Memorandum and Order on Defendant’s Motion to Dismiss Indictment for Grand Jury Misconduct and Use of Privileged Information Saylor, C.j — No. 1:23-cr-10299 (Dkt. 78, D. Mass.)

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A Memorandum and Order on Defendant's Motion to Dismiss Indictment for Grand Jury Misconduct and Use of Privileged Information, Document 78, filed August 26, 2024 in United States v. Dean A. Tran, Criminal No. 23-10299-FDS (Case 1:23-cr-10299-FDS), in the U.S. District Court for the District of Massachusetts, signed by Chief Judge F. Dennis Saylor IV. The order states that the indictment alleges the defendant submitted fraudulent Pandemic Unemployment Assistance claims while receiving income as a consultant and willfully underreported his income on federal tax returns for 2020, 2021 and 2022. The court denies the motion, holding that the government was authorized by statute to obtain the challenged records and present his tax returns to the grand jury.

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          Case 1:23-cr-10299-FDS Document 78 Filed 08/26/24 Page 1 of 2




                            UNITED STATES DISTRICT COURT
                             DISTRICT OF MASSACHUSETTS

_______________________________________
                                       )
UNITED STATES of AMERICA               )
                                       )                     Criminal No.
      v.                               )                     23-10299-FDS
                                       )
DEAN A. TRAN,                          )
                                       )
            Defendant.                 )
_______________________________________)

            MEMORANDUM AND ORDER ON DEFENDANT’S MOTION
         TO DISMISS INDICTMENT FOR GRAND JURY MISCONDUCT AND
                     USE OF PRIVILEGED INFORMATION


SAYLOR, C.J.

       This is a criminal case arising from alleged wire fraud and filing of false tax returns.

According to the indictment, defendant Dean A. Tran submitted fraudulent claims for Pandemic

Unemployment Assistance (“PUA”) while working and receiving income as a consultant. The

indictment also alleges that he willfully underreported his income on federal tax returns for the

years 2020, 2021, and 2022.

       Defendant has moved to dismiss the indictment on the ground that the government

improperly obtained and disclosed “privileged” information to the grand jury. Specifically,

defendant objects to the government’s use of (1) an “Excess Wage Report” obtained from the

New Hampshire Department of Revenue, (2) records obtained from the Massachusetts Division

of Unemployment Assistance, and (3) his federal tax returns.

       The motion to dismiss is entirely without merit. The government was authorized by

statute to obtain all of the challenged evidence, and that evidence is not otherwise subject to any

statutory or common-law privilege that would preclude its presentation to a federal grand jury.
          Case 1:23-cr-10299-FDS Document 78 Filed 08/26/24 Page 2 of 2




       First, the United States Department of Labor – Office of the Inspector General (“DOL-

OIG”) is expressly empowered by statute to “request such information or assistance as may be

necessary for carrying out [its duties and responsibilities] from any Federal, State, or local

governmental agency or unit thereof . . . .” 5 U.S.C. § 406(a)(3). The duties of the DOL-OIG

include the detection, investigation, and prevention of fraud and abuse in programs administered

or funded by the Department of Labor. See 5 U.S.C. § 404(a). The PUA program is

administered and funded by the United States Department of Labor. U.S. Dep’t of Lab.,

Unemployment Insurance Program Letter No. 16-20 (Apr. 5, 2020). Accordingly, in furtherance

of its investigation into defendant’s alleged fraud upon the PUA program, the DOL-OIG was

authorized by statute to request and receive the challenged records from both the New

Hampshire Department of Revenue and the Massachusetts Division of Unemployment

Assistance.

       Second, the Department of Justice is expressly empowered by statute to disclose to

federal grand juries the tax returns of an individual whose criminal liability as a taxpayer is being

investigated. 26 U.S.C. 6103(h)(2). The Department of Justice is further authorized to share tax-

return information with “officers and employees of [other] Federal agenc[ies] . . . working under

the direction of . . . the Department of Justice . . . .” 26 C.F.R. § 301.6103(h)(2). The

government was therefore authorized by statute to present defendant’s tax returns to the grand

jury and to share them with DOL-OIG.

       For the foregoing reasons, defendant’s motion to dismiss the indictment is DENIED.

So Ordered.


                                                  /s/ F. Dennis Saylor IV
                                                  F. Dennis Saylor IV
Dated: August 26, 2024                            Chief Judge, United States District Court



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