CASE NO. 99-78-CR-T-2SF

UNITED STATES OF AMERICA :

v.

GERALD PAYNE,

BETTY PAYNE,

PATRICK TALBERT,

HAYWOOD EUDON HALL,

a/k/a DON HALL,

DAVID WHITFIELD,

ANDREW J. KRISHAK, and

JAMES R. CHAMBERS

The grand jury charges:

At times material to this Indictment:

1. Greater Ministries International, Inc. (hereinafter "GMI"), was a Florida corporation formed for the purported purpose of providing a vehicle for the operation of a Christian church. GMI operated out of a building located at 715 East Bird Street, Tampa, Florida.

2 The "Double Your Money Gift Exchange Program" (hereinafter "the fraudulent investment program") was an investment program which GMI, the defendants, and other conspirators operated and promoted. At various times, the fraudulent investment program was also named the "Double Your Blessing Gift Exchange Program", "Greater Trust Gift Exchange", and "Faith Promises Program." At various times, it purportedly was administered by entities such as Greater Trust; I John 4:4; Greater Ministries International, Inc. of Grand Cayman B.W.I.; and Ultimate Pension Fund (UPF) Trust. Despite the name changes, the terms of the investment program remained essentially the same.

3. Defendant, GERALD PAYNE, was the President and a director of GMI. His wife, defendant, BETTY PAYNE, served as secretary and as a director of GMI. 4 "Gas money" was the term used by the defendants for commissions paid to GMI directors and "elders" for bringing investors into the fraudulent investment program. Directors and "elders" received five percent of the money invested by any person they recruited into the fraudulent investment program.

5. Defendant, HAYWOOD EUDON HALL, a/k/a DON HALL, was a director of GMI.

6. Defendant, PATRICK TALBERT, was a director of GMI and an "overseer" of GMl's "law department."

7. Defendant, DAVID WHITFIELD, was Secretary and Financial Director of GMI. He also owned and operated Heritage Courier Service.

8. Defendant, ANDREW J. KRISHAK, was GMl's Director of Disbursement of Funds. He and his wife also operated Good Shepherd Courier Service. KRISHAK also claimed to be a representative of the Bank of Nauru, purportedly a foreign chartered bank affiliated with GMI.

9. Defendant, JAMES R. CHAMBERS, was a GMI director. As a consequence of his holding this position, he received more than $400,000 in "gas money" from GMI.

10. Beginning at least as early as March 1993, and continuing through January 1999, in the Middle District of Florida, and elsewhere,

did knowingly and willfully combine, conspire, confederate, and agree with one another, and with others both known and unknown to the grand jury, to commit the following offenses against the United States:

(A) to knowingly and willfully devise and attempt to devise a scheme and artifice to defraud and for obtaining money and property by means of false and fraudulent pretenses, representations, and promises and to cause items to be delivered by the United States mails according to the directions thereon for the purpose of executing said scheme and artifice, in violation of Title 18, United States Code, Section 1341;

(B) to knowingly and willfully devise and attempt to devise a scheme and artifice to defraud and for obtaining money and property by means of false and fraudulent pretense, representations, and promises and to transmit and cause to be transmitted in interstate and foreign commerce, writings, signs, signals, and sounds for the purpose of executing said scheme and artifice, in violation of Title 18, United States Code, Section 1343; and

(C) to knowingly transport, transmit, and transfer in interstate and foreign commerce goods, securities, and money having a value in excess of $5,000, knowing the same to have been stolen, converted, and taken by fraud, in violation of Title 18, United States Code, Section 2314.

The manner and means utilized to accomplish the objects of the conspiracy included, among others, the following:

11. It was a part of the conspiracy that the defendants, and others, would and did solicit victim investors to place money into the fraudulent investment program.

12. It was further a part of the conspiracy that the defendants, and others, would and did represent and promise that fully twice the amount of money placed into the fraudulent investment program would be resumed to victim investors in incremental payments within a 17 month period, according to a fixed schedule.

13. It was further a part of the conspiracy that in order to create the illusion that the fraudulent investment program was a solvent, profit generating enterprise earning sufficient retums to repay the victim investors within the specified times, the defendants, and others, would and did make periodic payments to victim investors which were purportedly retums on said victim's investments, but which were, in fact, payments made with funds obtained from later investors.

14. It was further a part of the conspiracy that the defendants, and others, would and did fail to disclose to the victim investors that five percent of their investment would be used to pay a commission to GMI directors or other conspirators.

15. It was further a part of the conspiracy that the defendants, and others, would and did fraudulently represent to the victim investors that their money would be used to conduct offshore trades of precious metals and foreign currency, on which the investment program would realize profits as high as forty percent.

16. It was further a part of the conspiracy that the defendants, and others, would and did make false statements to the victim investors in which the defendant and others fraudulently inflated the amounts of money previously paid into and repaid by the fraudulent investment program.

17. It was further a part of the conspiracy that the defendants and others would and did make false and fraudulent statements to the victim investors concerning the nature and amount of income producing assets owned or controlled by the fraudulent investment program, GMI, and its affiliated entities and the commercial activities by which the fraudulent investment program generated profits.

18. It was further a part of the conspiracy that the defendants, and others, would and did falsely and fraudulently represent to the victim investors that substantial amounts of the profits realized by the fraudulent investment program were used to finance charitable and religious programs operated by GMI and its affiliated entities.

19. It was further a part of the conspiracy that the defendants, and others, would and did invest only a small percentage of funds they received from victim investors.

20. It was further a part of the conspiracy that the defendants, and others, would and did attempt to mislead, and evade the jurisdiction of, state regulatory agencies by fraudulently characterizing each payment into the fraudulent investment program as a charitable contribution or gift to the church.

21. It was further a part of the conspiracy that the defendants, and others, would and did deal extensively in United States currency in order to avoid creating a paper trail and to conceal the fact that large amounts of victim investors' money was not being invested.

22. It was further a part of the conspiracy that the defendants, and others, in order to execute their scheme, would and did cause victim investors to use the United States mails to transmit funds to the fraudulent investment program and would and did transmit money, account statements, and promotional literature to victim investors through the United States mails.

23. It was further a part of the conspiracy that the defendants, and others, in order to promote their fraudulent scheme, would and did withdraw large amounts of investor funds, in United States currency, which they used to make periodic payments to earlier investors and to pay commissions to the directors and other conspirators.

24. It was further a part of the conspiracy that the defendants, and others, would and did withdraw investor funds from the fraudulent inYestment program's bank accounts in amounts greater than $10,000.

25. It was further a part of the conspiracy that the defendants, and others, would and did conduct their activities in a manner calculated to conceal and cover-up the fraudulent nature of the fraudulent investment program and to mislead and deceive victim investors, state regulatory authorities, and state and federal law enforcement agents.

26. In furtherance of the conspiracy and to effect the objects thereof, the conspirators caused the following overt acts, among others, to be committed within the Middle District of Florida, and elsewhere:

(1) On or about November 18, 1994, defendant, BETTY PAYNE, cashed a check in the amount of $9,000 at Glendale Federal Bank.

(2) In or about December 1994, defendant, GERALD PAYNE, helped author and caused to be mailed copies of the "Greater Share News" for the month of December 1994 which described the terms of the fraudulent investment program.

(3) On or about December 19, 1994, defendant, GERALD PAYNE, cashed two checks, each in the amount of $9,000, at Glendale Federal Bank.

(4) On or about December 20, 1994, defendant, GERALD PAYNE, cashed two checks, each in the amount of $9,000, at Glendale Federal Bank. (5) On or about December 21, 1994, defendant, GERALD PAYNE, cashed one check in the amount of $9,000 at Glendale Federal Bank.

(6) On or about April 26, 1995, defendant, BETTY PAYNE, cashed a check in the amount of $100,000 at First Union Bank.

(7) In or about September 1995, defendant, JAMES R CHAMBERS, met with Howard Brinkerhoff and solicited his participation in the fraudulent investment program.

(8) In or about early 1996, Randy Hester, an employee of GMI, delivered to the Tampa Airport post office branch envelopes stuffed with cash payments bound for Greater Ministries victim investors.

(9) In or about 1996, defendant, DAVID WHITFIELD, received $400,000 in cash from Best Bank and transported it from Colorado to Florida.

(10) In or about March 1996, defendant, JAMES R CHAMBERS, received "gas money" in an amount in excess of $26,000.

(11) In or about May 1996, defendant, GERALD PAYNE, caused the distribution and mailing of the "Greater Share News" issue of May 1996.

(12) In or about June 1996, defendant, JAMES R. CHAMBERS, delivered a cash payment to victim investor Brad Groves.

(13) In or about June 1996, defendant, GERALD PAYNE, caused the mailing of literature promoting the "Greater Trust Gift Exchange".

(14) On or about August 12, 1996, defendant, JAMES R. CHAMBERS, made false and misleading statements to federal agents and denied that he had received from GMI any amount of "gas money" based upon a percentage of the funds which victim investors entered into the fraudulent investment program.

(15) On or about October 18, 1996, defendant, GERALD PAYNE, caused the transmission by wire of funds from Hamilton Bank, a financial institution located in the State of Florida, to Best Bank, a financial institution located in the State of Colorado.

(16) On or about April 25, 1997, defendants, GERALD PAYNE, BETTY PAYNE, ANDREW~I. KRISHAK, HAYWOOD EUDON HALL, a/k/a DON HALL, and PATRICK TALBERT, attended and participated in a fund raising meeting in Pennsylvania on behalf of the fraudulent investment program.

(17) On or about April 25, 1997, conspirators handed out an instruction sheet detailing ~Questions for Use If Stopped by Any Government Agent. to audience members at a promotional meeting in Pennsylvania.

(18) On or about June 6, 1997, defendants, GERALD PAYNE, HAYWOOD EUDON HALL, a/k/a DON HALL, and PATRICK TALBERT attended and participated in a fund raising meeting in Ohio on behalf of the fraudulent investment program.

(19) In or about November 1998, defendant, GERALD PAYNE, authorized the purging of GMI records relating to the fraudulent investment program.

(20) On or about December 14, 1998, defendant, DAVID WHITFIELD, wrote an open letter discussing changes in the fraudulent investment program's procedures and caused that letter to be distributed to victim investors.

All in violation of Title 18, United States Code, Section 371.

1. The grand jury realleges and incorporates by this reference paragraphs 1 through 9 of Count One of this Indictment in their entirety as though fully set forth herein.

2. Beginning at least as early as March 1993, and continuing through in or about January 1999, in the Middle District of Florida, and elsewhere,

defendants herein, did knowingly and willfully combine, conspire, confederate and agree with each other and with other persons both known and unknown to the grand jury, to:

(A) knowingly conduct and attempt to conduct a financial transaction involving the proceeds of a specified unlawful activity, that is, mail fraud, in violation of Title 18, United States Code, Sections 1341, with the intent to promote the carrying on of such specified unlawful activities and with knowledge that the property involved represents the proceeds of some form of unlawful activity, in violation of Title 18, United States Code, Section 1956(a)(1)(A)(i); and

(B) knowingly engage in and attempt to engage in monetary transactions, affecting interstate commerce, in criminally derived property of a value greater than $10,000, which was derived from specified unlawful activity, that is, mail fraud, in violation of Title 18, United States Code, Section 1341, in violation of Title 18, United States Code, Section 1957.

3. The substance of the conspiracy and its manner and means are described in Paragraphs 11 though 25 of Count One of this Indictment, the allegations of which are realleged and incorporated by this reference as though fully set forth herein.

All in violation of Title 18, United States Code, Section 1 956(h).

1. The grand jury realleges and incorporates by this reference paragraphs 1 through 9-of Count One of this Indictment in their entirety as though fully set forth herein.

2. Beginning as least as early as March 1993, and continuing through January 1999, in the Middle District of Florida, and elsewhere,

defendants herein, knowingly devised and intended to devise a scheme and artifice to defraud, and for obtaining money and property from, victim investors by means of false and fraudulent pretenses, representations and promises.

3. The substance of the scheme and artifice, and its manner and means are described in paragraphs 11 through 25 of Count One of this Indictment, the allegations of which are incorporated by this reference as though fully set forth herein.

4. On or about the dates set forth below, in the Middle District of Florida, and elsewhere, for the purpose of executing the aforementioned scheme and artifice, and attempting to do so, the defendants did knowingly cause to be delivered by United States mail, according to the directions thereon, envelopes bearing the addresses and containing the material set forth below:

Count	Date	Address	Material
THREE	3/16/96	Louis Phillips  17018 Crowley Road  Odessa, Florida	Newsletter, statement of account, U.S. currency
FOUR	10/15/96	Sheldon Campbell  7152 Indian Bow Lane  Sarasota, Florida	Newsletter, statement of account, U.S. currency
FIVE	3/15/97	Edit Thomas  5836 Fall River Drive  New Port Richey, Florida	Newsletter, statement of account, U.S. currency
SIX	11/13/97	Lynn Hampton  3125 Thorn Hill Road  Winter Haven, Florida	Copy of donation, statement of account.
SEVEN	5/14/98	Lynn Hampton  3122 Thorn Hill Road  Winter Haven, Florida	Statement of account, U.S. currency.

 
 

All in violation of Title 18, United States Code, Sections 1341 and 2.

On or about the dates set forth below, in the Middle District of Florida,

defendants herein, knowing that the property involved in the financial transactions set forth below represented the proceeds of some form of unlawful activity, knowingly and willfully conducted, attempted to conduct and caused to be conducted, financial transactions affecting interstate and foreign commerce, which financial transactions involved the proceeds of a specified unlawful activity, that is, mail fraud, in violation of Title 1 8, United States Code, Section 1341, with the intent to promote the carrying on of said specified unlawful activity:

Count	Date	Transaction
EIGHT	4/26/95	Cashing of a check in the amount of $100,000 drawn on First Union Bank account number 2090001418036.
NINE	5/18/95	Cashing of a check in the amount of $100,000 drawn on First Union Bank account number 2090001418036
TEN	5/23/95	Cashing of a check in the amount of $100,000 drawn on First Union Bank account number 2090001418036
ELEVEN	6/7/95	Cashing of a check in the amount of $50,000 drawn on First Union Bank account number 2090001418036
TWELVE	6/20/95	Cashing of a check in the amount of $100,000 drawn on First Union Bank account number 2090001418036

 

All in violation of Title 18, United States Code, Section 1956(a)(1)(A)(I).

On or about the dates listed below, in the Middle District of Florida,

defendants herein, did knowingly and willfully engage in and attempt to engage in the monetary transactions set forth below, which transactions affected interstate commerce, in criminally derived property of a value greater than $10,000, such property having been derived from a specified unlawful activity, that is, mail fraud, in violation of Title 18, United States Code, Section 1341:

Count	Date	Transaction
THIRTEEN	1/25/95	Cashing of a check in the amount of $100,000 drawn on Glendale Federal Bank account number 061006584003
FOURTEEN	5/3/95	Cashing of a check in the amount of $100,000 drawn on First Union Bank account number 2090001418036
FIFTEEN	5/31/95	Cashing of a check in the amount of $55,600 drawn on First Union Bank account number 2090001418036
SIXTEEN	6/27/95	Cashing of a check in the amount of $100,000 drawn on First Union Bank account number 2090001418036
SEVENTEEN	7/12/95	Cashing of a check in the amount of $100,000 drawn on First Union Bank account number 2090001418036

 

All in violation of Title 18, United States Code, Sections 1957 and 2.

Beginning on or about November 8,1994, and continuing through on or about November 10,1994, in the Middle District of Florida,

defendant herein, knowingly and willfully and for the purpose of evading the reporting requirements of Section 531 3(a) of Title 31, United States Code, and the regulations promulgated thereunder, structured and attempted to structure a financial transaction with one or more domestic financial institutions, that is, the withdrawal of approximately $54,000 in United States currency from Glendale Federal Bank.

All in violation of Title 31, United States Code, Section 5324(3).

Beginning on or about November 15, 1994, and continuing through on or about

November 18, 1994, in the Middle District of Florida,

defendant herein, knowingly and willfully and for the purpose of evading the reporting requirements of Section 531 3(a) of Title 31, United States Code, and the regulations promulgated thereunder, structured and attempted to structure a financial transaction with one or more domestic financial institutions, that is, the withdrawal of approximately $81,000 in United States currency from Glendale Federal Bank.

All in violation of Title 31, United States Code, Section 5324(3).

Beginning on or about December 16, 1994, and continuing through on or about

December 27, 1994, in the Middle District of Florida,

defendant herein, knowingly and willfully and for the purpose of evading the reporting requirements of Section 531 3(a) of Title 31, United States Code, and the regulations promulgated thereunder, structured and attempted to structure a financial transaction with one or more domestic financial institutions, that is, the withdrawal of approximately $99,000 in United States currency from Glendale Federal Bank.

All in violation of Title 31, United States Code, Section 5324(3).

1. The allegations contained in Count Two and Counts Eight through Twenty of this Indictment are realleged by this reference, and fully incorporated herein for the purpose of alleging forfeitures to the United States of America, pursuant to the provisions of Title 18, United States Code, Section 982.

2. As a result of the offenses contained in Count Two and Counts Eight through Twenty of this Indictment, defendants GERALD PAYNE, BETTY PAYNE, PATRICKTALBERT, HAYWOOD EUDON HALL, a/k/a DON HALL, DAVID WHITFIELD, JAMES R. CHAMBERS, and ANDREW J. KRISHAK, shall forfeit to the United States all property, real and personal, involved in the offenses stated above and all property traceable to such property, including but not limited to any and all interest defendants or any one of them have in the below described property, whether, legal, equitable or beneficial:

All real, personal, and intangible property constituting the premises, but not the business operation, known as: Executive Inn, Riverrnont, One Executive Blvd., c,' Owensboro, Kentucky 42301.

3. If any of the property described above is subject to forfeiture, as a result of any act or omission of the defendants:

a) Cannot be located upon the exercise of due diligence;

b) Has been transferred or sold to, or deposited with, a third party;

c) Has been placed beyond the jurisdiction of the court;

d) Has been substantially diminished in value; or

e) Has been commingled with other property which cannot be divided

without dimculty,

it is the intent of the United States pursuant to Title 18, United States Code, Section 982(b)(1), to seek forfeiture of any other property of said defendants up to the value of the above-forfeitable property.

All in violation of Title 18, United States Code, Sections 982, 1956 and 1957, and Title 31, United States Code, Section 5324(3).

A TRUE BILL.

FOREPERSON
 

CHARLES R. WILSON

United States Attorney
 

By:

Robert A. Mosakowski

Assistant United States Attorney

United States Attorney No. 051
 

By:

Jay L. Hofer

Assistant United States Attorney

Florida Bar No. 0910708
 

By:

Robert T. Monk

Assistant United States Attorney

United States Attorney No. 026

Chief, Economic Crime Section.