Source: http://www.justice.gov/atr/cases/f204600/204672.htm
Timestamp: 2014-07-29 06:44:49
Document Index: 24311494

Matched Legal Cases: ['§ 1341', '§ 1341', '§ 1341', '§ 3571', '§ 3571', '§ 8', '§ 3013', '§ 8', '§ 3561', '§ 3612', '§ 3013', '§ 8', '§ 1001', '§ 1503', '§ 401', '§ 1503', '§ 1001', '§ 1503']

Plea Agreement : U.S. v. Sturgis Iron & Metal Co., Inc.
v. STURGIS IRON & METAL CO., INC., Defendant.
| Filed:	May 27, 2004
Criminal No. 3:04CR0054
Judge:	Allen Sharp
Violation: 18 U.S.C. § 1341
The United States of America and STURGIS IRON & METAL CO., INC. ("Defendant"),
a corporation organized and existing under the laws of Michigan, hereby enter into the following
(a) to be represented by an attorney; (b) to be charged by Indictment; (c) to plead not guilty to any criminal charge brought against it; (d) to have a trial by jury, at which it would be presumed not guilty of the
offense beyond a reasonable doubt for it to be found guilty; (e) to confront and cross-examine witnesses against it and to subpoena
witnesses in its defense at trial; (f) to appeal its conviction if it is found guilty at trial; and (g) to appeal the imposition of sentence against it. AGREEMENT TO PLEAD GUILTY
2.	The Defendant waives the rights set out in Paragraph 1(b)-(g) above, including all
jurisdictional defenses to the prosecution of this case, and agrees voluntarily to consent to the
jurisdiction of the United States to prosecute this case against it in the United States District
Court for the Northern District of Indiana. Further, pursuant to Fed. R. Crim. P. 7(b), the
Defendant will waive indictment and plead guilty at arraignment to a one-count Information to be
filed in the United States District Court for the Northern District of Indiana. The Information
will charge that beginning in or around January 1995 and continuing through in or around
December 2000, the Defendant, for the purpose of executing and carrying out a scheme and
artifice to defraud, did place in authorized depositories for mail matter to be sent and delivered
by the Postal Service, from South Bend, Indiana, in the Northern District of Indiana, and other
places, in violation of 18 U.S.C. § 1341. 3.	The Defendant, pursuant to the terms of this Plea Agreement, will:
(a) Plead guilty to the criminal charge described in Paragraph 2 above and will make a factual admission of guilt to the Court in accordance with Fed. R. Crim. P. 11, as
set forth in Paragraph 4 below. (b) The Defendant understands that the offenses to which it is pleading guilty
fall under the Guidelines promulgated by the United States Sentencing Commission
under Title 28, United States Code, Section 994. The Defendant is aware that its sentence
will be determined in accordance with the United States Sentencing Guidelines and this
plea agreement. The Defendant agrees that the Court has jurisdiction and authority to
impose any sentence within the statutory maximum set for its offense as set forth below
in paragraphs 5 and 6 of this plea agreement. With that understanding, the Defendant
expressly waives its right to appeal its sentence on any ground, including any appeal right
conferred by Title 18, United States Code, Section 3742. The Defendant also agrees not
to contest its sentence or the manner in which it was determined on any ground in any
post-conviction proceeding, including but not limited to, a proceeding under Title 28,
United States Code, Section 2255. Nothing in this paragraph, however, shall act as a bar
to the Defendant perfecting any legal remedies it may otherwise have on appeal or
collateral attack respecting claims of ineffective assistance of counsel or prosecutorial
misconduct. (c) The Defendant will waive all rights, whether asserted directly or through a representative, to request or receive from the United States any further records, reports, or
documents pertaining to the investigation or prosecution of this matter. This waiver
includes, but is not limited to, rights conferred by the Freedom of Information Act and the
Privacy Act of 1974. Further, the Defendant acknowledges that neither has it received
discovery, nor was discovery required by law. FACTUAL BASIS FOR OFFENSE CHARGED
(a) For purposes of this Plea Agreement, the "relevant period" is that period
beginning in or around January 1995 and continuing through in or around December
2000. During the relevant period, the Defendant was a corporation organized and
existing under the laws of Michigan. The Defendant has its principal place of business in
Sturgis, Michigan, but also operated a scrap metal yard in South Bend, Indiana. During
the relevant period, the Defendant acted as a scrap metal dealer, purchasing, sorting,
processing and selling ferrous and nonferrous scrap metal in the United States and
elsewhere. Scrap metal is a by-product of the industrial manufacturing process or is
recycled from obsolete goods. (b) During the relevant period, certain companies in Northern Indiana and
Southern Michigan produced scrap metal and sold it to the Defendant. (c) During the relevant period, the Defendant through its representatives
devised and intended to devise a scheme and artifice to defraud nine of these scrap metal
suppliers of money. (d) During the relevant period, it was part of the scheme and artifice to
defraud that the Defendant would collect the scrap metal from the companies, and
transport it to locations in Indiana and Michigan. The Defendant would then accurately
weigh the scrap and create a legitimate scale ticket. Later, representatives of the
Defendant would create a false scale ticket, similar in all respects to the legitimate scale
ticket, but the recorded weight was less than the actual weight. The representatives
would then destroy the legitimate ticket to conceal the true weights and mail, via the
Postal Service, the false scale ticket, an invoice reflecting the data from false scale ticket,
and a check calculated using the data from the false scale ticket. Paying the scrap metal
suppliers based on the data from the false scale tickets deprived the suppliers of the full
value of their scrap metal. (e) Beginning in or around January 1995 and continuing through in or around
December 2000, the Defendant placed in authorized depositories for mail matter false
scale tickets, invoices based on the false scale tickets and checks based on the false scale
tickets, to be sent and delivered by the Postal Service, from South Bend, Indiana, in the
Northern District of Indiana and other places, to various suppliers of scrap metal. By
creating and mailing the false scale tickets and the invoices and checks based on the false
tickets, the Defendant was able to deprive its suppliers of scrap metal of the full value of
that scrap metal. POSSIBLE MAXIMUM SENTENCE
against it upon conviction for a violation of 18 U.S.C. § 1341 is the greatest of:
(a) $500,000 (18 U.S.C. § 3571(c)(3)); (b) twice the gross pecuniary gain the conspirators derived from the crime (18
conspirators (18 U.S.C. § 3571(c) and (d)). 6.	In addition, the Defendant understands that: (a) pursuant to § 8B1.1 of the United States Sentencing Guidelines
("U.S.S.G."), the Court shall order it to pay restitution to the victims of the offense; (b) pursuant to 18 U.S.C. § 3013(a)(2)(B) and U.S.S.G. § 8E1.1, the Court is
required to order the Defendant to pay a $400 special assessment upon conviction for the
charged crime; and (c) pursuant to 18 U.S.C. § 3561(c)(1), the Court may impose a term of
7.	Sentencing for the offense to be charged will be conducted pursuant to the 2000
U.S.S.G. Manual which was in effect on the last day of the offense.
$206,000, half ($103,000) to be payable in full before the fifteenth (15th) day after the date of
judgment. The other half ($103,000), plus interest as calculated by 18 U.S.C. § 3612(f), to be
payable on the one-year anniversary of the due date of first half of the payment. The United
States and the Defendant also agree that they will recommend, as the appropriate disposition of
this case, that the Court impose a sentence requiring the Defendant to pay full restitution to all
the victims of its crime. The parties have also agreed that they will recommend to the Court that
the victims of the Defendant (Pirod, Garphyttan Wire and Centennial Steel) who were previously
compensated in a civil settlement for the behavior that is subject of this plea agreement have
already received full restitution. The parties have stipulated and agree to recommend to the
Court the additional victims are owed, collectively, $59,509.35.
(a) The Defendant understands that the Court will order it to pay a $400
special assessment, pursuant to 18 U.S.C. § 3013(a)(2)(B) and U.S.S.G. § 8E1.1, in
addition to any fine imposed. (b) Neither party will recommend a term of probation, but the Defendant understands that the Court is free to impose a term of probation. 9.	Subject to the ongoing, full, and truthful cooperation of the Defendant described
(a) If the Court does not accept the recommended sentence, the United States and the Defendant agree that this Plea Agreement, except for Paragraph 10(b) below,
shall be rendered void. Neither party may withdraw from the plea agreement based on
the imposition of a term of probation. (b) If the Court does not accept the recommended sentence, the Defendant will be free to withdraw its guilty plea (Fed. R. Crim. P. 11(c)(5)). If the Defendant
proceeding, except as otherwise provided in Fed. R. Crim. P. 11(f). In addition, the
greater. 11.	The Defendant shall give notice of its conviction and sentence to all the victims of the offense as specified in the presentence report. The form of the notice shall be approved by
the U.S. Probation Officer and the Court. The Defendant shall bear the costs associated with the
prosecution of this case, the conduct of the current federal investigation of shortweighing and
related criminal laws involving the purchase or sale of scrap metal in the United States, any other
federal investigation resulting therefrom, and any litigation or other proceedings arising or
resulting from any such investigation to which the United States is a party ("Federal
(a) producing to the United States all documents, information, and other
requested by the United States in connection with any Federal Proceeding; and (b) using its best efforts to secure the ongoing, full, and truthful cooperation, as defined in Paragraph 13 of this Plea Agreement, of the current directors,
officers, and employees of the Defendant as may be requested by the United States,
including making these persons available, at the Defendant's expense, for interviews and
(a) producing all documents, including claimed personal documents, and other
materials, requested by attorneys and agents of the United States; (b) making himself or herself available for interviews, not at the expense of
the United States, upon the request of attorneys and agents of the United States; (c) responding fully and truthfully to all inquiries of the United States in
statements (18 U.S.C. § 1001) and obstruction of justice (18 U.S.C. § 1503); (d) otherwise voluntarily providing the United States with any material or
information not requested in (a) - (c) of this paragraph that he or she may have that is
related to any Federal Proceeding; (e) when called upon to do so by the United States in connection with any
Federal Proceeding, testifying in grand jury, trial, and other judicial proceedings fully,
contempt (18 U.S.C. §§ 401-402), and obstruction of justice (18 U.S.C. § 1503); and (f) agreeing that, if the agreement not to prosecute him or her in this Plea
Plea Agreement that was undertaken in furtherance of a scheme or artifice to defraud by
shortweighing scrap metal in Indiana and Michigan. The nonprosecution terms of this paragraph
do not apply to civil matters of any kind; to any violation of the federal antitrust, tax or securities
laws; or to any crime of violence.
(a) Upon the Court's acceptance of the guilty plea called for by this Plea
against any current director, officer, or employee of the Defendant for any act or offense
committed before the date of this Plea Agreement and while that person was acting as a
director, officer, or employee of the Defendant that was undertaken in furtherance of a
scheme or artifice to defraud by shortweighing scrap metal in Indiana and Michigan
("Relevant Offense"); (b) Should the United States determine that any current director, officer, or
employee of the Defendant may have information relevant to any Federal Proceeding, the
United States may request that person's cooperation under the terms of this Plea
Agreement by written request delivered to counsel for the individual (with a copy to the
undersigned counsel for the Defendant) or, if the individual is not known by the United
States to be represented, to the undersigned counsel for the Defendant; (c) If any person requested to provide cooperation under Paragraph 15(b) fails
Agreement as they pertain solely to that person, and the agreement not to prosecute that
person granted in this Plea Agreement, shall be rendered void; (d) Except as provided in Paragraph 15(e), information provided by a person
(18 U.S.C. §§ 1001, 1623), or obstruction of justice (18 U.S.C. § 1503); (e) If any person who provides information to the United States under this
shall be rendered void; (f) The nonprosecution terms of this paragraph do not apply to civil matters of
any kind, to any violation of the federal antitrust, tax or securities laws, or to any crime of
violence; and; (g) Documents provided under Paragraphs 12(a) and 13(a) shall be deemed
responsive to outstanding grand jury subpoenas issued to the Defendant. 16.	The Defendant understands that it may be subject to administrative action by
17.	The Defendant has been represented by counsel and is fully satisfied that its
18.	The Defendant's decision to enter into this Plea Agreement and to tender a plea of
or representations other than the representations contained in this Plea Agreement, the attached
letter from Western District of Michigan Assistant United States Attorney Mark Courtade, and
the Sturgis Cooperation Agreement, which is filed separately with the Court. The United States
reject the recommendations contained within this Plea Agreement. The Defendant agrees to
waive any objection it might have as to venue due to the fact that some of the mailings were
made from outside the Northern District of Indiana.
19.	The Defendant agrees that, should the United States determine in good faith,
the Defendant in writing by personal or overnight delivery or facsimile transmission and may
also notify counsel by telephone of its intention to void any of its obligations under this Plea
limited to, the substantive offenses relating to the investigation resulting in this Plea Agreement. The Defendant agrees that, in the event that the United States is released from its obligations
offense will be tolled for the period between the date of the signing of this Plea Agreement and
under this Plea Agreement. 20.	The Defendant understands and agrees that in any further prosecution of it resulting from the release of the United States from its obligations under this Plea Agreement,
because of the Defendant's violation of the Plea Agreement, any documents, statements,
information, testimony, or evidence provided by it, or current directors, officers, or employees of
it to attorneys or agents of the United States, federal grand juries, or courts, and any leads derived
therefrom, may be used against it in any such further prosecution. In addition, the Defendant
unconditionally waives its right to challenge the use of such evidence in any such further
prosecution, notwithstanding the protections of Fed. R. Crim. P. 11(f) and Fed. R. Evid. 410.
21.	This Plea Agreement, the attached letter from Western District of Michigan
Assistant United States Attorney Mark Courtade (Ex. 1), and the Sturgis Cooperation Agreement,
which is filed separately with the Court (Ex. 2), constitute the entire agreement between the
United States and the Defendant concerning the disposition of the criminal charge in this case. This Plea Agreement cannot be modified except in writing, signed by the United States and the
22.	The undersigned is authorized to enter this Plea Agreement on behalf of the
and incorporated by reference in, this Plea Agreement. 23.	The undersigned attorneys for the United States have been authorized by the Attorney General of the United States to enter this Plea Agreement on behalf of the United
24.	A facsimile signature shall be deemed an original signature for the purpose of
Agreed to and signed this 14th day of May 2004. _______________/s/________________ Ralph Levin
Sturgis Iron & Metal Co., Inc. _______________/s/________________ Jonathan Feld, Esq.
Karl Barnickol, Esq.
Counsel for Sturgis Iron & Metal Co., Inc.	_______________/s/________________
[14831  IA]
[24013700  TX] Attorneys, Antitrust Division