Source: http://www.justice.gov/atr/cases/f209800/209823.htm
Timestamp: 2014-08-23 15:35:47
Document Index: 641939830

Matched Legal Cases: ['§ 371', '§ 3742', '§ 2241', '§ 3742', '§ 3142', '§ 371', '§ 371', '§ 3571', '§ 3571', '§ 3571', '§ 3559', '§ 3583', '§ 5', '§ 5', '§3663', '§ 3013', '§ 3553', '§ 3553', '§ 5', '§ 1001', '§ 1503', '§ 1621', '§ 1623', '§ 401', '§ 1503']

Plea Agreement : U.S. v. Patrick Joseph Crowe III This document is available in three
ATLANTA DIVISION UNITED STATES OF AMERICA, v. PATRICK JOSEPH CROWE III, Defendant.
| Criminal No. 1:05-CR-285 Filed 6/29/05 Violation: 18 U.S.C. § 371 PLEA AGREEMENT The United States of America and Patrick Joseph Crowe III ("defendant"), hereby enter into the following Plea Agreement pursuant to Rule 11(c)(1)(B) of the Federal Rules of Criminal Procedure ("Fed. R. Crim. P."): RIGHTS OF DEFENDANT
1. The defendant understands his rights: to be represented by an attorney; to be charged by Indictment; to plead not guilty to any criminal charge brought against him; to have a trial by jury, at which he would be presumed not guilty of the charges and the United States would have to prove every essential element of the charged offenses beyond a reasonable doubt for him to be found guilty; to confront and cross-examine witnesses against him and to subpoena witnesses in his defense at trial; not to be compelled to incriminate himself; to appeal his conviction, if he is found guilty; and to appeal the imposition of sentence against him. AGREEMENT TO PLEAD GUILTY
AND WAIVE CERTAIN RIGHTS 2. The defendant knowingly and voluntarily waives the rights set out in Paragraph 1(b)-(g) above. The defendant also knows that he has, and voluntarily waives, the right to file any appeal, any collateral attack, or any other writ or motion, including but not limited to an appeal under 18 U.S.C. § 3742 or a motion under 28 U.S.C. § 2241 or 2255, that challenges the sentence imposed by the Court if that sentence is consistent with or below the recommended sentence in Paragraph 8 of this Plea Agreement, regardless of how the sentence is determined by the Court. This agreement does not affect the rights or obligations of the United States as set forth in 18 U.S.C. § 3742(b). Pursuant to Fed. R. Crim. P. 7(b), the defendant will waive indictment and plead guilty at arraignment to a two-count Information to be filed in the United States District Court for the Northern District of Georgia. The Information will charge the defendant with participating in two separate conspiracies to (1) defraud Chemical Products Technologies, LLC ("CPT"), and (2) deprive CPT of its intangible right to the honest services of its employees. Each scheme and artifice to defraud was executed by and through the use of the United States mail or a commercial interstate carrier, the first conspiracy (Count One) beginning at least as early as July 2000, and continuing through at least October 10, 2003, and the second conspiracy (Count Two) beginning at least as early as April 2002, and continuing through at least December 3, 2002, all in violation of Title 18, United States Code, Section 371, to commit offenses against the United States, to wit, to violate Title 18, United States Code, Sections 1341 and 1346. 3. The defendant, pursuant to the terms of this Plea Agreement, will plead guilty to the criminal charges 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. The United States agrees that at the arraignment, it will stipulate to the release of the defendant on his personal recognizance, pursuant to 18 U.S.C. § 3142, pending the sentencing hearing in this case. FACTUAL BASIS FOR OFFENSES CHARGED 4. Had this case gone to trial, the United States would have presented evidence sufficient to prove the following facts: COUNT ONE For purposes of this Plea Agreement, the "relevant period" for the conspiracy charged in Count One of the Information is that period beginning at least as early as July 2000 and continuing through at least October 10, 2003. During the relevant period, the defendant was a salesman employed by CPT, an entity organized and existing under the laws of Georgia and with its principal place of business in Cartersville, Georgia. At that time, Co-Conspirator Number One ("CC-1") was employed as the general manager of CPT, and Co-Conspirator Number Two ("CC-2") was the sole owner and operator of an independent trucking company hired to deliver anthraquinone for CPT. During the relevant period, in the Northern District of Georgia and elsewhere, the defendant did unlawfully, willfully, and knowingly participate in a conspiracy with CC-1 and CC-2 to commit offenses against the United States, in violation of Title 18, United States Code, Section 371, to wit, to violate Title 18, United States Code, Sections 1341 and 1346; It was a part and object of said conspiracy that the defendant and CC-1 devised a scheme and artifice to defraud CPT and deprive CPT of its intangible right to the honest services of its employees, by demanding and receiving kickback payments from CC-2 in exchange for ensuring that CC-2 received business from CPT. As a result of the scheme and artifice to defraud, CC-2 overcharged CPT and paid the defendant kickback payments totaling $69,428.27, a portion of which the defendant paid to CC-1. The kickback payments were concealed from CPT and CPT's majority owner, Chemical Products Corporation ("CPC"); The defendant and CC-1 had a fiduciary duty to transact business in the best interest of their employer, CPT, and to act honestly and faithfully in all their dealings with CPT, including a duty to make full and fair disclosure to CPT of any kickbacks they received, or expected to receive, from CC-2 during the course of their employment. The defendant breached his fiduciary duty to CPT by receiving unauthorized kickback payments from CC-2; For the purpose of executing the mail fraud conspiracy, the defendant and his co-conspirators mailed and/or caused to be mailed kickback checks and other documents by means of the United States mail; Acts in furtherance of the conspiracy were carried out within the Northern District of Georgia within five years preceding this Plea Agreement, including, but not limited to: inflated invoices being sent, via United States mail, by CC-2 and delivered to CPT in Cartersville, Georgia; checks being sent, via United States mail, from CPT to CC-2 in payment of the inflated invoices; kickback payments being hand-delivered by the defendant to CC-1 in Cartersville, Georgia; and kickback payments being deposited by CC-1 into Bartow County Bank in Cartersville, Georgia. COUNT TWO For purposes of this Plea Agreement, the "relevant period" for the conspiracy charged in Count Two of the Information is that period beginning at least as early as April 2002 and continuing through at least December 3, 2002. During the relevant period, the defendant was a salesman employed by CPT and CC-1 was employed as the general manager of CPT. At that time, Co-Conspirator Number Three ("CC-3") was the owner of a Nevada corporation in the business of forming corporate entities and providing nominee services to such entities; During the relevant period, in the Northern District of Georgia and elsewhere, the defendant did unlawfully, willfully, and knowingly participate in a conspiracy with CC-1 and CC-3 to commit offenses against the United States, in violation of Title 18, United States Code, Section 371, to wit, to violate Title 18, United States Code, Sections 1341 and 1346; It was a part and object of said conspiracy that the defendant and CC-1 devised a scheme and artifice to defraud CPT and deprive CPT of its intangible right to the honest services of its employees. To execute the scheme and artifice to defraud, the defendant hired CC-3 to act as a nominee for CDFD, Inc. ("CDFD"), a Wyoming corporation owned by the defendant. CC-3 set up a bank account for CDFD. The defendant and CC-1 concealed the defendant's ownership of the company and control over the CDFD account from CPT and CPC; In furtherance of the scheme and artifice to defraud, the defendant and CC-1 misled their employer to believe that CDFD was an escrow agent that would receive all of the funds generated by CPT's glyphosate business, pay CPT's glyphosate suppliers, and disburse the balance to CPT and Zetachem, U.S.A. (CPT's former partner in the glyphosate business). Instead, the defendant ordered CC-3 to make payments to the defendant and CC-1 from the CDFD account for their own personal use. As a result of the scheme and artifice to defraud, the defendant unlawfully received approximately $17,416.59 from the CDFD account, and CC-1 received approximately $39,412.62 from said account. These payments were concealed from CPT and CPC; The defendant and CC-1 had a fiduciary duty to transact business in the best interest of their employer, CPT, and to act honestly and faithfully in all their dealings with CPT, including a duty to make full and fair disclosure to CPT of any personal interest they had in any transaction in which they participated with CC-3 involving CDFD during the course of their employment. The defendant and CC-1 breached their fiduciary duty to CPT by diverting funds, which belonged to CPT's glyphosate business, from the CDFD account for their own personal use; For the purpose of executing the conspiracy, the defendant and his co-conspirators mailed and/or caused to be mailed checks by means of a commercial interstate carrier. At the defendant's instruction, at least twelve checks drawn on the CDFD bank account were sent, via Federal Express, from Nevada to the defendant's home in Chattanooga, Tennessee, for the personal use of the defendant and CC-1; Acts in furtherance of the conspiracy were carried out within the Northern District of Georgia within five years preceding this Plea Agreement, including, but not limited to: checks from the CDFD account payable to CC-1 for his personal use being hand-delivered by the defendant to CC-1 in Cartersville, Georgia; funds received by CC-1 from the conspiracy being deposited into CC-1's Bartow County bank account in Cartersville, Georgia. POSSIBLE MAXIMUM SENTENCE
5. The defendant understands that the statutory maximum penalty which may be imposed against him upon conviction for a violation of 18 U.S.C. § 371 is: a term of imprisonment for five years (18 U.S.C. § 371); a fine in an amount equal to the greatest of: $250,000 (18 U.S.C. § 3571(b)(3)); twice the gross pecuniary gain the conspirators derived from the offense (18 U.S.C. § 3571(d)); or twice the gross pecuniary loss caused to the victims of the crime (18 U.S.C. § 3571(d)); and a term of supervised release of three (3) years following any term of imprisonment. If the defendant violates any condition of supervised release, the defendant could be imprisoned for the entire term of supervised release (18 U.S.C. § 3559(a)(4); 18 U.S.C. § 3583(b)(2) and (e)(3); and United States Sentencing Guidelines ("U.S.S.G.") § 5D1.2(a)(2)). 6. In addition, the defendant understands that: pursuant to U.S.S.G. § 5E1.1, the Court shall order him to pay restitution to the victims of the offense (18 U.S.C. §3663A(c)(1)(A)(ii)); and pursuant to 18 U.S.C. § 3013(a)(2)(A), the Court is required to order the defendant to pay a $100.00 special assessment upon conviction for each charged crime. SENTENCING GUIDELINES
7. The defendant understands that the Sentencing Guidelines are advisory, not mandatory, but that the Court must consider the Guidelines in effect on the day of sentencing, along with the other factors set forth in 18 U.S.C. § 3553(a), in determining and imposing sentence. The defendant understands that the Guidelines determinations will be made by the Court by a preponderance of the evidence standard. The defendant understands that although the Court is not ultimately bound to impose a sentence within the applicable advisory Guidelines range, its sentence must be reasonable based upon consideration of all relevant sentencing factors set forth in 18 U.S.C. § 3553(a). SENTENCING AGREEMENT
8. Pursuant to Fed R. Crim. P. 11(c)(1)(B), the United States agrees that it will recommend, as the appropriate disposition of this case, that the Court impose a sentence within the advisory Guidelines range from Offense Level 13, Zone D, and Criminal History Category I, and a criminal fine within the advisory Guidelines range of $3,000 to $30,000 ("the recommended sentence"). The defendant acknowledges that the United States has advised him that it will recommend to the Court that the appropriate amount of restitution payable to the victim by the defendant is at least $52,130.73. The parties agree that there exists no aggravating or mitigating circumstances of a kind, or to a degree, not adequately taken into consideration by the U.S. Sentencing Commission in formulating the Sentencing Guidelines that should result in a sentence outside the advisory Guidelines range. The parties agree not to seek or support any sentence outside of the advisory Guidelines range nor any Guidelines adjustment for any reason that is not set forth in this Plea Agreement. The parties further agree that the recommended sentence set forth in this plea agreement is reasonable. 9. The United States and the defendant agree that the applicable advisory Guidelines fine and incarceration ranges exceed those ranges contained in the recommended sentence set out in Paragraph 8 above. Subject to the full and continuing cooperation of the defendant, as described in Paragraph 12 of this Plea Agreement, and prior to sentencing in the case, the United States agrees that it will make a motion, pursuant to U.S.S.G. § 5K1.1, for a downward departure from the advisory Guidelines fine and incarceration ranges in this case and will request that the Court impose the recommended sentence set out in Paragraph 8 of this Plea Agreement because of the defendant's substantial assistance in the government's investigation and prosecution of violations of federal criminal law in the anthraquinone and glyphosate industries. 10. Subject to the ongoing, full, and truthful cooperation of the defendant described in Paragraph 12 of this Plea Agreement, and before sentencing of the defendant by the Court, the United States will fully advise the Court and the Probation Office of the fact, manner, and extent of the defendant's cooperation and his commitment to prospective cooperation with the United States' investigation and prosecution of violations of federal criminal laws in the anthraquinone and glyphosate industries, all material facts relating to the defendant's involvement in the offenses charged in the Information, and all other relevant conduct. To enable the Court to have the benefit of all relevant sentencing information, the United States may request, and the defendant will not oppose, that sentencing be postponed until his cooperation is complete. 11. The United States and the defendant understand that the Court retains complete discretion to accept or reject the recommended sentence provided for in Paragraph 8 of this Plea Agreement. The defendant understands that, as provided in Fed. R. Crim. P. 11(c)(3)(B), if the Court does not impose a sentence consistent with the recommendation contained in this Agreement, he nevertheless has no right to withdraw his plea of guilty. DEFENDANT'S COOPERATION
12. The defendant will cooperate fully and truthfully with the United States in the prosecution of this case, the conduct of the current federal investigation of violations of federal antitrust and related criminal laws involving the anthraquinone and glyphosate industries, 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 Proceeding"). The ongoing, full, and truthful cooperation of the defendant shall include, but not be limited to: producing all documents, including claimed personal documents, and other materials, wherever located, in the possession, custody, or control of the defendant, requested by attorneys and agents of the United States; making himself available for interviews, not at the expense of the United States, upon the request of attorneys and agents of the United States; responding fully and truthfully to all inquiries of the United States in connection with any Federal Proceeding, without falsely implicating any person or corporation, or intentionally withholding any information, subject to the penalties of making false statements (18 U.S.C. § 1001) and obstruction of justice (18 U.S.C. § 1503); otherwise voluntarily providing the United States with any material or information, not requested in (a) - (c) of this paragraph, that he may have that is related to any Federal Proceeding; and 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, truthfully, and under oath, subject to the penalties of perjury (18 U.S.C. § 1621), making false statements or declarations in grand jury or court proceedings (18 U.S.C. § 1623), contempt (18 U.S.C. §§ 401 - 402), and obstruction of justice (18 U.S.C. § 1503). GOVERNMENT'S AGREEMENT
13. Subject to the full, truthful, and continuing cooperation of the defendant, as described in Paragraph 12 of this Plea Agreement, and upon the Court's acceptance of the guilty plea called for by this Plea Agreement and the imposition of the recommended sentence, the United States will not bring further criminal charges against the defendant for any act or offense committed before the date of this Plea Agreement about which the defendant has informed the United States that was undertaken in furtherance of a conspiracy to defraud Chemical Products Technologies, LLC ("Relevant Offense"), or any act or offense undertaken in connection with any investigation of such a conspiracy. The nonprosecution terms of this paragraph do not apply to civil matters of any kind, to any violation of the federal tax or securities laws, or to any crime of violence. REPRESENTATION BY COUNSEL 14. The defendant has reviewed all legal and factual aspects of this case with his attorney and is fully satisfied with his attorney's legal representation. The defendant has thoroughly reviewed this Plea Agreement with his attorney and has received satisfactory explanations from his attorney concerning each paragraph of this Plea Agreement and alternatives available to the defendant other than entering into this Plea Agreement. After conferring with his attorney and considering all available alternatives, the defendant has made a knowing and voluntary decision to enter into this Plea Agreement. VOLUNTARY PLEA
15. The defendant's decision to enter into this Plea Agreement and to tender a plea of guilty is freely and voluntarily made and is not the result of force, threats, assurances, promises, or representations other than the representations contained in this Plea Agreement. The United States has made no promises or representations to the defendant as to whether the Court will accept or reject the recommendations contained within this Plea Agreement. VIOLATION OF PLEA AGREEMENT
16. The defendant agrees that, should the United States determine in good faith, during the period that any Federal Proceeding is pending, that the defendant has failed to provide full and truthful cooperation, as described in Paragraph 12 of this Plea Agreement, or has otherwise violated any provision of this Plea Agreement, the United States will notify the defendant or his counsel in writing by personal or overnight delivery or facsimile transmission and may also notify his counsel by telephone of its intention to void any of its obligations under this Plea Agreement (except its obligations under this paragraph), and the defendant shall be subject to prosecution for any federal crime of which the United States has knowledge including, but not 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 under this Plea Agreement and brings criminal charges against the defendant for any Relevant Offense, the statute of limitations period for such offense will be tolled for the period between the date of the signing of this Plea Agreement and six (6) months after the date the United States gave notice of its intent to void its obligations under this Plea Agreement. 17. The defendant understands and agrees that in any further prosecution of him resulting from the release of the United States from its obligations under this Plea Agreement based on the defendant's violation of the Plea Agreement, any documents, statements, information, testimony, or evidence provided by him to attorneys or agents of the United States, federal grand juries, or courts, and any leads derived therefrom, may be used against him in any such further prosecution. In addition, the defendant unconditionally waives his right to challenge the use of such evidence in any such further prosecution, notwithstanding the protections of Fed. R. Evid. 410. ENTIRETY OF AGREEMENT
18. This Plea Agreement constitutes the entire agreement between the United States and the defendant concerning the disposition of the criminal charges in this case. This Plea Agreement cannot be modified except in writing, signed by the United States and the defendant. 19. 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 States. 20. A facsimile signature shall be deemed an original signature for the purpose of executing this Plea Agreement. Multiple signature pages are authorized for the purpose of executing this Plea Agreement. DATED: 6/29/05 Respectfully submitted,
BY:__ /S/ _____________________
PATRICK J. CROWE III
_____ /S/ _____________________
DONALD BESKIN
Counsel for Patrick J. Crowe III BY:__ /S/ _____________________
GLENN D. BAKER Assistant Chief Georgia Bar No. 033450 _____ /S/ _____________________
HOLLY B. STEVENS Georgia Bar No. 093550 _____ /S/ _____________________
DEANA L. TIMBERLAKE-WILEY Member of the Maryland Bar Attorneys U.S. Department of Justice Antitrust Division 75 Spring Street, SW Suite 1176 Atlanta, Georgia 30303 Tel: (404) 331-7100 Fax: (404) 331-7110