Justice Department's indictment of Semion Mogilevich

firm to audit and certify YBM’s annual financial statements for the years 1996 and 1997.
Certification of the financial statements by Deloitte was a prerequisite to securing approval from
the securities regulators to list and trade YBM stock and to sell additional stock through public
offerings. Deloitte resigned as YBM's auditor in or about June 1998, and refused to certify
YBM’s financial statements for calendar year 1997.
Manner and Means To Accomplish the Scheme To Defraud
Among the manner and means by which the defendants carried out and implemented the
scheme to defraud were the following:
A. OVERVIEW
29. In order to sell securities to the public and maintain public
trading of its securities in the United States and Canada, YBM was required to comply with
provisions of Canadian and United States federal securities laws, including the Securities
Exchange Act of 1934 and regulations promulgated thereunder. These laws and regulations were
designed to ensure, among other things, (a) that the identities of those individuals in control of the
company, and their financial interests in the company, were fully disclosed to the public, and (b)
that the company's financial information and operations were accurately and honestly recorded
and reported to the public.
30. It was part of the scheme to defraud that the defendants made false,
deceptive and misleading statements of material matters to, and concealed material matters from,
the investing public, including YBM shareholders, the securities regulators in Canada and the
United States, and the company’s auditors and forensic examiners, in that the defendants:
(a) concealed defendant MOGILEVICH's ownership of and control over the
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