United States v. Karla Leticia Padilla-Reyna — Plea Agreement, Eastern District of Washington (ECF No. 26)

Summary

A plea agreement filed July 21, 2022 as ECF No. 26 in United States v. Karla Leticia Padilla-Reyna, a.k.a. Karla Padilla, Case No. 1:22-CR-2059-MKD-1, in the U.S. District Court for the Eastern District of Washington, between the United States, by United States Attorney Vanessa R. Waldref, and the defendant, represented by Robin C. Emmans and Ulvar W. Klein. The defendant agrees to plead guilty to Count 4 of the Indictment filed on May 17, 2022, wire fraud under 18 U.S.C. § 1343, which carries up to 20 years in prison, a fine of up to $250,000 and restitution. The stipulated facts state the defendant submitted three PPP loan applications and six EIDL applications for Queen B Collectibles, LLC with false information, requesting at least $256,168 and receiving $59,602. The agreement also covers the waiver of trial rights and immigration consequences.

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Case 1:22-cr-02059-MKD ECF No. 26 _ filed07/21/22 PagelD.83 Page 1 of 22

FILED IN THE
U.S. DISTRICT COURT
EASTERN DISTRICT OF WASHINGTON

Jul 21, 2022

SEAN F. MCAVOY, CLERK

Vanessa R. Waldref

United States Attorney

Eastern District of Washington
Tyler H.L. Tornabene

Daniel H. Fruchter

Assistant United States Attorneys
Frieda K. Zimmerman

Special Assistant United States Attorney
Post Office Box 1494

Spokane, WA 99210-1494
Telephone: (509) 353-2767

UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF WASHINGTON

UNITED STATES OF AMERICA, Case No.: 1:22-CR-2059-MKD-1
Plaintiff, Plea Agreement

KARLA LETICIA PADILLA-REYNA,
a.k.a. KARLA PADILLA

Defendant.

Plaintiff United States of America, by and through Vanessa R. Waldref,
United States Attorney the Eastern District of Washington, Tyler H. L. Tornabene
and Daniel H. Fruchter, Assistant United States Attorneys for the Eastern District
of Washington, and Frieda K. Zimmerman, Special Assistant United States
Attorney for the Eastern District of Washington, and Defendant KARLA LETICIA
PADILLA-REYNA (“Defendant”), both individually and by and through
Defendant’s counsel, Robin C. Emmans and Ulvar W. Klein, agree to the
following Plea Agreement.

1. Guilty Plea and Maximum Statutory Penalties

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Defendant agrees to enter a plea of guilty to Count 4 of the Indictment filed
on May 17, 2022, which charges Defendant with Wire Fraud, in violation of 18
U.S.C. § 1343, a Class C felony.

Defendant understands that the following potential penalties apply:

aterm of imprisonment of not more than 20 years;

a term of supervised release of not more than 3 years;
c a fine of up to $250,000;

d. restitution; and

e: a $100 special penalty assessment.

ya) Supervised Release

Defendant understands that if Defendant violates any condition of
Defendant’s supervised release, the Court may revoke Defendant’s term of
supervised release, and require Defendant to serve in prison all or part of the term
of supervised release authorized by statute for the offense that resulted in such term
of supervised release without credit for time previously served on postrelease
supervision, up to 2 years in prison.

Accordingly, Defendant understands that if Defendant commits one or more
violations of supervised release, Defendant could serve a total term of
incarceration greater than the maximum sentence authorized by statute for
Defendant’s offense or offenses of conviction.

3. The Court is Not a Party to this Plea Agreement

The Court is not a party to this Plea Agreement and may accept or reject it.
Defendant acknowledges that no promises of any type have been made to
Defendant with respect to the sentence the Court will impose in this matter.

Defendant understands the following:

a. sentencing is a matter solely within the discretion of the Court;
b. the Court is under no obligation to accept any recommendations

made by the United States or Defendant;

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4,

the Court will obtain an independent report and sentencing
recommendation from the United States Probation Office;

the Court may exercise its discretion to impose any sentence it
deems appropriate, up to the statutory maximum penalties;

the Court is required to consider the applicable range set forth
in the United States Sentencing Guidelines, but may depart
upward or downward under certain circumstances; and

the Court may reject recommendations made by the United
States or Defendant, and that will not be a basis for Defendant
to withdraw from this Plea Agreement or Defendant’s guilty

plea.

Potential Immigration Consequences of Guilty Plea

If Defendant is not a citizen of the United States, Defendant understands the

following:

pleading guilty in this case may have immigration
consequences;

a broad range of federal crimes may result in Defendant’s
removal from the United States, including the offense to which
Defendant is pleading guilty;

removal from the United States and other immigration
consequences are the subject of separate proceedings; and

no one, including Defendant’s attorney or the Court, can predict
with absolute certainty the effect of a federal conviction on

Defendant’s immigration status.

Defendant affirms that Defendant is knowingly, intelligently, and voluntarily

pleading guilty as set forth in this Plea Agreement, regardless of any immigration

consequences that Defendant’s guilty plea may entail.

5.

Waiver of Constitutional Rights

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Defendant understands that by entering this guilty plea, Defendant is

knowingly and voluntarily waiving certain constitutional rights, including the

following:
a the right to a jury trial;
b. the right to see, hear and question the witnesses;
c. the right to remain silent at trial;

d. the right to testify at trial; and
e. the right to compel witnesses to testify.

While Defendant is waiving certain constitutional rights, Defendant
understands that Defendant retains the right to be assisted by an attorney through
the sentencing proceedings in this case and any direct appeal of Defendant’s
conviction and sentence, and that an attorney will be appointed at no cost if
Defendant cannot afford to hire an attorney.

Defendant understands and agrees that any defense motions currently
pending before the Court are mooted by this Plea Agreement, and Defendant
expressly waives Defendant’s right to bring any additional pretrial motions.

6. Elements of the Offense

The United States and Defendant agree that in order to convict Defendant of

Wire Fraud, in violation of 18 U.S.C. § 1343, as charged in Count 4 of the
Indictment filed on May 17, 2022, the United States would have to prove the
following beyond a reasonable doubt.

a. First, Defendant knowingly devised, intended to devise, or
participated in a scheme or plan to defraud, or a scheme or plan
for obtaining money or property by means of false or fraudulent
pretenses, promises, or omitted facts;

b. Second, the statements made or facts omitted as part of the
scheme were material;

c. Third, Defendant acted with intent to defraud; and

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d. Fourth, Defendant used, or caused to be used, an interstate wire
communication to carry out or attempt to carry out an essential
part of the scheme.

Ve Factual Basis and Statement of Facts

The United States and Defendant stipulate and agree to the following: the
facts set forth below are accurate; the United States could prove these facts beyond
a reasonable doubt at trial; and these facts constitute an adequate factual basis for
Defendant’s guilty plea.

The United States and Defendant agree that this statement of facts does not
preclude either party from presenting and arguing, for sentencing purposes,
additional facts that are relevant to the Sentencing Guidelines computation or
sentencing, unless otherwise prohibited in this Plea Agreement.

The Economic Injury Disaster Loan Program

The Economic Injury Disaster Loan (“EIDL”) program is a Small Business
Administration (“SBA”) program that provides low-interest funding to small
businesses, renters, and homeowners affected by declared disasters. On March 27,
2020, the President signed into law the Coronavirus Aid, Relief, and Economic
Security (“CARES”) Act. That statute, along with the Coronavirus Preparedness
and Response Supplemental Appropriations Act, authorized the SBA to provide
EIDLs to eligible small businesses experiencing substantial financial disruption
due to the COVID-19 pandemic.

In order to obtain an EIDL, a qualifying business was required to submit an
application to the SBA providing information about its operations, such as the
number of employees, gross revenues for the 12-month period preceding the
disaster, and cost of goods sold in the 12-month period preceding the disaster. In
the case of EIDLs for COVID-19 relief, the 12-month period was the year
preceding January 31, 2020. The applicant was also required to certify that the

information in the application was true and correct to the best of the applicant’s

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knowledge. The amount of an EIDL, ifthe application was approved, was
determined based, in part, on the information provided in the application about
employment, revenue, and cost of goods sold. Any funds issued under an EIDL
were determined and issued directly by the SBA. EIDL funds were eligible to be
used to payroll expenses, sick leave, production costs, and business obligations
such as debts, rent, and mortgage payments. In addition to the EIDL loan amount,
EIDL applicants could also apply to obtain cash advances of up to $10,000 within
three days of application. Advances, which were determined based on the number
of employees that the applicant certified having, did not have to be repaid.

The Paycheck Protection Plan Loan Program

Another source of relief provided by the CARES Act was the authorization
of forgivable loans to small businesses for job retention and other certain expenses,
through a program referred to as the Paycheck Protection Program (“PPP”). In
order to obtain a PPP loan, a qualifying business was required to submit a PPP loan
application signed by an authorized representative of the business. The PPP loan
application required the business (through its authorized representative) to
acknowledge the program rules and make certain affirmative certifications in order
to be eligible to obtain the PPP loan. In the PPP loan application, the applicant
(through its authorized representative) was required to state, among other things:
(a) its average monthly payroll expenses; and (b) its number of employees. If the
applicant had no employees other than the owner, the applicant was required to
provide the gross income amount from a 2019 or 2020 IRS Form 1040, Schedule
C. These figures were used to calculate the amount of money the small business
was eligible to receive under the PPP. Additionally, the application was required to
certify that they were in operation as of February 15, 2020. The applicant was also
required to certify that the information in the application was true and correct to

the best of the applicant’s knowledge.

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A business’s PPP loan application was received and processed, in the first
instance, by a participating lender. If a PPP loan application was approved, the
participating lender funded the PPP loan using its own monies. Data from the
application, including information about the borrower, the total amount of the loan,
the listed number of employees, and the gross income amount, was transmitted by
the lender to the SBA, an agency of the United States, in the course of processing

the loan.
Queen B Collectibles LLC

Beginning no later than on or about April 2, 2020, and continuing through at
least April 22, 2021, in the Eastern District of Washington and elsewhere,
Defendant devised and intended to devise a scheme to defraud the SBA, and to
obtain money and property by means of materially false and fraudulent pretenses,
representations, and promises. Specifically, Defendant applied for three PPP
loans, receiving two, using false and fraudulent information about her purportedly
active company, Queen B Collectibles, LLC, sometimes held out as Queen B
Enterprises (hereinafter collectively “Queen B”), with the intent to defraud, steal,
and convert the proceeds of the PPP Loans for Defendant’s personal use and
without any intent to repay the PPP Loans.

Additionally, Defendant submitted five applications for EIDLs, and made an
application for a modification to an EIDL requesting additional funds, using false
and fraudulent information about her purportedly active company, Queen B, with
the intent to defraud, steal, and convert the proceeds of the EIDLs for Defendant’s
personal use and without any intent to repay the EIDLs. Of those EIDLs that
Defendant applied for, she obtained one EIDL with the intent to defraud, steal, and
convert the proceeds of that EIDL for her personal use and without any intent to
repay the EIDL. All totaled through her three false and fraudulent PPP loan

applications and her six false and fraudulent EIDL applications, Defendant

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fraudulently requested a total of at least $256,168 on behalf of Queen B and

received a total of $59,602 on behalf of Queen B.
Economic Injury Disaster Loan No. 5405907800

On or about April 2, 2020, Defendant applied for an EIDL by submitting
application number 3600537630 to the SBA under the name of her purported
company, Queen B for EIDL No. 5405907800. Defendant falsely stated and
certified, in the application, that Queen B had 3 employees as of January 31, 2020,
that its gross revenues for the 12-month period prior to January 31, 2020, were
$68,000.00, that its cost of goods sold for the 12-month period prior to January 31,
2020, was $35,000.00. In fact, these representations and certifications were false
and Queen B and Defendant were not eligible for any EIDL funding. As a result of
the fraud and relying on the materially false and fraudulent representations and
certifications made by Defendant, SBA approved the requested EIDL, and, on
April 26, 2020, disbursed an advance of $3,000 on EIDL Loan No. 540907800 and
on May 30, 2020, disbursed an additional $13,500 on that EIDL, to a personal
bank account of the Defendant’s via the interstate wires. On April 6, 7, and 14,
2020, Defendant submitted three additional EIDL applications in the name of
Queen B, making materially false and fraudulent representations and omissions on
each application to the SBA, and requesting a total amount of $153,800.
Additionally, on January 4, 2021, Defendant applied for another EIDL, through
application number 3316039429, and made materially false and fraudulent
representations and omissions on that application to the SBA, and requested a total
amount of $87,300. On April 22, 2021, Defendant applied for additional funding
under EIDL No. 5405907800 in the name of Queen B in the total amount of
$45,000 and made materially false and fraudulent representations and omissions on
that application to the SBA. However, the SBA did not ultimately disburse any of
the funds Defendant fraudulently requested in these five additional EIDL

applications.

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Paycheck Protection Program Loan No. 54659282-05

On or about August 7, 2020, Defendant submitted an application for PPP
loan number 54659282-05 to the SBA in the name of her purported company,
Queen B. Defendant falsely and fraudulently stated in the application for PPP loan
number 54659282-05 that Queen B had been established on October 18, 2018, that
it had 4 employees as of the date of the application, that its average monthly
payroll was $8,616.00, and requested a PPP loan for Queen B in the amount of
$21,500. On or about August 11, 2020, as a result of the fraudulent scheme
described above, and the materially false and fraudulent information supplied by
Defendant in the application for PPP loan number 54659282-05, $21,500 was
disbursed into one of Defendant’s bank accounts via the interstate wires. On or
about October 20, 2021, Defendant falsely and fraudulently requested loan
forgiveness of the entire PPP loan amount by falsely representing that the PPP loan
proceeds had been used for eligible uses and expenses, including the false
representation that $14,565 of the loan amount had been used for payroll expenses.

Paycheck Protection Program Loan No. 17213483-08

On or about January 19, 2021, Defendant submitted an application for PPP
loan number 17213483-08 to the SBA in the name of her purportedly active
company, Queen B. Defendant falsely and fraudulently stated in the application
for PPP loan number 17213483-08 that Queen B had been established in 2018, had
3 employees as of the date of the application, and that its average monthly payroll
was $8,641.00. Based on that information, Defendant requested a PPP loan for
Queen B in the amount of $21,602. These representations were materially false
and fraudulent. Queen B was not an active business as of February 15, 2020,
meaning that Queen B was not eligible for any PPP funding. PPP loan number
17213483-08 was handled by Montana Community Development Corporation, a

lending institution located in Missoula, Montana, on a delegated basis from the

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SBA. Montana Community Development Corporation submitted disbursement
details for this loan into the SBA E-Tran system located in Sterling, Virginia. On
or about January 26, 2021, as a result of the fraudulent scheme described above,
and the materially false and fraudulent information supplied by Defendant on the
application for PPP loan number 17213483-08, Montana Community Development
Corporation disbursed $21,602 through the interstate wires into Defendant’s
HAPO Account located in Richland, Washington, ending in 0030, which was not
created until December 11, 2020, as a personal business account for Queen B. On
or about October 20, 2021, Defendant falsely and fraudulently requested loan
forgiveness of the entire PPP loan amount by falsely representing that the PPP loan
proceeds had been used for eligible uses and expenses, including the false
representation that $13,256 of the loan amount had been used for payroll expenses.

Paycheck Protection Program Loan No. 89259688-00

On or about April 22, 2021, Defendant submitted an application for PPP
loan number 89259688-00 to the SBA in the name of her purported company,
Queen B. Defendant falsely and fraudulently stated in the application for PPP loan
number 89259688-00 that Queen B had been established on August 15, 2017, that
it had 4 employees as of the date of the application, that its average monthly
payroll was $25,707.00, and requested a PPP loan for Queen B in the amount of
$64,266. These representations were materially false and fraudulent. However,
the loan was canceled because Defendant did not supply the requested Schedule C
tax form.

8. The United States’ Agreements

The United States Attorney’s Office for the Eastern District of Washington
agrees that at the time of sentencing, the United States will move to dismiss Counts
1, 2, and 3, of the Indictment filed on May 17, 2022, which charge Defendant with
three counts of Wire Fraud, in violation of 18 U.S.C. § 1343, and counts 5, 6, and

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7, of the Indictment filed on May 17, 2022, which charge Defendant with three
counts of False, Fictitious, or Fraudulent Claims, in violation of 18 U.S.C. § 287.

The United States Attorney’s Office for the Eastern District of Washington
agrees not to bring additional charges against Defendant based on information in
its possession at the time of this Plea Agreement that arise from conduct that is
either charged in the Indictment or identified in discovery produced in this case,
unless Defendant breaches this Plea Agreement before sentencing.

9. United States Sentencing Guidelines Calculations

Defendant understands and acknowledges that the United States Sentencing
Guidelines (“U.S.S.G.” or “Guidelines”) apply and that the Court will determine
Defendant’s advisory range at the time of sentencing, pursuant to the Guidelines.
The United States and Defendant agree to the following Guidelines calculations.

a. Base Offense Level

The United States and the Defendant agree that the base offense level for
Wire Fraud is 7. U.S.S.G. § 2B1.1(a)(1).

b. Special Offense Characteristics

The Defendant and the United States agree to recommend that the
Defendant’s base offense level should be increased by 12 levels, because the loss
amount (actual and intended) was more than $250,000 and less than $550,000. See
U.S.S.G. §2B1.1(b)(1)(G). The United States and Defendant are not aware of any
other adjustments that apply. Defendant may argue the application of 2X1.1. The
United States reserves the right to oppose the application of 2X1.1.

ro Acceptance of Responsibility

The United States will recommend that Defendant receive a three-level
downward adjustment for acceptance of responsibility, pursuant to U.S.S.G.
§ 3E1.1(a), (b), if Defendant does the following:

i, accepts this Plea Agreement;

ii. enters a guilty plea on July 21, 2022;

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lil. demonstrates recognition and affirmative acceptance of
Defendant’s personal responsibility for Defendant’s
criminal conduct;

iv. provides complete and accurate information during the
sentencing process; and

Vv. does not commit any obstructive conduct.

The United States and Defendant agree that at its option and on written
notice to Defendant, the United States may elect not to recommend a reduction for
acceptance of responsibility if, prior to the imposition of sentence, Defendant is
charged with, or convicted of, any criminal offense, or if Defendant tests positive
for any controlled substance.

d. No Other Agreements

The United States and Defendant have no other agreements regarding the
Guidelines or the application of any Guidelines enhancements, departures, or
variances. Defendant understands and acknowledges that the United States is free
to make any sentencing arguments it sees fit, including arguments arising from
Defendant’s uncharged conduct, conduct set forth in charges that will be dismissed
pursuant to this Agreement, and Defendant’s relevant conduct.

e, Criminal History

The United States and Defendant have no agreement and make no
representations about Defendant’s criminal history category, which will be
determined by the Court after the United States Probation Office prepares and
discloses a Presentence Investigative Report.

10. Incarceration

The United States agrees to recommend a sentence no higher than the low
end of the Guidelines, as calculated by the United States.

Defendant may recommend any legal sentence.

11. Supervised Release

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If the Court imposes a sentence of imprisonment, the United States and
Defendant each agree to recommend 3 years of supervised release. Defendant
agrees that the Court’s decision regarding the conditions of Defendant’s
Supervised Release is final and non-appealable; that is, even if Defendant is
unhappy with the conditions of Supervised Release ordered by the Court, that will
not be a basis for Defendant to withdraw Defendant’s guilty plea, withdraw from
this Plea Agreement, or appeal Defendant’s conviction, sentence, or any term of
Supervised Release.

The United States and Defendant agree to recommend that in addition to the
standard conditions of supervised release imposed in all cases in this District, the
Court should also impose the following conditions:

a. That the United States Probation Officer may conduct, upon
reasonable suspicion, and with or without notice, a search of
Defendant’s person, residences, offices, vehicles, belongings,
and areas under Defendant’s exclusive or joint control.

b. That the Defendant disclose shall all assets and liabilities to
United States Probation and shall not transfer, sell, give away,
or otherwise convey or secret any asset, without the advance
approval of the United States Probation Office.

c. That the Defendant be prohibited from incurring any new debt,
opening new lines of credit, or enter any financial contracts or
obligations without the prior approval of the United States
Probation Office.

d. That the Defendant participate and complete financial
counseling and life skills programs at the direction of the
United States Probation Office.

12. Criminal Fine

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The United States and Defendant may make any recommendation
concerning the imposition of a criminal fine. Defendant acknowledges that the
Court’s decision regarding a fine is final and non-appealable; that is, even if
Defendant is unhappy with a fine ordered by the Court, that will not be a basis for
Defendant to withdraw Defendant’s guilty plea, withdraw from this Plea
Agreement, or appeal Defendant’s conviction, sentence, or fine.

13. Mandatory Special Penalty Assessment

Defendant agrees to pay the $100 mandatory special penalty assessment to
the Clerk of Court for the Eastern District of Washington, pursuant to 18 U.S.C.

§ 3013.

14. Restitution

The United States and Defendant agree that restitution is appropriate and
mandatory, without regard to Defendant’s economic situation, to identifiable
victims who have suffered physical injury or pecuniary loss, pursuant to 18 U.S.C.
§§ 3663A, 3664.

Pursuant to 18 U.S.C. § 3663(a)(3), Defendant voluntarily agrees to pay
restitution for all losses caused by Defendant’s individual conduct, in exchange for
the United States not bringing additional potential charges, regardless of whether
counts associated with such losses will be dismissed as part of this Plea
Agreement. With respect to restitution, the United States and Defendant agree to
the following:

a. Restitution Amount and Interest

The United States and Defendant stipulate and agree that, pursuant to 18
U.S.C. §§ 3663, 3663A and 3664, the Court should order restitution in an amount
of $302,145.40, and that any interest on this restitution amount, if any, should be

waived.

b. Payments
To the extent restitution is ordered, the United States and Defendant agree

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that the Court will set a restitution payment schedule based on Defendant’s
financial circumstances. 18 U.S.C. § 3664(f)(2), (3)(A). Regardless, Defendant
agrees to pay not less than 10% of Defendant’s net monthly income towards
restitution.

Cc. Treasury Offset Program and Collection

Defendant understands the Treasury Offset Program (“TOP”) collects
delinquent debts owed to federal agencies. If applicable, the TOP may take part or
all of Defendant’s federal tax refund, federal retirement benefits, or other federal
benefits and apply these monies to Defendant’s restitution obligations. 26 U.S.C.
§ 6402(d); 31 U.S.C. § 3720A; 31 U.S.C. § 3716.

Defendant understands that the United States may, notwithstanding the
Court-imposed payment schedule, pursue other avenues to ensure the restitution
obligation is satisfied, including, but not limited to, garnishment of available funds,
wages, or assets. 18 U.S.C. §§ 3572, 3613, and 3664(m).

Nothing in this acknowledgment shall be construed to limit Defendant’s
ability to assert any specifically identified exemptions as provided by law, except
as set forth in this Plea Agreement.

Until Defendant’s fine and restitution obligations are paid in full, Defendant
agrees fully to disclose all assets in which Defendant has any interest or over
which Defendant exercises control, directly or indirectly, including those held by a
spouse, nominee or third party.

Until Defendant’s fine and restitution obligations are paid in full, Defendant
agrees to provide waivers, consents, or releases requested by the U.S. Attorney’s
Office to access records to verify the financial information.

d. Notifications and Waivers

Defendant agrees to notify the Court and the United States of any material
change in Defendant’s economic circumstances (e.g., inheritances, monetary gifts,

changed employment, or income increases) that might affect Defendant’s ability to

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pay restitution. 18 U.S.C. § 3664(k). Defendant also agrees to notify the United
States of any address change within 30 days of that change. 18 U.S.C.

§ 3612(b)(1)(F). These obligations cease when Defendant’s fine and restitution
obligations are paid in full.

Defendant acknowledges that the Court’s decision regarding restitution is
final and non-appealable; that is, even if Defendant is unhappy with the amount of
restitution ordered by the Court, that will not be a basis for Defendant to withdraw
Defendant’s guilty plea, withdraw from this Plea Agreement, or appeal
Defendant’s conviction, sentence, or restitution order.

15. Payments While Incarcerated

If Defendant lacks the financial resources to pay the monetary obligations
imposed by the Court, Defendant agrees to earn money toward these obligations by
participating in the Bureau of Prisons’ Inmate Financial Responsibility Program.

16. Additional Violations of Law Can Void Plea Agreement

The United States and Defendant agree that the United States may, at its
option and upon written notice to the Defendant, withdraw from this Plea
Agreement or modify its sentencing recommendation if, prior to the imposition of
sentence, Defendant is charged with or convicted of any criminal offense or tests
positive for any controlled substance.

17. Waiver of Appeal Rights

Defendant understands that Defendant has a limited right to appeal or
challenge Defendant’s conviction and the sentence imposed by the Court.

Defendant expressly waives all of Defendant’s rights to appeal Defendant’s
conviction and the sentence the Court imposes.

Defendant expressly waives Defendant’s right to appeal any fine, term of
supervised release, or restitution order imposed by the Court.

Defendant expressly waives the right to file any post-conviction motion

attacking Defendant’s conviction and sentence, including a motion pursuant to 28

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U.S.C. § 2255, except one based on ineffective assistance of counsel arising from
information not now known by Defendant and which, in the exercise of due
diligence, Defendant could not know by the time the Court imposes sentence.

Nothing in this Plea Agreement shall preclude the United States from
opposing any post-conviction motion for a reduction of sentence or other attack
upon the conviction or sentence, including, but not limited to, writ of habeas
corpus proceedings brought pursuant to 28 U.S.C. § 2255.

18. Compassionate Release

In consideration for the benefits Defendant is receiving under the terms of
this Plea Agreement, Defendant expressly waives Defendant’s right to bring any
motion for Compassionate Release other than a motion arising from one of the
specific bases set forth in this paragraph of this Plea Agreement. The United States
retains the right to oppose, on any basis, any motion Defendant files for
Compassionate Release.

The only bases on which Defendant may file a motion for Compassionate
Release in the Eastern District of Washington are the following:

a. Medical Condition of Defendant

i. Defendant is suffering from a terminal illness (i.¢., a
serious and advanced illness with an end of life
trajectory). A specific prognosis of life expectancy (i.e.,
a probability of death within a specific time period) is not
required. Examples include metastatic solid-tumor
cancer, amyotrophic lateral sclerosis (ALS), end-stage
organ disease, and advanced dementia; or

ii. Defendant is suffering from a serious physical or medical
condition, a serious functional or cognitive impairment,
or deteriorating physical or mental health because of the

aging process that substantially diminishes the ability of

PLEA AGREEMENT - 17
mW NO NH KH KH NH NY NY N YH FP KF BP KF FP YF YF FS ES

Case 1:22-cr-02059-MKD ECF No. 26 __ filed 07/21/22 PagelD.100 Page 18 of

b.

ii.

C.

ii.

d.

ii.

22

the defendant to provide self-care within the environment
of a correctional facility and from which Defendant is not

expected to recover.

Age of Defendant

Defendant is at least 65 years old, is experiencing a
serious deterioration in physical or mental health because
of the aging process; and has served at least 10 years or
75 percent of Defendant’s term of imprisonment,
whichever is less; or

Defendant is at least 70 years old and has served at least
30 years in prison pursuant to a sentence imposed under
18 U.S.C. § 3559(c) for the offense or offenses for which

Defendant is imprisoned.

Family Circumstances

The caregiver of Defendant’s minor child or children has
died or become incapacitated, and Defendant is the only
available caregiver for Defendant’s minor child or
children; or

Defendant’s spouse or registered partner has become
incapacitated, and Defendant is the only available

caregiver for Defendant’s spouse or registered partner.

Subsequent Reduction to Mandatory Sentence

Defendant pleaded guilty to an offense which, on the date
of Defendant’s guilty plea, carried a mandatory minimum
sentence; and

after the entry of judgment, the length of the mandatory
minimum sentence for Defendant’s offense of conviction

was reduced by a change in the law; and

PLEA AGREEMENT - 18
22

ili. the application of the reduced mandatory minimum
sentence would result in Defendant receiving a lower
overall sentence.

e. Ineffective Assistance of Counsel

i. Defendant seeks Compassionate Release based on a
claim of ineffective assistance of counsel arising from
information that Defendant both
1. did not know at the time of Defendant’s guilty

plea, and
2. could not have known, in the exercise of due
diligence, at the time the Court imposed sentence.

19. Withdrawal or Vacatur of Defendant’s Plea

Should Defendant successfully move to withdraw from this Plea Agreement
or should Defendant’s conviction be set aside, vacated, reversed, or dismissed
under any circumstance, then:

a. this Plea Agreement shall become null and void;

b. the United States may prosecute Defendant on all available
charges;

c. The United States may reinstate any counts that have been
dismissed, have been superseded by the filing of another
charging instrument, or were not charged because of this Plea
Agreement; and

d. the United States may file any new charges that would
otherwise be barred by this Plea Agreement.

The decision to pursue any or all of these options is solely in the discretion

of the United States Attorney’s Office.

PLEA AGREEMENT - 19
22

Defendant agrees to waive any objections, motions, and defenses Defendant
might have to the United States’ decision about how to proceed, including a claim
that the United States has violated Double Jeopardy.

Defendant agrees not to raise any objections based on the passage of time,
including but not limited to, alleged violations of any statutes of limitation or any
objections based on the Speedy Trial Act or the Speedy Trial Clause of the Sixth
Amendment.

20. Waiver of Attorney Fees and Costs

Defendant agrees to waive all rights Defendant may have under the “Hyde
Amendment,” Section 617, P.L. 105- 119 (Nov. 26, 1997), to recover attorneys’
fees or other litigation expenses in connection with the investigation and
prosecution of all charges in the above-captioned matter and of any related
allegations (including, without limitation, any charges to be dismissed pursuant to
this Plea Agreement or any charges previously dismissed or not brought as a result
of this Plea Agreement).

21. Integration Clause

The United States and Defendant acknowledge that this document

constitutes the entire Plea Agreement between the United States and Defendant,
and no other promises, agreements, or conditions exist between the United States
and Defendant concerning the resolution of the case.

This Plea Agreement is binding only on the United States Attorney’s Office
for the Eastern District of Washington, and cannot bind other federal, state, or local
authorities.

The United States and Defendant agree that this Agreement cannot be
modified except in a writing that is signed by the United States and Defendant.

\
\\
\

PLEA AGREEMENT - 20
Case 1:22-cr-02059-MKD ECF No. 26 _ filed07/21/22 PagelD.103 Page 21 of
22

Approvals and Signatures

Agreed and submitted on behalf of the United States Attorney’s Office for
the Eastern District of Washington.

Vanessa R. Waldref
United States Attorney

t ? ! =
Tyler H.L. Térnét
Daniel H. Fruchter
Assistant United States Attorneys

Frieda K. Zimmerman
Special Assistant United States Attorney

Date

[have read this Plea Agreement and I have carefully reviewed and discussed
every part of this Plea Agreement with my attorney. I understand the terms of this
Plea Agreement. I enter into this Plea Agreement knowingly, intelligently, and
voluntarily. I have consulted with my attorney about my rights, I understand those
rights, and J am satisfied with the representation of my attorney in this case. No
other promises or inducements have been made to me, other than those contained
in this Plea Agreement. No one has threatened or forced me in any way to enter

into this Plea Agreement. I agree to plead guilty because I am guilty.

Karla Leticia ae Date
Defendant

PLEA AGREEMENT - 21
Case 1:22-cr-02059-MKD ECF No. 26 _ filed0O7/21/22 PagelD.104 Page 22 of
22

I have read the Plea Agreement and have discussed the contents of the
agreement with my client. The Plea Agreement accurately and completely sets
forth the entirety of the agreement between the parties. I concur in my client’s
decision to plead guilty as set forth in the Plea Agreement. There is no legal
reason why the Court should not accept Defendant’s guilty plea.

Robin C. Emmans Date

Ulvar W. Klein
Attorneys for Defendant

PLEA AGREEMENT - 22


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