Source: http://www.justice.gov/atr/cases/f268700/268704.htm
Timestamp: 2014-07-30 15:25:02
Document Index: 100337227

Matched Legal Cases: ['§ 1', '§ 1349', '§ 1', '§ 1349', '§ 3', '§ 3', '§ 3', '§ 5', '§ 5', '§ 1', '§ 1', '§ 1349', '§ 3551', '§ 991', '§ 3553', '§ 2', '§ 2', '§ 3', '§ 3', '§ 3553']

Plea and Cooperation Agreement : U.S. v. Richard W. Northcutt
UNITED STATES OF AMERICA, Plaintiff, v. RICHARD W. NORTHCUTT Defendant. )
) No. 2:11- CR -0038 MCE
A. Scope of Agreement: The Information to be filed in this
case charges the defendant, RICHARD W. NORTHCUTT, with one count
of participating in a conspiracy to suppress and restrain
competition by rigging bids to obtain selected real estate offered at San Joaquin County, California public real estate
auctions in the Eastern District of California in unreasonable restraint of interstate trade and commerce, in violation of the
Sherman Act, 15 U.S.C. § 1, and with one count of conspiracy to
commit mail fraud in violation of 18 U.S.C. § 1349. This
document contains the complete Plea and Cooperation Agreement
between the United States Attorney's Office for the Eastern
District of California and the United States Department of
Justice, Antitrust Division (collectively the "government"), and
the defendant regarding this case. This Plea and Cooperation
Agreement is limited to the United States Attorney's Office for
the Eastern District of California and the United states
Department of Justice, Antitrust Division, and cannot bind any
other federal, state, or local prosecuting, administrative, or
B. Court Not a Party: The Court is not a party to this Plea and Cooperation Agreement. Sentencing is a matter solely within the discretion of the Court, the Court is under no obligation to accept any recommendations made by the government, and the Court may in its discretion impose any sentence it deems appropriate, up to and including the statutory maximum stated in this Plea and Cooperation Agreement. If the Court should impose any sentence up to the maximum established by the statute, the defendant cannot, for that reason alone, withdraw his guilty plea, and he will remain bound to fulfill all of the obligations under this Plea and Cooperation Agreement. The defendant understands that neither the government, defense counsel, nor the Court can make a binding prediction or promise regarding the
sentence he will receive.
A. Waiver of Indictment and Guilty Plea: The defendant will waive indictment by grand jury, waive venue, and plead guilty to a two-count Information, substantially in the form attached hereto as Exhibit B, charging him with conspiring to rig
bids in violation of 15 U.S.C. § 1 and conspiracy to commit mail fraud in violation of 18 U.S.C. § 1349. The defendant agrees that he is, in fact, guilty of those charges and that the facts set forth in the Factual Basis attached hereto as Exhibit A are true and accurate.
D. Agreement to Cooperate: The defendant agrees to cooperate fully with the government and any other federal, state,
or local law enforcement agency, as directed by the government. As used in this Agreement, "cooperation" requires the defendant:
(1) to respond truthfully and completely to all questions, whether in interviews, in correspondence, telephone conversations, before a grand jury, or sessions, trials, and other proceedings; (2) to attend all meetings, grand jury
sessions, trials, and other proceedings at which the defendant's
presence is requested by the government or compelled by subpoena
or court order; at which the defendant's presence is requested by the government or compelled by subpoena or court order; (3) to produce voluntarily any and all documents I records, or other tangible evidence requested by the government;
(4) not to participate in any criminal activity while cooperating with the government; and (5) to disclose to the government the existence and status of all money,' property, or assets, of any kind, derived from or acquired as a result of, or used to facilitate the commission of, the defendant's illegal activities or the illegal activities of any conspirators.
If the defendant commits any crimes or if any of the
defendant's statements or testimony prove to be knowingly false,
misleading, or materially incomplete, or if the defendant
otherwise violates this Plea and Cooperation Agreement in any
way, the government will no longer be bound by its
representations to the defendant concerning the limits on
criminal prosecution and sentencing as set forth herein . The
determination whether the defendant has violated the Plea and
cooperation Agreement will be under a preponderance-of-the-evidence standard. If the defendant violates the Plea and
Cooperation Agreement, he shall thereafter be subject to
prosecution for any federal criminal violation of which the
government has knowledge, including but not limited to perjury,
false statements, and obstruction of justice. Because
disclosures pursuant to this Agreement will constitute a waiver
of the Fifth Amendment privilege against compulsory self-
incrimination, any such prosecution may be premised on statements
and/or information provided by the defendant. Moreover, any
prosecutions that are not time-barred by the applicable statute
of limitations as of the date of this Agreement may be commenced
in accordance with this paragraph, notwithstanding the expiration
of the statute of limitations between the signing of this Agreement and the commencement of any such prosecutions. The
defendant agrees to waive all defenses based on the statute of
limitations or delay of prosecution with respect to any
prosecutions that are not time-barred as of the date of this Agreement.
B. Payment of Pine: The defendant agrees to pay a criminal fine of $20,000 if so ordered by the Court. Defendant
understands that the criminal fine ordered by the Court may be based upon the defendant's ability to pay a criminal fine in addition to restitution as agreed upon and set forth in this Plea and Cooperation Agreement and as determined by the United States Probation Office. The government's recommendation with respect to any such criminal fine is set forth in paragraph III. D. of this Plea and Cooperation Agreement.
A. Incarceration Range: The government will recommend that the defendant be sentenced to the bottom of the applicable Guideline range for his offense, as determined by the United States Probation Office. B. Acceptance of Responsibility: The government agrees that
a three-level reduction in defendant's offense level for his full
and clear demonstration of acceptance of responsibility is appropriate under United States Sentencing Guidelines (U.S.S.G.) § 3El.l, will not oppose such a reduction, and will so move under § 3El.l(b) , so long as the defendant pleads guilty, meets with and assists the probation officer in the preparation of the pre-sentence report, is truthful and candid with the probation
officer and the Court, and does not otherwise engage in conduct that constitutes obstruction of justice within the meaning of U.S.S.G. § 3Cl.1, either in the preparation of the pre-sentence report or during the sentencing proceeding.
C. Reduction of Sentence for Cooperation: The government agrees to recommend at the time of sentencing that the defendant's sentence of imprisonment be reduced to reflect his substantial assistance to the government in the investigation and
prosecution of others, pursuant to U.S.S.G. § 5K1.1. The defendant understands that he must comply with paragraph II. D.
of this Plea and Cooperation Agreement. The defendant understands that the government's recommended reduction in his sentence will depend upon the level of assistance the government determines that the defendant has provided. The defendant further understands that a motion pursuant to U.S.S.G. § 5K1.l is only a recommendation and is not binding on the Court.
Other than as set forth above, the government agrees that
10 any incriminating information provided by the defendant during
his cooperation will not be used in determining the applicable
Guideline range in his case, pursuant to U.S.S.G. § 1B1.8.
First, that the defendant knowingly devised or participated
in a conspiracy to defraud or to obtain money or property by
means of materially false pretenses, representations, or promises;
Second, the defendant knew that the scheme was deceptive or
that the pretenses, representations, or promises were false;
Fourth, for the purpose of carrying out the scheme or attempting to do so, the defendant knowingly used and caused to
be used the United States mails or private or commercial carrier in the manner charged.
A. Maximum Penalty: For Count One, the maximum sentence the Court can impose for a violation of 15 U.S.C. § 1 is ten years
incarceration; a fine in an amount equal to the greatest of (1)
$1,000,000; (2) twice the gross pecuniary gain the conspirators
derived from the crime, or (3) twice the gross pecuniary loss caused to the victims of the crime' by the conspirators; a three-year period of supervised release; and a special assessment of $100. For Count Two, the maximum sentence the Court can impose
for a violation of 18 U.S.C. § 1349 is 30 years incarceration; a
fine of $1,000,000; a five-year period of supervised release; and a special assessment of $100.
B. Violations of Supervised Release: The defendant
understands that if he violates a condition of supervised release
at any time during the term of supervised release, the Court may
revoke the term of supervised release and require the defendant to serve tip to two additional years of imprisonment.
A. Statutory Authority: The defendant understands that the
Court must consult the Federal Sentencing Guidelines {as
promulgated by the Sentencing Commission pursuant to the Sentencing Reform Act. of 1984, 18 U.S.C. §§ 3551-3742 and 28 U.S.C. §§ 991-998, and as modified by United States v. Booker and United States v. Fanfan, 543 U.S. 220, 125 S.Ct, 738 (2005) and must take them into account when determining a final sentence. The defendant understands that the court will determine a non-binding and advisory Guideline sentencing range for this case pursuant to the Sentencing Guidelines. The defendant further understands that the Court will consider whether there is a basis for departure from the Guideline sentencing range (either above or below the Guideline sentencing range} because there exists an aggravating or mitigating circumstance of a kind, or to a degree, not adequately taken into consideration by the Sentencing Commission in formulating the Guidelines. The defendant further understands that the Court, after consultation and consideration of the Sentencing Guidelines, must impose a sentence that is reasonable in light of the factors set forth in 18 U.S.C. § 3553 (a).
B. Stipulations Affecting Guidelines Calculations: The
government and the defendant agree that there is no material dispute as to the following Sentencing Guidelines variables and therefore stipulate and agree to the following:
§ 2R1.1(a)
(b) (2) (B)
Volume of Commerce > $10 million
Fine 1 - 5% of $11.7 million
§ 2B1.1(a) (1)
(b) (1) (D)
Loss > $200,000
Aggravating Role in Offense: Because the defendant served as a manager or supervisor with respect to the criminal activity charged, pursuant to § 3B1.1(b), the defendant's offense level is increased by 3 levels.
Total Offense Level: Pursuant to the foregoing stipulations, defendant's total offense level is 22.
Acceptance of Responsibility: Pursuant to § 3E1.1 and as described in more detail in paragraph III(B) above, the defendant's total offense level is decreased by three levels because of his acceptance of responsibility. The Adjusted Total Offense Level is therefore 19.
Criminal History: The parties agree that the defendant's criminal history is to be determined by the United States Probation Office.
Departures or Other Enhancements or Reductions: The parties stipulate and agree that they will not seek or argue
in support of any other specific offense characteristics, Chapter
Three adjustments, departures, or cross-references, other than those contemplated in the foregoing stipulations. Defense counsel may argue for a variance or deviation from the Sentencing Guidelines under 18 U.S.C. § 3553(a). The government reserves its right to oppose such deviation or variance. If either party breaches this provision, the other party shall be relieved of all of its obligations under this Plea and Cooperation Agreement.
A. Waiver of Constitutional Rights: The defendant understands that by pleading guilty he is waiving the following constitutional rights: (a) to plead not guilty and to persist in that plea if already made; (b) to be tried by a jury; (c) to be assisted at trial by an attorney, who would be appointed if necessary; (d) to subpoena witnesses to testify on his behalf; (e) to confront and cross-examine witnesses against him; and
(f) not to be compelled to incriminate himself.
B. Waiver of Appeal and Collateral Attack: The defendant
understands that the law gives him a right to appeal his conviction and sentence. He agrees as part of his plea, however, to give up the right to appeal the conviction and the right to
appeal any aspect of the sentence imposed in this case so long
his sentence is no longer than the top of the Sentencing
Guidelines range determined by the Court, consistent with the
stipulations set forth above about the sentencing Guidelines
If the defendant ever attempts to vacate his plea, dismiss
the underlying charges, or reduce or set aside his sentence on
as any of the counts to .which he is pleading guilty, the government
shall have the right to: (1) prosecute the defendant on any of the counts to which he pleaded guilty; (2) reinstate any counts that may be dismissed pursuant to this Plea and cooperation Agreement; and (3) file any new charges that would otherwise be barred by this Plea and Cooperation Agreement. The decision to pursue any or all of these options is solely in the discretion of the United States Attorney's Office and the Department of Justice, Antitrust Division. By signing this Plea and Cooperation Agreement, the defendant agrees to waive any objections, motions, and defenses he might have to the government's decision. In particular, he agrees not to raise any, objections based on the passage of time with respect to. such counts, including, but not limited to, any statutes of limitation or any objections based on the Speedy Trial Act or the Speedy Trial Clause of the Sixth Amendment.
DATED: 1/26/11 _______________/s/________________
B. Defendant: I have read this Plea and Cooperation Agreement and carefully reviewed every part of it with my attorney. I understand it, and I voluntarily agree to it. Further, I have consulted with my attorney and fully understand my rights with respect to the provisions of the Sentencing Guidelines that may apply to my case. No other promises or inducements have been made to me, other than those contained in this Plea and Cooperation Agreement. In addition, no one has threatened or forced me in any way to enter into this Plea and Cooperation Agreement. Finally, I am satisfied with the
DATED: 1/21/11 _______________/s/________________
C. Attorneys for the Government: The undersigned accept and agree to this Plea and Cooperation Agreement on behalf of the government. DATED: ______________________
By: ____________/s/________________ BARBARA J. NELSON
Beginning in or about September 2008 and continuing until in or about October 2009 (relevant period), defendant participated in a conspiracy to rig bids at public real estate auctions held in San J6aquinCounty, California, located in the Eastern District of California. The primary purpose of this conspiracy
was to suppress and restrain competition and obtain selected real estate offered at San Joaquin County public auctions at non-competitive prices. During the relevant period, defendant and
his co-conspirators reached agreements not to bid against one another and to allocate properties among themselves. To carry
out their agreements, defendant and his co-conspirators refrained from bidding or refrained from bidding up the price for auctioned
properties. In many instances, defendant and his co-conspirators held private auctions, open only to members of the conspiracy, to
rebid the property. Defendant and his co-conspirators awarded the property to the conspirators who submitted the highest bid at the private auctions. Defendant and his co-conspirators
distributed the proceeds of the private auctions as payoffs to the other, unsuccessful bidders in the private auction, based
upon a predetermined formula agreed upon by the members of the conspiracy, for refraining from bidding on the property at the public auction.
During the relevant period, the business activities of the
defendant and co-conspirators were within the flow of, and
substantially affected, interstate trade and commerce. For
example, mortgage holders located in states other than California held mortgages, appointed trustees, and received proceeds from the public auctions that were subject to the bid-rigging agreement.
Beginning in or about September 2008 and continuing until in or about October 2009 {relevant period}, defendant knowingly
devised or participated in a conspiracy to defraud or to obtain money or property by means of materially false pretenses,
representations, or promises from the mortgage holders and owners of properties that were being sold at public real estate foreclosure auctions in the Eastern District of California. That conspiracy to defraud consisted of suppressing competition at the public auction of properties by agreeing not to bid against one
another at the public auction, by acquiring the property at a
lower price than would have resulted from a fully competitive
auction, and by holding a second, private auction and dividing
the profits of the scheme (the difference between the public and private auction prices) among themselves. In other words, the
participants intentionally manipulated the sales price of properties, causing false, artificially low sales prices to be reported and paid to victims of the scheme.
The defendant and others, for the purpose of executing the
conspiracy described above and attempting to do so, knowingly used and caused to be used the United States mails or private or commercial carrier. For example, trustees and government agencies used the United States mail to transmit grant deeds and
other title documents to participants in the conspiracy to defraud. These mailings were foreseeable to defendant in the ordinary course of business.