U.S. Department
of Justice
Indictment
| |
FOR THE TERRITORY OF GUAM
THE GRAND JURY CHARGES: WIRE FRAUD INTRODUCTION 1. AUSTIN J. SHELTON, also known as A.J. SONNY SHELTON, also known as SONNY SHELTON (SHELTON), is indicted and made a Defendant herein. 2. Typhoon Paka struck Guam on the night of December 16-17, 1997, causing extensive damage throughout the island. The federal government, through the Federal Emergency Management Agency (FEMA), made in excess of $70 million in federal funds available for disaster relief in Guam. 3. Expecting that the Government of Guam would apply for and receive federal reimbursement, the Legislature of Guam on December 18, 1997 made monies from the Guam General Fund available so that the the Executive Branch could immediately pay for the clean-up and repair of damage caused by Typhoon Paka ("Typhoon Paka Projects") (Bill No. 467.) 4. At all times relevant to this Indictment, the Department of Parks and Recreation (DPR) was an agency of the Government of Guam, and Defendant SHELTON was the Director of the DPR and an agent of the DPR. It was his duty, among other things, to establish fees, rules, and regulations to accomplish the purposes of the DPR; administer the DPR; prescribe the duties of assistants, deputies, agents, and other persons employed by the DPR; and manage the Parks fund. 5. When the Governor of Guam declared a State of Emergency with regard to DPR, he authorized DPR to spend from the General Fund. He also gave the Defendant SHELTON authority to procure goods and services for Typhoon Paka Projects outside of the normal procedures. (Executive Order 97-41.) Defendant SHELTON was required to follow certain statutes and regulations in his administration of DPR procurements for Typhoon Paka Projects. Those statutes and regulations included a requirement that SHELTON solicit at least three price quotations before awarding a project. 6. At a time when the people of Guam were suffering through an emergency, and despite his duty to carry out his responsibilities with loyalty, honesty, integrity, and faithfulness, Defendant SHELTON devised and carried out a corrupt scheme and plan, as specified below in Paragraph Nine of this Count. Defendant SHELTON used his position dishonestly and corruptly: he rigged the price quotation process for certain Typhoon Paka Projects, and corruptly solicited, demanded, accepted and agreed to accept cash payments totaling at least $105,000. 7. After the Typhoon Paka Emergency, DPR, under Defendant SHELTON, failed to provide the Government of Guam's Recovery Coordination Office (RCO) with the documentation necessary for the RCO to request FEMA reimbursement for the Paseo Light Tower, Wettengel Football Field, Ypao Beach Pavilion and Cabanas, and Agaña Tennis Court / Paseo de Susanna Typhoon Paka Projects. Nonetheless, at all times material to this Indictment, the DPR received federal benefits, in the form of Typhoon Paka relief assistance from FEMA, and assistance from other federal sources, that exceeded $10,000 within any one year period. 8. In 1996, the 23rd Guam Legislature passed "AN ACT TO PRESCRIBE STANDARDS OF CONDUCT FOR ELECTED OFFICERS, APPOINTED OFFICERS AND PUBLIC EMPLOYEES OF THE GOVERNMENT OF GUAM AND TO ESTABLISH AN ETHICS COMMISSION BY ADDING A NEW CHAPTER 15 TO TITLE 4, GUAM CODE ANNOTATED; AND TO AMEND 4 GCA §13101, RELATIVE TO FINANCIAL DISCLOSURE REQUIREMENTS" (the Act). The Act established the Guam Ethics Commission and required that the Act be liberally construed to promote the highest standards of ethical conduct within the Territorial government. As Director of the DPR, Defendant SHELTON:
9. From sometime in about December 1997 until at least sometime in about October 1998, within the District of Guam and elsewhere, Defendant SHELTON and others known and unknown to the Grand Jury, did devise and intend to devise a scheme and artifice to defraud the Government of Guam and the DPR and to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises, and to deprive the Government of Guam, the DPR, and the citizens of the Territory of Guam of their intangible right to the honest services of Defendant SHELTON. 10. It was a purpose of the scheme and artifice to defraud and deprive (the Scheme) to unlawfully enrich Defendant SHELTON through:
11. It was part of the Scheme that Defendant SHELTON would deceive the DPR and the Government of Guam into believing that at least three authentic, independent, competitive price quotations were being submitted for DPR Typhoon Paka Projects, when, in fact, Defendant SHELTON knew that he was causing to be submitted price quotations that were collusive, non-competitive, fraudulent, and artificially high. 12. It was further part of the Scheme that Defendant SHELTON would arrange artificially high prices for the DPR Typhoon Paka Projects based on those collusive, non-competitive, fraudulent, and artificially high price quotations. 13. It was further part of the Scheme that Defendant SHELTON would allocate to specified individuals DPR Typhoon Paka Projects. 14. It was further part of the Scheme that Defendant SHELTON would award DPR Typhoon Paka Projects on the basis of collusive, non-competitive, fraudulent, and artificially high price quotations. 15. It was further part of the Scheme that Defendant SHELTON would cause work to be done in fulfillment of the DPR Typhoon Paka Projects. 16. It was further part of the Scheme that Defendant SHELTON would request, cause to be issued, obtain, and receive checks from the Government of Guam which were payments for the DPR Typhoon Paka Projects. 17. It was further part of the Scheme that Defendant SHELTON would convey, transmit, distribute, and cause to be conveyed, transmitted and distributed checks from the Government of Guam which were payments for the DPR Typhoon Paka Projects. 18. It was further part of the Scheme that Defendant SHELTON would receive and accept cash representing a portion of the payments made by the Government of Guam for the DPR Typhoon Paka Projects. 19. It was further part of the Scheme that Defendant SHELTON would, in order to conceal the fraudulent Scheme described above, give and cause to be given false and misleading information concerning the cost and status of the DPR Typhoon Paka Projects. IN FURTHERANCE OF THE SCHEME 20. On about the following date, in the District of Guam, Defendant SHELTON, for the purpose of executing and attempting to execute the Scheme, did transmit and cause to be transmitted in interstate and foreign commerce by means of a wire communication, certain writings, signs, signals, and sounds: a facsimile transmission accepting an offer to ship lighting equipment, sent on about February 5, 1998 from the offices of D.S. Corporation, doing business as Bunny Hardware, which originated at or near Maite, Guam, to the offices of OSCAR Trading Co., located in Compton, California. ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTIONS 1343, 1346 AND 2. WIRE FRAUD 21. Paragraphs One through Nineteen of this Indictment are repeated and realleged as if fully set forth in Count Two. 22. On about the following date, in the District of Guam, Defendant SHELTON, for the purpose of executing and attempting to execute the Scheme, did transmit and cause to be transmitted in foreign commerce by means of a wire communication, certain writings, signs, signals, and sounds: a facsimile transmission entitled "pro forma invoice" for roofing materials, sent on about February 12, 1998, from the offices of ATCO, located at or near Tamuning, Guam to the offices of Tilling Timber PTY, LTD., located in Australia, a foreign nation. ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTIONS 1343, 1346 AND 2. [18 U.S.C. § 666(a)(1)(B)] 23. Paragraphs One through Seven of this Indictment are repeated and realleged as if fully set forth in Counts Three through Eight. 24. All acts charged in Counts Three through Eight were conceived and carried out, in whole or in part, within the District of Guam within five years preceding this Indictment. 25. As specified below for Counts Three through Eight of this Paragraph, on or about the dates set forth below in this Paragraph, in the District of Guam, Defendant SHELTON, being an agent of a territorial government agency, which territorial government agency received federal assistance in excess of $10,000 in a one-year period, did corruptly solicit and demand for the benefit of any person, and accept and agree to accept, anything of value from any person, intending to be influenced and rewarded in connection with any business, transaction, and series of transactions of such territorial government agency involving anything of value of $5,000 or more, to wit: Defendant SHELTON, being the Director of DPR, corruptly solicited, accepted, and agreed to accept things of value specified below in this Paragraph from the individuals specified below in this Paragraph, intending to be influenced and rewarded in connection with the Typhoon Paka Projects specified below in this Paragraph.
ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTION 666(a)(1)(B). COUNTS NINE THROUGH ELEVEN CONSPIRACY TO RESTRAIN TRADE 26. The allegations set forth in Paragraphs One through Seven of this Indictment are repeated and realleged as if fully set forth in Counts Nine through Eleven. 27. Description of the Offense.
28. Co-conspirators. Various individuals and corporations not made defendants in this Indictment participated as co-conspirators in each combination and conspiracy charged in Counts Nine through Eleven of this Indictment and performed acts and made statements in furtherance of it. 29. Territorial commerce. During the periods covered by Counts Nine through Eleven, each and every Typhoon Paka Project specified above in Counts Nine through Eleven involved substantial trade and commerce in the Territory of Guam. Price quotation, invoicing, work, and payment on each Typhoon Paka Project occurred in the Territory of Guam. 30. Jurisdiction and venue. Each combination and conspiracy charged in Counts Nine through Eleven was planned, discussed, and implemented, among other places: where the work was to occur and did occur; in Defendant SHELTON's office at Paseo de Susanna; and in the offices of co-conspirators and those whom Defendant SHELTON aided and abetted, all in the Territory of Guam, within the five years preceding the return of this Indictment. ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 3, AND TITLE 18, UNITED STATES CODE, SECTION 2. MONEY LAUNDERING CONSPIRACY 31. Paragraphs One through Seven of this Indictment are repeated and realleged as if fully set forth in Count Twelve. 32. Among the DPR Typhoon Paka Projects were the Paseo Light Tower and Ypao Beach Pavilion and Cabanas. 33. Beginning as early as about December 17, 1997, a more exact date being unknown to the Grand Jury, and continuing thereafter to about May 26, 1998, in the District of Guam and elsewhere, Defendant SHELTON did conspire, confederate and agree with others known and unknown to the Grand Jury, to commit certain offenses under Title 18, United States Code, Section 1957, as follows: a. to knowingly engage and attempt to engage in monetary transactions, affecting interstate and foreign commerce, in criminally derived property that was of a value greater than $10,000, such property having been derived from specified unlawful activity, that is wire fraud, a violation of Title 18, United States Code, Section 1343. MANNER AND MEANS OF THE CONSPIRACY The objects of the conspiracy were to be accomplished and were accomplished as follows: 34. It was part of the conspiracy that Defendant SHELTON would benefit from the wire fraud activity. 35. It was further part of the conspiracy that on about January 12, 1998 Defendant SHELTON, on behalf of DPR, accepted two artificially high, non-competitive price quotations for the Paseo Light Tower project. Each of these two price quotations was dated December 31, 1997. 36. It was further part of the conspiracy that on about January 12, 1998 Defendant SHELTON, on behalf of DPR, accepted a third artificially high, non-competitive price quotation for the Paseo Light Tower project that was lower than the other two price quotations, and designated by a co-conspirator to win the contract at an artificially high price of $134,000. This price quotation was dated January 12, 1998. 37. It was further part of the conspiracy that on about January 15, 1998 Defendant SHELTON, on behalf of DPR, awarded the Paseo Light Tower project to the designated contractor. 38. It was further part of the conspiracy that on about January 15, 1998 Defendant SHELTON signed and dated a Government of Guam Requisition document authorizing the Paseo Light Tower project in the amount of $134,000. 39. It was further part of the conspiracy that on about February 12, 1998 Defendant SHELTON accepted a billing invoice from a co-conspirator requesting partial payment in the amount of $85,500 on the Paseo Light Tower project. 40. It was further part of the conspiracy that on about February 20, 1998 Defendant SHELTON caused the Government of Guam to prepare and distribute a check made payable to the project contractor in the amount of $85,500 in partial payment for work on the Paseo Light Tower project, which monies were proceeds of the wire fraud activity. 41. It was further part of the conspiracy that on about February 26, 1998 the project contractor utilized a portion of the check funds to purchase a cashier's check in the amount of $70,000 made payable to a co-conspirator. 42. It was further part of the conspiracy that on about February 27, 1998 the co-conspirator caused the cashier's check, in the amount of $70,000 to be deposited into a bank account that did not belong to him but to which he had access. 43. It was further part of the conspiracy that on about February 20, 1998 Defendant SHELTON solicited a bribe from a co-conspirator to compensate him for his role in fraudulently awarding the government contract for the Paseo Light Tower project. Defendant SHELTON specified that his bribe be paid to him in the form of cash. 44. It was further part of the conspiracy that on about March 3, 1998, Defendant SHELTON accepted a bribe in the amount of $15,000 in cash from a co-conspirator in connection with the Paseo Light Tower project. 45. It was further part of the conspiracy that on about April 7, 1998 Defendant SHELTON accepted a billing invoice from a co-conspirator requesting final payment in the amount of $48,500 on the Paseo Light Tower project. 46. It was further part of the conspiracy that on about May 26, 1998 Defendant SHELTON caused the Government of Guam to prepare and distribute a check made payable to the project contractor in the amount of $48,500 in final payment for work on the Paseo Light Tower project, which monies were proceeds of the wire fraud activity. 47. It was further part of the conspiracy that on or about May 26, 1998 the project contractor utilized a portion of the check funds to purchase a cashier's check in the amount $19,640 made payable to a business entity as designated by a co-conspirator. 48. It was further part of the conspiracy that on or about May 26, 1998 the co-conspirator caused the cashier's check, in the amount of $19,640 to be deposited into a bank account that did not belong to him but to which he had access. 49. It was further part of the conspiracy that on about December 30, 1997 Defendant SHELTON, on behalf of DPR, accepted two artificially high, non-competitive price quotations for the Ypao Beach Pavilion and Cabanas project. 50. It was further part of the conspiracy that on about December 30, 1997 Defendant SHELTON, on behalf of DPR, accepted an artificially high, non-competitive price quotation for the Ypao Beach Pavilion and Cabanas project that was lower than the other two price quotations, was designated by a co-conspirator to win the contract at an artificially high price of $145,000, and was supported by other artificially high, non-competitive price quotations. 51. It was further part of the conspiracy that on about December 30, 1997 Defendant SHELTON solicited a bribe from the co-conspirator to compensate him for his role in fraudulently awarding the government contract for the Ypao Beach Pavilion and Cabanas project. Defendant SHELTON and the co-conspirator agreed to the bribe amount of $45,000. Defendant SHELTON specified that his bribe be paid to him in the form of cash. 52. It was further part of the conspiracy that on about January 14, 1998 Defendant SHELTON, on behalf of DPR, awarded the Ypao Beach Pavilion and Cabanas project to the designated contractor co-conspirator. 53. It was further part of the conspiracy that on about January 14, 1998 Defendant SHELTON signed and dated a Government of Guam Requisition document authorizing the Ypao Beach Pavilion and Cabanas project in the amount of $145,000. 54. It was further part of the conspiracy that on about February 12, 1998 Defendant SHELTON accepted a billing invoice for an amount of $101,500 from a co-conspirator requesting partial payment on the Ypao Beach Pavilion and Cabanas project. 55. It was further part of the conspiracy that on about February 20, 1998 Defendant SHELTON caused the Government of Guam to prepare and distribute a check made payable to the project contractor in the amount of $101,500 in partial payment for work on the Ypao Beach Pavilion and Cabanas project, which monies were proceeds of the wire fraud activity. 56. It was further part of the conspiracy that on about February 26, 1998 the project contractor co-conspirator prepared and issued checks in amounts of $26,951, $12,746, $9,552.20 and $8,750.80 payable to two business entities and an individual for the benefit of Defendant SHELTON and a co-conspirator. The co-conspirator utilized these funds to obtain cash which would be used, in part, to pay Defendant SHELTON the bribe that he requested. 57. It was further part of the conspiracy that beginning on about March 3, 1998 and then within several days following Defendant SHELTON accepted bribes aggregating $45,000, in cash, from a co-conspirator in connection with the Ypao Beach Pavilion and Cabanas project. 58. It was further part of the conspiracy that on about April 9, 1998 Defendant SHELTON accepted a billing invoice for an amount of $43,500 from a co-conspirator requesting final payment on the Ypao Beach Pavilion and Cabanas project. 59. It was further part of the conspiracy that on about May 26, 1998 Defendant SHELTON caused the Government of Guam to prepare and distribute a check made payable to the project contractor co-conspirator in the amount of $43,500 in final payment for work on the Ypao Beach Pavilion and Cabanas project, which monies were proceeds of the wire fraud activity. ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTION 1956(h). ENGAGING IN MONETARY TRANSACTIONS 60. Paragraphs One through Seven of this Indictment are repeated and realleged as if fully set forth in Counts Thirteen and Fourteen. 61. As specified in Counts Thirteen and Fourteen below, on about the dates set forth below, in the District of Guam and elsewhere, the Defendant SHELTON, did knowingly engage, attempt to engage, cause to engage and attempt to cause to engage in monetary transactions, affecting interstate and foreign commerce, in criminally derived property that was of a value greater than $10,000, that is deposits of funds and monetary instruments in the amounts set forth below, such property having been derived from specified unlawful activity, that is wire fraud, a violation of Title 18, United States Code, Section 1343:
ALL IN VIOLATION OF TITLE 18 UNITED STATES CODE, SECTIONS 1957 AND 2. MONEY LAUNDERING FORFEITURE 62. Beginning as early as about December 17, 1997, a more exact date being unknown to the Grand Jury, and continuing to about May 26, 1998, in the District of Guam and elsewhere, Defendant SHELTON did knowingly and willfully commit violations of Title 18, United States Code, Sections 1956 and 1957, as alleged in Counts Twelve, Thirteen and Fourteen of this Indictment, which are incorporated by reference herein. 63. Pursuant to Title 18, United States Code, Section 982(a)(1), upon conviction, Defendant SHELTON shall forfeit to the United States all right, title, and interest in any and all property involved in said transactions in violation of Title 18, United States Code, Sections 1956 and 1957, and all property traceable to such property, including the following: 1) all money or other property that was the subject of each transaction; 2) all commissions, fees and other property constituting proceeds obtained as a result of those violations; and 3) all property used in any manner or part to commit or to facilitate the commission of those violations, as to which properties Defendant SHELTON is jointly and severally liable. 64. The United States intends to forfeit property of Defendant SHELTON including, but not limited to, the following:
ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTION 982(a)(1).
|