The opinion of the court was delivered by: Amy J. St. Eve, District Court Judge
MEMORANDUM OPINION AND ORDER
Pursuant to Federal Rule of Criminal Procedure 12(b)(3)(B), Defendant
Brian Hollnagel ("Hollnagel") and Defendant BCI Aircraft Leasing, Inc.
("BCI") have filed a motion to dismiss Counts Two through Eleven of
the Superseding Indictment as duplicitous. Specifically, Hollnagel and
BCI allege that these counts are duplicitous because they fail to
charge Defendants with participating in one unitary scheme.*fn1
For the reasons discussed below, the Court denies the motion.
On September 8, 2010, a grand jury returned a twenty-one count superseding indictment (the "Superseding Indictment") naming seven individual defendants -- Brian Hollnagel, Craig Papayanis, Jason R. Hyatt, William Hatamyar, Jeffrey Meyer, Martin Collier, Robert Carlsson -- and one corporate defendant, BCI Aircraft Leasing, Inc. The Superseding Indictment charges wire fraud, in violation of 18 U.S.C. § 1343 (counts one through eleven); false statements in connection with an application to obtain a loan and a line of credit, in violation of 18 U.S.C. § 1014 (count twelve); bribery or attempted bribery in an attempt to influence the business and transactions of Bridgeview Bank, in violation of 18 U.S.C. § 215(a)(1) (counts thirteen and fourteen); obstruction of justice, in violation of 18 U.S.C. § 1512 (counts fifteen through seventeen, and nineteen); and perjury, in violation of 18 U.S.C. § 1623 (count eighteen). The sixty-five page Superseding Indictment also contains forfeiture allegations.
Defendants' motion pertains to Counts Two through Eleven of the Superseding Indictment. Count Two charges Defendants Hollnagel, BCI Aircraft, Papayanis, Hyatt, Hatamyar, Meyer, and Collier with a long-term scheme to defraud investors and financial institutions of money and property through, among other things, bribe payments to obtain loans, misrepresentations regarding investments, misappropriation of money raised for particular purposes, commingling of funds, and concealment efforts, including the creation and production of allegedly fraudulent court ordered accountings and the deletion of data from hard drives that had been subpoenaed by the Securities and Exchange Commission ("SEC"). Count Two alleges a long-term fraudulent financing scheme to defraud investors, financial institutions, and others from 2000 to mid-February 2009.
Counts Two through Eleven charge separate wire transactions in furtherance of the fraud scheme charged in Count Two. These counts are summarized as follows:
Count Number Charge Defendants Date/Contents of Wire Transaction
II Wire Fraud-violating Hollnagel $1,200
Papayanis Meyer December 1, 2005
III Wire Fraud-violating Hollnagel $1,100
Papayanis Meyer February 2, 2006
IV Wire Fraud-violating Hollnagel $294,500
Papayanis September 28, 2005
V Wire Fraud-violating Hollnagel $80,000
Papayanis January 13, 2006
VI Wire Fraud-violating Hollnagel $500,000
Papayanis Hyatt October 25, 2005
VII Wire Fraud-violating Hollnagel $300,000
Papayanis Hyatt September 27, 2005
VIII Wire Fraud-violating Hollnagel Email Analysis of 2004-5 Investments & Analysis
18 USC 1343 § 2 BCI of 2004-6 Investments
IX Wire Fraud-violating Hollnagel Email Amended Analysis of 2004-5 Investments
Collier September 17, 2007
X Wire Fraud-violating Hollnagel $1,182,400.67