Indictment Filed as to Herode Chancy (1) count(s) 1, 2, 3, 4, 5, Michael Albarella — USA v. Chancy et al. (Dkt. 23, S.D.N.Y.)

Summary

The Indictment in United States v. Herode Chancy, Michael Albarella and Adedayo Ilori, Case 1:20-cr-00378-LJL in the U.S. District Court for the Southern District of New York, filed 07/23/20 as Document 23. Count One charges Chancy and Ilori with conspiracy to commit mail and wire fraud from at least in or about March 2019 through in or about March 2020, alleging they agreed with others to submit fraudulent business loan applications with no intent to repay, a scheme the indictment calls the Loan Scheme. Counts Two and Three charge wire fraud and mail fraud over the same period, and Count Four charges aggravated identity theft from about December 2019 through about March 2020. The readable counts do not describe the charges against Albarella.

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UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF NEW YORK 
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UNITED STATES OF AMERICA 
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V. 
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HERODE CHANCY , 
MICHAEL ALBARELLA, and 
ADEDAYO I LORI , 
Defendants . 
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INDICTMENT 
20 Cr . 
OCIDM 
COUNT ONE 
(Conspiracy to Commit Mail and Wire Fraud) 
The Grand Jury charges : 
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1 . 
From at least in or about March 2019 through in 
or about March 2020 , in the Southern District of New York and 
elsewhere , HERODE CHANCY and ADEDAYO ILORI , the defendants , and 
others known and unknown , willfully and knowingly , did combine , 
conspire , confederate , and agree together and with each other to 
commit wire fraud , in violation of Title 18 , United States Code , 
Section 1343 , and mail fraud , in violation of Title 18 , United 
States Code , Section 1341 . 
2 . 
It was a part and object of the conspiracy that 
HERODE CHANCY and ADEDAYO ILORI , the defendants , and others 
known and unknown , willfully and knowingly , having devised and 
intending to devise a scheme and artifice to defraud and for 
obtaining money and property by means of false and fraudulent 
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. I 
pretenses , representations , and promises , would and did transmit 
and cause to be transmitted by means of wire , radio , and 
television communication in interstate and foreign commerce , 
writings , signs , signals , pictures and sounds for the purpose of 
executing such scheme and artifice , in violation of Title 18 , 
United States Code Section 1343 , to wit , CHANCY and ILORI agreed 
together and with others to engage in a scheme in which they 
would and did submit fraudulent business loan applications with 
the intent not to repay the loans (the "Loan Scheme" ) , and in 
connection therewith and in furtherance thereof , would and did 
transmit and cause to be transmitted interstate electronic mail , 
in order to execute the Loan Scheme and obtain proceeds 
therefrom . 
3 . 
It was further a part and object of the 
conspiracy that HERODE CHANCY and ADEDAYO ILORI , the defendants , 
and others known and unknown , willfully and knowingly , having 
devised and intending to devise a scheme and art ifice to defraud 
and for obtaining money and property by means of false and 
fraudulent pretenses , representations , and promises , for the 
purpose of executing such scheme and artifice and attempting so 
t o do , would and did place in a post office and authorized 
depository for mail matter , a matter and thing to be sent and 
delivered by the Postal Service , and deposit and cause to be 
deposited a matter and thing to be sent and delivered by private 
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and commercial interstate carrier , and take and receive 
therefrom, a matter and thing , and knowingly cause to be 
delivered by mail and such carrier according to the direction 
thereon , and at the place at which it was directed to be 
delivered by the person to whom it was addressed , such matter 
and thing , in violation of Title 18 , United States Code , Section 
1341 , to wit CHANCY and ILORI agreed together and with others to 
engage in the Loan Scheme , and in connection therewith and in 
furtherance thereof , would and did transmit and cause to be 
transmitted , by means of the mails and private and commercial 
interstate carriers , documents related to the Loan Scheme , in 
order to execute the Loan Scheme and obtain proceeds therefrom . 
(Title 18 , United States Code , Section 1349.) 
COUNT TWO 
(Wire Fraud) 
The Grand Jury further charges : 
4 . 
From at least in or about March 2019 through in 
or about March 2020 , in the Southern District of New York and 
elsewhere , HERODE CHANCY and ADEDAYO ILORI , the defendants , 
willfully and knowingly , having devised and intending to devise 
a scheme and artifice to defraud , and for obtaining money and 
property by means of false and fraudulent pretenses , 
representations , and promises , transmitted and caused t o be 
transmitted by means of wire , radio , and television 
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communication in interstate and foreign commerce , writings , 
signs , signals , pictures , and sounds for the purpose of 
executing such scheme and artifice , to wit , CHANCY and ILORI 
engaged in the Loan Scheme , and in connection therewith and in 
furtherance thereof , transmitted and caused to be transmitted 
interstate electronic mail , in order to execute the Loan Scheme 
and obtain proceeds therefrom . 
(Title 18 , United States Code , Sections 1343 and 2 . ) 
COUNT THREE 
(Mail Fraud) 
The Grand Jury further charges : 
5. 
From at least in or about March 2019 through in 
or about March 2020 , in the Southern District of New York and 
elsewhere , HERODE CHANCY and ADEDAYO ILORI , the defendants , 
willfully and knowingly , having devised and intending to devise 
a scheme and artifice to defraud , and for obtaining money and 
property by means of false and fraudulent pretenses , 
representations , and promises , for the purpose of executing such 
scheme and artifice and attempting so to do , placed in a post 
office and authorized depository for mail matter , a matter and 
thing to be sent and delivered by the Postal Service , and 
deposited and caused to be deposited a matter and thing to be 
sent and delivered by a private and commercial interstate 
carrier , and took and received therefrom, a matter and thing , 
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and knowingly caused to be delivered by mail and such carrier 
according to the direction thereon , and at the place at which it 
was directed to be delivered by the person to whom it was 
addressed , a matter and thing , to wit , CHANCY and ILORI engaged 
in the Loan Scheme , and in connection therewith and in 
furtherance thereof , transmitted and caused to be transmitted , 
by means of the mails and private and commercial interstate 
carriers , documents related to the Loan Scheme , in order to 
execute the Loan Scheme and obtain proceeds therefrom . 
(Title 18 , United States Code , Sections 1341 and 2 . ) 
COUNT FOUR 
(Aggravated Identity Theft) 
The Grand Jury further charges : 
6 . 
From at least in or about December 2019 through 
in or about March 2020 , in the Southern District of New York and 
elsewhere , HERODE CHANCY and ADEDAYO ILORI , the defendants , 
knowingly transferred , possessed , and used , without lawful 
authority , a means of identification of another person , during 
and in relation to a felony violation enumerated in Title 18 , 
United States Code , Section 1028A(c) , to wit , in connection with 
the conspiracy , wire fraud , and mail fraud offenses alleged in 
Counts One through Three of this Indictment , respectively , 
CHANCY and ILORI used and aided and abetted the use of the 
names , dates of birth , and social security numbers of other 
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., 
persons when submitting , and causing the submission of , 
fraudulent loan applications made in furtherance of the Loan 
Scheme . 
(Title 18 , United States Code , Sections 1028A(a) (1) , 
1028A(c ) (5) , and 2 . ) 
Count Five 
(Conspiracy to Commit Money Laundering) 
The Grand Jury further charges : 
7 . 
From at least in or about February 2020 through 
in or about March 2020 , in the Southern District of New York and 
elsewhere , HERODE CHANCY , MICHAEL ALBARELLA, and ADEDAYO ILORI , 
the defendants , and others known and unknown , willfully and 
knowingly did combine , conspire , confederate , and agree together 
and with each other to commit money laundering , in violation of 
Title 18 , United States Code , Section 1956(a) (3) (B) . 
8 . 
It was a part and an object of the conspiracy 
that HERODE CHANCY , MICHAEL ALBARELLA, and ADEDAYO ILORI , the 
defendants , and others known and unknown , with the intent to 
conceal and disguise the nature , location , source , ownership , 
and control of property believed to be the proceeds of specified 
unlawful activity , would and did conduct and attempt to conduct 
a financial transaction involving property represented to be the 
proceeds of specified unlawful activity , to wit , CHANCY , 
ALBARELLA, and ILORI agreed to launder , through a bank account 
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opened using a stolen identity , the purported proceeds of 
fraudulent business loans obtained in violation of Title 18 , 
United States Code , Sections 1343 and 1341 , as charged in Counts 
Two and Three of this Indictment , respectively , in violation of 
Title 18 , United States Code , Section 1956(a) (3) (B) . 
(Title 18 , United States Code , Section 1956(h) . ) 
COUNT SIX 
(Bank Bribery -
Solicitation and Acceptance) 
The Grand Jury further charges : 
9 . 
In or about February 2 02 0 , in the Southern 
District of New York and elsewhere , MICHAEL ALBARELLA, the 
defendant , being an officer , director , employee , and agent of a 
financial institution , knowingly and corruptly solicited and 
demanded for the benefit of a person , and corruptly accepted and 
agreed to accept , things of value exceeding $1 , 000 from a 
person , intending to be influenced and rewarded in connection 
with a business and transaction of such institution , to wit , 
ALBARELLA, while acting as a manager of a financial institution 
located in New York , New York ("Bank-1" ) , and insured by the 
Federal Deposit Insurance Corporation , solicited and accepted a 
bribe payment in connection with the opening of a bank account 
at Bank-1 using a stolen identity in furtherance of laundering 
the proceeds of the Loan Scheme . 
(Title 18 , United States Code , Sections 215 (a) (2) and 2 . ) 
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FORFEITURE ALLEGATIONS 
10 . 
As a result of committing the offenses alleged in 
Counts One through Three of this Indictment , HERODE CHANCY and 
ADEDAYO ILORI , the defendants , 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 and all property , real and personal , that constitutes or is 
derived from proceeds traceable to the commission of said 
offenses , including but not limited to a sum of money in United 
States currency representing the amount of proceeds traceable to 
the commission of said offenses . 
11 . 
As a result of committing the offense alleged in 
Count Five of this Indictment , HERODE CHANCY , MICHAEL ALBARELLA, 
and ADEDAYO ILORI , the defendants , shall forfeit to the United 
States , pursuant to Title 18 , United States Code , Section 
982(a) (1) , any and all property , real and personal , that 
constitutes or is derived from proceeds traceable to the 
commission of ,said offense , including but not limited to a sum 
o f money in United States currenc y r epre senting the amount o f 
proceeds traceable to the commission of said offense . 
12 . 
As a result of committing the offense alleged in 
Count SIX of this Indictment , MICHAEL ALBARELLA, the defendant , 
shall forfeit to the United States , pursuant to Title 18 , United 
States Code , Section 982 (a ) (2 ) (A) , any and all property , real 
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and personal , that constitutes or is derived from proceeds 
traceable to the commission of said offense , including but not 
limited to a sum of money in United States currency representing 
the amount of proceeds traceable to the commission of said 
offense . 
Substitute Asset Provision 
13 . 
If any of the above - described forfeitab l e 
property , as a result of any act or omission of the defendants : 
a . 
cannot be located upon the exercise of due 
diligence ; 
b . 
has been transferred or sold to , or 
deposited with , a third person ; 
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 subdivided without difficulty ; 
it is the intent of the United States , pursuant to Title 21 , 
United States Code , Section 
853(p) and Title 28 , United States 
Code , Section 2461(c) , to seek forfeiture of any other property 
o f the defendants up to the value of the above forfeitable 
property . 
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(Title 18 , United States Code , Sections 981 , 982 ; 
Title 21 , United States Code , Section 853 ; and 
Title 28 , United States Code , Section 2461 . ) 
Attorney 
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Form No . USA- 33s-274 (Ed . 9- 25 - 58) 
UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF NEW YORK 
UNITED STATES OF AMERICA 
v. 
HERODE CHANCY, 
MICHAEL ALBARELLA, and 
ADEDAYO !LORI, 
Defendants . 
INDICTMENT 
20 Cr . 
(18 U. S . C. §§ 215 , 1028A, 1341 , 1343 , 
1349 , 1956 , and 2 . ) 
AUDREY STRAUSS 
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