Case 1:15-cr-00058-CMA Document 3 Filed 02/11/15 USDC Colorado Page 1 of 9

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLORADO
Criminal Case No. 15-cr-00058-CMA
UNITED STATES OF AMERICA,
Plaintiff,
v.
1.
2.

MICHAEL TODD OSBORN,

COREY EARL ENGELEN
Defendants.

______________________________________________________________________
INDICTMENT
18 U.S.C. 1343
18 U.S.C. 1957
18 U.S.C. 2(b)
______________________________________________________________________
The Grand Jury charges that:
Counts 1-8
(Wire Fraud)
1.

Beginning in or about October 2009 and continuing until about July 2,

2010, Defendant Michael Todd Osborn devised and intended to devise a scheme to
defraud investors and for obtaining money from them by means of materially false and
fraudulent pretenses, representations and promises, hereinafter referred to as the
scheme.
2.

It was part of the scheme that:

a) Defendant Osborn held himself out to investors and prospective

investors as an experienced trader of stocks and other securities and a veteran in the
equity/swing trading business. In some instances, he falsely represented and caused
others to falsely represent that he was a licensed broker.
1

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b) Defendant Osborn sold investors units in the CU Equity Swing

Fund I, LLC and the 10x Leveraged Oscillator Fund, through which he represented he
would conduct short-term trading.
c) Investors typically learned of the investment opportunity through a
friend or trusted associate. Defendant Osborn communicated with the investors both
directly and through intermediaries.
d) Defendant Osborn falsely represented that he had a prime trading
account through which he would be able to leverage the funds invested and thereby
reap greater profits than from unleveraged trading.
e) Defendant Osborn falsely represented that the investors funds
were or would be protected from fraud, larceny, and embezzlement by a fidelity bond
with Lloyds of London.
f) Defendant Osborn sent or had intermediaries send prospective
investors materials which represented that he would employ a particular trading strategy
and adhere to specific parameters, including stop-loss provisions.
g) Defendant Osborn sent or had intermediaries send prospective
investors blotters, which purported to show recent trades that he had made. The
blotters were designed to appear legitimate: they truthfully represented that certain
stocks had traded at certain prices on certain days, such that investors could verify via
the internet that the named stocks had traded at those prices on those days, and thus
be led to believe that the defendant had executed those trades. In fact, the defendant
had not made the trades.

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h) Defendant Osborn represented that the investors would be given a

password and 24/7 online access to their accounts, and that they would receive weekly,
bi-weekly, or monthly payouts. Instead of providing the investors the promised online
account access, the defendant sent them or had his intermediaries send them updates
about how their accounts had supposedly been affected by the trades.
i) Defendant Osborn caused his key intermediaries, one of whom was
also an investor, to receive a fraudulent Form 10-Q, which had purportedly been filed
with the Securities and Exchange Commission (hereinafter SEC). This document
made it appear that Commissum Universes, the company that supposedly held the CU
Equity Swing Fund, was registered with the SEC and had substantial assets and
revenue. Neither was true, and the form had never been filed with the SEC.
j) Defendant Osborn caused the investors to wire their funds to
accounts held in the name of Infinite One, LLC, which he represented to be the trading
accounts he would use for the trades. In fact, the accounts were not trading accounts,
and the defendant did no trading through them. They were merely checking accounts
held by an associate of the defendant in Colorado. Defendant Osborn and this
associate used the investors funds deposited to these accounts for their own personal
benefit and purposes other than trading.
k) Once the investors had wired his funds, Defendant Osborn
continued to provide them with blotters. These blotters and the messages the defendant
sent or caused to be sent with them falsely represented not only that the defendant had
conducted certain trades, but also that the investor had realized a substantial profit as a

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result. In fact, the defendant had not conducted the trades, and no profits had been
realized.
l) Instead of making any of the promised payouts, Defendant Osborn
only gave the investors excuses. These included blaming the banks failure to process
the funds or citing compliance issues, many of which purportedly arose because other
investors had failed to honor their subscriptions. To avoid making a payment, the
defendant sometimes represented that an investors payout had been rolled over,
such that the investors holdings had purportedly been increased as a result of receiving
additional units in the fund.
3.

On or about the date listed below for each count, Defendant Michael Todd

Osborn, did, for the purpose of executing the scheme described in Paragraphs 1 and 2
of this indictment, knowingly cause the following writings, signs, and signals described
for that count to be transmitted by means of wire communication in interstate commerce
to the State and District of Colorado, all in violation of United States Code, Section
1343:
Count

Date

Communication

4/8/10

Wire transfer of $25,000.00 from BET-J Capital, LLC to the

account of Infinite One, LLC at JP Morgan Chase Bank

4/14/10

Wire transfer of $100,000.00 from ST Ventures, LLC to the

account of Infinite One, LLC at JP Morgan Chase Bank

4/20/10

Wire transfer of $25,000.00 from BET-J Capital, LLC to the

account of Infinite One, LLC at JP Morgan Chase Bank

5/7/10

Wire transfer of $50,000.00 from the FASC Trust to the account

of Infinite One, LLC at JP Morgan Chase Bank

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5/18/10

Wire transfer of $25,000.00 from First Mountain Trust to the

account of Infinite One, LLC at JP Morgan Chase Bank

5/20/10

Wire transfer of $50,000.00 from ST Ventures, LLC to the

account of Infinite One, LLC at JP Morgan Chase Bank

6/1/10

Wire transfer of $100,000.00 from Tara Guthrie to the account of

Infinite One, LLC at JP Morgan Chase Bank

6/2/10

Wire transfer of $100,000.00 from Diamond Seminar

Management, Inc. to the account of Infinite One, LLC at JP
Morgan Chase Bank

COUNTS 9 11
(Willfully Causing Another to Engage in Monetary Transactions in Property
Derived from Specificed Unlawful Activity)

4.

On or about the date listed below for each count, Defendant Michael Todd

Osborn did willfully cause another person to engage and attempt to engage in a
monetary transaction in criminally derived property of a value greater than $10,000 as
described for that count, such property having been derived from a specified unlawful
activity, namely wire fraud, as defined in Title 18, United States Code, Section 1343, all
in violation of Title 18, United States Code, Section 1957 and Title 18, United States
Code, Section 2(b):
Count

Date

6/2/10

10

6/2/10

Transaction
The wire transfer of $50,000.00 from the account of Infinite One,
LLC at JP Morgan Chase Bank to the account of Law Offices of
David J. Harter at Bank of the West
The wire transfer of $44,915.76 from the account of Infinite One,
LLC at JP Morgan Chase Bank to the account of Dream Motor
5

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Cars at Pacific Western National Bank.

11

6/14/10

The wire transfer of $15,000.00 from the account of Infinite One,

LLC at JP Morgan Chase Bank to the account of Law Office of
Evan Ginsburg at Citibank West.

COUNTS 12-14
(Engaging in Monetary Transactions in Property Derived from Specified Unlawful
Activity)

5. On or about the date listed below for each count, Defendant Corey Earl Engelen
did knowingly engage and attempt to engage in a monetary transaction in criminally
derived property of a value greater than $10,000, as described for that count, such
property having been derived from specified unlawful activity, namely wire fraud, as
defined in Title 18, United States Code, Section 1343, all in violation of Title 18, United
States Code, Section 1957:
Count

Date

12

6/2/10

13

6/2/10

14

6/14/10

Transaction
The wire transfer of $50,000.00 from the
account of Infinite One, LLC at JP Morgan
Chase Bank to the account of Law Offices of
David J. Harter at Bank of the West
The wire transfer of $44,915.76 from the
account of Infinite One, LLC at JP Morgan
Chase Bank to the account of Dream Motor
Cars at Pacific Western National Bank
The wire transfer of $15,000.00 from the
account of Infinite One, LLC at JP Morgan
Chase Bank to the account of Law Office of
Evan Ginsburg at Citibank West.

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NOTICE OF FORFEITURE
6. The allegations contained in Counts 1 through 14 of this Indictment hereby are
re-alleged and incorporated by reference for the purpose of alleging forfeiture pursuant
to the provisions of Title 18, United States Code, Section 981(a)(1)(C), Title 18, United
States Code, Section 982(a)(1) and Title 28, United States Code, Section 2461(c).
7. Upon conviction of one or more of the violations alleged in Counts 1 through 8
of this indictment involving the commission of violations of Title 18, United States Code,
Sections 1343 and 2(b), the defendant Michael Todd Osborn shall forfeit to the United
States, pursuant to Title 18, United States Code, Section 981(a)(1)(C), and Title 28,
United States Code, Section 2461(c), any and all rights, title, and interest in all property
constituting and derived from any proceeds he obtained directly and indirectly as a
result of such offense or offenses or shall be liable for a money judgment in the amount
of the proceeds that he obtained as a result of the schemed charged in Counts 1
through 8 of this indictment.
8.

Upon conviction of one or more of the violations alleged in Counts 9

through 11 of this indictment involving the commission of violations of Title 18, United
States Code, Sections 1957 and 2(b), the defendant Michael Todd Osborn shall forfeit
to the United States, pursuant to Title 18, United States Code, Section 982(a)(1) any
and all of the defendants right, title and interest in all property, real or personal,
involved in such offense, or all property traceable to such property, including, but not
limited to a money judgment in the amount of the proceeds that he obtained as a result
of the schemed charged in Counts 1 through 8 of this indictment, or as a result in the
offenses charged in Counts 9-11 of this indictment.

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9. If any of the property described in Paragraph 7 and 8 above, as a result of any

act or omission of Michael Todd Osborn, cannot be located upon the exercise of due
diligence, has been transferred or sold to, or deposited with, a third party, has been
substantially diminished in value, or has been commingled with other property that
cannot be divided without difficulty, it is in the intent of the United States, pursuant to
Title 28, United States Code, Section 2461(c), incorporating Title 21, United States
Code, Section 853(p), to seek forfeiture of any other property of Michael Todd Osborn
up to the value of the forfeitable property described above in Paragraph 7 or 8.
10. Upon conviction of one or more of the violations alleged in Counts 12 through
14 of this indictment involving the commission of violations of Title 18, United States
Code, Section 1957, the defendant Corey Earl Engelen shall forfeit to the United States,
pursuant to Title 18, United States Code, Section 982(a)(1) any and all of the
defendants right, title and interest in all property, real or personal, involved in such
offense, or all property traceable to such property, including, but not limited to a money
judgment in the amount of the proceeds that he obtained as a result in the offenses
charged in Counts 12-14 of this indictment.
11. If any of the property described in Paragraph 10 above, as a result of any act
or omission of Corey Earl Engelen, cannot be located upon the exercise of due
diligence, has been transferred or sold to, or deposited with, a third party, has been
substantially diminished in value, or has been commingled with other property that
cannot be divided without difficulty, it is in the intent of the United States, pursuant to
Title 28, United States Code, Section 2461(c), incorporating Title 21, United States

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Code, Section 853(p), to seek forfeiture of any other property of Corey Earl Engelen up
to the value of the forfeitable property described above in Paragraph 10.

A TRUE BILL

Ink signature on file in Clerks Office

FOREPERSON

JOHN F. WALSH
UNITED STATES ATTORNEY

By: s/Linda Kaufman

Linda Kaufman
Assistant United States Attorney
1225 17th Street, Suite 700
Denver, Colorado 80202
Telephone: 303-454-0100
Facsimile: 303-454-0402
E-mail: linda.kaufman@usdoj.gov
Attorney for the United States

2/11/15

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DEFENDANT:

Michael Todd Osborn

YOB:

1970

ADDRESS:
COMPLAINT FILED?

YES

NO

IF YES, PROVIDE MAGISTRATE CASE NUMBER:

HAS DEFENDANT BEEN ARRESTED ON COMPLAINT?

YES

NO

OFFENSES: COUNTS 1-8: 18 U.S.C. 1343 (Wire Fraud)

COUNTS 9-11: 18 U.S.C. 1957 and 18 U.S.C. 2(b) (Willfully Causing
Another to Engage in Monetary Transactions in Specified Unlawful Activity)
Notice of Forfeiture
LOCATION OF OFFENSE: Adams County, Colorado
(COUNTY/CITY/STATE)
PENALTIES: COUNTS 1-8: NMT 20 years and/or NMT $250,000 fine for each count
COUNTS 9-11: NMT 10 years and/or $250,000 fine for each count
Notice of Forfeiture
AGENT:

Special Agent Patrick Hegarty, IRS

AUTHORIZED BY: Linda Kaufman

Assistant U.S. Attorney
ESTIMATED TIME OF TRIAL:
five days or less

over five days

other

THE GOVERNMENT

will seek detention in this case

will not seek detention in this case

The statutory presumption of detention is not applicable to this defendant.

OCDETF CASE:

Yes

No

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DEFENDANT:

Corey Earl Engelen

YOB:

1969

ADDRESS:

Colorado

COMPLAINT FILED?

YES

NO

IF YES, PROVIDE MAGISTRATE CASE NUMBER:

HAS DEFENDANT BEEN ARRESTED ON COMPLAINT?

YES

NO

OFFENSES: COUNTS 12-14: 18 U.S.C. 1957 (Engaging in Monetary Transactions in

Specified Unlawful Activity)
Notice of Forfeiture
LOCATION OF OFFENSE: Adams County, Colorado
(COUNTY/CITY/STATE)
PENALTIES: COUNTS 12-14: NMT 10 years and/or NMT $250,000 fine for each count
Notice of Forfeiture
AGENT:

Special Agent Patrick Hegarty, IRS

AUTHORIZED BY: Linda Kaufman

Assistant U.S. Attorney
ESTIMATED TIME OF TRIAL:
five days or less

over five days

other

THE GOVERNMENT
will seek detention in this case

will not seek detention in this case

The statutory presumption of detention is not applicable to this defendant.

OCDETF CASE:

Yes

No