Indictment — United States v. Rico Tomas Garcia, District of Colorado (Document 1)
Summary
A grand jury Indictment filed April 9, 2024 as Document 1 in United States of America v. Rico Tomas Garcia, Case No. 1:24-cr-00106-NYW, in the U.S. District Court for the District of Colorado. It charges Counts 1-9 as wire fraud under 18 U.S.C. § 1343 and Counts 10-15 as money laundering under 18 U.S.C. §§ 1957(a) and 2. The Indictment alleges that the defendant, through Botani-Labs, LLC, agreed to source hand sanitizer to IPF Sourcing, received approximately $2,493,750 funded by SZY Holdings, LLC, and instead used the money for personal use, including residences. It alleges that the defendant wired $2,428,750 to a Hamsa Holdings account and later filed falsified bank statements in a JAMS arbitration. The forfeiture allegation lists residences, about $1,373,487.58 in Bank of America funds and a money judgment; it is signed by Assistant United States Attorney Rebecca S. Weber.
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“Indictment — United States v. Rico Tomas Garcia, District of Colorado (Document 1).”
Original at ecf.cod.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-usa-v-garcia-dkt-1-d-colo-9e85ae513e/
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Case No. 1:24-cr-00106-NYW Document 1 filed 04/09/24 USDC Colorado pg 1
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IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Criminal Case No.
UNITED STATES OF AMERICA,
Plaintiff,
v.
1. RICO TOMAS GARCIA,
Defendant.
INDICTMENT
The Grand Jury charges:
COUNTS 1-9
Wire Fraud, 18 U.S.C. § 1343
Background
1. RICO TOMAS GARCIA (“GARCIA” or “the defendant”) formed Botani-
Labs, LLC (“Botani-Labs”) on or about August 5, 2016, in Colorado and listed himself as
the registered agent. Botani-Labs was voluntarily dissolved in Colorado on or about
June 8, 2021. On or about June 12, 2020, GARCIA registered Botani-Labs in Nevada.
GARCIA is listed as the managing member of Botani-Labs in Nevada. GARCIA
routinely described himself as the Chief Executive Officer or CEO of Botani-Labs.
2. GARCIA transferred money obtained in the scheme described below
through the accounts of numerous entities he or his girlfriend C.S. controlled, including
Hamsa Holdings, LLC (“Hamsa Holdings”), Granada Holdings LLC (“Granada
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Holdings”), and Solid Investment Partners, LLC (previously named Solid Investment,
LLC) (“Solid Investment”).
3. GARCIA resided in Colorado from at least January 2020 through at least
November 2020.
4. IPF Sourcing, LLC (“IPF Sourcing”) was established in or around July
2019 in Virginia.
The Scheme
5. Beginning in or around April 2020, and continuing thereafter until in or
around June 2021, in the State and District of Colorado, and elsewhere, defendant
RICO TOMAS GARCIA, devised, intended to devise, and participated in a scheme and
artifice to defraud and to obtain money and property, by means of materially false and
fraudulent pretenses, representations, and promises, to wit, that GARCIA would source
millions of bottles of hand sanitizer to IPF Sourcing in exchange for approximately $2.5
million funded by SZY Holdings, LLC (“SZY”), when in fact, GARCIA instead stole the
money for personal use, and then subsequently falsified bank records to conceal how
he spent SZY‘s money.
Manner and Means of the Scheme
6. In or around April 2020, following the onset of the COVID-19 pandemic,
IPF Sourcing entered into a work order with a third party to provide 9 million 16-ounce
hand sanitizer bottles in exchange for approximately $37.8 million. IPF Sourcing agreed
to deliver tranches of hand sanitizer starting May 4, 2020, and ending June 8, 2020. IPF
Sourcing secured funding for the deal from SZY.
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7. In or around late April 2020, Garcia agreed to provide 9 million 16-ounce
bottles of hand sanitizer to IPF Sourcing for $33,750,000. On or about April 28, 2020,
Garcia sent an invoice from Botani-Labs to IPF Sourcing for 1,330,000 bottles of hand
sanitizer for a total of $4,987,500 with 50 percent of the balance due as a deposit and
the remainder due “prior to pickup.”
8. On or about April 29, 2020, SZY wired approximately $2,493,750 to
Botani-Labs as a 50 percent deposit for the first lot of hand sanitizer.
9. On or about May 5, 2020, GARCIA texted IPF Sourcing partner V.A.
stating, “We are good . . . ” V.A. asked for an estimate of “first pick up,” and GARCIA
responded, “14 days from payment just like the invoice I sent you back on April 14.” On
or about May 5, 2020, GARCIA used approximately $54,373.47 of the SZY funds to pay
off a vehicle loan.
10. On or about May 9, 2020, GARCIA indicated that he may not be able to
deliver the required pump tops on the bottles.
11. On or about May 11, 2020, GARCIA wired $2,428,750 of the money from
SZY from the Botani-Labs account to an account in the name of Hamsa Holdings that
GARCIA controlled. He subsequently transferred the proceeds to other accounts and
used them for personal use, including to purchase three residences, as detailed below.
12. On or about May 13, 2020, V.A. emailed GARCIA to explain that GARCIA
either needed to resolve the issues with delivering the hand sanitizer or to return the
funds.
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13. On or about June 10, 2020, IPF Sourcing’s counsel sent a demand letter
to GARCIA requiring fulfillment of the contract by June 24, 2020, or return of the
$2,493,750 payment. On or about June 25, 2020, IPF Sourcing’s counsel sent GARCIA
a letter terminating the contract and demanding the return of the $2,493,750 payment.
14. In or around late June 2020, Botani and IPF Sourcing filed competing
arbitration demands with JAMS, an alternative dispute resolution service.
15. On or about April 5, 2021, GARCIA, through counsel, filed falsified bank
statements in the alternative dispute resolution proceedings to show a $2,428,750
payment to “Hui Lin” made on or about May 11, 2020. Unredacted bank records show
that same payment was actually made to Hamsa Holdings, controlled by GARCIA.
16. On or about June 18, 2021, GARCIA’s counsel emailed JAMS amended
responses to interrogatories. In those responses, GARCIA swore and affirmed that he
sent $2,428,750 to “Hui Lin” on May 11, 2020 as a payment he made to a person he
contracted with to supply or manufacture hand sanitizer to IPF Sourcing. This was false;
instead of using SZY’s funding to source bottles of hand sanitizer, GARCIA diverted the
money to accounts he and C.S. controlled and used it for personal expenditures.
Execution of the Scheme
17. On or about the dates set forth below, in the State and District of
Colorado, and elsewhere, defendant RICO TOMAS GARCIA caused to be transmitted
by means of wire communication in interstate commerce certain writings, signs, signals,
pictures, and sounds, as set forth below:
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Count Date Description of Wire
$2,493,750 wire from Citizens Bank account to Botani-
1 4/29/2020
Labs JPMorgan Chase account
$2,428,750 wire from Botani-Labs JPMorgan Chase
2 5/11/2020
account to Hamsa Holdings Bank of America account
$21,000 wire from Hamsa Holdings Bank of America
3 6/23/2020
account to First California Escrow Comerica Bank account
$731,267.25 wire from Hamsa Holdings Bank of America
4 7/13/2020
account to First California Escrow Comerica Bank account
$10,000 wire from Hamsa Holdings Bank of America
5 10/1/2020
account to Driggs Title Agency
$300,000 teller transfer from Hamsa Holdings Bank of
6 10/14/2020 America account to Hamsa Holdings Bank of America
account
$104,656.20 cashier’s check from Granada Holdings Bank
7 10/14/2020 of America account made payable to Douglas County
Combined Courts
$80,343.80 cashier’s check from Granada Holdings Bank
8 10/15/2020 of America account made payable to Douglas County
Combined Courts
$518,872.99 wire from Hamsa Holdings Bank of America
9 11/4/2020
account to Driggs Title Agency
All in violation of Title 18, United States Code, Section 1343.
Counts 10-15
Money Laundering, 18 U.S.C. §§ 1957(a) and 2
18. The Grand Jury re-alleges and incorporates by reference paragraphs 1-16
of this Indictment.
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19. From in or around April 2020 through in or around May 2022, including on
or about the dates identified below, in the State and District of Colorado and elsewhere,
RICO TOMAS GARCIA (“the defendant”), knowingly engaged in, attempted to engage
in, and aided, abetted, counseled, commanded, induced and procured, monetary
transactions, specifically, deposits, withdrawals and movements and transfers of funds
and monetary instruments, in and affecting interstate commerce, to entities listed below,
in criminally derived property of a value greater than $10,000 that was derived from
specified unlawful activity, specifically, wire fraud in violation of Title 18, United States
Code, Section 1343, knowing that the property involved in such monetary transactions
represented the proceeds of some form of unlawful activity, as follows:
Count Date Description of Wire
$54,373.47 ACH payment from Botani-Labs JPMorgan
10 5/5/2020
Chase account to Capital One Auto for a vehicle
$21,000 wire from Hamsa Holdings Bank of America
11 6/23/2020 account to First California Escrow Comerica Bank account
for a residence in Topanga, California
$731,267.25 wire from Hamsa Holdings Bank of America
12 7/13/2020 account to First California Escrow Comerica Bank account
for a residence in Topanga, California
$104,656.20 cashier’s check from Granada Holdings Bank
13 10/14/2020 of America account made payable to Douglas County
Combined Courts for a residence in Sedalia, Colorado
$80,343.80 cashier’s check from Granada Holdings Bank of
14 10/15/2020 America account made payable to Douglas County
Combined Courts for a residence in Sedalia, Colorado
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$518,872.99 wire from Hamsa Holdings Bank of America
15 11/4/2020 account to Driggs Title Agency for a residence in Las
Vegas, Nevada
All in violation of Title 18, United States Code, Sections 1957(a) and 2.
Forfeiture Allegation
20. The allegations contained in Counts One through Fifteen of this Indictment
are hereby realleged and incorporated by reference for the purpose of alleging forfeiture
pursuant to the provisions of Title 18, United States Code, Sections 981(a)(1)(C),
982(a)(1), and Title 28, United States Code, Section 2461(c).
21. Upon conviction of the violations alleged in Counts One through Nine of
this Indictment involving the commission of violations of Title 18, United States Code,
Section 1343, defendant RICO TOMAS GARCIA, pursuant to Title 18, United States
Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461(c), shall
forfeit any and all of the defendant’s right, title and interest in all property constituting
and derived from any proceeds the defendant obtained directly and indirectly as a result
of such offense, including, but not limited to: 1942 North Topanga Canyon Boulevard,
Topanga, California, 90290; 7170 Dakan Road, Sedalia, Colorado 80135;
approximately $5,274.24 in funds from Wise, Inc. account ending in 6151;
approximately $1,373,487.58 in funds from Bank of America Account ending in 1861;
and a money judgment in the amount of proceeds obtained by the defendant and the
scheme.
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22. Upon conviction of the violations alleged in Counts Ten through Fifteen of
this Indictment involving the commission of violations of Title 18, United States Code,
Sections 1957, and 2, defendant RICO TOMAS GARCIA, pursuant to Title 18, United
States Code, Section 982(a)(1), shall forfeit any and all of the defendant’s right, title and
interest in any property, real or personal, involved in the offenses, or any property
traceable to such property, including, but not limited to: 1942 North Topanga Canyon
Boulevard, Topanga, California, 90290; 7170 Dakan Road, Sedalia, Colorado 80135;
approximately $5,274.24 in funds from Wise, Inc. account ending in 6151;
approximately $1,373,487.58 in funds from Bank of America Account ending in 1861;
and a money judgment in the amount of property involved in the offenses.
23. 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 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), as incorporated by Title 28, United States Code, Section 2461(c), to seek
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forfeiture of any other property of said defendant up to the value of the forfeitable
property.
A TRUE BILL
Ink signature on file in Clerk’s Office
FOREPERSON
COLE FINEGAN
United States Attorney
By: s/ Rebecca S. Weber
Rebecca S. Weber
Assistant United States Attorney
United States Attorney’s Office
1801 California Street, Suite 1600
Denver, Colorado 80202
Telephone: (303) 454-0100
Fax: (303) 454-0409
E-mail: Rebecca.Weber@usdoj.gov
Attorney for the United States
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