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Home Court filings USA v. Crowther United States v. Casey David Crowther — M.D. Fla., No. 2:20-cr-114-JES-MRM Response in Opposition by USA as to Casey David Crowther — USA v. Crowther (Dkt. 47, M.D. Fla. No. 2:20-mj-01094, docketed in No. 2:20-cr-00114)

Court filing

Response in Opposition by USA as to Casey David Crowther — USA v. Crowther (Dkt. 47, M.D. Fla. No. 2:20-mj-01094, docketed in No. 2:20-cr-00114)

Filed December 4, 2020 in USA v. Crowther; one of 318 filings from this case.

Record facts

CourtU.S. District Court for the Middle District of Florida
Filed2020-12-04

U.S. District Court for the Middle District of Florida · No. 2:20-cr-00114 · Doc. 47 · 2020-12-04 · Docket on CourtListener

Full text

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UNITED STATES DISTRICT COURT 
MIDDLE DISTRICT OF FLORIDA 
FORT MYERS DIVISION 
 
 
UNITED STATES OF AMERICA 
 
v. 
CASE NO. 2:20-cr-114-FtM-66MRM 
 
CASEY DAVID CROWTHER 
 
 
UNITED STATES’ RESPONSE IN OPPOSITION TO  
DEFENDANT’S MOTION TO DISMISS SUPERSEDING 
INDICTMENT AND REQUEST FOR BILL OF PARTICULARS 
 
 
The defendant seeks to dismiss Counts One through Four of the 
superseding indictment (Doc. 32) based upon the contention that the 
superseding indictment fails to state an offense pursuant to Fed. R. Crim. P. 
12(b)(3)(B)(v). Doc. 41. The superseding indictment is legally sufficient as it 
charges the language of the applicable statutes and sufficiently informs the 
defendant of the charges against him. Therefore, the motion to dismiss and 
request for a bill of particulars should be denied.  
SUMMARY OF THE SUPERSEDING INDICTMENT 
 
The defendant is charged in a seven count speaking superseding 
indictment with Bank Fraud (18 U.S.C. § 1344) (Counts One and Five), False 
Statement to Lending Institution (18 U.S.C. § 1014) (Counts Two and Six), 
and Illegal Monetary Transactions (18 U.S.C. § 1957) (Counts Three, Four, 
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and Seven). Doc. 32. Since the defendant is only seeking to dismiss Counts 
One through Four of the superseding indictment, the government will only 
summarize those counts. The superseding indictment contains an introduction 
section that is specifically applicable to Counts One through Four. Id. at 1-4. 
The introduction section identifies and defines the defendant, defendant’s 
business, Small Business Association (“SBA”), Coronavirus Aid, Relief, 
Economic Security (“CARES”) Act, the Paycheck Protection Program 
(“PPP”), and the Lender. Id. The Lender is defined as “a financial institution 
federally insured by the Federal Deposit Insurance Corporation (‘FDIC’) 
headquartered and with branches in Lee County, Florida…” Id. at 4.   
 
The introduction section also describes the PPP loan application 
process and its requirements. Id. at 2-4. Specifically, the introduction section 
explains that a qualifying business is required to acknowledge the PPP rules 
and make certain affirmative certifications in its PPP loan application in order 
to be eligible for a PPP loan. Id. at 3. The PPP loan application is processed by 
a participating lender, and, if approved, the participating lender funds the PPP 
loan with its own monies, which are 100% guaranteed by the SBA. Id.  The 
introduction section also describes the PPP loan proceeds can only be used for 
certain permissible expenses, including payroll costs, mortgage interest, rent, 
and utilities. Id. 
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A. Count One  
 
Count One of the superseding indictment, charging bank fraud, consists 
of three additional sections labeled “The Scheme to Defraud,” “Manner and 
Means of the Scheme,” and “Execution of the Scheme” which outline the 
charge. Id. Further, the Scheme to Defraud section tracks the language of the 
bank fraud statute under 18 U.S.C. § 1344 and states “the defendant did 
knowingly and intentionally execute, and attempt to execute, a scheme and 
artifice to defraud a financial institution, and to obtain monies, funds, credits, 
assets, and other property owned by, and under the custody and control of, a 
financial institution, by means of materially false and fraudulent pretenses, 
representations, and promises.” Compare 18 U.S.C. § 1344 with Doc. 32 at 4.  
The Manner and Means of the Scheme section further details and 
outlines how the defendant perpetrated the scheme and artifice to defraud. 
Moreover, this section describes the false, fraudulent, and misleading 
representations made to the Lender which caused the Lender to deposit funds 
into accounts under the defendant’s control which the defendant used for his 
own personal enrichment. Id. at 4-6. The Execution of the Scheme section 
further states the defendant executed the scheme and artifice to defraud, “by 
submitting a false PPP loan application and revised PPP loan application on 
behalf of his company, Target Roofing, in order to receive a loan from the 
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Lender, a bank insured by the FDIC, which loan was guaranteed by the 
SBA…” Id.at 6-7.  
B. Count Two  
Count Two of the superseding indictment, charging false statement to 
lending institution, tracks the language of the applicable statute under 18 
U.S.C. § 1014. Compare 18 U.S.C. § 1014 with Doc. 32 at 7.  More specifically, 
Count Two summarizes the false statement made by the defendant in a PPP 
loan application and revised PPP loan application submitted to the Lender, an 
institution insured by the FDIC.  
C. Counts Three and Four 
Counts Three and Four of the superseding indictment, charging illegal 
monetary transactions, track the language of the applicable statute under 18 
U.S.C. § 1957. Compare 18 U.S.C. § 1957 with Doc. 32 at 8-9. Further, both 
counts allege the defendant knowingly engaged in monetary transactions in 
criminally derived property of a value greater than $10,000 and it was derived 
from specified unlawful activity. Id. Counts Three and Four describe the 
unlawful activity as bank fraud and further describes each monetary 
transaction in criminally derived property of a value greater than $10,000. Id. 
These monetary transactions include a $100,000 wire made to S.A. in 
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connection with a $722,474.00 promissory note, and a $689,417.00 wire to 
Sara Bay Marina for the purchase of a 40’ Invincible Catamaran boat. Id.  
ARGUMENT 
In determining the legal sufficiency of an indictment, “a district court is 
limited to reviewing the face of the indictment and, more specifically, the 
language used to charge the crime.” United States v. Sharpe, 438 F.3d 1257, 
1263 (11th Cir. 2006) (citing United States v. Critzer, 951 F.2d 306, 307 (11th 
Cir. 1992). Further, the Court is to read the indictment in the light most 
favorable to the United States and assume the factual allegations to be true. 
Sharpe, 438 F.3d at 1258-59. To be valid, an indictment “must contain the 
elements of the offense intended to be charged, and sufficiently apprise the 
defendant of what he must be prepared to meet.” Id. at 1263 (quoting United 
States v. Bobo, 344 F.3d 1076, 1083 (11th Cir. 2003). Moreover, an indictment 
“is sufficient if it charges in the language of the statute.” Critzer, 951 F.2d at 
307.  
With criminal cases, there is no summary judgment mechanism that 
would enable the Court to engage in the pre-trial determination of the 
sufficiency of the government’s evidence. United States v. Salman, 378 F.3d 
1266, 1268 (11th Cir. 2004). Here, the defendant has submitted a motion to 
dismiss that is akin to a civil motion for summary judgment. The defendant’s 
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motion, in essence, asks this Court to make a pre-trial determination of the 
facts and evidence of the case based on what the defendant believes the facts 
and evidence to be. For example, the defendant contends “[t]he Government 
simply cannot establish intent in light of their premature arrest and based upon 
the current charges in Counts One through Four of the Superseding 
Indictment in conjunction with the regulation that govern the CARES Act.” 
Doc. 41 at 5. However, the government is not required to submit a proffer of 
what it will prove at trial in its response to the defendant’s motion to dismiss. 
See Critzer, 951 F.3d at 307-8. Moreover, the focus of the defendant’s argument 
for dismissal is that the government misinterpreted the CARES Act. See Doc. 
41. As will be discussed further below, the superseding indictment does not 
charge the defendant with violating the CARES Act. It charges the defendant 
with violating 18 U.S.C. §§ 1344, 1014, and 1957. The government’s response 
will therefore be limited to the legal sufficiency of the four corners of the 
indictment.  
A. The superseding indictment properly charges and tracks the 
language of the applicable criminal statutes, and the defendant is 
not charged with violating the CARES Act.  
  
The defendant has asked this Court to dismiss Counts One through 
Four of the superseding indictment based upon the premise that the 
government has misinterpreted the CARES Act. Doc. 41 at 11-14. The 
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Defendant is not charged with violating the CARES Act, but is charged in 
Counts One through Four with committing bank fraud, false statement to a 
lending institution, and illegal monetary transactions. Doc. 32 at 1-9. The 
superseding indictment accurately summarizes, in part, relevant portions of 
the CARES Act and PPP for the purpose of charging, with sufficient detail, 
the applicable criminal statutes.  
Congress created the Paycheck Protection Program when it passed the 
CARES Act on March 27, 2020. Coronavirus Aid, Relief, and Economic 
Security Act (CARES Act), Pub. L. No. 116-136, 134 Stat. 281 (2020).  
Sections 1102 and 1106 of the CARES Act make amendments to the SBA’s 
7(a) loan program to include the PPP, under 15 U.S.C. § 636(a)(36). Id. PPP 
loans were to be administered under the SBA’s (7)(a) loan program.  To be 
eligible for PPP loan funding, the borrower was required to make a number of 
certifications. 15 U.S.C. § 636(a)(36)(G)(i).   Significant to this case, the PPP 
borrower was required to make a good faith certification “acknowledging that 
funds [would] be used to retain workers and maintain payroll or make 
mortgage payments, lease payments, and utility payments.” Id. Additionally, 
15 U.S.C. § 636(a)(36)(F) sets forth the allowable uses of the PPP loan 
proceeds. The superseding indictment accurately summarizes these applicable 
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sections of the CARES Act and 15 U.S.C. § 636(a)(36)(G) and (F) in 
paragraphs six and eight of the introduction section. Doc. 32 at 2-4.  
Since being signed into law on March 27, 2020, interim rules have been 
published in the Federal Register concerning the CARES Act and PPP. The 
interim rule published on April 15, 2020 directly specified the certifications the 
PPP borrower makes in the PPP application. Specifically, the borrower 
certifies the “funds will be used to retain workers and maintain payroll or 
make mortgage interest payments, lease payments, and utility payments.”  85 
Fed. Reg. 20814. This certification goes on to state that, “I understand that if 
the funds are knowingly used for unauthorized purposes, the Federal 
Government may hold me legally liable such as for charges of fraud.” Id. 
Moreover, this interim rule directly addressed the criminal repercussions 
associated with the unauthorized use of PPP funds. More specifically, that “if 
you knowingly use the [PPP] funds for unauthorized purposes, you will be 
subject to additional liability such as charges for fraud.” Id. (emphasis added). 
Notwithstanding the defendant’s claims in the motion to dismiss, the 
defendant also cites to this exact section of the April 15, 2020 interim rules. 
Doc. 41 at 8.   
In his motion, the defendant focuses on the claim that a borrower is 
only required to use PPP loan proceeds for authorized purposes if the 
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borrower is seeking loan forgiveness. Id. at 12-14. However, the defendant 
overlooks the fact that his PPP loan would not have been approved had he 
disclosed his true intent to use over $700,000 for unauthorized purposes. Most 
importantly, the superseding indictment does not charge the defendant with 
committing fraud in the PPP loan “forgiveness” process. See Id.  Count One of 
the superseding indictment outlines, in detail, the manner and means by which 
the defendant executed his scheme to defraud the Lender. Doc. 32 at 5. That 
the defendant made materially false and fraudulent misrepresentations to the 
Lender concerning his intended use of PPP loan proceeds in his PPP loan 
applications. See Id. 
While the defendant may seek to introduce his understanding of the 
CARES Act and PPP in defense of his unauthorized use of PPP funds at trial, 
this is not proper grounds for dismissal under Fed. R. Crim. P. 12(b)(3)(B)(v). 
These arguments should be made in a motion for acquittal following the close 
of evidence at trial. See Fed. R. Crim. P. 29; Salman, 378 F.3d at 1268.  
The government maintains it correctly summarized relevant portions of 
the CARES Act and PPP program in the introduction section of its 
superseding indictment, and the defendant is not charged with violating the 
CARES Act.  When Congress passed the CARES Act, they did not enact a 
criminal statute by which someone can be prosecuted for violating the act. As 
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such, the defendant is charged in Counts One through Four with bank fraud, 
false statement to lending institution, and illegal monetary transactions. Each 
count charges the language of the applicable criminal statutes and sufficiently 
apprises the defendant of what he is charged with. Critzer, 951 F.2d at 307. 
Therefore, dismissal would not be appropriate under Fed. R. Crim. P. 
12(b)(3)(B)(v).  
B. Count One alleges the financial institution is the Lender, not the 
SBA.  
 
The defendant argues Count One of the superseding indictment, 
charging bank fraud, should be dismissed because the SBA is not a financial 
institution. Doc. 41 at 14-16. Nowhere in Count One of the superseding 
indictment does the government allege the SBA is the defrauded financial 
institution. Further, Count One of the superseding indictment sufficiently 
alleges the defendant defrauded the Lender, described in the Introduction 
section as “a financial institution federally insured by the Federal Deposit 
Insurance Corporation (‘FDIC’)…” Doc. 32 at 4-7. Count One further alleges 
the defendant knowingly and intentionally executed a scheme and artifice to 
defraud the Lender by making false, fraudulent, and misleading 
representations in PPP loan applications. Id. Moreover, the defendant 
executed the scheme to defraud “in order to receive a loan from the Lender, a 
bank insured by the FDIC, which loan was guaranteed by the SBA and which 
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proceeds were deposited into accounts at the Lender under the defendant’s 
custody and control.” Id. at 7.  
The defendant, in his motion, suggests the Lender in this case had no 
authority to approve PPP loans. Doc. 41 at 14. That is incorrect; the SBA 
delegated authority to authorized lenders to make and approve PPP loans. 15 
U.S.C. § 636(a)(36)(F)(ii). The April 15, 2020 interim rule further clarified 
who was eligible to make PPP loans, which included SBA 7(a) lenders and 
any federally insured depository institution, as well as other financial 
institutions.  85 Fed. Reg. 20815. Furthermore, the introduction section of the 
superseding indictment defines the Lender as an authorized lender and states, 
“the Lender participated in the SBA’s PPP as a lender and, as such, was 
authorized to lend funds to eligible borrowers under the terms of PPP.” Doc. 
32 at 4.  The introduction section also states the Lender was federally insured 
by the FDIC. Id. Therefore, the defendant’s argument in support of dismissing 
Count One of the superseding indictment because the SBA is not a financial 
institution lacks merit. 
The defendant contends that the government acknowledges the 
defrauded institution is the SBA and not the Lender based on paragraph e of 
the manner and means section of Count One of the superseding indictment. 
(Doc. 41 at 14). While the government maintains this argument does not 
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warrant dismissal of Count One of the superseding indictment, the 
government intends on amending the language in paragraph e to reflect the 
Lender funded the PPP loan.1 This is also consistent with paragraph 7 of the 
introduction section, which states “the participating lender funded the PPP 
loan using its own monies, which were 100% guaranteed by the SBA.” Doc. 
32 at 3.    
C. Count One and Count Two state an offense and allege the 
requisite intent.  
 
The defendant contends Counts One and Two of the superseding 
indictment should be dismissed because the government failed to allege the 
requisite intent and state a valid offense. Doc 41 at 16-21. In his motion to 
dismiss, the defendant conflates the legal sufficiency of an indictment with the 
sufficiency of the government’s evidence. For example, the defendant argues 
that “the Government cannot prove Crowther’s intent at the time he signed 
the PPP application…” Doc. 41 at 19. The defendant further argues “the 
Government cannot prove that at the time Crowther signed the PPP 
Application that he knowingly misrepresented” his use of SBA loan proceeds. 
Again, rooted in the defendant’s reasoning for dismissal is what the 
                                                     
1 While the language in paragraph e will be amended in a second superseding 
indictment to reflect the funding of the PPP loan by the Lender, this will not alter the 
pending charges in the superseding indictment and the government believes the 
Court can still address the defendant’s arguments for dismissal.  
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government can “prove.” This invokes a pre-trial examination of the 
sufficiency of the government’s evidence which is prohibited when ruling on a 
Rule 12(b) motion to dismiss. See Salman, 378 F.3d at 1268.  
 The sufficiency of the government’s evidence of the defendant’s intent 
to defraud is not to be determined in a motion to dismiss under Fed. R. Crim. 
P. 12(b), as it would involve looking beyond the face of the superseding 
indictment. See Critzer, 951 F.2d at 307. An examination of the sufficiency of 
the government’s evidence is a factual determination to be made by a jury or 
factfinder and not in a pre-trial motion to dismiss. See Salman, 378 F.3d at 
1268.  
In examining the face of the superseding indictment, Count One and 
Count Two sufficiently allege the requisite intent. Count One alleges the 
defendant knowingly executed a scheme and artifice to defraud a financial 
institution, closely mirroring the language of the bank fraud statute under 18 
U.S.C. § 1344. Doc. 32 at 4-7. Count Two alleges the defendant knowingly 
made a false statement, which tracks the language of the false statement to 
lending institution statute under 18 U.S.C. § 1014. Doc. 32 at 7.  
The appropriate time and place to argue about the sufficiency of the 
government’s evidence is at trial in a motion for acquittal after the government 
has presented its evidence, and if the defendant presents a case, or to a jury in 
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closing argument. Even the McCarrick case, cited and analyzed by the 
defendant, involved the appellate review of the sufficiency of the government’s 
evidence presented at trial and not the legal sufficiency of the governments 
indictment. See United States v. McCarrick, 294 F.3d 1286 (11th Cir. 2002). 
Additionally, the defendant’s contention that Count One of superseding 
indictment is deficient because the government does not allege any loss to the 
Lender or SBA is without merit. Doc. 41 at 20. It is well settled that the bank 
fraud statute does not require proof that the defrauded bank suffered financial 
loss, or that the defendant intended the bank suffer financial harm. See Shaw v. 
United States, 137 S. Ct. 462, 466-67 (2016).  
D. Counts Three and Four (Illegal Monetary Transactions) 
sufficiently allege and specify the unlawful activity. 
 
The defendant requests a dismissal of Counts Three and Four of the 
superseding indictment because the counts do not specify an unlawful activity. 
The defendant’s reasoning is that since the defendant did not commit bank 
fraud, he cannot be charged with violating 18 U.S.C. § 1957. The superseding 
indictment itself tracks the language of 18 U.S.C. § 1957, specifies the 
unlawful activity as bank fraud, and summarizes two separate monetary 
transactions, in and affecting interstate and foreign commerce. Additionally, 
as previously stated, Count One of the superseding indictment sufficiently 
alleges and charges bank fraud. 
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The defendant further argues its belief of what the facts and evidence 
are concerning the appropriate nature of the alleged financial transactions. 
Such a characterization, which the government would disagree with, is based 
upon the defendant’s representation of the facts and evidence of the case. 
Again, these are arguments the defendant should be making at the close of the 
evidence being presented, not in the form of a Rule 12 motion to dismiss.   
E. The defendant’s request for a bill of particulars is without cause 
and should be denied. 
 
As an alternative to dismissing the superseding indictment, the 
defendant has requested the Court order the government file a bill of 
particulars. “The purpose of a bill of particulars is to inform the defendant of 
the charge against him with sufficient precision to allow him to prepare his 
defense, to minimize surprise at trial, and to enable him to plead double 
jeopardy in the event of a later prosecution for the same offense.” United States 
v. Warren, 772 F.2d 827, 837 (11th Cir. 1985) (citing United States v. Cole, 755 
F.2d 748, 760 (11th Cir. 1985); United States v. Mackey, 551 F.2d 967, 970 (5th 
Cir. 1977)). Further, “a defendant is not entitled to a bill of particulars where 
the information sought has already been provided by other sources, such as 
the indictment and discovery.” United States v. Davis, 854 F.3d 1276, 1293 
(11th Cir. 2017) (citing United States v. Martell, 906 F.2d 555,558 (11th Cir. 
1990)).  
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Here, the defendant requests the government file a bill of particulars 
that states what federal regulation the defendant violated. Doc. 41 at 21-22. As 
previously discussed, the superseding indictment charges the defendant with 
violating 18 U.S.C. §§ 1344, 1014, and 1957 and does not charge the 
defendant with violating a federal regulation. Further, the superseding 
indictment is a speaking indictment that sufficiently informs the defendant of 
the charges against him with detail and particularity.  
Additionally, the defendant cannot argue that he is unable to prepare 
his defense without a bill of particulars. The defendant’s first motion to 
dismiss (Doc. 25) and his subsequent motion to dismiss (Doc. 41) are littered 
with a variety of alleged defenses. One of these defenses was that the 
defendant did not intend to use PPP funds to purchase a 40’ Catamaran and 
that the Lender is to blame for using PPP funds for the boat’s purchase. Doc. 
25 at 5. Another defense was that the funds used to purchase the 40’ 
Catamaran were the proceeds of a loan from Target Roofing and the boat’s 
purchase was an investment with a return that would be reinvested into the 
business. Id. at 6-7.  In defense of his use of PPP funds, the defendant also 
argues he was not required to only use PPP funds on payroll costs, mortgage 
interest, lease payments, and utilities and that the government has 
misinterpreted the CARES Act. Id. at 8-11; Doc. 41 at 12-14. In the pending 
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motion and previous motion to dismiss, the defendant has argued the 
government cannot prove the defendant knowingly intended to commit fraud. 
Doc. 25 at 13-19; Doc. 41 at 16-21. The defendant cannot now argue in good 
faith that a bill of particulars is necessary to allow him to prepare his defense. 
Therefore, the defendant’s request for a bill of particulars should be denied.  
F. The defendant’s request for oral argument should be denied. 
The defendant has requested that oral argument be scheduled on his 
motion to dismiss pursuant to Local Rule 3.01. Doc. 41. at 2. However, the 
Court can determine whether dismissal is warranted by examining the four 
corners of the superseding indictment, the arguments contained in the 
defendant’s motion, and the government’s response. Therefore, oral argument 
would not be needed. 
CONCLUSION 
The defendant’s motion to dismiss goes far beyond the scope of what 
this Court may consider in determining the legal sufficiency of the 
government’s indictment under Rule 12. The superseding indictment tracks 
the language of the applicable statutes and sufficiently apprises the defendant 
of the charges against him. Furthermore, the defendant is not entitled to a bill 
of particulars. Wherefore, the United States of America respectfully requests  
 
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the defendant’s motion to dismiss and request for bill of particulars (Doc. 41) 
be denied. 
Respectfully submitted, 
 
 
By: 
 /s/Trent Reichling              
Trenton J. Reichling  
Assistant United States Attorney 
Florida Bar No. 0084601 
2110 First Street, Suite 3-137 
Ft. Myers, Florida 33901 
Telephone: (239) 461-2200 
Facsimile: 
(239) 461-2219 
E-mail: Trenton.Reichling@usdoj.gov 
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U.S. v. Casey David Crowther   
   Case No. 2:20-cr-114-FtM-66MRM 
CERTIFICATE OF SERVICE 
 
I hereby certify that on December 4, 2020, I electronically filed the 
foregoing with the Clerk of the Court by using the CM/ECF system which 
will send a notice of electronic filing to the following: 
Nicole H. Waid  
nicole.waid@fisherbroyles.com  
 
Brian E. Dickerson 
brian.dickerson@fisherbroyles.com  
 
 
 
 
 
 
 
 
/s/ Trent Reichling         
 
 
 
 
 
 
 
Trenton J. Reichling  
 
 
 
 
 
 
 
Assistant United States Attorney 
Case 2:20-cr-00114-JES-M_M     Document 47     Filed 12/04/20     Page 19 of 19 PageID 186

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