Anda di halaman 1dari 13

Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 1 of 11

IN THE UNITED STATES DISTRICT COURT


FOR THE DISTRICT OF COLORADO

Criminal Case No.

UNITED STATES OF AMERICA,

Plaintiff,

v.

1. BRENDA L. STEWART,

Defendant.

_____________________________________________________________________

INDICTMENT
26 U.S.C. § 7201 (Tax Evasion)
18 U.S.C. § 1952 (Use of Interstate Commerce Facility in Aid of Racketeering)
18 U.S.C. § 1512 (Witness Tampering)
18 U.S.C. § 1956 (Money Laundering)
_____________________________________________________________________

The grand jury charges that:

COUNT 1
(Tax Evasion)

1. Beginning on or about January 1, 2005, and continuing through on or about April

17, 2006, in the District of Colorado, the defendant, Brenda L. Stewart, then a

resident of Denver, Colorado, did willfully attempt to evade and defeat income tax

due and owing to the United States for the calendar year 2005. Stewart earned

this income on which tax was due and owing from a prostitution business known

as Denver Sugar/Denver Players (“Sugar/Players”), first through working as a

prostitute for Sugar/Players and later through purchasing and then operating

Sugar/Players. Stewart committed affirmative acts of evasion including but not

limited to the following:


Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 2 of 11

a. In or about April, 2005, Stewart created a company called Phoenix Media

and Consulting LLC (“Phoenix Media”). Stewart used this company and a

bank account opened in its name to receive and disburse money rather

than using entities or accounts in the name of Sugar/Players;

b. From on or about May 1, 2005, and continuing through on or about

December 31, 2006, Stewart made installment payments to the former

owner of Sugar/Players, S.E., using cash proceeds from Sugar/Players

that had not been deposited into any bank account;

c. From on or about May 1, 2005, and continuing through on or about April

17, 2006, Stewart failed to provide the employees of Sugar/Players with

Forms 1099 or other required tax documents;

d. On or about April 17, 2006, Stewart filed a filed a false Form 1040

individual income tax return. This return was false in numerous ways,

including that it failed to report income she receive while working as a

prostitute for Sugar/Players, failed to report any cash income she received

while owning and operating Sugar/Players, and incorrectly characterized

the source of her income as the media consulting business reportedly

conducted by Phoenix Media.

The foregoing was in violation of Title 26, United States Code, Section 7201.

COUNT 2
(Tax Evasion)

2. Beginning on or about January 1, 2006, and continuing through on or about April

16, 2007, in the District of Colorado, the defendant, Brenda L. Stewart, then a

2
Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 3 of 11

resident of Denver, Colorado, did willfully attempt to evade and defeat income tax

due and owing to the United States for the calendar year 2006 on income

Stewart earned from Sugar/Players. Stewart committed affirmative acts of

evasion including but not limited to the following:

a. Stewart used Phoenix Media and a bank account opened in its name to

receive and disburse money rather than using entities or accounts in the

name of Sugar/Players;

b. From on or about January 1, 2006, and continuing through on or about

May 26, 2006, Stewart made installment payments to the former owner of

Sugar/Players, S.E., using cash proceeds from Sugar/Players that had not

been deposited into any bank account;

c. From on or about January 1, 2006, and continuing through on or about

April 16, 2007, Stewart failed to provide the employees of Sugar/Players

with Forms 1099 or other required tax documents;

d. Stewart failed to file an individual tax return for the 2006 calendar year.

The foregoing was in violation of Title 26, United States Code, Section 7201.

COUNTS 3-29
(Use of Interstate Commerce Facility in Aid of Racketeering)

3. On or about the date listed below for each count, in the District of Colorado and

elsewhere, the defendant, Brenda L. Stewart, did use a facility in interstate

commerce, namely, an interstate wire communication facility, with intent to

distribute the proceeds of unlawful activity listed below for each count, namely,

prostitution offenses committed in Colorado in violation of Colorado Revised

3
Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 4 of 11

Statutes Sections 18-7-203(1)(b), 18-7-204(1)(a), and 18-7-206, by causing the

transfer of the proceeds listed below for each count to the Phoenix Media and

Consulting Account # XXXXX9506 at Community Bank of Colorado in Denver,

Colorado :

Count Date Originating Bank Amount


3 12/06/2005 Bank of America, Charlotte, NC 1,544.17
4 12/13/05 Bank of America, Charlotte, NC 1,520.03
5 12/27/05 Bank of America, Charlotte, NC 1,520.04
6 02/01/06 Bank of America, Charlotte, NC 2,074.97
7 02/24/06 Banc Corp South Bank, Tupelo, MS 3,136.58
8 03/13/06 Banc Corp South Bank, Tupelo, MS 1,640.67
9 03/13/06 JPMorgan Chase, Columbus, OH 2,800.00
10 03/20/06 Banc Corp South Bank, Tupelo, MS 2,364.49
11 03/28/06 Banc Corp South Bank, Tupelo, MS 3,739.76
12 04/05/06 Bank of America, Charlotte, NC 1,592.32
13 04/24/06 Banc Corp South Bank, Tupelo, MS 1,544.16
14 05/09/06 Banc Corp South Bank, Tupelo, MS 1,592.35
15 05/16/06 Banc Corp South Bank, Tupelo, MS 1,592.25
16 06/12/06 Banc Corp South Bank, Tupelo, MS 2,243.82
17 06/19/06 Banc Corp South Bank, Tupelo, MS 2,243.86
18 06/30/06 Banc Corp South Bank, Tupelo, MS 2,412.69
19 07/13/06 Bank of America, Charlotte, NC 2,123.18
20 07/18/06 Banc Corp South Bank, Tupelo, MS 1,544.10
21 09/16/06 Bank of America, Charlotte, NC 1,543.99
22 09/26/06 Banc Corp South Bank, Tupelo, MS 1,519.96
23 10/30/06 JPMorgan Chase, Columbus, OH 2,125.00

4
Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 5 of 11

24 10/30/06 Banc Corp South Bank, Tupelo, MS 2,822.78


25 11/07/06 Banc Corp South Bank, Tupelo, MS 3,329.56
26 11/09/06 Banc Corp South Bank, Tupelo, MS 3,860.40
27 11/14/06 Banc Corp South Bank, Tupelo, MS 2,171.44
28 11/20/06 Bank of America, Charlotte, NC 2,605.77
29 12/12/06 Banc Corp South Bank, Tupelo, MS 3,257.21

The foregoing was in violation of Title 18, United States Code, Sections

1952(a)(1) and 2.

COUNT 30
(Use of Interstate Commerce Facility in Aid of Racketeering)

4. Between on or about August 2, 2005, and on or about January 28, 2008, in the

District of Colorado and elsewhere, the defendant, Brenda L. Stewart, did use a

facility in interstate commerce with intent to promote, manage, establish, carry

on, and facilitate the promotion, management, establishment, and carrying on of

unlawful activity, namely, prostitution offenses committed in Colorado in violation

of Colorado Revised Statutes Sections 18-7-203(1)(b), 18-7-204(1)(a), and 18-7-

206, by maintaining and causing the maintenance of the websites

www.denversugar.com and www.denverplayers.com.

The foregoing was in violation of Title 18, United States Code, Sections

1952(a)(3) and 2.

COUNT 31
(Witness Tampering)

5. On or about January 28, 2008, in the District of Colorado, the defendant, Brenda

L. Stewart, corruptly attempted to persuade another person with intent to cause

5
Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 6 of 11

and induce that person to alter, destroy, and mutilate objects with intent to impair

the objects’ integrity and availability for use in an official proceeding, in that she

asked M.K., the person she paid to maintain the websites www.denversugar.com

and www.denverplayers.com, to permanently delete those websites.

The foregoing was in violation of Title 18, United States Code, Section

1512(b)(2)(B).

COUNTS 32-70
(Money Laundering)

6. On or about the date listed below for each count, in the District of Colorado and

elsewhere, the defendant, Brenda L. Stewart, did knowingly conduct and

attempt to conduct a financial transaction affecting interstate and foreign

commerce, that is, the deposit of funds from the Phoenix Media and Consulting

LLC account number XXXXX9506 at Community Banks of Colorado into an

account in the name of Brenda L. Stewart, as listed below for each count, which

involved the proceeds of a specified unlawful activity, that is, use of interstate

commerce facilities in aid of racketeering activity as described in Counts 3-29,

knowing that the transaction was designed in whole and in part to conceal and

disguise the nature and source of the proceeds of said specified unlawful activity

and, while conducting and attempting to conduct each financial transaction, knew

that the property involved in each financial transaction represented the proceeds

of some form of unlawful activity:

Count Date Financial Transaction


32 11/23/2005 Deposit of Check No. 1097, in the amount of $2,000, into

6
Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 7 of 11

Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of


Denver
33 12/24/2005 Deposit of Check No. 1129, in the amount of $1,000, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
34 02/10/2006 Deposit of Check No. 1160, in the amount of $500, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
35 02/27/2006 Deposit of Check No. 1316, in the amount of $2,700, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
36 03/31/2006 Deposit of Check No. 1346, in the amount of $893.14 into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
37 04/07/2006 Deposit of Check No. 1362, in the amount of $10,000, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
38 04/09/2006 Deposit of Check No. 1358, in the amount of $912.13, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
39 04/16/2006 Deposit of Check No. 1368, in the amount of $912.13, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
40 04/18/2006 Deposit of Check No. 1369, in the amount of $2,000, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
41 04/23/2006 Deposit of Check No. 1374, in the amount of $912.13, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
42 04/27/2006 Deposit in the amount of $912.14, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver
43 05/04/2006 Deposit in the amount of $912.14, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver
44 05/12/2006 Deposit in the amount of $912.12, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver

7
Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 8 of 11

45 05/18/2006 Deposit in the amount of $912.14, into Brenda L. Stewart


account no. XXXXXX0553 at 1st Bank of Denver
46 05/27/2006 Deposit of Check No. 1413, in the amount of $1,080.77, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
47 06/21/2006 Deposit in the amount of $1,080.76, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver
48 07/03/2006 Deposit of Check No. 1455, in the amount of $1,080.76, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
49 07/10/2006 Deposit in the amount of $1,080.76, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver
50 07/13/2006 Deposit in the amount of $1,080.77, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver
51 07/25/2006 Deposit of Check No. 1486, in the amount of $1,080.76, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
52 07/25/2006 Deposit of Check No. 1487, in the amount of $1,080.78, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
53 08/03/2006 Deposit in the amount of $1,080.77, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver
54 08/15/2006 Deposit of Check No. 1511, in the amount of $1,080.76, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
55 08/22/2006 Deposit of Check No. 1516, in the amount of $1,080.77, into
Brenda L. Stewart account no. XXXXXX0553 at 1st Bank of
Denver
56 08/24/2006 Deposit in the amount of $1,080.76, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver
57 08/31/2006 Deposit in the amount of $1,080.78, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver
58 09/07/2006 Deposit in the amount of $1,080.76, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver

8
Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 9 of 11

59 09/15/2006 Deposit in the amount of $1,080.77, into Brenda L. Stewart


account no. XXXXXX0553 at 1st Bank of Denver
60 09/21/2006 Deposit in the amount of $1,080.76, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver
61 09/28/2006 Deposit in the amount of $1,080.78, into Brenda L. Stewart
account no. XXXXXX0553 at 1st Bank of Denver
62 10/30/2006 Deposit of $742.50 into Brenda L. Stewart account no.
XXXXXX8493 at Compass Bank
63 11/02/2006 Deposit of $1,080.77 into Brenda L. Stewart account no.
XXXXXX8493 at Compass Bank
64 11/10/2006 Deposit of $1,080.76 into Brenda L. Stewart account no.
XXXXXX8493 at Compass Bank
65 11/17/2006 Deposit of $1,080.77 into Brenda L. Stewart account no.
XXXXXX8493 at Compass Bank
66 11/27/2006 Deposit of Check No. 1629, in the amount of $1,080.77 into
Brenda L. Stewart account no. XXXXXX8493 at Compass
Bank
67 12/13/2006 Deposit of Check No. 1663, in the amount of $800 into
Brenda L. Stewart account no. XXXXXX8493 at Compass
Bank
68 12/14/2006 Deposit in the amount of $404.75, into Brenda L. Stewart
account no. XXXXXX8493 at Compass Bank
69 12/21/2006 Deposit in the amount of $404.75, into Brenda L. Stewart
account no. XXXXXX8493 at Compass Bank
70 12/28/2006 Deposit in the amount of $404.75, into Brenda L. Stewart
account no. XXXXXX8493 at Compass Bank

The foregoing was in violation of Title 18, United States Code, Sections

1956(a)(1)(B)(i) and 2.

Notice of Forfeiture

7. The allegations contained in Counts 3-30 and 32-70 of this Indictment are re-

alleged and incorporated by reference for the purpose of alleging forfeiture

9
Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 10 of 11

pursuant to the provisions of Title 18, United States Code, Sections 981(a)(1)(C),

982(a)(1), 1956(c)(7), and 1961(1)(B), and Title 28, United States Code, Section

2461(c).

8. Upon conviction of one or more of the offenses alleged in Counts 3-30 of this

indictment, the defendant, Brenda L. Stewart, shall forfeit to the United States

pursuant to Title 18, United States Code, Sections 981(a)(1)(C), 1956(c)(7), and

1961(1)(B), and Title 28, United States Code, Section 2461(c), all property

constituting or derived from proceeds traceable to the commission of the

offense(s), including but not limited to a sum of money equal to $60,465.55 in

United States currency.

9. Upon conviction of one or more of the offenses alleged in Counts 32-70 of this

indictment, the defendant, Brenda L. Stewart, shall forfeit to the United States

pursuant to Title 18, United States Code, Section 982(a)(1), all property involved

in or traceable to property involved in such offense(s), including but not limited to

a sum of money equal to $49,850.16 in United States currency.

10. If any of the property described above, as a result of any act or omission of the

defendant:

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 substantially diminished in value; or

d. has been commingled with other property which cannot be divided without

difficulty;

10
Case 1:10-cr-00580-JLK Document 1 Filed 11/17/10 USDC Colorado Page 11 of 11

it is the intent of the United States, pursuant to Title 18, United States Code,

Section 982(b)(1) and Title 28, United States Code, Section 2461(c),

incorporating Title 21, United States Code, Section 853(p), to seek forfeiture of

any other property of the defendant up to the value of the forfeitable property

described above.

A TRUE BILL:

Ink signature on file in the Clerk’s Office


FOREPERSON

JOHN F. WALSH
United States Attorney

s/ Matthew T. Kirsch
By: Matthew T. Kirsch
Assistant U.S. Attorney
1225 Seventeenth Street, Suite 700
Denver, CO 80211
Telephone: 303-454-0100
Facsimile: 303-454-0402
Email: matthew.kirsch@usdoj.gov
Attorney for the Government

11
Case 1:10-cr-00580-JLK Document 1-1 Filed 11/17/10 USDC Colorado Page 1 of 2

(Rev. 04/05)

DEFENDANT: BRENDA L. STEWART

YOB: 1975

ADDRESS: Denver, CO

COMPLAINT FILED? YES X NO

IF YES, PROVIDE MAGISTRATE CASE NUMBER:


IF NO, PROCEED TO “OFFENSE” SECTION

HAS DEFENDANT BEEN ARRESTED ON COMPLAINT? YES NO


IF NO, A NEW WARRANT IS REQUIRED

OFFENSE: Counts 1-2: 26 U.S.C. § 7201, Tax evasion.


Counts 3-30: 18 U.S.C. § 1952(a)(1), Use of interstate
communication facility in aid of racketeering.
Count 31: 18 U.S.C. § 1512(b)(2)(B), Witness tampering.
Counts 32-70: 18 U.S.C. § 1956(a)(1)(B)(i) , Money laundering.

LOCATION OF OFFENSE: Denver County, CO

PENALTY: Counts 1-2: NMT 5 years of imprisonment, a fine of NMT the


greater of $250,000 or 2x the gain or loss from
offense (plus costs of prosecution), or both; NMT 3
years of supervised release; $100 special
assessment fee.
Counts 3-30: NMT 5 years of imprisonment, a fine of NMT
$250,000, or both; NMT 3 years of supervised
release; $100 special assessment fee.
Count 31: NMT 20 years of imprisonment, a fine of NMT
$250,000 or both; NMT 3 years of supervised release;
$100 special assessment fee.
Counts 32-70: NMT 20 years of imprisonment, a fine of NMT
$500,000, or both; NMT 3 years of supervised
release; $100 special assessment fee.

Forfeiture Allegation: Forfeiture of the property listed in the


indictment.

AGENT: Chad Eichelberger, IRS-CID


Case 1:10-cr-00580-JLK Document 1-1 Filed 11/17/10 USDC Colorado Page 2 of 2

AUTHORIZED BY: Matthew T. Kirsch


Assistant U.S. Attorney

ESTIMATED TIME OF TRIAL:

five days or less x over five days other

THE GOVERNMENT

will seek detention in this case X will not seek detention in this case

The statutory presumption of detention is not applicable to this defendant.

OCDETF CASE: Yes X No