Case 3:16-cr K Document 4 Filed 04/14/16 Page 1 of 11 PageID 6

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1 Case 3:16-cr K Document 4 Filed 04/14/16 Page 1 of 11 PageID 6 ORIGINAL IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS 2o:s APR 14 PM.3: 32 DALLAS DIVISION / Y CL rnx_... UNITED STATES OF AMERICA v. SOUTHCO ENTERPRISES, INC. PLEA AGREEMENT Ncs - 16 cr - o i 4 a K Southco Enterprises, Inc., the defendant herein, the defendant's attorney, Walter D. James III, and the United States of America agree as follows: 1. Rights of the defendant: South co Enterprises, Inc. understands that it has the rights: a. to plead not guilty; b. to have a trial by jury; c. to have its guilt proven beyond a reasonable doubt; and d. to confront and cross-examine witnesses and to call witnesses in its defense. 2. Waiver of rights and plea of guilty: Southco Enterprises, Inc. agrees to waive these rights and plead guilty to the offense alleged in Count One of the Information in this case, charging it with a violation of 42 U.S.C. 6928(d)(2)(B), that is, Treat, Store or Disposing of Hazardous Waste without a Permit. South co Enterprises, Inc. understands the nature and elements of the crime to which it is pleading guilty, and agrees that the factual resume its representative has signed is true and understands that it will be submitted to the Court as evidence. Plea Agreement - Page 1

2 Case 3:16-cr K Document 4 Filed 04/14/16 Page 2 of 11 PageID 7 3. Sentence: The maximum penalties the Court can impose include: a. A term of probation of not more than five years; b. a fine not to exceed $500,000.00, or twice any pecuniary gain to the Southco Enterprises, Inc. or loss to the victim(s); c. a mandatory special assessment of $ for conviction on Count One, and d. restitution to the victims and the community. 4. Role of the Sentencing Guidelines: Southco Enterprises, Inc. understands that the sentence in this case will be imposed by the Court after consideration of the United States Sentencing Guidelines. The guidelines are not binding on the Court, but are advisory only. Southco Enterprises, Inc. has reviewed the guidelines with its attorney, but understands no one can predict with certainty the outcome of the Court's consideration of the guidelines in this case. 5. Sentencing agreement: Notwithstanding the maximum possible sentence available under the applicable statutes in this case, pursuant to Rule 11 ( c )(1 )(C), FED. R. CRIM. P., the parties agree that the appropriate sentence in this case is as follows: a. a mandatory special assessment of $400.00, payable as set out below; and b. monetary penalties in the amount of $250,000 as set out below: (i) Criminal Fine: $150,000 to be paid to the U.S. District Clerk in equal monthly installments over a twelve-month period beginning on the date of sentencing. Plea Agreement - Page 2

3 Case 3:16-cr K Document 4 Filed 04/14/16 Page 3 of 11 PageID 8 (ii) Community Service: $100,000 of the monetary penalty shall be paid in equal monthly installments over a twelve-month period as organizational community service pursuant to USSG 8B 1.3 and in furtherance of satisfying the sentencing principles provided for under 18 U.S.C. 3553(a) and 3563(b)(l2). Defendant agrees that it shall not seek a tax benefit or tax deduction for these payments in any jurisdiction. Defendant further agrees that it is prohibited from using the fact of the payments in any public relations, marketing or advertising activities. The recipients of these funds shall only expend these funds for defined projects, purposes and objectives that are geographically confined within the borders and adjacent state waters of Hutchins, Texas. The defendant shall deliver the $100,000 sum for community service in the equal monthly installments, in the form of cashier's checks from a U.S. bank, to the United States District Court Clerk of Court. The Clerk will then distribute the funds to each recipient, such funds to be used for projects and expenditures as set forth below: Southern Environmental Enforcement Network - Through the Clerk of Court, the defendant shall make payments totalling $50,000 payable to the "Southern Environmental Enforcement Network Training Fund." The payment address is Southern Environmental Plea Agreement - Page 3

4 Case 3:16-cr K Document 4 Filed 04/14/16 Page 4 of 11 PageID 9 Enforcement Network Training Fund, 5330 Stadium Trace Parkway, Suite 240, Birmingham, Alabama Hutchins Fire and Rescue, City of Hutchins, Texas- Through the Clerk of Court, the Defendant shall make payments totalling $50,000 payable to the "Hutchins Fire Rescue," which is a Department within the City of Hutchins, Texas, with responsibility for response, mitigation, and remediation of hazardous material incidents. The payment address is City of Hutchins, P.O. Box 500, Hutchins, Texas The payments to Hutchins Fire Rescue shall be considered as a payment with specific conditions of use. Payments shall be for the exclusive use of Hutchins Fire Rescue exclusively for the acquisition, purchase, lease, contracting for, maintenance, calibration, testing, transport, staging, or storage of specialized equipment and gear. The specialized equipment and gear shall be used exclusively for actions related to spill, leaks, emissions or releases of toxic or hazardous materials that constitute, or could possibly lead to environmental pollution in North Texas. None of the funds should be used for any vehicle, firearm, gasoline, diesel fuel, or to pay for the salary, benefits, or overtime of a City of Hutchins employee. (iii) Payments are to be made on the 15th day of each month following the acceptance of the plea agreement by the Court. Plea Agreement - Page 4

5 Case 3:16-cr K Document 4 Filed 04/14/16 Page 5 of 11 PageID 10 c. Suspension/Debarment: The defendant understands that if this Plea Agreement is accepted, the defendant may be subject to suspension and debarment at the discretion of the United States Environmental Protection Agency's debarring official in accordance with 2 C.F.R. Parts 180 and Should the debarring official exercise its discretionary authority to suspend or debar the defendant, the defendant would be ineligible for any federally funded contracts, grants or loans, effective immediately upon entry of the Judgment of Conviction. The defendant's ineligibility may last for either a specified period of time or until the United States Environmental Protection Agency removes the defendant from its list. 6. Mandatory special assessment: The mandatory special assessment amount of $ shall be paid at the time of execution of this plea agreement. Payment shall be in the form of a cashier's check, payable to the U.S. District Clerk for the Northern District of Texas, and delivered to the United States Attorney's office. The United States Attorney shall hold this check until the time of sentencing, at which time the payment will be forwarded to the District Clerk. 7. Rejection of agreement. Pursuant to Rule 1 l(c)(s), FED. R. CRIM. P., ifthe Court accepts this plea agreement, the above provisions regarding sentence are binding on the Court. If the Court rejects this plea agreement, Southco Enterprises, Inc. will be allowed to withdraw its guilty plea. Southco Enterprises, Inc. is aware that if the Court rejects this plea agreement and Southco Enterprises, Inc. nevertheless declines to Plea Agreement - Page 5

6 Case 3:16-cr K Document 4 Filed 04/14/16 Page 6 of 11 PageID 11 withdraw its guilty plea, the disposition of the case may be less favorable than that contemplated by this agreement. 8. Defendant's agreement: Southco Enterprises, Inc. shall give complete and truthful information and/or testimony concerning its participation in the offense of conviction. Southco Enterprises, Inc. shall submit a financial statement under oath prior to the entry of its guilty plea and submit to interviews by the government and the U.S. Probation Office regarding its capacity to satisfy any fines or restitution. Southco Enterprises, Inc. fully understands that any financial obligation imposed by the Court, including a restitution order and/or the implementation of a fine, is due and payable as set out in this plea agreement. In the event the Court imposes a different schedule for payment of restitution or fine, South co Enterprises, Inc. agrees that such a schedule represents a minimum payment obligation and does not preclude the U.S. Attorney's Office from pursuing any other means by which to satisfy South co Enterprises, Inc.' s full and immediately enforceable financial obligation. Southco Enterprises, Inc. understands that it has a continuing obligation to pay in full as soon as possible any financial obligation imposed by the Court. Until its financial obligation is paid in full, South co Enterprises, Inc. further agrees that it is restrained from: (I) transferring, selling, gifting, or in any other way disposing of any asset or property with a cost or fair market value of $300 or more, or (2) transferring, selling, or gifting any assets or property to any individual or entity with an aggregate cost or fair market value of $300 or more. Plea Agreement - Page 6

7 Case 3:16-cr K Document 4 Filed 04/14/16 Page 7 of 11 PageID Government's agreement: The government agrees that it will not pursue any current charges or bring any additional criminal charges against Southco Enterprises, Inc., or against any of South co Enterprises, Inc. 's current officers or employees, based upon the conduct underlying and related to Southco Enterprises, Inc.'s plea of guilty, including any that occurred prior to the date of entry of this plea agreement 10. Agreement limited to USAO NDTX: The government's undertaking and agreements set forth in this plea agreement are limited to the United St~tes Attorney's Office for the Northern District of Texas and do not bind any other federal, state, or local prosecuting authorities, nor does it prohibit any civil or administrative proceeding against Southco Enterprises, Inc. or any property. 11. Requirement for corporate resolution: This plea agreement will be executed by Southco Enterprises, Inc.'s Chief Executive Officer and President, James Alexdander. Prior to signing the plea agreement, Southco Enterprises, Inc. will obtain from the board of directors of South co Enterprises, Inc. appropriate resolutions authorizing the execution of this plea agreement, which will be provided to the U.S Attorney's Office not later than the date of entry of this guilty plea. By entering into this plea agreement, James Alexander expressly represents to the Court and to the United States that he has the power and authority to bind the defendant corporation, Southco Enterprises, Inc., to this plea agreement. 12. Violation of agreement: Southco Enterprises, Inc. understands that if it Plea Agreement - Page 7

8 Case 3:16-cr K Document 4 Filed 04/14/16 Page 8 of 11 PageID 13 violates any provision of this agreement, or if this guilty plea is vacated or withdrawn, the government will be free from any obligations of the agreement and free to prosecute Southco Enterprises, Inc., and James Alexander, for all offenses of which it has knowledge. In such event, Southco Enterprises, Inc. waives any objections based upon delay in prosecution. If the plea is vacated or withdrawn for any reason other than it was involuntary, Southco Enterprises, Inc. also waives objection to the use against it of any information or statements it has provided to the Government and any resulting leads. 13. Voluntary plea: This plea of guilty is freely and voluntarily made and is not the result of force or threats, or of promises apart from those set forth in this plea agreement. There have been no guarantees or promises from anyone as to what sentence the Court will impose. 14. Waiver of right to appeal or otherwise challenge sentence: Southco Enterprises, Inc. waives any rights, conferred by 28 U.S.C and 18 U.S.C. 3742, to appeal from its conviction and sentence. Southco Enterprises, Inc. further waives the right to contest this conviction and sentence in any collateral proceeding, including proceedings under 28 U.S.C and 28 U.S.C Southco Enterprises, Inc., however, reserves the rights to (a) to bring a direct appeal of (i) a sentence exceeding the statutory maximum punishment, or (ii) an arithmetic error at sentencing, (b) to challenge the voluntariness of his plea of guilty or this waiver, and ( c) to bring a claim of ineffective assistance of counsel. Plea Agreement - Page 8

9 Case 3:16-cr K Document 4 Filed 04/14/16 Page 9 of 11 PageID Representation of counsel: South co Enterprises, Inc. has thoroughly reviewed all legal and factual aspects of this case with its lawyer and is fully satisfied with that lawyer's legal representation. South co Enterprises, Inc. has received from its lawyer explanations satisfactory to Southco Enterprises, Inc. concerning each paragraph of this plea agreement, each of its rights affected by this agreement, and the alternatives available to Southco Enterprises, Inc. other than entering into this agreement. Because Southco Enterprises, Inc. concedes that it is guilty, and after conferring with its lawyer, Southco Enterprises, Inc. has concluded that it is in its best interest to enter into this plea agreement and all its terms, rather than to proceed to trial in this case. [Nothing Further On This Page]. Plea Agreement - Page 9

10 Case 3:16-cr K Document 4 Filed 04/14/16 Page 10 of 11 PageID Entirety of agreement: This document is a complete statement of the parties' agreement as to resolution of this criminal case and may not be modified unless the modification is in writing and signed by all parties. AGREED TO AND SIGNED this day of December, Respectfully submitted, JOHN R. PARKER UNITED STATES ATTORNEY By: James Alexander President & CEO Assistant United States A tomey Texas Bar No Commerce, 3d Floor Dallas, Texas Telephone: Facsimi Deputy Criminal Chief Plea Agreement - Page 10

11 Case 3:16-cr K Document 4 Filed 04/14/16 Page 11 of 11 PageID 16 I have read (or had read to me) this Plea Agreement and have carefully reviewed every part of it with my attorney. I fully understand it and voluntarily agree to it. sou Defendant By: James Alexander President & CEO Date I am the defendant's counsel. I have carefully reviewed every part of this Plea Agreement with the defendant. To my knowledge and belief, my client's decision to enter into this Plea Agreement is an informed and voluntary one. Date Plea Agreement - Page I I