The United States has never seen the contents of Neilson’s financial affidavit, however,the standard Form CJA 23 is known to inquire about the defendant’s employment and monthlyearnings, other income like rental payments, cash in savings accounts, property including realestate, and monthly obligations and debts. The defendant must execute the document underpenalty of perjury.

UNITED STATES DISTRICT COURTNORTHERN DISTRICT OF MISSISSIPPI

UNITED STATES OF AMERICA:CRIMINAL NO. 3:10CR03-SA-SAA:

versus

::PHILIP HALBERT NEILSON:UNITED STATES’ MOTION FOR REIMBURSEMENTOF CJA FUNDS BY DEFENDANTAND REQUEST FOR DISCLOSURE OF FINANCIAL AFFIDAVIT

I.PROCEDURAL HISTORY

The defendant, Philip Halbert Neilson, was indicted on January 13, 2010. He standsaccused of two counts of acts affecting a personal financial interest and three counts of falsestatements to a federal agency and agent. (Doc. 1). Sometime after his indictment, thedefendant requested court appointed counsel. (Doc. 6). In order to obtain appointed counsel perthe Criminal Justice Act (CJA), Neilson “submitted a completed Financial Affidavit withdetailed personal and financial information in support of his request.” (Id.). The financialaffidavit was ordered sealed pending further order of the court.

(Id.). On January 22, 2010,“having satisfied the court after appropriate inquiry that he [was] financially unable to obtaincounsel,” the Federal Public Defender (FPD) was appointed to represent the defendant. (Doc. 2).Due to a potential conflict of interest, the FPD withdrew from the case and Kenneth Coghlan wassubstituted as appointed counsel of record. (Doc.s 3 & 4). The CJA appointment of Mr.

Case 3:10-cr-00003-SA-SAA Document 19 Filed 02/17/2010 Page 1 of 12

Mr. Coghlan was originally retained by Neilson. He has been involved in the case sinceOctober 2008. Over the past year, Neilson has also enjoyed representation by James Tucker andAmanda Barbour, members of the law firm Butler, Snow.

Defendant filed a Motion To Continue on February 16; said motion is pending action bythe Court.2Coghlan remains in effect.

The defendant appeared with appointed counsel Ken Coghlan on February 1, 2010 andpled not guilty. (Doc. 9). Trial of this matter is currently set for August 16, 2010. (Doc. 18). AScheduling Order has been entered and pretrial motions must be filed on or before July 19, 2010.(Doc. 17).

II.Facts Regarding Neilson’s Ability to Pay for Counsel

During the course of the current investigation, the United States

has gathered substantialinformation about the financial status of defendant Neilson. The data includes bank accounts forC&G Partnership, ACM Properties, Oxford Dependable Dry Storage (ODDS), and personalbank accounts and individual income tax returns of Neilson; it also includes partnership taxreturns and business records for various entities in which Neilson has interests. The data hasbeen examined by a forensic accountant for the purpose of estimating Neilson’s monthly netcash flow from his ownership interests in the Oxford FBI Building and dry storage warehouse.Also, the forensic accountant has examined the financial records for the purposes of estimatingNeilson’s current equity in the Oxford FBI Building and the ODDS warehouse.In summary, Neilson enjoys substantial monthly cash flow from his employment andownership of the Oxford FBI Building and an Oxford area warehouse. Also, Neilson enjoys avery significant equity interest in both of these buildings. Moreover, Neilson enjoys a large

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These interests and assets are more fully set forth in Neilson’s OGE Forms 450(Confidential Financial Disclosure Reports), which the undersigned attorneys possess and canmake available should the Court desire to examine them during the course of determiningwhether to order Neilson to reimburse the government.

Exhibit 2, filed along with this Motion For Reimbursement, sets forth the forensicaccountant’s analysis of Neilson’s available financial and business records.

Exhibit 4 summarizes the ODDS monthly cash flow analysis.3government retirement account and various other real estate interests (

i.e.,

lake house, condo inFlorida, timberland, rural acreage, and an undeveloped lot in Oxford, Mississippi).

A.Neilson’s Share of Monthly Net Income Generated by the Oxford FBI Building

Neilson has enjoyed a 50% ownership of the C&G Partnership

since October 2005.C&G owns and operates the Oxford FBI Building. C&G Partnership has a 10 year lease with theGeneral Services Administration (GSA), the governmental entity responsible for housing theOxford offices of the FBI, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and theUnited States Marshal’s Service. GSA currently pays C&G monthly rent of approximately$42,344. The average monthly C&G expenses are approximately $27,577. The monthly netcash flow produced by the Oxford FBI Building is approximately $14,767; Neilson’s 50%interest in C&G produces for him a current monthly net cash flow of $7,383.B.Neilson’s Share of Monthly Net Income Generated by ODDS Storage Facility

Since March 22, 2006, Neilson has been a 50% member of the ODDS, LLC partnership.ODDS is a storage facility located in Oxford, Mississippi. ODDS currently enjoys a lease with avery large appliance manufacturer. The lease has produced, and continues to produce, asubstantial amount of monthly net income for Neilson and his partner. The current tenant of theODDS warehouse pays monthly rent of $22,360. According to available financial and business