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Home Court filings U.S. v. Gladys Harun Change of Plea Hearing Transcript — United States v. Gladys Harun (3:23-cr-3)

Court filing

Change of Plea Hearing Transcript — United States v. Gladys Harun (3:23-cr-3)

Summary

A change of plea transcript in United States v. Gladys Harun, Case No. 3:23CR3, in the U.S. District Court for the Southern District of Georgia, Dublin Division, held April 27, 2023 before the Honorable Dudley H. Bowen, Jr. and filed October 16, 2024 as Document 47. The clerk calls the case for initial appearance, arraignment, and plea to a felony information, with L. Alexander Hamner for the United States and Mohammed S. Luwemba for the defendant. The court places the defendant under oath, questions her about her background and her understanding of the Plea Agreement and the Information, and finds her competent to enter a plea. It explains how an information differs from an indictment, takes a signed waiver of grand jury consideration, and asks the prosecutor to summarize the five-page Information. The transcript is 49 pages and its index lists one witness and no exhibits offered.

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. 3:23-cr-00003-DHB-BKE · Doc. 47 · Docket on CourtListener

Full text

Case 3:23-cr-00003-DHB-BKE   Document 47   Filed 10/16/24   Page 1 of 49




                      UNITED STATES DISTRICT COURT
                      SOUTHERN DISTRICT OF GEORGIA
                             DUBLIN DIVISION


  United States of America,     )
                                )
            Plaintiff,          )
                                )
       vs.                      )          Case No. 3:23CR3
                                )
  Gladys Harun,                 )
                                )
            Defendant.          )
  ______________________________)


                            CHANGE OF PLEA
               BEFORE THE HONORABLE DUDLEY H. BOWEN, JR.
                  UNITED STATES DISTRICT COURT JUDGE
                  THURSDAY, APRIL 27, 2023; 10:34 A.M


  FOR THE PLAINTIFF:

        L. Alexander Hamner, Esquire
        U.S. Attorney's Office
        22 Barnard Street, Suite 300
        Savannah, Georgia 31401
        (912)652-4422

  FOR THE DEFENDANT:

        Mohammed S. Luwemba, Esquire
        Luwemba Law, LLC
        2296 Henderson Mill Road, Suite 304
        Atlanta, Georgia 30345
        (770)545-9251

  OFFICIAL COURT REPORTER:

        Lisa H. Davenport, RPR, FCRR
        Post Office Box 5485
        Aiken, South Carolina 29804
        (706)823-6468
Case 3:23-cr-00003-DHB-BKE   Document 47     Filed 10/16/24   Page 2 of 49




                                     INDEX

  WITNESS                      DIRECT        CROSS    REDIRECT      RECROSS


  Brian Truax,

        By Mr. Hamner           33




                                  EXHIBITS

  NO.         IDENTIFICATION                              EVD.




                               (None offered)
     Case 3:23-cr-00003-DHB-BKE    Document 47       Filed 10/16/24   Page 3 of 49

                                                                                       3


 1          (Call to Order at 10:34 a.m.)

 2               THE COURT:       Call the case.

 3               THE CLERK:       Case 3:23CR3, United States of America

 4     versus Gladys Harun, is called for initial appearance,

 5     arraignment, and plea to a felony information.                 Representing

 6     the United States, Alex Hamner.           Representing defendant,

 7     Mohammed Luwemba and Teri Thompson.

 8               MS. THOMPSON:       Yes, ma'am.       I'm here.

 9               THE CLERK:       Yes.

10               THE COURT:       Good morning, Counsel.

11               MR. LUWEMBA:       Good morning.

12               MR. HAMNER:       Good morning, Your Honor.

13               THE COURT:       I want to make sure I have the name right.

14               Are you Ms. Gladys Harun?

15               THE DEFENDANT:          Yes, sir.

16               THE COURT:       Is that the way you say it?

17               THE DEFENDANT:          Yes, Your Honor.

18               THE COURT:       All right.     Ms. Harun, in order to make

19     sure that I am getting the most reliable information under the

20     circumstances I am going to place you under oath.

21          (Gladys Harun is duly sworn.)

22               THE COURT:       Ms. Harun, I have before me a Plea

23     Agreement and, of course, something called an Information.                    Are

24     you familiar with this terminology?

25               THE DEFENDANT:          (Shakes head.)
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 4 of 49

                                                                                   4


 1                THE COURT:      You're not?

 2                MR. LUWEMBA:      Can you repeat the question, Judge?

 3                THE COURT:      My question is are you familiar with the

 4     terminology of Plea Agreement and --

 5                THE DEFENDANT:      Yes, sir, I do.

 6                THE COURT:      -- Information?

 7                THE DEFENDANT:      Yes, sir, I do.

 8                THE COURT:      All right.     Ms. Harun, as you know you

 9     have been indicted in this district and I am told that today

10     your purpose is to plead guilty to an Information which is an

11     accusation brought by the United States Attorney, thus

12     resolving any issue with the Indictment.            Is that a fair

13     summary?

14                THE DEFENDANT:      Yes, Your Honor.

15                THE COURT:      Recalling that you're under oath, I will

16     now ask you a few questions about what we're doing.               You are

17     Gladys Harun and you originally came from Kenya; is that right?

18                THE DEFENDANT:      Yes, Your Honor.

19                THE COURT:      And you're now a naturalized citizen of

20     the United States of America; is that correct?

21                THE DEFENDANT:      Yes, Your Honor.

22                THE COURT:      All right.     How old are you, Ms. Harun?

23                THE DEFENDANT:      I'm 44, Your Honor.

24                THE COURT:      How many is that?

25                THE DEFENDANT:      44.
     Case 3:23-cr-00003-DHB-BKE    Document 47       Filed 10/16/24    Page 5 of 49

                                                                                           5


 1               THE COURT:       44.

 2               THE DEFENDANT:         Yes, Your Honor.

 3               THE COURT:       Tell me about your educational background.

 4               THE DEFENDANT:         I have been a teacher in Kenya and I

 5     came over here for some years in Atlanta and then went to

 6     Eastman, Georgia where I taught special education and then I

 7     started doing taxes and went into business.                I have a master's

 8     degree.   I have a PhD degree in education and I have tax

 9     training from the IRS.           That's it.

10               THE COURT:       What was the last thing?

11               THE DEFENDANT:         Tax training.      I'm sorry for my

12     accent.

13               THE COURT:       No need to be sorry for it.             It's a

14     natural product of where you're from.              Okay.       Fine.

15               THE DEFENDANT:         Yes, sir.

16               THE COURT:       Tax training?

17               THE DEFENDANT:         Yes, sir.

18               THE COURT:       Tell me about that tax training.

19               THE DEFENDANT:         I had a business since 2017 whereby I

20     was hiring people in Dublin, Warner Robbins, and Macon.                     I had

21     a total of 12 locations and then I lost everything when I got

22     incarcerated.

23               THE COURT:       You had, in fact, do I recall 12 locations

24     with Jackson Hewitt; is that right?

25               THE DEFENDANT:         Yes, sir.     I used to hire like 55
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24   Page 6 of 49

                                                                                    6


 1     people every year.

 2                THE COURT:      Now I actually asked you about your

 3     education and you gave me your education and a good bit of work

 4     experience which is fine because that's the next question is

 5     work experience.     Is there anything you left out of your work

 6     experience?    Do you want to tell me about anything else you've

 7     done?

 8                THE DEFENDANT:      Over the years I have been helping my

 9     father with the school in Kenya.          My father has a school that

10     helps orphans in Kenya.        So whenever I used to generate my

11     money from Jackson Hewitt I would support children every year

12     so they can go to school.

13                THE COURT:      And in what part of Kenya does your father

14     operate this school?

15                THE WITNESS:      It is called Nyandarua.       It is in the

16     central region of Kenya.

17                THE COURT:      Is it in a large city?

18                THE DEFENDANT:      No.   It is deep in the villages.          It's

19     in the rural areas, very rural areas.

20                THE COURT:      You are currently incarcerated; is that

21     correct?

22                THE DEFENDANT:      Yes, Your Honor.

23                THE COURT:      And have you had any alcohol, drugs,

24     medicines or pills in the last 24 hours?

25                THE DEFENDANT:      No, Your Honor.
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 7 of 49

                                                                                        7


 1               THE COURT:       Mr. Luwemba, during your contacts,

 2     interviews with this client have you discovered any reason to

 3     doubt her competence?

 4               MR. LUWEMBA:       No.   No, Your Honor.

 5               THE COURT:       Mr. Hamner, I don't know if you've done

 6     any debriefing or anything, but you have been following this

 7     case since its origins in the Indictment.            Apart from the

 8     allusions to some psychiatric care that was brought up in one

 9     of the orders, have you discovered any reason to doubt her

10     competence?

11               MR. HAMNER:       No, Your Honor, I have not.

12               THE COURT:       Well, more importantly, Ms. Harun, I want

13     to make a finding whether you're competent or not competent.

14     In your opinion are you competent to make rational decisions

15     about what you're doing in your life and in your business?

16               THE DEFENDANT:       Yes, Your Honor.

17               THE COURT:       I agree with counsel and Ms. Harun.             She

18     is admittedly somewhat nervous.           Anyone would be under the

19     circumstances.    Nevertheless, she is articulate.            She is

20     responsive to my questions.         She is lucid in every respect that

21     I can observe.    She is attentive to the proceedings and

22     regularly conferring with counsel as necessary.              Upon these

23     observations and the assurances of counsel, I find this

24     defendant, Gladys Harun, to be competent to enter a plea if

25     that is her wish.
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 8 of 49

                                                                                        8


 1               Have you had enough time to discuss your case in

 2     general and in specifics with your lawyer, Ms. Harun?

 3               THE DEFENDANT:       Yes, Your Honor.

 4               THE COURT:       And are you entirely satisfied with your

 5     lawyer's preparation and his handling of your case?

 6               THE DEFENDANT:       Yes, Your Honor.

 7               THE COURT:       Now, as we talked about earlier,

 8     Ms. Harun, earlier in this case there was an Indictment and

 9     you've been through some various proceedings relative to that

10     Indictment.    Now we're talking about an Information which is --

11     I've always thought it a somewhat unusual word to describe an

12     accusation by a prosecutor, but that's what the federal system

13     does and this is an accusation that's being made in connection

14     with your plea negotiations, but it's being made by the United

15     States Attorney.

16               It's different from an indictment in this way.               The

17     Indictment was the product of a grand jury consideration.                  The

18     grand jury met, received evidence from the United States

19     Attorney, and they decided to return an Indictment -- an

20     accusation of various federal criminal charges.              Here no grand

21     jury has considered this accusation.           This accusation emerges

22     from the negotiations of counsel.

23               Now are you with me so far?

24               THE DEFENDANT:       Yes, sir.

25               THE COURT:       Do you understand all of that?
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 9 of 49

                                                                                  9


 1                THE DEFENDANT:      I do, Your Honor.

 2                THE COURT:      And may I assume correctly that you have

 3     been in regular contact with your lawyer about those

 4     negotiations resulting in this Information?

 5                THE DEFENDANT:      Yes, Your Honor.

 6                THE COURT:      Ms. Harun, while this is the product --

 7     this Information is the product -- of negotiations, it is still

 8     and it remains an accusation of serious federal criminal

 9     charges.    There is nothing minor league about this Information.

10     Do you understand that?

11                THE DEFENDANT:      Yes, Your Honor.

12                THE COURT:      Okay.   Ms. Harun, anybody who is charged

13     with a felony crime in this country is entitled to have the

14     matter considered by a grand jury.           This Information has not

15     been considered by a grand jury -- only as a result of the

16     prosecution looking at it, talking with your lawyer, and they

17     drew this up in concert with one another, really.               Do you

18     understand that?

19                THE DEFENDANT:      Yes, Your Honor.

20                THE COURT:      Now I am going to be as direct as I can.

21     You always have the right to have a grand jury consider any

22     federal felony criminal charge.           By presenting this in the way

23     that you have done, you are telling me in this Plea Agreement

24     that you wish to waive and give up any consideration by a grand

25     jury.   Do you understand that?
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 10 of 49

                                                                                   10


 1                THE DEFENDANT:      Yes, Your Honor.

 2                THE COURT:      And you know you have the right to that,

 3      but, nevertheless, you wish to waive it, give it up, and go

 4      ahead with the U.S. Attorney's accusation; is that right?

 5                THE DEFENDANT:      Yes, Your Honor.

 6                THE COURT:      Okay.   Let's get a written waiver on the

 7      record.   I think it might be right -- no.           That's it.     It's the

 8      second paper down.

 9                Ms. Harun, I'll pass that to you through the Court

10      Security Officer.      Now what I'm looking at here, Ms. Harun,

11      is -- quite frankly, I can't read anything from your signature,

12      but this emblem that you have placed on this paper -- is that

13      your signature?

14                THE DEFENDANT:      Yes, Your Honor.

15                THE COURT:      Mr. Luwemba, may I ask you the same thing?

16                MR. LUWEMBA:      Yes, sir.

17                THE COURT:      Is that your signature?

18                MR. LUWEMBA:      Yes, Your Honor.

19                THE COURT:      All right.     I will verify the paper

20      document itself by putting my more legible signature on it.

21      All right.   Let it be filed.

22                THE CLERK:      Yes, sir.

23                THE COURT:      Well, we are talking about the Information

24      now.   By the way, through other litigation, Ms. Harun, I have

25      known the name Gladys Chege and that name changed through
     Case 3:23-cr-00003-DHB-BKE     Document 47    Filed 10/16/24   Page 11 of 49

                                                                                     11


 1      marriage, did it?

 2                THE DEFENDANT:       Yes, Your Honor.

 3                THE COURT:      And how long ago was that?

 4                THE DEFENDANT:       I changed the name in 2012.

 5                THE COURT:      In 2012?

 6                THE DEFENDANT:       Yes, Your Honor.

 7                THE COURT:      All right.      How did you pronounce that?

 8                THE DEFENDANT:       Chege.

 9                THE COURT:      Chege?

10                THE DEFENDANT:       Yes.

11                THE COURT:      I will see if I can remember that because

12      I have dealt with it on other occasions.             It was a -- you

13      changed it in 2012, but were you still using Chege up until a

14      certain time in your business transactions?

15                THE DEFENDANT:       Yes, in my business I had started my

16      maiden name Chege.        Chege is my father's name.

17                THE COURT:      Okay.

18                THE DEFENDANT:       Yes, Your Honor.

19                THE COURT:      How long did you use Chege?

20                THE DEFENDANT:       Oh, for a long time.         I came to the

21      U.S. in 2005.    I have been using that name until 2012 when I

22      officially changed my name to the married name.

23                THE COURT:      I know when you changed it.          You told me

24      you changed it, but how long did you use it?

25                THE DEFENDANT:       Maybe three or four years.
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 12 of 49

                                                                                   12


 1                MR. LUWEMBA:      She used the Chege name until 2017 in

 2      the business.

 3                THE COURT:      That's what I am trying to get from her,

 4      Mr. Luwemba.

 5                MR. LUWEMBA:      Yes, sir.     Oh, sorry, Judge.

 6                THE COURT:      Not your testimony.      What about it,

 7      Ms. Chege?     How long did you use the name Chege?

 8                THE DEFENDANT:      Until 2017.

 9                THE COURT:      2017.

10                THE DEFENDANT:      Yes, sir.

11                THE COURT:      Okay.   Thank you.     And I understand from

12      your point of view you're trying to be very precise and I am,

13      too, from my point of view.        So we'll work it through.

14                Mr. Hamner?

15                MR. HAMNER:      Yes, Your Honor.

16                THE COURT:      I'm about to ask you to summarize this

17      Information for me because you are the one that chose to write

18      up a five-page Information.        Are you prepared to do that?

19                MR. HAMNER:      I can do that, Your Honor.

20                THE COURT:      All right.     Well, first of all, let me ask

21      Ms. Harun a couple of more questions.

22                Ms. Harun, how many times have you been over this

23      Information?

24                THE DEFENDANT:      Just one time.

25                THE COURT:      One time.     When was that?
     Case 3:23-cr-00003-DHB-BKE    Document 47       Filed 10/16/24   Page 13 of 49

                                                                                      13


 1                THE DEFENDANT:         He came like a month ago.

 2                THE COURT:      Have you talked about it more than once by

 3      telephone or otherwise?

 4                THE DEFENDANT:         We talked a little this morning.

 5                THE COURT:      Well, how well do you think you understand

 6      this document?

 7                All right.      Look, we're not going to do it this way.

 8      If she doesn't have an immediate recall of what this document

 9      says, I'm going to let you, Mr. Luwemba, and your client go to

10      the jury room and go over this Information with her in detail.

11      I don't want to have any question in her mind about what she's

12      agreeing to here.      All right.      We'll take a break.         She's okay

13      in the jury room.

14                Is that okay with you, Marshal?

15                U.S. MARSHAL:         That's fine.

16                THE COURT:      All right.

17                U.S. MARSHAL:         Are we not going to the next hearing?

18                THE COURT:      No.     It won't take that long.

19                U.S. MARSHAL:         All right.

20                THE COURT:      The substance of it is only three and a

21      half pages.

22                All right.      Go review it.        Just come out when you're

23      ready, Mr. Luwemba.

24          (A break is taken.)

25                THE COURT:      All set, Mr. Luwemba?
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24    Page 14 of 49

                                                                                    14


 1                MR. LUWEMBA:      Yes, Judge.     We're all set.

 2                THE COURT:      All right.     Ms. Harun, have you now

 3      reacquainted yourself with the allegations of the accusation?

 4                THE DEFENDANT:      Yes, Your Honor.       Thank you so much.

 5                THE COURT:      We're certainly not in any rush here,

 6      Ms. Harun.   This is important business.

 7                With that done, Mr. Hamner, I will ask you to give us

 8      a summary of the Information which I referred to frequently as

 9      the accusation.    Thank you.

10                MR. HAMNER:      Thank you, Your Honor.          The

11      Information -- the first eight paragraphs of the Information

12      provide an introduction or background to the charges that are

13      alleged in this Information or to the charge.

14                THE COURT:      Now those background statements are very

15      similar to those in the Indictment, are they not?

16                MR. HAMNER:      Almost identical, Your Honor.

17                THE COURT:      All right.     Do you understand that,

18      Ms. Harun?

19                THE DEFENDANT:      Yes, Your Honor.

20                THE COURT:      Okay.   Go ahead.

21                MR. HAMNER:      I am prepared to go through those

22      paragraphs or I can ---

23                THE COURT:      Well, we'll see if that's necessary.

24                MR. HAMNER:      I will move to page 4 of the Information

25      which specifically refers to the count which is the sole count
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24   Page 15 of 49

                                                                                  15


 1      in this Information -- Count One -- pertaining to false

 2      statements.    It states that paragraph one through eight of the

 3      Information are incorporated by reference and that on or about

 4      July 27, 2021, in Dodge County in the Southern District of

 5      Georgia, in a matter within the jurisdiction of the SBA,

 6      referring to Small Business Association or Administration, an

 7      independent establishment within the Executive Branch of the

 8      United States Government, the defendant, Gladys Harun, did

 9      willfully and knowingly make and cause to be made and use and

10      cause to be used a false writing or document knowing the same

11      to contain a materially false, fictitious, and fraudulent

12      statement.

13                Defendant Glady Harun submitted a false EIDL

14      application by falsely claiming that an individual with the

15      initial KEW had a business opened on December 1, 2019, and that

16      such business generated $2,114 in gross revenues in 2019 and

17      had $165 in cost of goods sold in 2019 when Defendant Glady

18      Harun did, in fact, know and believe that KEW did not own any

19      business in 2019 and that is a violation of Title 18, United

20      States Code, Section 1001(a) -- Subsection (a)(2).

21                THE COURT:      Now, Ms. Harun, do you understand that

22      charge?

23                THE DEFENDANT:      Yes, Your Honor.

24                THE COURT:      And do you want us to go into the various

25      paragraphs of background information?
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24    Page 16 of 49

                                                                                    16


 1                  THE DEFENDANT:    Yes, Your Honor.

 2                  THE COURT:    You do?

 3                  All right.    Read the background information.

 4                  MR. HAMNER:    Yes, Your Honor.     Paragraph one of the

 5      Information under the title Covid-19 Pandemic and CARES Act

 6      states that the Coronavirus Aid Relief and Economic Security or

 7      CARES Act was a federal law enacted in or about March 2020

 8      designed to provide emergency financial assistance to the

 9      millions who suffered economic effects caused by the Covid-19

10      pandemic.     Among other relief efforts the United States sought

11      to provide financial support to eligible businesses that could

12      be used to offset certain business expenses.

13                  At all times material to this Information the Small

14      Business Administration, or SBA, was an Executive Branch agency

15      of the United States Government that provided support to

16      entrepreneurs and small businesses.         The SBA was headquartered

17      in Washington DC and maintained its computer servers outside of

18      the state of Georgia.        The SBA's mission was to maintain and

19      strengthen the nation's economy by enabling the establishment

20      and viability of small businesses and by assisting in economic

21      recovery of the communities after disasters.              As part of this

22      effort the SBA enabled and provided for loans through banks,

23      credit unions, and other lenders.        These loans had

24      government-backed guarantees.

25                  In addition, the SBA provided loans that came directly
     Case 3:23-cr-00003-DHB-BKE   Document 47   Filed 10/16/24   Page 17 of 49

                                                                                 17


 1      from the United States Government.        One source of relief

 2      provided by the CARES Act was the authorization of the SBA to

 3      provide Economic Injury Disaster Loans also known EIDLs to

 4      eligible small businesses experiencing substantial financial

 5      disruption due to the Covid-19 pandemic.          In order to obtain an

 6      EIDL a qualifying business had to submit an online application

 7      to the SBA and provide information about its operations such as

 8      the number of employees, gross revenues for the 12-month period

 9      preceding the disaster, and the cost of goods the business sold

10      in the 12-month period preceding the disaster.           In the case of

11      EIDLs the 12-month period was that preceding January 31, 2020.

12                 The applicant had to certify that all the information

13      in the application was true and correct to the best of the

14      applicant's knowledge.     In addition, the CARES Act authorized

15      the SBA to issue advances up to $10,000 to small businesses

16      within three days of applying for an EIDL.          This was known as

17      an EIDL advance.    The amount of the EIDL advance was determined

18      by the number of employees the applicant certified having.

19      EIDL applications were submitted directly to the SBA online.

20      Their website is noted in the Information and processed by the

21      agency from support from the government contractor Rapid

22      Finance.    The amount of each loan was determined based, in

23      part, on the information provided by the application about

24      employment, revenue, and cost of goods.         Any funds issued under

25      the EIDL were issued directly by the SBA.          EIDL funds could be
     Case 3:23-cr-00003-DHB-BKE     Document 47    Filed 10/16/24   Page 18 of 49

                                                                                     18


 1      used for payroll expenses, sick leave, production costs, and

 2      business obligations such as debts, rent, and mortgage

 3      payments.

 4                  THE COURT:     All right.     That concludes the

 5      introductory material in pages one through three.

 6                  Ms. Harun, is that a statement that you've been over

 7      before just recently in the jury room with your lawyer?

 8                  THE DEFENDANT:     Yes, Your Honor.

 9                  THE COURT:     And do you understand it entirely?

10                  THE DEFENDANT:     Yes, Your Honor, I do.

11                  THE COURT:     Do you have any questions at all about the

12      information?

13                  THE DEFENDANT:     No, Your Honor.

14                  THE COURT:     Do you have any questions at all about

15      what the government would have to prove in order to secure a

16      conviction on the charge contained in the Information?                Am I

17      not speaking English here?

18                  MR. LUWEMBA:     No, I think she's just kind of nervous,

19      Judge.   We went over this thoroughly when I was driving back

20      and forth to the jail.

21                  THE COURT:     Well, I want her to think about my

22      question --

23                  MR. LUWEMBA:     Yes, sir.

24                  THE COURT:     -- and not turn to you and say, "What is

25      he saying?"
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24   Page 19 of 49

                                                                                        19


 1                Will you just communicate with me for a minute?                 If

 2      you have a genuine question for your lawyer --

 3                THE DEFENDANT:      Okay.

 4                THE COURT:      -- I want you to go to him and ask him.

 5                THE DEFENDANT:      All right.    I will.

 6                THE COURT:      I want to know do you have any questions

 7      about what the government lawyer would have to prove in order

 8      to get you to a verdict of guilty?

 9                THE DEFENDANT:      No, Your Honor.

10                THE COURT:      You hesitated.

11                THE DEFENDANT:      I have not been to court before.             So

12      sometimes I am not understanding the whole thing like what he

13      has to prove to get me a conviction.         I'm not ---

14                THE COURT:      Well, there are certain things that the

15      government has to prove --

16                THE DEFENDANT:      Okay.

17                THE COURT:      -- and it's evidence and there are certain

18      essential elements --

19                THE DEFENDANT:      Okay.

20                THE COURT:      -- that they have to prove in order for

21      you to be convicted.       Now, I can't just take a guilty plea

22      because you sign an agreement and you say you want to plead

23      guilty.   I have to know if you've been acquainted with the

24      elements of proof and that you know what they are and that you

25      are prepared to waive that and give it up so that you can plead
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 20 of 49

                                                                                   20


 1      guilty.

 2                THE DEFENDANT:      Yes, Your Honor.

 3                THE COURT:      I'm trying to make this as clear and

 4      simple and easy as I can and I'm looking at a woman who is

 5      running 12 businesses, who is a teacher, who has a doctorate in

 6      education.    In order to secure a conviction in a case like

 7      this --

 8                THE DEFENDANT:      Okay.

 9                THE COURT:      -- Ms. Harun, the government lawyer would

10      not have to simply say but he would have to prove by admissible

11      evidence beyond any reasonable doubt, number one, that on or

12      about July 27, 2021, in the Southern District of Georgia here

13      in Dodge County, you willfully, knowingly -- not by some

14      mistake or accident, but willfully and knowingly caused a false

15      writing or document to be submitted so that a false and

16      fraudulently EIDL application was made to the SBA in which you

17      claimed that a person who had the initials of KEW had a

18      business that was opened on December 1, 2019, and that such

19      business generated gross revenues in the amount of $2,114 in

20      2019 and had cost of goods sold in 2019 of $165 when, in fact,

21      the whole thing was a lie.       That's what they would have to

22      prove.    Do you understand that?

23                THE DEFENDANT:      Yes, Your Honor.

24                THE COURT:      All right.     Any questions about that?

25                THE DEFENDANT:      No, Your Honor.
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24   Page 21 of 49

                                                                                  21


 1                  THE COURT:    Okay.   Let's see if we can move on from

 2      there.     Now, Ms. Harun, whether it's an Information or an

 3      Indictment, you're still facing a federal criminal felony

 4      charge.     Now at this point -- I know you've signed a Plea

 5      Agreement and all that, but at this point you're faced with an

 6      Indictment and an accusation by way of Information and you have

 7      a right to a jury trial or a trial before the Court on these

 8      charges.     You can plead guilty if you want to, but we haven't

 9      gotten to that yet.       You do have a right to a trial.

10                  Now if you go to trial there are some rights that I

11      want to make sure that you understand.          First of all, you have

12      the right to the presumption of innocence.           That's a function

13      of the government's burden of proof.         They have to prove you

14      guilty.     You don't have any obligation or burden of proving

15      your innocence or proving anything.         They have to prove you

16      guilty beyond any reasonable doubt.

17                  Do you understand that?

18                  THE DEFENDANT:    Yes, Your Honor.

19                  THE COURT:    You have the right to be present

20      physically in the courtroom at all times while your case is

21      going on.     Do you understand that?

22                  THE DEFENDANT:    Yes, Your Honor.

23                  THE COURT:    Also, Ms. Harun, you have the right to

24      confront and cross examine the witnesses.           That means you have

25      the right to see them and hear them testify and through your
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24   Page 22 of 49

                                                                                   22


 1      lawyer to ask them questions.       Do you know that?

 2                THE DEFENDANT:      Yes, Your Honor.

 3                THE COURT:      Ms. Harun, you also have the right to

 4      subpoena witnesses, to bring people into the courtroom under

 5      processes of the law if they have information to provide by way

 6      of testimony.    Do you know that?

 7                THE DEFENDANT:      Yes, Your Honor.

 8                THE COURT:      And, Ms. Harun, you may be a witness in

 9      your own case.    You're not required to be a witness.            Nobody

10      can force you to be a witness, but you can be if you want to,

11      and as a matter of fact, if you choose not to be a witness no

12      one can suggest or infer that you must be guilty simply on

13      account of your choice not to testify.          Do you understand that?

14                THE DEFENDANT:      Yes, Your Honor.

15                THE COURT:      There's another right that I want to

16      mention to you and that is your right under the Fifth Amendment

17      of the Constitution.       That is your right that says that you

18      cannot be forced to answer a question if the answer to that

19      question might tend to incriminate you.          Do you understand

20      that?

21                THE DEFENDANT:      Yes, Your Honor.

22                THE COURT:      Now with respect to all of these rights,

23      Ms. Harun, if you plead guilty you'll be waiving and giving up

24      all of your rights to a trial and all of the rights that I have

25      outlined for you.      Do you know that?
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 23 of 49

                                                                                   23


 1                THE DEFENDANT:      Yes, Your Honor.

 2                THE COURT:      If you plead guilty there won't be any

 3      trial.   It will be all over except for a sentencing hearing.

 4      If you plead guilty there will be a judgment of guilty.                I

 5      suppose you could say if you plead guilty you'll be just as

 6      guilty as if a jury had found you guilty.            Do you understand

 7      that?

 8                THE DEFENDANT:      Yes, Your Honor.

 9                THE COURT:      Eventually, if you plead guilty or if

10      you're found guilty by a jury you would be sentenced and that

11      sentence would be based upon the court's consideration of a lot

12      of things:    Your background, your history, the things that are

13      outlined in federal statutes and the Federal Sentencing

14      Guidelines.    Have you heard of the Federal Sentencing

15      Guidelines?

16                THE DEFENDANT:      Yes, Your Honor.

17                THE COURT:      All right.     I don't know what they are

18      right now and none of us do.        That's what these folks over here

19      are for is to try to figure out what the guidelines would be,

20      but I simply want to know that you are aware of them.               Are you?

21                THE DEFENDANT:      Yes, Your Honor.

22                THE COURT:      Okay.   Now, Ms. Harun, you are a

23      naturalized citizen.       You were born in another country.

24      Nevertheless, you are a citizen of this country.              Frankly, I do

25      not know if there is any immigration or deportation concern
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24    Page 24 of 49

                                                                                        24


 1      about your citizenship.       I would suspect that Mr. Luwemba knows

 2      more about that sort of thing than any of us here right now.                    I

 3      don't know, but I simply want you to know that there are at

 4      least reasonable cause to look into that.

 5                THE DEFENDANT:      Yes, Your Honor.

 6                THE COURT:      Do you understand that?

 7                THE DEFENDANT:      Yes, Your Honor.

 8                THE COURT:      And have you brought that subject up with

 9      your lawyer?

10                THE DEFENDANT:      Yes, Your Honor.

11                THE COURT:      Okay.   We'll leave it at that.         I don't

12      want to get into the interchange of what the situation is.                  I

13      just want to know that that is on your mind.              Now has anybody

14      forced you, pressured you, or threatened you into pleading

15      guilty?

16                THE DEFENDANT:      No, Your Honor.

17                THE COURT:      There is a lengthy Plea Agreement here and

18      I noticed, Ms. Harun, that you signed this back on March 16.

19      Do you remember that?

20                THE DEFENDANT:      Yes, Your Honor.

21                THE COURT:      And I looked at it.     It looks like your

22      signature -- what I understand your signature to be -- and I'm

23      going to summarize the Plea Agreement for you.              It's another 10

24      pages.    So I am not going to read through all of that.

25          (The Clerk speaks with the Court off the record.)
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 25 of 49

                                                                                   25


 1                 THE COURT:     Thank you for pointing that out.          That one

 2      was dated the 16th of March but this one is dated today.

 3                 Is that right, Mr. Hamner?

 4                 MR. HAMNER:     That's correct, Your Honor.

 5                 THE COURT:     Mr. Luwemba?

 6                 MR. LUWEMBA:     Yes, Judge.

 7                 THE COURT:     Are there any changes?

 8                 MR. HAMNER:     The changes that are in there are on page

 9      six in relation to the factual basis.           All of the terms of the

10      Plea Agreement are the same.

11                 THE COURT:     You know, I did hear something about that

12      earlier.

13                 Thank you for reminding me, Ms. Hyder.

14                 THE CLERK:     Yes, sir.

15                 THE COURT:     Page six?

16                 MR. HAMNER:     Yes, Your Honor.

17                 THE COURT:     Okay.   Has the summary changed at all?

18                 MR. HAMNER:     No, Your Honor.

19                 THE COURT:     Okay.   And we're going to take a factual

20      basis in a few minutes.       So we'll listen to that, too.          All

21      right.

22                 Well, Ms. Harun, I see that you've signed two Plea

23      Agreements.    The one signed today is, of course, dated

24      April 27, 2023.

25                 I think what we ought to do then is I'll hand you this
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 26 of 49

                                                                                     26


 1      one, Ms. Hyder, so I won't be confused by it.

 2                THE CLERK:      Yes, sir.    Thank You, Judge.

 3                THE COURT:      All right.     Ms. Harun, in this Plea

 4      Agreement, summarizing, you have agreed to waive any right to

 5      be charged by indictment and you have agreed to plead guilty to

 6      count one of the Information and to the factual basis that is

 7      contained in the Plea Agreement to which you have signed.                  You

 8      must understand that you are subject to up to five years in

 9      prison, three years on supervised release, and a $100 special

10      assessment.    No promises have been made to you regarding any

11      particular sentence.

12                I know that the United States Attorney has agreed to

13      recommend down in here somewhere -- you recommend the lower end

14      of the guidelines; is that right, Mr. Hamner?

15                MR. HAMNER:      That is correct, Your Honor.

16                THE COURT:      All right.     But that is not an agreement

17      with respect to the sentence.

18                Do you understand that Ms. Harun?

19                THE DEFENDANT:      Yes, Your Honor.

20                THE COURT:      All right.     There is nothing in the Plea

21      Agreement that stops the government from providing full and

22      accurate information to the court and to the probation officer

23      regarding the calculation of the guideline range.              The

24      government lawyer is going to agree that you have accepted

25      responsibility and recommend you -- recommend you -- to the
     Case 3:23-cr-00003-DHB-BKE   Document 47   Filed 10/16/24   Page 27 of 49

                                                                                 27


 1      probation office that you receive a reduction in your offense

 2      level on account of that acceptance of responsibility and that

 3      may be either two or three points, but they will recommend the

 4      maximum that they can.     We'll see how that works out when the

 5      guidelines are calculated.

 6                  Now the government and the defendant agree to

 7      recommend to the probation office and the court at sentencing

 8      that for the purpose of the guidelines the loss is less than

 9      $550,000.     The government lawyer, as I said earlier, has

10      recommended that you be sentenced at the low end of the

11      guideline range as determined by the court at the time of

12      sentencing.     The government lawyer has agreed not to oppose any

13      request made by you for release on bond pending sentencing.

14      The defendant has agreed to abandon any property that may have

15      been seized in connection with this case.

16                  Mr. Hamner, I would like to hear a little bit more

17      about that later.

18                  The defendant agrees to pay restitution for the full

19      loss caused by the defendant's total criminal conduct which is

20      not limited to the specific count to which she is pleading

21      guilty.

22                  I want to make sure you understand that, Ms. Harun.

23      You've agreed to plead guilty to one -- to put it bluntly, one

24      little count that might involve some $2,100, something like

25      that, but the total thing here for restitution we know is under
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 28 of 49

                                                                                   28


 1      $550,000, but -- is there a calculation as to restitution?

 2                I did not see that in the Plea Agreement, Mr. Hamner.

 3                MR. HAMNER:      It has not been calculated in the Plea

 4      Agreement at this time, Your Honor.

 5                THE COURT:      Is it calculated in your mind?

 6                MR. HAMNER:      No, Your Honor.

 7                THE COURT:      All right.     All you can tell me is under

 8      550 grand?

 9                MR. HAMNER:      Yes, Your Honor.

10                THE COURT:      Ms. Harun, you've agreed to pay the $100

11      special assessment.

12                THE DEFENDANT:      Yes, Your Honor.

13                THE COURT:      You've certified -- you are certifying,

14      guaranteeing that you have not transferred any assets in

15      contemplation of this prosecution in an effort to evade your

16      financial obligations under this agreement -- that is,

17      restitution -- and you also agree to make no such transfers in

18      the future.    You've agreed to notify the United States of any

19      material change in circumstances prior to sentencing no later

20      than seven after the change -- you mean seven days, seven

21      hours?

22                MR. HAMNER:      Seven days, Your Honor.         I apologize.

23                THE COURT:      Seven days after the change.         All

24      notifications must take place in writing prior to the date of

25      sentencing.    Any payment schedule imposed by the court will not
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24   Page 29 of 49

                                                                                  29


 1      impede the United States from taking all actions and remedies

 2      available to collect the full financial obligation imposed by

 3      the judgment of the court.

 4                That means, Ms. Harun, if I impose a sentence that

 5      says you have to pay "X" number of dollars restitution and I

 6      give you a schedule for doing it, they can still go looking for

 7      assets and hunt them down and bring them in as they will

 8      regardless of the schedule.       Do you understand that?

 9                THE DEFENDANT:      Yes, Your Honor.

10                THE COURT:      You've agreed to waive and give up any

11      right to appeal from any conviction or sentence except some

12      sentence that went above the statutory maximum of 60 months --

13      I haven't done that yet, I don't think -- a sentence above the

14      guideline range as determined by the court at the time of

15      sentencing or if the government appeals the sentence.

16                You've also agreed to waive any collateral attack, any

17      habeas corpus or other attack on the fact of conviction or

18      sentence unless you state that you received ineffective

19      assistance of counsel.       However, another portion of the Plea

20      Agreement says that you agree that you have been ably

21      represented and you are satisfied with your lawyer.              If either

22      party breaches this Plea Agreement it will be void.              If

23      rejected by the court, the Plea Agreement will be void and this

24      is the entire Plea Agreement -- the one we're looking at and

25      the one we're talking about.
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 30 of 49

                                                                                   30


 1                You have agreed to plead guilty regardless of any

 2      possible immigration consequences.          I have addressed that

 3      slightly so far.    I don't know what they might or might not be.

 4      You've agreed to waive any challenge with respect to venue in

 5      this case; that is, that it is being conducted in the Southern

 6      District of Georgia in the Dublin Division.

 7                You've agreed to waive any right to request further

 8      information about the prosecution under the Federal Freedom of

 9      Information Act or Privacy Act.          You've agreed to waive and

10      give up any protection under any federal rule so that in the

11      event you failed to plead guilty or later withdraw your guilty

12      plea, notwithstanding that, any and all statements made by you

13      in connection with the plea and any leads derived therefrom are

14      admissible for any and all purposes.

15                Now have I summarized the Plea Agreement in your

16      opinion, Mr. Luwemba?

17                MR. LUWEMBA:      Yes, Judge.

18                THE COURT:      Mr. Hamner?

19                MR. HAMNER:      Yes, Your Honor.

20                THE COURT:      More importantly, Ms. Harun --

21                THE DEFENDANT:      Yes, sir.

22                THE COURT:      -- have I summarized the Plea Agreement in

23      the way that you understand it?

24                THE DEFENDANT:      Yes, Your Honor.       Thank you.

25                THE COURT:      Do you think I left anything out?
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 31 of 49

                                                                                   31


 1                 THE DEFENDANT:     No.   I think you were clear.

 2                 THE COURT:     You think I covered it all?

 3                 THE DEFENDANT:     Yes, you did.

 4                 THE COURT:     Now, Ms. Harun, I want to know has anybody

 5      given you any other promise, any hope of benefit, guarantee or

 6      deal other than what I have talked about in the summary of this

 7      Plea Agreement?

 8                 THE DEFENDANT:     No, Your Honor.

 9                 THE COURT:     Is there anything else that anybody has

10      told you in order to get you to plead guilty?

11                 THE DEFENDANT:     No, Your Honor.

12                 THE COURT:     All right.     Mr. Hamner, let's get a

13      factual basis for this plea, and I know you will welcome the

14      opportunity to sit down for a moment Mr. Luwemba and Ms. Harun.

15                 MR. LUWEMBA:     Thank you, Judge.

16                 MR. HAMNER:     Your Honor, during the course of the plea

17      you asked me two questions that I would briefly like to

18      address.

19                 THE COURT:     All right.

20                 MR. HAMNER:     You asked about the seized property and

21      the only property that we've seized in this case is a bank

22      account that she had that contained approximately $50,000 from

23      Wells Fargo and then in regards to the amount for Sentencing

24      Guidelines it was limited at 550,000.           The United States

25      believes that that range is going to be somewhere between 300
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 32 of 49

                                                                                     32


 1      to $400,000 which falls within that under 500,000 guideline

 2      range.

 3                 THE COURT:     The guideline break is at 550?

 4                 MR. HAMNER:     Correct, Your Honor.

 5                 THE COURT:     Okay.   And the floor on that guideline

 6      range you're talking about is 250?

 7                 MR. HAMNER:     I believe so, Your Honor.         I don't have

 8      it in front of me --

 9                 THE COURT:     All right.

10                 MR. HAMNER:     -- but I believe that's correct.

11                 THE COURT:     We'll see.     It's speculation right now.

12      Okay.     And who are you going to call on your factual

13      basis?

14                 MR. HAMNER:     Special Agent Brian Truax.

15                 THE COURT:     Okay.   Mr. Truax, will you come over to

16      our witness stand --

17                 THE WITNESS:     Yes, sir.

18                 THE COURT:     -- and take the oath before you are

19      seated?

20          (Brian Truax is duly sworn.)

21                 THE CLERK:     Please have a seat.      State your name and

22      spell it for the record and name your occupation, please, sir.

23                 THE WITNESS:     My name is Brian Truax, T-R-U-A-X.             I am

24      an agent with the United States Secret Service out of the

25      Savannah Georgia Office.
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 33 of 49

                   (Brian Truax-Direct by Mr. Hamner)                              33


 1                                 DIRECT EXAMINATION

 2      BY MR. HAMNER:

 3      Q     Special Agent Truax, would you tell the Court how long

 4      you've served in that capacity?

 5                 THE COURT:     Well, wait a minute.       I've got to ask him

 6      something first.     Have you watched Night Agent?

 7                 THE WITNESS:     Yes, sir, I have.

 8                 THE COURT:     Okay.   Sometime we'll talk about that.

 9                 THE WITNESS:     Yes, sir.

10                 THE COURT:     Go ahead, Mr. Hamner.

11                 MR. HAMNER:     Thank you, Your Honor.

12      Q     Special Agent Truax, how long have you been employed in

13      that capacity?

14      A     Twenty years, sir.

15      Q     Thank you.   And were you involved in the investigation of

16      the defendant, Gladys Harun?

17      A     Yes, sir.

18      Q     Can you briefly for a factual basis explain what the SBA

19      is?

20      A     SBA stands for Small Business Administration.            It is a

21      government agency responsible for providing support and

22      assistance to small businesses.          They do it through a

23      three-tier process which involves the 3 C's: Capital for loans;

24      Contracts, government contracts for small businesses; and

25      Counsel, providing counsel to small businesses on business
     Case 3:23-cr-00003-DHB-BKE   Document 47    Filed 10/16/24   Page 34 of 49

                   (Brian Truax-Direct by Mr. Hamner)                             34


 1      matters.

 2      Q   Thank you.    And is that under the Executive Branch of the

 3      federal government?

 4      A   It is, sir.

 5      Q   Can you briefly explain what an Economic Injury Disaster

 6      Loan is?

 7      A   An Economic Injury Disaster Loan is EIDL for short --

 8      E-I-D-L -- was authorized under the CARES Act, enacted in March

 9      of 2020.    It is a loan that is provided to small businesses to

10      support them during the economic disaster that occurred during

11      the pandemic -- the Covid pandemic.

12      Q   What's the process that one has to undergo to apply for a

13      EIDL?

14      A   A person would go to the SBA website.            They would go to a

15      portal.    They would pull up an application online and they then

16      would fill out the application with the business name, business

17      address, some financial information to include what was

18      discussed here earlier which is gross revenues preceding the 12

19      months prior to the pandemic and also capital -- excuse me,

20      cost of goods sold prior to March '20 -- excuse me --

21      March 2020 -- January 31, 2020.         Excuse me.

22      Q   Thank you.    In the course of your investigation did you

23      become aware of an EIDL application for Katina Wells?

24      A   Yes, sir.

25      Q   Is Katina Wells the KEW identified in the Information?
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24   Page 35 of 49

                    (Brian Truax-Direct by Mr. Hamner)                            35


 1      A   Yes, sir.

 2      Q   Did you interview Ms. Wells?

 3      A   Yes, sir.

 4      Q   Is she a resident of Dodge County, Georgia?

 5      A   Yes, sir.

 6      Q   What is her relationship with the defendant?

 7      A   The relationship with the defendant was Ms. Wells --

 8      Ms. Wells' mother, Lotsie Gordon, and Ms. Harun were friends

 9      and through that friendship Ms. Wells had Ms. Harun be her tax

10      preparer.

11      Q   Okay.     And on July 27, 2020, was an EIDL application

12      submitted in the name of Katina Wells specifically application

13      number 3322814905?

14      A   Can you repeat that date, sir?

15      Q   July 27?

16      A   The year.

17      Q   2021?

18      A   2021, yes, sir.       That's correct.

19      Q   Okay.     And was that application submitted within the

20      Southern District of Georgia and to the SBA service outside of

21      Georgia?

22      A   It was, sir.

23      Q   Did you review that application?

24      A   I did, sir.

25      Q   And was that application used for both a target advance and
     Case 3:23-cr-00003-DHB-BKE   Document 47   Filed 10/16/24   Page 36 of 49

                  (Brian Truax-Direct by Mr. Hamner)                             36


 1      a low-income targeted advance?

 2      A   Yes, sir.

 3      Q   Did Ms. Wells identify who prepared that application?

 4      A   She did, sir.

 5      Q   Who was that?

 6      A   The defendant Ms. Gladys Harun.

 7      Q   And did you review emails between the defendant and Katina

 8      Wells?

 9      A   I did, sir.

10      Q   Did those emails confirm --

11      A   Yes, sir, they did.

12      Q   -- the statements that Ms. Wells told you?           Did they

13      confirm that relationship between Ms. Harun and Ms. Wells

14      regarding the application?

15      A   They did, sir.

16      Q   Was there false information contained in that application?

17      A   Yes, sir.

18      Q   Did that application say that Katina Wells was an

19      independent contractor that opened a business on December 1,

20      2019?

21      A   Yes, sir.

22      Q   Was that false?

23      A   Yes, sir.     It is false.

24      Q   Did the application also list that her business had over

25      $2000 in revenues in 2019?
     Case 3:23-cr-00003-DHB-BKE     Document 47    Filed 10/16/24   Page 37 of 49

                    (Brian Truax-Direct by Mr. Hamner)                              37


 1      A   That's correct.

 2      Q   And was that false?

 3      A   Yes, sir.

 4      Q   And did it lost gross receipts for 2019 for that fictitious

 5      business?

 6      A   Yes, sir.

 7      Q   And were those also false?

 8      A   That's is correct.

 9                  MR. HAMNER:     I have no further questions, Your Honor.

10                  THE COURT:     Mr. Luwemba, any questions for Special

11      Agent Truax?

12                  MR. LUWEMBA:     No cross, Judge.      No.

13                  THE COURT:     All right.     If you don't mind, sit tight

14      for a moment.

15                  THE WITNESS:     Yes, Your Honor.

16                  THE COURT:     Thank you, Mr. Hamner.

17                  Would you come back to the lectern with your client,

18      please, Mr. Luwemba?

19                  Ms. Harun, did you hear what Special Agent Truax said?

20                  THE WITNESS:     Yes, Your Honor.

21                  THE COURT:     What did he say about you and your

22      exchange with KEW that you disagree with?

23                  THE DEFENDANT:     Katina Wells -- I used to prepare

24      taxes for her and I did it for several years.               I don't disagree

25      with anything he said, but I will give my version if that's
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24    Page 38 of 49

                                                                                          38


 1      okay.

 2                THE COURT:      Your what?

 3                MR. LUWEMBA:      No.

 4                THE DEFENDANT:      Okay.

 5                MR. LUWEMBA:      She answered the question, Judge.               She

 6      said she doesn't disagree with anything he said.

 7                THE COURT:      Well, I heard something else.          I wanted to

 8      hear exactly what she said.

 9                Tell me what you said.         Let me ask you again.

10                THE DEFENDANT:      Yes.

11                THE COURT:      What did Mr. Truax say that you disagree

12      with?

13                THE DEFENDANT:      I do not disagree with anything he

14      said in regards to the lady -- Katina Wells.               I prepared the

15      EIDL using her 2019 tax return that had the data that I used.

16      That's what I -- you know, we discussed this with you when you

17      interviewed.

18                THE COURT:      Well, I don't understand exactly what

19      you're saying.    I want to get a little more depth here.               Are

20      you saying that you did not present a false application?

21                THE DEFENDANT:      What I am saying ---

22                MR. LUWEMBA:      Judge ---

23                THE COURT:      Mr. Luwemba, I appreciate your efforts and

24      your advocacy, but I've got to know whether this is a genuine

25      guilty plea or whether this is something she is going to go
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 1      around telling people that I only did this because my lawyer

 2      and that judge made me.        You know that?

 3                  MR. LUWEMBA:     I understand.

 4                  THE COURT:     I've heard it before.

 5                  MR. LUWEMBA:     No, I understand that, Judge, and I

 6      totally respect the way you went about this.                It is just I

 7      would like to hear whatever she's going to say in open court

 8      before it comes out of her mouth.           I just ---

 9                  THE COURT:     Well, you could have talked to her about

10      it.

11                  MR. LUWEMBA:     I did.

12                  THE COURT:     Did you prepare her for this?

13                  MR. LUWEMBA:     100 percent.     Yes.

14                  THE COURT:     Well, I want to know if she disagrees --

15      we don't know what the man is going to say before he gets here.

16                  THE DEFENDANT:     I don't disagree.       I don't disagree

17      with him.

18                  THE COURT:     Well, you're saying something about Katina

19      Wells that you wanted to qualify it or modify it.                I just want

20      to know what you're talking about.

21                  THE DEFENDANT:     Oh, okay.     I just said I'm taking the

22      responsibility.     That's why I came to court today to resolve

23      this and take the responsibility for it.             I used her 2019 tax

24      return data to do the EIDL.           That's all I am saying.        Like,

25      yes, I am taking responsibility, but I didn't know anything was
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24   Page 40 of 49

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 1      wrong because I used her data in 2019.          That's all, but I am

 2      taking responsibility.

 3                 THE COURT:     You say you did not know anything was

 4      wrong?     What -- I didn't understand you.        I didn't hear you.

 5      So tell me again what you said.

 6                 THE DEFENDANT:     I prepared the EIDL for her.         That's

 7      it.

 8                 THE COURT:     And did you know it contained false

 9      information?

10                 THE DEFENDANT:     Yes.

11                 THE COURT:     Mr. Luwemba --

12                 MR. LUWEMBA:     Yes, sir?

13                 THE COURT:     -- we've got an hour and a quarter

14      invested in this and I don't want to be in any way overbearing.

15      I want to get this resolved one way or the other.             We got an

16      Indictment.     We're ready to go to trial.        We've got an

17      Information.     I'm ready to take a guilty plea, but I've got to

18      know that it is provident.       I have to know that it is genuine

19      and I have to know that it expresses her true intent.

20                 I would like for you to confer once again with your

21      client.     There are two things that I'm concerned about:            First

22      of all, the United States Attorney tells me that he has not yet

23      got a handle on restitution.         I am perceiving a problem about

24      the nature and the amount of restitution in the future in this

25      case.     I am perceiving a problem if this guilty plea were taken
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 1      right now on the basis of this record, not only would it be

 2      improvident, but at some point in the future this lady may

 3      express to the court and to others that I only plead guilty to

 4      $2,100 here, and while the guideline range is under $550,000, I

 5      only did this one thing and I really didn't even mean to do

 6      that.

 7                So I'm perplexed by this.         I am going to invite you to

 8      take your client once again to the jury room and see if there

 9      is some miscommunication here that we can resolve today.

10                MR. LUWEMBA:      Would you mind if co-counsel came back

11      with us -- Teri Thompson?

12                THE COURT:      I wouldn't mind that at all.

13                MR. LUWEMBA:      Thank you, Judge.

14          (A break is taken.)

15                THE CLERK:      Do I recall the case?

16                THE COURT:      No need to recall the case.         We have had a

17      recess wherein Mr. Luwemba has talked to his client along with

18      co-counsel and we're back in court and we are going to proceed.

19                Is that right, Mr. Luwemba?

20                MR. LUWEMBA:      Yes, Judge.     Yes, Your Honor.

21                THE COURT:      Now, Ms. Harun, you've had a chance to

22      relax a little bit and freshen up, perhaps.            I was asking you

23      if there is anything that Special Agent Truax said that you

24      disagree with.

25                THE DEFENDANT:      No, Your Honor.
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                                                                                      42


 1                  THE COURT:    I'm sorry?

 2                  THE DEFENDANT:    No, Your Honor.

 3                  THE COURT:    Say it again now that I have my ear piece

 4      in.

 5                  THE DEFENDANT:    No, Your Honor.

 6                  THE COURT:    All right.     And let me be very direct with

 7      you, Ms. Harun.     Do you understand entirely that this is not

 8      just one matter related to KEW or whatever -- was it Kathleen

 9      somebody?

10                  MR. HAMNER:    Katina Wells, Your Honor.

11                  THE COURT:    When you're sentenced if you are on this

12      Information and guilty plea, I am going to be considering your

13      entire conduct.     Do you understand that?

14                  THE DEFENDANT:    Yes, Your Honor.

15                  THE COURT:    And they are saying now that it involves

16      some three or $400,000 of EIDL falsifications.              Do you

17      understand that?

18                  THE DEFENDANT:    Yes, Your Honor.

19                  THE COURT:    All right.     And do you also understand

20      that you will be facing restitution for some amount in that

21      category or area?

22                  THE DEFENDANT:    Yes, Your Honor.

23                  THE COURT:    I don't know what it is.         I don't pretend

24      to state it for you, but I just don't want you to come back and

25      say that you misunderstood something along that line.                Do you
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24   Page 43 of 49

                                                                                  43


 1      understand me?

 2                THE DEFENDANT:      Yes, Your Honor.

 3                THE COURT:      Is there anything else you want to tell me

 4      or any exculpatory statement you want to make?

 5                THE DEFENDANT:      No, Your Honor.

 6                THE COURT:      Okay.   Mr. Truax, if you would like to

 7      resume a position over there with counsel, you may do so.

 8                THE WITNESS:      Yes, Your Honor.

 9                THE COURT:      Ms. Harun, how do you want to resolve this

10      case?

11                THE DEFENDANT:      Pleading guilty.

12                THE COURT:      And by that do I understand that you wish

13      to plead guilty consistent with the terms of your Plea

14      Agreement?

15                THE DEFENDANT:      Yes, Your Honor.

16                THE COURT:      Are you, in fact, guilty as charged in

17      this Information?

18                THE DEFENDANT:      Yes, Your Honor.

19                THE COURT:      And do you understand that the court will

20      be considering the entirety of your criminal conduct, other

21      falsifications and deceits?

22                THE DEFENDANT:      Yes, Your Honor.

23                THE COURT:      In that this defendant has acknowledged

24      her guilt, she is aware of her right to trial, she knows the

25      maximum penalty and with full knowledge of the consequences of
     Case 3:23-cr-00003-DHB-BKE     Document 47    Filed 10/16/24   Page 44 of 49

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 1      her own volition she has elected to plead guilty and there is a

 2      sound factual basis and she has throughout received her

 3      attorney's advice, I will accept the plea in writing.

 4                  THE CLERK:     Your Honor, the defendant has signed the

 5      plea.

 6                  THE COURT:     All right.     Ms. Harun, you have signed the

 7      plea.   I am going to allow it to be filed.            You're now

 8      convicted of this federal felony offense.             You have no right to

 9      own, use or possess a firearm.          You are to be present for

10      sentencing.     You will be notified of that, and, of course, you

11      should stay in touch with your lawyer.

12                  Mr. Hamner, anything else?

13                  MR. HAMNER:     Nothing from the government, Your Honor.

14                  THE COURT:     All right.     Mr. Luwemba?

15                  MR. LUWEMBA:     Yes, Judge.     Pursuant to the Plea

16      Agreement we would just like to be briefly heard on bond.

17                  THE COURT:     All right.     You may proceed.

18                  MR. LUWEMBA:     Yes, Judge.     As indicated earlier

19      Ms. Harun is 44 years old.        She is a resident of Warner

20      Robbins, Georgia.        If granted bond she'll be residing at 192

21      Amelia Road, Byron, Georgia 31008.           She's the mother of six

22      children:     Three girls, three boys ages 15, 13, 10, 7, 5 and 3

23      who all reside in that home.        Her oldest son, Emanuel Harun, is

24      a varsity basketball star at Northside High School.

25                  She doesn't have any prior convictions, Your Honor.
     Case 3:23-cr-00003-DHB-BKE   Document 47    Filed 10/16/24   Page 45 of 49

                                                                                        45


 1      As she said this was one of the first times she's ever been in

 2      a courtroom, I believe, prior to her first bond hearing.                  No

 3      felony history.    No misdemeanor history.         She is a -- does hold

 4      a special education teaching certificate in the State of

 5      Georgia and have a master's degree and PhD in education.

 6                She's not a flight risk, Your Honor.            She's not a

 7      danger to person or property in the community.             She is not a

 8      threat to intimidate any witnesses.         She will return to court

 9      and she does have significant ties to the community with her

10      six children, Judge.      She has been incarcerated for 10 months

11      and has taken responsibility and so we're requesting that she

12      be given a reasonable bond -- hopefully, a signature bond

13      pending sentencing.

14                We are putting together a very robust sentencing

15      hearing in front of Your Honor.         We're preparing that right now

16      flying people in -- family in -- people that have benefited

17      from her teaching services over the years and we would love her

18      to be able to assist us with that while in the community.                  So

19      we're requesting a signature bond at this time, Your Honor.

20                Oh, and I forgot.     My bad.     With any restrictions that

21      the court would like to put on her -- ankle monitor, curfew --

22      any restrictions that you would also like to put on her in

23      regards to having this bond, Judge -- home confinement,

24      whatever you would like to do -- we would also be willing to

25      concede to that.
     Case 3:23-cr-00003-DHB-BKE    Document 47    Filed 10/16/24   Page 46 of 49

                                                                                       46


 1                THE COURT:      And I understand your constrictions under

 2      the Plea Agreement, Mr. Hamner.

 3                MR. HAMNER:      That's correct, Your Honor.

 4                THE COURT:      All right.     So noted.

 5                I have before me the request very capably and artfully

 6      made by counsel, Mr. Luwemba, for a bond pending sentencing

 7      after the plea of guilty to an Information was entered.                I have

 8      had only a limited time to consider the prospect of this

 9      motion.   It's true that a Plea Agreement containing those

10      provisions has been extant since late March and that there was

11      one modification which resulted in the Plea Agreement being

12      signed today, but as far as actually coming to the attention of

13      the Presiding Judge the provisions final of the Plea Agreement

14      were known to the Presiding Judge today, April 27.

15                On the other hand, while as both Ms. Harun and

16      Mr. Luwemba point out, this is Ms. Harun's first appearance.                   I

17      do not believe I have ever met her in any of the other

18      litigation or cases that I have known her as Gladys Chege.                 I

19      have had a lot to consider about her in this one case.               In my

20      review of the Detention Order entered by Judge Epps on

21      21 July 2022 and in the orders which I entered -- the presiding

22      District Judge entered -- on 30 November '22 and 18 August '22,

23      I am not presently brought to a level of comfort about the

24      potential for mischief on behalf of this defendant simply

25      because she has entered a plea of guilty to a one-count
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24    Page 47 of 49

                                                                                    47


 1      Information.

 2                I remain concerned for the reasons stated in the

 3      earlier orders of detention and affirming the Magistrate

 4      Judge's decision that there is a much deeper pool of concern

 5      about the potential for mischief and misconduct relative to

 6      this case by Ms. Harun if she is at liberty.

 7                I will ask you, Mr. Hamner, if you are prepared to

 8      begin to undertake with some immediacy this inquiry into the

 9      restitution amount.       Is there going to be some delay about that

10      or are you ready to get into it right away?

11                MR. HAMNER:      We will, Your Honor.      If I may clarify

12      for the Court, we're aware of the amounts that she received

13      from the PPP loans and the EIDL loans.          My understanding is the

14      feds have some contentions about some of that fund was properly

15      used and so they don't believe that the entirety of it needs to

16      be returned as restitution.       There is no question as to the

17      amount.   It is how much of it is going to need to be returned

18      to the United States Government because it was inappropriately

19      used, Your Honor.

20                THE COURT:      Well, I'm looking down the road at

21      restitution as a very important factor here.              What I am going

22      to say is that your inquiries into those amounts may have a

23      bearing in the future should this question of bond be raised

24      again.

25                MR. HAMNER:      Okay, Your Honor.
     Case 3:23-cr-00003-DHB-BKE    Document 47   Filed 10/16/24   Page 48 of 49

                                                                                  48


 1                 THE COURT:     I will always consider it, but at the

 2      moment and for the reasons stated in the various orders of the

 3      detention and affirming the Magistrate Judge's detention, this

 4      defendant is remanded to the custody of the United States

 5      Marshal.    That concludes the matter for today.

 6                 Thank you for your patience throughout, Mr. Luwemba,

 7      Mr. Hamner.

 8                 MR. LUWEMBA:     Thank you, Judge.

 9          (End of transcript of record.)

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                                                                                   49


 1                                CERTIFICATE OF REPORTER

 2

 3

 4

 5           I, Lisa H. Davenport, Federal Official Reporter, in and

 6      for the United States District Court for the Southern District

 7      of Georgia, do hereby certify that pursuant to Section 753,

 8      Title 28, United States Code that the foregoing is a true and

 9      correct transcript of the stenographically-reported proceedings

10      held and that the transcript page format is in conformance with

11      the regulations of the Judicial Conference of the United

12      States.
                                                       Digitally signed by Lisa
13                                                     Davenport
                                                       Date: 2024.10.16
14                                                     13:24:03 -04'00'
                                       ________________________________

15                                     Lisa H Davenport, RPR, FCRR

16                                     Federal Official Reporter

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