DEPARTMENT OF JUSTICE

Acting United States Attorney Edward R. Ryan
Western District of North Carolina

FOR IMMEDIATE RELEASE
FRIDAY, JUNE 12, 2009

CONTACT: Terry Wilkinson
704.344.6222
Fax: 704.344.0629

ETOWAH, NORTH CAROLINA MAN SIGNS PLEA AGREEMENT IN FEDERAL CRIMINAL CASE INVOLVING CERTIFIED ESTATE PLANNERS, INC. ASHEVILLE, NC. -- Alexander Klosek, 31, of Etowah, North Carolina, was charged today in a federal bill of information filed in U.S. District Court in Asheville, with one count alleging conspiracy to commit mail and wire fraud. Klosek has agreed to plead guilty to the charge pursuant to a plea agreement with the government, also filed today. Dates have not yet been set for the formal entry of Klosek’s guilty plea or for Klosek’s sentencing.

Acting U.S. Attorney Edward R. Ryan is joined by Owen Harris, Special Agent in Charge of the FBI in North Carolina, in making today’s announcement. The charge against Klosek arises out of an alleged conspiracy in which he participated and which took place from in or about January 2003 through about June 2006 in Henderson County, involving Certified Estate Planners, Inc. The bill of information filed against Alexander Klosek alleges that he, together with B.N. and others, solicited over 100 investors to invest large sums of their retirement savings with Certified Estate Planners, Inc. (“CEP”) by promising a conservative investment strategy. Today’s charging bill of information also states that Klosek and B.N., without CEP clients’ knowledge, diverted several million dollars of the clients’ assets to B.N.’s start-up lumber composite company, thereby significantly decreasing the value of the clients’ investments. The bill of information states that Klosek and B.N. then continually misrepresented the value of the clients’ assets on the quarterly statements mailed to clients so that they would not know the true diminished value of their assets. Based on this scheme, the CEP clients were defrauded of approximately $7 million.

The Federal Bureau of Investigation led the investigation that resulted in the filing of today’s bill of information and in the filing of a related bill of indictment, filed June 3, 2009, alleging that Bryan Noel also participated in the above-described conspiracy. The government has also been assisted in this investigation by the North Carolina Secretary of State’s Office.

The government is represented in this matter by Assistant U.S. Attorney Melissa Rikard of the U.S. Attorney’s Criminal Division in Charlotte. Also today in federal court in Asheville, Bryan Noel was afforded a detention hearing before U.S. Magistrate Judge Dennis L. Howell. Noel was ordered detained.

A copy of the bill of information charging Alexander Klosek is provided along with this press release. Klosek faces a maximum penalty of five years’ imprisonment, a $250,000 fine, or both.

ALEXANDER KLOSEK
Age: 31
Etowah, North Carolina