Opinion ID: 2655572
Heading Depth: 3
Heading Rank: 2

Heading: Cedar Creek Cover Story

Text: Tanke left Azteca in July 2004. It appears that Martin at least suspected Tanke’s embezzlement a short time later. In an August 5, 2004 email, Martin asked Tanke about a missing April 2004 check, in the amount of $39,330, from Southern Quality Trucks to CERS. Tanke responded by email that he did “not have any check from Southern Quality Trucks” and that all checks he had received had been turned over to accounting or used to pay outstanding vendors and debts. In fact, Tanke had long since deposited the check into his Cedar Creek account. In an August 6 email, Martin told Tanke that he knew the check had been deposited into the Cedar Creek account. In an email response that day, Tanke acknowledged that he had diverted the money into his account, but told Martin that this and similar diversions were legitimate transactions to compensate him for consulting work Cedar Creek had allegedly performed for Azteca and CERS. Tanke’s email attached what he claimed were three “very old invoices” from Cedar Creek and asserted that his actions had “ensured that Cedar Creek was paid for these long overdue invoices.” In addition to casting the diversions as legitimate payments to Cedar Creek, Tanke’s email also used thinly veiled threats to discourage Martin from reporting the matter to authorities. Tanke wrote that this was “purely a ‘business issue’” and that he “hope[d Martin would] not try to expand it to anything else.” Tanke warned that, if Martin pursued the matter further, he would report Martin to federal and state agencies, writing: “You do not want to see this happen, as it could involve you personally in criminal or civil action that could put you in prison or forfeit all of your personal holdings.” UNITED STATES V. TANKE 7 On August 17, Tanke emailed Martin that he should have received invoices by mail showing that over $98,000 was due to Cedar Creek for consulting fees. Tanke noted that Martin had filed documents leading to a hold on the Cedar Creek account and that, if Martin did not lift that hold, he would report Martin’s “numerous frauds and false claims” to authorities. Tanke concluded the email by writing: “I just want what has been and is due to me and we can part friends. Please do not force me to take action that will cause you harm.” Martin replied by email on August 18 that the invoices were “not real,” that Tanke was a salaried employee who received wages and that Azteca did not owe Tanke or Cedar Creek any consulting fees. Martin added, “[i]n response to your threats, if you ha[d] knowledge of any wrongdoing by Azteca . . . , you should have reported it.” On September 16, Tanke caused a letter to be sent from Cedar Creek to Martin by U.S. mail. This mailing, charged as count 2 of the indictment, stated that Azteca and CERS had previously paid some invoices due to Cedar Creek (again, an apparent reference to Tanke’s diversion of checks into his Cedar Creek account) and alleged that Azteca had provided “false information” to Cedar Creek’s bank, which resulted in reversal of these payments. The letter enclosed an invoice from Cedar Creek that requested payment for the previous invoices as well as interest, totaling $159,990.95. In a letter dated September 23, Martin rejected the new invoice and stated that Azteca had never paid any of the previous fictitious invoices either. Martin later testified at trial that Cedar Creek did not perform any of the claimed services reflected on the September 16 Cedar Creek invoice. 8 UNITED STATES V. TANKE He also testified that neither Tanke nor Cedar Creek had ever consulted for CERS.