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MEMORANDUM in Opposition by Martin Kao re 132 MOTION United States'… — PPP Attempt Conspiracy Legal Filings (Dkt. 136)

No. 1:21-cr-00061-LEK · Doc. 136 · Docket on CourtListener

Summary

Defendant Martin Kao's memorandum in opposition to the United States' motion for an order authorizing application of his bond deposit to payment of special assessment and restitution (ECF No. 132), in United States of America v. Martin Kao, Cr. No. 21-00061 JAO, in the U.S. District Court for the District of Hawaii, filed August 15, 2024 as Document 136. The memorandum argues that the motion under 28 U.S.C. § 2044 is premature because the defendant has not been sentenced and no assessment, fine, restitution or penalty has been imposed. It also argues that the government seeks the full $2 million without any accounting of his actual obligations and does not identify the source of the money or address possible third-party claims. It cites United States v. Sortini (9th Cir. 2012) and is signed by defense counsel Victor J. Bakke.

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Case 1:21-cr-00061-LEK    Document 136       Filed 08/15/24   Page 1 of 4 PageID.1140



LAW OFFICE OF VICTOR J. BAKKE
VICTOR J. BAKKE               5749
700 Bishop Street, Suite 2100
Honolulu, Hawaii 96813
Telephone: (808) 369-8170
Facsimile: (808) 369-8179
E-Mail: vbakke@bakkelawfirm.com
Attorney for Defendant
MARTIN KAO
                 IN THE UNITED STATES DISTRICT COURT

                         FOR THE DISTRICT OF HAWAII

UNITED STATES OF AMERICA,                )     CR. NO. 21-00061 JAO
                                         )
            Plaintiff,                         MEMORANDUM IN
                                         )
                                               OPPOSITION TO UNITED
                                         )
      vs.                                      STATES’ MOTION FOR ORDER
                                         )
                                               AUTHORIZING APPLICATION
                                         )
MARTIN KAO,                                    OF DEFENDANT’S BOND
                                         )
                                               DEPOSIT TO PAYMENT OF
                                         )
            Defendant.                         SPECIAL ASSESSMENT AND
                                         )
                                               RESTITUTION; DECLARATION
                                         )
                                               OF COUNSEL; CERTIFICATE
                                         )
                                               OF SERVICE
                                         )
                                         )
                                         )


         MEMORANDUM IN OPPOSITION TO UNITED STATES’
         MOTION FOR ORDER AUTHORIZING APPLICATION
         OF DEFENDANT’S BOND DEPOSIT TO PAYMENT OF
             SPECIAL ASSESSMENT AND RESTITUTION

      COMES NOW, Defendant MARTIN KAO (“Defendant”), by and through

his undersigned counsel, and hereby respectfully submits his Memorandum in

Opposition to the United States’ Motion for Order Authorizing Application of
                                         1
Case 1:21-cr-00061-LEK     Document 136       Filed 08/15/24   Page 2 of 4 PageID.1141



Defendant’s Bond Payment of Special Assessment and Restitution (ECF No. 132)

as follows:

I.    DISCUSSION

      28 USC Section 2024 – Withdrawal, states that no money deposited under

section 2041 of this title shall be withdrawn except by order of the Court.

      As of the filing date of the government’s motion, there has been no request

made by the Defendant or anyone else to have the bail released.

      Instead, the Government has filed an anticipatory motion pursuant to 28

U.S.C. § 2044, to block the release of the bail money to the Defendant, or other

parties, on the grounds that once the Defendant has surrendered, that the money

should be held by the Court and applied to the Defendant’s anticipated court

ordered financial obligations.

      Although the Court has authority pursuant to 28 U.S.C. § 2044, to hold and

distribute the bail money, this Court cannot grant the Government’s motion

because the issue is not ripe for adjudication and because the Government has

failed to meet the necessary conditions required by Section 2044.

      28 U.S.C. § 2044 clearly states that “ . . . on motion of the United States

Attorney, the court shall order any money belonging to and deposited by or on

behalf of the defendant with the court for the purposes of a criminal appearance

bail bond (trial or appeal) to be held and paid over to the United States attorney to

                                          2
Case 1:21-cr-00061-LEK      Document 136       Filed 08/15/24   Page 3 of 4 PageID.1142



be applied to the payment of any assessment, fine, restitution, or penalty imposed

upon the defendant.” 28 U.S.C. § 2044 (emphasis added).

      Specifically, the Government’s motion is premature because Section 2044

only allows the hold of the money for specific purposes which do not exist at the

time of filing. Specifically, Defendant has not been sentenced and therefore there

is no Court ordered assessment, fine, restitution, or penalty imposed upon the

defendant that would allow the Court to hold the bail and distribute it to the U.S.

Attorney as requested in the Government’s Motion.

      The Government’s motion is also premature in that it requests that this Court

distribute to the Government the full $2 million dollars without any justification or

accounting as to what the Defendant’s actual obligations are. This Court cannot

sign an order giving the money to the U.S. Attorney and then hope the prosecutor

gives the Defendant a refund later if it turns out that the $2 million dollars

exceeded the Defendant’s actual court ordered obligations.

      The Government has also failed to satisfy the condition of Section 2044 that

requires that the posted money belonged to the Defendant. In its motion, the

Government does not identify the source of the money and does not address the

issue of possible third-party claims to the funds such as marital assets and/or

communal property since Defendant was married at the time the funds were

deposited with the Court.

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Case 1:21-cr-00061-LEK    Document 136       Filed 08/15/24   Page 4 of 4 PageID.1143



      Although not directly on point, this issue was discussed briefly in United

States v. Sortini, 497 Fed. Appx. 738, 739 (9th Cir. 2012) wherein the Court

recognized that there may be situations in which Section 2044 may not apply if the

money was incumbered prior to it being posted with the Court.

II.   CONCLUSION

      For the reasons set forth above, this Court must deny the Defendant’s

request motion because it is premature and/or does not satisfy the requirements of

Section 2044.

      DATED: Honolulu, Hawaii, August 15, 2024.

                                /s/ Victor J. Bakke
                                VICTOR J. BAKKE
                                Attorney for Defendant
                                MARTIN KAO




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