Case 1:19-cr-00213-RDA Document 15 Filed 07/24/19 Page 1 of 10 PageID# 52

FILED
IN THE UNITED STATES DISTRICT COURT FOR mt······ 1NOPENCOURT

EASTERN DISTRICT OF VIRGINIA JUL ,~ t 20l9

Alexandria Division :,~ Q.ERK. U.S. DISTRICT COURT
."' ALEXANDRIA VIRGINIA
UNITED STATES OF AMERICA, ) No. 1:19-CR-213 (RDA)
)
v. ) Counts 1-4: 18 U.S.C. § 1343
) (Wire fraud)
ANDREW B. POWERS, )
) Count 5: 18 U.S.C. § 1341
Defendant. ) (Mail fraud)
)
) Count 6: 18 U.S.C. § 2314
) (Inducing interstate travel to defraud)
)
) Counts 7-8: 18 U.S.C. § 1957
) (Unlawful monetary transaction)
)
) Forfeiture Notice

INDICTMENT

July 2019 Term-At Alexandria

INTRODUCTION

THE GRAND JURY CHARGES THAT:

At times material to this Indictment:

1. ANDREW B. POWERS was the owner and operator ofCommuniClique, Inc.,,

which was incorporated in or about 2006. ANDREW B. POWERS operated the business in

Reston, Virginia until in or about 2018, when he moved to California and continued to operate

the business from there. ANDREW B. POWERS also operated related businesses.

2. CommuniClique's primary product was a software application to facilitate

communications within and between businesses and between businesses and their customers.
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3. ANDREW B. POWERS raised money by selling CommuniClique stock to

investors, and during_ the last few years, borrowing money from others to invest in

CommuniClique.

Scheme and Artifice

4. Between no later than in or about February 2009 and on or about January 8, 2019,

ANDREW B. POWERS engaged in a scheme and artifice to defraud, and to obtain money and

property by means of false and fraudulent pretenses, representations, and promises. It was a part

of the scheme and artifice to defraud that:

5. ANDREW B. POWERS made false and material representations to others to

induce them to provide money to ANDREW"B. POWERS and CommuniClique, including:

a. ANDREW B. POWERS falsely represented that CommuniClique had

several corporate customers, including certain large well-known corporate customers, who were

paying to use CommuniClique's software application, when in fact, as ANDREW B. POWERS

knew, CommuniClique, did not have those corporations as customers; and

b. ANDREW B. POWERS falsely represented in quarterly reports, yearly

update reports, and profit-and-loss statements that CommuniClique had continually growing

revenues that he claimed were at approximately $20 million in 2012 and $165 million in 2017,

when in fact, as ANDREW B. POWERS knew, CommuniClique, did not have those revenues.

6. Based on his false representations, ANDREW B. POWERS raised more than $20

million from others through sales of CommuniClique stock and loan agreements.

7. ANDREW B. POWERS hired sales staff for CommuiClique to make it appear

that CommuniClique was a successful ongoing business; however. he would not allow the sales

staff to contact the corporate customers that ANDREW B. POWERS claimed that

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CommuniClique already had or to use those purported customers as references for potential new

customers.

8. ANDREW B. POWERS hired technical staff to work on new and improved

software applications for CommuniClique to make it appear that CommuniClique was a

successful ongoing business.

9. On or about October 24, 2018, after hearing of complaints from investors,

ANDREW B. POWERS, for the purpose of concealing the true condition of CommuniClique

and falsely assuring investors that their investments were safe, posted a statement on his website

that he intended to fully repay investors and move the company forward.

10. In or about April 2019, in response to a lawsuit filed by some CommuniClique

investors to place ANDREW B. POWERS and CommuniClique into involuntary bankruptcy,

ANDREW B. POWERS caused a false document to be filed with the United States Bankruptcy

Court for the District of Delaware for the purpose of showing the court and the investors that

CommuniClique was an ongoing and active company when in fact, as ANDREW B. POWERS

knew, CommuniClique was not in tl;iat condition.

11. The above introductory allegations are re-alleged and incorporated in each count ·

of this indictment as if fully set forth in each count.

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Counts 1-4
(Wire fraud)

12. On or about the following dates, within the Eastern District of Virginia and

elsewhere, having devised and intended to devise the scheme and artifice to defraud and to

obtain money and property by means of false and fraudulent pretenses, representations, and

promises, as more fully described above in paragraphs 4 through 10 of this indictment,

ANDREW B. POWERS, knowingly transmitted and caused to be transmitted by means of wire

and radio communication in interstate commerce certain writings, signs, signals, pictures, and

sounds for the purpose of executing such scheme and artifice; that is, ANDREW B. POWERS

caused money from the following investors to be sent to ANDREW B. POWERS and

CommuniClique:

Count Date Investor Type of Communication

1 February 17, 2016 J.G. Wire for $1,000,011.00

2 August 8, 2016 J.C. Wire for $115,200.00

3 September 6, 2017 W.B.J. Wire for $100,005.12

4 September 1, 2017 S.N. Check deposit and wire for

$440,000.00

(In violation of Title 18, United States Code, Sections 1343 and 2)

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Count 5
(Mail fraud)

THE GRAND WRY FURTHER CHARGES THAT:

13. On or about April 4, 2017, within the Eastern District of Virginia and elsewhere,

having devised and intended to devise the scheme and artifice to defraud, and to obtain money

and property by means of false and fraudulent pretenses, representations, and promises, as more

fully described above in paragraphs 4 through 10 of this indictment, ANDREW B. POWERS, for

the purpose of executing such scheme and artifice, knowingly caused to be placed in an

authorized depository for mail matter to be sent and delivered by the Postal Service and

delivered according to the direction thereon, mail matter, that is, a CommuniClique stock

certificate issued to A.S.

(In violation of Title 18, United States Code, Sections 1341 and 2)

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Count 6
(Inducing interstate travel to defraud)

THE GRAND JURY FURTHER CHARGES THAT:

14. On or about November 29, 2016, in the Eastern District of Virginia and

elsewhere, the defendant, ANDREW B. POWERS, having devised and intended to devise a

scheme and artifice to defraud, and to obtain money and property by means of false and

fraudulent pretenses, representations, and promises, as more fully described above in paragraphs

4 through 10 of this indictment, knowingly caused J .D. to be transported, and induced him to

travel, in interstate commerce between California and Virginia, in the execution of the scheme

and artifice to defraud J.D. of money and property having a value of $5,000 or more.

(In violation of Title 18, United States Code, Section 2314)

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Count 7
(Unlawful monetary transaction)

THE GRAND JURY FURTHER CHARGES THAT:

15. On or about September 21, 2015, in the Eastern District of Virginia and

elsewhere, the defendant, ANDREW B. POWERS, knowingly engaged in, and attempted to

engage in, a monetary transaction by, through, and to a financial institution in criminally derived

property of a value greater than $10,000, in and affecting interstate commerce, that was derived

from specified unlawfu~ activity; that is, ANDREW B. POWERS transferred by wire

$75,308.64, consisting of proceeds of the wire and mail fraud scheme alleged in Counts 1

through 5 of this indictment, to an automobile dealership in Ashland, Virginia, to purchase a

2015 GMC Yukon.

(In violation of Title 18, United States Code, Sections 1957 and 2)

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Count 8
(Unlawful monetary transaction)

THE GRAND JURY FURTHER CHARGES THAT:

16. On or about September 25, 2015, in the Eastern District of Virginia and

elsewhere, the defendant, ANDREW B. POWERS, knowingly engaged in, and attempted to

engage in, a monetary transaction by, through, and to a financial institution in criminally derived

property of a value greater than $10,000, in and affecting interstate commerce, that was derived

from specified unlawful activity; that is, ANDREW B. POWERS purchased a cashier's check in

the amount of $157,050.56, consisting of proceeds of the wire and mail fraud scheme alleged in

Counts 1 through 5 of this indictment, and used that check to purchase a 2015 BMW i8 at an

automobile dealership in Sterling, Virginia.

(In violation of Title 18, United States Code, Sections 1957 and 2)

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FORFEITURE NOTICE

There is probable cause that the property described in this forfeiture notice is subject to

forfeiture pursuant to the statutes described herein.

1. Pursuant to Federal Rule of Criminal Procedure 32.2(a), the defendant is l)ereby

notified that, if convicted of any of the violations of 18 U.S.C. §§ 1341, 1343, and 2314 alleged

in Counts 1through6 of this indictment, he shall forfeitto the United States, pursuant to 18

U.S.C. §. 981(a)(l)(C}and 28 U.S.C. § 2461(c), his interest in any property, real or personal,

which constitutes or is derived from proceeds traceable to the violations of 18 U.S.C. §§ 1341,

1343, and 2314. If convicted of an offense alleged in Counts 7 and 8 of this indictment, the

defendant shall forfeit to the United States, pursuant to 18 U.S.C. 982(a)(l), any property, real or

personal, involved in such offense. The property subject to forfeiture under Counts 1through8

includes, but is not limited to, the following:

a. A sum of money equal to at least $23,238,304.24 in United States currency,

representing the amount of proceeds obtained by the Defendant as a result of the
offenses; and

b. 2015 GMC Yukon, VIN 1GKS2JKJ6FR302190

17. Pursuant to Title 21, United States Code, Section 853(p), as incorporated by 28

U.S.C. § 246l(c), the defendant shall forfeit substitute property, up to the value of

$23,238,304.24 if, by any act or omission of the defendant, the property directly derived from the

charged violations cannot be located upon the exercise of due diligence; has been transferred,

sold to, or deposited with a third party; has been placed beyond the jurisdiction of the Court; has

been substantially diminished in value; or has been commingled with other property which

cannot be divided without difficulty.

(All in accordance with Title 18, United States Code, Section 981(a)(l)(C) and 982(a)(l); Title
28, United States Code, Section 246l(c)); and Federal Rule of Criminal Procedure 32.2(a)).
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A TRUE BILL:
Pursuant to the E·Govemment Act
The origlnal of this page has been fli;d
under seaf In the Cler:k's Qf:fice
FOREPERSON

G. Zachary Terwilliger
United States Attorney

By:

Assistant United States Attorney

2100 Jamieson Avenue
Alexandria, Virginia 22314
Phone: 703-299-3773
Email: [email protected]

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