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UNI TED STA TES D ISTRI C T C O URT DISTRICT OF NEV ADA UN I TED STATES O F AM ERI CA , Pl ai nt i f f ,

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CRI MI NAL COM PLA I NT

ca s eNo . 2: 1 2 mj 8 3 9 OW F
Vi ol a t i on:

26 U. S. C. j 7201- Ta x Evas i on

1 , Br e tKr e s s i n ,t he u nde r s i g ne dc ompl a i na nt be i ng dul ys wor n be f o r e a U ni t e dS t a t e s

l3 M a gi s t r a t eJ u dge oft h eD i s t r i c tofN e va da ,s t a t et he f ol l o wi ng i st r ue a nd c or r ec tt ot he be s to fm y

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l5 CR I MI N AL VIO LA TIO N Tax Evasi on i n Vi ol at i on 0 * 26 U. S. C.# 7 201 .1

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l 7 1 8 l 9 20 21 1 .

Be gi nni ng i n ora b out200 6, a nd c on t i nu i ng t o 20l 0,i nt h e St a t ea nd Fed e r a lD i s t r i c tof

Ne va da a n d el s e w he r e, M ARCO G LI SSON,t he de f e nd a nt , d1 d wi l l f ul l ya t t e m ptt oe va d ea nd d ef e a t t he pa ym e n tofa l a r ge pa r tofi nc o m et a x due a n d owi n gb y hi mt ot he Uni t e d Sut esof Am e r i c af ort he c a l e nda ry ea r s20 06 a nd 2007, by f a i l i n gt o pa yt ot he I n t e r na lRe venu e Se r vi c e f e de r a li n com et a x due a nd o wi ng a sr e qui r ed by l a w, a nd b yc om m i t t i n g va r i ousa c t st ha twer e

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de s i g ne dt ohi d eh i si nc omea n da s s e t sf r om t hel nt e r na lRe ve nueSe r vi o e s ,i ncl udi ng:( a )u s i ng

no mi ne est oc on oe a la nddi s gui s ehi si n t e r e s ti ns h a r esofCM KM Di amondss t oc k;a nd( b)
c on ce a l i ng t hepr oc e ed sg e ner a t ed f r om t he s a l e ofCM KM D i a m on ds s t oc k by r out i ng pr oc e e ds

Case 2:12-cr-00484-LRH-VCF Document 2 Filed 12/12/12 Page 3 of 8

t oa c c oun t sofnomi ne e sa nd o t h ere nt i t i eswhi c h hec on t r ol l e d, t he r e by di s gui s i n gt hes o ur c ea nd

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owne r s hi p oft he f und s , aI li n vi ol a t i on ofTi t l e2 6, U ni t e d St a t e sCo de Se c t i on 7 201 .

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Iam aSpe c i al Age nto ft heUni t e dSt a t e sl n t e r n alRev e nueSe r vl c e( l RS) ,Cr i mi na l

I nve s t i ga t i on,a n d ha ve l xen s o empl oye ds i nc . e Fe br ua r y1 , 2008.Iha ver e o e i ve de x t t ns i ve t r a i ni ng i n Gnan ci a li n ve s t i ga t i v et e c hni qu e sa tt he Fe de r al La w Enf or c e me ntTr ai ni ng Cen t e r
6

l oc a t e di n Gl yn co, Geo r gi a. Asa Spe c i al A ge n tw i t ht he I RS,m y r es po ns i bi l i t i e si ncl u de t he

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i nve s t i ga t i onofc r i mi na lvi o l a t i onsoft hel nt e r na lRe ve nu eLa ws( Ti t l e26,Uni t e dSt a t esCo de ) ,
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t h eBa nkSe c r ec yAc t( Ti t l e31 ,Uni t e dSt at e sCod e ) , t h ec ur r e nc yl a un de r l ngs t a t u t e s( Ti t l el 8,

9

Uni t e d St a t esCode ,Sec t i onsl 956 ,1 95 7)a n dr e l a t e do f f e ns e s . M yt r a i ni ng i n cl u de d

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gr ou ndwor ki ns e a r c hw a r r a nt s , c ons t i t u t i on all a w, t a xl aw,a nd m a ny o t he rl a we nf o r c emen t

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t o pi o s.Pr i ort om y e m pl oymen twi t ht he I RS,lw or ke df ora ppr oxi ma t e l yt w o ye a r sasa n

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au di t ora tt heUni t c dS t a t esGove r nme n tAc c oun t a bi l i t y Of f i c e.Ih aveaBa c hel o r ' so fBus i ne s s
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Adm i ni s t r a t i on deg r e ei n Ac cou nt i ng f r o mt he Uni ve r s i t y ofW i s c ons i nW hi t e wa t e r . Ial s oh ol d

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a M as t e r so fPr o f e s s i ona lA c c o unt a nc y de gr e ef r om t he Uni ve r s i t y ofW i s c on s i nW hi t e wa t e r , l

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a m al i ce ns e d Ce r t i f i e d Publ i c Acc o unt a nti nt he St a t e ofV i r gi ni a.

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la ma nt s i nve s t l g at i ve o rl a we nf or c e me ntof f i c e roft he Uni t e d St at e s ' ' wi t hi nt he

mea ni ngofTi t l el 8 ,Uni t e dSt a t e sCode ,Se c t i o n251 0 ( 7) ,a n da sal a we nf or c emen tof t i c e rof
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t heUni t e d St a t es ,Ia me mpowe r e d by l a wt oc ond uc ti n ve s t i ga t i onsa nd ma k ea r r es t sf orf e d er a l

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f el o ny of f e ns e s .
20

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Ia m oneofs eve r ala ge n t spa r t i c i pa t i n gi na ni nve s t i ga t i on r e ga r di ng M ARCO

GLI SSON ' Ss al eo fun r egi s t e r e ds ec ur i t i e sa n di nc om et a x vi ol a t i ons . The f ol l ow i ng s um m al ' y

22

o ff a c t si sb a s e d on my o wn i n ve s t i ga t i on a sw e l la si nf o r ma t i on,do c um e nt sa nd da t a pr o vi de dt o
23

meby o t h e rl a we nf or c e men tof f i c e r s , t h e Se c ur i t i esa ndExc ha ngeCommi s s i on,n onl a w

24

Case 2:12-cr-00484-LRH-VCF Document 2 Filed 12/12/12 Page 4 of 8

e nf o r c e me ntgove r n me nte mpl oye e s , a nd i i na nc i a li ns t i t ut i o ns .Howev er ort he p ur pos e sof ,f

t hi s Compl a i nt , Ih a ve s e tf er t h onl yt he f a c t st ha tIbel i eve a r e es s e n t i a lt oe s t a bl i s h pr ob ab l e

2 3

ca us et ha tM ARCO GLI SSON c om m i t t ed t he of f e ns e ofTa x Eva s i on i n vi ol a t i o n of26 U .S. C.

4 7201. 5

Fac t sEs t a bl i s hi ne Pr oba bl e Caus e

6

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7

The d ef e nd a nt ,M ARCO GLI SSON ,h asha d out s t a ndi n gt a xl i a bi l i t i e st ot he Uni t e d

S t a t e ss pa nni n gt hr e e de c a de s . GLI SSON ha dt ax def i c i e nc i e sas s e s s e df ort a x yea r s1 985 , 1987,

8

1 992,1 993 ,1 99 4,1 9 95 ,1 99 6,1 998,1 999, 2000, 2006 a nd 200 7. Thi sCo m pl a i ntf oc us eson t a x
9 year s2006 and 2007. 10

De f e nda n tM ARCO GLI SSON r e c el v e dt a x abl ei n c om e i n 2006 a nd 20 07 f r om t he

11

unl a wf uls a l e ofu nr e gi s t er e ds t oc k ofCM KM D i a m onds ,I nc. ( aNe va dac or po r a t i onpr e vi ous l y
12

l nc or po r a t ed i nDe l a war ea nd r e gi s t e r edwi t ht heSe c ur i t i esa ndEx c ha ngeCo mmi s s i on u n de rt h e

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nameCybe rM a r kI nt er na t i onal Cor po r a t i on) .

1 4 15 1 6 j , y

Af t e r be i ng w ar ne dt hats e l l i ng der v x gi s t e r e ds t oc k w as i l l e gal ,GLI SSO N c ont i nue dt os e l l der egi st ered s t ock,and r ecel ved m ore t han a m i l l i on dol l ars i n pr oceeds 6. Al t hough CM KM D i a m on dspu r por t e dt o be a di a m ond m i ni ng c ompa n y, t he company

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di d notact ual l y engage i n any subs t ant i alm i ni ng act i vi t i es, nora n ye c ono mi c a l l y vi a bl eb us i ne s s

1 8
1 9 at j 21

ofa nyki nd ,a nd t heco mpa nydi d notpr oduc edi a mond so ran yt hi ngel s ewi t ht h enot a bl e
exc e pt i on ofhu ndr e dsofbi l l i on s ofs ha r e sofi t so w ns t oc k. I nr e a l i t y, CM KM D i a m ondswasa publ i o l yt r a de dc or por a t es h el lu s e dt o per pe t u a t ea mas s i v e pum p a nd dump s e o ur i t i esf r aud s c heme d ur i ng t he s pa nf r om 20 02 t o2 005. A spa r toft h a ts c he me he p er p e t r at or sf r a u dul en t l y ,t

zz
23
24

i s s ue dmor et ha n700, 0 00, 00 0, 00 0( s eve nhun dr e dbi l l i o n)un r e gi s t e r e ds ha r e sofCMKM s t oc k.

I nM a r c h 2005, t he Se c u r i t i e sa nd Exc ha nge Com m i s s i on l ns t i t u t e da na dm i ni s t r a t i ve

Case 2:12-cr-00484-LRH-VCF Document 2 Filed 12/12/12 Page 5 of 8

e nf or c e me nta c t i o na gai ns tCM KM Di a mon dsl nc. ,whi c hr e s ul t e di n de r e gi s t r a t i on o ft h a t

2

c o l npa ny' ss t o ck i n Oc t ob e r2005.

3

7.
4

Al t hou gh t he Sec u r i t i e sa nd Exc ha n ge Com m i s s i on de r e gi s t e r e d CM KM D i a m on ds i n

Oc t ob e r20 05,M ARCO GLI SSON oon t i nu e dt oa di vel yt r a de CM KM Di a m ondss t oc ki n 200 6

5

a nd 2007. l n ea r l y 2006, G LI SSON bo ugh ta nd s ol d hundr ed sofm i l l i onss ha r e sofCM KM

6

Di a mondss t ockvi at he i nt e r ne tan do t h e rch a nne l sofi n t e r s t a t ec ommuni c a t i o na nd c omme r c e.

7
8

Th os es al e syi e l de d gr os sr e ce i pt sofa ppr oxi ma t el y $85 0, 000.Fol l owi ngabr i e fhi a t us r l

GLI SSON r e s um e d de a l i ng i n CM K M Di a mo ndss t oc ki nl a t e 200 6a nd ea r l y 2007 ,f orw hi c hh e

r e c ei v e da na ddi t i ona l$9 25 , 00 0.

1 0

Al t houg h G LI SSO N as s e s s e dt hatheowed hundr e ds oft hous andsofdol l ar si nt axe s ,he

11
1 2

f ai l e dt opayt heva s tma j or i t yoft he s et a xe s

8. On Oc t ob er2,20 07,GLI SSON Gl e da U. S. l n di vi dual l nc omeTa x Re t u r nf or2006i n

1 3
1 4 1 5
16

wbi c bi i ea s s e s s e dt ha theo we d $3 06, 2$ 5i nt a xe s .GLI SSON c a l c ul a t e dt ha t$ 300, 6 90 o ft ha t

t a x ha dn otbe e n pa l da nd w a sdue a nd owe dt ot he I RS. H o we ve r ,GLI SSON pa i d ve r yl i t l l e of t he t a x due a nd ow i ng,de s pi t eh a vi ng r e c ei ve d hu ndr edsoft h ous a n dsofdol l a r sf r om t h es a l e of
CM KM D i am onds s t ock.

1 7

9.

O nM a y 26,20 08,GLI SSON f i l ed a U . S,I ndi v l dua lI nc o m e Ta x Re t ur nf or20 07 i n

1 8
l 9
20

whi c h hes el f a s s es s ed a$1 05, 787t a x.Aga i n, howe ve r sGLI SSON f ai l e dt opa yt het a xd ue a nd
ow i ng.

2I :; 23 2, 4

1 Onora boutJ u ne8,2 006,a na t t or ne yoft heSe cu r i t ya ndExc ba ngcCommi s s i o n' sEnf or c e men tDi vi s i ons po ke
wi t hGLI SSON a ndhi sa t t o r ne yb yt e l e phon e. Dur i n gt hi st e l e ph onec al l , t heSe c ur i t yan dExc han ge

Commi s si on' sa t t ome y di r e ct l yi nf or me dGLI SSON t ba ti twa si l l e gal t ode ali na ndpubl i c l yt r a ded er e gi s t e r e d
s ec ur i t i e s.Dur i ngt hi sc al l , GLI SSON ' Sa t t or ne y- s pe a ki n gon be ha l fofGLI SSON who a l s owaspr e s e ntont hc c al l- s t a t e dt ha tGLI SSON ha ds t op pe dt r a di ngi nCM KM Di a mondss t oc ka sofM a y1 5,2 006,a ndt ha tGLI SSON i l a dnopl a nst oe nga gei na nyf nr t he rp ur c has eso rs al e soft hede r e gi s t er e ds t oc k. GLI SSON ,I i s t e ni n gt o hi s

a t t o r n e yma k et h e s er e p r e s e n t a t i o n so nh i sb e h a l fd i dn o t o b j e c t o rd i s a g r e e .Ho we v e r , a f t e ra p p r o xi ma t e l yt h r e e mont l l sofi na c t i vi t y, GLI SSON r e s u me dt r adi ngCM KM Di a mondss t oc k.

Case 2:12-cr-00484-LRH-VCF Document 2 Filed 12/12/12 Page 6 of 8

l 0.
2

On J u ne 4,2 008,GLI SS ON s ub mi t t e d an O f f e r l ncom pr o mi s ef ort he t a x eshe o we d

t h eI RS .OnAu g u s t1 3 , 2 0 0s , t h eI RS r e j e c t e dhi sOf f e r l n co mpr o mi s e .OnNo ve mb e r7 ,

3
4

' 2008 ,GLI SSON s ubm i t t ed a s e c o nd Of f e r l ncom p r om i s et ot h el RS t os e t t l ehi st a xd e bt .O n

J un e3,2 009,t heI RSr e j e c t e dt hi ss e c ondOf f e r l ncompr omi s e.

5

ll .
6

Publ i ci nt e r e s ta nd t hem ar ke tf orCM KM s t oc kw a ne di n 2008, a nd GLI SSON dl d no t

eng a ge i ns i g ni f i ca n tt r a d esi n CM KM D i a mo nds s t oc ki n 20 08 o r2009. How e ve r ,i nve s t or

7

i n t e r e s ta n dt he m a r k e tf orCM KM D i a m ond ss t o c kwa sr e ki ndl e di n 20l 0 by a s pur i ousl a ws ui t

8

a nd m i s r e pr es e nt a t i ons whi c hf al s e l ys u gge s t e dt ha tCM KM s h a r eho l de r s we r et or e c e i ve

9

pa ym e n t sf r om a s e c r e tt r us tt ha tpu r por t e dl yh el dt r i l l i onsofdol l a r s. Th os e gr oundl e s s

l 0

mi s r e p r es e nt a t i o nsi n duc e da nd ena b l ed G LI SSON ,a i de da nd ab e t t ed by o t he r s , t or es um e

11

unl a wf ul l y de al i ng i na n ds e l l i ng CM KM D i a m ondss t oc k. GLI SSON r e ce i ve da tl e a s t

1 2

$1 , 40 0, 000f r o ms a l e so fCM KM Di a mondss t o ck i n 201 0.

l3

l 2.
l 4

GLI SSON, aga i n, ha sha dI RS a s s e s s me nt sd a t i ngba c kt o1 98 5,a ndowesov er$500 , 000

t ot h el RS i nt a xe s ,i nt e r es t , an d pe n al t i es . Ofpar t i c ul a rno t e:f or2006 ,GLI SSON ow e si n c om e

15

t a x, pe nal t i e san di nt e r e s ti nt hes um of $4 29 , 673 . 43;f o r200 7, GLI SSON o we si nc omet a x,

16

pe na l t i esa nd i n t e r e s ti nt hes u m of$1 44, 50 9. 11 .I nb 0t h oft h os ey ea r s ,GLI SSON s el f a s s e s s e d

17

hi st a xl i a bi l i t y, bu tf a i l e dt op a y ove rt h et a xe sduef ort h os eye a r sde s pi t eha vi ngt her es ou r c es

1 8
t o pay.

19 G LI SSO N act i vel yt ri ed t o coRceall t i si lcom e f r om t l l eI RS 20

1 3 .
21

Ra t he rt ha n pa yi ng t he i nc o m et a xe sdueand ow i n g,GLI SSON c onc ea l e d hi sm o ne ya nd

a s s et sf r om t he I RS by pl a c i ng t h e m i nt he n a m e ofhi sw i f e , Thi d a r a tTungwong s a t hong. For

22 exampl e: 23

( a ) OnNove mbe r29,2 006, GLI SSON t r a ns f e r r e d $3 00, 00 0f r em hi sp er s ona l ban ka o co un t

24 t o Th i da r a tTungwongs a t ho ng' spe r s o na lb a nk a c c ou nt .

'

Case 2:12-cr-00484-LRH-VCF Document 2 Filed 12/12/12 Page 7 of 8

( b)0nJ a nua r y9,20 07,GLI SSON t r a ns f e r r ed$ 75, 000f r om hi spe r s o na lba nka c c oun tt o
2 Thi da r a tTu ngwongs a t hong' sp er s o na lb an ka c c oun t .

3
4

( o ) GLI SSON mad emul t i pl ec a s hwi t bd r a wa l sf r om bi sba n ka c co un tf r om J ul y2, 20 07

t hr ou gh J ul y 11 ,2007, s t r uc t ur e dt oa voi dc u r r e nc yt r a ns a c t i o nr e por t i ngr e qui r e me nt s .

Dur i ngt h a ts pa n, GLI SSON wi t h dr e w $80, 00 0i nc a s hf r om hi sb an ka c cou nts t r u c t u r e d o rs e gme n t e di ne i ghts e p ar a t et r a ns ac t i onsof$1 0, 0 00.

5
6

( d) OnJ ul y1 6 , 200 7,GLI SSON move d$ 75, 00 0 mor et oThi d a r a tTungwong s a t hong i nt he
f or m ofa c a s hi e r ' sc he c k pa y abl et o he ri nt ha ts u m.

1
B

( e ) Re c or ds ,d oc ume n t sa nd o t he rm a t er i a l sf ort hep er i o df r om Apr i l201 0t o Oc t obe r20l 0

s ho wt h a tGLI SSON r e c e i ve da tl e ms t$1 , 400, 0 00 f r o ms a l e sofCM KM Di a mon dss t oc k
t o m ul t i pl ei n ves t or sdur i ng t ha ts pa n. Acc o r di ng t o Ema i l sf r om GLI SSON ' S Emai l a c cou nt , GLI SSON i ns t r uc t e d pur c ha s e r st om a ke t he i rc he c kspa ya bl et o Thi da r a t

9
1 0 1l
l 2

Tungwongs a t hongort owi r emo ne yt ohe rban ka c c oun t .M o r et h a n $1 , 400, 00 0 wa s

de Pos i t e dt o Th i da r a tTungwong s a t hong' sb a nk ac c oun k an dma ny oft he de po s i t sm a d e r e f e r en cet ot h es al e ofCM KM s t oc k.

Al t hough GLI SSON c l a i me d hehad no mone yt o pa yt axe s , bepr e vi ous l yt o l dal i nanci al
advi s or t hathe w ant ed t o Gpark' gm oney i n hi sw i f eg s nam e because he ow ed the I RS
m oney

l 4.
13 14

O n Feb r ua r y 8, 20l1 , li n t e r vi e we d M A RCO G LI SSON . Dur i ng t h ei nt e r vi e w,

GLI SSON wa sa s ke di fhekne wh eo we d$300, 000 i nt a x esf or2006, t owhi c hGLI SSON
r e pl i e dt h a the t h oug hti twa s mor e. GLI SSON s t a t e dt h a tt h ei n c ome he r e c ei ve di n 200 6 wa s
15

pr i ma r i l y de r i ve df r om s t o c ks al e s ,i no l udi ng t he s a l e ofCM KM s t o c k. GLI SSON a ddi t i o na l l y

16

mai n t a i ne dt ha thedi dnotha vemo ne yt o pa yhi st a xe s .GLI SSON ma d et hi ss t a t e me ntde s pi t e

17

t hef a c tt ha th er e c ei v e d mor et ha n $1 , 400 0, 000f r om t h es al eo fCM KM Di a mon ds t o ckdur i ng

18 201 0. l9

1 5. Be f or es pe a ki ngwi t h GLI SSON,li nt e r vi e we da n Edwar dJ one sFi na nc i a la dvi s or( $ : EJ 20

21 22 23

1 5 5 )onSe p t e mbe r2 2,201 0.EJ Is t a t e dh eha ds e ve r a lc o nve r s a t i onswi t hGLI SSON i nwhi c h
GLI SSON mad es t a t e me nt st ot hee f f e c tt ha t :1 )GLI SSON wa nt e dt oe l pa r kal a r gea moun tof mone y ' 'u nde rhi swi f e' sna me;2 )GLI SSON wa nt edt odot hi sbe c a us eheowe dt he1 RS abu nc h

ofmone y;3)GLI SSON hepu thi sbus i ne s s ,LB Ga s , i nhi swi f e' sna mee ve nt ho ughh eco nt r ol s

2 4
7

Case 2:12-cr-00484-LRH-VCF Document 2 Filed 12/12/12 Page 8 of 8

I
1

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t hec ompa n y;4 )GLI SSON wa sh e s i t a ntt oa c c ep tcr edi tc a r dpa yme nt sa thi sbus i ne s sbe c a us e
2
3

heha da% % c a s ha ndca r r y' ' pol i c y; 5)GLI SSON c a r r i e sc a s ht oa voi db ei ngde t ec t e d;6 )CMKM s t oc kwa sgoi ngt oma keGLI SSON a n i ns ln tmi l l i ona i r e i ' ' a nd7 )GLI SSON s t at e dt ha thei s

nott goi ngt ogi vet hos eba s t a r d s( l RS)adi me. ' '
5

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lr es pe c t f u l l ys ub mi tt h a tt h ef or e goi ng f a c t sa nd c l r c um s t an o e sp r ovi de p r ob a bl ec a us et o

bel i e vet h a tM ARCO GLI SSON hasc om m i t t e dt he of f e n s e ofTM Eva s i on i n vi ol a t i o n of26

7 U. S. C.7201. 8 .

9
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BRET KRESSI N Sp e ci a lA g e nt l n t e r n al Re ve nue Se r vi c e cr i mi na lI nv es t l ga t i o ns

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