Complaint Review: HENRY TIMOTHY MALONEY -

 

7                                                                              UNITED STATES DISTRICT COURT

8                                                                         SOUTHERN DISTRICT OF CALIFORNIA

9                                                                  July 2002 Grand Jury     '03 lCR  2 4 63  l EG

 

10            UNITED STATES OF AMERICA,

11                                                                                                                     Plaintiff,

12                                                                                  V.

13            HENRY TIMOTHY MALONEY,

14                                                                                                                    Defendant.

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16                The grand jury charges: 17

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) )          Criminal Case No. ------

)          INDI TMENT

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)          Title 18, U.S.C., Sec. 1341 -

)          Mail Fraud

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)

 

MAIL FRAUD

Counts 1-5

 

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20      1.

 

INTRODUCTORY ALLEGATIONS

At all times relevant and pertinent to this Indictment, defendant HENRY TIMOTHY

 

21            MALONEY was purportedly in the business of soliciting investments from members of the public to

22            participate in equipment lease back agreements and in an investment fund.   Under a lease back

23            agreement, an investor buys equipment for or from an existing business that needs to raise capital, and

24             then leases the equipment back to the existing business at a profit

 

At all times relevant and pertinent to this Indictment, defendant HENRY TIMOTHY

 

26           MALONEY did business under various fictitious business names, including Coast Capital Inc., G & T

27          Enterprises, Leaseco, Sealcrest Homes, Priveleges, and International Capital.

 

1                       At all times relevant and pertinent to this Indictment, defendant HENRY TIMOTHY

2      MALONEY had financial accounts at various institutions, including Bank of America, Union Bank and

3      Merrill Lynch.

4                        4.               At all times relevant and pertinent to this Indictment, George Von Bozzay (also

5      identified as "Von Bozzay"), was an individual residing in Northern California who invested a total of

6      $609,000.00 at defendant HENRY TIMOTHY MALONEY's invitation and solicitation.

7                                                                                       THE SCHEME TO DEFRAUD

 

 

8                5.

 

Between July 2001, and continuing through March 2002, in the Southern District of

 

9            California and elsewhere, defendant HENRY TIMOTHY MALONEY did devise and intend to devise

10            a scheme and artifice to defraud Von Bozzay, and to obtain money by means of false, fraudulent and

11            material pretenses, representations and promises.

12                                               6.        It  was  part   of  the  general   scheme   to  defraud   Von Bozzay, for defendant

13            HENRY TIMOTHY MALONEY to falsely hold himself out as a wealthy heir to a 40 million dollar

14            clothing company in Italy, and pretended to own a real estate development company.

 

15                                              7.   It was further part of the scheme to defraud that defendant HENRY TIMOTHY

16            MALONEY created companies, real and fictitious, to serve as the businesses which received

17            Von Bozzay's money, and also served as the entities named in false business agreements used to entice

18            Von Bozzay to part with large sums of money.

19                                                                                                                                                                                        METHODS AND MEANS

 

 

20      8.

 

On or about August 2001, defendant HENRY TIMOTHY MALONEY enticed

 

21            Von Bozzay into an initial fraudulent investment of $140,000.00. Defendant HENRY TIMOTHY

22            MALONEY created a company called "LEASECO," and used this company name in a contract which

23            purported to be a lease back agreement with a company called CLEAR IMAGE GRAPHICS ("CIG").

24            Defendant HENRY TIMOTHY MALONEY presented this lease agreement to Von Bozzay as a

25             profitable investment that would yield a 23% annual return, when in fact, defendant HENRY TIMOTHY

26             MALONEY had no such agreement with CIG.

27                                                9.         Von Bozzay, unaware that defendant HENRY Tll\1OTHY MALONEY did no in fact

 

28             have such an agreement with CIG, signed a partnership agreement with defendant HENRY TIMOTHY

1            MALONEY and gave $140,000.00 to defendant HENRY Tll\1OTHY MALONEY as his share of the

2             investment on or about August 16, 2001. Specifically, defendant HENRY TTh1OTHY MALONEY

3             indicated that they were to buy equipment worth $210,000.00, which would be leased back to CIG.

4            Further, defendant HENRY TIMOTHY MALONEY falsely claimed that he had already invested

5             $70,000.00, and had Von Bozzayput in the remaining $140,000.00 to reach the $210,000.00 fabricated

6             figure.

7                                                10.      DefendantHE YTIMOTHYMALONEYneverinvestedanyofthe $140,000.00 with

8             CIG, yet he sent Von Bozzay periodic interest payments from this purported investment. The interest

9             payments were sent by Airborne Express and spanned a time period of September 2001 through March

10             2002. This time period also includes interest payments for later fraudulent investments, noted below.

11                                                11.       On or about October 2001, defendant HENRY TIMOTHY MALONEY presented another

12            fraudulent lease back agreement and investment opportunity to Von Bozzay which he claimed would

13            net an approximate   23.85% rate of return.   Under this scheme, defendant HENRY TIMOTHY

14           MALONEY purported to be a 25% participant, Von Bozzay would be a 25% participant, and the other

15             50% participation would be equally shared by two fabricated investors. The capital contribution of each

16            equal participant was listed as $225,000.00, for a total of investment of$900,000.00. The lease back

17            agreement was purported to be with All Optical Networks, Inc. ("AON").

18                                               12.       As part of the fraud, defendant HENRY TIMOTHY MALONEY forged the signatures

19           of AON employees and officers in the agreement.

20                                               13.      Von Bozzay, believing the lease back agreement with AON to be genuine, entered into

21            a second fraudulent partnership agreement with defendant HENRY TTh1OTHY MALONEY and gave

22           $225,000.00 to defendant HENRY TIMOTHY MALONEY on or about October 16, 2001.

23                                               14.      Defendant HENRY TIMOTHY MALONEY continued to send various sums of money

24            to Von Bozzay during this period and falsely indicated that they were interest payments from the lease

25           back agreement investments. The interest checks were sent to Von Bozzay by Airborne Express.

26                                               15.      On or about January 2002, HENRY TIMOTHY MALONEY continued his scheme to

27            defraud Von Bozzay out of significant sums of money and presented Von Bozzay with an opportunity

 

28            to contribute money into an investment fund called the Global Capital Fund ("GCF").

1                                               16.       Defendant HENRY TIMOTHY MALONEY indicated to Von Bozzay that his portion

2            of the investment would be $400,000.00.   In an effort to obtain more money out of Von Bozzay,

3           defendant HENRY TIMOTHY MALONEY told Von Bozzay that he would sell the earlier CIG lease,

4             when in fact, the CIG lease never existed, to assist Von Bozzay in obtaining the necessary funds.

5                                               17.       Further, defendant HENRY TIMOTHY MALONEY falsely represented to Von Bozzay

6            that GCF had invested in medical and high technology companies in Asia and the United States and that

7            GCF had institutional investors such as Merrill Lynch and Morgan Stanley.

8                                               18.       It was further part of the scheme that defendant HENRY TIMOTHY MALONEY

9             received a$244,000.00 check from Von Bozzay on or about January 15, 2002 for investment into GCF.

10            In return for the investment, defendant HENRY TIMOTHY MALONEY issued Von Bozzay a

11             fraudulent stock certificate for 5,000 shares of a company created by defendant HENRY TIMOTHY

12            MALONEY for the purpose of defrauding Von Bozzay.

13                                                                                                                                                                         EXECUTION OF THE SCHEME

14                                                19.       On or about the dates set forth below, in the Southern District of California and

15             elsewhere, defendant HENRY TIMOTHY MALONEY, for the purpose of executing the aforesaid

16             scheme and artifice to defraud and to obtain money by means of material false and fraudulent pretenses,

17             representations and promises, with the intent to defraud, knowingly did cause the following matters and

18             things, as described below, to be delivered by private and commercial interstate carrier, that is Airborne

19             Express, and by the United States Postal Service, according to the directions thereon, from defendant

20             HENRY TIMOTHY MALONEY in San Diego County, California, to Von Bozzay in San Francisco,

21             California.

22                                              COUNT         DATE OF MAILING                        ITEM MAILED

23                1                    November 8, 2001                            A $3,933.00 check payable to Von Bozza

24                                                   2                    December 12, 2001                           A $9,753.75 check payable to Von Bozza

25                                                  3        January 18, 2002                               Letter    and   documents  on  the GCF

investment to Von Bozzay

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4                    February 11, 2002                             Two checks in the amount of $50,000.00

27                                                                                                                                                                                                                                                                                                   and $7,177.50 payable to Von Bozzay

 

28                5                     March 13,2002                                 A$5,273.45 check payable to Von Bozzay

 

1                       All in violation of Title 18, United States Code, Section 1341.

2                        DATED: September 3, 2003.

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CAROLC.LAM

8    United States Attorney

9         /4Ct0tl111

10    PENNIE M. CARLOS

Assistant United States Attorney

 

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