Friday, December 7, 2007

IOS INDICTMENT

IOS FRAUD - SUPERSEDING INDICTMENT

Dec. 5, 2007.. The U.S. Attorney's Office Eastern District of Wisconsin announced this superseding indictment in the International Outsourcing Services (IOS) of the principles and their respective roles in the $250,000,000 Coupon Fraud which spanned the United States, Mexico and around the globe.
The specifics of the indictment is attached to this report. It details the specific actions taken by the principles of IOS and their employees, consultants and outside co-conspirators in defrauding manufacturers, fanatical institutions in a scheme that is alleged to have been ongoing for several years. The premises of the scheme it is alleged by the indictment was to defraud manufacturers and banks out of at least a quarter of a billion dollars by falsification of financial records, accounting procedures, fraudulent coupon redemption, falsifying banking documents by taking loans against receivables, submitting false financial documents to guarantee the loans as collateral, alleged committing wire fraud by the submission of documents and transfer of funds, in addition a conspiracy to cover-up the alleged fraud by obtaining and demanding cooperation from employees in an effort to obstruct justice.
This indictment details the alleged schemes, the role of the participants, and the transactions that documented the fraud. The U,.S. Attorney for the Eastern Distinct of Wisconsin also is requesting forfeiture of bank accounts, property, automobiles of specific individuals named in the indictment. The allegations names the principles Thomas Balsiger, Lance Furr, Bruce Furr and others in the scheme. It does not indict International Outsourcing Services or is subsidiaries. It does name the RYIA Corporation of New Jersey as a co-conspirator and its principles under indictment in the original accusations.
What does this mean to the Coupon Industry? Will the continuing coupon fraud activity that has been proven to support world terrorism continue to flourish in the United States, or will the naming of the indictment of the individuals reduce the opportunity for terror cells to financially benefit from coupon fraud, with little detection or further interest from the law enforcement establishment. Only time will tell!

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Monday, November 5, 2007

Supervalu, IOS, Coupon Fraud, Money Laundering

SUPERVALU – WHAT’S THE STORY ?



In the continuing saga of IOS now comes allegations that Supervalu, a shareholder and business partner of IOS are answering questions to the U.S. Attorney’s Office as to a two transactions that generated more than $10 million in payments to sep;erate companies one identified as “Society Nights Productions, Inc,” of Silver Springs Florida.

Documents filed in the United States District Court of Idaho in an action to “forfeit and condemn” to the use and benefits of the United States of America for the sum of $7,038,941.92 with deposits beginning on 2/23/07 into Banks Accounts at HSBC Bank, US, Miami, Florida. The U.S. Attorney is seeking forfeiture for violation of 18 U.S.C. // 1341, 1956 & 1957. An additional filing seeking more than 3 million dollars is also instituted. Thus, more than $10 million in financial assets is in question and froze during legal proceedings.

The basis for the forfeiture is that the defendants property alleged conspiracy involved these specific transactions or attempted transactions in violation of section 1956 and/or 1957 (money laundering) or property traceable to such property

$6 million plus was wired into an account at HSBC Bank located in Miami Florida in the name of “Society Nights Productions, Inc, doing business as “Perini”. The money came from the Albertson/Supervalu account. In addition another $507,929.66 was wired from the account from another victim under the name “ROHM”, with additional alleged fraudulent funds which may have been deposited into said accounts and also including funds wired back into said accounts from foreign bank to which they were wired. The account holder has stated that these funds are from a source unknown to him.

In the verified answer by Supervalu Inc. to the court, Supervalu confirms the transfers, BUT denies knowledge or information as the allegations. Supervalu admits the truth in the allegation in Paragraph #2 of the Plaintiff’s Verified Complaint “in REM” to the extent that it is believed that the property identified originated from wire transfers that Supervalu was INDUCED into making under false pretenses. (“In REM” describes the jurisdiction the court may exercise over property. Jurisdiction “in rem” assumes the property or status is the primary object of the action, rather tan personal liabilities not necessarily associated with the property.) Supervalu denies the allegations in Paragraphs 3, 4 and 5 of the plaintiff’s complaint. Supervalu also denied paragraphs 6 and 7 of the verified Complaint.

Supervalu confirms that it contacted the FBI upon discovering that it had been induced under false pretenses into making wire transfers to an account not properly entitled to receive said funds.

The funds were transferred into an account owned and controlled by “Society Nights Productions, Inc.” of Silver Spring, Florida. The registered agent and named officer of this company is identified as William R. Carney lll, of Silver Springs, Fl. The company originated in 2005 is active and registered as doing business with the state of Florida under filing P05000141279.

So what’s going on here? Why the FBI? Where’s the money going too?

If you have the answer let us know!!!

Tell us what you think!!

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SUPERVALU - MONEY LAUNDERING QUESTIONS

SUPERVALU – WHAT’S THE STORY ?



In the continuing saga of IOS now comes allegations that Supervalu, a shareholder and business partner of IOS are answering questions to the U.S. Attorney’s Office as to a two transactions that generated more than $10 million in payments to a company identified as “Society Nights Productions, Inc,” of Silver Springs Florida.

Documents filed in the United States District Court of Idaho in an action to “forfeit and condemn” to the use and benefits of the United States of America for the sum of $7,038,941.92 with deposits beginning on 2/23/07 into Banks Accounts at HSBC Bank, US, Miami, Florida. The U.S. Attorney is seeking forfeiture for violation of 18 U.S.C. // 1341, 1956 & 1957. An additional filing seeking more than 3 million dollars is also instituted. Thus, more than $10 million in financial assets is in question and froze during legal proceedings.

The basis for the forfeiture is that the defendants property allegedly conspiracy involved these specific transactions or attempted transactions in violation of section 1956 and/or 1957 (money laundering) or property traceable to such property

$6 million plus was wired into an account at HSBC Bank located in Miami Florida in the name of “Society Nights Productions, Inc, doing business as “Perini”. The money came from the Albertson/Supervalu account. In addition another $507,929.66 was wired from the account from another victim under the name “ROHM”, with additional alleged fraudulent funds which may have been deposited into said accounts and also including funds wired back into said accounts from foreign bank to which they were wired. The account holder has stated that these funds are from a source unknown to him.

In the verified answer by Supervalu Inc. to the court, Supervalu confirms the transfers, BUT denies knowledge or information as the allegations. Supervalu admits the truth in the allegation in Paragraph #2 of the Plaintiff’s Verified Complaint “in REM” to the extent that it is believed that the property identified originated from wire transfers that Supervalu was INDUCED into making under false pretenses. (“In REM” describes the jurisdiction the court may exercise o0ver property. Jurisdiction “in rem” assumes the property or status is the primary object of the action, rather tan personal liabilities not necessarily associated with the property.) Supervalu denies the allegations in Paragraphs 3, 4 and 5 of the plaintiff’s complaint. Supervalu also denied paragraphs 6 and 7 of the verified Complaint.

Supervalu confirms that it contacted the FBI upon discovering that it had been induced under false pretenses into making wire transfers to an account not properly entitled to receive said funds.

The funds were transferred into an account owned and controlled by “Society Nights Productions, Inc.” of Silver Spring, Florida. The registered agent and named officer of this company is identified as William R. Carney lll, of Silver Springs, Fl. The company originated in 2005 is active and registered as doing business with the state of Florida under filing P05000141279.

So what’s going on here? Why the FBI? Where’s the money going too?

If you have the answer let us know!!!

Tell us what you think!!

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Monday, October 29, 2007

IOS UPDATE

INTERNATIONAL OUTSOURCING SERVICES
UPDATE


On October 24, 2007, U.S. Attorney Steven M. Biskupic, Eastern District of Wisconsin, in a letter, informed the Court that the United States planned to seek a superseding indictment in the United States vs. Balsiger et al, by the end of October. The U.S. attorney notified the court that they have delayed any decision for 45 days after discussions with the defense attorneys.

In earlier statements by the U.S. Attorney’s Office, they had indicated that additional indictments would be forthcoming. The allegations suggested may amount to obstruction of Justice by certain principles of the initial indictment and possible legal representatives. The U.S. Attorney had suggested that specific information, documents and statements were withheld from the U.S. Attorney’s office investigating the International Outsourcing Services and numerous defendants, both officer and outsiders of IOS.

According to the letter to U.S. Magistrate Patricia J. Gorence, the next status conference is not scheduled until April 2008, therefore “this postponement should not have any effect on case scheduling.”, U. S. Attorney Steven M. Biskupic.

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IOS UPDATE

INTERNATIONAL OUTSOURCING SERVICES
UPDATE


On October 24, 2007, U.S. Attorney Steven M. Biskupic, Eastern District of Wisconsin, in a letter, informed the Court that the United States planned to seek a superseding indictment in the United States vs. Balsiger et al, by the end of October. The U.S. attorney notified the court that they have delayed any decision for 45 days after discussions with the defense attorneys.

In earlier statements by the U.S. Attorney’s Office, they had indicated that additional indictments would be forthcoming. The allegations suggested may amount to obstruction of Justice by certain principles of the initial indictment and possible legal representatives. The U.S. Attorney had suggested that specific information, documents and statements were withheld from the U.S. Attorney’s office investigating the International Outsourcing Services and numerous defendants, both officer and outsiders of IOS.

According to the letter to U.S. Magistrate Patricia J. Gorence, the next status conference is not scheduled until April 2008, therefore “this postponement should not have any effect on case scheduling.”, U. S. Attorney Steven M. Biskupic.

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Wednesday, October 17, 2007

PRESIDENTIAL DEBATES , NATIONAL CRIME ISSUES

PRESIDENTIAL DEBATES;
WHAT ABOUT THE NATIONAL CRIME PROBLEM


Listening to the Republican & Democrat Presidential debates, I discovered that VERY LITTLE is discussed about the nation’s crime problem. The national crime problem is more than local thugs, muggings or domestic violence. The October 9, 2007, Republican Debate had very little opinion about our crime problem, only discussed policing Internet Predators. Not to say that Internet Predators are not a serious problem, however Crime in America has reached far beyond the computer networks.

DRUG WAR


Today, we are fighting a war against terrorism both abroad and within America, yet we are treating Al Qaeda as a criminal organization, when in fact they are a serious threat to the stability of America, American’s and American business. As we cleared out the Taliban in Afghanistan, we dramatically reduced the POPPY FIELDS, the crop that produces Morphine and street Heroin. While for years America had seen a dramatic drop in street Heroin, the drug trafficking from Afghanistan across the world is currently entering America at a rapid pace. We’ll be back in fighting heroin addiction through local law enforcement, drug treatment centers and the courts. Stopping its importation is best achieved by destruction of the Poppy fields. The Afghan farmers should be subsidized to stop growing the poppy fields as we've done in the past. America needs to concentrate on this problem before it’s again out of control on our streets.

I spent some years as a “Narc” in NYC during the 1960’s and 1970’s seeing young men and women, teenagers, adults and children killing themselves by injecting, overdosing and destroying their lives, and families lives is just a tragedy. What’s it take to remember those crime years when street heroin was the drug of choice, creating street crimes such as robberies, muggings, burglaries dramatically increased?

Heroin is not a drug of a specific culture; it crosses the boundary of white, black and Hispanics communities. It reaches not only into the urban and ghetto community, but crosses the boundary into the wealthy suburbs.

GANGS in AMERICA

Why hasn’t GANG activity issues been a concerns by Presidential candidates? This subject is more than a crime problem; it’s the stability of communities, safety of children, schools, and even inside our prisons. The MS-13 international criminal gang, local street gangs that control communities, like the 18th Street Gang of L.A., through the form of terrorizing neighborhoods, businesses and even the police is as serious as our economy. The lack of attention to the gang problem affects the level of community control, education, family unit and our children’s safety.
GUNS on OUR STREETS

Many of our Presidential candidates speak to the issue of constitutional rights, the availability of guns on our streets, made available to street thugs and gangs is not what the Constitutional “Right to Bear Arms” section was designed or written for. I have no problem with NRA gun ownership rights, but we need to look at the lack of gun control, the straw purchases and transportation of hand guns and ammunition that reach the streets, unregulated, and available to criminal networks.

Crime and enforcement needs a priority and public discussion from our Presidential candidates. Without this attention, the local community, states and police departments will be engaged in not fighting crime, but rather holding the line between civility and chaos.
TASKFORCE ENFORCEMENT vs. STATES RIGHTS

Another concern is the movement within the Federal law enforcement community to establish “TASKFORCES” of various law enforcement agencies to combat the local crime waves. By establishing these taskforces, our local police have become surrogates of the Federal Law Enforcement establishment. Therefore, federalizing our community police by deputizing the local police to work in Federal agencies creates a threat against the separation of State’s rights. Cross-over from local law enforcement to federal law enforcement may infringe on constitutional guarantees. This indicates that “National Policing” may threaten the division of state from federal authority. If the local police become more integrated with federal jurisdiction and authority, the separation of States rights may be infringed, therefore jeopardizing individual’s rights as a constitutional issue.

I’m a proponent of aggressive policing against organized gang activity, organized crime controls and street crime enforcement. Attacking these three crime problems will greatly reduce the threat of crime to the community. It has been proven that attacking the quality of life crimes, petty thefts, and street crimes, illegal congregation of groups greatly reduces the local crime rates.

Attacking the organized gangs, organized crime activities and street crimes by aggressive enforcement by local authorities will greatly reduce the level of crime in the local community, either by displacement or by incarceration and will aid in the break-up of the gang controls over the community. Some communities in Florida, California, Arizona, the Mid West and North East are just examples of communities inundated with organized street gangs that endanger the daily lives of our citizens.

Our Police should be taking back the community from street thugs, gangs and organized crime activity. The Presidential candidates should address these problems as a national crisis. If not addressed, our communities will continue to live in fear, be flooded with news reports of murder and robberies, and even those crazy car chases that endanger the community.

It’s time for the national crime problem to become the focus of the Presidential race, not just a passing thought.

TELL US WHAT YOU THINK!!!!

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Saturday, October 6, 2007

IOS / Balsiger et. al Civil Action

INTERNATIONAL OUTSOURCING SERVICES, THOMAS C. BALSIGER, BRUCE A FURR, STEVEN A FURR, LANCE A FURR, WILLIAM L.BABLER; OVIODIO H. ENRIQUEZ, DAVID J. HOWARD, JAMES C. CURRY and HOWARD R. MCKAY

DEFENDANTS

U.S. CIVIL ACTION – EASTERN DISTRICT of WISCONSIN

PLAINTIFFS:

BEIEDORF, INC., BRISTOL-MEYERS, SQUIBB COMPANY, COMMONWEALTH BRANDS INC., ENERGIZER BATTERY INC., GENERAL MILLS INC. GEORGIA PACIFIC CONSUMER PRODUCTS, LP, DIXIE CONSUMER PRODUCTS LLC, HORMEL FOODS CORPORATION, THE J.M SMUCKER COMPANY, JOHNSON & JOHNSON, KELLOGG COMPANY, KIMBERLY CLARK GLOBAL SALES INC., KRAFT FOOD GLOBAL INC., LAND O LAKES, INC., LORRILARD TOBACCO COMPANY, MCCORMICK & COMPANY, INC., NESTLE USA, INC., NESTLE PURINA PETCARE COMPANY, PEPSICO INC., THE PROCTOR & GAMBLE DISTRIBUTING LLC, S.C.JOHNSON & SONS, INC., CONOPCO, INC. D/B/A UNILEVER.

On October 4, 2007 the plaintiffs filed a 29 page Civil Complaint action against the defendants for violations of the Racketeer Influenced and Corrupt Organizations Act, 18 USC sec. 1961 et seq (RICO) as well as Common Law Fraud, Failure to Disclose and Unjust Enrichment.

The complaint details the Defendants scheme. It complains that IOS is the largest coupon clearinghouse for retailers. IOS and its predecessors have been in business since 1961.IOS has processed hundreds or millions of coupons annually and on behalf of major retailers.
The complaint further states that “although the defendants scheme was multi-faceted, at its most fundamental level it involved simple augmenting the substantial volumes of properly redeemed coupons that IOS received from certain of its major retailer clients with other coupons that IOS acquired and then fraudulently submitting the entire batch as if all of the coupons had been redeemed legitimately by consumers at the designated retailer.”

“Through this scheme the defendants induced manufacturers, including Plaintiffs to pay hundreds of millions of dollars pursuant to invoices that the defendants knew were fraudulent.”

The defendants were civil charged with;
Count 1 – Federal Racketeer Influenced and Corrupt Organizations Act, , Title 18 USC - 1962 (all Defendants)
Count ll – Federal Racketeer Influence And Corrupt Organizations Act – Title 18 –USC – 1962d (all defendants)
Count lll – Common Law Fraud ( Defendants IOS and Balsiger)
Count lV – Common Law Conspiracy to Defraud ( All Defendants)
Count V – Common Law Unjust Enrichment ( All Defendants)
Specific details of each act and the details of the scheme and various defendants’ roles and non-defendants role in this scheme can be found in our link to this site.

The IOS saga continues…

This is a Civil Action, while the Criminal Action is Pending…
All Defendants are presumed innocent. The claims and actions by the Plaintiffs is an effort to recover hundreds of millions (estimated at $150,000,000) in assets from the defendants.

Tell Us What You Think !!!

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