Plea Agreement for Defendant Abdul-Malik McClain — United States v. McClain (Dkt. 50, C.D. Cal.)

Summary

This plea agreement between Abdul-Malik McClain and the United States Attorney's Office for the Central District of California was filed June 4, 2024 as Document 50 in CR No. 21-580-MWF. McClain agrees to plead guilty to count one of the indictment, which charges mail fraud under Title 18, United States Code, Section 1341 and carries a maximum of 20 years imprisonment. The parties believe restitution is at least $283,063 and agree to a base offense level of 7 with a 14-level increase for a loss greater than $550,000. The attached statement of facts says that McClain and others sought more than $1,056,092 in unemployment insurance benefits from the Employment Development Department for the State of California and received approximately $283,063. The agreement ties appeal waivers to sentences of no more than 63 months and no less than 51 months.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 1 of 23 Page ID #:171




 1   E. MARTIN ESTRADA
     United States Attorney
 2   MACKE. JENKINS
     Assistant United States Attorney
 3   Chief, Criminal Division
     KERRY L. QUINN (Cal. Bar No. 302954)
 4   Assistant United States Attorney
     Major Frauds Section
 5        1100 United States Courthouse
          312 North Spring Street
 6        Los Angeles, California 90012
          Telephone: (213) 894-5423
 7        Facsimile: (2J.3) 894-6269
          E-mail:    Kerry.L.Quinn@usdoj.gov
 8
     Attorneys for Plaintiff
 9   UNITED STATES OF AMERICA
10                               UNITED .STATES DISTRICT COURT

11                         FOR THE CENTRAL DISTRICT OF CALIFORNIA

12   UNITED STATES OF AMERICA,                  No. CR 21-580-MWF

13                  Plainti££,                  PLEA AGREEMENT FOR DEFENDANT
                                                ABDUL-MALIK MCCLAIN
14                        v.

15   ABDUL-MALIK MCCLAIN,

16                  Defendant.

17

18           1.     This constitutes the plea agreement between ABDUL-MALIK

19   MCCLAIN P'defendant") and the United States Attorney's Office for the
20   Central District 0£ California (the "USAO") in the above-captioned

21   case.        This agreement is limited to the USAO and cannot bind any

22   other federal, state, local, or foreign prosecuting, enforcement,

23   administrative, or regulatory authorities.

24                                 DEFENDANT'S OBLIGATIONS

25           2.      Defendant agrees to:

26                   a.   At the earliest opportunity requested by the USAO and

27   provided by the Court, appear and plead guilty to count one of the
28   indictment in United States v. ABDUL-MALIK MCCLAIN, CR No. 21-580--

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 2 of 23 Page ID #:172




 1   MWF, which charges defendant with mail fraud in violation of 18

 2   u.s.c. § 1341.
 3               b.   Not contest facts agreed to in this agreement.

 4               c.   Abide by all agreements regarding sentencing contained

 5   in this agreement.

 6               d.   Appear for all court appearances, surrender as ordered

 7   for service of sentence, obey all conditions of any bond, and obey

 8   any other ongoing court order in this matter.

 9               e.   Not commit any crime; however, offenses that would be

10   excluded for sentencing purposes under United States Sentencing

11   Guidelines ("U.S.S.G." or "Sentencing Guidelines") § 4Al.2(c) are not

12   within the scope of this agreement.
13               f.   Be truthful at all times with the United States

14   Probation and Pretrial Services Office and the Court.

15               g.   Pay the applicable special assessment at or before the

16   time of sentencing unless defendant has demonstrated a lack of

17   ability to pay such assessments.
18               h.   Defendant agrees that any and all criminal debt

19   ordered by the Court will be due in full and immediately.           The

20   government is not precluded from pursuing, in excess of any payment

21   schedule set by the Court, any and all available remedies by which to

22   satisfy defendant's payment of the full financial obligation,

23   including referral to the Treasury Offset Program.
24               i.   Complete the Financial Disclosure Statement on a form

25   provided by the USAO and, within 30 days of defendant's entry of a

26   guilty plea, deliver the signed and dated statement, along with all

27   of the documents requested therein, to the USAO by either email at

28   usacac.FinLit@usdoj.gov (preferred) or mail to the USAO Financial

                                           2

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 3 of 23 Page ID #:173




 1   Litigation Section ~t 300 North Los Angeles Street, Suite 7516, Los

 2   Angeles, CA 90012.     Defendant agrees that defendant's ability to pay

 3   criminal debt shall be assessed based on the completed Financial

 4   Disclosure Statement and all required supporting documents, as well

 5   as other relevant information relating to ability to pay.

 6               j .   Authorize the USAO to obtain a credit report upon

 7   returning a signed copy of this plea agreement.
 8               k.    Consent to the USAO inspecting and copying all of

 9   defendant's financial documents and financial information held by the

10   United States Probation and Pretrial Services Office.
11                               THE USAO'S OBLIGATIONS

12         3.    The USAO agrees to:

13               a.    Not contest facts agreed to in this agreement.

14              .b.    .Abide by all agreements regarding sentencing contained

15   in this agreement.
16               c.    At the time of sentencing, move to dismiss the

17   remaining counts of the indictment as against defendant.           Defendant

18   agrees, however, that at the time of sentencing the Court may

19   consider any dismissed charges in determining the applicable

20   Sentencing Guidelines range, the propriety and extent of any

21   departure from that range, and the sentence to be imposed.

22               d.    At the time of sentencing, provided that defendant

23   demonstrates an acceptance of responsibility for the offense up to
24   and including the time of sentencing, recommend a two-level reduction

25   in the applicable Sentencing Guidelines offense level, pursuant to

26   U.S.S.G. § 3El.1, and recommend and, if necessary, move for an

27   additional one-level reduction if available under that section.

28
                                           3

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 4 of 23 Page ID #:174




 1                               NATURE OF THE OFFENSE

 2           4.   Defendant understands that for defendant to be guilty of

 3   the crime charged in count one, that is, mail fraud, in violation!of

 4   Title 18, United States Code, Section 1341, the following must be

 5   true:

 6           First, the defendant knowingly participated in a scheme or plan

 7   to defraud, or a scheme or plan for obtaining money or property by

 8   means of false or fraudulent pretenses, representations, or promises;

 9           Secorrd, the .statements made as part of the scheme were material;

10   that is, they had a natural tendency to influence, or were capable of

11   influencing, a person to part with money or property;

12           Third, the defendant acted with the intent to defraud; that is,

13   the intent to . deceive and cheat; and

14           Fourt~, the defendant..,used, or caused to be used, the mails to

15   carry out·br attempt to carry out an essential part of the scheme.

16                             PENALTIES AND RESTITUTION

17           5.   Defendant understands that the statutory maximum sentence

18   that the Court can impose f0r a violation of Title 18, United States

19   Code, Section 1341, is: 20 years imprisonment; a 3-year period of

20   supervised\ Telease; a fine of $250,000 or twice the gross gain or

21   gross loss,resulting from the offense, whichever is greatest; and a

22   mandatory special assessment of $100.

23           6.   Defendant understands that defendant will be required to

24   pay full restitution to the victim(s) of the offense to which

25   defendant is pleading guilty.       Defendant agrees that, in return for

26   the USAO's compliance with its obligations under this agreement, the

27   Court may order restitution to persons other than the victim(s) of

28   the offense to which defendant is pleading guilty and in amounts

                                           4

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 5 of 23 Page ID #:175




 1   greater than those alleged in the count to which defendant is

 2   pleading guilty.     In particular, defendant agrees that the Court may

 3   order restitution to any victim of any of the followirhg for any

 4   losses suffered by that victim as a result:        (a) any relevant conduct,

 5   as defined in U.S.S.G. § lBl.3, in connection with the offense to

 6   which defendant is pleading guilty; and (b) any counts dismissed

 7   pursuant to this agreement as well as all relevant conduct, as

 8   defined in D.S.S .. G. § lBl.3, in connection with those counts.         The

 9   parties currently ,believe that the applicable amount of restitution

10   is at least,$283,063, but _recognize and agree that this amount could

11   change based on facts that come to the attention of the parties prior

12   to sentencing.

13         7.    Defendant understands that .·supervised release is a period

14   of time fo)4lowing. ,imprisonment dur,ing which defendant will be subject

15   to various 'restrictions and Tequirements.        Defendant understands that

16   if defendant violates one or more of the conditions of any supervised

17   release imposed, defendant may be returned to prison for all or part

18   of the term'. .. of supervised -release authorized by statute for the

19   offense that resulted .in the term 0£ supervised release, which could

20   result in de:fendant serving a total term of imprisonment greater than

21   the statutory maximum stated above.

22         8.    De~endant understands that, ·by pleading guilty, defendant

23   may be giving up valuable government benefits and valuable civic

24   rights, such as the right to vote, the right to possess a firearm,

25   the right to hold office, and the right to serve on a jury.

26   Defendant understands that he is pleading guilty to a felony and that

27   it is a federal crime for a convicted felon to possess a firearm or

28   ammunition . . Defendant understands that the conviction in this case

                                           5

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 1   may also subject defendant to various other collateral consequences,

 2   including but not limited to revocation of probation, parole, or

 3   supervised release in another case, suspension or revocation of a

 4   professional license, and the loss of scholarships or other

 5   educational benefits.      Defendant understands that unanticipated

 6   collateral consequences will not serve as grounds to withdraw

 7   defendant's guilty plea.

 8         9.    Defendant and his counsel have discussed the fact that, and

 9   defendant understands that, if defendant is not a United States

10   citizen,. the conviction in this case makes it practically inevitable

11   and a virtual certainty that defendant will be removed or deported

12   from the United States.      Defendant may also be denied United States

13   citizenship and admission to the United States in the future.

14   De-f,endant .understands .that while there may be arguments that

15   de£endant can raise in immigration proceedings to avoid or delay

16   removal, removal is presumptively mandatory and a virtual certainty

17   in this case.     Defendant further understands that removal and

18   immigration consequences are the subject of a separate proceeding and

19   that.no one, including his attorney or the Court, can predict to an

20   absolute certainty the effect of his conviction on his immigration

21   status.     Defendant nevertheless affirms that he wants to plead guilty

22   regardless of any immigration consequences that his plea may entail,

23   even if the consequence is automatic removal from the United States.

24                                    FACTUAL BASIS

25         10.    Defendant admits that defendant is, in fact, guilty of the

26   offense to which defendant is agreeing to plead guilty.           Defendant

27   and the USAO agree to the statement of facts provided in Exhibit A,

28   which is incorporated herein by reference, and defendant and the USAO

                                           6

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 7 of 23 Page ID #:177




 1   further agree that this statement of facts is sufficient to support a

 2   plea of guilty to the charge described in this agreement and to

,3   establish the Sentencing Guidelines factors set forth in paragraph 12

 4   below but is not meant to be a complete recitation of all facts

 5   relevant to the underlying criminal conduct or all facts known to

 6   either party that relate to that conduct.

 7                                 SENTENCING FACTORS

 8         11.   Defendant understands that in determining defendant's

 9   sentence the Court is required to calculate the applicable Sentencing

10   Guidelines range and to consider that range, possible departures

11   under the Sentencing Guidelines, and the other sentencing factors set

12   forth in 18 U.S.C. § 3553(a).       Defendant understands that the

13   Sentencing Guidelines are advisory only, that defendant cannot have

14   any expectation of receiving a sentence within the calculated

15   Sentencing Guidelines range, and that after considering the

16   Sentencing Guidelines and the other§ 3553(a) factors, the Court will

17   be free to exercise its discretion to impose any sentence it finds

18   appropriate up to the maximum set by statute for the crimes of

19   conviction.

20         12.   Defendant and the USAO agree to the following applicable

21   Sentencing Guidelines factors:

22    Base Offense Level:                      7          [U.S.S.G. § 2Bl.1(a) (2)]

23    Specific Offense
      Characteristics
24
      Loss greater than $550,000          +14          [U.S.S.G. § 2Bl.l(b) (1) (H)]
25    and less than or equal to
      $1,500,000
26
      Use of means of ID to obtain          +2     [U.S.S.G. § 2Bl.l(b) (11) (C) (i)]
27    means of ID

28
                                           7

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 8 of 23 Page ID #:178




 1    Adjustments
 2    Leader/organizer                                 +4      [U.S.S.G. § 3Bl.l(a)]

 3   Defendant and the USAO reserve the right to argue that additional

 4   specific offense characteristics, adjustments, and departures under

 5   the Sentencing Guidelines are appropriate.

 6          13.     Defendant understands that there is no agreement as to

 7   defendant's criminal history or criminal history category.
 8          14.     Defendant and the USAO reserve the right to argue for a

 9   sentence outside the sentencing range established by the Sentencing

10   Guidelines based on the factors set forth in 18 U.S.C. § 3553(a) (1),

11   (a) ( 2) ,   (a) ( 3) ,    (a) ( 6) , and (a) ( 7) .
12                                 WAIVER OF CONSTITUTIONAL RIGHTS

13          15.     Defendant understands that by pleading guilty, defendant

14   gives up the following rights:

15                  a.         The right to persist in a plea of not guilty.

16                  b.         The right to a speedy and public trial by jury.

17                  c.         The right to be represented by counsel     and if

18   necessary have the Court appoint counsel -- at trial.              Defendant

19   understands, however, that, defendant retains the right to be

20   represented by counsel -- and if necessary have the Court appoint

21   counsel -- at every other stage of the proceeding.

22                  d.         The right to be presumed innocent and to have the

23   burden of proof placed on the government to prove defendant guilty

24   beyond a reasonable doubt.

25                  e.         The right to confront and cross-examine witnesses

26   against defendant.

27
28
                                                      8

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 1               f.    The right to testify and to present evidence in

 2   opposition to the charges, including the right to compel the

 3   attendance of witnesses to testify.
 4               g.    The right not to be compelled to testify, and, if

 5   defendant chose not to testify or present evidence, to have that

 6   choice not be used against defendant.

 7               h.    Any and all rights to pursue any affirmative defenses,

 8   Fourth Amendment or Fifth Amendment claims, and other pretrial

 9   motions that have been filed or could be filed.

10                          WAIVER OF APPEAL OF CONVICTION

11         16.   Defendant understands that, with the exception of an appeal

12   based on a claim that defendant's guilty plea was involuntary, by

13   pleading guilty defendant is waiving and giving up any right to

14   appeal defendant's conviction on the offense to which defendant is

15   pleading guilty.     Defendant understands that this waiver includes,

16   but is not limited to, arguments that the statute to which defendant

17   is pleading guilty is unconstitutional, and any and all claims that

18   the statement of facts provided herein is insufficient to support

19   defendant's plea of guilty.
20                    LIMITED MUTUAL WAIVER OF APPEAL OF SENTENCE

21         17.   Defendant agrees that, provided the Court imposes a total

22   term of imprisonment on all counts of conviction of no more than 63

23   months, defendant gives up the right to appeal all of the following:

24    (a) the procedures and calculations used to determine and impose any

25   portion of the sentence;     (b) the term of imprisonment imposed by the

26   Court;   (c) the fine imposed by the Court, provided it is within the

27   statutory maximum; .(d) to the extent permitted by law, the

28   constitutionality or legality of defendant's sentence, provided it is

                                           9

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 10 of 23 Page ID #:180




 1    within the statutory maximum;      (e) the amount and terms of any

 2    restitution order, provided it requires payment of no more than

 3    $283,063;   (f) the term of probation or supervised release imposed by

 4    the Court, provided it is within the statutory maximum; and (g) any

 5    of the following conditions of probation or supervised release

 6    imposed the Court: the conditions set forth in Second Amended General

 7    Order 20-04 of this Court.

 8         18.    The USAO agrees that, provided (a) all portions of the

 9    sentence are at or below the statutory maximum specified above and

10    (b) the Court imposes a term of imprisonment of no less than 51

11    months, the USAO gives up its right to appeal any portion of the

12    sentence, with the exception that the USAO reserves the right to

13    appeal the amount of restitution ordered if it is less than $283,063.

14                            WAIVER OF COLLATERAL ATTACK

15         19.    Defendant also gives up any right to bring a post-

16    conviction collateral attack on the conviction or sentence, including

17    any order of restitution, except a post-conviction collateral attack

18    based on a claim of ineffective assistance of counsel, a claim of

19    newly discovered evidence, or an explicitly retroactive change in the

20    applicable Sentencing Guidelines, sentencing statutes, or statutes of

21    conviction.    Defendant understands that this waiver includes, but is

22    not limited to, arguments that the statute to which defendant is

23    pleading guilty is unconstitutional, and any and all claims that the

24    statement of facts provided herein is insufficient to support

25    defendant's plea of guilty.

26          20.   This agreement does not affect in any way the right of the

27    USAO to appeal the sentence imposed by the Court.

28
                                           10

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 11 of 23 Page ID #:181




 1                     RESULT OF VACATUR, REVERSAL OR SET-ASIDE

 2         21.     Defendant agrees that if the count of conviction is

 3    vacated, reversed, or set aside, both the USAO and defendant will be

 4    released from all their obligations under this agreement.
 5                        RESULT OF WITHDRAWAL OF GUILTY PLEA

 6         22.     Defendant agrees that if, after entering a guilty plea

 7    pursuant to this agreement, defendant seeks to withdraw and succeeds

 8    in withdrawing defendant's guilty plea on any basis other than a

 9    claim and finding that entry into this plea agreement was

10    involuntary, then (a) the USAO will be relieved of all of its

11    obligations under this agreement; and (b) should the USAO choose to

12   pursue any charge that was either dismissed or not filed as a result

13    of this agreement, then (i) any applicable statute of limitations

14    will be tolled between the date of defendant's signing of this

15    agreement and the filing commencing any such action; and

16    (ii) defendant waives and gives up all defenses based on the statute

17    of limitations, any claim of pre-indictment delay, or any speedy

18    trial claim wit~ respect to any such action, except to the extent
19    that such defenses existed as of the date of defendant's signing this

20    agreement.

21                            EFFECTIVE DATE OF AGREEMENT

22         23.     This agreement is effective upon signature and execution of

23    all required certifications by defendant, defendant's counsel, and an

24    Assistant United States Attorney.
25                                 BREACH OF AGREEMENT

26         24.     Defendant agrees that if defendant, at any time after the

27    effective date of this agreement, knowingly violates or fails to

28    perform any of defendant's obligations under this agreement ("a

                                           11

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 12 of 23 Page ID #:182




 1    breach"), the USAO may declare this agreement breached.           All of

 2    defendant's obligations are material, a single breach of this

 3    agreement is sufficient for the USAO to declare a breach, and

 4    defendant shall not be deemed to have cured a breach without the

 5    express agreement of the USAO in writing.         If the USAO declares this

 6    agreement breached, and the Court finds such a breach to have

 7    occurred, then:     (a) if defendant has previously entered a guilty plea

 8    pursuant to this agreement, defendant will not be able to withdraw

 9    the guilty plea, and (b) the USAO will be relieved of all its

10    obligations under this agreement.

11            25.   Following the Court's finding of a knowing breach of this

12    agreement by defendant, should the USAO choose to pursue any charge

13    that was either dismissed or not filed as a result of this agreement,

14    then:

15                  a.   Defendant agrees that any applicable statute of

16    limitations is tolled between the date of defendant's signing of this

17    agreement and the filing commencing any such action.

18                  b.   Defendant waives and gives up all .defenses based on

19    the statute of limitations, any claim of pre-indictment delay, or any

20    speedy trial claim with respect to any such action, except to the

21    extent that such defenses existed as of the date of defendant's

22    signing this agreement.

23                  c.   Defendant agrees that:   (i) any statements made by

24    defendant, under oath, at the guilty plea hearing (if such a hearing

25    occurred prior to the breach);      (ii) the agreed to factual basis

26    statement in this agreement; and (iii) any evidence derived from such

27    statements, shall be admissible against defendant in any such action

28    against defendant, and defendant waives and gives up any claim under

                                           12

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 1    the United States Constitution, any statute, Rule 410 of the Federal

 2    Rules of Evidence, Rule ll(f) of the Federal Rules of Criminal

 3    Procedure, or any other federal rule, that the statements or any

 4    evidence derived from the statements should be suppressed or are

 5    inadmissible.
 6             COURT AND UNITED STATES PROBATION AND PRETRIAL SERVICES

 7                                  OFFICE NOT PARTIES

 8          26.   Defendant understands that the Court and the United States

 9    Probation and Pretrial Services Office are not parties to this

10    agreement and need not accept any of the USAO's sentencing

11    recommendations or the parties' agreements to facts or sentencing

12    factors.
13         27.    Defendant understands that both defendant and the USAO are

14    free to:    (a) supplement the facts by supplying relevant information

15    to the United States Probation and Pretrial Services Office and the

16    Court,   (b) correct any and all factual misstatements relating to the

17    Court's Sentencing Guidelines calculations and determination of

18    sentence, and (c) argue on appeal and collateral review that the

19    Court's Sentencing Guidelines calculations and the sentence it

20    chooses to impose are not error.       While this paragraph permits both

21    the USAO and defendant to submit full and complete factual

22    information to the United States Probation and Pretrial Services
23    Office and the Court, even if that factual information may be viewed

24    as inconsistent with the facts agreed to in this agreement, this

25    paragraph does not affect defendant's and the USAO's obligations not

26    to contest the facts agreed to in this agreement.

27          28.   Defendant understands that even if the Court ignores any

28    sentencing recommendation, finds facts or reaches conclusions

                                           13

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 1    different from those agreed to, and/or imposes any sentence up to the

 2    maximum established by statute, defendant cannot, for that reason,

 3    withdraw defendant's guilty plea, and defendant will remain bound to

 4    fulfill all defendant's obligations under this agreement.           Defendant

 5    understands that no one        not the prosecutor, defendant's attorney,

 6    or the Court -- can make a binding prediction or promise regarding

 7    the sentence defendant will receive, except that it will be within

 8    the statutory maximum.

 9                              NO ADDITIONAL AGREEMENTS

10          29.   Defendant understands that, except as set forth herein,

11    there are no promises, understandings, or agreements between the USAO

12    and defendant or defendant's attorney, and that no additional

13    promise, understanding, or agreement may be entered into unless in a

14    writing signed by all parties or on the record in court.

15    II
16    II
17    II
18    II
19    II
20    II
21    II
22    II
23    II
24    II
25    II
26    II
27    II
28    II
                                           14

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  1                 PLEA AGREEMENT PART OF THE GUILTY PLEA HEARING

  2          30.   The parties agree that this agreement will be considered

, 3    part of the record of defendant's guilty plea hearing as if the

  4    entire agreement had been read into the record of the proceeding.

  5    AGREED AND ACCEPTED

  6    UNITED STATES ATTORNEY'S OFFICE
       FOR THE CENTRAL DISTRICT OF
  7    CALIFORNIA

  8    E. MARTIN ESTRADA
       United States Attorney
  9


                                                        Date



      ABDUL-MALIK MCCLAIN                               Date
13    Defendant
14         ~~?~
      JU$I'IN P'fu:MER, ESQ.                            Dat.e
15    Attorney for Defendant
      ABDUL-MALIK MCCLAIN
16

17
                                CERTIFICATION OF DEFENDANT
18
            I have read this agreement in its entirety.          I have had enough
19
       time to review and consider this agreement, and I have carefully and
20
       thoroughly discussed every part of it with my attorney.           I understand
21
       the terms of this agreement, and I voluntarily agree to those terms.
22
       I have discussed the evidence with my attorney, and my attorney has
23
       advised me of my rights, of possible pretrial motions that might be
24
       filed, of possible defenses that might be asserted either prior to or·
25
       at trial, of the sentencing factors set forth in 18 U.S.C. § 3553(a),
26
       of relevant Sentencing Guidelines provisions, and of the consequences
27
       of entering into this agreement.       No promises, inducements, or
28

                                            15

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 16 of 23 Page ID #:186




 1    representations of any kind have been made to me other than those

 2    contained in this agreement.      No one has threatened or forced me in

 3    any way to enter into this agreement.        I am satisfied with the

 4    representation of my attorney in this matter, and I am pleading

 5    guilty because I am guilty of the charge and wish to take advantage

 6    of the promises set forth in this agreement, and not for any other

 7    reason.

 8
                                                     06- 0'-1 -2o z. 'i
 9    ABDUL-MALIK MCCLAIN                           Date
      Defendant
10

11                      CERTIFICATION OF DEFENDANT'S ATTORNEY

12         I am ABDUL-MALIK MCCLAIN's attorney.        I have carefully and

13    thoroughly discussed every part of this agreement with my client.

14    Further, I have fully advised my client of his rights, of possible

15    pretrial motions that might be filed, of possible defenses that might

16    be asserted either prior to or at trial, of the sentencing factors

17    set forth in 18 U.S.C. § 3553(a), of relevant Sentencing Guidelines

18    provisions, and of the consequences of entering into this agreement.

19    To my knowledge: no promises, inducements, or representations of any

20    kind have been made to my client other than those contained in this

21    agreement; no one has threatened or forced my client in any way to

22    enter into this agreement; my client's decision to enter into this

23    agreement is an informed and voluntary one; and the factual basis set

24    forth in this agreement is sufficient to support my client's entry of

25    a guilty plea pursuant to this agreement.

26

27    JUSTibVPAiMER", ESQ.                             Date
      Attorney for Defendant
28    ABDUL-MALIK MCCLAIN
                                           16

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     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 18 of 23 Page ID #:188




 1         EXHIBIT A TO PLEA AGREEMENT FOR DEFENDANT ABDUL-MALIK MCCLAIN

 2                   STATEMENT OF FACTS SUPPORTING PLEA AGREEMENT

 3    A.   BACKGROUND FACTS

 4    At all relevant times:

 5          1.   Defendant was a resident of Los Angeles, a student at

 6    University 1, and a member of University l's football team.

 7          2.   The Employment Development Department ("EDD") for the State

 8    of California was the administrator of the unemployment insurance

 9    ( "UI") benefit program in California.
10          3.   On March 17, 2020, the President of the United States

11    signed into law the Coronavirus Aid, Relief, and Economic Security

12    Act ("CARES Act").     The CARES Act provided over $2 trillion in

13    economic relief protections to the American people from the public

14    health and economic impacts of COVID-19.

15          4.   Prior to the enactment of the CARES Act, to be eligible for

16    UI administered by EDD, a person had to have been employed and worked

17    in California and received at least a certain amount of wages from an

18    employer in the 18 months preceding his/her UI benefits claim.

19    Because of this requirement, self-employed workers, independent

20    contractors, and employees with insufficient earnings were not

21    eligible to receive regular UI benefits.
22          5.   The CARES Act established a new program -- Pandemic

23    Unemployment Assistance ("PUA") -- to provide unemployment benefits

24    during the COVID-19 pandemic to people who did not qualify for

25    regular unemployment insurance benefits, including business owners,

26    self-employed workers, independent contractors, and those with a

27    limited work history who were out of business or had significantly

28    reduced their services as a direct result of the pandemic.           UI

     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 19 of 23 Page ID #:189




 1    benefits provided under the PUA program are sometimes referred to as

 2    PUA benefits.

 3            6.   Und~r the PUA provisions of the CARES Acti a person who was

 4    a business owner, self-employed worker, independent contractor, or

 5    gig worker could qualify for PUA benefits administered by EDD if

 6    he/she previously performed such work in California and was

 7    unemployed, partially unemployed, unable to work, or unavailable to

 8    work due to a COVID-19-related reason.

 9            7.   Persons applying for PUA benefits between April 2020 and

10    November 2020 did not need to submit any supporting documents to EDD

11    with their applications.      Claimants entered their total income for

12    the 2019 calendar year on the application.          The stated income was

13    used to pay the minimum benefits of $167 per week.          EDD could request

14    documentation to provide proof of the stated income.

15            8.   A PUA claimant was required to answer various questions to

16    establish his/her eligibility for PUA benefits.          The claimant was

17    required to provide his/her name, Social Security Number, and mailing

18    address.     The claimant was also required to identify a qualifying

19    occupational:status and COVID-19 related reason for being out of

20    work.
21            9.   After EDD accepted a UI claim, including a claim submitted

22    pursuaht to the PUA program, EDD typically deposited UI funds every

23    two weeks to an Electronic Bill Payment ("EBP") debit card

24    administered by Bank of America ("BofA"), which the claimant could

25    use to pay for his/her expenses.          The EBP card was mailed via the

26    United States Postal Service to the claimant at the address the

27    claimant provided in his/her UI application.

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     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 20 of 23 Page ID #:190




 1    B.    THE SCHEME TO DEFRAUD

 2          10.   From July 2020 to September 2020, defendant knowingly and

 3    with the intent to defraud participated in a sqheme to defraud EDD

 4    and the United States Treasury as to material matters.

 5          11.   The fraudulent scheme operated, in substance, as follows:
 6                a.   Defendant filed and caused the filing of fraudulent

 7    applications for PUA benefits, falsely representing that the

 8    claimants named in the applications (the "named claimants") had

 9    worked in California, had lost work in California because of the

10    COVID-19 pandemic, and were actively seeking work in California.               In

11    fact, as defendant then knew, the named claimants had not worked in

12    California, at least not to the extent claimed in the applications,

13    and the named claimants had not lost work in California because of

14    the COVID-19 pandemic, nor were they seeking work in California.

15                b.   By falsely stating that the named claimants had worked

16    in California, had lost work in California as a result of the COVID-

17    19 pandemic, and were actively seeking work but unable to find work

18    in California, defendant falsely represented, and caused to be

19    falsely represented, that the named claimants were eligible for UI

20    benefits administered by EDD when, as defendant then knew, they were

21    not eligible for such benefits.

22                c.   For many of the applications defendant filed or

23    assisted in filing, defendant listed addresses to which he had access

24    as the mailing addresses, so that he was the one who received the EBP

25    card for the named claimants for approved claims.          For other

26    applications, the addresses were associated with the named claimants,

27    and the named claimants received the EBP cards.

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     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 21 of 23 Page ID #:191




 1                d.   As a result of the fraudulent UI benefits applications

 2    that defendant filed and caused to be filed, EDD authorized BofA to

 3    issue ~BP debit cards in the names of the named claimants and to mail

 4    the EBP debit cards to the addresses listed on the applications.

 5                e.   As stated above, for many of the applications,

 6    defendant had listed an address he controlled, and for approved

 7    claims, he received the EBP debit cards and used them to withdraw UI

 8    benefits by making cash withdrawals and to pay for purchases of goods

 9    and services.    Defendant also transferred and caused the transfer of

10    funds from accounts associated with the EBT debit cards to accounts

11    he controlled, and in other instances, defendant received payment

12    from the person who received the EBP card.

13    C.   USE OF THE MAILS

14         12.    Among the EBP debit cards that defendant caused to be

15   mailed in the course of the scheme was an EBP debit card for an

16    account in the name of M.S. ending in x1672 sent by U.S. Mail on or

17    about July 29, 2020, from BofA to an address on Jefferson Boulevard

18    in Los Angeles, California.

19    D.   VICTIM IMPACT & OTHER SENTENCING FACTORS

20         13.    In total, defendant and his co-schemers fraudulently sought

21    more than $1,056,092 in UI benefits from EDD, receiving approximately

22    $283,063 from the fraudulent claims, and causing EDD to lose the same

23    approximate amount.

24          14.   Defendant submits and agrees that in the course of the

25    fraud he used claimants' names and social security numbers, which are

26    means of identification, to obtain an EBP debit card, witn an

27    associated number, which is also a means of identification, and in

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     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 22 of 23 Page ID #:192




 1    this way, he used a means of identification to obtain another means

 2    of identification.

 3         15.    Defendant also submits and agrees he was a leader or

 4   organizer of the EDD fraud scheme insofar as he recruited others into

 5    it, directed them in what they should submit, and otherwise organized

 6   and assisted others in obtaining fraudulent UI benefits.

 7                                     *       *   *
 8                             CERTIFICATION OF DEFENDANT

 9         I have read this STATEMENT OF FACTS IN SUPPORT OF PLEA AGREEMENT

10    ("statement of facts")    in its entirety.       I have had enough time to

11    review and consider this statement of facts, and I have carefully and

12   thoroughly discussed every part of it with my attorney.           I agree that

13   this statement of facts is accurate and correct, and is sufficient to

14   support plea of guilty to the charge described in the plea agreement

15   and to establish the Sentencing Guidelines factors set forth in

16   paragraph 12 of the plea agreement.

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lB   AB~~IN                                         Date
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     Case 2:21-cr-00580-MWF Document 50 Filed 06/04/24 Page 23 of 23 Page ID #:193




 1                      CERTIFICATION OF DEFENDANT'S ATTORNEY

 2         I am ABDUL MALIK MCCLAIN's attorney.        I have carefully and

 3    thoroughly discussed every part of this statement of facts with my

 4    client and agree that it is sufficient to support plea of guilty to

 5    the charge described in the plea agreement and to establish the

 6    Sentencing Guidelines factors set forth in paragraph 12 of the plea

 7    agreement.

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 9   JUSTIN/pALMER, ESQ.                            Date
     Attorney for Defendant
10   ABDUL-MALIK MCCLAIN

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