Iacobelli Plea Deal

Icase ECF No.58 Pagellof32_ United States District COurt Eastern District of Michigan Southern Division United States of'America, - . Case No. l7?or?20406 Honorable Paul Borman V. Offenses: Alphons Iaeobelli, A Count One: Conspiracy to Violate . . the Labor Management Relations Defendant. - . Act (18 U.S.C. 371) Count Seven: Subscribing 21 False Tax Return (26 U.S.C. 7206(1)) I Maximum Imprisonment: Count One: 5 years . Count Seven: 3 years Maximum?Fine: I Count One: $250,000 Count Seven: $100,000 Maximum Supervised Release: Count One: . 3 years CountSeven: 1 year Rule'l'l Plea Agreement 1 Case ECF No. 58 filed 01/23/18 PageID.249 Page 2 of 32 PurSuant to Rule 11 of the Federal Rnles of Criminal Procedure, defendant Alphons Iacobelli and the government agree as follows: I. - Guilty Plea I I A. Counts of Conviction Defendant Alphons Iacobelli will enterva plea of guilty to Count One and Count Seven of the First Superseding Indictment. Count One of the First Superseding Indictment charges conspiracy to violate the Labor Management Relations Act, in violation of 18 U.S.C. "371. I Count Seven of the First Superseding Indictment charges subscribing a false tax return, in violation of 26 U.IS.C. 7206(1) I I Elements of theOffenses - The elements of conspiracy to violate the Labor Management Relations Act, as charged in Count One of the First Stiperseding Indictment, are as follows: (1) Two or more persons conspired to violate the Labor Management Relations Act, in violation of 29U.S.C. 186(a)(2), and I. (2) The defendant knowingly and voluntarily joined-the conspiracy. (3-) .A member of the conspiracy did one of the overt acts described in the First Superseding Indictment for the purpose of advancing or helping the I conspiracy. ,Case ECF No. 58 filed 01/23/18 PageID.250 Page 3 of 32 The elements of subscribingla false tax return, as charged?in Count Seven of the First Superseding Indictment, are as follows: i The defendant made and subscribed a return, statement, or document containing a written declaration made under penalty of perjury;- (2) The defendant knew that the return, statement, or document was false as to a material matter; and (3) The defendant did so with the speci?c, willful intent to violate the law. B. Factual Basis for Guilty. Pleas The following facts are a sufficient and accurate basis for Defendant Alphons Iacobelli?s guilty plea to Count One: Between in or before January 2009 and continuing through in or after June 2015, Alphons Iacobelli knowingly and voluntarily joined a conspiracy in which Fiat Automobiles US LLC and its executives agreed to pay and deliver, and willfully paid and delivered, more than $1.5 million in prohibited payments and things-of value to officers and employees of the UAW. I I Relevant Organizations 1. . Fiat Automobiles US LLC was an automotive company based in Auburn Hills, Michigan, and the successor to the automotive company formerly known as Group LLC. Both are referred to here as FCA is the -3, .Case ECF No. 58 filed 01/23/18 PageID.251 Page 4 0f 32 - United States operating subsidiary of Fiat Automobiles NV, a publicly traded organization listed on the New York Stock Exchange. FCA manufactured and sold automobiles in the United States under brands such as Jeep, Dodge, and Ram. FCA was an employer in an industry affecting interstate commerCe. 2. The International Union, United Automobile, Aerospace, and . Agricultural Implement Workers of America (UAW) was a labor organization based in Detroit, Michigan. The UAW represented tens of thousands of non.- managerial employees employed by FCA at numerous locations in Michigan and across the United States. I I .3. The Skill Development Training Program d/b/a the National Training Center (N TC) was a tax?exempt corporation based in Detroit, Michigan. The NTC purported to function as a labor management committee under the Labor Management Labor Relations Act, 29 U.S.C. - The stated purpose of the NTC was to provide for the education, training, and retraining of workers. I Collective Bargaining Agreements between FCA and the UAW 4. Approximately every four years FCA and the UAW engaged in national negotiations resulting in collective bargaining agreements that set wages, - lCase ECF No. 58 filed 01/23/18 PageID.252 Page 5 of 32 attendance policies, pro?t sharing, rati?cation bonuses, holidays, and other working conditions for FCA employees represented by the 5. . In 2011 and 2015, FCA and the UAW held national negotiation sessions that resulted in rati?ed collective bargaining agreements covering tens of thousands cf FCA employees represented by the UAW. Conspiracy to Violate the Labor Management Relations Act 6. From 2008 until he retired in June 2015, Alphons Iacobelli was the FCA Vice President for Employee Relations. As the FCA Vice President for Employee Relations, Alphons Iacobelli was lead representative for labor relations and had lead responsibility for managing relationship with the UAW. 'Alphons Iacobelli was the senior FCA of?cial responsible.- for negotiating with the UAW and for administering the collective bargaining agreements. between FCA and the UAW,_including the resolutiOn of disputes and grievances that arose under the collective bargaining agreements between FCA and the UAW. 7. Between in or before January 2009 and continuing through in or after June 2015, Alphons Iacobelli knowingly and voluntarily joined a conspiracy in Which AFCA and FCA enecutives and FCA employees agreed to pay and deliver, and willfully paid and delivered, money and things of value to of?cers and employees of the UAW. As part of that conspiracy, Alphons Iacobelli and other FCA executives and FCA employees acting'in the interest of employer FCA used the -5.. ECF No. 58 filed 01/23/18 PagelD.253 Page 6 of 32 bank accounts and credit card-accounts of theNTC to bene?t of?cers and employees of the UAW, knowing that those individuals were not permitted to receive the money and other things of value. 8. Over the course of the conspiracy, FCA Vice PresidentAlphons Iacobelli, CA Director FCA-7, CA Senior Manager l, FCA Financial Analyst Jerome Durden, and other FCA executives and employees, unlawfully paid and delivered more than $1.5 million in prohibited payments and things of value directly and indirectly to UAW Vice President General Holie?eld, UAW Assistant DirectOr Virdell King, UAW Of?cial UAW-2, UAW Of?cial UAW-3, UAW I I Of?cial UAW-4 and other UAW of?cials. The prohibited payments and things of value included paying off themortgage on the personal residence of a UAW Vice President, personal travel, designer clothing, cases of custom-labeled wine, furniture, jewelry, and custom-made watches. 9. As part of the same conspiracy, FCA Vice President Alphons I Iacobelli and other FCA executives and FCA employees- transferred hundreds of thousands of dollars in prohibited payments from FCA, through the NTC, into tax- exempt organizations controlled by UAW of?cials, including the Leave the Light On Foundation and the Making Our Children Smile Foundation, among others. '10. As part of the same conspiracy, FCA Vice President Alphons Iacobelli and other FCA executives and CA employees authorized the regular -6-- ?Case ECF No. 58 filed 01/23/18 PageID.254 Page 7 of 32 transfer of hundreds of thousands of dollars from the NTC to the UAW, purportedly as reimbursement fer the salaries of UAW employees assigned to the NTC. In fact, . many of those UAW employees provided no services to the NTC. The salary reimbursements, along with a fraudulent 7% administrative fee, were authorized by FCA executives as a political gift to the Vice Presidents of the Department, and were paid for using funds provided by FCA. ll. FCA Vice President Alphons Iacobelli, FCA Director'FCA?7, FCA Senior Manager l, FCA Financial Analyst erome Durden, FCA and other - co?conspirators acting in the interest of employer FCA paid and delivered more than $1.5 million in prohibited payments and things of value to UAW of?cers and UAW employees in an effort to obtain bene?ts, concessions, and advantages for . FCA in the negotiation, implementation, and administration of the collective bargaining agreements between FCA and the UAW. - I Overt Acts 12. One or more members of the conSpiracy completed one or more of the following overt acts to effect the object of the conspiracy: 13. In September 2009, FCA Vice President Alphons Iacobelli met with FCA Director FCA senior Manager FCA-1 l, and FCA Financial Analyst Jerome Durden to review spending of NTC funds. During that meeting, Alphons Iacobelli explained that cost cutting was no longer needed at the NTC and that it -7- . Case ECF No. 58 filed 01/23/18 PagelD.255 Page 8 of--32 was time to consider funding for selected ?high value/high leverage programs.? Alphons Iacobelli identi?ed a $50,000 transfer to UAW Vice President General I Holie?eld?s Leave the Light On Foundation as one of four such ?high value/high leverage?Ifexpenditures. I 14. In February 2010, another FCA executive gave a custom-made Terra Cielo Mare watch to UAW Vice President General Holie?eld. Along with the Terra Cielo Mare watch was a hand?Written note from the CA executive that stated ?Dear General, I declared the goods at less than ?fty bucks. That should remove "any potential con?ict. Best regards, and see you soon.? I I 15. In May 2011, FCA Vice President Alphons Iacobelli authorized the expenditure of more than $2,100 to pay for ?rst?class airline travel for Monica Morgan, the. girlfriend of UAW Vice President General Holie?eld. The ?rst?claSs airfare was paid for by the NTC using funds provided FCA Vice President .Alphons Iacobelli sent an email to FCA Financial Analyst Jerome Durden cautioning Durden not to put the details of certain expenditures made for the bene?t of UAW Vice President General Holie?eld in writing. I I 17. In 2011 and 2012, CA Vice President Alphons Iacobelli and other FCA executives and employees authorized and directed the expenditure of more than $435,000 to a company called Wilson?s Diversi?ed Products, also known as Case ECF No. 58 filed 01/23/18 I PagelD.256 . Page 9 of 32 Wilson Diversifed Products, which was owned and controlled by UAW Vice President General Holiefield and his girlfriend and later wife, Monica Morgan. The payments to Wilson Diversi?ed Products were made by the NTC using funds provided by FCA. I I 18. Between 2012 and June 2015, FCA Vice President Alphons Ia'cobelli authorized the expenditure of more than $45 0,000 to pay for personal purchases made by UAW Vice President General Holie?eld and other UAW officials on their NTC-issued credit cards. FCA Vice President Alphons Iacobelli encouraged and authorized UAW Vice President General Holie?eld, UAW Assistant Director Virdell King, UAW Of?cial UAW Of?cial UAW-3, UAW Of?cial UAW- 4, and other UAW of?cials to purchase items such as jewelry, furniture, electronics, designer clothing, and other personal items using their NTC credit cards. - The purchases of personal items and other personal expenses were paid for by the NTC using funds provided by FCA. l9. In-December 2013, FCA Vice President Alphons Iacobelli sent an email to another FCA executive con?rming that UAW Vice President General Holiefield had been ?scripted? in advance of a scheduled meeting between Holie?eld and other members of the International Executive Board. Iacobelli told the other FCA executive that, during the Upcoming meeting, UAW- Vice President General Holie?eld would ?create a dialogue pursuant to our -9- lCase ECF 58 filed 01/23/18 PagelD.257 Page 10 of 32 outline.? At the time of the December 2013 email, members of the UAW International Executive Board were considering the terms of a multi?billion dollar offer to purchase the equity interest held by the UAW Retiree Medical Bene?ts Trust in Group LLC, subsequently known as FCA. That transaction was completed in January of 2014. 20. In June 2014, FCA Vice President Alphons Iacobelli authorized the expenditure of $262,219.71 to pay off the mortgage on the residence of UAW Vice President General Holie?eld and Monica Morgan in Harrison Township, Michigan. The mortgage was paid off with a check issued by the NTC using funds provided by FCA. I 21. In August 2014, FCA Vice President Alphons Iacobelli authorized the I expenditure of more than $30,000 for a party for UAW of?cial held at the FCA-UAW World Class Manufacturing Academy in warren, Michigan. The expenditure included charges for ?ultra-premium? liquor, more than $7,000 worth of cigars, and more than $3,000 worth of wine with custom labels in honor of The expenses were paid for by the NTC using funds provided 22. In February and March of 20 1 5, FCA Vice President Alphons Iacobe'lliand other PCA executives and employees, including FCA Senior Manager offered to pay $50,000 each to select UAW 'officials under the guise of bogus ?settlement agreements.? The terms of those agreements stated that the -10-. ?Case ECF N0. 58 filed 01/23/18 PagelD.258 Page 11 of 32 payments were to be con?dential and that FCA would not pay the $5 0,000 ?if it were unable to add public disclosure? of the arrangements. 23." On February 18, 2015, at theldirection of FCA Vice President Alphons Iacobelli, FCA Senior Manager sent an email to UAW Of?cial UAW-4 offering that FCA would make lump sum payments of $50,000 to select UAW I officials as a ?one?time non-?precedent setting? retirement offer. To ensure that the rank and file?UAW members would not be made aware of the $50,000 payments offered only to senior UAW of?cials, FCA-IO assured UAW-4: ?My people will 1 process the transactions to keep. them out of the plants.? The followmg facts are a sufficient and accurate basis for defendant Alphons Iacobelli?s guilty plea to Count Seven of the First Superseding Indictment: 24. -From in and before January 1, 2009 through June of 2015, Alphons Iacobelli served as the Co-Chairman of the NTC. Alphons Iacobelli held that position at the NTC in his capacity as the FCA Vice President for Employee Relations. 25. Between 2011 and 2015, Alphons Iacobellireceived hundreds of thousands of dollars in compensation from the NTC, which compensation was falsely and fraudulently omitted from tax returns filed with the Internal Revenue Service. ?11- 'Case ECF No.58 filed 01/23/18 PagelD.259 Page 12 of 32 26." On or about March 19, 2015, Alphons Iacobelli, a resident of Rochester Hills, Michigan, willfully made and subscribed a false Form 1040 Individual Income Tax Return for calendar year 2014, veri?ed by a written declaration that it was made under the penalties of perjury, and caused it to be ?led with the Internal Revenue Service. At the time he signed and subscribed the 2014 1 IRS Form 1040 Return, Alphons Iacobelli did not believe the return to be true and correct as to every material matter, in that the return failed to report additional income, in the amount of $861,927, that Alphons Iacobelli received in calendar year 2014. II. Sentencing Guidelines A. Standard of Proof The parties agree that the Court will determine all sentencing factors by a" preponderance of the evidence. B. Agreed Guideline Range The parties agree .on all sentencing factors except the following: - . 1. I If the offense of conviction charged in Count Seven involved ?sophisticated means? Within the de?nition- of USSG The government takes-the position that the defendant?s offense of conviction charged in Count Seven falls within the definition of sophisticated means and that defendant?s base offense levelon that offense should be increased by 2 levels -12- Case ECF N0. 58 filed 01/23/18 PagelD.26O Page 13 Of 32 pursuant to USSG 2T1 Defendant Alphonslacobelli reserves his right to contest the application of USSG 2T1 The parties agree that the Court shall determine this and all sentence guideline factors by a preponderance of the evidence and further agree to be bound by the Court?s determination. i The government takes the position that the defendant?s advisory sentencing guideline range is 97??121 months which, by operation of the'statutory maximum penalties for the offenses of conviction, becomes 96 months. If the Court ?nds: 1. that defendant?s criminal history category is higher than re?ected- on the attached worksheets, or 2. that the offense level should be higher because, after pleading guilty, defendant made any false statement to or withheld information from his iprobationlof?cer; Otherwise demonstrated a lack of acceptance of responsibility for his offenses; or obstructed i justiCe or committed any crime, I and if any such finding results in a higher guideline range higher, the higher guideline range becomes the advisory sentencing guideline range in this matter. Sentence - The Court will impose a sentencelpursuant to 18 U.S.C. 3553, and in doing so must consider the sentencing guideline range. H13- ?Ca-se ECF No. 58 filed 01/23/18 PagelD.261 Page 14 of 32 A. Imprisonment Pursuant to Federal Rule of Criminal Procedure the sentence of imprisonment in this case may not exceed 96 months. The parties further agree that 96 months is the statutory maximum penalty that can be imposed based upon the offenses of convictiOn. I I B. Supervised Release A term of supervised release, if imposed, follows the term of imprisonment. There is no agreement on supervised release. In other words, the Court may impose any term of supervised release up to the statutory maximum term, which in this case is not more than three years. The agreement concerning imprisonment described above in Paragraph 3A does not apply to any term of imprisonment that results from any later revocation of supervised release. C. Special Assessment Defendant will pay a special assessment of $200. D. Fine There is no agreement as to fines. IE. Restitution Pursuant to 18 U.S.C. 3663, the parties agree that restitution payable to the. US. Department of the Treasury shall be imposed in this matter in the amount of not less than $835,523, which figure represents additional federal income taxes due -- l4- ?Case ECF No. 58 filed'Ol/23/18 PagelD.262 Page 15 of 32 and owing to the Internal Revenue Service by defendant Alphons Iacobelli for tax years 2012,2013, 2014 and 2015. The restitution amount of $835,523 may be increased by any interest and assessable penalties due and owing as calculated by the US. Probation department. F. Preparation of Tax Returns and Calculation and Payment of Taxes Due and Owing Not later than .14 days from entry of his guilty plea, defendant Alphons Iacobelli will provide the IRS Examination Division with a true and accurate IRS Form 4549 and a true and accurate IRS Form 870 for the years 2012 through 2015 inclusive by delivering signed copies of such documents to: IRS-CI Special Agent Michael Retroske, 985 Michigan Avenue, RoOm 251, Detroit, Michigan 48226. (ii) As a condition of and at least 90 days prior to the expiration of any term .of probation .or supervised release imposed herein, defendant Alphons Iacobelli shall in good faith ?le true and correct amended individual IRS Form 1040 income tax returns for the tax years 2012, 2013, 2014 and 2015. Defendant'Alphons Iacobelli ishall further cooperate fully and in good faith with the Internal Revenue Service in determining his correct tax liability, including, any assessable penalties and applicable interest owed thereon, and shall make satisfactory arrangements with the Internal Revenue Service for payment of any unpaid taxes, penalties, and interest. -15_ Case ECF No. 58 filed 01/23/18 PagelD.263 Page 16 of 32 (iv) Defendant Alphons Iacobelli agrees that he will not seek, request or file any claim for any refunds of any taxes, penalties or interest for the tax years 2012 through 2015, inclusive. Defendant Alphons Iacobelli shall further cooperate ?illyl and in good faith with the Internal Revenue Service in determining the correct tax liabilities of the NTC and any individual who received unreported income from the NTC, between.- 2009 and 2015, including any assessable penalties, and interest owed thereon. I (vi) Nothing in this Agreement shall limit the Internal Revenue Service in its collection of any taxes, penalties or interest due from defendant Alphons Iacobelli. G. Forfeiture Mont Blanc Pens- Defendant Alphons Iacobelli agrees that the folloiving assets shall not be forfeited in this criminal action, but shall instead be forfeited administratively and/or liquidated under the terms of a separate written agreement between the . parties as payment towards defendant?s restitution judgment for his outstanding income tax obligations for '2012 through 2015: Case ECF No. 58 filed 01/23/18 PageID.264 Page 17 of 32 1. One Merit Blanc, America?s Sign for Freedom, Abraham Lincoln themed pen and the accompanying book and box, serial number 11 (?Pen SN and 2. One Mont Blanc, America?s Sign for Freedom, Abraham LinColn themed pen and the accompanying book and box, serial-number 28 '(?Pen SN I I (together, the ?Subject Property?). To facilitate liquidation of the Subject Property, defendant agrees to secure a Withdrawal of the third party claim filed by Dr. Michael Graham for Pen SN 11. Defendant acknowledges that if he is unable to secure a Withdrawal of the third party Iclaim for Pen SN 11, the pen shall be subject to a judicial forfeiture proceeding. If the United States is required to include Pen SN 11 in a judicial forfeitureproceeding, defendant shall not receive any credit for this asset towards his restitution judgment for his Outstanding income tax obligations for 2012 through 2015. Subject to the preceding paragraph, the net proceeds from the sale of any Subject Property liquidated under this agreement shall be tunied over to be applied toward defendant?s restitution judgment for his outstanding income tax obligations for 2012 through 2015, as described above. ii. Funds in the amount of$354,000 -17- iCase ECF N0. 58 filed 01/23/18 PagelD.265 Page 18 Of 32 Defendant Alphons Iacobelli acknowledges that funds in the amount of $354,000 Were seized inthis matter on or about February 18, 2016 pursuant to a federal seizure warrant Defendant further acknowledges that the $354,000 in funds were thereafter administratively forfeited. As part of this agreement, defendant agrees not to contest either the seizure or the administrative forfeiture of the $354,000 in funds. Defendant further requests thatlthe $354,000 be'applied toward the restitution judgment for his outstanding . income tax obligations for 2012 through 2015, as described above. In the event that the Court enters the requested Judgment of Restitution in favor of the United States Department of Treasury in this case, the parties agree to submit a request to the US. Department of Justice, Criminal Division, Money- Laundering and Asset Recovery Section to remit or restore the administratively forfeited funds to the United States Department of Treasury. Defendant expressly acknowledgesthat these funds have already been administratively forfeited, that any request to remit or restore the funds may be denied by which denial will not be subject to further review, and. that no representations have been made to him by or on behalf of the US. Attorney?s Office as to the likelihood that the request to MLARS will be granted. IV. Cooperation Agreement -18- ?Case ECF No. 58 filed 01/23/18 PagelD.266 Page 19 of 32 The written cooperation agreement between defendant Alphons Iacobelli and the government, which is dated December .15, 2017, is part of this plea I agreement. The government agrees to bring ?no additional criminal charges against defendant Alphons Iacobelli arising out of his involvement in the offenses charged in the First Supersedin Indictment, or for additional criminal conduct disclosed under the terms of the December 15, 2017 cooperation agreement, unless the defendant withdraws his plea or breaches that cooperation agreement. I V. Use of Withdrawn Guilty Plea If the Court allows defendant to withdraw his guilty plea for a ?fair and just - reason? pursuant to Fed. R. Crim. P. defendant Alphons Iacobelli waives his rights under Fed. R. Evid. 410, and the government may use his guilty plea, any statement made under oath at the change-of?plea hearing, and the factual, basis statement in this plea agreement, against him in any proceeding. VI. Defendant?s Right to Withdraw from this Agreement Defendant Alphons Iacobelli may withdraw from this agreement, and may withdraw his guilty plea, if the Court decides to impose a sentence higher than 96 I months. This is the only reason for which defendant. may withdraw from this agreement. The Court shall advise defendant that if he does not withdraw his guilty - plea under this circumstance, the Court may impose a sentence greater than 96 I months. ECase ECF N0. 58 filed 01/23/18 PagelD.267 Page 20 of 32 VII. Appeal Waiver Defendant Alphons Iacobelli waives any right he may have to appeal his conviction on any grounds. If the defendant?s sentence of imprisonment does not exceed 96 months, the defendant also waives any right he may have to appeal his Sentence, including the ?ne and amount of restitution imposed, on any grounds. - Nothing in this waiver bars a timely claim of ineffective assistance of counsel - on appeal or by collateral relief under 28 U.S.C. 2255. Consequences of WithdraWal of Guilty Plea or Vacation of Conviction If the defendant is allowed to withdraw his guilty plea orif any conviction entered pursuant to this agreement is vacated, the Court shall, on the government?s request, reinstate any charges that were dismissed as part of this agreement. If additional charges are ?led against defendant within six months after the date the order vacating defendant?s conviction or allowing him to withdraw his guilty plea becomes ?nal, which charges relate directly or indirectly to the conduct underlying the guilty plea or to any conduct re?ected in the attached worksheets, defendant waives his right to challenge the additional charges-on the ground that they were not filed in a timely manner, including any claim that they were ?led after the limitations period expired. I IX. Parties to Plea Agreement I -20- ?Case ECF No. 58 filed 01/23/18 PagelD.268 Page 21 of 32 Unless otherwise indicated, this agreement does not bind any government agency except the United States Attorney?s Office for the Eastern District of Michigan. X. Scope of Plea Agreement This agreement, which includes all documents that it explicitly incorporates, is the complete agreement between the parties. This agreement supersedes all other premises, repreSentations, understandings and agreements between the parties concerning the subject matter of this plea agreement that. were made at any time before the guilty plea is entered in court. Thus, no oral or written promises made by the government to defendant or to the attorney for the defendant at any time before defendant pleads guilty are binding except to the extent they have been explicitly. incorporated into this agreement. Notwithstanding the previous paragraph, if defendant has entered into a written proffer agreement or a written cooperation agreement with the government, this plea agreement does not supersede or abro gate the terms of any such prior written. agreement. This agreement also does not prevent any civil 'or administrative actions against defendant, or any forfeiture claim against any property, by the United States or any other party. 'Ca's'e ECF No.58 filed 01/23/18 PagelD.269 Page 22 of32 XI. Acceptance of Agreement by Defendant This plea offer expires unless it has been received, fully signed, in the Of?ce of the United States Attorney by 5:00 on December 15, 2017. The govemrnent reserves the right to modify or revoke this offer at any time before defendant pleads guilty. Daniel L. Lemisch Acting Un'ted States Attorney WK ey Assistant United States Attorney Chief, Public Corruption Unit Eharles J. Kalil 11 . Assistant United States Attorney Date: 5 3/537 gift/7 -22 a Bruce C. Judge Assistant United States Attorney Erin S. Shaw Assistant United States Attorney ?Case ECF No'. 58? filed 01/23/18, PagelD.27O Page 23 of 32; . By signing below, defendant acknowledges that he" has read (or has been read) this entire document understands it and agrees to its terms He also that he is satis?ed with his attorney 8 advice and representation. Defendant agrees that he has had a full and complete opportunity to confer with his lawyers, and has had all of his questions answered by his lawyers. ?my; David F._DuMovuchel Alphons Iacobelli Attorney for Defendant Defendant Date: Iain/l 7/ . . Date: 151 do"? 3% Sumw Damien P. DuMouchel Attorney for Defendant Date: lZ/lf?i l7 :23 - Case ECF N0. 58 filed 01/23/18 PagelL).271 Page 24 of 32 OFFENSE LEVEL Defendant A?phons DistrictIOf?ce Eastern District of lilichiaan Docket Number 17"??20406?02 Count Numbers) ELL . U.S. Code Title Section 18 USC 371 L?d?i?m Guidelines Manual Edition Used: 20 i4; (Note: The Worksheets ore keyed ?ro ihe November 1. 20! 6 Guidelines Manual) - msmUcnoms Complete a separate Worksheet A for each count of conviction or as required' 111 a situation listed at the bottom of Worksheet B. i? Exceptions: Use only a single Wciksheet A where the offense level for a group of closely related counts is based p1imar1'ly on aggregate value or quantity (see or Where a count of conspnacy, Solicitation, or attempt 1s grouped with a substantive scent that was the sole object of the consph?acy, solicitation, or attempt (see 2({ii?.4 . . - .141; Igabatg 7% =4 .m?i?n Enter the applicable base offense level and any speci?c offense characteristics from Chapter Two and explain the bases for these determinations. Enter the sum in the box provided. Guideline Description - - - Level Prohibited bribe payments to of?cers and employees of a labor organization 10 52 Vales of payments greater than $1,500,000 +16 If the Chapter Two guideline requires application of a cross reference or other reference, an additional Worksheet A may be needed for that analysis. See Sum 26 - or {seen assass? uri} :jjg?LlEJH 3311212315 (-1 ?w-rma? 1- 1. . 5i - Enter the applicable section and adjustment. If more than one section is applicable, list each section and enter the combined adjustment. If no adjustment is applicable, enter 113315? 5111:. ROWE: ng?araE??rs?mi watt?:2. deli I Lng- . .. . . Enter the applicable section and adjustment If inore than one section is applicable, list each section and enter the combined adjustment If the adjustment reduces the amperaw? +6 offense level, enter a minus (H) sign 1'11 host of the adjustment If no adjustment is .- 1 magi?13;: {gremg .. 11 renaissasns - 11 :5 .1 Enter the applicable section and adjustment Ife more than one section is applicable list each section and enter the combined adjustment. no adjustment is applicable, 3 9 enter 0 . reg, wife? ?grrg?m? ?gr-u nag. Eyelid-airi- Enter the sum of Items 1H4 LEW this A-does not cover when counts of conviction or situations listed at the bottom of Worksheet B, complete Worksheet B. Otherwise, enter this result on 32 Worksheet D, Item 1. Check here if all counts (including situations listed at the bottom of Worksheet are addressed on this one Worksheet A. If so, no Worksheet 18 used. If the defendant has no criminal history, enter here and on Worksheet D, Item 4. No Worksheet 0 is used. 13.3. Sentencing Commission Worksheeis {November 1. 2016) Case ECF N0. 58 filed 01/23/18 PagelD.272 Page 25 of 32 OFFENSE LEVEL Defendant Aiphons iaoobelli DistrictIOf?ce Eastern District ofMichigad" Docket Number 17-cr?20406-02 I Count Number(s) Seven 8 Code Title Section 26 7206(1) . Guidelines Manuel Edition Used: 2016 (Note: The Worksheeis ore keyed to the November 1 2016 Guidelines Manual) INSTRUCTIONS Complete a separate Worksheet A for each count of conviction or as requiredin a situation listed at the bottom of Worksheet Exceptions: Use only a single Worksheet A Where the offense level for a group of closely related counts is based plhua?ljr on aggregate value or quantity (see or where a count of consPiracy, solicitation or attempt' 18 grouped with a substantive count that was the sole object of the conspiracy, solicitation, or attempt (sec ?3D1.2(a) Elie. illegal?? .511? ., . e: - Enter the applicable base offense level and any speoiilc offense characteristics flora Chapter Two and explain the bases for these determinations. Enter the sum in the box p1ovided. Guideline Descriplion Level 81 False returns with total tax loss of more than $550.00 20 .- Defendant failed to report Income exceeding $10,000 from criminal activity +2 Offense involved sophisticated means I +2 If the Chapter Two guideline reouires application of a cross reference or other reference, an additional WorksheetAmay be needed for that analysis See Sum 24 acres. 11.1115so. Enter the applicable section and adjustment. If more than one section is applicable, list each section and enter the combined adjustment. If no adjustment' 1s applicable, enter Elm? ?ie meals new? essence. "kn . - i?iirftl?r Enter the epphcable section and adjustmen. lf more than one section is applicable, list each section and enter the combined adjustment. If the adjustment reduces the 33113 +2 offense level, enter a minus sign in front of the adjustment If no adjustment 1s applicable, enter e3" . .1 telesales f1 Enter the applicable section and adjustment. lf 1110113 than one section is applicable list each section and enter the combined adjustment. lfno adjustment 1s applicable, - enter lrllEE.cEnter the sum of Items lad-.11? this Wo1ksheet A does not cover all counts of conviction or situations listed at the bottom of Worksheet complete Worksheet B. Otherwise, enter this lesult on 26 Wo1ksheet I), Item 1 anagrams-W?s? Check here if all counts (including situations listed at the bottom of Worksheet are addressed on: this one Worksheet A. If so, no Worksheet is used. If the defendant has no criminal history, enter here and on Worksheet D, Item 4.. No Worksheet 0 is used. 11.3. Sentencing Commission Worksheeisi November 1 . 2016.} Case ECF N0. 58 filed 01/23/18 PagelD.273 Page 26 of 32 .. MULTIPLE Defendant Alphons lacobeiil DocketNumber Her?2040602 INSTRUCTIONS . STEP Determine if any of the counts group under (?the grouping rules?). All, some, or none of the counts may group. Some of the counts may have already been grouped in the application uncles Worksheet A, speci?cally: (1) counts grouped under 01? (2) a count charging conspiracy, solicitation, or attempt that is grouped with the substantive count of conviction (see Explain the reasons for grouping: STEP 2: Using the box(es) provided below, for?each group of ?closely related counts? (11.6., counts that group together under any of the four grouping rules), enter the highest adjuste? offense level from Item 5 of the various Worksheets that comprise the group. See Note that a ?group?-may consist of a single count that has not groupe?i with any other count In those instances, the offense level for the group will he the adjusted offense level for the single count. STEP 3: Enter the number of units ,to be assignetl to each group (see as follows: 0 One unit (1) for the group of counts with the highest offense level 0 An a?ditional unit (1) for each group that is equally serious or 1 to 4 levels less serious 0 An additional half unit for each group that is 5 to 8 levels less serious a No increase in units for groups that are 9 or more levels less serious ?ewesweer?vr?e i teth?Li 14 One Count numbei?(s) Seven ?331133 .T av. Count numb er(s) - in 253;._ gees- sec?esscab. ems? 'ng .. 2s 3 units: add sieves 1% units: add 1 level 3% 5 units: add elevels 1 2 units: add 2 levels More than 5 units: add 5 levels - . ?shes?w?uz. - i a For i lag?L): L2 sl . . Enter the sum of Items 7 8; 8 here and on Worksheet D, Item *Nole: Worksheet also includes applicaiions ihai are done "as if .ihere were multiple oounls of nonviollons.? including: multiple?object conspiracies {see ?iBi salon; offense goldeilnes lhai direoi such application {am} {Child Porn Producilonil: and silpuiailons lo additional offenses (see ?i 131 Hole also lhal ihese situations 1iyploally require the use of Worksheets A. Sentencing CommiSslon Worksheeis [November 20! 6} Case ECF N0. 58 filed 01/23/18 PageID.274 Page 27 of 32 I CRIMINALHISTORY [Page i of 2] Docket Number 17?3r?20406?702 Defendant. Phone l83013635" Note: As an did, some of the basic criminal hisiory ?rules" are llsled below. However. there are numerous additional criminal history rules at ??4Al .i and .2 that must be used with Worksheet and for correct applicallon. seer the Earliest Date of the Defendant?s Relevant Conduct January .1: 2009 (The date of the defendant ?3 commencement of the instant offense(s)) . . Lumriviahh mmgq?. an 3 Points if convicted as an adult, for each prior sentence of imprisonment exceeding one year and one month imposed Within. 15 years of the defendant?s earliest date of relevant conduct or resulting in incarceration during any part of that 15?year period. See and 2 Points for each prior adult sentence of confinement of at least 6'0 days not counted under ?4A1.1(a) imposed within 5 years or ?ood which the defendant was released from con?nement Within 5 years of the defendant?s earliest date of relevant conduct. See and 1 Point for each prior adult or juvenile sentence not counted under ?4A1.1(a) or ?4A1.1(b) imposed within 5 years of the defendant?s earliest date of relevant conduct. See and More: Identify as ?adult? any sentence exceeding one year and one month that resulted from on adult A release date is required in only into instances: when a senienoe covered under ?4Ai .i was imposed more than 1.5 years prior to the defendanl?s earliesi date of relevant conduct but resulted in the defendani being incarcerated during any part or such i5~year period: or (2) when a sentence countedunder ?4Ai .i was Imposed more than 5 years prior to ihe defendant's earliest dale of relevant concoct, but release from confinement occurred wiihin such dyear period. Release Guideline . Criminal Daie of Date Seciion History Poln?rs Imposition Offense Sentence see . - 2v :2 HEM Yt- ., sauss?= agr??fm . I - 3 Points for each prior sentence of imprisonment exceeding one year? and one month imposed within 15 years of the defendant?s earliest date of relevant conduct or-resulting in incarceration during any part; of? that 15-year period. See and - 2 Points for each prior sentence of imprisonment of at least 60 days not counted under ?4A1.1(a) imposed within 10 years of the defendant?s earliest date of relevant conduct. See and 1 Point for each prior sentence not counted under ?4A1.1(a) or ?4A1.1(b) imposed within 10 years. of the defendant?s earliest date of relevant conduct. See and Note: A release date is required when a sentence covered under ?4Ai .l was Imposed more than 1'5 years prior to the defendant's eddies? date of relevant conduct bui resulted in the defendant being incarcerated during any pari of such 15-year period. Wale of Release Guideline Crimlnal Offense Sentence . Dole Section History Poinis imposition U.3. Sentencing Commission Worksheets [November], 2016} Case ECF No. 58 filed 01/23/18 PagelD.275 Page 28 of 32 {x WorksheeiL Criminal Hisiory'[que 2 of 2] 17?crn20408~02 Alphons Iacobeili Docket; Number Defendant (continued from Sentences Resulting ?cm Offenses Committed On or After the Defendant?s 18th Birthday) Date of Offense Sentence Release Guideline Criminal imposition Dole Section History Points "assessed?Jaws sewsek fewesee?tw in?nite A total of 4 points can he added for all the 1-Poi 1; sentences counted inltems 1 8t 2 combined. F?T?T?mr?i?s??e?f 4 sees. 2 matey-e1 lens. ?11.11 sfoegee?ii?n ?ttest 2 Points for ?status? if the defendant committed any part of the histant offense (11.3., any re conduct) while under any criminal justice sentence probation, parole, supervised release, imprisonment, work release, or escape status) for a sentence counted in Items 1 or 2, See ?4A1.1(d) ancl Application Note 4. List the type of control and identify the counted sentence that resulted in the control. Otherwise, enter 0 Points. Fm L?EJ?fg?egmg?fnug - ?gin-352i: .: - We ?f?ag?i??WEEfF?m @jm?ioty liq?[enema 1,?7 a" . #73" a?r?L-mhph? . ohm, -, 2:11: ?an ?lo-Varm?gf 1 Point for each sentence resulhng from a of a crane of Vlolence that not receive any points under or becanse such sentence was counted as a single sentence which also included another sentence resulting from a conviction for a crime of violence. A total of 3' points can be added under this subsection. See ?4A1,1(e) and Application Note 5, and 82; Identi?v the crimes of violence and brie?y explain why the cases are considered a single sentence. Otherwise, enter 0 Points. ".ju . f. es; ?tee? . gtfirst?? see an?! - -. We . n- lens: enquire-vi - Ei?l?n?gunel?iaell?ms?i?ei i niri?heli?nwit 1. . we?; - - m: re. 421353211?an siegecm??ai?i 8 premarital-L v.3. Sentencing Commission Worksheets [November], 2016} Case ECF N0. 58 filed 01/23/18 PagelD.276 Page 29 of 32 . DETERMINING THE SENTENCE [Page 1 of 4] Defendant Alphons lacobelli . Docket Number 17.9r.2g4{33.02 swag?J?s? . as: .?dj?st?gee stresses If worksheet is required, enter the result from worksheet from Worksheet A, Item 5. ?at 31:51:77? ?nen??i swan -. #slarnm-?; i. .. .. I En er the applicable reduction of 2 or? levels. Ifno adJustrn nt tr. assuage-333;? i . are? Enter the result from directed Cl. Offense Level Total - lf'the provision for Career Offender Criminal Livelihood. Armed Career Gijininal 1.4), or Repeat and Dangerous Sex Offender @413 1.5) results in an offense level total higher than Item 3, enter the offense level total. Otherwise, enter b. Criminal History Category lithe provision for Terrorism 3131.4), Career Offender 4131.1), Armed Career Criminal $431.4), or Repeat and Dangerous Sex Offender 64131.5) results in a criminal history category higher than licable criminal history category. Otherwise, enter ?vtln at aw.? ?s sew: . new raru?a?sts?e?lastn . .3 - If the statutorily authorized maximum senteno minimum sentence restricts the guideline range (Item 6) (see and 5G1.2), 1-0 96 enter either the restricted guideline range or any statutory maximum or minimum penalty that would modify the guideline range. Otherwise, enter Check here if (Limitation on Applicability of Statutory Minimum Penalties in Certain Cases) and 18 U.S.O. 3558(e) ?The Safety Valve? are applicable. - 2v or" 5-: nurses. .. . If the defendant is subject to an undiecharged term of imprisonment, or an anticipated state term of imprisonment, check this box. Below list the u11discharged/anticipated ter1n(s), the applicable section of and its direction or guidance as to whether the instant federal sentence is to be imposed to run concurrently 01' consecutively to the undischargedianticip ated term(s), and any sentence adjustment. reggae-r- are . .32.: assess; 5.. HL vi? a, as. Sentencing Commission Worksheets (November 1. 2016) Case EC-F N0. 58 filed 01/23/18 PagelD.277r Page 30 of 32 WorksheetD -- Determining the Sentence [Page 2 of 4] Defendant Aiphons iacobetti . Docket Number Wet?20406402- ?5 - and: .1 ?sts 7?17": 2: rig-1%: Witt-x ?up. messages r. .. e?tsneideas gin E?s-mph Bte?d?i?5tila an?. Check the applicable box that corresponds to the Guide?ne Range entered in Item 6 or Item 7, if applicable. ro?ne AtSee a 5st .1 a If checked, the following options are avm'lable: 0 Fine (See ?Straigh Probation (See 8: 5015103)) I Imprisonment (See ?501.1(a) Zone 501.1(0) a If checked, the minimum term may be satisfied by: . Imprisonnient (See ?501.1(a) a 0 Imprisonment of at least one month plus sap cruised release with a condition that substitutes. community confinement or home detention for imprisonment (See I Probation with a condition that substitutes intermittent confinement, community confinement, or home detention for imp risonment (See 1(a) (2.) and 5 01.1(o) . Zone [See If checked, the minimum term may be satisfied by: . - Imprisonment (See ?501.1(a) (am) Imprisonment of at least onenhatf of the minimum term plus sap cruised release with a condition that substitutes community con?nement or home detention for imprisonment (See ?5?01. 1(d) Zone (See ?5Ci .i it If checked, the minimum term is to be satis?ed by a sentence of imprisonment 3:3? inns page? meggamt?t; we twittering? 941?s eggs . . - asenaieitnaergi If probation is imposed, the guideline for the length of such term of probation is: (Check the applicable box) At least one year, but not more than ?ve ye are if the offense level total is '6 or greater. No more than three years if the offense level total is 5 or less. U5. Sentencing Commission Worksheets [November 2016} Case ECF N0. 58 I filed 01/23/18 PagelD._278 Page 31 of 32 9 Worksheet Determining the Sentence [Page 3 of 4] Defendant ?phons "leashes: Docket Number i scrim" ?n 55- 11:" I I I. H?i?gfigme?Imposition of at Term of1 Supervised Release: Ordered because required by statute (See 1. I Ordered because a sentence of imprisonment of more than one year is imposed (See Is not ordered although a sentence of more than one year is imposed, because it is not reouired by statute and the defendant likely will be deported after imprisonment (See Ordered because it may be ordered in any other case (See b. Length of Term of Supervised Release Check the Glass of the Offense: Class A or Felony: Two to Five Year Term (See 01' Felony: One to Three Year Term (See Class Felony or Class A Misdemeanor: One Year Term (See If a: statutorily required mandatory minimum term of supervised release for the offense impacts the guideline range for the applicable Glass of Offense above, also check this box, and list the statutory minimum term (See years mandatory minimum term of supervised release If an offense in 18 2332b that resulted in, or created a foreseeable risk of, death or serious bcdily injury to another person; or if a sex. offense, the term of supervised release will not be less than the minimum term established?above, and may be up to life (See 1.203)). Policy Statement: If a sex offense, the statutory maximum term of supervised release is recommended. tafts??o?neaa a. If restitution is applicable, enter the amount. Otherwise enter and the reason: Restllu?ou payable to the Department cfihe Treasury shall be Imposed in this matter In the amount ofnoi Eess than $835,523.00. The reslltullon amount may be increased by Interest due and owlng and applicable penaitles as calculated by the U.S. Probailon department. b. Enter Whether restitution is statutorily mandatory or discretionary: Discretionary Enter Whether restitution is by an order of restitution, or solely as a condition of supervision. Enter the authorizing statute: Order of Restitution under 18 use 3663 Sentencing Worksheets (November 1, 2016] Case ECF N0. 58 filed 01/23/18 PagelD.279 Page 32 of 32 Worksheet Determining me Sentence [Page 4 of 4] Docket Number 17?)??20406?02 Defemlant Alphons laoobelii I w, . l1 mesa: Gatde?hecapseif'o . . 57:. o. Speciolfine Provisions - - Minimum Maximum Check box if any of the counts of conviction is for a statute with a special ?ne provision. (This does not include the general ?ne provisions of 18 USC 3571(b) (2) Enter the sum of statutory maximum fines for all such counts. $350,000 . b. Fine Table - . Enter the minimum and maximum fines. 301000 300*000 c. Fine Guideline Range (Determined by the-minimum of the Fine Table (Item 1503)) and the greater maximum above (Item 15(a) or 30?000 350?000 d. Ability to Pay Check this box if the defendant does not have an ability to pay. Enter the total amount of the statutory special assessments required for all counts of conviction: . $100 for each felony count of conviction. - $25 for each Class A misdemeanor count of conviction. 9 While not subject to guideline sentencing, the special assessments for 31012133 mie?emeanor, and. a Class misdemeanor or infraction are $10 and $5 per count, respectively. TOTAL: . $200 Sib?le??ews?h ?ena?ep?ter??n . - as..%m Consider Chapter Five, Part (Speci?c Offender Characteristics) and Part (Departures), and other policy statements and commentary in the Guidelines Manual that; might warrant consideration in sentencing. (See also the ?List of Departure Provisions." included in the Guidelines Manual after the Index). Consider the applicable factors in 18 USE. 8553(a) taken as a whole. To be presented by defendant prior to or at the time of sentencing Completed by AUSA Bruce (3. Judge Date November 1, 2017 U.S. Sentencing Commission Worksheeis (November I . 2016}