TelexFree: Joseph Craft Admits It Was a PONZI

In his reply to the Amended Complaint, Joseph Craft filed this today: (emphasis added)

JOSEPH CRAFT’S ANSWER TO THE AMENDED COMPLAINT

Defendant Joseph Craft answers to the Securities & Exchange Commission’s (the “SEC’s” hereinafter) Amended Complaint as follows:

The Defendant did not know that the scheme described in the Complaint qualified as an illegal Ponzi scheme and was involved in the unregistered sale of securities when he became TelexFree’s accountant and did not conclude that it was until approximately March, 2014.

The Defendant denies that he was a principal or insider in the enterprise at any time, and says that he performed honest and legitimate accounting services for the corporations named in the Complaint.

He denies that he assisted any wrongful activity. He was kept in the dark about the true nature of the enterprise’s activities and was a victim of misrepresentations for most of the time that he served as TelexFree’s accountant. He was not an insider, employee, owner, principal or promoter.

The Defendant denies that he received $30 million or anything close to that or that the enterprise was a “money making machine” as to him. His accounting firm received approximately $150,000 for accounting services rendered during the period he served as the enterprises’ accountant.

The denials continue, with a smattering of admissions that parts of the complaint were correct. I have uploaded this document onto the Files website (Doc 232)

BREAKING NEWS: TelexFree’s Merrill and Wanzeler Indicted!!!

carlos-wanzeler-and-james-merrill-telexfree-management-criminals
Photo courtesy of BehindMLM. Wanzeler (l) and Merrill (r)

Today, the Grand jury indicted James Merrill and Carlos Wanzeler on 9 Felony counts each:

  • Count 1
    • 18:1349 CONSPIRACY TO COMMIT WIRE FRAUD
  • Counts 2-9
    • 18:1343 WIRE FRAUD

The document (70) also contains a “Forfeiture Allegation” which, if convicted on one or more of the charges, will forfeit any and all property, real or personal, that is traceable to the offenses. The list of assets that could be subject to forfeiture is quite literally staggering.

I started to add them all up, but it was over 7 pages of items listed, from “Item a”, to “Item rrr”. Reports are the seized accounts and checks total around $140 Million, not counting all properties in their “real estate empire”, all of which are thought to be the proceeds of criminal activity.  It looks like Merrill will need that $4 million to pay his lawyers after all.

I have added this Grand Jury Indictment onto the Files website, click here.

For an in depth story, visit BehindMLM here.

ASDUpdates Blog Reaches Its 1,111th Post!

I suppose it is a sort of milestone, 1, 111 posts since I started the Blog to detail the events in the ASD/AdSurfDaily  Ponzi scam. Since that time, there seems to be a proliferation of crooks and scams resulting in literal piles of money leaving the victims and ending up in the bank accounts of serial scam artists and promoters.

Until the worldwide public realizes that no legitimate program can pay them an RIO 100’s of time greater than any other method is nothing but a scam, these “opportunities” will continue to pillage the public and separate them from their money.

 

Judge Signs Final Order Of Forfeiture In Leaming Case

On November 22, 2013,  US District Judge Ronald B. Leighton signed the Final Order of Forfeiture regarding all items seized during an FBI Terrorism Task Force raid in November of 2011 on Kenneth “Keny” Wayne Leaming’s home in Spanaway, Washington.  The list of items seized and forfeited include:

a. One (1) Norinco SKS 7.62x39mm semiautomatic rifle, bearing Serial No.  215590;
b. One (1) Astra model A-100 .45 caliber semiautomatic pistol, bearing Serial  No. 0865B;
c. One (1) Ruger model Vaquero, .45 caliber revolver, bearing Serial No. 57-49390;
d. One (1) Remington model 870 Express 12 gauge shotgun, bearing Serial No. X298121M;
e. One (1) Winchester model 94 .30-.30 caliber lever-action rifle, bearing Serial No. 4793736;
f. One (1) Winchester model 94 .32 caliber lever-action rifle, bearing Serial No. 1238347;
g. All badges, credentials, law enforcement identification documents, and other law enforcement equipment, including but not limited to light bars, crime scene tape, vests, handcuffs, nightsticks, and other similar items;
h. All documents related to defendant’s performance of legal services for third parties, including “client” files, counterfeit instruments, and similar materials;  and
i. All digital devices, including computers, external hard drives, and other storage media.

Leaming was subsequently convicted of the following:

  • 2 Counts of Retaliating Against A Federal Judge or Law Enforcement Officer by a False Claim
  • 1 Count of Concealing a Person from Arrest
  • 1 Count of Felon in Possession of a Firearm

Leaming is serving his sentence in  the Terre Haute Federal Corrections Institution and is scheduled for release on February 13, 2019. A Federal Felon conviction in 2005 was for Piloting an Aircraft Without a License and Piloting an Unregistered Aircraft, which made it illegal for him to possess any firearm.

I have uploaded Doc 285 onto the Files website.

Washington District Files Motion For Final Order Of Forfeiture In Leaming Case

US Attorney Jenny Durkin has filed a Motion in the Western District of Washington for a Final Order of Forfeiture for the seized property of Kenneth “Keny” Wayne Leaming, self-proclaimed lawyer that never went to any law school. Leaming is also purported to be a “sovereign citizen” and is a Charter Member of the “Arbys Indians”.

You can read the full filing here.   Doc284

 

 

 

Kenneth Wayne Leaming Gets Another Motion Denied

It appears that Leaming’s attempt to stay the Forfeiture of his “property” has not met with favor.  Here’s what Judge Leighton had to say:

No. 12-cr-5039-RBL
ORDER DENYING MOTION TO STAY FORFEITURE
(Dkt. #269)

Defendant “directs” the Court to stay forfeiture of his property pending appeal (because he is quite certain that there are “fundamental jurisdictional issues” concerning whether a federal court has the authority to hear federal criminal trials). The property at issue is Defendants’ firearms and regalia related to his sovereign citizen club, including pretend law enforcement badges. Defendant, already a felon before this conviction, offers no reason to stay forfeiture.

Well, that answers that. I really like Judge Leighton, he doesn’t mince words.

USA Files Sentencing Memorandum For Kenneth Wayne Leaming

Added to the docket file today is the government’s Sentencing memorandum related to Kenneth Wayne Leaming and his recent conviction on multiple felonies.  Here is the first part of the Memorandum:

UNITED STATES’ SENTENCING MEMORANDUM

The United States of America respectfully recommends the Court impose a total sentence of 120 months in custody, to be followed by three years of supervised release, structured as follows: 120 months (the statutory maximum) for the false lien counts; six months for the harboring count; and 60 months for the felon in possession count, all to run concurrently.

Overwhelming evidence during the trial shows that Defendant is a determined, persistent offender who will never stop retaliating against government officials for the exercise of their duly appointed duties. Defendant has no remorse for any of his actions, and fully intends to continue to pursue the same course of conduct – this is clear from the defense he presented at trial, and in his filings since trial.

Equally important, Defendant illegally possessed a small arsenal of dangerous firearms, including a “street sweeper” style shotgun and an assault rifle, together with badges and other police-style equipment. During trial, the Defendant repeatedly made thinly veiled threats to engage in violence if he was punished for his actions in filing the liens. Given his anti-government views, Defendant’s possession of firearms is troubling.

In short, the most important of the factors under 18 U.S.C. § 3553(a) appears to be the need to protect the public from future crimes of the Defendant, and the government recommends that the Court sentence Defendant accordingly.

I have uploaded the complete document onto the Files website.

Kenneth Wayne Leaming Makes “Special Offer” To Reduce What Feds “Owe” Him

Previously, I posted an “Invoice” from Kenneth Wayne Leaming claiming that the Sea-Tac Detention facility owed him 208,000 ounces of 99.9% pure Silver for “operating a slavery system, unlawful detention, unlawful restraint, enforcing judgement of a ‘court’, and enforcing an instrument of foreclosed entity”.  Leaming defined his terms as “Net 15 days”.

He then filed this next document as ‘Changes to terms and Conditions’, and is asking for more Silver.

Clipboard45

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Yes, you read that correctly; Leaming has made a “Special Offer”, he will take only 300 ounces of Silver if they restore his “liberty and property” by tomorrow, May 15th. Kind of defeats the purpose of filing all these other meaningless meanderings he is famous for filing.  But then, that is what makes him “Keny Wayne, of the family Leaming”.

Kenneth Wayne Leaming Continues to File Documents in Felony Criminal Case

The case docket for the recent Criminal case against Kenneth Wayne Leaming shows us a few new additions, most of which are not worthy of discussion. Below is part of an ORDER issued relative to an Appeal of Judge Leighton not recusing himself from the case, despite repeated attempts from Leaming.

This ORDER comes from Marsha J. Pechman, United States Chief District Judge:

Before this Court is Defendant Leaming’s motion for recusal (Dkt. No. 199) and Judge Leighton’s order declining to recuse himself. Dkt. No. 202. The motion has been transferred to this Court for review in accordance with Local Rule GR 8(c).
Upon consideration of the motion and all relevant documents in this matter, the Court affirms Judge Leighton and DENIES the motion to recuse.

The second ORDER from Judge Leighton is short and to the point:

Mr. Leaming’s recently-filed motions are frivolous and are DENIED.

I have added these two documents to the Files website.