Ms. Jessica May 

Arnold Law 

401 East Tenth, Suite 400 

Eugene, OR 97401 

U.S. Department of Justice 

S. Amanda Marshall 

United States Attorney 

District of Oregon 

1000 SW Third Avenue, Ste. 600 

Portland, OR 97204-2902 

July 31, 2014 

Re: United States vs. Daniel Stadelman 

Plea Agreement Letter 

Dear Counsel: 

(503) 727-1000 

Fax: (503) 727-1117 

1. Parties/Scope: This plea agreement is between this United States Attorney's Office 

(USAO) and defendant, and thus does not bind any other federal, state, or local prosecuting, 

administrative, or regulatory authority. This agreement does not apply to any charges other than 

those specifically mentioned herein. 

2. Charges: Defendant agrees to waive indictment and plead guilty to a one-count 

information which charges the crime of Social Security Fraud, in violation of Title 42, United 

States Code, Section 408(a)(4). 

3. Elements: In order for the Defendant to be found guilty, the government must prove the 

following elements beyond a reasonable doubt: 

The defendant: 

(1) Had knowledge of an event affecting the right to receive or to continue to receive 

payments; 

(2) Knowingly concealed or failed to disclose this event to the Social Security 

Administration; 

(3) With the intent to fraudulently secure payment of Social Security Disability benefits in 

an amount greater than was due or when no payment to him was authorized. 

4. Admissions: As part of the plea agreement, Defendant admits the elements of the offense 

and agrees the government could prove the following: 

In or about May 2001, defendant applied for Social Security Disability Insurance (SSDI) 

benefits, claiming to be disabled and unable to work due to a medical condition that left him 

fatigued and unable to work full-time. Defendant's application was initially denied and 

Revised 08/12/09 

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Re: Daniel Stadelman plea offer 

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defendant appealed. Based on defendant's appeal and continued claim of being disabled, 

defendant's application for SSDI benefits was eventually approved in April2004. Because 

defendant's eligibility for SSDI benefits was premised on defendant's apparent inability to return 

to work, defendant was advised by SSA to disclose to SSA any medical improvement or work. 

On April19, 2012, and June 7, 2013, defendant was questioned by SSA about his ability to 

work. Defendant advised he was still unable to work and had not worked since being approved for 

SSDI benefits. In fact, defendant had been either self-employed or working for his family's 

business since he began receiving SSDI benefits. Between April2004 and June 2014, defendant 

continuously concealed from SSA that he had returned to work. 

Because defendant was approved for SSDI benefits, he automatically became eligible for 

Medicare benefits in 2006. If defendant had truthfully disclosed his work to SSA, he would not 

have been eligible to receive Medicare benefits. As a result of defendant's false statements and 

concealments, defendant received $157,631.00 in SSDI benefits and at least $9,526.67 in 

Medicare benefits to which he was not entitled. 

The defendant acted knowingly and willfully and the defendant's actions were within the 

District of Oregon. 

5. Penalties: The maximum sentence is 5 years' imprisonment, a fine of$250,000, no more 

than three years supervised release, and a $100 fee assessment. Defendant agrees to pay the $1 00 

fee assessment by the time of entry of guilty plea or explain to the Court why this cannot be done. 

6. Dismissal/No Prosecution: The USAO agrees to not bring additional charges against 

defendant in the District of Oregon arising out ofthis investigation, known to the USAO at the 

time of this agreement. The USAO also agrees to not bring charges against defendant's wife 

related to her false statements to SSA and the Oregon Department of Human Services (DHS), 

provided defendant's wife signs a DHS Consent Agreement agreeing to the disqualification from 

the Supplemental Nutrition Assistance Program for a period of 12 months. 

7. Sentencing Factors: The parties agree that the Court must first determine the applicable 

advisory guideline range, then determine a reasonable sentence considering that range and the 

factors listed in 18 U.S.C. § 3553(a). Where the parties agree that sentencing factors apply, such 

agreement constitutes sufficient proof to satisfy the applicable evidentiary standard. 

8. Relevant Conduct: The parties agree that defendant's relevant conduct pursuant to 

U.S.S.G. §§ 1B1.3 and 2B1.1 is a loss of more than $120,000 but less than $200,000 for a 10-level 

increase of the Base Offense Level of 6 under § 2B 1.1 (b)( 1 )(F), resulting in an Offense Level of 

16. 

9. Acceptance of Responsibility: Defendant must demonstrate to the Court that he fully 

admits and accepts responsibility under U.S.S.G. § 3E1.1 for his unlawful conduct in this case. If 

defendant does so, the USAO will recommend a three-level reduction in defendant's offense level. 

Revised 08/12/09 

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Re: Daniel Stadelman plea offer 

Page 3 

The USAO reserves the right to change this recommendation if defendant, between plea and 

sentencing, commits any criminal offense, obstructs or attempts to obstruct justice as explained in 

U.S.S.G. § 3C 1.1, or acts inconsistently with acceptance of responsibility as explained in U.S.S.G. 

§3El.l. 

10. Low End Range: The USAO will recommend the low end ofthe applicable guideline 

range, and will not oppose a "split" sentence if applicable under the guidelines, as long as 

defendant demonstrates an acceptance of responsibility and makes the restitution payments as 

described in paragraph 11. 

11. Restitution: Defendant agrees to pay restitution to SSA in the amount of$157 ,631.00, and 

to Medicare in an amount to be determined by sentencing. The parties acknowledge that the 

Medicare loss will be at least $9,526.67, and no more than $20,000.00. Said amounts shall be due 

and payable immediately. If defendant cannot pay restitution in full at sentencing, defendant 

agrees to pay a lump sum of$50,000.00 at least two weeks prior to sentencing, and then monthly 

payments in the amount of$1 ,000.00, until the balance is paid in full. Defendant further agrees that 

the $1,542.67 seized from him on June 10, 2014, shall be applied towards his restitution 

obligation. 

Defendant agrees to fully disclose all assets in which he has any interest or over which 

the Defendant exercises control, directly or indirectly, including those held by a spouse, nominee 

or third party. Defendant agrees to truthfully complete the financial statement form provided 

herein by the earlier of 14 days from defendant's signature on this plea agreement or the date of 

defendant's entry of a guilty plea, sign it under penalty of perjury and provide it to both the 

United States Attorney's Office and the United States Probation Office. Defendant agrees to 

provide updates with any material changes in circumstances, as described in 18 U.S.C. § 

3664(k), which occur prior to sentencing, within seven days of the event giving rise to the 

changed circumstances. The defendant's failure to timely and accurately complete and sign the 

financial statement, and any update thereto, may, in addition to any other penalty or remedy, 

constitute the defendant's failure to accept responsibility under U.S.S.G §3El.l. 

The parties understand and agree that any restitution order issued by the Court will not 

affect or otherwise impact SSA's implementation of its benefits programs, to include SSA's ability 

to withhold future Social Security payments to the defendant, provided such withholding is done in 

accordance with the agency's regulations, its policies and federal law. The parties further 

understand and agree that in the event SSA does withhold any benefit payments otherwise due to 

the defendant, the defendant should receive restitution credit for the amounts withheld from the 

defendant as a result of his fraud which gives rise to this plea agreement. Defendant further 

acknowledges that SSA will be administratively pursuing an overpayment in the approximate 

amount of$195,529.00 which includes the $157,631.00 in this case as well as $37,898.00 in 

benefits the defendant received on behalf of his son when defendant was the son's Representative 

Payee. Defendant agrees to not dispute SSA's overpayment calculation. 

Revised 08/12/09 

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Re: Daniel Stadelman plea offer 

Page4 

12. Additional Departures, Adjustments, or Variances: The USAO will recommend a 

two-level downward adjustment for defendant's early resolution of the offense, and will agree not 

to seek any upward departures, adjustments, or variances to the advisory sentencing guideline 

range, or to seek a sentence in excess of that range, except as specified in this agreement. 

Defendant agrees not to seek any downward departures, adjustments, or variances to the advisory 

sentencing guideline range, or to seek a sentence below that range, except as specified in this 

agreement. 

13. Waiver of Appeal/Post-Conviction Relief: Defendant knowingly and voluntarily 

waives the right to appeal from any aspect of the conviction and sentence on any grounds, except 

for a claim that: (1) the sentence imposed exceeds the statutory maximum, or (2) the Court 

arrives at an advisory sentencing guideline range by applying an upward departure under the 

provisions of Guidelines Chapters 4 or 5K, or (3) the Court exercises its discretion under 18 U.S.C. 

§ 3553(a) to impose a sentence which exceeds the advisory guideline sentencing range. Should 

defendant seek an appeal, despite this waiver, the USAO may take any position on any issue on 

appeal. Defendant also waives the right to file any collateral attack, including a motion under 28 

U.S.C. § 2255, challenging any aspect of the conviction or sentence on any grounds, except on 

grounds of ineffective assistance of counsel, and except as provided in Fed. R. Crim. P. 33 and 18 

U.S.C. § 3582(c)(2). 

14. Court Not Bound: The Court is not bound by the recommendations of the parties or of 

the presentence report (PSR) writer. Because this agreement is made under Rule 11(c)(1)(B) of 

the Federal Rules of Criminal Procedure, defendant may not withdraw any guilty plea or rescind 

this plea agreement ifthe Court does not follow the agreements or recommendations of the parties. 

15. Full Disclosure/Reservation of Rights: The USAO will fully inform the PSR writer and 

the Court of the facts and law related to defendant's case. Except as set forth in this agreement, 

the parties reserve all other rights to make sentencing recommendations and to respond to motions 

and arguments by the opposition. 

16. Breach of Plea Agreement: If defendant breaches the terms of this agreement, or 

commits any new criminal offenses between signing this agreement and sentencing, the USAO is 

relieved of its obligations under this agreement, but defendant may not withdraw any guilty plea. 

17. Memorialization of Agreement: No promises, agreements or conditions other than 

those set forth in this agreement will be effective unless memorialized in writing and signed by all 

parties listed below or confirmed on the record before the Court. If defendant accepts this offer, 

please sign and attach the original of this letter to the Petition to Enter Plea. 

Revised 08/12/09 

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Re: Daniel Stadelman plea offer 

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18. Deadline: This plea offer expires if not accepted by August 15,2014 at 4:30p.m. 

--

Sincerely, 

S. AMANDA MARSHALL 

United States Attorney 

~~~ Helen L. Cooper 

Special Assistant United States Attorney 

I have carefully reviewed every part of this agreement with my attorney. I understand and 

voluntarily agree to its terms. I expressly waive my rights to appeal as outlined in this agreement. 

I wish to plead guilty because, in fact, I am guilty. 

?-1'/-- 20/tf 

Date Daniel Stadelman, efendant 

I represent the defendant as legal counsel. I have carefully reviewed every part of this 

agreement with defendant. To my knowledge, defendant's decisions to make this agreement and 

to plead guilty are informed and voluntary ones. 

~Iff{ Date or Defendant 

Revised 08/12/09 

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