Sentencing Memorandum — USA v. Padilla-Reyna (Dkt. 42, E.D. Wash.)

Summary

The defendant's sentencing memorandum, filed May 8, 2023 as ECF No. 42 in United States v. Karla L. Padilla-Reyna, Case No. 22-cr-2059-MKD-1, in the U.S. District Court for the Eastern District of Washington, submitted by Robin C. Emmans and Ulvar W. Klein of 2nd Street Law PLLC. It raises no objections to the presentence report and states restitution is stipulated at $302,145.40, that $300,000 has been deposited in trust with counsel, and that a civil forfeiture of real estate tied to PPP loan funds has been negotiated. The memorandum requests a sentence of probation for 36 months with full restitution, acknowledging a guideline range of 21-27 months. It argues that publicity of such prosecutions already deters others and that the defendant faces lasting career consequences.

Summary drafted by a model from the text of the original file linked on this page and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Sentencing Memorandum — USA v. Padilla-Reyna (Dkt. 42, E.D. Wash.).” Original at ecf.waed.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/sentencing-memorandum-usa-v-padilla-reyna-dkt-42-e-d-wash-6990a09505/, SHA-256 b332e363caf600c855be40c205c49171f951d05d3ff60e0eef0a4b97e68e26d6.

Full text

Case 1:22-cr-02059-MKD ECF No. 42 filed 05/08/23 PageID.207 Page 1 of 7

2 Robin C. Emmans

3
2nd Street Law PLLC
217 N. 2nd Street
4 Yakima, WA 98901
5 (509) 575-0372 office
(509) 452-6771 fax
6 Of Attorneys for Defendant
7 Karla Padilla-Reyna

8
UNITED STATES DISTRICT COURT
9 EASTERN DISTRICT OF WASHINGTON
10

11 UNITED STATES OF AMERICA )
12
) Case No. 22-cr-2059-MKD-1
Plaintiff, )
13
)
vs. ) SENTENCING MEMORANDUM
14 KARLA L. PADILLA-REYNA,
)
)
15
)
)
16 Defendant. )
)
17

19
COMES NOW the defendant, Karla L. Padilla-Reyna, through her attorneys,
20

21 Robin C. Emmans and Ulvar W. Klein, of 2 Street Law PLLC, and submits her
nd

22 sentencing memorandum. There are no objections to the PSIR. There are, however,

23
some corrections to the financial statistics. Ms. Padilla-Reyna has gone back through
24

25 her records to re-check accounts and account balances, as well as reviewed her forms

26 W-2. Those corrections and supporting documentation will be submitted in an

28
-1-
217 N. 2nd Street
Yakima, WA 98901
(509) 575-0372
fax (509) 452-6771
Case 1:22-cr-02059-MKD ECF No. 42 filed 05/08/23 PageID.208 Page 2 of 7

1 addendum. The restitution is stipulated to be $302,145.40. Ms. Padilla-Reyna has

2
been able to deposit in trust with counsel the amount of $300,000 1. Additionally, the
3

4 government has provided notice of and negotiated a civil forfeiture of real estate tied

5 to PPP loan funds. The parties intend to submit an addendum to the plea agreement

6
which will set out a plan for liquidating that real estate and forfeiting the proceeds,
7

8 which will lead to a request by both parties that the civil forfeiture amount be credited

9 toward restitution in the criminal case.
10
The defense requests a sentence of probation for 36 months with full restitution
11

12 to be paid in light of Ms. Padilla-Reyna’s unique history and characteristics, the

13 nature of the crime, and the unusual circumstances under which this fraud was

14
perpetrated. Incarceration is unnecessary as a deterrent to her or to others as this
15

16 unique Covid situation has essentially passed and hopefully will never recur.

17 Publicity of this prosecution and others like it, in which business owners fraudulently

18
overreached, has already efficiently sent the necessary messages. Regular news
19

20 releases from the US Attorney’s office have sufficiently broadcast the consequences

21 of taking more than was justified from the suddenly spewing federal tap. This

22
includes releases related to Ms. Padilla-Reyna. Because these were business owners,
23

24 the publication of the indictment, plea and eventual sentencing have been the

25
The funds in trust are held by counsel solely for reimbursement to the government
1
26 for losses incurred through the defendant’s fraudulent practices in falsely acquiring
27
pandemic loans.

28
-2-
217 N. 2nd Street
Yakima, WA 98901
(509) 575-0372
fax (509) 452-6771
Case 1:22-cr-02059-MKD ECF No. 42 filed 05/08/23 PageID.209 Page 3 of 7

1 fundamental deterrent. Ms. Padilla-Reyna fully expects that she will struggle with

2
employment as a result of her decisions. Not only will she likely lose her job, but she
3

4 will lose any ability to work in the field to which she devoted her adult life. To better

5 her chances she is currently in a Ph.D. program. Yet, the degree will not be

6
especially valuable, nor will her prior master’s degree. Even her extensive job
7

8 experience is no guarantee of landing on her feet. In middle age, she will be hoping

9 for some new career that, as yet, she cannot imagine. Her expected income earning
10
capacity will probably be more than halved because Karla’s self-control abandoned
11

12 her when spigots of federal dollars were suddenly gushing free cash. In a time of

13 need she was weak. The consequences will be ongoing.

14
Considering the serious consequences this court routinely deals with on a daily
15

16 basis, these career consequences for Karla may seem trivial. It is anything but trivial

17 to Ms. Padilla-Reyna. This is not because she is self-centered or that she lacks

18
perspective, but because of where she came from and how hard she fought to get
19

20 here. As the PSIR indicates, she was subjected to severe, horrifying trauma as a

21 young child, which occurred in the context of a separation from both of her parents

22
due to the family’s split citizenship. In grade school, she was able to rejoin her family
23

24 and has become a naturalized citizen. That achievement and her many career

25 successes are what has driven her as she has struggled to deal with what happened to

26
her as a child.
27

28
-3-
217 N. 2nd Street
Yakima, WA 98901
(509) 575-0372
fax (509) 452-6771
Case 1:22-cr-02059-MKD ECF No. 42 filed 05/08/23 PageID.210 Page 4 of 7

1 Karla has held herself to an extremely high standard of achievement and she
2
very much wants others to recognize her success. This has been the motivation
3

4 behind her many career achievements. It has also been the trigger for her criminal

5 behavior here as well. In the midst of the COVID pandemic crisis, she found herself

6
losing her grip on everything she had achieved. She was laid off (though she found
7

8 other work), and she was deeply in debt due to a fundamental and embarrassing

9 misunderstanding of tax law. Her perception of herself and her worth were crashing
10
as a result. She feared that her family would no longer respect her, and that she would
11

12 no longer be able to support them in the way she felt that she needed to. This intense

13 personal strain was magnified by her mental health concerns. Karla has been

14
consistent about, and aware of, her need for medication and a need for ongoing
15

16 attention to her own mental health. Unfortunately, she can’t just simply make it all

17 okay. Times of strain exacerbate the paralyzing effect of her illness. It was in this

18
context that the PPP program came along and she made a series of seriously flawed
19

20 decisions while embroiled in negative thinking and a sense of helplessness.

21 Thankfully, she has worked her way out of that mindset and had moved on to a better

22
work environment since this Indictment came along. She was cooperative with law
23

24 enforcement and has taken responsibility for her malignant choices during that dark

25 period of temptation. She is able to pay back the restitution immediately. The parties

26
are in agreement that the best approach to restitution is to pay a large amount
27

28
-4-
217 N. 2nd Street
Yakima, WA 98901
(509) 575-0372
fax (509) 452-6771
Case 1:22-cr-02059-MKD ECF No. 42 filed 05/08/23 PageID.211 Page 5 of 7

1 immediately and defense counsel will hold the remainder while the civil forfeiture

2
proceeding is completed, to ensure that full restitution is payed. This plan will be
3

4 outlined further in the addendum to the plea agreement to be filed shortly.

5 The guideline range for this offense is 21-27 months in prison to be followed
6
by a term of up to 3 years of community custody.
7

8 Statutorily the defendant is eligible for not less than 1 or more than 5 years

9 probation because the offense is a Class C Felony. 18 U.S.C. § 3561(c)(1). One of the
10
following must be imposed as a condition of probation unless extraordinary
11

12 circumstances exist: a fine, restitution, or community service . In this case the
2

13 repayment of restitution is largely resolved, but will need further monitoring.

14
The fine range for this offense is $10,000 to $95,000. USSG §5E1.2(c)(3). If
15

16 any fine is imposed the defendant would hope the court recognizes the financial

17 distress she is currently under.

18
A sentence of 36 months of probation would also be proportionate to other
19

20 fraud cases. A review of the US Attorney’s office press releases reveals that, in the

21 one PPP loan case already sentenced, the owners of a company owing over $2 million

22
were able to enter a deferred prosecution. Several other defendants within the Eastern
23

24 District of Washington have received sentences of probation.

25
Since the applicable guideline range is in Zone D of the Sentencing Table, the
2
26 defendant is ineligible for probation. USSG §5B1.1, comment. (n.2). (Bold added).
27
The defendant is not seeking a guideline sentence.

28
-5-
217 N. 2nd Street
Yakima, WA 98901
(509) 575-0372
fax (509) 452-6771
Case 1:22-cr-02059-MKD ECF No. 42 filed 05/08/23 PageID.212 Page 6 of 7

1 CONCLUSION
2
For the foregoing reasons, the defense urges that a sentence of probation is
3

4 appropriate under 18 USC 3553. It is proportionate, deterrence in these cases already

5 has powerful momentum built through publicity, and it is suited to the unique history

6
and characteristics of Ms. Padilla. Restitution is agreed, and Ms. Padilla has
7

8 participated in forfeiture negotiations to obviate the need for separate civil litigation.

9 She has taken full responsibility for her actions and pooled all of her financial
10
resources including her retirement savings to make up front restitution possible.
11

16 DATED: May 8, 2023

18 _/Robin C. Emmans___________ _/Ulvar W. Klein_____________
Robin C. Emmans, WSBA 37085 Ulvar W. Klein, WSBA 24334
19 2nd Street Law PLLC 2nd Street Law PLLC
20 217 N. 2 Street 217 N. 2nd Street
nd

Yakima, WA. 98901 Yakima, WA. 98901
21 (509) 575-0372 office (509) 575-0372 office
22 (509) 452-6771 fax (509) 452-6771 fax
Attorney for Karla L. Padilla-Reyna Attorney for Karla L. Padilla-Reyna
23 robin.emmans@secondstreetlaw.com ulvar@secondstreetlaw.com
24

28
-6-
217 N. 2nd Street
Yakima, WA 98901
(509) 575-0372
fax (509) 452-6771
Case 1:22-cr-02059-MKD ECF No. 42 filed 05/08/23 PageID.213 Page 7 of 7

1
CERTIFICATE OF SERVICE
2

3 I hereby certify that on May 8, 2023, I electronically filed the foregoing with
4
the Clerk of the Court using the CM/ECF System which will send notification of such
5
filing to the following: SAUSA Frieda K. Zimmerman, AUSA Tyler Tornabene, and
6

7 AUSA Dan Fruchter.

9
s/ Robin Emmans
10
Robin Emmans, WSBA 37085
11 2nd Street Law PLLC
12
217 N. 2nd Street
Yakima, WA 98901
13 (509) 575-0372
14
(509) 452-6771 (fax)
Robin.emmans@secondstreetlaw.com
15

28
-7-
217 N. 2nd Street
Yakima, WA 98901
(509) 575-0372
fax (509) 452-6771

File and source

File: 42-sentencing-memorandum-by-karla-leticia-padilla-reyna.pdf
Size: 192,599 bytes
SHA-256: b332e363caf600c855be40c205c49171f951d05d3ff60e0eef0a4b97e68e26d6
Our copy: 42-sentencing-memorandum-by-karla-leticia-padilla-reyna.pdf
Original: PACER (login required)