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Home Court filings U.S. v. Amos Mundendi Transcript: Bail Appeal Hearing — United States v. Amos Mundendi

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Transcript: Bail Appeal Hearing — United States v. Amos Mundendi

Summary

A transcript of a bail hearing held by video and telephone on May 18, 2021 in United States v. Amos Mundendi, No. 21 CR 247 (PAE), in the U.S. District Court for the Southern District of New York, before Judge Paul A. Engelmayer, filed June 18, 2021 as Document 31. The court takes up the government's de novo appeal of Judge Netburn's ruling that the defendant could be released consistent with Section 3142 of Title 18. Assistant U.S. Attorney Dina McLeod argues risk of flight and danger to the community, citing a police report as Exhibit A and messages from codefendant Apocalypse Bella's phone as Exhibit B, an attempted loss amount over $14 million, an actual loss amount of approximately $7 million, and a potential five-year guidelines sentence. Tamara Giwa of the Federal Defenders of New York appears for the defendant. The transcript runs 50 pages.

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No. 1:21-cr-00247-PAE · Doc. 31 · Docket on CourtListener

Full text

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      Case 1:21-cr-00247-PAE    Document 31   Filed 06/18/21   Page 1 of 50   1

1    UNITED STATES DISTRICT COURT
     SOUTHERN DISTRICT OF NEW YORK
2    ------------------------------x

3    UNITED STATES OF AMERICA,

4                 v.                                  21 CR 247 (PAE)

5    AMOS MUNDENDI,

6                      Defendant.                     Hearing
                                                      (via Telephone)
7    ------------------------------x

8                                                     New York, N.Y.
                                                      May 18, 2021
9                                                     2:40 p.m.

10   Before:

11
                               HON. PAUL A. ENGELMAYER,
12
                                                      District Judge
13
                                     APPEARANCES
14
     AUDREY STRAUSS
15        United States Attorney for the
          Southern District of New York
16   BY: DINA McLEOD
          Assistant United States Attorney
17
     FEDERAL DEFENDERS OF NEW YORK, INC.
18        Attorneys for Defendant
     BY: TAMARA GIWA
19

20   Also Present:
     Francesca Piperato, U.S. Pretrial Services
21

22

23

24

25

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1               (Case called)

2               THE COURT:      Let me call the case, and I'll take the

3    role.    This is United States v. Amos Mundendi, docket No. 21 CR

4    247.    Who do I have for the government?

5               MS. McLEOD:      Good afternoon, your Honor, Dina McLeod

6    for the government.

7               THE COURT:      I'll note that Ms. McLeod is participating

8    by audio.

9               Who do I have for the defense?

10              MS. GIWA:      Federal Defenders of New York, by Tamara

11   Giwa, for Amos Mundendi.        Good afternoon, your Honor.

12              THE COURT:      Good afternoon, Ms. Giwa, who is

13   participating by video.

14              Mr. Mundendi, I can see you, but just to confirm, can

15   you hear me?

16              THE DEFENDANT:      Yes, your Honor.

17              THE COURT:      Good afternoon to you, and Mr. Mundendi is

18   also participating by video.

19              Is the pretrial officer, Officer Piperato, Francesca

20   Piperato, on the line?

21              THE DEPUTY CLERK:      Judge, it's AJ.         Sorry to

22   interrupt.    I just sent an e-mail to Ms. Piperato.             She

23   mentioned she was just kicked off the call, but she is

24   reconnecting.

25              THE COURT:      I am going to move forward, particularly

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1    since at the outset I have some nonsubstantive preliminaries to

2    take care of.

3              We are here on an appeal by the government of Judge

4    Netburn's bail ruling last Wednesday, which ordered that the

5    defendant could be released consistent with Section 3142 of

6    Title 18, subject to a range of conditions.

7              At the outset I need to just put on the record the

8    relevant CARES Act finding.        Because of the pandemic I'm

9    conducting this proceeding through a blend of video, for those

10   who could participate by video, and telephone in the case of

11   the government and the court reporter and, when appearing, the

12   pretrial services officer.

13             Ms. Piperato, have you just rejoined?

14             MS. PIPERATO:     Yes.    I was able to get in.       I was

15   having some difficulty.      I apologize.

16             THE COURT:      No worries.   I'm in the middle of making

17   CARES Act findings, but I saw your name pop up.

18             Ordinarily, Mr. Mundendi, you would be appearing in

19   person before me in court and, if that is your preference, we

20   can do that.    It will take a little bit of time to arrange it

21   just because of all the logistics involved and because of the

22   challenges presented by in-person proceedings during the

23   pandemic, but that's something that I can arrange.             My

24   understanding, though, is that your preference and your choice

25   is to proceed remotely today, and that you are consenting to do

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1    so.

2              Ms. Giwa, is that correct?

3              MS. GIWA:       Yes, your Honor.     I spoke to Mr. Mundendi

4    about the fact that he has a right to appear in person before

5    your Honor, and he is agreeing to proceed remotely.               He waives

6    the right to appear in person.           I have provided a signed waiver

7    to the Court.

8              THE COURT:      Thank you.      I much appreciate your doing

9    that.   Not everyone does, and I appreciate that attention to

10   good procedure.

11             Mr. Mundendi, do you understand, first of all, that

12   you have a right to have this proceeding take place in person

13   before me in my courtroom with you sitting beside your lawyer

14   and everyone else there in person?

15             THE DEFENDANT:      Yes, your Honor.

16             THE COURT:      Am I correct that you are choosing to

17   waive that right, to consent, for the purposes of this

18   proceeding only, to having the proceeding done remotely?

19             THE DEFENDANT:      Yes, your Honor.

20             THE COURT:      And you authorize Ms. Giwa to sign the

21   form for you that reflects your consent?

22             THE DEFENDANT:      Yes, your Honor, I do.

23             THE COURT:      Very good.      I find a knowing and willing

24   consent, a knowing and voluntary consent by Mr. Mundendi to a

25   virtual proceeding, and I would note that the most important

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1    participants, the defendant and his counsel, are appearing by

2    video.   The others who are not, including the government, are

3    less critical to this.       And Ms. McLeod, prior to getting

4    started, consented to her participation by audio.

5              Can you confirm that, Ms. McLeod?

6              MS. McLEOD:      Yes, that's confirmed, your Honor.

7              THE COURT:      I will note for the record that all

8    relevant persons consent.

9              Before we get going on the content on this, I am

10   required by the Due Process Protections Act at an initial

11   proceeding of a defendant in a case to put the following on the

12   record, which is an obligation I have pursuant to statute to

13   notify the government, both orally and in writing, as to its

14   obligations under Brady v. Maryland with respect to the

15   production of exculpatory evidence.

16             Ms. McLeod, I am going to read aloud a paragraph to

17   you along those lines.       At the end of it I will be asking you

18   whether the prosecution confirms that it understands its Brady

19   obligations and will fulfill them.        Here goes.

20             I direct the prosecution to comply with its obligation

21   under Brady v. Maryland and its progeny to disclose to the

22   defense all information, whether admissible or not, that is

23   favorable to the defendant, material either to guilt or to

24   punishment and known to the prosecution.

25             Possible consequences for noncompliance may include

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1    dismissal of individual charges or the entire case, the

2    exclusion of evidence, and professional discipline or court

3    sanctions on the attorneys responsible.           I will be entering a

4    written order more fully describing this obligation and the

5    possible consequences of failing to meet it.              I direct the

6    prosecution to review and comply with that order.

7              Ms. McLeod, does the prosecution confirm that it

8    understands its obligations and that it will fulfill them?

9              MS. McLEOD:      Yes, I confirm.

10             THE COURT:      With that, before we begin with argument

11   on the bail application, let me just ask if there are any other

12   preliminary matters I need to take up.

13             Government.

14             MS. McLEOD:      No.   I don't believe so, your Honor.

15             THE COURT:      Ms. Giwa.

16             MS. GIWA:       Nothing for me, your Honor.

17             THE COURT:      In preparation for this I have read the

18   full transcript of the hearing before Judge Netburn.               I have

19   read the pretrial services report out of Texas which

20   recommended the defendant's detention.           I have read the

21   pretrial services addendum from this district, which

22   recommended the defendant's release on conditions, I have read

23   the complaint and the indictment in the case, and I've read the

24   government's recent letter seeking this bail hearing.

25             Ms. McLeod, is there anything else that exists in the

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1    record that I ought to have read in preparation for this?

2              MS. McLEOD:      There were two exhibits in the

3    government's letter, but I assume you have looked at those as

4    well.

5              THE COURT:      Yes.   I meant to include the exhibits when

6    I said the government's letter.

7              Ms. Giwa, anything else.

8              MS. GIWA:       No, your Honor.

9              THE COURT:      Ms. McLeod, you are the appellant here.

10   The standard of review here is de novo, and I'll be happy to

11   hear, in the course of the argument, what the underlying

12   standards are.    Given the offense here with respect to

13   Mr. Mundendi, it does not appear to me that this is a

14   presumption case.

15             Go ahead, Ms. McLeod.

16             MS. McLEOD:      Your Honor, the government has not taken

17   a position that this is a presumption case.               We are seeking

18   detention on both flight and dangerousness, although I'll start

19   with flight.    That was primarily the argument below, although I

20   do think continuing danger to the community is also a concern.

21             The first main concern for the government arises from

22   the defendant's, I guess, self-claimed status as a Moorish

23   citizen and his professed belief that essentially he does not

24   have to comply with the law of the U.S. Government, that he's

25   not subject to their jurisdiction.          That was something that he

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1    said directly to a police officer in December of 2020.              That

2    was the subject of the police report that's Exhibit A, where he

3    was pulled over and did not have a license plate on his

4    vehicle, told the police officer, you know, he didn't have to

5    follow the speed limit because the government couldn't tell him

6    what to do.    He said he didn't have to have a license plate.

7    He didn't have to have a driver's license or car insurance.

8              In addition to that, he presented the officer with

9    three different IDs, some of which have different names and

10   different dates of birth.      That is consistent with evidence

11   that the government has received from Apocalypse Bella's cell

12   phone.   Apocalypse Bella is a codefendant and his cell phone

13   was seized pursuant to his earlier arrest in the Eastern

14   District of Virginia.      That phone has been searched pursuant to

15   a search warrant.     The contents of that phone are attached as

16   Exhibit B.

17             As the Court can see there, the defendant essentially

18   is engaging in a conversation, it appears, with Bella where it

19   appears, and this is the government's interpretation of the

20   messages, that he's discussing a possible sale of some IDs or

21   Moorish citizen credentials to Bella.         He then sends a photo of

22   his own four Moorish IDs to Bella, and you can see on there

23   that he has a public minister credential, IDs that include the

24   words private sovereign.      Those identifications have a

25   different name.     El Ashile Mundi.     They also do not have his

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1    correct date of birth.      In the text messages he tells Bella, I

2    can go anywhere in the world without a visa.             He says that he

3    can get a Moroccan passport.       That's part of the concern.

4              Then those two data points, the arrest in December and

5    the text messages from the phone, are also compounded by the

6    fact that Mundendi has traveled with different IDs, in fact in

7    the same trip.

8              So, in March, he took a trip from Dallas to Fort

9    Lauderdale.    On one leg of the flight he used his El Ashile

10   Mundi ID, and on the flight back he used his Amos Mundendi ID.

11   That's based on the passenger manifest, which shows El Ashile

12   Mundi on the one leg, Amos Mundendi on the other leg, and

13   that's consistent as well.      That travel pattern is consistent

14   with respect to location data that we have on the phone at the

15   time which shows that the phone that we believe Mundendi used

16   was traveling from Dallas to Miami and back on those dates.

17             It's not just that he is rejects, essentially,

18   government authority.      It's the fact that he has what appears

19   to be multiple IDs of himself with different names, with

20   different dates of birth.

21             In the text messages to Bella he also appears to be

22   saying that he can procure IDs and passports for Bella.                 Also

23   concerning.    Certainly the fact that he has these Moorish ID

24   cards, someone either premade those or he got them from someone

25   who makes ID cards, suggesting that he has access to those

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1    services or can do it himself.

2              This is all in conjunction with the incentive for

3    flight.   He is facing significant exposure in this case.               The

4    attempted loss amount is over $14 million.          The actual loss

5    amount is approximately $7 million.        Solely on that basis alone

6    he is looking at potentially a five-year guidelines sentence,

7    and that is not taking into account the defendant's criminal

8    history, which I will go into momentarily.

9              The incentives here are essentially that he is facing

10   a lot of time in prison.      I can speak a little bit about the

11   strength of the government's case at the end, but the

12   government's evidence is very strong against Mr. Mundendi.               I

13   will go through that shortly.      The incentives are tilted in

14   that direction.

15             The government also submits that the defendant poses a

16   danger to the community.      He has no legitimate employment.           He

17   has sort of unexplained access.        For example, he was stopped in

18   December for driving a late-model Mercedes, but he has no job.

19   As far as the government can tell, he only makes money from his

20   fraudulent activities and potentially from selling these IDs

21   that he was trying to sell to Mr. Bella or with Mr. Bella.

22             He has previously given a number of different types of

23   arrests on his rap sheet.      Some are for assault.        Some are for

24   misdemeanor, DUI type things.      But he has been arrested for

25   fraud in the past, once in 2014 for theft of property, over

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1    $100,000, and once actually in a pending case last year for

2    fraudulent use of possession of identifying information.

3              As the government noted in its submission, the

4    defendant was arrested twice in December of 2020.             Within a few

5    weeks of each other these arrests happened.             One is for assault

6    causing bodily injury and one is the arrest that we discussed

7    above that took place on December 28 where he failed to

8    identify himself.

9              The concern there is that the defendant has been

10   arrested many times, has been convicted, has a pending charge,

11   a pending fraud charge in Texas, and appears to have a pending

12   assault charge as well.      None of these arrests have deterred

13   the defendant from either assaulting people or from committing

14   fraud.

15             There is a serious concern on the government's part

16   that he would continue to do so even on release, that there are

17   no set of conditions that could mitigate that, particularly,

18   again, because he appears to reject the authority of the U.S.

19   Government, which, of course, pretrial services is that.

20             I'll end a little bit just on the strength of the

21   government's case because that is one of the considerations

22   that the Court looks at under the Bail Reform Act.              In this

23   case the evidence specific to Mr. Mundendi is very strong.

24             The government has recorded phone conversations

25   between Mr. Mundendi and a cooperating witness in which the

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1    participants discussed applying for a new fraudulent PPP loan

2    application.    There are also recorded WhatsApp messages between

3    the cooperating witness and Mr. Mundendi discussing similar

4    things.

5               In at least one of those conversations the cooperating

6    witness provides some documentation, the financial

7    documentation that is needed for the application.             Mr. Mundendi

8    says, in sum and substance that he will have his guy, you know,

9    change the document as needed.         So the evidence is fairly

10   direct against this defendant.         It is recorded.      And so that,

11   again, is something that the Court and Should consider in

12   considering whether to set bail and what the defendant's

13   incentives are.

14              Unless the Court has any questions, we would sum up

15   there.

16              THE COURT:    Thank you very much.       I have a number of

17   questions, and I was waiting for you to finish so I can go

18   through them in an orderly way.

19              Let's begin where you left off with the nature of the

20   offense that he's been charged with being.           Explain to me what

21   the false representations are here.         In other words, it's a PPP

22   loan scam.    What's the thrust of the material falsehood

23   alleged?

24              MS. McLEOD:   For the Payment Protection Program, the

25   amount of the loan that you get from the government is based on

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1    your purported payroll because the purpose of the loan is to

2    cover your payroll, essentially.       It's supposed to help

3    businesses keep people on the job.        So if you had wanted to get

4    an inflated loan amount from a lender, you would provide

5    information that would inflate your payroll.            So you would say

6    that you had a payroll of $800,000 a month instead of $100,000

7    a month.    So the false representations are, typically -- in

8    this case they are the number of employees and the volume of

9    the payroll, the monthly payroll.

10              THE COURT:    Is the government's thesis that there were

11   no employees and there was no payroll or that the number is

12   just exaggerated?

13              MS. McLEOD:    That the number was significantly

14   exaggerated.

15              THE COURT:    Are there use of false documents as part

16   of the alleged crime here?

17              MS. McLEOD:    We are still reviewing some of the

18   e-mails that we have.      I don't think I have an example of a

19   specific false document, but I believe that the conversation

20   between Mr. Mundendi and the cooperating witness indicates that

21   there was some intention on the part of the conspirators to

22   doctor documents to the extent that they were needed in order

23   to show a higher volume of the payroll.         Typically, applicants

24   would submit like IRS documents to show their payroll and those

25   can be doctored.    I think there was certainly that intention,

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1    although I can't point the Court to a specific document.

2               THE COURT:      You mentioned earlier that the defendant

3    has traveled with different identifications, has exhibited

4    different identification documents, including to Apocalypse

5    Bella.    Any insight on whether he has thought to have made them

6    himself, or he has gotten them from others?               Do you have any

7    idea how these came about?

8               MS. McLEOD:      I don't know who is making the ID cards.

9    I don't know what it's the defendant or whether it's someone

10   else.    The doctored documents appear to be done by somebody

11   else because he sort of referenced a guy that he had that was

12   going to do that.        But whether he had potentially a different

13   person for document versus ID cards, I don't know if he's doing

14   those himself.

15              THE COURT:      Relevant to the codefendants, what is

16   Mr. Mundendi's role in the offense, according to the

17   government?

18              MS. McLEOD:      I would say that Mr. Mundendi is of a

19   more minor role than the other two defendants, compared to

20   Bella and Toussaint.        Both Bella and Toussaint, I would say,

21   have a more significant role.

22              THE COURT:      Did the government consent to the release

23   on conditions of those two defendants and what were the reasons

24   those two defendants were released on conditions?

25              MS. McLEOD:      The government sought detention for

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1    Apocalypse Bella and was unsuccessful, and then for

2    Mr. Toussaint we agreed to a set of conditions.

3              THE COURT:     Go ahead.

4              MS. McLEOD:     The basis for the joint proposed bail

5    package for Mr. Toussaint was that he was a U.S. citizen with

6    minor kids in the country.       He had very little international

7    travel.   I believe he even had an infant.         And, based on that,

8    the risk of flight argument was not as compelling.

9              THE COURT:     Did Mr. Toussaint have a criminal record

10   or identification or an association with multiple

11   identification documents?

12             MS. McLEOD:     No.   That was also a major consideration.

13   I have to check.    I don't think either Bella or Toussaint had

14   any criminal history, or if they did, it was not significant.

15   Both Bella and Toussaint are U.S. citizens and have families.

16   I understand that Mr. Mundendi also has family in the United

17   States and children as well.

18             But the main sort of distinction for us in our

19   thinking was his explicit expression of not having to comply

20   with government authority and with having not just, you know,

21   various IDs, but also claiming to have access to IDs and

22   passports.    Given those two things, it did not seem like there

23   was any set of conditions that would work because, for example,

24   Judge Netburn, I think, really put together a thoughtful set of

25   conditions.    I think she was, you know -- she was taking a lot

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1    of things into consideration when she put together the bail

2    package.

3               But one of the conditions, for example, was that he

4    has to surrender all of his IDs.         That's entirely based on just

5    the good faith of the defendant and his belief that he has to

6    do that.    If the defendant, as he appears to believe, does not

7    essentially accept the authority that the U.S. Government has

8    over him, he could just not do that.

9               It was those two things, in addition to the

10   defendant's significant and fairly recent criminal history,

11   that was the key distinction for us.

12              THE COURT:    Let me just ask you, is there any

13   information before me that was not before Judge Netburn?

14              MS. McLEOD:    I don't think so.

15              THE COURT:    Let's go to the criminal record.          Below,

16   in consideration under the statute, is whether the defendant,

17   either at the time of this offense or, analogously, at the time

18   of prior offenses, had been on supervision for, you know,

19   brushes with the criminal law.         It's a little hard for me to

20   tell from the pretrial report out of Texas the extent, if any,

21   to which that is so.

22              Starting with the current offense, the current

23   offense, as alleged in the indictment or complaint, begins

24   essentially in March 2020, more or less when COVID and soon the

25   PPP began, and extends until a year later.           At any point during

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1    that time period was the defendant under any form of

2    supervision for a criminal offense, parole, probation, federal

3    supervised release, anything like that?

4              MS. McLEOD:    The government had a similar issue sort

5    of deciphering what the defendant's whole status was.              It

6    seemed like, based on -- let me pull up -- I'm looking at the

7    rap sheet.   It seems like he should have -- he would have -- I

8    guess he was discharged from probation in 2019 and it says he

9    was not placed on conditions of the bond until February 10,

10   2021.   That is for the July 2020 offense.

11             Just based on that, it seems like it's possible that

12   in that time period, no, although I'm not fully understanding

13   exactly why the conditions of bond for the July offense were

14   placed in February.

15             THE COURT:     It's a little unclear.         The criminal

16   record, as reported here, contains various events that, at

17   least in the federal or, for that matter, New York State system

18   would ordinarily have a defendant on at least pretrial release,

19   if not postsentencing date release.        They would be under some

20   form of supervision.     It doesn't literally say that, I think,

21   with respect to any of the recent offenses, and the one time

22   that probation is discharged during the period before the

23   discharge is reflected a liquor violation, but it doesn't

24   result in a disposition.

25             I am trying to figure out if there is any determinable

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1    point in which he commits an offense while under somebody's

2    supervision.

3              MS. McLEOD:     I think from the government's perspective

4    we wouldn't make that argument because there is nothing in the

5    pretrial report or, frankly, from the rap sheet that I have and

6    that defense counsel has as well.

7              Just in my experience, and it sounds like your Honor's

8    experience as well, I can say that I think the way the Court

9    might be able to think about this is that, at a minimum, being

10   arrested, he would return to court.        He can't commit any other

11   crimes.   Even if you are on specific supervision, it

12   specifically should create some sort of effect, and that hasn't

13   happened here.    But I don't think it's clear as to the specific

14   nature of his status in that regard.

15             THE COURT:     You helpfully addressed one of the

16   conditions put in place by Judge Netburn.          Your point was that

17   the obligation to surrender identification documents is only as

18   good as the defendant's willingness to surrender all of them

19   and not obtain new ones.      There is a different provision that

20   she puts in place involving, in fact, parental custody.

21             What is your perspective on why that is not reasonably

22   guaranteed to ensure his appearance?

23             MS. McLEOD:     I mean, a couple of things.        I don't

24   doubt the good faith of Mr. Mundendi's parents, but he is, I

25   believe, in his thirties.      He is not a just-out-of-high-school

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1    kind of kid.    He's in his thirties.      He has a child.       He has

2    committed various crimes going back to 2011, all apparently

3    with, I believe, living at least in the same city as his

4    parents.    I am not sure whether he was sharing a house with

5    them at the exact same time.

6               But, in reality, I am not sure -- people are parents,

7    not bodyguards and parents have different relationships with

8    their children and different abilities to control them.

9    Frankly, it's not particularly reassuring, given the

10   defendant's lengthy history of disobeying the law.

11              THE COURT:    One moment.

12              I think your letter indicated in July 2020 he was

13   arrested for the fraudulent use of identifying information.

14   There is a reference somewhere in here to 10 to 50 such items.

15   Where does that come from and tell me about that.

16              MS. McLEOD:    Let me find the statute.        That was based

17   on the statute that's cross-referenced in the rap sheet.                So

18   the fraudulent use or possession of identifying information is

19   the title of that statute, and then there are various differing

20   penalties within the statute, depending on the number of items

21   of identifying information that one possesses.            So the

22   government's production from the charge is that he was found to

23   be in possession of 10 to 15.

24              THE COURT:    The rap sheet says that those charges,

25   unlike the DWI that was the subject of contemporaneous arrest,

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1    appears to have been dropped.

2               MS. McLEOD:    Yes.

3               THE COURT:    Was it an arrest where the charges were

4    dropped and where we really don't have any factual proffer as

5    to what was going on?

6               MS. McLEOD:    Sorry, your Honor.      I was just reviewing

7    the pretrial report.

8               I think that the Court can put certainly a limited

9    amount of weight on it.      I understand the Court's point that

10   the charges are not pending and we are not moving forward with

11   that.

12              We attempted to obtain the police report for that and

13   have not been able to do so as of yet, but I do think it's not

14   inconsistent with the rest of the record in front of your

15   Honor, which he has other arrests where he has produced

16   multiple IDs and he has -- we have photos where he shows those

17   IDs.    It's certainly not out of the sort of character where you

18   would think, well, that must be completely wrong, but I agree

19   that the Court doesn't have to weigh that particularly heavily.

20              THE COURT:    On the rap sheet there are three separate

21   assault arrests, all from Texas, one of which was resulted in a

22   release and another of which resulted in a conviction and a

23   30-day sentence, and a third of which from just five months ago

24   is pending.

25              Any knowledge of what the facts were underlying those

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1    charges?

2               MS. McLEOD:    No, your Honor.      We also tried to get

3    police reports for those and haven't been able to do so.

4               THE COURT:    Has the government had experience in prior

5    cases with people who adopt the same belief system that has

6    been attributed to Mr. Mundendi?

7               MS. McLEOD:    I have not.     I certainly have not.          I

8    know that others in the office have had defendants who are

9    sovereign citizens, and I think more sovereign citizens

10   probably somewhat similar, but I can't speak to sort of the

11   specifics of those cases or what their bail conditions were.

12              THE COURT:    The question is really whether there is

13   any track record with people who profess to not accept the

14   authority of the Court or the government in complying with

15   pretrial release conditions.

16              Ms. Giwa has just dropped off, so we will pause for a

17   moment.

18              MS. GIWA:     Your Honor, this Tamara Giwa.        I'm still on

19   the audio line, so I can hear everybody.           My video has been

20   cut.

21              THE COURT:    Ms. Giwa, I am close to finishing with the

22   government, at which point we will take a couple-of-minute

23   break, and hopefully you can then restore the video before you

24   and I start speaking.      Are you OK with my continuing with you

25   just in audio-only mode?

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1              MS. GIWA:      Yes, your Honor.     That's fine.

2              THE COURT:     Back to you, Ms. McLeod.

3              The real issue is, I understand completely why the

4    government puts weight on Mr. Mundendi's statement --

5              There you are.      Welcome back, Ms. Giwa.

6              -- Mr. Mundendi's statement that he doesn't respect

7    the authority of the government and, presumably, the courts and

8    pretrial.

9              The question is, words are words.          Do we have

10   anything, either in his prior background or in the background

11   of other people who have subscribed to similar belief systems,

12   that suggest that in the crucible of an actual criminal case

13   they will not obey?

14             Ms. Giwa, you're gone again.         Can you still hear?

15             MS. GIWA:      I'm here, your Honor.      I'm on the line.

16             THE COURT:     Go ahead, Ms. McLeod.

17             MS. McLEOD:     I myself have not had any personal

18   experience with someone with this sort of belief.

19             I think what sort of sets this case apart to me or

20   what is of particular interest is not just that he says he is a

21   Moorish citizen or a sovereign citizen, it's the fact that he

22   actually, during an arrest, not only does he say these things

23   to the officer, but also kind of acted on it.            His car didn't

24   have a license plate because he said he doesn't have to have a

25   license plate.

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1               It goes sort of beyond just saying these things.                 He

2    doesn't -- it appears, perhaps, he didn't have a driver's

3    license.    It wasn't clear all of the IDs he showed.              But I

4    think, you know, the concern for a supervision, right -- it is

5    one thing when you are face to face with a law enforcement

6    officer who, you know, is right there, and basically you have

7    to comply with their instructions.           They are typically armed.

8               A lot of what pretrial does is a requirement, but they

9    are not next to the defendant.           They don't go and search across

10   his house and try to find his IDs and search his phone.                    That's

11   not what they do.        A lot of what pretrial services does is

12   requires the defendant to sort of honor code compliance with

13   things, and that is a much bigger concern where you have this

14   sort of professed beliefs, in the government's view.

15              THE COURT:      On the rap sheet there is a reference at

16   the very end, on March 9 of this year, to a warrant.                This is

17   in connection with a failure of ID misdemeanor.               It states

18   that:   On 12/28/2020, he was held -- I guess, arrested and the

19   charge remains pending.        Then it says two and a half months

20   later, March 9, 2021, warrant.           Perhaps that's construable as

21   an outstanding bench warrant as in he was supposed to show up

22   somewhere and he didn't, but maybe it's construable in another

23   way.

24              Any insight as to what that one word means?

25              MS. McLEOD:      I construed it as a bench warrant,

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1    although I agree it is not clear.        At that point there would

2    not have been a federal warrant on him, placed on him.              That

3    was prior to the charges in this case.         So it wouldn't have

4    been that there was a new warrant from the federal case.                But

5    it appears to be unclear.

6              THE COURT:     This defendant, Mr. Mundendi, is not an

7    American citizen, unlike his codefendants.          On the other hand,

8    it doesn't appear as if the country of which he is, I gather, a

9    citizen, the DRC, is one that he has any excitement about

10   returning to, given the circumstances under which he left, as a

11   refugee seeking asylum.

12             Assuming that he were incented to flee, does the

13   government have a scenario here as to where he could

14   practically go?

15             MS. McLEOD:     I don't know if we have sort of thought

16   about other countries.      He left the DRC quite sometime ago, so

17   I am not sure whether the situation on the ground has changed

18   or not or to what extent he has extended family in that area.

19             Certainly, we have had, and this is in a different

20   type of case, in an e-mail compromise case, we have had

21   defendants who were originally from the African continent end

22   up fleeing to Mexico.      I am not sure where that person that I'm

23   thinking of ended up, but you could just cross the border.

24             I guess the answer is, I don't have another country

25   other than the DRC in mind.

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1               THE COURT:      Very helpful.    Thank you.      Let me take a

2    two-minute break.        When we come back I'm hopeful that Ms. Giwa

3    will be able to appear by video.

4               Ms. Giwa, we will resume with you in two minutes.

5               Thank you.      I'm stepping away.

6               (Recess)

7               THE COURT:      This is Judge Engelmayer.        I see

8    Mr. Mundendi and Ms. Giwa on the screen.

9               Ms. Giwa, the floor is yours.

10              MS. GIWA:      Thank you, your Honor.

11              Your Honor, before I begin, I would just like to make

12   an introduction of sorts just to say that Mr. Mundendi's family

13   has called in.    I expect that both of his parents are on the

14   line and also his girlfriend, Ms. Charisma Iwu, is on the line,

15   and I think it's possible that some of the siblings might also

16   call in.    I just wanted to let the Court know that since we are

17   not in person, they are not in the courtroom.

18              THE COURT:      Let me just say for the record, for those

19   who are calling in, especially the family of Mr. Mundendi,

20   welcome and thank you for participating in that way.

21              Go ahead.

22              MS. GIWA:     Your Honor, I would ask the Court to

23   release Mr. Mundendi on bail under the quite strict conditions

24   that Judge Netburn has already imposed here and, as I will

25   point out again, conditions that were, at least in part,

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1    recommended by pretrial services.

2              THE COURT:     I was going to ask pretrial about this,

3    and I will later, but there is an internal disagreement between

4    pretrial in Texas, where he would be stationed, who says detain

5    him.   New York pretrial says release him on conditions.

6              MS. GIWA:      I understand that, your Honor.         I would ask

7    the Court to adopt the recommendations in the addendum filed by

8    pretrial in Southern District.

9              On that point about pretrial, during the government's

10   argument there was, I think, some attempt to minimize the

11   supervisory capabilities of pretrial, but I will say that they

12   have tremendous success in ensuring that defendants return to

13   court.   I forget the numbers now, but I think it is in the high

14   nineties in terms of percent of defendants who come to court on

15   their cases.    Although they don't supervise with a gun,

16   whatever it is they do, they are quite effective in doing it.

17             Pretrial services in New York also spoke with

18   Mr. Mundendi.    They spoke with, I believe, his partner.                They

19   reviewed the rap sheet.       They reviewed the pretrial report from

20   Texas.   And after considering all of that information, they

21   then made the recommendation that Mr. Mundendi should be

22   released on bail which, of course, is not something that they

23   do in every case, and I think the Court should take that fact

24   into consideration here.

25             THE COURT:     I will.

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1              MS. GIWA:      Your Honor, the conditions that were

2    imposed, I think they adequately address the concerns about

3    both danger and risk of flight, but I would like to focus on

4    this issue of risk of flight.       I think that's really the main

5    issue here.

6              The way I'd like to do that is, first, by providing

7    some brief background about Mr. Mundendi and also painting a

8    little bit of a picture for the Court about what relief would

9    actually look like here.

10             By way of background, and I will say that I have

11   gotten this information both in my conversations with Mr.

12   Mundendi and also with his family.          At this point our office

13   has spoken with his parents, his partner, and his siblings, so

14   we have been able to get a lot more information than I had last

15   week on the date of his sentence.

16             What I know about Mr. Mundendi is that he came to the

17   United States in 2005, and he came here in asylum status when

18   he was 16 years old.       His family fled the Democratic Republic

19   of the Congo because, as I'm sure the Court is aware, there was

20   a war that persisted there for quite sometime.

21             While Mr. Mundendi was a child in the DRC, he lived

22   under really terrible conditions.          He had limited access to

23   food, limited access to water.          He had no real home and endured

24   just really unthinkable trauma.          The trauma that he endured

25   resulted in him becoming essentially mute.            When he moved to

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1    the United States, he did not speak.          He, in fact, did not

2    resume speaking until he was 19 years old.

3              Mr. Mundendi's family was one of the, I think, over 2

4    million people that were displaced from his country, and he

5    sought asylum in the United States, and his family was

6    resettled in Dallas.       Mr. Mundendi and his family have lived in

7    Dallas since 2005.       They have not resided anywhere else in the

8    country, in the world, since that time.

9              Once Mr. Mundendi got to Dallas in 2005, at the age of

10   16, he developed an interest in basketball.              He found a

11   basketball coach and that coach mentored him and slowly taught

12   him to speak English, until at 19 he started speaking again.

13             This is really somebody who has endured a lot in

14   getting to the United States and arriving in Dallas, a place

15   which gives him hope.       Everything about Mr. Mundendi is deeply

16   tied to Dallas.    He went to school there.         He graduated from

17   high school there.       He attended some college there.          He played

18   basketball quite well and actually got a basketball

19   scholarship.    But it was out of state, so he chose not to

20   attend because he didn't want to leave his family.               He remained

21   in Dallas.   He has had a child there.         He has an eight-year-old

22   son.   He has a partner who is also in Dallas.             So that really

23   is his home.    His ties there are substantial, they are

24   significant.    He really is deeply, deeply tied to the

25   community.

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1               The government did make this point in their argument

2    that they are concerned about Mr. Mundendi's flight, about the

3    fact that he might leave Dallas and that he might leave the

4    country.    But, really, he doesn't really have the ability to

5    leave.   He is here on asylum status, but he has no passport.

6    As a result of his DUI conviction, he actually has no driver's

7    license either.

8               So he doesn't have a form of identification and he

9    doesn't have an ability to leave, and he has no ties to any

10   other place other than Dallas.

11              THE COURT:     Let me just jump in.      Factually, I

12   appreciate that that's your representation.              Given the fact

13   pattern here, how can I know that that is true, that he doesn't

14   have another driver's license in, say, another name?

15              MS. GIWA:     Your Honor, I understand that, your Honor.

16   But my understanding is that as a result of the case in Texas,

17   the DUI case, his driver's license, I think, was taken.                   He

18   cannot obtain a new driver's license as a result of that case.

19              THE COURT:     I understand he can't obtain a lawful one.

20   But if he wants to drive, the record suggests an ability to

21   access fake IDs, including fake driver's licenses.               Maybe

22   that's harder to use to get out of the country with, but on the

23   facts here, I would have to worry, would I not, that he could

24   come upon obtaining such documents.

25              MS. GIWA:     Your Honor, to be clear, I don't think the

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1    government is actually maintaining that the identifications

2    were fake.   What I understood them to be saying is that the

3    identifications that they have photographs of have Mr.

4    Mundendi's face and have different names, but not actually that

5    those IDs were fake because I don't think that those IDs were

6    issued by any state.

7              That's the bulk of what the government said initially

8    at presentment.    I would be happy to clarify that.            I don't

9    want to make any misrepresentations.          But I don't think there

10   really is an allegation here that Mr. Mundendi has fake

11   identification.

12             THE COURT:      Go ahead.

13             MS. GIWA:      Your Honor, I think there are some very

14   specific conditions that Judge Netburn imposed that really

15   addressed this issue about the risk of flight, and specifically

16   that's the GPS monitoring, the surrender of any travel

17   identifications, not obtaining new documents, restrictions on

18   travel, and then this issue of Mr. Mundendi residing with his

19   family and having one of his parents act as a third-party

20   custodian.

21             I understand that they are not his bodyguards, they

22   are merely his parents, but this is a very close-knit family,

23   in large part for what they endured in coming to the United

24   States, and his parents are both hard-working people who are

25   both United States citizens.       They both work.       They have

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1    provided our office with copies of their identification, as

2    well as substantial financial information so that they can be

3    immediately approved as cosigners.          They have taken his arrest

4    extremely seriously, and they will certainly take their

5    responsibility as a third-party custodian very, very seriously.

6              THE COURT:       May I ask, as to that, presumably they

7    were aware, though, of the prior criminal history.               What say

8    you to the government's point that their parental concern for

9    him going astray appears not to have deterred any of the serial

10   arrests or worse that are reflected on the rap sheet?

11             MS. GIWA:       Your Honor, Mr. Mundendi's family certainly

12   has concern with him with every contact.            However, they never

13   before had the responsibility of both signing a bond and also

14   serving as a third-party custodian.          Contact with the criminal

15   justice system at the state level is entirely different than at

16   the federal level.

17             Mr. Mundendi was arrested on April 22, and he was

18   detained by the marshals and transported across the country

19   through Oklahoma.        It was a pretty arduous transport, based on

20   my conversation with him, and he was really overwhelmed by

21   that, as is his family.

22             So I think this new arrest really is quite different

23   than any other context he has had, and his parents view the

24   part that they play differently.         And I think also the fact

25   that there would be a bond here in such a significant amount.

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1              His parents are people who are really working-class

2    people who have working-class jobs.        This $200,000 bond, which

3    I think is what Judge Netburn imposed, is a huge amount of

4    money, and Mr. Mundendi understands that.          The fact that his

5    partner and his parents have signed that bond certainly is

6    something that would act as an incentive for him to remain in

7    Dallas and to abide by all the conditions set by the Court.

8              Your Honor, I do want to briefly address this issue,

9    also, of the Moorish citizenship or the sovereign citizenship.

10   I did speak with Mr. Mundendi some more about this after his

11   presentment, and what he explained to me is this.            He was

12   approached by somebody he knew who told him about this Moorish

13   etiology, and he was interested in it, but it certainly is not

14   a belief that he subscribes to wholeheartedly.

15             What he explained to me was also what I had observed

16   from reading the paperwork in this case, which is that when he

17   made this statement that the government is relying so heavily

18   on about not needing to respect the authority of the United

19   States Government, he was intoxicated, and the fact that there

20   was a breathalyzer, we know, really, as a matter of fact, as

21   much as I make an admission here in the state case, but he

22   really was intoxicated at the time he spoke with the police

23   officers there.

24             And what he has described to me really is sort of this

25   idea that it was given to him, and he was getting interested in

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1    it and maybe was grandstanding the rule a bit, but that's not

2    an ideology that he has.

3              He spoke freely to me when I met him last week, he

4    spoke freely with pretrial services in Texas and pretrial

5    services in New York, and at no point did he say that he would

6    not comply with any of the authority of the Court or the

7    government.    I don't think that that statement made by him

8    while he was intoxicated is something the Court really should

9    give too much weight to.

10             Your Honor, just very briefly, I do want to also turn

11   to what release would look like for Mr. Mundendi.            As I stated

12   earlier, he has lived in Dallas his whole life.            He doesn't

13   have a significant work history.       I think that's true, as the

14   government states, although he has had some work history.

15             I think, also, coming to the United States at 16, not

16   speaking for many years and yet still graduating from high

17   school was a significant accomplishment for him.            And he has

18   had jobs working in a trucking company.         He worked at a bank.

19   He did some basketball-related work.         Prior to his arrest, he

20   was taking real estate classes in Plano, Texas in order to get

21   his real estate license.

22             One of the conditions that Judge Netburn imposed here

23   was that Mr. Mundendi maintain or actively seek employment, and

24   that is certainly something he will do.

25             He has five siblings who live in Dallas and all five

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1    of them have families.      They work.     Both of his parents work.

2    This is something certainly that is part of his family culture.

3    But I don't think it will be an issue for him to maintain or to

4    obtain, rather than maintain, employment.

5               Your Honor also raised an issue that I raised

6    initially in front of Judge Netburn, which is about

7    Mr. Mundendi's son.      He has an eight-year-old son that he

8    co-cares.    He separated from his son's mother, but he's

9    actively involved in the child's life.

10              His son has been diagnosed with autism and, as a

11   result of his autism diagnosis, he does not communicate

12   verbally with a lot of people.         But what we learned from the

13   family is that his son communicates a lot with Mr. Mundendi,

14   and everybody sort of understands the reason for that as being

15   that Mr. Mundendi is someone who, for a significant portion of

16   his childhood, did not communicate verbally, has been able to

17   connect in this way with a deeper understanding with his son in

18   terms of issues with communication.

19              I raise this and the family has raised a concern about

20   Mr. Mundendi's son because his incarceration has already had

21   and will continue to have a significant impact on his son, just

22   given his diagnosis and given how close Mr. Mundendi and his

23   son are.

24              Very briefly, your Honor, just a little bit more

25   information about the cosigners, although I think I have given

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1    the Court really everything the Court needs at this point, but

2    the plan would be for Mr. Mundendi to live with his parents;

3    his mother, Ms. Elonga; his father, Mr. Mundendi.            As I said,

4    they both work full time.      They send us pay stubs and other

5    financial information.      They are both U.S. citizens.         They are

6    prepared to sign the bond immediately.         The third proposed

7    cosigner would be Mr. Mundendi's partner, Ms. Iwu.             She is on

8    the line.   She also works full time in Dallas.           Then as a

9    fourth cosigner, I think really any one of Mr. Mundendi's

10   siblings would be willing and would be approved as a cosigner.

11   All five of those people also work.        So I think there should

12   not be an issue getting any cosigners approved.

13             Finally, your Honor, and I raised this initially in

14   front of Judge Netburn, and the Court addressed this today, but

15   the comparison with the two other codefendants.            As your Honor

16   inquired and knows, the two other codefendants are out on bail,

17   also under strict conditions, and I think the Court today could

18   fashion similarly strict conditions here to allow

19   Mr. Mundendi's a release.

20             Your Honor, with consideration all of those factors,

21   Mr. Mundendi's background and substantial ties to Dallas, the

22   fact that he has a tremendous family support system, and the

23   fact that there are conditions here that would address risk of

24   flight and danger, I would ask the Court to release him today.

25             THE COURT:     Thank you.    Very helpful presentation.

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1              Tell me just the mechanics of his supervision while in

2    Texas as set out by Judge Netburn.         In other words, he would

3    wear a GPS bracelet.       Would there be reporting requirements?

4    How would that work?

5              MS. GIWA:      Your Honor, my understanding is -- I'm just

6    looking at my notes again -- my understanding is that he would

7    be under pretrial supervision, which would mean he would have

8    to appear in person with the pretrial services office.

9              I think pretrial can make home visits, although my

10   understanding, in COVID times, that's not something that they

11   are doing.

12             A further understanding with regards to the GPS is

13   that blackout zones can be imposed around airports or other

14   transportation hubs so that the GPS monitoring can further

15   restrict movement.

16             THE COURT:      That's within the discretion of pretrial.

17             MS. GIWA:      Yes, your Honor.     Although I think the

18   Court can specifically order those conditions, also.

19             THE COURT:      I notice that you did not say anything

20   about the nature and circumstances of the offense or the weight

21   of the evidence.    Can I assume from that that you are not

22   taking issue with what Ms. McLeod said?

23             MS. GIWA:      Your Honor, I agree with Ms. McLeod's

24   statements that Ms. Mundendi played a minor role in all of

25   these alleged facts, but just because the case is so new and I

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1    have not been able to meet with Mr. Mundendi in person, I just

2    don't have a lot of information at this point.

3              THE COURT:      Does Mr. Mundendi have any continuing ties

4    to the DRC?

5              MS. GIWA:      As far as I understand, no, your Honor.          He

6    came to the United States as a political refugee and he is here

7    on asylum status.

8              THE COURT:      Does he currently have any paid

9    employment?

10             MS. GIWA:      Your Honor, I don't think that he does at

11   this point, although I did speak about this issue with him

12   earlier today, and both him and his partner think that he would

13   able to get employment pretty easily.

14             THE COURT:      Thank you, Ms. Giwa.       Very helpful.

15             Let me come back to Ms. McLeod with one factual

16   question relating to the case.          I know that in the complaint

17   that there were large transfers of money alleged to have gone

18   abroad during July and August of last year.

19             Any knowledge of what became of those or whether

20   Mr. Mundendi had access to them?

21             MS. McLEOD:      Our understanding is that many of those

22   large transfers were made at the direction of Bella, and it's

23   difficult to parse out what has come of them now, so I don't

24   know that there is -- I know that Bella knows Mundendi, and

25   they are together and you can see that they have contact with

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1    each other, but I don't have a specific -- I can't specifically

2    say that any of those transfers made their way to Mr. Mundendi.

3              THE COURT:     Do you know one way or the other whether

4    they are accessible to him?

5              MS. McLEOD:     I don't know one way or another.

6              THE COURT:     Your letter, I think, indicated that

7    Mr. Mundendi had participated in a second round -- it wasn't

8    clear that it came to any fruition -- of making what the

9    government perceives to be fraudulent applications in and

10   around February of 2021.

11             What can you tell me about that?

12             MS. McLEOD:     Again, to be clear, your Honor, there

13   were sort of two separate parts in time of the scheme.

14             The first happened in around June 2020, when the PPP

15   applications first went out.      His role primarily in the second

16   part of the scheme, when the PPP loan program were re-funded by

17   Congress in December of 2020, at that point he was -- the

18   cooperating witness was put in touch with Mr. Mundendi, and

19   they then started to talk about and discuss and put into

20   process putting in a new loan application for the same company

21   that had submitted that in June of 2020.          Some of those

22   applications -- at least one of those applications actually was

23   submitted.   However, I don't believe as of -- I don't believe

24   that that has funded.

25             THE COURT:     Thank you.

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1              Let me ask pretrial a question.

2              Ms. Piperato, as you heard, I have noted different

3    written recommendations from pretrial.         Officer Poton in Texas

4    recommended detention.      Your SDNY colleague, Officer Jackson,

5    recommended release on conditions that substantially resemble

6    those imposed by Judge Netburn.        With the benefit of time and

7    reflection, with the benefit of hearing this argument, if you

8    could speak for pretrial, what is pretrial's current position?

9              MS. PIPERATO:     In regards to pretrial's position, it

10   remains the same as the original recommendation.

11             THE COURT:     I'm sorry.    I don't know what that one is

12   referring to.

13             MS. PIPERATO:     The original recommendation by pretrial

14   services in the Southern District of New York.

15             THE COURT:     Meaning released on conditions that Judge

16   Netburn put in place.

17             MS. PIPERATO:     Yes.

18             THE COURT:     Does pretrial believe any modification of

19   those conditions is in order?

20             MS. PIPERATO:     I don't have the ones that Judge

21   Netburn had put in place.      I only have from the SDNY addendum.

22   I know the Court had mentioned location monitoring, so we would

23   agree to add that condition.

24             THE COURT:     I think that one was already added.

25             Any other perspective that pretrial wants to indicate?

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1              MS. PIPERATO:     No, your Honor.

2              THE COURT:     I am just going to take a moment and

3    collect my thoughts.

4              I am ready to rule.     The governing standard is set

5    here by Title 18, United States Code, Section 3142(b).              The

6    applicable provisions here are B, C, E, F, and G.            But the nub

7    of it is that if the Court can't find that pretrial release

8    will reasonably assure the appearance of the person or the

9    safety of the community, that's Section B, the Court needs to

10   explore whether there are conditions or combination of

11   conditions that can satisfactorily assure those things.

12             In the event that the Court finds that no combination

13   of conditions can assure the defendant's appearance as

14   directed, that finding needs to be made by a preponderance of

15   the evidence.    For the government to establish, however, that

16   there is a danger to the community that can't be rectified by

17   the imposition of conditions, the government needs to establish

18   its case by clear and convincing evidence.          The point, though,

19   is that the burden is on the government as to each

20   consideration.

21             The Court, under 3142(g), is to consider a host of

22   factors, including the nature and circumstances of the offense

23   charged, the weight of the evidence, the history and

24   characteristics of the person, including a wide array of

25   criterion, and whether the defendant was on parole or probation

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1    at the time of the instant offense.

2              I hope you can tell, from the nature of the questions

3    that I have put to counsel, that I have given close attention

4    to this case.

5              First of all, I will just deal with the danger to the

6    community.   On that I do not find that the government has

7    carried its burden.      I rely here largely on the burden.              The

8    government's burden as to danger to the community is clear and

9    convincing evidence.      There are certainly very good reasons to

10   worry about Mr. Mundendi committing new offenses.             His criminal

11   record reflects that he has been undeterred by a series of

12   brushes with the law, culminating in what appears to be, at

13   least as charged, by far the most serious offense he has yet

14   committed.   I say that with the qualification that there is a

15   lack of context in the arrest report attached to the pretrial

16   or reproduced in the pretrial services report.             That makes it

17   hard for me to assess exactly what the prior Texas offenses

18   consisted of, but it certainly doesn't appear that there is

19   anything that looks like a $14 million fraud with $7 million

20   out-of-pocket loss or anything close to it.             I am concerned

21   that Mr. Mundendi would reoffend.

22             That being said, Judge Netburn has put in place a very

23   muscular package of conditions.        And the fact of having his

24   parents and his partner and one of his siblings exposed to a

25   $200,000 bond, for a variety of reasons, made me less persuaded

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1    by clear and convincing evidence that Mr. Mundendi would

2    reoffend.    I think it's a fair question and I am concerned

3    about it.    But given the high standard of proof, I am not there

4    to find that the government has established a danger to the

5    community that's uncontrollable by the bail package put in

6    place by Judge Netburn.

7               The close and hard question here is risk of flight,

8    danger of nonappearance.      There are quite a number of factors

9    here that give rise to a genuine concern about a risk of

10   flight, and I'll just rattle what some of them are.

11              To begin with, the nature and circumstances of the

12   offense.    This is a big one.    This is a very serious offense.

13   Mr. Mundendi is charged with four federal felonies, all

14   relating to an alleged $14 million fraud on the PPP program.

15              As alleged and recounted in the complaint, this was

16   not an instantaneous undertaking, but something that appears to

17   have taken thought and effort.         It reflects a concerted effort

18   by whoever perpetrated this to break the law and to obtain

19   money through a clever and thought-out stratagem.             And the

20   nature of the offense gives rise to an enormous incentive for

21   Mr. Mundendi to not face justice.

22              The government has estimated that solely based,

23   essentially, on the loss amount, without considering other

24   adjustments.    Without considering potentially heightened

25   criminal history above category I, Mr. Mundendi would be facing

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1    a guidelines sentence of five years or more.

2              I would note to that that there is something uniquely

3    appalling about the commission of an offense essentially right

4    at the beginning of the pandemic, when the rest of the world is

5    just trying to stay alive.        Anybody who would commit a

6    multimillion dollar fraud on the PPP program, which is designed

7    to save lives, jobs, and stabilize the community, is naturally

8    looking at a heavy sentence to reflect just the gravity and

9    immorality of that conduct.

10             I'm not presupposing here the specific facts of the

11   offense or finding that Mr. Mundendi is guilty.              However, he

12   has been indicted by a grand jury and, therefore, probable

13   cause has been shown, at least as to the fact of his

14   culpability in the offense, all of which gives Mr. Mundendi or

15   anyone in his situation an incentive to flee.

16             I also accept the government's representation that the

17   weight of the evidence, which appears to include, as

18   represented, recorded phone calls and text messages, which I

19   will credit are attributable to Mr. Mundendi, makes the

20   argument persuasive that the government has a consequential

21   case against him.        Again, I'm not making any finding, but I

22   have to accept the government's representations based, as they

23   are, on a specific itemization of certain categories of and

24   exhibits that are, by nature, hard to cross-examine.

25             There are other aspects of Mr. Mundendi's history and

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1    characteristics that would support a conclusion of a risk of

2    flight.    He does not have gainful employment.         He is not a

3    United States citizen.      He does not appear to have gainful

4    financial resources.     He has a consequential criminal history.

5    It is lost to history, or at least lost in the history

6    presented to me, whether Mr. Mundendi has faithfully complied

7    with the restrictions attendant to his prior arrests or

8    sentencings.    Alas, the pretrial report just doesn't have that

9    level of detail.

10              I can't, therefore, find that Mr. Mundendi has

11   previously, or in connection with this alleged offense,

12   violated a condition of release.       There is certainly grave

13   reasons to be worried that he may have, given the number of

14   prior offenses and that a number of them concatenate closely.

15              The bottom line, though, is that, at a minimum, we can

16   say that his prior brushes with the criminal law have not

17   deterred him.

18              In addition, as to the risk of flight, there is the

19   very important fact that Mr. Mundendi has presented multiple

20   identification cards with multiple names and dates of birth.

21   He has used the name Amos Mundendi, El Ashile Mundendi, and El

22   Mundi.    He has offered, according to the text messages, ID

23   cards and passports for sale.      He has depicted four of his own

24   IDs to his codefendant Apocalypse Bella, and he has bragged

25   that he could go anywhere in the world, essentially, without

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1    getting caught.

2              It appears that he has been in the business of selling

3    Moorish IDs or passports, and, finally, he has got a previous

4    fraud arrest, which is concerning.          While I don't know the

5    facts of it, the report is scanty on that.            The offense itself

6    appears -- the statutory subsection correlates with the

7    fraudulent use of some 10 to 15 identification items.

8              However, I need to offset that fact considerably by

9    the fact that that charge was dropped.           Somebody had some

10   reason to think that something along those lines had occurred,

11   but ultimately a decision was made to drop the charge, perhaps

12   disbelieving the evidence, perhaps disbelieving that the crime

13   could be established by the requisite burden of proof.

14             I note what has happened to Mr. Mundendi's

15   codefendants.    I am not sure that their outcomes are

16   dispositive.    There are a number of distinguishing factors.

17             On the flip side, however, there are substantial

18   arguments that defense counsel has made.            True, Mr. Mundendi is

19   not a citizen, but there is no indication that he has any

20   lingering ties to a foreign country.           There is no reason to

21   think that he will be able to lawfully obtain a passport or

22   driver's license.        And he has a muscular bail package with a

23   large number of cosigners who, by all accounts, consist of

24   people who have moral suasion over him.           In other words, there

25   is a good reason to think that his parents risking $200,000

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1    which would be a devastating loss to them, or the same for his

2    sibling or his partner, the risk that all would be exposed a

3    loss to of a figure like that, I think, would and should cause

4    Mr. Mundendi to hesitate.

5              I'm also mindful that Mr. Mundendi has a small child

6    who appears to rely considerably on Mr. Mundendi's care and

7    attention.   Mr. Mundendi, as is, is taking the risk of

8    separation from that child and that may, in turn, affect,

9    Ms. Giwa, how you choose to lawyer the case in your dealings

10   with the government in the coming days and weeks.            But, at a

11   minimum, Mr. Mundendi would be, if released on conditions,

12   unusually foolish to breach any of those conditions.

13             I note as well that Judge Netburn has put in place

14   about as muscular a bail package as I have seen in recent times

15   in a nonviolent case.     I do, too, have confidence in the

16   ability of pretrial, which recommends release on conditions, to

17   administer all those conditions in a way that reasonably guards

18   against Mr. Mundendi's release.

19             Putting all that together and regarding this as a

20   very, very close call, it could easily come out either way, I

21   am going to affirm Judge Netburn and leave the set of bail

22   conditions in place.     I think Judge Netburn has in fact

23   developed a very thoughtful, sophisticated set of conditions

24   here that presents a good possibility of guarding against

25   Mr. Mundendi's flight.

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1               But I need to say this, Mr. Mundendi, to you.            This

2    was a very close call, and I will tell you that I came to this

3    argument expecting and likely to come out the other way, based

4    on what I had read.      This is genuinely a close question.

5               If there is one misstep, if you breach your conditions

6    of bail in the slightest way, you can expect that the

7    government will be before me asking for you to be detained, and

8    you can expect that I will do so.

9               What that means is, if pretrial tells you to appear,

10   you appear.    It means that you have to scrupulously abide by

11   all the obligations that you have with respect to your pretrial

12   release.    There can be no dispensing with the GPS, there can be

13   no cutting off of the guns bracelet.         There can be no, I

14   forgot, I misunderstood.      You are under strict rules here.          If

15   there is any violation, you can expect that there is a high

16   likelihood that I would order your detention and transport to

17   New York for the balance of pretrial proceedings.

18              Just yes or no, Mr. Mundendi, did you hear and

19   understand what I just said?

20              THE DEFENDANT:    Yes, your Honor.

21              THE COURT:    I mean that very seriously.        You have the

22   great good fortune to have Ms. Giwa in your corner, and she has

23   made, against a high degree of difficulty, a successful

24   argument here today.      Please be in active touch with her.           She

25   has your interests at heart.      Understood?

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1              THE DEFENDANT:      Yes, your Honor.

2              THE COURT:      With that, I will enter an order simply

3    reflecting that I have affirmed in full the entire bail package

4    as put in place by Judge Netburn.

5              I believe, Ms. Giwa, it now reverts to Judge Netburn,

6    to, for example, have the conversation with the prospective

7    cosigners, the parents, who would be the custodians and the

8    like, correct?

9              MS. GIWA:      Yes, your Honor, that's my understanding.

10             THE COURT:      Ms. Giwa, how close is your client to

11   satisfying the preconditions to his release?

12             MS. GIWA:      Your Honor, we have all of the cosigners

13   lined up, as well as their information.          As soon as we can

14   schedule the interview with the U.S. Attorney's Office, we are

15   good to go.

16             THE COURT:      Very good.

17             Ms. Giwa, thank you again for your committed advocacy

18   on behalf of Mr. Mundendi.

19             Ms. McLeod, I assume that you will accommodate

20   Ms. Giwa by arranging for those interviews with the putative

21   cosigners as soon as she tells you that they are ready to be

22   met with?

23             MS. McLEOD:      Yes.   We are ready to coordinate

24   interviews whenever we get the info.

25             THE COURT:      Very good.

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1               Mr. Smallman, before we adjourn, remind me when the

2    next conference date is in the case.

3               THE DEPUTY CLERK:    TBD, Judge.      I don't think we have

4    one.

5               MS. McLEOD:   AJ, I think there is one scheduled for

6    June 15.

7               THE DEPUTY CLERK:    That's correct.          I'm sorry.

8               Judge, just to clarify a little bit, that is, as Ms.

9    McLeod pointed out, June 15, as a result of the scheduling

10   practices.    As of right now that's tentative.            That's what we

11   are hoping for.

12              THE COURT:    That's right.     That's what we are hoping

13   for, and we have asked that the time be excluded, and it was by

14   Judge Netburn until that date.         Because of the way that court

15   appearances are centrally scheduled during the pandemic, as Mr.

16   Smallman points out, all of that is is directional, and we hope

17   for it.    But I very much look forward to initial conference in

18   this case.

19              Mr. McLeod, particularly with three defendants being

20   held on conditions, I want to make sure that this prosecution

21   moves forward with rapidity, so I will be hopeful to hear at

22   the initial conference that discovery has either been provided

23   or will imminently will be provided to all three defense

24   counsel or sent to defense counsel.         You've got a month or so

25   to get there, but I assume that you are on it.

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1              MS. McLEOD:     Yes.   I am on it, your Honor.

2              THE COURT:     Anything further from the government?

3              MS. McLEOD:     No, your Honor.      Thank you.

4              THE COURT:     Anything further from the defense?

5              MS. GIWA:      Nothing further.     Thank you.

6              THE COURT:     Before we adjourn, let me say a word to

7    Mr. Mundendi's family, who I understand is listening.

8              I am looking to you to make sure that Mr. Mundendi

9    complies strictly with all the conditions of release.              I'm

10   specifically addressing myself to Mr. Mundendi's parents and

11   partner and siblings, but all of you have a responsibility

12   here.   He is on very, very, very thin ice.          If there are any

13   breaches of the conditions I have set, he is apt to be

14   detained, which is not where you or he want him to be.               I know

15   from Ms. Giwa's representation that you are all in to make sure

16   that Mr. Mundendi complies with those conditions.             I'm just

17   reinforcing her point that you really need to do that.

18             With that, we stand adjourned.         Mr. Mundendi,

19   everyone, be well.

20             (Adjourned)

21

22

23

24

25

                      SOUTHERN DISTRICT REPORTERS, P.C.
                               (212) 805-0300


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