Response to Government’s Sentencing Memorandum — United States v. Reazuddin (Dkt. 57, W.D. Mo.)

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The defendant's Response to Government's Sentencing Memorandum in United States of America v. Mirza Michael Reazuddin, Case No. 23-cr-00067-BP, in the U.S. District Court for the Western District of Missouri, filed June 21, 2024 by counsel David McDonald. It responds to the government memorandum filed June 12th, 2024, which states that the defendant submitted a false loan application for a business no longer in operation. The response accepts that the business was not operating but states that he hoped to revive the hotel with the PPP loan funds. It explains that in 2014 he formed The Grandview Hotel, LLC, which operated a hotel in Kansas City under the name The Besthost Inn under a five-year lease.

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IN THE UNITED STATES DISTRICT COURT
                     FOR THE WESTERN DISTRICT OF MISSOURI

UNITED STATES OF AMERICA,
Plaintiff,
v.                                                          Case No. 23-cr-00067-BP

MIRZA MICHAEL REAZUDDIN,
Defendant.


             RESPONSE TO GOVERNMENT’S SENTENCING MEMORANDUM


       COMES NOW the Defendant, by and through counsel, David McDonald and responds

to the Sentencing Memorandum filed by the Government on June 12th, 2024, by stating the

following.

       The Defendant seeks to explain and clarify the facts surrounding the business at issue for

the Court. The Government’s Memorandum states that Defendant submitted a false loan

application on a business which was no longer in operation. While this was the case, the

Defendant remained hopeful he could revive the hotel with the PPP loan funds.

       In 2014, Defendant formed a one-man Missouri Limited Liability Company (which is

still in existence) under the name of "The Grandview Hotel, LLC" and operated the business

under the assumed name of "The Besthost Inn." Grandview Hotel, LLC entered into a five-year

Lease to operate a hotel called Besthost Inn located at 5701 Longview Rd, Kansas City, MO

64137. During the operation of the hotel, landlord's son, Cody Nguyen, joined the business as an

owner. There was eventually a falling out between the Defendant, Mr. Cody Nguyen and the

landlord which included a dispute over ownership. This dispute led to litigation between the




        Case 4:23-cr-00067-BP         Document 57       Filed 06/21/24      Page 1 of 4

parties during the time of the PPP loan applications in which the Defendant was ultimately

unsuccessful.

            In 2020, when the CARES Relief Act was rolled out, Defendant received a barrage

of mail, email and telephone solicitation to apply for PPP loans. He had lost his income and felt

financial pressure. He was hopeful he would be successful in his litigation and then could use

the financial assistance for its stated purpose. The payroll numbers the Defendant entered in the

loan application were anticipated payroll and not actual payroll in existence being paid by the

Defendant at the time of the application. He was not successful in the litigation and never used

any of the funds for their state purposes. When the Defendant entered into the PPP loan, he

executed a Promissory Note and a Repayment Schedule in the event the loan is not used for the

intended purpose and had to be repaid upon its maturity in two years.

       Notwithstanding, defendant accepts full responsibility for obtaining the SBA loan. He

was wrong. In hindsight, the Defendant recognizes the gravity and unscrupulousness of his

actions. If he could take his actions back, he would in a heartbeat. The funds from this PPP loan

have truly ruined the Defendant’s life.

       As stated in the Defendant’s previous sentencing filing, he has now done everything he

can to try to right his wrongful actions. He has now accepted responsibility for what he did. He

has offered to cooperate with the Government in any way possible. He has agreed to transfer all

his rights to the “Georgia Property” which will, hopefully, satisfy his restitution obligation.




         Case 4:23-cr-00067-BP            Document 57      Filed 06/21/24      Page 2 of 4

    WHEREFORE, the defense requests the Court to grant its motion and impose a downward

variance to five years of probation. Alternatively, the defense requests the Court grant a two-

level downward departure for a total prison sentence of 18 months of incarceration.



                                                      Respectfully submitted,

                                                      /s/ __________________
                                                     David McDonald, KS#24434, MO#74073
                                                     100 East Park Street – Suite 8
                                                     Olathe, KS 66061
                                                     Ph: (913) 210-0844
                                                     dave@riveralawoffice.com
                                                     Attorney for the Defendant




        Case 4:23-cr-00067-BP          Document 57       Filed 06/21/24      Page 3 of 4

                             CERTIFICATE OF SERVICE

       I, David McDonald, hereby certify that a copy of the above and foregoing RESPONSE
was served on the prosecution, by electronic the date of filing.

                                         ___/s/___________________________
                                         David McDonald




        Case 4:23-cr-00067-BP      Document 57      Filed 06/21/24    Page 4 of 4

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