PER 18 U.S.C.

3170

DEFENDANT INFORMAnON 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 Samuel Cohen (a/kla Mouli Co~)
oo o Charges/Counts Added
Defendant:
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Indictment
Information ".{.f,~ ~ l'
1 0 o§~i~ ~
Name of District Court. andlor JudgeiMagistrate Location (City)
AdusR
UNITED STATES DISTRICT COURT Northern
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DISTRICT OF California Divisional Office '/ -c'~-
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~
.
Name and Office of Person
Joseph P. Russoniello
-'c:./:'~t1-C'
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Furnishing Information on DU.s.Atty DOther U.S, Agency
0 ~(;~ ~
~RM
Name of Ass!.
U.S. Attorney
(if assigned)
Jeffrey Finigan
Phone No. (415) 436-7200

Birth
Interpreter Required

4/8/1958
Dialect:

IZl Male
~
~ Alien
l
PROCEEDING
Date 0 Female (if applicable)

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

IRS & FBI Social Security Number

person is awaiting trial in another Federal or State Court

0 (give name of court) DEFENDANT

this person/proceeding transferred from another district

Issue: IlJ Warrant o Summons
0 per (Circle one) FRCrP 20, 21 or 40. Show District
Location Status:

Arrest Date or Date Transferred to Federal Custody

this Is a reproseculion of charges

0 previously dismissed which were 0 Currently in Federal Custody
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
pending case involving this same
DOCKET NO.
0 Currently on bond
defendant. (Notice of Related D Fugitive
Case must still be filed with the
Clerk.)
MAG. JUDGE
0 prior proceedings or appearance(s)
before U.S. Magistrate Judge
CASE NO.
Defense Counsel (if any):

regarding this defendant were

recorded under
DFPD o CJA D RET'D

0
I
Place of San Francisco
offense
countySan Francisco
Appointed on Target Letter

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
Title & Section/Offense Level
Set 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
2

8
UNITED STATES DISTRICT COURT
9
NORTHERN DISTRICT OF CALIFORNIA
10
SAN FRANCISCO DIVISION

12 UNITED STATES OF AMERICA, GIt.: 1 0 0547

)
13 Plaintiff, )
) Violations: 18 U.S.C. § 1343 - Wire Fraud; 18
14 v. .) U.S.C. § 1957 - Engaging in Monetary
) Transactions in Criminally Derived Property;
15 SAMUEL COHEN, ) Forfeiture Allegations - 18 U .S.C.
aIkIa Mouli Cohen. ) § 9SI(a)(1)(C) and 28 U.S.C. § 2461 (c) and IS
16 ) U.S.C. § 982(a)(1)
Defendant. )
17 )

18
--------------------------)
19

20 INDICTMENT

21 The Grand Jury charges:

22 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

28 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:

25 a. That Microsoft was going to acquire Ecast.
26 b. That upon completion of Microsoft's acquisition ofEcast, COHEN's
27 Ecast shares would be exchanged on a I-for-l basis for Microsoft shares
28 of stock.

INDICTMENT 3
1 c. That a United States governmental regulatory agency required the payment

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

3 of Ecast.

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

5 approval of Microsoft's acquisition ofEcast.

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

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

8 of Ecast.

9 f. That investors who purchased Ecast shares from COHEN would lose their

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

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

12 Microsoft's acquisition of Ecast.

13 10. 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)

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

19 12. 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:

27

28

INDICTMENT 4
1

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)

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)
10

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
15

16 W.P. Charles Wells Fargo

FOUR 9/29/2005 $43,000
Schwab Bank account
17 account ***-****546 in
*****748 in San Francisco,
18 San Francisco, CA(viaNew
CA Jersey)
19
20
FIVE 10/14/2005 $150,000 W.P. World Wells Fargo
21 Savings Bank Bank account
account ***-****546 in
22 ******084 in San Francisco,
Albany, CA CA(viaNew
23 Jersey)
24

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)
28

INDICTMENT 5
INDICTMENT 6
INDICTMENT 7
1

2
NINETEEN 4/18/2007 $15,000 S.G. Citibank Wells Fargo
3 California, FSB Bank. account
account ***-****546 in
4 *********742 San Francisco,
CA (via New
5 Jersey)
6

7
AU in violation of Title 18, United States Code, Section 1343.
8

9
COUNTS TWENTY THROUGH THIRTY TWO: (18 U.S.C. § 1957- Engaging in Monetary
Transactions in Criminally Derived
10
Property)

11
13. Paragraphs 1 through 10 and 12, of this Indictment are realleged as iffully set

12 forth herein.

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

14 elsewhere, the defendant,

15
SAMUEL COHEN,
16 aIkIa Mouli Cohen,

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

18 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:

20

21
TWENTY 9/15/2005 $600,000 transfer from Wells Fargo Bank account
22 ***-****021 to Wells Fargo Bank account ***-
****646 and derived from specified unlawful
23 activity, namely, wire fraud, as set forth in count]

24

25 TWENTY ONE 9/27/2005 $600,000 transfer from Wells Fargo Bank account
***-****021 to Wells Fargo Bank account ***-
26 ****646 and derived from specified unlawful
activity, namely, wire fraud, as set forth in counts 2
27 and 3

28

INDICTMENT 8
1

2
TWENTY TWO 10/4/2005 $1,200,000 transfer from Wells Fargo Bank
3 account ***-****021 to Wells Fargo Bank account
***-****646 and derived from specified unlawful
4 activity, namely, wire fraud, as set forth in count 4
5

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
8

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
11 activity, namely, wire fraud, as set forth in counts 6
and 7
12

13 $167,000 transfer from Wells Fargo Bank account

TWENTY FIVE 12/7/2005
***-****021 to Wells Fargo Bank account ***-
14 ****646 and derived from specified unlawful
activity, namely, wire fraud, as set forth in counts 8
15
and 9
16

17 TWENTY SIX 1124/2006 $700,000 transfer from Wells Fargo Bank account
***-****021 to Wells Fargo Bank account ***-
18 ****646 and derived from specified unlawful
activity, namely, wire fraud, as set forth in count 10
19

20
TWENTY SEVEN 211/2006 $542,000 transfer from Wells Fargo Bank account
21 ***-****021 to Wells Fargo Bank account ***-
****646 and derived from specified unlawful
22 activity, namely, wire fraud, as set forth in count II
23

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
26 12 and 13

27

28

INDICTMENT 9
1

2
TWENTYNINE 5/30/2006 $590,000 transfer from Wells Fargo Bank account
3 ***-****021 to Wells Fargo Bank account ***-
****646 and derived from specified unlawful
4 activity, namely, wire fraud, as set forth in count 14
5

6 TIIIRTY 7127/2006 $100,000 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 15
8

9
THIRTY ONE 8/23/2006 $300,000 transfer from Wells Fargo Bank account
10 ***-****021 to Wells Fargo Bank accollllt ***-
****646 and derived from specified unlawful
11 activity, namely, wire fraud, as set forth in count 16
and 17
12

13 $320,000 transfer from Wells Fargo Bank account

THIRTY TWO 119/2007
***-****021 to Wells Fargo Bank account ***-
14 ****646 and derived from specified unlawful
activity, namely, wire fraud, as set forth in count 18
15

16
All in violation of Title 18, United States Code; Section 1957.
17
18 FORFEITURE ALLEGATION: (18 U.S.C. § 981 (a)(l)(C) and 28 U.S.C. § 2461 (c) -
Forfeiture of SUA (wire fraud) proceeds)
19

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-

4 (a) cannot be located upon the exercise of due diligence;

5 (b) has been transferred or sold to or deposited with, a third person;

6 (c) has been placed beyond the jurisdiction of the Court;

7 (d) has been substantially diminished in value; or

8 (e) 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))
14
18. The allegations of Counts TWENTY through THIRTY TWO of this indictment
15
are realleged and by this reference fully incorporated herein for the purpose of alleging forfeiture
16
pursuant to the provisions of 18 U.S.C. § 982(a)(I).
17
19. Upon a conviction of any of the offenses alleged in Counts TWENTY through
18
THIRTY TWO, the defendant,
19
SAMUEL COHEN,
20 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-

26 (a) cannot be located upon the exercise of due diligence;

27 (b) has been transferred or sold to or deposited with, a third person;

28 (c) has been placed beyond the jurisdiction of the Court;

INDICTMENT 11
1 (d) has been substantially diminished in value; or

2 (e) 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.

8
iC
Dated: July ~2010"'!fi
9

10

11

12 JOSEPH P. RUSSONIELLO
United Sta s Atto~ I /
13

14 (~ IJkn~
J. S TCH / F

15 hief, Criminal Division

16

17 (Approved as to form: -7""1Uf.*=~=~~-;---_J

18

19
20

21

22

23

24

25

26

27

28

INDICTMENT 12