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NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION
INFORMATION The United States of America, acting through its attorneys, charges: COUNT ONE--CONSPIRACY 1. PATRICK JOSEPH CROWE III is hereby made a defendant on this charge. I. DEFENDANT AND CO-CONSPIRATORS 2. During the period covered by this Information, defendant Crowe, a resident of Chattanooga, Tennessee, was employed as a salesman for Chemical Products Technologies, LLC ("CPT"), a corporation organized and existing under the laws of the State of Georgia with its principal place of business in Cartersville, Georgia. Among other products, CPT sold anthraquinone, a pulping additive used to increase production in the pulp and paper industry, and glyphosate, an herbicide used to control grasses and weeds, to customers throughout the United States. The majority owner of CPT was Chemical Products Corporation ("CPC"), a Cartersville, Georgia company engaged in the business of mining and manufacturing various chemicals. 3. Co-Conspirator Number One ("CC-1) was employed as the general manager of CPT. In his position as general manager, CC-1 was responsible for the operation and profitability of the company. CC-1 was also the owner of Grey Bear, a Georgia corporation that owned 21% of CPT. 4. Co-Conspirator Number Two ("CC-2") was the sole owner and operator of an independent trucking company in Tennessee, who was hired to deliver anthraquinone for CPT. II. DESCRIPTION OF THE OFFENSE 5. Beginning at least as early as July 2000, and continuing thereafter at least through October 10, 2003, the exact dates being unknown to the United States, in the Northern District of Georgia and elsewhere, the defendant, CC-1, and CC-2 did unlawfully, willfully, and knowingly combine, conspire, confederate, and agree in violation of Title 18, United States Code, Section 371, to commit offenses against the United States of America, to wit, to violate Title 18, United States Code, Sections 1341 and 1346. 6. It was a part and object of said conspiracy that the defendant, CC-1, and CC-2, having devised and intending to devise a scheme and artifice to defraud CPT and deprive CPT of its right to the honest services of its employees, executed such scheme and artifice to defraud by and through the use of the United States mail. III. THE MANNER AND MEANS BY WHICH THE 7. The defendant, CC-1, and CC-2 participated in a kickback scheme to defraud CPT, whereby they all agreed that CC-2 would make kickback payments to the defendant's shell corporation in exchange for ensuring that CC-2 received business from CPT. As a result of the scheme and artifice to defraud, CC-2 paid the defendant kickback payments totaling $69,428.27, a portion of which the defendant paid to CC-1. The defendant and CC-1 concealed the kickback agreement and kickback payments from CPT and CPC. 8. The defendant and CC-1 had a fiduciary duty to transact business in the best interest of CPT, and to act honestly and faithfully in all of their dealings with CPT, including a duty to make full and fair disclosure to CPT of any kickbacks they received, or expected to receive, from CC-2 during the course of their employment. The defendant breached his fiduciary duty to CPT by receiving unauthorized kickback payments from CC-2. 9. For the purpose of forming and effectuating the aforesaid conspiracy, the defendant, CC-1, and CC-2 did those things that they combined and conspired to do, including, among other things:
IV. OVERT ACTS 10. In furtherance of the conspiracy and to effect the illegal objects thereof, the defendant, CC-1, and CC-2 committed overt acts in the Northern District of Georgia and elsewhere, including, but not limited to:
V. JURISDICTION AND VENUE 11. The conspiracy charged in this Count was formed and carried out, in part, in the Northern District of Georgia within the five years preceding the filing of this Information. ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTION 371. COUNT TWO--CONSPIRACY 12. PATRICK J. CROWE III is hereby made a defendant on this charge. I. DEFENDANT AND CO-CONSPIRATORS 13. Paragraphs 2 and 3 of Count One of this Information are repeated, realleged, and incorporated in Count Two with the same force and effect as if fully set forth in this Count. 14. From at least March 2002 until at least December 2002, the defendant was the primary salesman for CPT's glyphosate business and reported directly to CC-1. 15. Co-Conspirator Number Three ("CC-3") was the owner of a Nevada corporation in the business of forming corporate entities and providing nominee services to such entities. II. DESCRIPTION OF THE OFFENSE 16. Beginning at least as early as April 2002, and continuing thereafter at least through December 3, 2002, the exact dates being unknown to the United States, in the Northern District of Georgia and elsewhere, the defendant, CC-1, and CC-3 did unlawfully, willfully, and knowingly combine, conspire, confederate, and agree in violation of Title 18, United States Code, Section 371, to commit offenses against the United States of America, to wit, to violate Title 18, United States Code, Sections 1341 and 1346. 17. It was a part and object of said conspiracy that the defendant, CC-1, and CC-3, having devised and intending to devise a scheme and artifice to defraud CPT and deprive CPT of its right to the honest services of its employees, executed the scheme and artifice to defraud by and through the use of a commercial interstate carrier. III. THE MANNER AND MEANS BY WHICH THE 18. The defendant and CC-1 devised and, along with CC-3, participated in a scheme and artifice to defraud CPT out of profits from its glyphosate business. To execute the scheme, the defendant hired CC-3 to act as a nominee for CDFD, Inc., a Wyoming corporation owned by the defendant. At the instruction of the defendant, CC-3 opened a bank account for CDFD. The defendant and CC-1 concealed the defendant's ownership of CDFD and his control over the CDFD business account. 19. In furtherance of the scheme and artifice to defraud, the defendant and CC-1 misled CPT and CPC to believe that CDFD was an escrow agent, and arranged to have all funds generated by CPT's glyphosate business deposited into the CDFD business account set up by CC-3. It was CPT's intention that the funds deposited into the CDFD bank account would be used to pay CPT's glyphosate supplier, with the balance disbursed to CPT and Zetachem, U.S.A. (CPT's former partner in the glyphosate business). The defendant and CC-1, who were, at all times, aware that they were not authorized to use these funds for their personal benefit, diverted funds from the CDFD business account for their own personal use. As a result of the scheme and artifice to defraud, the defendant unlawfully received at least $17,416.59 from the CDFD account and CC-1 received at least $39,412.62. At the time these payments were made, CPT and CPC were unaware that the defendant and CC-1 were stealing profits from CPT's glyphosate business. 20. The defendant and CC-1 had a fiduciary duty to transact business in the best interest of CPT, and to act honestly and faithfully in all of their dealings with CPT, including a duty to disclose to CPT the defendant's ownership of CDFD, Inc., the defendant's control over the CDFD business account, and any payments the defendant and CC-1 received from the CDFD business account during the course of their employment. The defendant breached his fiduciary duty to CPT by stealing profits from CPT's glyphosate business for his own personal use. 21. For the purpose of forming and effectuating the aforesaid conspiracy, the defendant, CC-1, and CC-2 did those things that they combined and conspired to do, including, among other things:
IV. OVERT ACTS 22. In furtherance of the conspiracy and to effect the illegal objects thereof, the defendant, CC-1, and CC-3 committed overt acts in the Northern District of Georgia and elsewhere, including, but not limited to:
23. The combination and conspiracy charged in this Count was formed and carried out, in part, in the Northern District of Georgia within the five years preceding the filing of this Information. ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTION 371. Dated this 23rd day of June, 2005.
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