Opinion ID: 1249305
Heading Depth: 1
Heading Rank: 6

Heading: order setting conditions of release

Text: It is hereby that the defendants shall be released upon the following conditions, under Title 18, United States Code, § 1342: 1. Personal Recognizance Bonds A. A personal recognizance bond in the amount of $12 million for Mahender M. Sabhnani; B. A personal recognizance bond in the amount of $2.5 million for Varsha M. Sabhnani. C. The bonds shall be supported by; (a) a confession of judgment filed upon the $1.6 million equity present in a cooperative apartment owned by the Sabhnanis located at [address]; and (b) $2. 9 million cash deposited in Montauk Financial, [account number] (c) all shares of PVM International Corp. owned by the defendants; and (d) the defendants' daughter Pooja Sabhnani will be a suretor on the bond. Thise Montauk A ccount is completely restrained by consent and a properly filed restraining order. 2. Restraint of Assets  A. All financial A. The Court shall appoint an independent accountant to review the defendants' assets, including but not limited to all financial accounts they and their children own or control personally or through corporations or other organizations (collectively, the accounts), and the independent accountant will provide the Court with an accurate summary of the status of the accounts that will include a listing of current balances and an estimated worth of the assets. B. After the independent accountant has provided the Court with the above-referenced summary, all accounts and safe deposit boxes controlled by the defendants and their children shall be restrained by properly filed orders which shall permit transfers to take place for authorized business purposes, living expenses, defense costs including attorney's fees and the costs necessary to implement the conditions of home detention. All transfers exceeding $10,000 shall be subject to the approval of the independent accountant. The defendants shall present a list of business vendors and clients to be approved by the government to permit the authorized conduct of business. B C. Simultaneously with Prior to the release of the defendants upon these conditions, an employee of Stroz Friedberg, the private monitoring company described below, and the independent accountant shall accompany Pinky Pooja Sabhnani, the defendants' daughter, to examine the contents of all safe deposit boxes, inventory the contents and provide a copy of that inventory to government and defense counsel. 3. Electronic Monitoring A. The defendants shall be held in home detention in their residence located at [address]. They will wear electronic bracelets at all times during this detention. Pre-trial services will be allowed random access to the home. B. The defendants shall pay all costs associated with electronic monitoring. The defendants shall deposit in advance into an escrow account maintained by Hoffman & Pollok, LLP an amount equal to six weeks of electronic monitoring. The cost of electronic monitoring shall be paid to the Pretrial Services Agency in four week intervals. At the end of the first four weeks, and every four weeks thereafter, the defendants shall replenish the escrow account with an additional amount equivalent to the cost of four weeks of electronic monitoring. C. The defendants shall be confined to the home at all times except to attend necessary medical appointments and to attend religious services once per month. Prior to any such appointment or religious observance, defense counsel shall submit an order for the Court's signature specifying the date, time and place of such travel outside the home, with notice to the government and pretrial services, and the defendant will be accompanied by an employee of the private monitoring company, specified below. The Stroz employee will personally accompany the defendants at all times during any religious observances. D. The defendants hereby consent to random and unannounced searches of their home and effects by Stroz, Immigration and Customs Enforcement, and Pretrial Services. 4. Additional Conditions of Home Detention A. Private Monitorship by Stroz Friedberg LLC The conditions of home detention shall be monitored by Stroz Friedberg LLC (Stroz) a private investigations firm with principal office located at 15 Maiden Lane, New York, New York 10038. All expenses for this monitor ship monitorship shall be borne by the defendants subject to an engagement agreement signed by the defendants and Stroz Friedberg and approved by the government. The defendants shall deposit into an escrow account maintained by Hoffman & Pollok the equivalent of the costs associated with four weeks of home detention, to be replenished at each succeeding four-week interval. B. Electronic Monitoring of Communications i) The defendants shall maintain one hard line telephone and one hard line fax, to be electronically monitored by Stroz. This monitoring shall be done in real time by a Stroz investigator and shall be the equivalent of an electronic wiretap authorized by Court order. All conversations shall be recorded. The defendants and their children agree that all conversations shall be conducted in English. Any conversation which, in the judgment of the investigator, is suspicious shall be immediately reported directly to the Court with notice to the government and defense counsel. The parties agree that Stroz shall minimize all attorney-client conversations. ii) The defendants and their children shall not have cellular telephones and their wireless accounts shall be closed or suspended for the duration of the matter. iii) Stroz shall monitor and record all computer activity. Stroz will monitor and record all computer activity from a single desktop computer to be located in the basement of the residence with a single Internet connection. Stroz will provide the Court with an explanation regarding the methods of monitoring the computer activity, including but not limited to an explanation regarding whether the computer activity will be physically monitored by a Stroz agent and/or electronically monitored. The defendants consent to all monitoring of their children's computer activity. a. iv) The telephone capability of the computer will be disabled. b. The Sabhnanis will be permitted to receive facsimiles through the desktop computer, until the dedicated facsimile line has been established. c. v) SFI will compare images of the authorized desktop at the beginning of the assignment and at random, unannounced times, thereafter, to determine if violations of the protocol or Bail Stipulation have occurred. C. Travel to and from Court and other Approved Appointments i) a. The defendants shall travel from and to the Courthouse accompanied by a Stroz monitor. ii) b. In the event the defendants have received Court approval to travel to their attorneys' offices, to medical appointments, or to a religious service, they must travel with and be accompanied at all times by a Stroz monitor. D. No Access to the Home Other than Defendants, Their Four Children and Attorneys i) No person shall be permitted access to the home other than the defendants, who shall remain confined therein as set forth in this Stipulation, their four children [names], and the attorneys for the defendants, including employees of and investigators for the attorneys. The attorneys shall provide Stroz the Court ex parte with an authorized list of attorneys, employees and investigators. ii) The aforementioned children consent to be searched by Stroz surveillance agents upon entering and leaving the home. E. Physical Surveillance i) Stroz shall conduct physical surveillance of the home and immediate curtillage 24 hours per day, seven days per week. The home currently has five access doors, three of which shall be sealed either by the installation of keyed locks, the keys to be in the possession of a Stroz surveillance agent, or otherwise boarded up. Stroz shall maintain one surveillance agent in the vicinity of each of the two open access doors to the home. ii) The home is currently alarmed and the code shall be changed so that it is known only to the surveillance agents. The alarm shall be deactivated only by the surveillance agents, whenever the children enter or leave the premises, and the alarm shall be immediately re-activated thereafter. iii) The home has perimeter lighting which shall be illuminated at all times after sundown and before sunrise to facilitate surveillance. F. Other Conditions of Release i) The defendants and their daughters consent to temporary preventative detention in the event that agents of Stroz determine that they are attempting to flee. The detention shall last as long as necessary for Stroz to notify law enforcement of the flight attempt. The defendants and their daughters also consent to the use of reasonable force by Stroz employees to temporarily detain them if Stroz employees determine that the defendants and their daughters are attempting to flee. The defendants also authorize Stroz employees to possess firearms on their residence located at [address]. ii) Prior to the release of the defendants, they will provide the court with a sworn statement from Ashok Sabhnani, or another knowledgeable witness, that explains the financial transactions between Mahender Sabhnani and [son's name], including but not limited to the approximately $850,000 worth of international wire transfers between Ashok Sabhnani and Mahender Sabhnani, the repayment of loans by [son's name] to Ashok Sabhnani, and any accounts of Ashok Sabhnani over which Mahender Sabhnani has power of attorney. iii) If the defendants or their children attempt to conduct business activities on a regular basis outside of the premises located at [address], such attempt shall be deemed to be a violation of the conditions of release in this case. Regular business activities includes establishing computers, e-mail accounts, websites, telephone lines, or regular cellular telephone communications. All of the primary business of the defendants' corporation shall be conducted at the premises located at [address]. iv) Stroz shall report on all surveillance and monitor ship activity on a weekly basis directly to the Court with copies to the government and defense counsel. Dated: June 11 27, 2007