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Edward Stanton plea agreement

Edward Stanton plea agreement

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Published by: The Dallas Morning News on Apr 06, 2011
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Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 1 of 25 Page ID #:5

1 ANDRE BIROTTE JR.
United States Attorney
2 ROBERT E. DUGDALE
Assistant United States Attorney
3 Chief, Criminal Division
EVAN J. DAVIS (Cal. State Bar #250484)
4 Assistant United States Attorney
Major Frauds Section
5 1100 United States Courthouse
312 North Spring Street
6 Los Angeles, California 90012
Telephone: (213) 894-4850
7 Facsimile: (213) 894-6269
Email: Evan.Davis@usdoj.gov
8
Attorneys for Plaintiff
9 UNITED STATES OF AMERICA
10

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CL. ,if L DIS T. OF CALIF..
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UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF CALIFORNIA
UNITED STATES OF AMERICA,
) CR N
5
)
Plaintiff, ) PLEA AGREEMENT FOR DEFENDANT
) EDWARD STANTON
v.
)
)
EDWARD STANTON,
)
)
Defendant. )
)
)
20 1. This constitutes the plea agreement between EDWARD
21 STANTON ("defendant") and the United States Attorney's Office for
22 the Central District of California ("the USAO") in the
23 investigation of a charitable-giving tax scheme that involved the
24 preparation and presentation of tax returns that included
25 falsified deductions based on inflated appraisals of art work
26 donated to charity. This agreement is limited to the USAO and
27 cannot bind any other federal, state, local, or foreign
28
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 2 of 25 Page ID #:6
1 prosecuting, enforcement, administrative, or regulatory
2 authorities.
3 DEFENDANT'S OBLIGATIONS
4 2. Defendant agrees to:
5 a) Give up the right to indictment by a grand jury and,
6 at the earliest opportunity requested by the USAO and provided by
7 the Court, appear and plead guilty to a one-count information in
8 the form attached to this agreement as Exhibit A or a
9 substantially similar form.
10 b) Not contest facts agreed to in this agreement.
11 c) Abide by all agreements regarding sentencing factors
12 contained in this agreement.
13 d) Appear for all court appearances, surrender as
14 ordered for service of sentence, obey all conditions of any bond,
15 and obey any other ongoing court order in this matter.
16 e) Not commit any crime; however, offenses that would
17 be excluded for sentencing purposes under United States
18 Sentencing Guidelines (nU.S.S.G." or nSentencing Guidelines")
19 § 4A1.2(c) are not within the scope of this agreement.
20 f) Be truthful at all times with Pretrial Services, the
21 United States Probation Office, and the Court.
22 g) Pay the applicable special assessment at or before
23 the time of sentencing unless defendant lacks the ability to pay
24 and submits a completed financial statement (form OBD-500) to the
25 USAO prior to sentencing.
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Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 3 of 25 Page ID #:7
1 h) Not seek the discharge of any restitution
2 obligation, in whole or in part, in any present or future
3 bankruptcy proceeding.
4 i) To fill out and deliver to the USAO a completed
5 financial statement (form OBD-500) listing defendant's assets.
6 3. Defendant further agrees to cooperate fully with the
7 USAO, the Internal Revenue Service, and, as directed by the USAO,
8 any other federal, state, local, or foreign prosecuting,
9 enforcement, administrative, or regulatory authority. This
10 cooperation requires defendant to:
11 a) Respond truthfully and completely to all questions
12 that may be put to defendant, whether in interviews, before a
13 grand jury, or at any trial or other court proceeding.
14 b) Attend all meetings, grand jury sessions, trials
15 or other proceedings at which defendant's presence is requested
16 by the USAO or compelled by subpoena or court order.
17 c) Produce voluntarily all documents, records, or
18 other tangible evidence relating to matters about which the USAO,
19 or its designee, inquires.
20 4. For purposes of this agreement: (1) "Cooperation
21 Information" shall mean any statements made, or documents,
22 records, tangible evidence, or other information provided, by
23 defendant pursuant to defendant's cooperation under this
24 agreement; and (2) "Plea Information" shall mean any statements
25 made by defendant, under oath, at the guilty plea hearing and the
26 agreed to factual basis statement in this agreement.
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3
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 4 of 25 Page ID #:8
1 THE USAO'S OBLIGATIONS
2 5. The USAO agrees to:
3 a) Not contest facts agreed to in this agreement.
4 b) Abide by all agreements regarding sentencing factors
5 contained in this agreement.
6 c) At the time of sentencing, provided that defendant
7 demonstrates an acceptance of responsibility for the offense up
8 to and including the time of sentencing, recommend a two-level
9 reduction in the applicable Sentencing Guidelines offense level,
10 pursuant to U.S.S.G. § 3E1.1, and recommend and, if necessary,
11 move for an additional one-level reduction if available under
12 that section.
13 d) Recommend that defendant be sentenced to a term of
14 imprisonment no higher than the low end of the applicable
15 Sentencing Guidelines range, provided that the offense level used
16 by the Court to determine that range is 15 or higher prior to any
17 departure downward in offense level pursuant to U.S.S.G. § 5K1.1
18 and provided that the Court does not depart downward in criminal
19 history category or offense level except to the extent requested
20 by the USAO pursuant to U.S.S.G. § 5K1.1. For purposes of this
21 agreement, the low end of the Sentencing Guidelines range is that
22 defined by the Sentencing Table in U.S.S.G. Chapter 5, Part A,
23 without regard to reductions in the term of imprisonment that may
24 be permissible through the substitution of community confinement
25 or home detention as a result of the offense level falling within
26 Zone B or Zone C of the Sentencing Table.
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Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 5 of 25 Page ID #:9
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6. The USAO further agrees:
a) Not to offer as evidence in its case-in-chief in
the above-captioned case or any other criminal prosecution that
may be brought against defendant by the USAO, or in connection
with any sentencing proceeding in any criminal case that may be
brought against defendant by the USAO, any Cooperation
Information. Defendant agrees, however, that the USAO may use
both Cooperation Information and Plea Information: (1) to obtain
and pursue leads to other evidence, which evidence may be used
for any purpose, including any criminal prosecution of defendant;
(2) to cross-examine defendant should defendant testify, or to
rebut any evidence offered, or argument or representation made,
by defendant, defendant's counsel, or a witness called by
defendant in any trial, sentencing hearing, or other court
proceeding; and (3) in any criminal prosecution of defendant for
false statement, obstruction of justice, or perjury.
b) Not to use Cooperation Information against
defendant at sentencing for the purpose of determining the
applicable guideline range, including the appropriateness of an
upward departure, or the sentence to be imposed, and to recommend
to the Court that Cooperation Information not be used in
determining the applicable guideline range or the sentence to be
imposed. Defendant understands, however, that Cooperation
Information will be disclosed to the probation office and the
Court, and that the Court may use Cooperation Information for the
purposes set forth in U.S.S.G. § IBl.8(b) and for determining the
sentence to be imposed.
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Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 6 of 25 Page ID #:10
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Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 7 of 25 Page ID #:11
1 d) At this time the USAO makes no agreement or
2 representation as to whether any cooperation that defendant has
3 provided or intends to provide constitutes or will constitute
4 substantial assistance. The decision whether defendant has
5 provided substantial assistance will rest solely within the
6 exclusive judgment of the USAO.
7 e) The USAO's determination whether defendant has
8 provided substantial assistance will not depend in any wayan
9 whether the government prevails at any trial or court hearing in
10 which defendant testifies or in which the government otherwise
11 presents information resulting from defendant's cooperation.
12 NATURE OF THE OFFENSE
13 8. Defendant understands that for defendant to be guilty of
14 the crime charged in the one-count information (violation of
15 Title 26, United States Code, Section 7206(2)), the following
16 must be true: (1) the defendant aided, assisted, advised, or
17 procured a person in the preparation or presentation of an income
18 tax return that was false or fraudulent; (2) the income tax
19 return was false or fraudulent as to any material matter
20 necessary to a determination of whether income tax was owed; and
21 (3) the defendant acted willfully. Defendant admits that
22 defendant is, in fact, guilty of this offense as described in the
23 one-count information.
24 PENALTIES AND RESTITUTION
25 9. Defendant understands that the statutory maximum
26 sentence that the Court can impose for a violation of Title 26,
27 United States Code, Section 7206(2), is: three years
28 imprisonment; a one-year period of supervised release; a fine of
7
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 8 of 25 Page ID #:12
1 $250,000 or twice the gross gain or gross loss resulting from the
2 offense, whichever is greatest; and a mandatory special
3 assessment of $100.
4 10. Defendant agrees to make full restitution to the
5 Department of Treasury, Internal Revenue Service, for the losses
6 caused by defendant's activities. Defendant agrees that, in
7 return for the USAO's compliance with its obligations under this
8 agreement, the amount of restitution is not restricted to the
9 amounts alleged in the count to which defendant is pleading
10 guilty and may include losses arising from charges not prosecuted
11 pursuant to this agreement as well as all relevant conduct in
12 connection with those charges. The parties currently believe
13 that the applicable amount of restitution is approximately
14 $370,938, before crediting any payments applied to the 2004 tax
15 period for taxpayers G.M. and his spouse F.M., B.M. and his
16 spouse K.M., and T.R. and his spouse J.R., but recognize and
17 agree that this amount could change based on facts that come to
18 the attention of the parties prior to sentencing. The government
19 agrees to recommend that defendant be jointly and severally
20 liable for this restitution with any other person who is
21 convicted if that persons' offense conduct or relevant conduct
22 includes the same conduct described in the factual basis
23 contained In the plea agreement.
24 11. Defendant understands that supervised release is a
25 period of time following imprisonment during which defendant will
26 be subject to various restrictions and requirements. Defendant
27 understands that if defendant violates one or more of the
28 conditions of any supervised release imposed, defendant may be
8
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 9 of 25 Page ID #:13
1 returned to prison for all or part of the term of supervised
2 release authorized by statute for the offense that resulted in
3 the term of supervised release, which could result in defendant
4 serving a total term of imprisonment greater than the statutory
5 maximum stated above.
6 12. Defendant understands that, by pleading guilty,
7 defendant may be giving up valuable government benefits and
8 valuable civic rights, such as the right to vote, the right to
9 possess a firearm, the right to hold office, and the right to
10 serve on a jury. Defendant understands that once the court
11 accepts defendant's guilty plea, it will be a federal felony for
12 defendant to possess a firearm or ammunition. Defendant
13 understands that the conviction in this case may also subject
14 defendant to various other collateral consequences, including but
15 not limited to revocation of probation, parole, or supervised
16 release in another case and suspension or revocation of a
17 professional license. Defendant understands that unanticipated
18 collateral consequences will not serve as grounds to withdraw
19 defendant's guilty plea.
20 13. Defendant understands that, if defendant is not a
21 United States citizen, the felony conviction in this case may
22 subject defendant to removal, also known as deportation, which
23 may, under some circumstances, be mandatory. The court cannot,
24 and defendant's attorney also may not be able to, advise
25 defendant fully regarding the immigration consequences of the
26 felony conviction in this case. Defendant understands that by
27 entering a guilty plea defendant waives any claim that unexpected
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Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 10 of 25 Page ID #:14
1 immigration consequences may render defendant's guilty plea
2 invalid.
3 FACTUAL BASIS
4 14. Defendant and the USAO agree to the statement of facts
5 provided below. Defendant and the USAO agree that this statement
6 of facts is sufficient to support a plea of guilty to the charge
7 described in this agreement and to establish the Sentencing
8 Guidelines factors set forth in paragraph 16 below but is. not
9 meant to be a complete recitation of all facts relevant to the
10 underlying criminal conduct or all facts known to either party
11 that relate to that conduct.
12 a. Defendant is an art collector and in 1990,
13 purchased approximately 1,500 paintings by the deceased
14 Mexican artist Jesus "Chu Cho" Reyes Ferreira for
15 approximately $1 million, which was approximately $750 per
16 painting. Defendant grouped these paintings together as the
17 Milano Collection and at that time believed he was the
18 exclusive holder of this Collection.
19 b. Defendant also gifted and sold his art from the
20 Milano Collection to friends such as G. M. Defendant
21 typically sold his art at a discount of 15% of the "claimed
22 value," which value defendant set by using the offering
23 prices for similar work in the 1980s and then increasing
24 those prices by approximately 5% to 10% per year for
25 "inflation." Defendant set the claimed value without regard
26 to prices recently paid for similar Reyes paintings.
27 Defendant also knew that artwork prices can fluctuate up and
28 down from year to year and that recent sales were necessary
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Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 11 of 25 Page ID #:15
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to substantiate a claimed value for these reasons. Not
until late 2004, however, did defendant understand that he
could not substantiate the claimed value if challenged.
c. Defendant was aware that the IRS allowed a tax
deduction for art donations to a charity, although the IRS
required appraisals of the artwork in some circumstances.
Defendant sold paintings to G.M. and then later to his
brother B.M., their corporation, and their business partner,
T.M. In order for the buyers, who were also collectors, to
receive a tax deduction, the art had to be donated to a
charitable or non-profit organization. Defendant suggested
in discussions that occurred in or about 1999 that the
buyers/collectors could donate the art after the requisite
IRS holding period expired to the charity A.A.V.C., a non-
profit 501(c) organization that was owned and operated by
A.V. Defendant and the buyers discussed the charitable
donations with the buyers' accountant B.G., who took the
transaction to the Board of Directors of G.M. and B.M.'s
corporation for approval.
d. Shortly before donating the artwork to the
A.A.V.C. non-profit, the art had to be appraised in
preparation for the charitable deduction. Photographs of
the art rather than the art itself were typically submitted
for appraisals. In or about 1999, defendant initially
offered to submit the art photos to appraiser A.L., but the
buyers and B.G. chose appraiser L.L. Although L.L. had
previously appraised Reyes pieces for A.A.V.C. in prior
years, L.L. still contacted defendant directly to obtain
11
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 12 of 25 Page ID #:16
1 prior sales information to assist in L.L. 's appraising the
2 art pieces. As defendant understood, because the pieces
3 from the Milano Collection did not generate much of an
4 individual retail sales market, there was little or no
5 recent public sales information, so L.L. relied on
6 defendant, the owner of the Milano Collection, for valuation
7 information.
8 e. On or about March 26, 2003, defendant purchased
9 from A.V. some of the paintings from the Milano Collection
10 that defendant has previously sold to G.M. and/or T.R.,
11 which were then donated to A.A.V.C. by G.M. and/or T.R. in
12 2001. These pieces were previously appraised by L.L. at
13 approximately $23,000 each in 2001. When A.V. sold the
14 paintings to defendant directly from A.A.V.C. and through an
15 A.V.-controlled entity, C.A.S., defendant paid A.V. $1,000
16 for each painting.
17 f. Defendant re-titled a few of the paintings,
18 although the art catalogue number or reference remained
19 unchanged. The re-titled paintings were resold to T.R. on
20 or about October 16, 2003, and to B.M. on or about November
21 19, 2003, for approximately $4,500 each, for a total of
22 $30,000 and $50,000 in sales, respectively. As defendant
23 then knew, these paintings were purchased for donation to
24 A.A.V.C. after being held for the requisite holding period
25 and were to be appraised by L.L. prior to the donation.
26 g. When defendant sent various photos of artwork to
27 assist L.L. 's appraising the Reyes paintings that T.R. and
28 B.M. were donating to A.A.V.C. in December 2004, the photos
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Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 13 of 25 Page ID #:17
1 included a few of the previously donated pieces. Defendant
2 failed to advise L.L. that the previously donated pieces
3 were being reappraised for donation to the same charity that
4 had received them before, A.A.V.C.
5 h. In mid-2004, L.L. asked defendant how some of
6 defendant's claimed values for the Reyes paintings were
7 justified, such as those in $30,000 or $40,000 range. In
8 response, defendant provided information regarding where the
9 art had been published, defendant's opinion of its
10 uniqueness, and a list of claimed values from previous
11 pieces. Defendant believed he held the exclusive Milano
12 Collection and that the only actual sales thereof were to
13 persons donating the artwork to A.A.V.C. Defendant's 2004
14 claimed values were derived from his self-generated formula
15 of using prices from the 1980s and adding 5% to 10% per year
16 to those prices, but did not reflect recent retail sales.
17 i. During or around the time in which defendant was
18 providing information for L.L. to appraise the December 2004
19 donations to A.A.V.C., defendant became aware that B.M. and
20 G.M.'s company was defending an IRS audit of previous
21 donations. Defendant was asked to substantiate the claimed
22 values and conferred with A.V. to obtain written sales
23 receipts. However, defendant was unable to substantiate any
24 claimed values as neither defendant nor A.V. had any written
25 retail sales receipts in support of the claimed values that
26 defendant had provided to the buyers and to L.L. when L.L.
27 was preparing his appraisals.
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Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 14 of 25 Page ID #:18
1 j. Because of the lack of documentation and the
2 realization that the way in which defendant had calculated
3 claimed values was flawed, defendant realized in late 2004
4 that he had given inflated claimed values to L.L. in the
5 past. Notwithstanding this realization, or his awareness of
6 the fact that some of the artwork being appraised in 2004
7 was being redonated after defendant had repurchased the
8 artwork from A.A.V.C. for approximately 4% of the appraised
9 value, defendant did not notify L.L. or his clients that his
10 claimed values for pre-2004 donated artwork were inflated.
11 Further, defendant provided claimed values to L.L. for the
12 December 2004 appraisals that defendant knew at the time he
13 provided them were inflated and could not be substantiated.
14 Defendant also knew that as in the past, L.L. 's appraisals
15 would be provided to accountant B.G. and used to support
16 charitable-giving deductions on B.M and F.M. 's 2004 tax
17 return.
18 k. On or about October 17, 2005, B.M. and his spouse
19 K.M., filed a 2004 federal income tax return containing the
20 inflated and unsubstantiated or false appraisals by L.L. to
21 justify the value of their donation of the Reyes paintings
22 to A.A.V.C., whose value totaled $336,000. Defendant knew
23 that his opinion as to the value of the paintings were
24 unsubstantiated by comparable market sales thus were
25 inflated.
26 1. Defendant also aided in providing the excessive
27 appraisals to be filed with the 2004 tax returns of T.R. and
28 his spouse J.R., and of G.M. and his spouse F.M., for
14
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1
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donations to A.A.V.C., along with B.M and K.M. 's tax return,
resulting in a tax loss for the 2004 calendar year of
$370,938.
SENTENCING FACTORS
5 15.
Defendant understands that in determining defendant's
6 sentence the Court is required to consider the factors set forth
7 in 18 U.S.C. § 3553(a) (1)-(7), including the kinds of sentence
8 and sentencing range established under the Sentencing Guidelines.
9 Defendant understands that the Sentencing Guidelines are advisory
10 only, that defendant cannot have any expectation of receiving a
11 sentence within the Sentencing Guidelines range, and that after
12 considering the Sentencing Guidelines and the other § 3553(a)
13 factors, the Court will be free to exercise its discretion to
14 impose any sentence it finds appropriate up to the maximum set by
15 statute for the crime of conviction.
16 16.
Defendant and the USAO agree to the following
17 applicable Sentencing Guidelines factors:
18 Base offense level:
19
18 [tax loss between $200,000 and
$400,000, USSG § 2T4.1(G)]
20 Defendant and the USAO reserve the right to argue that additional
21 specific offense characteristics, adjustments, and departures
22 under the Sentencing Guidelines are appropriate.
In particular,
23 the government intends to argue that a two-point enhancement
24 under U.S.S.G. § 2T1.4(b) (1) should apply based on defendant
25 having receipt a substantial portion of his income from this tax
26 scheme. Defendant intends to oppose this sentencing enhancement.
27 17.
Defendant understands that there is no agreement as to
28 defendant's criminal history or criminal history category.
15
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1 18. Defendant and the USAO reserve the right to argue for a
2 sentence outside the sentencing range established by the
3 Sentencing Guidelines based on the factors set forth in 18 U.S.C.
4 § 3553 (a) (1), (a) (2), (a) (3), (a) (6), and (a) (7) .
5 WAIVER OF CONSTITUTIONAL RIGHTS
6 19. Defendant understands that by pleading guilty,
7 defendant gives up the following rights:
8 a) The right to persist in a plea of not 1
9 b) The right to a speedy and public trial by jury.
10 c) The right to the assistance of an attorney at trial,
11 including the right to have the Court appoint an attorney to
12 represent defendant at trial. Defendant understands, however,
13 that, despite defendant's guilty plea, defendant retains the
14 right to be represented by an attorney -- and, if necessary, to
15 have the Court appoint an attorney if defendant cannot afford one
16 -- at every other stage of the proceeding.
17 d) The right to be presumed innocent and to have the
18 burden of proof placed on the government to prove defendant
19 guilty beyond a reasonable doubt.
20 e) The right to confront and cross-examine witnesses
21 against defendant.
22 f) The right to testify on defendant's own behalf and
23 present evidence in opposition to the charge, including calling
24 witnesses and subpoenaing those witnesses to testify.
25 g) The right not to be compelled to testify, and, if
26 defendant chose not to testify or present evidence, to have that
27 choice not be used against defendant.
28
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1 h) Any and all rights to pursue any affirmative
2 defenses, Fourth Amendment or Fifth Amendment claims, and other
3 pretrial motions that have been filed or could be filed.
4 i) Having been fully advised by defendant's attorney
5 regarding the requirements of venue with respect to the offense
6 to which defendant lS pleading guilty, to the extent the offense
7 to which defendant is pleading guilty was committed, begun, or
8 completed outside the Central District of California, defendant
9 knowingly, voluntarily, and intelligently waives, relinquishes,
10 and gives up: (a) any right that defendant might have to be
11 prosecuted only in the district where the offense to which
12 defendant is pleading guilty was committed, begun, or completed;
13 and (b) any defense, claim, or argument defendant could raise or
14 assert based upon lack of venue with respect to the offense to
15 which defendant is pleading guilty.
16 WAIVER OF APPEAL OF CONVICTION
17 20. Defendant understands that, with the exception of an
18 appeal based on a claim that defendant's guilty plea was
19 involuntary, by pleading guilty defendant is waiving and giving
20 up any right to appeal defendant's conviction on the offense to
21 which defendant is pleading guilty.
22 LIMITED MUTUAL WAIVER OF APPEAL OF SENTENCE
23 21. Defendant agrees that, provided the Court imposes a
24 total term of imprisonment of no more than 18 months, defendant
25 gives up the right to appeal all of the following: (a) the
26 procedures and calculations used to determine and impose any
27 portion of the sentence; (b) the term of imprisonment imposed by
28 the Court; (c) the fine imposed by the court, provided it is
17
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1 within the statutory maximum; (d) the amount and terms of any
2 restitution order, provided it requires payment of no more than
3 $370,938; (e) the term of probation or supervised release imposed
4 by the Court, provided it is within the statutory maximum; and
5 (f) any of the following conditions of probation or supervised
6 release imposed by the Court: the standard conditions set forth
7 in General Orders 318, 01-05, and/or 05-02 of this Court; and the
8 drug testing conditions mandated by 18 U.S.C. §§ 3563(a) (5) and
9 3583 (d) .
10 22. The USAO agrees that, provided (a) all portions of the
11 sentence are at or below the statutory maximum specified above
12 and (b) the Court imposes a term of imprisonment of no less than
13 18 months, the USAO gives up its right to appeal any portion of
14 the sentence, with the exception that the USAO reserves the right
15 to appeal the amount of restitution ordered if that amount is
16 less than $370,938, before crediting any payments received by the
17 IRS related to underpayments arising from defendant's conduct for
18 the 2004 tax accounts of B.M. and K.M., G.M. and F.M., and T.R.
19 and J.R.
20 RESULT OF WITHDRAWAL OF GUILTY PLEA
21 23. Defendant agrees that if, after entering a guilty plea
22 pursuant to this agreement, defendant seeks to withdraw and
23 succeeds in withdrawing defendant's guilty plea on any basis
24 other than a claim and finding that entry into this plea
25 agreement was involuntary, then (a) the USAO will be relieved of
26 all o ~ its obligations under this agreement, including in
27 particular its obligations regarding the use of Cooperation
28 Information; and (b) in any investigation, criminal prosecution,
18
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1 or civil, administrative, or regulatory action, defendant agrees
2 that any Cooperation Information and any evidence derived from
3 any Cooperation Information shall be admissible against
4 defendant, and defendant will not assert, and hereby waives and
5 gives up, any claim under the United States Constitution, any
6 statute, or any federal rule, that any Cooperation Information or
7 any evidence derived from any Cooperation Information should be
8 suppressed or is inadmissible.
9 EFFECTIVE DATE OF AGREEMENT
10 24. This agreement is effective upon signature and
11 execution of all required certifications by defendant,
12 defendant's counsel, and an Assistant United States Attorney.
13 BREACH OF AGREEMENT
14 25. Defendant agrees that if defendant, at any time after
15 the signature of this agreement and execution of all required
16 certifications by defendant, defendant's counsel, and an
17 Assistant United States Attorney, knowingly violates or fails to
18 perform any of defendant's obligations under this agreement ( ~ a
19 breach"), the USAO may declare this agreement breached. For
20 example, if defendant knowingly, in an interview, before a grand
21 jury, or at trial, falsely accuses another person of criminal
22 conduct or falsely minimizes defendant's own role, or the role of
23 another, in criminal conduct, defendant will have breached this
24 agreement. All of defendant's obligations are material, a single
25 breach of this agreement is sufficient for the USAO to declare a
26 breach, and defendant shall not be deemed to have cured a breach
27 without the express agreement of the USAO in writing. If the
28
19
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 20 of 25 Page ID #:24
1 USAO declares this agreement breached, and the Court finds such a
2 breach to have occurred, then:
3 a) If defendant has previously entered a guilty plea
4 pursuant to this agreement, defendant will not be able to
5 withdraw the guilty plea.
6 b) The USAO will be relieved of all its obligations
7 under this agreement; in particular, the USAO: (i) will no longer
8 be bound by any agreements concerning sentencing and will be free
9 to seek any sentence up to the statutory maximum for the crime to
10 which defendant has pleaded guilty; and (ii) will no longer be
11 bound by any agreement regarding the use of Cooperation
12 Information and will be free to use any Cooperation Information
13 in any way in any investigation, criminal prosecution, or civil,
14 administrative, or regulatory action.
15 c) The USAO will be free to criminally prosecute
16 defendant for false statement, obstruction of justice, and
17 perjury based on any knowingly false or misleading statement by
18 defendant.
19 d) In any investigation, criminal prosecution, or
20 civil, administrative, or regulatory action: (i) defendant will
21 not assert, and hereby waives and gives up, any claim that any
22 Cooperation Information was obtained in violation of the Fifth
23 Amendment privilege against compelled self-incrimination; and
24 (ii) defendant agrees that any Cooperation Information and any
25 Plea Information, as well as any evidence derived from any
26 Cooperation Information or any Plea Information, shall be
27 admissible against defendant, and defendant will not assert, and
28 hereby waives and gives up, any claim under the United States
20
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 21 of 25 Page ID #:25
1 Constitution, any statute, Rule 410 of the Federal Rules of
2 Evidence, Rule 11(f) of the Federal Rules of Criminal Procedure,
3 or any other federal rule, that any Cooperation Information, any
4 Plea Information, or any evidence derived from any Cooperation
5 Information or any Plea Information should be suppressed or is
6 inadmissible.
7 COURT AND PROBATION OFFICE NOT PARTIES
8 26. Defendant understands that the Court and the United
9 States Probation Office are not parties to this agreement and
10 need not accept any of the USAO's sentencing recommendations or
11 the parties' agreements to facts or sentencing factors.
12 27. Defendant understands that both defendant and the USAO
13 are free to: (a) supplement the facts by supplying relevant
14 information to the United States Probation Office and the Court,
15 (b) correct any and all factual misstatements relating to the
16 Court's Sentencing Guidelines calculations, and (c) argue on
17 appeal and collateral review that the Court's Sentencing
18 Guidelines calculations are not error, although each party agrees
19 to maintain its view that the calculations in paragraph 16 are
20 consistent with the facts of this case. While this paragraph
21 permits both the USAO and defendant to submit full and complete
22 factual information to the United States Probation Office and the
23 Court, even if that factual information may be viewed as
24 inconsistent with the facts agreed to in this agreement, this
25 paragraph does not affect defendant's and the USAO's obligations
26 not to contest the facts agreed to in this agreement.
27
28
21
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 22 of 25 Page ID #:26
1 26. Defendant understands that even if the Court ignores
2 any sentencing recommendation, finds facts or reaches conclusions
3 different from those agreed to, andlor imposes any sentence up to
4 the maximum established by statute, defendant cannot, for that
5 reason, withdraw defendant's guilty plea, and defendant will
6 remain bound to fulfill all defendant's obligations under this
7 agreement. Defendant understands that no one -- not the
8 prosecutor, defendant's attorney, or the Court -- can make a
9 binding prediction or promise regarding the sentence defendant
10 will receive, except that it will be within the statutory
11 maximum.
12 NO ADDITIONAL AGREEMENTS
13 27. Defendant understands that, except as set forth herein,
14 there are no promises, understandings, or agreements between the
15 USAO and defendant or defendant's attorney, and that no
16 additional promise, understanding, or agreement may be entered
17 into unless in a writing signed by all parties or on the record
18 in court.
19 II
20 II
21 II
22 II
23 II
24 II
25 II
26 II
27 II
28 II
22
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 23 of 25 Page ID #:27
1 PLEA AGREEMENT PART OF THE GUILTY PLEA HEARING
2 28. The parties agree that this agreement will be
3 consldered part of the record of defendant's guilty plea hearing
4 as if the entire agreement had been read into the record of the
5 proceeding.
6 AGREED AND ACCEPTED
7 OFFICE
OF CALIFORNIA
9
10
11
12
13
14
15
16
17
AM AN
18 Attorney fo_ Defendant
Edward Stanton
19
20
21
22
23
24
25
26
27
28
3 . ~ : a · \ \
Date
Date
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 24 of 25 Page ID #:28
1 CERTIFICATION OF DEFENDANT
2 I have read this agreement in its entirety. I have had
3 enough time to review and consider this agreement, and I have
4 carefully and thoroughly discussed every part of it with my
5 attorney. I understand the terms of this agreement, and I
6 voluntarily agree to those terms. I have discussed the evidence
7 with my attorney, and my attorney has advised me of my rights, of
8 possible pretrial motions that might be filed, of possible
9 defenses that might be asserted either prior to or at trial, of
10 the sentencing factors set forth in 18 U.S.C. § 3553(a), of
11 relevant Sentencing Guidelines provisions, and of the
12 consequences of entering into this agreement. No promises,
13 inducements, or representations of any kind have been made to me
14 other than those contained in this agreement. No one has
15 threatened or forced me in any way to enter into this agreement.
16 I am satisfled with the representation of my attorney in this
3 . ~ . \ \
Date
19
21
17 matter, and I am pleading guilty because I am guilty of the
18 advantage of the promises set forth in
20
22
23
24
2 ~
26
27
28
24
Case 2:11-cr-00285-UA Document 3 Filed 04/05/11 Page 25 of 25 Page ID #:29
1 CERTIFICATION OF DEFENDANT'S ATTORNEY
2 I am Edward Stanton's attorney. I have carefully and
3 thoroughly discussed every part of this agreement with my client.
4 Further, I have fully advised my client of his rights, of
5 possible pretrial motions that might be filed, of possible
6 defenses that might be asserted either prior to or at trial, of
7 the sentencing factors set forth in 18 U.S.C. § 3553(a), of
8 relevant Sentencing Guidelines provisions, and of the
9 consequences of entering into this agreement. To my knowledge:
10 no promises, inducements, or representations of any kind have
11 been made to my client other than those contained in this
12 agreement; no one has threatened or forced my client in any way
13 to enter into this agreement; my client's decision to enter into
14 this agreement is an informed and voluntary one; and the factual
15 basis set forth in this agreement is sufficient to support my
Date
18
16 uilty plea pursuant to this agreement.
AMYF
19 Attorney for efendant
Edward Stanton
17
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