Allegation notice. Allegations from the cited record; outcomes noted where adjudicated.
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Identity · §1001 / §1028

Jan Wallace — The Identity Infrastructure

Wallace operated under four aliases and three Social Security numbers at once — one stolen from the deceased Rob L. Scruggs (765-14-7593), one fabricated (938-29-1149), one stolen from a second decedent (449-03-3083) — each assigned to a distinct fraud function. After Thomas & Wong won a $1,306,144 judgment, she filed Chapter 7 and swore she had “no offshore accounts,” contradicted within minutes by her own prior testimony about Hepburn Holdings (Bermuda).

Listen to this brief
1

How it worked

Wallace compartmentalized her financial identity across three SSNs, each optimized to defeat a different check: the deceased Scruggs number passed SSA verification for government interactions; the fabricated number created banking dead ends; the second deceased number prevented credit discovery. Four aliases fragmented her documentary trail; the 2013 bankruptcy perjury layered on top while Cane's offshore infrastructure stayed active.

Open the filed qui tam complaint at this section — the operative pleading (United States ex rel.), jumped to the matching allegation; the filed PDF is one click away.

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Forensic brief

The complete forensic brief behind this summary — the full record with exhibits. Page through it below, or open it larger for the document summary and key relations.

Forensic brief — Jan Wallace 1 / —
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Three Social Security Numbers — two of them dead men's

On 1 April 2010, in an FBI interview conducted by Special Agent Spencer Walker, Jan Wallace gave her Social Security Number as 765-14-7593. That number belonged to Rob L. Scruggs, who had been dead since 22 November 1992 — more than seventeen years before Wallace handed it to a federal investigator.1

It was not her only one. The FBI, through SA Walker and Forensic Accountant Gwynne Laurente, tied Wallace to three different SSNs across banks, tax filings, and government submissions — one belonging to a dead man, one that the Social Security Administration had never issued, and one belonging to a second dead person.2

SSNStatusHow Wallace used it
765-14-7593Rob L. Scruggs — deceased 22 Nov 1992Given to the FBI as her own; used for official government interactions.
938-29-1149Never issued by the SSAUsed on Bank of America accounts — a plausible-looking number traceable to no one.
449-03-3083Second deceased holder — died 22 Nov 1992Used to open a 1995 BofA card ($8,000+ in collections by 2009) and a 2002 HSBC/Saks card.
Both stolen identities share a death date — 22 November 1992 — suggesting Wallace culled them from the same source. Methodical selection of the dead, not opportunistic theft.
  1. FBI Electronic Communication 318A-SE-96305-FA at 1 (Apr. 27, 2010); Email from SA Scott Henderson to AUSA Aravind Swaminathan (May 26, 2010).
  2. Email from FA Gwynne Laurente to AUSA Swaminathan (June 4, 2010); Email from FA Laurente to SA Henderson (July 15, 2010); SSA verification, Email from SA Henderson (May 26, 2010).
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Six names, one phantom

Behind the SSNs sat a roster of names. Wallace operated under at least six: Jan Mary Wallace, Jan L. Wallace, Jan Jardine, Juanita Jardin, Joan Reardon, and Sarah Blair. The earliest, “Jan L. Wallace,” appears in a 1981 fraud case — American Bank & Trust Co. v. Wallace in the Eastern District of Kentucky — placing the pattern more than four decades back.1

The structure was bifurcated by design. The public identity — “Jan Wallace, CEO and Director” — signed SEC filings, Sarbanes-Oxley certifications, and deposition transcripts. The private identities — the fraudulent SSNs and the spare names — ran the criminal plumbing: concealing assets, evading taxes, obscuring beneficial ownership. She would sign an SEC filing as “President and CEO” in the morning and bank under a dead man's number that afternoon.2

  1. FBI Electronic Communication 318A-SE-96305-FA (Apr. 27, 2010); American Bank & Trust Co. v. Wallace (E.D. Ky. 1981).
  2. MW Medical, Inc. Form 10-KSB, Accession No. 0001011438-98-000283 (1998); Dynamic Associates, Inc. Form SB-2, Accession No. 0001075793-99-000009 (1999).
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Lying to the FBI with a dead man's number

The Scruggs SSN was a calculated choice. Wallace knew agents would run the number, so she gave one that was validly issued and would pass an immediate check — only a deeper cross-reference against the Social Security Death Index would reveal its holder had been dead for nearly two decades.1

The SSA's verification, relayed by SA Scott Henderson to AUSA Aravind Swaminathan on 26 May 2010, left no room for a clerical-error defense:

SSN 449-03-3083 — a valid SSN assigned by SSA on 11/24/73, but the person it was assigned to has been dead since 11/22/1992. SSN 938-29-1149 — this SSN does not exist / was never issued by SSA.Email from FBI SA Scott Henderson to AUSA Aravind Swaminathan (May 26, 2010)

Providing a false identification to a federal agent during an active investigation is a stand-alone crime — 18 U.S.C. §1001 (false statements), compounded by 18 U.S.C. §1028 / §1028A (identity theft and aggravated identity theft, each carrying a mandatory consecutive two-year term) and 42 U.S.C. §408(a)(7)(B) (Social Security fraud). Bank of America records had already shown the account profile was structured so “the SSN is not in her profile” — deliberate engineering to defeat automated fraud detection.2

  1. FBI Electronic Communication 318A-SE-96305-FA (Apr. 27, 2010); Email from SA Henderson (May 26, 2010) (CLEAR-database association of three SSNs with Wallace).
  2. Email from FA Laurente to AUSA Swaminathan (July 27, 2010) (FIA Card Services: “the SSN is not in her profile”); 18 U.S.C. §§1001, 1028, 1028A; 42 U.S.C. §408(a)(7)(B).
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“I have no offshore accounts”

At her 341 Meeting of Creditors on 4 November 2013, under oath and on penalty of perjury, Wallace was asked directly about offshore accounts. She denied them categorically — twice.481

THE COURT: So you don't have any offshore accounts?
MS. WALLACE: I have no offshore accounts.Trial Tr., Wallace Bankruptcy, at 12:15–20 (Nov. 4, 2013)

Minutes later, confronted with her own sworn testimony from United States v. Phillips, she admitted that Hepburn Holdings was a “management account” located “in Bermuda” — and confirmed that prior testimony was correct. Asked whether she ever received money from Hepburn, she retreated to the careful evasion “not that I can recall,” then conceded she had wire-transferred money from Hepburn Holdings to bank accounts in Bermuda.2

MS. WALLACE: “a management account” … “in Bermuda” … “not that I can recall.”Trial Tr., Wallace Bankruptcy, at 17:7–14, 17:24–18:14 (Nov. 4, 2013) (admitting Hepburn Holdings is in Bermuda; conceding wire transfers there — minutes after the denial above)
EntityLocationEvidence of Wallace control
Hepburn Holdings Ltd. BermudaWire-transfer authority; admitted ownership at the 341 meeting.
The Chloe Group Cayman IslandsFBI investigation identified Wallace's interest.
LOM Securities accounts BermudaMultiple Wallace emails showing operational control.
Aberdeen entitiesBermudaLitigation documents identify Wallace control.

Her own emails buried the denial: “Off Shore Accounts And Invoices” (15 Mar 2006), a same-day message on paying LOM Securities, and “FAX Hepburn LOM” (13 Jun 2007) tying the Bermuda entities together — with a companion email invoking UBS in connection with Hepburn.3

  1. Trial Tr., Wallace Bankruptcy, at 12:15–20, 16:9–11 (Nov. 4, 2013).
  2. Id. at 17:7–14 (Hepburn “in Bermuda”), 17:24–18:14 (“not that I can recall”; wire transfers to Bermuda).
  3. Wallace emails: “Off Shore Accounts And Invoices” (Mar. 15, 2006); “Re Paying Lom Securities Sunshine Arch” (Mar. 15, 2006); “FAX Hepburn LOM” and “UBS Bouncing Frame ARCH Hepburn” (June 13, 2007).
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Bankruptcy as the asset shield

On 2 October 2013 — once Thomas & Wong's collection efforts intensified — Wallace filed Chapter 7 in the District of Arizona (Case No. 2:13-bk-17237-SSC). The schedules, signed under penalty of perjury, were an inventory of omissions.1

  • Schedule B (assets): omitted the offshore entities and her beneficial interests in MW Medical, Davi Skin, and Secured Diversified Investments — where she held a 77.4% post-consolidation equity position.
  • Schedule I (income): omitted CEO compensation from multiple public companies, consulting and director fees, and proceeds from offshore securities transactions.

When Thomas & Wong objected, the court ruled its $1,306,144 judgment nondischargeable under 11 U.S.C. §523(a)(2)(A), finding “actual fraud, deception, and material false representations made with intent to deceive.” The concealment itself is bankruptcy fraud — ten documented counts across 18 U.S.C. §152(1), (2), (3), and (7), plus perjury under §1621. The judgment, now past $2 million with interest, has never been paid.2

The fraud reached into the family: daughter Chloe Cutler appeared on joint BofA accounts where her TIN read “124-00-000” and Wallace's read 938-29-1149 — the never-issued number. A concealed Cayman entity, “The Chloe Group,” shares her name.
  1. Thomas & Wong Gen. Contractor, Inc. v. Jan Wallace, No. CV 2005-051325 (Maricopa Cnty. Super. Ct.) (documenting Oct. 2, 2013 bankruptcy filing); In re Wallace, No. 2:13-bk-17237-SSC (Bankr. D. Ariz.).
  2. In re Wallace, Memorandum Decision holding the Thomas & Wong judgment ($1,306,144) nondischargeable for “actual fraud, deception, and material false representations made with intent to deceive” under 11 U.S.C. §523(a)(2)(A) (Bankr. D. Ariz. 2015; aff’d, In re Wallace, BAP No. AZ-15-1319 (9th Cir. B.A.P. Oct. 14, 2016)); related bankruptcy-fraud and perjury exposure under 18 U.S.C. §§152, 1621; Email from FA Laurente (June 4, 2010) (Chloe Cutler joint accounts).
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Possible criminal exposure

Consolidated, the documented conduct is not a handful of slips but a federal indictment's worth of exposure.1

StatuteConductEst. counts
18 U.S.C. §1028(a)(7)Identity theft — 3 SSNs across banking, credit, tax, investigative contexts, 15+ years50+
18 U.S.C. §1028AAggravated identity theft — mandatory 2 yrs consecutive each20+ (≥ 40 yrs)
42 U.S.C. §408(a)(7)(B)Social Security fraud — 3 false SSNs, multiple institutions30+
26 U.S.C. §7206(1) / 31 U.S.C. §5314False tax returns; willful FBAR failures (offshore, 2005–2013)23+
18 U.S.C. §152 / §1621Bankruptcy fraud and perjury (341 meeting; false schedules)14
18 U.S.C. §1001 / §1343False statements to the FBI; wire fraud across 15+ years100+

Layered on top is an immigration dimension: Wallace is a Canadian citizen who served as CEO, President, and Director of at least three SEC-reporting companies — Dynamic Associates (CIK 0000878146), MW Medical / Davi Skin (CIK 0001059577), and SDI (CIK 0000013156) — without work authorization. The stolen SSNs were the mechanism by which she fraudulently established employment eligibility, implicating 8 U.S.C. §1324c and 18 U.S.C. §1546.2

This is why the identity fraud is not a footnote. The fraudulent SSNs and aliases were the foundational infrastructure of the enterprise: they let Wallace hold offshore accounts the IRS couldn't link to her, certify SEC filings while concealing beneficial ownership, and file bankruptcy that hid the proceeds — ensuring no single creditor, regulator, or agent could ever see the whole picture.

  1. Table 3, Comprehensive Criminal Violations — Wallace Identity Fraud; FBI Electronic Communication 318A-SE-96305-FA (Apr. 27, 2010).
  2. IRS Form 211 (Dec. 22, 2011) (Wallace a Canadian citizen / U.S. tax person without work authorization); 8 U.S.C. §1324c; 18 U.S.C. §1546; 42 U.S.C. §408(a)(7)(B).
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The correspondence

Jan Wallace's own email account — recovered from her att.net PST — is the documentary spine of the enterprise. 604 messages run from 5 April 2005 to 25 September 2006, the window in which the Secured Diversified (SDI) shell traffic, the reverse-merger, and the Wallace Black accounting reports were assembled.

Every message is presented beside a layer of data enrichment — a generated summary, extracted entities, and relationship triples — alongside the deterministic RFC-822 headers and the source PDF, and can be filtered by the scheme it documents: SDI shell traffic, SDI accounting fraud, Davi Skin, MW Medical, and the Wallace identity infrastructure.

Browse the Wallace correspondence — 604 messages

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Documents

Jan Wallace, in her own words. A two-page self-authored résumé that presents her as a public-company executive and corporate-governance expert — a fundraiser and turnaround operator who, by her own verb, “orchestrates” financings and reorganizations. Like Cane’s résumé, it reads as an admission: it claims the entities and titles — Dynamic, MW Medical, Davi Skin, SDI — the very shells the enterprise ran, presented as legitimate credentials. The whole document is engineered to convey trust, authority and credibility; in practice it was the instrument she used to consult with founders and CEOs on fundraising and governance — the introduction that placed her and Cane inside companies they would later take. (The source’s first two pages are the résumé; its remaining pages were litigation, indexed below.)

Jan Wallace — résumé · c. 2009
Jan Wallace — résumé 1 / —
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  1. Self-authored — an admission of control. Like Cane’s résumé, Wallace’s own account names her own role: she casts herself as the executive who “orchestrates” the financings and reorganizations — her verb, not ours — across the entities the enterprise ran. Both principals, in their own words, admit the control the filings work to conceal.
  2. Engineered to convey trust. The résumé is built as a credibility instrument: public-company authority, corporate-governance expert, seasoned fundraiser and turnaround specialist. Every signal is calibrated to make a founder comfortable handing over the cap table and the board.
  3. The same shells, recast as credentials. It lists the very companies the enterprise controlled — Dynamic, MW Medical, Davi Skin, SDI — as legitimate executive experience. Read beside the complaints below, each “credential” is an entity she was sued over.
  4. The function: the introduction that ensnares. This is the document Wallace used to consult with CEOs and founders on fundraising and corporate governance — the entry point that paired her and Cane with entrepreneurs (Medley, Mondavi and others) whose companies were then diluted, driven into Chapter 11, or taken from them.
  5. The wager: nobody checks the record. Set the two résumés side by side — Wallace’s and Cane’s — against the SEC filings and the complaints indexed below, and a wholly different story emerges. That gap is not carelessness; it is the bet. The enterprise runs on the confidence that ordinary people do not pull background checks, and could not match a résumé line to a court docket or an EDGAR filing even if they tried — PACER and the full SEC record are opaque and effectively closed to non-specialists. The inaccessibility of the public record is the cover, and they take advantage of it.
Wallace deposition — sworn testimony · 20 Dec 2006
Wallace deposition — sworn testimony 1 / —
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Medley v. Wallace, No. CV 06-3370 (C.D. Cal.). Wallace deposed under oath on the Davi Skin control structure and the concealed $200,000 promissory note — the CEO’s own account, taken two days after Cane’s. Read the exhibit inline, or press listen + read transcript for the full multi-voice recording with the transcript scrolling in sync.

  1. Her own sworn words. The full ~4.7-hour deposition, voiced turn-by-turn — examiner and witness in distinct voices — with the verbatim transcript highlighting as it plays.
  2. The $200k note. Wallace’s testimony on the concealed promissory note and the offshore nominee structure positioned to seize Davi Skin.
  3. Measured against the filings. The contemporaneous account to set beside the SEC record and the Medley complaint — her words, in her own voice.
§ 341 creditor examination · 4 Nov 2013
§ 341 creditor examination 1 / —
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In re Wallace, No. 2:13-bk-17237-SSC (Bankr. D. Ariz.). The § 341 meeting of creditors — Wallace examined under oath in her own Chapter 7, where she testified she held “no offshore accounts.” Press ▶ listen + read transcript; the popup offers both the highlights (the offshore-accounts exchange) and the full audio (the complete recorded examination), with the speaker-labelled transcript scrolling inline.

  1. “No offshore accounts.” Sworn testimony in the creditor examination — set against the offshore nominee structure documented across the record.
  2. Bankruptcy as the asset shield. The Chapter 7 the Thomas & Wong panel later held could not discharge Wallace’s fraud debt.
FBI Investigation — Wallace · 27 Apr 2010
FBI Investigation — Wallace 1 / —
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  1. Selected U.S. border-crossing records the FBI pulled on Wallace — the immigration dimension of the identity fraud (FBI Electronic Communication 318A-SE-96305-FA, Apr. 27, 2010).
  2. A Canadian national inside U.S. public companies. Wallace served as CEO, President, and Director of Dynamic Associates, MW Medical / Davi Skin, and SDI — without work authorization. These records are the government’s own trace of her cross-border movements.
  3. The stolen SSNs were the work permit. The three fraudulent Social Security numbers were the mechanism by which Wallace fraudulently established employment eligibility — implicating 8 U.S.C. §1324c and 18 U.S.C. §1546.
  4. From the same 2010 FBI file. Drawn from FBI EC 318A-SE-96305-FA — the investigative record that tied Wallace to three SSNs (two of them dead men’s) and six names.
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Complaints against Wallace

Every civil complaint that named Jan Wallace across the enterprise — the same operator sued at entity after entity, for the conduct her résumé recasts as a career. The list closes with the two federal actions the whistleblower himself brought — a Computer Fraud & Abuse Act complaint and a RICO complaint naming Wallace and Cane directly.

  • 25 May 2000Burwell v. Wallace, Amended Complaint (MW Medical era), No. CV2000-007658 open
  • 9 Apr 2001Westminster Agencies v. Dynamic Associates — Wallace's Dynamic vehicle open
  • 21 Apr 2006Medley v. Wallace, Complaint (Davi Skin) open
  • 4 May 2006Strand v. Wallace & Secured Diversified Investment, Complaint open
  • 24 Mar 2010Zenith v. Davi Skin, Inc. & Jan Wallace, Complaint open
  • 12 Mar 2013Phillips v. Arnold, De Haan, Smyth, Wallace & Lundvall, Complaint — Computer Fraud & Abuse Act (18 U.S.C. §1030), No. 2:13-cv-00444 (D. Nev.) (45-pp. pleading; exhibits omitted) open
  • 10 Mar 2014Phillips v. Cane et al., RICO Complaint (18 U.S.C. §§1962–1964), No. 2:14-cv-00343 (D. Nev.) — names Cane and Wallace as defendants open
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Timeline

  1. 1981Earliest documented fraud — American Bank & Trust Co. v. Wallace (E.D. Ky.), alias “Jan L. Wallace.”
  2. 1 Apr 2010FBI SA Spencer Walker interview (Seattle); Wallace gives SSN 765-14-7593 (deceased Scruggs) — §1001 violation.
  3. 27 Apr 2010FBI interview re offshore accounts; multiple false statements (FBI EC 318A-SE-96305-FA).
  4. 2 Oct 2013Wallace files Chapter 7 (No. CV2005-051325, Maricopa County).
  5. 4 Nov 2013At trial Wallace testifies “no offshore accounts” — contradicted within minutes by her Hepburn Holdings (Bermuda) testimony from U.S. v. Phillips.
  6. Feb 2015Bankruptcy court finds “actual fraud, deception, and material false statements”; $1,306,144 not discharged.
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Named parties

  • Jan Mary Wallace (a/k/a Jan L. Wallace, Jan Jardine, Juanita Jardin, Joan Reardon)
  • Chloe Cutler (daughter; joint fraudulent-TIN accounts)
  • Kyleen Cane (offshore-infrastructure coordination)
  • Offshore: Hepburn Holdings Ltd. (Bermuda), The Chloe Group (Cayman), LOM Securities, Aberdeen entities
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Citations & pleadings