secret service affidavit for seizure of bednar funds

8/9/2019 Secret Service Affidavit for Seizure of Bednar Funds

1/12

Declaration in Support

of

Application for Warrant

of

Arrest In Rem

I, Terry B. Tate, after being duly sworn, depose and state as follows:

1 I am a Special Agent with United States Secret Service and am currently

assigned to the Raleigh Resident Office. As part

of

my duties I analyze financial

transactions to detect possible structuring and money laundering activities. My duties

include the investigation

of

the proceeds

of

illegal activities, specifically money

laundering violations

of

18 U.S.C. §§ 1956 and 1957, as well as violations

of

31 U.S.C.

§§ 5324 and 5331.

2

This affidavit is made in support of an application for a warrant

of

arrest in rem for

all monies and things

of

value up to $359,557.25 contained in better business checking

account number 802070987 and business sweep account number 802121715 at Capital

Bank in the name

of

Marla Bednar d/b/a Marla Enterprises. Probable cause exists to

believe that such monies are subject to seizure and forfeiture to the United States

pursuant to 31 U.S.C.

§

5317(c)(2), on the ground that they constitute property involved

in, or traceable to, withdrawals structured to avoid currency reporting requirements, in

violation

of

31 U.S.C.

§

5324.

I

Currency Transaction Reports and Structuring

3. Title 31, United States Code, Section 5313 and 31 C. F. R. § 1010

of

the

Bank Secrecy Act (BSA) require any financial institution that engages with a customer in

a currency transaction (i.e., a deposit or withdrawal) in excess

of l0,000

to report the

transaction to the Internal Revenue Service on Form 4789, Currency Transaction Report

( CTR ). These regulations also require that multiple transactions be treated as a

.u..._ ...

Case 5:14-cv-00476-FL Document 1-1 Filed 08/22/14 Page 1 of 7


2/12

transaction

i

the financial institution has knowledge that they are by, or on behalf of, the

same person, and they result in either currency received or disbursed by the financial

institution totaling more than $10,000 during any one business day. CTR Forms require,

among other things, the identity

o

the individual who conducted the transaction and the

individual or organization for whom the transaction was completed.

4

CTRs are often used by law enforcement to uncover a wide variety o

illegal activities, including narcotics trafficking and money laundering. Many individuals

involved in these illegal activities are aware o such reporting requirements and take

active steps to cause financial institutions to fail to file CTRs. These active steps are

often referred to

as

smurfing or structuring and involve making multiple cash

deposits or withdrawals in amounts o $10,000 or less. Structuring

is

prohibited by Title

31, United States Code, Section 5324(a)(3) and not only involves the proceeds o illegal

activities but also legal source income. The law

is

clear that structuring in and o itself

is a felony violation.

5

In order to establish the crime o structuring transactions to evade reporting

requirements, the government must prove that, for the purposes

o

evading the reporting

requirements o section 5313(a) or any regulation prescribed under any such section, the

subject structured or assisted in structuring, or attempted to structure or assist in

structuring, any transaction with one or more domestic financial institutions in amounts

of$10,000 or less.

2



3/12

II. Marla Bednar and Thomas Bednar d/b/a Marla Enterprises have structured

246,230.00 in cash withdrawals

6.

On January 28, 2011, Marla Bednar d/b/a Marla Enterprises, 1420 Falls

River Ave., Raleigh, NC 27614, opened Capital Bank better business checking account

number 802070987. Marla Bednar and Thomas Bednar are listed on the bank signature

card as signers on the account. On Febraury 23, 2011, Marla Bednar d/b/a Marla

Enterprises, 1420 Falls River Ave., Raleigh, NC 27614, opened Capital Bank business

sweep account number 802121715. Marla Bednar and Thomas Bednar are listed on the

bank signature card as signers on the account.

7. I obtained and analyzed records maintained by Capital Bank regarding the

above mentioned accounts. From January

6

2014 through May 29, 2014, twenty-eight

(28) suspicious cash withdrawals were made from Capital Bank better business checking

account number 802070987. Twenty-three (25) withdrawals were made in amounts just

under the CTR filing threshold; the twenty-sixth is included only because it was made on

a consecutive day with a withdrawal in the amount

of

9,500.00; the twenty-seventh and

twenty-eighth are only included because there were two cash transactions in one day

totaling 7,950.00 The withdrawals are as follows:

Date mount

1 01106/14 9850.00

2. 02/24/14 9500.00

3. 02/28/14 9700.00

4.

03/03/14 9300.00

5. 03/05/14 8820.00

6.

03/11114 9950.00

7.

03/18/14 9870.00

Counter Withdrawal

Check

1264 (cash)

Check 1271

(cash)

Check

1276 (cash)

Check

1278 (cash)

Check

1286 (cash)

Check

1299 (cash)

3



4/12

8

03/25/14 $9740.00

9 03/27/14 $9500.00

10.04/01114 $9400.00

11.04/02/14 $9300.00

12.04/07/14 $9200.00

13.04/09/14 $8800.00

14.04/11114 $9600.00

15.04/15/14 $9850.00

16.04/16/14 $8700.00

17.04/18/14 $9800.00

18.04/29/14 $9600.00

19.05/02/14 $9700.00

20.05/09114 $9700.00

21. 05/15/14 $8500.00

22.05/19/14 $9800.00

23.05/21114 $8400.00

24.05/27/14 $8000.00

25.05/29/14 $9300.00

26.03/10/14 $4400.00

27.02/03/14 $4950.00

28.02/03/14 $3000.00

Check 1304 (cash)

Counter Withdrawal

Check 1314 (cash)

Counter Withdrawal

Check

13 15

(cash)

Counter Withdrawal

Check

1321

(cash)

Check 1326 (cash)

Check 1332 (cash)

Check 1336 (cash)

Check 1355 (cash)

Check 1360 (cash)

Check 1367 (cash)

Cash Out Ticket

Check 1384 (cash)

Check

1391

(cash)

Check 1398 (cash)

Check 1403 (cash)

Counter Withdrawal

Check 1243 (cash)

Check

1245

(cash)

TOTAL STRUCTURED $ 246,230.00

Balance after last structured w/d on 5/29/14 (802070987) $ 86,728.96

Balance after last structured w/d on 5/29/14 (802121715) $272,828.29

8

All

o

the cash withdrawals were conducted at the Falls

o

Neuse, NC

Branch by Mr. or Mrs. Bednar. The withdrawal activity outlined in paragraph 7 is

unusual in that on the days cited, cash was withdrawn from Capital Bank better business

account number 802070987 in amounts that were structured to remain below the CTR

reporting threshold o $10,000.00. The columns in paragraph 7 indicate the date the

withdrawal was made and the amount o each cash withdrawal from better business

account number 802070987.

It

should be noted that Capital Bank business sweep

account number 802121715 is used for the purpose o funding and/or acting as overdraft

protection for better business account number 802070987. During the time specified for



5/12

the structuring activity, all debits from business sweep account number 802121715 were

from transfers into better business account number 802070987 or for fees associated with

transactions made from better business account number 802070987. During the time

specified for the structuring activity, all credits into business sweep account number

802121715 were from transfers from better business account number 802070987. Thus,

the accounts are inter-related, with amounts moved back and forth between them.

9.

The North Carolina Secretary o State, Corporations Division, has no

record o Marla Enterprises or any corporations bearing Marla and/or Thomas Bednar

listed

as

registered agents.

10.

Based on my training and expenence, I know that an individual, or

individuals, who are engaged in structuring cash withdrawals out o an account will make

multiple cash withdrawals from the account within a short period o time. Additionally, I

know that when an individual, or individuals, make separate cash withdrawals out o an

account on the same day or consecutive days, in amounts o 10,000.00 or less, but

aggregating to more than 10,000.00, as indicated in paragraph 7 above, the account

holders are typically engaged in structuring.

11.

As a part o the investigation, I also analyzed the Bednar's banking history. I

obtained and analyzed records from First Citizens Bank. On August

11

2008 Marla

Bednar d/b/a Marla Enterprises, 1420 Falls River Ave., Raleigh, NC 27614, opened First

Citizens Business checking account number 861524703. Marla Bednar and Thomas

Bednar were listed on the bank signature card as signers on the account. From 8/19/10

through 10/12/10,

13

withdrawals were made from this account under the reportable

5



6/12

limits for a total o $101,900.00 in structured withdrawals. On or about 9/22/10 a CTR

Reference Guide was provided to Thomas Bednar as well as a copy ofFincen's Notice to

Customers. On or about 10/13/10, First Citizens Bank discontinued its banking

relationship with the Bednars due to the structuring activity.

12.

I obtained and analyzed records from Fifth Third Bank. On October 12 2010

Marla Bednar d/b/a Marla Enterprises,

1420

Falls River Ave., Raleigh,

NC

27614,

opened Fifth Third Bank Business checking account number 7471367057. Marla Bednar

and Thomas Bednar were listed on the bank signature card as signers on the account.

From

10112/10

through 12/01110 15 cash withdrawals were made from this account

under the reportable limits for a total o $109,390.00

in

structured withdrawals. On or

about 12/9/10, Fifth Third Bank discontinued its banking relationship with the Bednars

due to the structuring activity.

III. Applicable Forfeiture Principles

13.

I

am

advised that 31 U.S.C. § 5317(c)(2) provides: Any property involved

in a violation

o

section 5313, 5316,or 5324

o

this title, or any conspiracy to commit any

such violation, and any property traceable to any such violation or conspiracy, may be

seized and forfeited to the United States in accordance with the procedures governing

civil forfeitures in money laundering cases pursuant

to

section 981(a)(l)(A)

o

Title

18

United States Code.

14.

In this case,

as

shown by the Capital Bank records referenced in this

affidavit, $246,230.00 in cash was withdrawn from better business checking account

6



7/12

number 802070987 in the name of Marla Bednar d/b/a Marla Enterprises in structured

amounts of 10,000 or less between January 6, 2014 through May 29, 2014. The amounts

remaining in these linked accounts as

of

the last day

of

structuring activity, 86,728.96

and 272,828.29 (for a total of 359.557.25) is subject to forfeiture, in that these funds

facilitated the structuring.

III. Conclusion

16

I submit there is probable cause to believe that twenty-eight (28) cash

withdrawals from Capital Bank better business checking account number 802070987 of

Marla Debnar d/b/a Marla Enterprises in the total amount of 246,230.00 have been

stru·ctured to evade currency reporting requirements in violation of

31

U.S.C. § 5324, and

that all monies and things of value up to 359,557.25 in Capital Bank better business

checking account number 802070987 and business sweep account number 802121715 are

therefore subject to seizure and forfeiture pursuant to 31 U.S.C. § 5317(c)(2).

I declare under penalty ofperjury that the foregoing

is

true and correct.

Executed this 22nd day

of

August, 2014.

7

Terry B Tate

Special Agent

United States Secret Service



8/12

44 (Rev. 12/07)

CIVIL

COVER

SHEET

The JS

44 civil cover sheet and

the

information contained herein neither replace nor supplementthe filing and service

of

pleadings

or

other papers as required by

law,

except as pro

by local

rules

of

court.

This

form,

approved by

the

Judicial Conference

of he

United States

in

September 1974, is reqmred

for the use of

he Clerk

of

Court

for the purpose of

tmt

the civil docket sheet. (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM.)

I . (a) P L A I N T I F F S

UNITED STATES OF AMERICA,

(b)

County of Residence

of

First Listed Plaintiff

(EXCEPT IN U.S. PLAINTIFF CASES)

(C)

Attorney's

(Firm Name, Address, and Telephone Number)

Stephen A. West, Assistant

U S

Attorney, 310 New Bern Ave.,

Suite 800, Ralei h,NC 27601-1461. 919-856-4530

I I . B ASIS

O F J U R I S D I C T I O N

(Placean X inOneBoxOnly) I I I .

1: I U.S. Government

Plaintiff

a

2 U.S. Government

Defendant

a

II

0 Insurance

a 120 Marine

a

130 Miller Act

a 140 Negotiable lnstmment

a 50 Recovery of Overpayment

& Enfc>rcernentofJttdgntentl

a

51 Medicare Act

a

52 Recovery ofDefaulted

Student Loans

(Excl. Veterans)

a

53 Recovery of Overpayment

of

Veteran's Benefits

a

160 Stockholders' Suits

a

190 Other Contract

a 3 Federal Question

(U.S. Government Not a Party)

a

4 Diversity

(Indicate Citizenship

of

Parties in Item Jll)

PERSONAL INJURY

310 Airplane

315 Airplane Product

Liability

320 Assault, Libel &

Slander

330 Federal Employers'

Liability

340 Marine

345 Marine Product

Liability

350 Motor Vehicle

355 Motor Vehicle

PERSONAL INJURY

a

362 Personal Injury -

Med. Malpractice

a 365 Personal Injury -

Product Liability

a 368 Asbestos Personal

Injury Product

Liability

PERSONAL PROPERTY

a

370 Other Fraud

a 371 Truth in Lending

a

380 Other Personal

Property Damage

a 385 Property Damage

Product Liability

D E F E N D A N T S

FUNDS CONTAINED N THE BETTER BUSINESS

CHECKING ACCOUNT, ET AL.

County of

Residence

of

First Listed Defendant

; W ; ;;a;; k ; e

(IN U.S. PLAINTIFF CASES ONLY)

NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE

LAND INVOLVED.

Attorneys (If Known)

C I T I Z E N S H I P O F P R I N C I P A L

P

ARTIES(Place

an "X" in one Box for P

(For Diversity Cases Only) and One Box for Defendant)

PTF DEF PTF D

Citizen of This State a a Incorporated r Principal Place a a

ofBusiness n This State

Citizen of Another State

a

610 Agriculture

a 620 Other Food & Drug

a 625 Drug Related Seizure

of Property 21 USC 881

a

630 Liquor Laws

a 640 R.R. & Truck

a 650 Airline Regs.

a 660 Occupational

Safety/Health

l l

690 Other

a

710 Fair Labor Standards

Act

a 2 a 2 Incorporated nd Principal Place

of Business In Another State

a a

a 3 a 3 Foreign Nation

a 6 a

a 422 Appeal28 usc I 58

a 423 Withdrawal

28 usc 157

a

400 State Reapportionmen

a 410 Antitrust

a

430 Banks and Banking

a 450 Commerce

~ ~ ~ ~ ~ 1 \ 1 l l l l i l l l l l l · ~ 460 Deportation

a

820 Copyrights 470 Racketeer Influenced

a

830 Patent Corrupt Organization

a 840 Trademark a 480 Consumer Credit

a

490 Cable/Sat TV

a

810 Selective Service

· - - ~ ~ ~ ~ ~ · · · · a 850 Securities/Commodit

a 861 HIA ( 395ft ) Exchange

a

862 Black Lung (923)

a

875 Customer Challenge

a

863 DIWC/DIWW (405(g))

12

USC 3410

a 864 SSID Title XVI a 890 Other Statutory Actio

a 720 Labor/Mgmt. Relations

a

730 Labor/Mgmt.Reporting

& Disclosure Act

i ~ · ~ ~ ~ · · · · ~ ~ ~ i ~ a

740 Railway Labor Act

C

441 Voting 510MotionstoVacate

a

7900therLaborLitigation

a

865 891 Agricultural Acts

892 Economic Stabilizatio

893 Environmental Matte

894 Energy Allocation Ac

220 Foreclosure 442 Employment Sentence a

791

Empl. Ret. Inc.

a

230 Rent Lease & Ejectment 443 Housing Habe as Corp us: Security Act

a 240 Torts to Land Accommodations 530 General

a

245 Tort Product Liability 444 Welfare 535 Death Penalty

a

290 All Other Real Property 445 Amer. w/Disabilities - 540 Mandamus & Other

Employment 550 Civil Rights

446 Amer. w/Disabilities-

Prison Condition

Other

a 440 Other Civil Rights

a

463 Habeas Corpus -

Alien Detainee

a

465 Other lnnnigration

Actions

895 Freedom oflnformati

Act

900Appeal ofFee Determ

Under Equal Access

to Justice

a

950 Constitutionality of

State Statutes

V . O R I G I N

i I Original

Proceeding

(Place an "X" in One Box Only)

0 2 Removed

from

0 3

Remanded from

Appellate Court

0 4

Reinstated or

0 5

T r a n s f e r r ~ d ~ o m

0 6

Multidistrict

Reopened a n o t h ~ r dtstnct Litigation

s ect

0 7

Appeal to Di

Judge from

Magistrate

State

Court

Jud ent

Cite the U.S. 3 ~ b ~ t 1 e

under which

you

are filing (Do not cite jurisdictional statutes unless diversity):

VI.

C A U S E

O F

A C T I O N

1 - : : : B ~ r - : - i e " = ' f d " ' : " e - s - c r " ' : " i . P . - t t ~ . o - n - o f " : " c - a - u s - e - :

Structuring Kelated Forfeiture

VII .

R E Q U E S T E D

IN

C O M P L A I N T :

V I I I . R E L A T E D

C A S E S )

IF

ANY

0 CHECK

IF

THIS

IS

A CLASS ACTION DEMAND $

UNDER

F.R.C.P. 23

(See instructions):

JUDGE

RECEIPT# AMOUNT

APPLYING IFP

CHECK YES only if demanded in complaint:

JURY DEMAND: 0 Yes

lilJ No

DOCKET NUMBER

/s/ Stephen A. West, Assistant U S Attorney

JUDGE

MAG. JUDGE

- - - - - - -



9/12

IN THE UNITED STATES DISTRICT COURT

FOR THE

EASTERN

DISTRICT OF NORTH

CAROLINA

WESTERN

DIVISION

L

NO.

5:

14-

v

z. tl

G

-'

F

UNITED STATES OF AMERICA

P l a i n t i f f

FILED

UG 2 2 Z 14

JULIE A.

RICHARDS,

CLE

US D¥11B>COURT I D

BY OI

vs .

COMPL INT

FOR FORFEITURE

FUNDS CONTAINED IN THE

BETTER BUSINESS CHECKING

ACCOUNT

NUMBERED

802070987 AND:

THE

BUSINESS SWEEP ACCOUNT

NUMBERED 802121715 AT CAPITAL :

BANK,

UP TO

359,557.25,

IN

THE NAME

OF MARLA BEDNAR

D/B/A:

MARLA

ENTERPRISES

Defendants .

N

REM

The

United S ta t e s

of

America, by

and

th rough the Uni ted

Sta tes Attorney fo r the

Eas te rn Di s t r i c t of North Caro l ina

s t a t e s as fo l lows:

1 .

This

i s

a

c i v i l

ac t ion

in

rem

brought

to

enforce

the

provis ion

of 31 U.S.C.

§ 5317(c)

(2) , prov id ing fo r the fo r f e i t u re

of

any p ro p e r t y invo lved in

v io l a t i o n s

of

31 U.S.C.

§

5313(A) and

5324(a) (3) ,

o r

any consp i racy to commit any such v io la t ion and

any p ro p e r t y t r aceab le to such v io la t ion

o r

conspiracy.

2.

This

Court

has

j u r i s d i c t i on

over

t h i s mat te r

by

v i r tue

of

28

U.S.C.

§§

1345

and

1355.

Venue

in

t h i s

d i s t r i c t

i s

proper

by

v i r t u e

of

28 U.S.C. §1395.

3. The defendan ts are the funds con ta ined

in

the Bet te r

Business Checking Account Numbered

802070987

and

the

Business

Case 5:14-cv-00476-FL Document 1 Filed 08/22/14 Page 1 of 4


10/12

Sweep

Account Numbered

802121715 a t Capi ta l Bank, up

to

359,557.25, in

the

name of Marla

Bednar

d /b /a

Marla

Ente rp r i se s .

4. The

defendants

are loca ted wi th in the j u r i s d i c t i on of

t h i s

Court ,

them

being

in

the Eas te rn

D i s t r i c t

of

North

Carol ina.

They a re not cur ren t ly in the

cus tody

of the

Uni ted

Sta tes .

5. The

po te n t i a l

cla imant

in t h i s ac t ion i s

Marla

Bednar.

6. The

fac t s

and circumstances

suppor t ing the

fo r f e i t u re

of the defendants are

contained

in Exhib i t A the

Decla ra t ion

of

Specia l Agent

Ter ry

B.

Tate

of the

u.

S. Sec re t Serv ice which

i s

a t tached here to

and

incorpora ted

he re in

by

r e fe rence .

WHEREFORE

the

United

Sta tes

of

America prays t h a t a warrant

of

a r r e s t in

rem

i s sue fo r the

a r r e s t of

the

defendants ;

t ha t

due

not i ce be given to a l l

pa r t i e s

to

appear

and show cause why the

fo r f e i t u re should not be

decreed;

t h a t

judgment

be

ente red

dec la r ing

the defendants fo r f e i t e d to the Uni ted S ta t e s

of

America fo r d i spos i t ion according

to law; and

t ha t the

United

Sta tes of America be gran ted such o ther r e l i e f as t h i s Court may

deem

j u s t

and proper t oge the r with the cos t s and disbursements

of

t h i s

ac t ion .

2



11/12

Respec t fu l ly

submit ted t h i s

22nd

day of August,

2014.

THOM S G. W LKER

United

Sta tes

Attorney

~ ~

BY:

/ s /

Stephen A.

West

STEPHEN A. WEST

Ass is tan t

United

Sta tes

Attorney

Attorney

fo r P l a i n t i f f

Civ i l Divis ion

310 New Bern

Avenue

Federal

Building Sui t e 800

Raleigh ,

NC

27601-1461

Telephone: 919 856-4530

Facsimile :

919

856-4821

E-mail : [email protected]

NC

Sta te Bar

No. 12586

3



12/12

VERIFICATION

I

Stephen

A. West

Ass is tan t

United

S ta t e s Attorney

for the

Eastern Di s t r i c t of

North Caro l ina

dec la re under pena l ty of

pe r ju ry

as p rov ided

by

28

u.s.c.

Sect ion

1746

the

fol lowing:

That

the fo rego ing Complaint fo r For fe i tu re i s based

on

repor t s and

informat ion

furn i shed to me by

Spec ia l

Agent Terry B.

Tate of

the

U.

S.

Secre t Serv ice

and to the b es t o f my

in fo rmat ion and b e l i e f

i s

t rue and co r r ec t .

This

the

22nd

day o f August 2014.

~ ~

s /

Stephen

A.

West

STEPHEN

A.

W ST

Ass i s t an t United

S ta t e s Attorney

Civ i l

Divis ion

secret service affidavit for seizure of bednar funds

Documents