UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF TENNESSEE

AT KNOXVILLE
UNITED STATES OF AMERICA 
No. 3: 15-CR-56-TAV-CCS
v. 
JUDGES SHIRLEY
AMADO VALDEZ-MORALES 
PLEA AGREEMENT

 

The United States of America, by the United States Attorney for the Eastern District of
Tennessee, and the defendant, Amado Valdez-Morales, and the defendant?s attorney, Benjamin
Gerald Sharp, have agreed upon the following:

1. The defendant will plead guilty to the following counts in the indictment:

a) Count One. Conspiracy to defraud the United States by obtaining the
payment of false income tax returns, in violation of 18 U.S.C. 286.

The punishment for this offense is as follows: Imprisonment of up to ten years, a ?ne of up

to $250,000, a term of supervised release of up to three years, a special assessment of $100, and

forfeiture and restitution in accordance with law.

b) Count Four. Conspiracy to commit money laundering, in violation of 18

U.S.C. 1956(h).

The punishment for this offense is as follows. Imprisonment of up to twenty years, a fine of
up to $500,000 or twice the value of the prOperty involved in the transaction (whichever is greater),
a term of supervised release of up to 3 years, a special assessment of $100, and forfeiture and

restitution in accordance with law.

0) Count Five. Illegal reentry by a previously deported alien, in violation of 8

U.S.C. 1326.

Case Document 152 Filed 04/18/16 Page 1 of 11 PageID 1343

The punishment for this offense is as follows. Imprisonment of up to two years, a fine of up

to $250,000, a term of supervised release of up to 1 year, and a special assessment of $100.

2. In consideration of the defendant?s guilty pleas, the United States agrees to move the

Court at the time of sentencing to dismiss the remaining counts against the defendant in this

indictment.

3. The defendant has read the indictment, discussed the charges and possible defenses

with defense counsel, and understands the crimes charged. Speci?cally, the elements of the

offenses are as follows:

Count One 18 U.S.C. ,8 286

 

There was a conspiracy to obtain payment of false claims against the United
States;

The defendant knowingly became a member of the conspiracy with an intent
to advance the conspiracy;

The defendant knew that the claims against the United States were fraudulent;
and

The defendant acted with intent to defraud.

Count Four I8 U.S.C. 195601)

That the defendant,

(3) Knowingly combined, conspired, confederated or agreed with others,

03)

To commit offenses against the United States, including violations of Title

18, United States Code, Section 1956 (money laundering).

Count Five 8 US. C. ,6 1326

That the defendant,

Case Document 152 Filed 04/18/16 Page 2 of 11 PageID 1344

 Was previously deported, removed, excluded or denied admission to the
United States, and thereafter

Entered, attempted to enter, or was found in the United States, without having
obtained the express permission from the Secretary of Homeland Security to
reapply for admission.

4. In support of the defendant?s guilty plea, the defendant agrees and stipulates to the
following facts, which satisfy the offense elements. These are the facts submitted for purposes of
the defendant?s guilty plea. They do not necessarily constitute all of the facts in the case. Other
facts may be relevant to sentencing. Both the defendant and the United States retain the right to
present additional facts to the Court to ensure a fair and appropriate sentence in this case.

The defendant, Amado Valdez-Morales, is a citizen of Honduras, who was deported from the
United States on or about June 16, 2012. Thereafter, he was found in Oak Ridge, Tennessee, within
the Eastern District of Tennessee, without having obtained the express consent of the Secretary of
Homeland Security to reapply for admission to the United States.

Beginning in 2012, the defendant and his indicted and unindicted co-conspirators began
operating a scheme that involved stealing money from the United States through the submission of
false and fraudulent income tax returns. The defendant would obtain forged Mexican, Honduran
and Guatemalan identi?cation documents and use them in conjunction with preparing and ?ling
false IRS Forms W-7, with the purpose of obtaining fraudulent Individual Tax Identi?cation
Numbers 

The defendant would then provide the fraudulent ITINs, along with lists of addresses that he
controlled, to co-conspirators who would prepare illicit federal income tax returns and file them

with the IRS. The return preparers would include on the forms the addresses that the defendant had

Case Document 152 Filed 04/18/16 Page 3 of 11 PageID 1345

provided, so that the Treasury checks mailed out by the IRS in response to the fraudulent tax returns
could be received by the defendant or his co-conspirators. Upon receipt of the fraudulently?obtained
Treasury checks, the defendant and/or his co-conspirators would deliver the checks to other co-
conspirators who were in the check cashing business. In promotion of the scheme as described
above, the defendant would pay his co?conspirators who prepared and ?led the returns, who
delivered the checks to check cashers, and who cashed the checks. The defendants made such
payments with funds that were derived from the submission of false and fraudulent tax returns to the
IRS.

The parties agree and stipulate that for the purpose of determining the Specific offense
characteristics under section 2B 1.1 of the U.S. Sentencing Guidelines, the loss associated with the
defendant?s involvement in the offenses is greater than $1,500,000 and not more than $3,500,000.

The parties further agree and stipulate that the defendant was a leader or organizer of a
criminal activity that involved ?ve or more participants, within the meaning of section 3B1 of
the U.S. Sentencing Guidelines.

5. The defendant is pleading guilty because the defendant is in fact guilty.
The defendant understands that, by pleading guilty, the defendant is giving up several rights,
including:

a) the right to plead not guilty;

b) the right to a speedy and public trial by jury;

c) the right to assistance of counsel at trial;

d) the right to be presumed innocent and to have the burden of proof placed on
the United States to prove the defendant guilty beyond a reasonable doubt;

e) the right to confront and cross-examine witnesses against the defendant;

Case Document 152 Filed 04/18/16 Page 4 of 11 PageID 1346

f) the right to testify on one?s own behalf, to present evidence in opposition to
the charges, and to compel the attendance of witnesses; and
g) the right not to testify and to have that choice not used against the defendant.

6. The parties agree that the appropriate disposition of this case would be the following

as to each count:

a) The Court may impose any lawful terms of imprisonment, any lawful ?nes,
and any lawful terms of supervised release up to the statutory maximums;

b) The Court will impose special assessment fees as required by law; and

c) The Court may order forfeiture as applicable and restitution as appropriate.
No promises have been made by any representative of the United States to the defendant as to what
the sentence will be in this case. Any estimates or predictions made to the defendant by defense
counsel or any other person regarding any potential sentence in this case are not binding on the
Court, and may not be used as a basis to rescind this plea agreement or withdraw the defendant?s
guilty pleas. The defendant understands that the sentence in this case will be determined by the
Court after it receives the presentence investigation report from the United States Probation Of?ce
and any information presented by the parties. The defendant acknowledges that the sentencing
determination will be based upon the entire scope of the defendant?s criminal conduct, the
defendant?s criminal history, and pursuant to other factors and guidelines as set forth in the
Sentencing Guidelines and the factors set forth in 18 U.S.C. 3553.

7. Given the defendant?s agreement to plead guilty, the United States will not oppose a

two?level reduction for acceptance of reSponsibility under the provisions of Section 3E1.1(a) of the
Sentencing Guidelines. Further, if the defendant?s offense level is 16 or greater, and the defendant

is awarded the two-level reduction pursuant to Section 3E1 the United States agrees to move,

Case Document 152 Filed 04/18/16 Page 5 of 11 PageID 1347

at or before the time of sentencing, the Court to decrease the offense level by one additional level
pursuant to Section 3E1.1(b) of the Sentencing Guidelines. Should the defendant engage in any
conduct or make any statements that are inconsistent with accepting responsibility for the
defendant?s offenses, including violations of conditions of release or the commission of any
additional offenses prior to sentencing, the United States will be free to decline to make such
motion, to withdraw that motion if already made, and to recommend to the Court that the defendant

not receive any reduction for acceptance of reSponsibility under Section 3131.1 of the Sentencing

Guidelines.
8. The defendant agrees to pay the special assessment in this case prior to sentencing.
9. Unless otherwise limited by an agreed preliminary order of forfeiture, the defendant

agrees to forfeit to the United States immediately and voluntarily any property, real or personal,
involved in any violation of Title 18, United States Code, Section 1956, and any property traceable
to such property. Property that is subject to forfeiture includes, but is not limited to, any interest that
the defendant may have in the following: The forfeiture of a personal money judgment of an
amount to be determined at the time of sentencing, but not less than $2.5 million. The defendant
further agrees to assist the United States fully in the identi?cation, recovery, and return to the
United States of any other assets or portions thereof subject to forfeiture. The defendant further
agrees to make a full and complete disclosure of all assets over which the defendant exercises
control and those which are held or controlled by a nominee. The defendant agrees to forfeit all
interests in the properties as described above and to take whatever steps are necessary to pass clear
title to the United States. These steps include, but are not limited to, the surrender of title, the
signing of a consent decree of forfeiture, and the signing of any other documents necessary to

effectuate such transfers. The defendant agrees not to object to any civil or criminal forfeiture

Case Document 152 Filed 04/18/16 Page 6 of 11 PageID 1348

brought against these properties. The defendant agrees to take all such steps to locate such property
and to pass title to the United States before the defendant?s sentencing.

10. The defendant agrees that the Court shall order restitution, pursuant to any applicable
provision of law, for any loss caused to: (1) the victims of any offense charged in this case
(including dismissed counts); and (2) the victims of any criminal activity that was part of the same
course of conduct or common scheme or plan as the defendant?s charged offenses.

11. Financial Obligations. The defendant agrees to pay all ?nes and restitution imposed
by the Court to the Clerk of Court. The defendant also agrees that the full ?ne and/or restitution
amounts shall be considered due and payable immediately. If the defendant cannot pay the full
amount immediately and is placed in custody or under the supervision of the Probation Of?ce at any
time, the defendant agrees that the Bureau of Prisons and the Probation Of?ce will have the
authority to establish payment schedules to ensure payment of the ?ne and/or restitution. The
defendant further agrees to cooperate fully in efforts to collect any ?nancial obligation imposed by
the Court by set-off of federal payments, execution on non-exempt property, and any other means
the United States deems appropriate. The defendant and counsel also agree that the defendant may
be contacted post-judgment regarding the collection of any ?nancial obligation imposed by the
Court without notifying the defendant?s counsel and outside the presence of the defendant?s counsel.
In order to facilitate the collection of ?nancial obligations to be imposed with this prosecution, the
defendant agrees to disclose fully all assets in which the defendant has any interest or over which
the defendant exercises control, directly or indirectly, including those held by a spouse, nominee, or

other third party. In furtherance of this agreement, the defendant additionally agrees to the

following speci?c terms and conditions:

Case Document 152 Filed 04/18/16 Page 7 of 11 PageID 1349

a) If so requested by the United States, the defendant will submit a
completed ?nancial statement to the US. Attorney?s Of?ce, in a form it provides and as it directs.
The defendant promises that such ?nancial statement and disclosures will be complete, accurate,
and truthful.

b) The defendant expressly authorizes the US. Attorney?s Of?ce to obtain a
credit report on the defendant in order to evaluate the defendant?s ability to satisfy any ?nancial
obligation imposed by the Court.

0) If so requested by the United States, the defendant will execute
authorizations on forms provided by the US. Attorney?s of?ce to permit the U.S. Attorney?s Of?ce
to obtain ?nancial and tax records of the defendant.

12. The defendant acknowledges that the principal bene?ts to the United States of a plea
agreement include the conservation of limited government resources and bringing a certain end to
the case. Accordingly, in consideration of the concessions made by the United States in this
agreement and as a further demonstration of the defendant?s acceptance of responsibility for the
offenses committed, the defendant voluntarily, knowingly, and intentionally agrees to the following:

a) The defendant will not ?le a direct appeal of the defendant?s convictions or
sentence with one exception: The defendant retains the right to appeal a sentence imposed above
the sentencing guideline range determined by the Court or above any mandatory minimum sentence
deemed applicable by the Court, whichever is greater. The defendant also waives the right to appeal
the Court?s determination as to whether the defendant?s sentence will be consecutive or partially
concurrent to any other sentence.

b) The defendant will not ?le any motions or pleadings pursuant to 28 U.S.C.

2255 or otherwise collaterally attack the defendant?s convictions or sentence, with two exceptions:

Case Document 152 Filed 04/18/16 Page 8 of 11 PageID 1350

The defendant retains the right to file a 2255 motion as to prosecutorial misconduct and (ii)
ineffective assistance of counsel.

0) The defendant will not, whether directly or by a representative, request or
receive from any department or agency of the United States any records pertaining to the
investigation or prosecution of this case, including, without limitation, any records that may be
sought under the Freedom of Information Act, 5 U.S.C. Section 552, or the Privacy Act of 1974,

5 U.S.C. Section 552a.

13. The defendant agrees that the defendant is a removable alien and agrees to ajudicial
order of removal, a copy of which is attached to this agreement and incorporated by reference
herein. The defendant waives any and all forms of relief from removal or exclusion, and agrees to
abandon any pending applications for such relief and to cooperate with the Department of Homeland
Security during removal proceedings. The defendant further agrees to obtain any travel documents,
including but not limited to identification documents and passport, necessary to facilitate the
defendant?s return to the defendant's country of origin.

14. This plea agreement becomes effective once it is signed by the parties and is not
contingent on the defendant?s entry of a guilty plea. If the United States violates the terms of this
plea agreement, the defendant will have the right to withdraw from this agreement. If the defendant
violates the terms of this plea agreement in any way (including but not limited to failing to enter
guilty pleas as agreed herein, moving to withdraw guilty pleas after entry, or by violating any court
order or any local, state or federal law pending the resolution of this case), then the United States
will have the right to void any or all parts of the agreement and may also enforce whatever parts of
the agreement it chooses. In addition, the United States may prosecute the defendant for any and all

federal crimes that the defendant committed related to this case, including any charges that were

Case Document 152 Filed 04/18/16 Page 9 of 11 PageID 1351

dismissed and any other charges which the United States agreed not to pursue. The defendant
expressly waives any statute of limitations defense and any constitutional or speedy trial or double
jeopardy defense to such a prosecution. The defendant also understands that a violation of this plea
agreement by the defendant does not entitle the defendant to withdraw the defendant?s guilty pleas

in this case.

15. The United States will ?le a supplement in this case, as required in every case by the

Local Rules of the United States District Court for the Eastern District of Tennessee, even though

there may or may not be any additional terms. If additional terms are included in the supplement,

they are hereby fully incorporated herein.

(T he remainder of this page is blank.)

10

Case Document 152 Filed 04/18/16 Page 10 of 11 PageID 
1352

16. This plea agreement and supplement constitute the full and complete agreement and
understanding between the parties concerning the defendant?s guilty plea to the above?referenced
charges, and there are no other agreements, promises, undertakings, or understandings between the
defendant and the United States. The parties understand and agree that the terms of this plea
agreement can be modi?ed only in writing signed by all of the parties and that any and all other
promises, representations, and statements whether made before, contemporaneous with, or after this

agreement, are null and void.

NANCY STALLARD HARR
ACTING UNITED STATES ATTORNEY

?15] when; By: mw, gage-QM

Date? Frank . Dale, Jr. 
AssistaQt United States Attorne

 

 

ey?wj/ 46 W?a/a [Mire/3 Wm);

 

 

Date Amado Valdez?Morales
Defendant
Date vBebjamin Gerald Sharp//

Attorney for the Defendant

11

Case Document 152 Filed 04/18/16 Page 11 of 11 PageID 
1353