SOUTHERN DISTRICT OF CALIFORNIA. PLEA AGREEMENT 16 v. IT IS HEREBY AGREED between the UNITED STATES OF AMERICA,

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1 1 LAURA E. DUFFY United States Attorney 2 MARK W. PLETCHER Colorado Bar # 34 3 Assistant U.S. Attorney 0 Front Street, Room 4 San Diego, California -3 Telephone: () 54-5 mark.pletcher@usdoj.gov ANDREW WEISSMANN Chief, Fraud Section BRIAN R. YOUNG LAWRENCE ATKINSON Trial Attorneys Criminal Division, Fraud Section 00 New York Ave., N.W. Washington, D.C. 005 Telephone: (2) -31 brian.young4@usdoj.gov ' BY ' FILED JAN.. - ~u.s. OCSl'RICT~ DISTRICT(W~ DEP!l!Y,! Attorneys for the United States UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA UNITED STATES OF AMERICA, Case No. -CR-0033-JLS PLEA AGREEMENT v. MICHAEL VANNAK KHEM MISIEWICZ 1 Defendant. IT IS HEREBY AGREED between the UNITED STATES OF AMERICA, through its counsel, Laura E. Duffy, United States Attorney, Mark W. Pletcher Assistant United States Attorney, and Brian Young and Lawrence Atkinson, Trial Attorneys, Fraud Section, Criminal Division ("the United States"), and defendant Michael Vannak Khem 2 MISIEWICZ, with the advice and consent of Wendy Gerboth, Esq., and 2 Mark Adams, Esq., counsel for the defendant, as follows: I.

2 1 THE PLEA 2 A. The Charges 3 The defendant agrees to plead guilty to a two-count 4 Information charging the defendant with: 5 Count 1 - Conspiracy To Commit Bribery From in or about January through in or about September, on the high seas and outside the jurisdiction of any particular district, defendant MICHAEL VANNAK KHEM MISIEWICZ ("MISIEWICZ"), a public official, Leonard Glenn Francis, and others ( 1) knowingly and unlawfully combined, conspired, and agreed to commit bribery, that is, MISIEWICZ, Francis, and others, knowingly agreed that, in return for MISIEWICZ being 1 influenced in the performance of official acts and being induced to do and omit to do acts in violation of his official and lawful duties, as opportunities arose, (a) Francis would directly and indirectly, corruptly give, offer, and promise things of value to MISIEWICZ, including cash, gifts, travel expenses, entertainment, and the services of prostitutes, and 2 2 (b) MISIEWICZ would directly and indirectly, corruptly demand, seek, receive, accept, and agree to receive and accept these things of value; and (2) MISIEWICZ and Francis took overt acts in furtherance of this conspiracy and to effect its unlawful objects, in violation of Title 1, United States Code, Sections 1 (b) (1) (A) and (C) and 1 (b) (2) (A) and (C). Plea Agreement 2 Def. Initial nf'j.~ -CR-00 3-JLS

3 1 Count 2 - Bribery Beginning in or about January, until in or about September, and continuing on the high seas and outside any particular district, defendant U.S. Navy Commander MICHAEL VANNAK KHEM MISIEWICZ, a public official, directly and indirectly, corruptly demanded, sought, received, accepted, and agreed to receive and accept things of value from GDMA and Francis, including cash, travel and entertainment expenses and the services of prostitutes, in return for MISIEWICZ being influenced in the performance of official acts, and in return for MISIEWICZ being induced to do and omit to do acts in violation of his official duties, all in violation of Title 1, United States Code, Sections 1 (b) (2) (A), (C). 1 2 B. Prosecution Of Additional Counts In exchange for the defendant's guilty plea, the United States agrees not to prosecute in federal district court any additional criminal charges against the defendant based on information now known to the United States. Nothing in this agreement, however, shields the defendant from prosecution for any act or omission not now known to the United States or committed after the date of this agreement. Should the defendant commit any federal criminal offense after the date of this agreement, the United States, at its sole discretion, will be free to prosecute the defendant for that 2 offense, move to set aside this plea agreement, and/or be relieved Plea Agreement 3 Def. Initials _.Lf1V:..J-.!...:...'~.L -CR-0033-JLS

4 1 of its obligations under this plea agreement. At sentencing in 2 this matter, the United States will move to dismiss any remaining 3 counts in cases CR0033-JLS or CR32-JLS. 4 II. 5 NATURE OF THE OFFENSE A. Elements Explained The defendant understands that the offenses to which the defendant is pleading guilty have the following elements: Count 1 - Conspiracy To Commit Bribery 1. There was an agreement between two or more persons to commit bribery; 2. The defendant became a member of the conspiracy knowing of at least one of its objects and intending to help accomplish it; and 3. One of the members of the conspiracy performed at least one overt act for the purpose of carrying out the conspiracy and effecting its unlawful objects. Count 2 - Bribery 1 1. The defendant was a public official; 2. The defendant demanded, sought, received, accepted or agreed to receive or accept something of value, in return for ( being influenced in the performance of an official act, or in return for being induced to do or omit to do an act in violation of his official duty; and 3. The defendant acted corruptly, that is, intending to 2 be influenced in the performance of an official act, or to do or omit to do an act in violation of his official duty. 2 Plea Agreement 4 Def. Initials 1J{~~~:_JY--...:.. ZR-0033-JLS

5 1 2 B. Elements Understood and Admitted - Factual Basis 3 Defendant has fully discussed the facts of this case with 4 defense counsel. Defendant admits that he has committed each of 5 the elements of the crimes and further admits that there is a factual basis for his guilty plea. Defendant agrees that the following facts, which the United States could prove beyond a reasonable doubt, are undisputed: 1. From in or about December until in or about September, defendant MISIEWICZ was a Commander in the U.S. Navy stationed in Colorado Springs, Colorado. From about January to in or about December, MISIEWICZ served as the Deputy Director of Operations for the Commander of the Seventh Fleet aboard the USS Blue Ridge, home-ported in Yokosuka, Japan. From about June 0 to about January, MISIEWICZ served at the rank 1 of Commander as the Commanding Officer for the uss Mustin, a forward-deployed Destroyer-class vessel in the U.S. Navy's Seventh Fleet, home-ported in Yokosuka, Japan. 2. As a Commander in the U.S. Navy, MISIEWICZ was a "public 2 2 official" within the definition of 1 U.S.C. 1 (a) (1). 3. As early as June, while in command of the USS Mustin, MISIEWICZ first met representatives of Glenn Defense Marine (Asia") ("GDMA"), a multi-national corporation headquartered in Singapore, with operating locations in several other countries, including Japan, Thailand, Malaysia, Korea, Hong Kong, Indonesia, Australia, Philippines, and the United States. Plea Agreement 5 Def. Initials ~ -CR-0033-JLS

6 1 4. GDMA's main business involved the "husbanding" of marine 2 vessels, a service it had provided to the U.S. Navy across Asia 3 under various contracts for over years. "Ship husbanding" 4 involved the coordinating, scheduling, and direct and indirect 5 procurement of items and services required by ships and submarines when those vessels arrive at port. Examples of these i terns and services included tugboats; fenders; port authority or customs fees; security; food; fuel; water; trash removal; collection, holding, and transfer of liquid waste ("CHT"); and transportation Leonard Glenn Francis ("Francis"), a citizen of Malaysia who resided in Singapore, was the owner, President, and Chief Executive Officer of GDMA.. In or about Summer, the U.S. Navy awarded GDMA three contracts to provide husbanding services to U.S. Navy ships and submarines at ports throughout Southeast Asia (Region 2), Australia and Pacific Isles (Region 3), and East Asia (Region 4).. Beginning in or around early and continuing until in or about September, on the high seas and outside any particular district, MISIEWICZ and Francis entered into a relationship in which Francis would give MISIEWICZ things of value, including cash, travel and entertainment expenses, and the services of prostitutes, and in return MISIEWICZ would use his position and influence within the U.S. Navy to benefit GDMA, including by providing to Francis and GDMA classified U.S. Navy ship schedules and other proprietary, internal U.S. Navy information. Plea Agreement Def. Initials W-"---"'-/-~---- -CR-0033-JLS

7 1. In furtherance of the conspiracy and to effect its 2 objects, the following overt acts, among others, were committed: a. On or about February,, GMDA and Francis paid for MISIEWICZ's stay at a luxury hotel in Manila, Philippines as well as for the services of prostitutes while there. b. On or about June,, Francis paid the expenses for MISIEWICZ's vacation, including his round-trip airfare from Japan to Kuala Lumpur and Cambodia and return to Japan, several nights at a luxury hotel in Kuala Lumpur, and an envelope of local currency. c. On or about July 4,, MISIEWICZ provided Francis with a set of classified ship schedules. d. On or about July,, Francis ed MISIEWICZ asking for ship schedules for port visits to Australia and told MISIEWICZ that he was arranging the delivery of a package to MISIEWICZ's wife. On or about July,, MISIEWICZ provided Francis with the requested classified U.S. Navy ship schedules. Francis replied, confirming he had left a designer handbag for MISIEWICZ's wife with GDMA's Country Manager in Japan. e. On or about August 2,, MISIEWICZ ed Francis advising that the USS John C. Stennis was adding a day to its port visit to Port Klang, Malaysia, and stating: "See, you ask I deliver! LoL!". 2 2 f. On or about November,, Francis arranged and paid for the vacation travel of MISIEWICZ from Japan to Phnom Penh, Cambodia, on to Singapore, and return; MISIEWICZ's mother from Plea Agreement Def. Initials lyj~.i.. ~-=---- -CR-0033-JLS

8 1 Texas to Phnom Penh and Japan, and return; and his brother from 2 Texas to Phnom Penh, and return. This trip included a three-night 3 stay by MISIEWICZ at a luxury hotel in Singapore, paid by Francis. 4 5 g. On or about December 31,, MISIEWICZ provided Francis with classified U.S. Navy ship schedules. h. On or about January,, MISIEWICZ provided Francis with classified U.S. Navy ship schedules. i. After reviewing the ship schedules sent by MISIEWICZ, on or about January,, Francis ed MISIEWICZ demanding that MISIEWICZ use his position and influence to "swing" the USS George Washington to Port Klang, Malaysia instead of Singapore. j. On or about February,, MISIEWICZ provided Francis with classified U.S. Navy ship schedules. k. On or about April,, Francis paid for MISIEWICZ to join him at an expensive dinner in Japan, followed by entertainment 1 at a nightclub. 1. On or about April,, MISIEWICZ provided Francis with updated classified U.S. Navy ship schedules. m. On or about April 2,, Francis ed MISIEWICZ airline tickets which Francis had purchased for MISIEWICZ's brother to travel from Texas to Cambodia and return. 2 2 n. On or about May,, Francis paid for MISIEWICZ's two-night stay at a luxury hotel in Singapore. Plea Agreement Def. Initials 1?vtJ/._:: _"')..-- -CR-0033-JLS

9 1 o. On o r about June,, Francis ed MI SIEWI CZ 2 asking for up dated ship s c hedules. 3 p. On or about June,, MISIEWICZ provided Francis 4 with classified U.S. Navy ship schedules. 5 q. On or about July 2,, MISIEWICZ asked Francis to make arrangements for MISIEWICZ and three of his children to travel on a two-week vacation to Singapore, Cambodia, and Malaysia. Francis paid for this trip, including the airfare (except one segment) and stays at luxury hotels in Singapore and Malaysia. 1 r. On or about September 5,, Francis paid for two nights in a luxury hotel and the services of prostitutes for MISIEWICZ in Singapore. On September, MISIEWICZ provided Francis with a long list of classified ship schedules. s 0 On or about November, 2 0, Francis arranged to pay for MISIEWICZ to travel on vacation from Japan to Malaysia, Cambodia, Singapore, and back to Japan, including stays and entertainment expenses. luxury hotel t. On or about November 2,, just prior to MISIEWICZ leaving for his next duty assignment, MISIEWICZ and another U.S. Navy officer met with Francis in Tokyo, Japan to deliver classified long-range ship schedules and to discuss who might fill MISIEWICZ's role in the conspiracy upon his departure. Unlike previous ship schedules that MISIEWICZ provided to Francis, these classified 2 schedules also included precise information related to the U.S. 2 Navy ballistic missile defense operations in the Pacific. Plea Agreement /j A H /-z._._ Def. Initials _...!.r:...:...:vv~v -CR-0033-JLS

10 1 u. Th r o ughout this conspiracy, MISIEWICZ communi, 2 Francis using clandestine ,accounts, 3 mustfive@gmail. com and lgflittlebro@gmail.com, the 4 which MISIEWICZ deleted to evade detection by law enforcement. 5 1 v. On or about July,, after receiving confidential law enforcement sensitive information from a Naval Criminal Investigative Service Special Agent to whom he was paying bribes, Francis contacted MISIEWICZ about the ongoing criminal investigations, telling MISIEWICZ: "[The] cases are closing.". The loss to the United States as a result of defendant MISIEWICZ's criminal conduct was at least as much as $5,000.. As a Commander within the U.S. Navy, entrusted by the U.S. Navy with classified information, MISIEWICZ was a public official in a high-ranking decision-making and sensitive position. III. PENALTIES The defendant understands that the crimes to which the defendant is pleading guilty carry the following penalties: Count 1 - Conspiracy A. a maximum of 5 years in prison; 2 2 B. a maximum fine of $0,000, or twice the gross gain or loss from the offense, whichever is greater; c. a mandatory special assessment of $0; D. a term of supervised release of three years ; the defendant understands that failure to comply with any of the conditions of supervised release may result in Plea Agreement Def. Initials I 1r1; V "'l..r- -CR-0033-JLS

11 revocation of supervised release, requiring the defendant to serve in prison all o r part of the term of supervised release; E. an order from the Court pursuant to 1 U.S.C. 33A that the defendant make mandatory restitution to the victim(s) of the offense of conviction, in this case the United States Navy. The defendant understands that the Court shall also order, if agreed to by the parties, restitution to persons other than the victim(s) of the offense of conviction; and F. forfeiture of any property, real o r personal, which constitutes or is derived from proceeds traceable to the offense. Count 2 - Bribery A. a maximum of years in prison; B. a maximum fine of $0,000, twice the gross gain or loss from the offense, or three times the monetary equivalent of the thing of value, whichever is greater; C. a mandatory special assessment of $0; D. a term of supervised release of three years; the defendant understands that failure to comply with any of the conditions of supervised release may result in revocation of supervised release, requiring the defendant to serve in prison all or part of the term of supervised release; E. an order from the Court pursuant to 1 U.S.C. 33A that the defendant make mandatory restitution to the victim(s) of the offense of conviction, in this case the Plea Agreement. Def. Initials Jn;i~ -CR-0033-JLS

12 1 United States Navy. The defendant understands that the Court shall also order, if agreed to by the parties, restitution to persons other than the victim(s) of the offense of conviction; and F. forfeiture of any property, real or persona, which constitutes or is derived from proceeds traceable to the offense. IV. DEFENDANT' S WAIVER OF TRIAL RIGHTS The defendant understands that, by entering into this guilty plea agreement, he knowingly and voluntarily waives the right to: A. B. c. D. E. Continue to plead not guilty and require the government to prove the elements of the crime beyond a reasonable doubt; A speedy and public trial by jury; The assistance of counsel at all stages of trial; Confront and cross-examine adverse witnesses; Present evidence and have witnesses testify on behalf of the defendant; 1 F. Not testify or have any adverse inferences drawn from the failure to testify; G. Assert any rights and defenses defendant may have under the Excessive Fines Clause of the Eighth Amendment to the United States Constitution to any forfeiture of property in this proceeding or any related civil or administrative proceeding; and H. Assert any legal, constitutional, statutory, regulatory, and procedural rights and defenses that he may have under any source of federal law, including among others challenges to personal jurisdiction, extraterritoriality, statute of limitations, venue, and the form and substance of the Information, including any claim of multiplicity or duplicity. 2 V. 2 DEFENDANT ACKNOWLEDGES NO PRETRIAL RIGHT TO BE PROVIDED WITH IMPEACHMENT AND AFFIRMATIVE DEFENSE INFORMATION Plea Agreement Def. Initials uv.~ -CR-0033-JLS

13 The United States represent s that any information establishing the factual innocence of the defendant known t o the undersigned prosecutors in this case has been turned over to the defendant. The United States will continue to provide any such information establishing the factual innocence of the defendant. The defendant understands that if this case proceeded to trial, the government would be required to provide impeachment information relating to any informants or other witnesses. addition, if the defendant raised an affirmative defense, the government would be required to provide information in its possession that supports such a defense. The defendant acknowledges, however, that by pleading guilty he will not be provided this information, if any, and the defendant also waives the right to this information. Finally, the defendant agrees not to attempt to withdraw the guilty plea or to file a collateral attack based on the existence of this information. VI. DEFENDANT'S REPRESENTATION THAT GUILTY PLEA IS KNOWING AND VOLUNTARY The defendant represents that: A. The defendant has had a full opportunity to discuss all the facts and circumstances of this case with defense counsel and has a this plea. clear understanding of the charges and the consequences of The defendant understands that, by pleading guilty, he may be giving up and rendered ineligible to receive valuable In 2 government benefits and civic rights, such as the right to vote, 2 the right to possess a firearm, the right to hold any office of 1t0=c.!_'-=-r-- Plea Agreement Def. Initials -CR-0033-JLS

14 honor, trust, or profit under the United States, and the right to 1 serve on a jury. The defendant further understands that the 2 3 conviction in this case may subject him to various collateral 4 consequences, including but not limited to deportation, removal or 5 other adverse immigration consequences ; revocation of probation, parole, or supervised release in another case; and suspension or revocation of a professional license, none of which will serve as grounds to withdraw the defendant's guilty plea; B. No one has made any promises or offered any rewards in return for this guilty plea, other than those contained in this agreement or otherwise disclosed to the Court; c. No one has threatened the defendant or the defendant's family to induce this guilty plea; and D. The defendant is pleading guilty because in truth and in fact the defendant is guilty, and for no other reason. 1 VII. AGREEMENT LIMITED TO U.S. ATTORNEY'S OFFICE SOUTHERN DISTRICT OF CALIFORNIA AND THE FRAUD SECTION, CRIMINAL DIVISION, UNITED STATES DEPARTMENT OF JUSTICE 2 2 This plea agreement is limited to the United States Attorney's Office for the Southern District of California and the Fraud Section, Criminal Division, U.S. Department of Justice, and cannot bind any other federal, state or local prosecuting, civil, administrative, or regulatory authorities, although the United States will bring this plea agreement to the attention of other authorities if requested by the defendant. Plea Agreement Def. Initials -Jn~""J..,_,t'--~--- -CR-0033-JLS

15 1 VIII. 2 APPLICABILITY OF SENTENCING GUIDELINES 3 The defendant understands that the sentence imposed will be 4 based on the factors set forth in 1 U.S.C. 3553(a). The 5 defendant understands further that in imposing the sentence, the sentencing judge must consult the United States Sentencing Guidelines ("Guidelines") and take them into account. defendant has discussed the Guidelines with defense counsel and understands that the Guidelines are only advisory, not mandatory, and the Court may impose a sentence more severe or less severe than otherwise applicable under the Guidelines, up to the maximum in the statutes of conviction. The The defendant understands further that the sentence cannot be determined until a presentence report has been prepared by the U.S. Probation Office and defense counsel and the United States have had an opportunity to review and challenge the presentence report. Nothing in this plea agreement shall be construed as limit i ns the United State.c;;'s d nt.y t.o provirle r:omplete and accurate facts to Court and the U.S. Probation Office. IX. SENTENCE IS WITHIN SOLE DISCRETION OF JUDGE This plea agreement is made pursuant to Federal Rule of Criminal Procedure (c) (1) (B). The defendant understands that the sentence is within the sole discretion of the sentencing judge. The United States has not made and will not make any representation as to what sentence the defendant will receive. The defendant understands that the sentencing judge may impose the maximum sentence provided by statute, and is also aware that any estimate of the probable sentence by defense counsel is a prediction, not a Plea Agreement Def. Initials J1f;V,'Jr--- -CR-0033-JLS

16 1 promise, and is not binding on the Court. Likewise, the 2 recommendation made by the United States is not binding o n the 3 Court, and it is uncertain at this time what the defendant's 4 sentence will be. The defendant also has been advised and 5 understands that if the sentencing judge does not follow any of the parties' sentencing recommendations, the defendant nevertheless has no right to withdraw the plea. A. X. PARTIES' SENTENCING RECOMMENDATIONS Sentencing Guideline Calculations Although the parties understand that the Guidelines are only advisory and just one of the factors that the Court will consider under 1 U.S.C. 3553(a) in imposing a sentence, the parties will jointly recommend the following Base Offense Level, Specific Offense Characteristics, and Adjustments and Departures under the Guidelines, effective November 1, : 1 Base Offense Level [USSG 2C1.1(a) (1)] Special Offense Characteristics - More Than One Bribe [USSG 2C1.1(b) (1)] + 2 Loss to the United States ($5,000) [USSG 2C1.1(b) (2) and 2B1.1 (b) (1) (D)] High-Ranking and Sensitive Position [USSG 2Cl.l (b) (3)] Significant Disruption of Gov't Function [USSG 5K2.] Acceptance of Responsibility [USSG 3E1.1] Resulting Offense Level Plea Agreement Def. Initials '1[t1'1-- -CR-0033-JLS 2

17 1 B. Acceptance of Responsibility 2 Notwithstanding paragraph A above, the United States will not 3 be obligated to recommend any adjustment for acceptance of 4 responsibility if the defendant engages in conduct inconsistent 5 with acceptance of responsibility including, but not limited to, the following: c. 1. Failing to truthfully admit a complete factual basis as stated in the plea at the time the plea is entered, o~ falsely denying, or making a statement inconsistent with, the factual basis set forth in this agreement; 2. Falsely denying prior criminal conduct or convictions; 3. Being untruthful with the government, the Court or probation officer; 4. Materially breaching this plea agreement in any way; or 5. Concealing or assisting any person with the concealment of any assets that would otherwise be available to satisfy any financial obligation imposed by the Court. Further Adjustments and Sentence Reductions Including Those Under 1 U.S.C The parties agree that defendant will not request or recommend additional downward adjustments and departures, including criminal history departures under USSG States Sentencing Guidelines. 4A1.3, pursuant to the United The defendant may, however, request Plea Agreement Def. Initials--~---"--<--..:...'~-' CR-0033-JLS

18 1 2 o r recommend a sentencing variance pursuant to 1 U.S.C. 3553(a), and the United States may oppose any such request for a variance. 3 D. No Agreement As To Criminal History Category 4 The parties have no agreement as to the defendant's Criminal 5 History Category. E. "Factual Basis" And "Relevant Conduct" Information The parties agree that the facts in the "factual basis" paragraph of this agreement are true, and may be considered as "relevant conduct" under USSG 1B1.3, and as the nature and circumstances of the offense under 1 U.S.C. 3553(a) (1). F. Parties' Recommendations Regarding Custody The parties agree that the United States will recommend that 1 the defendant be sentenced within the advisory guideline range as calculated by the parties pursuant to this agreement. G. Special Assessment/Fine/Restitution 1. Special Assessment The parties will jointly recommend that defendant pay a special assessment in the amount of $0.00 per felony count of conviction to be paid forthwith at time of sentencing. The special assessment shall be paid through the office of the Clerk of the District Court by bank or cashier's check or money order made payable to the "Clerk, United States District Court." 2. Fine 2 The parties have no agreement as to what fine, if any, the 2 defendant will be sentenced to pay. Plea Agreement 1 Def. Initials _ryyw,..:..l._~ =-'l---' CR-0033-JLS

19 1 3. Restitution 2 The defendant agrees to the entry of a restitution order in 3 the full amount of the victim(s)' losses, as determined by the 4 Court at the time of sentencing, pursuant to 1 U.S.C. 355, 5 33A(c) (1) (A) (ii) and 34 (f) (1) (A). As of the date of the entry of this plea agreement, the parties agree that the loss to the U.S. Navy occasioned by defendant's criminal conduct was $5,000. The defendant agrees that any payment schedule imposed by the Court is without prejudice to the United States to take all actions and take all remedies available to it to collect the full amount of the restitution. The defendant agrees that the restitution, restitution judgment, payment provisions, and collection actions of this plea agreement are intended to, and will, survive the defendant, notwithstanding the abatement of any underlying criminal conviction after the execution of this agreement. The defendant further agrees that any restitution collected and/or distributed will survive him, notwithstanding the abatement of any underlying criminal conviction after execution of this agreement. The restitution shall be paid through the Office of the Clerk of the District Court by bank or cashier's check or money order made payable to the "Clerk, United States District Court." Further, the restitution described above shall be paid to or on behalf of the United States Department of the Navy. defendant agrees that, before sentencing, the defendant will provide to the United States, under penalty of perjury, a financial disclosure form listing all of the defendant's assets and financial interests valued at more than $1,000. The defendant understands that these assets and financial interests include all assets and Plea Agreement Def. Initials?J(y';~- -CR-0033-JLS The

20 1 financial interests in which the defendant has an interest, direct 2 or indirect, whether held in the defendant's own name or in the 3 name of another, in any property, real or personal. The defendant 4 shall also identify all assets valued at more than $5,000 which 5 have been transferred to third parties since January 1,, including the location of the assets and the identity of the third party(ies). The parties will jointly recommend that, as a condition of probation or supervised release, the defendant will notify the Collections Unit, United States Attorney's Office, of any interest in property obtained, directly or indirectly, including any interest obtained under any other name, or entity, including a trust, partnership or corporation after the execution of this plea agreement until the fine or restitution is paid in full. The parties will also jointly recommend that as a condition of probation or supervised release, the defendant will notify the Collections Unit, United States Attorney's Office, before the defendant transfers any interest in property owned directly or 1 indirectly by the defendant, including any interest held or owned under any other name or entity, including trusts, partnerships and/or corporations. H. Supervised Release If the Court imposes a term of supervised release, the defendant agrees that he will not later seek to reduce or terminate early the term of supervised release until he has served at least 2/3 of his term of supervised release. 2 2 Plea Agreement Def. Initials /y[;_:_:_.!..._~.:_'~l---- -CR-0033-JLS

21 1 XI. DEFENDANT WAIVES APPEAL AND COLLATERAL ATTACK 2 3 In exchange for the United States' concessions in this plea 4 agreement, the defendant knowingly and voluntarily waives, to the 5 full extent of the law, any right to appeal or to collaterally attack the conviction and any lawful restitution order, except a post-conviction collateral attack based on a claim of ineffective assistance of counsel. The defendant also knowingly and voluntarily waives, to the full extent of the law, any right to appeal or to collaterally attack his sentence, except a postconviction collateral attack based on a claim of ineffective assistance of counsel, unless the Court imposes a custodial sentence above the total statutory maximum for the offenses of conviction. If the custodial sentence is greater than the total statutory maximum, the defendant may appeal, but the United States will be free to support on appeal the sentence actually imposed on 1 any available grounds. If at any time the defendant files a notice of appeal, appeals or collaterally attacks the conviction or sentence in violation of this plea agreement, this violation will be a material breach of this agreement as further defined below. XII. BREACH OF THE PLEA AGREEMENT 2 2 The defendant acknowledges, understands and agrees that if defendant violates or fails to perform any of defendant's obligations under this agreement, such violation or failure to Plea Agreement De f. Initials --~~V~;'f.-- -CR-0033-JLS

22 perform may constitute a material breach of this agreement. The defendant acknowledges, understands and agrees further that the following non-exhaustive list of conduct by the defendant unquestionably constitutes a material breach of this plea agreement: Failing to plead guilty pursuant to this agreement, Failing to fully accept responsibility as established in Section X, paragraph B, above, Failing to appear in court, Attempting to withdraw the plea, Failing to abide by any lawful court order related to this case, Appealing or collaterally attacking the sentence or conviction in violation of Section XI of this plea agreement, or 1. Engaging in additional criminal conduct from the time of arrest until the time of sentencing. In the event of the defendant's material breach of this plea agreement, the defendant will not be able to enforce any of its provisions, and the United States will be relieved of all its obligations under this plea agreement. For example, the United States may pursue any charges including those that were dismissed, 2 promised to be dismissed, or not filed as a result of this 2 agreement. The defendant agrees that any statute of limitations IY/;-----'-'V'_.ry.. Plea Agreement Def. Initials -CR-0033-JLS

23 1 2 relating to suc h charges is tolled as of the date of this agreement. The defendant also waives any double jeopardy defense 3 to such charges, in the event that charges are brought following a 4 breach of this agreement by the defendant. The United States may 5 move to set aside the defendant's guilty plea. The defendant may not withdraw the guilty plea based on the government's pursuit of remedies for the defendant's breach. Additionally, the defendant agrees that in the event of the defendant's material breach of this plea agreement: (i) any statements made by the defendant, under oath, at the guilty plea hearing (before either a Magistrate Judge or a District Judge); (ii) the stipulated factual basis statement in this agreement; and (iii) any evidence derived from such statements, are admissible against the defendant in any prosecution of or action against the defendant. This includes the prosecution of the charges that are 1 the subject of this plea agreement or any charges that the United States agreed to dismiss or not file as part of this agreement, but later pursues because of a material breach by the defendant. Additionally, the defendant knowingly and voluntarily waives any argument under the United States Constitution, any statute, Rule 4 of the Federal Rules of Evidence, Rule (f) of the Federal Rules of Criminal Procedure, and/or any other federal rule, that 2 the statements or any evidence derived from any statements should 2 be suppressed or are inadmissible. Plea Agreement Def. Initials Jr!_::_V._. ~.!...: -CR-0033-JLS

24 1 XIII. 2 ENTIRE AGREEMENT 3 This plea agreement, with its addendum, embodies the entire 4 agreement between the parties and supersedes any other agreement, 5 written or oral. XIV. MODIFICATION OF AGREEMENT MUST BE IN WRITING No modification of this plea agreement shall be effective unless in writing signed by all parties. XV. DEFENDANT AND COUNSEL FULLY UNDERSTAND AGREEMENT By signing this agreement, the defendant certifies that the defendant has read it (or that it has been read to him in defendant's native language). The defendant has discussed the terms of this agreement with defense counsel and fully understands its meaning and effect :V_._h- Plea Agreement Def. Initials M -CR-0033-JLS

25 1 ~I. 2 DEFENDANT SATISFIED WITH COUNSEL 3 The defendant has consulted with counsel and is satisfied with 4 counsel's representation. This is the defendant's independent 5 opinion, and his counsel did no t advise him in this regard. DATEDj~~. ) 2( (,., LAURA E. DUFFY United States Attorney MARK W. PLETCHER Assistant U.S. Attorney 1 /. DATED ]tju\ [;.-1c ~l)o ANDREW WEISSMAN Chief, Fraud Section yovr.j(,..; ~,.,.!'\ BRIAN YOUNG ~'\-Jp LAWRENCE ATKINSON Trial Attorneys Fraud Sec~ ~ WENDY GERBOTH, ESQ Counsel for Defendant IN ADDITION TO THE FOREGOING PROVISIONS, WHICH I UNDERSTAND AND TO 2 0 WHICH I AGREE, I SWEAR UNDER PENALTY OF PERJURY THAT THE FACTS IN THE "FACTUAL BASIS" SECTION ABOVE ARE TRUE. c)l1 ~~;:zt;/ ~ DATED 2 JdlEWICZ Defendant 2 2 Plea Agreement De f. Initials Jvt-'--' V'-'.'-n-; ' _ -CR-0033-JLS