Document6 Page1of10- Vw>> JOSEPH P. RUSSONIELLO (CABN 44332) United States Attorney BRIAN J. STRETCH (CABN 163973) Chief, Criminal Division JEFFREY R. EINIGAN (CABN 168285) Assistant United States Attorney 450 Golden Gate Ave., Box 36055 San Francisco, California 94102 Telephone: (415) 436-7200 Fax: (415) 436-7234 E-Mail: jeffrey.finigan@usdoj .g0V St I. it Attomeys for Plaintiff UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION UNITED STATES OF AMERICA, No. CR 10-0500 SI Plaintiff, PLEA AGREEMENT V. HARI JAMIL DILLON, Defendant. I, HARI JAMIL DILLON, and the United States Attorney's Office for the Northern District of California (hereafter "the govemrnent") enter into this written plea agreement (the ''Agreement'') pursuant to Rules and of the Federal Rules of Criminal Procedure: The Defendant's Promises 1. I agree to plead guilty to counts one and three of the captioned Information charging me with wire fraud, in violation of 18 U.S.C. 1343, and counts two and four of the captioned Information charging me with money laundering, in violation of 18 U.S.C. 1957. I PLEA AGREEMENT CR l0-0500 SI Document6 Page2 of 10 agree that the elements of the offenses are as follows: First, with respect to wire fraud -- (1) I made up a scheme or artifice (A) to defraud, or (B) to obtain money or property by making false promises, statements or omissions; (2) I knew that the conduct was misleading, or that the promises or statements were false; (3) the conduct, promises, or statements were material, that is, they would reasonably influence a person to part with money or property; (4) I acted with the intent to defraud; and (5) I used, or caused to be used a wire, radio, or television communication in interstate or foreign commerce to carry out or attempt to carry out an essential part of the scheme; Second, with respect to money laundering -- (1) I knowingly engaged, or attempted to engage; (2) in a monetary transaction in or affecting interstate commerce; (3) with proceeds of a specified unlawful activity (here, wire fraud); (4) in an amount greater than $10,000; and (5) by, through, or to a financial institution. I agree that the maximum penalties are as follows: a. Maximum prison sentence 20 years (wire fraud) 10 years (money laundering) b. Maximum fine $250,000 or twice the amount of gain or loss (each count) c. Maximum supervised release term 3 years (all counts) d. Restitution I To be determined by Court e. Mandatory special assessment $100 (each Count) I understand that, because I am pleading guilty to multiple counts, the Court may order the sentences on those counts to run consecutively. I also understand that the mandatory special assessment will total $400. 2. I agree that I am guilty of the offenses to which I will plead guilty, and I agree that the following facts are true: In approximately August 2002, I met Mouli Cohen (afk/a Samuel Cohen). At that time, I was the President of Vanguard, a non-profit organization funded by private donations. Shortly after I met Cohen, he presented me with an investment opportunity whereby I and others associated with Vanguard could purchase shares of stock in Ecast from Cohen. Cohen represented to me that he was one of the founders of Ecast and that he owned several million PLEA AGREEMENT CR 10-0500 SI 2 Document6 3 f1O V-rt an? age 0 shares of Ecast. During my initial meetings with Cohen in late 2002, he also represented to me that Ecast was in the process of being acquired by Microsoft and that, upon completion of Microsoft's acquisition of Ecast, Ecast shares of stock would be exchanged on a 1 to 1 ratio for shares of Microsoft stock. Cohen indicated that individuals who entered into this investment would be able to share their profits with Vanguard. I repeated Cohen's representations about the investment opportunity to various individuals associated with Vanguard. Based upon Cohen's representations, I and several individuals associated with Vanguard purchased shares of Ecast stock from Cohen between approximately October 2002 and July 2003. Subsequent to purchasing Ecast shares from Cohen, Cohen made numerous representations about Ecast to me, including but not limited to the following: (1) that the United States government required the payment of costs associated with its review and approval of Microsoft's acquisition of Ecast; (2) that the European Union required the payment of costs associated with its review and approval of Microsoft's acquisition of Ecast; (3) that various law firms required the payment of fees and costs associated with their work on behalf of the investors related to Microsoft's acquisition of Ecast; and (4) that investors who purchased Ecast shares from Cohen would lose their investments if they did not pay Cohen to cover the costs imposed by the U.S. and EU regulatory entities related to their review and approval of Microsoft's acquisition of Ecast. In an effort to raise money to cover the costs Cohen was representing to me were required for finalizing the Microsoft acquisition of Ecast, I repeated Cohen's representations to the original investors as well as new individuals in order to obtain the necessary funds to cover the costs. As a result of repeating Cohen's representations, original investors and new individuals agreed to loan money to Cohen to cover the costs. While some of these costs were paid directly to Cohen by investors, the vast majority of these funds to cover costs were paid to me and I was responsible for then paying them to Cohen. While soliciting and collecting these funds, I intentionally failed to advise individuals that I intended to use some of the proceeds of their loans for my own personal expenses. I knew that conduct was misleading and material and that I acted with the intent to defraud. I further understand that I caused interstate wire transactions as a result of my actions. PLEA AGREEMENT CR 10-0500 SI 3 Document6 Page4 of 10 Although these do not represent all of the victims of my fraudulent scheme, the following transactions were part of my scheme. First, Dennis Kowalski wired (via New Jersey) $340,000 to my Wells Fargo Bank account on August 11, 2006, as set forth in count 1 of the information. I intentionally failed to advise Mr. Kowalski that I intended to use some portion of his loan on my personal expenses and, on August 15, 2006, I used $15,447.11 of Mr. Kowalski's money (via a wire from my FDIC insured WFB account) to pay my American Express bill as set forth in count 2 of the information. Second, Asake Bomani wired (via New Jersey) $150,000 to my WF account on December 11, 2006, as set forth in count 3 of the information. I intentionally failed to advise Ms. Bomani that I intended to use some portion of her loan to pay my personal expenses and, on December 13, 2006, I used $43,322.14 of Ms. Bomani's money (via a wire from my FDIC insured WFB account) to pay my American Express bill as set forth in count 4 of the information. I admit that there were more than 10 victims from whom I solicited funds to cover costs and whom I intentionally failed to advise that I intended to use some portion of their funds to pay my personal expenses. 1 further admit that the total loss that I caused by virtue of my fraudulent activities of failing to tell people that I intended to use some portion of their funds on my own personal expenses was no less than $2,500,000. 3. I agree to give up all rights that I would have if I chose to proceed to trial, including the rights to a jury trial with the assistance of an 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 affirmative defenses and present evidence. I also agree to waive venue, if necessary, based on the charges filed in this case. 4. I agree to give up my right to appeal my convictions, the judgment, and orders of the Court. I also agree to waive any right I may have to appeal any aspect of my sentence, including any orders relating to forfeiture andfor restitution. 5. I agree to waive any right I may have to file any collateral attack on my convictions or sentence, including a petition under 28 U.S.C. 2255, or 28 U.S.C. 2241, or PLEA AGREEMENT CR 10-0500 SI 4 Document6 Page5 of 10 motion under 18 U.S.C. 3582, at any time in the future after I am sentenced, except for a claim that my constitutional right to the effective assistance of counsel was violated. 6. I agree not to ask the Court to withdraw my guilty pleas at any time after they are entered. I further agree not to ask the Court for a continuance of my sentencing hearing without the consent of the government. 7. I agree that the Court will calculate my sentencing range under the Sentencing Guidelines. I understand that the Court, while not bound to apply the Guidelines, must consult those Guidelines and take them into account when sentencing, together with the factors set forth in 18 U.S.C. 3553(a). I also agree that the Sentencing Guidelines range will be calculated as follows and that, other than seeking a possible downward departure pursuant to U.S.S.G. Section 5K1.1 andfor 18 U.S.C. Section 3553(e) as contemplated in paragraphs 9 and 10 of this Agreement, I will not ask for any other adjustment to or reduction in the offense level except as set forth in this paragraph: a. Base Offense Level, U.S.S.G. 7 b. Specific offense characteristics: More than 10 victims: 2B1 2 Amount Of Loss: U.S.S.G. 18 c. Acceptance of Responsibility: -3 If I meet the requirements of U.S.S.G. 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 Office in any presentence investigation ordered by the Court, and continue to manifest an acceptance of responsibility through and including the time of sentencing: d. Adjusted offense level: 24 I agree that, regardless of any other provision in this Agreement, the government may and will provide to the Court and the Probation Office all information relevant to the charged offenses or the sentencing decision. I also agree that the Court is not bound by the Sentencing Guidelines calculations above, the Court may conclude that a higher guideline range applies to me, and, if it does, 1 will not be entitled, nor will I ask, to withdraw my guilty pleas. Regardless of the Court's PLEA AGREEMENT CR 10-0500 SI 5 Document6 Page6 of 10 findings regarding the guidelines range applicable to me at the time of sentencing, I understand and agree that I am reserving my right to seek a sentence below that applicable guideline range pursuant to 18 U.S.C. 3553(a), but that the Court may reject my request in whole or in part and, if it does, I will not be entitled, nor will I ask, to withdraw my guilty pleas. I further understand and agree that the lowest prison sentence that I may request pursuant to 18 U.S.C. 3S53(a) is 18 months in prison, unless the government recommends a sentence below 18 months in prison pursuant to U.S.S.G. Section 5K1.1 and/or 18 U.S.C. Section 3S53(e), in which case I will be allowed to request whatever prison sentence the government recommends but not a prison sentence below the government's recommendation. 8. I agree that the Court may order and I will pay restitution in an amount to be determined at the time of my sentencing. I agree that I will make a good faith effort to pay any fine, forfeiture, or restitution I am ordered to pay. Before or after sentencing, I will, upon request of the Court, the government, or the U.S. Probation Office, provide accurate and complete financial information, submit sworn statements and give depositions under oath concerning my assets and my ability to pay, surrender assets 1 obtained as a result of my crimes, and release funds and property under my control in order to pay any fine, forfeiture, or restitution. I agree to pay the special assessment at the time of sentencing. 9. I agree to cooperate with the U.S. Attorney's Office before and after I am sentenced. My cooperation will include, but will not be limited to, the following: a. I will respond truthfully and completely to any and all questions put to me, whether in interviews, before a grand jury or at any trial or other proceeding; b. I will provide all documents and other material asked for by the government; c. I will testify truthfully at any grand jury, court or other proceeding as requested by the government; d. I will surrender any and all assets acquired or obtained directly or indirectly as a result of my illegal conduct; e. I will request continuances of my sentencing date, as necessary, until my cooperation is completed; f. I will not reveal my coo eration, or any information related to it, to anyone without prior consent 0 the government; and PLEA AGREEMENT CR 10-0500 SI 6 Document6 Page? of 10 g. I will participate in undercover activities under the supervision of law enforcement agents or the U.S. Attorney's Office. 10. I agree that the government's decision whether to file a motion pursuant to U.S.S.G. 5Kl.l, as described in the government promises section below, is based on its sole and exclusive decision of whether I have provided substantial assistance and that decision will be binding on me. I understand that the government's decision whether to file such a motion, or the extent of the departure recommended by any motion, will not depend on whether convictions are obtained in any case. I also understand that the Court will not be bound by any recommendation made by the government. 1 1. I agree not to commit or attempt to commit any crimes before sentence is imposed or before I surrender to serve my sentence; violate the terms of my pretrial release; not to intentionally provide false information or testimony to the Court, the Probation Office, 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 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, but I will not be released from my guilty pleas. 12. If I am prosecuted after failing to comply with any promises I made in this Agreement, then I agree that any statements I made to any law enforcement or other government agency or in Court, whether or not made pursuant to the cooperation provisions of this Agreement, may be used in any way; I waive any and all claims under the United States Constitution, Rule 11(f) of the Federal Rules of Criminal Procedure, Rule 410 of the Federal Rules of Evidence, or any other federal statute or rule, to suppress or restrict the use of my statements, or any leads derived from those statements; and I waive any defense to any prosecution that it is barred by a statute of limitations, if the limitations period has run between the date of this Agreement and the date I am indicted. 13. 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 future. PLEA AGREEMENT CR 10-0500 SI 7 Document6 Fi|edO7/Ow Page8 of 10 14. I agree that this Agreement binds the U.S. Attorney' Office for the Northern District of California only, and does not bind any other federal, state, or local agency. The Govemment's Promises 15. The government agrees not to file any additional charges against the defendant that could be filed as a result of the investigation that led to the pending information. 16. The government agrees to recommend the Guidelines calculations set out above. 17. The government agrees not to use any statements made by the defendant pursuant to this Agreement against him, unless the defendant fails to comply with any promises in this Agreement. 18. If, in its sole and exclusive judgment, the government decides that the defendant has cooperated fully and truthfully, provided substantial assistance to law enforcement authorities within the meaning of U.S.S.G. 5K1 .1, and otherwise complied fully with this Agreement, it will file with the Court a motion under 5K1 .1 and/or 18 U.S.C. 3553 that explains the nature and extent of the defendant's cooperation and recommends a downward departure. 19. Based on the information now known to it, the government will not oppose a downward adjustment of three levels for acceptance of responsibility under U.S.S.G. 3E1 .1 provided that I admit my guilt, cooperate with the Court and the Probation Office in any presentence investigation ordered by the Court, and continue to manifest an acceptance of responsibility through and including the time of sentencing. The Defendant's Affirmations 20. I confirm that I have had adequate time to discuss this case, the evidence, and this Agreement with my attorney, and that he has provided me with all the legal advice that I requested. 21. 1 confirm that while I considered signing this Agreement and, at the time I signed it, I was not under the influence of any alcohol, drug, or medicine. 22. I confirm that my decision to enter guilty pleas is made knowing the charges that have been brought against me, any possible defenses, and the benefits and possible detriments of proceeding to trial. I also confirm that my decision to plead guilty is made voluntarily, and no PLEA AGREEMENT CR 10-0500 SI 8 Document6 Fi|edO7/Ow Page9 of 10 one coerced or threatened me to enter into this Agree . I Dated: KARI JAMIL Defendant JOSEPH P. RUSSONIELLO United States Attorney many 112' FINIGAN ssistant United States Attorney Dated: I have fully explained to my client all the rights that a criminal defendant has and all the terms of this Agreement. In my opinion, my client understands all the terms of this Agreement and all the rights he is giving up by pleading guilty, and, based on the information now known to me, his decision to plead guilty is knowing and voluntary. - Dated: 1 7/01 GARRICK LEW Attorney for Defendant PLEA AGREEMENT CR l0-0500 SI 9 Document6 Fi|edO7/014$ Page10of1O UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA Case Number: CR10--0500 SI Plaintiffi CERTIFICATE or SERVICE V. DILLON, Defendant. I, the undersigned, hereby certify that I am an employee in the Ofice of the Clerk, U.S. District Court, Northern District of California. That on July 6, 2010, I SERVED a true and correct copy(ies) of the attached, by placing said copy(ies) in a postage paid envelope addressed to the person(s) hereinafter listed, by depositing said envelo in the U.S. Mail, or by placing said copy(ics) into an inter-office delivery receptacle located int Clerk's ofiice. AUSA - JEFF FINIGAN Garrick Sherman Lew Law Office of Garrick S. Lew 600 Townsend Street Suite 329E San Francisco, CA 94102 U.S. PROBATION - REFERRAL TO BE MADE IN OCTOBER 2010 July 6, 2010 Richard W. Wieking, lerk By: