BRYAN SCHRODER
United States Attorney

ADAM ALEXANDER
Assistant U.S. Attorney
Federal Building & U.S. Courthouse
222West Seventh Avenue, #9, Room 253
Anchorage, Alaska 99513-7 567
Phone: (907) 271-5071
Fax: (907) 271-1500
Email : adam.alexander@usdoj. gov

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ALASKA
UNITED STATES OF AMERICA,

)No。

3:17‐ cr‐ 00146…

SLG

)

Plaintinl

)

)PLEA AGREEMENT
)

VS。

SUZETTE KUGLER,
Defendant.

)

)

)

)

)

jointly inform the Court in writing of any
additional agreements, this document in its entirety
contains the terms of the plea agreement between the
defendant and the United States. This agreement is limited
to the District of Alaska; it does not bind other federal,

Unless the parties

state, or local prosecuting authorities.

Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 1 of 17

 I.

SUMMARY OF AGREEMENT,FEDERAL RULE OF CRIMINAL
PROCEDURE ll

A.

Summary of Agreement

The defendant agrees to plead guilty to the following count(s) of the Indictment in

this case. Count
18 U.S.C.

1

FRAUD IN CONNECTION WITH COMPUTERS in violation of

$ 1030 (aXs)(A). In exchange for the defendant's plea, the United States

stipulates that the loss amount was less than $6,500 but more than 55,000 and that United
States Sentencing Guideline ("U.S.S.G") $281.1 specific offense characteristic

(bX18)(A)(iii) and (B) do not apply in this maffer.
The parties stipulate that offense characteristics U.S.S.G. $2Bl.l(b)(1OXC) and

$281.l(bxlSXAXii) do apply in this matter. The parties will be free at sentencing to
make any recommendation regarding the term of imprisonment imposed, including

recommendations for intermittent confinement, community confinement or home
detention pursuant to $5C 1.1 .

The United States further agrees not to prosecute the defendant further for any
other offense related to the events that resulted in the charges contained in the Indictment.

After the Court accepts the plea agreement and imposes the sentence, the United

States

agrees to dismiss the remaining counts as they relate to the defendant: Count 2.

The defendant will waive all rights to appeal the conviction and sentence imposed
under this agreement. The defendant

will also waive all rights to collaterally attack the

conviction and sentence, except on the grounds of ineffective assistance of counsel or the
voluntariness of the plea.
U.S. v. Suzette Kugler
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Page 2

 B.

Federal Rule ofCrilllinal Procedure ll

Unless the parties othenvise info.11l the Court in writing,Federal Rule ofCriminal

Procedure ll(c)(1)(A)and(B)Win control this plca agreement.Thus,the dcfendant may
not withdraw from this agrecment or the guilty plea(s)ifthC COurt rttcCtS the parties'
sentencing reconllnendations at the sentencing hearing。

Ⅱo

CHARGES,ELEMENTS,FACTUAL BASIS,STATUTORY PENALTIES
AND OTHER MATTERS AFFECTING SENTENCE

A.

Charges

1.

The defendant agrees to plead guilty to the following count(s) of

the Indictment:
Count 1: FRAUD IN CONNECTION WITH COMPUTERS, a violation of Title
18 U.S.C.

B.

$ 1030(a)(s)(A).
Elements

The elements of the charge(s) to which the defendant is pleading guilty are as

follows:

1.

First, the defendant knowingly caused the transmission of a program,

code or command to a computer;

2.

Second, as a result of the transmission, the defendant intentionally

impaired without authorization the integrity or availability of data, program,
system, or information; and

3.

Third, the computer was used in or affected interstate or foreign

commerce or communication.
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Page 3

 C.

Factual Basis

The defendant admits the truth of the allegations in Count 1 of the Indictment and
the truth of the following statement, and the parties stipulate that the Court may rely upon

this statement to support the factual basis for the guilty plea and for the imposition of the
sentence:

On May 5,2017, Anchorage FBI responded to Alaska-based airline PenAir

regarding recent computer intrusions on their network and systems. Those intrusions
targeted the ticketing and station management networked database service provided by
Sabre Corporation to PenAir that was responsible for the airlines ticketing and

reservations. The Sabre ticketing network utilized by PenAir is used in and affects
interstate commerce.

The defendant conducted several unauthorized intrusions in PenAir's Sabre
database with malicious intent between

April and May 2017. On April 5,2017,the

defendant modified a PenAir's employee account in such away that her access
permissions were removed. On May 2,2017, the defendant accessed the Sabre system
again without authorization and deleted the station information for eight airports. Station

information is the airport specific portal for PenAir employees to access Sabre. This
deletion prevented employees in any of those eight airports from being able to book,

ticket, modiff, or board any flight until the stations were rebuilt in the system. PenAir
personnel worked through the night to bring the stations back online, preventing the

potential for substantial disruption to critical infrastructure.

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Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 4 of 17
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 On May 3,2017, the defendant deleted two of the three seat maps used by PenAir

from the Sabre system. Seat maps are used to tie ticketed passengers to specific seats on
the planes. Without seat maps PenAir cannot board or ticket any passengers for any

flight. PenAir personnel caught the deletion three days before it was to take effect

and

were able to restore the mapping by the time the flights were meant to board.
Remediation efforts involved significant time and expense, affected over 100 computers
on the PenAir network, and resulted in a loss to PenAir exceeding $5,000 but less than
$6,500.

FBI personnel from Anchorage and California executed a search warrant at the
Defendant's residence in Desert Hot Springs, California on July

27

,2017. Two laptops

that were seized as part of the search had Sabre virtual private network ("VPN")

connectivity software installed on them. Each laptop contained a log file called scvpn.log
which contained records of VPN access to the Sabre system. The VPN accesses
documented in the logs were correlated to the VPN logs previously obtained from Sabre
and provided conclusive proof that the Defendant had knowingly caused the transmission

of the codes or commands from her residence to the Sabre ticketing network between on
or about April 5,2017, through on or about May 3, 2017, with the intent of impairing the

integrity or availability of data, a program, system or information on a computer used in
or affecting interstate commerce.

U.S. v. Suzette Kugler
3:17-cr-00146-SLG

Page 5 of l7
Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 5 of 17

 D.

Statutory Penalties and Other Matters Affecting Sentence

1.

Statutory Penalties

The maximum statutory penalties applicable to the charges to which the defendant
is pleading guilty, based on the facts to which the defendant

will admit in support of the

guilty plea(s), are as follows:
Count 1: FRAUD IN CONNECTION WITH COMPUTERS
1)

Imprisonment:

10 years

2) Fine: $250,000
3) Supervised Release: Three years

4) Special Assessment: $100

2.

Other Matters Affecting Sentence

a.

Conditions affecting the defendant's sentence

The following conditions may also apply and affect the defendant's sentence:

l)

pursuant to Comment 7 of U.S.S.G. $ 5El .2,the Court may impose an additional fine

to pay the costs to the government of any imprisonment and supervised release term;
2) pursuant to 18 U.S.C.$ 3612(f), unless otherwise ordered, if the Court imposes a fine

of more than $2,500, interest will be charged on the balance not paid within l5 days after
the judgment date; 3) upon violating any condition of supervised release, a further term

of imprisonment equal to the period of the supervised release may be imposed, with no
credit for the time already spent on supervised release; 4) the Court may order the
defendant to pay restitution pursuant

to the l8 U.S.C.

$ 3663 and U.S.S.G. $ 5E1.1, and

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 if

18 U.S.C. $

36634 (mandatory restitution for certain crimes) applies, the Court shall

order the defendant to pay restitution.

b.

Payment of Special Assessment

The defendant agrees to pay the entire special assessment in this case on the day

All payments will

the Court imposes the sentence.

be by check or money order, and are

to be delivered to the Clerk of Court, United States District Court, 222 W .7th Ave. Box
4, Rm. 229, Anchorage,

AK 99513-7564.

c.

Consequences of Felony Conviction

Any person convicted of a federal felony offense may lose or be denied federal
benefits including any grants, loans, licenses, food stamps, welfare or other forms

public assistance, as well

as the

of

right to own or possess any firearms, the right to vote, the

right to hold public office, and the right to sit on a jury. If applicable, any defendant who
is not a United States citizen may be subject to deportation from the United States

following conviction for

a

criminal offense and will not be permitted to return unless the

defendant specifically receives the prior approval of the United States Attorney General.

E.

Restitution

The defendant agrees to pay restitution in the amount of $5,616 in full to PenAir
by the time of sentencing in this matter.

F.

Forfeiture

There is no forfeiture allegation in this matter. Any property facilitating or

involved in the offense or conviction is listed below and is subject to voluntary
abandonment by the Defendant.
U.S. v. Suzette Kugler

3:17-cr-00146-SLG

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Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 7 of 17

 G.

Voluntary Abandonment

Personal property to be voluntarily abandoned under this agreement include the

following items: two black Dell brand laptop computers (model PP32LB serial

IFKPXGl and model TTYFJA00 serial FL54162)

seized from the defendant's residence

that were used to access the Sabre network and facilitate the offense of conviction. The
defendant warrants that the defendant had sole possession and ownership of the property
referenced above, and that there are no claims to, or liens or encumbrances on the

property referenced above. Defendant will take all steps as requested by the United
States to pass clear title to the property, including but not limited to, executing

documents, and testiffing truthfully in any legal proceeding. The defendant agrees to

forever abandon and disclaim any right, title, and interest the defendant may have in the
property described above, and warrant to the Court free, clear and unencumbered title to
the aforelisted property.

III.

ADVISORY UNITED STATES SENTENCING GUIDELINES, GUIDELINE
APPLICATION AGREEMENTS, SENTENCING RECOMMENDATIONS

A.

Advisory United States Sentencing Guidelines

The Court must consult the advisory United States Sentencing Commission
Guidelines [U.S.S.G.] as well as the factors set forth in l8 U.S.C. $ 3553(a) when
considering the sentence to impose. The U.S.S.G. do not establish the statutory

maximum or minimum sentence applicable to the offense(s) to which the defendant is
pleading guilty. The U.S.S.G. are not mandatory and the Court is not bound to impose a
sentence recommended by the U.S.S.G.
U.S. v. Suzette Kugler
3: l7-cr-00146-SLG

Page8oflT

Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 8 of 17

 B.

Guideline Application Agreements

The parties have no agreements on any guideline applications unless set forth

below in this section.

1.

Acceptance of responsibility

If the United States concludes that the defendant

has satisfied the criteria set out in

U.S.S.G. $ 3E1.1 and the applicable application notes, the United States agrees to

recommend the defendant for a two level downward adjustment for acceptance of

responsibility and, if U.S.S.G.

S

3E1.1(b) applies, to move for the additional one

level adjustment for acceptance of responsibility. If, at any time prior to imposition

of

the sentence, the United States concludes that the defendant has failed to fully satisfu the

criteria set out in U.S.S.G. $ 3E1.1, or has acted in a manner inconsistent with acceptance
of responsibility, the United States will not make or, if already made, will withdraw this
recommendation and motion.

C.

Sentencing Recommendations

The United States Probation Office will prepare the defendant's pre-sentence
report in which it

will include

a recommended calculation

of the defendant's sentence

range under the U.S.S.G. Both the United States and the defendant

will have the

opportunity to argue in support of or in opposition to the guideline sentence range
calculation the U.S.P.O. recommends, as well as present evidence in support of their
respective sentencing arguments.

The United States stipulates that $2B1.1(b)(18)(Axiii) and (B) are

inapplicable in this matter. Although the Defendant intended to cause the offense of
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Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 9 of 17

 conviction, there was no substantial disruption of critical infrastructure occurred as a
result of the remediation efforts by the victim and loss incurred accordingly.

Conversely, the parties stipulate that the four level offense-specific enhancement
mandated by $2B1.1(bXl8)(A)(ii) applies in this matter, as does the "sophisticated
means" enhancement mandated $2B1.1(bX10XC).
The parties are free to recommend to the Court their respective positions on the

appropriate sentence to be imposed in this case based on the stipulated facts set forth in
Section II.C, any additional facts established at the imposition of sentence hearing, the

applicable statutory penalty sections, the advisory U.S.S.G., and the sentencing factors
set forth

in l8 U.S.C. $ 3553. The parties are free to make any recommendation for a

sentence of imprisonmentl a sentence of imprisonment that includes a term

of

supervised release with a condition that substitutes community confinement or
home detention provided at least one month is satisfied by imprisonmentl or a
sentence of probation that includes a condition or combination of conditions that

substitute intermittent confinement, community detention, or home detention for

imprisonment, pursuant to S5C1.1.

IV.

ADDITIONAL AGREEMENTS BY UNITED STATES
In exchange for the defendant's guilty plea and the Court's acceptance of the

defendant's plea and the terms of this agreement, the United States agrees that it will not
prosecute the defendant further for any other offense

-

now known

-

arising out of the

subject of the investigation related to the charges brought in the Indictment in this case
and the defendant's admissions set forth in Section II.C.
U.S. v. Suzette Kugler
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Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 10 of 17

 Provided, however, if the defendant's guilty plea or sentence is/are rejected,

withdrawn, vacated, reversed, set aside, or modified, at any time, in any proceeding, for
any reason, the United States

will be free to prosecute the defendant on all charges arising

out of the investigation of this case including any charges dismissed pursuant to the terms

of this agreement, which charges will be automatically reinstated as well as for perjury
and false statements. The defendant hereby agrees that he/she waives any defense that
the statute of limitations bars the prosecution of such a reinstated charge. After the Court
accepts the plea agreement and after sentencing, the United States

will

dismiss the

remaining counts as they relate to the defendant: Count 2.

V.

WAIVER OF TRIAL RIGHTS, APPELLATE RIGHTS, COLLATERAL
ATTACK RIGHTS, CLAIM FOR ATTORNEY FEES AND COSTS, AND
RULE 410

A.

Trial Rights

Being aware of the following, the defendant waives these trial rights:

If pleading to an Information, the right to have the charges presented to
the grand jury prior to entering the guilty plea;

The right to a speedy and public trial by jury on the factual issues
establishing guilt or any fact affecting the mandatory minimum and
statutory penalties, and any issue affecting any interest in any assets
subject to forfeiture;

The right to object to the composition of the grand or trial jury;

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Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 11 of 17
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 The right to plead not guilty or to persist in that plea

if it has already

been made;
The right to be presumed innocent and not to suffer any criminal penalty
unless and until the defendant's guilt is established beyond a reasonable

doubt;
The right to be represented by counsel at trial and if necessary to have a
counsel appointed at public expense to represent the defendant at trial

-

the defendant is not waiving the right to have counsel continue to
represent the defendant during the sentencing phase of this case;
The right to confront and cross examine witnesses against the defendant,
and the right to subpoena witnesses to appear in the defendant's behalf;

The right to remain silent at trial, with such silence not to be used
against the defendant, and the right to testify in the defendant's own

behalf; and
The right to contest the validity of any searches conducted on the

defendant's property or person.

B.

Appellate Rights

The defendant waives the right to appeal the conviction(s) resulting from the entry

of guilty plea(s) to the charges set forth in this agreement. The defendant further agrees
that if the Court imposes a sentence that does not exceed the statutory maximum penalties

- as set forth in Section II.D above in this agreement, the defendant waives without
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 exception the right to appeal on all grounds contained in l8 U.S.C. S 3742 the sentence
the Court imposes

- including forfeiture (if applicable) or terms or conditions of

probation (if applicable) or supervised release, any fines or restitution.

By waiving these rights, the defendant understands that the conviction(s) and
sentence the Court imposes

will be final. No other court will conduct appellate review of

the conviction(s) or the sentence.

The defendant agrees that the appellate and collateral attack waivers contained

within this agreement will apply to any l8 U.S.C. $ 3582(c) modifications,

as

well

as the

district court's decision to deny any such modification.
Should the defendant file a notice of appeal in violation in this agreement, it

will

constitute a material breach of the agreement. The government is free to reinstate any
dismissed charges, and withdraw any motions for downward departures, or sentences

below the mandatory minimum made pursuant to 18 U.S.C. $ 3553(e).

C.

Collateral Attack Rights

The defendant agrees to waive all rights to collaterally attack the resulting

conviction(s) andlor sentence

- including forfeiture (if applicable)

or terms or conditions

of probation (if applicable) or supervised release, and any fines or restitution

-

the Court

imposes. The only exceptions to this collateral attack waiver are as follows: 1) any
challenge to the conviction or sentence alleging ineffective assistance of counsel

- based

on information not now known to the defendant and which, in the exercise of reasonable

diligence, could not be known by the defendant at the time the Court imposes sentence;

and2) a challenge to the voluntariness of the defendant's guilty plea(s).
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Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 13 of 17
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 D.

Claim for Attorney Fees and Costs

Because this is a negotiated resolution of the case, the parties waive any claim for

the award of attorney fees and costs from the other party.

E.

Evidence Rule 410 and Fed. R. Crim. P. 11(0

By signing this agreement, the defendant admits the truth of the facts in the
Factual Basis portion of this agreement set fonh in Section

II C. The defendant

agrees

that the statements made by her in signing this agreement shall be deemed usable and

admissible against the defendant as stipulations in any hearing, trial or sentencing that
may follow, even if the defendant fails to enter a guilty plea pursuant to this agreement.
The foregoing provision acts as a modification, and express waiver, of Federal Rule

of

Evidence 410 and Federal Rule of Criminal Procedure l1(0.

VI.

ADEQUACY OF THE AGREEMENT
Pursuant to Local Criminal Rule

1

1.2 (d)(7) and (8), this plea agreement is

appropriate in that it conforms with the sentencing goals that would otherwise be
applicable to the defendant's case if the defendant had gone to trial and had been
convicted on all counts in the charging instrument.

VII.

THE DEFENDANT'S ACCEPTANCE OF THE TERMS
AGREEMENT

OF THIS PLEA

I, SUZETTE KUGLER, the defendant, affirm this document contains all of the
agreements made between me

- with the assistance

of my attorney

- and the United

States regarding my plea(s). There are no other promises, assurances, or agreements the

United States has made or entered into with me that have affected my decision to enter
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Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 14 of 17
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 any plea of guilty or to enter into this agreement.
assurances, or agreements, United States and I

If there

are any additional promises,

will jointly inform the Court in writing

before I enter my guilty plea(s).

I understand that no one, including my attorney, can guarantee the outcome of my
case or what sentence the Court may impose

if I plead guilty. If anyone, including my

attorney, has done or said anything other than what is contained in this agreement, I

will

inform the Court when I stand before it to enter my plea.

I enter into this agreement understanding and agreeing that the conditions set forth
herein are obligatory and material to this agreement and that any failure on my part to

fulfill these obligations will constitute a material

breach of this agreement.

If I breach

this agreement, I agree the United States, in its sole discretion, may withdraw from this
agreement and may reinstate prosecution against me on any charges arising out of the

investigation in this matter. If my compliance with the terms of this plea agreement
becomes an issue, at an appropriate hearing, during which I agree any of my disclosures

will be admissible, the Court will determine whether or not I have violated the terms of
this agreement. I understand the government's burden to prove a breach will be by a
preponderance of the evidence.

I understand the Court will ask me under an oath to answer questions about the
offense(s) to which I am pleading guilty and my understanding of this plea agreement. I
understand that I may be prosecuted

if I make false statements or give false answers and

may suffer other consequences set forth in this agreement.

U.S. v. Suzette Kugler
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Pagel5oflT

Case 3:17-cr-00146-SLG Document 14 Filed 01/24/18 Page 15 of 17

 I have read this plea agreement carefully and understand it thoroughly. I know of
no reason why the Court should find me incompetent to enter into this agreement or to
enter my plea(s). I enter into this agreement knowingly and voluntarily. I understand

that anything that I discuss with my attorney is privileged and confidential, and cannot be
revealed without my permission. Knowing this, I agree that this document will be filed

with the Court.

I am fully satisfied with the representation given me by my attorney and am
prepared to repeat this statement at the time

I stand before the Court and enter my guilty

plea(s). My attorney and I have discussed all possible defenses to the charge(s) to which

I am pleading guilty. My attomey has investigated my

case and

followed up on any

information and issues I have raised to my satisfaction. My attorney has taken the time to

fully explain the legal and factual issues involved in my

case to

my satisfaction. We have

discussed the statute(s) applicable to my offense and sentence as well as the possible

effect the U.S.S.G. may have on my sentence.
Based on my complete understanding of this plea agreement, I therefore admit that

I am guilty of Count I of the Indictment.

DATED:｀ く
Defendant

As counsel for the defendant, I have conveyed all formal plea offers. I have
discussed the terms of this plea agreement with the defendant, have fully explained the
charge(s) to which the defendant is pleading guilty, the necessary elements thereto, all
possible defenses, and the consequences of a guilty plea to a felony. Based on these
discussions, I have no reason to doubt that the defendant is knowingly and voluntarily
U.S. v. Suzette Kugler
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 entering into this agreement and entering a plea of guilty. I know of no reason to
question the defendant's competence to make these decisions. If, prior to the imposition
s competency to
of sentence, I become aware of any reason to question
iately inform the
enter into this plea agreement or to enter a plea of gui

肌D:Jユ撃生_

On behalf of the United States, the following accepts the defendant's offer to plead
guilty under the terms of this plea agreement.

DATED:
United Siates Attorney

+r

U.S. v. Suzette Kugler

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