1 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION 1 2 3 4 UNITED STATES OF AMERICA 5 VERSUS 6 CHRISTOPHER CORREA * * * * * Criminal No. H-15-679 Houston, Texas January 8, 2016 2:00 p.m. 7 8 9 REARRAIGNMENT BEFORE THE HONORABLE LYNN N. HUGHES UNITED STATES DISTRICT JUDGE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 For the Government: Mr. Michael Chu Office of the U.S. Attorney 1000 Louisiana Suite 2300 Houston, Texas 77002 For the Defendant: Mr. David Adler David Adler PC 6750 W Loop South Suite 120 Bellaire, TX 77401 Court Reporter: Fred Warner Official Court Reporter 515 Rusk Ave. Houston, Texas 77002 Proceedings recorded by mechanical stenography, produced by computer aided transcription. 2 1 THE COURT: 2 Christopher Correa. MR. CHU: 3 4 MR. ADLER: Michael Chu Good afternoon, Your Honor. David Adler for Mr. Correa, who is also present in the courtroom. THE COURT: 7 8 Good afternoon, Your Honor. for the United States. 5 6 United States of America versus Mr. Correa, would you raise your right hand, please, sir. Do you solemnly swear that the testimony you 9 10 will give will be the truth, the whole truth and nothing but 11 the truth? 12 THE DEFENDANT: 13 THE COURT: 14 THE DEFENDANT: 15 THE COURT: 16 THE DEFENDANT: 17 THE COURT: 18 Tell me your full name, please. Christopher Anthony Correa. How old are you? 35. How many years of education have you had? 19 THE DEFENDANT: 20 THE COURT: 21 THE DEFENDANT: 22 THE COURT: 23 THE DEFENDANT: 24 THE COURT: 25 I do. Approximately 18. 18? (Indicating in the affirmative). And what country are you a citizen? The United States. I don't mean to offended you, but I ask everybody, because if you're not, I need to talk to you 3 1 differently about things. 2 THE DEFENDANT: 3 THE COURT: 4 Are you or have you recently been under the care of a psychologist or physician? 5 THE DEFENDANT: 6 THE COURT: 7 I understand. I have not. Have you been using any recreational drugs or alcohol? 8 THE DEFENDANT: 9 THE COURT: I have not. No alcohol at all? 10 THE DEFENDANT: 11 THE COURT: 12 THE DEFENDANT: 13 THE COURT: 14 THE DEFENDANT: 15 THE COURT: 16 THE DEFENDANT: 17 THE COURT: Occasional alcohol. What's your definite of "occasional"? About once a week, sir. How much? Two to three drinks. How do you feel today? I feel okay. Have you had an opportunity to talk to 18 Mr. Adler about your case and ask all of the questions and 19 get all of the answers you feel you need from him? 20 THE DEFENDANT: 21 THE COURT: 22 Are you happy with the work that he has done for you? 23 THE DEFENDANT: 24 THE COURT: 25 I have, Your Honor. I am, Your Honor. Now, it's been proposed that you proceed on these charges without going to a grand jury. A grand jury 4 1 is from 16 to 23 people. They wouldn't decide whether you 2 were guilty or not, they would simply decide whether there 3 was enough evidence you should be held for trial. The grand jury could decide that you did all of 4 5 this thing but there's no public utility to the prosecution 6 and not indict you on background. If you don't go to the grand jury, we'll go 7 8 ahead with this serious case based only on the piece of paper 9 Mr. Chu typed, and I'll be the first person to look at the 10 charges. 11 THE DEFENDANT: 12 THE COURT: 13 THE DEFENDANT: 14 THE COURT: Mr. Adler, have you talked to him about 16 MR. ADLER: I have, Your Honor. 17 THE COURT: How do you plead to Counts 1 through 5 15 18 I understand. Are you sure you want to do that? I do. this? of unauthorized access to a computer? 19 THE DEFENDANT: 20 THE COURT: I plead guilty, Your Honor. Mr. Correa, under the Constitution you 21 have a right to a trial by jury on these charges. At that 22 trial you would be considered innocent. 23 to prove that you're innocent. 24 prove beyond a reasonable doubt that you did what you have 25 been charged with. You would never have The government would have to 5 At that trial Mr. Adler can try to block the 1 2 government's evidence by objecting. He could ask questions 3 for your side of the story of the government's witnesses. 4 You could bring other witnesses for your side of the story, 5 if there are any. At the trial you could testify if you wanted 6 7 to. If you chose not to testify, no one could make you 8 testify, and no one can use it against you that you did not 9 testify. If you continue to plead guilty, there will be 10 11 no jury, no trial, no exhibits, I'll find you guilty and go 12 ahead with the punishment. Having talked about this stuff with you, do you 13 14 still want to plead guilty? 15 THE DEFENDANT: 16 THE COURT: I do. You will also have to testify against 17 yourself some because I am going to ask you about what you 18 did to make sure you are pleading guilty to something you 19 really did. 20 THE DEFENDANT: 21 THE COURT: I understand. The parts of the crime is that you 22 intentionally had access to a computer and the data on it 23 that was used in interstate commerce, and that you did that, 24 you got information off of the computers, the value of which 25 exceeded $5,000. So, for five counts that has to be 5,000 on 6 1 each count. The punishment is imprisonment for up to five 2 3 years, a fine of up to $250,000. The restitution is possible. 4 5 MR. CHU: 6 THE COURT: 7 MR. CHU: 8 THE COURT: 9 10 15 What is restitution? It's about $279,000, Your Honor. All right. So there can be restitution And there's a hundred-dollar tax on each count. Do have any question about that? THE DEFENDANT: 12 14 Beg your pardon, Your Honor? whatever the loss was. 11 13 I don't have any questions, Your Honor. THE COURT: Has anybody threatened you to get you to plead guilty? 16 THE DEFENDANT: 17 THE COURT: No, they have not. Now, I understand you have reached 18 an agreement -- it's your turn, Mr. Adler. 19 doing our turn. 20 Restitution? You and I are Time for spring. As I understand the agreement it is that you 21 agreed to plead guilty to all five counts, give up your right 22 to appeal or otherwise attack the judgment now or forever, 23 and you agree that the intended loss is $1,700,000, and you 24 used sophisticated means, and you agree to restitution. 25 In exchange for that, the United States says 7 1 you're really sorry and you were prompt in pleading. 2 about it. That's You understand this no appeal or collateral 3 4 attack means that you skip the grand jury and you're skipping 5 the petit jury, like most people, and you're limiting all 6 relief you're ever going to get in the case to me. 7 clear? 8 9 10 THE DEFENDANT: Yes, Your Honor. Is that I accept responsibility for my mistakes. THE COURT: No. I am talking to you about the ways 11 in which you try to get out of it after you find out what I 12 do to you. And you can't. And you understand I have no idea what I am 13 14 going to do? 15 THE DEFENDANT: 16 THE COURT: Has the agreement been signed? 17 MR. ADLER: It has, Your Honor. 18 THE COURT: And has paragraph 10 -- 19 MR. ADLER: It's removed. 20 THE COURT: The Magidson clause been struck? 21 MR. CHU: 22 THE COURT: 23 I understand. Yes, Your Honor. Outside of what is in that written agreement -- 24 CASE MANAGER: 25 THE COURT: You have the original. That's a very dangerous thing to do. 8 Other than what's in that long, tedious 1 2 document, has anybody promised you anything? 3 THE DEFENDANT: 4 THE COURT: No, Your Honor. There has been a lot of talk about 5 guidelines, and that's an arithmetical calculation which 6 tries to reduce the varieties of human life to a one-page 7 memo. Anyway, it's like we don't need Shakespeare to 8 9 describe human life, we got a matrix. 10 But the probation department -- you can agree 11 with the government and probation can agree with you, but I 12 get to decide. 13 THE DEFENDANT: 14 THE COURT: 15 May I see, Glenda, the one I put the post-it on. The trick is finding, Mr. Chu, the paragraph in 18 19 After I decide, I get to decide whether to follow them or not. 16 17 I understand. the several hundred pages of agreement here. Explain to me what Ground Control is. 20 21 is a rocket scientist with NASA. 22 THE DEFENDANT: 23 THE COURT: 24 25 No. My son I thought I knew. Would you like me to explain? I very much require you to explain this. THE DEFENDANT: Ground Control is a website that 9 1 provides the means for a baseball team to store information 2 about player evaluations. 3 THE COURT: So it would be like an employment site, 4 and you subscribe and then you store your data on applicants 5 and other companies do it? 6 7 8 9 THE DEFENDANT: Yeah. That's not a -- yeah, that would be an accurate comparison, correct. THE COURT: And do I correctly understand that you, while working for the Cardinals, went to the Astros cloud and 10 got their data so you could see what they were interested in 11 and what they were planning to do with players and draft 12 picks current or past or whatever? 13 14 THE DEFENDANT: I trespassed repeatedly. 15 THE COURT: 16 THE DEFENDANT: 17 Yes, Your Honor. Well, for the reasons I stated. That wasn't the original intention; but, yes, your statement is accurate. 18 THE COURT: What was your original intention? 19 THE DEFENDANT: I originally accessed, trespassed 20 the Astros' resources based on suspicions that they had 21 misappropriated proprietary work from myself and my 22 colleagues. 23 THE COURT: Which colleagues? 24 THE DEFENDANT: 25 THE COURT: My colleagues at the Cardinals. So you broke in their house to find out 10 1 if they were stealing your stuff? 2 THE DEFENDANT: 3 THE COURT: 4 THE DEFENDANT: 5 THE COURT: Stupid, I know. That didn't strike you as peculiar? It was stupid. I had a death penalty case. Opponents 6 in the death penalty, the case documents found out the 7 pharmacy applying the chemicals, so they got death threats. 8 "We're so against the dealt penalty we'll kill you if you 9 help them carry it out." How did you arrive at this intended loss of 10 11 $1.7 million? MR. CHU: 12 13 Your Honor, this is the number we arrived at. 14 THE COURT: 15 MR. CHU: 16 17 18 19 20 Speak up. After lengthy negotiations between the parties -THE COURT: Before the microphone. Even your boss can't hear you. MR. CHU: This is kind of a sore throat going around our floor this year. 21 THE COURT: 22 MR. CHU: Don't make excuses. But since much of the data that we looked 23 at focused on the 2013 draft, what we did was we took the 24 number of players that he looked at by 200 and we divided 25 that by the number of players that were eligible to be 11 1 drafted that year, and we multiplied that times the scouting 2 budget of the Astros that year. Also this is the number that the parties have 3 4 arrived at after lengthy and careful negotiations. THE COURT: 5 6 That comes to $1.7 million. The Astros' budget was not spent on anything other than the data in that database? MR. CHU: 7 Your Honor, after speaking with the Astros 8 repeatedly, we believe that the deliverable from all of those 9 expenses was the information that they put in that database. 10 So everything that they did for the scouting was also they 11 could have it all put in this one place so they could analyze 12 it. 13 THE COURT: I understand that. But you are 14 suggesting that the entire $1.7 million was the Astros' 15 recruiting budget and it was spent all on the draft. 16 were no, what do you call them, free agents or lateral 17 transfers or trades? 18 19 20 21 MR. CHU: Your Honor. There Those were different parts of the budget, The answer is that is correct, Your Honor. THE COURT: That's right. So 1.7 million is how much they spent working 22 up their own profiles of these players and their abilities 23 and cost and that sort of thing? 24 MR. CHU: Yes, Your Honor. 25 THE COURT: Those 200 players. In baseball is the draft limited to 12 1 people joining major league baseball for the first time? Wait a minute. 2 THE DEFENDANT: 3 4 Get close to the microphone. Yes. The draft's intended to recruit amateur baseball players into the professional ranks. THE COURT: 5 So what do you call it when you're 6 dealing with players who either have played or are playing 7 elsewhere? THE DEFENDANT: 8 9 So that would be professional scouting or international scouting. 10 THE COURT: What was the second word? 11 THE DEFENDANT: International scouting. In other 12 words, the draft only covers domestic players from the United 13 States, Puerto Rico and Canada. THE COURT: 14 15 for the domestic professional scout? THE DEFENDANT: 16 17 THE COURT: Mr. Chu, what were the sophisticated means he used? 22 MR. CHU: 23 THE COURT: 24 25 It doesn't matter, but I was just curious. 20 21 I don't have access to that information. 18 19 Do you know what the Astros' budget was Your Honor, the defendant used software. Just like Justin Bieber. to the microphone. MR. CHU: Justin who? Get right up 13 Your Honor, the defendant used software to mask 1 2 his identity, his location and the device he was using. 3 THE COURT: 4 MR. CHU: 5 THE COURT: This is software that anybody can buy? Yes. Has the Astros fellow changed his 6 password, because I want to know what you thought the obscure 7 password was. 8 MR. CHU: 9 THE COURT: 10 He has changed it since then, Your Honor. Well, what was it, because you say it was obscure, similar. MR. CHU: 11 It was based on the name of a player who 12 was scrawny and who would not have been thought of to succeed 13 in the major leagues, but through effort and determination he 14 succeeded anyway. 15 that name, so he just kept on using that name over the years. So this user of the password just liked 16 THE COURT: That's admirable. 17 MR. ADLER: Kind of like Magidson123. 18 THE COURT: Or Magidson1/2,1/4,1/3. I like the scrawny people who succeed through 19 20 their hard work. 21 MR. CHU: 22 THE COURT: 25 All right. Anything else in there? Each count is just an episode of the same 23 24 Thank you, Your Honor. thing? MR. CHU: Yes, Your Honor. 14 THE COURT: 1 Different drafts, different years, 2 different months? 3 MR. CHU: 4 THE COURT: 5 THE DEFENDANT: 6 THE COURT: 7 Yes, Your Honor. Does that roughly describe what you did? And did you read all of these tedious details? 8 THE DEFENDANT: 9 THE COURT: THE DEFENDANT: 11 THE COURT: 12 THE DEFENDANT: 13 THE COURT: in the computer? 16 THE COURT: 17 THE DEFENDANT: 18 THE COURT: 19 THE DEFENDANT: 20 MR. ADLER: 23 Yes, Your Honor. Did you find any Cardinal's information THE DEFENDANT: 22 Yes. Why you did it? 15 21 Yes, I did. And that's what you did? 10 14 Yes, it does. I did, Your Honor. Who did you tell? Colleagues. At the Cardinals? Yeah. He did not go to the FBI, which is obviously what he should have done. THE COURT: Did you do a memorandum in writing about what you did, when you did it and why you did it? 24 THE DEFENDANT: 25 THE COURT: No, Your Honor. All right. Mr. Correa, I accept your 15 1 plea to the five counts and find you guilty as charged. Are we going to have a precipitous sentencing, 2 3 too? 4 MR. ADLER: Right now? 5 THE COURT: Not right now. The computer, I mean Glenda, says April 11th. 6 7 MR. ADLER: I think that's possible, Your Honor. 8 THE COURT: I wasn't thinking about it being later 9 than that, but -- 10 11 12 MR. ADLER: I mean, we can look to trying to move it THE COURT: I just want to know. up. Y'all seem to be 13 agreeing, and so, is there a proposal to get this out of the 14 way or is there -- are you going to do some debriefing? 15 16 17 18 MR. CHU: Your Honor, I think April 11th would be great, Your Honor. THE COURT: Kind of sounds like a dodge to me. Will there be debriefing? 19 MR. CHU: That depends on the defendant, Your Honor. 20 MR. ADLER: We've met with the government, and 21 certainly if they want to have additional questions, we are 22 happy to talk to them. 23 24 25 But I agree with Mr. Chu, April 11th is probably a good date. THE COURT: All right. Well, if I agree with you 16 1 all, I will ruin my reputation, but I will. 2 at 1:30 in this courtroom. April 11th, 2016 I take it there's no reason to detain him? 3 4 MR. CHU: That's correct, Your Honor. 5 THE COURT: I agree with that. However, Mr. Correa, remember when you were 6 7 standing around and you just read in the paper about some guy 8 who was a felon and he was awaiting sentencing and he did 9 something terrible? 10 THE DEFENDANT: 11 THE COURT: 12 Yes, Your Honor. You remember what you said ought to happen to him? 13 THE DEFENDANT: 14 THE COURT: Probably should be locked away. The perspective is a little different. 15 So now you do what you thought he should have done when you 16 didn't think it was going to be you. 17 And since you're a felon, Mr. Adler will talk 18 to you further about firearms; but it is illegal for you to 19 have momentary control of a firearm, parts of a firearm, 20 ammunition or bombs. 21 sense of humor who does nothing but enforce that. And there's a whole agency with no 22 THE DEFENDANT: 23 THE COURT: I understand. So if you go over to somebody's house 24 and if they decided to show you a new shotgun, you say, 25 excuse me, I got to go. 17 1 THE DEFENDANT: 2 THE COURT: 3 THE DEFENDANT: 4 THE COURT: 5 MR. CHU: 6 THE COURT: Mr. Adler? 7 MR. ADLER: No, Your Honor. 8 THE COURT: Does Mr. Adler know when he is going to 9 Do you have any questions? No, Your Honor. Mr. Chu, do you have any questions? No, Your Honor. Thank you. be back? 10 CASE MANAGER: 11 MR. ADLER: 12 CASE MANAGER: 13 I can do that. o'clock. I have just docketed the -- I do, Your Honor. Except it has changed to 4:00 Yes, he knows. 14 THE COURT: 15 CASE MANAGER: 16 THE COURT: Anybody else? 17 MR. ADLER: Thank you, Judge. 18 THE COURT: All right. 19 20 21 22 I heard about that. Can you tell me? Oh, no. January 13th at 4:00 p.m. If you have any questions, call Mr. Adler or your probation officer. Now, take him down to 10 and you can meet, or wherever you meet. 23 MR. ADLER: The Marshals at pretrial. 24 THE COURT: It's all probation now. 25 MR. ADLER: All right. I forgot. 18 THE COURT: 1 2 PROBATION OFFICER: Your Honor, I believe I am going to be assigned the presentence report. THE COURT: 5 6 Okay. Can he just follow you down to 2 or 3? 7 PROBATION OFFICER: 8 THE COURT: That would be fine, Your Honor. All right. Thank you, gentlemen. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Are you going to be his probation officer? 3 4 Oh, see that woman over there. (Conclusion of Proceedings) 19 CERTIFICATION 1 2 3 4 I, Fred Warner, Official Court Reporter for the 5 6 United States District Court for the Southern District of 7 Texas, Houston Division, do hereby certify that the foregoing 8 pages 1 through 18 are a true and correct transcript of the 9 proceedings had in the above-styled and numbered cause before 10 the Honorable LYNN N. HUGHES, United States District Judge, 11 on the 8th day of January, 2016. WITNESS MY OFFICIAL HAND at my office in Houston, 12 13 Harris County, Texas on this the 22nd day of January, A.D., 14 2016. 15 16 17 18 19 20 21 22 23 24 25 Fred Warner, CSR Official Court Reporter