PLEA AGREEMENT as to Chynna Savath — USA v. Savath (Dkt. 3)

Record facts

U.S. District Court for the District of Massachusetts · No. 1:21-cr-10269-RGS · Doc. 3 · 2021-09-13 · Docket on CourtListener

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Case 1:21-cr-10269-RGS Document3 Filed 09/13/21 Page1of8

U.S. Department of Justice

Nathaniel R. Mendell
Acting United States Attorney
District of Massachusetts

Main Reception: (617) 748-3100 John Joseph Moakley United States Courthouse
1 Courthouse Way
Suite 9200
Boston, Massachusetts 02210

August 27, 2021
Daniel Cloherty, Esq.
One Federal Street,
Boston, MA 02110

Re: United States v. Chynna Savath

Dear Mr. Cloherty:

The United States Attomey for the District of Massachusetts (“the U.S. Attorney”) and your
client, Chynna Savath (“Defendant”), agree as follows, pursuant to Federal Rule of Criminal
Procedure (“Rule”) 11(c)(1)(C):

1. Change of Plea

No later than September 10, 2021, Defendant will waive Indictment and plead guilty to
counts one and two of the Information: wire fraud, in violation of 18 U.S.C. § 1343. Defendant
admits that she committed the crimes specified in these counts and is in fact guilty of each one.
Defendant agrees to the accuracy of the attached statement of facts. Defendant also agrees to
waive venue, to waive any applicable statute of limitations, and to waive any legal or procedural
defects in the Information.

2. Penalties

Defendant faces the following maximum penalties: incarceration for 20 years, supervised
release for three years; a fine of $250,000,000; a mandatory special assessment of $200; and
restitution; and forfeiture to the extent charged in the Information.

Defendant understands that, if she is not a United States citizen by birth, pleading guilty
may affect Defendant’s immigration status. Defendant agrees to plead guilty regardless of any
potential immigration consequences, even if Defendant’s plea results in being automatically
removed from the United States.
Case 1:21-cr-10269-RGS Document3 _ Filed 09/13/21 Page 2of8

3, Rule 11(c)(1)(C) Plea

In accordance with Rule 11(c)(1)(C), if the Court accepts this Plea Agreement, the Court
must include the agreed disposition in the judgment. If the Court rejects any part of this Plea
Agreement, the U.S. Attorney may void the agreement and/or Defendant may withdraw from it.
Defendant may not withdraw her plea for any other reason.

Should the U.S. Attorney void the agreement and/or Defendant moves to withdraw her
guilty plea, Defendant agrees to waive any defenses based upon statute of limitations, the
constitutional protection against pre-indictment delay, and the Speedy Trial Act for all charges that
could have been brought as of the date of this Plea Agreement.

4, Sentencing Guidelines

The parties agree, based on the following calculations, that Defendant’s total “offense
level” under the Guidelines is 9:

a) Defendant’s base offense level is 7, because the defendant was convicted of an
offense with a statutory maximum of 20 years or more (USSG § 2B1.1(a)(2)):

b) Defendant’s offense level is increased by 4, because Defendant the Defendant
offense caused a loss amount exceeding $15,000 (USSG § 2B1.1(b)(1)(C)); and

c) Defendant’s offense level is decreased by 2, because Defendant has accepted
responsibility for Defendant’s crimes (USSG § 3E1.1).

Defendant understands that the Court is not required to follow this calculation. Defendant
also understands that the government will object to any reduction in her sentence based on
acceptance of responsibility, and may be released from the parties’ agreed-upon disposition in
Paragraph 5 if: (a) at sentencing, Defendant (herself or through counsel) indicates that she does
not fully accept responsibility for having engaged in the conduct underlying each of the elements
of the crime(s) to which she is pleading guilty; or (b) by the time of sentencing, Defendant has
committed a new federal or state offense, or has in any way obstructed justice.

Nothing in this Plea Agreement affects the U.S. Attomey’s obligation to provide the Court
and the U.S. Probation Office with accurate and complete information regarding this case.

5. Agreed Disposition

The parties agree on the following sentence:
a) incarceration for 0 months;
b) 36 months of probation;

c) amandatory special assessment of $200, which Defendant must pay to the Clerk
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of the Court by the date of sentencing;
d) restitution of $29,646; and

e) forfeiture as set forth in Paragraph 7.

6. Waiver of Appellate Rights and Challenges to Conviction or Sentence

Defendant has the right to challenge her conviction and sentence on “direct appeal.” This
means that Defendant has the right to ask a higher court (the “appeals court”) to look at what
happened in this case and, if the appeals court finds that the trial court or the parties made certain
mistakes, overturn Defendant’s conviction or sentence. Also, in some instances, Defendant has
the right to file a separate civil lawsuit claiming that serious mistakes were made in this case and
that her conviction or sentence should be overturned.

Defendant understands that she has these rights, but now agrees to give them up.
Specifically, Defendant agrees that:

a) She will not challenge her conviction on direct appeal or in any other
proceeding, including in a separate civil lawsuit, and

b) She will not challenge her sentence, including any court orders related to
forfeiture, restitution, fines or supervised release, on direct appeal or in any
other proceeding, including in a separate civil lawsuit.

The U.S. Attorney agrees not to appeal the imposition of the sentence agreed to by the
parties in paragraph 5.

Defendant understands that, by agreeing to the above, she is agreeing that her conviction
and sentence will be final when the Court issues a written judgment after the sentencing hearing
in this case. That is, after the Court issues a written judgment, Defendant will lose the right to
appeal or otherwise challenge her conviction and sentence regardless of whether she later changes
her mind or finds new information that would have led her not to agree to give up these rights in

the first place.

Defendant acknowledges that she is agreeing to give up these rights in exchange for
concessions the U.S. Attorney is making in this Agreement.

The parties agree that, despite giving up these rights, Defendant keeps the right to later
claim that her lawyer rendered ineffective assistance of counsel, or that the prosecutor or a member
of law enforcement involved in the case engaged in intentional misconduct serious enough to
entitle Defendant to have her conviction or sentence overturned.
Case 1:21-cr-10269-RGS Document3 _ Filed 09/13/21 Page4of8

7. Forfeiture

Defendant understands that the Court will, upon acceptance of Defendant’s guilty plea,
enter an order of forfeiture as part of Defendant’s sentence, and that the order of forfeiture may
include assets directly traceable to Defendant’s offense, assets used to facilitate Defendant’s
offense, substitute assets and/or a money judgment equal to the value of the property derived from,
or otherwise involved in, the offense.

The assets to be forfeited specifically include, without limitation, the following:
a. $29,646 in United States currency, to be entered in the form of an Order of

Forfeiture (Money Judgment).

Defendant admits that $29,646 is subject to forfeiture on the grounds that it is equal to the
amount of proceeds the defendant derived from the offense.

Defendant acknowledges and agrees that the amount of the forfeiture money judgment
represents proceeds the Defendant obtained (directly or indirectly), and/or facilitating property
and/or property involved in, the crimes to which Defendant is pleading guilty and that, due at least
in part to the acts or omissions of Defendant, the proceeds or property have been transferred to, or
deposited with, a third party, spent, cannot be located upon exercise of due diligence, placed
beyond the jurisdiction of the Court, substantially diminished in value, or commingled with other
property which cannot be divided without difficulty. Accordingly, Defendant agrees that the
United States is entitled to forfeit as “substitute assets” any other assets of Defendant up to the
value of the now missing directly forfeitable assets.

Defendant agrees to consent to the entry of an order of forfeiture for such property and
waives the requirements of Federal Rules of Criminal Procedure 11(b)(1)(J), 32.2, and 43(a)
regarding notice of the forfeiture in the charging instrument, advice regarding the forfeiture at the
change-of-plea hearing, announcement of the forfeiture at sentencing, and incorporation of the
forfeiture in the judgment. Defendant understands and agrees that forfeiture shall not satisfy or
affect any fine, lien, penalty, restitution, cost of imprisonment, tax liability or any other debt owed
to the United States.

If the U.S. Attorney requests, Defendant shall deliver to the U.S. Attorney within 30 days
after signing this Plea Agreement a sworn financial statement disclosing all assets in which
Defendant currently has any interest and all assets over which Defendant has exercised control, or
has had any legal or beneficial interest. Defendant further agrees to be deposed with respect to
Defendant’s assets at the request of the U.S. Attorney. Defendant agrees that the United States
Department of Probation may share any financial information about the Defendant with the United
States Attorney’s Office.

Defendant also agrees to waive all constitutional, legal, and equitable challenges (including
direct appeal, habeas corpus, or any other means) to any forfeiture carried out in accordance with
this Plea Agreement.
Case 1:21-cr-10269-RGS Document3 Filed 09/13/21 Page5of8

Defendant hereby waives and releases any claims Defendant may have to any vehicles,
currency, or other personal property seized by the United States, or seized by any state or local law
enforcement agency and turned over to the United States, during the investigation and prosecution
of this case, and consents to the forfeiture of all such assets.

8. Civil Liability
This Plea Agreement does not affect any civil liability, including any tax liability,
Defendant has incurred or may later incur due to her criminal conduct and guilty plea to the charges

specified in Paragraph 1 of this Agreement.

9. Breach of Plea Agreement

Defendant understands that if she breaches any provision of this Agreement, violates any
condition of Defendant’s pre-trial release or commits any crime following Defendant’s execution
of this Plea Agreement, Defendant cannot rely upon such conduct to withdraw her guilty plea.
Defendant’s conduct, however, would give the U.S. Attorney the right to be released from her
commitments under this Agreement, to pursue any charges that were, or are to be, dismissed under
this Agreement, and to use against Defendant any of Defendant’s statements, and any information
or materials she provided to the government during investigation or prosecution of her case—even
if the parties had entered any earlier written or oral agreements or understandings about this issue.

Defendant also understands that if she breaches any provision of this Agreement or engages
in any of the aforementioned conduct, she thereby waives any defenses based on the statute of
limitations, constitutional protections against pre-indictment delay, and the Speedy Trial Act, that
Defendant otherwise may have had to any charges based on conduct occurring before the date of
this Agreement.

10. Whois Bound by Plea Agreement

This Agreement is only between Defendant and the U.S. Attorney for the District of
Massachusetts. It does not bind the Attorney General of the United States or any other federal,
state, or local prosecuting authorities.

11. Modifications to Plea Agreement

This Agreement can be modified or supplemented only in a written memorandum signed
by both parties, or through proceedings in open court.

* * 2

If this letter accurately reflects the agreement between the U.S. Attorney and Defendant,
please have Defendant sign the Acknowledgment of Plea Agreement below. Please also sign
below as Witness. Return the original of this letter to Assistant U.S. Attomey Elysa Q. Wan.

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Case 1:21-cr-10269-RGS Document3 _ Filed 09/13/21 Page6éof8

Sincerely,

NATHANIEL R. MENDELL

Acting United States Attorney
By: Vib, L AMAL —

KELLY B. LAWRENCE
Chief, Health Care Fraud Unit

ELYSA Q wid

Peet U.S. Attorney

ALYSSA TOCHKA

LUKE GOLDWORM

Special Assistant United States Attorneys
Case 1:21-cr-10269-RGS Document3 _ Filed 09/13/21 Page7of8&

ACKNOWLEDGMENT OF PLEA AGREEMENT

I have had this letter read to me in my native language and discussed it with my attomey.
The letter accurately presents my agreement with the United States Attorney’s Office for the
District of Massachusetts. There are no unwritten agreements between me and the United States
Attorney’s Office, and no United States government official has made any unwritten promises or
representations to me in connection with my guilty plea. I have received no prior offers to resolve
this case.

I understand the crimes I am pleading guilty to, and the maximum penalties for those
crimes. I have discussed the Sentencing Guidelines with my lawyer and I understand the
sentencing ranges that may apply.

I am satisfied with the legal representation my lawyer has given me and we have had
enough time to meet and discuss my case. We have discussed the charge(s) against me, possible
defenses I might have, the terms of this Agreement and whether I should go to trial.

I am entering into this Agreement freely and voluntarily and because I am in fact guilty of
the offenses. I believe this Agreement is in my best interest.

Clee

Chynna Gavath
Defendant

owe 7 /¥/20.2|

I certify that Chynna Savath has had this Plea Agreement read to her in Defendant’s native
language and that we have discussed what it means. I believe Chynna Savath understands the
Agreement and is entering into it freely, voluntarily, and knowingly. I also certify that the U.S.

Attorney has not extended any other offers regarding a change J plea in this case.
LA

Daniel Cloherty
Attorney for Defendant

Date: 77h of: 20a!

Case 1:21-cr-10269-RGS Document3 _ Filed 09/13/21 Page 8of8

STATEMENT OF FACTS

Since in or around 2017, Chynna SAVATH owned the Thai Body Work Spa, a massage
parlor in Franklin, MA. SAVATH employed up to four employees and, at times, SAVATH
herself also worked at the Thai Body Works Spa. With SAVATH’s knowledge and consent,
employees of the Thai Body Work Spa provided sexual services for a fee to many customers.
The sexual services ranged from a hand job to penetrative sex. Customers paid $80 for a one-
hour massage session, and SAVATH received $45 for each one-hour session. SAVATH’s
employees kept the remaining $35 and any tips.

On July 1, 2020, Thai Body Work Spa applied to the Small Business Administration for
an Economic Injury Disaster Loan (“EIDL”). In the application, SAVATH certified that the
“Applicant is not engaged in any illegal activity (as defined by Federal Guidelines).” The
Federal Guidelines define “illegal activity” as any “illegal activity under federal, state, or local
law.” 13 CFR § 120.110 (h). This statement was false because Thai Body Work Spa was
violating several state laws related to prostitution. The Small Business Administration approved
Thai Body Work Spa’s loan application, relying on SAVATH’s false statements, and paid Thai
Body Work Spa $24,900 on July 27, 2020.

Also on July 1, 2020, Thai Body Work Spa submitted a Paycheck Protection Program
(“PPP”) application. Again, in that application, SAVATH falsely stated that, “The Applicant is
not engaged in any activity that is illegal under federal, state, or local law.” Thai Body Work
Spa received $4,746 in fund from the PPP program on July 2, 2020.

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