Order — United States v. Kaeding (Dkt. 75, D. Minn.)

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An order by United States Magistrate Judge John F. Docherty in United States v. Harold Bennie Kaeding, Case No. 21-cr-0169 (ECT/JFD), in the U.S. District Court for the District of Minnesota, filed October 14, 2022 as Doc. 75. It denies the defendant's sixth motion for continuance of the motion hearing (Dkt. No. 63), which the United States opposed, because he has had nearly nine months to prepare pretrial motions in a straightforward fraud case. It recites that a search of his home found financial records, over $90,000 in cash and ATM receipts, and keeps all deadlines in the prior order (Dkt. No. 59).

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CASE 0:21-cr-00169-ECT-JFD          Doc. 75     Filed 10/14/22    Page 1 of 5




                       UNITED STATES DISTRICT COURT
                          DISTRICT OF MINNESOTA


United States of America,                     Case No: 21-cr-0169 (ECT/JFD)

                     Plaintiff,

v.                                                    ORDER

Harold Bennie Kaeding,

                     Defendant.


       This matter is before the Court on Defendant Harold Bennie Kaeding’s Sixth

Motion for Continuance of Motion hearing (Dkt. No. 63), which the United States

opposes (Dkt. No. 64). The Motion is denied because Mr. Kaeding has had sufficient

time, nearly nine months, to prepare any necessary pretrial motions in this

straightforward fraud case, notwithstanding the undoubted challenges his medical

conditions have posed. The Court notes that Mr. Kaeding filed several motions as this

Order was being docketed, suggesting that this Order may be moot. Nonetheless, the

Court will proceed with issuing this Order in the interests of having a clear record.

       Mr. Kaeding is charged with one count of wire fraud, 18 U.S.C. § 1343, and one

count of money laundering, 18 U.S.C. § 1957. (Indict. at 8–9, Dkt. No. 1.) The United

States alleges that Mr. Kaeding designed a scheme to defraud the government of

hundreds of thousands of dollars by applying for federal loan programs designed to

help small businesses during the COVID-19 pandemic but using the money for his own

purposes. (Id. at 5–8.). In January 2021, the United States seized money from bank

      CASE 0:21-cr-00169-ECT-JFD         Doc. 75    Filed 10/14/22     Page 2 of 5




accounts tied to Mr. Kaeding’s scheme and searched Mr. Kaeding’s home. (Detention

Order at 2, Dkt. No. 28.) Law enforcement found “numerous financial records, over

$90,000 in cash, and various ATM receipts” in the home. (Id.) During the search, Mr.

Kaeding told law enforcement that he submitted the loan applications at issue. (Id.) The

parties began negotiating a resolution to the investigation, but Mr. Kaeding ended the

discussions in April 2021. (Id.) The next month, Mr. Kaeding left for Colombia and

refused to return. (Id. at 3) Colombian authorities found Mr. Kaeding at his wife’s

apartment, but he refused to open the door. (Id.) After speaking with an immigration

officer by phone, Mr. Kaeding agreed to appear at a local immigration office. (Id.) He

never appeared and authorities returned to Mr. Kaeding’s wife’s apartment, finding it

empty. (Id.) Colombian authorities later found him at a local clinic. (Id. at 4.) Mr.

Kaeding did not cooperate with his deportation from Colombia; he refused to tell

authorities the location of his passport and would not allow his photograph to be taken.

(Id.) This behavior required authorities to issue an emergency passport to facilitate his

return to the United States. Mr. Kaeding was deported and returned to the United States

in November 2021. He was arraigned and ordered detained on January 7, 2022. (Id. at

1).

       The Court set a pretrial motion hearing for February 24, 2022. Two days before

the deadline to file pretrial motions, Mr. Kaeding requested a 30-day continuance to

review the “voluminous,” discovery, and because he had difficulty communicating with

counsel because of his hearing difficulties. (Def.’s Mot. Continuance of Mot. Hrg., Dkt.

No. 31). The Court granted this unopposed motion. (Id.; Order, Dkt. No. 34). Mr.

         CASE 0:21-cr-00169-ECT-JFD          Doc. 75    Filed 10/14/22     Page 3 of 5




    Kaeding filed a second Motion for Continuance on March 3, 2022, this time requesting

    a 45-day extension. (Dkt. No. 36). He claimed that he was able to review only “a small

    portion” of the discovery because he had limited computer access in jail and because

    of several medical issues. (Id.) The Court also granted this unopposed motion. (Id.; Dkt.

    37). In his Third Motion for Continuance, filed on April 19 2022, Mr. Kaeding reported

    that his condition had worsened and that he was being hospitalized for multiple

    infections, which limited his ability to communicate with counsel. The Court granted

    this third continuance, which was also unopposed. (Id. Dkt. 43.)

           At status conferences in June 2022, defense counsel advised the Court that

    treating Mr. Kaeding’s medical conditions was straining jail resources. (Order

    Regarding Detention Placement; Dkt. No. 48). While expressing their interest in

    facilitating adequate care for Mr. Kaeding, counsel for the United States raised concerns

    about the possibility of Mr. Kaeding malingering and not complying with treatment.

    (Id.). The Court eventually ordered Mr. Kaeding detained at the Columbia Regional

    Care Center in Columbia (CRCC), South Carolina, which appeared to have the

    appropriate level of sophisticated medical care, and was available to federal pretrial

    detainees like Mr. Kaeding. 1 (Order Regarding Detention Placement, Dkt. No. 57).

    Between the status conferences in June and issuing the order to transfer Mr. Kaeding,

    the Court also granted an unopposed fourth motion for continuance, this time for sixty



1
  The Federal Medical Center in Rochester, Minnesota is a U.S. Bureau of Prisons facility
that offers tertiary-level medical care. However, FMC-Rochester is not an option for pre-
trial detainees.

     CASE 0:21-cr-00169-ECT-JFD           Doc. 75     Filed 10/14/22     Page 4 of 5




days. (Order, Dkt. No. 53).

       Mr. Kaeding arrived at CRCC on July 27, 2022 and filed a fifth Motion for

Extension of Time on August 10. (Dkt. No. 58). Mr. Kaeding claimed that CRCC did

not allow him to use the assistive technologies necessary to efficiently communicate

with counsel. (Id.) In addition, Mr. Kaeding argued that his attorney time was limited,

that he currently had no access to his legal materials, and that his chronic health

conditions had not improved. (Id.) The United States did not oppose the motion for a

final 60-day continuance. (Id.; Dkt. No. 59).

       Mr. Kaeding now requests a sixth extension and the United States objects. (Dkt.

Nos. 63, 64). In support of his Motion, Mr. Kaeding cites continuing barriers to

communicating with counsel (though admits that he is able to contact counsel at least

once a week on Zoom), his ongoing poor health, and his limited ability to review

discovery electronically and in print form. (Dkt. No. 63). The United States replies that

Mr. Kaeding has had discovery for several months, which is sufficient time to determine

which, if any, pretrial motions to file. (Dkt. No. 64). It further argues that the case is a

“straightforward one-defendant fraud case with a routine premises search warrant and

statement made by the defendant.” (Id.) Counsel for Mr. Kaeding has not contradicted

this characterization of the case.

       The Court finds that nine months is enough time, even with the undoubted

challenges that this case has presented, for Mr. Kaeding to become familiar with the

charges against him, for his counsel to review discovery for issues requiring pretrial

         CASE 0:21-cr-00169-ECT-JFD         Doc. 75     Filed 10/14/22     Page 5 of 5




    motion practice, and for Mr. Kaeding and his counsel to determine what, if any, pretrial

    motions they should file. While parts of this case may (or may not) be complicated,

    decisions about pretrial motion practice in this case are not. This is a case with one

    defendant, a search warrant, two seizure warrants, and two interviews with law

    enforcement. (Tr. 2 14–15, 18, 19–20, 41–42). The Court will not grant the extension.

           Accordingly, based on all the files, records, and proceedings herein, IT IS

    HEREBY ORDERED that Mr. Kaeding’s Sixth Motion for Continuance of Motion

    Hearing is DENIED. All deadlines set in the Court’s previous Order (Dkt. No. 59)

    remain in effect.


    Dated: October 14, 2022                        s/ John F. Docherty
                                                   JOHN F. DOCHERTY
                                                   United States Magistrate Judge




2
 “Tr.” refers to the official transcript of the January 7, 2022 arraignment, initial appearance,
and detention hearing in this case. The transcript is not filed under seal.

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