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!