Plea Agreement — No. 1:22-cr-00413 (Dkt. 30, D. Md.)

Summary

A plea agreement letter dated October 27, 2022 from the U.S. Attorney's Office for the District of Maryland to counsel Katherine Newberger, filed February 15, 2023 as Document 30 in United States v. Amar Shabazz, No. 1:22-cr-00413. Shabazz agrees to plead guilty to Count One of the Information, entry of goods by means of false statements under 18 U.S.C. § 542, with a maximum of 2 years in prison and a $250,000 fine. The elements state that Shabazz caused fraudulent Covid-19 vaccine cards to be imported into the United States by means of a false declaration. The parties agree to a base offense level of 8 under U.S.S.G. § 2T3.1 and a 2 level increase under U.S.S.G. § 3C1.1.

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Case 1:22-cr-00413-LKG Document 30 Filed 02/15/23 Page 1 of 10

U.S. Department of Justice

United States Attorney
District of Maryland
Northern Division

Aaron S.J. Zelinsky Mailing Address: Office Location: DIRECT: 410-209-4928
Assistant United States Attorney 36 S. Charles Street, 4th Floor 36 S. Charles Street, 4th Floor MAIN: 410-209-4800
Aaron. Zelinsky@usdoj. gov Baltimore, MD 21201 Baltimore, MD 21201

October 27, 2022

Katherine Newberger, Esq.
100 South Charles St.,
Suite 900

Baltimore, MD 21201

Re: United States v. Amar Shabazz

Dear Counsel:

This letter, together with the Sealed Supplement, confirms the plea agreement (this
“Agreement”) that has been offered to your client, Amar Shabazz (hereinafter “Defendant”), by
the United States Attorney’s Office for the District of Maryland (“this Office”). If the Defendant
accepts this offer, please have the Defendant execute it in the spaces provided below. If this offer
has not been accepted by November 14, 2022, it will be deemed withdrawn. The terms of the
Agreement are as follows:

Offense of Conviction

l. The Defendant agrees to plead guilty to Count One of the Information, which
charges the Defendant with Entry of Good by Means of False Statements, in violation of 18 U.S.C.
§ 542. The Defendant admits that the Defendant is, in fact, guilty of the offense and will so advise
the Court.

Elements of the Offense
as The elements of the offense to which the Defendant has agreed to plead guilty, and
which this Office would prove if the case went to trial, are as follows: That on or about the time

alleged in the Indictment, in the District of Maryland the defendant

a. Caused the fraudulent Covid-19 vaccine cards to be imported into the United States;
and

b. attempted to introduce fraudulent Covid-19 vaccine cards into the commerce of
the United States; and

c. did so by means of a false and fraudulent declaration which he knew was false

Rev. August 2018

Case 1:22-cr-00413-LKG Document 30 Filed 02/15/23 Page 2 of 10

Penalties
ey The maximum penalties provided by statute for the offense to which the Defendant
is pleading guilty are as follows:
Count Statute Minimum Maximum Supervised Maximum Special
Prison Prison Release Fine Assessment
| aoe N/A 2 years lyear | $250,000} $100
a. Prison: If the Court orders a term of imprisonment, the Bureau of Prisons

has sole discretion to designate the institution at which it will be served.

b. Supervised Release: If the Court orders a term of supervised release, and
the Defendant violates the conditions of supervised release, the Court may order the Defendant
returned to custody to serve a term of imprisonment as permitted by statute, followed by an
additional term of supervised release.

C. Restitution: The Court may order the Defendant to pay restitution pursuant
to 18 U.S.C. §§ 3663, 3663A, and 3664.

d. Payment: Ifa fine or restitution is imposed, it shall be payable immediately,
unless the Court orders otherwise under 18 U.S.C. § 3572(d). The Defendant may be required to
pay interest if the fine is not paid when due.

©; Forfeiture: The Court may enter an order of forfeiture of assets directly
traceable to the offense, substitute assets, and/or a money judgment equal to the value of the
property subject to forfeiture.

id Collection of Debts: If the Court imposes a fine or restitution, this Office’s
Financial Litigation Unit will be responsible for collecting the debt. If the Court establishes a
schedule of payments, the Defendant agrees that: (1) the full amount of the fine or restitution is
nonetheless due and owing immediately; (2) the schedule of payments is merely a minimum
schedule of payments and not the only method, nor a limitation on the methods, available to the
United States to enforce the judgment; and (3) the United States may fully employ all powers to
collect on the total amount of the debt as provided by law. Until the debt is paid, the Defendant
agrees to disclose all assets in which the Defendant has any interest or over which the Defendant
exercises direct or indirect control. Until the money judgment is satisfied, the Defendant
authorizes this Office to obtain a credit report in order to evaluate the Defendant’s ability to pay,
and to request and review the Defendant’s federal and state income tax returns. The Defendant
agrees to complete and sign a copy of IRS Form 8821 (relating to the voluntary disclosure of
federal tax return information) and a financial statement in a form provided by this Office.

Rev. August 2018

Case 1:22-cr-00413-LKG Document 30 Filed 02/15/23 Page 3 of 10

Waiver of Rights

4, The Defendant understands that by entering into this Agreement, the Defendant
surrenders certain rights as outlined below:

a. If the Defendant had pled not guilty and persisted in that plea, the Defendant
would have had the right to a speedy jury trial with the close assistance of competent counsel.
That trial could be conducted by a judge, without a jury, if the Defendant, this Office, and the
Court all agreed.

b. If the Defendant elected a jury trial, the jury would be composed of twelve
individuals selected from the community. Counsel and the Defendant would have the opportunity
to challenge prospective jurors who demonstrated bias or who were otherwise unqualified, and
would have the opportunity to strike a certain number of jurors peremptorily. All twelve jurors
would have to agree unanimously before the Defendant could be found guilty of any count. The
jury would be instructed that the Defendant was presumed to be innocent, and that presumption
could be overcome only by proof beyond a reasonable doubt.

G If the Defendant went to trial, the Government would have the burden of
proving the Defendant guilty beyond a reasonable doubt. The Defendant would have the right to
confront and cross-examine the Government’s witnesses. The Defendant would not have to
present any defense witnesses or evidence whatsoever. If the Defendant wanted to call witnesses
in defense, however, the Defendant would have the subpoena power of the Court to compel the
witnesses to attend.

d. The Defendant would have the right to testify in the Defendant’s own
defense if the Defendant so chose, and the Defendant would have the right to refuse to testify. If
the Defendant chose not to testify, the Court could instruct the jury that they could not draw any
adverse inference from the Defendant’s decision not to testify.

y If the Defendant were found guilty after a trial, the Defendant would have
the right to appeal the verdict and the Court’s pretrial and trial decisions on the admissibility of
evidence to see if any errors were committed which would require a new trial or dismissal of the
charges. By pleading guilty, the Defendant knowingly gives up the right to appeal the verdict and
the Court’s decisions.

f. By pleading guilty, the Defendant will be giving up all of these rights,
except the right, under the limited circumstances set forth in the “Waiver of Appeal” paragraph
below, to appeal the sentence. By pleading guilty, the Defendant understands that the Defendant
may have to answer the Court’s questions both about the rights being given up and about the facts
of the case. Any statements that the Defendant makes during such a hearing would not be
admissible against the Defendant during a trial except in a criminal proceeding for perjury or false
statement.

g. If the Court accepts the Defendant’s plea of guilty, the Defendant will be
giving up the right to file and have the Court rule on pretrial motions, and there will be no further

Rev. August 2018

Case 1:22-cr-00413-LKG Document 30 Filed 02/15/23 Page 4 of 10

trial or proceeding of any kind in the above-referenced criminal case, and the Court will find the
Defendant guilty.

h. By pleading guilty, the Defendant will also be giving up certain valuable
civil rights and may be subject to deportation or other loss of immigration status, including possible
denaturalization. The Defendant recognizes that if the Defendant is not a citizen of the United
States, or is a naturalized citizen, pleading guilty may have consequences with respect to the
Defendant’s immigration status. Under federal law, conviction for a broad range of crimes can
lead to adverse immigration consequences, including automatic removal from the United States.
Removal and other immigration consequences are the subject of a separate proceeding, however,
and the Defendant understands that no one, including the Defendant’s attorney or the Court, can
predict with certainty the effect of a conviction on immigration status. The Defendant is not
relying on any promise or belief about the immigration consequences of pleading guilty. The
Defendant nevertheless affirms that the Defendant wants to plead guilty regardless of any potential
immigration consequences.

Advisory Sentencing Guidelines Apply

ee The Defendant understands that the Court will determine a sentencing guidelines
range for this case (henceforth the “advisory guidelines range”) pursuant to the Sentencing Reform
Act of 1984 at 18 U.S.C. § 3551-3742 (excepting 18 U.S.C. § 3553(b)(1) and 3742(e)) and 28
U.S.C. §§ 991 through 998. The Defendant further understands that the Court will impose a
sentence pursuant to the Sentencing Reform Act, as excised, and must take into account the
advisory guidelines range in establishing a reasonable sentence.

Factual and Advisory Guidelines Stipulation

6. This Office and the Defendant stipulate and agree to the Statement of Facts set forth
in Attachment A, which is incorporated by reference herein.

Count One

a. This Office and the Defendant further agree that the applicable base offense
level is 8 (eight) pursuant to United States Sentencing Guidelines (“U.S.S.G.”) § 2T3.1 because
the loss amount under 2T4.1 is greater than $2,500 and less than $6,500.!

b. This Office and the Defendant further agree that there is a 2 (two) level
increase pursuant to U.S.S.G. § 3C1.1 because the defendant willfully attempted to obstruct the
administration of justice with respect to the investigation.

C. This Office does not oppose a 2 (two) level reduction in the Defendant’s
adjusted offense level pursuant to U.S.S.G. § 3E1.1(a), based upon the Defendant’s apparent
prompt recognition and affirmative acceptance of personal responsibility for the Defendant’s
criminal conduct. This Office may oppose any adjustment for acceptance of responsibility under

‘In this case, the parties stipulate that the loss amount is calculated by assessing 25 percent of the items’ fair market
value in the United States. See U.S.S.G. § 2T3.1 Application Note 2.

Rev. August 2018

Case 1:22-cr-00413-LKG Document 30 Filed 02/15/23 Page 5 of 10

U.S.S.G. § 3E1.1(a), if the Defendant: (i) fails to admit each and every item in the factual
stipulation; (ii) denies involvement in the offense; (iii) gives conflicting statements about the
Defendant’s involvement in the offense; (iv) is untruthful with the Court, this Office, or the United
States Probation Office; (v) obstructs or attempts to obstruct justice prior to sentencing; (vi)
engages in any criminal conduct between the date of this Agreement and the date of sentencing;
(vii) attempts to withdraw the plea of guilty; or (viii) violates this Agreement in any way.

d. Thus, the final anticipated adjusted offense level 8.

7. There is no agreement as to the Defendant’s criminal history and the Defendant
understands that the Defendant’s criminal history could alter the Defendant’s offense level.
Specifically, the Defendant understands that the Defendant’s criminal history could alter the final
offense level if the Defendant is determined to be a career offender or if the instant offense was a
part of a pattern of criminal conduct from which the Defendant derived a substantial portion of the
Defendant’s income.

8. Other than as set forth above, no other offense characteristics, sentencing guidelines
factors, potential departures or adjustments set forth in the United States Sentencing Guidelines

are in dispute or will be raised in calculating the advisory guidelines range.

Obligations of the Parties

9. At the time of sentencing, this Office and the Defendant reserve the right to
advocate for a reasonable sentence, period of supervised release, and/or fine considering any
appropriate factors under 18 U.S.C. § 3553(a). This Office and the Defendant reserve the right to
bring to the Court’s attention all information with respect to the Defendant’s background,
character, and conduct that this Office or the Defendant deem relevant to sentencing, including the
conduct that is the subject of any counts of the Information. At the time of sentencing, this Office
will move to dismiss any open counts against the Defendant.

Waiver of Appeal

10. In exchange for the concessions made by this Office and the Defendant in this
Agreement, this Office and the Defendant waive their rights to appeal as follows:

a. The Defendant knowingly waives all right, pursuant to 28 U.S.C. § 1291 or
any other statute or constitutional provision, to appeal the Defendant’s conviction on any ground
whatsoever. This includes a waiver of all right to appeal the Defendant’s conviction on the ground
that the statute(s) to which the Defendant is pleading guilty is unconstitutional, or on the ground
that the admitted conduct does not fall within the scope of the statute(s), to the extent that such
challenges legally can be waived.

b. The Defendant and this Office knowingly and expressly waive all rights
conferred by 18 U.S.C. § 3742 to appeal whatever sentence is imposed (including any term of
imprisonment, fine, term of supervised release, or order of restitution) for any reason (including
the establishment of the advisory sentencing guidelines range, the determination of the
Defendant’s criminal history, the weighing of the sentencing factors, and any constitutional

Rev. August 2018

Case 1:22-cr-00413-LKG Document 30 Filed 02/15/23 Page 6 of 10

challenges to the calculation and imposition of any term of imprisonment, fine, order of forfeiture,
order of restitution, and term or condition of supervised release), except as follows:

re The Defendant reserves the right to appeal any sentence that exceeds
the statutory maximum; and

ii. This Office reserves the right to appeal any sentence below a
statutory minimum.

C. The Defendant waives any and all rights under the Freedom of Information
Act relating to the investigation and prosecution of the above-captioned matter and agrees not to
file any request for documents from this Office or any investigating agency.

Abandonment

11. | The Defendant knowingly and voluntarily waives any right, title, and interest in the
following property: any covid vaccination cards he purchased online (the “Abandoned Property”)
and consents to its federal administrative disposition, official use, and/or destruction.

12. | The Defendant understands that he would have a right to file a claim to the
Abandoned Property and waives his right to claim the Abandoned Property. The Defendant agrees
not to contest the vesting of title of the Abandoned Property in the United States Government and
agrees to unconditionally release and hold harmless the United States Government, its officers,
employees, and agents, from any and all claims, demands, damages, causes of actions, suits, of
whatever kind and description, and wheresoever situated, that might now exist or hereafter exist
by reason of or growing out of or affecting, directly or indirectly, the seizure or waiver of
ownership interest in the Abandoned Property. The Defendant agrees to execute any documents
as necessary to the waiver of right, title and interest in the Abandoned Property, including any
forms necessary to effect the Defendant’s waiver of ownership interest.

Collection of Financial Obligations

13. The Defendant expressly authorizes the U.S. Attorney’s Office to obtain a credit
report in order to evaluate the Defendant’s ability to satisfy any financial obligation imposed by
the Court. If restitution is not paid by the date of sentencing, in order to facilitate the collection
of financial obligations to be imposed in connection with this prosecution, the Defendant agrees
to disclose fully all assets in which the Defendant has any interest or over which the Defendant
exercises control, directly or indirectly, including those held by a spouse, nominee or other third
party. If restitution is not paid by the date of sentencing, the Defendant will promptly submit a
completed financial statement to the United States Attorney’s Office, in a form this Office
prescribes and as it directs. The Defendant promises that any financial statement and disclosures
the Defendant submits will be complete, accurate and truthful, and understands that any willful
falsehood on the financial statement will be a separate crime and may be punished under 18
U.S.C.§ 1001 by an additional five years’ incarceration and fine.

Defendant’s Conduct Prior to Sentencing and Breach

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Case 1:22-cr-00413-LKG Document 30 Filed 02/15/23 Page 7 of 10

14. Between now and the date of the sentencing, the Defendant will not engage in
conduct that constitutes obstruction of justice under U.S.S.G. § 3C1.1; will not violate any federal,
state, or local law; will acknowledge guilt to the probation officer and the Court; will be truthful
in any statement to the Court, this Office, law enforcement agents, and probation officers; will
cooperate in the preparation of the presentence report; and will not move to withdraw from the
plea of guilty or from this Agreement.

15. If the Defendant engages in conduct prior to sentencing that violates the above
paragraph of this Agreement, and the Court finds a violation by a preponderance of the evidence,
then: (i) this Office will be free from its obligations under this Agreement; (ii) this Office may
make sentencing arguments and recommendations different from those set out in this Agreement,
even if the Agreement was reached pursuant to Rule 1 1(c)(1)(C); and (iii) in any criminal or civil
proceeding, this Office will be free to use against the Defendant all statements made by the
Defendant and any of the information or materials provided by the Defendant, including
statements, information, and materials provided pursuant to this Agreement, and statements made
during proceedings before the Court pursuant to Rule 11 of the Federal Rules of Criminal
Procedure. A determination that this Office is released from its obligations under this Agreement
will not permit the Defendant to withdraw the guilty plea. The Defendant acknowledges that the
Defendant may not withdraw the Defendant’s guilty plea—even if made pursuant to Rule
11(c)(1)(C)—if the Court finds that the Defendant breached the Agreement. In that event, neither
the Court nor the Government will be bound by the specific sentence or sentencing range agreed
and stipulated to herein pursuant to Rule 11(c)(1)(C).

Court Not a Party

16. | The Court is not a party to this Agreement. The sentence to be imposed is within
the sole discretion of the Court. The Court is not bound by the Sentencing Guidelines stipulation
in this Agreement. The Court will determine the facts relevant to sentencing. The Court is not
required to accept any recommendation or stipulation of the parties. The Court has the power to
impose a sentence up to the maximum penalty allowed by law. If the Court makes sentencing
findings different from those stipulated in this Agreement, or if the Court imposes any sentence up
to the maximum allowed by statute, the Defendant will remain bound to fulfill all of the obligations
under this Agreement. Neither the prosecutor, defense counsel, nor the Court can make a binding
prediction, promise, or representation as to what guidelines range or sentence the Defendant will
receive. The Defendant agrees that no one has made such a binding prediction or promise.

Entire Agreement

17. This letter, together with the Sealed Supplement, constitutes the complete plea
agreement in this case. This letter, together with the Sealed Supplement, supersedes any prior
understandings, promises, or conditions between this Office and the Defendant. There are no other
agreements, promises, undertakings, or understandings between the Defendant and this Office
other than those set forth in this letter and the Sealed Supplement. No changes to this Agreement
will be effective unless in writing, signed by all parties and approved by the Court.

If the Defendant fully accepts each and every term and condition of this Agreement, please
sign and have the Defendant sign the original and return it to me promptly.

Rev. August 2018

Case 1:22-cr-00413-LKG Document 30 Filed 02/15/23 Page 8 of 10

Very truly yours,

Erek L. Barron
United States Attorney

Digitally signed by AARON ZELINSKY
Date: 2022.10.27 11:48:02 -04'00'

Aaron S.J. Zelinsky
Sean R. Delaney
Assistant United States Attorney

I have read this Agreement, including the Sealed Supplement, and carefully reviewed every
part of it with my attorney. I understand it and I voluntarily agree to it. Specifically, I have
reviewed the Factual and Advisory Guidelines Stipulation with my attorney and I do not wish to
change any part of it. | am completely satisfied with the representation of my attorney.

\} /eX/aa Wa Mow

Date Amar Shabazz

I am the Defendant’s attorney. I have carefully reviewed every part of this Agreement,
including the Sealed Supplement with the Defendant. The Defendant advises me that the
Defendant understands and accepts its terms. To my knowledge, the Defendant’s decision to enter
into this Agreement is an informed and voluntary one.

Date Katherine Newberger, Esq

Rev. August 2018

Case 1:22-cr-00413-LKG Document 30 Filed 02/15/23 Page 9 of 10

ATTACHMENT A

STIPULATION OF FACTS

The undersigned parties stipulate and agree that if this case had proceeded to trial, this
Office would have proven the following facts beyond a reasonable doubt. The undersigned parties
also stipulate and agree that the following facts do not encompass all of the evidence that would
have been presented had this matter proceeded to trial.

Defendant Amar Shabazz, 24, is a resident of Owings Mills, Maryland.

From June 2021 to December 2021, Shabazz purchased over 600 fraudulent COVID
vaccination cards through a foreign online marketplace and caused the cards to be unlawfully
imported into the United States, using Customs Declaration Forms falsely stating that the packages
contained “paper cards,” “Christmas decorations,” and “stickers.” Shabazz arranged for the fake
cards to be addressed to him via pseudonyms, including “ACE BOOGIE.”

On July 10, 2021, after a shipment of cards was delivered, Shabazz posted a video of
multiple fraudulent vaccination cards to two of his social media accounts with the caption
“Covid19 vaccination card who want one. $75 a pop.”

On August 5, 2021, Shabazz commented under an article about bars and restaurants
requiring guests to show proof of vaccination, allegedly stating “I SELL PROOF OF
VACCINATION CARDS.” Five days later, Shabazz posted, “I’m sold out right now no more vax
cards until next week.” Additionally, Shabazz messaged another individual with the message,
“Made 300 today. I’m sold out. Just bought 500 more cards. 60x500 is $30k. I’m gonna be rich.”

On October 1, 2021, law enforcement executed search warrants at a basement used by
Shabazz. In the basement, law enforcement found a bulleted list titled, “Things I’m doing when I
get out (updated).” In early 2021, Shabazz was an inmate of the Maryland Department of Public
Safety and Correctional Services after being sentenced in in the Circuit Court of Maryland for
possession of child pornography. Shabazz was released in April 2021. The list included obtaining
two “burner” cell phones, with the note, “first burner is for scamming.” Another bullet point stated,
“hire a lawyer and get tips of what not to do when getting money illegally.”

Investigators subsequently interviewed multiple individuals outside Maryland to whom
Shabazz sold fake COVID-19 vaccination cards and recovered the fake cards. Shabazz allegedly
shipped these individuals’ fraudulent vaccination cards through the mail.

Shabazz ordered at least 636 fake Covid-19 cards. Investigators diverted at least 503 such
cards Shabazz ordered. Investigators recovered 86 cards when they searched Shabazz’s home and
car. At least 50 cards were not recovered. Shabazz sold at least five Covid cards with prices
ranging from $50-$75/card, for a total of at least $300.00. The total fair market value of the goods
imported into the United States exceeded $10,000.

The day after investigators executed a search warrant at his residence, Shabazz researched
how to delete his account on the foreign marketplace website and deleted his email account.

Rev. August 2018

Case 1:22-cr-00413-LKG Document 30 Filed 02/15/23 Page 10 of 10

SO STIPULATED:

Rev. August 2018

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Aaron S.J. Zelinsky
Sean R. Delaney
Assistant United States Attorney

Amar Shabazz

Defendant
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