The United States Attorney's Office for the Northern District of California announced that Bryan Douglas Rosenquist, 41 and Michele Serrao, 42, of Vacaville, California, who were previously indicted on two counts for violations of Title 18, U.S.C. § 371 (Conspiracy to embezzle funds belonging to the Bank of America) and Title 18 U.S.C. § 1344 (Bank fraud), were re-indicted on additional money laundering and tax violations.

According to the second superseding indictment, Mr. Rosenquist and Ms. Serrao, were employed as supervisors at the Loomis, Fargo and Company ("LFC") vault facility in Richmond, California.  LFC is a business that contracts with area businesses to transport and store currency.  Mr. Rosenquist and Ms. Serrao, who were in charge of the vault at LFC from the date it opened in March 1999 until they resigned in late August, 2001, are alleged to have embezzled $12,257,000 in cash held at the Richmond vault facility belonging to the Bank of America ATM account.  The indictment also alleges that they used the embezzled funds to purchase expensive jewelry, hundreds of horses, including expensive thoroughbred race horses, numerous cars and trucks, and farm equipment.  The indictment also charges the defendants with evading taxes by failing to report taxable income.

The maximum statutory penalty for each charge is as follows: conspiracy to embezzle funds- 5 years, a fine of $250,000, 3 years supervised release, a $100 penalty assessment, and restitution to the victim; bank fraud- 30 years, a $1,000,000 fine, 5 years supervised release, a $100 penalty assessment, and restitution to the victim; Forfeiture- the forfeiture of the amount embezzled, or $12,257,000; conspiracy to launder money and money laundering- 10 years, a fine of $250,000, 3 years supervised release, a $100 penalty assessment, and restitution to the victim; evasion of taxes- 5 years, a fine of $100,000, 3 years supervised release, a $100 penalty assessment, and restitution to the victim.  However, any sentence following conviction would be controlled by the Federal Sentencing guidelines, which take into account a number of factors, and would be imposed in the discretion of the Court.

An indictment simply contains allegations against an individual and, as with all defendants, Mr. Rosenquist and Ms. Serrao must be presumed innocent unless and until convicted.

Mr. Rosenquist and Ms. Serrao will be arraigned on the new charges on June 30, 2003 at 10:00 a.m. before Magistrate Judge Wayne D. Brazil.  That same day the defendants will appear before United States District Judge Claudia Wilken at 2:00 p.m. for a status hearing.

The prosecution is the result of a long-term investigation by agents of the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Steven Corrigan.

All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415) 436-7181.