1957,and,all property traceable such to property, including not limitedto the followins: but MoneyJudgment: A sumof moneyequalto the total amountof any property, real or personal, which constitutes is derived or from proceeds traceable violations Title 18.UnitedStates to of code,sections 1341 1343, or including not limitedto $61,250. but If any of the above-described forfeitableproperty,asa resultof any act or omissionof the defendant, cannot located be uponthe exercise ofdue diligence, been has transferred, to, or sold deposited with a third party,hasbeenplacedbeyondthejurisdictionof the Court,hasbeen substantially diminishedin value,or hasbeencommingled with otherpropertywhich cannotbe -7 -

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divided without difficulty, it is the intent of the United States,pursuantto Title 21, United States Code' Section853(p),as incorporated Title 18, United StatesCode,Sectiongt2(b),to seek by forfeiture of any other property of the defendantup to the value of the forfeitable property described above.

All in accordance Title 18,UnitedStates with Code,Section 982(a)(1), Rule 32.2(a), and Federal Rulesof Criminalprocedure. A TRUE BILL

/s/
FOREPERSON

LINITED STATESOF AMERICA

DAVID B. FEIN LINITED STATESATTORNEY

NATHAN N. FRANCIS SPECIALASSISTANTUNITED STATESATTORNEY

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