Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 1 of 19 U.S. Department of Justice United States Attorney Eastern District of Pennsylvania Michael A. Schwartz Direct Dial: (215) 861-8923 Facsimile: (215) 861- 8582 E-mail Address: michael.schwartz@usdoj.gov 615 Chestnut Street Suite 1250 Philadelphia, Pennsylvania 19106-4476 (215) 861-8200 February 21, 2006 Honorable Lawrence F. Stengel Judge, United States District Court 18316 United States Courthouse 601 Market Street Philadelphia, PA 19106-1744 Re: United States v. Richard Mariano, Criminal No. 05-614 Dear Judge Stengel: I have enclosed a courtesy copy of the Government’s Trial Memorandum for the upcoming trial of defendant Richard Mariano which is scheduled to begin on Monday, March 6, 2006. A copy has been served on counsel for defendant Richard Mariano, and the original has been electronically filed with the Clerk of Court. Respectfully yours, PATRICK L. MEEHAN United States Attorney /s/ Michael A. Schwartz MICHAEL A. SCHWARTZ Assistant United States Attorney cc: Nino V. Tinari, Esquire Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 2 of 19 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA UNITED STATES OF AMERICA v. : : RICHARD MARIANO CRIMINAL NO. 05-614-1 : GOVERNMENT’S TRIAL MEMORANDUM Defendant Richard Mariano is charged with corruption related crimes arising from his actions while serving as an elected member of Philadelphia City Council which were unlawfully influenced by bribes, gifts, loans, and other benefits he received from co-defendants Philip Chartock, Louis Chartock, Joseph Pellecchia, Vincent DiPentino, and Reinaldo Pastrana, all of which Mariano failed to disclose as he was required to do. The indictment charges Mariano with conspiracy to commit honest services fraud, in violation of 18 U.S.C. § 371 (Count 1); honest services mail fraud, in violation of 18 U.S.C. §§ 1341 and 1346 (Counts 2 through 9); honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346 (Counts 10 through 17); money laundering, in violation of 18 U.S.C. § 1956(a)(1)(b)(i) (Counts 18 and 19); bribery, in violation of 18 U.S.C.§ 666 (Counts 23 through 25), and filing false tax returns, in violation of 26 U.S.C. § 7206(1) (Count 26). Trial for Mariano is scheduled to begin on Monday, March 6, 2006. Trial for codefendants Philip Chartock, Louis Chartock, Joseph Pellecchia, and Reinaldo Pastrana is scheduled to begin on Monday, April 24, 2006. Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 3 of 19 I. ELEMENTS OF THE OFFENSES A. To establish a violation of 18 U.S.C. § 371 (conspiracy to commit honest services fraud), the government must prove the following elements beyond a reasonable doubt: B. 1. The conspiracy, agreement, or understanding described in the indictment to commit honest services fraud was formed by two or more persons and was existing at or about the time charged in the indictment; 2. The defendant knew of the purpose of the conspiracy and deliberately joined it; and 3. After the conspiracy came into existence, at least one of the conspirators knowingly performed at least one of the overt acts alleged in the indictment to further or advance the purpose of the conspiracy, agreement, or understanding. To establish a violation of 18 U.S.C. §§ 1341, 1343, and 1346 (honest services fraud), the government must prove the following elements beyond a reasonable doubt: C. 1. There was a scheme or artifice to defraud the public of the honest services of a public official; 2. The defendant knowingly and willfully engaged in the scheme with knowledge of its fraudulent nature and with specific intent to defraud; and 3. In execution or in furtherance of the scheme, the defendant used or caused to be used the services of the United States Postal Service or another commercial interstate carrier, or used or caused to be used an interstate wire communication. To establish a violation of 18 U.S.C. § 1956(a)(1)(B)(i) (money laundering), the government must prove the following elements beyond a reasonable doubt: 1. The defendant conducted or attempted to conduct a financial transaction, which transaction in fact involved the proceeds of a specified unlawful activity; 2. The defendant knew that the property involved in the financial transaction was proceeds of some form of unlawful activity; and -2- Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 4 of 19 3. D. The defendant knew that the transaction was designed in whole or in part to conceal or disguise the nature, location, source, ownership or control of the proceeds of a specified unlawful activity. To establish a violation of 18 U.S.C. § 666 (bribery), the government must prove the following elements beyond a reasonable doubt: E. 1. The defendant corruptly accepted anything of value; 2. The defendant was an agent of a local government and intended to be influenced or rewarded; 3. In connection with a business transaction of such local government agency; 4. That transaction involved a thing of value of $5,000 or more; and 5. The local government received in any one year period $10,000 under a federal program. To establish a violation of 26 U.S.C. § 7206(1) (filing a false tax return), the government must prove the following elements beyond a reasonable doubt: II. 1. The defendant made or subscribed an income tax return; 2. The tax return contained a written declaration that it was made under the penalties of perjury; 3. The defendant did not believe the return was true and correct as to every material matter; and 4. The defendant acted willfully. FACTS The government expects that the evidence at trial will show that defendant Richard Mariano sold his office as a Philadelphia City Councilman to a number of business people who made secret payments to Mariano. In return for these corrupt payments, Mariano -3- Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 5 of 19 sponsored and voted in favor of legislation providing tax benefits to Erie Steel, Ltd., intervened on behalf of Erie Steel, Ltd. with, among other City agencies, the Air Management Services division of the Department of Public Health, promoted Danlin Management Group, Inc. for a workers compensation consulting contract with the Philadelphia School District, intervened on behalf of Century 21 DiPentino Associates and Recon International, Inc. in their efforts to obtain, among other things, certifications, licenses, compromises of certain tax, water, and sewer penalties, and properties from the City of Philadelphia, and sponsored and voted in favor of legislation to sell a city-owned property located at American and Somerset Streets for $100,000 to Reinaldo Pastrana. From at least 2002 to 2005, Erie Steel, Ltd. President Philip Chartock sought Mariano’s assistance to obtain tax breaks for his company and other favorable treatment from various agencies of the City of Philadelphia. Chartock acted illegally to secure such benefits. He paid more than $23,000 in bribes, and, along with others who assisted in making the bribe payments, corrupted Mariano, who accepted a stream of payments with the understanding that the payments were meant to influence his official actions and who failed to disclose these payments as he was required by law to do. Philip Chartock paid three bribes to Mariano during 2002. Instead of taking cash or some other form of payment from Chartock, Mariano received checks made payable to his credit card companies to pay off Mariano’s personal debts. The first bribe payment occurred on May 10, 2002. Chartock gave Mariano an Erie Steel, Ltd. check in the amount of $5,873.75 made payable to Fleet Credit Card Service so that Mariano could pay his personal credit card bill. -4- Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 6 of 19 Just four days prior to this first bribe payment, officials of the Air Management Services Division of the City of Philadelphia Department of Public Health sought to inspect Erie Steel to determine whether it was in compliance with the City’s air pollution standards. Instead of consenting to the inspection that day, Philip Chartock successfully sought Mariano’s assistance and intervention. Mariano immediately called Department of Public Health officials to intervene on behalf of Erie Steel. After Public Health officials determined that Erie Steel was in violation of a number of air pollution regulations, Philip Chartock used Mariano’s influence to postpone for more than three years what Chartock believed would be costly corrective actions that were necessary to come into compliance with these regulations. The second bribe payment occurred on August 26, 2002. This time, Philip Chartock could not just give Mariano an Erie Steel check like he had before because Erie Steel’s outside accountants had recently stumbled upon, and questioned the propriety of, the May 10, 2002 check that Erie Steel had written to Fleet Credit Card Service. In an attempt to avoid further scrutiny, Philip Chartock changed the method in which he made bribe payments to Mariano. This time, Chartock wrote a check to William Burns, and, to disguise the nature of the payment, Chartock classified the check as a repair and maintenance expense. Rosalia Mattioni, who along with her husband Joseph Pellecchia owned and operated Danlin Management Group1 and who shared a joint account with William Burns, then deposited the Erie Steel check into her account and laundered the bribe payment by obtaining a bank check in the amount of $6,772 1 Shortly after Pellecchia and Mattioni helped to launder this second payment, Mariano arranged for Pellecchia to meet with School District Chief Executive Officer Paul Vallas and Chief Financial Officer Michael Harris to discuss having the School District enter into a consulting contract with Danlin Management Group. -5- Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 7 of 19 made payable to AT&T Universal Card so that Mariano could pay another one of his personal credit card bills. At the time of this second bribe payment, defendant Philip Chartock was actively seeking Mariano’s assistance in obtaining tax relief for his business. On November 13, 2002, Mariano met with Chartock and Assistant Commerce Director Vincent Dougherty to discuss tax breaks for Erie Steel. Even though Mr. Dougherty explained that Erie Steel did not meet the criteria for the tax relief, Philip Chartock (and his father, Louis Chartock) continued to seek Mariano’s assistance. On November 25, 2002, Louis Chartock asked Mariano to introduce legislation making Erie Steel eligible for tax relief. Just eleven days later, on December 6, 2002, Philip Chartock made the third bribe payment. In an attempt to avoid scrutiny, Philip Chartock wrote an Erie Steel check to a different third party, Vincent DiPentino’s company Recon International,2 and disguised the payment by falsely classifying it as a freight, equipment, rental expense. DiPentino deposited the Erie Steel check into his bank account and laundered the bribe payment by writing a check in the amount of $10,900 made payable to Capital One so that Mariano could pay another one of his personal credit card bills. Having been corrupted by the stream of $23,000 in payments from Philip Chartock, Mariano introduced legislation to make Erie Steel eligible for the tax relief that Philip Chartock had sought. In January/February 2003, Mariano recommended to the City that Erie 2 Throughout 2002, 2003, and 2004, Mariano assisted DiPentino and his companies by, among other things, supporting the sale of city-owned properties to Recon and assisting DiPentino and his real estate company in their efforts to obtain, among other things, certifications, licenses, and compromises of certain tax, water, and sewer penalties. -6- Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 8 of 19 Steel be included in the tax relief legislation, which was known as the Keystone Opportunity Zone (“KOZ”) program. The City accepted that recommendation and included Erie Steel in a proposed tax relief bill that was introduced in City Council in April 2003. In May 2003, Mariano twice voted in favor of the tax relief legislation, neither time disclosing his financial relationship with Erie Steel and/or recusing himself as he was required by law to do. After the tax relief legislation became law, Philip and Louis Chartock sought additional favors from Mariano. From November 2003 to January 2005, Philip and Louis Chartock repeatedly sought to take advantage of their corrupt relationship with Mariano by seeking his assistance with, among other things, energy rate reductions from PECO, resolution of outstanding tax issues, removal of a judgment against Erie Steel, and rate reductions from the Pennsylvania Workers’ Compensation Rating Bureau. In March 2004, Louis Chartock went so far as to offer Mariano staffer Anna Davila money and a trip to Florida in exchange for Davila’s assistance in obtaining use and occupancy certifications. In the midst of this corrupt scheme, Maggie Greer, a former Erie Steel bookkeeper who had been charged with embezzling from Erie Steel, blew the whistle on the bribes that had been paid to Mariano by sending anonymous letters to the City Council President and the Mayor. Mariano immediately learned of the letter from the City Council President and then, with the help of Philip and Louis Chartock, devised a scheme to cover up the bribes by falsely claiming that they were loans and falsely claiming that the loans had been paid off. Philip and Louis Chartock participated in this cover-up scheme in an attempt to conceal their corrupt payments to Mariano and in an effort to continue to receive benefits from the corrupt relationship with Mariano. -7- Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 9 of 19 In addition to his corrupt dealings with Erie Steel, the Chartocks, Pellecchia, and DiPentino, Mariano also accepted money as a reward for his sponsorship and favorable vote on legislation through which Reinaldo Pastrana acquired a city-owned property located at American and Somerset Streets for $100,000. From 2002 to 2004, Pastrana paid more than $5,400 for membership fees at the Sporting Club at the Bellevue on behalf of Mariano, which Mariano also failed to disclose. In late March/early April 2005, after Mariano learned that the FBI was investigating allegations that he had accepted illegal payments, Mariano met with members of his staff, including his chief of staff Walt DeTreux and his legislative aide John Lisko, and confessed to them that he had accepted multiple payments from Erie Steel which he had failed to disclose. Mariano also confessed that he had never repaid Erie Steel any of the money that was used to pay his personal credit card bills. Not surprisingly, Mariano also failed to include the more than $23,000 in payments from Erie Steel in 2002 and the $1,800 gym membership payment for 2002 on his 2002 federal tax returns. III. EVIDENCE A. Witnesses: The government expects to call the following as witnesses in its case in chief: 1. Walt DeTreux (former chief of staff to Councilman Mariano) 2. Maggie Greer (former bookkeeper of Erie Steel) 3. Gene Mattalucci (an accountant who performed an audit at Erie Steel) 4. Kevin Ford (an accountant who performed an audit at Erie Steel) 5. Rosalia Mattioni -8- Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 10 of 19 6. Vincent DiPentino 7. Vincent Dougherty (City of Philadelphia Assistant Commerce Director) 8. Roger Fey (City of Philadelphia Air Management Services) 9. John Domzalsky (former City of Philadelphia Health Commissioner) 10. Morris Fine (City of Philadelphia Air Management Services) 11. Michael Harris (former Philadelphia School District Chief Financial Officer) 12. Joseph Lombo (Commonwealth of Pennsylvania Workers Compensation) 13. Anna Davila (former constituent services representative) 14. John Coates (Chairman of the City’s Vacant Property Review Committee) 15. Jessica Correra (Sporting Club at the Bellevue) 16. Grace Marker (Sporting Club at the Bellevue) 17. Evan Meyer (City of Philadelphia Law Department, Ethics Counsel) 18. Julia Malcolm (Mariano’s tax preparer) 19. IRS Special Agent Laura Capra 20. Steve Hyman (former Assistant District Attorney) 21. Susan Albert (Erie Steel office worker) 22. John Lisko (former legislative aide to Councilman Mariano) 23. FBI Special Agent Ray Manna The government reserves the right to call additional witnesses or to change the order of its witnesses if necessary. -9- Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 11 of 19 B. Exhibits: The government’s preliminary exhibit list is as follows: Exh. Description 1 5/10/02 Erie Steel Check to Fleet in the amount of $5,873.75. 2 8/26/02 Erie Steel Check to William Burns in the amount of $6,672. 3 12/06/02 Erie Steel Check to Recon International in the amount of $10,900. 4 12/12-19/02 AMEX Receipt for Reinaldo Pastrano credit card showing payment to the Sporting Club for Richard Mariano’s membership fees of $1,812.60. 5 1/14/04 Mastercard Receipt for Plaza Beverage credit card showing payment to the Sporting Club for Richard Mariano’s membership fees of $1,858.20. 6 12/20/04 AMEX Receipt for Reinaldo Pastrano credit card showing payment to the Sporting Club for Richard Mariano’s membership fees of $1,882.20. 7 Fleet Payment Coupon for payment of $5,873.75. 8 Deposit Slip for the account of William Burns/Rosalia Mattioni showing deposit of Erie Steel Check in the amount of $6,672. 9 Burns/Mattioni check in the amount of $6,672 used to purchase cashier’s check, dated August 28, 2002. 10 Cashier’s check made payable to AT&T Universal Card in the amount of $6,672. 11 Deposit Slip for the account of Vincent DiPentino showing deposit of Erie Steel Check in the amount of $10,900. 12 12/06/02 check from Vincent DiPentino to Capital One. 13 4/30/04 letter to City Council President Anna Verna. 14 9/23/02 Letter from Vincent Dougherty to Mariano re: KOZ. 15 11/11/02 Fax from Erie Steel to Louis Chartock re: KOZ. 16 11/13/02 Appointment Calendar for Vincent Dougherty. 17 11/25/02 Fax from Louis Chartock to Richard Mariano re: KOZ. 18 1/17/03 E-mail from Vincent Dougherty to James Haley re: KOZ. - 10 - Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 12 of 19 19 2/11/03 E-mail from Vincent Dougherty to Walt DeTreux re: KOZ. 20 Undated Executive Summary, Bill 030242, Recommended KOZ Additions. 21 Bill No. 030242, KOZ, Introduced April 25, 2003. 22 5/6/03 City Council Hearing, Committee vote on Bill 030242. 23 5/8/03 City Council Hearing, Reading of Bill 030242. 24 5/15/03 City Council Hearing, Final Vote on Bill 030242. 25 Certified Bill No. 030242, signed by Mayor on May 29, 2003. 26 11/17/03 Letter from Philip Chartock to PECO re: request for rate reduction. 27 2/27/04 Letter from Philip Chartock to Vincent Dougherty re: KOZ. 28 10/11/04 Letter from Louis Chartock to Richard Mariano, re: KOZ. 28a Envelope from Chartock in NJ to Richard Mariano, postmarked 10/12/04. 29 5/6-7/02 Emails to/from EJ Hix, Morris Fine, Michael Lucas, Thomas Huynh re: call from Richard Mariano and inspection of Erie Steel. 30 5/7/02 Email from Prasad Philip to Thomas Huynh, Roger Fey, Robert Scott re: inspection of Erie Steel. 31 5/8-9/02 Emails to/from Prasad Philip, Thomas Huynh, Roger Fey, Robert Scott, Michael Lucas, Morris Fine, EJ Hix re: inspection report for Erie Steel. 32 5/23/02 Letter from Edward Wiener, Air Management, cc: Prasad Philip, Roger Fey, Thomas Barsley, to Erie Steel re: permit application with cost of $1,400. 33 5/24/02 Letter from Edward Wiener, Air Management, cc: Prasad Philip, Roger Fey, Thomas Barsley, to Erie Steel re: permit application with revised cost of $2,250. 34 7/16/02 Notice of Violation to Erie Steel. 35 8/5/02 Letter from Philip Chartock, copy to Richard Mariano, to Air Management re: no reason to submit application. 35a 8/5/02 Fax Coversheet to Richard Mariano from Philip Chartock. 36 8/8/02 Letter from GreenTree Services to Philip Chartock re: consulting costs. 37 8/14/02 Letter from Edward Wiener to Philip Chartock, Air Management, cc: Prasad Philip, Roger Fey to Erie Steel re: permit application. - 11 - Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 13 of 19 38 12/6/02 Letter from Philip Chartock, copy to Richard Mariano, to Air Management re: request for exemption. 39 Undated handwritten note re: Appointment with Health Commissioner, “tell him Councilman Mariano told you to call, and I’m a personal friend of his; tell him what Mr. Fine is doing.” 40 12/9/02 Fax Coversheet to John Domzalski from Philip Chartock. 40a 12/9/02 Fax Coversheet to Richard Mariano from Philip Chartock. 41 12/9/02 Emails to/from Edward Wiener, Prasad Philip, Thomas Huynh, Edward Braun, Roger Fey re: permit. 42 1/2/03 Email from Michael Lucas to EJ Hix and Morris Fine re: meeting with Philip Chartock. 43 1/3/03 Emails to/from Michael Lucas, Morris Fine, Edward Wiener, Prasad Philip, Thomas Huynh re: permit. 44 2/28/03 Letter from Philip Chartock to Edward Wiener re: no application because of fire. 45 4/12/05 Letter from Edward Wiener, Air Management, to Philip Chartock cc: Prasad Philip, Roger Fey, Thomas Huynh to Erie Steel re: permit application deadline June 1, 2005. 46 2/14/02 Memo from Louis Chartock to Richard Mariano re: change in workers’ compensation classification. 47 3/4/04 Fax from Louis Chartock to Anna Davila re: zoning for 3630-34 N. 2nd Street. 47a 3/4/04 Fax coversheet. 48 3/17/04 Letter from Louis Chartock to Anna Davilla re: zoning for 3630-34 N. 2nd Street. 49 1/15/05 Letter from Chartock to Mariano re: request to compromise a PA Revenue bill 49a Envelope from Chartock in FL to Richard Mariano, postmarked 1/15/05. 50 10/11/04 Letter from Louis Chartock to Richard Mariano requesting that Mariano intercede with Pedro Ramos of the City of Philadelphia to open and resolve a judgment against Philip Chartock. - 12 - Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 14 of 19 51 3/8/01 Fax from Vincent DiPentino to Richard Mariano re: PECO service for Central Medical. 52 9/12/02 Calendar for Paul Vallas; Mtg with Mariano and Harris. 53 2/21/02(03) Telephone Messages for Mike Harris; “Joe Pellecchia from Councilman Mariano’s conversation.” 54 9/17/03 Contract between Danlin and School District. 55 10/29/03 Calendar for Paul Vallas. 56 07/15/04 Letter from Danlin to Michael Harris requesting $281,250 for consulting services. Handwritten “Approved for $168,750 only.” 57 7/28/04 Telephone Messages for Richard Mariano. 58 5/15-16/02 E-mails between Walt DeTreux and John Coates re: status of 1400 E. Lycoming Street. 59 7/11/05 Agenda of VPRC Meeting on 7/12/05 – Sale of 1402 E. Lycoming Street to Recon Developers/DiPentino; Transcript of VPRC Meeting; approval of sale of 1402 E. Lycoming Street. 60 9/8/03 E-mails between John Coates and Walt DeTreux re: 4255 Castor Avenue; Recon Developers interested. 61 10/8/03 Fax from Vincent DiPentino to Richard Mariano re: U & O Cert. for 1208 E. Hunting Park Avenue. 62 12/10/03 Fax from Vincent DiPentino to Richard Mariano re: U & O Cert. for 4814 Princeton Avenue. 63 5/17/04 Fax from Vincent DiPentino to Richard Mariano re: requested compromise on taxes for 10074 Sandmeyer Lane.. 64 6/28/04 E-mail from Walt DeTreux to John Coates re: 4225 Lawndale Street; Recon Developers interested. 65 8/27/04 Fax from Vincent DiPentino to Richard Mariano re: requested compromise on taxes for 1862 Clarence Street. 66 12/10/04 Fax from Vincent DiPentino to Richard Mariano re: requested compromise on taxes for 3926 Palmetto Street. 67 12/14/04 Fax from Vincent DiPentino to Richard Mariano re: requested compromise on taxes for 10074 Sandmeyer Lane. - 13 - Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 15 of 19 68 2/4/05 Fax from Vincent DiPentino to Richard Mariano re: U & O Cert. for 2340 S. 11th Street. 69 1/3-4/01 E-mails between Paul Deegan, John Coates, Vincent Dougherty, Walt DeTreux and others re: Richard Mariano’s request to put the sale of 2730-70 N. American Street to Reinaldo Pastrana on agenda. 70 1/9/01 Vacant Property Review Committee; approval of sale to Reinaldo Pastrana for fair market value. 71 6/14/01 Letter from RDA to Reinaldo Pastrana re: property sale for $400,250. 72 2/28/02 Letter from Jon Edelstein to John Coates re: environmental costs relating to sale to Reinaldo Pastrana. 73 3/5/02 Vacant Property Review Committee; testimony of Vincent Dougherty. 74 6/6/02 Letter from Reinaldo Pastrana to James Cuorato re: requesting price reduction for American Street property from $400,000 to $100,000. 75 8/16/02 Fax from Reinaldo Pastrana to Walt DeTreux re: American Street 76 10/3/02 Bill No. 020603 Introduced by Richard Mariano to sell American Street property to Reinaldo Pastrana for $100,000. 77 10/4/02 Letter from Richard Mariano to Councilman Kenney seeking hearing on Bill No. 020603. 78 10/29/02 City Council Hearing, Committee on Public Property, Testimony of Paul Deegan and Committee vote on Bill 020603. 79 11/14/02 Hold on Bill No. 020603. 80 11/21/02 City Council Hearing, Final Vote on Bill 020603. 81 Certified Bill No. 020603, signed by Mayor on December 3, 2002. 82 3/21/03 Letter from PIDC to Reinaldo Pastrana, re: reservation for purchase of 2730-70 American Street. 83 9/2/03 E-mail from Vincent Dougherty re: Reinaldo Pastrana land reservation, “frantic message the other day from Rey Pastrana”. 84 9/2/03 Letter from PIDC to Reinaldo Pastrana, re: extension of reservation for purchase of 2730-70 American Street. 85 2/9/04 Letter from PIDC to Reinaldo Pastrana, re: extension of reservation for purchase of 2730-70 American Street - 14 - Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 16 of 19 86 6/15/04 Letter from PIDC to Reinaldo Pastrana, re: extension of reservation for purchase of 2730-70 American Street. 87 3/31/05 E-mail from PIDC to Vincent Dougherty and others re: closed on sale to Reinaldo Pastrana. 88 12/28/04 Check No 2001 from Richard Mariano to Reinaldo Pastrana in the amount of $1,858.20, memo S.C. for 2004. 89 Boston and Associates Audit Report, dated July 15, 2002. 90 Subpoena Served on Richard Mariano’s Office, dated 3/31/05. 91 8/23/02 Fax of invoice from WJB, Interior & Exterior, Masonry & Paint to Erie Steel for $6,672.00 with handwritten note “Please make check payable to William Burns.” 92 11/27/02 Letter Recon International to Philip Chartock re: $10,900 due for “storage of materials.” 93 2002 City of Philadelphia and Commonwealth of Pennsylvania Financial Disclosure Forms for Richard Mariano. 93a Instructions for City of Philadelphia and Commonwealth of Pennsylvania Statements of Financial Interests. 94 2003 City of Philadelphia and Commonwealth of Pennsylvania Financial Disclosure Forms for Richard Mariano. 95 2004 City of Philadelphia and Commonwealth of Pennsylvania Financial Disclosure Forms for Richard Mariano. 96 2002 Tax Return for Richard Mariano. 97 5/03/04 Letter from Philip Chartock to Richard Mariano re: loan. 98 5/26/04 Letter from Louis Chartock to DA’s Office re: loan. 99 12/19/04 Letter from Louis Chartock to DA’s Office re: loan. 100 1/01/05 Letter from Louis Chartock to DA’s Office re: loan 101 Erie Steel Accounts Payable Journal report showing payments made to Recon International on 12/06/02 and William Burns on 8/23/02. 102 Summary of Richard Mariano’s Capital One Visa Account. 103 Summary of Richard Mariano’s Fleet Account. - 15 - Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 17 of 19 104 Summary of Richard Mariano’s AT&T Universal Account. 105 Summary of Richard Mariano’s First Trust Bank Checking and Savings Account Summary for 2002. 106 Summary of Pertinent Telephone Contacts. 107 Oath of Office Taken By Richard T. Mariano on January 1, 1996, January 3, 2000, and January 5, 2004. 108 Guilty Plea Agreement for Vincent DiPentino. 109 Immunity Letter for Rosalia Mattioni. 110 Summary of Charges against Richard Mariano. The government reserves the right to supplement this exhibit list. IV. LENGTH OF TRIAL The government anticipates that its case-in-chief will take approximately 2 weeks. V. EVIDENTIARY MATTERS The government believes that the following evidentiary issues may arise during the trial: 1. The government has proposed stipulations to counsel for Mariano to eliminate the need to call custodians of records to introduce records from a number of banks and other business entities as business records pursuant to Fed.R. Evid. 803(6). The government also has proposed stipulations to Mariano to eliminate the need to call custodian of records from the City of Philadelphia to introduce public records pursuant to Fed.R. Evid. 803(8). Counsel for Mariano has not yet responded to the government’s proposed stipulations. 2. The government intends to introduce the following documents as coconspirator statements pursuant to Fed.R. Evid. 801(d)(2)(E): Gov’t Exhs. 17, 26, 27, 28, 35, 38, 44, 46, 47, 48, 49, 97, 98, 99, 100. - 16 - Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 18 of 19 3. The government will seek to introduce summaries of Mariano’s Capital One Visa Account (Gov’t Exh. 102), Mariano’s Fleet Account (Gov’t Exh. 103), Mariano’s AT&T Universal Account (Gov’t Exh. 104), Mariano’s Firsttrust Bank Accounts (Gov’t Exh. 105), Pertinent Telephone Contacts (Gov’t Exh. 106), and the charges in the indictment (Gov’t Exh. 110) pursuant to Fed.R. Evid. 1006. Copies of the underlying documents supporting these summaries have been provided to the defendant, and, to date, the defendant has not objected to these summaries. 4. The government intends to introduce the Financial Disclosure forms filed by Richard Mariano for the years 2002, 2003, and 2004 (Gov’t Exhs. 93, 94, and 95). On Mariano’s publicly filed 2004 returns (filed in May 2005 after the FBI’s investigation became public), Mariano attaches a statement that “on advice of counsel, no further response is provided at this time in reliance upon the fifth and fourteenth amendments to the U.S. Constitution and Article I, Section 9 of the Pennsylvania Constitution.” Without resolving the question as to whether such a response is proper under state and local law, the government suggests that the Court instruct the jury that they should draw no negative inference from the fact that Mariano asserted his fifth amendment rights on this form. Because Mariano received payments from Pastrana in 2004 which he did not disclose as he was required to do and claimed to have made loan repayments to Erie Steel which he also did not disclose, this form is relevant and necessary evidence to prove the crimes charged in the indictment. The proposed limiting instruction to the jury will eliminate any possible prejudice from the fact that Mariano asserted his fifth amendment rights on this publicly filed form. Respectfully yours, PATRICK L. MEEHAN United States Attorney /s/ Michael A. Schwartz MICHAEL A. SCHWARTZ KENYA MANN Assistant United States Attorneys - 17 - Case 2:05-cr-00614-LS Document 75 Filed 02/21/06 Page 19 of 19 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the Government’s Trial Memorandum has been served by electronic filing, and by e-mail, on the following: . Nino V. Tinari, Esquire 123 South Broad Street, Suite 1970 Philadelphia, PA 19109 nino@tinarilaw.com Counsel for Richard Mariano _/s/ Michael A. Schwartz MICHAEL A. SCHWARTZ Assistant United States Attorney DATED: February 21, 2006