Thomas Price 

Assistant Federal Defender 

101 SW Main Street, Suite 1700 

Portland, Oregon 97204 

Thomas Price@fd.org 

U.S. Department of Justice 

Billy J. Williams 

United Stales Altomey 

District of Oregon 

1000 SW Third Avenue, Suite 600 

Portland, OR 97204-2902 

February 5, 2016 

Re: United States vs. Darren Bottinelli 3; /t,~ CfZ~ o/Jv'ltf ~JD~ I 

Preindictment Plea Agreement Letter 

Dear Counsel: 

(503) 727-1000 

Fax (503) 727-1117 

Per our discussions, this letter is a preindictment plea offer for your client, Darren 

Bottinelli. This plea offer expires on February 29, 2016. Also enclosed is the associated 

Felony Information and Waiver of Presentment. The Felony Information will be filed after 

acceptacc of the agreement. The terms are as follows: 

I. 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 plead guilty to Count One of the Information in which 

defendant is charged with theft in connetion with health care in violation of 18 U.S.C. § 669. 

3. Penalties: The maximum sentence for Count One is ten (10) years of imprisonment, a 

$250,000 fine, three (3) years of supervised release, and a $100 fee assessment. Defendant agrees 

to pay the fee assessments by the time of entry of guilty plea or to explain to the Court why this 

cannot be done. 

4. Dismissal/No Prosecution: The USAO fmther agrees not to bring additional charges 

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

the time of this agreement. 

5. 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. 

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Thomas Price 

Bottinelli Plea Letter 

Page 2 

6. Elements: In order for the defendant to be found guilty of Count 1, Theft in 

Connection with Health Care, in violation of 18 U.S.C. § 669, the government must prove the 

following elements beyond a reasonable doubt: (1) the defendant embezzled, stole, or conve1ted 

assets belonging to the Axis FlexAccount Plan ("the Plan"), a Health Reimbursement Account, (2) 

the Plan was a "health care benefit program" as defined in 18 U.S.C. § 24(b), (3) the defendant 

acted knowingly and willfully, (4) the amount was greater than $100, and (4) venue lies within the 

District of Oregon. 

7. Admissions: Defendant admits each and every allegation alleged in the Felony 

Information, which is provided with this plea letter and incorporated as if set forth herein. 

8. Relevant Conduct: The parties agree that under U.S.S.G. § 2Bl.l(a), the base 

offense level is six ( 6), and that the offense level should be increased by sixteen (16) under 

U.S.S.G. § 2Bl. l(b)(l) (I) because the loss exceeds $1,500,000. Defendant 

acknow.ledges and agrees that the loss is ,$3,191_,~52:66 a12,~ he will no~ contest loss at 1

tf? 

sentencmg. :31 \):Sh1 D3<t",u..> ~ 3,0<\3/11<6 

The parties agree that an increase of two (2) levels under U.S.S.G. § 

2Bl.l(a)(2)(A)(i) applies because the offense involved 10 or more victims. The pmties 

also agree that an increase of two (2) levels under U.S.S.G. § 3B 1.3 applies because the 

offense involved theft or embezzlement from an employee welfare benefit plan and the 

defendant was a fiduciary of the benefit plan. 

The government believes that this results in an offense level of twenty-six (26). 

The defendant's criminal history category will be determined after the preparation of a 

Pre-Sentence Report. The parties make no agreements about the defendant's criminal 

history category. 

9. Acceptance of Responsibility: Defendant must demonstrate to the Comt that defendant 

fully admits and accepts responsibility under U.S.S.G. § 3El. I for defendant's unlawful conduct 

in this case. If defendant does so, the USAO will recommend a three-level reduction in 

defendant's offense level (two levels if defendant's offense level is less than 16). The USAO 

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

commits arty criminal offense, obstrncts or attempts to obstruct justice as explained in U.S.S.G. 

§ 3Cl.1, or acts inconsistently with acceptance of responsibility as explained in U.S.S.G. § 3El .1. 

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

range as long as defendant demonstrates an acceptance of responsibility as explained above. 

11. Departures, Adjustments, or Variances: The USAO agrees not to seek any upward 

departures, adjustments, or variances to the advisory sentencing guidelines range, or to seek a 

sentence in excess of that range, except as specified in this agreement. Defendant reserves the 

right to argue for any sentence defendant feels appropriate under the factors set forth in 18 U.S.C. 

§ 3553, and the USAO reserves the right to oppose any sentence defendant argues for under 18 

U.S.C. § 3553. Defendant further agrees that defendant will provide the government with notice 

Case 3:16-cr-00094-JO Document 10 Filed 03/17/16 Page 2 of 6
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Bottinelli Plea Letter 

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of: (1) the factual basis for any such sentence; (2) any evidence defendant intends to introduce or 

rely upon at the sentencing hearing; and (3) any witnesses, including expert witnesses, defendant 

intends to call or rely upon at the sentencing hearing. Such notice must be provided to the 

government no later than the Wednesday prior to the week during which the sentencing hearing is 

scheduled. Defendant agrees that if defendant fails to comply with this notice requirement, 

defendant will not oppose a government motion for a postponement of the sentencing hearing. 

12. Restitution: Defendant understands that the Comi, as provided by 18 U.S.C. §§ 3663 and 

3664, will order restitution to each victim in the full amount of each victim's losses as determined 

by the Comi, and without consideration of the economic circumstances of the defendant. 

Defendant agrees to restition in the amount of~~5r,419". Defendant further agrees that this 

restitution amount is the sum of the losses to apj3ni1ltlfi~tefy'J,877 separate AXIS employee plan 

participants. Defendant understands and agrees that the Comi will order defendant to pay 

restitution for all losses caused by defendant's conduct, regardless of whether counts of the 

indictment or information dealing with such losses will be dismissed as part of this plea agreement. 

13. Financial Statement: Defendant agrees to truthfully complete a financial statement form 

provided by the United States Attorney's Office, Financial Litigation Unit. Defendant shall date 

said form and sign it under penalty ofpe1jury, thereby acknowledging that defendant's financial 

statement fully and completely discloses defendant's financial condition, and fully and completely 

discloses all assets owned or held directly or indirectly, individually or jointly by defendant, or in 

which defendant has any legal interest, regardless of title, including any interest held or owned 

under any other name, including trusts, pminerships or corporations, as of the date the financial 

statement is signed. 

Defendant shall update the financial statement with any material changes to the defendant's 

financial condition. Defendant shall provide his signed and dated financial statement within 30 

days of defendant's signature on this plea agreement and any updates within seven days of the 

event changing defendant's financial condition. 

Defendant understands and agrees that defendant's financial statement will be used for the 

collection of any fine or restitution ordered by the Court, and for the identification of property 

subject to forfeiture. The pmiies agree that defendant's failure to timely and accurately complete 

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

remedy authorized by law, constitute defendant's failure to accept responsibility under U.S.S.G 

§3E1.1. 

14. Transfer of Assets: Financial disclosures by defendant shall also identify all assets held 

individually or jointly, directly or indirectly, valued at more than $1,000 which have been 

transferred to third pmiies since the date which is 60 days prior to the date of indictment or 

information, including the location of the assets and the identity of the third pmiies holding such 

assets, including third party trusts, partnerships and/or corporations. For transfers in excess of 

$50,000, defendant agrees to identify all such transfers of assets held individually or jointly, 

Case 3:16-cr-00094-JO Document 10 Filed 03/17/16 Page 3 of 6
Thomas Price 

Bottinelli Plea Letter 

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directly or indirectly, which have occurred since the date which is one year prior to the date of 

indictment or information. 

Defendant agrees that defendant will notify the Financial Litigation Unit of the United States 

Attorney's Office before defendant transfers any interest in prope1iy with a value exceeding 

$1,000 owned directly or indirectly, individually or jointly, by defendant, including any interest 

held or owned under any other name, including trusts, partnerships and/or corporations. 

15. Examination and Credit Reports: Defendant expressly authorizes the Financial 

Litigation Unit of the United States Attorney's Office to obtain credit reports as the Unit, in its 

discretion deems necessary, on defendant to verify the validity to the financial information 

provided. Such authorization shall be effective on the elate this agreement is signed by defendant. 

Additionally, the defendant agrees to submit to examination under oath, and/or a polygraph 

examination by an examiner selected by the U.S. Attorney's office, on the issue of the defendants 

financial disclosures and assets. 

16. Waivers and Releases: Upon filing of this plea agreement, defendant agrees to provide 

to the United States Attorney's office signed privacy waivers, consents and releases allowing the 

Financial Litigation Unit of the United States Attorney's Office access to any and all records to 

include but not limited to income tax returns and tax records, bank accounts, credit cards, 

insurance and all investment or retirement accounts. 

17. Probation and Pretrial Sen'ices Information: By this agreement, defendant authorizes 

the United States Attorney's Office to inspect and copy all financial documents and information 

provided by the defendant to the United States Probation Office, and United States Pretrial 

Services, including any financial affidavit or financial statement completed by defendant. 

18. Life of Agreement: Defendant understands and agrees that the financial reporting 

obligation agreed to herein will be in effect through any period of probation or supervised release, 

and shall continue until such time as any fine or restitution ordered by the Comi is paid in full. 

19. No Limitation on Collections: Defendant agrees that ifthe Court imposes a schedule of 

payments, defendant understands that the schedule of payments is merely a minimum schedule of 

payments and not the only method, nor a limitation on the methods, available to the United States 

to enforce the judgment. 

20. 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: (I) the sentence imposed exceeds the statutory maximum, or (2) the Court 

at1'ives at an advisory sentencing guideline range by applying an upward depmiure under the 

provisions of Guidelines Chapters 4 or SK, or (3) the Comi 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 

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Thomas Price 

Bottinelli Plea Letter 

Page 5 

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). 

21. 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 l l(c)(l)(B) of 

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

this plea agreement if the Court does not follow the agreements or recommendations of the pmiies. 

22. 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 pmiies reserve all other rights to make sentencing recommendations and to respond to motions 

and arguments by the opposing party. 

23. 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. 

24. 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 

pmiies listed below or confirmed on the record before the Comi. If defendant accepts this offer, 

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

25. Deadline: The USAO may revoke this plea at any time prior to entry of defendant's 

guilty plea, and it expires, if not accepted, by February 29, 2016, at 5:00 p.m. 

Sincerely, 

BILLY J. WILLIAMS 

United States Attorney 

Assistant United States Attorney 

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Thomas Price 

Bottinelli Plea Letter 

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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 an~uilty. ~ . 

iJ~q /10 //v~ fJ,)/l·~ Ddte 1 -D-A~RRE--N-B_O_TT_I_N_E_L_LI _______ _ 

Defendant 

I represent the defendant as legal counsel. I have carefully review>"Y- Ywith defendant. To my knowledge, defendant's decisions to..,,...,.-,,.. 

guilty are informed and voluntary ones. 

~/& 

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