Case: 2:15-cr-00003-EAS Doc #: 1 Filed: 12/10/14 Page: 1 of 11 PAGEID #: 1 AO 91 (Rev. il/Il) Criminal Complaint
UNITED STATES DISTRICT COURT
for the Southern District of Ohio United States of America
Jason Wade Cox
-5403 Golden Cascade
)Dublin, OH 43016
I, the complainant in this case, state that the following is true to the best of my knowledge and belief.
On or about the date(s) of January 3, 2014-March 30, 2014 in the county of Franklin in the Southern District of Ohio ,the defendant(s) violated:
Code Section OffenseDescription
31 U.S.C. §5324(a)f3) Structured and Assisting in structuring transactions to evade currency
This criminal complaint is based on these facts:
See AttachedAffidavit of IRS SA Anne Nightingale.
i( Continued on the attached sheet.
Anne Nightingale, Special Agent
Printed name and title
Sworn to before me and signed in my presence.
City and state: Columbus, OH Norah McCann King, United States MagistrateJudg
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AFFIDAVIT OF ANNE MGHTINGALE INTRODUCTION
1. I am a Special Agent with the Criminal Investigation Division of the internal Revenue Service
(IRS), United States Departurent of the Treasury, and have been so employed since September of 2008. I have a Bachelor’s degree in Business Administration and completed Post-Graduate courses in Fraud Examination, Accounting and Ethics, and Federal Tax. In May 2009, 1 completed the required Special Agent training at the federal Law Enforcement Training Center in Glynco, Georgia. I have received extensive training in financial investigative techniques to include the laws of search and seizure and the use of search and seizure warrants. Prior to September 2008, 1 was employed as an Anti-Money Laundering Investigator at Huntington National Bank. I have personally conducted and/or participated in numerous investigations of persons and businesses that have violated Federal statutes, particularly those statutes found in Title 26, Title 31 and Title 18 ofthe United States Code.
2. Based upon the facts detailed in this Affidavit, and my training and experience, I believe there is probable cause that in the Southern District of Ohio, Jason Wade Cox (hereinafter “Cox”), a Imowledgable financial advisor, structured cash transactions, through a series of cash withdrawals from a bank account in the name of a vulnerable, developmentally delayed individual (hereinafter the “Victim”) to prevent the bank from filing required Currency Transaction Reports (“CTRs”), all in violation of 31 U.S.C.
3. Title 31, U.S.C. §53 13 requires financial institutions to file a Currency Transaction Report
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by, through, or to such financial institutions. Many individuals who want to hide their transactions from the government or others actively attempt to prevent financial institutions from fifing CTR’s. This practice is commonly referred to as structuring and involves making multiple cash withdrawals andlor deposits in amounts equal to or less than $10,000. This activity represents a criminal violation of Title 31 U.S.C. §5324(a)(3).
4. In or about early 2012, the Victim’s father (hereinafler RCY) and the Victim, met with Ccx
while he was working as a financial Advisor at Edward Jones, a nationwide financial services flim, in Columbus, Ohio. RCY transferred a large amount of funds to an Edward Jones account with his daughter as beneficiary upon his death. On or about December 6, 2012, RCY died. The Victim, a woman in her SOs whose mother and only sibling were also deceased, was the sole heir of RCY’s estate. According to several relatives, the Viclim was born with several birth defects and she is mentally impaired. One relative recalled that she was placed in a Special Education Program in high school, but that her father refused to seek any government income or benefits for her. furthermore, it was believed by the Victim’s relatives and by the Executor of RCY’s estate, that the Victim’s inheritance were to be deposited into the previously opened Edward Jones accounts. Cox was misted by the father to manage all of the funds for his developmentally impaired daughter.
The inherited funds were not deposited into the Edward Jones account, but into the Victim’s
personal checking account. Checks were written on that account paying approximately $160,450.00 to Cox personally. At the time, Cox was still working at Edward Jones as the Victim’s Financial Advisor, in addition, all of the money from the Victim’s prior Edward Jones account was transferred into an account in the Victim’s name at Woodforect National Bank (hereinafter ‘Woodforest Bank”) located in central Ohio. Thereafter, a series of cash withdrawals in the total
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amount of $118,000 were made in amounts just under the CTR threshold. According to the Victim, Cox drove her to her bank to withdraw the cash from her account and Cox sat in the car while she conducted the cash withdrawal transactions. The Victim informed agents that she gives Cox money to help him out with Ms business, but she does not know what Cox’s business does. Based upon the facts that are detailed throughout this Affidavit, it is believed there is probable cause that Cox structured and assisted in structuring cash withdrawals with one or more domestic financial institutions in 31 U.S.C.
5. Cox was hired by Edward Jones as a Financial Advisor in or about June 2010. Cox
operated out of the Edward Jones branch location on Riverside Drive in Upper Arlington, Ohio.
6. In or about early 2012, RCY entered the Edward Jones Branch on Riverside Drive in Upper
Arlington, Ohio, and met with Cox. RCY also brought his adult daughter, the Victim, and RCY opened several accounts at Edward Jones in his name and the Victim’s name. In the event that RCY died, the Victim was to receive the fimds in the Edward Jones accounts.
7. On or about December 6, 2012, RCY died. The Executor of RCY’s Estate (hereinafter the
Executor) is an attorney based out of central, Ohio and he was appointed as the Executor of RCY’ s Estate shortly after RCY’ s death. According to the Executor, the Victim was the sole heir of RCY’s estate and she had little understanding of financial matters. For example, she lost her ability to drive for a while because she did not understand that she had to pay for insurance. The Victim was not employed and had no known government benefits or income. RCY trusted Edward Jones’ financial advisor, Cox, to manage his money for his daughter’s benefit, but there was no known trust or guardianship for her.
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8. The Executor of RCY’s Estate had never metRCY. AfterRCYdied, theExecutormetwith the Victim several times. The Executor realized that the Victim relied on RCY a lot when he was alive. The Executor had difficulty getting the Victim to understand that she needed to pay RCY’s creditors and that he needed to use funds in RCY’s estate to pay those
debts.Duringtwo or three of his meetings with the Victim, Cox was present and appeared to be somewhat of a confidant for the Victim.
9. The Executor spoke to Cox without the Victim present on several occasions. The Executor
and Cox had discussions about the importance of ensuring that the funds the Victim received from RCY’s estate would last her for as long as possible. The Executor knew that if the Victim was not careful about how the money she received was spent, she would have financial struggles.
10. The Executor knew that Cox was entrusted to give the Victim financial advice and help her
finances last. The Executor believed that the Victim was going to put the funds she received from RCY’s estate into the Edward Jones accounts and the Executor thought that was a good idea. According to the Executor, the Victim trusted Ccx.
11. Approximately one month after RCY’s death, the Victim began to receive numerous wires
from RCY’s Edward Jones accounts, which were deposited into the Victim’s personal account, number )0CXXX6350, at JPMorgan Chase Bank (Chase Bank) located in Columbus, Ohio. Once the funds were received, a series of large dollar checks payable to Cox were issued. At that time, he was still representing the Victim as her Edward Jones Financial Advisor. Cox cashed the checks or deposited them into personal checking
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about November 7, 2013, Cox received nineteen (19) checks from the Victim totalling approximately $160,450.00.
12. Chase bank personnel spoke to the Victim about the checks she issued payable to Cox. The
Victim told bank personnel that she received the money from RCY’s estate and that she and Cox were business partners. When bank personnel inquired about their business, the Victim could not provide an explanation about what type of business she invested in. Due to the high risk and suspicious nature of the account activities, Chase Bank closed Cox’s and the
Victim’s bank accounts at Chase bank on February 19, 2013 and November 26, 2013,
13. On or about January 5, 2012, Cox opened personal checking account, number
)00000C7881, at Woodforest National Bank (Woodforest Bank). Cox is listed as the sole
account signatory and an employee with Edward Jones. On January 7, 2013, Cox deposited a $30,000 check (number 109) issued from the Victim’s Chase Bank account, number
)OOCXX65O. Within the next three months, Cox withdrew approximately $25,991.00 in cash. Cox also conducted several ATM withdrawals totaling approximately $7,417 and the majority of the ATM withdrawals occurred at the Hollywood Casino located in Columbus, Ohio.
14. After the Victim’s Chase Bank account, number )000CX6350, was closed in November
2013, the Victim opened personal checking account, number XXX)00C3 505, at Woodforest Bank on or about December 11, 2013. From on or about December 11, 2013 through on or about April 29, 2014, over $145,000.00 was deposited into the Victim’s Woodforest Bank checking account. The majority of the deposited funds were incoming wires from the Edward Jones accounts in the name of RCY or the Edward Jones accounts that RCY set up
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for the Victim. Oncethe funds were received, a series of cash withdrawals in the total amount of approximately $11 $,000 were made, many in amounts just under the CTR threshold. These amounts ranged from $1,000.00 to $8,500.00, and several were conducted on consecutive days in a manner indicative of attempting to evade the filing of a CTR. In fact, on two different occasions, the Victim, with the assistance of Cox, went to one
Woodforest Bank branch and withdrew approximately $8,000 in cash and then a short time later they drove to a different Woodforest Bank branch and conducted a second cash withdrawal. On those occasions, the total of the two cash withdrawals in a single day aggregated over the CTR threshold, but appeared to be conducted in a manner to evade the reporting requirements. The structured cash withdrawal transactions are detailed below in TABLE A:
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Title31 U.S.C. §5324(a)(3)-CashWithdrawals
Woodforest Bank AccountXXXXXX35O5
Date Transaction Amount Branch
0110312014 Cash Withdrawal $ (7,000.00) 429 01/04/2014 Cash Withdrawal
$(8,000.00) 483 01106/2014 Cash Withdrawal $ (8,000.00) 483 01/07/2014 Cash Withdrawal
$(7,000.00) 429 01/22/2014 Cash Withdrawal $ (5,000.00) 483 01/25/2014 CashWithdrawal $ (5,000.00) 483 02/03/2014 Cash Withdrawal
$(7,000.00) 429 02/08/2014 Cash Withdrawal $ (4,000.00) 483 02/13/2014 Cash Withdrawal
$(1,000.00) 429 02116/2014 Cash Withdrawal $ (7,000.00) 429 02/24/2014 CashWithdrawal
$(2,500.00) 429 02/25/2014 Cash Withdrawal $ (2,500.00) 483 03/13/2014 Cash Withdrawal
$(8000.00) 483 03/13/2014 Cash Withdrawal $ (5,000.00) 429 03/21/2014 Cash Withdrawal $ (6,500.00) 483 03/21/2014 Cash Withdrawal
$(7,500.00) 429 03/2212014 Cash Withdrawal
$(8,000.00) 483 03/2412014 Cash Withdrawal
$(2,500.00) 429 03/28/2014 Cash Withdrawal $ (4,500.00) 429 03/29/2014 Cash Withdrawal
$(3,500.00) 429 03/30/20 14 Cash Withdrawal $ (6,500.00) 483 TotalWithdrawals $ (118,000.00)
15. Other notableactivity on the Victim’s WoodforestBank account, number )00000C3505,
included severalairlineticket purchasesand ATM cash withdrawals located in Dublin, Ohio. Cox lives in Dublin, Ohio.
16. The Victim was interviewed by IRS-Cl Special Agents (hereinafter Special Agents) on July
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Victim stated that she could not answer questions because although she is physically fine, she has difficulties mentally and that she needed to have a person present. Special Agents asked who she wanted to be present and she indicated he was male and was not an attorney. During their second meeting, the Victim told Special Agents that she goes with Cox to her bank to withdraw cash from her account and that Cox waits in the car while she goes into the branch to make the withdrawal. The Victim gives money to Cox to help him out with his business and Cox gives her some of the cash to help pay her bills. The Victim does not know what Cox’s business is. The Victim also said she met Cox with her father [RCY] when she and her father walked into Cox’s office. The Victim does not know how much money RCY left her. The Victim did not fly anywhere in the past year and does not go to casinos. When the Special Agents first met with the Victim, Cox was out of town on business, but the Victim did not know where.
17. On or about July 31, 2014, Special Agents went to Cox’s Edward Jones office located on
Riverside Drive in Upper Arlington. The Special Agents were met by a receptionist who told them that Cox was no longer employed with Edward Jones and had left several months prior. The receptionist recalled the Victim as a client of Cox’ s. After the Victim’s father passed away, finds were withdrawn from her Edward Jones accounts. Cox told the receptionist that the Victim was investing the finds with a friend.
18. According to Edward Jones, Cox was fired in or around March 2014 for entering into an
unapproved lending arrangement with a client. The client had been told that it was a private investment with a very favorable guaranteed rate of return. On or about March 4,2014, Cox told Edward Jones, when confionted by Ms employer, that he had told the client about an investment opportunity to help a friend raise money to purchase equipment Cox then
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admitted to his employer that the story he told the client was false and that he used the money he received from the client for his own personal use.
19. On or about December 3, 2014, Special Agents spoke with several of the Victim’s relatives
RCY’s brother, sister, and sister-in-law (hereinafter the “Family Members”). According to
them, the Victim has been mentally impaired since birth. One remembered that the Victim attended Special Education classes at Upper Arlington High School. RCY took care of the Victim while he was alive. RCY knew that the Victim could not handle money so he set up
something with a financial advisor named “Jason” at Edward Jones. The Family Members
believed that anything the Victim would have received from RCY’s estate would have gone to Edward Jones and that “Jason” was supposed to distribute a certain amount every month to the Victim for expenses. The Victim has not worked in about six years and would not be able to find gainThl employment. The Victim has several current serious health problems and it is unknown if she has health insurance. The Family Members believe that the Victim should live in an assisted living facility. The Victim recently sold her condominium that she owned and moved into an apartment in Whitehall, Ohio. The Family Members do not know why the Victim moved and are concerned about her well-being.
20. The realtor who arranged the sale of the Victim’s Westerville condominium said Cox was the one who contacted her and was present throughout the process. Cox told the realtor that he was a family friend and that the Victim needed to sell because she could not afford to live there any longer. Cox also found the Victim’s new apartment in a dangerous neighborhood and told the landlord that he was her caretaker.
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21. Evidence indicates that from on or about January 3, 2014 through on or about March 30,
2014, cash totaling $118,000.00 was withdrawn from the Victim’s Woodforest Bank account
Y30000C3505 in amounts and in a pattern that was structured to evade currency reporting
requirements in violation of 31 U.S.C. §5324(a)(3). Furthermore, evidence detailed
throughout this Affidavit shows probable cause that Cox committed these acts and assisted in committing these acts by driving the Victim to her bank to conduct the transactions while he was representing her as a Financial Advisor and knowing that she was unable to understand financial transactions.. Based upon these findings, there is probable cause to arrest Cox for violations of Title 31 U.S.C. §5324(a)(3).
I swear under penally of perjury that the information in this affidavit is true and accurate
to the best of my knowledge and belief. Executed on thisi day of December, 2014...
SA Anne Nighth’a1e
Sub cribed to and sworn before me thislO day of December, 2014.
NORAH MC KiNG