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IN THE UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF TENNESSEE
EASTERN DIVISION

Filed June 19, 2000

  UNITED STATES OF AMERICA, Plaintiff   Cr. 1 - 00 - 10034
 

v.
 
  JAMES GARY DAVIDSON 18 U.S.C. §2
  MARILYN DAVIDSON 18 U.S.C. §371
  THOMAS S. SAWYER 18 U.S.C. §1341
  EDGAR GRISWOLD, JR. 18 U.S.C. §1342
  ALBERT GRAYDON HOOVER 18 U.S.C. §1343
        a/k/a/ GRAYDON HOOVER 18 U.S.C. §1956(a)(1)(A)(i)
  WILLIAM HARDY 18 U.S.C. §1956(h)
  MACROTECH CORPORATION, a corporation 18 U.S.C. §1957

 

INDICTMENT

THE GRAND JURY CHARGES:

COUNT 1
INTRODUCTION

At all times material herein:

1. MACROTECH CORPORATION, INC. (hereinafter MACROTECH) is a corporation which was incorporated in the State of Illinois on or about June 19, 1989. MACROTECH conducts business from its principal office at 3615 Highway 79 North, Paris, Tennessee.

2. Defendant JAMES GARY DAVIDSON was President, Director and beneficial owner and true party in interest of MACROTECH. As such, he had chief responsibility for the direction, operation, activities, control, and management of said entity, including its promotion and sale of "investments" in various medical and other ventures, including, but not limited to, the falsely claimed effective treatment and diagnosis of cancer, and the falsely claimed effective treatment of various other diseases such as multiple sclerosis, arthritis, and Acquired Immune Deficiency Syndrome (AIDS).

3. Defendant MARILYN DAVIDSON, wife of JAMES GARY DAVIDSON, was Secretary, Director, and beneficial owner and true party in interest of MACROTECH. As such, she had responsibility for the direction and management of said entity.

4. Defendant THOMAS S. SAWYER was Vice President or Director of MACROTECH. As such, he had responsibility for the direction and management of said entity including the promotion and sale of "investments" in various medical and other ventures, including, but not limited to, the falsely claimed effective treatment and diagnosis of cancer, and the falsely claimed effective treatment of various other diseases such as multiple sclerosis, arthritis, and AIDS.

5. Defendant EDGAR GRISWOLD,, JR. was a consultant for MACROTECH. As such, he promoted the sale of "investments" in various medical and other ventures, including, but not limited to, the falsely claimed effective treatments for diseases such as arthritis and AIDS.

6. Defendant GRAYDON HOOVER was an accountant for MACROTECH. As of on or about June 21, 1999 he assumed the duties and title of Director of MACROTECH.

7. Defendant WILLIAM HARDY was Assistant Manager of MACROTECH. As such, he had responsibility for the direction and management of said entity.

8. From on or about June 1, 1995, the exact date being unknown to the Grand Jury, to on or about the date of this indictment, in the Western District of Tennessee and elsewhere, the [seven defendants] did knowingly and willfully combine, conspire, confederate, agree, and reach a tacit understanding together with each other and with other persons unknown to the Grand Jury, to commit certain offenses against the United States of America, that is:

a. To knowingly and willfully use, and cause to be used, the United States mails and a private and commercial interstate carrier in execution of a scheme and artifice to defraud, and for obtaining money by means of false and fraudulent pretenses, representations, and promises, in violation of Title 18, United States Code, Section 1341;

b. To knowingly and willfully transmit, and cause to be transmitted in interstate commerce by means of wire communication, certain sips, signals and sounds, all for the purpose of executing a scheme and artifice to defraud and to obtain money by means of false and fraudulent pretenses, representations, and promises, in violation of Title 18, United States Code, Section 1343.

OBJECTS OF THE CONSPIRACY

9. It was an object of the conspiracy that the defendants by means of various false and fraudulent pretenses, representations and promises, would promote and represent MACROTECH as being a scientifically advanced company capable of investigating and offering the falsely claimed effective treatments for certain diseases including but not limited to cancer, multiple sclerosis, arthritis, coronary heart disease, AIDS, emphysema, Alzheimer's, and muscular dystrophy, thereby unlawfully enriching themselves.

10. It was an object of the conspiracy that the defendants would solicitor direct the solicitation and acceptance of payments and money from individuals and severely ill victims in the scheme and artifice to defraud for the purchase of the rights of falsely claimed advanced scientific medical technology or medical treatments, including, but not limited to, cancer cure treatments, arthritis treatments, and other disease treatments.

11. It was a principle object and purpose of the conspiracy to carry out and to execute the above-listed objects of the conspiracy for the ultimate personal gain, benefit, profit advantage, and accommodation of the defendants.

MEANS AND METHODS OF CONSPIRACY and
THE SCHEME AND ARTIFICE TO DEFRAUD

12. From on or about June 1, 1995, the exact date being unknown to the Grand Jury, to on or about the date of this indictment, in the Western District of Tennessee and elsewhere, the [seven defendants] hereinafter referred to as defendants generally or by specific name, being aided, abetted, counseled, and induced each by the other, knowingly, willfully, and unlawfully, devised and intended to devise a scheme and artifice to defraud and to obtain money by means of false and fraudulent pretenses, representations, and promises from various persons interested in the purchase of rights to the falsely claimed medical technology and medical treatments for diseases, including but riot limited to, cancer cure treatment, arthritis treatment, multiple sclerosis treatment and other medical treatments and scientific technology knowing full well said pretenses, representations, and promises would be and were false and fraudulent when made.

13. It was part of the scheme and artifice to defraud that JAMES GARY DAVIDSON as the President, and Chief Executive Officer, was the person chiefly responsible for the operations and activities of MACROTECH and the other defendants were officers, employees or consultants for MACROTECH, which was falsely represented by the defendants as a scientifically advanced company capable of offering diagnosis and effective treatments for cancer and effective treatment for certain other diseases including, but not limited to, multiple sclerosis, arthritis, coronary heart disease, AIDS, emphysema, Alzheimer's and muscular dystrophy, which in truth and fact the defendants knew to be false.

14. It was further a part of the scheme and artifice to defraud that JAMES GARY DAVIDSON offered treatment through MACROTECH for cancer and multiple sclerosis which consisted of passing the victim through a ring type device, which allegedly produced a magnetic field which would allegedly treat or cure the specific disease.

15. It was further apart of the scheme and artifice to defraud that JAMES GARY DAVIDSON, personally and through the assistance of the other defendants, fraudulently misrepresented his qualifications in advanced science and the purported medical treatment of patients by making false statements, including, but not limited to, that he had obtained, his doctorate in physics from Karl Marx University in Germany; he was. a "Nuclear Physics Doctor"; he was involved in the teaching of "pre-med"; he was a retired or former agent of the Central Intelligence Agency; and be was born in Germany as the result of Nazi human breeding experiments.

16. It was further a part of the scheme and artifice to defraud that JAMES GARY DAVIDSON discouraged victims from receiving their legitimate medical treatment by falsely representing to severely ill cancer victims that conventional chemotherapy treatments interfered with his treatment and on at least one occasion instructed a terminally ill cancer victim to reduce his morphine medication, legitimately prescribed by a physician for pain.

17. It was further a part of the scheme and artifice to defraud that JAMES GARY DAVIDSON falsely represented that the cancer treatment offered by MACROTECH was capable of exploding or imploding cancer cells which were then purported to have been discharged through the urine of the patient in the form of protein.

18. It was further apart of the scheme and artifice to defraud that the defendants by means of the false and fraudulent misrepresentations obtained money as investments or payments to purchase the rights to the falsely claimed medical technology and medical treatments. These fraudulent medical technologies and treatments included, but were not limited to, cancer cure treatments, arthritis treatments, multiple sclerosis, and other disease treatments.

19. It was further a part of the scheme and artifice to defraud that the defendants would and did omit and fraudulently misrepresent material facts concerning the true nature of MACROTECH and the defendants as to their qualifications, criminal history, and medical results, including but not limited to the following:

a. That the defendants did not have any education, training, viable experience or medical credentials of any kind in diagnosing, treating, researching, or administering of medical disease treatments.

b. That the defendants falsely claimed to have cured large numbers of cancer victims with MACROTECH's treatments.

c. That investors and potential investors in MACROTECH were not told the material fact that defendant JAMES GARY DAVIDSON had been arrested, pled guilty, and convicted of a felony securities fraud violation in Illinois.

20. It was a part of the scheme and artifice to defraud that the defendants fraudulently received approximately $675,000 as investments and payments to MACROTECH.

OVERT ACTS

21. At the times hereinafter mentioned, in furtherance of the conspiracy the defendants committed or caused to be committed in the Western District of Tennessee, and elsewhere, at least one of the following overt acts, among others, during the time period of the conspiracy, combination, confederation, and agreement:

a. On or about August 2, 1995, JAMES GARY DAVIDSON falsely represented that Albert Harold Cripe was found during an autopsy not to have cancer at the time of his death.

b. During in or about October 1995, JAMES GARY DAVIDSON, THOMAS SAWYER, EDGAR GRISWOLD, JR., and others at MACROTECH met with representatives of Isaiah LLC (Limited Liability Company) and others at MACROTECH in Paris, Tennessee.

c. On or about October 24, 1995, the defendants entered into a written agreement with Isaiah LLQ in which Isaiah LLC was to pay MACROTECH $500,000.

d. On or about November 16, 1995, JAMES GARY DAVIDSON falsely represented to the family of Douglas Midgley, a cancer patient, that Douglas Midgley was his fifty-eighth patient.

e. On or about November 21, 1995, MARILYN DAVIDSON falsely represented to the family of Douglas Midgley that Douglas Midgley was the twenty-ninth patient treated and that 360,000 cancer cells had been removed from Douglas Midgley.

f. On or about January 11, 1996, JAMES GARY DAVIDSON falsely represented himself as a "doctor" to Kenneth .

g. On or about January 16, 1996, JAMES GARY DAVIDSON falsely represented to Rudolph and Margorie Scheffers that Rudolph Scheffers was cancer-free as a result of the purported treatment by JAMES GARY DAVIDSON.

h. On or about January 17, 1996, JAMES GARY DAVIDSON falsely represented to James and Joyce Hoeksema, that James Hoeksema was completely cancer-free as a result of the purported treatment provided by JAMES GARY DAVIDSON.

i. On or about, January 23, 1996, JAMES GARY DAVIDSON falsely represented to Kenneth and Rhonda Genzink that Rhonda Genzink was cured of cancer as a result of the purported treatment provided by JAMES GARY DAVIDSON.

j. On or about January 23, 1996, JAMES GARY DAVIDSON falsely stated to representatives of Isaiah LLC, that microscopic photographs had been made which indicate the destruction of cancer cells from DAVIDSON'S purported cancer treatment.

k. On or about February 9, 1996, JAMES GARY DAVIDSON falsely purported to read x-rays of James Hoeksema, which JAMES GARY DAVIDSON claimed showed no indication of cancer.

l. On or about February 9, 1996, JAMES GARY DAVIDSON told Lori Hoeksema, that JAMES GARY DAVIDSON'S purported review of James Hoeksema's x-rays revealed no indication of cancer.

m. During in or about January or February of 1996, the exact date being unknown, JAMES GARY DAVIDSON, directed an employee of MACROTECH to build an electric device for the treatment of arthritis even though the employee had no training, education, or experience to do so.

n. During in or about January or February of 1996, THOMAS S. SAWYER produced a document promoting investment in "Arthritis LLC" stating that "Dr. Davidson has substantially completed the development of a device to 'cure' arthritis.

o. On or about February 19, 1996, MARILYN DAVIDSON and GRAYDON HOOVER submitted an invoice for payment of $40,000 to Isaiah LLC for purported medical research and development.

p. On or about March 4, 1996, JAMES GARY DAVIDSON and others caused Kenneth Genzink to make a $20,000 initial payment to MACROTECH for the right to various purported technologies, to include a treatment for arthritis.

q. On or about March 7, 1996, JAMES GARY DAVIDSON asked THOMAS S. SAWYER, GRAYDON HOOVER, and others to come up with an explanation of how it would be logical that MACROTECH could develop a cure for cancer, multiple sclerosis, arthritis, muscular dystrophy and emphysema.

r. On or about March 30, 1996, THOMAS S. SAWYER gave a copy of the above-described "Arthritis LLC" document to Kenneth Genzink.

s. On or about March 30, 1996, JAMES GARY DAVIDSON and THOMAS S. SAWYER signed a "Letter of Intent" for investment by a "development company" to be formed by Kenneth Genzink in which he agreed to invest $100,000 per month for a twenty-four month period for rights to the arthritis treatment promoted by MACROTECH and other promoted technology.

t. On or about April 4, 1996, an envelope containing invoices for payments in the amount of $31,186.65 and $26,885.30 was mailed to Isaiah LLC from MACROTECH.

u. On or about May 29, 1996, THOMAS S. SAWYER caused to be delivered to Kenneth Genzink a resume of JAMES GARY DAVIDSON, which contained false information.

v. During in or about November or December 1996, JAMES GARY DAVIDSON, MARILYN DAVIDSON, THOMAS S. SAWYER and EDGAR GRISWOLD, JR. met with Luther T. Wheat and promoted investment in a machine claimed by DAVIDSON to cure AIDS.

w. During in or about July 1997, JAMES GARY DAVIDSON solicited Luther T. Wheat to assist in the establishment of a "clinic" for the alleged treatment of cancer in Mexico.

x. On or about September 11, 1997, JAMES GARY DAVIDSON sent and caused to be sent to a facsimile machine in the Sheraton Ambassador Hotel in Monterey, Mexico, a facsimile communication which included a resume containing false personal background information.

y. On or about September 15, 1997, JAMES GARY DAVIDSON caused Luther T. Wheat to place a telephone call to MACROTECH in furtherance of establishing the purported Mexican cancer treatment "clinic".

z. During in or about October and November 1997, WILLIAM HARDY and JAMES GARY DAVIDSON prepared and provided a manual to Luther T. Wheat giving the operational procedures for use of a machine in the purported treatment of cancer.

aa. On or about January 8,1998, EDGAR GRISWOLD, JR. represented JAMES GARY DAVIDSON to be a half-German physicist with a degree in physics from Karl Marx University in East Germany.

All in violation of Title 18, United States Code, Section 371.

[nmt 5 yrs, and nmt $250,000.00 fine or both, nmt 3 yrs supervised release, together with a mandatory special assessment of $100, see 18 U.S.C. §3013(a)]

COUNTS 2 THROUGH 7

Note: Each of these counts was published on a separate page of the indictment. Since the language was repetitive, the data in item 2 of each count is condensed and summarized in table to make this document easier to read.

1. All the allegations contained in paragraphs 1 through and including 7 and paragraphs 12 through and including 20 of Count 1 of this indictment are realleged and incorporated by reference as if fully set forth herein.

2. On or about [see date in table], in the Western District of Tennessee, and elsewhere [the seven defendants] herein, being aided, abetted, counseled, and induced each other for the purpose of executing the foresaid scheme and artifice to defraud and to obtain money, did transmit and cause to be transmitted in interstate commerce by means of a wire communication [see table below] certain signs, signals, and sounds pertaining to [see table below], in violation of Title 18, United States Code, Sections 1343 and 2.

[nmt 5 yrs. and nmt $250,000 fine or both, nmt 3 years supervised release, together with a mandatory special assessment of $100, see 18 U.S.C. §3013(a)]

Count

Date

Means

From

To

Subject

2

3/1/96
Phone call Kenneth Ginzink Macrotech Purported investment opportunities

3

3/20/96
Wire transfer First Michigan Bank, Holland, Michigan Macrotech account at Commercial Bank and Trust, Paris, Tennessee $30,000 payment for purported investment opportunity in Macrotech

4

4/4/96
Wire transfer First Michigan Bank Macrotech account at Commercial Bank and Trust Purported $50,000 investment in Macrotech

5

4/20/96
Wire transfer First Michigan Bank Macrotech account at Commercial Bank and Trust Purported $7,500 investment in Macrotech

6

4/19/96
Wire transfer First Michigan Bank Macrotech account at Commercial Bank and Trust Purported $42,500 investment in Macrotech

7

5/6/96
Wire transfer First Michigan Bank Culex, Inc., account at Commercial Bank and Trust Purported $52, 000 investment in Macrotech

COUNTS 8 THROUGH 11

Note: Each of these counts was published on a separate page of the indictment. Since the language was repetitive, the data in item 2 of each count is condensed and summarized in table to make this document easier to read.

1. All the allegations contained in paragraphs 1 through and including 7 and paragraphs 12 through and including 20 of Count 1 of this indictment are realleged and incorporated by reference as if fully set forth herein.

2. On or about [see date in table], in the Western District of Tennessee, and elsewhere [the seven defendants] herein, being aided, abetted, counseled, and induced each other for the purpose of executing the foresaid scheme and artifice to defraud and to obtain money, and attempting to do so, knowingly caused to be placed in an authorized depository for mail matter, to be sent and delivered by [carrier] according to the direction thereon, an [envelope] containing [contents], said envelope addressed to [addressee] and being [sent] from [sender], in violation of Title 18, United States Code, Sections 1343 and 2.

[nmt 5 yrs. and nmt $250,000 fine or both, nmt 3 years supervised release, together with a mandatory special assessment of $100, see 18 U.S.C. §3013(a)]

Count

Date

Carrier

Sender

Addressee

Contents

8

2/16/96
Postal Service William C. Olivero, M.D., Peoria, Illinois James G. Davidson, Ph.D. Letter pertaining to patient diagnosis

9

2/20/96
Postal Service William C. Olivero, M.D., James G. Davidson, Ph.D. Letter pertaining to patient diagnosis

10

4/4/96
Postal Service Macrotech, Paris, Tennessee Macrotech,
Paris, Tennessee
Invoices of 31,186.35 and $26,885.30 pertaining to purported medical research and development

11

5/29/96
Federal Express Macrotech Kenneth Ginzink,
Holland, Michigan
Resume of James Gary Davidson

COUNTS 12 TO 14

1. All the allegations contained in paragraphs 1 through and including 7 and paragraphs 12 through and including 20 of Count 1 of this indictment are realleged and incorporated by reference as if fully set forth herein.

2. On or about February 16 [Count 12], February 20 [Count 13], and April 15, 1996 [Count 14], in the Western District of Tennessee, and elsewhere, James Gary Davidson, defendant herein, for the purpose of conducting, promoting, and carrying on by means of the Postal Service the aforesaid scheme and artifice to defraud and obtain money, and attempting to do so, knowingly received from a post office and authorized depository of mail matter a letter addressed to a false, fictitious, and assumed title, that is James G. Davidson, "Ph.D."; in violation of Title 18, United States Code, Section 1342.

[nmt 5 yrs. and nmt $250,000 fine or both, nmt 3 years supervised release, together with a mandatory special assessment of $100, see 18 U.S.C. §3013(a)]

COUNT 15

1. All the allegations contained in paragraphs 1 through and including 7 and paragraphs 12 through and including 20 of Count 1 of this indictment are realleged and incorporated by reference as if fully set forth herein.

2. On or about June 1, 1995, in the Western District of Tennessee, and elsewhere [the seven defendants] did unlawfully and knowingly combine, conspire, confederate and agree together and with each other and with others unknown to the grand jury, to commit certain offenses against the United States of America, that is:

a. To conduct and attempt to conduct a financial transaction affecting interstate and foreign commerce, which involved the proceeds of unlawful activity; that is, mail fraud and wire fraud; with the intent to promote the carrying on of such unspecified unlawful activity; and that while conducting and attempting to conduct such financial transaction knew that the property involved in the financial transaction, represented the proceeds of some form of unlawful activity; in violation of Title 18, United States Code, Section 1965(a)(1)(A)(i);

b. To knowingly engage and attempt to engage in a monetary transaction in criminally derived property that is of greater value than $10,000 and is derived from specified unlawful activity, that is mail fraud and wire fraud; n violation of Title 18, United States Code, Section 1957.

OBJECT OF THE CONSPIRACY

3. It was an object of the conspiracy to collect the proceeds of the aforementioned scheme to defraud from the various victims and deposit those unlawfully obtained proceeds into various bank accounts and after depositing those unlawfully obtained proceeds to then use those unlawfully obtained proceeds to further promote the carrying on of the aforementioned scheme to defraud. .

4. It was a principle object and purpose of the conspiracy to carry out and to execute. the above listed object of the conspiracy for the ultimate personal gain, benefit, profit, advantage, and accommodation of the defendants.

MEANS AND METHODS OF THE CONSPIRACY

5. In furtherance of the conspiracy a checking account was opened at Commercial Bank and Trust, Paris, Tennessee, styled in the name MACROTECH CORPORATION by JAMES G. DAVIDSON and a checking account was opened at Union Planters National Bank, Paris, Tennessee, styled in the name Culex, Inc. listing THOMAS SAWYER as President and MARILYN DAVIDSON as Secretary on the business account agreement.

6. Using these bank accounts, JAMES GARY DAVIDSON caused proceeds from the aforementioned scheme to defraud to be deposited into the MACROTECH checking account and THOMAS S. SAWYER and MARILYN DAVIDSON caused proceeds from the aforementioned scheme to defraud to be deposited into the Culex account and then transferred those unlawfully obtained proceeds to the MACROTECH checking account.

7. In furtherance of the conspiracy, JAMES GARY DAVIDSON caused the unlawfully obtained proceeds of the aforementioned scheme to defraud to be distributed from the MACROTECH checking account to MARILYN DAVIDSON, THOMAS S. SAWYER, EDGAR GRISWOLD JR., GRAYDON HOOVER, WILLIAM HARDY, and himself to further promote and continue the scheme to defraud.

OVERT ACTS

8. In furtherance of the conspiracy and to achieve the objects thereof, the defendants and their co-conspirators, and others unknown to the grand jury, committed and caused to be committed at least one of the following overt acts in the Western District of Tennessee and elsewhere, during the time period of the conspiracy, combination, confederation, and agreement:

a. On or about March 05, 1996, JAMES GARY DAVIDSON caused to be deposited a $20,000 check from Kenneth Genzink into the MACROTECH checking account.

b. On or about Much 20, 1996, JAMES GARY DAVIDSON caused to be deposited a $30,000 wire transfer from Kenneth Genzink into MACROTECH account.

c. On or about April 04, 1996, JAMES GARY DAVTDSON caused to be deposited a $50,000 wire transfer from Kenneth Genzink into the MACROTECH account.

d. On or about April 19, 1996, JAMES GARY DAVIDSON caused to be deposited a $42,500 wire transfer from Kenneth Genzink into the MACROTECH account.

e. On or about April 19, 1996, JAMES GARY DAVIDSON caused to be deposited a $7,500 wire transfer from Kenneth Genzink into the MACROTECH account.

f. On or about May 6, 1996, JAMES GARY DAVIDSON and THOMAS SAWYER caused Kenneth Genzink to wire $52,000.00 from First Michigan Bank, Holland, Michigan to Union Planters National Bank, Paris, Tennessee, checking account of Culex, Inc.

g. On or about May 6, 1996, THOMAS S SAWYER and MARILYN DAVIDSON caused a check from the Culex, Inc., account for $50,000.00 to be issued to MACROTECH.

h. On or about May 6, 1996, JAMES GARY DAVIDSON caused a check from Culex, Inc., account for $50,000.00 to be deposited into checking account of MACROTECH CORPORATION at Commercial Bank and Trust, Paris, Tennessee.

i. As further overt acts engaged in to further and effectuate the objects of the said combination, conspiracy, and agreement the Grand Jury realleges and incorporates all of the allegations in counts 16 through 61.

All in violation of Title 18 United States Code 1956(h),

(nmt 20 yrs, nmt $500,000.00 fine or nmt twice the value of the property involved in the transaction whichever is greater, or both, and nmt 3 yrs supervised release, together with a mandatory special assessment of $100, see 18 U.S.C. §3013(a)

COUNT 16

1. All the allegations contained in paragraphs I through and including 7 and paragraphs 12 through and including 20 of Count 1 of this indictment are realleged and incorporated by reference as if fully set forth herein.

2. On or about March 05, 1996, in the Western District of Tennessee, and elsewhere, the defendants, JAMES GARY DAVIDSON and MACROTECH CORPORATION, a corporation did knowingly conduct and attempt to conduct a financial transaction which involved the proceeds of a specified unlawful activity, to wit, mail fraud, in violation of Title 18, United States Code, Section 1341; and wire fraud in violation of Title 18 United States Code, Section 1343; said activity being punishable under the laws of the United States, knowing that the transaction was designed to promote the carrying on of the specified unlawful activity; and that while conducting and attempting to conduct such financial transaction, to wit a withdrawal, transfer, and exchange of funds and monetary instruments, know the property involved in the financial transaction, to wit, a check drawn on the MACROTECH checking account at Commercial Bank and Trust, Paris, Tennessee, authorized by JAMES GARY DAVIDSON, payable to MARILYN DAVIDSON in the amount of $2,240.17, represented the proceeds of some form of unlawful activity; in violation of Title 18, United States Code, Section 1956(a)(1)(A)(i).

[nmt 20 yrs, writ $500,000.00 fine or nmt twice the value of the property involved in the transaction whichever is greater, or both, and nmt 3 yrs supervised release, together with a mandatory special assessment of $100, see 18 U.S.C. §3013(a)]

COUNTS 17 THROUGH 61

The Grand Jury reasserts and realleges, all of the allegations in Count 16 of this indictment in Counts 17 through 6 1, except the dates, amounts, and payees which are as follows:

COUNT

DATE

AMOUNT

PAYEE

17

3/5/96

$2,052.14
E.F. Griswold

18

3/5/96

$1,362.56
William G. Hardy

19

3/5/96

$1,391.56
Graydon Hoover

20

3/5/96

$2,269.92
Thomas S. Sawyer

21

3/5/96

$1,800.26
James G. Davidson

22

3/5/96

$9,299.53
Commercial Bank & Trust Co.

23

3/20/96

$1,342.02
Robert W. Chilcutt

24

3/20/96

$1,741.51
James G. Davidson

25

3/20/96

$2,240.17
Marilyn Davidson

26

3/20/96

$1,362.58
William G. Hardy

27

3/20/96

$1,391.56
Graydon Hoover

28

3/20/96

$2,269.92
Thomas S. Sawyer

29

3/2996

$7,500.00
Elie Hayon

30

4/1/96

$1,200.00
J.W. Green

31

4/8/96

$1,800.00
James G. Davidson

32

4/8/96

$2,240.17
Marilyn Davidson

33

4/8/96

$2,052.14
Edgar.F. Griswold

34

4/8/96

$1,362.56
William G. Hardy

35

4/8/96

$1,391.56
Graydon Hoover

36

4/8/96

$2,269.92
Thomas S. Sawyer

37

4/8/96

$9,216.83
Commercial Bank & Trust Co.

38

4/22/96

$1,302.42
Robert W. Chilcutt

39

4/22/96

$3,574.26
James G. Davidson

40

4/22/96

$2,240.17
Marilyn Davidson

41

4/22/96

$2,052.14
Edgar.F. Griswold

42

4/22/96

$1,362.56
Wm G. Hardy

43

4/22/96

$1,391.56
Graydon Hoover

44

4/22/96

$2,269.92
Thomas S. Sawyer

45

4/22/96

$9,768.38
Commercial Bank & Trust Co.

46

4/22/96

$  961.70
Patricia A. Davidson

47

4/22/96

$1,076.55
William A. Snow

48

4/22/96

$1,712.51
Elie Hayon

49

4/29/96

$  917.85
Commercial Bank & Trust Co.

50

430/96

$3,000.00
CASH

51

5/2/96

$1,302.42
Robert W. Chilcutt

52

5/3/96

$7,500.00
Elie Hayon

53

5/6/96

$1,200.00
J.W. Green

54

5/7/96

$3,214.48
Commercial Bank & Trust Co.

55

5/7/96

$2,708.00
Ed Griswold

56

5/7/96

$2,200.00
James G. Davidson

57

5/7/96

$3,000.00
Marilyn M. Davidson

58

5/7/96

$3,000.00
Thomas Sawyer

59

5/7/96

$1,875.00
William G. Hardy

60

5/7/96

$1,875.00
A. Graydon Hoover

61

6/6/96

$7,500.00
Elie Hayon

All in violation of Title 18, United States Code, Section 1956(a)(1)(A)(i).

[nmt 20 yrs, nimt $500,000.00 fine or nmt twice the value of the property involved in the transaction whichever is greater, or both, and nmt 3 yrs supervised release, together with a mandatory special assessment of $100, see 18 U.S.C. §3013(a)]

COUNT 62

1. All the allegations contained in paragraphs 1 tbrough and including 7 and paragraphs 12 through and including 20 of Count 1 of this indictment are realleged and incorporated by reference as if fully set forth herein.

2. On or about May 6, 1996, in the Western District of Tennessee, and elsewhere, the defendants, JAMES GARY DAVIDSON, MARILYN DAVIDSON, THOMAS S. SAWYER, and MACROTECH CORPORATION, a corporation, being aided, abetted, counseled, and induced each by the other did knowingly engage and attempt to engage in a monetary transaction, affecting interstate and foreign commerce, in criminally derived property, of a value greater than $10,000, to wit, a deposit of funds in the total amount of $50,000.00, more specifically described as a deposit of a Union Planters National Bank check, from the Culex, Lac. account, payable to MACROTECH CORPORATION, into the MACROTECH CORPORATION checking account at Commercial Bank and Trust, Paris, Tennessee, such property having been derived from a specified unlawful activity, that is, wire fraud, in violation of Title 18, United States Code, Section 1343 and Title 18, United States Code, Section 1957 and 2.

[nmt 10 yrs, nmt $250,000.00 fine or nmt twice the value of the property involved in the transaction, or both, and nmt 3 yrs supervised release, together with a mandatory special assessment of $100, see 18 U.S.C. §3013(a)]

FOREITURE ALLEGATIONS
COUNT 63

In committing one or more of the felony offenses alleged in Counts 1 through 62 of this indictment, each punishable by imprisonment for more than one year, the defendants used or intended to use the below-described property to commit and facilitate the said mail fraud, wire fraud, and money laundering violations and the below-described personal property constitutes and is derived from proceeds obtained directly or indirectly as a result of the commission of the aforesaid violations of Title 18, United States Code, Sections 1956(a)(1)(A)(i), 1956(h), and 1957, including but not limited to the following:

Approximately $675,000 in United States Currency and if those funds are unavailable, as a result of any act and omission of the defendants, and,

(a) cannot be located upon the exercise of due diligence;

(b) has been transferred or sold to, or deposited with, a third person;

(c) has been placed beyond the jurisdiction of the Court;

(d) has been substantially diminished in value;

(e) has been commingled with other property which cannot be subdivided without difficulty;

it is the intent of the United States, pursuant to Title 18, United States Code, Section 982(b)(1), to seek forfeiture of any other property of the defendants up to the value of the above-described forfeitable property.

Then property of equivalent value belonging to [the seven defendants] and, any and all interest [the seven defendants] have in the above-described property is vested in the United States and hereby forfeited to the United States pursuant to Title 18, United States Code, Section 982.

A TRUE BILL 
 
______________
Foreman         

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