at the time the restitution order is entered by the Court.1
- Date
- 2022-03-04
Summary
Defendant's Position on Sentencing in United States v. James Victor Punelli, Case No. 1:21-cr-00224-AJT, filed March 4, 2022 as Document 15 in the U.S. District Court for the Eastern District of Virginia. The filing states that the defendant pleaded guilty to a two-count Criminal Information charging false statements related to FEMA personal protective equipment and theft of government funds through the EIDL program, with an agreed EIDL loss of $141,000.00. It states the guidelines are calculated at net offense level 12, criminal history category I, with a range of 10 to 16 months. Citing 18 U.S.C. § 3553(a), defense counsel asks for a variance and a probationary sentence, noting that the full $141,000.00 in restitution is held in counsel's trust account. Exhibit 1 is the defendant's statement accepting responsibility and Exhibit 2 contains letters of support.
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Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 1 of 13 PageID# 99
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Alexandria Division
UNITED STATES OF AMERICA :
:
v. : CASE NO. 1:21-CR-224
:
JAMES VICTOR PUNELLI :
:
Defendant. :
DEFENDANT’S POSITION ON SENTENCING
In accordance with this Court’s policy regarding guideline sentencing, 18 U.S.C. §
3553(a), and the remedial scheme set forth in United States v. Booker, 543 U.S. 220 (2005) and
United States v. Hughes, 401 F.3d 540 (4th Cir. 2005), James Punelli, by counsel, respectfully
submits his position on sentencing.
I. Summary of Defendant’s Position
This matter is before the Court for imposition of sentence pursuant to Mr. Punelli’s guilty
plea to a two count Criminal Information as to the offenses of making false statements related to
FEMA personal protective equipment (“PPE”) and theft of government funds through the Small
Business Administration loan program, commonly referred to as the Economic Injury Disaster
Loan Program (“EIDL”), in the amount of $141,000.00.
There are no losses related to the false statement charge and it is agreed that the EIDL loss
is $141,000.00. The Presentence Investigation (“PSI”) is comprehensive and there are no
substantive corrections or disputes. It is agreed the guidelines are correctly calculated at a net
offense level of 12 with a criminal history category I. However, consistent with the Government’s
sentencing recommendation, it is Mr. Punelli’s request that the Court consider a variance and the
imposition of an appropriate period of probation, restitution, and, if the Court deems it necessary,
a term of community service hours to be completed within the probationary period.
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 2 of 13 PageID# 100
As to restitution, Mr. Punelli has worked exceedingly hard and has recognized it is his
obligation to repay the government as soon as possible. Mr. Punelli’s efforts have been successful.
He has delivered $141,000 – the full amount of his restitution obligation – to counsel, to be paid
at the time the restitution order is entered by the Court.1
II. Background
The PSI, Statement of Facts, and the Government’s sentencing position well state Mr.
Punelli’s personal history, military service, family circumstances, and work history. From all of
that, the Court can reasonably divine that this man is one of quality who, due to unprecedented
times, financial failures, and pressures, deviated from a life of service and good work. Mr. Punelli
has readily admitted his failures in business and personally, which took him to take the steps now
causing him to restart his life as a convicted felon with few resources or back up beyond his own
ability to work hard and succeed. Mr. Punelli is committed to doing just that.
A 1985 Naval Academy graduate who served five years of active duty and an additional
seven years in the reserves, Mr. Punelli has been committed to service and from that career learned
the value of hard work. It is in that light that Mr. Punelli became a successful entrepreneur,
although as accurately relayed in the PSI, the burdens of his business, the uncertainty of the
COVID-19 pandemic impact, and other financial pressures brought about the actions set forth in
the Statement of Facts. While wrongful, the acts occurred during a desperate time for Mr. Punelli
trying to save his company and livelihood. Clearly, he did not make acceptable decisions and for
that he is now a convicted felon. James Punelli does not blame anyone else, make excuses, nor
does he give any reason to believe he will be back before this or any Court for wrongful conduct.
1Counsel represents to the Court that the full amount of $141,000.00 is being held the trust account
of Greenspun Shapiro PC to be paid as restitution as directed by the Court.
2
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 3 of 13 PageID# 101
III. PSR, Guidelines and Loss Calculation
For all the reasons underlying the Government’s sentencing recommendation, guidelines
of 10 to 16 months, driven solely by the loss amount, significantly overstate the seriousness of his
offense and fail to account for Mr. Punelli’s actual efforts to perform on the contract and supply
desperately needed masks during an unprecedented international health emergency and for his long
history of honorable service to this country.
IV. Application of the Sentencing Factors
A. Nature and Circumstances of the Offense and History and Characteristics of Mr.
Punelli.
As stated in the PSI and Statement of Facts, during the early stages of the pandemic Mr.
Punelli worked hard to provide the Government the much-needed personal protection items due to
the COVID-19 pandemic. He worked exceedingly hard to bring the contract to fruition, but
ultimately could not do so, operating in an environment where securing reliable supplies of face
masks was highly unpredictable and contracts for PPE were routinely diverted to the highest
bidder. And while Mr. Punelli truly believed he could deliver on the contract, he admittedly made
representations that were not accurate during the process. There were, however, no losses that
resulted from his false statements to FEMA.
With regards to the EIDL Loan transaction, Mr. Punelli applied for and received
$141,000.00 in loan benefits. As represented by his guilty plea to Count 2, Mr. Punelli made false
representations in the EIDL application process. Mr. Punelli has continued to work and marshal
his resources and is prepared to immediately pay the full amount of restitution.
As to all of the issues of concern to the Government, Mr. Punelli was approached by law
enforcement and gave full statements and explanations about his actions at the earliest stage. He
3
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 4 of 13 PageID# 102
did not ask for counsel to be present or otherwise deflect the agents’ inquiries, despite knowing
that he did not have to talk to law enforcement and certainly not without a lawyer present. To the
contrary, Mr. Punelli stated what he did, explained his circumstances and reasoning, and
cooperated fully. Even after counsel was retained, Mr. Punelli continued to be cooperative,
providing additional information and explanations to investigations. It is clear that Mr. Punelli has
and does fully accept responsibility for his actions and does not place blame on anyone else.
B. The Need for the Sentence Imposed to Reflect the Seriousness of the Offense,
Promote Respect for the Law, Provide Just Punishment for the Offense, and
Afford Adequate Deterrence.
The sentence jointly recommended by the parties sufficiently reflects the seriousness of the
offense and is a just punishment for the offense conduct, while simultaneously meeting the goals
of sentencing and promoting respect for the law. James Punelli stands before the Court as a
convicted felon for life. His civil rights, including the right to vote and serve on a jury, have been
lost. He has made his obligation to repay the government his number one priority, ahead of any
of his other creditors. He knows that his restart to his employment and work career will be
hampered by his convictions and that every action he takes must be to the highest standards.
There is also no question that the numerous consequences faced by Mr. Punelli as a result
of his offense afford more than adequate general deterrence against similar conduct. Over the
course of his lifetime, the felony convictions and loss of his earning potential, along with the
collateral consequences of his conviction, are far greater punishments than a term of incarceration.
The myriad laws, rules, and regulations that discriminate against ex-offenders and prevent
their reintegration into the community were poignantly described by Judge Frederick Block of the
Eastern District of New York as “a form of ‘civil[l] death’ that send[s] the unequivocal message
4
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 5 of 13 PageID# 103
that ‘they’ are no longer part of ‘us.’” United States v. Nesbeth, No. 15-CR-18 (FB), 2016 WL
3022073, at *1 (E.D.N.Y. May 24, 2016). The barriers raised by the ever-expanding collateral
consequences, branding so many millions with the “Mark of Cain,” also carry with them new and
potent deterrent effects. Surely, members of the public who learn of this case will be deterred from
ever engaging in similar conduct. Mr. Punelli’s felony conviction and his underlying conduct will
also remain instantaneously available to any person in the business world conducting an internet
search or background investigation.
Finally, based on his personal history and the losses he has suffered, Mr. Punelli has shown
that he poses no risk of reoffending. His letter to the probation officer accepting responsibility
(Exhibit 1) is an emotional statement of his contrition and recognition of how far he has fallen.
Letters from individuals who claim the good fortune to know him, speak of him as an honorable
man, whose tireless dedication and distinguished service to this country have earned him the
greatest respect. (Exhibit 2). All of these factors militate strongly in favor of a below-guidelines
sentence and no active incarceration. A probationary sentence meets all of the traditional goals of
sentencing decisions and is a just and appropriate sentence in this case.
C. The Need to Avoid Unwarranted Sentence Disparity.
Depending on the circumstances of each case evaluated discretely, this financial crime
would reflect a probationary result in many instances in state and federal proceedings. A
probationary sentence is not outside of the norm and does not reflect a disparit sentencing result.
5
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 6 of 13 PageID# 104
CONCLUSION
Mr. Punelli’s fall from grace has been hard and impactful. He now lives in a small
apartment and his circumstances are humble. He depends on his children for assistance instead of
being able to offer assistant to them.
Mr. Punelli’s sole focus going forward is rebuilding his life and career in a productive and
positive manner and being the best husband and father, he can be. With the unwavering support
of his friends and family, he will undoubtedly succeed in that pursuit.
For all these reasons, James Punelli, by counsel, respectfully requests a probationary
sentence. He surely understands what he has done and the need to assure this Court that he will
never engage in such actions in the future.
Respectfully Submitted,
James Punelli,
By Counsel
GREENSPUN SHAPIRO PC
BY: /s/
Peter D. Greenspun
Virginia Bar No. 18052
3955 Chain Bridge Road
Second Floor
Fairfax, Virginia 22030
(703) 352-0100
(703) 591-7268
pdg@greenspunlaw.com
6
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 7 of 13 PageID# 105
CERTIFICATE OF SERVICE
I hereby certify that on March 4, 2022, I electronically filed the foregoing pleading with
the Clerk of Court using the CM/ECF system, which then sent a notification of such filing (NEF)
to the following:
Christopher Hood
Assistant United States Attorney
United States Attorney's Office,
Alexandria Division
2100 Jamieson Avenue
Alexandria, Virginia 22314
Christopher.hood2@usdoj.gov
/s/
Peter D. Greenspun
7
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 8 of 13 PageID# 106
EXHIBIT 1
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 9 of 13 PageID# 107
Statement of James V. Punelli
Regarding the charges to which I have pled guilty in this court, I accept full responsibility for my
actions. As a Plebe at Annapolis, we were taught day one that the only answer to a failure,
indiscretion, or mistake was “no excuse, sir”. Since this is how I was taught and previously acted
throughout my life, I find it difficult to ask for any forbearance from the court regarding
sentencing. It is however, my intention in this statement to present some idea of my state of
mind at the time, what the repercussions have been to me personally irrespective of any
sentence, and most importantly to accept responsibility for my actions.
During the time these events occurred I was undergoing a tremendous amount of stress
financially in my businesses. I took actions and made statements that were known to me to be
wrong at the time and in hindsight appear even more so. This is not an excuse for my actions,
but a frank statement of how I acted improperly and inconsistently with my faith, guiding
principles, and lifelong conduct. Previously I would not have thought myself capable of these
actions; and in hindsight understand even more clearly how wrongly I acted.
I would like the court to know that I am quite chastened interiorly and, of course, in the eyes of
the world. The loss and degradation already suffered is what weighs most heavily on me. The
damage to my own self-respect, reputation, business and not least the loss of respect among my
friends and family is the most devesting punishment I could suffer. I ask the court to take this
into account when considering my sentence.
I accept responsibility for my actions. The sentence to be imposed by this court will be accepted
with humility and in the spirit of reflection and atonement. Please know I am firmly resolved to
act with integrity in everything I do from here on.
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 10 of 13 PageID# 108
EXHIBIT 2
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 11 of 13 PageID# 109
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 12 of 13 PageID# 110
Karl Scott
385 Homestead Road
Hillsborough, NJ, 08844
December 2nd, 2021
RE: Mr. James Punelli
To Whom it May Concern,
I am writing this on behalf of James ͞Jim͟ Punelli. Jim and I have been colleagues and friends for over
nine years. In this time, he has proven to be of fine and responsible character. In general, Jim, a small
business owner, is known for being a dedicated husband and father. As graduate of the Naval Academy,
and former Marine Corps officer, his current situation is quite out of character for him.
I first became aware of Jim͛s solid character when my former company conducted demonstrations for
his organization. As one of the principals in his company, he took the time to work with my team,
ensuring that they had everything needed. Though he had personnel tasked with coordinating with the
team, he leaned in at every opportunity to make sure things went smoothly, taking a personal interest in
the well being of my team.
Since then, Jim and I have become good friends and have coordinated on a number of projects, many of
which were humanitarian in nature. His tireless dedication to doing the right thing at all times is one of
the primary reasons we have remained friends over the years.
Mr. James Punelli is an authentic, virtuous, and honorable man and has shown a steadfast and resolute
demeanor in moving past this challenge in a constructive and successful manner. It is my hope that this
letter will act as a positive and contributing factor when the court considers this matter.
Sincerely,
Karl Scott
Case 1:21-cr-00224-AJT Document 15 Filed 03/04/22 Page 13 of 13 PageID# 111
01DEC2021
Re: Letter of Recommendation for James Punelli
To the Court:
Thank you for allowing me to write to you in behalf of James Punelli. Before my comments
regarding him, I think it helpful to let you know my background. I have served in the Navy as a
Cryptologic Officer and Defense Attaché and am retired at the rank of Commander. I am also
retired from the Defense Intelligence Agency, where I was a Senior Intelligence Officer in the
Defense Clandestine Service. This is critical to mention, since for my career in the Intelligence
Community it was critical to be an astute judge of character.
In my years of knowing James, he has demonstrated superior character both personally and
professionally. I am not privy to the exact details of this case, but to me it seems an aberration
from the way in which he has conducted his life. James has always shown great care to do the
right thing for his family, friends, and business associates. He served in the Navy and Marine
Corps with distinction. Moreover, James continues to look for ways to serve with fidelity his
family and others around him.
It is my hope that this letter will add some clarity to type of person for whom you are
considering a sentence. In my opinion his heretofore outstanding character and service should
mitigate the severity of punishment.
Thank you for considering my statements in this matter.
Best regards,
Cynan J.M. Benedikt
CDR USN (Ret)
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