Category: Eastern District Court of Tennessee

NOTE THIS CASE HAS BEEN UNSEALED.

TESTIMONY OF PARKER STILL Before the GRAND JURY
Impaneled February , 2017 And Convened in
THE EASTERN DISTRICT OF TENNESSEE
·
Meeting in
Grand Jury Room
Howard H. Baker , Jr . Federal Courthouse
800 Market Street
Knoxville, Tennessee

Testimony July 18, 2017
Examination Conducted by :
CYNTHIA DAVIDSON
Assistant United States Attorney 800 Market Street Knoxville, Tennessee

KENNEDY REPORTING SERVICES 205 NORTH 20TH STREET SUITE 408
BIRMINGHAM, ALABAMA 35203
P R O C E E D I N G S

July  18, 2017  2:59  p.m.
PARKER STILL,  a  witness  of  lawful  age  having  sworn  to  tell  the  truth,  the  whole  truth,  and nothing  but  the  truth,  was  examined  and  testified  as  follows:

EXAMINATIONBY MS. DAVIDSON:

Q  Could  you please  state  and  spell  your  name for  the  record?

A My name is Parker Still. Last name S-T-I-L-L. 

Q And what do you do?

A I ‘m a Special Agent with the Federal Bureau of Investigation. I’m assigned currently assigned to the Knoxville Division.

Q And how long have you done that?

A Approximately five years.

Q And what type of experience did you have prior  to being with the FBI?

A Prior to joining the FBI, I was an attorney for approximately seven and a half years. Still licensed to practice law. During my time as an attorney I did both prosecution and I’ve done criminal defense work.

Also a graduate of the Army JAG School in Charlottesville, Virginia.

Q And do you have a specialization at the FBI? Are you in a squad?

Do you investigate a specific type of cases?

A Yes, ma’am. I handle primarily white collar cases involving, you know, bank fraud, wire fraud, mail fraud, general financial crimes. Of course, we’re a small division. We all kind of have to help, you know, out on other cases. So I do stuff with the violent crime squad as well.

But, primarily, I’d say 90% of my work is dedicated to white collar crime.

Q  And so  in  -. in  your  role  with  the  FBI,  did  you  have  an  occasion  to  investigate  a  scheme to  defraud  the  USAA?

A  Yes,  ma’am,  I  did.

Q  And what  is  USAA?

A  Okay.  USAA is  a  -. what  I’ll  -. I’ll  call  it  a  kind  of  a  multi  facet  financial  institution.  It’s  -. the  banking  part  of  USAA is  federally  backed by the Federal Deposit Insurance Corporation commonly referred to as the FDIC. They offer products such as insurance.  I’m sure some of y’all have probably seen the USAA commercials on TV.

They’re also involved in real estate and retirement arenas as well. That’s just some of what USAA does.

And I don’t think I said what it was. U –it’s United States Automobile Association. And that’s so when I refer to USM, that’s what I’m referring to it as today.

And, again, headquartered or based out of Texas.

Q And so tell me about your investigation.

How did this come to your attention and what did you learn? A Well, first let me back up just one second there, Ms. Davidson.

So just kind of you know how investigations come to the FBI. We rely a lot, and it’s something that people don’t realize, on citizens just contacting us with various financial fraud matters that they might be suspected of.

We also rely heavily on financial institutions, banking officials, those type of individuals to reach out to us and provide us information, which is what ultimately happened here that the Director for Financial Crimes for USAA reached out to us about this situation with Mr. Randall Keith Beane.

Q And so once you –what did you learn from this transaction with him -.

A Sure.

Q –or this communication with him? A Yes, ma’am. From this communication, it continued and repeated communications with USAA, I have learned that beginning on or about July 5th, 2017 and continuing through July 11th, 2017, Mr. Beane embarked in a scheme to defraud USAA.

The scheme involved the purchase and attempted purchase of certificate of deposits that were offered by USM through their web site. This is –so how the scheme would work would be that Mr. Beane would use a mobile app to engage the USM web site. Once he was here he would then go through a process to purchase a certificate of deposit.

From this point he would enter a –he entered a routing number, which was a legitimate routing number for the Federal Reserve Bank.

Q And was that routing number, did it end in 1135 no, I’m sorry, the wire –the routing number –what was the routing number?

A It ended in 1452.

Q 1452. A And, again, that was a valid routing number for the Federal Reserve Bank.

A And just so you again, I apologize, I like to give a little detail about what that is. The Federal Reserve Bank is the central bank of the United States. It’s commonly referred to as like the bank of the U.S. Government.

Q And is that located in New York, New York?

A Yes, ma’am, it’s my understanding. I think they have several locations, but this one, in particular, is New York.

So he would enter the –a valid routing number, but when it came to enter a funding source he entered a fraudulent account number. And that number was essentially Mr. Beane’s Social Security number with one number altered.

Q And we allege that number in the Indictment multiple places.

Is that number ending in 1135?

A That is correct, yes, ma’am, 1135.

Q And so that was basically his Social Security number with one number wrong?

A That’s correct, yes, ma’am.

Q And so what did he do?

A Well, there were numerous attempts by Mr. Beane through this scheme. He attempted to obtain, like I said, numerous CDs.

And it’s my understanding the way the USAA system works, that those were funded by USAA, but ultimately reversed, however, two of these transactions did get through.

Q And what does that mean?

A So they were funded. Real money went into -.into this CD, two of them. One for 500,000 and one for 999,000. Y’all have to forgive me, I am lawyer, so these numbers  run  together.

Nine  nine  nine  cormna, zero,  zero,  zero,  that’s the  -. that’s  the  two CDs that  were  actually  funded,  yes,  ma’am.

Q  And so what  appeared  once  these  CDs were  funded?

A  Okay.  Once these  CDs were  funded  Mr.  Beane  then  proceeded to liquidate the CDs, cash them out early, incurring a penalty for doing so because they were 30-day CDs.

So he incurs a penalty and then takes that -.the money from the CD and moves it into his personal bank account at USM.

Q And then what did he do with these funds?

A The funds were then used for basically personal expenses. One –a portion of the funds approximate the exact number, four nine three one ten sixty-eight, $493,110.68, was used to purchase a 2017 Integra Cornerstone 45 foot motor home.

And then additional funds from what USM provided us were used to pay off –you know, pay insurance needs, pay off, you know, USM credit cards and that type of stuff within the USAA system, yes, ma’am.

Q And what happened to the one, the $990,000 one?

A USM was able to freeze a significant portion of that. The –I can give you the exact number if you’ll bear with me one second here.

The $945,250.01 of the nine nine nine and three zeros was frozen by USAA.

Q So did you get some –did you bring something with you to help kind of explain how he did this to the Grand Jury?

Are there some documents or some screen shots that would assist you in your testimony? \

A Yes, ma’am, there is. There are some documents that would. Q So where –what are the documents that I’m getting to show the Grand Jury? A Okay. These documents, Ms. Davidson, are the -.are basically screen shots. So what would these documents would be are what Mr. Beane was looking at when he created this this CD.

Q And so all of this was done on an iPhone app; is that correct?

A It was done on a –right, an application, an app, yes, ma’am.

Q So you were saying these were basically screen shots?

A Right.

Q Where did you get these?

A These were provided to us by USAA. And it’s my understanding these were –so what USAA does, they have a data base, right, where they’re able to –when someone has a –has a session, they log in, they have a session. They’re able to essentially save that within their data base for an amount of –for a number of days.

And in cases like this where we have fraudulent activity they’re able –we’re able to reach out to them and they’re able to provide us exactly what the member, in this case, Mr. Beane, would have been looking at when this transaction took place.

Q So let me show you page number 1.

A So this

Q What is this?

A So this is my understanding from USAA, this is what Mr. Beane would be looking at initially. You’ll see at the top, it says open a bank account. And this will be kind of the page where you take your first step of action in this type of scheme.

Q And was Mr. Beane a member of USAA?

A He was. It’s been confirmed through USAA that Mr. Beane was, in fact, a member.

Q And did he have multiple accounts?

A He did.

Q And so do you know exactly when he became a member of USM?

A I believe it’s in May of 2016 is the member date.

Q So you have to be a member of USAA to –to do these transactions?

A Yes, ma’am, that’s my understanding.

Q So this is the first.

Is there anything else that you’d like to point out to the Grand Jury about this?

A Not really. Just notice the USM symbols on here and then, of course, the open the bank account at the top.

Q And then page 2.

A Okay. Page 2 is –it’s kind of difficult to read there. I can see there where it says –I think it says  account  type.  There it  is.  So you’ll  see  it’s  account  type  is  a  certificate  of  deposit.

Q  So you’re this is just the next screen you would see?

A Right. And you’ll see on the bottom there it says, you know, do you want to add an account holder. You can check that box if you wanted to.

But, yeah, so that’s what they’re going to do. It’s going to be a certificate of deposit.

Q And then is page 3 of what you’re providing?

A Right, yes, ma’am. This is –all right. So there you’ve got Mr. Beane identify himself, Randall Keith Beane. Provide a mailing address, physical address and an e-mail address all –and, you know, identifiers for Mr. Beane there.

THE WITNESS: Wasn’t it Ricky on one of the forms?

Q (By Ms. Davidson) No, Ricky –do you know who Ricky is?

A Sir, it’s my understanding, again, provided -.information provided to me by USM that that is possibly his brother -.

THE JUROR: Okay.

THE WITNESS: –Mr. Beane ‘ s brother.

THE JUROR: So it’s somebody else, okay.

THE WITNESS: Yes, sir.

Q (By Ms. Davidson) So tell me if I am correct, but and to your understanding, he could make this account out to someone who was also on the account with him, like in this case, Ricky E. Beane, is that

A That’s my understanding of how it works.

Q But he didn’t have to and here is not checked?

A That’s correct. I don’t see it checked there.

Q Did we already do page 3?

A Yes, ma ‘am.

Q Page 4?

A Okay. Page 4, if you’ll see right there you this is a –it tells you what kind of CD do you need,
fixed, adjustable, variable rate.

There’s information about interest being paid. And you’ll see at the bottom it says, (Reading) Deliver all certificates of deposits online.

So this is an important page right here because it tells the account features. Ladies and gentlemen –so I’m looking at the top. You’ve heard me talk a little bit about this was a fixed CD.

It –the box checked super because of the dollar amount. You’ll see also it’s a one-month term CD there. So that’s –that’s and then you’ll see just how you want the interest to be paid, add it to the balance monthly.

Q So this is where you find it; right?

Q Page 6?

A Yes, ma’am.

So this is, again, make your initial deposit. It says from checking or savings account. Where, it’s my understanding from this, if you had a USAA account that you wanted to put money in there from, and if you had another account with them, you could put that money in at this –at this stage right here, but that’s not what happened.

Q And so it shows use another account?

A Right.

Q So did Mr. Beane click on use another account?

A That’s my understanding, yes, ma’am, he would have clicked on that.

Q And then here you put the initial deposit, which he would put the amount in?

A Right. And I think it’s reflected later on,  yes, ma’am.

Q And then go to page -.

A Okay. So, Ms. Davidson, if we could just zoom in on that top a little bit. So let’s go through this one. It kind of surrmarizes.

So we’ve got a certificate of deposit.

We have the primary account holder as Randall

Keith Beane. The additional account holder is Ricky E. Beane. The account features you see there as a fixed super CD. All the stuff we’ve been through about the one-month term.

And then most importantly the initial deposit. You’ll see this one for $999,000. Funds transferred from a non-USAA account.

And then when I was talking about, right, here is it, the routing number to the Federal Reserve Bank in New York was previously referenced, and the account number, Mr. Beane’s Social Security number minus one –with one number changed on there.

Q And so this routing number –that is the routing number, the actual routing number to the Federal
Reserve Bank?

A That is my understanding, yes, ma’am.

Q And that is –this number is the fake account number; right?

A Right, yes, ma’am.

Q Which is Mr. Beane’s Social Security number minus one digit?

A Yes, ma’am.

A JUROR: Is that suppose to be the account number for the USM, the account that he owns?
MS. DAVIDSON: No. This right here –and correct me if I’m –this is what he’s purchasing the CD with.

And so when he clicked on, remember from the other page, he clicked on use another account. THE JUROR: Okay. MS. DAVIDSON: So this is not a USAA account.

He’s basically paying for this with Federal Reserve accounts. 

THE JUROR: Okay.

Q  (By Ms. Davidson)  See

A  Yes,  ma’am.  So that’s  the  scheme.  

Q  -. is  that  right?

A  That’s  the  scheme,  right.

A JUROR:  I’ve  got  a  question.

How can he buy  a  CD -. I  mean,  wouldn’t  they  verify  his  account  before  they  put  the  money in  the  CD?  

THE WITNESS: Yes,  sir.  And I  can  kind  of  go  into  that.  So just  for  everyone’s  benefit  the  question  that  was asked to me was, wouldn’t they verify the funds before it went to a CD, which is a good question, and, yes, the answer is generally that is how it is done.

However, in this case, it was very similar to the best way I can describe it would be a bad check that essentially USAA populated, you know, in this case the 999,000, USAA–he puts this information in, USAA funds it as in my mind I’m thinking as if somebody presented a bad check to USAA the funds go into the account.

Once USAA realizes –once they get a notice back that these –it’s not a valid account number, USM reverses the transaction, however, the funds have already been withdrawn.

Does that make sense, sir?

THE JUROR: You’d  think  the  computer  would kick  it  out?  

THE WITNESS: Yes,  sir,  you’d  hope  so.  Yes,  ma’am.

A JUROR:  I  worked years  ago,  back  in  the  early  ’70’s,  at  a  bank  in  Los Angeles  -. 

THE WITNESS: Yes,  ma’am.

THE JUROR:  -. and quite  frequently  some of  our  large  union  trust  funds  would buy CD -. these  short  terms  CDs for quick turnover and generation of money. 

They never would turn a CD loose until the money had been officially transferred. 

THE WITNESS: Yes, ma’am. MS. DAVIDSON: Well, that’s obviously best practices. But, in this case, USAA turned over the money.

THE JUROR: In other words, they get stuck?

MS. DAVIDSON: Well, that’s not for us to determine. USAA turned over the money.

A JUROR: Yeah. But it was fraudulently obtained is what it amounts to.

MS. DAVIDSON: Yes.

A JUROR: But the routing number actually is from the Federal Reserve -.

MS. DAVIDSON: Yes.

THE JUROR: –and that may have had something to do –did –did –could that have had something to do with USAA’s thinking, you know, this is a transfer from a Federal –from a Federal Reserve account?

Is that part of the scheme or -.

THE WITNESS: I’m just –I’m not real sure, sir. I mean, if –what –you know, what USAA’s thinking was or –I’m sorry -.

THE JUROR: I mean, I -.THE WITNESS: –if –can you ask it a different –okay.

THE JUROR: This –this was not a transfer from a bank with a specific routing number, this was a transfer from a Federal Reserve account, a Federal Reserve bank account. 

THE WITNESS: Yes, sir. THE JUROR: I can’t –I don’t think I can have a Federal Reserve bank account, can I? 

THE WITNESS: Yes, sir. I wouldn’t –I mean, I don’t want to speculate about what you could or could not have. 

But I would answer that it is my belief that the Federal Reserve target –was targeted as part of this scheme knowing what we know about individuals like Mr. Beane and these type of activities, yes, sir.

Q  (By Ms. Davidson )  And so  let’s  talk  -. how  -. tell  me about  the  motor  home.

A  The motor  home is  -. as  we previously  -. as  we  just  discussed,  we see  a  transaction  of  funds  of  $493,110.68  being wired from USAA to Whitney Bank, another FDI insured financial institution located –primarily based in Louisiana. And, again, this was for Mr. Beane’s purchase of this motor home.

Mr. Beane –this was at Buddy Gregg here in Knoxville. Mr. Green —Mr. Beane was actually arrested by us while in the vehicle in the driver’s seat with the engine running about to –you know, about to take off. 

And so that’s –that is –that is where the bulk of the funds went on this case was for that purchase.

Q And so tell me about why Whitney Bank and Buddy Gregg took this money. 

A Okay.

Q Did they –did they ask questions about why somebody is paying $99,000 in cash for a –a motor home or 

A Yes, ma’am. They –let me –let me back up just a little bit there.
It didn’t take long for USAAto realize what had happened; right? I mean, you know, this –this type of money – these are –these are good investigators at USAA. So they do, they reach out to –it’s my understanding that they reached out to Buddy Gregg and to Whitney Bank in order to –to, you know, basically let them know that this money is potentially fraudulently acquired.

So this is where we see the introduction of a lady named Heather Ann Tucci, T-U-C-C-I, last name Jarraf, J-A-R-R-A-F. And this is where we first se her come into -.come into play.

And the reason we know about this is because of recordings have been posted online that we’ve required and listened –you know, various of us have listened to some or part of all of these. I know I’ve listened to part of them or the relevant stuff here. The -.

Q And who put these recordings online?

A You know, I’d be speculating as to that to say exactly who put those online. You know, I think –I’d just know I’d just be speculating to put those online.

But what happened is –so these –this is what is –what happened is an interview or a meeting takes place at Buddy Gregg. We’ve been able to verify participants at this meeting where individuals, salesmen and another individual, Buddy Gregg.

Mr. Beane is present in the room as identified. And we also hear a lady by the –Ms. –Ms.
Jarraf identify herself on the phone. And what –what she does, she holds herself out as an attorney representing Mr. Beane and Mr. Beane’s trust.

[incorrect, she said she was a lawyer, an attorney is Bar Licensed, there is a legal difference]

And I want to make the –I want to make the Grand Jury aware that she –she –apparently she is an attorney. She’s not licensed in the state of –not currently licensed in the state of Washington where she, at one  time,  was  licensed.  And she’s  not  licensed  in  the  state  of  Tennessee  based  on  our  research.

So what  she  does  here  is  she  makes representations  that  she  is  -. she’s  representing  Beane,
that these funds belong to Mr. Beane. She –she repeatedly confirms –Mr. Beane is asked by her to confirm that these are your funds in front of everybody.

She suggests two things. She suggests –she’s throwing out issues that may be here. She says, “Well, maybe there’s a problem with USAA. Maybe there’s a problem with the source funding of the bank.”
So it’s my –from listening to this recording feel that she –well, just to surmnarize it as saying, it was an attempt by her to convince Buddy Gregg and also later in the call a representative from Whitney Bank.

Remember Whitney is the one –is the bank who received the funds, to convince them that the funds belonged to Mr. Beane and the transaction should go through.

Q And since Mr. Beane was arrested by the FBI; is that correct?

A He was arrested. Just to clarify, he was arrested by us on –he had an outstanding warrant on a state charge. 

[Initially stated as a charge in Jasper County Colorado, when no such county exists.  Later changed to Jasper South Carolina where he had some minor drivers license and vehicle charges unresolved. Mr Beane was left incommiunicado and beaten for a purported misdeamnor warrant. None of it made sense and his case was sealed.]

Q And since that arrest have –has Ms. Tucci-Jarraf or however you say her name, have things been posted online regarding that?

A Yes, ma’am. We’ve seen a video now, a video and audio where she explains about Mr. Beane obtaining CDs, cashing them out early, which I would say to the Grand Jury that that shows knowledge.

Q Yes.

A And she admits to following along to make sure everything is running well and preparing legal documents.

She stated that the coach deal, I say –when she says coach deal, I take that to mean the motor coach purchased from Buddy Gregg was successful and homes were going to be next.

Based on my investigative experience that, to me means that, they had success on this type of transaction. They were going to try to do something with real property next.

She stated in there that Beane wanted to test the scheme out and see what the road bumps were and find solutions to those. That was, in part, just a summary of –of this of this recording that we see, yes, ma’am.

Q And so what do –do you know what the web site was that all this stuff was posted on? 

A I do, ma’ am. I may have to

Q I don’t know that it’s relevant. I just A Yeah. I can get for that the Grand Jury if if necessary.

A JUROR: It does seem strange that they would put it online -.

THE WITNESS: Yes, ma’am.

THE JUROR: –to where it would be accessible by 

Q (By Ms. Davidson) Well, do you know whether or not this scheme such as this has been online?

A Yeah. There has been –not this exact scheme, but there has been videos published out, one in particular, that we’ve –we have knowledge about that describes a scheme very similar to this. I think it’s something phrased like, “Learn how to pay your bills.” It’s –it’s definitely a –out there, a scheme similar to this.

Q Is there a –oh, I found it, it’s in my pros memo.

A I provided –I knew I —I-UV.

Q  This  is  a  -.

A  The  -. the  most  of  the  -. we see  it  at  a  web  site  I-UV.com  is  where  is  where  we see  -. was where  that  video was  -. was  on.  

It’s my understanding, from our cyber guys, too, that maybe –again, I’m not an expert in this field, but it could have been on YouTube. I’m not sure about that, but it could have also been on some of that.

But I-UV —I-UV.com is where, you know, we all seen it.

Q JUROR: What does that mean, I-UV?

A THE WITNESS : I don’ t know, ma ‘ am, I ‘m sorry.·  I-UV.com, I-UV.com.

Q (By Ms. Davidson) And so in –is she on a video on this web site explaining everything?

A Yes, ma’am. The the –she is on the video. And it has –and, actually, at the bottom left on the screen is –it has her initials. Like there’s a couple of people on this video. It’s kind of like a webcast almost is how I would describe it. And on the bottom of it, it has her initials on it if I remember right down at the bottom left.

Q And so she –so there’s an audio, which you’ve listened to, of her?

A There’s an audio out there at the –at the dealership that’s –that we’ve obtained offline.

And then there’s a second video that –where where she, you know, explains kind of what I said earlier about how Mr. Beane obtained the CDs and cashed them out early.

Q And on this web site are there, in fact, like the bill of sale from the motor home and other things such as that?

A I have seen that. I can’t recall if it’s this specific web site, but posted it online where it appears to me, again, based on my investigative experience, that this –these documents were posted online in an effort to show, look, he really did own this, you’re wrong government essentially.

A JUROR: So to clarify, do you think those postings are directed towards the government?

THE WITNESS: If I may, my name has been put out on –on, you know, for public –in public forum by –by some individuals, you know.

We would refer –we would refer to it as –I think our cyber guys said they may be trying to dox me, which we would refer to that as any information that’s available, you know, about me online, they would try to put it out in the public forum. Again, that’s my understanding, yes, sir.

So I  -. so  to  answer  your  question,  yes,  I  would  think  that.

Q  (By Ms. Davids on)  But  did  they  -. did  -. does  she  describe  the  purchase  of  the  CD with  the  Federal  Reserve  routing number?

A She –she –I’ll –I’ll remember from the video. Actually have –I have it with me.

The –the –she does talk about that -.explain how Mr. Beane obtained the CDs and cashed them out early.

Now, specifically, on the federal routing number I cannot recall if she says that specifically.

Q And so based on everything you just told me about, is there evidence that Beane and Tucci-Jarraf knowingly conspired, confederated and agreed with each other to corrmit money laundering?

A Yes, ma’am, there is.

Q So when you look at the timing of all this, this is what’s amazing to me this the –basically the minute the CD is funded he transfers it to Whitney Bank, I mean, you know, within a day or so?

A Within a day or so, yes, ma’am. It is not -.the money does not stay long, which is –which is characteristic of money laundering.

Obviously if you leave it in the bank what happens with his –the larger sum, the approximately 945 figure I gave you earlier, the bank will catch on and grab the money back.

In this case, though, he pulled out a significant portion and bought the motor home with it.

Q And so did you learn from any representatives of either Buddy Gregg or Whitney Bank that they spoke to an attorney regarding these funds? A This morning one of our investigators I -.again, I believe did confirm that –that the two the individuals we heard on the audio were Buddy Gregg employees. Now, whether he confirmed that they spoke to an attorney I don’t know, but I –you know, we have that audio. And it’s –it’s clearly available.

Q  And so  the  money transferred to Whitney  Bank.  And was it  -. represents  proceeds  of  some form  of  unlawful  activity?  

A  It  is.  It’s  representative  of wire fraud and bank fraud, which is what happened  here.  And,  like  I  said  previously,  this  is  -. this  is  something we see commonly that bad guys, what they do, they purchase things, they hide money, they try to conceal it.

And, yes, wire fraud and–· wire fraud and bank fraud are two –are two common charges that we see associated with money laundering activities because you’ve got to do something with it.

Q  So I’m going to go specifically through the counts

A  Okay.

Q  -. to  make sure  that  we -. I’m  sorry  -. okay?  Count  1,  and  I  think  you’ve  gone  through  the
scheme?

A  Right.

Q  On July  6th,  2017, Beane  transferred  funds  he did not own via wire using Federal  Reserve  routing  number  1452 and fictitious account number ending in 1135 to purchase CD number 4613 in the amount of $500,000?

A Yes, ma’am, on or about that date, absolutely.

Q And so tell me about the –explain the wire.

A So the –so what we see here is the funds were you know, when we generally see wire fraud transactions, you know, money had to be –it use to be a lot of times we’d see paper checks, right, paper check to somebody, but also what –within the –which in the financial institutions wires are corrrnonly used.

So, you know, from one account there’s one -.you’ve got a funding source and an account or you can -.you know –and so the funding source is here and then puts the money in the account here through an electronic process corrrnonly referred to as a wire transfer.

Q And did these wires transmissions go through -.one of the –one was FED ACH .

A Some –some were –some were ACH –most all of these were what we refer to as the automated clearinghouse, ACH transfers. And then I –my understanding that one was through FED Wire.

Q And what is that?

A Let me give you I can give you a little better explanation. The –so let’s just talk about an ACH. That’s the –like I said, it’s an automated clearinghouse. And it’s essentially a network for financial institutions.

Again, it kind of goes back to my check. You know, we’re not using checks so much anymore, we’re using one financial institution talking to another financial institution through this automated clearinghouse.

So what you have, you have an originator that, you know, you can have a direct deposit or a direct payment. And then that’s entered electronically and goes to another, you know, financial institution.
So that –and a FED wire works very similar to the –to the same –in this case I’m using FED wire.

You originate funds by instructing a Federal Reserve Bank to debit funds from its own account and credit funds to another participant. So just we’re talking wire transfers, yes, ma’am.

Q And so this –he used in Count 1, he uses an iPhone app to commit a wire transmission. And was that a signal in interstate commerce?

A Yeah. It would be a mobile app. So, yes, ma’am.

Q I keep saying iPhone app. Was it an iPhone app?

A It was. It was a mobile app, yes, ma’am. It could be an iPhone or –yes.

Q It was an i what –when you say iPhone, it could be used either on an iPhone or -.

A Or an iPad, right -.

Q iPad?

A I’m not good at that stuff, but, yeah. On those electronics y’all are probably –yeah, it was an app.

Q So it was an app that was on some sort of mobile device?

A Yes, ma’am. That is information as provided to us by USAA.

Q And they can tell that by looking at their records

A Right.

Q –that it was done through the –through an app?

A Undoubtedly, yes, ma’am.

Q And so this iPhone app did a wire transmission. And was that signal in interstate commerce?

A Yes, ma’am.

Q And based on that he put in this routing number and this account number to purchase a CD in the amount of $500,000?

A  Yes,  ma’am.

Q  And that  happened  on  7-6-2017?

A  Yes,  ma’am.  It’s  my understanding  he  -. some of  these  were  initiated  on  7-5,  actually  went  through  on  7-6,  yes,  ma’am.

Q And so –and where does Randall Keith Beane reside?

A Randall Keith Beane resides in Knoxville, Tennessee, yes, ma’am.

Q And let’s talk about Count 2.

The CD number -.

A And, Ms. Davidson, again, USM is based out of Texas.

Q Texas?

A Yes, ma’am.

Q And let’s talk about Count 2.

What happened in Count 2, which is on 7-6-2017?

A Okay. That is –so then you’re seeing CD number was closed and the funds, that’s the 499,909.55 –59 cents was transferred to Beane’s personal account at USAA. Again, would have been initiated by Beane. And that is the CD being liquidated minus the fee for the early liquidation fee and transferred to a personal bank account.

Q And so did –that wire transmission, was it a signal in interstate commerce?

A Yes, ma’am.

Q And was this wire transmission in furtherance of the fraud?

A Yes, ma’am.

Q So that is the end of what he basically transfers his –the 49 –I mean, 499,909.59 to his own account?

A Yes, ma’am.

Q And so do you know what –why some of the money is missing?

A Yes, ma’am. It’s my understanding that that would be an early liquidation fee because it was the 30-day fixed CD.

Q And then Count 3 on the same day?

A Yes, ma’am, the same thing. This is the $999,000 CD very similar to the $500,000 CD that was funded.

Q And so he did this with the app?

A Yes, ma’am.

Q And with the app he used the routing number ending  in  1452?

A  Yes,  ma’am.

Q  And the  fictitious  account  number 1135?

A  Yes,  ma’ am.

Q  And then  the  CD was funded  in  the  amount  of  nine million  nine  -. I  mean,  sorry,  is  that  right?  No.  $999,000?

A  That’s  correct.

Q  And back  to  it.  Did  -. this  transaction,  was  it  a  wire  transmission of a signal in interstate commerce?

A Yes, ma’ am.

Q And was this transmission in furtherance of the fraud?

A Yes, ma’ am.

Q Count 4 also on the same day, 7-6-2017, CD number 4623 in the amount of $999,000 was closed and funds in the amount of $998,819 eight hundred and nineteen dollars and thirty-six cents were transferred via wire to one of Beane’s personal bank accounts, a number ending in 3062?

A That’s correct, yes, ma’am.

Q Now, I’ll ask you again: Was –did he conduct this transaction on an app -.personal account number 4026 and to Whitney Bank, account number 4960.

A  Yes,  ma’ am.

Q  -. with  a  wire  transmission?

A  Yes,  ma’ am.

Q  And was it  a  signal  that  affected  interstate  commerce?

A  Yes,  ma’ am.

Q  And was this  transaction  in  furtherance  of  the  fraud?

A  Yes,  ma’ am.

Q  On to  the  next  day,  July  7th,  2017,  Count  5.  Beane  transferred  $493,110.68  via  wire  from his – And this account number belonged to Buddy Gregg; is that correct?

A Yes, ma’am, that’s correct.

Q For the purchase of a 2017 Integra Cornerstone 45B 45 month –45 foot diesel motor home?

A Yes, ma’am.

Q So tell me about that transaction.

A This was the transaction where the motor home was purchased. So Mr. Beane would have authorized the wire to be sent up from his USAA account to the Whitney –to Whitney Bank for the –for the purchase of that motor home. And this would be essentially a money laundering transaction
as well.

Q And so was this done via a wire transmission?

A Right, yes, ma’ am.

Q And was it –was wire this transmission a signal in interstate corrrrnerce?

A It was, yes , ma’ am.

Q And was this transmission in furtherance of the fraud?

A It was. In fact , this one, ma’am, it ‘s my understanding , was the use of the fed wire transfer .

Q The fed wire transfer?

A Uh-huh (affirmative response).

Q And so what is the timing of all –what is the fact that it ‘ s the very next day tell you?

A Right . You’ ll notice the timing is all from -.it ‘ s a two-day span from July 5th to July 7th . And that tells me that Mr. Beane would know that this money is not rightfully his and has to be moved out of this account. That would be -.Q Basically irrrrnediately? A Irrmediately , yes , ma’am.

Q And so -.

A JUROR: There are two different personal account numbers there from 3062 to 4026 , was this the
accounts?

A JUROR: Look at  Count  2 and  see  if  that  says  4026?

MS. DAVIDSON: It  does.

THE JUROR: So he put  the  $500,000  in  one  account  and then  nine  hundred  -.

MS. DAVIDSON: See,  he puts  the  -. if  you notice  the –yeah

THE JUROR: Puts all of the money in 3062 and then takes the money out of 4062?

MS. DAVIDSON: Yeah, he must have transferred -.

Q (By Ms. Davidson) He had multiple accounts at USAA,didn ‘ t he?

A Yes, ma’am.

THE JUROR: Then you need to add them to –you need to add the transfer from the 3062 account to the 4026 account?

MS. DAVIDSON: Well, they were within his own accounts. And so I didn’t really see –nobody –because he had multiple accounts at USAA. And so when he ‘ s just transferring one from one account to the other -.

THE JUROR: But I don’t know that he didn’t have a half a million dollars in his 4026 account to start with?

If he had a half a million dollars in his 4026 account to begin with, didn’t use the money that he had attained through the other wire transfer, then that’s a legitimate  thing.  That’s  -. the  last  one  is  a  legitimate  transfer.

THE WITNESS: I’m  not  -.

MS. DAVIDSON: Again  -. I  mean,  I  don’t  know how  you could  to  say  that  when it  -. you know, the  money is  gone, you know the 500,000.

Q (By Ms. Davidson) Did –is it your understanding that he had $500,000 in any account at USAA
that was a valid $500,000?

A No, that’s not my understanding. In fact, that’s would be contrary to what USAA has –has
explained to us through their investigation.

THE JUROR: I understand that, what you’re saying, but, you know, unless you –unless you somehow show me that the money went from the 3602 account to the 4026 account I don’t know that.

MS. DAVIDSON: Well, you just had under oath testimony that he did not have $500,000.

THE WITNESS: And I have records, I’m happy to show. I have records.

I –I don’t –I don’t know, but I’ll have to check that and see. But, I mean, I do have –I brought USAA bank records with me and take a break.

Q (By Ms. Davidson) Well, did USAA–well, they took all the money they could get from it in order to try to recapture this money, did they not?

A That’s my understanding that they reached out and grabbed that.

And I can see –I have a transaction sheet in here I can –I can –I’m happy to pull it out and very simply and show everyone. It would be no problem, it’s on the top. I’m happy to do that and put it on the board.

Q Well, we can take a break here in a minute and we might -.

A Sure. I’d be happy to.

Q And, you know, just for future reference. I don’t have to charge everything that I know is criminal. just charge –you know, it’s a prosecution decision. You just charge what you think is most relevant.
Because, I mean, as he testified to there’s actually a total of 31 CDs that he purchased that he –he
wasn’t  able  to  cash  any  of  those.  So I  didn’t  charge  them.

So are  you following  me?

Not everything  that  is  known is  charged  in  this  Indictment.

THE JUROR:  Sure.

Q  (By Ms. Davidson)  So in  regard  to  Count  5.  Let’s  see.  It  went  from  account  number 4026 to  4960;  right?

A That’s correct, yes, ma’am.

Q USAA that  And is that Beane had an  4026, access  was to?  that  a  personal  account  at
A Q

A  That’s my understanding, And was the money in that That is what has been  yes, from the relayed  ma’am. $500,000 CD? to me by USAA,

yes, ma’am.

Q And so then he transferred the money to Whitney Bank on the next day?

A Yes, ma’am.

Q So with regard to the bank fraud, we’ve –we’ve pretty much laid that all out. And I think we’ve pretty much laid out all of the money laundering.

And the money laundering was basically the Count 5, transferred to Whitney Bank for purchase of the motor home?

A Yes, ma’am.

Q Did the Defendant –did the Defendant, Randall Keith Beane, hold an account ending in the number 1135 at the Federal Reserve Bank?

A No, ma’am, he did not.

[This is not true, everyone in the US has an account based on their Social Security number, RKB used his own account with his Social Security and name, and it cleared those two verification checks within the FED WIRE system verifying its existence in his name and Social Security number. Had those two items been incorrect it would not have cleared. Other countries have similar arrangements with their respective central banks and local identifier numbers.]

Q Did he obtain from others, known and unknown to the Grand Jury, a valid routing number in the Federal Reserve Bank ending in 1452?

[Openly published on the Federal Reserve web site]

A Yes, ma’am, that was what was used.

Q And he used his mobile device to access his USAA account?

A Yes, ma’am, explained to me by USAA.

Q And as we were talking about earlier, the vast majority of the CDs, and we were looking at that –this right before Grand Jury, there was 31 CDs, but the vast majority of these were returned as invalids because there was no valid account number; is that correct?

A Right. They were essentially reversed by USAA, yes, ma’am.

Q But two CDS were funded by USAA bank and liquidated by the Defendant?

A Yes, ma’am.

Q And he was able to take out the money –put the money in his own personal account before USAA could reserve the transaction?

A Yes, ma’am.

Q And as we were talking about, he did use these funds acquired from the CD to purchase for his own personal benefit the purchase of 217 –I mean, I’m sorry, a 2017 Integra Cornerstone 45B 45 foot diesel motor home?

A  Right,  yes,  ma’am.

MS. DAVIDSON: And let’s  take  a five minute  break  for  him to  look  at  the  records.

THE WITNESS:  Yeah,  I’m  happy  to  pull  those.

MS. DAVIDSON: Did y’all  want  to  take  a  break  or  do you want us to just step out.

A JUROR: I’ve got one question. In other words, he opened these CDs with ghost funds and then he got real funds. And based on memory there was about $40,000 that they didn’t recover; is that right?

MS. DAVIDSON: No. There was about -. I think it’s closer to the amount of the five -. it’s more than 500,000.

THE JUROR:  Oh, yeah, but I mean -.

MS. DAVIDSON: Because all of the money that went to Whitney Bank for the motor home is gone?

THE JUROR: Right, right.

MS. DAVIDSON: Because that was a, you know, a bona fide purchaser.

THE WITNESS: I think it will be a big benefit to show this, this full transaction sheet that’s been provided to me by USAA for the benefit. You can see it’s just easy to see the money coming in and how it went right out. I think it would be a benefit to answer your question, sir, and anybody else’s. Just give me one second.

MS. DAVIDSON: So they have lost over 500,000.

If you’ll look at the forfeiture allegations the thing that –this is where we get the amount that we’re seeking in money judgment. It’s $553,749.99 is the total loss to –now, I think that they may be able to –he paid USAA, as I understand it –and tell me if this is what you understand, Special Agent Still.

Q (By Ms. Davidson) He paid some of his other debts to USAA, with some of the money. So he –so USAA would, I think, they’re –they would say their total loss is right in the amount of $510,000; is that what you understand?

A Right.

Q We were talking about that just earlier today?

A Yes, ma’am.

A JUROR: He was probably trying to raise his credit score.

MS. DAVIDSON: Yeah, he paid off his USAA credit card and things of this nature.

Q (By Ms. Davidson) But what he –what he got from his CD scheme is $553,749.99, is that your understanding, Special Agent Still?

A Yes, ma’am.

Q And so that is what he was able to take before they reversed all the transactions?

A Right. And some of that, like you said, you know, he used and they recouped some through –able to reach out and grab it within their own institution.

And something –and it also accounts for his -.the –we’re not giving him the benefit of that –that fee that the bank charged for the 30 day, we’re not giving -.essentially they paid themselves with stolen money. So we’re charging that back to him.

MS. DAVIDSON: Yeah. So when he paid on one of his credit cards well they now found that payment not to be valid. So on that credit card he still owes the money.

Q (By Ms. Davidson) So if they were here to testify, they would say their total losses are roughly $510,000, is that what you understand?

A Yes, ma’am.

MS. DAVIDSON: So we’ll take a brief and be right back.

(Whereupon, the witness exited the Grand Jury Room at approximately 3:51 p.m. and reentered the Grand Jury Room at approximately 3:56 p.m.).

THE FOREPERSON: Mr. Still, you’re still under oath?

THE WITNESS: Yes, ma’am. Q (By Ms. Davidson) So just go through –what are these?

A These are bank records from USAA Federal Savings Bank. Let’s look at this. This account number 3062. Let’s go through this –actually I need –let me –I just like to kind of go old school on this. Let’s look back a little bit before we even get here. Let’s go –let’s look back at what –in this –in this account. So these are the dates. 7-3, you’re looking at 6-30, you’re seeing the following balances in this account.

Q Do you want me to make it go out?

A Yes, ma’am.

So you’re seeing –so these are –this is before the scheme; right? So you’re seeing the balances in there.

Q (By Ms. Davidson) And this is at Count No. 3, ending in 3062?

A Right. This is –yes, 3062.

Q Show them again where –at the top.

A 3062 (indicating).

Q And it’s over there on the left, do you see?

A Right.

A JUROR: Bring it up just a little. It’s a little blurry.

Q (By Ms. Davidson) So that’s account 3062. And then that’s Randall Keith Beane.

A So let’s –I think we –does everybody see that first sheet? Oh, okay, where I showed them kind of prior to the fraud with this account, the kind of balances that were in this account.

You’ll see at the very top, this is going to keep going up. You’ll see it’s up about to about 12,000 it looks like to me in that account approximately.

A JUROR: Look at that one going in and the wire in on 7-3. Because he –he’s does a nine –a $1900 deposit and his balance goes from $4400 to $10,000, that’s not right.

MS. DAVIDSON: No. It looks –if you look at the, you know, the back it’s –he’s got basically twelve oh four. And there’s a debit for nineteen fifty-nine and his balance

THE JUROR: But it goes the other way.

MS. DAVIDSON: Yeah.

THE JUROR: So –yeah, he’s got 4400 –he’s got $4400 in his account. He wires in 1900 now he’s got a thousand –10,000?

THE WITNESS: No, sir. Let me look at the other. Let’s –let’s –these are –y’all have to –this us in the financial world. These are extremely –let’s –if you’ll look at the next sheet I think you’ll answer it will answer your question.

Where you can see on 7-5 there is –you’ll see that there’s two –and I’m not sure if these internal credits –and you’re looking at all at the same date on 7-5 so you see a $10,000 there in that account all on the same day, USAA internal credit.

It kind of –I’m going to show you up here kind of how it because -.

THE JUROR: The balance numbers don’t –don’t –aren’t real because they’re not –they’re not linear.
Again,  here  you look  at  this  -. I  think  I  understand  what  you’re  saying.  You’re  saying  these  are  things  that  hit  the  same  day  -.

THE WITNESS: Yes,  sir.

THE JUROR:  -. so  the  balance  number_ isn’t  accurate because you’ve got the cash rewards credit, you’ve got the $17.00, you’ve got a balance of $12,000. And then you’ve got a $5,000 credit, you’ve still got a balance of $5,000.

Then you’ve got another $5,000 credit you’ve got a balance of $7,000. That’s not –the balance numbers aren’t good.

We can –what I’m –but it sounds like that we can trust that these –the transfers are right, but not the balance numbers.

THE WITNESS: And, again, I’m not arguing with you at all, sir and I’m not any bank record expert or anything, just what I’m seeing on the screen.

Q (By Ms. Davidson) And let’s, you know, be clear. Not only have you reviewed these records, but, you know, the USAA fraud investigator has reviewed these extensively and relayed all the infonnation that you’ve previously testified about?

A Right. I rely on it

Q And so with bringing out these records, which are extremely confusing, we’re only just trying to answer your question. So -.

A Well –so just moving up you’ll see –let’s go into

Q See those right there.

A Right. On 7-6 transfer from CD. Can everybody see those?

A JUROR: Yes.

THE WITNESS: So there. And then right below it again, this is kind of I understand how confusing this is, but right below it you’ll see the transfer out of the 450 and the 500,000, 450,000 and 50,000, also on 7-6. Does everybody see that?

A JUROR. Uh-huh (affinnative response).

THE WITNESS: Okay. I’m going to switch us to another account. Bear with me.

Q (By Ms. Davidson) Show the account number

A I’ll show you this account number, 4026.

Q Show –pull it down so they can see the account holder.

A Randall Keith Beane.

Q Account number 4026?

A Right. Can everybody see the funds credited to this account of –there’s a $450,000 transfer -.

A JUROR: There’s no –I can’t –I can’t read it from here.

A JUROR: Zoom in. If you zoom in the focus is better.

Q (By Ms. Davidson) And then there is the wire out to Whitney Bank.

A JUROR: Right. That means the debit and the other is a credit.

THE WITNESS: I’m going to show you one other thing, sir, just to –you know, you can’t be sure enough, I agree with you and I appreciate that and thank you for it, but let me show you another document.

Right. Again, this –so this is the wire and this is the transfer. And you’ll see order, the order and customer name is Mr. Randall Keith Beane. The beneficiary, Buddy Gregg Motor Home. And the account, Whitney Bank in Baton Rouge, Louisiana.

And the figure on there is, as you’ll see, is the number I provided to the ladies and gentlemen earlier,
the four ninety-three one ten and sixty-eight.

A JUROR: See, that’s what bothers me. They knew that there was suppose to be four hundred and ninety-three in there and there wasn’t. 

THE WITNESS: Yes, ma’am, I understand. Any other questions on bank records? I’m happy to explain them.

MS. DAVIDSON: Any other questions at all on the facts? I’m about done with this witness.

THE WITNESS: I do have one thing I just want to clarify for the Grand Jury.

First of all, I want to put on behalf of the Bureau I want to thank everybody. This is a –I know this is a –takes a lot of your time and everything and I want to thank you for –for it.

Let me get my notes back out. I do have one other comment I wanted to make. And just for the benefit of the –of the Grand Jury. You know, today I have said numerous times that Randall Beane did this, Randall Beane did that. It’s obviously that I’m not sitting in front of a computer screen or I’m not watching that individual do these acts.

So when I say that Mr. Beane did this, it is based on the evidence that I have with me right now. And I just wanted to reinforce that comment to the Grand Jury when I make those comments Mr. Beane did this or Mr. Beane did that. That is something I am deducting from the evidence that we have.
And I want to provide that, some of that evidence, just a short synopsis of that to you.

One is that the USM system was not compromised. Meaning that they –the system, somebody didn’t hack in, according to USM, and pretend like they’re Mr. Beane. 

The consistent use of the same IP address. I think of IP addresses like telephone numbers. So your computer calls another computer. It’s just very similar to a telephone. Consistent use of –of the same IP address.

Phone calls in to USM match the telephone number as initially provided by the member, Mr. Beane.
Phone biometrics were used to log in. It’s my understanding, again, this is coming from USM, that you log in on –on these apps through your phone now and the biometrics remain consistent.
And then Ms. –Ms. Jarraf described that to -.of Mr. Beane and the scheme worked in the video.
And, lastly, but most importantly, we arrested Mr. Beane in the motor home that was the basis for this fraudulent purpose.

So when I say Mr. Beane corrrrnitted these acts, it is based on that evidence in part. So just of the benefit of the Grand Jury.

It’s been an –always an honor, again, thank you for your time today.

 Q (By Ms. Davidson) And one more big piece of evidence which I like. It was his Social Security number that was the fraudulent account number minus one digit? A That’s right. It’s my understanding is the real one was 243 and the account was 244.

MS. DAVIDSON: Yes.

[This has not been confirmed]

A JUROR: Is Ms. Jarraf named in this Indictment

MS. DAVIDSON: Yes.

THE JUROR: as a Defendant?

MS. DAVIDSON: Yes, but I’m -.

THE JUROR: But that’s not –is that the right word, Defendant?

MS. DAVIDSON: Yes.

THE JUROR: When you sumnarized –can you summarize what the Indictment –part of the Indictment against her, he charges as far as she is concerned -.

MS. DAVIDSON: It charges her with –solely in the money laundering account, which is the transfer of the money from USM to Whitney Bank.

And remember the testimony regarding the fact that she called Whitney Bank and Buddy Gregg and told them that –to accept this money, that it was good money and that she was the attorney representing Mr. Beane. And that this money was basically good money, accept it.

That she didn’t know if there was some sort of confusion with the Federal Reserve or –and that she was going to open an investigation, is that -.

THE WITNESS: She did reference opening an investigation. And it’s my –my –what I deduct from my investigative experience that involving an attorney in these types of transactions also kind of raises that level a little bit and generally gives people somewhat piece of mind that, you know, it is a valid transaction.

THE JUROR: Can you surmnarize the evidence against Mr. Beane in terms of money laundering?

THE WITNESS: Yes, sir.  So what we have –the evidence wise would be the conversation that –where Ms. Jarraf is on there with

Q (By Ms. Davidson) The recording telephone call?

A Yes. That is –that is the that is –so that’s where we see, you know, where she is trying to influence based on my investigative experience she is trying to influence this situation, make this transaction go
through, this money laundering transaction of this –the $493,000 in order to purchase this –this motor home.

And her knowledge of –how do I say this, she has knowledge of these funds; right, because what if -.mean, I can see where you could say –be thinking she was just an attorney on behalf of her client trying to –even though she’s not licensed in the state of Tennessee, trying to  make this  deal  happen.

But  from the  other  video  we’re  able  to  see  where  she  has  knowledge  of  -. of  this  CD scam.

Yes,  sir.

THE JUROR: What was  -. what’s  the  date  on  that  phone  call?

THE WITNESS: The date  on  the  -.

THE JUROR:  Is  that  not  July  7th?

MS. DAVIDSON: It was either the July 6th or July 7th because the transfer was made on July 7th and the money was taken on the –on July 6th.

THE WITNESS: And I think that –I think the actual phone call, though, Ms. Davidson, I think that occurred on July –again, I’m –this is –I’m not I’m looking at my notes, but I think it occurred on July 10th is what I remember from the posting would be that –because, actually, when we picked the motor home up it was at Buddy Gregg.
That’s  my understanding.

A JUROR: At his  residence?

THE WITNESS: Ma’ am?

THE JUROR: At his  residence?

THE WITNESS: No, ma’am.  It  was  still  at  the  dealership.  He was in  the  driver’s  seat,  yes,  ma’am,  with  the  engine  running.

THE JUROR:  So he  never  did  take  it  home?

THE WITNESS:  I  don’t  -. I  don’t  know if  he  took  it  home or  -. I  know it  was  at  Buddy Gregg  for  some  additional  services.  So I’m  not  sure  if  he  took  it  home,  you know, on that July 7th and then brought it back on –on the –that Monday, but I know that it was there when we -.when we arrested him, yes, ma’am.

Q (By Ms. Davidson) Did you attempt to get Buddy Gregg to not transfer the motor home to him?

A We it was not personally on those calls, Ms. Davidson. One of our –I believe it was one of task force officers were. So I didn’t personally -.

Q Do you know what happened in the

A I know they were just kind of keeping us abreast of the situation. We –it’s my understanding, again, relayed to me from another officer that, yes, you know, they were –that Buddy Gregg was going to let us know when he was essentially leaving, you know, because, you know, they –they didn’t stop him or anything. They weren’t going to stop him, they were just –they did give us a heads up is my understanding. 

A JUROR: Again, the statements in the video that suggests she was aware that she was involved in the money laundering? Did her  statements  in  that  video  she  posted  suggest  she  was

THE WITNESS: Statement  -. statements  that  she  didn’t  -.

THE JUROR:  Well,  that  suggested  to  you  as a witness  that  she  -.

THE WITNESS: That  the  -. when I  look  at  the  conversations  with  Buddy Gregg and  then  the  second  conversation  that  she  has  -. I  mean,  with  the  information  she puts out that to me shows knowledge that this –where the source funds were.

When you assist in that, when you assist in a transaction of that type to me that is –that’s money laundering to a T.

Q (By Ms. Davidson) And remember the elements of a conspiracy to comnit money laundering is simply, one, that you agree with someone else or you just have to prove the agreement.
And was Mr. Beane on the phone calls that she was on?

A Yeah. And one thing about those calls –again, this is the call at Buddy Gregg that we –we picked up online. She constantly asked Mr. –she –I wouldn’t say constantly, she –on at least two occasions that I can recall, I’m pretty sure it was two, asked him to kind of reassure Mr. Beane this money is –you have not asked that it be rescinded, you know, you’re not asking that the money be taken back. She’s –she’s actively involving him in those conversations.

Q And so they’re working together in concert?

A Based on my investigative experience, I would say they’re working together in concert to defraud.

Q And they had an agreement –which in a conspiracy you only have to prove that they had an agreement.

Is there an agreement between those two individuals?

A Based on my investigative experience there would be an agreement based on their actions. Not a written agreement like we would think of, but, yeah, based on what can deduct from these conversations.

Q And then to conmit money laundering, which is in this case to transfer the money out of USAA to Whitney Bank for the purchase of this RV, which is basically to get the
money out of USAA so that they can’t get it back?

A  That’s  correct.  Yes,  ma’am.  MS. DAVIDSON: Does that  answer  your  questions?

THE JUROR: Yes,  thank  you.

A JUROR:  Do we know anything  about  the  relationship  between Beane and  the  lawyer?

THE WITNESS: Jarraf?

THE JUROR:  Yes.

THE WITNESS: This  -. so  I’m  speculating  a  little  bit  here.  I  want  to  try  to  clarify  when I  do  speculate.  At  this  arrest  scene  there  was  an  individual  referred to as Heather on the phone who –who –another there were so –when we arrest Mr. Beane there’s two other individuals there with him, a male and a female. They were tried to give me the phone. There’s a lady named Heather on here, an attorney, [lawyer not attorney] who wants to talk. And, actually, they gave me a piece of paper with her phone number and her phone number and her name on it.

Agent Jason Pack and I on Friday night attempted to contact her. She said that she could not speak with us or she spoke briefly with us and told us that she could no longer talk due to planning military operations, something to that effect.

We have subsequently learned that possibly, again, speculating, that that corrment meant, “Military
operations,” to try to remove Mr. Beane from the Knox County Detention Center. That’s what, again, what I deduct.

MS. DAVIDSON: Any other questions?

A JUROR: They –they –a couple of the -.brought out that in Indictment it says jumbo CD and on your paper it says super, does that matter that it’s not

MS. DAVIDSON: No, it doesn’t because we –in the Indictment we’re referring to jumbo CDs just in the in the objective sense that they’re large CDs.

Any other questions?

(No response).

MS. DAVIDSON: Well, I will excuse you.

THE WITNESS: Thank you.

A JUROR: I do have one quick question, sorry. 

I really have a problem trying to wrap around the idea that a fine institution that handles money all day long can accept somebody doing this. And without batting an eye and open a CD for, what was the first one, 500,000 in money? That they don’t have any proof that there’s 500,000 to cover CD, and then it goes on to the 999,000. 

If I go and use my debit card before I get back home it’s already taken out of my account, you know what I’m saying? I can check my bank online and it’s already gone. 

How does an electronic wiring fraud happen when I can’t do it on a $20 Food City grocery bill. I mean, they know before I leave that aisle that I’ve got $20 in there to cover that bill. 

How does that happen? I mean, how?

MS. DAVIDSON: I don’t know if that’s a proper question for the consideration of the Grand Jury. I mean, the fact of the matter, we showed you evidence that it did happen in this case.

Now, the fact that USAA may have been, you know, negligent in some way is really not relevant. There’s just simply evidence that this did occur and that Mr. Beane got the funds, basically stole the money.

I mean, you know, it’s similar thing where you know, if somebody gives you –somebody –I mean, if an IRS check is mistakenly delivered to you in my name, Cynthia Davidson, and you go and cash it, you know, the Post Office made a mistake, but you’re at fault for cashing a check that didn’t belong to you.

THE JUROR: Well, if the bank put money in my account today -.

MS. DAVIDSON: If it’s not your money, you can’t spend it.

THE JUROR: Yeah –well, that’s true. So it’s his fault cause he spent it.

MS. DAVIDSON: Well, no, he –he stole it. You know, he went through -.

A JUROR: He triggered the money going into his account.

MS. DAVIDSON: Right. By putting in the fraudulent routing number and the account number, you know, attempting this -.

A JUROR: I mean, I have no doubt that he did many more

MS. DAVIDSON: –40 times

THE JUROR: a lot more.

MS. DAVIDSON: And there is a YouTube video out there, as he testified, explaining how to commit this type of fraud.

A JUROR: In other words, if he deposits $3,000 from the bank and they give you a slip that says you’ve put 300,000 in there you can’t spend that money?

A JUROR: Oh, is that right?

MS. DAVIDSON: Any other factual questions?

A JUROR: Are we having fun yet?

MS. DAVIDSON: Yeah, I know. And this –all this happened too –y’all –it takes us usually months to investigate these things. Any –any other factual questions?

(No response) .

MS. DAVIDSON: I’m going to excuse you. (Whereupon, the witness exited the Grand Jury Room at approximately 4:19 p.m.).

END OF PROCEEDINGS

C E R T I F I C A T E

STATE OF ALAMBAMA
(SHELBY COUNTY )
I , ROBERT KEITH KENl’iJEDY, Public the Notary for State of Alabama at Large , having sworn to keep secret the testimony given before the Grand Jury , hereby certify that I am the Certified Court Reporter who made machine shorthand notes of the foregoing proceedings at the time and place stated in the Caption herein; that I later reduced my shorthand notes into typewriting ; and that the foregoing pages numbered two through sixty , both inclusive , contain a full , true , and correct transcript of the testimony given before the Grand Jury on that occasion.

I further certify that I am in no way related to nor employed by any of the Grand Jurors , the witness or the United States Attorneys conducting the exanunation of the witness ; and that I have no interest in the outcome of this matter .

Given under my hand and seal this the 27th day of July 2017 .

Robert Keith Kennedy
CCR License No. 318

My Commission Expires September 4, 2018