Case of I . :1 CALIFO . I . . 5.1" UNITED STATES OF AMERICACLEHa.a.5.-nismm STEVEN RIGLER oureenssn. . . I Knowing washeld to upme pretrial acumqu of mouse offbedefetldam' mum-tots U;s;c. 3142. The Federal Judge an unconditional release. assuantto is ndt-s I giant tea-assure the-appearancc. of the defendant and the safety of the community. Thds,lcon_ itions'pfpreu'ial pursuanth Good cans-e appealing, IT IS ORDERED cpnditibn thame defendant: hat commit a federal, sign: or local crane-during-?thepsriad a make ail ?a'uft ?gpeamnca'and comply with the belpw; as'mjdicated by I 1'4, inspect-dart}; wit}; 8; U, CONDITIONSres traveI t9 an Diego County; El Sou?iem'District ElCanna] of- Cahforma, DState I . - - 2. report for directad by the assi%1ed BSD and pay for the reasonable costs of- 111? an .jdetpt?min and apptowd the court; 3. not possess or use ahy'n?arcotic drugd'r controlled. substance, ?(d??ned?in 21- 802), without :S'L?Iea'=?-P?nd?ncy Dims? . . "I.Esme es arc~resPon31I Isf ., .e II -- . oralfail?fsir?f?th?sl?fs?ial Swansea; daftom arev ooszm -- .actis?ely wide . .., . a must-his s. . ?esta 1 ., .. mama by PIS, - .. @1331sd?fs?rsl Case 3:15-cr-02773-BAS Document 1 Filed 11/03/15 Page 1 of 4 1 FILED 2 NOV 0 3 2015 3 4 5 6 7 a 9 UNI1ED STATES DISTRICT COURT 10 SOUTHERN DISTRICT OF CALIFORNIA 11 12 UNITED STATES OF AMERICA, 13 Plaintiff, 14 . 15 Case No. INFORMATION v. Title 18, United States Code, Section 1349 - Conspiracy to Commit Honest Services STEVEN RIGLER, 16 16 aL-~il3- 8A~ Mail Fraud Defendant. 17~----------------~--------~ 18 19 The U.S. Attorney charges: INTRODUCTORY ALLEGATIONS 20 21 At all times relevant: 22 1. Defendant STEVEN RIGLER (hereinafter referred to as "RIGLER,') was a 23 chiropractor licensed to practice in the state of California, who operated three clinics 24 specializing in chiropractic medicine. 25 2. Chiropractic is a fonn of alternative medicine that emphasizes diagnosis, 26 treatment and prevention of mechanical disorders of the musculoskeletal system, 27 especially the spine, under the belief that these disorders affect general health via the 28 nervous system. It is a healthcare profession, and although chiropractors have many \ Case 3:15-cr-02773-BAS Document 1 Filed 11/03/15 Page 2 of 4 + similarities to primary care providers, they are more similar to a medical specialty like 2 dentistry or podiatry. 3. 3 The main chiropractic treatment techniques involve manual therapy, 4 especially manipulation of the spine, other joints, and soft tissues; treatment may also 5 include exercises and health and lifestyle counseling. 4. 6 Doctors of chiropractic medicine owe a duty of honest services to their 7 patients for decisions made relating to the care of those patients, including the informed 8 choice as to whether to undergo diagnostic testing and obtain durable medical equipment .9 and, if so, an infonned choice as to the providers of such·equipment and testing. 5. 10 Doctors of chiropractic medicine have a legal duty to act solely in their 11 patient's best interests. As such, they are fiduciaries. Fiduciaries may not profit from 12. their relationship with their patient unless they have the patient's express informed 13 consent. They also have a duty to avoid any conflicts of interest between themselves and ·14 their patients. 15 6. Providence Scheduling operated in the Southern District of California as a 16 scheduling service that referred patients to specific chiropractors for care; C.A. and F.l.. 17 directed the activities of Providence Scheduling. 7. 18 19 S.O. was an attorney licensed to practice law in the state of California specializing in workers' compensation. 2o 8. Meridian Medical Resources, Inc. was a supplier of durable medical 21 equipment operating in the Southern District of California; F.l. directed the activities of 22 Providence Scheduling. 9. 23 MedEx Solutions, Inc. was a scheduling servtce for ancillary servtces, 24 including diagnostic imaging; C.A. and F.l. directed the activities of Providence 2s Scheduling. 10. 26 Vital Imaging was a medical dia~ostic company operating in the Southern 27 District of California. 28 II 2 Case 3:15-cr-02773-BAS Document 1 Filed 11/03/15 Page 3 of 4 1 Count 1 2 (Conspiracy - 18 U.S.C. Section 1349) 3 4 11. The Introductory Allegations contained in paragraphs 1 through 9 of this Indictment are re-alleged and incorporated as if set forth fully herein. { 5 12. Beginning no later than August 2013, and continuing through in or about 6 September 2014, within the Southern District of California, and elsewhere, defendant 7 STEVEN RIGLER knowingly and willfully conspired to commit Honest Services Mail a Fraud, that is, knowingly and with the intent to defraud, devising and participating in a 9 scheme to defraud and to deprive patients of the intangible right to RIGLER's honest 1o services by accepting and concealing bribes.and kickbacks, in violation of Title 18, United 11 States Code, Sections 1341 and 1346. MANNER AND MEANS 12 13 14 15 13. In furtherance of the conspiracy, and to accomplish its objects, the defendant utilized the following manners and means, among others: 14. RIGLER, C.A., F .I. and others agreed to and did solicit patients for referral to 16 workers' compensations .attomeys, including S.O., operating in the Southern District of 17 California. 18 15. As part of the agreement, the_attorneys were referred patients to sign up as 19 clients in exchange for directing the patients to Providence Scheduling, which would then 2o refer the patients to specific chiropractors for care. 21 16. RIGLER agreed with C.A., F.I. and others to receive patients referred by 22 Providence Scheduling each month in exchange for kickbacks and bribes, which would be 23 concealed from RIGLER's patients. 24 17. The kickbacks included an agreement between RIG~ER, C.A. and F.I. to 2s direct each patient referred by Providence Scheduling for a specified amount of durable 26 medical equipment from Meridian Medical Resources, Inc. or diagnostic testing from 27 Vital Imaging. RIGLER was required to schedule any diagnostic imaging from Vital 2a Imaging through MedEx Solutions, Inc. 3 Case 3:15-cr-02773-BAS Document 1 Filed 11/03/15 Page 4 of 4 1 18. This agreement entered into by RIGLER, C.A., F.I. and others was made 2 prior to any examination and without regard to the medical .necessity of such medical 3 equipment and services. 4 19. It was agreed to by RIGLER, C.A., F.I. and others that RIGLER would 5 conceal from the patients their agreement that RIGLER would direct his patients to obtain 6 a specific amount of durable medical equipment and diagnostic testing from Meridian ? Medical Resources, Inc. and Vital Imaging. s 9 1.0 11 20. It was agreed that RIGLER would also pay a monthly fee of approximately $3,000 to C .A. and F.I., in exchange for the referral of at least 40 patients per month to RIGLER's chiropractic clinics. 21. The referral agreement with C.A., F .I. and others, resulted in the procuring of 12 hundreds of thousands of dollars in medical equipment and services from Meridian 13 Medical Resources, Inc. and Vital Imaging, which were obtained on the patients' behalf 14 and without their informed consent. 15 22. Meridian Medical Resources, Inc. and.Vital Imaging submitted bills resulting 16 from this scheme to various healthcare benefits programs, including Travelers Insurance, 17 Zenith Insurance Company and others, by placing such bills in an authorized depository 1.8 for the mail, to be sent and delivered by the Postal Service. 19 23. The existence of this concealed agreement regarding bribes and kickback 2o payments was material to the patients' informed consent whether to con~inue with their 21 care under RIGLER. 22 23 24 25 All in violation ofTitle 18, United States Code, Section 1349. · DATED: II\\ \~01f . LAURA E. DUFFY United St~tes Attorney ' By:~ ~ 26 27 28 4 ../ /• l .) I. , Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 1 of 18 II · · j/ :' 1 LAURA E. DUFFY FILED United States Attorney 2 VALERIE H. CHU Assistant United States Attorney 3 California Bar No. 241709 . FRED SHEPPARD 4 Assistant United States Attorney California Bar No. 250781 5 Federal Office Building 880 Front Street, Room 6293 6 San Diego, California 92101-8893 Telephone: (619) 546-6750 I 8237 7 Email: Valerie.chu@usdoj.gov Fred.sheppard@usdoj.gov 8 NOV 0 3 2015 CLERK, U.S. DISTRICT COURT SO E DISTRICT OF CALIFORNIA BY DEPUTY At torneys for United States of America 9 10 UNITED STATES DISTRICT COURT 11 SOUTHERN DISTRICT OF CALIFORNIA 12 Case No. · UNITED STATES OF AMERICA, v. PLEA AGREEMENT 14 16 BA-S Plaintiff, · 13 15 15 e.,\L :;2./7 3- STEVEN RIGLER, Defendant. ~------------------------------~ IT 17 IS HEREBY AGREED between the plaintiff, UNITED STATES OF 18 AMERICA, through its counsel, Laura E. Duffy, United States Attorney, 19 and 20 At torneys, and. defendant STEVEN RIGLER, with the adv ice and consent 21 of Michael D. Stein, counsel for defendant, as follows: Valerie H. Chu and Fred Sheppard, Assistant United States 22 23 24 TBE PLEA Defendant agrees to waive Indictment and plead guilty to an 25 Information charging Conspiracy to Commit Honest Services Mail Fraud, 26 in violation of 18 U.S.C. 27 the . provisions 28 forfeiture in this case. Plea Agreement of the § 1349. attached In addition, defendant agrees that for fe iture addendum shall Def . Initials govern ~ I /'/~ / ..:' '} Case 3 :15-cr-02773-BAS Document 3 Filed 11/03/15 Page 2 of 18 I " j/ r II . 1 2 NATURE OF THE OFFENSE 3 A. 4" Defendant 5 ELEMENTS EXPLAINED 1. the offense to which defendant is There was an agreement between two or more persons to commit Honest Services Mail Fraud; 7 2. 8 The defendant entered into the agreement least 9 one of its objects and knowing of at intending to help accomplish it. 10 11 To obtain forfeiture 12 · show that 13 traceable 14 fraud. 16 that pleading guilty has the following elements: 6 15 understands the to assets his of assets, constitute, participation the or in government would were the derived have from, conspiracy to to proceeds commit mail The elements of Honest Services Mail Fraud are as follows: 1. The defendant devised or knowingly participated in a 17 scheme to deprive a victim of his or her right to the 18 defendant's honest services; 19 2. defendant receiv ed in exchange for his servicesi 20 21 3. The defendant, as a healthcare 4. The defendant victim with the intent of his or depriving 25 defendant's honest services; 5. the acted 24 26 professional, owed a fiduciary duty to the victim; 22 23 The scheme consi sted of concealing a kickback that the The defendant's · act was material; 27 natural 28 influencing, a person's acts; and 2 Pl ec:t Ag r e ement tendency to influence, to her defraud right that is, or was to by the it had a capable Def. Initials of 5;(_ r .' . ' ) Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 3 of 18 1 6. Th~ defendant used, 2 mails 3 scheme or plan. ~LEMENTS 4 B. 5 Defendant or to carry out caused or to someone attempt to to use, carry the out the UNDERSTOOD AND ADMITTED - FACTUAL BASIS has fully discussed the facts of this case with 6 defense counsel. · Defendant has committed each of the elements of the 7 crime, and admits that there is a factual basis for this guilty plea. 8 The following facts are true and undisputed: 9 1. From at least August through 2013, 10 Defendant was a chiropractor, 11 the 12 things, 13 in chiropractic medicine. 14 a 15 duty to his patients. 16 2. Southern this time 18 Carlos 19 various front companies. In California. referred Arguello, Defendant period, patients 3. licensed to practice in Among other As a licensed chiropractor, professional, 17 20 of 2014, · De.fendant operated three clinics specializing medical During District September to Defendant his Fermin exchange owed and referral to have clinics others of by through patients Defendant's 22 that 23 obt a in $600 worth of durable medical equipment ("DME") 24 and/or under go magne tic 25 other diagnostic testing. 26 4. As f urther pati e nts 27 to part Defendant to 21 he and his clinics, fiduciary agreed chiropractic Iglesias chiropractic a staff would direct of specific resonance the DME, scheme, MRI each patient to imaging ("MRI") Defendant or agreed o t her referred diagnostic 28 Plea Agreemen t 3 or Def. Initials ~ 'I Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 4 of 18 1 testing 2 Fermin Iglesias and others. 5. 3 providers as directed by Carlos Arguello, Patients referred to Defendant's chiropractic practice 4 as part of this scheme were not advised prior to being 5 examined that Defendant 6 each of them receive at least $600 worth of DME, MRI 7 or other diagnostic test i ng. 8 the concealment of this information was material to a 9 patient's determination as to whether t o continue in 10 his or her care with Defendant or to seek treatment 11 from 12 provider. 6. 13 another had agreed to recommend that chiropractor Defendant agrees that or other health care As a further part of the scheme, Defendant caused DME, 14 MRI and similar diagnostic testing providers to submit 15 claims, inter alia, via the mail, 16 costs from health care benefits programs. 7. 17 for payment of the From at least August 2013, through September 2014, as 18 part of this scheme, Defendant was sent, on average, 19 more than 40 patients per month. 20 21 22 *** Without any condition or ~•servation whatsoever, Defendant agrees that these facts are true and correct and may be utilized at any trial (including the Government's case-in-chief), 23 proceeding against DefendAnt or any other individual. hearing or *** 24 25 2f) 27 II 28 II Pl ea Agre eme nt 4 Def. Initials --~---- ., Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 5 of 18 1 III 2 PENALTIES 3 4 Defendant understands that the crime to which defendant is pleading guilty carries the following penalties: 5 A. a maximum 20 years in prison; 6 B. a maximum $250,000 fine; 7 C. a mandatory special assessment of $100 per count; and 8 D. a term of supervised understands 9 that release failure to of years. 3 comply with Defendant any of the 10 conditions of supervised release may result 11 of 12 .prison, upon any such r .e vocation, all or part o f 13 statutory 14 offense that resulted in such term of supervised release. E. 15 supervised release, maximum requiring term of defendant 17 the 18 victims{s). 19 also 20 agreement, 21 of the offense of conviction. F. 22 defendant supervised an order from the Court pursuant to 18 16 make mandatory offense of Defendant order, if agreed or u.s.c. the for to parties the victim(s) the in 3663A that estate{s) that the serve the § the understands by to release restitution to conviction, in revocation of Court in this of the shall plea restitution to persons other than the victim(s) an order of forfe iture of any property, real or personal, 23 which constitutes or is derived from proceeds traceable to 24 the offense. 25 II 26 II 27 // 28 II Plea Agreement 5 Def. Initials q{._ ., Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page '• 1 IV 2 DEFENDANT' S WAIVER 01' 'fRIAL RIGH'fS 6 of 18 3 Defendant understands that this gui lty plea waives the right t o : 4 A. 5 Continue to plead not guilty and require the Goverrument to prove the elements of the crime beyond a reasonable doubt; 6 B. A speedy and public trial by jury; 7 c. The assis t ance of counsel at a ll stages of trial; 8 D. Confront and cross-examine adverse witnesses; 9 E. Testify and present evidence and to have witnesses testify on behalf of defendant; and, 10 11 F. failure to testify. 12 13 14 Not testify or have any adverse inferences drawn from the Defendant knowingly and voluntarily waives defenses Defendant may have under the Excessive Fines any rights Cl·a use of and the 15 Eighth Amendment to the Unit ed States Constitution to the forfeiture 16 of property in this proceeding or any related civil proceeding. 17 v 18 DEFENDANT ACKNOWLEDGES NO PRETRIAL RIGHT TO BE PROVIDED WZTH IMPEACHMENT AND AFFIRMATIVE DEFENSE INFORMATION 19 20 21 22 23 24 25 26 The Government represents that any information establishing the factual innocence of defendant known t o the undersigned prosecutor in this case has been turned over to defendant. continue to p rovide such information The Government will establishing the f actual i nnocence of defendant. Defendant understands that if this case proceeded to trial, the Government would re l a ting · to any be required informants to · provide or other impeachment witnesses . In information addition, if 27 defendant raised a n affirmative defense, the Government would 28 Plea Agreement 6 Def. Initials be .. .. Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 7 of 18 1 required to provide information in its possession that supports such 2 a defense. 3 defendant will not 4 defendant also waives 5 defendant agrees not to attempt to withdraw the guilty plea or to 6 file a collateral attack based on the existence of this information. Defendant acknowledges, however, that by pleading guilty be provided the this right to information, this information. 7 VI 8 DEFENDANT'S REPRESENTATION THAT GUILTY PLEA IS KNOWING AND VOLUNTARY 9 10 11 Defendant represents if any, and Finally, t~at: A. Defendant has had a full opportunity to discuss all the facts and circumstances of this case with defense counsel and has a clear understanding of the charges and the" consequences of this plea. Defendant understands that, by pleading guilty, defendant may be giving up, and rendered ineligible to receive, valuable government benefits and c~v~c rights, such as the right to vote, the right to possess a firearm, the right to hold office, and the right to serve_ on a jury. Defendant further understands that the conviction i n this case may subject defendant to various collateral consequences, including but not limited to deportation, removal or other adverse immigration consequences; revocation of probation, parole, or supervised release in another case; debarment from government contracting; and suspension or revocation of a professional license, as well as civil and administrative liability, none of which will serve as grounds to withdraw 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 defendant or defendant 's family to induce this guilty plea. D. Defendant is pleading guilty because in truth and in fact defendant is guilty and for no other reason. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Plea Agre eme nt 7 Def. Initials ~ Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 8 of 18 1 VII 2 AGREEMEN'l' LDa"lED TO U.S. ATTORNEY' S OFFICE SOUTHERN DISTRICT OF CALIFORNIA 3 This plea agreement is limited to the United States Attorney's 4 5 6 7 8 9 Office for the Southern District of California, other federal, state or local defendant. VIII APPLICABILITY OF SENTENCING GUIDELINES Defendant understands the sentence imposed will. be based on the 12 15 16 17 18 19 20 21 22 23 24 25 26 27 or agreement to the attention of other authorities if requested by the 11 14 administrative, regulatory authorities, although the Government will . bring this plea 10 13 prosecuting, and cannot bind any factors set further that forth in in 18 imposing u.s.c. the § 3553(a}. sentence, the Defendant understands sentencing judge must consult the United States Sentencing Guidelines (Guidelines} and take them the into defense account. counsel advisory, Defendant and has understands not mandatory, discussed that the Guidelines Guidelines and the Court may impose a are with only sentence more severe or less severe than otherwise applicable under the Guidelines, up to the maximum in the understands further that the statute of conviction. Defendant sentence cannot be determined until . a presentence report has been prepared by the U.S. Probation Office and both defense counsel and the Government have had an opportunity to review and challenge the presentence repor t. Nothing in this plea agreement Government • s shall be construed as limiting the provide complete and accurate facts duty to to the district court and the U.S. Probation Office. 28 Plea Ag .t eement 8 Def. Initials ~ Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 9 of 18 1 IX 2 SENTENCE IS WITHrN SOLE DISCRETION OF JUDGE 3 This plea agreement is made pursuant to Federal Rule of Crimina l 4 Procedure 11 (c) ( 1} (B) . 5 within the sole discretion of the sentencing judge. 6 has not made and will not make any representation as to what sentence· 7 defendant will receive. 8 judge may impose the maximum sentence 9 also aware that any Defendant understands that the sentence is The Government Defendant understands t hat the estimate prediction, of provided by statute, the probable promise, sentence by and is defense 10 counsel is a 11 Court. Likewise, 12 binding on 13 defendant's 14 understands that if the sentencing judge does not follow any of the 15 parties' 16 right to withdraw the plea. the not a sentencing and is not binding on the the recommendation made by the Government is not Court, and it sentence will be. sentencing is uncertain at defendant nevertheless 17 X 18 PARTIES' SENTENCING RECOMMENDATIONS A. 20 Although the parties 21 . 22 time what Defendant also has been advised and recommendations, 19 this has no SENTENCING GUIDELINE CALCULATIONS understand that the Guidelines are only advisory and just one of the factors the Court will consider under 18 U.S .C. § 3553 {a) the in imposing a following Base sentence, 23 recommend Offense 24 Characteristics, Adjustments and Departures: the parties will jointly Level, Offense Specific 25 26 1. 2. 27 3. 28 4. Pl ea Agreeme n t Base Offense Level [§ 2B1.1] Loss or Gain between $200,000 and $400,000 [§ 2Bl.l (b) (1) (G)] More than 250 victims [§ 2Bl.l (b} {2) (B)] Acceptance of Responsibility [§ 3E1.1 ] 9 7 +12 +6 -3 De f. Initials 'if._ .. ., Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 10 of 18 1 B. 2 Notwithstanding paragraph A. 7 above, the Government will not be ACCEPTANCE OF RESPONSIBILITY 3 obligated 4 Responsibility if 5 acceptance responsibility 6 following: to of 1. 7 recommend any defendant adjustment engages in including, for conduct but Acceptance inconsistent not limited of with to, the Fails to truthfully admit a complete factual basis as 8 stated in the plea at the time the plea is entered, or 9 falsely 10 denies, or makes a statement inconsistent with, the factual basis set forth in this agreement; 11 2. Falsely denies prior criminal conduct or convictions; 12 3. Is untruthful with the Government, the Court or probation officer; 13 14 4. Materially breaches this plea agreement in any way; or 15 5. Contests or assists any third party in contesting the 16 forfeiture of property(ies) 17 this 18 defendant has agreed to forfeit as set forth in the 19 attached forfeiture addendum. c. 20 The 22 24 25 26 27 and any property (ies} to which the FURTHER ADJUSTMENTS AND SENTENCE REDUCTIONS INCLUDING THOSE UNDER 18 U.S.C. § 3553 21 23 case, seized in connection with parties additional agree downward that adjustments, history departures under USSG 18 u.s.c. adjustments, 3553. § defendant The departures § may request departures, or including recommend criminal 4Al. 3, or sentence reductions under Government will and sentence oppose any such reductions not set downward fort h in Section X, paragraph A above. 28 Pl e a Agreement 10 Def. Initials ~- ... Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 11 of 18 1 D. 2 The parties have no agreement as to defendant's Criminal.History 3 NO AGREEMENT AS TO CRIMINAL HISTORY CATEGORY Category. 4 E. ,.FACTUAL BASIS" AND "RELEVANT CONDUCT,. INFORMATION 5 The parties agree conduct" 8 circumstances of the offense under 18 U.S.C. § 3553(a) (1). lBl. 3 may "factual "relevant § and the 7 USSG true, in of under are facts paragraph 10 agreement the 6 9 this that and as F. PARTIES' RECOMMENDATIONS REGARDING CUSTODY The parties agree that the Government be will basis" considered the nature recommend as and that 11 defendant be sentenced at the low end of the advisory guideline range 12 as calculated by the Government pursuant to this agreement. 13 G. SPECIAL ASSESSMENT/FINE/RESTITUTION/FORFEITURE 14 1. Special Assessment. 15 The parties will jointly recommend that defendant pay a special 16 assessment in the amount of $100.00 to be paid forthwith at time of 17 sentencing. 18 of the Clerk of the District Court by bank or cashier's check or 19 money The special assessment shall be paid through the office order made payable to the "Clerk, United States District 20. Court." 21 2. In light of the forfeiture order, the parties do not request a 22 23 · Fine. fine. 24 3. 25 Restitution. The parties do not recommend imposition of a restitution order 26 in light of the difficulty of determining 2? Defendant's conduct to the victims. the loss caused 18 USC§ 3553A(c) (3) (B}. 28 Plea Agreement 11 by Def. Initials ~ Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 12 of 18 1 4. 2 the 3 case. Forfeiture. attached 4 H. 5 If the Defendant agrees that the provisions of forfeiture addendum shall govern forfeiture in this SUPERVISED RELEASE Court imposes a term of supervised release, defendant 6 agrees that he will not later seek to reduce or terminate early the 7 term of supervised release until he has served at least 2/3 of his 8 term of supervised 9 special assessments, 10 release and has fully fine, . criminal paid and forfeiture satisfied any judgment and restitution judgment. 11 XI 12 DEFENDANT WAIVES APPEAL AND COLLATERAL ATTACK 13 A. 14 In WAIVER OF RIGHT TO APPEAL CONVICTION exchange for the United States' concessions in this plea 15 agreement, Defendant waives, to the full extent of the law, any right 16 to appeal the conviction(s). 17 B. WAIVER OF RIGHT TO APPEAL SENTENCE In addition, . 18 right to Defendant waives, appeal 19 any 20 custodial 21 calculated in par agraphs X.A and X. B above, without consideration of 22 any other adjustments or departures. 23 greater t han the h igh end of that range, 24 sentence 25 appeal the sentence actually imposed. sentence only, but the to the full extent of the law, above the sentence, the high unless end United States of If the the Court imposes a guideline range as the custodial will sentence is Defendant may appeal the be free to support on 26 27 28 Plea Agreement 12 Def. Initials c;{_ Case 3:15-cr-02773-BAS Document 3 Filed 11/03115 Page 13 of 18 1 c. 2 Defendant waives, to the full extent of the law, any right to WAIVER OF RIGHT TO COLLATERAL ATTACK 3 collaterally attack the conviction and/or sentence, 4 post-conviction collateral attack based on a 5 assistance of counsel. 6 D. 7 If Defendant believes the United States' except for a claim of ineffective OBJECTIONS TO UNITED STATES' RECOMMENDATION recommendation is not 8 in accord with this plea agreement, Defendant will object at the time 9 of sentencin,g ; otherwise the objection will be deemed waived. 10 XII 11 BREACH OF THE PLEA AGREEMEN'r 12 A. 13 Defendant MATERIAL BREACH OF PLEA. AGREEMENT acknowledges, understands, and agrees that if 14 Defendant violates or fails to perform any of Defendant's obligations 15 under 16 constitute a mate r ial breach of this agreement. this agr eement, such violation or failure to perform will 17 Defendant acknowledges, understands, and agrees further that the 18 fol l owing non-exhaustive list of conduct by ·Defendant unquestionably 19 constitutes a material breach of this plea agreement: 20 1. Failing to plead guilty pursuant to this agreement; 21 2. Withdrawing the guilty plea or attempting to withdraw the guilty plea; 3. Failing to fully accept responsibility as es t ablished in Section X, ' paragraph B, above; 24 4. Failing to appear in court; 25 5. Failing to abide by any lawful court order related to this case; 6. Appeal ing or collaterally attacking the sentence. or conviction in violation of Section XI of this plea agreement; or 22 23 26 27 28 PJ.ea Agre ement 13 Def. Initials ~ .. Case·3:15-cr-02773-BAS Document 3 Filed 11103/15 Page 14 of 18 1 7. Engaging in additional criminal conduct from the time of arrest until the time of sentencing. 2 CONSEQUENCES OF BREACH B. 3 In the event of Defendant's material breach of this plea 4 agreement, ·Defendant will be able United States will not to enforce any of its relieved of all its 5 provisions, 6 and obligations the under this may pursue plea be agreement. For 7 United States any charges incl uding example, those t he that were B dismissed, promised to be dismissed, or not filed as a result of this 9 10 agreement (Defendant agrees that any statute of limitations relating to such charges is tolled as of the date of this agreement; Defendant 11 12 also waives any double jeopardy defense to such charges). In addition, the United States may move to set aside Defendant's guilty 13 plea. Defendant may not withdraw the guilty plea based on the 14 United States' pursuit of r emedies . for Defendant's breach. 15 XIII 16 COMPLE~E WArvER OF PLEA-DISCUSSION EXCLUSION RIGHTS 17 In exchange for the United States' concessions in this 18 agreement, Defendant . agrees that: (i) the stipulated factual basis 19 ~tatement in this agreement; (ii) any statements made by Defendant, 20 under oath, at the guilty plea hearing (before either a Magistrate 21 Judge or a District Judge); and (iii) any evidence derived from such 22 statements, are admissible against Defendant in the prosecution's 23 case-in-chief and at any other stage of t he proceedings in any 24 prosecution of or action against Defendant on the current charges 25 and/or any other charges that the United States may pursue against 26 27 Defendant. intelligently Additionally, waives any Defendant argument voluntarily, knowingly, under the United and States 28 Plea Agreeme nt 14 De f. Initials ~ ..·• Case 3:15-cr-02773-BAS Document 3 Filed 11103/15 Page 15 of 18 1 Constitution, any statute, Federal Rule of Evidence 410, Federal Rule 2 of Criminal 3 Procedure 11 (f), and/or any other federal rule, that these statements or any evidence derived from these statements should 4 be suppressed or are inadmissible. Defendant's waiver of the 5 aforementioned rights is effective as soon as the parties sign this 6 agreement, and is not contingent upon the Court ultimately accepting 7 Defendant's guilty plea. a nv 9 StmST.ANTIAL ASSISTANCE 10 A. 11 prosecution If Defendant attempts to assist in the investigation and·. of others, there is no guarantee that this future 12 cooperation, if any, will be deemed "substantial," or whether it will 13 merit a downward departure from. the Sentencing Guidelines. B. 14 If requested by the United States, Defendant agrees to be 15 interviewed again by federal and state law enforcement agents and 16 attorneys and to tell everything Defendant knows about every person 17 involved presently or in the past in the charged criminal offense(s), 18 as well as other violations of law. 19 all documents and other evidence in Defendant's possession or control 20 related to these violations. c. 21 Defendant agrees Defendant also agrees to produce not to do any undercover work or tape 22 record any conversations or gather evidence unless instructed by the 23 agent assigned to Defendant. 24 criminal activity undertaken without instructions. D. 25 Defendant agrees Defendant can be prosecuted for any to provide statements under penalty of 26 perjury and to testify before any federal or state grand jury, and at 27 any pretrial, trial, or post-trial proceedings. Defendant 2B Plea Agreement 15 Def. Initials will ~ .... Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 16 of 18 1 provide complete, truthful, and accurate information and testimony. 2 Defendant agrees to submit to a polygraph examination to test the 3 truthfulness 4 United States. 5 E. of Defendant's statements, upon request by the · As discussed in section XIII above, the factual admissions 6 in this plea agreement and any statements made by Defendant at any 7 guilty plea hearing (as well as any evidence derived from them) 8 admissible 9 However, against Defendant in this and the United States agrees that, all future are proceedings. if Defendant fully complies 10 with this plea agreement, it will not make use of any of Defendant's 11 statements to law enforcement in the course of cooperation and during 12 the period of post-plea cooperation in any further prosecution of 13 Defendant for any offense, 14 in USSG § lBl. 8. 15 agreement, .all statements made by Defendant before, during, and after 16 this plea statements, 18 court. F. 19 If Defendant does not fully comply with this plea agreement, 17 can or in Defendant's sentencing as provided be Statements and any leads used against made by or evidence derived from such Defendant Defendant and are pursuant admissible to this in plea 20 agreement are not statements ''made in the course of any proceedings 21 under Rule 11 of the Federal Rules of Criminal Procedure" and are not 22 statements "made in the course of plea discussions." 23 G. If 24 Defendant has 25 date of 26 agreement, 27 this it the United States Attorney's Office that provided additional substantial assistance after the agreement, will file and a has motion 18 U.S.C. § 3553 and/or USSG § 5Kl.l. fully complied for downward departure a 16 with this plea under Defendant understands that the 28 Plea Agreement decides Def. Initials~ .. \ ~·, ·I · Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 17 of 18 1 starting point for any substantial assistance departure will be t he 2 greater of 3 Guidelines the applicable range. mandatory minimum Defendant or acknowledges the that pre-departure even if the 4 United States makes a motion, the Court may reject the United States' 5 motion. and recommendation for departure and refuse to depart 6 downward, and Defendant would not be allowed to withdraw Defendant's 7 guilty plea. 8 H. 9 If the United States Attorney's Office decides to make a substantial assistance motion, 10 of: (1) this plea agreement; assistance; 12 United States relevant to sentencing. I. If (3) all (2) the nature and extent of Defendant's 11 13 and it will inform the sentencing judge Defendant information provides materially 14 misleading testimony or information, any other way, the in the possession false, of incomplete, the or or breaches this plea agreement 15 in United States may prosecute Defendant in 16 connection with all federal criminal violations of which it is a ware, 17 as set forth .in Section XII above, including a prosecution for false 18 statements, perjury, and/or obstruction of justice. The United States 19 may also pursue any other remedy for breach of the plea agreement, as. 20 set forth in Section XII above. Any prosecution or sentence resulting 21 from a 22 provided by Defendant. breach of this plea agreement may be based on information 23 XV 24 ENTID AGREEMENT 25 This plea agreement embodies the entire agreement between the 26 parties and supersedes any other agreement, written or oral. 27 28 Plea Agreement 17 Def. Initials I· /' Case 3:15-cr-02773-BAS Document 3 Filed 11/03/15 Page 18 of 18 J i ·-·-/ I I I i 1 XVI 2 MODIFICATION OF AGREEMENT Mt1S'l' BE IN WRITING 3 No modification of this plea agreement shall be effective unless 4 in writing signed by all parties. 5 XVII 6 DEFENDANT AND COUNSEL FULLY UNDERSTAND AGREEMENT By signing this 7 B has read it. agreement, defendant certifies that Defendant Defendant has discussed the terms of this agreement 9 with defense counsel and fully understands its meaning and effect. 10 XVIII 11 DEFENDANT SATISFIED WITH COUNSEL Defendant 12 has consulted with counsel and is satisfied with 13 counsel's representation. 14 and his counsel did not advise him about what to say in this regard . 15 This is defendant's independent opini on, LAURA E. DUFFY United States Attorney 16 ~At.~ 17 18 19 20 21 22 DATED ney 2- 2~-/5 DATED Defense Counsel 23 24 25 IN ADDITION TO 'l'HE FOREGOING PROVISIONS TO WHICH I AGREE, I SWEAR UNDER PENALTY OF PERJURY THA'l' THE FACTS IN THE "FACTUAL BASIS" SECTION ABOVE .ABE TRUE. 26 DAr£2 f!r27 28 Pl ea Agreement 18 Def . Initials ~ Case 3:15-cr-02773-BAS Document 6 Filed 11/03/15 Page 1 of 4 -------·---------~ FiLED 1 FORFEITURE ADDENDUM TO 2 United States v. 3 Criminal Case No. 4 r. j 2015 Defendant understands and agrees that this forfeiture addendum 5 to the plea agreement will be filed with the Court at the same time 6 as the filing of the main plea agreement. 7 11 plea colloquy the Court will have At the time of the Rule before it the main plea 8 agreement and one or more addenda, and any reference during the 9 hearing to the ·"plea agreement" will be understood to be a 10 reference to the main plea agreement to_g ether with these addenda. 11 Both parties will insure that the Court is aware of and is 12 considering both the plea agreement and these addenda at the Rule 13 11 hearing . If this issue is not raised by either party at the 14 Rule 11 hea ring, any objection relating to that issue will be . 15 considered waived. 16 I, the defendant , certify that I have read the preceding 17 paragraph (or it has been read to me in my native language ), and 18 that I have dis cussed it with my counse l and fully understand its 19 meaning and effect. I. am satisfied with counsel's representation. STEVEN RI G Defendant 24 Acknowledgment by Defense 25 26 R Counsel~~ 2.., l"l _,{iJ Date 27 28 II MICHAEL D. STEIN Defense Counsel Case 3:15-cr-02773-BAS Document 6 Filed 11/03/15 Page 2 of 4 1 A. Property Subject to Forfeiture. In addition to waiving 2 Indictment and pleading guilty to an Information, as set forth in 3 Section I of the main agreement, defendant agrees· to forfeit the 4 following assets (hereinafter "Subject Assets"), which consist of 5 proceeds of a conspiracy to commit offenses, and substitute assets: 6 • $150,000 in 7 derived from 8 participation in the conspiracy to commit honest services 9 mail fraud. 10 B. U.S. currency, proceeds Bases of Forfeiture . 13 § 14 to 15 § to 18 to or is . Defendant's Defendant acknowledges that all U.S.C. is subject to forfeiture as § 98l(a) (1) (C) and 28 U.S.C. 2461(c), and as substitute assets for property otherwise subject forfeiture· pursuant to u~s.c. 21 § 853(p) and 28 u.s.c. 2461 {c). c. 16 pursuant constitutes traceable 11 property covered by this agreement 12 proceeds which Immediate 17 Defe ndant consents Entry and of Preliminary agrees to the Order of immediate Forfeiture. entry of a 18 preliminary order of forfeiture upon entry of the guilty plea. 19 Defendant further agrees that upon entry of the preliminary order 20 of forfeiture, 21 defendant's such interests order in will the be considered property. final Defendant as to agrees to 22 immediately withdraw any claims to property directly or indirectly 23 related to the criminal conduct seized in connection with this case 24 in arty pending administrative and civil forfeiture proceeding, and 25 consents to the f orfeiture of all properties seized in c onnection 26 with this case to the United States. Defendant agrees to execute 27 any and a ll documents requested by the Government to facilitate or 28 complete the forfeitur e process. Defendant further agrees not to 2 Def. 's Init ials<:;(_ .v ' Case 3:15-cr-02773-BAS Document 6 Filed 11/03/15 Page 3 of 4 •' 1 contest or to assist any other person or entity in contesting the 2 forfeiture of the property seized in connection with this case. 3 Defendant specifically agrees to obtain from any party who has an 4 interest in the Subject Assets, including Defendant's spouse and 5 mother-in-law, any consent forms required to facilitate or complete 6 7 the forfeiture of the Subject Assets. D. Entry of Orders of Forfeiture and Waiver of Notice. 8 Defendant consents and agrees to the entry of orders of forfeiture 9 for such property and waives the requirements of Federal Rules of 10 Criminal 11 forfeiture Procedure in the 32.2 and charging 43(a} regarding instrument, notice of the announcement of the 12 forfeiture at sentencing, and incorporation of the forfeiture in 13 the judgment. Defendant acknowledges that defendant understands 14 that the forfeiture of assets is part of the sentence that may be 15 imposed in this case and waives any failure by the Court to advise 16 defendant of this, pursuant to Rule 11 (b) ( 1) ( J ), at t he time the 17 Court accepts the guilty plea. 18 E. Waiver of Constitutional and Statutory Challenges. 19 Defendant further agrees to waive all constitutional and statutory 20 challenges in any manner (including direct appeal, habeas corpus, 21 or any other means ) to any forfeiture carried out in accordance 22 with this agreement on any grounds , including that the forfeiture 23 constitutes an excessive fine or punishment. Defe~dant agrees to 24 take all steps as requested by the United States to pass clea r 25 title to forfeitable assets to the United States, and to testify 26 truthfully in any judicial forfeiture proceeding . 27 F. Agreement 28 Defendant agrees Survives that the Defendant; forfeiture 3 No Forfeiture provisions of Def.'s Ab atement. this plea Initials~ .. Case 3:15-cr-02773-BAS Document 6 Filed 11/03/15 Page 4 of 4 1 agreement are intended to, and will, survive defendant, 2 notwithstanding the abatement of any underlying criminal conviction 3 after the execution of this agreement. 4 The forfeitabili ty of any particular property pursuant to this agreement shall be determined 5 as if defendant had survived, and that determination shall be 6 binding upon defendant's heirs, successors and assigns until the 7 agreed forfeiture, including any agreed money judgment amount, is· 8 collected in full . 9 The defendant understands that the main plea agreement, t h is 10 and any other addendum embody the entire plea agreement between the 11 parties and supersedes any other plea agreement, written or oral. 12 13 FOR THE DEEFNDANT: :: oaterJ(fr 16 ACKNOWLEDGMENT BY DEFENSE COUNSEL: 17 18 19 Date Defense Counsel 20 21 FOR THE GOVERNMENT: 22 23 24 LAURA E. DUFFY United 27 Attorney v~ ~'~j(lf Date rney 25 26 State~ 'Z .. 2-S''" Zo\S Date FR rney 28 4 Def. 's Initials q{ Case 3:15-cr-02773-BAS Document 12 Filed 12/02/15 Page 1 of 1 ORIGINAL 1 ,...,. ,., - ,.. Z~l5 I ' ... . €. 1,.. •., 2 -· . ;-~ 3 "~·I ll • ~ :.·o -·· lt • l • (4 (11 \...it • , ~:·_~ - f~ :I - '::.;_u·<:;r~-:if. ~; --~·:) ::t.;:. · .")f"i:; ri"'' 4 5 UNITED STATES DISTRICT COURT 6 SOUTHERN DISTRICT OF CALIFORNIA UNITED STATES OF AMERICA, 7 8 Case No . Plaintiff, v. 9 10 ORDER OF LIMITED UNSEALING OF INDICTMENT, SUPERSEDING INFORMATION, PLEA AGREEMENT, AND FOREFEITURE ADDENDUM STEVEN RIGLER, Defendant. 11 UNDER SEAL · 12 13 a-----------------------------------~ IT IS HEREBY ORDERED THAT : 14 16 17 18 19 20 21 . 11, 2015, 25 26 27 28 the Information, Plea Agreement, and Forfeiture Addendum shall be unsealed for the limited purpose of allowing them to be used as exhibits to the testimony of Defendant Steven Rigler in proceedings before a Grand Jury convened by the San Diego District Attorney's Office, and to further be made part of the public record at the conclusion of that proceeding as required by applicable California state rules or court order. (2) All filings and events in the case record shall be unsealed 23 24 From the date of the signing of this order until December (1) 15 22 l5CR2773 - BAS as of December 11, 2015. IT IS SO ORDERED. DATED HON~ United States District Judge Case 3:15-cr-02773-BAS Document 11 Filed 12/02/15 Page 1 of 2 .,. . ORIGINAL· .. 1 2 3 4 5 6 7 8 9 10 FILt:.fJ LAURA E . DUFFY United States Attorney VALERIE H. CHU Assistant United States Attorney California Bar No. 241709 CAROLINE P. HAN Assistant United States Attorney California Bar No. 250301 FRED A. SHEPPARD Assistant United States Attorney California Bar No. 250781 Federal Office Building 880 Front Street, Room 6293 San Diego, California 92101-8893 Telephone: (619) 546- 6750/6968/8237 Email: Valerie.chu®usdoj . gov Caroline.han®usdoj.gov Fred.sheppard®usdoj.gov Attorneys for .United States of America 11 12 UNITED STATES DISTRICT COURT 13 SOUTHERN DISTRICT OF CALIFORNIA 14 UNITED STATES OF AMERICA, Case No. Plaintiff, · 15 v. MOTION FOR LIMITED UNSEALING OF 16 17 15CR2773-BAS INDICTMENT, SUPERSEDING INFORMATION, PLEA AGREEMENT, AND STEVEN RIGLER, FOREFEITURE ADDENDUM Defendant . 18 EX PARTE AND UNDER SEAL 19~------------~----------------~ 20 COMES NOW the United states and hereby moves the Court to unseal 21 the following: 22 Addendum, 23 used 24 proceedings before a ·Grand Jury convened by the San Diego District 2S Attorney's Office, and to further be made part of the public record 26 at 27 California state rules or court order. as the the Information, Plea Agreement, and Forfeiture for the limited purpose of allowing these pleadings to be exhibits conclusion to of the testimony of that proceeding Defendant Steven as required by Rigler in applicable 15CR2773-BAS Case 3:15-cr-02773-BAS Document 11 Filed 12/02/15 Page 2 qf 2 ,. ' . 1 That proceeding should conclude no later than Decemoer 11, 2015, 2 and the United States accordingly moves to unseal the aforementioned 3 documents, and the case record, for all purposes as of that date. RESPECFULLY SUBMITTED, LAURA E. ))UFFY United States Attorney · V;~t!)h VALERIE )':1. CHU Assistant u .s. Attorney 2 ·· ·' ':-'"· .· ,. •. ~; ·...:.•Case3:15-c~~;-~~£2~:ag~::l~~~~~:- ~1·:-;,~ FILED ------· ... ~- · -;... ..... . . . .-· .. -· ----·-~ __.,.,- ·-···----- --·- -------- .... VS .. s+( ve- !A \(:, C'),.- \ ( ~ . t '' )) v . . .-· to'·THE \JNtr.ED·STAtES MARSHAL AND I OR WARDEN; ME1i :OP LITAN CORRECT10NAL "CENtER:". . - .. .... ·- ·-d .· · Beadvlsadthatunderdateof . · · · •• ' • . ,1 •• .. . • " . ':"l. ... . ·· .. •.::. · · • . .the Court ent8rad the foDowing order: : __.:._....;.......;___:.,._ _ . ·. Defendant eontlnued ·on s~Pt!rvlsed /unsupe~i&ett probation I ~iSe;, ..,,_: ..·.··· ~---,-----'-.,...;.·.-· Defendant remal:lded and ( · ·· : . ·. · ~ ,<: · · · bo_~ onJ1ppeaJ) &JConerated... ·· --'---~-...:......,..:._.Defendant 8enteneed to·TIME SERvED, $upeniiled rel~Se ·;a/ ··:: ·.. ·yeat$; ·~· · ...·/ ·.·'·· . -:·. . ---'--......:....- - ·Bench Warrant Recalied. - - -- - I ·•'· ....;......._....;...._...___Case dlsmfssed, charges pending. in case no. _ _ _ _ _ _ _ _ _ _ _ _ _---='""_ ~---------- ~her..~~~~--~~--~------~--------------------~----~-.. CVNTHIAA. ~ :- · UNI;~D STATel_~$l7MAtiiSTAATE JUDGE : . . JOAN MORRILL ;' , by . CO~~~: ·.:/~?. · CLERK'S .. - . ....... t • .-~~ . .. - ........... ... ___ • OR - I i j I l . .'·~ - _ _.;...__ _...,..: Defendant to be released to Pretrial Ser\llc:es fOr electronic monitoring.'·; Received,_ ___,......,. DUSM.,.,..,..,.---------- . i - · Defendant forfeited collateral. - - - - - - C a s e dismissed .. ,..· ·I . Clerk'. ~ .~11~. uL~ Deputy Clerk s·,. Mlc~LE · . . . . * u.a. liPC t . . .. · TIHR/40T6f Case 3:15-cr-02773-BAS Document 2 Filed 11/03/15 Page 1 of 1 AO 455(Rev. 5/85) Waiver oflndictment FILED UNITED STATES DISTRICT COUR SOUTHERN DISTRICT OF CALIFO UNITED STATES OF AMERICA WAIVER OF INDICTMENT v. CASE NUivfBER: 15 ~ d 173 ..f>J+5 STEVEN RIGLER I, STEVEN RIGLER , the above named defendant, who is accused of committing the following offenses: Title 18, United States Code, Section 1349- Conspiracy to Commit Honest Services Mail Fraud being advised of the nature of the charge(s), the proposed information, and of my rights, hereby waive in open court on IL/3/LS ,2015, prosecution by indicbnent and consent that the proceeding may be by information rather than by indictment. Before Case 3:15-cr-02773-BAS Document 4 Filed 11/03/15 Page 1 of 1 __,.. FILED 1 2 UNITED STATES DISTRICI' COU Novo s zors 3 4 5 UNITED STATES OF AMERICA, 6 t,(L d-1 7 3 .. BAS Plaintiff, 6 7 Case No.: I NOTICE OF RELATED CASE v. 8 9 10 STEVEN RIGLER, Defendant 11~----------------------~ 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 TO THE CLERK OF THE C01JRT: Please take notice that the above entitled case is related to United States of America v. Sean Enrique O'Keefe, Case No. 14CR2354~BAS, pursuant to Local Rule 57.2.1, Related Cases. The United States Attorney certifies the cases are related for the following reason(s): _(1) More than one indictment or information is filed or pending against the same defendant or defendants. ...X(2) Prosecution against different defendants arises from; _(a) a common wiretap _(b) a common search warrant ......A_(c) activities that are part of the same alleged criminal event or transaction; that is, the cases involved substantially the same facts and the same questions of law. DATED: November 2, 2015.