Deferred Prosecution Agreement — Campbell Sales Group (E.D.N.C.)
Summary
A deferred prosecution agreement between Campbell Sales Group, Inc. and the United States Attorney’s Office for the Eastern District of North Carolina, filed February 25, 2025 as Document 1 in Case 7:25-cr-00014-FL in the U.S. District Court for the Eastern District of North Carolina. The company agrees to the filing of a criminal information charging two counts of wire fraud under Title 18, United States Code, Section 1343, and admits the facts in an attached Statement of Facts. The agreement runs three (3) years, requires continuing cooperation, and provides that the Office will seek dismissal with prejudice if the company complies. The company agrees to pay a Criminal Fine of $1,000,000 and Restitution of $499,164.50 to the United States Small Business Administration, a Total Monetary Penalty of $1,499,164.50. Counsel for the company is Sergio E. Acosta of Akerman LLP.
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“Deferred Prosecution Agreement — Campbell Sales Group (E.D.N.C.).”
Original at ecf.nced.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-usa-v-campbell-sales-group-dkt-1-e-d-n-c-66136a2fab/
, SHA-256 7a304ec55658b100720499273213ee966d8e4b2c03ddccebd4e15160189a1491.Full text
FILED
FEB 25 2025
UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NORTH CAROLINA
SOUTHERN DIVISION
No ] : 25"-- CltQ- \4 - FL-
UNITED STATES OF AMERICA )
)
V. ) DEFERRED PROSECUTION
) AGREEMENT
CAMPBELL SALES GROUP, INC. )
d/b/a LeatherltaliaUSA )
_______________ )
The defendant, Campbell Sales Group, Inc. d/b/a LeatherltaliaUSA (the
"Company"), and the United States Attorney's Office for the Eastern District of
North Carolina (the "Office") hereby enter into this Deferred Prosecution Agreement
(the "Agreement").
Criminal Information and Acceptance of Responsibility
1. The Company acknowledges and agrees that the Office will file a
Criminal Information (the "Information"), a copy of which is attached hereto as
Attachment A and incorporated herein by reference, in the United States District
Court for the Eastern District of North Carolina charging the Company with two
counts of wire fraud, in violation of Title 18, United States Code, Section 1343. By
executing the Agreement, the Company knowingly (a) waives any and all rights it
has to have the crime charged in the Information presented to a grand jury and
prosecuted by indictment, as well as all rights to a speedy trial pursuant to the
Sixth Amendment to the United States Constitution, Title 18, United States Code,
Section 3161, and Federal Rule of Criminal Procedure 48(b); (b) waives any and all
objections with respect to venue and applicable statutes of limitations for any
charges by the United States arising out of the conduct described in the Statement
of Facts, a copy of which is attached hereto as Attachment B and incorporated
herein by reference; and (c) consents to the filing of the Information, as provided by
the terms of this Agreement, in the United States District Court for the Eastern
District of North Carolina. The Office agrees to defer prosecution of the Company
pursuant to the terms and conditions described below.
2. The Company admits, accepts, and acknowledges that (a) it is
responsible under United States law for the acts of its officers, directors, employees,
and agents with respect to the conduct described in the Information and the
Statement of Facts, and (b) the facts described in the Statement of Facts are true
and accurate. Should the Office pursue the prosecution that is deferred by this
Agreement, the Company stipulates to the admissibility of the Statement of Facts
Case 7:25-cr-00014-FL Document 1 Filed 02/25/25 Page 1 of 8
in any proceeding, including any trial, guilty plea, or sentencing proceeding, and
will not contradict any facts in the Statement of Facts at any such proceeding.
Term of the Agreement
3. The Agreement shall be in effect for a period beginning on the date on
which the Information is filed and ending three (3) years from such date (the
"Term"). The Company agrees that, in the event that the Office determines, in its
sole discretion, that the Company has knowingly violated any provision of the
Agreement or has knowingly failed to completely perform or fulfill each of the
Company's obligations under the Agreement, an extension or extensions of the
Term may be imposed by the Office, in its sole discretion, for up to a total additional
time period of twelve (12) months, without prejudice to the Office's right to proceed
with the prosecution as provided herein. Any extension of the Agreement extends
all terms of the Agreement. Conversely, in the event the Office finds, in its sole
discretion, that the provisions of the Agreement have been satisfied, the Office may
elect to terminate the Agreement early. If the Court rejects the Agreement, all
provisions of the Agreement shall be deemed null and void, and the Term shall be
deemed not to have begun.
Relevant Considerations
4. The Office enters into this Agreement based on the individual facts
and circumstances presented by this case, including:
(a) the Company did not voluntarily self-disclose the offense
conduct to the Office or to any law enforcement agency, and as a
result, the Company was not eligible for a more significant
discount on the fine amount or the form of resolution;
(b) the seriousness of the offense conduct;
(c) the Company received credit, in addition to the two-point
downward adjustment to the Sentencing Guidelines, in the form
of a reduction from the bottom of the Sentencing Guidelines fine
range, for its cooperation with the Office's investigation;
(d) the Company has no prior criminal history; and
(e) the Company has committed to continuing to cooperate with the
Office as described below.
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Case 7:25-cr-00014-FL Document 1 Filed 02/25/25 Page 2 of 8
Continuing Cooperation
5. The Company shall cooperate fully with the Office in any and all
matters relating to the conduct described in this Agreement and the Statement of
Facts, or any individual or entity r eferred to therein, as well as any other conduct
that may violate federal criminal law, subject to applicable law and regulations,
until the later of the date upon which all investigations and prosecutions arising
out of such conduct are concluded, or the end of the Term. At the request of the
Office, the Company shall also cooperate fully with other domestic or foreign law
enforcement and regulatory authorities and agencies, in any investigation of the
Company or any of its present or former officers, directors, employees, agents and
consultants, or any other party, in any and all matters relating to the conduct
described in the Agreement and the Statement of Facts. The Company agrees that
its cooperation pursuant to this paragraph shall include, but not be limited to, the
following:
(a) cooperate fully with the Office and any other federal law
enforcement agency designated by the Office regarding all
matters related to the Office's investigation;
(b) retain all records relating to the Office's investigation for a
period of ten (10) years from the end of the Term.
(c) assist the Office or any designated federal law enforcement
agency in any investigation, prosecution, or civil proceeding
arising out of or related to the Office's investigation by providing
logistical and technical support for any meeting, interview,
grand jury proceeding, or any trial or other court proceeding;
(d) use its best efforts to promptly secure the attendance and
truthful statements or testimony of any current or former
officer, director, employee, agent, or consultant of the Company
at any meeting or interview or before any grand jury or at any
trial or other court proceeding regarding matters arising out of
or related to the Office's investigation;
(e) provide testimony of a competent witness as needed to enable
the Office and any designated federal law enforcement agency to
use the information and evidence obtained pursuant to the
Company's cooperation with the Office before a grand jury or at
any trial or other court proceeding regarding matters arising out
of or related to the Office's investigation;
(f) provide the Office, upon request, consistent with applicable law
and regulations, all information, documents, records, or other
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Case 7:25-cr-00014-FL Document 1 Filed 02/25/25 Page 3 of 8
tangible evidence not protected by a valid claim of privilege or
work product regarding matters arising out of or related o the
Office's investigation about which the Office or any designated
federal law enforcement agency inquires.
6. Nothing in this Agreement shall require the Company to waive any
protections of the attorney-client privilege, attorney work product doctrine, or any
other applicable privilege unless the Company voluntarily chooses to waive any
such privilege. Nothing in this Agreement shall require the Company to violate the
law of any jurisdiction in which it operates.
Payment of Monetary Penalties and Restitution
7. The Company agrees to pay a Criminal Fine in the amount of
$1,000,000 to the United States Treasury. The Company further agrees to pay
Restitution to the United States Small Business Administration in the amount of
$499,164.50. The Company agrees to pay the combined Criminal Fine and
Restitution amount of $1,499,164.50 ("Total Monetary Penalty'') not later than ten
(10) business days after approval of this Agreement by the United States District
Court for the Eastern District of North Carolina.
8. The Total Monetary Penalty is final and shall not be refunded.
Furthermore, nothing in this Agreement shall be deemed an agreement by the
Office that the Total Monetary Penalty is the maximum penalty that may be
imposed in any future prosecution, and the Office is not precluded from arguing in
any future prosecution that the Court should impose a higher fine, although the
Office agrees that under those circumstances, it will recommend to the Court that
any amount paid under this Agreement should be offset against any fine the Court
imposes as part of a future judgment.
9. The Company agrees that it will not file a claim or a petition for
remission, restoration, or any other assertion of ownership of request for return
relating to the payment of the Total Monetary Penalty, or an action or motion
seeking to collaterally attack the seizure, restraint, forfeiture, or conveyance of the
Total Monetary Penalty, nor shall it assist any others in filing any such claims,
petitions, actions, or motions.
10. The Company shall not seek or accept, directly or indirectly,
reimbursement or indemnification from any source with regard to the penalty or
disgorgement amounts that the Company pays pursuant to this Agreement or any
other agreement concerning the conduct set forth in the Statement of Facts.
11. The Company acknowledges that no tax deduction or other offset may
be sought in connection with the payment of any part of the Total Monetary
Penalty.
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Case 7:25-cr-00014-FL Document 1 Filed 02/25/25 Page 4 of 8
Conditional Release from Liability
12. Subject to Paragraphs 15 through 19 below, the Office agrees, except
as provided in this Agreement, that it will not bring any criminal or civil case
against the Company relating to any of the conduct described in either the
Statement of Facts or the Information filed pursuant to this Agreement, or for
conduct that the Company disclosed to the Office prior to the signing of this
Agreement. This Agreement does not provide any protection against prosecution for
any future conduct by the Company. In addition, this Agreement does not provide
any protection against prosecution of any individuals, regardless of their affiliation
with the Company. The Office, however, may use any information related to the
conduct described in the Statement of Facts against the Company:
(a) in a prosecution for perjury or obstruction of justice;
(b) in a prosecution for making a false statement; or
(c) in a prosecution or other proceeding relating to any crime of
violence.
Deferred Prosecution
13. In consideration of the undertakings agreed to by the Company herein,
the Office agrees that any prosecution of the Company for the conduct set forth in
the Statement of Facts, and for the conduct that the Company disclosed to the
Office prior to the signing of this Agreement, be and hereby is deferred for the
Term. To the extent there is conduct disclosed by the Company that the parties
have specifically discussed and agreed is not covered by this Agreement, such
conduct will not be exempt from further prosecution and is not within the scope of or
relevant to this Agreement.
14. The Office further agrees that if the Company fully complies with all of
its obligations under this Agreement, the Office will not continue the criminal
prosecution against the Company described in Paragraph 1 above and, at the
conclusion of the Term, this Agreement shall expire. Within ninety (90) days of the
Agreement's expiration, the Office shall seek dismissal with prejudice of the
Information filed against the Company described in Paragraph 1 above and agrees
not to file charges in the future against the Company based on the conduct
described in this Agreement and the Statement of Facts.
Breach of the Agreement
15. If, during the Term, the Company: (a) commits any felony under U .S.
federal law; (b) provides •in connection with this Agreement deliberately false,
incomplete or misleading information, including in connection with its disclosure of
5
Case 7:25-cr-00014-FL Document 1 Filed 02/25/25 Page 5 of 8
information about individual culpability; (c) fails to cooperate as set forth in
Paragraph 5 of this Agreement; or (e) otherwise fails specifically to perform or to
fulfill completely each of the Company's obligations under the Agreement,
regardless of whether the Office becomes aware of such a breach after the Term is
complete, the Company shall thereafter be subject to prosecution for any federal
criminal violation of which the Office has knowledge, including, but not limited to,
the charge in the Information described in Paragraph 1 above and charges that
arise from the conduct set forth in the Statement of Facts, which may be pursued by
the Office in the United States District Court for the Eastern District of North
Carolina or any other appropriate venue.
16. Determination of whether the Company has breached the Agreement
and whether to pursue prosecution of the Company shall be in the Office's sole
discretion. Any such prosecution may be premised on information provided by the
Company or its personnel. Any such prosecution relating to the conduct described
in the Statement of Facts or relating to conduct known to the Office prior to the
date on which this Agreement was signed that is not time-barred by the applicable
statute of limitations on the date of the signing of this Agreement may be
commenced against the Company, notwithstanding the expiration of the statute of
limitations, between the signing of this Agreement and the expiration of the Term
plus one year. Thus, by signing this Agreement, the Company agrees that the
statute of limitations with respect to any such prosecution that is not time-barred
on the date of the signing of this Agreement shall be tolled for the Term plus one
year. In addition, the Company agrees that the statute of limitations as to any
violation of federal law that occurs during the Term will be tolled from the date
upon which the violation occurs until the earlier of the date upon which the Office is
made aware of the violation or the duration of the Term plus five (5) years, and that
this period shall be excluded from any calculation of time for purposes of the
application of the statute of limitations.
17. In the event the Office determines that the Company has breached this
Agreement, the Office agrees to provide the Company with written notice prior to
instituting any prosecution resulting from such breach. Within thirty (30) days of
receipt of such notice, the Company shall have the opportunity to respond to the
Office in writing to explain the nature and circumstances of the breach, as well as
the actions the Company has taken to address and remediate the situation, which
the Office shall consider in determining whether to pursue prosecution of the
Company.
18. In the event that the Office determines that the Company has breached
this Agreement: (a) all statements made by or on behalf of the Company to the
Office or to the Court, including the facts in the Statement of Facts, and any
testimony given by the Company before a grand jury, a court or any tribunal, or at
any legislative hearings, whether prior or subsequent to this Agreement, and. any
leads derived from such statements or testimony, shall be admissible in evidence in
6
Case 7:25-cr-00014-FL Document 1 Filed 02/25/25 Page 6 of 8
any and all criminal proceedings brought by the Office against the Company; and
(b) the Company shall not assert any claim under the United States Constitution,
Rule 1 l(f) of the Federal Rules of Criminal Procedure, Rule 410 of the Federal Rules
of Evidence, or any other federal rule that any such statements or testimony made
by or on behalf of the Company prior or subsequent to this Agreement, or any leads
derived therefrom, should be suppressed or are otherwise inadmissible. The
decision whether conduct or statements of any current director, officer or employee,
or any person acting on behalf of, or at the direction of, the Company, will be
imputed to the Company for the purpose of determining whether the Company has
violated any provision of this Agreement shall be in the sole discretion of the Office.
19. The Company acknowledges that the Office has made no
representations, assurances, or promises concerning what sentence may be imposed
by the Court if the Company breaches this Agreement and this matter proceeds to
judgment. The Company further acknowledges that any such sentence is solely
within the discretion of the Court and that nothing in this Agreement binds or
restricts the Court in the exercise of such discretion.
Sale, Merger, or Other Change in Corporate Form of Company
20. Except as may otherwise be agreed by the parties in connection with a
particular transaction, the Company agrees that in the event that, during the Term,
it undertakes any change in corporate form, including if it sells, merges or transfers
business operations that are material to the Company's operations, or to the
operations of any subsidiaries or affiliates involved in the conduct described in the
Statement of Facts, as they exist as of the date of this Agreement, whether such
sale is structured as a sale, asset sale, merger, transfer or other change in corporate
form, it shall include in any contract for sale, merger, transfer or other change in
corporate form a provision binding the purchaser, or any successor in interest
thereto, to the obligations described in this Agreement. The Company shall obtain
approval from the Office at least thirty (30) days prior to undertaking any such sale,
merger, transfer, or other change in corporate form, including dissolution, in order
to give the Office an opportunity to determine if such change in corporate form
would impact the terms or obligations of the Agreement.
Limitations on Binding Effect of Agreement
21. This Agreement is binding on the Company and the Office but
specifically does not bind any other component of the Department of Justice, other
federal agencies, or any state, local or foreign law enforcement or regulatory
agencies, or any other authorities, although the Office will bring the cooperation of
the Company and its compliance with its other obligations under this Agreement to
the attention of such agencies and authorities if requested to do so by the Company.
7
Case 7:25-cr-00014-FL Document 1 Filed 02/25/25 Page 7 of 8
Notice
22. Any notice to the Office under this Agreement shall be given by
personal delivery, overnight delivery by a recognized delivery service, or registered
or certified mail, addressed to Chief, Criminal Division, United States Attorney's
Office, Eastern District of North Carolina, 150 Fayetteville Street, Suite 2100,
Raleigh, North Carolina 27601. Any notice to the Company under this Agreement
shall be given by personal delivery, overnight delivery by a recognized delivery
service, or registered or certified mail, addressed to Sergio E. Acosta, Akerman LLP,
71 South Wacker Drive, 47th Floor, Chicago, Illinois 60606. Notice shall be effective
upon actual receipt by the Office or the Company.
Complete Agreement
23. This Agreement, including its attachments, sets forth all the terms of
the agreement between the Company and the Office. No amendments,
modifications, or additions to this Agreement shall be valid unless they are in
writing and signed by the Office , the attorney(s) for the Company, and a duly
authorized representative of the Company.
1!~{£ftt/;ff;rzJ
Campbell Sales Group
d/b/a Lea ItaliaUSA
Sergio E 'A.cos a
Counsel for Campbell Sales Group
d/b/a Leather Italia
On behalf of the United States Attorney's Office for the Eastern District of
North Carolina, I accept this agreement.
Date: t;/?r/
. 9-..r(
DANIEL P . BUBAR
Acting United States Attorney
~
ADAM F. HULBIG
Assistant United States Attorney
Criminal Division
8
Case 7:25-cr-00014-FL Document 1 Filed 02/25/25 Page 8 of 8
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