Case: 1:08-cr-00415 Document #: 74 Filed: 06/19/15 Page 1 of 9 PageID #:449

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
UNITED STATES OF AMERICA

)
)
)
)
)

v.
PETER G. ROGAN

No. 08 CR 415
Judge Harry D. Leinenweber

GOVERNMENT=S SUBMISSION IN SUPPORT OF PRETRIAL DETENTION

The UNITED STATES OF AMERICA, by and through its attorney, ZACHARY T.
FARDON, United States Attorney for the Northern District of Illinois, respectfully submits the
following in support of its request that defendant Peter G. Rogan (Rogan) be detained pending
trial pursuant to 18 U.S.C. ' 3142(f)(2)(A).
BACKGROUND
Rogan fled the United States for Canada in 2006 after the United States obtained a trial
verdict in this district, resulting in a civil judgment of approximately $64 million against Rogan.
Soon thereafter, one of Rogans creditors obtained an additional judgment in this district of
approximately $124 million against Rogan.

Rogan has remained in Canada since 2006.

Abruptly, in June 2015, Rogan unexpectedly announced that he would waive extradition after
years of intensely resisting extradition and removal proceedings in Canada.

This sudden

about-face led to his return to the United States in the custody of the United States Marshals
Service on June 18, 2015.

Having absconded from the United States for nearly 10 years, and

viewed as a serious flight risk with potential unknown, unidentified assets, the United States
seeks Rogans detention pending trial pursuant to 18 U.S.C. ' 3142(f)(2)(A).

Rogans

substantial risk of flight is exacerbated by his long history of contumacious disregard for the
authority of this court, including repeated, willful disobedience of court orders.

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HISTORY OF COURT PROCEEDINGS

Prior to 2001, Rogan was the CEO of Edgewater Medical Center (Edgewater) in
Chicago. On May 8, 2002, the United States Attorney=s Office for the Northern District of Illinois
filed a False Claims Act lawsuit (02 C 3310) against Rogan (reported in United States v. Rogan,
459 F. Supp. 2d 692 (N.D. Ill 2006). The government=s civil action alleged that Rogan and
entities he controlled were responsible for a multi-million dollar health care fraud on the United
States that occurred at Edgewater.
In addition, on November 14, 2002, Dexia Crdit Local (Dexia), which had extended a
line of credit to Edgewater in connection with certain bonds, also filed a civil complaint against
Rogan, and several of his related companies entitled Dexia Crdit Local v. Rogan et al., 02 C 8288
(N.D. Ill.). Dexia alleged that Rogan had engaged in fraud and breach of fiduciary duty by
directing the criminal health care fraud scheme at Edgewater and concealing the existence of that
scheme from Dexia.
The United States went to trial against Rogan in 2006 and presented extensive
documentary evidence and testimony proving Rogan=s active participation in the fraud conduct.
In June 2006, the parties submitted post-trial briefs to the district court judge and the United States
sought a judgment in excess of $69 million. Soon thereafter, in July 2006, with the threat of a
multi-million judgment now imminent and the United States now aware of Rogan=s substantial
Bahamian assets, Rogan began to orchestrate his exit from the United States. The facts and
circumstances described below demonstrate that Rogan=s abrupt departure from the United States
to Canada, a country where he had no seeming ties or connections, was to avoid and evade the

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jurisdiction of the United States.1 Indeed, it was the beginning of his carefully calculated effort to
frustrate the collection of the judgments rendered against him by continuously ignoring his
ongoing and serious responsibilities as a litigant and repeatedly disobeying clearly worded orders
entered by federal judges in the two cases. In the process, Rogan obstructed justice, committed
perjury, and actively participated in a conspiracy to obstruct justice and render false statements,
actions for which he currently stands charged.
Records of the Bahamian trustee, Oceanic Bank and Trust Co. (OBAT) reveal that in
July 2006, co-defendant Fred Cuppy,2 Rogan=s co-defendant, long-time friend, counselor and
conduit to OBAT in the Bahamas, began requesting credit cards that would allow Rogan and his
wife to draw funds directly from the Bahamian Trust without making requests to the Trustee. In
early August, Rogan returned the credit card application to OBAT with a letter stating that he and
his wife would Aboth be traveling over the near future.@
On September 29, 2006, U.S. District Judge John W. Darrah entered judgment in favor of
the United States and against Rogan in the amount of $64,259,032.50. See United States v.
Rogan, 459 F. Supp. 2d 692 (N.D. Ill 2006). In 2008, Rogan=s arguments on appeal were rejected
and the judgment against him was affirmed by the United States Court of Appeals for the Seventh
Circuit. 517 F.3d 449 (7th Cir. 2008).
1

In answering questions in the case of Dexia Crdit Local v. Rogan, Rogan admitted that
prior to October 2006, he maintained residences in Chicago, Illinois and Valparaiso, Indiana, but
never mentioned a residence in Canada nor that he ever stayed in Canada for any substantial period
of time. Although Rogan maintained to the Canadian Immigration Board that he left the U.S.
because he Adid not like the direction the country was going,@ even the presiding official of the
Immigration Board found that the timing of Rogan=s application for permanent residence in
Canada Ais certainly suspicious.@
2

On November 27, 2012, Cuppy pleaded guilty to Count 7 of the Indictment. On March
14, 2013, Cuppy was sentenced to a one year and one day in prison.
3

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On October 9, 2006, Rogan, simultaneously fired counsel representing him and his various
business entities in all legal proceedings pending in the United States. On that date, Rogan
departed the United States never to return.
On October 16 and October 18, 2006, and only some two weeks after the Court entered the
$64 million judgment against him, his wife opened three accounts at HSBC bank in Vancouver
Canada.
Shortly after Rogan terminated his attorneys in the fall of 2006, the United States learned
that Rogan had abandoned his business offices in Merrillville, Indiana. With Rogan=s consent,
the FBI entered the space and found some corporate records but more than a hundred empty
folders that, based on their labels, previously contained financial records related to Rogan and his
businesses. Amidst the discarded remains in Rogan=s former offices, the FBI found a July 25,
2006 invoice to Rogan from a document destruction company for its services in destroying 47
boxes of documents.3 The document destruction that Rogan ordered in or about July coincides
with Cuppy=s efforts to secure a credit card for the Rogans that would allow him the use of the
funds of his Bahamian trust worldwide simply by presenting the card.
Records of OBAT reveal that On October 20, 2006, Cuppy began effectuating the transfer
of $1.5 million from the Bahamian Trust to Rogans wife. On October 21, 2006, Rogans wife
signed a lease for a residence in Vancouver, British Columbia. OBAT records show that between
3

This was not Rogan=s first effort to destroy evidence. In issuing his Judgment Order,
U.S. District Court Judge Darrah found that in 2000, Rogan was aware that his hospital and a
subordinate were being investigated by the authorities, and he directed the subordinate to destroy
his computer. The district judge also found that during 2000, knowing that grand jury subpoenas
had been served on one of his entities, Rogan hired a document destruction service to destroy
twenty boxes of documents taken from another of his entities. See United States v. Rogan, 459 F.
Supp. 2d 692 at 707, 724-26.
4

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November 3 through November 16, 2006, Rogans wife also caused $2.25 million to be transferred
from the Bahamian Trust OBAT to her new HSBC accounts in Vancouver.
On May 3, 2007, the court entered a $124,280,712.79 default judgment against Rogan in
Dexia v. Rogan, et al.
ROGANS DISOBEDIENCE OF COURT ORDERS
Rogan Disobeys Orders of Court in 2006
On October 18, 2006, in Dexia v. Rogan, Magistrate Judge Sidney Schenkier ordered
Rogan to personally appear in court in Chicago on October 24, 2006 to address how Rogan
planned to proceed, stating with unmistakable clarity that the Afailure of Mr. Rogan to personally
appear will result in issuance of a rule to show cause.@
Rogan did not appear before the court as ordered on October 24, 2006. Magistrate Judge
Schenkier then entered another order again directing Rogan to appear in court on November 1,
2006. The order advised Rogan that failure to appear on November 1st would result in sanctions
being entered against him. Rogan did not appear on November 1, 2006, thus disobeying two
orders issued by Magistrate Judge Schenkier. The court imposed a monetary sanction against
Rogan for his failure to appear as ordered. Rogan has never paid this obligation.
Rogan Disobeys Orders of Court in 2008
Having already fled the United States to Canada in 2006, on June 20, 2008, U.S. District
Judge John W. Darrah issued a citation to discover assets directed to Rogan in connection with the
$64 million judgment entered against him in United States v. Rogan (02 C 3310). The citation
was personally served on Rogan in Vancouver, British Columbia on July 10, 2008 and required
Rogan to appear for a citation examination in Chicago on July 22, 2008. Rogan did not appear as
directed by the citation, despite the fact that Rogan remained a defendant in the case and was still
5

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subject to the jurisdiction and orders of the United States District Court for the Northern District of
Illinois. As a result, on September 11, 2008, the district court ordered Rogan to appear in court on
September 30, 2008 to show cause why he should not be held in contempt of court for failing to
appear for the citation examination. On September 30, Rogan failed to appear as ordered.
Rogan=s disobedience of clearly worded court orders was repeated at least three more time
in 2008 after Dexia obtained its $124 million judgment in the Dexia v. Rogan litigation, which was
assigned to U.S. District Judge Matthew F. Kennelly (02 C 8288).4 After October 2006, Rogan
chose to selectively participate in certain aspects of the ongoing cases by submitting pleadings of
one sort or another from Canada. As is true for any litigant, Rogan was obliged either to obey the
orders of the court or to properly seek relief from any order with which he disagreed. In each
instance described below, Rogan did neither.
First, on September 16, 2008, Dexia advised Judge Kennelly of Rogan=s ongoing failure to
provide documents that were sought pursuant to a Citation to Discover Assets that had been served
on Rogan.

Dexia=s motion documented repeated contacts with Rogan=s Canadian lawyer

4 Rogan=s disregard for orders of court was not confined to U.S. v. Rogan and Dexia v.
Rogan. In 2001, Rogan=s Edgewater Medical Center became insolvent and entered bankruptcy as
a result of the health care fraud scheme for which Rogan was held responsible in United States v.
Rogan. In August 2006, a Chicago bankruptcy court presided over a trial in which Edgewater
Medical Center sought title to property held by two of Rogan=s companies. Edgewater Medical
Center v. Edgewater Property Company, et al., 04 A 2328). Rogan was personally present for
every day of that trial. On October 12, 2006, counsel representing Rogan=s companies notified
the court that Rogan had terminated them on October 9, 2006. The court subsequently entered an
order setting a schedule for the parties to submit post-trial briefs for the courts consideration in
deciding the case. Rogan choose to participate in the briefing process by personally signing and
submitting briefs on behalf of his companies. On August 15, 2007, the bankruptcy court ruled
against Rogan=s companies and entered an order directing that title to the real estate in question be
turned over to Edgewater Medical Center. Rogan ignored this order and, on September 26, 2007,
the bankruptcy court ordered Rogan to appear before it on October 3, 2007 and show cause why he
should not be held in contempt for disregarding the August 15, 2007 order and another order dated
August 29, 2007. Rogan did not appear on October 3rd and was held in contempt of court.

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concerning Rogan=s obligations to produce documents as required by the Citation and Rogan=s
failure to comply. On September 30 2008, Judge Kennelly issued a rule to show cause why
Rogan should not be held in civil contempt for failure to obey the court=s order concerning the
Citation to Discover Assets. (Ex. 1) Judge Kennelly ordered Rogan to appear on November 6,
2008, and made it clear that only a personal appearance would satisfy the order. Notice of the
September 30 order was served both on Rogan and his Canadian counsel on October 7, 2008.
Rogan did not appear on November 6, and that day Judge Kennelly found that he had failed to
comply with the order to provide information and held him in civil contempt. (Ex. 3).
Second, also pending before Judge Kennelly in the fall of 2008 was the issue of trusts
established in foreign countries, including trusts established by Rogan in the Bahamas. On
September 24 and October 20, 2008, the court entered orders appointing a Receiver for the trust
and barring Rogan from asserting any rights to the trusts or interfering with the Receiver=s task of
repatriating the trusts= funds. Both Rogan and his Canadian counsel were notified of these orders.
On October 31, 2008, Dexia advised Judge Kennelly that notwithstanding his orders and service of
the orders on Rogan and his Canadian counsel, Rogan had directed his Bahamian counsel to
oppose the payment of any of the funds of the trust to the Receiver. On November 3, 2008, Judge
Kennelly issued an order to show cause why Rogan should not be held in contempt for
disobedience of the September 24 and October 20 orders, and he directed Rogan to appear on
November 5, 2008. Notice of the November 3 order was served that same day on Rogans
Canadian counsel by facsimile and on Rogan by posting it on his residence door in Vancouver.
Rogan did not appear as ordered on November 5. Judge Kennelly found that Rogan had
knowingly violated the September 24 and October 20 orders, and once again adjudged him in civil
contempt.
7

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Third, also on September 16, 2008, Dexia, citing the Federal Rules of Criminal Procedure,
requested the court to issue a rule to show cause why Rogan should not be held in criminal
contempt for violating court orders, making false statements to the court, and executing a fraud
upon the court all arising from Rogan=s actions in response to prior court orders that Rogan
provide documents and testimony regarding his Bahamian Trust. On September 30, 2008, after
reviewing this motion and supporting exhibits, the court entered an Order to Show Cause directing
Rogan to personally appear before the court on November 6, 2008 and show cause why he should
not be held in criminal contempt for making false statements to the court regarding his Bahamian
Trust, causing his attorneys to make similar false statements, and deliberately obstructing
court-ordered discovery regarding the Bahamian Trust and other of Rogan=s off-shore assets.
(Ex. 2). The district court articulated the bases for the Order to Show Cause including that
ARogan made and caused his counsel to make repeated false representations to the Court@
regarding his compliance with prior orders to produce records relating to his Bahamian Trust and
Rogan=s ability to contact and/or obtain records from the Trustee. Id. On October 7, 2008,
Dexia=s motion and the court=s September 30 Order to Show Cause (along with the other
September 30 order) were served on Rogan by hand delivery at his residence in Vancouver, British
Columbia and via fax to his Canadian counsel. On November 5, 2008, Rogan failed to appear as
specifically directed, thus disobeying yet another clearly worded court order. Thereafter, Judge
Kennelly directed that an arrest warrant be issued for Rogans arrest on the criminal contempt.

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CONCLUSION
As the above history demonstrates, Rogan is a habitual violator of court orders and is not
worthy of this courts trust.

Through his own willful actions, he has demonstrated that he obeys

the law when it is convenient and flouts the law when it suits him. To date, Rogan continues to
owe the United States and Dexia nearly all of the $200 million plus interest. In this regard, Rogan
has not voluntarily paid a single dollar to the United States or Dexia in satisfaction of either
judgment. With outstanding judgments exceeding $200 million, inclusive of interest, along with
substantial assets that remain unaccounted for, Rogan is a serious risk of flight. For at least all
of these reasons, the United States respectfully submits that Peter G. Rogan should be detained
pending trial pursuant to 18 U.S.C. ' 3142(f)(2)(A).
Respectfully submitted,
ZACHARY T. FARDON
United States Attorney
BY:

s/ Daniel W. Gillogly
DANIIEL W. GILLOGLY
Assistant U. S. Attorney
s/ Andrew S. Boutros
ANDREW S. BOUTROS
Assistant U. S. Attorney
s/ Eric S. Pruitt
ERIC S. PRUITT
Assistant U. S. Attorney
219 S. Dearborn
Chicago, Illinois 60604
(312) 353-5300

Dated: June 19, 2015