The extensive damage caused by FBI Agent McClelland resulted from the use of misleading summary charts and improper investigative hearsay. Similarly to William Keep’s unfounded claim of a 97% loss rate based on “filtered data,” McClelland’s summary charts relied on the same flawed information. Like Dr. Keep’s analysis, McClelland’s charts misrepresented i2G gains and losses by omitting $28 million in i2G commissions earned.
McClelland presented hearsay from non-testifying witnesses who were labeled as “victim investors,” with their purchases referred to as “securities” in both the indictment and the jury instructions. He testified to the total purchase amounts but did not account for the significant commissions earned. Additionally, he did not verify the alleged victims’ “gift certificate” records, which documented either their product purchases or commissions received from others, nor did he confirm any of the victims’ statements against their own bank records. This constituted pure hearsay that could not be confronted. Three non-witness statements, from Queyenne Pepito, Michelle Kim and Shin Jeong, were particularly damaging, as large purchase amounts were implied to be significant losses during the trial, closing remarks, and with jury instruction and direct comments from the Court. The defendants were unable to confront these non-witnesses regarding their $870,000 in collective commissions earnings.
Records of commissions, which the government attempted to discredit, revealed that the alleged victims received substantial commissions and collected tens of thousands of dollars from others. (See false evidence.) The harm is underscored by the court’s post-trial statement describing his impression of “Pepito” as a “big deal,” and this “poor lady who got suckered out of a lot of money” (Doc 718 #11347, p. 48). However, commission records in 7240 indicate that Pepito made over $150,000 in withdrawals. The defendants had no opportunity to confront the non-witnesses regarding these false representations. The jury was simply informed that these transactions were “securities” purchases that had been lost to “victim investors,” as outlined in the jury instructions and reiterated by the court prior to deliberations. The data from 7240 clearly proves that these representations were false, highlighting the prejudice involved in the case.
Additionally, the 302 report from Agent McClelland indicates that Pepito admitted to being involved with “Better Living,” a well-known Ponzi scheme. McClelland failed to investigate Pepito and others’ prior involvement with Better Living or other Ponzi schemes before joining Infinity Two Global to determine how Pepito, Kim, and Jeong had acquired the funds to purchase so many packages in the first place. The defendants could not confront these non-witnesses who were presented as victims when the hearsay was devastating.
After the trial, Jerry Reynolds provided an affidavit refuting claims that the data was not valid and affirming the validity of 7240 data which showed approximately 80% great commissions earned than represented in 101i.
Records from 7240 show that – Pepito had thirteen withdrawals totaling over $150,000 making her a “net -gainer” and not a “net-loser” as portrayed to the jury.
Shin Jeong had a staggering 240 transactions, sending and receiving funds and commissions totaling $579,000!
This one example is emblematic of all the false representations in 101i used throughout trial where not a single accurate entree of earning was accurately depicted.
Queyenne Pepito was sponsored by Adelaida Pineda (another “net-gainer” listed as a “net-loser” in 101i)
Purchases 1st emperor 12-17-2013 (820582)
Sponsors herself in 2 more emperors 12-17-13 (82082) (82054) Earns $1600
Structures a “self-sponsoring” structure to maximize compensation plan. 12-17-2013 -1-13-2014
Pepito thus earns $20k from her own purchases.
Pepito transfers 80k and 20k to Jason Syn on 5-30-2014
Cristono Bayani transfers 80k to Pepito on 5-31-2014 and
Bayani transfers 20k to Pepito on 6-2-2014
Pepito withdraws $90359.1 (007240) on 5-31-2014
withdraws from ewallet (0072400) of $30,119.7
withdraws from ewallet $15000 (0072400) 0n 6-11-2014
withdraws from ewallet $149 7-30-2014
withdraws from ewallet $149 8-13-2014
withdraws from ewallet $270 8-14-2014
withdraws from ewallet $4559.7 10-22-2014
withdraws from ewallet $1519.90 11-7-2014
101i represents check payments of $20k, a significantly deflated earnings representation to the jury
2014 1099 records show 2 1099’s issued for Pepito.
1.) $45,416.00
2.) $11,478
7240 documents attached, showing Pepito’s withdrawals from the e-wallet and the commissions earned, which were used as “funds transfers” to purchase her products or transferred to others, totaling $209,000.
007240 is attached below
McClelland Rebuttal Arguments attached below
See More data under the government-manufactured victims and losses in the I2G case.