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FREDERICK A. BLACK
United States Attorney
JOSEPH F. WILSON
Assistant U.S. Attorney
RICHARD B. COHEN
MATTHEW D. SEGAL
Trial Attorneys
Suite 500, Sirena Plaza
108 Hernan Cortez Ave.
Hagta, Guam 96910
TEL: (671) 472-7332
FAX: (671) 472-7334

Attorneys for the United States

Filed March 14, 2001

IN THE UNITED STATES DISTRICT COURT
FOR THE TERRITORY OF GUAM




UNITED STATES OF AMERICA,  

                  Plaintiff,



                  v.



AUSTIN J. "SONNY" SHELTON,  

               Defendant.



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CRIMINAL CASE NO. 01-00007

SUPERSEDING INDICTMENT

WIRE FRAUD
[18 U.S.C. §§ 1343, 1346, & 2]
BRIBERY
[18 U.S.C. § 666(a)(1)(B)]
CONSPIRACY TO RESTRAIN TRADE
[15 U.S.C. § 3, 18 U.S.C. § 2]
MONEY LAUNDERING CONSPIRACY
[18 U.S.C. § 1956(h)]
MONEY LAUNDERING
[18 U.S.C. §§ 1957 & 2]
A FALSE STATEMENT
[18 U.S.C. § 1001]
FORFEITURE ALLEGATION
[18 U.S.C. § 982(a)(1)]



THE GRAND JURY CHARGES:

COUNT ONE

WIRE FRAUD
[18 U.S.C. §§ 1343, 1346 & 2]

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.

THE DUTY OF HONEST SERVICES

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:

  1. Was subject to the provisions of the act prohibiting him from soliciting, accepting or receiving, directly or indirectly, any gift valued singly or in the aggregate from a single source in excess of $200, whether in the form of money, prize, service, loan, travel, entertainment, hospitality, thing or promise, or in any other form, when a reasonable person would infer that the gift was intended to influence him in the performance of his official duties or was intended as a reward for any official action on his part;

  2. Was further subject to the provisions of the act prohibiting him from using or attempting to use his official position to secure or grant unwarranted privileges, exemptions, advantages, contracts, or treatment, for himself or others by either accepting, receiving, or soliciting compensation for the performance of official duties or responsibilities, or soliciting, selling, or otherwise engaging in a financial transaction with a subordinate or a person or business whom he inspects or supervises in his official capacity; and,

  3. Owed his employer, that is, the Government of the Territory of Guam (Government of Guam) and its citizens, a general duty of loyalty, honesty, integrity and faithfulness.

THE SCHEME

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.

THE PURPOSE OF THE SCHEME

10. It was a purpose of the scheme and artifice to defraud and deprive (the Scheme) to unlawfully enrich Defendant SHELTON through:

  1. The personal exploitation of information by Defendant SHELTON relating to the availability of DPR Typhoon Paka Projects, to which information Defendant SHELTON was privy by virtue of his position as Director of the DPR;

  2. The unlawful solicitations and demands for the benefit of himself and other persons, and the acceptance and agreements to accept, things of value from companies and persons providing goods and services for DPR Typhoon Paka Projects; and

  3. The concealment by Defendant SHELTON of all of the above from the Government of Guam and citizens of the Territory of Guam.

MANNER AND MEANS OF EXECUTING THE SCHEME

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.

USE OF INTERSTATE WIRE FACILITIES
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.

COUNT TWO

WIRE FRAUD
[18 U.S.C. §§ 1343, 1346, 2]

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.

COUNTS THREE THROUGH EIGHT

BRIBERY
[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.

COUNT TYPHOON PAKA PROJECT(S) PAYOR APPROXIMATE DATE APPROXIMATE PAYMENT
3 Paseo Light Tower
Q82599-055
Young Soo Yoon Between February 1998 and July 1998 $15,000 cash
4 Wettengel Football Field
Q82599-051
Young Soo Yoon Between February 1998 and July 1998 $15,000 cash
5 Ypao Beach Pavilion and Cabanas
Q82599-052
Young Soo Yoon Between February 1998 and July 1998 $25,000 cash
6 Ypao Beach Pavilion and Cabanas
Q82599-052
Young Soo Yoon Between February 1998 and July 1998 $20,000 cash
7 Debris Removal / Heavy Equip. Rental
Q82599-030
Q82599-032
Q82599-034
Q82599-048
Young Soo Yoon and an Associate Between December 1997 and February 1998 $10,000 cash
8 Agaña Tennis Court / Paseo de Susanna
Q82599-020
Q82599-021
Primitivo Carlos Between February 1998 and July 1998 $25,000(cash plus debt forgiveness)


ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTION 666(a)(1)(B).

COUNTS NINE THROUGH ELEVEN

CONSPIRACY TO RESTRAIN TRADE
[15 U.S.C. § 3; 18 U.S.C. § 2]

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.

  1. During the periods specified below for Counts Nine through Eleven in this Paragraph, the exact dates being unknown to the Grand Jury, Defendant SHELTON and others entered into and engaged in combinations and conspiracies, identified below in this Paragraph, to suppress and restrain competition for Typhoon Paka Projects, in unreasonable restraint of territorial trade and commerce, in violation of the Sherman Act, Title 15, United States Code, Section 3.

  2. The Defendant SHELTON aided, abetted, counseled, commanded, induced, and procured each combination and conspiracy charged in Counts Nine through Eleven, listed below in this Paragraph, and willfully caused others to perform acts and make statements in furtherance of the charged combinations and conspiracies, in violation of Title 18, United States Code, Section 2.

    COUNT (SEPARATE COMBINATION AND CONSPIRACY) TYPHOON PAKA PROJECTS SUBJECT TO COMBINATION AND CONSPIRACY, AND RIGGED CONTRACT AMOUNTS TERM OF COMBINATION AND CONSPIRACY
    9
    Paseo Light Tower
    Q82599-055
    $134,000
    Wettengel Football Field
    Q82599-051
    $126,000
    Ypao Beach Pavilion
    and Cabanas
    Q82599-052
    $145,000
    Beginning as early as December 1997 and lasting until at least July 1998
    10
    Agaña Tennis Court /
    Paseo de Susanna
    Q82599-020
    Q82599-021
       $175,000
    Beginning as early as December 1997 and lasting until at least July 1998
    11
    Paseo Billboard
    Q992500-102
          $13,750
    Paseo Scoreboard
    Q992500-103
          $23,500
    Paseo Flagpole
    Q992500-104
         $22,700
    Beginning as early as April 1999 and lasting until at least October 1999

  3. The combinations and conspiracies charged in Counts Nine through Eleven each consisted of an agreement, understanding, and concert of action among Defendant SHELTON and co-conspirators, the substantial terms of which were to rig price quotations offered for, and to allocate, Typhoon Paka Projects, as specified in this paragraph.

  4. For the common purpose of forming and carrying out each combination and conspiracy charged in Counts Nine through Eleven, Defendant SHELTON and others conspired, among other things, to:

    1. allocate upcoming Typhoon Paka Projects to particular persons;

    2. discuss price quotations on upcoming Typhoon Paka Projects;

    3. agree on the price quotations they would submit for that work;

    4. submit artificially high, non-competitive amounts in their price quotations offered for that work;

    5. perform the work at artificially high, non-competitive prices;

    6. submit to DPR invoices and other documents as required; and

    7. receive compensation from DPR for the work.

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.

COUNT TWELVE

MONEY LAUNDERING CONSPIRACY
[18 U.S.C. §1956(h)]

INTRODUCTION

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.

CONSPIRACY

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:

  1. 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 28, 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 February 27, 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).

COUNTS THIRTEEN AND FOURTEEN

ENGAGING IN MONETARY TRANSACTIONS
IN PROPERTY DERIVED FROM SPECIFIED UNLAWFUL ACTIVITY
[18 U.S.C. §§1957 and 2]

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:

COUNT ACCOUNT NAME BANK NAME DATE OF DEPOSIT CHECK AMOUNT
13 Lee Yoon Oceanic Bank February 27, 1998 $70,000
14 Guam Korean Television Bank of Guam February 27, 1998 $26,951


ALL IN VIOLATION OF TITLE 18 UNITED STATES CODE, SECTIONS 1957 AND 2.

COUNT FIFTEEN

FALSE STATEMENT

[18 U.S.C. §§ 1001 & 2]

62. Paragraph One of this Indictment is repeated and realleged as if fully set forth in this Count.

63. On about February 1, 2001, within the District of Guam, in a matter within the jurisdiction of the United States Probation Office ("Probation Office") for the District of Guam, an agency of the United States, Defendant SHELTON, knowingly and willfully made and caused to be made false, fictitious and fraudulent statements and representations as to material facts.

64. The false, fictitious and fraudulent statements and representations were made to Rossanna Villagomez-Aguon, a Pretrial Services Officer for the Probation Office, for use in preparing a Probation Office Financial Information sheet. Pretrial Services Officer Rossanna Villagomez-Aguon ("Officer Villagomez-Aguon") utilized that Financial Information sheet to prepare a Pretrial Services Report and to make a recommendation as to bail and conditions for bail.

65. Defendant SHELTON stated to Officer Villagomez-Aguon that his only source of income were wages from his job with the Territorial Government of Guam. Defendant SHELTON also stated to Officer Villgomez-Aguon that he did not have any other debts than those he had told her about.

66. In truth and in fact, as Defendant SHELTON knew, he had another source of income, namely, Shelton Music Company, Incorporated, an unlicensed business. Defendant SHELTON received this additional cash income from amusement machines, pool tables, and vending machines at locations, including, but not limited to, Bob's Whispering Palms, the Elks Lodge, the Willows, and the Dandy Club.

67. In truth and in fact, as Defendant SHELTON knew, he had other debts than those he disclosed, including, but not limited to, a debt of approximately $13,000 to the Guam Power Authority, a debt of approximately $6,000 to the Guam Waterworks Authority, and a debt of approximately $3,700 to Calvo's Insurance Underwriters, Inc.

ALL IN VIOLATION OF TITLE 18 UNITED STATES CODE, SECTION 1001.

FORFEITURE ALLEGATION

MONEY LAUNDERING FORFEITURE

68. 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.

69. 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.

70. The United States intends to forfeit property of Defendant SHELTON including, but not limited to, the following:

  1. The sum of money equal to the sum involved in the violations set forth in Counts Twelve, Thirteen and Fourteen;

  2. All property involved in the violations set forth in Counts Twelve, Thirteen, and Fourteen of this Indictment, and all property traceable thereto;

  3. All other property of Defendant SHELTON, up to the value of any property described in subparagraphs a. and b. above, if by any act or omission of Defendant SHELTON said property, or any portion thereof, 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, in which case such other property shall be substituted and forfeited to the United States pursuant to Title 21, United States Code, Section 853(p), as incorporated by Title 18, United States Code, Section 982(b).

ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTION 982(a)(1).

    A TRUE BILL.


  _____________"/s/"________________
[REDACTED TEXT]
Foreperson

FREDERICK A. BLACK
United States Attorney
Districts of Guam and NMI

By: __________"/s/"__________________
JOSEPH F. WILSON
Assistant U.S. Attorney