v. u.s.c. - oregonlivemedia.oregonlive.com/money_impact/other/Walsh superseding...WALSH, aka Geoff Walsh, and GREGORY B. WALSH, conspired and agreed with one another, and with others

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UNDER SEAL

UNITED STATES DISTRICT COURT

DISTRICT OF OREGON

PORTLAND DIVISION

UNITED STATES OF AMERICA, Case No. 3:13-CR-00332-KI

v.

GEOFFREY S. WALSH, aka Geoff Walsh, and GREGORY B. WALSH,

Defendants.

SUPERSEDING INDICTMENT

18 u.s.c. §§ 1343, 1349, 1014, 2, 1957, 981(a)(1)(C), 982(a)(1)(A), 982(a)(2).

UNDER SEAL

THE GRAND JURY CHARGES:

COUNT 1 CONSPIRACY TO COMMIT WIRE FRAUD

[18 u.s.c. § 1349]

I. INTRODUCTION.

At all times material and relevant herein:

A. THE INDIVIDUALS.

1. Defendant GEOFFREY S. WALSH, aka Geoff Walsh, (hereinafter referred to as

GEOFFREY S. WALSH) was a resident of Lake Oswego, OR. Defendant GEOFFREY S.

WALSH had been employed as the Vice President, Business Development and Lending

Case 3:13-cr-00332-KI Document 35 Filed 01/15/14 Page 1 of 24

Services at The Bank of Oswego from approximately January 2, 2009 to May 2, 2012. In

addition to working at the Bank of Oswego, defendant GEOFFREY S. WALSH obtained loans

and facilitated business deals and investments for others, including his friends, family, and

acquaintances, from at least 2009 to the date of this Superseding Indictment. He is the older

brother of defendant GREGORY B. WALSH.

2. Defendant GREGORY B. WALSH is a resident of Tucson, AZ, and had been

employed as a Financial Advisor and Associate Vice President by an investment firm with the

initials M.S.S.B. LLC in Tucson, AZ from approximately May 2000 to October 2013. He holds

a Series 7 securities license, which is a license to sell registered securities to the public. He is the

younger brother of defendant GEOFFREY S. WALSH.

3. S.P. is resident of Tucson, AZ and Lake Tahoe, CA. S.P. and her husband (now

deceased), had been clients of defendant GREGORY B. WALSH since approximately 2005.

After her husband's death in 2010, S.P. remained a client of defendant GREGORY B. WALSH

and M.S.S.B. LLC in Tucson, AZ.

4. H.S. is a successful businessman who works and resides in Oregon.

B. THE ENTITIES.

5. M.S.S.B. LLC is a company that provides financial advice and investment

management services to its clients. M.S.S.B. LLC has a branch office in Tucson, Arizona.

M.S.D.W. Bank is located in New York, NY and is associated with M.S.S.B. LLC.

6. Terwilliger Curves LLC is an Oregon Limited Liability Company authorized to

do business in Oregon. Defendant GEOFFREY S. WALSH is the sole member of Terwilliger

Curves LLC. The address of Terwilliger Curves LLC is P.O. Box 934 Lake Oswego, OR 97034.

Superseding Indictment Page2


7. H.O.T. LLC is a Limited Liability Company authorized to do business in Oregon.

H.S. is the owner ofH.O.T. LLC.

C. THE PROPERTIES.

8. 48475 Legacy Drive, La Quinta, CA 92253 was a condominium owned by defendant

GEOFFREY S. WALSH'S Oregon Limited Liability Company, Terwilliger Curves LLC, from

approximately March 2011 to approximately July 2012.

9. 48789 Legacy Drive, La Quinta, CA 92253 was a condominium owned by


approximately March 2011 to approximately May 2012.

10. 77752 Tradition Drive, La Quinta, CA 92253 is a condominium owned by


approximately October 2011 to the date of this Superseding Indictment.

II. OBJECT OF THE CONSPIRACY.

11. Beginning in or about at least March 2011, and continuing to the date of this

Superseding Indictment, in the District of Oregon and elsewhere, defendants GEOFFREY S.

WALSH, aka Geoff Walsh, and GREGORY B. WALSH, conspired and agreed with one

another, and with others known and unknown to the Grand Jury, to commit the following crime

in violation of Title 18, United States Code, Sections 1349:

Wire Fraud - Devising or intending to devise any material scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, and for the purpose of executing such material scheme or artifice to defraud, transmitting or causing to be transmitted by means of wire communication in interstate commerce, any writings, signs, signals, pictures, or sounds. Title 18, United States Code, Section 1343.



III. MANNER AND MEANS BY WHICH THE CONSPIRACY AND MATERIAL SCHEME TO DEFRAUD WAS CARRIED OUT.

12. The purpose of defendants' conspiracy and material scheme to defraud was to

defraud investor S.P. of more than $3,000,000.00 by means of materially false and fraudulent

pretenses, representations, and promises, and through omissions of material facts necessary to

make the statements made, in light of the circumstances in which they were made, not

misleading.

13. It was part of the conspiracy and material scheme to defraud that between in or

about March 2011 and October 2011, defendants GEOFFREY S. WALSH and GREGORY B.

WALSH would obtain more than $1,000,000.00 ofS.P.'s funds by means of materially false and

fraudulent pretenses, representations, and promises, and through omissions of material facts

necessary to make the statements made, in light of the circumstances in which they were made,

not misleading, so that defendant GEOFFREY S. WALSH could purchase condominium

properties in the Palm Springs-area resort town of La Quinta, CA.

14. It was part ofthe conspiracy and material scheme to defraud that in approximately

March 2011, defendant GREGORY B. WALSH approached his client, S.P. with what he

characterized as an investment opportunity. Defendant GREGORY B. WALSH told S.P. that

his brother, defendant GEOFFREY S. WALSH, needed a loan of a little more than

$1,000,000.00 to purchase and renovate condominiums in the Palm Springs, CA area.

15. Defendants GEOFFREY S. WALSH and GREGORY B. WALSH falsely

promised S.P. that the term ofthe loan would be one year, and the interest she would receive on

the loan would be 10 percent (10%). Defendants also falsely promised that the loan would be

secured by the condominiums, and that the properties would be titled in S.P.'s name.



16. Based on the false representations of defendants GEOFFREY S. WALSH and

GREGORY B. WALSH, S.P. agreed to make the loan.

17. It was part of the conspiracy and material scheme to defraud that on or about

March 3, 2011, defendant GEOFFREY S. WALSH sent an email from Oregon to defendant

GREGORY B. WALSH in Arizona, providing the wiring instructions for the funds to purchase

the property at 48789 Legacy Drive, La Quinta, CA 92253.


March 4, 2011, defendants GEOFFREY S. WALSH and GREGORY B. WALSH caused a

wire transfer ofS.P.'s funds in the amount of$373,624.87 from M.S.S.B. through M.S.D.W.

Bank, New York, NY to the bank account of Palm Desert Escrow, Inc. in California. This wire

transfer was for the purchase of a condominium at 48789 Legacy Drive, La Quinta, CA 92253 by

defendant GEOFFREY S. WALSH and his Oregon Limited liability Company, Terwilliger

Curves LLC.

19. It was part ofthe conspiracy and material scheme to defraud that defendant

GEOFFREY S. WALSH had the property at 48789 Legacy Drive, La Quinta, CA 92253 titled

in the name ofhis Oregon Limited Liability Company, Terwilliger Curves LLC, and not in S.P.'s

name.


March 10, 2011, defendant GEOFFREY S. WALSH sent an email from Oregon to defendant

GREGORY B. WALSH in Arizona providing him with wiring instructions for the funds to

purchase the property at 48475 Legacy Drive, La Quinta, CA 92253.

21. It was part ofthe conspiracy and material scheme to defraud that on or about

March 11,2011, defendants GEOFFREY S. WALSH and GREGORY B. WALSH caused a

Superseding Indictment PageS



Bank, New York, NY to the bank account of West Coast Escrow in California. This wire

transfer was for the purchase of a condominium at 484 75 Legacy Drive, La Quinta, CA 92253 by

defendant GEOFFREY S. WALSH and his Oregon Limited Liability Company, Terwilliger

Curves LLC.

22. It was part of the conspiracy and material scheme to defraud that defendant

GEOFFREY S. WALSH had the property at 48475 Legacy Drive, La Quinta, CA 92253 titled

in the name of his Oregon Limited Liability Company, Terwilliger Curves LLC, and not in S.P.'s

name.

23. On or about March 16, 2011, defendant GEOFFREY S. WALSH caused a wire

transfer of$47,780.75, which represented a refund of escrow funds for the purchase of 48475

Legacy Drive, La Quinta CA 92253, to be made from the bank account of West Coast Escrow in

California to the bank account of his Oregon Limited Liability Company, Terwilliger Curves

LLC, account #x8180 at The Bank of Oswego, Lake Oswego, OR.


September 28, 2011, defendant GEOFFREY S. WALSH caused a wire transfer of $10,000.00

from the Terwilliger Curves LLC bank account #x81890 at The Bank of Oswego, Lake Oswego,

OR to Executive One Escrow for an earnest money payment on the purchase of77752 Tradition

Drive, Unit #232, La Quinta, CA 92253.


October 12,2011, defendant GEOFFREY S. WALSH sent an email from Oregon to defendant

GREGORY B. WALSH in Arizona providing him with wiring instructions for the funds to

purchase the property at 77752 Tradition Drive, Unit #232, La Quinta, CA 92253.




October 13,2011, defendants GEOFFREY S. WALSH and GREGORY B. WALSH caused a


Bank, New York, NY to the bank account of Marathon Financial Corporation in California.

This wire transfer was for the purchase of a condominium at 77752 Tradition Drive, Unit #232,

La Quinta, CA 92253 by defendant GEOFFREY S. WALSH and his Oregon Limited Liability

Company, Terwilliger Curves LLC.


GEOFFREY S. WALSH had the property at 77752 Tradition Drive, Unit #232, La Quinta, CA

92253 titled in the name of his Oregon Limited Liability Company, Terwilliger Curves LLC, and

not in S.P.'s name.

28. On or about May 25, 2012, defendant GEOFFREY S. WALSH caused the wire

transfer of $313,928.66 of proceeds from the sale of 48789 Legacy Drive, La Quinta, CA 92253

from the bank account of Pacific Coast Escrow in California to his JP Morgan Chase bank

account #x7468 in Oregon.

29. On or about July 9, 2012, defendant GEOFFREY S. WALSH caused the wire

transfer of$339,714.24 of proceeds from the sale of 48475 Legacy Drive, La Quinta, CA 92253

from the bank account of Fidelity National Title in California to his JP Morgan Chase bank

account #x7468 in Oregon.

30. It was part of the conspiracy and material scheme to defraud that defendants

GEOFFREY S. WALSH and GREGORY B. WALSH knowingly failed to truthfully and

accurately disclose certain material facts to S.P. to make the statements made to her, in light of

Superseding Indictment Page 7


the circumstances under which they were made, not misleading. These material omissions

include, but are not limited to the following:

a. That the three condominium properties located at 48789 Legacy Drive, La Quinta,

CA 92253; 48475 Legacy Drive, La Quinta, CA 92253; and 77752 Tradition

Drive, Unit #232, La Quinta, CA 92253 would be titled not in her name, but in the

name of defendant GEOFFREY S. WALSH'S Oregon Limited Liability

Company, Terwilliger Curves LLC;

b. That in May 2012, defendant GEOFFREY S. WALSH would pledge the

condominium properties located at 48789 Legacy Drive, La Quinta, CA 92253

and 48475 Legacy Drive, La Quinta, CA 92253 as collateral for a $500,000 loan

from Oregon resident H.S.;

c. That defendant GEOFFREY S. WALSH would sell S.P.'s loan collateral located

at 48789 Legacy Drive, La Quinta, CA 92253 in May 2012, and sell S.P.'s loan

collateral located at 48475 Legacy Drive, La Quinta, CA 92253 in July 2012;

d. That defendant GEOFFREY S. WALSH would use the proceeds from the sale

of 48789 Legacy Drive, La Quinta, CA 92253 and 48475 Legacy Drive, La

Quinta, CA 92253 for his personal benefit and not to repay S.P. for her loan as

promised; and

e. That defendant GEOFFREY S. WALSH would continue to hold title to the

condominium property located at 77752 Tradition Drive, Unit #232, La Quinta,

CA 92253 in the name of his Oregon Limited Liability Company, Terwilliger

Curves LLC so that it could be used for his personal benefit.

Superseding Indictment PageS


31. It was part of the conspiracy and material scheme to defraud that in or about mid-

November 2012, defendant GREGORY B. WALSH sent a lulling email to S.P. falsely

representing to her, among other things, that the plan to purchase and flip condominiums in Palm

Springs, CA had been delayed by issues with the homeowners association and maintenance fees.

32. It was part of the conspiracy and material scheme to defraud that in or about

February and March 2013, defendants GEOFFREY S. WALSH and GREGORY B. WALSH

would obtain $2,000,000.00 ofS.P.'s funds by means ofmaterially false and fraudulent

pretenses, representations, and promises, and through omissions of material facts necessary to

make the statements made, in light of the circumstances in which they were made, not

misleading. Defendants' purpose in obtaining S.P.'s $2,000,000.00 was so that defendant

GEOFFREY S. WALSH could use the funds to pay his personal debts and financial

obligations.

33. It was part of the conspiracy and material scheme to defraud that in or about late

February 2013, defendant GREGORY B. WALSH contacted S.P. and told her of an

opportunity to invest in commercial property in Oregon. S.P. told defendant GREGORY B.

WALSH that she was not interested in any investment involving defendant GREGORY B.

WALSH'S brother, defendant GEOFFREY S. WALSH.


GREGORY B. WALSH falsely told S.P. that the loan did not involve defendant GEOFFREY

S. WALSH.

35. It was part of the conspiracy and material scheme to defraud that in or about

February 2013, defendant GREGORY B. WALSH sent an M.S.S.B. authorization form to S.P.



and told her to sign the form in blank in case she changed her mind about the investment. S.P.

signed the form in blank and returned it to defendant GREGORY B. WALSH.


GEOFFREY S. WALSH and GREGORY B. WALSH omitted disclosing to S.P. the material

fact that the $2,000,000.00 would be used to pay the personal debts and financial obligations of

defendant GEOFFREY S. WALSH.

3 7. It was part of the conspiracy and material scheme to defraud that on or about

March 1, 2013, defendant GREGORY B. WALSH falsely told S.P. that the terms of the

$2,000,000.00 loan would be the following: S.P. would receive a $25,000.00 fee; interest of

fifteen percent (15%); security in a piece of property in Oregon valued at between $5,000,000

and $7,000,000; repayment ofthe loan for Palm Springs properties with a 10% return on

investment or approximately $200,000 profit, and repayment of that loan in a week.


GEOFFREY S. WALSH and GREGORY B. WALSH caused to be sent to S.P. a "revised"

promissory note dated February 28, 2013, and signed by Timberline Hills Investors LLC

member G.S., promising to repay S.P. the principal amount of $2,000,000.00 at a rate of either

10 percent ( 10%) or 15 percent ( 15%) on or before May 1, 2013.


GEOFFREY S. WALSH and GREGORY B. WALSH omitted disclosing to S.P. the material

facts that defendant GEOFFREY S. WALSH was the guarantor ofthe promissory note, but that

he had no financial means to pay it.

40. It was part of the conspiracy and material scheme to defraud that between on or

about March 1, 2013, defendants GEOFFREY S. WALSH and GREGORY B. WALSH



caused the wire transfer of$2,000,000.00 ofS.P.'s funds from M.S.S.B. through M.S.D.W.

Bank, New York, NY to the account #x1667 ofB.R.S.K.G.D.H. at West Coast Bank, Portland,

OR.

41. It was part of the conspiracy and material scheme to defraud that between March

4, 2013 and July 2013, defendant GEOFFREY S. WALSH caused B.R.S.K.G.D.H. to engage

in numerous financial transactions on his behalf and for his benefit with the $2,000,000.00 taken

from S.P's account at M.S.S.B.


GEOFFREY S. WALSH and GREGORY B. WALSH never repaid S.P. the more than

$3,000,000.00 principal or any promised interest from the funds used for the purchase of Palm

Springs real estate or for the payment of defendant GEOFFREY S. WALSH's debts and

personal financial obligations.

All in violation of Title 18, United States Code, Section 1349.

COUNTS2-13 WIRE FRAUD

[18 u.s.c. § 1343]

1. The Grand Jury re-alleges each and every allegation in the Introduction and each

of the paragraphs of Count 1 of this Indictment and incorporates them by reference as if fully set

forth herein.

2. Beginning in at least March 2011, and continuing to the date of this Superseding

Indictment, in the District of Oregon and elsewhere, defendants GEOFFREY S. WALSH and

GREGORY B. WALSH knowingly devised and intended to devise a material scheme and artifice to

defraud S.P., and to obtain money and property from S.P. by means of materially false and fraudulent

pretenses, representations, and promises, and by knowingly failing to disclose material facts



necessary in order to make the statements made, in light of the circumstances under which they were

made, not misleading. The material scheme to defraud is more fully described in each of the

paragraphs set forth in Count 1 of this Superseding Indictment and are incorporated herein by this

reference.

3. On or about the dates set forth below, in the District of Oregon and elsewhere,

defendants GEOFFREY S. WALSH and GREGORY B. WALSH, aided and abetted by one

another, together with others known and unknown to the Grand Jury, for the purposes of

executing the aforementioned material scheme and artifice to defraud, and attempting to do so,

did knowingly transmit and cause to be transmitted in interstate commerce by means of wire

communications, signals, and sounds, that is, wire transfers of money across state lines, each

such use of the wires being a separate count of this Superseding Indictment as follows:

COUNT DATE FROM TO DESCRIPTION OF WIRE

2 03/03/2011 OREGON ARIZONA Email ofwire instructions for funds used to purchase property at 48789 Legacy Drive, La Quinta, CA 92253.

3 03/04/2011 NEW YORK CALIFORNIA Wire transfer of $373,624.87 for the purchase of property at 48789 Legacy Drive, La Quinta, CA 92253.

4 03/10/2011 OREGON ARIZONA Email of wire instructions for funds used to purchase property at 484 7 5 Legacy Drive, La Quinta, CA 92253.

5 03/11/2011 NEW YORK CALIFORNIA Wire transfer of $390,500.00 for the purchase of property at 48475 Legacy Drive, La Quinta, CA 92253.



6 03/16/2011 CALIFORNIA OREGON Wire Transfer of $47,780.75 from West Coast Escrow to The Bank of Oswego account #x8180 of GEOFFREYS. WALSH.

7 09/28/2011 OREGON CALIFORNIA Wire Transfer of $10,000.00 from Terwilliger Curves LLC account #x8180 at The Bank of Oswego to Executive One Escrow.

8 10/12/2011 OREGON ARIZONA Email ofwire instructions for the funds used to purchase property at 77752 Tradition Drive, Unit #232, La Quinta, CA 92253.

9 10/13/2011 NEW YORK CALIFORNIA Wire transfer of $376,779.84 for the purchase of property at 77752 Tradition Drive, Unit #232, La Quinta, CA 92253.

10 10/18/2011 CALIFORNIA OREGON Wire Transfer of $18,634.14 from Executive One Escrow to Terwilliger Curves LLC account #x8180 at The Bank of Oswego.

11 05/25/2012 CALIFORNIA OREGON Wire Transfer of $313,928.66 from Pacific Coast Escrow to JP Morgan Chase account #x7468 of GEOFFREYS. WALSH.



12 07/09/2012 CALIFORNIA OREGON Wire Transfer of $339,714.24 from Fidelity National Title to JP Morgan Chase account #x7468 of GEOFFREYS. WALSH.

13 03/01/2013 NEW YORK OREGON Wire Transfer of $2,000,000.00 from M.S.D.W. Bank to account#x1667inthe name of B.R.S.K.G.D.H. at West Coast Banlc

All in violation ofTitle 18, United States Code, Sections 1343 and 2.

COUNTS14THROUGH24 ENGAGING IN MONETARY TRANSACTIONS WITH

CRIMINALLY DERIVED PROPERTY [18 u.s.c. § 1957]

1. The Grand Jury re-alleges each and every allegation set forth in Counts 1 through

13 ofthis Superseding Indictment and incorporates them by reference as if fully set forth herein.

2. On or about the dates listed below, in the District of Oregon and elsewhere,

defendants GEOFFREY S. WALSH, aka GeoffWalsh, and others known and unknown to the

Grand Jury, did knowingly engage and attempt to engage in monetary transactions affecting

interstate or foreign commerce, in criminally derived property of a value greater than

$10,000.00, that is the purchase of cashier's checks, the making of wire transfers, and the

withdrawal of cash from bank accounts on the dates listed below, such property having been

derived from specified unlawful activity, that is the material wire fraud scheme described in

Counts 1 through 13 of this Superseding Indictment, each such monetary transaction being a

separate count of this Superseding Indictment:



COUNT DATE DESCRIPTION OF TRANSACTION

14 05109/2011 Purchase ofThe Bank of Oswego cashier's check #x4318 in the amount of$22,397.23, made payable to Wells Fargo Mortgage account #x8991.

15 0512912012 Purchase of JP Morgan Chase cashier's check #x8206 in the amount of $24,000.00, made payable to O.B.C.

16 0512912012 Purchase of JP Morgan Chase cashier's check #x8207 in the amount of $68,000.00, made payable to G. S.

17 0610112012 Purchase of JP Morgan Chase cashier's check #x7587 in the amount of$150,000.00, made payable to P.B.

18 0710912012 Purchase of JP Morgan Chase cashier's check #x7762 in the amount of$30,000.00, made payable to G.S.

19 0710912012 Wire transfer in the amount of$260,000.00 from JP Morgan Chase account #x7468 in the name of GEOFFREY S. WALSH and T.B.W. to account #x9124 in the name ofR.G. at U.S. Bank.

20 0310512013 Wire Transfer in the amount of$1,705,000.00 from account #x1667 in the name ofB.R.S.K.G.D.H. at West Coast Bank to account #x6856 in the name ofK.N.P. at U.S. Bank.

21 0310412013 Check #6312 in the amount of$118,158.16 written on account #x1667 in the name ofB.R.S.K.G.D.H. at West Coast Bank, made payable to B.R.S.K.G., et. al. for fees.

22 0411912013 Check #6384 in the amount of$100,000.00, written on account #x1667 in the name ofB.R.S.K.G.D.H at West Coast Bank, made payable to B.R.S.K., et. al. for "Fees; Geoff Walsh".

23 0412212013 Check #6389 in the amount of$35,000.00, written on account #x1667 in the name oflaw firm B.R.S.K.G.D.H. at West Coast Bank, made payable to Geoff Walsh for "Retainer Refund".

24 0413012013 Check #6393 in the amount of$15,000.00, written on account #x1667 in the name oflaw firm B.R.S. at West Coast Bank, made payable to Geoff Walsh for "Retainer Refund".

All in violation ofTitle 18, United States Code, Sections 1957 and 2. Ill

Ill

Ill

Ill



COUNTS25THROUGH29 WIRE FRAUD

[18 u.s.c. § 1343]

1. The Grand Jury re-alleges each and every allegation set forth in Counts 1 through

24 of this Superseding Indictment and incorporates them by reference as if fully set forth herein.

2. Beginning in or about May 2012, and continuing to the date of this Superseding

Indictment, in the District of Oregon and elsewhere, defendant GEOFFREY S. WALSH

knowingly devised and intended to devise a material scheme and artifice to defraud H.S., and to

obtain money and property from H.S. by means of materially false and fraudulent pretenses,

representations, and promises, knowing that the pretenses, representations, and promises were

false and fraudulent when made, and by knowingly failing to disclose material facts necessary in

order to make the statements made, in light of the circumstances under which they were made,

not misleading.

3. In or about May 2012, defendant GEOFFREY S. WALSH was introduced to

H.S. through a mutual friend.

4. It was part of the material scheme to defraud that in or about May 2012, defendant

GEOFFREY S. WALSH told H.S. that he (WALSH) needed to borrow $500,000 for the

purchase oftwo condominiums in California that were in foreclosure. WALSH promised to

repay $500,000 plus interest of $75,000 to H.S.

5. It was part of the material scheme to defraud that on May 3, 2012, defendant

GEOFFREY S. WALSH, acting on behalf of his Oregon limited liability company Terwilliger

Curves LLC, and H.S. acting on behalf of his limited liability company H.O.T. LLC, signed a

loan agreement and promissory note for $500,000.



6. Under the terms of the loan agreement and promissory note, defendant

GEOFFREY S. WALSH promised to repay to H.S. and H.O.T. LLC, the loan of$500,000 plus

interest of$75,000 in one lump-sum payment on November 30,2012.

7. Under the terms of the loan agreement, if any payment of principal or interest was

not paid within ten days of the due date, defendant GEOFFREY S. WALSH agreed to pay H.S.

a late fee of five percent (5%) ofthe past due amount, including the balance of all principal,

interest, late fees, costs and expenses due after default or at maturity.

8. Under the terms of the loan agreement, after default, defendant GEOFFREY S.

WALSH agreed to pay interest of two percent (2%) per month on the outstanding principal,

interest, expenses and costs of the loan.

9. Under the terms of the loan agreement, defendant GEOFFREY S. WALSH

falsely represented that the collateral for the promissory note was two recorded Trust Deeds for

real property located at 48475 Legacy Drive, La Quinta, California 92253 and at 48789 Legacy

Drive, La Quinta, California 92253.

10. Under the terms ofthe loan agreement, defendant GEOFFREY S. WALSH

falsely represented that all financial documents and information provided by GEOFFREY S.

WALSH to H.S. were true and correct, and fairly represented WALSH's financial condition.

11. Under the terms of the loan agreement, defendant GEOFFREY S. WALSH

falsely represented that the loan proceeds were to be used for business or commercial purposes

only.

12. As part of the material scheme to defraud, defendant GEOFFREY S. WALSH

failed to disclose to H.S., the following material facts necessary in order to make the statements

made, in light of the circumstances under which they were made, not misleading:



a. That on the day he signed the loan agreement, he (GEOFFREY S. WALSH) had

been fired from his job at Bank of Oswego the day before;

b. That he (GEOFFREY S.WALSH) was going to use the $500,000 loan proceeds

for his personal expenses rather than for business or commercial purposes, or for

the purchase of condominiums in California;

c. That the condominiums were not in foreclosure and in fact, were already owned

by defendant GEOFFREY S. WALSH and his Oregon Limited Liability

Company, Terwillliger Curves LLC;

d. That at the time the loan was made, defendant GEOFFREY S. WALSH had

already pledged the condominiums as collateral for a loan he received from an

individual with the initials S.P.;

e. That at the time the loan from H.S. was made, he (GEOFFREY S. WALSH) was

in negotiations to sell at least one of the condominiums that was the collateral for

H.S.'s $500,000 loan.

15. Based on defendant GEOFFREY S. WALSH'S false promises, representations,

misstatements and omissions of material facts, on or about May 3, 2012, H.S. agreed to make the

loan to defendant GEOFFREY S. WALSH, and issued a cashier's check to WALSH in the

amount of $500,000, drawn on Key Bank.

16. As part of the material scheme and artifice to defraud, on or about May 3, 2012,

defendant GEOFFREY S. WALSH had Key Bank personnel split the $500,000 cashier's check

into two cashier's checks in the amounts of$160,000 and $340,000. The cashier's check for

$340,000 was made payable to a company called AMC, and the cashier's check for $160,000

was made payable to defendant GEOFFREY S. WALSH.



. '

17. On or about May 3, 2012, defendant GEOFFREY S. WALSH deposited the

cashier's check for $160,000 to his personal bank account at U.S. Bank in Oregon.

18. As part ofthe material scheme and artifice to defraud, in or about May 2012,

defendant GEOFFREY S. WALSH sold the loan collateral located at 48789 Legacy Drive, La

Quinta, CA 92253, without the knowledge or consent ofH.S.

19. As part ofthe material scheme and artifice to defraud, in or about July 2012,

defendant GEOFFREY S. WALSH sold the loan collateral located at 48475 Legacy Drive, La

Quinta, CA 92253, without the knowledge or consent ofH.S.

20. It was part of the material scheme and artifice to defraud, that defendant

GEOFFREY S. WALSH failed to repay H.S. the $500,000 loan and the $75,000 interest on

November 30, 2012, as he had promised.

21. As part of the material scheme and artifice to defraud, defendant GEOFFREY S.

WALSH sent a series ofiMessages to H.S. from approximately November 2012 to July 2013,

the purpose of which were to lull H.S. into a false sense of security that he (WALSH) would

repay H.S. the loan principal, as well as the interest and penalties due on the loan.

22. On or about June 26, 2013, defendant GEOFFREY S. WALSH made a $300,000

lulling payment to H.S. after learning that H.S. had spoken to law enforcement authorities about

his (GEOFFREY S. WALSH'S) material scheme to defraud.

23. As of the date of this Superseding Indictment, defendant GEOFFREY S.

WALSH owes H.S. at least $200,000 plus interest and penalties on the loan.

24. On or about the dates listed below, in the District of Oregon and elsewhere,

defendant GEOFFREY S. WALSH, for the purpose of executing the aforementioned material

scheme and artifice to defraud, and attempting to do so, did knowingly transmit and cause to be



transmitted in interstate or foreign commerce, the following wire transmissions, each such use of

the wires being a separate count of this Superseding Indictment:

COUNT DATE DESCRIPTION OF WIRE FROM

25 05/04/2012 Electronic image of Key Bank OREGON cashier's check #x2082 in the amount of $160,000 made payable to Geoffrey Walsh

26 12/2112012 iMessage from GEOFFREY OREGON S. WALSH to H.S.

27 01/23/2013 iMessage from GEOFFREY OREGON S. WALSH to H.S.

28 02/0112013 iMessage from GEOFFREY OREGON S. WALSH to H.S.

29 04/12/2013 iMessage from GEOFFREY OREGON S. WALSH to H.S.


COUNTS 30 AND 31 ENGAGING IN MONETARY TRANSACTIONS WITH CRIMINALLY DERIVED PROPERTY

[18 u.s.c. § 1957]

TO

OREGON (via CA)

OREGON (via CA or NC) OREGON (via CA or NC) OREGON (via CA or NC) OREGON (via Florida)

1. The grand jury alleges each and every allegation contained in the Introduction and

each ofthe paragraphs of Counts 25 through 29 ofthis Superseding Indictment, and incorporates

them by reference as if fully set forth herein.

2. On or about the dates set forth below, in the District of Oregon and elsewhere, the

defendant GEOFFREY S. WALSH, aka Geoff Walsh, did knowingly engage and attempt to

engage in monetary transactions affecting interstate and foreign commerce, in criminally derived

property of a value greater than $10,000, that is, the withdrawal of proceeds of specified



unlawful activity, that is wire fraud, for the issuance of cashier's checks in the amounts listed

below, each such monetary transaction being a separate count of this Indictment:

COUNT DATE DESCRIPTION OF TRANSACTION

30 05/04/2012 Purchase of cashier's check #x5265 in the amount of$29,000 drawn on U.S. Bank, made payable to J.S.

31 05/07/2012 Purchase of cashier's check #x5806 in the amount of$71,652.98 drawn on U.S. Bank, made payable to G.S.


COUNT32 MAKING FALSE STATEMENTS ON LOAN APPLICATION

AND AIDING AND ABETTING [18 u.s.c. §§ 1014, 2]

1. Between on or about July 13,2006 and August 3, 2007, defendant GEOFFREY

S. WALSH, aka Geoff Walsh (hereinafter referred to as defendant GEOFFREY

S. WALSH), was a loan officer at the Lake Oswego Branch of Golf Savings Bank, Lake

Oswego, Oregon.

2. Golf Savings Bank was a financial institution, the deposits of which were at all

times material to Count 28 of this Indictment, insured by the Federal Deposit Insurance

Corporation (FDIC).

3. Sterling Savings Bank is a financial institution, the deposits of which were at all

times material to Count 28 of this Indictment, insured by the Federal Deposit Insurance

Corporation (FDIC). On or about September 16, 2010, Golf Savings Bank became Sterling

Savings Bank.



4. On or about June 20,2007, in the District of Oregon, defendant GEOFFREY S.

WALSH knowingly made false statements, and aided and abetted the making of those false

statements, for the purpose of influencing the actions of Golf Savings Bank, now known as

Sterling Savings Bank, a financial institution whose deposits at the time were insured by the

Federal Deposit Insurance Corporation (FDIC), in connection with a Uniform Residential Loan

Application (URLA) submitted on behalf of bank customers J.T.M. and N.M.M., in that the

defendant GEOFFREY S. WALSH falsely stated on the J.T.M. and N.M.M. Uniform

Residential Loan Application (URLA) that J.T.M. had a monthly salary of$35,000, when in

truth and in fact, defendant GEOFFREY S. WALSH then and there well knew that J.T.M. did

not have a monthly salary of $35,000.

All in violation of Title 18, United States Code, Sections 1014 and 2.

FORFEITURE ALLEGATIONS

1. Upon conviction of one or more of the offense alleged in Counts 1-13 of this

Superseding Indictment, GEOFFREY S. WALSH, aka GeoffWalsh, and GREGORY B.

WALSH, defendants herein, shall forfeit to the United States, pursuant to Title 18, United States

Code, Section 982(a)(2)(A), any property constituting or derived from proceeds, obtained

directly or indirectly, as a result of the violation.

2. Upon conviction of one or more of the offenses alleged in Counts 14-24 and

Counts 30 and 31 ofthis Superseding Indictment, GEOFFREY S. WALSH, aka GeoffWalsh,

defendant herein, shall forfeit to the United States, pursuant to Title 18, United States Code,

Section 982(a)(1), any property, real or personal, involved in the offense or any property

traceable to such property.



3. Upon conviction of one or more of the offense alleged in Counts 25-29 of this

Superseding Indictment, GEOFFREY S. WALSH, aka Geoff Walsh, defendant herein, shall

forfeit to the United States, pursuant to Title 18, United States Code, Section 981(a)(1)(C) and

Title 28, United States Code, Section 2461(c), any property, real or personal, constituting or

derived from proceeds, obtained directly or indirectly, as a result of the violation.

4. Upon conviction of one or more of the offense alleged in Count 32 of this

Superseding Indictment, GEOFFREY S. WALSH, aka GeoffWalsh, defendant herein, shall

forfeit to the United States, pursuant to Title 18, United States Code, Section 982(a)(2)(A), any

property constituting or derived from proceeds, obtained directly or indirectly, as a result of the

violation.

If any of the above-described forfeitable property, as a result of any act or omission ofthe

defendants:

Ill

Ill

Ill

Ill

I I I

Ill

Ill

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

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

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

(d) has been substantially diminished in value; or



(e) has been commingled with other property which cannot be divided without

difficulty; it is the intent ofthe United States, pursuant to Title 21, United States Code, Section

853(p) as incorporated by Title 18, United States Code, Section 982(b ), to seek forfeiture of any

other property of said defendants up to the value of the forfeitable property described above.

Dated this /)day of January, 2014.

Presented by:

S. AMANDA MARSHALL, OSB #9534 73 United States Attorney District of Oregon

CL~~~ Assistant United States Attorney

Superseding Indictment

A TRUE BILL.

Page 24


Documents

v. u.s.c. - oregonlivemedia.oregonlive.com/money_impact/other/Walsh superseding...WALSH, aka Geoff Walsh, and GREGORY B. WALSH, conspired and agreed with one another, and with others