1 K2I9GOLP 2 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------x 3 UNITED STATES OF AMERICA, 4 v. 1 5 HARALD JOACHIM VON DER GOLTZ, 6 7 18 CR 693 (RMB) Defendant. ------------------------------x 8 New York, N.Y. February 18, 2020 11:25 a.m. 9 10 Before: 11 HON. BARBARA C. MOSES 12 Magistrate Judge 13 14 15 16 17 APPEARANCES GEOFFREY S. BERMAN United States Attorney for the Southern District of New York EUN YOUNG CHOI NATHAN M. REHN II Assistant United States Attorneys 18 19 U.S. DEPARTMENT OF JUSTICE CRIMINAL DIVISION MICHAEL PARKER PARKER REID TOBIN, I 20 21 QUINN EMMANUEL URQUHART & SULLIVAN Attorney for Defendant DANIEL R. KOFFMANN 22 23 ALSO PRESENT: QUOC TUAN NGUYEN, Special Agent IRS - CI 24 25 SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 2 K2I9GOLP 1 (Case called) 2 MS. CHOI: 3 Eun Choi and Thane Rehn on behalf of the government. Good morning, your Honor. 4 With us at counsel table are Michael Parker and Parker Tobin of 5 the Department of Justice Money Laundering and Asset Recovery 6 Section, as well as Special Agent Quoc Tuan Nguyen of the IRS 7 CI. 8 THE COURT: Ms. Choi, gentlemen, welcome. 9 MR. KOFFMANN: Good morning, your Honor. Daniel 10 Koffmann from Quinn Emanuel on behalf of Mr. von der Goltz, who 11 is with me at counsel table. 12 THE COURT: Counsel, Mr. von der Goltz, you don't need 13 to rise. 14 able to speak and understand English? 15 16 I am Magistrate Judge Moses. MR. KOFFMANN: For the record, are you I'm sorry, your Honor, if you could just say that again a little bit louder. 17 THE COURT: There is no need to stand up. 18 Can you speak and understand English? 19 THE DEFENDANT: 20 THE COURT: 21 Counsel, I understand we are here for a change of Yes, your Honor. Thank you, sir. 22 plea. 23 not guilty, now wishes to plead guilty to several counts, all 24 of the counts against him in the indictment; is that correct? 25 I am told that your client, having previously pleaded MR. KOFFMANN: That's correct, your Honor. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 3 K2I9GOLP 1 THE COURT: Let us begin with this form. 2 Mr. von der Goltz, this is a form entitled consent to 3 proceed before a United States magistrate judge on a felony 4 plea allocution. 5 this paper? It looks like your signature. 6 THE DEFENDANT: 7 THE COURT: Did you sign Yes, your Honor. What this form says is that you know you 8 have the right to have your plea taken by a United States 9 district judge but you are agreeing to have your plea taken by 10 a United States magistrate judge which is what I am. 11 As a magistrate judge, I have the authority to take 12 your plea with your consent and you are entitled to all of the 13 same rights and protections as if you were before a district 14 judge. 15 district judge assigned to your case. If you are found guilty, you will be sentenced by the 16 Did you sign the consent form voluntarily? 17 THE DEFENDANT: 18 THE COURT: 19 Before you signed it, did your lawyer explain it to you? 20 THE DEFENDANT: 21 THE COURT: 22 23 24 25 Yes, your Honor. Yes, your Honor. Do you wish to proceed with your plea in my courtroom this morning? MR. KOFFMANN: I'm sorry, your Honor, if you could just repeat that. THE COURT: Do you wish to proceed with your plea SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 4 K2I9GOLP 1 before me in my courtroom this morning? 2 THE DEFENDANT: 3 THE COURT: Yes, your Honor. All right. Counsel could you just get the 4 microphone a little closer to your client so that we can all 5 hear. 6 Mr. von der Goltz, I have been informed that you wish 7 to change your plea and to enter a plea of guilty to Counts One 8 through Nine of your indictment; is that correct? 9 THE DEFENDANT: 10 THE COURT: Yes, your Honor. Before deciding whether to accept a guilty 11 plea from you, I need to ask you a series of questions. It's 12 important that you answer the questions honestly and 13 completely. 14 you understand your rights, to make sure that you are pleading 15 guilty of your own free will, and to make sure that you are 16 pleading guilty because you are guilty and not for some other 17 reason. The purpose of the questions is to make sure that 18 Do you understand what I am saying? 19 THE DEFENDANT: 20 THE COURT: 21 THE DEFENDANT: Yes, your Honor. Can you hear me well enough? Not very well but I'm trying because 22 my hearing aid is not perfect but I can hear most of what 23 you're saying. 24 25 THE COURT: If you don't understand or can't hear any of my questions, please speak up. It is important that you SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 5 K2I9GOLP 1 understand each question before you answer it. 2 that? 3 THE DEFENDANT: 4 THE COURT: Will you do Yes, your Honor, I will do that. And if you need to consult with your 5 lawyer, please speak up as well and I will give you the time 6 you need to talk with your lawyer. 7 Will you do that? 8 THE DEFENDANT: 9 THE COURT: 10 the defendant. Yes, your Honor, I will do that. I will ask the courtroom deputy to swear Raise your right hand, please. 11 (Defendant sworn) 12 THE COURT: Mr. von der Goltz, you are now under oath. 13 Do you understand that? 14 THE DEFENDANT: 15 THE COURT: Yes, your Honor. If you answer any of my questions 16 intentionally falsely, you may be prosecuted for perjury based 17 on those false answers. 18 Do you understand that? 19 THE DEFENDANT: 20 THE COURT: 21 consent to proceed before me. 22 23 Yes, your Honor. I am now signing and accepting your And your first question, sir, is what is your full name? 24 BOTTOM2: Harald Joachim von der Goltz. 25 THE COURT: Thank you. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 6 K2I9GOLP 1 How old are you? 2 THE DEFENDANT: 3 THE COURT: 4 THE DEFENDANT: 5 THE COURT: 6 THE DEFENDANT: 7 THE COURT: 8 THE DEFENDANT: 9 How old are you? No, I'm not. What country are you a citizen of? I'm a citizen of Guatemala and Germany. THE COURT: 11 THE DEFENDANT: 12 THE COURT: Guatemala and Germany? Yes, your Honor. What is the highest educational degree that you received? 14 15 I'm 82 years old. Are you a citizen of the United States? 10 13 Excuse me? THE DEFENDANT: Excuse me. The degree that I got in college? 16 THE COURT: How far did you go in school? 17 (Counsel and defendant confer) 18 THE DEFENDANT: I got -- I got a Master of Science at 19 Massachusetts Institute of Technology. Sorry. A Bachelor of 20 Science, Bachelor of Science at Massachusetts Institute of 21 Technology. 22 THE COURT: Thank you, sir. 23 English is not your first language, correct? 24 THE DEFENDANT: 25 THE COURT: No, it's not. But I take it that since you graduated SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 7 K2I9GOLP 1 college at MIT you can read and write in English. 2 THE DEFENDANT: 3 THE COURT: 4 Are you currently or have you recently been under the 5 Yes, your Honor. Of course. Thank you, sir. care of a doctor, a psychiatrist, or a psychologist? 6 THE DEFENDANT: 7 THE COURT: Under a doctor care, yes, your Honor. I don't need to know detail about your 8 medical condition but I do need to ask you this. 9 any condition that affects your ability to see? 10 THE DEFENDANT: 11 THE COURT: 12 Do I have any conditions that? That affects your ability to see, your vision. 13 THE DEFENDANT: 14 THE COURT: 15 THE DEFENDANT: 16 THE COURT: 17 Do you have No. No, your Honor. Your vision is all right? My eyes are good. Yes. You have some difficulty with your hearing, correct? 18 THE DEFENDANT: 19 THE COURT: 20 THE DEFENDANT: 21 THE COURT: Yes, your Honor, I do have. And do you wear hearing aids for that? Yes, your Honor, I do. Do you have any condition that affects 22 your ability to think or to understand or to make judgments or 23 decisions on your own behalf? 24 THE DEFENDANT: 25 THE COURT: No, your Honor. Within the last 24 hours have you taken SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 8 K2I9GOLP 1 any drugs, medicine, or pills that affect your mental 2 processes? 3 THE DEFENDANT: 4 THE COURT: 5 In the past 24 hours have you consumed any alcohol? 6 7 THE DEFENDANT: THE COURT: 9 THE DEFENDANT: That was yesterday evening? 10 THE COURT: 11 THE DEFENDANT: 12 THE COURT: Is your mind clear now? Yes, your Honor. Do you understand what is happening in this proceeding? THE DEFENDANT: 15 THE COURT: Excuse me? Do you understand what is happening in this proceeding? 17 THE DEFENDANT: 18 THE COURT: 19 Yes, your Honor. All right. 14 16 One glass of wine last night, your Honor. 8 13 No, your Honor. Yes, your Honor. Does either counsel have any objections to the defendant's competence to plead? 20 MS. CHOI: None from the government your Honor. 21 MR. KOFFMANN: 22 THE COURT: 23 Mr. von der Goltz, I have here a copy of the No, your Honor. Thank you. 24 superseding indictment in your case, that is to say the 25 document containing the legal charges against you. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 Have you 9 K2I9GOLP 1 read it? 2 THE DEFENDANT: 3 THE COURT: 4 THE DEFENDANT: 5 THE COURT: 6 (Counsel and defendant confer) 7 THE DEFENDANT: 8 THE COURT: 9 Yes, your Honor. Do you want me to read it to you? No, your Honor. Do you understand what it says you did? Yes, your Honor. Have you had time to talk with your attorney about the charges and about how you wish to plead? 10 THE DEFENDANT: 11 THE COURT: Yes, your Honor. Has your attorney explained the 12 consequences of pleading guilty? 13 THE DEFENDANT: 14 THE COURT: Yes, your Honor. Are you satisfied so far with your 15 attorney's representation of you? 16 THE DEFENDANT: 17 THE COURT: Yes, your Honor. What I'm going to do next is explain 18 certain constitutional rights that you have but that you will 19 be giving up if you enter a guilty plea. 20 listen carefully to what I'm about to say and if you can't hear 21 me or if you don't understand, stop me and either your attorney 22 or I will try to make sure that you do understand. 23 Are you ready? 24 THE DEFENDANT: 25 THE COURT: Yes, your Honor. So, again, please I'm ready. Under the Constitution and laws of the SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 10 K2I9GOLP 1 United States you have a right to plead not guilty to all of 2 the charges against you in the indictment. 3 Do you understand that? 4 THE DEFENDANT: 5 THE COURT: Yes, your Honor. If you plead not guilty, you will be 6 entitled, under the Constitution and laws of the United States, 7 to a speedy and public trial by a jury of those charges. 8 At trial you would be presumed innocent. The 9 government would be required to prove you guilty beyond a 10 reasonable doubt before you could be found guilty. 11 not be found guilty unless a jury of twelve people agreed 12 unanimously that you are guilty beyond a reasonable doubt. 13 Do you understand that? 14 THE DEFENDANT: 15 THE COURT: You could Yes, your Honor. If you decided to go to trial, then at 16 that trial and at every stage of the case you would have the 17 right to be represented by an attorney. 18 afford one, an attorney would be appointed to represent you at 19 the government's expense. 20 private defense counsel, if you were to run out of money an 21 attorney would be appointed for you at that time to continue to 22 represent you. 23 through trial and not just for a guilty plea. 24 to plead guilty should not depend on whether you can or cannot 25 afford to hire or retain a private attorney. If you could not Even though you have retained You are entitled to an attorney all the way So your decision SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 11 K2I9GOLP 1 Do you understand that? 2 THE DEFENDANT: 3 THE COURT: Yes, your Honor. During trial the witnesses for the 4 prosecution would have to come to court and testify in your 5 presence where you could see them and hear them and your lawyer 6 could cross-examine them. 7 offer evidence on your behalf as well. 8 able to use the court's power, known as subpoena power, to 9 compel witnesses to come to court to testify even if they did 10 If you wanted, your lawyer could Your lawyer would be not want to come. 11 Do you understand that? 12 THE DEFENDANT: 13 THE COURT: Yes, your Honor. At trial, you would have the right to 14 testify in your own defense if you wished. 15 the right not to testify. 16 could not be used against you in any way. 17 suggestion of guilt would be permitted from the fact that you 18 chose not to testify. If you chose not to testify, that 19 Do you understand that? 20 THE DEFENDANT: 21 THE COURT: 22 You would also have No inference or Yes, your Honor. If you are convicted at trial, you would have the right to appeal that verdict to a higher court. 23 Do you understand that? 24 THE DEFENDANT: 25 THE COURT: Yes, your Honor. As I said before, you have the right to SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 12 K2I9GOLP 1 2 plead not guilty. Even today, although you came to court for the purpose 3 of entering a guilty plea, you have the right to change your 4 mind, to persist in your not guilty plea, and to go to trial. 5 But if you do plead guilty and if the court accepts your plea, 6 you will give up the right to a trial and the other rights that 7 go with it that I just described. 8 9 If you plead guilty, there will be no trial. will remain to be done will be to impose a sentence. All that You and 10 the government will have a chance to make arguments about what 11 that sentence should be. 12 determine whether you are guilty or not guilty of the charges 13 to which you have pled guilty. But there will not be any trial to 14 Do you understand that? 15 THE DEFENDANT: 16 THE COURT: Yes, your Honor. Do you also understand that the decision 17 as to the appropriate sentence in your case will be entirely up 18 to the sentencing judge? 19 THE DEFENDANT: 20 THE COURT: Yes, your Honor. Not me, not the prosecutors, but the 21 United States district judge who will sentence you. That judge 22 will be limited only by what the law requires. 23 even if you are surprised or disappointed by your sentence you 24 will still be bound by your guilty plea. 25 Do you understand that? This means that SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 13 K2I9GOLP 1 THE DEFENDANT: 2 THE COURT: Yes, your Honor. Finally, if you do plead guilty you will 3 be giving up the right not to incriminate yourself. 4 you questions today about what you did in order to satisfy 5 myself that you are actually guilty. 6 will be admitting your factual as well as your legal guilt. 7 Do you understand that? 8 THE DEFENDANT: 9 THE COURT: I will ask So by pleading guilty you Yes, your Honor. Taking a look at the indictment in your 10 case, I see that Count One charges you with conspiracy to 11 commit tax evasion in violation of 18 U.S.C. Section 371. 12 13 Count Two charges you with wire fraud in violation of 18 U.S.C. Sections 1343 and 2. 14 15 Count Three charges you with a money laundering conspiracy in violation of 18 U.S.C. Section 1956(h). 16 Counts Four, Five, Six and Seven all charge you with a 17 willful failure to file FBARs; that is, to file reports of 18 foreign bank and financial accounts, during different years, in 19 violation of 31 U.S.C. Sections 5314 and 5322(a) and in 20 violation of 31 C.F.R., Sections 1010.350, 1010.306(c) and (d), 21 and 1010.840(b) as well as 18 U.S.C. Section 2. 22 Finally, Counts Eight and Nine charge you with making 23 false statements in violation of 18 U.S.C. Sections 1001(a)(2) 24 and 2. 25 I will now ask Ms. Choi, the Assistant United States SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 14 K2I9GOLP 1 2 Attorney, to state the elements of those charges. The elements, sir, are the things that the government 3 would have to prove beyond a reasonable doubt if the charges 4 against you went to trial. 5 Ms. Choi. 6 MS. CHOI: Your Honor, Count One charges the defendant 7 with participating in a conspiracy to attempt to evade and 8 defeat a substantial part of the income taxes due and owing by 9 von der Goltz during 2000 to 2016. 10 The elements are as follows: First, the existence of 11 a conspiracy charged; that is, there was an agreement between 12 two or more persons to violate a law of the United States, in 13 this case attempt to commit tax evasion; second, that the 14 defendant intentionally and knowingly became a member of the 15 conspiracy; third, that any of the coconspirators knowingly 16 committed or caused to be committed at least one overt act in 17 furtherance of the conspiracy. 18 And with regard to the elements of the substantive 19 crime, that is the object of that conspiracy, there are three 20 elements. 21 von der Goltz had substantial tax due and owing; second that 22 the defendant committed an affirmative act constituting an 23 evasion or attempted evasion of an assessment of a tax; third, 24 that in evading or attempting to evade assessment of taxes due 25 and owing for the years in question the defendant acted First, that the taxpayer at issue, the defendant, SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 15 K2I9GOLP 1 2 knowingly and willfully. Count Two charges the defendant with wire fraud for 3 which there are three elements. 4 or an artifice to defraud or to obtain money or property by 5 materially false and fraudulent pretenses, representations or 6 promises; second, that the defendant knowingly and willfully 7 devised or participated in that scheme or artifice to defraud 8 with knowledge of its fraudulent nature and with a specific 9 intent to defraud; and third, that interstate or international 10 11 First, that there was a scheme wire communications were used in execution of the scheme. Count Three is a money laundering conspiracy which 12 has -- which has the same elements as is set forth in Count One 13 except that there is no need for the government to prove an 14 overt act in regard to this money laundering conspiracy. 15 The object of the conspiracy is money laundering which 16 has two elements. 17 transmitted or transferred or attempted to transport, transmit 18 or transfer a monetary instrument or funds from a place in the 19 United States to or through a place outside the United States 20 or to a place in the United States from or through a place 21 outside of the United States; and second, that the defendant 22 did so with the intent to promote the carrying out of a 23 specified unlawful activity, which in this case is the wire 24 fraud set forth in Count Two. 25 First, that the defendant transported, Counts Four through Seven charge the defendant with SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 16 K2I9GOLP 1 failing to file a report of foreign bank and financial 2 accounts, also known as an FBAR, with the Department of 3 Treasury for certain years over which -- during which the 4 defendant is alleged to have had signature or other authority 5 with respect to foreign bank accounts. 6 Four and Five discuss calendar years 2012 and 2013 with regard 7 to von der Goltz's authority over bank accounts held at a 8 Panamanian bank and a Swiss bank. 9 allege for the calendar years 2014 and 2015 that von der Goltz In particular, Counts And Counts Six and Seven 10 failed to report his authority over bank accounts held in a 11 Panamanian bank. 12 There are four elements to that crime. 13 the defendant was a United States person during the years 14 specified in the count, to wit, Mr. von der Goltz was a United 15 States legal permanent resident from approximately 1984 through 16 October of 2017; second, that von der Goltz had a financial 17 interest in or signature or other authority over a bank, 18 securities or other financial account in a foreign country 19 during the pertinent time; third, the aggregate value of 20 von der Goltz's foreign bank accounts exceeded $10,000 during 21 each of the respective calendar years; and fourth, the 22 defendant von der Goltz willingly failed to file an FBAR on or 23 before June 30 of the year following any of the calendar years 24 identified in those particular counts. 25 First, that Counts Eight and Nine charge von der Goltz with making SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 17 K2I9GOLP 1 materially false statements to the executive branch of the 2 government of the United States, specifically department of 3 justice, in violation of Title 18 United States Code Section 4 1001. 5 There are four elements to this crime. First, that on 6 or about the dates set forth in the indictment for Counts Eight 7 and Nine von der Goltz made a statement or representation; 8 second, that the statement or representation made by 9 von der Goltz was false, fictitious or fraudulent; third, that 10 the statement or representation was material; and fourth, that 11 Mr. von der Goltz acted knowingly and willfully. 12 is one more element. 13 respect to a matter within the jurisdiction of the executive 14 branch of the government of the United States. 15 there was an open investigation involving the department of 16 justice and other branches of the executive branch of the 17 government of the United States for which -- and with regard to 18 which Mr. von der Goltz made false statements to the 19 government. 20 21 Sorry. There Fifth, that the falsification was with Specifically, And finally we would have to prove with a preponderance of the evidence venue as to each of those counts. 22 THE COURT: Thank you, Ms. Choi. 23 Mr. von der Goltz, next I'm going to tell you the 24 maximum possible penalty for the crimes charged in the 25 indictment. The maximum means the most that could possibly be SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 18 K2I9GOLP 1 imposed. This does not mean that it is necessarily what you 2 will receive. 3 yourself to the possibility of receiving a punishment or 4 combination of punishments up to the maximum that I am about to 5 describe. However, by pleading guilty you are exposing 6 Do you understand that? 7 (Counsel and defendant confer) 8 THE DEFENDANT: 9 THE COURT: Yes, your Honor. The maximum term of imprisonment for the 10 crime charged in Count One, that's conspiracy to commit tax 11 evasion, the maximum term of imprisonment for that crime is 12 five years, five years in prison, which could be followed by up 13 to three years of supervised release. 14 If your sentence includes supervised release it means 15 you will be subject to supervision by the probation department 16 after your release from prison. 17 violate any condition of that supervised release the court 18 could revoke the term of supervised release previously imposed 19 and return you to prison without giving you credit for time 20 served on postrelease supervision. 21 restrictions on your liberty, the maximum possible penalty for 22 the crime charged in Count One includes a financial penalty; in 23 this case, $250,000 or twice the profits of the criminal 24 activity or twice what someone other than yourself lost because 25 of the criminal activity, whichever is greater. If that happens and if you In addition to these SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 19 K2I9GOLP 1 I am also required by law to tell you that there is an 2 additional special assessment, an extra fine of one hundred 3 dollars which is required to be imposed on each count of 4 conviction. 5 Moving to Count Two, which charges you with wire 6 fraud, I advise you that Count Two carries a maximum term of 7 imprisonment of 20 years, which could be followed by a maximum 8 term of three years on supervised release and a maximum fine, 9 again, of $250,000 or twice the profits of the criminal 10 activity or twice what someone other than yourself lost because 11 of the criminal activity, whichever is greater, and a one 12 hundred dollar mandatory special assessment. 13 Count Three which charges you with a money laundering 14 conspiracy, carries a maximum term of imprisonment of 20 years, 15 a maximum term of postrelease supervision of three years, a 16 maximum fine in this case of five hundred thousand dollars or 17 twice the value of the property involved in the transaction and 18 a one hundred dollar mandatory special assessment. 19 Counts Four, Five, Six and Seven which charge you with 20 willful failure to file FBARs each carry a maximum term of five 21 years in prison, which could be followed by supervised release 22 of up to three years, a maximum fine of $250,000 or twice the 23 profits of the criminal activity or twice what someone other 24 than yourself lost because of the criminal activity, whichever 25 is greater. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 20 K2I9GOLP 1 Counts Eight and Nine, which charge you with making 2 false statements, each carry a maximum term of imprisonment of 3 five years, a maximum term of supervised release of three 4 years, and a maximum fine of $250,000 or twice the profits of 5 the criminal activity or twice what someone other than yourself 6 lost because of the criminal activity, whichever is greater and 7 a one hundred dollar mandatory special assessment. 8 9 In addition, by pleading guilty you will admit to the forfeiture allegations contained in the indictment and agree to 10 forfeit any property within the scope of 18 U.S.C. Sections 11 981(a)(1)(B) and 982(a)(1), as well as 28 U.S.C. Section 2461. 12 Mr. von der Goltz, if the prison terms on these 13 charges were to run consecutively you would face a potential 14 aggregate prison sentence of up to 75 years. 15 Do you understand that? 16 THE DEFENDANT: 17 THE COURT: Yes, your Honor. Because you are not a citizen of the 18 United States I am required to advise you that your guilty plea 19 will likely have adverse consequences for your ability to 20 remain in or return to the United States including removal, 21 deportation, denial of citizenship and denial of admission to 22 the United States in the future. 23 24 25 Do you understand that your removal or deportation may be mandatory? THE DEFENDANT: Yes, your Honor. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 21 K2I9GOLP 1 THE COURT: And if that does happen you will still be 2 bound by your guilty plea; that is, you will not be able to 3 withdraw it regardless of any advice you have received from 4 your counsel or from anyone else regarding the immigration 5 consequences of your plea. 6 Do you understand that? 7 THE DEFENDANT: 8 THE COURT: 9 Mr. von der Goltz, has anyone threatened you or coerced you in any way to get you to plead guilty? 10 THE DEFENDANT: 11 THE COURT: 12 Yes, your Honor. No, your Honor. Has anyone promised you anything or offered you anything to get you to plead guilty? 13 THE DEFENDANT: No, your Honor. 14 THE COURT: 15 My deputy is handing to me a letter written to your Mr. Snell. 16 lawyer from the government dated February 6, 2020 in which the 17 prosecutors explain how they believe that a part of our law 18 known as the sentencing guidelines will apply to your case. 19 And I see on page 5 of the letter that the government believes 20 that your guidelines range is between 151 and 181 months in 21 prison; that is, the government believes that the guidelines 22 would provide for a sentence in that range. 23 In addition, after determining your ability to pay, 24 the government believes that the guidelines would call for a 25 fine in the range of $35,000 to $350,000. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 22 K2I9GOLP 1 Have you read the letter, Mr. von der Goltz? 2 THE DEFENDANT: 3 THE COURT: 4 THE DEFENDANT: 5 THE COURT: 6 Do you understand what it says? a plea agreement? THE DEFENDANT: 8 THE COURT: 10 11 Yes, your Honor. Do you understand that this letter is not 7 9 Yes, your Honor, I have. Yes, your Honor. It is simply a description of the government's current position as to how the sentencing guidelines should apply in your case. Mr. von der Goltz, do you understand that under the 12 terms of the government's letter, the February 6 letter, even 13 if you later learn that the government withheld from your 14 counsel certain information that would have been helpful to you 15 in defending yourself at trial, you would not be able to 16 complain about that or withdraw your guilty plea on that basis? 17 THE DEFENDANT: 18 THE COURT: Yes, your Honor. Do you understand that the terms of the 19 February 6 letter including any calculations relating to 20 sentencing are not binding on the sentencing judge? 21 THE DEFENDANT: 22 THE COURT: Yes, your Honor. The sentencing judge could reject those 23 calculations and could impose a more severe sentence than you 24 expect without permitting you to withdraw your plea of guilty. 25 The sentencing judge is required to make his own independent SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 23 K2I9GOLP 1 calculation of the appropriate sentencing range under the 2 guidelines. 3 sentence below or above that range up to the maximum sentence 4 that I told you about earlier. He will also have the discretion to give you a 5 In addition to the sentencing guidelines and possible 6 departures from the guidelines, the sentencing judge will also 7 consider the factors set forth at 18 U.S.C. Section 3553(a). 8 In other words, the sentencing judge will pronounce whatever 9 sentence he believes is the appropriate sentence for you even 10 if that sentence is different from the one set forth in the 11 February 6 letter from the government. 12 Do you understand that? 13 THE DEFENDANT: 14 THE COURT: Yes, your Honor. The court will also consider before 15 sentencing you a presentence report that will be prepared by 16 the probation department. 17 have an opportunity to challenge the facts set forth in that 18 report. 19 20 Mr. von der Goltz, do you understand that there is no parole in the federal system? 21 THE DEFENDANT: 22 THE COURT: 23 24 25 Both you and the government will Yes, your Honor. If you are sentenced to prison, you will not be released early on parole. Before I go on, let me ask both counsel if there are any additional provisions of the February 6 letter that you SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 24 K2I9GOLP 1 would like me to go over with Mr. von der Goltz? 2 3 MS. CHOI: issue of restitution that would be imposed by the court. 4 5 Your Honor, I think we would just raise the THE COURT: All right. I've been forgetting that this morning for some reason. 6 Mr. von der Goltz, we discussed the fines that could 7 be part of your sentence. We also discussed forfeiture. In 8 addition, the sentencing judge could impose a term of 9 restitution on you; that is, could direct you to make payments 10 to any victims of the crimes in an amount determined by the 11 court. 12 Do you understand that? 13 THE DEFENDANT: 14 THE COURT: 15 MS. CHOI: 16 THE COURT: 17 MR. KOFFMANN: 18 THE COURT: 19 (Counsel and defendant confer) 20 THE COURT: 21 Yes. All right. Anything else, Ms. Choi? Not from the government, your Honor. All right. Anything from Mr. Koffmann? No, your Honor. All right. Aside from what is in the -- sorry. Do you need a moment? 22 MR. KOFFMANN: No, your Honor. 23 THE COURT: 24 Aside from what is in the February 6 letter from the 25 government, have any promises or representations been made to OK. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 25 K2I9GOLP 1 you to influence you to plead guilty? 2 THE DEFENDANT: 3 THE COURT: 4 Have any promises been made to you concerning the actual sentence that you will receive? 5 THE DEFENDANT: 6 THE COURT: 7 No, your Honor. Excuse me. I didn't hear. Have any promises been made to you as to the actual sentence that you will receive? 8 THE DEFENDANT: 9 THE COURT: No, your Honor. You have been advised of the charges 10 against you, the possible penalties you face, and the rights 11 that you are giving up. 12 guilty to Counts One through Nine of the indictment in your 13 case? 14 THE DEFENDANT: 15 THE COURT: 16 own free will? THE DEFENDANT: 18 THE COURT: One, how do you plead? THE DEFENDANT: 21 THE COURT: Guilty. With respect to Count Two, how do you plead? 23 THE DEFENDANT: 24 THE COURT: 25 Yes, your Honor. Mr. von der Goltz, with respect to Count 20 22 Yes, your Honor. Is your plea voluntary and made of your 17 19 Is it still your intention to plead Guilty. With respect to Count Three, how do you plead? SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 26 K2I9GOLP 1 THE DEFENDANT: 2 THE COURT: 3 With respect to Count Four, how do you plead? 4 THE DEFENDANT: 5 THE COURT: 6 plead? THE DEFENDANT: 8 THE COURT: plead? THE DEFENDANT: 11 THE COURT: plead? THE DEFENDANT: 14 THE COURT: plead? THE DEFENDANT: 17 THE COURT: plead? THE DEFENDANT: 20 THE COURT: 22 23 Guilty. With respect to Count Nine, how do you 19 21 Guilty. With respect to Count Eight, how do you 16 18 Guilty. With respect to Count Seven, how do you 13 15 Guilty. With respect to Count Six, how do you 10 12 Guilty. With respect to Count Five, how do you 7 9 Guilty. Guilty. Can you tell me in your own words what you did that makes you guilty of those crimes. THE DEFENDANT: Yes, your Honor. I have asked my attorneys to help me prepare a statement. 24 THE COURT: That's fine. 25 THE DEFENDANT: And with your permission I would like SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 27 K2I9GOLP 1 to read it. 2 THE COURT: You may. 3 THE DEFENDANT: All right. Until 2017 I was a legal 4 permanent resident of the United States and subject to taxation 5 in this country. 6 required to pay taxes both on income that I earned in my own 7 name and also on the income earned by certain investment 8 vehicles that I owned and were incorporated abroad. 9 As I understood it, that meant that I was In order to avoid paying the tax on the investment 10 income that those foreign investment companies earned, I 11 falsely claimed that those entities did not belong to me and 12 instead belonged only to my mother who was not a U.S. person 13 and, thus, did not pay taxes in the United States. 14 15 16 The goal was so that any income that those investment companies might earn would not be taxed in the United States. In order to carry this out, I included on my personal 17 tax returns only the income earned in my own name and not any 18 income earned in the name of the investment -- foreign 19 investment companies. 20 21 22 23 24 25 I chose not to report to the IRS the foreign bank accounts held by those investment companies. I authorized wire transfers to and from bank accounts both in the United States and abroad. And ultimately when the government began investigating the law firm that assisted me in these efforts, I repeated to SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 28 K2I9GOLP 1 the government officials the falsehood that the investment 2 companies belonged solely to my mother. 3 I'm profoundly sorry for my actions and for the harm I 4 have caused not only to the United States but to the people I 5 deceived, to my friends and most of all to my wife, my 6 children, and other family members. 7 THE COURT: Mr. von der Goltz, did you commit these 8 acts by yourself or with others? 9 THE DEFENDANT: No. 10 assistance of my attorneys. 11 THE COURT: I -- this is by myself with the Did you make any agreement with your 12 attorneys or others to engage in acts that violated the laws of 13 the United States? 14 THE DEFENDANT: 15 MR. KOFFMANN: 16 (Counsel and defendant confer) 17 THE DEFENDANT: 18 No, I did not. Just a moment, your Honor. Yes, your Honor. Sorry. I didn't understand. 19 THE COURT: That's all right. I'll ask the question 20 again. Did you make any agreements with your attorneys or 21 others to engage in conduct that violated the laws of the 22 United States? 23 THE DEFENDANT: 24 THE COURT: 25 I did not make any agreements, no. Well it doesn't have to be formal, Mr. von der Goltz. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 29 K2I9GOLP 1 2 MR. KOFFMANN: Your Honor, if I could just have a moment. 3 (Counsel and defendant confer) 4 THE DEFENDANT: Your Honor, I'm sorry. I didn't fully 5 understand what, you know, the question or the statement was 6 that you made so when my attorney explained it to me yes, I 7 did. Yes, your Honor. 8 THE COURT: 9 THE DEFENDANT: 10 agreement with these attorneys. 11 THE COURT: Yes, you did what, sir? An agreement with these -- an All right. Now, you told me that you were 12 a lawful permanent resident of the United States required to 13 pay taxes on income earned by you both in your own name and 14 through your offshore investment vehicles and that you falsely 15 claimed that those offshore investment vehicles or that the 16 income of those vehicles belonged to your mother who was not a 17 U.S. person rather than yourself. 18 was there substantial tax due and owing under U.S. law? 19 THE DEFENDANT: 20 THE COURT: 21 22 23 24 25 At the time you did that, Yes, your Honor. Yes. Ms. Choi, do you believe that there has been a sufficient factual predicate for a guilty plea? MS. CHOI: Your Honor, I think there are just a few minor points. First with regard to Count Three, the promotional money laundering element. Although the defendant allocuted SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 30 K2I9GOLP 1 that he helped -- he authorized wire transfers to and from the 2 United States, we'd just like him to specify that those wire 3 transfers were intended to help him conceal assets in 4 furtherance of his tax evasion scheme. 5 And also with regard to Counts Four through Seven, 6 simply that the foreign bank accounts at issue that he held 7 money in exceeded ten thousand dollars during the years charged 8 in the indictment. 9 THE COURT: 10 MS. CHOI: That's not the tax. No, your Honor. That's the principal? That's the balance of 11 those particular bank accounts. The obligation to file is if 12 the aggregate value across those foreign bank accounts exceeds 13 ten thousand dollars in that particular year. 14 THE COURT: Anything else? 15 MS. CHOI: 16 Just with regard to the false statements charges. Sorry, your Honor. 17 Although he stated that he made false statements, I just wanted 18 to clarify that there are two specific false statements dates 19 as alleged in the indictment. 20 contained in a May 11, 2016 e-mail that his attorney sent on 21 his request to the United States Attorney's Office as well as a 22 false statement that he made in person to the Department of 23 Justice and the IRS on May 19, 2016. 24 the two separate statements. 25 First, the false statements Those are the bases for And I have a factual assertion with regard to venue SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 31 K2I9GOLP 1 but we can -- 2 THE COURT: 3 Mr. von der Goltz -- 4 MR. KOFFMANN: 5 Let's hold off on that. Go ahead, please. I was just going to ask for a moment to discuss with Mr. von der Goltz. 6 THE COURT: I will give you a moment in a moment. 7 So, first, Mr. von der Goltz let me go back. 8 began by reading from a statement that your attorney helped you 9 prepare, correct? 10 THE DEFENDANT: 11 THE COURT: 12 statement, correct? Right. 13 THE DEFENDANT: 14 THE COURT: 15 THE DEFENDANT: 16 THE COURT: 17 You began by reading from a Yes, your Honor. And your attorney helped you prepare that? I'm what? Did your lawyer help you with that THE DEFENDANT: They helped me prepare it, yes, your Honor. 20 THE COURT: 21 THE DEFENDANT: 22 THE COURT: 23 I didn't hear. statement? 18 19 Excuse me. You Do you adopt those words as your own? Yes, your Honor. Is everything that you told me in that statement true? 24 THE DEFENDANT: 25 THE COURT: Yes, your Honor. All right. The prosecutor has asked that SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 32 K2I9GOLP 1 I ask you a couple of additional questions which your lawyer 2 heard so he knows more or less what they are going to be so I'm 3 going to give him an opportunity to consult with you before I 4 put those questions to you. 5 MR. KOFFMANN: 6 (Counsel and defendant confer) 7 MR. KOFFMANN: 8 THE DEFENDANT: 9 10 Thank you, your Honor. Sorry, your Honor, I didn't understand but my attorney explained it to me and I would respond yes to all three. 11 12 Thank you, your Honor. THE COURT: Well I need to ask the questions first. Are you ready? 13 THE DEFENDANT: 14 THE COURT: Yes. You told me that you sent and received 15 wire transfers to bank accounts in the United States. 16 purpose? 17 THE DEFENDANT: The wire transfers were for 18 investments in different companies and partnerships. 19 what the purpose of those wire transfers were. 20 THE COURT: For what That's Did you send those wire transfers or 21 receive those wire transfers to and from U.S. banks for any 22 unlawful purpose? 23 THE DEFENDANT: 24 THE COURT: 25 THE DEFENDANT: They were for an unlawful purpose? That's my question. They were for investment purposes. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 In 33 K2I9GOLP 1 other words, the wire transfers that were requested were to 2 invest in different investment opportunities. 3 were requested for. 4 THE COURT: That's what they Including investments that you unlawfully 5 failed to report for tax purposes to the United States 6 government? 7 THE DEFENDANT: 8 THE COURT: 9 Yes. We spoke earlier about the FBARs. You know what an FBAR is, correct? 10 THE DEFENDANT: 11 THE COURT: Yes. And you told me -- I think you told me -- 12 well maybe I should ask you the question. 13 FBARs with respect to certain foreign bank accounts as to which 14 you were required to file FBARs? 15 THE DEFENDANT: 16 THE COURT: 17 Yes, your Honor. And was the aggregate balance in those accounts over ten thousand dollars? 18 THE DEFENDANT: 19 THE COURT: 20 Did you fail to file Yes, your Honor. Do you want me to ask year by year, Ms. Choi. 21 MS. CHOI: 22 THE COURT: No, your Honor. All right. That's fine. And Mr. von der Goltz, you 23 told me that you made false statements to representatives of 24 the United States government, that you repeated certain 25 falsehoods concerning the ownership of the accounts that were SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 34 K2I9GOLP 1 not reported. 2 those false statements, either directly or indirectly, to the 3 government? 4 5 6 Can you tell me the dates on which you made THE DEFENDANT: I don't know the exact dates but it was in I believe 2018. THE COURT: Did you, through counsel, did you have 7 your counsel send an e-mail to the government on or about 8 May 11, 2016 with false statements? 9 10 THE DEFENDANT: THE COURT: Yes, your Honor. And did you personally make such false 11 statements to representatives of the Department of Justice on 12 or about May 19, 2016? 13 THE DEFENDANT: Yes, your Honor. 14 THE COURT: 15 Anything else, Ms. Choi? 16 MS. CHOI: 17 THE COURT: Thank you, Mr. von der Goltz. No, your Honor. Mr. von der Goltz, on the basis of your 18 responses to my questions and my observations of your demeanor, 19 I find that you are competent to enter a guilty plea. 20 satisfied that you understand your rights, including your right 21 to go to trial; that you are aware of the consequences of your 22 plea, including the sentence that could be imposed; and that 23 you are voluntarily pleading guilty. 24 have admitted that you are guilty as charged in Counts One 25 through Nine of the indictment and for these reasons I will I am I also conclude that you SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 35 K2I9GOLP 1 recommend that the district judge accept your plea. 2 Ms. Choi is this Judge Berman's case? 3 MS. CHOI: It is, your Honor. And, I'm sorry, I 4 should have reminded the court with regard to venue. 5 government's happy to give a factual stipulation as to venue 6 but if the defense simply waives venue we could leave it at 7 that. 8 THE COURT: 9 MR. KOFFMANN: 10 THE COURT: The Waive venue, counsel? Yes, your Honor. All right. We do waive venue. So I will ask the government 11 to order a copy of the transcript and submit it to Judge Berman 12 together with any additional paperwork that he will need to act 13 on the recommendation. 14 Has he set a sentencing date? 15 MS. CHOI: He has not, your Honor, but the -- but 16 Judge Berman's chambers had indicated that they would like the 17 defendant to appear before him on February 24 at 9:30 a.m. 18 THE COURT: 19 MS. CHOI: To set a sentencing date? Yes, your Honor. Judge Berman requires 20 defendants who plead guilty in magistrate court to appear 21 before him so if he has any questions he could ask them of the 22 defendant directly. 23 THE COURT: That's fine. We think of this as a part 24 of the United States District Court not as, quote, magistrate 25 court for your future reference. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 36 K2I9GOLP 1 MS. CHOI: 2 THE COURT: Understood, your Honor. So you will appear before Judge Berman on 3 February 24, Mr. von der Goltz, and he may have additional 4 questions for you at that time. 5 presentence report be prepared. 6 7 I will direct that a Ms. Choi, can you deliver the case summary to the probation department within 14 days? 8 MS. CHOI: 9 THE COURT: Yes, your Honor. And Mr. Koffmann can you and your client 10 be available for interview by the probation department within 11 14 days? 12 MR. KOFFMANN: 13 THE COURT: 14 All right. The defendant is on bail, correct? 15 MS. CHOI: 16 THE COURT: 17 Yes, your Honor. Yes, your Honor. Any objections to continuing the present bail term? 18 MS. CHOI: 19 THE COURT: None from the government. Mr. von der Goltz, all of the conditions 20 on which you have been released up until now continue to apply. 21 As I am sure you understand, a violation of those conditions 22 would have serious consequences including revocation of bail 23 and prosecution for bail jumping. 24 Do you understand that? 25 THE DEFENDANT: Yes, your Honor. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 37 K2I9GOLP 1 THE COURT: 2 MS. CHOI: 3 THE COURT: 4 MR. KOFFMANN: 5 THE DEFENDANT: 6 (Adjourned) Anything further from the government? No. Thank you, your Honor. From defense? No, your Honor. Thank you, ladies and gentlemen. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300