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Home Court filings U.S. v. Carl Johansson Change of Plea Hearing Transcript — United States v. Carl Bradley Johansson

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Change of Plea Hearing Transcript — United States v. Carl Bradley Johansson

Summary

A reporter's transcript of proceedings at a change of plea hearing in United States v. Carl Bradley Johansson, filed September 21, 2022 as Document 80 in No. 5:21-cr-00170-JGB in the U.S. District Court for the Central District of California. The hearing was held September 29, 2021 in Los Angeles before the Honorable Virginia A. Phillips and was called in two matters, ED CR 21-00170-VAP and ED CR 18-00114(B)-VAP. Matthew W. O'Brien and Joseph O. Johns appear for the United States, Mark J. Werksman and Karen M. Sosa for the individual and Western Distribution, LLC, and Alan M. Lurya for Wholesale Distribution, Inc. Defense counsel tells the court the client has not been able to review the signed plea agreement in custody, and the court puts the matter over to the afternoon. The transcript is 75 pages and ends with the court in recess at 3:34 p.m.

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

No. 5:21-cr-00170-JGB · Doc. 80 · Docket on CourtListener

Full text

Case 5:21-cr-00170-JGB

Document 80

Filed 09/21/22

Page 1 of 75 Page ID #:518
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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA - WESTERN DIVISION

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HONORABLE VIRGINIA A. PHILLIPS, U.S. DISTRICT JUDGE

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UNITED STATES OF AMERICA,
Plaintiff,

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v.
WESTERN DISTRIBUTION, LLC, and
CARL BRADLEY JOHANSSON,

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Defendants.
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UNITED STATES OF AMERICA,
Plaintiff,

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v.
CARL BRADLEY JOHANSSON,
Defendant.

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Case No. CR 21-170 VAP

Case No. CR 18-114 VAP

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REPORTER'S TRANSCRIPT OF PROCEEDINGS
CHANGE OF PLEA HEARING
WEDNESDAY, SEPTEMBER 29, 2021
10:04 A.M.
LOS ANGELES, CALIFORNIA

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_______________________________________________________________

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MYRA L. PONCE, CSR NO. 11544, CRR, RPR, RMR, RDR
FEDERAL OFFICIAL COURT REPORTER
350 WEST 1ST STREET, ROOM 4455
LOS ANGELES, CALIFORNIA 90012
(213) 894-2305

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UNITED STATES DISTRICT COURT


Case 5:21-cr-00170-JGB

Document 80

Filed 09/21/22

Page 2 of 75 Page ID #:519
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APPEARANCES OF COUNSEL:

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FOR THE PLAINTIFF:
TRACY L. WILKISON
United States Attorney
BY: MATTHEW W. O'BRIEN
BY: JOSEPH O. JOHNS
Assistant United States Attorneys
United States Courthouse
312 North Spring Street
Los Angeles, California 90012

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FOR THE DEFENDANTS CARL BRADLEY JOHANSSON and WESTERN
DISTRIBUTION, LLC:
WERKSMAN, JACKSON & QUINN, LLP
BY: MARK J. WERKSMAN
BY: KAREN M. SOSA
Attorneys at Law
888 West Sixth Street, Fourth Floor
Los Angeles, California 90017

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FOR THE DEFENDANT WHOLESALE DISTRIBUTION, INC.:
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LAW OFFICE OF ALAN M. LURYA
BY: ALAN M. LURYA
Attorney at Law
15615 Alton Parkway, Suite 450
Irvine, California 92612

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UNITED STATES DISTRICT COURT


Case 5:21-cr-00170-JGB

Document 80

Filed 09/21/22

Page 3 of 75 Page ID #:520
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WEDNESDAY, SEPTEMBER 29, 2021; 10:04 A.M.

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LOS ANGELES, CALIFORNIA

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-oOo-

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10:04AM

10:05AM

10:05AM

ED CR 21-00170-VAP and ED CR 18-00114(B)-VAP, United States of

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America versus Carl Bradley Johansson.

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Counsel, please state your appearance.

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MR. O'BRIEN:

Good morning, Your Honor.

Matthew O'Brien and Joe Johns on behalf of the United States.

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THE COURT:

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MR. WERKSMAN:

Good morning.
Good afternoon, Your Honor --

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morning.

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defendant who is present in custody.

Mark Werksman and Karen Sosa on behalf of the

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THE COURT:

Thank you.

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All right.

This matter, I believe, is on the

Good morning.

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calendar in both the 18 -- excuse me -- the 18-114 case and the

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21-170 case for a change of plea in the 18-114 case as to

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Counts 1, 2, and 4 and in the 21-170 case as to Counts 1 and 3.

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Is that correct?

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10:05AM

Calling Item No. 2 and 3,

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10:04AM

THE COURTROOM DEPUTY:

MR. WERKSMAN:

That's the purpose for us being here,

Your Honor.

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May I address the Court as to our situation?

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THE COURT:

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MR. WERKSMAN:

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Certainly.
And I want to preface this by saying

that in my 35 years of practice -- 36 years of practice, I've

UNITED STATES DISTRICT COURT


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Page 4 of 75 Page ID #:521
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10:06AM

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never confronted a situation like this.

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but I want to curb my personal frustration and ask the Court to

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understand the situation and perhaps help us resolve this.

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THE COURT:

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more time today to --

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10:06AM

10:06AM

10:06AM

10:07AM

All right.

MR. WERKSMAN:

And I'm frustrated,

Is it a matter of needing

Possibly.

But here's the problem,

Your Honor.

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THE COURT:

All right.

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MR. WERKSMAN:

I need the Court's help.

And the

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situation is that on August 12th, my client and I met at the

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Santa Ana City Jail.

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thought was a final version and signed copy of the plea

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agreement, which was filed with the Court later that night or

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early the next morning with the anticipation that we would come

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to court on Friday, the 13th of August for entry of plea.

And we reviewed and finalized what I

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And it was my intention, when I went to bed on the

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night of August 12th, to get up on Friday morning, the 13th,

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and come to court and my client was going to be here and we

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were going to enter pleas to the case against Mr. Johansson

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personally in both Indictments and on behalf of Western, which

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is the entity in the second of the two cases, the reason he's

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been incarcerated.

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That morning on the 13th, my client had a medical

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issue which caused the U.S. Marshals to take him to a nearby

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clinic.

And from that point forward, he has been more or less

UNITED STATES DISTRICT COURT


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Document 80

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Page 5 of 75 Page ID #:522
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held incommunicado, deprived of counsel, and deprived of access

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to legal papers and reading glasses by the U.S. Marshals.

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10:07AM

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I know they have a tough job, they perform bravely.

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in a situation now where the U.S. Marshals are absolutely

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frustrating my ability to communicate with my client, his

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ability to receive legal papers, and in some cases his ability

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to come to court.

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10:07AM

10:07AM

10:08AM

But we're

So what's happened now, Your Honor, is that he's

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been more or less incommunicado in one form or another of COVID

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quarantine for about 46 days, ending early this week.

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with him Friday, the -- this previous Friday --

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THE COURT:

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MR. WERKSMAN:

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10:08AM

I don't want to vent too much on the U.S. Marshals.

So he's now at the MDC.
He's at MDC.

He was finally taken

off quarantine Friday, this past Friday, and I met with him.
I tried to give him copies of his plea agreement so

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he could review them.

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hadn't seen them in 43 or so days.

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them in anticipation of today's court appearance.

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I met

I gave him those copies because he
And he wanted to review

When we left the visiting room, he took these papers

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with him to his cell, but a deputy U.S. Marshal intercepted

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him -- or maybe he was an employee of the Bureau of Prisons,

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one of them -- took his papers away and said you can't take

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them from the attorney lounge, that or visiting room.

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to be -- they have to be mailed in.

UNITED STATES DISTRICT COURT

You have


Case 5:21-cr-00170-JGB

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10:08AM

10:09AM

immediately put them in envelopes.

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in two because there's a very thin slot for you to slide legal

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mail in in the lobby of MDC.

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I'll get to the point.

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THE COURT:

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MR. WERKSMAN:

That's all right.
Friday midday my assistant,

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Rob Pooley, personally put two envelopes in the mail slot

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containing all the papers, both plea agreements that are --

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we're here today for my client to agree to.
I am told now that the guy who handles mail at the

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Metropolitan Detention Center has been off this week.

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this moment, my client reports to me that he has not received

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copies of his plea agreements.

So as of

Moreover, he complained to me last Friday and he's

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complaining again this morning that he can't see because he

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doesn't have glasses.

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ago, and he can't read without glasses.

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10:09AM

I had to break the papers

I'm telling you all this for a reason, Your Honor.

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10:09AM

And I then

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10:09AM

They returned them to me on the spot.

They took away his glasses a long time

So, Your Honor, I believe that my client intends to
enter into these agreements.

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THE COURT:

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MR. WERKSMAN:

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THE COURT:

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But he needs more time to read them.
He needs to read them.

All right.

Let me -- pardon me for

interrupting you, but let me ask a couple of questions.

UNITED STATES DISTRICT COURT


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10:10AM

10:10AM

When you say "reading glasses," can those be
nonprescription reading glasses?

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MR. WERKSMAN:

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Dime store reading glasses; right?

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THE DEFENDANT:

10:10AM

10:11AM

Well, I've been severely nearsighted

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for 25 years.

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wearing bifocals for magnification because I'm just getting

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older.

And about five years ago, I've had to start

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real -- fairly thick lens and, you know, really specific

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glasses for my eyes.

And I have corrections for astigmatism.

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10:10AM

I believe so.

So I have a

And when I self-surrendered the first week of July,

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they took my glasses and I haven't had glasses for three

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months.

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front of me.

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Not only for reading, but I can't see three feet in

THE COURT:

All right.

Well, so we have two

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questions here.

I have to find out what happened to those

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glasses or the replacements.

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reading something, it sounds like we could get regular reading

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glasses for that purpose.

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MR. WERKSMAN:

But for the purposes of simply

Mr. Johansson, if we got you some

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reading glasses from Walgreens, could -- to magnify, could you

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read with those?

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THE DEFENDANT:

I could try, but I have -- I have

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corrected for astigmatism.

My eyes want to divert out to the

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side.

That's why I need my prescriptions.

UNITED STATES DISTRICT COURT


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10:11AM

10:11AM

10:11AM

10:12AM

10:12AM

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THE COURT:

Right.

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you those prescription glasses.

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MR. WERKSMAN:

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THE COURT:

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MR. WERKSMAN:

I understand that we need to get

May I make a request, Your Honor?

Yes.
We're supposed to be back here at

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2:00 o'clock this afternoon for entry of the corporate pleas.

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May I request that the Court -- and forgive me -- seize control

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of the situation and forbid the marshals from taking away his

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legal papers and order that my client be allowed to receive in

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this courtroom right now copies of his plea agreements -- I'll

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hand them to Your Honor's courtroom deputy, there are no

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staples in them, there's no contraband in them -- along with a

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debriefing statement of his co-defendant who is now cooperating

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and has pled guilty, Cameron Spicer.

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If I could give these to my client now and perhaps

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in the next hour I or someone from my staff could return and

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be -- and be ordered, permitted to give him a pair of Walgreens

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or CVS reading glasses of the strongest magnification -- but

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we've got to get through the marshal's skull.

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THE COURT:

All right.

I will discuss this with the

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marshals.

We'll put this off until this afternoon.

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the courtroom available to you -- or I'll make sure that you

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have the opportunity to talk -- let me talk with the deputy

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marshals in the courtroom to find out what's the best place for

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you to meet with your client.

UNITED STATES DISTRICT COURT

We'll keep


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10:12AM

10:12AM

10:13AM

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MR. WERKSMAN:

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I just met with him before court.

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THE COURT:

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MR. WERKSMAN:

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is I know what's going to happen.

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glasses in an hour and they're going to say we don't take

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glasses here.

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Judge Phillips, she wants him to have these glasses.

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going to get a runaround.

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further along in this process.

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THE COURT:

That's not the problem.

The problem

I'm going to show up with

And I'm going to say please talk to
And we're

And we'll be back at 2:00 o'clock no

All right.

I can sense your

frustration, and I share it because we've all -- we've all met

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here several times trying to get this matter taken care of.

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But that's why I was going to suggest that you meet with your

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client in the courtroom.

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MR. WERKSMAN:

I'd prefer that, frankly, if that can

be done.

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THE COURT:

So that, I think, would be the ideal

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thing.

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you can answer his questions.

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the marshals would want to be in the courtroom so -- which is

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obviously not acceptable because you have to have privacy.

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10:13AM

So would you -- well, that's --

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10:13AM

They have -- there are meeting rooms.

Then you can sit there, you can show him the documents,
The problem with that is I think

So let me talk to the deputies and figure out

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where's the best place that we can accomplish this.

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we'll put it on calendar for -- 2:00 o'clock is fine.

UNITED STATES DISTRICT COURT

And then


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MR. WERKSMAN:

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THE COURT:

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10:13AM

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MR. WERKSMAN:

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THE COURT:

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speak to me through your attorney.

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10:14AM

You have to

So in the meantime, Mr. Werksman -- okay.
Mr. Werksman.
MR. WERKSMAN:

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THE COURT:

Yes, Your Honor.

I have -- we have the revocation; right,

Christine?

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THE COURTROOM DEPUTY:

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THE COURT:

Okay.

Yes, Your Honor.

So I have another matter right

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now.

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back row right now and get started --

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MR. WERKSMAN:

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10:14AM

Okay.

You have to -- I'm sorry.

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10:14AM

You can hand -- you can hand him those

papers.

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10:14AM

In the meanwhile, Your Honor --

But if you want to sit back there with your client in the

There's nothing to start with,

Your Honor.

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THE COURT:

Because he doesn't have glasses?

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MR. WERKSMAN:

Yes.

What I'd like to do, if I may,

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is just be ordered back at 2:00.

If the Court would order the

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marshals to allow him to receive these papers, which you can

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examine -- they can examine, they're just legal documents, so

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he can at least try to read them.

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glasses for him.

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to bring the glasses and there will be an understanding that he

We'll come back shortly with

Maybe the courtroom deputy can tell me where

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can receive these glasses.

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10:14AM

10:16AM

10:16AM

10:16AM

Okay.

Let me talk to the deputy

marshals.

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MR. WERKSMAN:

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(Off-the-record discussion between

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the Court and the U.S. Marshal.)

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THE COURT:

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10:16AM

THE COURT:

Thank you, Your Honor.

Okay.

So what we'll do,

Deputy Stovall -- that's the deputy's name.

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MR. WERKSMAN:

Stovall?

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THE COURT:

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So they're going to make the third floor -- a

Stovall.

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conference room available to you.

When someone else from your

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office arrives there with the glasses, there shouldn't be a

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problem.

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he gets the glasses.

But if there is, Deputy Stovall will make sure that

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MR. WERKSMAN:

Very well.

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THE COURT:

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happened to the prescription pair.

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MR. WERKSMAN:

So --

And we're going to look into what

So is he going to be taken there and

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held there until 2:00 o'clock?

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THE COURT:

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MR. WERKSMAN:

Yes.
All right.

So my -- my associate,

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Ms. Sosa, who's here, we can get him some glasses, bring them

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back here, and then spend some time with him on the third

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floor.

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THE COURT:

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MR. WERKSMAN:

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10:17AM

10:17AM

No problem.

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THE COURT:

So we'll see you back at

All right.

2:00 o'clock.

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MR. WERKSMAN:

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THE COURT:

Thank you, Your Honor.

I'm going to be here.

If there's any

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problems, you can get in touch with Ms. Chung and we will make

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sure that your client has -- gets the glasses.

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to the -- he can hang on to those legal papers.

He can hang on

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U.S. MARSHALL STOVALL:

Yeah, that's fine.

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THE COURT:

Thank you very much.

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MR. WERKSMAN:

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THE COURTROOM DEPUTY:

All right.

Thank you.
All rise.

This court is in

recess.

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(Proceedings adjourned at 10:17 a.m.

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and reconvened at 2:14 p.m.)

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THE COURTROOM DEPUTY:

Calling Item No. 2 and 3,

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ED CR 21-00170-VAP and ED CR 18-00114(B)-VAP, United States of

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America versus Carl Bradley Johansson.

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Counsel, please state your appearance.

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MR. O'BRIEN:

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02:14PM

accommodating us.
U.S. MARSHALL STOVALL:

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02:14PM

Mr. Stovall, thank you for

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10:17AM

Yes.

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Good afternoon, Your Honor.

Matthew O'Brien and Joe Johns on behalf of the United States.
THE COURT:

Thank you.

Good afternoon.

UNITED STATES DISTRICT COURT


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02:14PM

02:14PM

MR. WERKSMAN:

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Mark Werksman and Karen Sosa on behalf of the defendant who is

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present in court in custody.

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THE COURT:

Thank you.

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MR. LURYA:

Alan Lurya.

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the corporate defendant Wholesale.

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THE COURT:

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MR. WERKSMAN:

02:15PM

02:15PM

I'm appearing on behalf of

Thank you.
Your Honor, I can represent to the

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Court that Mr. Exum and Mr. Grech are here.

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conference room working out some final details on the corporate

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case, which we do expect to enter this afternoon.

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02:15PM

Good afternoon again, Your Honor.

THE COURT:

They're in the

So we're going ahead right now with the

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plea for Mr. Johansson, individually, and also in the 21

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case -- right? -- is it Wholesale?

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MR. WERKSMAN:

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THE COURT:

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MR. WERKSMAN:

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THE COURT:

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MR. WERKSMAN:

Western, Your Honor.

Western.
Western Distribution.

All right.
And I want to thank Your Honor and

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the courtroom staff for the assistance.

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excellent.

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We brought him glasses.

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content, Your Honor, that we had an ample opportunity to review

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the materials and be prepared for this.

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The marshals were

They let us meet with my client.

THE COURT:

He got glasses.

We covered everything.

Thank you.

So I'm

I'm glad to hear that.

UNITED STATES DISTRICT COURT


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02:16PM

All right.

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the lectern.

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waiver on the joint representation.
All right.

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THE DEFENDANT:

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THE COURT:
see.

02:18PM

Yes, Your Honor.

You are charged in Counts 1, 2 -- let me

In Case No. ED CR No. 21-170, you are charged in

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Count -- wait a minute.

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with conspiracy to commit bank fraud while on pretrial release,

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in violation of Title 18, United States Code, Section 1349 and

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3147, and with bank fraud -- in the second count, also bank

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fraud while on pretrial release, in violation of Title 18,

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United States Code, Section 1344(2) and 3147.

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16

02:17PM

Mr. Johansson.

Let me start with the 21-170 case.

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02:17PM

Because, first, I want to take your client's

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7

02:16PM

Why don't you and Mr. Johansson stand at

I'm sorry.

Oh.

Okay.

In Count 1

You understand what you're charged with in Case
No. 21-170?

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THE DEFENDANT:

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THE COURT:

Yes, Your Honor.

And then in Case No. 18-114, you're

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charged with -- in Count 1 with conspiracy, in violation of

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Title 18, United States Code, Section 371; in Count 2, welding

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without the required certificate, in violation of Title 49,

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United States Code, Section 5124, and 49 -- Title 49 of the

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Code of Federal Regulations, Section 180.413(a)(1); and then in

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Count 4, you are charged in that case with tax evasion, in

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violation of Title 26, United States Code, Section 7201.

UNITED STATES DISTRICT COURT

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02:18PM

02:19PM

02:19PM

02:19PM

02:19PM

of these are felonies.

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Do you understand what you're charged with?

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THE DEFENDANT:

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THE COURT:

5

THE DEFENDANT:

6

THE COURT:

Yes.

In both cases?
Yes.

All right.

Now, I understand that you

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are being represented today by Mr. Werksman in connection

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with -- that you individually are being represented by

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Mr. Werksman.

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representing the defendant Western Distribution, LLC.

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right?

And in the 21-170 case, Mr. Werksman is also

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THE DEFENDANT:

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THE COURT:

Is that

Yes.

All right.

In any criminal case, each

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defendant has a right to have independent counsel or

15

representation.

Do you understand that?

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THE DEFENDANT:

17

THE COURT:

Yes.

And under the Constitution, of course,

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each defendant has the right to receive effective assistance of

19

counsel.

20

case, that can present a conflict of interest.

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have trouble representing all of the defendants with the same

22

fairness.

So when one lawyer represents two defendants in a
The lawyer may

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Have you and Mr. Werksman discussed this?

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THE DEFENDANT:

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THE COURT:

Yes.

Now, you signed a document waiving or

UNITED STATES DISTRICT COURT


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02:20PM

02:20PM

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giving up any right to complain later about this conflict of

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interest.

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THE DEFENDANT:

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THE COURT:

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Mr. Werksman before you signed it?

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THE DEFENDANT:

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THE COURT:

02:21PM

02:21PM

Uh, yes.

All right.

Did you discuss this with

Yes.

The conflict of interest between -- for

8

a lawyer representing both you as an individual defendant and

9

the company could result in a situation where the defendant is

10

denied his right to effective assistance of counsel because, in

11

any case, defendants may have different degrees of involvement

12

in the matter.

13

02:21PM

Do you recall that?

So that's what leads to a conflict of interest.

For example -- and these are just examples, and they

14

may or may not apply in your case.

15

represents more than one defendant in a case, a disadvantage

16

for you is that the attorney-client privilege, for example, may

17

prevent your lawyer from communicating to you about information

18

about the other defendant, which in this case is your

19

corporation.

20

Do you understand that?

21

THE DEFENDANT:

22

THE COURT:

But when a lawyer

Yes.

And in certain cases, the Government

23

might offer a lesser sentence to a defendant if he or she

24

cooperates against a co-defendant.

25

disadvantage.

So that could be a

You understand that?

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1

THE DEFENDANT:

2

THE COURT:

Yes.

And the Government may let a defendant

3

who is not as involved as other defendants plead guilty to a

4

lesser charge.

5

Do you understand that?

6

THE DEFENDANT:

7

THE COURT:

Yes.

These are examples of the conflicts of

8

interest that could arise.

9

THE DEFENDANT:

10

THE COURT:

Yes.

All right.

Let's see.

If the case were

11

to go to trial -- which, of course, if I accept your guilty

12

pleas, it would not go to trial.

13

of the potential reasons why there's a conflict of interest

14

here.

15

I just have to tell you all

So if the case proceeds to trial, then dual

16

representation, that means your lawyer representing both you

17

and the corporation, could affect how, for example, he

18

exercises his challenges to jurors who might sit on your case.

19

So, for example, there could be a juror who might be

20

favorable to you but perceived or seen as unfavorable to the

21

corporation and then the attorney would have a conflict of

22

interest in deciding whether to challenge that juror.

23

Do you understand that potential conflict?

24

THE DEFENDANT:

25

THE COURT:

Yes.

All right.

And the best defense for one

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1

defendant is often that another defendant is guilty.

2

a lawyer represents two defendants, then that argument becomes

3

difficult to make.

4

Do you understand that?

5

THE DEFENDANT:

6

THE COURT:

And so if

Yes.

Evidence that helps one defendant in a

7

case might harm the other defendant.

8

a conflict of interest in deciding what evidence to put on in a

9

case.

10

Do you understand that?

11

THE DEFENDANT:

12

THE COURT:

So the lawyer might have

Yes.

When it comes to sentencing, dual

13

representation, meaning a lawyer representing both clients,

14

would prevent the lawyer from engaging in post-trial

15

negotiations with the Government as to full disclosure by one

16

defendant against the other and prevent the lawyer from arguing

17

that one of the defendants he represents is more culpable or

18

guilty than the other.

19

Do you understand that?

20

THE DEFENDANT:

21

THE COURT:

Yes.

All right.

Do you have any questions

22

about the conflict of interest and what you're waiving or

23

giving up?

24

THE DEFENDANT:

25

THE COURT:

No.

All right.

And are you prepared to

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1

waive any conflict of interest that's posed by Mr. Werksman

2

representing both you and Western?

3

THE DEFENDANT:

4

THE COURT:

If you have any questions

about that as we go along, please let me know.

6

talk to your lawyer or if you have a question for the Court,

7

please let me know.

8

THE DEFENDANT:

9

THE COURT:

If you need to

Yes.

All right.

I understand that you have

10

signed a written plea agreement that was negotiated on your

11

behalf with the United States Attorney's Office.

12

here today because you want to withdraw your earlier plea of

13

not guilty as to Counts 1, 2, 4, and 18 through 114.

14

the tax evasion counts -- correct? -- 118 through 114?

15

sorry.

17

I'm sorry.

So you're

Those are
No, I'm

That's the case number, excuse me.

So you want to change your plea from not guilty to
guilty as to Counts 1, 2, 4 in Case No. 18-114 --

18

THE DEFENDANT:

19

THE COURT:

20

And then in the 21-170 case, you want to change your

21

02:25PM

All right.

5

16

02:25PM

Yes.

Yes.

-- correct?

plea to a plea of guilty to Counts 1 and 3.

22

THE DEFENDANT:

23

THE COURT:

Is that correct?

Yes.

All right.

I'm going to ask my

24

courtroom clerk to swear you in as a witness and that means

25

that your answers to my questions will be made under penalty of

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perjury.

2

later be charged with a separate crime of perjury.

3

understand what that means?

4

THE DEFENDANT:

5

THE COURT:

6

THE DEFENDANT:

7

THE COURT:

8

THE COURTROOM DEPUTY:

9
02:26PM

02:26PM

02:26PM

Do you

Yes.

What "perjury" means?
Yes.

All right.
Is Carl Bradley Johansson

your true and correct name?

10

THE DEFENDANT:

11

THE COURTROOM DEPUTY:

12

Do you solemnly swear that your answers to the

Yes.
Please raise your right hand.

13

Court's questions regarding your plea shall be the truth, the

14

whole truth, and nothing but the truth, so help you God?

15

THE DEFENDANT:

16

THE COURTROOM DEPUTY:

Thank you.

17

THE COURT:

Mr. Werksman, the plea

Yes.

All right.

18

agreement was signed by you -- it's a consolidated plea

19

agreement.

It was signed by you and your client on August the

20

12th, 2021.

Did he sign the plea agreement in your presence?

21

MR. WERKSMAN:

22

THE COURT:

23

02:26PM

If you answer untruthfully or falsely, you could

Yes, he did.

Did you discuss the contents of the plea

agreement with your client before he signed it?

24

MR. WERKSMAN:

25

THE COURT:

At great length.

And have you discussed it again with him

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02:26PM

02:27PM

02:27PM

today?

2

MR. WERKSMAN:

3

THE COURT:

consolidated plea agreement, represent the entire disposition

5

of both of these cases so far as you, your client, and the

6

U.S. Attorney's Office are concerned?

7

MR. WERKSMAN:

8

THE COURT:

Yes, it does.

Have there been any other promises,

9

guarantees, or representations made to you or your client other

10

than what's contained in the written plea agreement?

11

MR. WERKSMAN:

12

THE COURT:

Thank you.

13

All right.

Mr. Johansson, was your lawyer with you

No.

14

when you signed the plea agreement?

15

THE DEFENDANT:

16

THE COURT:

19
20
21

Did you discuss everything in the plea

THE DEFENDANT:

Uh, everything that was in the

agreement.
THE COURT:

Yes.

Everything in the agreement you

discussed with Mr. Werksman?

22

THE DEFENDANT:

23

THE COURT:

24

him; is that correct?

25

Yes.

agreement with him before you signed it?

18

02:27PM

Does the plea agreement, the

4

17

02:27PM

Yes, I have.

Yes.

And you've discussed it again today with

THE DEFENDANT:

Correct.

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02:27PM

all of your questions about the plea agreement before you

3

signed it?

4

THE DEFENDANT:

5

THE COURT:

02:28PM

02:28PM

Um, whatever I could think of.

So you asked -- you asked him all the

questions you could think of.

7

THE DEFENDANT:

8

THE COURT:

9

02:28PM

Did you have a chance to ask your lawyer

2

6

02:27PM

THE COURT:

Is that right?

Yes.

Did he answer your questions to your

satisfaction?

10

THE DEFENDANT:

11

THE COURT:

Yes.

I -- yes.

All right.

Does this plea agreement

12

cover everything you've been told about what's happening in

13

your case?

14

THE DEFENDANT:

15

THE COURT:

I believe so.

In other words -- well, what I'm asking

16

you is:

Has anyone made you any promises or told you anything

17

about what's going to happen in your case other than what's in

18

the plea agreement?

19

THE DEFENDANT:

20

THE COURT:

21

THE DEFENDANT:

22

THE COURT:

No.

So the plea agreement covers everything?
Yes.

All right.

Mr. O'Brien or Mr. Johns, is

23

this the written plea agreement, the consolidated plea

24

agreement filed as Docket 264 in Case No. 18-114 the written

25

plea agreement the Government extended to the defense?

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02:29PM

1

MR. O'BRIEN:

2

THE COURT:

02:29PM

consolidated plea agreement, has the Government made any other

4

promises, representations, or guarantees to the defendant or

5

his counsel?

6

MR. O'BRIEN:

7

THE COURT:

Thank you.

8

All right.

Mr. Johansson, how old are you and how

No, Your Honor.

9

far did you go in school?

10

THE DEFENDANT:

THE COURT:

13

THE DEFENDANT:

14

THE COURT:

15

I just started my 64th year, and I

went to college.

12

Are you a citizen of the United States?
Yes.

And have you received a copy of the

Indictment in both cases, the charges against you?

16

THE DEFENDANT:

17

THE COURT:

Yes.

Have you thoroughly discussed the

18

charges against you with your lawyer?

19

THE DEFENDANT:

20

THE COURT:

21

02:29PM

Apart from what's contained in the

3

11

02:29PM

Yes, Your Honor.

Yes.

You understand that the offenses to

which you're offering your guilty plea are felonies?

22

THE DEFENDANT:

23

THE COURT:

Yes.

If I accept your guilty pleas today,

24

you'll be judged guilty of these felonies.

A person who has

25

been judged guilty of a felony loses the right to vote, the

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right to hold public office, the right to sit on a jury, and

2

the right to own or possess a firearm and ammunition of any

3

sort.

4

Do you understand that?

5

THE DEFENDANT:

6

THE COURT:

02:30PM

guaranteed to you by the laws and the Constitution of the

8

United States in connection with this case.

while we go through this?

11

MR. WERKSMAN:

Would you like to sit?

12

THE DEFENDANT:

I'm just a little dizzy, yeah.

13

THE COURT:

14

MR. WERKSMAN:

15

Why don't you take a seat.
He's a little dizzy.

It might be

more convenient.

16

THE COURT:

17

You can adjust the microphone so that it reaches

That's fine.

MR. WERKSMAN:

20

THE COURT:

22

Certainly.

him.

19

21

02:30PM

Mr. Werksman, does your client need to sit down

10

18

02:30PM

You have a number of rights that are

7

9
02:30PM

Yes.

I'll go sit next to him, Your Honor.

And you said you're a little dizzy.

Do

you feel you can go forward today, Mr. Johansson?
THE DEFENDANT:

23

every once in a while.

24

THE COURT:

25

THE DEFENDANT:

Yes.

I -- I -- I get this vertigo

But you're thinking clearly?
As clearly as I can, yes.

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2

02:30PM

02:30PM

02:30PM

THE COURT:

all of my questions so far?

3

THE DEFENDANT:

4

THE COURT:

All right.

At any time if you can't

hear me or if you don't understand any question, let me know, I

6

will be happy to reword the question.

7

THE DEFENDANT:

8

THE COURT:

9

So if you answer the question, I'm going to assume

10

Yes.

Do you understand?

All right.

that you understood me.

11

THE DEFENDANT:

12

THE COURT:

Yes.

All right.

You have -- going back to

13

the constitutional rights that you have in connection with this

14

case.

15

First of all, you have the right to be represented

16

by a lawyer at all stages of the case.

17

lawyer, the Court will appoint one to represent you.

19

02:31PM

Yes, Your Honor.

5

18

02:31PM

Well, have you been able to understand

If you can't afford a

You have the right to plead not guilty and to
continue pleading not guilty.

20

You have the right to a speedy and public trial

21

before a jury at which the Government would have the burden of

22

proving your guilt beyond a reasonable doubt.

In other words,

23

a defendant never has to prove his innocence.

It's always the

24

burden on the Government to prove guilt beyond a reasonable

25

doubt.

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2

02:31PM

You have the right to a speedy and public trial and

4

at that trial you'd have the right to see and hear the evidence

5

that the prosecution introduces against you.

7

02:32PM

02:32PM

You have the right to confront and cross-examine any
witness the Government calls to testify against you.

8

You have the privilege against self-incrimination,

9

that means you have the right to remain silent and that means

10

that the Government cannot force you to testify against your

11

self-interest.

12

You have the right to put on a defense at trial, put

13

on evidence, call witnesses to testify on your behalf, use the

14

Court's subpoena power to make witnesses come to court to

15

testify on your behalf, and you have the right to testify at

16

trial if you voluntarily decide to do so.

17

02:32PM

sorry.

3

6

02:31PM

You have the right to see and hear -- well, I'm

If you're convicted after a trial, then you have the

18

right to appeal your conviction and your sentence to a higher

19

court, a Court of Appeals.

20

Do you understand these rights?

21

THE DEFENDANT:

22

THE COURT:

Yes.

Any questions for me or your lawyer

23

about any of these rights?

24

THE DEFENDANT:

25

THE COURT:

No.

The first right that I mentioned to you

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02:33PM

02:33PM

1

just now is your right to be represented by a lawyer.

2

not giving up that right by pleading guilty.

3

giving up all of the other rights that I described, including,

4

to a large extent, your right to appeal your conviction and

5

your sentence.
So in the plea agreement that you signed, on

7

page 16, in paragraph 27, you've agreed that, with the

8

exception of an appeal based on a claim that your guilty pleas

9

were involuntary, so with the exception of that, by pleading

10

guilty, you are giving up any right to appeal your convictions

11

on these offenses.

12

Do you understand what that means?

13

THE DEFENDANT:

14

THE COURT:

Yes.

Okay.

And in the next paragraph,

15

paragraph 28, you've agreed that, so long as I sentence you to

16

no more than the statutory maximum as to these counts and --

17

well, let me back up.
Have you been told about what the statutory maximum

19

sentence is for each of these counts?

20

THE DEFENDANT:

21

THE COURT:

22

24
25

I believe so.

It's in the plea agreement.

But I'm

going to ask the prosecutor to state those on the record now.

23

02:34PM

But you are

6

18

02:33PM

You're

MR. O'BRIEN:

Your Honor, do you want me to go count

by count -THE COURT:

Yes.

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02:34PM

02:35PM

1

MR. O'BRIEN:

-- or just the total?

2

THE COURT:

Count by count.

3

MR. O'BRIEN:

02:35PM

Your Honor, the statutory maximum

4

sentence that the Court can impose for a violation of Title 18,

5

United States Code, Section 371, is five years' imprisonment, a

6

three-year period of supervised release, a fine of $250,000 or

7

twice the gross gain or gross loss resulting from the offense,

8

whichever is greatest, and a mandatory special assessment of

9

$100.

10

The statutory maximum sentence that the Court can

11

impose for a violation of Title 49, United States Code,

12

Section 5124, is five years' imprisonment or ten years in any

13

case in which the violation involves the release of a hazardous

14

material that results in death or bodily injury to any person,

15

a three-year period of supervised release, a fine of $250,000

16

or twice the gross gain or gross loss resulting from the

17

offense, whichever is greatest, and a mandatory special

18

assessment of $100.

19
02:35PM

No.

The statutory maximum sentence that the Court can

20

impose for a violation of Title 26, United States Code,

21

Section 7201, is five years' imprisonment, a three-year period

22

of supervised release, a fine of $250,000 or twice the gross

23

gain or gross loss resulting from the offense, whichever is

24

greatest, and a mandatory special assessment of $100.

25

Defendant understands that the statutory maximum

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1

sentence that the Court can impose for a violation of Title 18,

2

United States Code, Section 1349, is 30 years' imprisonment, a

3

five-year period of supervised release, a fine of $1 million or

4

twice the gross gain or gross loss resulting from the offense,

5

whichever is greatest, and a mandatory special assessment of

6

$100.

7

02:36PM

8

impose for a violation of Title 18, United States Code,

9

Section 1344(2), is 30 years' imprisonment, a five-year period

10

of supervised release, a fine of $1 million or twice the gross

11

gain or gross loss resulting from the offense, whichever is

12

greatest, and a mandatory special assessment of $100.

13

02:36PM

02:37PM

The statutory maximum sentence that the Court can

14

impose for a violation of Title 18, United States Code,

15

Section 3147, is ten years' imprisonment to be served

16

consecutive to the underlying offense.

17

02:37PM

The statutory maximum sentence that the Court can

Therefore, the total maximum sentence for all

18

offenses to which defendant is pleading guilty is 100 years'

19

imprisonment, a five-year period of supervised release, a fine

20

of $2,750,000 or twice the gross gain or gross loss resulting

21

from the offense, whichever is greatest, and a mandatory

22

special assessment of $500.

23

THE COURT:

Thank you.

24

All right.

So do you understand what the attorney

25

for the Government just stated?

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02:37PM

02:38PM

1

THE DEFENDANT:

2

THE COURT:

02:39PM

So going back to my question

to you a moment ago, paragraph 28 of the plea agreement

4

provides that, so long as I sentence you to no more than the

5

statutory maximum, which has just been read into the record,

6

you're giving up your right to appeal the way I calculated your

7

sentence, the length of your sentence, any fine that's imposed,

8

as long as it's within the statutory maximum, the -- to the

9

extent that's allowed, the constitutionality or legality of

10

your sentence, again, provided that the fine is within the

11

statutory maximum, and the term of imprisonment is ten years or

12

less.
The amount of any restitution -- you're giving up

14

your right to appeal the restitution order.

15

pay restitution.

16

appeal the restitution order so long as it doesn't require you

17

to pay more than $2.5 million.

18

02:38PM

All right.

3

13

02:38PM

Yes.

I'll order you to

So long as -- you're giving up the right to

And after someone serves their sentence, they are on

19

supervised release.

And you're giving up your right to appeal

20

the terms and conditions of any supervised release, including

21

the drug testing condition.

22

Do you understand all of that?

23

THE DEFENDANT:

24

THE COURT:

25

THE DEFENDANT:

Yes.

Any questions so far?
No.

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02:39PM

02:39PM

02:39PM

02:39PM

02:40PM

THE COURT:

All right.

You have -- have you

2

discussed with your lawyer your appeal rights and what you're

3

giving up?

4

THE DEFENDANT:

5

THE COURT:

Yes.

All right.

Keeping in mind all the

6

rights that I explained to you a moment ago, your right to a

7

jury trial and so forth, do you want to give up those rights by

8

pleading guilty?

9

THE DEFENDANT:

10

THE COURT:

Yes.

Have you told your lawyer everything

11

about your involvement in this matter?

12

THE DEFENDANT:

13

THE COURT:

Yes.

And has he advised you about the nature

14

of the case, the nature of the charges against you and possible

15

defenses that might apply?

16

THE DEFENDANT:

17

THE COURT:

Yes.

Are you on parole or probation with any

18

other court at this time?

19

THE DEFENDANT:

20

THE COURT:

No.

And you have now been advised about the

21

maximum sentence that you're facing and the mandatory -- the

22

ten-year mandatory consecutive sentence on one of the counts.

23

And you understand that; correct?

24

THE WITNESS:

25

THE COURT:

Um --

You understand that that's the longest

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02:40PM

02:40PM

02:41PM

02:41PM

1

possible sentence you could get, what Mr. O'Brien stated on the

2

record a moment ago?

3

THE DEFENDANT:

4

THE COURT:

Yes.

And in the federal system, we don't have

5

parole.

So as I said a moment ago, when you've served your

6

sentence, you'd be released on supervised release.

7

means there are rules and conditions that apply about where you

8

can live and what kind of work you can do and so forth.

9

violate any of those conditions, you can be returned to prison.

10

Do you understand that?

11

THE DEFENDANT:

12

THE COURT:

And that

If you

Yes.

Federal judges are required to consider

13

a number of different factors in deciding what sentence is

14

reasonable in any case.

15

me -- one of the things I consider is the United States

16

Sentencing Guidelines.

One of the things to be considered by

17

Have you and your lawyers talked in general terms

18

about the Sentencing Guidelines and how they might apply in

19

your case?

20

THE DEFENDANT:

21

THE COURT:

Yes.

So after today, you'll be interviewed by

22

a probation officer who will then do an investigation into your

23

background and into this offense -- these offenses and then the

24

probation officer prepares a written report.

25

You have the right to see that report and have the

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1

opportunity to discuss it with your lawyer before sentencing.

2

02:41PM

After the report's been issued, then your lawyer and

3

the lawyer for the Government will each file their sentencing

4

briefs with the Court, making their arguments and

5

recommendations as to what sentence I should give.

6

02:41PM

02:42PM

7

decision.

8

the judge who decides what your sentence should be, not the

9

probation officer and not the lawyers.
Do you understand that?

11

THE DEFENDANT:

12

THE COURT:

Yes.

If your sentence is -- well, back to the

13

guidelines.

14

the judge can impose a sentence that's either shorter than

15

what's called for under the guidelines or longer.

The guidelines are advisory.

So in most cases,

If your sentence is different than what you hoped

17

for or expected, you'll still be bound by your guilty plea and

18

you won't have the right to withdraw it.

19

Do you understand that?

20

THE DEFENDANT:

21

THE COURT:

22
23

02:42PM

But it's important that you understand that it is

10

16

02:42PM

I consider all of those things before I make a

Yes.

Are you feeling all right,

Mr. Johansson?
THE DEFENDANT:

24

last few months, yeah.

25

THE COURT:

Um, I'm as good as I felt in the

All right.

So you're still able to go

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1
2

THE DEFENDANT:

3

THE COURT:

4
02:42PM

02:42PM

02:43PM

5

All right.

Let me know if you're not

feeling well.
All right.

Has anybody made any threats against you

or anyone in your family or anyone else in order to get you to

7

plead guilty?

8

THE DEFENDANT:

9

THE COURT:

10

THE DEFENDANT:

11

THE COURT:

No.

Has anyone threatened you?
No.

Other than what's in the consolidated

12

plea agreement and other than what we've discussed here in

13

court today and other than the general discussion that you told

14

me you had with your lawyer about the Sentencing Guidelines,

15

has anyone told you -- or made you any promises about what

16

sentence you would receive if you pled guilty?

17

THE DEFENDANT:

18

THE COURT:

sentence if you pled guilty?
THE DEFENDANT:

21

THE COURT:

No.

Has anyone promised you anything of any

kind in order to get you to plead guilty?

23

THE DEFENDANT:

24

THE COURT:

25

No.

Has anyone promised you a certain

20

22

02:43PM

Yes, Your Honor.

6

19
02:43PM

forward today?

No.

Do you feel that you understand

everything that we have discussed here today?

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1

THE DEFENDANT:

2

THE COURT:

3

02:43PM

02:43PM

02:44PM

02:44PM

consequences to you of pleading guilty to these charges?
THE DEFENDANT:

5

THE COURT:

Yes, I've come to terms with this.

And you understand what the consequences

6

are, as we've discussed?

7

THE DEFENDANT:

8

THE COURT:

Yes, I -- I understand.

Do you feel that you're competent and

able to make the decision to plead guilty to these charges?

10

THE DEFENDANT:

11

THE COURT:

12

entirely voluntary on your part?

Yes.

And is your decision to plead guilty

13

THE DEFENDANT:

14

THE COURT:

15

read out loud to you at this time.

16

charges read to you again?

17

THE DEFENDANT:

18

THE COURT:

19
02:44PM

Do you feel that you understand the

4

9

I believe so.

Yes.

You have the right to have these charges
Do you wish to have the

No.

You have read them yourself in the

Indictment --

20

THE DEFENDANT:

21

THE COURT:

22

You understand exactly what you're charged with?

23

THE DEFENDANT:

24

THE COURT:

25

Yes, Your Honor.

-- the two Indictments?

I believe so.

All right.

I'm going to ask as to each

count -- I'm going to take your plea individually as to each

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1

count.

2

02:44PM

02:45PM

02:45PM

02:45PM

02:45PM

All right.

Starting with Case No. ED CR 18-114, how

3

do you plead to Count 1 in the Indictment, charging you with

4

conspiracy, in violation of Title 18, United States Code,

5

Section 371, guilty or not guilty?

6

THE DEFENDANT:

7

THE COURT:

Guilty.

And how do you plead to Count 2,

8

charging you with welding without the required certificate, in

9

violation of Title 49, United States Code, Section 5124, guilty

10

or not guilty?

11

THE DEFENDANT:

12

THE COURT:

Guilty.

How do you plead to Count 4 of the

13

Indictment, charging you with tax evasion, in violation of

14

Title 26, United States Code, Section 7201, guilty or not

15

guilty?

16

THE DEFENDANT:

17

THE COURT:

Guilty.

And in Case No. 21-170, how do you plead

18

to Count 1 in that Indictment, charging you with conspiracy to

19

commit bank fraud while on pretrial release, in violation -- in

20

violation of Title 18, United States Code, Section 1349, guilty

21

or not guilty?

22

THE DEFENDANT:

23

THE COURT:

24

THE DEFENDANT:

25

THE COURT:

Guilty.

And how do you plead to Count 3 -Guilty.

-- in the Indictment, charging you with

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02:45PM

1

bank fraud while on pretrial release, in violation of Title 18,

2

United States Code, Section 1344(2) and 3147, guilty or not

3

guilty?

4

THE DEFENDANT:

5

THE COURT:

the things charged in the Indictments?

7

THE DEFENDANT:

10

THE COURT:

02:47PM

Well, my question is:

Are you pleading

guilty because you did the things that you are accused of?

11

THE DEFENDANT:

12

THE COURT:

Yes.

All right.

I'm going to ask the

13

attorney for the Government to state on the record as to each

14

of these counts what the elements are in general.

15

Now, the Government -- if the case went to trial,

16

the Government would have to prove the elements of each of

17

these counts with certain facts and they have to prove their

18

case beyond a reasonable doubt.

19
02:46PM

I -- I've come to terms with this,

yes.

9

02:46PM

Are you pleading guilty because you did

6

8

02:46PM

Guilty.

20

So we'll start with what the elements are in
general.

21

Mr. O'Brien.

22

MR. O'BRIEN:

Your Honor, the elements for Count 1

23

in the 18-114 case, that is, conspiracy, in violation of

24

Title 18, United States Code, Section 371, are:

25

1.

Beginning on or about a date unknown and ending

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02:47PM

02:47PM

02:47PM

1

on or about April 15th, 2018, there was an agreement between

2

two or more persons to defraud the United States by obstructing

3

the lawful functions of the United States Department of

4

Transportation efforts to investigate and enforce the federal

5

laws and regulations related to out-of-service orders,

6

reincarnated carriers --

7

THE COURT:

8

the elements or the factual basis?

9

MR. O'BRIEN:

10

Did I misunderstand your question?

11

THE COURT:

12

MR. O'BRIEN:

The elements, Your Honor.

No.

The elements.

Okay.

I'm sorry.

Go ahead.

The regulations related to

out-of-service orders, reincarnated carriers, and the R stamp

14

and purging requirements for cargo tank repair work by

15

deceitful or dishonest means;
Second, defendant became a member of the conspiracy

17

knowing of at least one of its objects and intending to help

18

accomplish it; and

19

Third, one of the members of the conspiracy

20

performed at the least one overt act for the purpose of

21

carrying out the conspiracy.

22

02:48PM

Mr. O'Brien, are you reading

13

16

02:48PM

I'm sorry.

The element for Count 2 in the case of 18-114, that

23

is, welding without required certifications, in violation of

24

Title 49, United States Code, Section 5124, and 49 CFR,

25

Section 180.413(a)(1) are:

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2
3

02:48PM

Defendant had knowledge of the facts giving rise

conduct that he caused to take place was unlawful or defendant

6

displayed a deliberate indifference or conscious disregard to

7

the consequences of his conduct.
The elements for Count 4 in the 18-114 case, that

9

is, tax evasion, in violation of Title 26, United States Code,

10

Section 72 -- 7201, are:

13
14
15
16

First, defendant owed federal income tax for a
calendar year;
Second, defendant made an affirmative attempt to
evade or defeat such income tax; and
Third, in attempting to evade or defeat such tax,
the defendant acted willfully.

17

For Count 1 in the second case, 21-170, which is

18

conspiracy to commit bank fraud while -- committed while on

19

pretrial release, in violation of Title 18, United States Code,

20

Sections 1349 and 3147, are:

21
22
23

02:50PM

2.

5

12

02:49PM

federal hazardous materials regulation; and

to the violation and had knowledge that his conduct or the

11

02:49PM

Defendant violated or caused the violation of a

4

8

02:49PM

1.

First, there was an agreement between two or more
persons to commit bank fraud as charged in the Indictment;
Second, defendant became a member of the conspiracy

24

knowing of at least one of its objects and intending to help

25

accomplish it;

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2

performed at least one overt act for the purpose of carrying

3

out the conspiracy; and

4
02:50PM

02:51PM

defendant was on pretrial release in the criminal case of

6

United States versus National Distribution Services, Inc.,

7

5:18-CR-114(B)-VAP, in the United States District Court for the

8

Central District of California.

second case, that is, 21-170, which is bank fraud committed

11

while on pretrial release, in violation of Title 18,

12

United States Code, Sections 1344(2) and 3147, are:

13

First, defendant knowingly carried out a scheme or

14

plan to obtain money or property from a bank by making false

15

statements or promises;

17
18

02:51PM

The elements of the crime charged in Count 3 of the

10

16

02:51PM

Fourth, during the commission of the felony offense,

5

9
02:50PM

Third, one of the members of the conspiracy

Second, defendant knew that the statements or
promises were false;
Third, the statements or promises were material,

19

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

20

capable of influencing a financial institution to part with

21

money or property;

22

Fourth, defendant acted with the intent to defraud;

23

Fifth, the bank was federally insured; and

24

Sixth, during the commission of the felony offense,

25

defendant was on pretrial release in the criminal case of

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02:52PM

02:52PM

1

United States versus National Distribution Services, Inc.,

2

5:18-CR-114(B)-VAP, in the United States District Court for the

3

Central District of California.

4

THE COURT:

Thank you.

5

All right.

Mr. Johansson, did you understand what

6

Mr. O'Brien just said about the elements as to each of these

7

charges?

8

THE DEFENDANT:

9

THE COURT:

Government has to prove -- if your case went to trial, the

11

Government would have to prove each of those elements with

12

facts to prove their case beyond a reasonable doubt.

14

02:52PM

So, next, I'm going to ask Mr. O'Brien -- well,
let's see.

The length -- the factual basis is quite lengthy.

15

MR. O'BRIEN:

16

THE COURT:

17

to the plea agreement; correct?

Yes, Your Honor.

And it's set forth in a separate exhibit

18

MR. O'BRIEN:

19

THE COURT:

20

Do you have a copy of that to show to your client,

21

02:53PM

And as I said a moment ago, the

10

13

02:52PM

Yes.

Yes, Your Honor.

And it's Exhibit 1.

Mr. Werksman?

22

MR. WERKSMAN:

23

THE COURT:

I do, Your Honor.

Okay.

He's seen it.

So there is a document that's

24

attached to the plea agreement that's Exhibit 1, which is

25

17 pages.

And it describes the facts that the Government is

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02:53PM

1

representing that it could prove beyond a reasonable doubt if

2

your case went to trial.

3

Have you read this exhibit?

4

THE DEFENDANT:

5

THE COURT:

6

02:53PM

02:53PM

02:53PM

02:54PM

And have you discussed it with your

attorney?

7

THE DEFENDANT:

8

THE COURT:

9

Yes.

Yes.

Do you wish to have it read to you out

loud now?

10

THE DEFENDANT:

11

THE COURT:

No.

All right.

And do you agree that, if

12

your case went to trial, the Government could prove each of

13

those facts beyond a reasonable doubt?

14

THE DEFENDANT:

15

THE COURT:

16

THE DEFENDANT:

17

THE COURT:

Yes.

Do you understand my question?
Yes.

All right.

And, Mr. Werksman, do you

18

join in agreeing that the Government has the evidence to prove

19

the facts set forth on Exhibit 1 to the consolidated plea

20

agreement beyond a reasonable doubt?

21

MR. WERKSMAN:

22

THE COURT:

23

Excuse me one moment.

24

(Pause in the proceedings.)

25

THE COURT:

Yes, I do.

All right.

All right.

Thank you.

Next, Mr. Johansson, I'm

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02:54PM

1

going to ask you some questions about your medical treatment.

2

So usually at this point is when I would ask any defendant if

3

you're under the care of any doctor, other medical

4

professional.

5

THE DEFENDANT:

6

see, not in -- in the prison here.

7

THE COURT:

8

What conditions are you -- or conditions or

Well, let's start there.

10

doctor?
THE DEFENDANT:

Um, asthma for about 30 years.

12

more recently, in the last ten years or so, it's just

13

A-fibrillation of my heart and then uncontrolled blood

14

pressure, high blood pressure, and COPD.

15

couple of bouts with skin cancer.

16

THE COURT:

Okay.

And

And then I've had a

So the COPD, that's the pulmonary

disease.

18

THE DEFENDANT:

19

THE COURT:

20

Are you currently taking any medicines for any of

21
22
23
24
02:55PM

All right.

illnesses or injuries were you regularly treated for by your

17

02:55PM

I -- I have my own doctors that I

9

11

02:55PM

But you have been; is that correct?

25

Yes.

Congestive -- all right.

these conditions?
THE DEFENDANT:

Yes.

I -- I take about eight pills

a day and my asthma inhalers.
THE COURT:

Okay.

Do you -- let's start with the

hypertension, or the high blood pressure.

Do you take

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1
2

THE DEFENDANT:

3

THE COURT:

4
02:55PM

medication for that?

5

THE DEFENDANT:

7

what the pills look like and what colors they are.
THE COURT:

Okay.

When's the last time you took

those?

10

THE DEFENDANT:

11

THE COURT:

Yesterday.

Do they interfere with your ability to

12

think clearly and understand everything that's happened here

13

today?

14

THE DEFENDANT:

15

THE COURT:
condition.

I don't think so.

All right.

THE DEFENDANT:

18

THE COURT:

19

you take in connection with that?

20

22
23
24
25

It's a beige pill.
THE COURT:

Yes.

Do you know the name of the medication

THE DEFENDANT:
it.

And then you said the heart

Do you take medication for that?

17

21

02:56PM

Lotresamine

and then I -- I've just been taking them so long, I just know

16

02:56PM

There's two of them.

6

9

02:56PM

Do you know the names of the

medications?

8

02:56PM

Yes.

Um, I would probably mispronounce

It's round.
Okay.

Now, do you take that every day

or only as needed?
THE DEFENDANT:

No, I take eight -- eight

prescriptions a day and then my inhalers.

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02:56PM

02:57PM

02:57PM

1

THE COURT:

2

for the heart condition every day?

3

THE DEFENDANT:

4

THE COURT:

02:57PM

So that's something that you take

The asthma inhaler?

No, no.

I'm sorry.

I'm asking about

5

the medication that you told me that you take for your heart

6

condition.

7

THE DEFENDANT:

8

THE COURT:

Yes.

Yes.

And does that interfere with your

9

ability to think clearly and understand everything that's

10

happening here today?

11

THE DEFENDANT:

12

THE COURT:

All right.

The other medications -- you

13

said you take eight medications.

Do you know the names of any

14

of the other medications that you're taking?

15

THE DEFENDANT:

16

THE COURT:

17

THE DEFENDANT:

18

02:57PM

Okay.

I -- I don't think so.

Simvastatin, um --

Is that for the high blood pressure?
No.

That's for cholesterol, high

cholesterol.

19

Honestly, Your Honor, I -- I've been taking these

20

pills so long, I just -- I can't remember the names of them.

21

They've got long medical names.

22

over to a generic one with a different name or whatnot.

23

the pills that the prison's giving me, they look different but

24

they said they're the same, but I don't know what they call

25

them.

And sometimes they'll change

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1
2

02:57PM

02:58PM

4

THE COURT:

5

Yes, Your Honor.

And do any of them affect your ability

to think clearly?

6

THE DEFENDANT:

7

THE COURT:

I don't believe so.

All right.

And I understand -- are

8

there any other conditions or injuries, anything else that

9

you're suffering from?

10

THE DEFENDANT:

Other than my eyesight and just

getting old.

12

THE COURT:

That affects many of us.

13

All right.

Now, you were quarantined because of the

COVID pandemic while you've been incarcerated.

15

THE DEFENDANT:

16

THE COURT:

17

the COVID virus.

Is that right?

Yes, Your Honor.

But you have never been diagnosed with

Is that right?

18

THE DEFENDANT:

19

THE COURT:

20

No, you haven't been diagnosed.

21

02:58PM

But they're all for one or

more of the conditions that you told me about?
THE DEFENDANT:

14

02:58PM

All right.

3

11

02:58PM

THE COURT:

No.

I'm sorry.

I asked my question badly.
Is that -- is that

what you meant?

22

THE DEFENDANT:

23

THE COURT:

Okay.

24

All right.

Are you receiving any psychological or

25

No, I've not gotten coronavirus.
Thank you.

psychiatric care of any kind?

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02:59PM

1

THE DEFENDANT:

2

confinement for almost three months.

And there's no one to

3

talk to and no one to listen to you.

And all you have is just

4

your anxiety and your depression and just a crushing sense of

5

loneliness.

6

three months.

7

02:59PM

All right.

So do you feel that you need

9

this time?

10

away for that.

13

Because I can recommend that you be evaluated right

THE DEFENDANT:

I would just like to -- if I can

just pet my dogs, I'd feel a lot better.
THE COURT:

Well, I'm afraid I can't control that.

14

But it sounds to me, if you're suffering -- you say you're

15

suffering from this anxiety and depression.

16

that -- I am going to direct that you be evaluated for any

17

treatment for those conditions.

18

And I think

All right?

Do you -- again, do you feel that -- what you're

19

suffering from, does that prevent you from understanding what's

20

going on here today?

21

THE DEFENDANT:

22

could just hug my dogs, I'd be fine.

23
24
03:00PM

THE COURT:

to receive and get some psychiatric or psychological care at

12

03:00PM

I was only allowed out one hour a week for almost

8

11

02:59PM

No, but I -- I've been in solitary

25

THE COURT:

I don't think so, but I just -- if I

Well, I -- I understand.

I understand

very well the comfort power of one's pets, one's dogs.
All right.

Do you -- do you understand that if I

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03:01PM

1

accept your guilty plea today, the only thing left in your case

2

is for you to be sentenced?

3

understand that?

4

THE DEFENDANT:

5

THE COURT:

6

03:01PM

03:01PM

Yes.

Okay.

And do you know of any reason why

7

THE DEFENDANT:

8

THE COURT:

9

And, Mr. Werksman, has your client been competent

No.

All right.

Thank you.

10

and able to -- you may remain seated.

11

competent and able to cooperate with you?
MR. WERKSMAN:

Has your client been

Yes, Your Honor, with the exception

13

of his physical unavailability, which I've addressed on the

14

record.

15

Yes, in answer to your question.
THE COURT:

So there was a period of time that you

16

were not able to communicate with your client.

17

have communicated with your client, are you of the opinion that

18

he is competent to proceed today?

19

MR. WERKSMAN:

20

THE COURT:

21

Yes, Your Honor.

in his defense?
MR. WERKSMAN:

23

THE COURT:

25

But when you

Has he been able to cooperate and assist

22

24
03:01PM

Do you

I should not accept your guilty plea today?

12

03:01PM

You will not have a trial.

Very much so.

Have you discussed the facts of both of

these cases in detail with your client?
MR. WERKSMAN:

Yes, I have.

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1

03:02PM

03:02PM

03:02PM

03:02PM

Are you satisfied as to the counts to

2

which he's offering his guilty plea, that there are no

3

meritorious defenses that might apply?

4

MR. WERKSMAN:

5

THE COURT:

6

03:02PM

THE COURT:

Yes.

Are you satisfied that your client's

constitutional rights have been observed in this case?

7

MR. WERKSMAN:

8

THE COURT:

Yes.

Are you -- have you advised

9

Mr. Johansson about the legality or admissibility of any

10

statements, confession, or other evidence in the Government's

11

possession?

12

MR. WERKSMAN:

13

THE COURT:

Yes.

Is your client pleading guilty because

14

of any illegally obtained evidence in the Government's

15

possession that you're aware of?

16

MR. WERKSMAN:

17

THE COURT:

No.

Are you of the opinion that your client

18

understands the nature of the proceedings and the consequences

19

of his guilty pleas?

20

MR. WERKSMAN:

21

THE COURT:

Yes.

We had a long -- well, not a long but we

22

had a detailed discussion with your client just now about the

23

medications and his mental health.

24

about medication, drugs, or other factors that might affect his

25

actions or judgment today?

Has he told you anything

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03:03PM

03:03PM

03:03PM

03:03PM

1

MR. WERKSMAN:

2

THE COURT:

Other than the proceedings here in open

3

court, the contents of the written plea agreement, the

4

consolidated plea agreement, and a general discussion about the

5

Sentencing Guidelines and the 3553(a) factors, have you

6

conveyed any promise of a particular sentence to your client?

7

MR. WERKSMAN:

8

THE COURT:

No.

Based on your analysis of the law, your

9

own investigation of the facts, and after consulting with your

10

client, do you believe it's in his best interest to plead

11

guilty to these charges?

12

MR. WERKSMAN:

13

THE COURT:

14

And, Mr. Johansson, do you feel that you've had

15

enough time to discuss your case and your decision to plead

16

guilty with your lawyer?

17

THE DEFENDANT:

18

THE COURT:

Yes.

All right.

Thank you.

Yes.

Are you satisfied that your lawyer has

19

fully considered any defenses that you may have to these

20

charges?

21

THE DEFENDANT:

22

THE COURT:

23

03:03PM

No.

Yes.

And are you satisfied -- can you turn

the microphone back to him?

24

Are you satisfied with the representation you've

25

received and the advice you've been given by your lawyers?

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03:04PM

03:04PM

03:04PM

03:05PM

03:05PM

1

THE DEFENDANT:

2

THE COURT:

Yes.

All right.

I'm going to make certain

3

findings.

Please listen carefully.

And if there's anything I

4

say that you don't understand or that you disagree with, please

5

interrupt me right away and tell me.

6

THE DEFENDANT:

7

THE COURT:

All right?

Yes.

All right.

The Court has questioned the

8

defendant and his lawyers on the offer of the defendant's plea

9

of guilty to Counts 1, 2, and 4 in Case No. 18-114 and I

10

believe it's counts -- I believe it's Counts 1 and 3 in Case

11

No. 21-170, again, all felonies; and the defendant and his

12

lawyer having told the Court that they have thoroughly

13

discussed all aspects of these charges against the defendant

14

and any defenses that might apply; and the Court having

15

observed the defendant as he answered my questions, and I've

16

had the opportunity to observe his demeanor and manner while he

17

answered questions, as well as his intelligence, and having

18

inquired several times during the proceedings as to whether the

19

defendant feels he is competent to proceed; and the Court also

20

having observed that the defendant does not appear to be under

21

the influence of any medicine, drug, or other substance or

22

factor that would affect his actions or judgment in any manner;

23

the Court finds that the defendant's offer of his plea of

24

guilty to the counts aforementioned in the two Indictments,

25

that the pleas have a factual basis, are free of any coercive

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03:05PM

1

influence of any kind, are voluntarily made with full knowledge

2

of the charges against him and the consequences of his guilty

3

pleas, that no promises of any kind have been made to the

4

defendant by anyone, and no coercion or threats of any kind

5

have been exerted upon him in any manner.

6

03:06PM

03:06PM

03:06PM

So it is ordered that the pleas of guilty to

7

Counts 1, 2 -- 1 and 3 -- I'm sorry -- 1, 2, and 4 in Case

8

No. 18-114 and Counts 1 and 3 in Case No. 21-170 be accepted

9

into the Court's record, entered today's date.

10

And I understand the parties have agreed upon a date

11

next year for sentencing.

12

MR. WERKSMAN:

Just briefly,

13

because there are the tax counts, we have to do a closing

14

agreement with the IRS, which is very time-consuming.

15

Therefore, we're requesting May 9th as a sentencing date for

16

both Mr. Johansson and I will set that for the date for the

17

corporation as well.

18

THE COURT:

19

MR. WERKSMAN:

20

THE COURT:

21

MR. O'BRIEN:

22

24
25

All right.
If that's okay with Your Honor.

That's fine.

May 9th at 9:00 a.m.

That's fine with the Government,

Your Honor.

23

03:06PM

Yes, Your Honor.

Your Honor, I have one very minor clarification to
make.
THE COURT:

Yes.

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03:07PM

1

MR. O'BRIEN:

2

THE COURT:

3

MR. O'BRIEN:

And, Your Honor, excuse me, I may have

4

misunderstood the Court.

But I just want to make clear for the

5

record that the maximum sentence under Title 18, U.S.C., 3147,

6

is ten years and it must be consecutive, but it's not a

7

mandatory ten-year sentence.

8
9
03:07PM

03:07PM

Oh, I'm sorry.

It is a mandatory

consecutive sentence, that's correct.
MR. O'BRIEN:

11

THE COURT:

Thank you.

12

All right.

So the defendant and counsel are ordered

Thank you, Your Honor.

13

to appear on that date and time for sentencing.

14

papers must be filed at least three weeks before the date of

15

sentencing.
All right.

of a plea as to Western?

18

MR. WERKSMAN:

19

THE COURT:

20

22

Yes, Your Honor.

All right.

Mr. Johansson, Western

Distribution, LLC, is a defendant in Case No. 21-170.
Are you authorized to appear on behalf of Western
Distribution, LLC?

23

THE DEFENDANT:

24

THE COURT:

25

Sentencing

Now, do we want to move on to the entry

17

21

03:08PM

Go ahead.

10

16

03:07PM

THE COURT:

May I do that now?

Yes.

And I'm going to ask you questions in

connection with your -- with the corporation's guilty plea.

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03:08PM

03:08PM

03:08PM

03:09PM

1

you understand that you are going to be answering questions on

2

behalf of Western Distribution?

3

THE DEFENDANT:

4

THE COURT:

5

What is your position with Western

Distribution?

6

THE DEFENDANT:

7

THE COURT:

8

THE DEFENDANT:

9

THE COURT:

10

I understand that, before today, you were given a

11

statement of rights that are your rights in connection -- or

12

the company's right -- if I say "you," I mean the company -- in

13

connection with this case.

14

THE DEFENDANT:

15

THE COURT:

Manager.

Do you have an ownership position?
No.

You're the manager?

Did you read and sign that?
I think so.

All right.

Do you have a copy of it?

16

You could hand it to -- do you have a copy of it there?

17

have a copy here.

We

18

MR. WERKSMAN:

19

This is the form that we reviewed and he signed,

20
21
22

03:09PM

Yes.

I'll bring that to Mr. Johansson.

Your Honor.
THE COURT:

All right.

It is being showed to you

now, Mr. Johansson.

23

THE DEFENDANT:

24

THE COURT:

25

read and signed that?

Yes.

All right.

Do you recall now that you

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1

THE DEFENDANT:

2

THE COURT:

3

03:09PM

03:09PM

03:09PM

03:10PM

03:10PM

Yes, Your Honor.

And discussed -- did you discuss it with

your lawyer?

4

THE DEFENDANT:

5

THE COURT:

Yes.

Have you -- have you, that is, the

6

corporation, received a copy of the Indictment in Case

7

No. 21-170?

8

THE DEFENDANT:

9

THE COURT:

10

Yes.

Do you wish to have the Indictment read

out loud to you at this time?

11

THE DEFENDANT:

12

THE COURT:

No.

Do you understand what you're charged

13

with, "you" meaning Western Distribution, what the

14

corporation -- or the company is charged with?

15

THE DEFENDANT:

16

THE COURT:

Yes.

And how do you intend to plead to

17

Counts 1 and 3, charging in that Indictment -- charging -- on

18

behalf of Western Distribution, charging the company with

19

conspiracy to commit bank fraud, in violation of Title 18,

20

United States Code, Section 371, guilty or not guilty?

21

THE DEFENDANT:

22

THE COURT:

Guilty.

And how does the corporation intend to

23

plead to Count 3, charging it with bank fraud, in violation of

24

Title 18, United States Code, Section 1344(2), guilty or not

25

guilty?

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03:11PM

1

THE DEFENDANT:

2

THE COURT:

3

sure I did ask you this already.

4

for the company authorized you to enter this guilty plea?

5
6

03:11PM

03:11PM

THE DEFENDANT:

Has the Board of Directors

Um, I don't know, actually, but I'm

a director so -THE COURT:

8

that with your client?

9

assurance that he is authorized --

10

THE DEFENDANT:

11

THE COURT:

12

So, Mr. Werksman, he -- as you know, he has to be

Do you want to take a moment and discuss
Because I believe I need to have an

I --

Excuse me.

I'm sorry.

13

authorized to speak on their behalf.

14

of Directors, they must have authorized him to enter a plea of

15

guilty.

And if there is a Board

16

(Off-the-record discussion between

17

the defendant and his counsel.)

18

MR. JOHNS:

20
21

If I may, Your Honor, there is also the

small matter of the arraignment or the initial appearance.
THE COURT:

I think I just did the arraignment, the

first few questions I asked.

22

MR. JOHNS:

Very well.

23

THE COURT:

That's my arraignment script or an

24
03:11PM

And I may have asked you this -- I'm not

7

19
03:11PM

Guilty.

25

arraignment script.
MR. JOHNS:

Okay.

Thank you.

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03:12PM

1

THE COURT:

2

THE DEFENDANT:

I believe I'm authorized.

3

MR. WERKSMAN:

Mr. Johansson represents to me that

4

there is not a Board of Directors but that he believes that he

5

is the -- he's the sole director and can agree to this without

6

a meeting because he's the only one who has that authority.

7

THE COURT:

8

MR. WERKSMAN:

9
03:12PM

03:12PM

03:13PM

03:13PM

You're welcome.

All right.
In other words, he is meeting right

now and allowing himself to do this, from what I understand.

10

THE COURT:

All right.

If he is the sole director,

11

he is representing he's authorized on behalf of the

12

corporation, the company.

13

THE DEFENDANT:

14

THE COURT:

Yes.

All right.

You were previously sworn in

15

as a witness.

So you're still under oath, and your questions

16

are made under penalty of perjury -- or your answers are made

17

under penalty of perjury.

18

THE DEFENDANT:

19

THE COURT:

Do you understand that?
Yes.

All right.

And you have given up -- or

20

voluntarily given up your right to have the charge -- the

21

charges in the Indictment read out loud to you now.

22

right?

23

THE DEFENDANT:

24

THE COURT:

25

Is that

Yes.

The corporation has the following

constitutional rights that it would be giving up if it pleads

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1

guilty:

2
3

The right to be represented by -- in fact, not just
the right but the obligation to be represented by a lawyer;

4
03:13PM

5

The right to plead not guilty and to continue
pleading not guilty;

6

To have a speedy and public trial before a jury at

7

which the Government would have the burden of proving guilt

8

beyond a reasonable doubt;

9
03:14PM

03:14PM

10

evidence presented at trial against it and to confront and

11

cross-examine any witness the Government calls to testify at

12

trial;

13

The right to put on a defense, call witnesses to

14

testify on its behalf, to use the Court's subpoena power to

15

compel witnesses to come to court;

16

03:14PM

You have the -- the company, again, has the

17

privilege against self-incrimination, so it can't be forced to

18

testify against its self-interest at trial but has the right to

19

testify if it voluntarily decides to do so;

20
21
22
23

03:14PM

The right to confront -- to see and hear the

And the right, if convicted after a trial, to appeal
the conviction and the sentence to a higher court.
Has your attorney advised the corporation of all of
these rights?

24

THE DEFENDANT:

25

THE COURT:

Yes.

And do you understand all of these

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1

03:15PM

2

THE DEFENDANT:

3

THE COURT:

03:15PM

03:16PM

Do you understand that if I accept

your -- the company's guilty plea, it will have given up its

5

right to a trial and all the other rights that I just

6

described?

7

THE DEFENDANT:

8

THE COURT:
that I described --

THE DEFENDANT:

11

THE COURT:

Yes.

-- a moment ago on behalf of the

company?

13

THE DEFENDANT:

14

THE COURT:

15

Yes.

And do you want to give up those rights

10

12

03:15PM

Yes.

4

9
03:15PM

rights?

Yes.

And have you and your lawyers discussed

everything about the company's involvement in this case?

16

THE DEFENDANT:

17

THE COURT:

Yes.

Has your -- have your lawyers advised

18

you about the nature of the charges against the company and

19

possible defenses that could apply?

20

THE DEFENDANT:

21

THE COURT:

Yes.

I'm going to ask the attorneys for the

22

Government to state on the record the maximum penalties as to

23

the company.

24

Mr. Johns.

25

MR. JOHNS:

Yes, Your Honor.

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1

03:16PM

03:16PM

03:17PM

03:17PM

03:17PM

The statutory maximum sentence that the Court can

2

impose for a violation of Title 18, United States Code,

3

Section 1349, as charged in Count 1 of the relevant Indictment

4

is:

5

resulting from the offense, whichever is greatest, a five-year

6

period of probation, and a mandatory special assessment of

7

$400.

A fine of $1 million or twice the gross gain or gross loss

8

With respect to Count 3 of the relevant Indictment,

9

the statutory maximum sentence that the Court can impose for a

10

violation of 18, United States Code, Section 1344(2), is a fine

11

of $1 million or twice the gross gain or gross loss resulting

12

from the offense, whichever is greatest, a five-year period of

13

probation, and a mandatory special assessment of $400.

14

Therefore, Your Honor, the total maximum sentence

15

for both of the offenses to which the defendant has agreed to

16

plead guilty is as follows:

17

gross gain or gross loss resulting from the offenses, whichever

18

is greatest, a five-year period of probation, and a mandatory

19

special assessment of $800.

20

THE COURT:

A fine of $2 million or twice the

Those are the penalties, the maximum

21

penalties that the company is facing.

22

THE DEFENDANT:

23

THE COURT:

Do you understand that?

Yes.

And, again, as I told you in connection

24

with your individual guilty plea, after today, a presentence

25

report as to the company will be prepared.

And you on behalf

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1

of the company have the right to see that report, discuss it

2

with your lawyer.

3

03:18PM

The guide -- well, there are no guidelines for when

4

it's a -- when it's a corporation who's pleading guilty.

5

that correct?

6

03:18PM

MR. JOHNS:

the United States Sentencing Guidelines, Your Honor, there are,

8

in fact, Sentencing Guidelines that apply to the calculation of

9

the culpability score, which then assists the Court in

10

determining the amount of the fine.
THE COURT:

The amount of the fine.

13

MR. JOHNS:

Yes.

14

THE COURT:

All right.

12

03:18PM

03:19PM

There actually are -- under Chapter 8 of

7

11

03:18PM

Is

I'm sorry.

Thank you.

So there will be a

15

presentence report dealing mainly with the amount of the fine

16

in connection with the company's actions in connection with

17

this case.

18

it with your lawyers before you're sentenced.

You have the right to see that report and discuss

19

Has anyone made any threats against the company or

20

anyone else in order to get you to enter a plea of guilty on

21

behalf of Western?

22

THE DEFENDANT:

23

THE COURT:

No.

Other than the plea agreement, other

24

than what's happened in court this afternoon, and other than a

25

discussion with your lawyer about the Sentencing Guidelines,

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03:19PM

03:19PM

03:19PM

1

has anyone -- apart from those things, has anyone promised you

2

what sentence the company would receive?

3

THE DEFENDANT:

4

THE COURT:

03:20PM

Do you feel that you understand

5

everything that's happened and been discussed today on behalf

6

of the company?

7

THE DEFENDANT:

8

THE COURT:

9

the company of the guilty plea?

Yes.

And you understand the consequences to

10

THE DEFENDANT:

11

THE COURT:

Yes.

And do you feel on behalf of the company

12

that you're competent and able to make the decision to plead

13

guilty?

14

THE DEFENDANT:

15

THE COURT:

16

03:19PM

No.

Yes.

And, again, on behalf of the company, is

your decision to plead guilty entirely voluntary on your part?

17

THE DEFENDANT:

18

THE COURT:

Yes.

Again, you have the right to have the

19

charges against Western read out loud to you at this time.

20

you wish to have the charges in the Indictment read to you?

21

THE DEFENDANT:

22

THE COURT:

Do

No.

All right.

As to Count 1, charging you

23

with a conspiracy to commit -- charging you on behalf of the

24

company with conspiracy to commit bank fraud, in violation of

25

Title 18, United States Code, Sections 371 and 1349, how do you

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1

03:20PM

2

THE DEFENDANT:

3

THE COURT:

5

Section 1344(2), how do you plead on behalf of the company,

6

guilty or not guilty?

7

THE DEFENDANT:

8

THE COURT:

03:21PM

Guilty.

And are you pleading guilty on behalf of

the company because it did what it's charged in Counts 1 and 3?

10

THE DEFENDANT:

11

THE COURT:

Yes.

All right.

Mr. -- is it Mr. Johns?

Will you read the elements of the charges, please?

13

MR. JOHNS:

14

Your Honor, with respect to the crime charged in

Absolutely, Your Honor.

15

Count 1, that is, conspiracy to commit bank fraud, in violation

16

of Title 18, United States Code, Section 1349, the following

17

must be proven:

18

03:21PM

And as to Count 3, charging Western with

bank fraud, in violation of Title 18, United States Code,

12

03:20PM

Guilty.

4

9
03:20PM

plead, guilty or not guilty?

First, there was an agreement between two or more

19

persons to commit bank fraud as charged in the Indictment;

20

Second, that one or more employees of defendant

21

became a member of the conspiracy, knowing of at least one of

22

its objects and intending to help accomplish it;

23

Third, that defendant's employees that participated

24

in the conspiracy were at that time operating within the scope

25

of their employment with the defendant and motivated, at least

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03:21PM

1

in part, by an attempt to benefit defendant's business

2

operations; and.

3

Finally, fourth, one of the members of the

4

conspiracy performed at least one overt act for the purpose of

5

carrying out the conspiracy.

6

03:21PM

03:22PM

Your Honor, with respect to Count 3 of the

7

Indictment, that is bank fraud, charged in violation of 18,

8

United States Code, Section 1344(2), the elements are as

9

follows:

10

First, one or more of defendant's employees

11

knowingly carried out a scheme or plan to obtain money or

12

property from a bank by making false statements or promises;

13

2.

14

or promises were false;

15

3.

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

17

influencing a financial institution to part with money or

18

property;

20
21

03:22PM

The statements or promises were material, that

16

19
03:22PM

Defendant's employees knew that the statements

4.

Defendant's employees acted with the intent to

5.

The employees was or were operating within the

defraud;

22

scope of his or their employment with the defendant corporation

23

and motivated, at least in part, by an attempt to benefit

24

defendant's business operations at the time the scheme or plan

25

was carried out; and

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1
2

Finally, sixth, Your Honor, the bank was federally
insured.

3
4
03:23PM

THE COURT:

03:23PM

03:23PM

03:23PM

Mr. Johansson, on behalf of

Western, do you understand what those elements are?

5

THE DEFENDANT:

6

THE COURT:

Yes.

Again, just as we did with your

7

individual plea, I'm going to ask the attorney for the

8

Government -- well, I'm going to do the same thing.

9
03:23PM

All right.

Actually, there's a lengthy statement of facts

10

that's attached to the plea agreement as to -- in Case

11

No. 21-170 as to Western.

12

facts?

Have you read that statement of

13

THE DEFENDANT:

Yes.

14

THE COURT:

15

THE DEFENDANT:

16

THE COURT:

17

facts read out loud again now?

And discussed it with your attorney?
Yes.

Do you wish to have that statement of

18

THE DEFENDANT:

19

THE COURT:

No.

Do you agree that, if the Government --

20

if your case went to trial, the Government could prove those

21

facts in the statement of facts attached to the plea agreement

22

beyond a reasonable doubt?

23

THE DEFENDANT:

24

THE COURT:

25

Mr. Werksman, do you join in agreeing that the

Yes.

Thank you.

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03:24PM

03:24PM

1

Government has the evidence in this case to prove the facts in

2

Exhibit 1 to the plea agreement for Western Distribution beyond

3

a reasonable doubt?

4

MR. WERKSMAN:

5

THE COURT:

6

Mr. Johansson, I've already asked you in detail in
connection with your guilty plea as an individual about the

8

treatment you're receiving from your doctors.

9

anything different that I should know in connection with your

10

guilty plea on behalf of Western?
THE DEFENDANT:

Just I'm not the -- after the

three months of solitary confinement, I'm just -- just

13

shattered.
THE COURT:

All right.

And as we discussed earlier,

15

I'm going to direct that you be evaluated for treatment for

16

your mental health conditions of depression, anxiety, whatever.

17

But are you able to think clearly and understand all

18

of my questions?

19

THE DEFENDANT:

Yes.

It's just that, um, the

20

solitary confinement is -- is really, really bad.

21

21 days at one place where there was no light bulb inside the

22

cell.

23

03:25PM

No.

Is there

12

14

03:25PM

Thank you.

7

11

03:24PM

Yes, Your Honor.

It was dark the whole time.
THE COURT:

I had

It's just not right.

Well, I understand, I believe what

24

you're telling me.

My question is:

As a result of what you've

25

told me that you suffered, do you -- do you feel that you're

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03:25PM

03:26PM

03:26PM

03:26PM

1

able to understand my questions, understand the consequences of

2

your guilty plea, and understand everything that's happening

3

here?

4

THE DEFENDANT:

5

THE COURT:

All right.

And, again, on behalf of the

6

company, you understand that, if I accept your -- the company's

7

guilty pleas, there won't be a trial, the only thing left would

8

be sentencing?

9

THE DEFENDANT:

10

THE COURT:

Yes.

Do you know of any reason why the

11

Court -- why I should not accept Western's guilty plea to

12

Counts 1 and 3 today?

13

THE DEFENDANT:

14

THE COURT:

No.

And, again, the same questions I asked

15

you earlier, Mr. Werksman, is your client competent and able to

16

cooperate with you?

17

MR. WERKSMAN:

18

THE COURT:

Yes.

You've discussed the facts of the case

19

in detail with him and you're satisfied there are no

20

meritorious defenses to be raised?

21

MR. WERKSMAN:

22

THE COURT:

23

03:26PM

Yes.

Yes, Your Honor, that's correct.

You're satisfied that his constitutional

rights have been observed?

24

MR. WERKSMAN:

25

THE COURT:

Absolutely.

You have -- have you advised your client

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03:27PM

03:27PM

03:27PM

03:27PM

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about the legality and admissibility of any statement,

2

confession, or other evidence obtained from the company?

3

MR. WERKSMAN:

4

THE COURT:

Yes.

Is your client pleading guilty because

5

of any illegally obtained evidence in the Government's

6

possession?

7

MR. WERKSMAN:

8

THE COURT:

No.

And are you of the opinion that

9

Mr. Johansson on behalf of the company understands the nature

10

of the proceedings and the consequences of the company's guilty

11

pleas?

12

MR. WERKSMAN:

13

THE COURT:

Yes.

Has he -- other than -- has he told you

14

anything about medication, drugs, or other factors that might

15

affect his actions or judgment today?

16

MR. WERKSMAN:

17

THE COURT:

No.

Other than the proceedings in open

18

court, the contents of the plea agreement, and a general

19

discussion of the Sentencing Guidelines and the 3553(a)

20

factors, have you conveyed any promise of a particular sentence

21

to the corporation?

22

MR. WERKSMAN:

23

THE COURT:

No.

And based on your analysis of the law,

24

your own investigation of the facts, and after consulting with

25

your client, do you believe it's in its best interest to plead

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guilty to these charges?

2

MR. WERKSMAN:

3

THE COURT:

4

Mr. Johansson, on behalf of the company, do you feel

5

that you've had enough time to discuss the case in general and

6

the decision to plead guilty with your lawyer?

03:28PM

THE DEFENDANT:

8

THE COURT:

03:28PM

Yes.

You want to turn the microphone back

around to him?

10

Are you satisfied that your lawyer has fully

11

considered any defenses the company might have to these

12

charges?

13

THE DEFENDANT:

14

THE COURT:

Yes.

Are you satisfied with the

15

representation your lawyers have given you and the advice that

16

they have given you?

17

THE DEFENDANT:

18

THE COURT:

19
03:28PM

Thank you.

7

9
03:28PM

Yes.

20

going to make findings.
MR. JOHNS:

Yes.

All right.

The Court -- again, I'm

And if you -- Mr. Johns?
I may be getting ahead of the Court.

21

Would you like me to cover the waiver of appeal of conviction

22

and the mutual waiver of appeal of sentence?

23

THE COURT:

I'm sorry.

Did I not go through that?

24

MR. JOHNS:

I do not believe you did.

25

THE COURT:

Okay.

Thank you.

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You're right, I did not.

2

So turning to the plea agreement for Western

3

03:28PM

03:29PM

03:29PM

03:29PM

03:30PM

Distribution, LLC, page -- starting at page 10, paragraph 18.

4

MR. JOHNS:

9 in paragraph 17, Your Honor.

5

THE COURT:

Oh, that's right.

6

All right.

On behalf -- the plea agreement that you

Paragraph 17, page 9.

7

signed, Mr. Johansson, says that on behalf of the company you

8

have agreed to give up the company's right to appeal its

9

conviction on these two counts and the only exception to that

10

would be an appeal based on a claim that your guilty plea was

11

involuntary.

12

Do you understand?

13

THE DEFENDANT:

14

THE COURT:

15

THE DEFENDANT:

16

THE COURT:

Yes.

And do you agree to that?
Yes.

Then in the following paragraph,

17

paragraph 18, page 10, on behalf of the company you've agreed

18

that, so long as the sentence is within the statutory maximum

19

that we described, which involves probation and the fine that

20

the attorneys for the Government put on the record a moment

21

ago, as long as the sentence you receive is within that

22

statutory maximum, you're giving up your right to appeal the

23

way I calculated the sentence, any fine that's imposed on the

24

company, provided it's within the maximum the law provides; to

25

the extent allowed by the law, you're giving up your right to

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appeal based on the constitutionality or legality of your

2

sentence, and any term of probation, again, provided that it is

3

within the statutory maximum, and the conditions of any

4

probation that are set forth in the Court's Second Amended

5

General Order 20-04.

6
7

03:30PM

03:31PM

03:31PM

03:31PM

So those are the rights the company is giving up in
terms of its appeal rights.

Do you understand that?

8

THE DEFENDANT:

Yes.

9

THE COURT:

10

THE DEFENDANT:

11

THE COURT:

Thank you, Mr. Johns.

12

All right.

The Court has questioned the defendant

And you agree to that?
Yes.

13

and his counsel on the offer of Defendant Western Distribution,

14

LLC's plea of guilty to Counts 1 and 3 of the Indictment, both

15

felonies; the defendant and counsel have told the Court that

16

they have thoroughly discussed all aspects of the charges and

17

any defenses that might apply; the Court having observed the

18

defendant while he answered the questions on behalf of the

19

corporations and having observed his demeanor, manner, and

20

intelligence while doing so, having inquired of the defendant

21

his understanding of the Court's questions and his ability to

22

proceed today; the Court having observed that the defendant

23

doesn't appear to be under the influence of any medicine, drug,

24

or other substance or factor that might affect his actions on

25

behalf of the corporation or the company in any manner.

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03:32PM

Therefore, the Court finds that the defendant's

2

offer of its plea of guilty to Counts 1 and 3 in the Indictment

3

have a factual basis, are free of any coercive influence of any

4

kind, are voluntarily made with full knowledge of the charges

5

against it and the consequences of the guilty pleas; that no

6

promises of any kind have been made to it by anyone, no

7

coercion or threats of any kind have been exerted upon it in

8

any manner.

9
03:32PM

And it is ordered that the plea of guilty to

10

Counts 1 and 3 of the Indictment on behalf of Western

11

Distribution, LLC, are accepted and entered into the Court's

12

record.

13
14
03:32PM

03:32PM

03:32PM

And the same date for sentencing, which is May 9th,
2022, at 9:00 a.m.

15

All right.

Anything further?

16

MR. WERKSMAN:

Two small housekeeping matters.

One,

17

Your Honor, is I received a notification yesterday that one of

18

the U.S. magistrate judges set an arraignment for Western on

19

October 27th.

20

vacated.

I would simply ask that any other dates be

21

THE COURT:

22

MR. WERKSMAN:

23

detail with regard to the first case.

24

exonerated.

25

THE COURT:

Yes.
And finally, there's one other major
His bond needs to be

Oh, it hasn't been?

It should have been

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1

exonerated when he was taken into custody.

2
3

03:33PM

THE COURT:

5

MR. WERKSMAN:

6

With the Court's permission, if we're concluded with

03:34PM

That will be so ordered.
Thank you, Your Honor.

this part of it --

8

THE COURT:

9

MR. WERKSMAN:

10

appointment.

11

corporate pleas.

Yes.
-- I'm going to go to a doctor's

Ms. Sosa will remain to oversee the pleas on the

THE COURT:

And I believe counsel for the

13

corporations are present.

14

MR. WERKSMAN:

15

May I be excused?

16

THE COURT:

17

MR. WERKSMAN:

18

THE COURT:

So we need to take a recess, I

20

MR. JOHNS:

That's correct.

21

THE COURT:

And I don't have copies of those plea

19
03:33PM

Could the

Court just make sure there's an order?

12

03:33PM

But it wasn't, Your Honor.

4

7

03:33PM

MR. WERKSMAN:

They're all here.

Yes, you are.
Thank you.

understand.

22

agreements.

So you will provide those to me because I'll need

23

to review them.

24

All right.

We'll resume when you're all ready.

25

THE COURTROOM DEPUTY:

All rise.

This court is in

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recess.
(Proceedings concluded at 3:34 p.m.)

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UNITED STATES DISTRICT COURT


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CERTIFICATE OF OFFICIAL REPORTER

2
3

COUNTY OF LOS ANGELES

4

STATE OF CALIFORNIA

)
)
)

5
6

I, MYRA L. PONCE, FEDERAL OFFICIAL REALTIME COURT

7

REPORTER, IN AND FOR THE UNITED STATES DISTRICT COURT FOR THE

8

CENTRAL DISTRICT OF CALIFORNIA, DO HEREBY CERTIFY THAT PURSUANT

9

TO SECTION 753, TITLE 28, UNITED STATES CODE THAT THE FOREGOING

10

IS A TRUE AND CORRECT TRANSCRIPT OF THE STENOGRAPHICALLY

11

REPORTED PROCEEDINGS HELD IN THE ABOVE-ENTITLED MATTER AND THAT

12

THE TRANSCRIPT PAGE FORMAT IS IN CONFORMANCE WITH THE

13

REGULATIONS OF THE JUDICIAL CONFERENCE OF THE UNITED STATES.

14
15
16
17

DATED THIS 12TH DAY OF SEPTEMBER, 2022.

18
19
20

/S/ MYRA L. PONCE

21

MYRA L. PONCE, CSR NO. 11544, CRR, RDR
FEDERAL OFFICIAL COURT REPORTER

22
23
24
25

UNITED STATES DISTRICT COURT

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