throbber
Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 1 of 17
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF KANSAS
`(KANSAS CITY DOCKET)
`
`))
`
`))
`
`)
`)
`)
`)
`
`UNITED STATES OF AMERICA,
`
`Plaintiff,
`
`vs.
`
`ANTHONY RENFROW
`
`WILLIAM “BILL” FOX,
`
`and
`
`No.
`
`))
`
`)
`Defendant.
` )
`
`The Grand Jury charges:
`
`INDICTMENT
`
`Background
`
`At all times relevant to this Indictment:
`
`14DailyPlus.com
`
`1. 14DailyPlus.com was an Internet website that fraudulently offered
`
`opportunities for “investors” to join as members and use an “autosurf” form of
`
`advertising. 14DailyPlus.com was a company incorporated in Nevada with a registered
`
`address in Las Vegas, Nevada.
`
`2. “Autosurfing” is a form of advertising in which “investors” in 14DailyPlus.com
`
`were purportedly paid to view an advertiser’s website for a certain period of time
`
`through the 14DailyPlus.com website.
`
`3. 14DailyPlus.com “autosurf investors” paid a membership fee and were
`
`promised a per-site commission return on the fee. “Autosurf investors” could pay an
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 2 of 17
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`additional fee to upgrade their level, with commissions based on the member’s viewing
`
`a minimum number of sites. 14DailyPlus.com offered a return of 14% per day for a
`
`period of ten days totaling a 140% return on the investment.
`
`4. To achieve the rate of return, 14DailyPlus.com reportedly pooled the capital
`
`investments of all members, which was used to purchase advertising units on the
`
`Internet with Fortune 500-type companies. Internet visits to these particular advertisers’
`
`websites through 14DailyPlus.com then provided a return on the “investment” into the
`
`advertising units.
`
`Individuals
`
`5. Defendant Anthony Renfrow (Renfrow) was the founder of 14DailyPlus.com,
`
`which commenced operations in or about March 2006. Success Marketing Systems
`
`was a business name utilized by Renfrow for 14DailyPlus.com.
`
`6. Defendant William “Bill” Fox (Fox) was the primary promoter and recruiter of
`
`14DailyPlus.com in the Kansas City metropolitan area beginning in the summer of 2006.
`
`Eagle Marketing Group, LLC was incorporated in or about January 2006 in the State of
`
`Kansas, with defendant Fox as the registered agent.
`
`Financial Institutions
`
`7. Heritage Community Credit Union was a financial institution in Rancho
`
`Cordova, California, the accounts of which were insured by the National Credit Union
`
`Share Insurance Fund. Anthony Renfrow d.b.a. Success Marketing Systems
`
`established account #XX8622 before January 2006. Anthony Renfrow also established
`
`account #XX4422 at Heritage Community Credit Union before January 2006.
`
`8. Bank of America was a financial institution, the deposits of which were insured
`
`2
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 3 of 17
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`by the Federal Deposit Insurance Corporation, with its corporate headquarters in
`
`Charlotte, North Carolina, but with branches throughout California, Kansas, Missouri,
`
`and elsewhere. Anthony Renfrow d.b.a. Success Marketing Systems established
`
`account #XXXXXX4596 in or about August 2006. Anthony Renfrow established account
`
`#XXXXXX6504 at Bank of America in or about July 2006.
`
`9. SafePay Solutions, Inc. was a financial institution established in Reno,
`
`Nevada, which was an online payment processor that engaged in the business of
`
`transmission of funds. SafePay Solutions, Inc. had account XXXXXX1533 and
`
`XXXXXX3103 at Bank of America.
`
`10. E-Gold Ltd. was a financial institution operated by Gold and Silver Reserve,
`
`Inc., located in Melbourne, Florida, which was an online digital currency business that
`
`offered an exchange of e-metal accounts for consumers, which enabled account
`
`holders to use gold, silver, or other precious metals as a medium of exchange.
`
`11. Anygoldnow was a financial institution in San Diego, California, that
`
`conducted currency exchanges and was a dealer in commodities and precious metals.
`
`Scheme to Defraud
`
`12. During the period from in or about March 2006, to in or about May 2007, in
`
`the District of Kansas and elsewhere, RENFROW and FOX, together with each other
`
`and others, both known and unknown to the Grand Jury, knowingly devised a scheme
`
`to defraud individuals to join 14DailyPlus.com as “investors,” and to obtain money and
`
`property by means of material false and fraudulent pretenses, representations and
`
`promises made to individuals to convince them to join 14DailyPlus.com.
`
`13. It was part of the scheme to defraud and to obtain money and property by
`
`3
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 4 of 17
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`means of material false and fraudulent pretenses, representations, and promises, and in
`
`furtherance of it, that the defendants knowingly and intentionally engaged in and caused
`
`the following activities:
`
`a. Recruited individuals to become investors in 14DailyPlus.com, when in
`
`truth and in fact there was no investment vehicle;
`
`b. Enticed purported investors with the promise of a 14% daily return on
`
`the purported investment, when in truth and in fact such a return was completely
`
`unrealistic;
`
`c. Falsely promised a return on the purported investment to be realized by
`
`merely clicking on certain web pages for a limited amount of time each day;
`
`d. Recruited additional “investors” used as the basis for the individuals to
`
`receive the “return” on the original “investment,” when in truth and in fact no such
`
`returns were made to the “investors”;
`
`e. Solicited “investment” funds to be paid in cash up to $9,000, which
`
`made the tracing of funds more difficult and avoided currency transaction
`
`reporting requirements;
`
`f. Regularly conducted conference calls via telephone and Internet for
`
`recruitment of new “investors” and conveying assurances of the program, when
`
`in truth and in fact, these were utilized to lull the individuals into believing the
`
`program was a legitimate investment vehicle; and
`
`g. Promised returns on the “investments” despite having no secured
`
`method to process payment of the investment returns.
`
`4
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 5 of 17
`
`Count 1
`
`14. Paragraphs 1-13 are incorporated as though fully set out herein.
`
`15. Beginning in or about March 2006, the exact date being unknown to the
`
`Grand Jury, and continuing to on or about May 16, 2007, both dates being approximate
`
`and inclusive, in the District of Kansas and elsewhere, the defendants,
`
`ANTHONY RENFROW
`and
`WILLIAM “BILL” FOX,
`
`knowingly and intentionally conspired and agreed together and with each other, and
`
`with other persons known and unknown to the Grand Jury, to commit the following
`
`offenses against the United States: wire fraud, in violation of Title 18, United States
`
`Code, Sections 2 and 1343; and engaging in monetary transactions greater than
`
`$10,000, in violation of Title 18, United States Code, Sections 2 and 1957.
`
`Object of Conspiracy
`
`16. It was a part and object of the conspiracy that RENFROW, FOX, and their
`
`coconspirators, willfully and knowingly devised a scheme to defraud investors through
`
`14DailyPlus.com and to obtain money and property by means of false and fraudulent
`
`pretenses, representations, and promises, and, for the purpose of executing the
`
`scheme to defraud, knowingly and intentionally caused to be transmitted by means of
`
`wire communications in interstate and foreign commerce, writings, signs, signals, and
`
`sounds for the purpose of executing such scheme to defraud individuals in violation of
`
`Title 18, United States Code, Sections 2 and 1343.
`
`17. It was a further part and object of the conspiracy that RENFROW, FOX, and
`
`their co-conspirators, knowingly engaged in monetary transactions by, through, and to
`
`5
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 6 of 17
`
`financial institutions, affecting interstate commerce, in criminally derived property of a
`
`value greater than $10,000.00, through deposits, withdrawals, and transfers of U.S.
`
`currency, funds, and monetary instruments, such property having been derived from
`
`wire fraud, which is a specified unlawful activity, in violation of Title 18, United States
`
`Code, Sections 2 and 1957.
`
`Manner and Means
`
`18. It was part of the conspiracy that the founder and promoters of
`
`14DailyPlus.com established an Internet website that appeared as though individuals
`
`could make investments and reap large returns.
`
`19. It was further part of the conspiracy that the founder and promoters of
`
`14DailyPlus.com falsely promised 14% per day return on the purported investment.
`
`20. It was further part of the conspiracy that the founder and promoters of
`
`14DailyPlus.com solicited investments in amounts up to $9,000 cash.
`
`21. It was further part of the conspiracy that the founder and promoters of
`
`14DailyPlus.com falsely promised a greater return on the investment if more money was
`
`invested.
`
`22. It was further part of the conspiracy that the founder and promoters of
`
`14DailyPlus.com encouraged investors to reinvest all returns into the program.
`
`23. It was further part of the conspiracy that the founder and promoters of
`
`14DailyPlus.com regularly conducted conference calls via telephone and Internet to
`
`recruit individuals, encourage more investments, and reassure the soundness of the
`
`investments.
`
`24. It was further part of the conspiracy that the founder and promoters of
`
`6
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 7 of 17
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`14DailyPlus.com deposited the invested funds into their personal accounts.
`
`25. It was further part of the conspiracy that the founder and promoters of
`
`14DailyPlus.com used the invested money for personal purposes and did not pay out
`
`returns to the “investors.”
`
`Overt Acts
`
`26. In furtherance of this conspiracy and to effect and accomplish the objects of
`
`it, one or more of the defendants or conspirators, both indicted and unindicted,
`
`committed, among others, the following overt acts in the District of Kansas and
`
`elsewhere:
`
`Recruiting “Investors”
`
`a. During a conference call with Matt Becker, Renfrow assured
`
`14DailyPlus.com investors their funds were safe and that no one would lose their
`
`funds or investment despite the delay in payments being made to the investors.
`
`Renfrow asserted the delay in payments of returns was due to problems
`
`associated with the Internet payment entities, and nothing more.
`
`b. Fox recruited Eric Fellows to become part of 14DailyPlus.com by
`
`making an “investment” in 14DailyPlus.com, and then earning a “return” on that
`
`investment by merely viewing advertising sites established through
`
`14DailyPlus.com. The “earnings” were to be credited to the “investor’s” online
`
`account and it was recommended that earnings remain in the account.
`
`c. Renfrow reported to Charles Lunsford that investors were not being
`
`paid because cyber thieves had compromised 14DailyPlus.com’s E-Gold
`
`account, so the funds were not available to be disbursed.
`
`7
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 8 of 17
`
`d. Fox told Aubrey Meyer that she could earn a 40% return on her
`
`investment with 14DailyPlus.com, and was assured she would at least get her
`
`initial investment returned.
`
`e. Fox personally placed a telephone call to Robert Montgomery to
`
`congratulate him for recruiting others to join 14DailyPlus.com.
`
`f. Renfrow personally met with James Oliver in Sacramento, California,
`
`and showed Mr. Oliver office space as a means of satisfying concerns whether
`
`14DailyPlus.com was a legitimate business. Mr. Oliver participated in
`
`conference calls with Renfrow, who provided various reasons for lack of
`
`payments to the investors. Renfrow’s explanation for lack of payment included a
`
`tale that his E-Gold account had been “hacked,” so Renfrow was awaiting pay-
`
`out from another investment to then satisfy payments in 14DailyPlus.com.
`
`g. During a conference call with Russ Pitts, Fox stated he had made
`
`$250,000 in six months through 14DailyPlus.com, and that his mother-in-law had
`
`made $60,000. Fox told Mr. Pitts that participants in 14DailyPlus.com would not
`
`be paid if they did not recruit other people to join 14DailyPlus.com.
`
`h. During a conference call with Russ Pitts, Renfrow directed people to
`
`not refer to 14DailyPlus.com as an “investment.”
`
`i. During a conference call with James Rizqalla, Renfrow reported
`
`problems with the 14DailyPlus.com website, which required some reorganization
`
`and delays in payments.
`
`j. Fox recruited Art Ruby to become part of 14DailyPlus.com and
`
`encouraged Mr. Ruby to make the investment with cash.
`
`8
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 9 of 17
`
`k. During a conference call with Art Ruby, Renfrow stated everyone who
`
`participated in 14DailyPlus.com would be paid, and when a participant in the
`
`conference call had specific questions about payments, then they were accused
`
`of not being a “team player,” and threatened with having their account closed.
`
`Explanations by Fox for delays in payment included health issues for Renfrow,
`
`SafePay Solutions, Inc. not releasing funds, or glitches with the Internet payment
`
`system.
`
`l. During conference calls with Willis Smith, Renfrow encouraged people
`
`to invest with 14DailyPlus.com, and assured the participants that no one would
`
`ever lose money because the initial investment would always be returned.
`
`Renfrow explained payments were delayed until more people invested with
`
`14DailyPlus.com, so the capital fund would be increased and allow for returns to
`
`be paid.
`
`m. During a conference call with Don Stroh, Renfrow stated no one would
`
`lose their money in connection with 14DailyPlus.com. Renfrow explained
`
`investments could be made by sending a wire transfer to Renfrow’s personal
`
`Bank of America account from the “investor’s” bank account or directly depositing
`
`funds into Renfrow’s Bank of America account at any local Bank of America
`
`branch.
`
`Cash “Investments”
`
`27. The defendants and conspirators solicited cash from “investors” as the
`
`method of payment to commence their involvement in 14DailyPlus.com. Those cash
`
`payments to the defendants and conspirators occurred as follows:
`
`9
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 10 of 17
`
`Date
`Summer-Fall
`2006
`October 2006
`October 2006
`November 2006
`Fall 2006
`November 2006
`Fall 2006
`Fall 2006
`Summer 2006-
`Summer 2007
`Total
`
`Victim
`Art Ruby
`
`Promoter/Recruiter
`Fox
`
`Amount
`$ 15,000
`
`Matt Becker
`Russ Pitts
`Russ Pitts
`Eric Fellows
`Jason Houchen
`Jason Houchen
`Russ Pitts
`Robert
`Montgomery
`
`Fox
`Fox
`Fox
`Fox
`Fox
`Fox
`Fox
`Fox
`
`9,000
`9,000
`9,000
`3,500
`26,108
`2,300
`49,350
`72,000
`
`$ 195,258
`
`Non-Cash “Investments”
`
`28. The defendants and conspirators solicited “investments” that were also paid
`
`in methods other than cash to commence their involvement in 14DailyPlus.com. Those
`
`payments to the defendants and conspirators were wire-transferred from the “investors”
`
`accounts into Renfrow’s accounts with Heritage Community Credit Union #XX4422 or
`
`Bank of America #XXXXXX6504 or XXXXXX4596, or directly deposited by the “investor”
`
`into Renfrow’s accounts with Heritage Community Credit Union or Bank of America as
`
`follows:
`
`Date
`June 15, 2006
`July 25, 2006
`
`Victim
`Willie Watson
`William
`Walters
`
`Transaction
`Deposit in California
`Wire Transfer from
`Kansas to California
`
`Account
`4422
`6504
`
`Amount
`$ 3,000
`18,000
`
`10
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 11 of 17
`
`August 18, 2006
`
`Eric Fellows
`
`August 22, 2006
`
`August 28, 2006
`
`August 31, 2006
`
`Eric Fellows
`
`Wire Transfer from
`Kansas to California
`Aubrey Meyer Wire Transfer from
`Kansas to California
`Wire Transfer from
`August 24, 2006 William
`Kansas to California
`Walters
`Aubrey Meyer Wire Transfer from
`Kansas to California
`Wire Transfer from
`Kansas to California
`Freddy Kandah Wire Transfer from
`Michigan to
`California
`James Rizqalla Wire Transfer from
`Michigan to
`California
`James Rizqalla Wire Transfer from
`Michigan to
`California
`Wire Transfer from
`October 24, 2006 Robert
`Kansas to California
`Montgomery
`October 31, 2006 Charles Malley Wire Transfer from
`Texas to California
`Charles Malley Wire Transfer from
`Texas to California
`Charles Malley Wire Transfer from
`Texas to California
`Wire Transfer from
`Kansas to California
`Wire Transfer from
`Kansas to California
`Deposit in California
`
`September 1,
`2006
`
`September 6,
`2006
`
`September 6,
`2006
`
`November 10,
`2006
`November 20,
`2006
`November 29,
`2006
`November 29,
`2006
`December 8,
`2006
`
`Don Stroh
`
`Don Stroh
`
`Susan Bottino
`
`11
`
`4596
`
`4596
`
`4596
`
`4596
`
`4596
`
`4596
`
`15,504
`
`6,000
`
`9,000
`
`6,000
`
`1,488
`
`3,000
`
`4596
`
`5,000
`
`4596
`
`5,000
`
`4596
`
`4596
`
`4596
`
`4596
`
`4596
`
`4596
`
`4596
`
`10,500
`
`9,000
`
`7,000
`
`2,000
`
`9,000
`
`9,000
`
`14,000
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 12 of 17
`
`December 11,
`2006
`December 11,
`2006
`December 11,
`2006
`
`Total
`
`Don Stroh
`
`Don Stroh
`
`Wire Transfer from
`Kansas to California
`Wire Transfer from
`Kansas to California
`Travis Salmon Wire Transfer from
`Missouri to
`California
`
`4596
`
`4596
`
`4596
`
`9,000
`
`9,000
`
`2,500
`
`$152,992
`
`Monetary Transactions
`
`29. On or about the dates below, Renfrow knowingly engaged in the monetary
`
`transactions identified below, which were by, through, and to a financial institution and
`
`affected interstate commerce, in criminally derived property of a value greater than
`
`$10,000, with deposits, withdrawals, and transfers of U.S. currency, funds, and
`
`monetary instruments in the following amounts, such property having been derived from
`
`wire fraud, which is a specified unlawful activity:
`
`Date
`August 3, 2006
`August 11, 2006
`
`August 17, 2006
`
`August 25, 2006
`
`August 29, 2006
`
`August 31, 2006
`
`Monetary Transaction
`Cash withdrawal from 6504
`Wire transfer from 6504 to SafePay
`Solutions, Inc.
`Wire transfer from 6504 to SafePay
`Solutions, Inc.
`Wire transfer from 4596 to SafePay
`Solutions, Inc.
`Wire transfer from 4596 to
`Ameritrade account 0369
`Wire transfer from 4596 to SafePay
`Solutions, Inc.
`
`Amount
`$ 15,000.00
`50,000.00
`
`100,000.00
`
`40,000.00
`
`20,000.00
`
`30,000.00
`
`12
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 13 of 17
`
`September 6, 2006
`
`October 16, 2006
`October 16, 2006
`
`Wire transfer from 4596 to SafePay
`Solutions, Inc.
`Account transfer from 4596 to 6504
`Check #2007 drawn on account
`#6504 payable to Saturn of
`Roseville
`Account transfer from 4596 to 6504
`Check #2008 drawn on account
`#6504 payable to Saturn of
`Roseville
`November 10, 2006 Wire transfer from 4596 to SafePay
`Solutions account 3103
`Account transfer from 4596 to
`SafePay Solutions account 3103
`Cash withdrawal from 4596
`Account transfer from 4596 to
`SafePay Solutions account 3103
`
`October 25, 2006
`October 30, 2006
`
`November 29, 2006
`
`December 1, 2006
`December 11, 2006
`
`30,000.00
`
`14,000.00
`13,233.77
`
`33,000.00
`29,950.00
`
`60,000.00
`
`30,000.00
`
`20,000.00
`21,000.00
`
`30. As additional overt acts, the Grand Jury incorporates by this reference the
`
`allegations set forth in Count 2 of the Indictment as though fully set forth at this point.
`
`31. This was all in violation of Title 18, United States Code, Sections 371 and
`
`1349.
`
`Count 2
`
`WIRE FRAUD
`
`32. The allegations of paragraphs 1-31 above are incorporated as though fully
`
`set out herein.
`
`33. On or about April 26, 2007, in the District of Kansas and elsewhere, the
`
`defendants,
`
`13
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 14 of 17
`
`ANTHONY RENFROW
`and
`WILLIAM “BILL” FOX,
`
`for the purpose of executing the scheme to defraud, transmitted and caused to be
`
`transmitted in interstate commerce, by means of a wire communication, certain signs,
`
`signals, and sounds, that is, a web-based conference call with participants in Kansas
`
`and California, to assure participants in 14DailyPlus.com that their “investments” were
`
`safe and none would lose their “funds.”
`
`34. This was in violation of Title 18, United States Code, Sections 2 and 1343.
`
`Forfeiture Allegation
`
`35. Upon conviction of one or more of the offenses alleged in Counts 1-2, the
`
`defendants,
`
`ANTHONY RENFROW
`and
`WILLIAM “BILL” FOX,
`
`shall forfeit to the United States, pursuant to Title 18, United States Code, Section
`
`981(a)(1)(C) and Title 28, United States Code, Section 2461(c), any property
`
`constituting or derived from proceeds obtained directly or indirectly as a result of the
`
`said violations, including but not limited to the following:
`
`Money Judgment
`
`36. A sum of money approximately $4,825,000.00 in United States currency,
`
`representing the amount of proceeds obtained as a result of the offenses set out in
`
`Counts 1-2, for which the defendants are jointly and severally liable.
`
`Substitute Assets
`
`37. If any of the above-described forfeitable property, as a result of any act or
`
`14
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 15 of 17
`
`omission of the defendants:
`
`a.
`
`b.
`
`c.
`
`d.
`
`e.
`
`cannot be located upon the exercise of due diligence;
`
`has been transferred, sold to, or deposited with a third party;
`
`has been placed beyond the jurisdiction of the court;
`
`has been substantially diminished in value; or
`
`has been commingled with other property which cannot be divided
`
`without difficulty;
`
`it is the intent of the United States, pursuant to Title 21, United States Code, Section
`
`853(p) as incorporated by Title 18, United States Code, Section 982(b), to seek
`
`forfeiture of any other property of said defendants up to the value of the forfeitable
`
`property described above.
`
`38. This is all in accordance with Title 18, United States Code, Sections
`
`981(a)(1)(c) and 982(a)(1); Title 28 United States Code, Section 2461 (c); and Rule
`
`32.2(a), Federal Rules of Criminal Procedure.
`
`A TRUE BILL.
`
`Dated: April 18, 2012
`
` s/Foreperson
`FOREPERSON
`
` s/Scott C. Rask, #15643 for
`BARRY R. GRISSOM
`United States Attorney
`District of Kansas
`500 State Avenue, Suite 360
`Kansas City, Kansas 66101
`
`15
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 16 of 17
`
`(913) 551-6730
`(913) 551-6541 (fax)
`Barry.Grissom@usdoj.gov
`Ks. S. Ct. No. 10866
`
`(It is requested that trial of the above captioned case be held in Kansas City, Kansas.)
`
`16
`
`

`
`Case 2:12-cr-20041-CM Document 1 Filed 04/18/12 Page 17 of 17
`
`Penalties:
`
`Cts. 1-2:
`
`NMT 20 years imprisonment; NMT $250,000 or 2xgain or 2xloss
`fine; NMT 3 years supervised release; $100 special assessment;
`forfeiture allegation
`
`17

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