Justice Department's indictment of Semion Mogilevich

for stock in YBM MAGNEX. As a result, by the end of November 1995, defendants
MOGILEVICH, FISHERMAN and BOGATIN, directly and indirectly, owned and
controlled over 80% of the issued and outstanding stock of PRATECS/YBM.
(b) From in or about January 1996 through in or about May 1998,
approximately 16 million additional shares of YBM were sold to the investing public in
additional offerings through fraudulent means described below. The defendants took
profits from the fraudulent scheme by selling millions of shares of YBM stock as described
below (see paragraphs 43 through 45 of the Introduction).
D. FRAUDULENT, FALSE AND DECEPTIVE PRACTICES
35. Between approximately 1994 and September 1998, defendants
MOGILEVICH, FISHERMAN, BOGATIN and TSOURA employed the following fraudulent,
false and deceptive practices regarding YBM’s business operations, financial condition,
management and control in order to make YBM look profitable and investment worthy. In
addition, these practices were designed to conceal the fraudulent activities described herein and
MOGILEVICH’s ownership and control of the Network of YBM companies from securities
regulators, auditors, forensic examiners (hired by YBM’s Board of Directors to examine the
operations, books and records of the company), market analysts and the investing public.
Bribes Offered to Auditors
(a) Defendant FISHERMAN offered cash bribes in the amount of
$500,000 to accountants, in or about March 1994, to prepare and issue a false audit report
favorable to the company MAGNEX RT, which offer was refused.
Deceiving the Auditors/Examiners
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