United States v. Olivia Spellman — Plea Agreement, Western District of Wisconsin (Document 13)

Summary

The proposed plea agreement of Olivia Spellman, filed May 9, 2023 as Document 13 in Case 3:22-cr-00131-wmc in the U.S. District Court for the Western District of Wisconsin; it states that this plea proposal has not yet been approved and that plea agreements must be approved by the United States Attorney or designee. Under it Spellman agrees to plead guilty to Count 5 of the indictment, mail fraud under Title 18, United States Code, Section 1341, and the United States agrees to move to dismiss the remaining counts at sentencing. The parties agree the guidelines should be calculated on an actual loss amount of $506,097 and jointly recommend a prison sentence of 14 months. In the factual basis, Spellman agrees that her home address was used on false applications for unemployment insurance benefits and that she cashed out debit cards mailed there in other people's names.

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Cite this document

“United States v. Olivia Spellman — Plea Agreement, Western District of Wisconsin (Document 13).” Original at ecf.wiwd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/plea-agreement-usa-v-spellman-dkt-13-w-d-wis-20daca020f/, SHA-256 786b8272edc756e9ac7db9ef254a39f816db36271b73c1845336cb721fe5b0e7.

Full text

Case: 3:22-cr-00131-wmc Document #: 13 Filed: 05/09/23 Page 1 of 6

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

UNITED STATES OF AMERICA

V. Case No.: 22-CR-131,-WMC

OLIVIA SPELLMAN,

Defendant.

PLEA AGREEMENT

1.. This is the proposed plea agreement between the defendant and the
United States in the above-captioned case.

2. PLEA AND PENALTIES: The defendant agrees to plead guilty to Count 5
of the indictment. This count charges a violation of Title 18, United States Code, Section
1341., which carries maximum penalties oI20 years in prison and a $250,000 fine, a
three-year period of supervised release, a $100 special assessment, and the entry of an
appropriate restifution order. In addition to these maximum penalties, any violation of
a supervised release term couid lead to an additional imprisonment term pursuant to 18
U.S.C. S 3583. The defendant agrees to pay the special assessment at or before
seutcncing and understands that t1-re Court will enter an order requirir-rg the immediate
special assessment payment under 18 U.S.C. S 3013. In an appropriate case, the
defendant could be held in contempt of court and receive an additional sentence for
failing to pay the special assessment.

3. RIGHTS WAIVED BY PLEADING GUILTY: The defendant
acknowledges by pleading guilty, that she is giving up these rights: (a) to plead not
guilty and to persist in that plea; (b) to a jury trial; (c) to be represented by counsel - and
if necessary to have the Court appoint counsel - at trial and at every other stage of the
trial proceedings; (d) to confront and cross-examine adverse witnesses; (e) to be
protected from compelled self-incrimination; (f) to testify and present evidence; and (g)
to compel the attendance of witnesses.

4. IMMIGRATION CONSEQUENCES: The defendant understands that
upon conviction, if she is not a United States citizen, she may be removed from the
United States, denied citizenship, and denied future admission to the United States. The
defendant nevertheless affirms that she wants to plead guilty regardless of any removal
Case: 3:22-cr-00131-wmc Document #: 13 Filed: 05/09/23 Page 2 of 6

and imrnigration consequences that her plea may entail, even if the consequence is
automatic removal from the United States.

5. AGREEMENT ON SENTENCE: The parties agree that the advisory
sentencing guidelines range under USSG S 2B1.1(bX1) should be calculated based on
the actual loss amount of $506,097, which results in a 12-level increase to the base
offense level. The parties also agree that the definition of intended loss in application
note 3(A)(ii) does not apply in this case. The parties further agree to jointly recommend
to the Court that the defendant receive a prison sentence of 14 months.

6. FACTUAL BASIS: The defendant agrees that the following facts are true,
correct, and that, if this case were to proceed to trial, the government wouid be able to
prove these facts beyond a reasonabie doubt. The defendant acknowledges,
understands, and agrees that she is, in fact, guilty of the offense described herein.

a. Spellman worked with a coconspirator to defraud different state
agencies of unemployment insurance (UI) benefits during the COVID-19 pandemic in
2020 and2021..

b. Spellman allowed her home address to be used as the mailing
address on all of the false applications for UI benefits. All of the mailings in the names
of other people from various UI state agencies came to Spellman's home in Janesville,
Wisconsin.

c. The mailings to Spellman's home included debit cards that were
loaded with the UI benefits amounts for each applicant. Spellman took these cards,
activated them, and pulled cash out of them. She spent some of the proceeds on herself
at places like Walmart. 'i'he rest of the money she sent to her cocouspirator via
CashApp, Bitcoiru and Green Dot.

d. Spellman and her coconspirator communicated by WhatsApp.
Spellman's iPhone was seized and searched as part of a search warrant executed at her
home on1-28-2L Chats on her phone show the two coconspirators working together to
check the mail every day and when Spellman received debit cards she would forward
photos of the cards and the PIN number to her coconspirator.

e. During the execution of the search warrant,law enJorcement agents
also found in Spellman's home, evidence of the fraud scheme, including: numerous
letters from UI agencies, numerous debit cards from US Bank, her owniredit card
statements and bank statements. A11 of the UI mail was addressed to Spellman's home
but had other individual's names on the letters and on the debit cards ftund in the
home.
.
f Spellman gave a statement to the agents during the search of her
home. She told the agents, among other things:

2
Case: 3:22-cr-00131-wmc Document #: 13 Filed: 05/09/23 Page 3 of 6

(1) She has been working with a man named D.K. to get UI
benefits in the names of other people. The two of the speak on the phone and text each
other. She has never met D.K. He speaks with an accent.

(2) She acknowledged that she received mail at her home in the
names of other persons. The mail comes from various state UI agencies. Her job was to
get the debit cards in the mail and then cash them out and get the cash to D.K.

(3) She kept a portion of the cash and spent it on herself.

(4) She never filled out any of the UI applications or logged into
the accounts. She only took the UI benefits. She deposited the funds into a Green Dot
account or other bank account and then sent a portion of the proceeds to D.K. via
Bitcoin.

(5) She knew what she was doing was wrong when she was
cashing out the debit cards in other people's names. She said that D.K. told her on some
occasion that what they were doing might have been illegal.

(6) She reviewed a list of the 83 UI applicants from Texas that
listed her apartment as their address. She said she did not know any of the applicants,
and did not prepare any of the fake UI applications. She knew there were other
applications in this scheme also filed in Colorado, Iliinois, Indiana, Pennsylvania, and
Massachusetts.

g. The mailing for Count 5 involves a check mailed on12-30-20 for UI
benefits to A.D. for $480 from the Ohio Department of Job & Family Services, which
was mailed to Spellman's home address in Janesville, WI which is located in the
Western District of Wisconsin. Spellman took a photo of the $480 check and texted it to
D.K., who then told her how to deposit it for him.

This information is provided to establish a factual basis for the defendant's guilty plea.
It is not a full recitation of the defendant's knowled ge of , or participation in, this
offense.

7. SCOPE OF RESOLUTION: The United States agrees that this guilty plea
will completely resolve all possible federal criminal violations ihut hurr" occurred in the
Western District of Wisconsin provided that two conditions are met: (a) the criminal
conduct relates to the conduct described in the indictment; and (b) th; iriminal conduct
was known to the United States as of the date of this plea agreement. This agreement
not to prosecute is limited to those types of cases for which the United Statei Attorney,s
Office for the Western District of Wisconsin has exclusive decision-making
authority.

a
J
Case: 3:22-cr-00131-wmc Document #: 13 Filed: 05/09/23 Page 4 of 6

The defendant also understands that the United States will make its full discovery file
available to the Probation Office for its use in preparing the presentence report.

B. DISMISSING REMAINING CHARGES: The United States agrees to
move to dismiss the remaining counts of the indictment at sentencing.

9. ACCEPTANCE OF RESPONSIBILITY: The United States agrees to
recommend that the Court, in computing the advisory Sentencing Guideline range, and
in sentencing the defendant, gives the defendant the maximum available reduction for
acceptance of responsibility. This recommendation is based upon facts currently known
to the United States and is contingent upon the defendant accepting responsibility
according to the factors set forth in USSG S 3E1.1. Further, the United States' agreement
to recommend a reduction for acceptance of responsibility is also based on the
defendant providing a full and truthJul accounting in the required financial statement
and, if applicable, the defendant's efforts to make immediate restitution payments. The
United States is free to withdraw this reconunendation if the defendant has previously
engaged in any conduct that is unknown to the United States and is inconsistent with
acceptance of responsibility, or if she engages in any conduct between the date of this
plea agreement and the sentencing hearing, which is inconsistent with acceptance of
responsibility. This reconrlnendation is consistent with the defendant signing this plea
agreement on or before April 26,2023.

10. RESTITUTION: The defendant agrees to pay restitution for all losses
relating to the offense of conviction and all losses covered by the same course of
conduct or common scheme or plan as the offense of conviction. The parties will agree
upon the exact restitution figure before sentencing, or, if the parties cannot agree upon a
specific figure, the Court will determine restitution at sentencing. The defendant
further agrees that the full amount of restitution is due and payable immediately"
Defendant acknowledges that immediate payment means payment in good faith from
the liquidation of all non-exempt assets beginning immediately.

11,. FINANCIAL STATEMENT: The defendant agrees to complete the
attached financial statement and return it to this office within one week of the guitty
plea hearing. The defendant agrees that this financial statement will be a full and
truth{ul accounting, including all available supporting documentation. The defendant
authorizes the United States Attorney's Office to run the defendant's credit report. The
defendant also agrees that the probation office may disclose to the United States all
financial statements to be completed by the defendant in connection with the
preparation of the presentence report, together with all supporting documents.

12. SENTENCING DISCUSSIONS: Other than agreements specifically set
forth in this plea agreement, the defendant understands tha*entencing discussions are
not part of the plea agreement. The defendant should not reiy upon the possibility of a

4
Case: 3:22-cr-00131-wmc Document #: 13 Filed: 05/09/23 Page 5 of 6

particular sentence based upon any sentencing dirussions between defense counsel
and the United States, other than those memoridized in this plea agreement.

13, SENTENCINGRECOMMENDATIONS:Thedefendantacknowledges
her understanding that the United States has made no promis€s or guarantees
regarding the actual sentence that will be imposed. The defendant also acknowledges
her understanding that the Court may not accept the recommendations, which may be
made by the United States, and that the Court can impose any sentence up to and
induding the maximum penalties set out above.

74. VOLLJNTARINESS OF PLEA The defendant acknowledges that no
threats, promises, representations, or agreements exist, other than those set forth in this
agreement, to cause the defendant to plead guilty. Defendant acknowledges that she
has read this agreement, has carefully reviewed it with her attomey and understands
and voluntarily accepts all its terms.

15. THIS IS TI{E ONLY PLEA AGREEMENT: By our signatures below, the
defendant and defense counsel acknowledge that this is the only plea agreement in thh
case.

1.6. PLEA APPROVAL: All plea agreements must b€ approved by the United
States Attomey or designee. This plea proposal has not yet bem approved.
Consequently, I have not signed this proposed plea agreement and the final acceptance
is conditioned upon supervisory approval.

NMOTHYM.O'SHEA
United States Attomey

{-1-Lt By,
\N,. 1
Date DANIELI. ER
Assistant United States Attomey

q \
Date KELLY WELSH
A for the Defendant

Date
ll \3 5
OLIVIASPELLMAN
Defendant

5
Case: 3:22-cr-00131-wmc Document #: 13 Filed: 05/09/23 Page 6 of 6

ACKNOWLEDGEMENTS

L OLIVIA SPELLMAN, am entering into this plea agreement freely and voluntarily. I
am not now on or under the influence of any drug, medication, alcohol, or other
intoxicant or depressant, whether or not prescribed by a physician, which would impair
my ability to understand the terms and conditions of this agreement. My attomey has
reviewed the entire agreement with me and has advised me of the implications of the
sentencing guidelines. I have discussed all aspects of this case with my attomey,
including the charges against me, the elements of those charges, and possible defenses.

d,ws
I am satisfied that my attomey has provided effective assistance of counsel.

L)-
Date
)) 13 OLIVIA SPELLMAN
Defendant

I am the defendant's attorney. I have reviewed this agreement carefully with the
defendant. To my knowledge, my client's decision to enter into this agreement is an
informed and voluntary one.

J
Date KELLY
Attorney for Defendant

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