"Welcome In" to American Express' Newest Brand Campaign Entitled, "The Membership Effect"

Note to visitors: We have moved!  For current news and information, please visit our successor blogs: http://JBK-BizTech.blogspot.com and http://JBK-Current-Events.blogspot.com.  Thank you."Welcome In" to American Express' Newest Brand Campaign Entitled, "The Membership Effect"Television Spots Featuring Actor/Comedian Aziz Ansari, Restaurateur Thomas Keller and Small Business Saturday Highlight Unique Benefits and Value American Express Provides Consumers and Merchants

Broadcast and Cable Presence for Ads Across Two Dozen Networks

NEW YORK,  March 28, 2012 -- 

American Express announced the launch of its latest television and digital brand campaign entitled, "The Membership Effect," which chronicles the power of the unique benefits and innovations available to the millions of American Express Cardmembers and merchant partners connecting globally every day.

The campaign is the centerpiece of a broader effort that American Express is taking to educate its customers about the potential that American Express offers to connect people to possibilities through the power of its network, or "The Membership Effect." The American Express network connects millions of consumers, merchants and businesses around the globe in a payments and commerce ecosystem that creates value for all its participants. American Express is built on relationships, insights gleaned from data, and the ability to use these assets to enhance lives and build business success for its customers.

The campaign aims to showcase how American Express delivers benefits, rewards, savings and experiences for customers and services and relationships that help its merchant partners succeed through television spots featuring actor/comedian Aziz Ansari, chef/restaurateur Thomas Keller and the Company's Small Business Saturday initiative.

The campaign also introduces a new tagline for American Express, "Welcome In," to highlight that membership in a networked world is inclusive, ambitious and emphasizes the advantages that come from belonging to the American Express community, called out as "the power of all of us."

The campaign kicked off on March 15 and has aired during primetime lineups on CBS, NBC and Fox and will include such network hits as American Idol, Glee, CSI, Big Bang Theory, Saturday Night Live, Touch, Smash and The Voice. Thirty-second and sixty-second versions of the Keller and Small Business Saturday executions will air across more than two dozen broadcast and cable networks including AMC, ESPN, TBS and Comedy Central throughout the spring. The digital campaign includes a heavy presence across Facebook, Twitter and Apple's iAd mobile platform.

Two new executions featuring Ansari begin airing today.

"Through the unique American Express ecosystem of buyers and sellers, we have the ability to offer our Cardmembers and merchant partners additional value and service. Nowhere is that more evident than with our collaborations with Facebook, foursquare and, most recently, Twitter -- which allow us to connect and facilitate both experiences and commerce between Cardmembers and merchants," said John Hayes, Chief Marketing Officer, American Express. "The Membership Effect captures that idea, of how American Express is creating powerful connections and shared value between the members of the American Express community of consumers, merchants and small business owners."

Several American Express programs that capitalize on the power and potential of "The Membership Effect" are highlighted in the advertising campaign, including:

Creating Rich Experiences for Cardmembers
American Express partnered with Aziz Ansari to develop three humorous spots showing how he is able to take advantage of exclusive offers for American Express Cardmembers by "syncing" his Card to Facebook, Twitter and foursquare. A :60 spot takes Ansari on a journey with the help of his American Express Card following his quest to win the heart of a young woman, and two :30 versions show Ansari feeding his love of kayaking and the tuba. The ads illustrate how American Express uses social media platforms to add value to Cardmembers by allowing seamless redemption of merchant offers without the need for coupons or special codes.

Delivering Value to Businesses
The spots featuring Thomas Keller share how "The Membership Effect" benefits him as a small business owner and American Express merchant partner. Throughout the spot, Keller shares how American Express harnesses the power of its network of buyers and sellers to grow his business and provides insights and tools that help him expand his customer base and support the local economy in Yountville, California, home to his first restaurant The French Laundry, and beyond.

Consumers and Communities Connecting to Support Small Business
American Express' successful Small Business Saturday initiative – which drives millions of consumers to small businesses around the country – is profiled in multiple television spots to highlight the role that American Express, consumers and merchants play to support an important economic engine: small business.

For more information on "The Membership Effect," visit americanexpress.com/me. All of the spots can be viewed online at youtube.com/americanexpress.

About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress,twitter.com/americanexpress and youtube.com/americanexpress.

Press Release : March 26, 2012

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HP Helps U.S. Storage Partners Expand Revenue Opportunities, Profitability with "100 Percent" Channel Initiatives

Topics:Technology and Innovation

PALO ALTO, Calif. -- HP today announced two new sales initiatives that stimulate growth and expand revenue opportunities for U.S. channel partners. The new initiatives include:

• The 100 Percent New Accounts Initiativedrives incremental revenue and a new level of predictability for HP Storage partners by funneling all sales of HP Storage products to new U.S. accounts through channel partners.⁽¹⁾
• The 100 Percent LeftHand and StoreOnce Initiative accelerates growth for HP partners by funneling all high-profit HP LeftHand Storage and HP StoreOnce Backup orders generated by new storage accounts or repeat customers in the United States through an authorized HP Storage partner.⁽¹⁾

“The storage market continues to rapidly grow as businesses create and manage more and more information every day,” said Matt Troka, senior vice president of Product and Partner Management at CDW, an HP channel partner. “By pushing all new storage business to partners, HP has demonstrated its commitment to CDW’s success and, at the same time, is building additional trust and goodwill with the channel.”

Under the terms and conditions of the 100 Percent New Accounts Initiative, new registered sales opportunities of HP Storage products will be fulfilled by, and remain in, the channel. This includes high-growth HP Converged Storage products, HP 3PAR Storage, HP StoreOnce Backup, HP LeftHand Storage, HP IBRIX Storage, HP X5000 Storage and the rest of the HP Storage portfolio.

The 100 Percent LeftHand and StoreOnce Initiative includes commercial emerging-growth accounts, as well as state, local and education deals.

Both initiatives drive increased sales engagement for HP Storage partners with the HP direct sales force. Whether a sales lead is identified by HP or a partner, HP will always funnel these new business and up-sell opportunities through U.S. channel partners.

More customers, more deals, more margin
The new channel partner initiatives complement the recently announced HP ServiceONE Partner Support for Storage program, which enables qualified partners to pursue new business opportunities by combining HP and partner-branded services to bolster portfolios.

With access to sales, deployment and maintenance opportunities, partners have the potential to compete for and win significant customer deals, as well as increase profit margins.

“With these new programs, HP is driving more storage sales opportunities and profitable growth potential to reseller partners than any other vendor,” said Chris Riley, vice president, Americas, Storage, HP. “HP is helping partners increase revenue with HP 3PAR, HP StoreOnce and HP LeftHand products by bringing them more opportunities than ever before.”

HP’s premier client event, HP Discover, takes place June 4-7 in Las Vegas.

About HPHP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

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(1) Any end-user account that HP has not sold storage to in the last three years. Deals registration is required to drive alignment. This strategic policy change becomes effective immediately for all new opportunities, whether identified by HP or by the channel partner. Implicit in this policy is the assurance that every registered Storage New Business Opportunity (NBO) is now guaranteed to stay in the channel. Outside of HP Global Accounts, opportunities where storage cannot be unbundled from the overall HP Solution, or select opportunities where HP is contractually obligated to fulfill direct, such as the public sector.

Microsoft Raids Tackle Online Crime

Excerpt from an article in

The New York Times

Monday, March 26, 2012

Microsoft Raids Tackle Online Crime

By NICK WINGFIELD and NICOLE PERLROTH

SEATTLE — Microsoft employees, accompanied by United States marshals, raided two nondescript office buildings in Pennsylvania and Illinois on Friday, aiming to disrupt one of the most pernicious forms of online crime today — botnets, or groups of computers that help harvest bank account passwords and other personal information from millions of other computers.

With a warrant in hand from a federal judge authorizing the sweep, the Microsoft lawyers and technical personnel gathered evidence and deactivated Web servers ostensibly used by criminals in a scheme to infect computers and steal personal data. At the same time, Microsoft seized control of hundreds of Web addresses that it says were used as part of the same scheme.

The sweep was part of a civil suit brought by Microsoft in its increasingly aggressive campaign to take the lead in combating such crimes, rather than waiting for law enforcement agencies to act. The company’s targets were equipment used to control the botnets, which criminals, known as bot-herders, use for ill intent.

Microsoft has a big interest in making the Internet a safer place. Despite inroads made by Apple and others in some parts of the technology business, Microsoft’s Windows operating system still runs the vast majority of the computers connected to the Internet. The prevalence of its software has made Windows the most appealing target for online criminals, and the security holes they discover in the software are a persistent nuisance for Windows users.

Microsoft’s involvement in what had been considered largely a law enforcement function — fighting computer crime — is the brainchild of Richard Boscovich, a former federal prosecutor who is a senior lawyer in Microsoft’s digital crimes unit. That group watches over fraud that could affect the company’s products and reputation.

Armenian Power Member and Three Armenian Power Associates Convicted in Los Angeles for Roles in Identity Theft Ring 

U.S. Department of JusticeMarch 22, 2012

Office of Public Affairs(202) 514-2007/TDD (202) 514-1888

WASHINGTON—After a five week trial, four defendants have been convicted for their roles in one of the largest bank fraud and identity theft schemes in California history, with dozens of victims in four states and millions of dollars in losses.

The convictions were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Andre Birotte, Jr. of the Central District of California; Assistant Director in Charge of the FBI’s Los Angeles Field Office Steven Martinez; and Special Agent in Charge of the U.S. Secret Service (USSS) Joseph Beaty.

Arman Sharopetrosian, Karen Markosian, Artush Margaryan, and Kristine Ogandzhanyan were found guilty of conspiring to commit bank fraud, attempted bank fraud, and various counts of aggravated identity theft. Sharopetrosian, Markosian, and Ogandzhanyan waived a jury trial and consented to trial by the judge, and Margaryan proceeded with a jury trial.

Yesterday, U.S. District Judge David O. Carter found Ogandzhanyan, 28, of Burbank, California, guilty of one count of bank fraud conspiracy, two counts of attempted bank fraud, and four counts of aggravated identity theft. On March 16, 2012, the judge found Sharopetrosian, 33, of Burbank, guilty of one count of bank fraud conspiracy, four counts of bank fraud, and seven counts of aggravated identify theft. On March 16, 2012, the judge also found Markosian, 39, of Glendale, California, guilty of one count of bank fraud conspiracy, one count of attempted bank fraud, and two counts of aggravated identity theft. A jury convicted the fourth defendant, Artush Margaryan, 28, of Van Nuys, California, on March 16, 2012 of one count of bank fraud conspiracy, one count of attempted bank fraud, and three counts of aggravated identity theft.

Evidence was presented at trial that Sharopetrosian is a member of the Armenian Power organized crime group, and Margaryan, Markosian, and Ogandzhanyan are Armenian Power associates.

According to evidence presented at trial, Sharopetrosian directed the massive fraud scheme along with co-defendant Angus Brown while the two were incarcerated at Avenal State Prison. Using cellular telephones that were smuggled into the prison, Sharopetrosian and Brown worked from behind bars to coordinate with others, including Ogandzhanyn, Markosian, and Margaryan, to obtain confidential bank profile information and steal money from victim account holders. Often targeting high-value bank accounts, the defendants used account holders’ personal identifying information—including names, Social Security numbers, and dates of birth—to impersonate victims in phone calls to the bank. The defendants gathered account information, transferred funds between victims’ accounts, and placed unauthorized check orders for the accounts. They then stole the checks, obtained the victims’ signatures from public documents, and paid conspirators to cash the forged checks. Over the course of the six-year conspiracy, the defendants and their co-conspirators caused more than $10 million dollars in losses to victims in Southern California, Nevada, Arizona, and Texas.

“These defendants, including two individuals who were operating from a prison cell, perpetrated a massive fraudulent scheme on behalf of a dangerous criminal enterprise,” said Assistant Attorney General Breuer. “As members and associates of Armenian Power, they stole sensitive personal and financial information from innocent consumers and caused millions of dollars in losses. Whether organized criminal groups traffic in drugs, commit financial fraud or wreak other havoc to keep themselves going, they must be stopped. We are doing everything possible to shut down dangerous gangs like Armenian Power.”

“The safety and sanctity of confidential financial information is paramount in today’s society,” said U.S. Attorney Birotte. “Identity theft is a fundamental invasion of consumer privacy that cannot be tolerated. These convictions demonstrate that violators, whoever and wherever they may be, will be caught and will be prosecuted to the fullest extent of the federal law.”

“The defendants were convicted in a trial that uncovered a sophisticated and lengthy scheme that targeted victims in multiple states and included disturbing details, such as orders made from within prison walls and assistance from bank insiders enlisted by the defendants,” said FBI Assistant Director Martinez. “This case is also indicative of the growing trend of gang or organized crime-affiliated groups now engaging in identity theft and other financial crimes in furtherance of their enterprise.”

These defendants are four of 20 defendants who were charged with operating the bank fraud and identity theft scheme in one of a series of federal indictments unsealed on February 16, 2011. The indictments allege various federal crimes against members and associates of the Armenian Power criminal organization. To date, 19 of the 20 defendants charged in the bank fraud indictment have been convicted, including Brown. One defendant, Faye Bell, was arrested earlier this year and is still awaiting trial.

Sharopetrosian, Margaryan, Markosian, and Ogandzhanyan face maximum sentences of 30 years in federal prison for each count of bank fraud, 30 years for each count of conspiracy to commit bank fraud, and additional mandatory two year sentences for each count of aggravated identity theft.

Sentencing for all four defendants is scheduled for August 6, 2012 before Judge Carter.

The case is being prosecuted by Assistant U.S. Attorneys Martin Estrada and Joseph McNally of the Central District of California and Trial Attorney Cristina Moreno of the Organized Crime and Gang Section in the Justice Department’s Criminal Division. The case was investigated by the Eurasian Organized Crime Task Force, which includes the FBI, the USSS, the Los Angeles Police Department, the Glendale Police Department, the Burbank Police Department, the Internal Revenue Service, and the U.S. Immigration and Customs Enforcement.

Why Hackers Set Their Sights on Small Business

If you run a small business, and think that none of your data was of interest to a hacker, consider this: what if a hacker could take stolen bank account or credit card information from your computer and package it with the same information from a hundred or a thousand other small businesses? Would it be worth something then?

"SMBs don't know how defenseless they've become, especially to automated and industrialized attack methodologies by organized crime," Christopher Porter tells PCWorld. Porter, a principal with the Verizon RISK Team, is the author of a new report from Verizon on security risk.

"[Hackers] scan the Internet, looking for remote access services, and then try the default credentials. Once they gain access, they automatically install keyloggers to collect password information [as it's typed in]," Porter says. "Then they send the information it out via e-mail or by uploading it to an FTP server or a web site. They aggregate the data and sell it on the black market."

Hackers could use the keylogger to figure out how access and drain a small business' bank account, but more commonly, Porter said, they'll target point-of-sale systems, as four Romanians did recently. "That kind of attack is increasing, because they're low-risk and low-cost attacks for organized crime." Because they're geographically widespread, it's hard for any one police department to follow up.

For more, click the link below: 

http://www.pcworld.com/businesscenter/article/252302/why_hackers_set_their_sights_on_small_businesses.html#tk.nl_bdx_h_crawl

Pressure on Apple Builds Over App Store Fraud

Excerpt from an article in

The New York Times

Friday, March 16, 2012

Pressure on Apple Builds Over App Store Fraud

By EVELYN M. RUSLI and BRIAN X. CHEN

In a little over an hour, Ryan Matthew Pierson racked up $437.71 in iTunes charges for virtual currency that he could use to buy guns, nightclubs and cars in iMobster, a popular iPhone game. One problem: Mr. Pierson, a technology writer in Texas, has never played iMobster.

“This was fraud,” said Mr. Pierson, recalling the November incident. “I woke up, checked my e-mail, and I could see these purchases happening in real time.”

Mr. Pierson raised the issue with Apple and his bank, and the problem was eventually resolved. But his experience is hardly unique, as reflected by hundreds of online complaints saying that Apple’s iTunes Store, and in particular its App Store, which the company portrays as the safest of shopping environments, is not so secure.

The complaints come from consumers like Mr. Pierson, who say that their accounts have been hijacked or that some apps are falsely advertised. And they come from creators of apps, who say they are having to deal with fraudulent purchases that drain their time and resources. Software makers also complain that competition in the App Store has become so brutal that many companies resort to artificially inflating their popularity rankings to grab attention.

It’s a change for Apple, which was once criticized for its micromanaging of the App Store. Now the problem is not too much control, but too little.

“This kind of thing just happens any time a platform is successful,” said David Edery, chief executive of Spry Fox, a small software company that sells games in the App Store. “People start flooding into it and it starts to get crazy.”

The App Store offers more than 600,000 applications for iPhones, iPads and iPod Touches, and has already generated billions in revenue for Apple and its developers. That makes it both the best deal going for software makers and consumers, and also a hulking target for those looking to manipulate the system and cheat people.

Apple declined a request for an interview, but said in a statement that it was working to enhance security. It advised customers whose payment information had been stolen to change their iTunes passwords and to contact their financial institutions.

News Release from IBM - E*TRADE Korea

E*TRADE Korea Increases Online Trading Capacity and Speed of Customer Service with IBM Systems

IBM POWER7-based systems replace Oracle/Sun servers at growing financial securities firm

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SEOUL, South Korea - 09 Mar 2012: IBM (NYSE: IBM) today announced that E*TRADE Korea (KOSDAQ: 078020.KQ) has selected IBM's Smarter Computing approach to information technology to support its growth in the increasingly competitive and complex financial services market. With enhanced online services, E*TRADE Korea's 200,000 customers will be able to more quickly access up-to-date account information, stock quotes, community bulletin boards and online help features to better manage their financial portfolios. In addition, the new E*TRADE Korea online trading system based on IBM Power Systems will have the capacity to settle up to 970,000 transactions per hour in real-time – 16 percent faster than with the previous technology platform based on Oracle/Sun servers.

Korea currently has the world's second largest online trading market, with over 40 percent of trades conducted online, according to the Korea Securities Dealers Association (KSDA). E*TRADE Korea offers trading in Korea Stock Exchange (KSE) listed securities, as well as KOSDAQ equities, futures, options, beneficiary certificates and mutual funds. To better respond to fast-changing market conditions and customer demand for new services, E*TRADE Korea worked with IBM Business Partner LG CNS to replace its existing Oracle/Sun Solaris systems with IBM POWER7 processor-based systems to gain higher system utilization, availability and flexibility. By matching its IT workload to a system that's optimized for the task, E*TRADE Korea is increasing its IT services capacity while keeping costs low.

"Our goal is to secure a more advanced level of IT competitiveness than other companies by delivering better customer experiences," said Hoon Ki Jung, CIO and Managing Director for E*TRADE Korea. "With IBM Power Systems, E*TRADE Korea will be able to establish a stable and optimized IT environment that supports the company's future business growth, while increasing our current operational efficiency and cost effectiveness."

With the new technology infrastructure platform, E*TRADE Korea will be able to directly integrate its front-end business applications with back-end processes that are linked to the Korea Stock Exchange, resulting in higher transaction results per hour. In addition, E*TRADE Korea will be able to quickly analyze customer activities to draw insights for the company's up-selling and cross-selling marketing efforts. E*TRADE Korea will also be able to utilize the new platform for business application development, shortening the time it takes to deliver new products and services to customers in its core business areas.

"E*TRADE Korea required a secure and robust IT platform to support its enhanced financial products and services, and chose IBM Power Systems for its unparalleled performance and stability," said Kyunghoon Cho, Vice President, IBM Korea. "Like E*TRADE Korea, a number of securities companies in Korea are turning to a Smarter Computing model from IBM to improve customer service and support their rapid business growth in this fast moving market."

News Release from Wells Fargo - HSAs

News Release

Health Saving Accounts on the Rise; Wells Fargo Health Benefit Services Posts Record Results in 2011
Average balances increased in 2011 as more companies utilize HSAs for their employees

SAN FRANCISCO — March 7, 2012

Wells Fargo & Company (NYSE: WFC) today announced record growth of more than 100,000 new health savings accounts (HSAs) in 2011, representing 38 percent year-over-year growth. The company also reported a 22 percent increase in assets under the HSA program, which is offered through its Health Benefit Services group.

“We continue to see an increase in adoption as more of our customers take advantage of the long-term tax and retirement benefits of HSAs,” said Elizabeth Ryan, head of Wells Fargo Health Benefit Services. “Wells Fargo is committed to educating our customers – including corporate, small business and individual clients – on how HSAs can help people prepare for retirement and make smarter health care-spending decisions.”

Today, more than 320,000 individuals and 10,000 companies nationwide use Wells Fargo HSAs. In 2011, Wells Fargo business clients with HSA programs contributed more than 27 percent of total HSA contributions to their employees’ accounts, helping those businesses save an estimated $10 million in payroll taxes. As the average account balance increased by 10 percent to more than $2,500 (for accounts with a balance), account holders also saved an estimated $90 million in taxes last year. With more account holders taking advantage of the opportunity to invest in mutual funds through their Wells Fargo HSAs, total investment balances increased by 27 percent since last year.

Account-based health plans have surpassed $12.4 billion in assets in more than 8.4 million accounts nationwide, according to the Employee Benefit Research Institute (2012). More than 20 percent of employers offering health benefits now have this plan option, according to Mercer’s annual National Survey of Employer-Sponsored Health Plans (2011).

Employee Theft

Former Cessna Employee Sentenced to 18 Months for Stealing Parts from Airplanes

U.S. Attorney’s Office March 05, 2012

District of Kansas (316) 269-6481

— filed under: Intellectual Property Theft, Press Release, White-Collar Crime

WICHITA, KS—A former Cessna employee has been sentenced to 18 months in federal prison for selling stolen aircraft parts on eBay, U.S. Attorney Barry Grissom said today. He also was ordered to pay $130,000 restitution.

Diego Alejandro Paz-Teran, 35, Wichita, Kansas, pleaded guilty to one count of interstate transportation of stolen property. In his plea, Paz-Teran admitted he stole aircraft parts from Cessna and sold them on eBay. According to court documents, the investigation began in November 2008 when an employee of a Rockwell Collins Company distributor saw a Collins AHC-3000 Attitude Reference Computer offered for sale on eBay for $9,000. Knowing that the part was valued at more than $45,000, he contacted the seller and asked for serial numbers. Cessna tracked the serial numbers to a part that was removed from an XLS Plus aircraft while it was being painted.

Investigators found other stolen aircraft parts being sold on the same eBay account and followed records on the account to Teran at his home in Wichita.

Grissom commended the U.S. Department of Transportation-Office of Inspector General, the Sedgwick County Sheriff’s Office, the Federal Bureau of Investigation, and Assistant U.S. Attorney Matt Treaster for their work on the case.

News Release from the FBI, Charlotte Division

Four Hedge Fund Managers Indicted in $40 Million Ponzi Scheme 
Defendants Join Seven Others and CommunityONE Bank Charged in Connection with the Scheme

U.S. Attorney’s OfficeFebruary 23, 2012

Western District of North Carolina(704) 344-6222

CHARLOTTE, NC—A federal grand jury sitting in Charlotte returned an indictment against Jonathan D. Davey, 47, of Newark, Ohio, Jeffrey M. Toft, 49, of Oviedo, Fla., Chad A. Sloat, 33, of Kansas City, Mo., and Michael J. Murphy, 51, of Deep Haven, Minn., on February 22, 2012, on four criminal charges relating to an investment fraud conspiracy, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.

Joining U.S. Attorney Tompkins in making today’s announcement are Chris Briese, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI).

According to the criminal indictment, the defendants operated “hedge funds” as part of a conspiracy that took in $40 million from victims for a Ponzi scheme operating under the name Black Diamond Capital Solutions (Black Diamond). The indictment alleges that the conspiracy lasted from about October 2007 through about April 2010. The indictment alleges that the defendants lied to get money from their victims by claiming, among other things, that they had done due diligence on Black Diamond and were operating legitimate hedge funds with significant safeguards, when in reality, neither claim was true. The indictment also alleges that, as Black Diamond began collapsing, the defendants and others created a new Ponzi scheme and with a separate Ponzi account that Davey administered. Thereafter, new victim money was deposited into the Ponzi account and used to make Ponzi payments to other victims and to fund the defendants’ lifestyles.

The indictment also charges Davey with tax evasion for claiming to the IRS on his 2008 tax return that $810,000 that Davey stole from victims was a “loan.” In reality, the indictment charges, Davey stole that $810,000, plus approximately $500,000 in 2009, from victims to build Davey’s personal mansion. Davey attempted to evade the taxes due and owing in 2008 by calling the money a “loan” from his investors to “Sovereign Grace, Inc.,” a Belizian corporation that Davey created as a diversion for his victims and the IRS.

The first charge against all four defendants, alleging conspiracy to commit securities fraud, carries a maximum sentence of five years’ imprisonment and a fine of up to $250,000. The second charge against all four defendants, alleging conspiracy to commit wire fraud, carries a maximum sentence of 20 years’ imprisonment and a fine of up to $250,000. The third charge against all four defendants, alleging a money laundering conspiracy, carries a maximum sentence of 20 years’ imprisonment and a fine of $250,000 or twice the amount of criminally derived proceeds. The final charge against Davey only, alleging tax evasion, carries a maximum sentence of five years’ imprisonment and a fine of up to $250,000.

The defendants will be making their initial appearances in U.S. District Court in the coming weeks.

This indictment follows a series of convictions and other charges in this matter. On December 16, 2010, Keith Simmons was convicted following a jury trial of securities fraud, wire fraud, and money laundering. Simmons is in custody awaiting sentencing.

On April 27, 2011, a criminal bill of information and a Deferred Prosecution Agreement were filed against CommunityONE Bank, N.A., for its failure to maintain an effective anti-money laundering program. As alleged in that bill of information, Simmons was a customer of CommunityONE, and used various accounts with the Bank in furtherance of the Ponzi scheme. However, as alleged in that bill of information, the Bank did not file any suspicious activity reports on Simmons, despite the hundreds of suspicious transactions that took place in his accounts.

Other defendants convicted in this case are set forth below. It should be noted that those defendants already sentenced had their sentences reduced by the Court to reflect their cooperation with the United States in its investigation and prosecution of others.

• Bryan Keith Coats, 51, of Clayton, N.C., pled guilty on October 24, 2011, to conspiracy to commit securities fraud and money laundering conspiracy. Coats is awaiting sentencing.
• Deanna Ray Salazar, 54, of Yucca Valley, Calif., pled guilty on December 7, 2010, to conspiracy to commit securities fraud and tax evasion. Salazar is awaiting sentencing.
• Jeffrey M. Muyres, 36, of Matthews, N.C., pled guilty on May 17, 2011, to conspiracy to commit securities fraud and money laundering conspiracy. Muyres was sentenced to 23 months’ imprisonment by Chief Judge Robert Conrad, Jr., on January 18, 2012.
• Roy E. Scarboro, 47, of Archdale, N.C., pled guilty on December 3, 2010, to securities fraud, money laundering, and making false statements to the FBI. Scarboro was sentenced to 26 months’ imprisonment by Chief Judge Robert Conrad, Jr., on May 4, 2011.
• James D. Jordan, 49, of El Paso, Texas, pled guilty on September 14, 2010, to conspiracy to commit securities fraud. Jordan was sentenced to 18 months’ imprisonment by Chief Judge Robert Conrad, Jr., on June 29, 2011.
• Stephen D. Lacy, 52, of Pawleys Island, S.C., pled guilty on December 9, 2010, to conspiracy to commit securities fraud. Lacy was sentenced to six months’ imprisonment by Chief Judge Robert Conrad, Jr., on May 4, 2011.

The details contained in this indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The conviction or guilty plea of any other person is not evidence of the guilt of any of the defendants.

This matter is being prosecuted by Assistant United States Attorneys Kurt W. Meyers and Mark T. Odulio of the Western District of North Carolina, and the case against Jeffrey Muyres was prosecuted by Assistant United States Attorney Mark T. Odulio. The investigation is being handled by the FBI and the IRS.