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HomeMy WebLinkAbout98-01828 I ~ q; ~, ~ , 1; ~ ., )0 <':'d ~ (J ~" q;' ... :/1 11 ~. , !-i \l ~ < t:j - - ~ 'i ~' ~. - , .'::l '-J the amount of Twenty-Three Thousand f Iva Hundred Sixty-One Dollars and Ninety-Two Cents ($23,561.92); And a third cheok (dated Maroh 17, 1996) In the amount of Twenty-Two Thousand Four Hundred Thirty-Seven Dollars and Thirty-Six Cents ($22.437,36), 8, Defendant was aware that Mr. Fetterman was deoeased at the time he presented the above ohecks for payment 9, Between May 13 and June 3, 1996, the three above oheoks were deposited by Defendant at PNC, with the Intent that they would be drawn on the aooount of Cove Realty at ECB, 10, Eaoh oheck presented by Defendant for payment at PNC had the forged signature of Roc F, Sansotta, owner of Cove Realty, as payor, 11, The checks presented by Defendant for payment at PNC were returned to ECB when they were dlsoovered by Cove Realty, 12, ECB attempted to return the cheoks to PNC for reimbursement, but reimbursement was refused due to the length of time slnoe the ohecks had been presented for payment and had cleared through ECB, 13, The total amount of loss to ECB was Sixty-Eight Thousand Six Hundred Ninety-Nine Dollars and Twenty-Eight Cents ($68,699,28), and represents the amount drawn against Cove Realty's account at ECB as a direct and proximate result of thr; forged Instruments tendered by Defendant 14, A proper and timely bond claim was filed by ECB against Rellanoe, A true copy of said bond Claim Is enclosed and attached hereto as Exhibit A 15, Rellanoe has Indemnified ECB as per 1t31ndemniflcation/surety agreement ("Surety Agreement"), effective July 23, 1995, A true and oorreot oopy of the Surety Agreement Is attached as Exhibit B, 16, On or about January 7,1997, Reliance paid ECB the sum of Forty-Eight Thousand Six Hundred Ninety-Nine Dollars and Twenty-Eight Cents ($48,699,28) as required under the terms of the Surety Agreement -2- PROOF OFf ~ FINANCIA~ "" ,TIONS , (- " o ~ Inlurlng Company Number RECI!lVED i~OV ? 7 i%6 1- A.II.....'_ c:om,...y 8-Unlttd'tcHIc 1_ Coo.""". 7_~1_~ BOND CLAIM OEPT3__,_ ~ 5TATE OF I I SS, I FROOF OF LOSS unclor Bond In ,_ of cOUNTY OF , Tho Und.nlvnld, -I~.!'!!!.. 8, H 0 9 9 ie, II I , b.lnlJ fir.. duly tNOrn, d-. and ..,1: Th" ho I, Vi co Presidont & Auditor M Tho EOlt Corolinl 81nk M Engolhord, NC __ ; \k" on July 17, 1998 wid . bank luff...., .loltdut10 lOt_ .lgnIu.,4t)tM.W4tAMMtMBX - , 1"'.wNml IfWII1I4(llM<lIl(tI\lJ1Itl ,n .ho sum 01 Jl1J<tv~ -........, eix hrdred. nlrIItv-nilWl & 2tl/llDDollon 1S68, 699.28 I IllrOU9h Icheck Which) 'C(ID1Inv _ ,cashing _ ,or PlVlng..xx.. ,1,,;GOd f.llh I three cher.kl d'11d S/13/9Gl 5/22/96: pnddrlWnon Thill E.8t Coraline Bank_ 6/3/96 NVIbI'IO John ~rmllln in .he """'un. 01 .1Z2...Jl.o.o...OO S'1..5.a.1.,92 S22, 437,36 Doll". II 'kln<<t Roc Sonoott. Said chIcks ondonld -->l.'!h!LF e t t e r m 0 n wtl or_'1d .cI'NC hnk. Philod'!lJ!h18. PA r,.,. 0' .,.~.. "''''''w.-1nIW11l1i''''1I., - by John Fottarmon undord"o01 llin,.o 5/20/96, 5/31/96 IntfM 01 II'''DII Of pytDOtttd _tan llftMnll/ie I,.ttumtntl ~ ~ -..... I, Atcltwd In 'JIlcNnge currency or crldlt upon f.lth of IUch chlllck. '0 "'ut 01 Sixty-fliltrt;~. s1J< Iutlrod. nil'8ty"'"!:- erd 28/llD's 2. r,.n"",,, (chICk which) monev _ . rund. __ . MeWltl. _ , 10 0011...11 68.899.28 uoon flhh of such 10 the ~UI c. Dollar. II J, Tht(lUQh the "turn Ot d'lIv..v by 1h. Insu,1d 0' (dtta'lbI pro_tVI uoon lhe flith 01 . _ bWI"l.he IO/god 'igna"" 0/ '...... __ 01 101M Y.lue of lchtck whlchl owner _' dlPO'HOI' _' ...... _' Intur"_ Dollaro II Thltllld _ WII fOtted or "'udul.,"t-,' .".... In thtl following manner: (11.1. "ftlc:tll 'IWI' IIIe Purpor.1d IcIIt<k whkhl d,1Wor _ , m.kor ~, occtp'O/ _' Of __ _' . ..._ .' """. III " 8C.IOO'D,II77 IOVI,!ll1 ~ \' .1' , i , , ~ ,', 'f ': i " ! , '.OJ . '" 'I)' IJ " .' ~'..;j r~ >, III c: ... o ... ... >. o(...c: '" I c: 111 0 i7~~lT';; -....8N- 'O...Ulll.... :JRJ -"" Cl 0. >.a.. '" . ~ ~ ~ .. u. ... III III E :l...'~ "0.0-11/') c.c: l.. 1tI Q) a. lTJ- GJU- ~UtJ III o C:C:'O f-l CI\ III c: 111 "'0..... 111- . c:-Ooi.... .. 0 III .t: . to 0:: .... 0. , - . - . - . . - . - . . - - -: i - ~ - - ~ - =E . . . - - =: ~ 1 - 11'I IT1 ~ C\ II" N ", III IT1 ! C\ c:I I 0. l: ~ If' \,,1 lII: " z ~ < ~ ~~I. z~ :JIC 02 ~n ~il (' ... c-- -, m EAST CAROLINA BANK ENGELHARD. NORTH CAROLINA 17814 POST OffiCE BOX m (919) 915.9411 ' September'. 1996 Mr, Edward F, Dudley. Morney Bonds Claim Department Reliance Surety Company 4 Penn Cen'er Plaza r U \ Philadelphia, PA 10103 1 / CLAIM NO: E96.(H'62 INSURED: The ElISt Carolina Bank BOND: BI91 2636 ROlTTE 164 MAIN STREET ,,,,,....,", \t ~ C. ~ \ 'J ~ O.,,,n..'" St.~ 1 c, \99'0 Olt> c.\Alt^ Ot.ft. ~, Dear Mr, Dudley: I have enclosed fonn BC-I00 ED, as proof of claim as requested, I have also enclosed; a c~py oClhe Subpoena for the original checks; copies of the three counterCei'ed checks; a copy of a re,guIar check oft' 'he accoun' of Cove Realty; copies of the 'hree affidavi's of forgery signed by Mr, Roc Sansolta on 'he c-- behalf of Cove Realty; a copy oClhe letter where PNC Bank refused payment; and copies of correspondence with the FBI. The reference to returning i'enu with or without entry is a tenn used with respect to the return of Items among banks 'hrough the Federal Reserve Bank, With entry meaning Iba' we have presented the return items in such a manner as to cause the Federal Reserve Bank to debit the bank's accoun' 'ha' the checks are being returned and give our bank immediate credl\. Gene,rally reserved for when the bank receiving the return items is at Cault and are required to make payment (Not the case in this situa'ion). Without entry means we arc using 'he Federal Reserve Bank to complete the return of the item. however. 'he bank receiving the relUm is no ooliga'ed to pay and is only being asked to assis' (ThIs is how we should have handled the relUm; however, the final outcome would not have changed), Please advise me of what other steps I need to take. Sincerely, ~~w Thomas B, Heggie, III VP Auditor & Compliance Officer II ~<<'" " '.o$' <:f4/1 WttlIm '?1'-7~;J.-?17J "'/'> ...-' .I": / 0# '-O'ffr - z;.;"", / /; ,~,' J-efl Walj,j-!Cfl/ -/0/,1 ~ ( 7/7- 7c!.)- '7/7] M1 9/"/ -:t:....- '), Cctt.I(",/ 7'''''41.,' I '..-,; o/r'" I - -. ~."',?'~.' -.." ,;p;1," / . ,(7..~~p .!,Jr. '1J">f:1~,1 /OA?J'/?~ . -,,, '- K -~ f'l(.11 {'/~lIr'rcl)1'7'~~,fM'~ ./ 'y ,- III ~ ""I "..\.t':!!t.!!.l~~~~~ o SOLS r -""TORSHIP o PARTN lb CORI'ORATION. Fon PROFIT o COnpORATlON, NOT FOR PROFIT o ORGANIZA TlONI TYPI !!!..ACCOUNT - PI"'ONAL: o Individual o Joint 'Nilh nonl"tllClllvt right of IUrY!YOIlhlp W. undtflllnd thl' bV tI'lbUthlng . joint ICcount under IhI provtlkJnl 0' Nolih C41,olIRl Otntt'llSlIIu", 1l3-14S,IIh1I: ,I · The S"l O.,olln. Sink may PlV the montv In Ih. QCcounllo, 01 on ttlo. order or. Iny PN10n nImtd In the.' ICcounl un'... WI h..... lorlMd ""Uti the wnk lhll wllhdrlwl" "~qul,. mot, thin one IlgnIlu,,: ana! · If WI tltcllo cr.. I. the non'..'rIcUve '"tIhl 0' lurvlvorlhlp In thl lIcc:ounl, thlt upon the dellh of on'lo'nl Own'f, thl mon.y remaining lr, the lCClount will belong 10 the It'Nlylng joint OWMf(') lnet wiN not be Inllo,lIad by lhe 1It1" ollhl_ltdjolnl ow",,, 01 bo oonl,olled by th. doc:._ joInlownlf'l wll, W. do _I to erNI, the nonttttrlcUvt right ollUrvlYOrlhlp In Ih.1 1CC000nt. OJoJnI wllh ".('lell.... right Of IUrviYOmhlp . W. undt"II'nd lnl' on flllbll.hlng . lolnt 'CCount under Iht Pf'OYI.lont 0' North Clrol"'l Gtntt'11 9t.lutl 41'2.I1hol: . The eeat C.rolln. B.nk m.y P'Y IhI money ." thl 'CCO\lnt to, or on lhe order of. Iny pnon named In the .' account; .nd ., · Upon lho OoIlh of ono loin' 0"'". lho tnonoy "",.lnI~ In lho lIOOOOI\l will bIlonv 10 tho _~ /OIn4 " owntr(.). but .ub~t to cln,ln Il,,'ml ~alnll the ~ 0Wntt ulltlbtllhllldJn ~~Ina GentriI ' Statuto 41.2. t a Joint without rlghl of tufYlvOf'1hlp W. undl""nd thol by ""blllhl~ I IolnllO,ounl wlthoul ,Ighl OI.UNlvoI1hlp IhIl"11lt dlllh .1 ony """. tho fu~ In ItMllOOOOnl will bo pold IoInll'l 10 lhe EllAIl. of lhe dIoMlld Ind IUNI,I~ joInI_ o Totlon TMI I uMef1tand that by "lIbl""'ng a trutt account un. the pro~ttl6nl 01 North Clrotlna Qtotr~ Stalott 1l3-14Ulh.,: . During my N"tlfM I may wilhdttw the money In IhllCCounl; and · By wrlnen dlrlCtlon to thl blink I fNIy chMgt lht bentfloll,.,: Ind . Upon my M.th Iht money tlm,'nlng In the account will betong to IhI btntflcliry and lhe monev will not tit Inheflltd~,. or be controlled by my wiN. ~Jfi'4:1Y a: r '.. ~:J ~.')n ' COUNT'lANO STATS ll/R; OF ORGANIZATION .~ AUTHORlZA1'IONOATEO 1~ 1Iont1~1AI1'f Addr... ell 1.11 o PI,..,nal Agonoy I undef1t'nd thai by n'lbUshlng I per.on"lgene,;, account under the provlllont 01 North Clr~1nI Gent", Stalull 5:}.t48.3 that lhe age"1 nlmtd In lhe Iccount mIIy . Chick. drtlwn M the ICCOUnt and mlkl depoallt Into the 'ccounl. I .Iao undersland (h.t upon my dt.th lhl money tlm,'nlng In the tcCOUnl wtH. be ,\ corllrolled by my will 6( Inherited by my helll. I Hamool ~~g.nl o 0""," - ,--,.L' I hi" rooolYod, Ind Itid ihO'TI~;;;"'nd ~m,!"~1 lho IOcounl dIolgnalld Ind Ig'" 10 aooopI auoI1 T..... Ind COndIl~t:'/ / " \ ~ IV ' - , SIg""lult '.. -;.' .' 1. Vt. , 01" 1-6-M ,'J -, ~, . I '_.. ,- Slgnalu.. PrlnlCutl,No,l 1IlaMllurw/OwnerlhlD Cercj CIM; IFAlTV IF NIm IIWl m:. Ptlnt CUI" No, 2 F!nIW IlT Add_ P.O. IJJl( 'Wf Add_ rIGS H:ro,~ 279lJ SIGNATURES - THS UNOERSIGNED AGREEISI TO nlE TERMS STATEO O.,!:!~S FRONT AND BACK OF THIS FOAM, Ind 'C~nowlWUV'(l) rtcelpl 0 il "'It one copy on lilt d'IIIIoIId, ./' (' ,I ,,,/ " ,. t ' iliA ' , , ,..-' , 1/> :.;- 12). Y _ " ..:' i"~, (3)'- ! CHECKING 01,41,411 o Inll/alo ,XF'Gl o NOW/MMCA 0 SAVINGS o C8ATlFICA T8 0 IRA OllloelBllnoh '" 001. 1-5-01 FILE .; RI/allonlhlp ====1 ~ - 0011 I.:..~~":~"~~ ' .. ,.' , - , , ---.~ " ~o:"=, (. ( I (jl I )_, Numbo< 01 SIgno_ ' T:11. 1t!!U9! W11hd..",,: ~, ~T:::'~"IIJ, ff..WM....,........... -.. !iG-nl7IBI ' X,'ACM~WlTHHOl.DlHll.I""."""" --.~"''''''''l'''''.'''' ,.......1............ ............. ....".......,.,........~. 1M.............. ................. ""..............~ . o IXIWl ~.,................ ..... lie ..... .................... !lei -. -...... ..,...- '~ . ,/ ,... ' I .. 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NO, (Judge JIFFRIY SCOTT WALTMAN CR llCRAMBO -97-236 r:IlF:n HARl'lr~r-1/ .rlG PI> '1 1,/,';, ~?'": MARY E, ~~DrfE~ Ci ERK Per_____ ' ", epuly lOri, Bank, N,A are . I N FOR MAT I 0 H Count I THB UNITID STATIS ATTORNEY CHARGIS THAT I 1, The Mellon Bank and the Wells Fargo financial institutions, as defined by Title 18, United States Code, Section 20, with deposits insured by the Federal Deposit Insurance Corporation. 2. Beginning on or about March 4, 1996 and continuing up to on or about May 13, 1996, the defendant, JIFFRIYSCOTT WALTMAN, devised a scheme or artifice to defraud the Mellon Bank and the Wells Fargo Bank, N.A, and to obtain monies, funds and other property owned by and under the custody and control of the Mellon Bank and the Wells Fargo Bank, N.A, by means of false and fraudulent pretenses, representations and promises, 3. It was part of the scheme and artifice to defraud and to obtain money, funds and other property by means of false pretenses, representations and promises that the defendant would and did obtain checks of his deceased uncle, John H. Fetterman, for an account at Wells Fargo Bank, N,A., write checks drawn on said account and payable to Paraeoft Per whollY own.d .nd con"oll'd by 'he .".nd.n', de.o.i' eaid eh.e" intO' bu.in," cbee,'ng aeeoUn' ..int.inod by thO d.f.nd.nt, d/b/' ",,'0" p.v.,opmon' ",OUp, .t tho ..llon B.n' , an' withdraw funds from said account on various dates. 4. on 0' .bout Ma,cn " ",6, wi,hin 'h' .iddl' Oi.t,i" 0' ,enn.ylv.ni., ,h' d.f.nd.n', J.,.... BcoTT ......., ...eut...nd a't...,.d to ...'u" the .,h'" .nd .,,"i" to d.f,.ud .nd '0 ob,.in monoY, 'undo .nd o,h" p,op.,tY by ...n. of ,.1" .,.,.n.." ,ep,.e.n,.'iOn. .nd p,omi..., ., ..t 'o,th .bOv. in ..,.g,..h' , ,h,ougn" in ,ha' he did pl.,. .n o,de' fo' 'h' p,in"ng 0' eh"" on ,he .eeount 0' John K. 'e".rman ., tb' ..11' ,.,go B.n" N.A., ,e.ul,'ng in ,h' .hipping of ..,d ,h'c,' '0 John K. ,.t,.,m.n" def.ndant'. home .dd"'" ,,'2 'it,.tinny p,iv" ..chon' c.bu'9, p.nn.ylv.nia, wh.n in f.et, .. thO d."ndont w,ll ,n'w, Jobn K. "tte,..n h.d di.d on ,.bro'" lB, 1996. 5. on 0' .bout .."h 1, ",6, ,n 'h' Middl' Pi.t,i't 0' penn.ylvni., thO d.f.nd.nt, ..",.. BCart ........ did dopa.i' ,h'" numbO' ,," d"wn on ,h' ."oun' of John M. ,.t,.,..n .t thO ..11. ,.,go BOn" N.A., in ,h' .mount 0' ",,000, in'o · bu.in.e. eh."ing ."oun' ..in,.in.d DY thO d.,.nd.nt, d/b/' parasoft Development Group, at the Mellon BanK. 6. "n 0' obout .."n " ",6, in tho Middl' Di.t,i't 0' ,.nnsylv.ni', the d.f.nd.nt, ..",.. scoTT ......., did d.pa.it ,h,e, nu"" ,1B' .,.wn on tn' a,eoun' of John .. ,.tt.roon .t tho ..11. ,.rgO B.n' , N.A., ,n the .mount 0' ",'00, 'nto' bU.i.... 'h."ing ."ount ..int.i..' bY tn' d.f.n40nt, diD!' 2 Parasoft Dcv~lopment Group, at the Mellon Bank. 7. On or about March 5, 1996, in the Middle District of Pennsylvania, the defendant, JEPPREY SCOTT WALTMAN, did deposit check number 9796 d,rawn on the account of John H. Fetterman at the Wells Fargo Bank, N.A., in the amount of $14,500, into a business checking account maintained by the defendant, d/b/a Parasoft Development Group, at the Mellon Bank. 8, On or about March 13, 1996, in the Middle District of Pennsylvania, the defendant, JEPFREY SCOTT WALTMAN, did deposit check number 9783 drawn on the account of John H, Fetterman at the Wella Fargo Bank, N,A., in the amount of $3,500, into a business checking account maintained by the defendant, d/b/a Parasoft Development Group, at the Mellon Bank, 9. On or about March 29, 1996, in the Middle District of Pennsylvania, the defendant, JEPFREY SCOTT WALTMAN, did deposit check number 9786 drawn on the account of John H, Fetterman at the Wells Fargo Bank, N.A., in the amount of $19,000, into a business checking account maintained by the defendant, d/b/a Parasoft Development Group, at the Mellon Bank. 10. The defendant did forge or cause to be forged the signature of John H. P'etterman on the checks deposited into the Mellon Bank account! am set forth above in paragraphs 5 through 9. 11. The cheCkS deposited on March 4 through March 13, 1996, as set forth abova in paragraphs 5 through 8, were honored and paid by the Wells Fargo Bank, N.A" resulting in a 10.. to the estate of John H, Fetterman in the amount of $44,500. 3 12, The check deposited on March 29, 1996, as set forth above in paragraph 9, was not hlJnored or paid by the Wells Fargo Bank, N.A., resulting in a loss to the Mellon Bank in the amount of $18,104, 13. On various dates between March 4, 1996 and April 1~, 1996, the defendant did make cash withdrawals from, write checks drawn on, and purchase cashier's checks with funds from the business checking account maintained by the defendant, d/b/a Parasoft Development Group, at the Mellon Bank, in the total amount of $66,528.92. All in violation of Title 18, United states Code, Section 1344, ~ Count II THB UNITBD STATES ATTORNEY FURTHEl CHARGES THAT I 1. On or about May 10, 1996, May 20, 1996, and May 31, 1996, checks in the amount of $22,700, $22,437.66, and $23,561,92, respectively, drawn on the account,of Cove Realty, Inc., of Nag's Head, North Carolina, at The East Carolina Bank, were deposited to the account of the defendant, JEPPREY SCOTT WALTMAN, at PNC Bank, N.A., Camp Hill, Pennsylvania, within the Middle District of Pennsylvania. 2, The checke set forth above, in paragraph 1 of Count II, were honored and paid by The East Carolina Bank and credited to the account of the defendant at PNC Bank, N.A., in the ordinary course of business. 3, The makers' signatures on the checks set forth above, in paragraph 1 of Count II, were forged by the defendant, resulting in a loss to The East Carolina Bank in the amount of $68,699.28, 4, The East Carolina Bank and PNC Bank, N ,A" are financial institutions, as defined by Title 18, United States Code, Section 20, with deposits insured by the Federal Deposit Insurance Corporation. 5. On or about May 31, 1996, in the Middle District of Pennsylvania, the defendant, JBFFRBY SCOTT WALTMAN, did engage in a monetary transaction in criminally derived 5 . property of a value greater than $10,000 which was derived from the specified unlawful activity set forth above in paragraphs 1 through 4 of Count II, to wit, bank fraud in violation of Title 18, United States Code, Section 1344, in that the defendant did withdraw $22,000 from the account of the defendant at the PNC Bank, N.A" use said funds to purchase a cashier's check drawn on the PNC Bank, N.A., in the amount of $22,000, and use said $22,000 cashier's check to purchase a sailboat located in Maryland, All in violation of Title 18, United States Code, Section 1957. 6 . Count: III THB UNtTIlD STATIS ATTORNEY FURTHER CHARGES THAT. The personal property listed below was involved in the offenses alleged above in Counts I and II of this Indictment or is property traceable to such property, and constitutes or is derived from, proceeds the defendant, JEPFREY SCOTT WALTMAN, obtained, directly or indirectly, as the result of such offenses: 1. 1994 Nissan Pathfinder automobile, bearing VIN JN8HD17Y3RW244779; 2. 1980 Ericson sailboat named the "North Star," bearing hull identification number ER'iJ0543M8/ and 3. 23 foot PreGision sailboat bearing hull identification number PCW23200E889, with l?erformance trailer, bearing serial number 40ZSP2328JPPT2012, By virtue of the commission of the offenses charged in Counts I and II of this Indictment by the defendant, JIPrRIY SCOTT WALTMAN, any and all interest the defendant may have in the above-described property is vested in the United States and is hereby forfeited to the United States pursuant to Title 18, United States Code, Section 982(a) (1) and (2) and Title 21, United States Code, Section 853, In the event that any of the personal property involved in the offenses alleged above in Counts I and II of this Indictment or traceable to such property, or any property constituting or derived from proceeds of such offenses, as a result of any act or omission of the defendant: (a) cannot be located upon exercise of due diligenc., 7 . ~ DMBITBS UNITED STATES DISTRICT COURT FOR THB MIDDLE DISTRICT OF PENNSYLVANIA v. :lc.i..'cR. - 97- 23 6 ) (Judge ) r:/LFT'; ) "//11"1-11';:;":"1"( ) , ", ,:" UNITED STATES OF AMERICA JEPFREY S. WALTMAN " ,;, P LEA A G R E B M B N T The following plea agreement is entered into ~El~:W t: l.i'"""I;" """ , ~L:Ai\ "~'--'.'T)o~u::7:~ ~'~~'-'-' by and between the United States Attorney for the Middle District of Pennsylvania and the above-captioned defendant, Nl}' reference to the United States or to the Government in this Agreement shall mean the office of the United States Attorney for the Middle District of Pennsylvania. The defendant and counsel for both parties understand that the United States Sentencing Commission Guidelines which took effect on November 1/ 1987/ as amended from time to time, will apply to the offense or offenses to which the defendant is pleading guilty, since the offense or offenses were completed after the ef fecti ve date of the implementation of the Guidelines. ,...--... 11) The defendant agrees to waive indictment by a grand jury and plead guilty to a felony information which will be filed against the defendant by the United States Attorney for the Middle District of Pennsylvania. That information will charge the defendant with a violation of Title 18/ United States Code, Section 1344, bank fraud, with a violation of Title lB, United States Code, Section 1957, engaging in monetary transactions in . . property derived from specified unlawful activity, and with a criminal forfeiture count under Title 18/ United States Code, Section 982. The maximum penalty for bank fraud is imprisonment for a period of 30 years and/or a fine of $1/000/000/ a ter.m of supervised releabe to be deter'mined by the court, the costs of prosecution, denial of certain federal benefits, and an assessment in the amount of $100. The maximum penalty for engaging in monetary transactions in property derived from specified unlawful activity is imprisonment for a period of 10 years and/or a fine of $250/000/ a term of supervised release to be determined by the court, the co~ts of prosecution, denial of certain federal benefits, and an assessment in the amount of $100. At the time the guilty plea is entered, the defendant shall admit to the Court that the defendant is, in fact, guilty of the offenses charged in the information and that the property which is the subject of the criminal forfeiture count, which is more particularly described in paragraph 13 hereof, constitutes property involved in the violation of Title 18, United States Code, Section 1957 or traceable thereto. 2. The defendant also understands that the Court must impose a term of supervised release following any sentence of imprisonment exceeding one (1) year, or when required by statute. The Court may require a term of supervised release in any other case. 3. The defendant understands that the total, maximum possible sentence for all charges is the combination of penalties described above; that is, 40 years in prison and/or fines 2 . . .. totalling $1,250/000/ a term of supervised release to be determined by the Court, the costs of prosecution, denial of certain federal benefits, and assessments totalling $200. 4. The defendant understands that the Court may impose a fine pursuant to the Sentencing Reform Act of 1984. The willful failure to pay any fine imposed by the Court, in full, may be considered a breach of this plea agreement. Further, the defendant acknowledges that willful failure to pay the fine may subject the defendant to additional criminal violations and civil penalties pursuant to Tile 18, United States Code, Section 3611, et seq. 5. The defendant understands that under the alternative fine section of Title 18, United States Code, Section 3571, the maximum fine quoted above may be increased if the District Court finds that any person derived pecuniary gain or suffered pecuniary loss from the offense and that the maximum fine to be imposed, if the Court elects to proceed in this fashion, could be twice the amount of the gross gain or twice the amount of the gross loss resulting from the offense. 6. If the Court awards a fine or restitution as part of the defendant's sentence and the sentence includes a term of imprisonment, the defendant agrees to voluntarily enter the United States Bureau of Prisons administered program known as the Inmate Financial Responsibility Program through which the Bureau of Prisons will collect up to 50 percent of the defendant's prison salary and apply those amounts on the defendant's behalf to the payment of the outstanding fine and restitution orders. 3 . 7, The defendant understands that the Court will impose a special assessment of $200 pursuant to the provisions of Title 1B, United States Code, Section 3013. No later than the date of sentencing, the defendant or defendant's counsel shall mail a check in pa)~ent of the special assessment directly to the Clerk, United States District Court Middle District of Pennsylvania. This check should be made payable to "Clerk, United States District Court". Counsel for the defendant shall provide a copy of the special assessment check to the United States Attorneys Office for the Middle District of pennsylvania at the time of sentencing certifying compliance with this provision of the plea agreement. A failure to make this payment, or payment with insufficient funds, will be treated as a breach of this plea agreement and may result in further prosecution or the filing of additional criminal charges. 8. The defendant agrees, as a part of this Agreement, to submit to interviews by the United States Attorney Office's Financial Litigation Unit regarding the defendant's financial status and to complete and submit a financial statement, under oath, not later than two weeks after the date of this plea agreement. 9. The United States Attorney's Office for the Middle District of Pennsylvania agrees that it will not bring any other criminal charges against the defendant directly arising out of the defendant's involvement in the offense described above. However, nothing in this agreement will limit prosecution for criminal tax charges, if any, arising out of those offenses. 4 . . io. " Counsel for the defendant has affirmatively indicated to the united States Attorney's Office that the defendant not only wishes to enter a plea of guilty, but clearly demonstrates a recognition and affirmative acceptance of responsibility as required by the sentencing guidelines. Additionally, the defendant has assisted authorities in the investigation and px'osecution of his own misconduct by taking the following step (s) : Timely notifying authorities of his intention to enter a plea of guilty thereby permitting the government to avoid preparing for trial and permitting the court to allocate its resources efficiently. Accordingly, if the defendant can adequately demonstrate this acceptance of responsibility to the government, the United States Attorney's Office will recommend chat the defendant receive a three-point reduction in the defendant's offense level for acceptance of responsibility. The failure of the Court to find that the defendant is entitled to this three-point reduction shall not be a basis to void this plea agreement. 11. At the time of sentencing, the United States will , recommend that the Court impose the minimum prison term within the applicable guideline range. 12. If probation or a term of supervised release is orderad, the United States will recommend that the Court impose the following special conditions: (a) That the defendant be prohibited from possessing a firearm or other dangerous weapon; (b) That the defendant make restitution, 5 . '" ... payment of which shall be in accordance with a schedule to be determined by the Court; (c) That the defendant pay any fine in accordance with a schedule to be determined by the Court; (d) That the defendant be prohibited from incurring new credit charges or opening additional lineD of credit without approval of the Probation Office unless the defendant is in compliance with the payment schedule; and (e) That the defendant be directed to provide the Probation Office and the United States Attorney access to any request~d financial information. 13. The defendant has agreed to cooperate with the United States in the investigation and prosecution of other suspected violations of the law. Upon completion of the cooperat!,on, if the United States believes the defendant has provided "substantial assistance" pursuant to Title 18, United States Code, Section 3553(e) or Section 5K1.1 of the United States Sentencing Guidelines, the United States may request the Court to depart below any applicable mandatory minimum sentence or the guideline range when fixing a sentence for this defendant. In the event that the defendant renders substantial assistance, the United States specifically reserves the right to make a specific recommendation of a term of months to the Court. However, the defendant acknowledges that the United States may decline to exercise its discretion and recommend a departure if the defendant breaches any of the provisions of this Agreement, or commits any other offense while awaiting plea or sentencing. 6 . .. 'II , 14. The defendant states that the defendant desires to end all pending civil and criminal matter.s in the Middle District of Pennsylvania and, in ordf:lr to avoid needless litigation and the expense attendant thereto, agrees to settle the civil and criminal matters arising out of his use of proceeds of a specified unlawful activity to purchase a 1994 Nissan Pathfinder automobile, bearing VIN JNBHD17Y3RW244779, a 1980 Ericson sailboltt named the "North Star," bearing hull identi fication number ERY30543M8, and a 23 foot Precision sailboat bearing hull identification number PCW23200EB89, with Performance trailer, bearing serial number 40ZSP2328JPPT2012. The defendant further agrees to the following: (a) Criminal forfeiture of the said 1994 Nissan Pathfinder automobile, bearing VIN JN8HD17Y3RW244779, 1980 Ericson sailboat named the "North Star /" bearing hull identification number ERY30543M8, and 23 foot Precision sailboat bearing hull identification number PCW23200E889, with Performance trailer, bearing serial number 40ZSP2328JPPT2012; (b) The immediate entry of the preliminary order of forfeiture; (c) The waiver of the defendant's right to the personal service of all process and the appointment of James J. West, Esquire, 105 North Front Street, Harrisburg, pennsylvania 17101 as the defendant's agent for. service of all process; (d) The waiver of the defendant'S right to appear and contest any portion of the forfeiture proceedings, including but not limited to, any motion or proceeding for substitute assets; (e) That no other person or entity has an equitable or legal interest in the property/ real or personal, subject to forfeiture pursuant to this agreement; (f) TO sign any and all documents necessary to effectuate the forfeiture and costs associated 7 . . .. . therewi th I To the immediate payment of $300 for costs of the forfeiture, and submits said amount with the signed plea agreement. 15. By this Agreement, the defendant agrees to forfeit all (g) interests in the properties listed in paragraph 13 above and to take whatever steps are necessary to pass clear title to the United States. These steps include but are not limited to surrender of title, the signing of a consent decree, a stipulation of facts regarding the transfer and basis for the forfeitures and signing any other documents necessary to effectuate such transfers. 16. The defendant agrees to make full restitution in accordance with a schedule to be determined b}' the Court. The amount of the loss resulting from the defendant's actions will be determined at the pre-sentencing hearing. 17. The defendant also understands that the United States will provide to the United States Probation Office all information in its possession which the United States deems relevant regarding the defendant's background, character, cooperation, if any, and involvement in this or other offenses. lB. The defendant understands that pursuant to the United States District Court for the Middle District of Pennsylvania "Policy for Guideline Sentencing" both the United States and.~_, defendant must communicate to the probation officer within fifteen (15) days after disclosure of the pre-sentence report any objections they may have as to material information, sentencing classifications, sentencing guideline ranges and pOlicy 8 . .. ... # statements contained on or omitted from the report, The defendant agrees to meet with the United States at least five (5) days prior to sentencing in a good faith attempt to resolve any substantive differences, If any issues remain unresolved, they shall be cornmunicated to the probatJ.on officer for his inclusion on an addendum to the pre-sentence report. The defendant understands that unresolved substantive objections will be decided by the Court at the sentencing hearing where the standard of proof will be a preponderance of the evidence. Objections by the defendant to the pre-sentence report or the Court's rulings, will not be grounds for withdrawal of a plea of guilty. 19. The defendant understands that pursuant to the Victim and Witness Protection Act (18 U.S.C./ Section 3521/ et seq.) and the regulations promuJ,gated under the Act by the Attorney General of the United States: (a) The victim of a crime is given the opportunity to comment on the offense and make recommendations regarding the sentence to be imposed. The defendant also understands that the victim's comments and recommendations may be dj,fferent than those of the parties to this agreement. (b) The federal prosecutor is required to consult with victims of serious crimes to obtain their views regarding the appropriate disposition of the case against the defendant and make the information regarding sentencing known to the Court. The defendant understands that the victim's opinions and reoommendations may be different than those presented by the United States as a consequence of this agreement. (c) The federal prosecutor is required to "fully advocate the rights of victims on the issue of restitution unless such advocacy 9 . ... , .. . would unduly prolong ot' complicate the sentencing proceeding/" and the Court is authorized to order restitution by the defendant including, but not limited to/ restitution for property loss, personal injury or death. 20. At the time of sentencing, the United States will be permitted to bring to the Court's attention, and the Court will be permitted to consider, all relevant information with respect to the defendant's background, character and conduct including the conduct that is the subject of the charges which the United States has agreed to dismiss, and the nature and extent of the defendant's cooperat ion / i.f any. The United States will be entitled to bring to the Court's attention, and the Court will be entitled to consider, any failure by the defendant to fulfill any obligation under this Agreement. 21. The defendant understands that the Court is not a party to and is not bound by this Agreement or any recommendations made by the parties. Thus, the Court is free to impose upon the defendant any sentence up to and inchlding the maximum sentence of imprisonment for 40 years and/or a fine of $1,250/000, a term of supervised release, the costs of prosecution, denial of certain federal benefits and assessments totalling $200. 22. If the Court in~oses a sentence with which ~he defendant is dissatisfied, the defendant will not be permitted to withdraw the guilty plea for that reason alone, nor will the defendant be permitted to withdraw the plea should the Court decline to follow any recommendations by any of the parties to thu Agreement. 10 ., .. ,Ill .. 23. The d.sfendant agrees to coop"rata fully with the United States. The de fondant understands and agrees that complete and truthful cooperation is a material condition of this agreement. Coopention shall include providing all informat.ion known to the defendant regarding any criminal activity, inCluding but not limited to the offenses described in this agreement, Cooperation will also include complying with all reasonable instructions from the United States, submitting to interviews by investigators and attorneys at such reasonable times and places to be determined by counsel for the United States and to testify fully and truthfully before any grand juries, hearing"" trials or any other proceedings where the defendant's testimony is deemed by the United States to be relevant. The defendant understands that such cooperation shall be provided to any state, local and federal law enforcement agencies designated by counsel for the United States. The United States agrees that any statements made by the defendant during the cooperation phase of this agreement shall not be used against the defendant in any subsequent prosecutions unless and until there is a determination by the Court that the defendant has breached this agreement. However, the United States will be free to use at sentencing in this case any of the statements and evidence provided by the defendant during the cooperation phase of the agreement. Moreover, t.he parties agree that, although the defendant's statements made during the cooperation phase cannot be used against the defendant in any subsequent criminal prosecution, this provision shall not preclude the United States from requiring the defendant to submit 11 ~ ... .. . to interviews by local/state or federal. agencies which may use these statements in civil or administrative proceedings involving the defendant. 'the defendant wai vas and agrees to waive any rights under the Speedy Trial Act and understands and agrees that sentencing may be delayed until the cooperation phase has been completed so that at sentencing the Court will have the benefit of all relevant information. 24. The defendant agrees to act in an undercover capacity to the best of the defendant's ability if requested, to allow law enforcement authorities to monitor and tape record conversations, in accordance with federal law, between the defendant and persons believed to be engaged in criminal conduct / and to fully cooperate with the instructions of law enforcement authorities in such undercover activities. 25. The defendant, if requested by the attorney for the United States, agrees to submit to polygraph examinationo by a polygrapher selected by the United States. 26. In the event the United States believes the defendant has failed to fulfill any obligations under this Agreement, then the United States shall, in its discretion, have the option of petitioning the Court to be relieved of its obligations. Whether or not the defendant has completely fulfilled all of the obligations under this Agreement shall be determined by the Court in an appropriate proceeding at which any disclosures and documents provided by the defendant shall be admissible, and at which the United States shall be required to establish any breaoh 12 " ... "" .. by a preponderance of the evidence. In order to establish any breach by the defendant / the United States is entitled to rely on statements and evidence given by the defendant during the cooperation phase of thi.s Agreement. 27. The parties agree that at any court hearings held to determine whether the defendant has breached this Agreement, the polygraph results and the polygrapher's conclusions and opinions shall be admissible. The parties also agree that such polygraph data shall be admissible at any sentencing hearings involving the defendant. 28. The defendant and the United States agree that in the event the Court concludes that the defendant has breached the Agreement: (a) The defendant will not be permitted to withdraw any guilty plea tendered under this agreement and agrees not to petition for withdrawal of any guilty plea; (b) The United States will be free to make any recommendations to the Court regarding sentencing in this case; (c) Any evidence or statements made by the defendant during the cooperation phase will be admissible at any trials or sentencings; (d) The United States will be free to bring any other charges it has against the defendant. 29. Nothing in this Agreement shall protect the defendant in any way from prosecution for any offense committed after the date of this Agreement, including perjury, false declaration, or false statement, in violation of Title 18/ United States Code, Section 1621, 1623, or 1001, or obstruction of justice, in violation of Title 18, United States Code, Section 1503, 1505, or 13 ~ 1510/ should the defendant commit any of those offenses during the cooperation phase of this Agreement. Should the defendant be charged with any offense alleged to have occurred after the date of this Agreement, the information and documents disclosed to the United States during the course of the cooperation could be used against the defendant in any such prosecution. 30. Nothing in this agreement shall restrict or lirnit the natur'e or content of the United States's motions or response to any motions filed on behalf of the defendant. Nor does this agreement in any way restrict the government in responding to any request by the court for briefing, argument or presentation of evidence regarding the application of the Sentencing GUidelines to the defendant's conduct, including but not limited to, requests for information concerning possible sentencing departures. 31. Nothing in this Agreement shall bind any other federal, state or local enforcement agency. 32. This document states the complete and only Plea Agreement between the United States Attorney for the Middle District of Pennsylvania and the defendant in this case, is binding only on thp. parties to this Agreement, supersedes all prior understandings, if any, whether written or oral, and cannot be modified other than in a writing that is signed by all parties or on the record in court. No other promises or inducements have been or will be made to the defendant in connection with this case, nor have any predictions or threats been made in conne~tion with this plea. ~ ~ ~ 14 ,- tf"':<:'.../-" n_.,_ . . ___ _,_, ,-' ~'__,~ ._.:. __ __ .. "-.'.To---""'n _:";,'_,'cL~,~,, inThe Court of Comlllon Pleas of Cumberland County, Pennsy vania, Reliance Insurance CompAny and East Carolina Bank VS, ,Jeffrey Waltman No. 98-182fL civil __19_ Now, 413198 York 19_,1 SHERIFF OF CUMBERLAND COUNTY, P..\. do hereby deputize the Sheriff of Count)' to execute this Writ, this deputation being made nt the request nnd risk of the Plaintiff, r"~~ SherlffofCumberlaod Couot,\'. Po, Affidavit of Service Now,__ within upon at by banding to attesled copy' of thc orlginol ____ the cooteots thereof, 19__,nt o'clock __~I. served th. ,;:~. <;;I,' (, I .-n ';1 .,"0 fruennd, nnd modo known to '., - " ('1'.) , So answers, Sheriff of 'Counl)'. Po, COSTS SIIOI'O and subscribed befor. mcthis doy o[ 19_ SERVICE S M1LEAGE_._, AFFID,.\ VIT s -0 '::\ ~ , t.r 0-; , ... the elTll)unt 01 Twenty-Three Thousand Five Hundred Sixty-One Dollars and Ninety. Two Cents ($23,561,92); and a third oheck (dated March 17,1996) In the amount 01 Twenty-Two Thousand Four Hundred Thirty-Seven Dollars and Thirty-Six Cents ($22,437,36), 8, Delendant was aware that Mr, Fetterman was deoeased at the tlma he presented the above chooks lor payment. 9, Between May 13 and June 3,1996, the three above checks were deposited by Defendant at PNC, with the Intent that they would be drawn on tha account 01 Cove Realty at ECB. 10, Each check presented by Delends It for payment at PNC had the lorged signature of Roc F, Sansotta, owner 01 Cove Really, as payor, 11, The checks presented by Delendant for payment at PNC were retumed to ECB when they were discovered by Cove Realty, 12. ECB attempted to return the checks to PNC lor reimbursement, but reimbursement was refused due to the length of time since the checks had been presented lor payment and had cleared through ECB, 13, The total amount 01 loss to ECB was Sixty-Eight Thousand Six Hondred Ninety-Nine Dollars and Twenty-Eight Cents ($68,699,28), and represents the amount drawn against Cove Realty's account at ECG as a dlreot and proximate result 01 the lorged Instruments tendered by Delendant. 14, A proper and timely bond claim was filed by ECB agaln,t Reliance, A true copy of said bond claim Is enclosed and attaohed hereto as Exhibit A 15, Reliance has Indemnified ECB as per Its Indemnification/surety agreement ('Surety Agreement'), errectlve July 23, 1995, A true and correct copy 01 the Surely Agreement is attached as Exhibit B, 16, On or about January 7. 1997, Reliance paid ECB the sum 01 Forty-Eight Thousand Six Hundred Ninety-Nine Dollars and Twenty-Eight Cents ($48,699,28) as required under the terms of the Surety Agreement. -2. . .. 17, As a r/lsult of the payment by Reliance on the bond olalm asserted by ECB, Reliance became subrogated to the rights of ECB against Defendant. 18, In January of 1997, Defendant contacted Reliance, claiming he was a business associate of Fetterman, offered to reimburse Reliance for the loss and offered to Institute a repayment pion, 1 g, Defendant claimed that he had been solicited by Fetterman to endorse the checks with Fetterman's name and signature and deposit them Into Fetterman's account at PNC, 20, Defendant admitted to signing Fetterman's name to the forged checks and depositing them Into Fetterman's PNC account. 21, Defendant was Indicted on forgery and related charges and pled guilty to the same on June 3, 1997, at docket No, 1:CR-97-236In the United States District Court for the Middle District of PeMsylvanla, for his Involvement in the above actions and similar actions, A true and correct copy of the Information and Guilty Plea Agreement ('Plea Agreement') are attached hereto and Incorporated as Exhibit C, 22, Defendant fully acknowledged responsibility for his above actions In paragraph 10, of the Plea Agreement. 23, Mr, Fetterman died on or abollt February 18, 1996 and Defendant admitted In the Plea AgrElementthat he had knowledge of this fact prior to presenting the checks Identified above, 24, Reliance has Incurred attorneys' lees In an effort to recover the amout'lts of the above loss, WHEREFORE Plaintiff Reliance Insurance Company respectfully requests that this Honorable Court enter a Judgment In Its favor against Delendantln the amount of Forty-Eight Thousand Six Hundred Ninety-Nine I"\ollars and Twenty-Eight Cents ($48,699,28), plus Interest, attorneys' feel!; and costs 01 suit. COUNT II E.st Qarollns Blnk v. Jsffrev Wlltml., 25, Parsgraphs numbered 1-24 are Incorporated herein !ly reference .alf lot forth In full, .3. I } r- i, t >. , 41. - ", . " c ~ . .. , ~ 0 ~ ... - >. . ... . .. <... c l"I . . '( I C nl 0 = ~~t<rO - .' ~ . 1 .... ~ N- , 'O..Unl< . ~ - ::lnl .... ~ , Cl 0. >.0. 0. . ~ ~ ~ .. II. ..41nl i E ::l'" ,- ] ',H, '0 ,- II'l c.c , .. nl 41 0. - ,:" '1 ~.... 41 U.... '" '. U V 41 " .. ......'~ D CC'O - I-l If> nl C nl - , :: ,~.' . '0 .... lU ~ S . c-a...... - ...OlU J: . CllCl'..::to. = -.: .' . - III '" r'l to = IF" '" '" , to CI 0. ; ... If' ... ~ ~ 4( ~ CD N (~~ ~it ~i' Ii; i ci U (- , r-- " IIlI EAST CAROLINA BANK ENGELHARD. NORTH CAROLINA 27814 ROlTTE 164 MAIN STREET (IOOI149.m'R ~ C ~ \ " t 6AX(919)91loJUI St.P 1 ~ '99& &.~ cwM otV\'. POST OfFlCE BOX 33' . (919)91'.9411 September'. 1996 Mr, Edward F, Dudley . Attorney Bonds Claim Departrnelll Relllllce Swety Company I .. Pena Center Plaza (1 J Phlllldelphla, PA 10103 1 / CLAIM NO: E96.QI,62 INSURED: The East Carolina Bank BOND: BI91 2636 Dear Mr, Dudley: I have enclosed fonn BC-loo ED, as proof of claim as requested. I have also ellQlosed; a copy of the Subpoena for the original checks; copies of Ihe three counterfeited checks; a copy of a recular check oft' the account of Cove Realty; copies of the Ihree affidavits of forgel)' siped by Mr, !loG Sansolta on the .c.- behall' of Cove Realty; a copy of the letter where PNC Bank retuscd payment; IIId copies of comspondence with Ihe FBI. The reference to retu.ming items with or without enlly Is a tenn used with respect 10 the reI1Im of ilems among banks through the Federal Reserve Bank, With enlly meanlng lhat we have presented the return items in such a manner as to cause Ihe Federal Reserve Bank 10 debit the bank's account lhatthe checks are being rell1med and give our bank Immediate credit. Generally reserved for when the bank receiving the rell1m items Is at faull and are requlred tu make paymenl (Not the case in \his situation), Without enlly means we are lAsing the Federal Reserve Bank to complete the return of lhe item, however, the bank receMng the return is no obligated to pay and is only being asked to mist (This Is how we should have handled the return; however, the final outcome would not have changed), ~~w Thomas B, HeBgle, III VP Auditor &. Compliance OffIcer 'Y ,- ~ . I 1\ J Please advise me of whal other steps I need to lake, Sincerely, /O,~)l~ - ,/C# ~ffr - Z;;;"" / G ,~ J-ef{. WrtlJ,/-fQ;/ -/0/1/ "" 1..#/\ (717-7J?~.717.? 9/~)-~,,,_,.;;,, ,) 1//&'. f'~ oS' <f4fl wtttIm '?I'-70-?1?.J --,; 4:c.I.(t,./ 7:./1..' ~" I " 7..' -, ~~~"~f'-!.J/'~-x~~/ '.'.. .... .....0,)" ,.' . -,,, .~ ~ ft<.11 {'j;t'11"'t(ll1'7 ."~t"".fM'~ (. ( RELEASE ANl> ASSIGNMENT WHERE/\!, Relianco Innurance Ca11JMy .n. b.nd IMued I. 'l11e rAnt Carolina Bank (h.rolllllU.r c.U.d lh. Surelyll. lliI'.ty .f D1qelhard. Nentll CaroUI\Il .fl..II.. July 23/ 1995 WHElIEAS, said b.nd a,ro.. t. Indemnify Ih. wurod l.r t..... .u.talntel by It, am... .th.r Ihln,., due I. Forge1'Y subjflCt to.. $25/000 deductible WHEREAS, the In.ured repr...nl' Ill. be a laet lhat It hat ....talned a I... I"'d.r ..Id boftd duo t. (0) l'or<j8ry In tho .um.f Sixty-&l9ht 'l1"",aand Six HwUred Ninety-Nillll and 28/100 Dollan, .. m.ra fully app.n In and by It. proof .f 10.. ....rn t. on th. 5th day.f Septmtler II 96 (h.r'lnalter call.d lh. lnaurtd). NOW, THElIErORE, In .on.ld.rallon of tb. paym.nl of tII. .um.f $43/699.28 Forty-'!1lree 'Ihous.vod Six Hundred Ninety-Nine and 28/100 collar. inclusive of the deductible to the Insured by the &n'ety / the r0C9ipt whereof is hereby acknowleclged I (I) TIl. luured r.I.... and dl.olar:t... and forevar reI.... and dla- ."'" lb.lIurMJ' lrolIluy ud allllablllty, olaw., dtmaadll, dtbta, du.., ICClllUllll, ...... or ..us.. olalrtloa of wlataoe... kIDd Or IIIlllrt tllal It _ bu, bat had, Or 111Io' b.real1er bava UDder Hid bond b, r._ 01 lb. atorlllllllttontcl I..., 10 ear .. It Ia. beetI dlaco.ered to dat. by ",.lllIured. (II) TIlt> luured hat a"lIned ...d do.. btrabJ a"lID, ..U. tnaal.r..d III ova. to tba IlurllJ all Ita rllblll, 1111, and Inter..I III r.latloa to .., and aU Itllll. olalmed III and b, th. Hid prool 011..., &lld aU 1II0n., lhat may be r_.ered b, ....oa lb.rlOf. (II) TIlt INured baa appolnled and ciotti berabJ Ippolllt tbt 8IIr,ty II Ita altornl)'-Ill-ealrt to.... .......nd, rlll.I.., r,celpl lor, &lid .... for Ia Ill. 11&11I,01 lb. IDNred or 1b,1Iur'1J, &lid Iak. ao,..d aU Iawflll WI" and 11I_ 10. lb. 'ICO"'" 01 an, and all Neb 'WD. ollllOllI)' &Ilb1l1urllJ" flIlI-', IN WITHESI WJl1:REOr, lbIlllIur.d b.. ..used th.., pre.lllta to be IllIculed by II. ~..lborlaed oltIcer . &lid Ita GO_ta ..1 ~ rllllllo ~FLdulY&llt'Ied b~lta (".. _ ATTEST tJ;',~ ..J1 m~A ~ F..st Carolina Bank BY 1---& 1L',n:.. m ./J.I'. . ~ Stata 01 W. c:-. ) ... COWIlY05A"'c.. ) )~,.:L. A.D. !tll. P.raOlllUy PP.~~"<t';1'1l'''''~(, Vl''''Iu....t- L I..,,'ol.;dir r"plell..ly lb. ,~. ,(jjI - ~~1If.ul4 . ' .... , the ......r(.) ..d ..Itr{.) the ro....1Dc InalJ'llll\..t,lUIll acllllvwlqed lb, 11m. 10 be (bla) IIIlIr b.. alrt and dttd alUllba Ir.. a.. aIYI da... '" the ..Id .0rDerallon.. J .~ 4~ ,NotarrPubllo (U aolmowltdlm.nl by Indlvldual'etIlil'llllt.'Ib. worda IIIldtreeortcl., o ID ..It I... due to dl.honllty of .mploy.., .tat, 11Im. of amploy., and bla poelllon. .. U ollie.. .lplnl not rtlllltarly authorized 10 IXlClIIt. tbt reI.... cop, of R_Iu- Iloa ", lh, Board 01 Dlr.el~n aUlhorlzlnl ...eb ollleer m...t be attached. 'COHlum I , i I I . DMlll TIS IN THI UNITED STATES DISTRICT COURT 'OR THI MIDDLB DISTRICT or PENNSYLVANIA v. ) CR. NO. ) (Judll. ) ll: CR llCRAMBO -97-236 r:IU:D HARJ:lI.'::Pllr~G PI> :If", ' '.', : . UNtTBD STATES or AMERICA JB"RIY SCOTT WALTMAN I N r 0 R MAT ION COW!. t:. I TIS UNITBD STAT.S ATTORNBY CKARGIS THAT. ~:rYE,~ EA,CLERK - epUly lork 1. The Mellon BanK and the Wells Fargo Bank, N.A are t.nancial institutions, as defined by Title 18, United States Code, Section 20, with deposits insured by the Federal Deposit Insurance Corporation. 2. Beginning on or about March 4, 1996 and continuing up to on or about May 13/ 1996, the defendant, JBF'RBY SCOTT WALTMAN, devised a scheme or artifice to defraud the Mellon BanK and the Wells Fargo BanK, N.A, and to obtain monies, funds and other property owned by and under the custody and control of the Mellon BanK and the Wells Fargo BanK, N.A, by means of false and fraudulent pretenses, representations and promises. 3. It was part of the scheme and artifice to defraud and to obtain money, funds and other property by means of false pretenses, representations and promises that the defendant would and did obtain checks of his deceased uncle, John K. Fetterman, f?r an account at Wells Fargo Bank, N.A., write checks drawn on said account and payable to Parasoft Per wholly owned and controlled by the defendant, depollit: said check. into a business checking account maintained by the detendant, d/b/a parasott Development Group, at the Mellon Bank, and withdraw funds from said account on various dateR. 4. On or about March 1. / 1996/ within the Middle District of Pennsylvania, the defendant, JBPPRIY SCOTT WALTMAN, executed and attempted to execute the scheme and artifice to defraud and to obtain money, funds and other property by means of false pretenses, representations and promises, as set forth above in paragraphs 1 through 3/ in that he did place an order for the printing of checks on the account of John H. Fetterman at the Wells Fargo Bank, N.A., resulting in the shipping of said checks to John H. Fetterman at defendant/s home address, 4152 Kittatinny Drive, Mechanicsburg, Pennsylvania, when in fact, as the defendant well knew, John H. Fetterman had died on February 18, 1996. 5. On or about March 1/ 1996, in the Middle District of pennsyl vnia, the defendant / JBl!'!l'R'tY SCOTT WALTMAN, did deposit check number 9781 drawn on the account of John H. Fetterman at the Wells Fargo Bank, N.A., in the amount of $19,000, into a business checking account maintained by the defendant, d/b/a parasoft Development Group, at the Mellon Bank. 6. On or about March 5, 1996/ in the Middle District of Pennsylvania, the defendant, JEPFREY SCOTT WALTKAH, did deposit check number 9785 drawn on the account of John H. Fetterman at the Wells Fargo Bank, N.A., in the amount of $7,500, into a business checking account maintained by the defendant, d/b/a 2 Parasote Development Gr.oup, at the Mellon Bank. 7. On or about March 5/ 1996, in the Middle District of Pennsylvania, the defendant, JEFPRIY SCOTT WALTMAN, did depolit check number 9796 drawn on the account of John H. Fetterman at the Wells Fargo Bank, N.A., in the amount of $14,500, into a business checking account maintained by the defendant, d/b/a Parasoft Development Group, at the Mellon Bank. 8. On or about March 13, 1996/ in the Middle District ot Pennsylvania, the defendant, JlrrRBY SCOTT WALTMAN, did depolit check number 9783 drawn ori the account of John H. Fetterman at the Wells Fargo Bank, N.A., in the amount of $3,500, into a business checking account maintained by the defendant, d/b/a Parasoft Development Group, at the Mellon Bank. 9. On or about March 29, 1996, in the Middle District ot Pennsylvania, the defendant, JIPFREY SCOTT WALTMAN, did deposit check number 9786 drawn on the account of John H. Fetterman at the Wells Fargo Bank, N.A., in the amount of $19,000/ into a business checking account maintained by the defendant, d/b/a Parasoft Development Group, at the Mellon Bank. 10. The defendant did forge or cause to be forged the signature of John H. Fetterman on the checks deposited into the Mellon Bank account! as set forth above in pa~agraphs 5 through 9. 11. The checks deposited on March 4 through March 13, 1996, as set forth above in paragraphs 5 through 8, were honored and paid by the Wells Fargo Bank, N.A., resulting in a lOls to the estate ot John H. Fetterman in the amount at $44,500. 3 Coun t II 't'H1 UNITID /lTATlS ATTORNEY 'URTHER CHARGBS THAT I 1. On or about May 10, 1996/ May 20, 1996, and May 31, 1996, checks in the amount of $22,700, $22,437.66, and $23,561.92, respectively, drawn on the account. of Cove Realty, Inc., of Nag's Head, North Carolina, at The East Carolina Bank, were deposited to the account of the defendant, JE"REY SCOTT WALTMAN. at PNC Bank, N.A., Camp Hill, Pennsylvania, within the Middle District of Pennsylvania. 2. The checks set forth above, in paragraph 1 of Count II. were honored and paid by The East Carolina Bank and credited to the account of the defendant at PNC Bank, N.A., in the ordinary course of business. 3. The makers' signatures on the checks Bet forth above, in paragraph 1 of Count 11/ were for.ged by the defendant, resulting in a lOBS to The East Carolina Bank in the amount of $68,699.28. 4. The East Carolina Bank and PNC Bank, N.A. ,are financial institutions, as defined by Title 18/ United State. Code, Section 20/ with deposits insured by the Federal Deposit Insurance Corporation. S. On or about May 31, 1996, in the Middle District of Pennsylvania, the defendant, JI"RIY SCOTT WALTMAN. did engage in a monetary transaction in criminally derived 5 Count. III THIl UNITED STATIlS ATTORNIY FURTHBR CHARGES THAT I The personal property listed below was involved in the offenses alleged above in Counts I and II of this Indictment or is property traceable to such property, and constitutes or is derived from, proceeds the defendant, JEPFRBY SCOTT WALTMAN, obtained, dir~ctly or indirectly, as the result of such offenses: 1. 1994 Nissan Pathfinder automobile, bearing VIN JN8HD17Y3RW244779/ 2. 1980 Ericson sailboat named the "North Star/. bearing hull identificat.ion number ERY30543M8; and 3. 23 foot Precision sailboat bearing hull identification number PCW23200E889, with Performance trailer, bearing serial number 40ZSP2328JPPT2012. By virtue of the commisoion of the offenses charged in Counts I and II of this Indictment by the defendant, JBPPRIY SCOTT WALTMAN, any and all interest the defendant may have in the above-described property is vested in the United 5tates and is hereby forfeited to the United States pursuant to Title 18, United States Code, Section 982(a) (1) and (2) and Title 21, United States Code, Section 853. In the event t~at any of the personal property involved in the offenses all~ged above in Counts I and II of this Indictment or traceable to such property, or any property constituting or derived from proceeds of auch offenses, as a result of any act or omission of the defendant: (a) cannot be located upon exercise of due diligence, 7 DMBITBS UNITED STATER DISTRICT COURT rOR THE MIDDLB DISTRICT or PENNSYLVANIA UNITED STATES or AMERICA llc.i..,CR. - 97 - 236 ' ) (Judge ) . r:/LED ) '.I/If:!r~I';:;"" I.~( ) . '.4; I:"~ v. JEPFREY S, WALTMAN 'f, /. .r'I, MARY i:: Ij'~,ivj',;,_, Per . ,., .,Lt::A:c LL III A A G R E EMil N T "__.. D~OlJ::, ~::":r--- The following plea agreement is entered into by and between the United States Attorney for the Middle District of Pennsylvania and the above-captioned defendant. Any reference to the United States or to the Government in this Agreement shall mean the office of the United States Attorney for the Middle District of Pennsylvania. The defendant and counsel for both parties understand that the United States Sentencing Commission Guidelines which took effect on November 1, 1987/ as amended from time to time, will apply to the offense or offenses to which the defendant is pleading guilty, since the offense or offenses were completed af'~er the effective date of the implementation of the Guidelines. /---", 1.' The defendant agrees to waive indictment by a grand j jury and plelld Sl\.lilty to a felony information which will be filed against the defendant by the United States Attorney for the Middle District of Pennsylvania. That information will charge the defendant with a violation of Title 18, United States Code, Section 1344, bank fraud, with a violation of Title 18, United States Code, Section 195'/ engaging in monetary transactions in property derived from specified unlawful activity, and with a criminal forfeiture count under Title 18, United States Code, Slction 982. The maximum penalty for bank fraud is imprisonment for A period of 30 years and/or a fine of $1,000,000, a term of 8uplrvi.ed release to be determined by the court, the costs of prosecution, denial of certain federal benefits, and an a......m.nt in the amount of $100. The maximum penalty for engaging in monetary transactions in property derived from specifi.d unlawful activity is imprisonment for a period of 10 years and/or a fine of $250/000/ a teIm of supervised release to be d.termined by the court, the costs of prosecution, denial of certain federal benefits, and an assessment in the amount of $100. At the time the guilty plea is entered, the defendant shall admit to the Court that the defendant is, in fact, guilty of the offenses charged in the information and that the prop~r.ty whioh is the subject of the criminal forfeiture count, which is more particularly described in paragraph 13 hereof, constitutes property involved in the violation of Title 18, United States Code, Section 1957 or traceable thereto. 2. The defendant also understands that the Court must impose a term of supervised release following any sentence of imprisonment exceeding one (1) year/ or when required by statute. The Court may require a ~~rm of supervised release in any other case. 3. The defendant understands that the total, maximum possible sentence for all charges is the combination of penalties desoribed above; that is, 40 years in prison andlor fines 2 totalling $1,250,000/ a term of supervised release to be determined by the Court/ the costs of prosecution, denial or certain federal benefits, and assessments totalling $200. 4. The defendant understands that the Court may impose a fine pursuant to the Sentencing Reform Act of 1984. The willful failure to pay any fine imposed by the Court, in full, may be considered a breach of this plea agreement. Further, the defendant acknowledges that willful failure to pay the fine may subject the defendant to additional criminal violations and civil penalties pursuant to Tile 18/ United States Code, Section 3611, et seq. S. The defendant understands that under the alternative fine section of Title lB. United States Code, Section 3571, the maximum fine quoted above may be increased if the District Court finds that any person derived pecuniary gain or suffered pecuniary loss from the offense and that the maximum fine to be imposed, if the Court elects to proceed in this fashion, could be twice the amount of the gross gain or twice the amount of the gross loss resulting from the offense. 6. If the Court awards a fine or restitution as part of the defendant's sentence and the sentence includes a term of imprisonment, the defendant agrees to voluntarily enter the United States Bureau of Prisons administered program known as the Inmate Financial Responsibility Program through which the Bureau of Prisons will collect up to 50 percent of the defendant's prison salary and apply those amounts on the defendant's behalf to the payment of the outstanding fine and restitution orders. 3 7. The defend~nt understands that the Court will impose a special assessment of $200 pursuant to the provisions of Title la, United States Code, Section 3013. No later than the date of sentencing, the defendant or defendant's counsel shall mail a check in payment of the special assessment directly to the Clerk, United States District Court Middle District of Pennsylvania. This check should be made payable to .Clerk, United States District Courtu. Counsel for the defendant shall provide a copy of the special assessment check to the United States Attorneys Office for the Middle District of Pennsylvania at the time of oentencing certifying compliance with this provision of the plea agreement. A failure to make this payment, or payment with insufficient funds, will be treated as a breach of this plea agreement and may result in further prosecution or the filing of additional criminal charges. 8. The defendant agrees, as a part of this Agreement, to submit to interviews by the United States Attorney Office's Financial Litigation Unit regarding the defendant's financial status and to complete and submit a financial statement, under oath, not later than two weeks after the date of this plea agreement. 9.. The United States Attorney I s Office for the Middle District of Pennsylvania agrees that it will not bring any other criminal charges against the defendant directly ariSing out of the defendant's involvement in the offense described above. However, nothing in this agreement will limit prosecution for criminal tax charges, if any, arising out of those offenses. 4 ~lO. Counsel for the defendant has affirmatively indicated ,; to the United States Attorney's Office that the defendant not only wishes to enter a plea of guilty, but clearly demonstrates a recognition and affirmative acceptance of responsibility as required by the sentencing guidelines. Additionally, the defendant has assisted authorities in the investigation and prosecution of his own misconduct by taking the following step(a) : Timely notifying authorities of his intention to enter a plea of guilty thereby permitting the government to avoid preparing for trial and permitting the court to allocate its resources efficiently. Accordingly, if the defendant can adequately demonstrate this acceptance of responsibility to the government, the United States Attorney's Office will recommend that the defendant receive a three-point reduction in the defendant's offense level for acceptance of responsibility. The failure of the Court to find that the defendant is entitled to this three-point reduction shall not be a basis to void this plea agreement. : 1~:,' At the time of sentencing, the United States will .-.. recommend that the Court impose the minimum prison term within the applicable guideline range. 12. If probation or a term of supervised release is ordered, the United States will recommend that the Court impose the following special conditions: (a) That the defendant be prohibited from possessing a firearm or other dangerous weapon; (b) That the defendant make restitution, 5 payment of which shall be in accordance with a schedule to be determined by the Court; (c) That the defendant pay any fine in accordance with a schedule to be determined by the Court; (d) That the defendant be prohibited from incurring new credit charges or opening additional lines of credit without approval of the Probation Office unless the defendant is in compliance with the payment schedule; and (e) That the defendant be directed to provide the Probation Office and the United States Attorney access to any I'equested financial information. 13,' The defendant has agreed to cooperate with the United States in the investigation and prosecution of other suspected violations of the law. Upon completion of the cooperation, if the United States believes the defendant has provided "substantial assistance" pursuant to Title 18, United States Code, Section 3S53(e) or Section SK1.1 of the United States Sentencing Guidelines, the United States may request the Court to depart below any applicable mandatory minimum sentence or the guideline range when fixing a sentence for this defendant. In the event that the defendant renders substantial assistance, the United States specifically reserves the right to make a specific recommendation of a term of months to the Court However, the defendant acknowledges that the United States may decline to exercise its discretion and recommend a departure if the defendant breaches any of the provisions of this Agreement, or commits any other offense while awaiting plea or sentencing. 6 / 14. The defendant stated that the defendant desires to end all pending civil and criminal matters in the Middle District of Pennsylvania and, in order to avoid needless litigation and the expense attendant thereto, agrees to settle the civil and criminal matters arising out of his use of proceeds of a specified unlawful activity to purchase a 1994 Nisaan Pathfinder automobile, bearing VIN JN8HD17Y3RW244779, a 19BO Ericson sailboat named the "North Star," bearing hull identification number ERYJOS43M8, and a 23 foot precision uailboat bearing hull identification number PCW23200E889, with Performance trailer, bearing serial number 40ZSP2328JPPT2012. The defendant further agrees to the following: (a) Criminal forfeiture of the said 1994 Nissan Pathfinder automobile, bearing VIN JN8HD17Y3RW244779, 1980 Ericson sailboat named the ~North Star,. bearing hull identification number ERY30543M8, and 23 foot Precision sailboat bearing hull identification number PCW23200E889, with Performance trailer, bearing serial number 40ZSP2328JPPT2012; (~\ The immediate entry of the preliminary order of forfeiture; (c) The wai\er of the defendant's right to the personal service of all process and the appointment, of James J. West, Esquire, 105 North Front Street, Harrisburg, Pennsylvania 17101 as the defendant's agent for service of all process; (d) The waiver of the defendant's right to appear and contest any portion of the forfeiture proceedings, including but not limited to, any motion or proceeding for substitute assets I (e) That no other person or entity has In equitable or legal interest in the property, real or personal, subject to forfeiture pursuant to this agreement; (f) To sign any and all documents necessary to effectuate the forfeiture and costs associated 7 therewith I To the immediate payment of $300 for costs of the forfeiture, and submits said amount with the signed plea agreement. 15. By this A':iIreement, the defendant agrees to forfeit all (gl interests in the properties listed in paragraph 13 above and to take whatever steps are necessary to pass clear title to the United States. These steps include but are not limited to surrender of title, the signing of a consent decree, a stipulation of facts regarding the transfer and basis for the forfeitures and signing any other documents necessary to effectuate such transfers. 16. The defendant agrees to make full restitution in accordance with a schedule to be determined by the Court. The amount of the loss resulting from the defendant's actions will be determined at the pre-sentencing hearing. 17. The defendant also understands that the United States will provide to the United States Probation Office all information in its possession which the United States deems relevant regarding the defendant's background, character, cooperation, if any, and involvement in this or other offenses. 18. The defendant understands that pursuant to the United States District Court for the Middle District of Pennsylvania "Policy for Guideline Sentencing" both the United States and defendant must co~nunicate to the probation officer within fifteen (15) days after disclosure of the pre-sentence report any objections they may have as to material information, sentencing classifications, sentencing guideline ranges and policy . .#IIW_. 8 statefllents contained on or omitted from the report. The defendant agrees to meet with the United States at least five (5) days prior to sentencing in a good faith attempt to resolve any substantive differences. If any issues remain unresolved, they shall be communicated to the probation officer for his inclusion on an addendum to the pre-sentence report. The defendant understand~ that unresolved substantive objections will be decided by the Court at the sentencing hearing where the standard of proof will be a preponderance of the evidence. Objections by the defendant to the pre-sentence report or the Court's rulings, will not be grounds for withdrawal of a plea of guilty. 19. The defendant understands that pursuant to the Victim and Witness protection Act (18 U.S.C./ Section 3521/ et sea.) and the regulations promulgated under the Act by the Attorney General of the United States: (a) The victim of a crime is given the opportunity to comment on the offense and make recommendations regarding the sentence to be imposed. The defendant also un1erstands that the victim's comments and recommendations may be different than those of the parties to this agreement. (b) The federal prosecutor is required to consult with victims of serious crimes to obtain their views regarding the appropriate disposition of the case against the defendant and make the information regarding sentencing known to the Court. The defendant understands that the victim's opinions and recommendations may be different than those presented by the United States as a consequence of this agreement. (c) The federal prosecutor is required to "fully advocate the rights of victims on the issue of restitution unless such advocacy 9 would unduly prolong or complicate the sentencing proceeding/" and the Court is authorized to order restitution by the defendant including. but not limited to, restitution for property loss, personal injury or death. 20. At the time of B~ntencing, the United States will be permitted to bring to the Court's attention, and the COUI't will be permitted to consider, all relevant information with respect to the defendant's background, character and conduct including the conduct that is the subject of the charges which the United States has agreed to dismiss, and the nature and extent of the defendant's cooperation, if any. The United States will be entitled to bring to the court's attention, and the Court will be entitled to consider, any failure by the defendant to fulfill any obligation under this Agreemerlt. 21. The defendant understands that the Court is not a party to and is not bound by this Agreement or any recommendations made by the parties. Thus, the Court is free to impose upon the defendant any sentence up to and including the maximum sentence of imprisonment for 40 years and/or a fine of $1/250/000, a term of supervised release, the costs of prosecution, denial of certain federal benefits and assessments totalling $200. 22. If the Court imposes a sentence with which the defendant is dissatisfied, the defendant will not be permitted to withdraw the guilty plea for that reason alone, nor will the defendant be permitted to withdraw the plea should the Court decline to follow any recommendations by any of the parties to this Agreement. 10 23. The defendant agrees to cooperate fully with the United States. The defendant understands and agrees that complete and truthful cooperation is a material condition of this agreement. Cooperation shall include providing all information known to thft defendant regarding any criminal activity, including but not limited to the offenses described in this agreement. Cooperation will also include complying with all reasonable instructions from the United States, submitting to interviews by j,nvestigators and attorneys at such reasonable times and places to be determined by counsel for the United States and to testify fully and truthfully before any grand juries, hearings, trials or any other proceedings where the defendant'S testimony is deelned by the United States to be relevant. The defendant understands that such cooperation shall be provided to any state, local and federal law enforcement agencies designated by counsel for the United States. The United States agrees that any statements made by the defendant during th~ cooperation phase of this agreement shall not be used against the defendant in any subsequent prosecutionG unless and until there is a determination by the Court that the defendant has breached this agreement. However, the United States will be free to use at sentencing in this case any of the statements and evidence provided by the defendant during the cooperation phase of the agreement. Moreover, the parties agree that, although the defendant's statements made during the cooperation phase cannot be used against the defendant in any subsequent criminal prosecuti~n, this provision shall not preclude the United States from requiring the defendant to lubmit 11 -,,, to f:1, .tl)f: e1:'... elle .ielv f:L lit I!I 'Ie '4f: by cle~ efl/e ./0 ellet 1lf:1I C'4./ f:1, 'l'1,e 41)f: .tll '1If: e Sp cle~' C'.t....t./ Cite 0 fl/4y ee(j ef/cJ. 01:' ,to ~ f: he ~ 'l' 41)f: 4(jfl/ ede~ h4t: ct..1 1:'.t4.1 IvCl.t1ol JII.t 4.1 ,., .'. '''.. .c, " . "'" .... .'. ." ..., .",'. ". c'" Ilt:.t el)C'.:I..t.1 lJllct 491:' P1:' IvfJ > " .. 'h. .. '" oc. 'ch to t f. Oh.._ f:h coo lit:41<o t:o eel rn . he "'."~"o. Co -.. .... '., '.'" "0 be. .. '. c" '" ....... " '" c" '. 'c... '0' "" "11 o. Ph '.. "" c" b 'cc " 'h. '., h... '.. ".b '.. .', 0",. 'c'b ..,. .... ... ,. · h.. 'h., '. c ., 'c 0., .._.. ". b.'. COo .. . , ", "'. '0 be ... ." " . .... '0 b "h .', ' '. 'c, '." eo" ..c, cCh '., .. '... 0 .., 'b" '. ' 0 0'. .. .... "J, .... '., '" ',,," ' ., '.. .. 'h .. '. o. ".... '.0 ~., >'. co'.. . '. '. c ". b "'. " .,co '.. >h 'c ". ". .'. '." .... '.. Po,,, s'. .. "" cC" "" ... · '. '.. c'P ."P '.. .'c.. "" 0., co. 'h. co..' '0 '0', > J,.. . '.. '" . 0" .cc, ..'. co, "'0 " J", <. '., .., '" .,.. '.. >>.. ' , " 1. .c, '0" ..,'." ." " 'J,. ".. 'J, .. h 'Cb 9c. o'c. '0, '.. '0. 1>0 ~'" '0 ... ~ 'J, 0', ".. ..., C"" 1>0. " '" .. 'C, ." . " '0 b" ' .0. o. '0., "" "" 'b. "" Po, 'h. c'bo. · '0, 'g ., '. "" · S "".'" '" Ob" 'b. 'b. c Sbs" ~ Oh, '.. s "'. 'Ph.. 0",. .. , '. .'" .., oc. " '" '.," .", ~ '0 · '" 0.. ... ' , · , "o.s ...' , .0 'p c. s" 0 b 's " h., '0. b. """ -'0 ... h. . . .,s ...- '., s b ,. .. _. ,.. ., c. "..., ~ "'cb '. P '., "'. c""" '.'. ." 'J" 'h · 'b. "" · P", ..". '.'. · 0, 0,. b ..g. .., "" ... c... .... '''' "s ". .... ." '.. b" , '.g 'OJ, OJ" Ob, 'b. ." '" St:4 he 4t: 4.1.1 J,ze .f9'4 OPt: 't:1, '.. .., 'b, .. · " "0 '0. .. I!Ih el)cJ. C'J, de ,z nll of' 4,z.1 41lt: 41ly t:e~ Of . I<t. be IIJl4 (j.fa '.file t:he 'lJet:h 1;-e~. .1,z h c.1o cI b e1;- ~I.I.:I. 19 I!IlJ ~ t: 12 1:'e(j 4c1fT1 l'el!l 1,19 to '.fa 41lcl "0 el!lt: I!IJb.1 1l1;-t: 4b.1 e JI!IJ, , 41l(j 41ly 4t: b1;-e 4cJ, ,..' by a preponderance of the evidence. In order to establish any breach by the defendant, the United States is entitled to rely on statements and evidence giVen by the defendant during the cooperation phase of this Agreement. 27. The parties agree that at any court hearings held to determine whether the defendant has breached this Agreement, the polygraph results and the pOlygrapher's conclusions and opinions shall be admissible. The parties also agree that such pOlygraph data shall be admissible at any sentencing hearings inVOlVing the defendant. 28. The defendant and the United States agree that in the event the Court concludes that the defendant has breached the Agreement: (a) The defendant will not be permitted to withdraw any guilty plea tendered under this agreement and agrees not to petition for withdrawal of any guilty plea; (b) 'I'he United States will be free to make any recommendations to the Court regarding sentencing in this case; (c) Any evidence or statements made by the defendant during the cooperation phase will be admissible at any trials or sentencings; (d) The United States will be free to bring any other charges it has against the defendant. 29. Nothing in this Agreement shall protect the defendant in any way from prosecution for any offense committed after the date of this Agreement, inClUding perjury, false declaration, or false statement, in violation of Title 18, United Statel Code, Section 1621, 1623, or 1001, or obstruotion of justioe, in violation of Title 18, United States Code, Seotion 1503, 1505, or 13 1510, should the defendant commit any of those offenses during the cooperation phase of this Agreement. Should the defendant be charged with any offense alleged to have occurred after the date of this Agreement, the information and documents disclosed to the United Scates during the course of the cooperation could be used against the defendant in any such prosecution. 30. Nothing in this agreement shall restrict or limit the nature or content of the United States's motions or response to any motions filed on behalf of the defendant. Nor does this agreement in any way restrict the government in responding to any request by the court for briefing, argument or presentation of evidence regarding the application of the SentenCing Guidelines to the defendant's conduct, including but not limited to, requests for information concerning possible sentencing departures. 31. Nothing in this Agreement shall bind any other federal, state or local enforcement agency. 32. This document states the complete and only Plea Agreement between the tJnited States Attorney for the Middle District of Pennsylvania and the defendant in this case, is binding only on the parties to this Agreement, supersedes all prior understandings, if any, whether written or oral, and cannot be modified other than in a writing that is signed by all parties or on the record in court. No other promises or inducements have been or will be made to the defendant in connection with this case, nor have any predictions or threats been made in connection with this plea. 14 >. -"I' ...~. fiE - r... "" .. ~ ~j2 ..:t ~.~j ~5 ' Cl :-r: i >..-:, , , f":1: <>., h ~C ~'. """:J (:"i <'n ' /. l;<-~ 6:'/';, " L., jU, , ,):I~; rfU: ~.'.. 4i, ~ (iJ1,i] i"" ;;:';) ~S'l:t.. ~') ~ (1;) d (J) "