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SENTENCING MEMORANDUM by Martin Kao — PPP Attempt Conspiracy Legal Filings (Dkt. 144)

No. 1:21-cr-00061-LEK · Doc. 144 · Docket on CourtListener

Summary

Defendant Martin Kao's sentencing memorandum in support of a reasonable sentence in United States v. Martin Kao, No. 1:21-cr-00061-LEK, in the U.S. District Court for the District of Hawaii, filed February 7, 2025 (Doc. 144). It asks for a sentence sufficient but not greater than necessary and addresses four issues: prison being harder for a first-time offender, age and risk of recidivism, post-offense rehabilitation and sentencing disparity. The memorandum states that Kao is 51 years old with no criminal history and lists his volunteer work, jobs and education since the offense. Citing IRS figures on COVID fraud cases with an average sentence of 34 months, it argues for a sentence below the recommended 87 months. It is signed by counsel Victor J. Bakke.

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Case 1:21-cr-00061-LEK      Document 144        Filed 02/07/25   Page 1 of 10 PageID.1150



             WARNING: THIS DOCUMENT IS FILED UNDER SEAL
               PURSUANT TO CRIMINAL LOCAL RULE 32.2

  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 LEK
                                            )
              Plaintiff,                          DEFENDANT’S SENTENCING
                                            )
                                                  MEMORANDUM IN SUPPORT
                                            )
       vs.                                        OF A REASONABLE
                                            )
                                                  SENTENCE; EXHIBITS “A” –
                                            )
 MARTIN KAO,                                      “B”; CERTIFICATE OF
                                            )
                                                  SERVICE
                                            )
              Defendant.                    )
                                            )
                                            )
                                            )
               DEFENDANT’S SENTENCING MEMORANDUM
               IN SUPPORT OF A REASONABLE SENTENCE

       COMES NOW, Defendant MARTIN KAO (“Defendant or Mr. Kao”), by

 and through his undersigned counsel, hereby asks this Court to impose a

 reasonable sentence that is sufficient, but not greater than necessary, to satisfy the

 legal standards set forth in 18 U.S.C. Sec. 3353(a).
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       In addition, this memo specifically addresses the following issues: (1) That

 prison is harder for a first-time offender, (2) The impact of a Defendants age and

 risk of recidivism, (3) Post-offense rehabilitation and (4) Sentencing disparity.

       1.     A Reasonable Sentence Should Compensate For The Fact That
              Prison Is harder For A First Offender.

       It has been held that a variance may be appropriate for a first-time offender

    because prison has greater significance for those imprisoned for the first time.

    See U.S. v. Baker, 445 F.3d 987 (7th Cir. 2006) (affirming non-guideline

    sentence of 78 months from 108 months for defendant convicted of distributing

    child porn, justified in part by judge’s finding that prison would mean more to

    this defendant than one who has been imprisoned before, which resonated with

    goal of “just punishment” in § 3553(a)(2)(A) and “adequate deterrence” in

    Section 3553(a)(2)(B); see also U.S. v. Jewell, 2009 WL 1010877 (E.D.Ark.

    April 15, 2009) (defendant sentenced to 30 months in prison for aiding and

    abetting tax evasion, because guideline range near the statutory maximum of 5

    years was inappropriate for first time offender); U.S. v. Cull, 446 F. Supp. 2d

    961 (E.D. Wis. 2006) (non-guideline sentence of 2 months in jail and 4 months

    home confinement, where advisory range was 10-14 months for a marijuana

    offense by defendant who had never been confined, was sufficient to impress on

    him the seriousness of his crime and deter him from re-offending); U.S. v.

    Qualls, 373 F. Supp. 2d 873, 877 (E.D. Wis. 2005) (generally, a lesser prison
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    term is sufficient to deter one who has not been subject to prior lengthy

    incarceration).

       Accordingly, this court should consider a variance for Mr. Kao based upon

    the fact that he is 51 years old and has never been incarcerated and that an

    extended period of imprisonment will have a disproportionate effect on him

    compared to other defendants’ that fall under the same guideline range.

       2.     Defendants’ Age/ Recidivism

       A reasonable sentence should take into consideration that Mr. Kao is 51

 years old and poses little to no risk of recidivism.

       (Departure warranted because guidelines fail to consider the length of time

 defendant refrains from commission of first crime, here until age 49.) U.S. v.

 Ward, 84 F, Supp 23 (E.D. Va. 1993); U.S. v. Bariek, 2005 WL 2334682 (E.D.Va.,

 Sept. 23 2005) (unpub.) (where defendant convicted of operating unlicensed

 money business (sending funds to Afghanistan), guideline range of 37-46 months

 greater than necessary and sentence of 18 months imposed in part because "this is

 the defendant's first criminal offense. The defendant arrived in the United States in

 1989 and later sought and obtained his United States citizenship. Since his arrival,

 he has maintained stable employment, has supported his family, and has become a

 well-respected member of the Afghan community. Further, there is no indication

 that the defendant poses a risk of recidivism. For each of these reasons, the Court

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 finds no compelling rehabilitation need as would be served by a lengthy term of

 incarceration. "); U.S. v. Lucania, 379 F.Supp.2d 288, 297 (E.D.N.Y. 200S) ("Post-

 Booker courts have noted that recidivism is markedly lower for older

 defendants."). U.S. v. CarmonaRodriguez, 200S WL 840464, *4 (S.D.N.Y. April

 11, 200S) (unpub.) ( where an older woman pled guilty to distribution of drugs

 sentence of 30 months (below guideline range) proper in part "in view of the low

 probability that Carmona Rodriguez will recidivate." Defendants "over the age of

 forty... exhibit markedly lower rates of recidivism in comparison to younger

 defendants See Measuring Recidivism: The Criminal History -Computation of The

 Federal Sentencing Guidelines, at 12, 28 (2004) www.ussc .gov publication /

 Recidivism Center ("Recidivism rates decline relatively consistently as age

 increases”).

       The defense submits that, under the unique circumstance of this case, that a

 lengthy term of imprisonment would be strictly punitive and that it should be

 shorter than say, for example, a drug Defendant or a sex offender who need to

 complete worthy rehabilitation programs within the confines of the prison.

       In contrast, Mr. Kao is 51 years old with no criminal history and was

 involved in a situation that will never occur again. He is well educated, has an

 exemplary work history, He has strong family support and extended caregiver




                                           4
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 responsibilities, and he has engaged in extensive post offense rehabilitation over

 the past 4 years.

       Accordingly, the empirical data, combined with Mr. Kao’s individual

 situation, weighs heavily against a lengthy term of incarceration.

       3.     Post Offense Rehabilitation

       A variance in this case is warranted in light of Mr. Kao’s extraordinary post

 offense rehabilitation.

       United States v. Griffiths, 954 F. Supp. 738 (D. Vt. 1997). Post-offense

 rehabilitative efforts – significant work and educational achievements –after arrest

 for LSD offense warranted downward departure. United States v. Whitaker, 152

 F.3d 1238 (10th Cir. 1998). Extraordinary or exemplary post-offense drug

 rehabilitation may be a ground for downward departure. United States v. Brock,

 108 F.3d 31 (4th Cir. 1997). Reversing pre-Koon circuit precedent, the Fourth

 Circuit held that post-offense rehabilitation may be a ground for a downward

 departure. United States v. Jaroszenko, 92 F.3d 486 (7th Cir. 1996). Case

 remanded because court incorrectly believed that it could not depart on post-

 offense extraordinary remorse. United States v. Maier, 975 F.2d 944, 946-49 (2d

 Cir. 1992). Affirmed downward departure based on defendant’s post-offense drug

 rehabilitation.




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       It is undisputed that, after being arrested, different offenders make different

 choices and have different experiences, and those differences can suggest

 appropriately different treatment by judges, correctional officials, probation and

 parole supervisors, and other decision makers in the criminal justice system.

       The relevance of post-offense conduct to punishment has been endorsed in

 practice in court opinions, statutes, and sentencing guidelines across the

 jurisdictions. In Pepper v. United States, 562 U.S. 476 (2011), the Court made it

 clear that sentencing courts may consider a very wide range of information about

 the offender, more than just the particular acts by which the offense was

 committed, including the offender’s life, characteristics, and propensities.

       Additionally, the United States Federal Sentencing Guidelines expressly

 recognize the possibility of reduction in punishment due to positive post-offense

 conduct, like the acceptance of responsibility for the offense, the disclosure of an

 offense that would have otherwise remained undiscovered, cooperation with the

 government in the prosecution of others and post-offense rehabilitative efforts.

        The United Nations and other international bodies also emphasize that the

 primary aim of imprisonment should be the reformation and social rehabilitation of

 offenders, to prepare them for reintegration into society upon release.

       Hawaii has adopted this ideology as well. In 2022, the Hawaii Department

 of Public Safety was reestablished as the Department of Corrections and

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 Rehabilitation under a bill signed into law by Gov. David Ige. The department’s

 vision now centers around transforming the state’s correctional system, which has

 been historically perceived as a punitive model, to a focus on rehabilitation and

 restoration, and reducing recidivism.

       In the present case, Mr. Kao’s post offense rehabilitation is truly

 exceptional. The following is a list of some of his efforts and accomplishments:

       1.     Church and Weekly Bible Study
       2.     Applied - The American Red Cross - REJECTED (Background
              search)
       3.     Volunteer - Hawaii Meals on Wheels
       4.     Volunteer - University Ave. Baptist Church
       5.     Katsumidori Japanese Izakaya - Dishwasher
       6.     The Cheesecake Factory - Line Cook, Dishwasher, Maintenance
       7.     NAMI - National Association for Mental Illness
       8.     Kapiolani Community College: Culinary Institute of the Pacific (Open
              - In Progress)
       9.     Harvard University, Graduate Continuing Education - MBM,
              Masters of Business Management (Open - In Progress)
       10.    Volunteer - Miranda Ministries, Cook
       11.    Cooperation and assistance with the Department of Justice and FBI -
              Main Justice and Washington DC, ongoing investigations.
       12.    Enrolled and participated in Hawaii Department of Human Services -
              First To Work Program
       13.    Applied to 6 Civil Service Job Opportunities with the State of Hawaii

              a.    INMATE GRIEVANCE SPECIALIST - DEPARTMENT OF
                    CORRECTIONS AND REHABILITATION - DOWNTOWN,
                    OAHU (Waiting for Response)
              b.    AUDITOR V - DEPARTMENT OF TAXATION - OAHU
                    (REJECTED)
              c.    PARKS DISTRICT SUPERINTENDENT II - MANOA TO
                    KAHALA, OAHU (Waiting for Response)
              d.    BUSINESS MANAGER V - OAHU (Waiting for Response)

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Case 1:21-cr-00061-LEK     Document 144     Filed 02/07/25   Page 8 of 10 PageID.1157



              e.    COOK III - SHIFT WORK - OAHU CORRECTIONAL
                    FACILITIES (REJECTED)
              f.    BUSINESS REGISTRATION ASSISTANT - OAHU (Waiting
                    for Response)

       Mr. Kao’s extraordinary post offense actions clearly demonstrate a

 significant and genuine effort to address the root causes of his behavior and his

 offenses. They also represent a commitment to personal growth and accountability

 which should not be ignored in determining a reasonable sentence in this case.

       Mr. Kao’s post offense journey from the kitchen to the campus also serves

 as a positive example to a broad range of Defendants that personal reflection and

 hard work are valued and can make a difference in their sentence and in their life.

       Accordingly, a lengthy term of imprisonment of 87 months would do

 nothing to assist with Mr. Kao’s rehabilitation and instead, it could have the

 unintended side-effect of discouraging others to better themselves.




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Case 1:21-cr-00061-LEK    Document 144     Filed 02/07/25   Page 9 of 10 PageID.1158




       4.    Sentencing Disparity

       According to the IRS website:

       March 28, 2024

       Washington - Four years after the enactment of a key pandemic-era law, the
       Internal Revenue Service released updated numbers showing Criminal
       Investigation (CI) has investigated 1,644 tax and money laundering cases
       related to COVID fraud potentially totaling $8.9 billion, with well over half
       that amount coming from cases opened in the last year.

       These cases include a wide range of criminal activity, including
       fraudulently obtained loans, credits and payments meant for American
       workers, families and small businesses under the Coronavirus Aid,
       Relief and Economic Security (CARES) Act.

       As of Feb. 29, 795 people have been indicted for their alleged
       COVID-related crimes and 373 individuals have been sentenced to an
       average of 34 months in federal prison. During the last four years, CI
       has obtained a 98.5% conviction rate in prosecuted COVID fraud
       cases.
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Case 1:21-cr-00061-LEK   Document 144     Filed 02/07/25   Page 10 of 10 PageID.1159



       Upon review, many of the prosecuted cases involved Defendants who

 applied for loans to subsidize non-existent companies and then used the money to

 enrich themselves by purchasing extravagant luxury items.

       In contrast, Mr. Kao did not need the money to achieve or maintain a

 wealthy lifestyle. Mr. Kao had a successful company, and the funding was for the

 primary purpose of protecting his business during the uncertainty of the COVID

 pandemic. Ironically, unlike the majority of other cases, Mr. Kao’s abuse of the

 loan program actually resulted in the destruction of Mr. Kao’s finances and his

 career.

       Consequently, a sentence below the recommended sentence of 87 months is

 warranted when compared to the average sentence of 34 months in other cases.

       DATED: Honolulu, Hawaii, February 7, 2025.

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




                                         10


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