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EDVA Automated Plea Agreement

Summary

A plea agreement in United States v. Robert S. Stewart, Jr., No. 1:21-CR-5 (RDA), in the U.S. District Court for the Eastern District of Virginia, Alexandria Division, entered under Rule 11 of the Federal Rules of Criminal Procedure. The defendant agrees to plead guilty to a three-count Criminal Information charging false statements under 18 U.S.C. § 1001, wire fraud under 18 U.S.C. § 1343 and theft of government funds under 18 U.S.C. § 641. The parties recommend that U.S.S.G. § 2B1.1 apply, with the counts grouped under U.S.S.G. § 3D1.2(d). The agreement lists restitution of $261,500 to the Small Business Administration, $73,722.45 to the U.S. Department of Veterans Affairs and $13,492.05 to Celtic Bank Corp., totaling $348,714.50, and provides for forfeiture of at least that sum. It also contains appeal and FOIA waivers and a statement of a $300.00 special assessment.

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Full text

                    IN THE UNITED STATES DISTRICT COURT FOR THE

                              EASTERN DISTRICT OF VIRGINIA

                                        Alexandria Division

 UNITED STATES OF AMERICA

         v.                                              No. 1:21-CR-5 (RDA)

 ROBERT S. STEWART, JR.,

         Defendant.


                                      PLEA AGREEMENT

       Raj Parekh, Acting Acting United States Attorney for the Eastern District of Virginia,

undersigned counsel for the United States, the defendant, Robert S. Stewart, Jr., and the

defendant’s counsel have entered into an agreement pursuant to Rule 11 of the Federal Rules of

Criminal Procedure. The terms of this Plea Agreement are as follows:

       1.      Offenses and Maximum Penalties

       The defendant agrees to plead guilty to a three count Criminal Information charging the

defendant with making false statements, in violation of 18 U.S.C. § 1001 (Count1); wire fraud, in

violation of 18 U.S.C. § 1343 (Count 2); and theft of government funds, in violation of 18 U.S.C.

§ 641 (Count 3). The maximum penalties for a violation of Count 1 (false statements) are a term

of 5 years imprisonment, a fine of $250,000, a special assessment pursuant to 18 U.S.C. § 3013,

and a supervised release term of 3 years. The maximum penalties for a violation of Count 2 (wire

fraud) are a term of 20 years imprisonment, a fine of $250,000, or not more than the greater of

twice the gross gain derived by any person from the offense or twice the gross loss to a person

other than the defendant resulting from the offense, full restitution, forfeiture of assets as outlined

below, a special assessment pursuant to 18 U.S.C. § 3013, and a supervised release term of 3 years.
The maximum penalties for a violation of Count 3 (theft of government funds) are a term of 10

years imprisonment, a fine of $250,000, or not more than the greater of twice the gross gain derived

by any person from the offense or twice the gross loss to a person other than the defendant resulting

from the offense, full restitution, forfeiture of assets as outlined below, a special assessment

pursuant to 18 U.S.C. § 3013, and a supervised release term of 3 years. The defendant understands

that any supervised release term is in addition to any prison term the defendant may receive, and

that a violation of a term of supervised release could result in the defendant being returned to

prison for the full term of supervised release.

       2.      Factual Basis for the Plea

       The defendant will plead guilty because the defendant is in fact guilty of the charged

offenses. The defendant admits the facts set forth in the Statement of Facts filed with this Plea

Agreement and agrees that those facts establish guilt of the offenses charged beyond a reasonable

doubt. The Statement of Facts, which is hereby incorporated into this Plea Agreement, constitutes

a stipulation of facts for purposes of Section 1B1.2(c) of the Sentencing Guidelines.

       3.      Assistance and Advice of Counsel

       The defendant is satisfied that the defendant’s attorney has rendered effective assistance.

The defendant understands that by entering into this Plea Agreement, defendant surrenders certain

rights as provided in this agreement. The defendant understands that the rights of criminal

defendants include the following:

               a.      the right to plead not guilty and to persist in that plea;

               b.      the right to a jury trial;

               c.      the right to be represented by counsel—and, if necessary, have the court
                       appoint counsel—at trial and at every other stage of the proceedings; and




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               d.      the right at trial to confront and cross-examine adverse witnesses, to be
                       protected from compelled self-incrimination, to testify and present
                       evidence, and to compel the attendance of witnesses.

       4.      Sentencing Guidelines, Recommendations, and Roles

       The defendant understands that the Court has jurisdiction and authority to impose any

sentence within the statutory maximum described above, but that the Court will determine the

defendant’s actual sentence in accordance with 18 U.S.C. § 3553(a). The defendant understands

that the Court has not yet determined a sentence and that any estimate of the advisory sentencing

range under the U.S. Sentencing Commission’s Sentencing Guidelines Manual the defendant may

have received from the defendant’s counsel, the United States, or the Probation Office, is a

prediction, not a promise, and is not binding on the United States, the Probation Office, or the

Court. Additionally, pursuant to the Supreme Court’s decision in United States v. Booker, 543

U.S. 220 (2005), the Court, after considering the factors set forth in 18 U.S.C. § 3553(a), may

impose a sentence above or below the advisory sentencing range, subject only to review by higher

courts for reasonableness. The United States makes no promise or representation concerning what

sentence the defendant will receive, and the defendant cannot withdraw a guilty plea based upon

the actual sentence.

       Further, in accordance with Rule 11(c)(1)(B) of the Federal Rules of Criminal Procedure,

the United States and the defendant will recommend to the Court that the following provisions of

the Sentencing Guidelines apply:

       (a)     U.S.S.G. § 2B1.1 applies to Count 1, Count 2, and Count 3. Therefore, Count 1,

Count 2, and Count 3 are grouped together into a single Group of closely related counts, pursuant

to U.S.S.G. § 3D1.2(d).

       (b)     The United States and the defendant agree that the defendant has assisted the

government in the investigation and prosecution of the defendant’s own misconduct by timely


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notifying authorities of the defendant’s intention to enter a plea of guilty, thereby permitting the

government to avoid preparing for trial and permitting the government and the Court to allocate

their resources efficiently. If the defendant qualifies for a two-level decrease in offense level

pursuant to U.S.S.G. § 3E1.1(a) and the offense level prior to the operation of that section is a level

16 or greater, the government agrees to file, pursuant to U.S.S.G. § 3E1.1(b), a motion prior to, or

at the time of, sentencing for an additional one-level decrease in the defendant’s offense level.

       The United States and defendant have not agreed on any further sentencing issues, whether

related to the Sentencing Guidelines or the factors listed in 18 U.S.C. § 3553(a), other than those

set forth above or elsewhere in this Plea Agreement. Accordingly, any such determinations will

be made by the Court at sentencing.

       5.      Waiver of Appeal, FOIA, and Privacy Act Rights

       The defendant also understands that 18 U.S.C. § 3742 affords a defendant the right to

appeal the sentence imposed. Nonetheless, the defendant knowingly waives the right to appeal the

conviction and any sentence within the statutory maximum described above (or the manner in

which that sentence was determined) on the grounds set forth in 18 U.S.C. § 3742 or on any ground

whatsoever other than an ineffective assistance of counsel claim that is cognizable on direct appeal,

in exchange for the concessions made by the United States in this Plea Agreement. This agreement

does not affect the rights or obligations of the United States as set forth in 18 U.S.C. § 3742(b).

The defendant also hereby waives all rights, whether asserted directly or by a representative, to

request or receive from any department or agency of the United States any records pertaining to

the investigation or prosecution of this case, including without limitation any records that may be

sought under the Freedom of Information Act, 5 U.S.C. § 552, or the Privacy Act, 5 U.S.C. § 552a.




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       6.      Immunity from Further Prosecution in This District

       The United States will not further criminally prosecute the defendant in the Eastern District

of Virginia for the specific conduct described in the Criminal Information or Statement of Facts.

This Plea Agreement and Statement of Facts does not confer on the defendant any immunity from

prosecution by any state government in the United States.

       7.      Payment of Monetary Penalties

       The defendant understands and agrees that, pursuant to 18 U.S.C. § 3613 and 18 U.S.C.

§ 3572, all monetary penalties imposed by the Court, including restitution, will be due immediately

and subject to immediate enforcement by the United States as provided for in Section 3613. Within

14 days of a request, the defendant agrees to provide all of the defendant’s financial information

to the United States and the Probation Office and, if requested, to participate in a pre-sentencing

debtor’s examination and/or complete a financial statement under penalty of perjury. If the Court

imposes a schedule of payments, the defendant understands that the schedule of payments is

merely a minimum schedule of payments and not the only method, nor a limitation on the methods,

available to the United States to enforce the judgment. Until all monetary penalties are paid in

full, the defendant will be referred to the Treasury Offset Program so that any federal payment or

transfer of returned property to the defendant will be offset and applied to pay the defendant’s

unpaid monetary penalties. If the defendant is incarcerated, the defendant agrees to participate

voluntarily in the Bureau of Prisons’ Inmate Financial Responsibility Program, regardless of

whether the Court specifically directs participation or imposes a schedule of payments. Defendant

agrees to make good-faith efforts toward payment of all monetary penalties imposed by the Court.




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        8.     Special Assessment

       Before sentencing in this case, the defendant agrees to pay a mandatory special assessment

of $100 per felony count of conviction, pursuant to 18 U.S.C. § 3013(a)(2)(A).

       9.      Restitution

       The defendant agrees that restitution is mandatory pursuant to 18 U.S.C. § 3663A(c)(1),

and the defendant agrees to the entry of a Restitution Order for the full amount of the victims’

losses as determined by the Court. Pursuant to 18 U.S.C. § 3663A(c)(2), the defendant further

agrees that an offense listed in Section 3663A(c)(1) gave rise to this Plea Agreement and, as such,

victims of the conduct described in the charging instrument, Statement of Facts, or any related or

similar conduct shall be entitled to restitution. Without limiting the amount of restitution that the

Court must impose, the parties agree that, at a minimum, the following victims have suffered the

losses identified below and are entitled to restitution:

 Victim Name and Address                                                       Restitution Amount

 Small Business Administration
 Denver Finance Center
 Attn: Paul Keenan
                                                                          $261,500
 721 19th Street
 Denver, Colorado 80202

 U.S. Department of Veterans Affairs
 Debt Management Center (DMC)
 P.O. Box 11930                                                          $73,722.45
 St. Paul, Minnesota 55111

 Celtic Bank Corp.
 268 State Street
 #300                                                                    $13,492.05
 Salt Lake City, Utah 84111


 Total Restitution:                                                      $348,714.50




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       The defendant understands that forfeiture and restitution are separate and distinct financial

obligations that must be imposed upon a criminal defendant. The defendant further understands

that restitution will be enforced pursuant to 18 U.S.C. § 3572, 18 U.S.C. § 3613, and 18 U.S.C.

§ 3664(m).

       10.     Forfeiture Agreement

       The defendant understands that the forfeiture of assets is part of the sentence that must be

imposed in this case. The defendant agrees to forfeit all interests in any fraud-related asset that

the defendant owns or over which the defendant exercises control, directly or indirectly. This

includes any property that is traceable to, derived from, fungible with, or a substitute for the

following: property that constitutes the proceeds of the offenses, namely, a sum of money equal to

at least $348,714.50 in United States currency.

       The defendant understands that if the assets subject to forfeiture are not available to the

United States to be forfeited, the Court must enter a forfeiture money judgment in the amount of

the unavailable assets. United States v. Blackman, 746 F.3d 137 (4th Cir. 2014). The defendant

acknowledges that as a result of defendant’s acts or omissions, the actual proceeds the defendant

obtained as a result of the offenses are not available and the defendant stipulates that one or more

of the factors listed at 21 U.S.C. § 853(p)(1) are present in this case.

       The defendant further agrees to waive all interest in the asset(s) in any administrative or

judicial forfeiture proceeding, whether criminal or civil, state or federal. The defendant agrees to

consent to the entry of orders of forfeiture for such property and waives the requirements of Federal

Rules of Criminal Procedure 32.2 and 43(a) regarding notice of the forfeiture in the charging

instrument, announcement of the forfeiture at sentencing, and incorporation of the forfeiture in the

judgment. Defendant admits and agrees that the conduct described in the charging instrument and




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Statement of Facts provides a sufficient factual and statutory basis for the forfeiture of the property

sought by the government.

       11.     Waiver of Further Review of Forfeiture

       The defendant further agrees to waive all constitutional and statutory challenges to

forfeiture in any manner (including direct appeal, habeas corpus, or any other means) to any

forfeiture carried out in accordance with this Plea Agreement on any grounds, including that the

forfeiture constitutes an excessive fine or punishment. The defendant also waives any failure by

the Court to advise the defendant of any applicable forfeiture at the time the guilty plea is accepted

as required by Rule 11(b)(1)(J). The defendant agrees to take all steps as requested by the United

States to pass clear title to forfeitable assets to the United States, and to testify truthfully in any

judicial forfeiture proceeding. The defendant understands and agrees that all property covered by

this agreement is subject to forfeiture as proceeds of illegal conduct and substitute assets for

property otherwise subject to forfeiture.

       12.     The Defendant’s Obligations Regarding Assets Subject to Forfeiture

       Upon request by the government, the defendant agrees to identify all assets in which the

defendant had any interest or over which the defendant exercises or exercised control, directly or

indirectly, within the past 5 years from the date of the defendant’s signature on this Plea

Agreement. The defendant agrees to take all steps as requested by the United States to obtain from

any other parties by any lawful means any records of assets owned at any time by the defendant.

The defendant agrees to undergo any polygraph examination the United States may choose to

administer concerning such assets and to provide and/or consent to the release of the defendant’s

tax returns for the previous five years. The defendant understands that the proceeds of the




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offense(s) are subject to forfeiture and cannot be used for any purpose, to include attorney’s fees

and living expenses.

       13.     Breach of the Plea Agreement and Remedies

       This Plea Agreement is effective when signed by the defendant, the defendant’s attorney,

and an attorney for the United States. The defendant agrees to entry of this Plea Agreement at the

date and time scheduled with the Court by the United States (in consultation with the defendant’s

attorney). If the defendant withdraws from this agreement, or commits or attempts to commit any

additional federal, state, or local crimes, or intentionally gives materially false, incomplete, or

misleading testimony or information, or otherwise violates any provision of this agreement, then:

               a.      The United States will be released from its obligations under this agreement.
                       The defendant, however, may not withdraw the guilty plea entered pursuant
                       to this agreement.

               b.      The defendant will be subject to prosecution for any federal criminal
                       violation, including, but not limited to, perjury and obstruction of justice,
                       that is not time-barred by the applicable statute of limitations on the date
                       this agreement is signed. Notwithstanding the subsequent expiration of the
                       statute of limitations, in any such prosecution, the defendant agrees to waive
                       any statute-of-limitations defense.

               c.      Any prosecution, including the prosecution that is the subject of this
                       agreement, may be premised upon any information provided, or statements
                       made, by the defendant, and all such information, statements, and leads
                       derived therefrom may be used against the defendant. The defendant
                       waives any right to claim that statements made before or after the date of
                       this agreement, including the Statement of Facts accompanying this
                       agreement or adopted by the defendant and any other statements made
                       pursuant to this or any other agreement with the United States, should be
                       excluded or suppressed under Fed. R. Evid. 410, Fed. R. Crim. P. 11(f), the
                       Sentencing Guidelines, or any other provision of the Constitution or federal
                       law.

       Any alleged breach of this agreement by either party shall be determined by the Court in

an appropriate proceeding at which the defendant’s disclosures and documentary evidence shall




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be admissible and at which the moving party shall be required to establish a breach of this Plea

Agreement by a preponderance of the evidence.

       14.     Nature of the Agreement and Modifications

       This written agreement constitutes the complete plea agreement between the United States,

the defendant, and the defendant’s counsel.         The defendant and the defendant’s attorney

acknowledge that no threats, promises, or representations have been made, nor agreements

reached, other than those set forth in writing in this Plea Agreement or any associated documents

filed with the Court, to cause the defendant to plead guilty. Any modification of this Plea

Agreement shall be valid only as set forth in writing in a supplemental or revised plea agreement

signed by all parties.


                                          Raj Parekh
                                          Acting United States Attorney

                                    By:
                                          William Fitzpatrick
                                          Assistant United States Attorney




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        Defendant’s Signature: I hereby agree that I have consulted with my attorney and fully
understand all rights with respect to the pending three count Criminal Information. Further, I
fully understand all rights with respect to 18 U.S.C. § 3553 and the provisions of the Sentencing
Guidelines Manual that may apply in my case. I have read this Plea Agreement and carefully
reviewed every part of it with my attorney. I understand this agreement and voluntarily agree to
it.


 Date:
                                             Robert S. Stewart, Jr.

       Defense Counsel’s Signature: I am counsel for the defendant in this case. I have fully
explained to the defendant the defendant’s rights with respect to the pending three count
Criminal Information. Further, I have reviewed 18 U.S.C. § 3553 and the Sentencing Guidelines
Manual, and I have fully explained to the defendant the provisions that may apply in this case. I
have carefully reviewed every part of this Plea Agreement with the defendant. To my
knowledge, the defendant’s decision to enter into this agreement is an informed and voluntary
one.


 Date:
                                             Robert L. Jenkins, Jr.
                                             Counsel for the Defendant




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                                     U. S. DEPARTMENT OF JUSTICE
                                  Statement of Special Assessment Account

   This statement reflects your Special Assessment only. There may be other penalties imposed at
   sentencing.


                                        ACCOUNT INFORMATION

CRIM. ACTION NO.:                     1:21-CR-5 (RDA)
DEFENDANT’S NAME:                     Robert S. Stewart, Jr.
PAY THIS AMOUNT:                      $300.00

   INSTRUCTIONS:

   1. MAKE CHECK OR MONEY ORDER PAYABLE TO:

                  CLERK, U.S. DISTRICT COURT

   2. PAYMENT MUST REACH THE CLERK’S OFFICE BEFORE YOUR SENTENCING DATE.

   3. PAYMENT SHOULD BE SENT TO:

                                       In-Person (9 AM to 4 PM)           By Mail:

                                                            Clerk, U.S. District Court
    Alexandria Cases:                                        401 Courthouse Square
                                                              Alexandria, VA 22314


                                                            Clerk, U.S. District Court
    Richmond Cases:                                     701 East Broad Street, Suite 3000
                                                              Richmond, VA 23219


                                                            Clerk, U.S. District Court
    Newport News Cases:                                     2400 West Ave., Suite 100
                                                            Newport News, VA 23607

                                                            Clerk, U.S. District Court
    Norfolk Cases:                                             600 Granby Street
                                                               Norfolk, VA 23510


   4. INCLUDE DEFENDANT’S NAME ON CHECK OR MONEY ORDER.

   5. ENCLOSE THIS COUPON TO ENSURE PROPER AND PROMPT APPLICATION OF
      PAYMENT.


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