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Affidavit for Arrest Warrant

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Affidavit for Arrest Warrant Powered By Docstoc
					State of Colorado              )
                               )
County of Boulder              )
In the District Court, County of Boulder, State of Colorado
Criminal Action Number:




                         Affidavit for Arrest Warrant
Your Affiant, Investigator Mark Husman, is a duly commissioned Peace Offcer for the
County of Boulder, State of Colorado, being duly sworn, deposes and states:

Your Affiant, hereafter referred to as "I," is currently employed as an Investigator for the
Boulder County Distrct Attorney's Office. I was previously employed as a Senior
Criminal Investigator with the Economic Crime Unit of the Denver District Attorney's
Office. I have been a certified peace officer since 1991 in Colorado and Wyoming and
have been assigned exclusively to white-collar fraud investigations since 1999.

Lawrence Ashford, Edward Mazur, and Mark Santon submitted complaints to the
Boulder District Attorney's Office against Doug Wertzbaugher, Loren Anarlo and
Kevin Laurtsen doing business at One Source Funding Group. I was assigned the
investigation. In the complaints, accompaned by relevant documents and in subsequent
interviews Lawrence Ashford, Edward Mazur, and Mark Santon related the following:

LAWRNCE ASHFORD
On September 16,2009 Jennifer and Lawrence Ashford, Jr. ("Jack") met with me at the
Boulder District Attorney's Offce. Jack substantially related the following:
He is a retired United Airlines pilot with two years of college and two years of technical
schooL. He had some success investing his retirement nest egg with a registered broker-
dealer who managed his money for him. He owns and operates several houses as rentals.

Jack knew Doug Wertzbaugher because Doug would occasionally work for Jack. About
Februar 2008, Wertzbaugher met with Jack and told him about an investment program
involving Loren Anarlo who had been a minister at a local church. Jack contacted
Anarlo who represented himself as a sophisticated investor for a companY,called One
Source Funding Groun. Anarlo met with Jack at his home at
Longmont, CO _ Anarlo introduced Jack to Kevin Laurtsen by phone. Lauritsen
and Anarlo described the investment opportnity to Jack as a "platform" which invested
in international ban notes in countres such as Singapore and Switzerland. The
investment goal was to combine Jack's money with other investors to reach a total of$l
milion to fill the platform. The platform would then be used to invest. Anarlo
described the opportty as limited to a few people and only open for a very short time.
Anarlo said that Jack would be paid his principal and a 30% retu on his investment in
30 days. The money was to be given to Anarlo who forwarded it to Laurtsen in Texas


                                                                                           1
who would forward it to Sherwood "Randy" Smith. Jack did not understand why there
were so many intermediares but he trsted Anarlo and Wertzbaugher.

Jack "checked out" Anarlo and finding him reputahle. decided to invest. On March 7,
2008 Jack wired $250,000 to a Citiban account,__ _ _ _ _ --J under the name of         "Burk &
Reedy, LLP Attorney Escrow Acct". The investment was evidenced by a Promissory
Note dated March 7,2008. The Note was signed by Lauritsen as Chief             Executive
Offcer, Anarlo as President and Jack as "lender". One Source Funding, LLC was listed
on the note with an address of7l 76 Four Rivers Road, Boulder, CO 80301 (Anarlo's
home address). Laurtsen and Anarlo and Smith personally guaranteed the Note. The
Note showed the investment of$250,000 and promised a retur of                     principal and
"interest" of$125,000 (50%) after 30 days. Jack explained that the retur on the
investment changed after Jack heard a conference call between Anarlo, Smith and
Lauritsen in which Smith said they (Anarlo and Lauritsen) would be getting a 100%
retu with the use of (Jack's) money. After hearng this, Jack demanded his return be
increased from 30% to 50%. Jack showed me another version of    the note, also signed by
Lauritsen as CEO and Anarlo as President where Jack was identified as "Investor". The
Note is dated March 6, 2008. The second note did not contain a personal guarantee or
any reference to Smith. All other terms between the Notes were the same.

On April 7, 2008 Jack received a wire deposit to his Frontier Ban account in the amount
of $250,000 and on April 10,2008, Jack received another wire deposit to his Frontier
Ban account in the amount of$125,000. The money represented the return of Jack's
principal and the retur on the investment. The bank statement showed the payment
coming from Anarlo. Jack credited Wertzbaugher's account (ledger of debts
Wertzbaugher owed Jack) $2,500 as a commission for the return on the investment.
Wertzbaugher told Jack that Anarlo would also pay him. Jack was so impressed with his
investment that he told his good frend Ed Mazur.

On about April 17,2008 Lauritsen contacted Jack again about a new investment
platform. Laurtsen explained that they were seeking another $ 1 milion from investors.
Jack decided to invest $200,000 for a retu of                   $60,000 (30%). Lauritsen said the retu
on the investment was less because there was less risk associated with the investment.
Jack didn't ask any details because the first investment went so well. On April 17,2008
Jack wired the $200,000 to a Wachovia Ban, N.A. account in the
name of One Source Funding Group, LLC, as he was directed by Anarlo.

The investment was evidenced by a Promissory Note dated April 17,2008. The Note was
signed by Laurtsen as CEO and Anarlo as President. Jack signed the Note as lender.
Lauritsen and Anarlo personally guaranteed the Note. The Note evidenced the
investment of $200,000 and promised a retu ofthe principal plus $60,000 interest after
45 days. About June 2, 2008, 45 days had lapsed. Anarlo asked Jack for an extension.
Jack agreed to extend the Note was until August 14,2008 at a rate of$l,OOO a day. The
extension agreement was signed by Anarlo and Laurtsen.




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As ofSeptember 16,2008 Jack had not received his payment. Anarlo and Lauritsen
made many different excuses why the money was late but assured Jack the money was
                                                                      $13,000.
still on the way. Jack demanded that Anarlo arrange a parial payment of

About September 16,2008, Jack was contacted by a woman named Jeanne Shinstine.
Jeane claimed to be a baner for One Source Funding. Jeanne told Jack that she would
be able to send him $13,000. Jack gave Jeanne the bank wire instrctions for his
accounts at Wells Fargo Ban and Ban of            the West. On September 15,2008 Jack
received $9,000 in his Bank of         the West account and $4,000 in his Wells Fargo Ban
account. Jack demanded another payment of $13,000 from One Source. About October
15,2008 Jeanne sent another $13,000 in two similar payments to the same Wells Fargo
Ban and Ban of               the West accounts.

Jack would not have invested ifhe knew that Anarlo and Lauritsen were not themselves
invested. Jack did not authorize any of                         his investment to go to anything other than the
"platforms". Jack would not have invested ifhe knew that any of                           his money would be
used to pay earlier investors or up front commissions paid out to Wertzbaugher, Anarlo
or Laurtsen. Jack reasoned that they were trying to "fill the platform" and front end
commissions would take money from the investment pool.

As of September 2009 Jack has not received any additional payments from his
investment. Anarlo and Laurtsen have continued to make excuses as to why the money
is delayed and have continued to make promises to pay everyone back.

MA     SANTON
On September 21, 2009 Mark Santon ("Mark") and Joan Santon met with me at the
Boulder District Attorney's Office. Mark works for a landscaping equipment distributor.
Joan works for Boulder County governent. Mark substantially related the following:

Mark has known Loren Anarlo and Doug Wertzbaugher since 1985 when they attended
the City On The Hil Church together. Anarlo was the Associate Pastor at City on the
Hill and Wertzbaugher was mared to the sister of the Pastor. Wertzbaugher and his
wife had been in Guatemala as missionares for the church for about 17 years. Mark and
Joan had been close personal frends with Anarlo and his wife, Robbie over the years.
In 2006 Joan was in an automobile accident and had been in a coma. The same accident
claimed the life of the Santon's teen age daughter. While Joan was recovering, Anarlo
and Robbie, came and spent time with Joan. Mark trusted Anarlo and respected him.

Joan is the trustee of           her fathers trst account. Joan and Mark were looking for a better
rate of retu for the trst but they wanted to make sure the money was going to be safe
and secure.

About June 7,2008, Mark had met with an insurance agent, Phil Lukens, also a member
of the church, who mentioned that Anarlo was doing investments with some success.
Mark agreed to meet with Anarlo regarding investment opportities. Anarlo
contacted Mark and aranged to meet Mark and Joan on June 14,2008 at the Santon's
home in Lafayette, Colorado. Anarlo identified himself on a business card as the Senior


                                                                                                              3
Vice President of  Business Funding for One Source Funding Group. Anarlo explained
that he was looking for investors to paricipate in a "platform" program that generated a
high rate of retu. Anarlo gave Mark a two page flyer with information on the project.
Anarlo described the program as safe and backed by gold. Anarlo explained that the
Santon's investment would be bundled with other investors' money for a large pooled
investment resulting in a larger rate of return. The program was not available to
individual United States citizens but Mark would be allowed to paricipate through One
Source Funding Group. Anarlo said a platform was not available at the time but Mark
could invest in a Promissory Note for 60 days at a 20% rate of   retur. The money was to
be held on deposit in a bank until the Note matured. When the Note matured, Mark could
move his money, "to the next step," which was a platform where it would be bundled
with other investors' money. Anarlo said it might be necessar for Mark and Joan to
travel to Singapore or Panama to sign the paperwork for the platform. Anarlo told the
Santons they would need to get their passports ordered for the trp. Mark and Joan
decided to invest. Mark gave Anarlo a personal check for $275,000 dated June 16,
2008. Anarlo gave Mark and Joan a Promissory Note. The Note was dated June 14,
2008 (Satuday) and indicated a maturity date of August 16,2008. Originally the Note
had a 45 day maturity but Mark agreed to have it changed to 60 days. The rate of retur
was 20% or $55,000. The Note listed Mark and Joan as the "lender" and One Source
Funding Group as "promisor". The Note was signed by Anarlo as "President".

The day after Mark and Joan gave Anarlo the check, Wertzbaugher spoke with Mark in
person. Wertzbaugher made statements to Mark indicating that he (Wertzbaugher) was
aware of the investment. Mark would not have invested with Anarlo if     Mark knew
Wertzbaugher was associated with One Source Funding Group in any way. Mark would
not have invested if he knew that other investors had not been paid back. Mark would
not have invested if any of his money would be used to pay earlier investors or
commissions to Wertzbaugher, Anarlo or Lauritsen. Mark understood that any
commissions would be paid after the Note matured. Mark leared after the investment
that Anarlo and Robbie were having martal problems and Anarlo was having
problems with alcohol abuse. Mark would not have invested ifhe had known about
Anarlo's martal problems or substance abuse problems.


The matuty date of August 16, 2008 passed and Anarlo failed to payoff the note.
About October 1, 2008, Mark went to see Anarlo at his house and met with Anarlo.
Anarlo explained that Mark's money was delayed because ofthe recent failure of
prominent American bans featured on the news. Anarlo promised that Mark would get
his money back.

Mark met with Laurtsen and Anarlo at the Weston Hotel in Westminster, Colorado in
December 2008. Lauritsen and Anarlo blamed the bans again for Mark's money being
delayed. Lauritsen fuher explained that the Note had matued and Mark's money had
been converted to a platform. Mark objected saying he did not authorize the conversion
to the platform but he felt there was nothing he could do. Mark remained hopeful the
money would be returned when the platform paid off.



                                                                                           4
As of     December 2009 Mark has not received any money back. Anarlo and Lauritsen
continually refused to show Mark evidence of  the final destination of his money.

EDWAR MAUR
On September 18, 2009 Edward Mazur ("Ed") met with me at the Boulder District
Attorney's Offce. Ed substantially related the following:

Ed was 63 years old. He eared a bachelors degree and was a carpenter and wood worker
by trade. Ed spent 3 years selling commercial real estate in the 1970's but Ed had no
investment experience. Ed sustained a brain injury in a car accident on December 20,
2001 and he is permanently disabled as a result. Ed received a monetary settlement as a
result of the accident. The settlement was in the form of a lump sum deposited into an
anuity held by an investment company. The annuity supplied Ed with regular monthly
checks for living expenses. The anuity was the only retirement Ed had.

About February 2008, Ed was approached by Doug Wertzbaugher with an investment
opportty in a company called One Source Group. Ed had known Wertzbaugher for
about 28 years as they both had attended City On The Hil Church. Ed supported
Wertzbaugher many years ago while Wertzbaugher was on a Chrstian mission for the
church. While Ed attended the church the pastor was Steve Shan. Ed knew that
Wertzbaugher was mared to Steve Shan's sister. Ed knew the associate pastor during
this time was Loren Anarlo. Wertzbaugher told Ed that Anarlo was the President of
One Source Group. Ed had not seen Anarlo for about 20 years but respected Anarlo's
work in the church. However, Ed was not interested in new investments at the time.

In June 2008 Wertzbaugher told Ed that Jack Ashford had invested in One Source Group
and got his money back with a retu on his investment. Ed knew and respected Jack.
Ed placed a high value on Wertzbaugher and Anarlo being associated with the church so
Ed agreed to meet with Anarlo and Wertzbaugher. Jack and Jennifer Ashford also
attended the meeting. Jack said that he had made a 50% return on his investment in 30
days with One Source Group.

Ed was concerned with the safety of his money and wanted to think about his investment
more. In August 2008, Anarlo told Ed that there was another platform closing and Ed
needed to hury to make the deadline. Ed was stil afraid of any risk to his money and
decided not to invest. Wertzbaugher continued pressurng Ed to paricipate but Ed was
stil not convinced it was safe. Wertzbaugher became frstrated with Ed's reluctance and
told Ed, "Fish or cut bait, they all had bills to pay." Ed thought the comment was strange
because Wertzbaugher was not to be paid with up front commissions resulting from Ed's
investment. Ed did not get the chance to have Wertzbaugher explain his comment.
Anarlo told Ed that Mark Stanton, another frend from the church, had invested with
One Source Group and, "was taken care of and happy." Ed tried to contact Mark to
confirm what Anarlo had said but Mark did        not retu Ed's calls.

In August 2008 Wertzbaugher approached Ed again about investing with Anarlo. Ed
agreed to meet with Anarlo. Ed recorded the conversation with an audio recorder.


                                                                                          5
Anarlo explaining that another investment program was on "special" for the month of
August. The program was not the platform designed for over a $1 milion that they (Ed
and Anarlo) discussed earlier but was for under $ 1 milion. The special deal was
extended a week but Ed only had 48 hours to decide. Nothing would happen to the
money for 90 days then (the investment) would pay a return in the amount of                      the
principal plus 8% a month ($80,000 a month on $1 million) for 10 months plus the
principal amount again at the end of                       the 10 months term. The investment would be safe
and not be touched for 10 months. Ed wanted to think fuher about his investment but
he felt heavily pressured to invest.

In October 2008, Ed met with Anarlo and Wertzbaugher again. Ed had watched his
anuity value drop from $310,000 to $200,000 and he wanted to preserve the capital he
had. Ed recorded the meeting with an audio recorder. Anarlo claimed that Ed would
continue to lose money if Ed kept his money in the United States banking system.
Anarlo portrayed the platform program as safer because it was backed by gold and
insured. Anarlo went onto say that Ed's investment would be safe because the money
was "blocked and reserved". Under a million dollars accrued interest at 30% a month.
Over a milion dollars accrued at 8% interest a week and was compounded monthly.
Anarlo said if           Ed could get some frends together, they could start a "JV" Goint venture)
or an LLC (limited liability company) and together accumulate over $ 1 million as that
generated better retus. They (Anarlo and Wertzbaugher) normally traded with a broker
in Fort Collins under his NASD license. Anarlo could also do the deal through a
connection in Texas. Anarlo explained the closest place to trade was in Panama City,
just so the paperwork was signed out ofthe United States. Anarlo said Ed could form
an International Business Corporation (rnC) there ifhe wanted to. The money would be
held at HSBC or UBS, which were the biggest bans in the world. The bans used the
money to broker in Medium Term Notes (MTN) and commercial paper and engaged in
factoring. Anarlo explained that factoring was where "the Federal Reserve (bank) takes
one dollar of your money and they use that $ 1 to lend out $ lOin value to other bans, in
Europe, $1 was worth $20. The bans issue cusips to each block of     money to print more
money." Anarlo said the money was blocked and nobody could touch it. The principal
would remain safe for 10 months at which time Ed would need to withdraw it. Ed could
not access the principal for 10 months or there would be a big penalty but the interest
could be accessed at any time. Anarlo described that he and Wertzbaugher would get
2% on the retu of    the investment. Ed would never be responsible to pay commission.
Anarlo said they had a moderate platform of $40 milion coming up the next month.
Anarlo explained he could combine Ed's money with the $40 milion for a higher rate of
interest. Anarlo explained that they (Anarlo and Wertzbaugher) were not doing
anything with the money other than facilitating the transfer to the bans. The banks
would be investing in churches, orphanages, nursing homes, roads and dams in
developing countres. All of the cash investments including Ed's investment were
backed by gold, unlike the United States bans. The risks included losing control of your
money by having it transferred out of the ban but Anarlo would not let that happen to
"his people". One Source Group had lots of experience in platforms. The investment
baner at One Source Group had been doing platforms for 27 years and Sir Michael
Dibble had been doing it longer in the United Kingdom. Dibble put up $500 milion in


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gold with One Source Group. Anarlo said he had been doing the platforms for two
years as a "principal", but he was not a broker. Anarlo's personal frend had been doing
the platforms for about 10 years on dozens of similar platforms that were used to benefit
zoos in Southern Afca, medical clincs in Uganda, and water wells in Zimbabwe.
Anarlo explained that the reason the platforms are not common knowledge is because
the United States governent blocks citizens from paricipating in platforms with US
dollars, which is why gold was used. Anarlo said that his gold was with One Source
Group to be used in the platforms.

Ed made it clear to Anarlo and Wertzbaugher that the $200,000 investment represented
all the money Ed had. Anarlo told Ed that the minimum Ed could invest in One Source
Group was $250,000. Anarlo told Ed that Phil Trujilo in Fort Collins could work with
his lesser investment. Ed spoke with Kevin Laurtsen who was Anarlo' s connection in
Texas. Ed understood it was Laurtsen who would facilitate the platform. Lauritsen said
that he would make an exception and allow Ed to invest $200,000 in One Source Group.
Ed would be paid a 50% retu on his investment in six months at a rate 0($7,000 a
month beginnng November 2008. However, Ed had to invest right away to be included
in the newest Zurch platform. Anarlo assured Ed that the money would be insured with
                      the FDIC and the investment was risk free. Anarlo prayed with
the Swiss equivalent of

Ed so that Ed would have "the strength to do the right thing."

On October 3 1, 2008 Wertzbaugher met with Ed at Ed's house located at - - -
                          ; Firestone, C( Wertzbaugher collected a Cashier's Check from
Ed for $200,000 and gave Ed a "contract" in a sealed envelope. Ed did not open the
envelope until          later because Wertzbaugher had to get the check to the ban right away so
the money could be wired to Lauritsen who was leaving that day for Europe. Ed opened
the envelope later and found a Promissory Note under the letterhead of One Source
Group listed as the "borrower." Ed was listed as the "lender." The Note was dated
October 30, 2008 and signed by Lauritsen as CEO and Anarlo as President. The
unsecured Note did not reflect any of        the terms Ed had agreed to when he decided to
invest. Ed did not sign the original Note but did sign another copy ofthe Note at a later
date. The Note allowed Ed to convert the investment to shares of an LLP to be formed
Januar 15, 2009. The Note claimed to repay the principal of        $200,000 with $100,000
retur after six months. The payments were to be paid to Ed in monthly installments of
$7,000. The Note indicated that Ed was an accredited investor. Note: Ed does not fit the
definition of an accredited investor.

In December 3,2008, Laurtsen, Wertzbaugher and Anarlo met with Ed at the Westin
Hotel in Westminster, Colorado. Ed expected a payment of$7,000 from Lauritsen for
the first installment. Lauritsen said he forgot his checkbook so he could not pay Ed.
Lauritsen claimed that Mark Santon had been paid back. Ed later leared from Mark that
One Source Group had defaulted on a promissory note with him that was due in
September 2008.

In Februar 2009, Ed met with Wertzbaugher and Anarlo. Ed had stil not received any
of the money promised to him. Anarlo explained that Lauritsen had not been truthful


                                                                                               7
and it was possible that the money had not been sent to Switzerland. Anarlo said Ed's
investment was not in a platform but was in a business loan secured by the promissory
note. Ed had no intention of making a loan to a business with an unsecured promissory
note. Ed only invested because his investment was secured by gold and it would be
combined with other investors' money   as represented by Anarlo and Laurtsen.

Ed sent and received numerous e-mails to and from Lauritsen. Laurtsen claimed that
Anarlo was an alcoholic and was makng promises unkown to Lauritsen. Lauritsen
always promised to repay Ed but each time made varous excuses and gave reasons to
postpone payment for a later time.

Ed would not have invested if he knew that his investment was not safe and secured as
Anarlo and Laurtsen had represented. Ed only authorized his money to be used in the
platform as described by Wertzbaugher, Laurtsen and Anarlo. Ed would not have
invested ifhe knew Anarlo had a problem with alcohoL. Ed would not have invested if
his money was used to pay earlier investors or to pay up front commissions for
Wertzbaugher, Anarlo or Lauritsen. Ed would not have invested ifhe knew Mark
Santon had not been paid back or ifhe knew that Jack had not received any money back
on his second investment.

PHILIP LUKNS
On December 28, 2009 I spoke with Philip ("Phil") Lukens by phone at
Phil substantially related the following:
Phil   leared about One Source Group from Douglas Wertzbaugher. Phil knew Doug
from church and learned that another member ofthe church, Loren Anarlo was also
associated with One Source Group. Phil understood from Loren and Doug that One
Source Group was successful in trading international currency using "gold slips." Loren
routinely called the investments, "platforms." Phil wanted to open his own insurance
company and needed financial backing. Phil thought One Source Funding would be a
good source of funding for his company and he approached Loren for the backing. Loren
forwarded Phil to Kevin Lauritsen as the owner of One Source. Phil spoke with Kevin on
the phone about helping fud his company. Phil understood that Kevin would provide
$ 1 00,000 in fuding but Kevin never sent any money.

Loren represented that the company was making so much money that they wanted to give
back by helping poor villages in Afrca with wells, zoos and churches. Loren said that
the company was going to need a project manager for the philanthropic projects and the
job paid $120,000 a year. Loren offered Phil the job. Phil was excited about the
opportnity and began makng preparations to go to Afrca. Phil was paid $ 1 0,000 as
salar for his first month. Phil did not recall if Loren or Doug paid him his check.

Phil knew Ed Mazur from church. Ed was thinkng about makng an investment with
One Source Group. Ed told Phil what Kevin and Loren were saying about investments
with the company. Phil advised Ed to not invest in One Source Group because it sounded
like a ponzi scheme. Loren threatened to sue Phil for saying negative things about the




                                                                                        8
company. Phil stopped advising Ed or preparng for the Afrca trp until he leared more
about One Source Group.

STEVEN    HAL
On Januar 25,2010 I spoke with Steven ("Steve") Hall by phone. Steve substantially
related the following:
About December 2009 Steve and Kevin Laurtsen were talking about going into business
together. Lauritsen brought two boxes of documents, an external computer hard drve and
a folder of documents to his (Steve's) house to be stored. Steve and Laurtsen both live
in Fort Worth, Texas. Steve allowed Laurtsen to store the items in his garage and home
offce. During the course of a due diligence background check of Lauritsen, Steve learned
about possible criminal complaints against Lauritsen. Steve did not want to have the
items in his possession as he suspected they might be connected to the criminal case and
Lauritsen was hiding them at Steve's house. Steve offered them to me as possible
evidence.

I contacted the Tarant County (Texas) District Attorney's Offce and spoke with
Investigator Jeffrey Gray. On Februar 2,2010 Investigator Gray met with Steve at
Steve's house. Investigator Gray obtained a statement and consent to search for, and take
possession of  Laurtsen's items from Steve. Investigator Gray did not open the boxes but
sent them to me intact at the Boulder Distrct Attorney's Office. I did not open the boxes
or inspect the documents but stored all the items in a secure location.

DOUGLAS WERTZBAUGHER
Douglas ("Doug") Wertzbaugher met me on October 12, 2009 at the Longmont location
of the Boulder District Attorney's Office. Wertzbaugher was not in custody and was
advised that he was free to leave at any time and he did not need to talk with me.
Wertzbaugher substantially related the following:
Wertzbaugher knew Loren Anarlo from their church. They have been frends for many
years and Wertzbaugher referred to him as a brother. Anarlo had a problem with
drnkng and drugs and needed help. Anarlo lost his license from a Drn so
Wertzbaugher drove Anarlo around on daily errands and activities for about two years.

In early 2008 Anarlo contacted Wertzbaugher and invited him to meet at a Starbucks
restaurant at Highway 7 and 1-25. Wertzbaugher was working with a frend, Duane
Hilmus at the time so they went to meet Anarlo together. Anarlo introduced Kevin
Lauritsen to Wertzbaugher and Duane. Laurtsen and Anarlo were offering an
investment opportty in something they called "platforms." Wertzbaugher didn't
understand the investment and Wertzbaugher did not have any money to invest.
Wertzbaugher met regularly with Anarlo and met with Lauritsen about 10 times total
over the next year. Wertzbaugher also met Phil Trujilo who was described as a licensed
investment professional from Fort Collins with 30 years of experience. Wertzbaugher
understood that Phil Trujilo was sellng similar investments including platforms. Phil
offered. investments to investors under $250,000 whereas Anarlo/Lauritsen offered
investments above $250,000. Wertzbaugher agreed to check with some people who
might be interested in investing in One Source. Wertzbaugher considered himself a "bird


                                                                                         9
dog" for money for Jim McKlosky, in a real estate business so Wertzbaugher felt that he
already had contacts that could invest at a high leveL. In March 2008 Wertzbaugher told
Jack and Jenny Ashford about the platform investment with One Source. Wertzbaugher
told them that Anarlo was involved. Jack was familiar with Anarlo in relation to the
church. Jack agreed to meet with Anarlo and Wertzbaugher aranged the meeting. Jack
invested and got his money back with interest. Wertzbaugher could not get paid a
"commission" from Jack's investment because he said that would not be legaL. However,
Wertzbaugher was paid $50,000 from One Source. The payment was called a "consulting
fee" and was not a predetermined amount. Wertzbaugher said he used the money to pay
down his personal debt. Jack also gave Wertzbaugher $2,500 credit against money
Wertzbaugher owed Jack as back payment. Wertzbaugher knew that Jack invested with
Loren again. Wertzbaugher was expecting another consulting fee but understood it
would be paid later. Wertzbaugher said that he met with Anarlo and Laurtsen on June
26,2008 at Wachovia Bank in Broomfield. Wertzbaugher withdrew $13,500 from the
One Source ban account as a cashier's check. Wertzbaugher understood from Anarlo
and Lauritsen that the payment was the consulting fee for Jack's second investment.

Wertzbaugher knew Ed Mazur from church. Wertzbaugher introduced Ed to Anarlo
because Ed was   losing money with his traditional investments. Ed took a long time to
think about investing with Anarlo. Wertzbaugher encouraged Ed to record the meetings
with Anarlo because Ed was cautious about investing. When Ed decided to invest,
Wertzbaugher and Ed went to Wachovia Ban in Boulder to send the money to One
Source. It was too late for the ban to send the check that day so they needed to wait
until later. A day or two later, Wertzbaugher picked up Ed's check from Ed at his home.
The check was in a sealed envelope. Wertzbaugher took the check to the Wachovia Ban
branch in Boulder with wire instrctions for One Source. Anarlo or Laurtsen gave
Wertzbaugher a phone number to a Wachovia supervisor familiar with One Source in
Texas if there was any problem sending the wire. The Boulder Wachovia employee in
Boulder called the number to the Texas Wachovia Ban supervisor and processed the
check. Wertzbaugher got a $12,500 consulting fee for Ed's investment.

Wertzbaugher positively identified unarked photographs of Loren Anarlo and Kevin
Lauritsen.

LOREN ANO
I spoke with Loren Anarlo at the Boulder District Attorney's Office on October 16,
2009 and December 14, 2009. Anarlo came to the Boulder DAs offce on his own
following a voice            mail    message that I left on his phone. I recorded the meeting with a
digital audio recorder with Anarlo's knowledge and consent. I introduced myself and
related that I was conducting a criminal investigation of One Source Funding Group and I
needed to determine what par he played in the investment of                  money by Jack Ashford,
Mark Santon and Ed Mazur. Anarlo substantially related the following:

Anarlo has no training or special education in baning, finance or investments. Anarlo
has done seminars and consulting for large companies for 30 years. Anarlo holds an
undergraduate degree in business from Regis University and he attended seminary


                                                                                                 10
schooL. Anarlo first met Lauritsen at a speaking engagement where Lauritsen was
talking about investments in Pueblo, Colorado. Laurtsen asked Anarlo to help One
Source Funding as a finder of investors. Anarlo said the responsibilities grew to where
he was signg the investment documents himself.

Anarlo was unclear how and what he got paid for. Laurtsen would normally pay
Anarlo with a check or transfer of fuds but Lauritsen often did business in cash so
Anarlo may have been paid with cash. Anarlo was paid a finders fee, also referred to as
a consulting fee, of$lO,OOO or $12,000 for each investor he brought to Lauritsen.
                                                     the investor's money. I showed
Anarlo insisted that he was not paid by a percentage of

Anarlo where he was paid $30,000 on June 18,2008 according to the ban records.
Anarlo explained that the payment would have been from Mark Santon's investment on
June 16,2008 and would have included work performed months ahead of      time. Anarlo
didn't recall getting a $30,000 payment at one time. Anarlo did not maintain an expense
report for reimbursement but trsted Lauritsen to pay him a fair amount for his expenses.
Anarlo estimated One Source paid him about $40,000 over the year and a half, plus
about $48,000 in travel reimbursement. Kevin had complete control of   the money in One
Source although Anarlo had signatue authority ofthe ban account for about 3 months.


Anarlo understood that Lauritsen had a regular phone call most mornings with Tony
Morgan and Chrs Dottridge. Anarlo was allowed by Lauritsen to listen to about 3
phone calls each week. Anarlo normally would not hear the entire call because
Lauritsen would disconnect Anarlo before the call was concluded. In the calls, Chrs
would be on the phone from South Afrca and Tony from England. Tony would talk
about programs and where money was going. Tony said Sir Michael Dibble, a master
baner, was grooming him (Tony) to replace him (Dibble) working with the consortium
of foreign bans. The substance of the calls was about platforms and anticipated
investments. All of the investments discussed were large scale international projects,
some in excess of $ 1 bilion. Tony was able to convince Lauritsen of almost anything.

Anarlo knew each Santon, Ashford and Mazur had experienced hardships in their lives
and Anarlo wanted to help them. Anarlo did not recall the details of   the sales
presentations to Ashford because he was on medications that effected his memory at the
time. Anarlo recalled meeting with Jack Ashford at Ashford's house. Anarlo's job
was to introduce Lauritsen to Ashford and make Ashford comfortable with Lauritsen so
Lauritsen could encourage Ashford to invest. Ed Mazur was present at Ashford's house
for at least one meeting with Lauritsen and Anarlo. Anarlo told Santon and Mazur he
(Anarlo) would be paid when they got their money back.

Anarlo asked Lauritsen for help with the original note to Santon. Lauritsen approved the
final note before Anarlo gave the note to Santon. Anarlo considered himself an
"intern" to Lauritsen's investment expertise and deferred to Lauritsen on each ofthe
investments. Platforms were also discussed regularly especially in the mornng calls with
Lauritsen, Dottdge and Morgan. Anarlo discussed the platform concept freely with Ed
Mazur as an investment opportity with One Source.




                                                                                         11
Anarlo, Laurtsen and Wertzbaugher generated a sense of     urgency with the investors.
The urgency was not a strategy to get investors to pay as much as it was relating the
information about the "platforms" as related by Laurtsen and the European investors
durng the morning phone calls.

Anarlo did not invest money in One Source Funding himself but considered his time
with the company an investment. Anarlo considered himself a businessman who was
earing money from One Source Funding as an employee.


Anarlo met Laurtsen in person about 20 times. Loran has known Wertzbaugher for
many years. Anarlo said Wertzbaugher had no responsibility for any fraud to investors.
Anarlo positively identified unarked photographs of         Kevin Lauritsen and Douglas
Wertzbaugher.

KEVIN LAURTSEN
I spoke with Kevin Lauritsen by phone on November 9,,,2009 and November 23,2009.
Lauritsen also sent me an e-mail with additional information. In the phone calls and the
e-mail Laurtsen substantially related the following:

Lauritsen said Loren Anarlo was the president of One Source. Anarlo was paid a
salar, reimbursement for expenses and finders fees. Wertzbaugher worked for Anarlo
and was paid a finders fee at a percentage basis. Wertzbaugher was behind on his house
payments and needed additional fuding so he was paid more than was due to him.
                                       payment for the finders fees. Anarlo was on
Lauritsen had not established the rate of

the ban account as a signer so he could go into the ban account to pay himself for
travel or other expenses.

Lauritsen denied sellng anything called a platform for investment offshore. Laurtsen
said Toolmate Technologies was an offshore investment program but the investments
from Ed, Jack and Mark did not go into Toolmate. Phil Trujilo was a Fort Collins
(Colorado) financial planer. Lauritsen introduced Phil to Toolmate in Singapore. Phil
wanted to invest in the company and One Source already had a baning relationship with
them so Phil used the One Source account for the investment. Lauritsen paid two
payments in April 2008 to Phil by way of Wealth Management and Cache Ban and
Trust. Lauritsen thought the payments to Phil were for consulting fees.

Lauritsen claimed that Jack Ashford's first investment went into a short-term program
with a business. Jack got his money back. Jack made a second investment that was to be
sent to an investor named Randy Smith in North Carolina for further investment. When I
told Laurtsen that the bank records didn't show the money going to anyone associated
with Smith, Lauritsen had no explanation.

Lauritsen claimed the promissory notes issued to Ed Mazur and Mark Santon were
drafted by Anarlo. Anarlo's notes were different from the notes supplied by Lauritsen.
Lauritsen claimed he didn't know about Mark's note until about September 2009 when


                                                                                          12
Lauritsen offered to issue Mark a replacement note but Mark refused the new terms.
Laurtsen first said Mark invested in the Smith project and later he said Mark's money
went into One Source where it was used for operating expenses.

Lauritsen later characterized the investments from Ed, Jack and Mark as loans. He said
that the "loans" were the same as money obtained from a ban. Lauritsen did not know
what was presented to Jack, Mark and Ed for their money and why they would give the
company uncollateralized loans. Laurtsen claimed that Ed, Jack and Mark knew Anado
personally so they loaned Anarlo the money to go to One Source, which Anarlo was
par owner. The philanthropic platforms were presented by Anarlo and were not his
(Laurtsen's) idea. Laurtsen said that Mark and Ed's money were used for operating
expenses for One Source but they would be paid back from the Smith project when it
paid off. Lauritsen was not personally invested with Randy Smith except for devoting a
year of his time. Laurtsen said that the Smith investment program was going to pay
everyone back within 30 days (December 30, 2009).

Lauritsen said that he should talk to an attorney and then we could talk later. I
discontinued any questions regarding the complaints at that time. I asked Lauritsen not to
send me any documents directly, that those should also go through his attorney.

INVESTIGATION
On September 30, 2009 I obtained a cour order for Wachovia Ban records for accounts
held by Kevin Lauritsen, Loren Anado and One Source Funding Group from April 1,
2008 to November 28, 2008.

Wachovia Ban identified an account under the name of One Source Funding Group
(account number '. The account signatue card showed Kevin Lauritsen
as CEO and Loren Anarlo as Senior Vice President. The ban records, along with
statements from witnesses, including Anado and Lauritsen gave me suffcient
information to prepare a spreadsheet which detailed the origin and destination of money
to and from the account. Investment money from Jack Ashford, Mark Santon, and
Edward Mazur was used in the following maner:

Jack Ashford's $200,000.00 investment was deposited into the account on April 17,
2008. The account had a beginning balance of$226,653.l8. The money was used for the
following expenses:
 04/21/08 -$2,000.00               Kevin Lauritsen
 04/22/08 -$2,000.00               Scott Degraffenreid
 04/23/08 -$5,000.00               Kevin Lauritsen
 04/23/08 -$100,000.00             Phil Trujillo
 04/23/08 -$100,000.00             Phil Trujillo
 04/24/08 -$530.00                 Judith Pond
 04/25/08 -$100,000.00             James Garrick/Golden Gem LLC
 04/29/08 -$100,000.00             Toolmate Technologies
 04/29/08 -$5,000.00               Kevin Lauritsen
 05/05/08 -$5,000.00               Kevin Lauritsen



                                                                                         13
Scott Degraffenreid was paid for consulting. Judith Pond and James Garck were earlier
investors. The payments to Trujilo were for fees, commissions and/or retus on earlier
investments. Toolmate Technologies was an investment for Phil Trujilo. Laurtsen paid
himself $ 1 7,000. In sumar, the total amount of expenses paid out following
Ashfords's investment was $419,530.00 leaving an account balance of$7,123.l8.


Mark Santon's $275,000.00 investment was deposited into the account on June 16,2008.
The account had a beginnng balance of$l 7,293.92. The money was used for the
following expenses:
 06/16/08    -$1,758.00           Judith Pond
 06/16/08    -$2,000.00           Kevin Lauritsen
 06/16/08    -$3,000.00           Kevin Lauritsen
 06/18/08    -$20,000.00          Glenn Moore
 06/18/08    -$25,000.00          Christopher/ Jane Courtland
 06/18/08    -$25,000.00          A 1 Financial Inc.
 06/18/08    -$30,000.00          Loren Ankarlo
 06/18/08    -$30,000.00          Gale Connell
 06/18/08    -$30,000.00          Kevin Lauritsen
 06/18/08    -$60,000.00          Corey Englen


Judith Pond, Glenn Moore, Chrstopher and Jane Courland were earlier investors. The
payment to Al Financial was characterized by Lauritsen as a business venture. Gale
Connell and Corey Englen were paid for recruiting investors. Anarlo paid himself
$30,000 and Laurtsen paid himself $35,000. In sumary, the total amount of expenses
paid out following Santon's investment was $226,758.00 leaving an account balance of
$65,535.92.

 Ed Mazur's $200,000 investment was deposited in the account on October 31,2008.
The account had a beginning balance of -$138.02. The money was used for the following
expenses:
  10/31/08      -$5,000.00        Kevin Lauritsen
  10/31/08      -$5,000.00        Kevin Lauritsen
  10/31/08     -$12,500.00        Douglas Wertbaugher
  11/03/08     -$10,000.00        Jeanine Shinstine
  11/04/08      -$1,650.00        Ron Rhodes
  11/07/08      -$3,000.00        Loren Ankarlo/Ascent Capital, LLC
  11/12/08        -$119.08        Bank Fees
  11/13/08      -$5,000.00        Kevin Lauritsen
  11/13/08     -$16,000.00        Kevin Lauritsen
  11/13/08     -$21,000.00        Jeanine Shinstine
  11/13/08     -$21,000.00        Loren Ankarlo/Ascent Capital, LLC
  11/14/08     -$13,000.00        Jack Ashford
  11/14/08     -$80,000.00        Burke & Reedy LLp
  11/17/08          -$8.94        WalMart
  11/17/08        -$40.79         Timberland Steaks
  11/17/08       -$108.94         WalMart


                                                                                       14
    11/18/08 -$2,000.00 Kevin Lauritsen
    11/20/08 -$2,000.00 Phillip Trujillo
    11/26/08 -$1,000.00 Joseph W Lauritsen
    12/03/08 -$1,000.00 Ron Rhodes
   12/09/08 -$671.89 Bank fees
Douglas Wertzbaugher was paid for recruiting investors. Jeanine Shinstine and Ron
Rhodes and Burke & Reedy were paid for services. Jack Ashford was an earlier investor.
Lauritsen paid himself $33,000. Anarlo paid himself $24,000. Ban fees totaled
$790.97. An additional $158.67 was paid for WalMar and Timberland Steaks. I believe
Joseph Lauritsen is Kevin Laurtsen's father. I did not locate any evidence showing
Joseph Lauritsen with any participation in One Source to justify a $1,000 payment.

A records check ofthe Colorado Secretary of                                State's Offce showed no listing for One
Source Funding, LLC or One Source Group, LLC.


Kevin L. Lauritsen is described by his Texas drvers license as W/M, 6-0/185, Bm/lu
with a social security number of : and a date of             birth of 01/13/1961.
Lauritsen is a resident of Texas with no ties to Colorado. NCIC check for Lauritsen
showed no criminal history.

Loren W. Ankarlo is described by                         his Colorado drvers license as W/M, 6-1/205,
Gry/Blu with a residence at 7176 Four Rivers Road Boulder, CO 80301 and a date of
birth of 07/02/1957. NCIC records check for Anarlo showed 3 arrests for driving under
the influence.

Douglas L. Wertzbaugher is described by his Colorado drivers license as W/M, 6-
5/300, Bm/rn with a residence at 1643 Elmwood Street Broomfield, CO 80020 and a
date of birth of 01/24/1958. NCIC check for Wertzbaugher showed no criminal history.

I believe that suffcient probable cause exists to believe that Kevin L. Lauritsen
committed the crimes of                 Theft 18-4-401, Securties Fraud 11-51-501, Conspiracy 18-2-
201, and Colorado Organized Crime Control Act (COCCA) 18-17-104.1 respectfully
request that a warant be issued for Kevin L. Lauritsen for the crime(s) of                             Theft (3
counts), a class 3 felony; Securties Fraud (3 counts), a class 3 felony; Conspiracy to
commit Securties Fraud, a class 4 felony; and COCCA, a class 2 felony.

I believe that suffcient probable cause exists to believe that Loren W. Ankarlo
committed the crimes of                 Theft 18-4-401, Securties Fraud 11-51-501, Conspiracy 18-2-
201 and Colorado Organzed Crime Control Act (COCCA) 18-17-104. I respectfully
request that a warant be issued for Loren W. Ankarlo for the crime(s) of                               Theft (3
counts), a class 3 felony; and Securties Fraud (3 counts), a class 3 felony; Conspiracy to
commit Securties Fraud, a class 4 felony; and COCCA, a class 2 felony.




                                                                                                                     15
I believe that sufficient probable cause exists to believe that Douglas L. Wertzbaugher
committed the crimes of    Securties Fraud 11-51-501 and Conspiracy 18-2-201. I
respectfully request that a warant be issued for Douglas L. Wertzbaugher for the
crie(s) of Securties Fraud (2 counts), a class 3 felony; and Conspiracy to commit
Securties Fraud, a class 4 felony.




Affiant
Investigator Mark Husman
Boulder County Distrct Attorney's Office
Boulder, Colorado
DACaseNo.



                          of ,2009.
Subscribed and sworn to before me by the said affiant, Investigator Mark Husman, on
this day




                                        Notary Public


                                        Expiration Date



JUGE




                                                                                          16

				
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