Case Document 4 Filed 08/15/17 Page 1 of 10 BRIAN J. STRETCH (CABN 163973) United States Attorney BARBARA J. VALLIERE (CABN 147374) Chief, Criminal Division WILLIAM FRENTZEN (LABN 24421) DAVID (CABN 226995) Assistant United States Attorney ANNALOU TIROL (CABN 216578) Acting Chief, Public Integrity Section RICHARD B. EVANS (DCBN 441494) Tn'al Attorney 450 Golden Gate Avenue, Box 36055 San Francisco, California 94102-3495 Telephone: (415) 436?7200 FAX: (415) 436?6753 . gov; richard.evans@usd0j . gov Attorneys for United States of America UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION UNITED STATES OF AMERICA, NO. (LR- Vii-0?14? RS Plaintiff, i PLEA AGREEMENT V. 1 SHAUN w. BRIDGES, i Defendant. i 1, Shaun W. Bridges, and the United States Attorney?s Of?ces for the Northern District of California and Maryland, and the United States Department of Justice, Public Integrity Section (?the government?), enter into this written plea agreement (the ?Agreement?) pursuant to Rule 1 and 1 of the Federal Rules of Criminal Procedure: Case 3:17-cr-00448-RS Document 4 Filed 08/15/17 Page 2 of 10 l. The Defendant?s Promises I agree to plead guilty to Count One of the captioned Information charging me with money laundering, in violation of 18 U.S.C. 1957. I agree that the elements of the offenses are as follows: Count One: (1) I conducted a monetary transaction involving property that represented the proceeds of theft of government preperty, in violation of Title 18 U.S.C. 641; (2) I knew that the property represented the proceeds of theft of government property; (3) The property had a value greater than $10,000.00; and (4) The transaction occurred in the United States. I further agree that the elements of the underlying unlawful activity of theft of government property are: (1) I knowingly embezzled, stole, converted the use of myself and others, money or property of value with the intention of depriving the owner of the use or bene?t of the money or property; (2) the money or property belonged to the United States; and (3) the value of the money or property was more than $1,000. I agree that the maximum penalties are as follows: Count One: 2. a. Maximum prison term 10 years b. Maximum ?ne $250,000 or twice the gross gain or loss, whichever is greater 0. Maximum supervised release term 3 years d. Restitution To be determined 6. Mandatory special assessment $100 f. Forfeiture See below I agree that I am guilty of the offense to which I am pleading guilty, and I agree that the following facts are true: Case Document 4 Filed 08/15/17 Page 3 of 10 On or about March 18, 2015, I stole approximately 1606 bitcoin from a digital wallet belonging to the United States government. I acknowledge that, at all times from March 18, 2015, to the present, 1606 bitcoin was valued at more than $1,000. I agree that, on the day of the theft, March 18, 2015, 1606 bitcoin was valued at approximately $359,005.00 (at approximately $223.54 per bitcoin). I utilized a private key in order to access the digital wallet and I knew and understood that the contents of that wallet belonged to the United States government, and were not intended for me or my personal use. I moved the bitcoin from the online digital wallet belonging to the government into an account under my control at the online digital currency exchange BTC-E. After moving the bitcoin from the digital wallet belonging to the government to the account I controlled, I intended to use the bitcoin for my own use. I conducted the monetary transactions knowing the transactions involved criminally derived property. Speci?cally, I caused the following transfer of a monetary instrument: On or about July 28, 2015, I transferred 1606 bitcoin from the online digital wallet ?Sjj 9? belonging to the government to a digital account at BTC-E. This transfer was processed in multiple automatic transactions because BTC- only processed withdrawals of 100 bitcoin at a time. Amount Description of Monetary Transaction 8/3/15 100 BTC Withdrawal from BTC-E account to online digital wallet ?rbfe? 8/4/ 15 100 BTC Withdrawal from BTC-E account to online digital wallet ?rbfe? 8/5/15 100 BTC Withdrawal from BTC-E account to online digital wallet ?rbfe? 8/6/15 100 BTC Withdrawal from BTC-E account to online digital wallet ?rbfe? 8/8/15 100 BTC Withdrawal from BTC-E account to online digital wallet ?rbfe? 8/ 10/15 100 BTC Withdrawal from BTC-E account to online digital wallet ?rbfe? 8/11/15 100 BTC Withdrawal from BTC-E account to online digital wallet ?rbfe? 8/ 12/15 100 BTC Withdrawal from BTC-E account to online digital wallet ?sz 9/ 5/ 15 100 BTC Withdrawal from BTC-E account to online digital wallet Iidweg?? 9/16/15 100 BTC Withdrawal from BTC-E account to online digital wallet 9/ 17/15 100 BTC Withdrawal from BTC-E account to online digital wallet iiDgxi99 9/18/ 15 100 BTC Withdrawal from BTC-E account to online digital wallet 9/ 19/ 15 100 BTC Withdrawal from BTC-E account to online digital wallet 9/20/15 100 BTC Withdrawal from BTC-E account to online digital wallet 9/21/15 100 BTC Withdrawal from BTC-E account to online digital wallet 3 Case Document 4 Filed 08/15/17 Page 4 of 10 9/23/15 100 BTC Withdrawal from BTC-E account to online digital wallet 9/24/15 6.6497 BTC Withdrawal from BTC-E account to online digital wallet ?4acr? 11/16/15 605 BTC Deposit from multiple accounts into account ?suK7?at exchange Bit?nex Unknown 1037 BTC Deposit into hardware wallet I knowingly engaged in that transaction with the knowledge that the transaction involved criminally derived property in that it was the proceeds of theft from the government. I acknowledge that the value of the monetary transaction was in excess of 10,000. On or about December 8 and 9, 2016, I met with law enforcement agents from the DHS-OIG, FBI, and representatives of the United States Attorney?s Of?ce. During those meetings, I revealed my crimes and I provided law enforcement with a passcode to obtain the stolen bitcoin that had not previously been retrieved by the government, despite its past efforts. Speci?cally, the government had recovered approximately 605 of the bitcoin I had taken. I also provided the passwords for the government to obtain the bitcoin that I now understand they had already retrieved, not knowing that they had already retrieved them. I did this in an effort to reimburse the United States government and in the hope of consideration in the form of a recommendation for leniency from the government. 3. I agree to give up all rights that I would haverif I chose to proceed to trial, including the rights to a jury trial with the assistance of any attorney; to confront and cross?examine government witnesses; to remain silent or testify; to move to suppress evidence or raise any other Fourth or Fifth Amendment claims; to any further discovery from the government; and to pursue any af?rmative defenses and present evidence. I agree, for purposes of entering this guilty plea, sentencing and all other proceedings relevant to the ?ling of this Agreement, to consent to the jurisdiction of the United States District Court for the Northern District of California. I expressly waive my right to object to venue in the Northern District of California. 4. I agree to give up my right to appeal my conviction, the judgment, and orders of the 4 Case Document 4 Filed 08/15/17 Page 5 of 10 Court. I also agree to waive any right I have to appeal any aspect of my sentence, including any orders relating to forfeiture and or restitution. 5. I agree not to ?le any collateral attack on my conviction or sentence, including a petition under 28 U.S.C. 2255 or 28 U.S.C. 2241, except that I reserve my right to claim that my counsel was ineffective in connection with the negotiation of this Agreement or the entry of my guilty plea. I also agree not to seek relief under 18 U.S.C. 3582. 6. I agree not to ask the Court to withdraw my guilty plea at any time after it is entered. I understand that by entering into this Agreement: I agree that the facts set forth in Paragraph 2 of this Agreement shall be admissible against me under Fed. R. Evid. 801(d)(2)(A) in any subsequent proceeding, including at trial, in the event I violate any of the terms of this Agreement, and I expressly waive any and all rights under Fed. R. Crim. 11(f) and Fed. R. Evid. 410 with regard to the facts set forth in Paragraph 2 of this Agreement in such subsequent proceeding. I understand that the government will not preserve any physical evidence obtained in this case. 7. I agree that the Court will use the Sentencing Guidelines to calculate my sentence. I understand that the Court must consult the Guidelines and take them into account when sentencing, together with the factors set forth in 18 U.S.C. 3553(a). I also understand that the Court is not bound by the Guidelines calculations below, the Court may conclude that a higher Guidelines range applies to me, and, if it does, I will not be entitled, nor will I ask to withdraw my guilty plea. I agree that regardless of the sentence that the Court imposes on me, I will not be entitled, nor will I ask, to withdraw my guilty plea. I also agree that the Sentencing Guidelines offense level will be calculated as follows and that I will not ask for any other adjustment to or reduction in the offense level or for a downward departure from the Guidelines range as determined by the Court, except as provided in paragraph 15. The parties have reached no agreement regarding my Criminal History Category. Count One: a. Base Offense Level, U.S.S.G. ?2 6 b. Speci?c offense characteristics under U.S.S.G. Ch. 2: +12 (amount of loss) +1 (conviction for 1957) ADJ COO-Case Document 4 Filed 08/15/17 Page 6 of 10 c. Adjustments under U.S.S.G. Ch. 3: +2 3B1.3) (abuse of position of trust/special skill) +3 3C1.3) (commission of offense while on release) (1. Acceptance of Responsibility: If I meet the requirements of 3E1.1, I may be entitled to a three level reduction for acceptance of responsibility, provided that I admit my guilt, coOperate with the Court and the Probation Of?ce in any presentence investigation ordered by the Court, and continue to manifest an acceptance of responsibility through and including the time of sentencing: -3 e. Adjusted Offense Level: 21 8. I agree that regardless of any other provision of this Agreement, the government may and will provide the Court and the Probation Of?ce with all information relevant to the charged offense and the sentencing decision. 9. I agree to pay restitution for all the losses caused by all the schemes or offenses with which I was charged in this case, and I agree that the amount of restitution will not be limited to the loss attributable to the counts to which I am pleading guilty, pursuant to 18 U.S.C. 3663(a)(3). I agree to pay restitution in an amount to be set by the Court. I agree that any ?ne, forfeiture, or restitution imposed by the Court against me will be immediately due and payable and subject to immediate collection by the government and I understand that the government may seek immediate collection of the entire ?ne, forfeiture, or restitution from any assets without regard to any schedule of payments imposed by the Court or established by the Probation Of?ce. I agree that I will make a good-faith effort to pay any ?ne, forfeiture, or restitution I am ordered to pay. Before or after sentencing, I will upon request of the Court, the government, or the Probation Of?ce, provide accurate and complete ?nancial information, submit sworn statements and give depositions under oath concerning my assets and my ability to pay, surrender assets I obtained as a result of my crimes, and release ?mds and property under my control in order to pay any ?ne, forfeiture, or restitution. I agree to pay the special assessment at the time of sentencing. 10. I agree not to commit or attempt to commit any crimes before sentence is imposed or 6 Case Document 4 Filed 08/15/17 Page 7 of 10 before I surrender to serve my sentence. I also agree not to violate the terms of my pretrial release; not to intentionally provide false information to the Court, the Probation Of?ce, Pretrial Services, or the government; and not to fail to comply with any of the other promises I have made in this Agreement. I agree not to have any contact with any victims or witnesses in this case, either directly or indirectly, before and after I am sentenced. This includes, but is not limited to, personal contact, telephone, mail, or electronic mail contact, or any other written form of communication, and includes any harassing, annoying, or intimidating conduct by me directed to any victims or witnesses. I agree that the Court may also include this no-contact provision as a condition of my supervised release term. I agree that if I fail to comply with any promises I have made in this Agreement, then the government will be released from all of its promises in this Agreement, including those set forth in the Government?s Promises Section below, but I will not be released from my guilty plea. 11. I agree to forfeit the following property (hereinafter ?subject property?): a. 1,037.0670306 bitcoin seized on December 8, 2016, from the following bitcoin wallets: i. ii. iv. 1 82pM6oCEj v. vi. 1i vii. ix. 1 H45 gaUzsNranUngPathj x. b. 384.5582652 bitcoin seized pursuant to a seizure warrant, c. $3,569.28 in ?at currency seized ?'om Bit?nex account, and (1. approximately 40 bitcoin seized while an agent with I admit that the subject preperty constitutes money involved in money laundering and/or proceeds from obstruction of justice or wire fraud, and thus is forfeitable to the United States pursuant to 7 Case Document 4 Filed 08/15/17 Page 8 of 10 the provisions of 18 U.S.S 18 U.S.C. 982(a)(1); 28, U.S.C. 2461(c) and/or the procedures outlined in Rule 32.2 of the Federal Rules of Criminal Procedure and 21 U.S.C. 853. I relinquish any and all right, title, and interest I may have in the subject property and agree that such right, title, and interest can be forfeited to the United States without further notice to me. I also agree I will not contest, nor assist anyone in contesting any administrative or judicial forfeiture proceeding (whether criminal, civil, state or federal) which may be brought against said property. I further agree to waive all constitutional and statutory challenges in any manner (including direct appeal, habeas corpus, or any other means) to any forfeiture carried out in accordance with this Agreement on any grounds, including that the forfeiture constitutes an excessive ?ne or punishment or that the forfeiture proceeding was brought in violation of the statute of limitations. I agree that the money involved in the monetary transactions discussed above in Paragraph 2, is subject to forfeiture. I further agree that the assets identi?ed in Paragraph 11 - which were obtained through violations of money laundering, wire fraud, and/or obstruction of justice, can be forfeited. 12. I agree that this Agreement contains all of the promises and agreements between the government and me, and I will not claim otherwise in the ?iture. No modi?cation of this Agreement shall be effective unless it is in writing and signed by all parties. 13. I agree that the Agreement binds the US. Attorney?s Of?ces for the Northern District of California and Maryland, and the United States Department of Justice, Public Integrity Section, only, and does not bind any other federal, state, or local agency. The Government?s Promises 14. Except as provided in this Agreement, the government agrees not to ?le any charges against the defendant that could be ?led for or arising from the investigation of (1) his role in stealing money from the government in the form of approximately 1646 bitcoin on March 18, 2015, (2) ?nancial transactions conducted with the proceeds from these thefts from the government, (3) obstructing the investigations of the government into the theft from the government that led to the captioned Information, (4) conduct discussed with law enforcement agents and the United States Attorney?s Of?ce during meetings on December 8 and 9, 2016, which is not the subject of this plea agreement and (5) 8 Jab-itCase Document 4 Filed 08/15/17 Page 9 of 10 conduct arising out of the events underlying the criminal complaint in case number CR 15-319 RS, which is not the subject of this plea agreement. 15. The government agrees to recommend the Guideline calculations set out above. The government will not object to the defendant arguing for a departure from those Guideline calculations pursuant to 5K2.0 and/or to argue for a variance pursuant to 18 U.S.C. 3553. In support of the recommended sentence, the government will bring to the attention of the Court the extent of the defendant?s cooperation with the government into recovering the stolen bitcoin, the defendant?s agreement to waive venue by pleading guilty in this district, and any other assistance provided by the defendant which the government deems relevant at the time of sentencing. The government is released from its agreements if the defendant violates the terms of the Agreement above or fails to accept responsibility. The Defendant?s Af?rmations 16. I con?rm that I have had adequate time to discuss this case, the evidence, and the Agreement with my attorney and that my attorney has provided me with all the legal advice that I requested. I con?rm that the while I considered signing this Agreement, and at the time I signed it, I was not under the in?uence of any alcohol, drug, or medicine that would impair my ability to understand the Agreement. 18. I con?rm that my decision to enter a guilty plea is made knowing the charges that have been brought against me, any possible defense, and the bene?ts and possible detriments of proceeding to Case Document 4 Filed 08/15/17 Page 10 of 10 trial. I also con?rm that my decision to plead guilty is made voluntarily, and no one coerced or threatened me to enter into this Agreement. Dated: ?6 l