Embed Size (px)
Citation preview
AO 257 (Rev.6/78)
DEFENDANT INFORMATION RELATIVE TO A CRIMINAL ACTION - IN U.S.DISTRICT COURT
BY: COMPLAINT X INFORMATION INDICTMENT Nameof DistrictCourt, and/ MagistrateLocation
SUPERSEDING NORTHERN-OFFENSECHARGED
SAN FRANCISCO DIVISIONCOUNTONE: Petty18 U.S.C. 371-- Conspiracy
Minor DEFENDANT- U.SCOUNT TWO: Misde2 U.S.C. (b ) --LobbyingDisclosureAct
meanor JACK ABRAMOFF
JUN 25 2020SUSAN Y. SOONGCLERK, U.S.DISTRICT COURTNORTHDISTRICTOF
CALIFORNIA
CRBDISTRICTCOURTNUMBERPENALTY
X Felony
CT ONE : 5 yrs imprisonment, fine of $ 250,000, 3 yrs supervisedrelease, $ 100 special assessment ; CT TWO : 5 yrs imprisonmentfine of $250,000, 3 yrs supervised release, $ 100 special assessment CR 20 0260
PROCEEDING
NameofComplaintantAgency, orPerson (& Title, if any)
DEFENDANT
IS NOTIN CUSTODYHas notbeen arrested, pending outcomethis proceeding.
1) notdetained give date any priorsummonswasservedon abovecharges
FederalBureauofInvestigation
person is awaitingtrial in anotherFederalor StateCourt,givenameofcourt
2) a Fugitive
3) Is on Bail or Release from (show District)
this person/proceeding is transferred from another districtper ( circle one) FRCrp 20, 21, or 40. Show District
IS IN CUSTODY
4 ) this charge
this is a reprosecutionof
chargespreviouslydismissedwhichweredismissedon motionof:
5 ) On another conviction
Federal StateSHOW
DOCKETNO .
U.S.ATTORNEY DEFENSE6) Awaiting trialon other charges
Ifanswer to (6 ) is" Yes" , show name ofinstitution
}this prosecutionrelatesto a
Yes If " Yes"
pending caseinvolving this same Hasdetainer give datedefendant MAGISTRATE beenfiled?No filed
CASENO.DATEOF Month /DayYear
priorproceedings or appearance(s )before U.S.Magistrate regarding this
ARREST
defendantwere recorded under Or... if ArrestingAgency & Warrantwere not
Nameand Office ofPerson DATE TRANSFERRED Month/Day/Year
Furnishing Information on this form DAVID L.ANDERSON TO U.S.CUSTODY
U.S.Attorney Other U.S.Agency
Nameof Assistant U.S. reportamends AO 257 previouslysubmitted
Attorney(if assigned LLOYD FARNHAM
ADDITIONALINFORMATIONOR COMMENTSPROCESS
SUMMONS X NO PROCESS* WARRANT Bail Amount:
IfSummons, complete following:Arraignment InitialAppearance * Wheredefendantpreviouslyapprehendedon complaint, nonew summonsor
warrantneeded, sinceMagistrate has scheduled arraignment
DefendantAddress:
Date / Time: Before Judge:
Comments:
NORTHERN DISTRICTOF CALIFORNIA JUN 25 2020UNITED STATES DISTRICT COURT FILED
SUSAN Y.SOONGCLERK,U.S.DISTRICTCOURT
NORTHDISTRICT
CALIFORNIACRIMINALCOVER SHEET
Instructions: Effective November 1, 2016 , this Criminal Cover Sheetmust be completed and submitted,along with the Defendant Information Form , for each new criminal case.
CRBCRCASE NAME
USA V. JACK ABRAMOFF CR
Is This Case Under Seal? Yes No
TotalNumberofDefendants: 1 8 or more
Does this case involveONLY chargesunder U.S.C. and/ or 1326 ?
Yes No
Venue (Per Crim . L.R. 18-1) SF OAK SJ
Is this a potentialhigh-cost case? Yes No
Isany defendantcharged with
a death -penalty- eligible crime?Yes No
Is this a RICO Act gangcase? Yes No
Assigned AUSA(Lead Attorney) Lloyd Farnham Date Submitted: 6/25/2020
Comments:
RESETFORM SAVE PDFForm CAND -CRIM -COVER (Rev.11/16)
1 ||DAVID L.ANDERSON (CABN 149604)UnitedStatesAttorney
2 FILEDJUN 25 20203
4SUSAN Y. SOONGCLERK, DISTRICT COURTNORTH DISTRICT OF CALIFORNIA5
6
7
8 UNITED STATES DISTRICT COURT
CRB9 NORTHERN DISTRICT OF CALIFORNIA
10 SAN FRANCISCO DIVISION
11| UNITED STATES OF AMERICA , CARNO 20 026012 Plaintiff
13
WOLATIONS:
18 U.S.C. 371 Conspiracy;2 U.S.C. 1603(a ) and 1606(b ) - LobbyingDisclosureAct
14 | JACK ABRAMOFF,
15SAN FRANCISCO VENUE
Defendant
16
17
18
19 INFORMATION
20 United States Attorney charges :
21 Introductory Allegations
22 Atall times relevant to this Information :
23 1. The allegations in this Information involve a conspiracy to commit wire fraud in
24 connection with the sale of a purported new cryptocurrency called “ AML Bitcoin ” through an initial
25 offering and otherwise. Beginningin aboutJuly 2017 and continuingthrough at least December
26 2018, the cryptocurrency AML Bitcoin wasmarketed and sold to prospective purchasers in theUnited
27 and elsewherethrough false andmisleadingstatements. The allegations in this Informationalso
28 || involve the defendant's failure to register as a federal lobbyist after being retained in June 2017 to have
INFORMATION
1 lobbying contactswith a member ofthe United States House ofRepresentatives relating to the
2 formulation ,modification, or adoption of federallegislation, rules, orpolicies.
3 AML Bitcoin and the NAC Foundation
4 2 . NAC Foundation, LLC ( NAC Foundation ) was a Nevadalimited liabilitycorporation
5 formed on or about February 13 , 2014 by co -conspirator Rowland Marcus Andrade , nota defendant
6 herein. Andradewasthe founderand chiefexecutiveofficer of NAC Foundation, which wasalso
7 referredto as the“ NationalAtenCoin Foundation.” The stated purpose ofNAC Foundation was to
8 andmanagea new cryptocurrency called AML Bitcoin. Andrade claimed to be the creator of
9 ||thecryptocurrency AML Bitcoin and the inventor of AML Bitcoin technology.
10 3 . TheAML Bitcoin“ White Paper, a documentdated October 4 , 2017, waspostedon the
11 Bitcoinwebsite by AndradeandNAC Foundation. TheWhite Paper stated thatNAC Foundation
12 created two cryptocurrencies, AML Bitcoin and itspredecessor AtenCoin. In the White Paper,NAC
13 FoundationclaimedAML Bitcoin cryptocurrencywould include featuresthatwould allow the
14 cryptocurrency to comply with anti-money laundering (also referred to as “AML ) and know -your15 customer (“KYC regulations and laws by using “biometric technologies” among other methods to16 confirm the identitiesof participantsin transactionsusingAML Bitcoin. The White Paper stated that
17 Andrade sought to raiseup to $ 100 million from the public sale ofAML Bitcoin tokens.
18 4 Beginning in orabout July 2017, Andrade and NAC Foundation began raisingmoney
19 ||purportedly for thedevelopmentof AMLBitcoin by selling AML Bitcoin tokens. Prospective
20 purchasers of the AML Bitcoin tokenswere told that once the AML Bitcoin technology was developed
21 and functioningthetokenswould beconverted to the actualAMLBitcoin cryptocurrency.
5 . Defendant JACK ABRAMOFF was retained by Andrade and NAC Foundation in or
23 about June 2017 to perform consulting and to work on a public relations and marketing campaign for
24 Bitcoin. Beginningin August2017, ABRAMOFF recruitedand paid writers to publish and
25 || disseminate, under those writers' names, written articles touting AML Bitcoin specifically, aswell as to
26 || the idea of a cryptocurrency that would be fully compliant with “ AML and “KYC” laws and
27 | regulations. These articleswerepublishedasopinion editorials or eds” on well-knownnewsand
28 financial websites. The recruited writersdid notdisclose in the published piece that they hadbeen paid
INFORMATION
1 ||by ABRAMOFFor AML Bitcoin to disseminatethe information in the article.
2 6 . Beginning in October2017and continuingthrough about February 2018, the NAC
3 | Foundationconductedwhat itcalled theAML Bitcoin “ initialcoin offering, " or ICO. After the ICO
4 in about February 2018 , Andrade ,NAC Foundation , ABRAMOFF , and other Andrade associates
5 continued to solicit purchasers for AML Bitcoin tokens. NAC Foundation raised more than $ 5 million
6 the sale of AML Bitcoin tokens beginning in about July 2017 through about December 2018 .
7 The Defendant
8 7. Defendant JACK ABRAMOFF,61, was a residentofSilver Spring,Maryland.
9 ||ABRAMOFF was retained to work on public relations and marketing for theNAC Foundation , LLC in
10 || to promote the AML Bitcoin cryptocurrency in advance ofandduring the Bitcoin ICO.
11 Separately, ABRAMOFF performed work as a consultantto various entities and individuals regarding
12 || efforts to affect federal legislation, regulations, and policy, and as partof this work for these clients ,
13 ||ABRAMOFF hadmultiple communicationswith a sitting memberof the United StatesHouse of
14 Representativesduring whichhe raised these issues on behalfof the clients.
15 Co- conspirator
16 8 Co- conspirator Rowland Marcus Andrade, also known asMarcus Andrade , was a
17 resident ofMissouriCity, Texas. Andrade owned and controlled NAC Foundation and was the principal
18 ||behind the efforts to raise money by selling AML Bitcoin tokens to individual purchasers, many of
19 | were located in the United States. Prior to soliciting purchasers and raising money for the AML
20 Bitcoin projectbeginning in about 2017, Andrade created and sold other purported cryptocurrencies.
21 “ Black Gold Coin and " AtenCoin . "
22 Definitions
23 9. The term “ cryptocurrency” refersto a classof financialinstruments that allow the
24 transfer ofvalue between individuals without any third -party mediation or government regulation . This
25 transfer isaccomplishedwith a setofcryptographicprotocolsexecuted entirelyover the Internet. These
||protocolsrequirethat each transaction'ssender and receiverhold an appropriate cryptographickey.
27 ||Cryptocurrency was invented in approximately 2009, and examplesofcryptocurrencies in widespread
28 useincludeBitcoin, Ethereum, and Litecoin.
INFORMATION 3
1 10. The term “ initial coin offering,” or “ ICO,” refers to the initial sale of a cryptocurrency to
2 public . An ICO is similar to an initialpublic offering” of stock , a transaction that raisesmoney for a
3 || company and begins the public trading of the company's stock . The purpose of an ICO is to
4 raise money by selling either units of cryptocurrency , or by selling “ tokens” that act as placeholders that5 can later be exchanged for the cryptocurrency , and the money raised istypically used to fund the
6 ||business or entity developing the new cryptocurrency .
7 TheMannerandMeansof theConspiracyand the Schemeto Defraud
8 11. NACFoundation, under thedirection of co -conspirator Andrade,made statements
9 regarding AML Bitcoin, including press releases thatwere posted on the AML Bitcoin website and
10 distributed through newswire services ,posts on social media including Twitter ,discussion forums, and
11 information posted on the AML Bitcoin website ,among others venues . Andrade, NAC
12 | Foundation employees and associates , acting at Andrade’s direction , ABRAMOFF , and others also
13 made statements directly to purchasers and prospective purchasers of AML Bitcoin tokens.
14 12 . Beginning no later than about July 2017 , and continuing to at least aboutDecember 2018,
15 Andrade knowingly and with the intent to defraud participated in, devised, and intended to devise a
16 andartifice to defraudas to amaterialmatter, and to obtainmoneyand property by meansof
17 materially false and fraudulentpretenses, representations, andpromises,andbymeansof omission and
18 concealmentofmaterial facts. As partofthe schemeto defraud, co-conspirator Andrade, individually
19 ||and through theNAC Foundation, an entity he controlled, committed or caused to be committed by
20 | , includingABRAMOFF, the following acts, among others:
21 a ) ABRAMOFF, co -conspirator Andrade, NAC Foundation, and othersmadepublic
22 statements and statements to potentialpurchasersofAMLBitcointokensthatmisrepresentedthe
23 state of the development of the technology and the viability and timeline for the finalrelease of
24 the functionalAMLBitcoin cryptocurrency. Andrade and othersrepeatedly stated thatthe
25 conversion of the token to the AML Bitcoin and the launch of the cryptocurrency, with the
26
27
promised AML andKYC compliant biometric verification, would be completed in six months.
b ) In or aboutJanuary andFebruary 2018, ABRAMOFF, co -conspirator Andrade,
and others engaged in a false “ rejection campaign regardinga purported television commercial28
INFORMATION 4
1 that ABRAMOFF, Andrade, and others stated was to going to be aired during the 2018 Super
Bowltelevision broadcast. The television commercialportrayed AML Bitcoin as impervious to2
3
4
hacking effortsby the North Korean governmentand its leader in a mannerdemeaning to the
North Korean government and its leader. The statements claimed that theadvertisementwould
haveaired during the Super Bowlif the television network airing the Super Bowland the5
6
7
National Football League had not rejected the advertisement as being too politically
controversial. In fact, as ABRAMOFF and Andrade knew , theNAC Foundation did nothave the
funds to purchase the advertising time, did not intend to air the television commercial, and the8
9 advertisement was never rejected by the television network or the NFL. ABRAMOFF retained
10 at least four writers, who disseminatedat least five op -ed articlesregardingthepurported
11 rejection of the advertisementby the NFL and the television network, and these articles were
12 published on fiveseparate online news platformsin February 2018.
13 c) Co-conspirator Andrade, NAC Foundation, and others made statements that
14 falsely stated and implied that the NAC Foundation had reached or was about to finalize
agreements with various governmentagencies for the use of AML Bitcoin or AML Bitcoin
16 technology, in ordermakeprospective purchasers believe that the cryptocurrency was
17 progressing toward widespread adoption. ABRAMOFF retained writers to further disseminate
18 these statements as op -edspublished on various news and financialwebsites . For example , on or
19
20
about November 8 , 2017, NAC Foundation announced that Andrade and NAC Foundation
representatives were “ in talks with and on track to partner with the government of Panama
and the Panama Canal Authority regarding adoption of the AML Bitcoin cryptocurrency for21
22 mentof transit fees. This statementoverstatedthe significanceand outcomeofmeetingsand
23 conversationswith the PanamaCanalAuthority.
24 d) In orabout July 2018,ABRAMOFFmade false andmisleading statements to an
undercover agent posing as a potential large purchaser ofAMLBitcoin , including statements that25
26 the AML Bitcoinand its technology allowingit to be compliantwith all “KYC” and “ AML
27 laws and regulationswas functioningand complete.
28 e ABRAMOFFwas compensatedby co -conspirator AndradeandNAC Foundation
INFORMATION 5
1 for his public relations andmarketing work and in some cases for his solicitation of AML
Bitcoin Token purchasers ,and from about June 2017 through September 2018 received a total of2
about$220,000 from AndradeandNAC Foundation.w
OvertActs andUse ofInterstateWires
5 13. In furtherance of the conspiracy and to effect the objects thereof, in the Northern District
6 of California and elsewhere , co -conspirator Andrade, ABRAMOFF ,and others committed the following
7 acts :
8 a ) On or about January 12, 2018, Andrade and others transmitted and caused to be
9 transmitted in interstate and foreign commerce, bymeansof a wire communication, certain
10 writings, signs, signals, pictures, and sounds, specifically, a wire transfer of in the amountof
$ 730,000 originating from a bank account in the Northern District of California controlledby a11
12 person identifiedas PURCHASER-1using the Fedwire FundsService.
13 b ) On or aboutJuly 9 , 2018, ABRAMOFF and an undercover agentlocated in the
14 Northern District of California spoke by telephone , a wire communication in interstate and
15 foreign commerce, and duringthat conversation ABRAMOFF discussed the undercoveragent's
16 stated interestin purchasing AML Bitcoin tokens and ABRAMOFFmade false and misleading
17 statements regarding AML Bitcoin .
18 Failure to Register under the LobbyingDisclosure Act
19 14. From aboutMarch 2017 through about December 2017, ABRAMOFF was retained and
20 || by an entity based in California in the state- legalized medical and personal-usemarijuana industry ,
21 || that engagement, in part, involved efforts to advocate for changes in federal law and policy
22 regardingmarijuana. In connectionwith hiswork for that client, ABRAMOFF discussed topicswith a
23 member of Congress including the proposed modification or adoption of federal legislation regarding
24 ||marijuana, adoption oflaws that protected medicalmarijuana from federal law enforcement, and
25 possible amendmentto the federaltax code. Despitehavingcommunicationswith thatmemberof
on behalfof the client and being paid by the client, ABRAMOFFdid notregisteras a lobbyist
27 || the Secretary of the Senate and the Clerk of the House of Representatives.
28 15 . In or about April 2017, an undercover FBIagent posing as a business person seeking to
INFORMATION 6
1 || fund certain lobbying efforts began communicating with ABRAMOFF, and those communications
2 | continued through at least July 2018. In or about June2017 theundercoveragentand ABRAMOFFmet
3 San Francisco, California, and during and after thatmeeting ABRAMOFF and the undercover agent
4 ||discussed an engagementthat included lobbying activities and planned lobbyingcontacts. Duringthe
5 ||meeting and in subsequent conversations, the undercover agent agreed to retain ABRAMOFF for the
6 lobbying effort, and paid him a small retainer fee. Afterbeing retained by the undercover agent for an
7 | engagement that included planned lobbyingactivitiesand at least one lobbying contactwith a member
8 Congress, ABRAMOFF had contacts with thatmember ofCongress andraised topics related to the
9 legislative goals discussedwith theundercover agent, includingduring a meeting that included the
10 ||memberof Congress in or about July 2018.
11 16 After being retained for these lobbying efforts ,and being retained to have one ormore
12 ||lobbying contacts , ABRAMOFF failed to register as a lobbyist with the Secretary of the Senate and the
13 | Clerk ofthe House ofRepresentatives as required by the Lobbying Disclosure Act. ABRAMOFF was
14 aware of the obligations to registeras a lobbyistin part because Congress amended provisionsofthe
15 | Lobbying Disclosure Act in 2007 in part as a reaction to ABRAMOFF'spast conductas a lobbyist.
16 ||COUNTONE: (18 U.S.C. 371- Conspiracy)
17 Paragraphs 1through 13of this Informationare re -alleged and incorporatedas if fully set forth
18 ||here.
19 Beginningin or aboutJanuary 2018, and continuingthrough in orabout September 2018 , in the
20 NorthernDistrictofCaliforniaand elsewhere, the defendant,
21 JACK ABRAMOFF ,
22 ||did knowingly and willfully conspire andagreewith co -conspiratorRowlandMarcusAndrade, and
23 known and unknown to the United States Attorney , to commit offenses against the United States,
24 specifically , to devise a scheme and artifice to defraud and to obtain money and property bymeans of
25 materially false and fraudulentpretenses, representations, and promises, and bymeansof concealment
26 material facts, and in executing said scheme caused writings, signs, signals , and sounds to be
27 transmitted by means ofwire in interstate commerce , in violation of Title 18, United States Code,
28 || Section 1343.
INFORMATION 7
1 Allin violation ofTitle 18, United StatesCode, Section 371.
2 ||COUNT TWO: ( 2 U.S.C. 1603 a) and 1606(b ) - Lobbying DisclosureAct)
3 Paragraphs1, 7 , and 14 through 16 of this Informationare re-alleged and incorporatedas if fully
4 forth here.
5 In or about June 2017 and continuing through in or about July 2018, in theNorthern District of
6 and elsewhere, the defendant,
7 JACK ABRAMOFF,
8 ||knowingly and corruptly failed to comply with the provisions of the Lobbying Disclosure Act, 2 U.S.C.
9 | et. seq., specifically failing to register with the Secretary ofthe Senateandthe Clerk of the
10 | ofRepresentatives no later than 45 days after ABRAMOFF firstmade a lobbying contact or was
11 employed or retained to makea lobbying contact, as required by 2 U.S.C. 1603(a).
12 All in violation of Title 2 ,United States Code, Sections 1603(a ) and 1606(b ).
13
14 : June 25, 2020 DAVID L.ANDERSON
United States Attorney15
16
17
LLOYD FARNHAMANDREW F.DAWSON
AssistantUnited States Attorneys18
19
20
21
22
23
24
25
26
27
28
INFORMATION 8
DAVID L.ANDERSON (CABN 149604)UnitedStatesAttorney
2
HALLIEHOFFMAN (CABN 210020)3 || , CriminalDivision
4 FARNHAM (CABN 202231)ANDREW F.DAWSON (CABN 264421)
5 ||Assistant United States Attorney
6
7
450 Golden Gate Avenue , Box 36055San Francisco , California 94102-3495
Telephone : (415 ) 436-7200FAX: ( 415 ) 436-7234
9 || Attorneys for United States of America
10 UNITED STATES DISTRICT COURT
11 NORTHERN DISTRICT OF CALIFORNIA
12 SAN FRANCISCO DIVISION
13
UNITED STATES OF AMERICA , ) CASE NO . CR 20-0260 CRB14 )
Plaintiff,15 STIPULATION AND [ PROPOSED ] ORDER
) REGARDING CHANGE OF PLEA HEARINGV.
16
JACK ABRAMOFF ,17
Defendant.
18
19
20 The parties in the above-captioned matter have reached an agreement to resolve the pending
21 charges filed in this case by Information. The plea agreement attachedhereto as Exhibit 1, reflects the
22 parties agreement, including the defendant's agreementto enter a guilty plea to the chargesin the
23 Information. In order to expedite this matterand the proposed resolution, and in light of the current
24 COVID - 19 pandemic, the parties are requesting thatthe Court set a changeof plea hearing to be held by
25 | videoconference as soon as practical on the Court's regular weekly criminal calendar .
26 The defendantresides in Maryland, and voluntarily wishes to appearbefore the Court for this
27 hearing by video conference, and he has been advised by counsel and understands that he has the right
28 under the Constitution and the FederalRules of Criminal Procedure to be presentat the proceeding. The
STIPULATIONRECHANGEOF PLEA
1 | parties also agree that the defendantshall appear, by video conference, before a Magistrate Judge in this
2 district to be arraigned and advised of the chargeson July 6 , 2020 .
3 The parties further stipulate that ( 1) in light of the COVID - 19 pandemic , the change of plea
4 ||hearing cannot be conducted in person without seriously jeopardizing public health and safety and
5 ||(2) the interests of justice weigh in favor of conducting the change of plea hearing expeditiously without
6 delay thatmay be caused by the pandemic, subjectto the availability of the Court.
7 SO STIPULATED.
8
9 ||DATED: June 25, 2020 DAVID L.ANDERSON
United States Attorney10
11/ s/
LLOYD FARNHAMANDREW F.DAWSON
AssistantUnited States Attorneys12
13
14 ||DATED: June 25, 2020 / s /
ABBED.LOWELLERIC M.MEIRING
Attorneys forDefendantJack Abramoff
15
16
17
[ PROPOSED] ORDER18
19Pursuantto stipulation, the above-captioned will be set for a change of plea hearing on
The parties will appearby videoconference. The Court finds that ( 1) in20
light of the ongoing COVID - 19 pandemic, the hearing cannotbe conducted in person without seriously21
jeopardizing public health and safety; and (2 ) in the interests of justice the change of plea cannotbe22
delayed in light of the pandemic.23
IT IS SO ORDERED.
24
25
DATED :
26 HON. CHARLESR.BREYER
UNITED STATESDISTRICTJUDGE27
28
STIPULATION RE CHANGEOF PLEA 2
1 ||DAVID L.ANDERSON (CABN 149604)United States Attorney
2
HALLIE HOFFMAN (CABN 210020)
3 Chief, Criminal Division
4 LLOYD FARNHAM (CABN 202231)ANDREW F.DAWSON (CABN 264421)
5 ||Assistant United States Attorney
6
7
450 Golden Gate Avenue , Box 36055
San Francisco , California 94102-3495
Telephone : (415) 436-7200FAX: (415) 436-7234
9 Attorneys for United Statesof America
10 UNITEDSTATESDISTRICTCOURT
11 NORTHERNDISTRICTOFCALIFORNIA
12 SAN FRANCISCODIVISION
13
14
UNITED STATES OF AMERICA , ) NO .15
Plaintiff,16
PLEA AGREEMENT
17
JACK ABRAMOFF ,18
Defendant.19
20
I Jack Abramoff, and the United States Attorney'sOffice for the Northern District of California21
22(hereafter“ the government ) enter into this written Plea Agreement (the “ Agreement ) pursuant to Rule
11 c )(1) (A ) and 11(c )(1)(B ) of the FederalRules of Criminal Procedure:23
The Defendant's Promises24
1 I agree to plead guilty to Counts Oneand Two of the captioned Information, charging me25
with violation of 18 U.S.C. 371 (conspiracy) and 2 U.S.C. 1606 (b ) (Lobbying Disclosure Act) .26
I agree that the elements of 18U.S.C. 371 are as follows: ( 1) there wasanagreementbetween27
two ormore persons to commit an offense against the United States, specifically, wire fraud in violation28
PLEA AGREEMENT 1 . 05/14/2020
1 18 U.S.C. 1343; ( ) the defendant becamea member of the conspiracy knowing of its object and
2 || intending to help accomplish it; and( ) one of the members of the conspiracy performedat leastone
3 overt act, after the defendant becamea member of the conspiracy , for the purpose ofcarrying outthe
4 || conspiracy.
5 I agree that the elements of 2 U.S.C. 1606 ( b ) are as follows: ( 1) the defendant made a lobbying
6 contactorwasemployed or retained to make a lobbying contact; ( ) the defendantwasactingasa
7 lobbyist, that is the defendantwasemployed or retainedby a client for servicesthat include more than
8 one lobbying contact and engaged in lobbying activities for at least 20 percentof the time spentworking
9 for the client over a three-month period; and ( 3) the defendant knowingly and corruptly failed to register
10 with the Secretary of the Senate and the Clerk of the House ofRepresentatives within 45 days of a
11 lobbying contact,orbeing employed or retained to make a lobbying contact.
12 I agree that the maximum penalties are as follows:
13 a . Maximum prison term 5 years
14 b Maximum fine $ 250,000
15 Maximum supervisedreleaseterm 3 years
16 d Restitution As determined by the Court
17 e . Mandatory specialassessment $ 100 per felony count
18 I understand that I am pleading guilty tomultiple violations and that the Courtmay order thatmy
19 sentence for each violation run consecutively.
20 2 . I agreethatI am guilty of the offensesto which I am pleading guilty , and I agree that the
21|| following facts are true:
22 In approximately June 2017, I began consulting for NAC Foundation and its CEO Marcus
23 Andrade. I wasengaged to work on aspectsof public relations andmarketing of the NAC Foundation's
24 new cryptocurrency project , AML Bitcoin . I understood from Marcus Andrade and others associated
25 the project thatthe AML Bitcoin cryptocurrency was in development, and thatthe projectwas
26 raising money through the salesof AML Bitcoin tokens thatwould later be exchanged for the completed
27 coin once launched.
28 Beginning in August 2017 , as part ofmy public relations role with AML Bitcoin , I recruited and
PLEA AGREEMENT 2
1| paid writers to disseminate articles relating to AML Bitcoin, and these articleswere published as op-ed
2 ||pieces on various newsand financial websites. I also assisted with the drafting of press releases for the
3 ||NAC Foundation andMarcus Andrade. I relied on information I obtained from MarcusAndradeand
4 othersassociated with AML Bitcoin for the contentcontained in the op-eds and press releases. I
5 understoodthe purpose of the articles was to promote AML Bitcoin, andto increase public awareness
6 ||and perception of the AML Bitcoin, in advance of the first public sales of the AML Bitcoin tokens set to
7 ||begin in about October2017. After the period that the NAC Foundation andMarcus Andradereferred to
8 as the “ initialcoin offering,” which was from October2017 to February 2018, I continued to work with
9 ||Marcus Andrade and the NAC Foundation.
10 Duringmy involvement with AML Bitcoin and Marcus Andrade I becameaware that certain
11| information from Marcus Andrade and others about the development and financial condition of the NAC
12 Foundation and the AML Bitcoin project was not accurate . For example , I became aware thatMarcus
13 Andrade had inappropriately taken approximately $ 1 million from the project , which was hindering its
14 development , and that certain foreign governments and public agencies were notas close to adopting
15 || Bitcoin as Marcus Andrade and others told me and stated publicly . Despite this knowledge , I
16 continued to help draft and disseminate press releases and promote AML Bitcoin. I also directly
17 solicited individuals to purchase tokensknowing the AML Bitcoin projectwasshort of funds for
18 ||operations.
19 I agree that no later than January 2018 , I enteredan understanding with MarcusAndrade and20 ,and as part of that understanding I drafted and helped disseminate information regarding AML
21 , including falsely stating that NBC and the NFL rejected AML Bitcoin’s Super Bowl
22 ||advertisementwhen neitherentity had finally rejectedthe advertisement. I understand that this false and
23 | misleading statement wasmade as part of a conspiracy , a purpose of which was to raise funds through
24 the sale of AML Bitcoin tokens through false and misleading statements to the public and prospective
25 purchasers of AML Bitcoin tokens. I acknowledge that in connection with and in furtherance of the
26 conspiracy, purchasersused interstatewires to transfer funds to the NAC Foundation andMarcus
27 ||Andrade.
28 In June 2017, I was introduced to a person that I later learned was an undercoveragentwith the
PLEA AGREEMENT 3
1 | . I agreedto be retainedby that person for services that would involve having atleast one potential
2 ||communication with a memberof the U.S.Congressrelated to the formulation and adoption of a
3 specific piece of possible federal legislation. During later conversations with that member of the U.S.
4 ||Congress unrelated to lobbying, I discussed topics that constituted lobbying as defined by the Lobbying
5 Disclosure Act. Because I believed my involvement in a project can have a negative impact on my client
6 and the project, I did not want to registeras a lobbyist and took affirmative stepsnot to do so . I was
7 aware of the registration requirements of the Lobbying Disclosure Act,and I did not register with the
8 || Secretaryof the Senate and the Clerk of the House of Representativeswithin 45 days of beingretained
9 tomake a lobbying contactby the undercoveragent.
10 3 . I agree to give up all rights that I would have if I chose to proceed to trial including the
11 to a jury trialwith the assistance of an attorney; to confrontand cross-examine government
12 ||witnesses; to remain silent or testify ; to move to suppress evidence or raise any other Fourth or Fifth
13 Amendmentclaims; to any furtherdiscovery from the government; and to pursue any affirmative
14 ||defenses and presentevidence. I also agree to waive venue, if necessary, for the chargesfiled in this
15 case .
16 4 . I agree to give up my right to appealmy conviction , including constitutional challenges
17 statutesof conviction. I agreeto give up my right to appealthe judgment and all orders of the
18 Court. I also agree to give upmy right to appeal any aspectofmy sentence, including any orders relating
19 restitution, reservingonly myright to claim thatmy sentence violated this plea agreement, applicable
20 , or the Constitution. I reservemyright to claim thatmy counselwas ineffective. I understandthat
21 | waiver includes, but is not limited to , any and all constitutionalor legalchallenges to myconvictions
22 Jand guilty pleas, including arguments that the statutes to which I am pleading guilty are unconstitutional,
23 and all claims that the statement of facts provided herein is insufficient to support mypleas of
24 guilty
25 5 I agreenot to file any collateral attack on my conviction or sentence, including a petition
26 U.S.C. 2255 or 28 U.S.C. 2241, except that I reserve my right to claim thatmy counsel was
27 ineffective.
28 6 . I agree not to ask the Court to withdraw my guilty pleas atany time after they are
PLEA AGREEMENT 4
1 entered. In the event I violate any of the termsof the Agreement, I agree that the facts set forth in
2 ||Paragraph 2 of this Agreement and, if applicable , the fact that I made a sworn admission to them in a
3 previous court proceeding, shall be admissible against me in any subsequent proceeding, including at
4 trial. In any subsequentproceeding conducted after I violate any of the termsof the Agreement, I
5 ||expressly waive any and all rights under Fed. R.Crim . P.11(f) and Fed. R.Evid. 410 with regard to the
6 set forth in Paragraph 2 of the Agreementand, if applicable, the fact that I made a sworn admission
7 to them at a previous court proceeding.
8 7 . I understand that the Courtmust consult the United States SentencingGuidelines and
9 || them into accountwhen sentencing, together with the factors set forth in 18 U.S.C. 3553(a ). I also
10 agree thatthe sentencing rangewill becalculated by the Court. I may join a governmentmotion for a
11||downward departure pursuantto U.S.S.G. 5K1.1, and I reservemy right to argue for a variance from
12 | theGuidelines rangedetermined by the Court based on 18 U.S.C. 3553(a ) factors. I understand that
13 regardlessof the sentencethat the Court imposeson me, I will not be entitled, nor will I ask , to
14 ||withdraw my guilty plea
15 8 . The partieshaveagreedto, and jointly recommendthat the Court adopt, the following
16 aspects of the application of the Guidelines in this case , prior to anymotion brought by the government
17 | under USSG 5K1.1 The appropriate analog sentencing guideline for a violation of 2 U.S.C. (b)
18 | USSG 2M4.1, a base offense level of6.The appropriate measureof any offense level
19 ||adjustment under USSG 2B1.1 b) (1) in this case is the pecuniary gain of the defendantas a result of
20 offense conduct described above, and the amount of pecuniary gain is between $ 150,000 and
21 250,000 under USSG b ) ( 1) ( F ). The offense conduct involved more than 10 victims under
22 | USSG 2B1.1 b) 2). A one-category downward departure regarding the defendant's Criminal History
23 Category is appropriate in order not to overstate the seriousness of his criminal history , to nomore than
24 CHC II. The parties have reached no agreement regarding any other aspects of the application of the
25 ||Guidelines, and reservethe right to recommendor oppose the application of other Guidelines factors.
26 9 . I agree thatregardless of any other provision of this Agreement, the government may and
27 will provide the Court and the Probation Officewith all information relevantto the chargedoffense and
28 the sentencing decision , including any victim impact statements and letters from the victim ( s), and/ or
PLEA AGREEMENT 5
1 ||their friends and family.
2 10 . I agree that I will make a good-faith effort to pay any fine or restitution I am ordered to
3 I agree to pay the specialassessmentat the time of sentencing.
4 I agree to pay full restitution for all losses caused by all the schemes or offenses with which I
5 wascharged in this case, and I understand that the amount of restitution will not be limited to the loss
6 attributable to the counts to which I am pleading guilty , pursuant to 18 U.S.C. a )(3). I understand
7 that the Courtwill not consider my economic circumstances in determining the restitution amount. I
8 agree to pay restitution in an amount to be setby the Court at the time of sentencing.
In light of a related pending civil action that provides for disgorgement thatcan be distributed to9
10 ||victims in this case, the government will take that disgorgement amount into consideration when making
11||its restitution recommendation to the Court and the Probation Office.
12 Any restitution payments shall be paid through the Office of the Clerk of the District Court by
13 bank or cashier's check or money ordermadepayable to the Clerk United StatesDistrict Court. ”
14 I understandthat the restitution describedabove createsa lien in favorof the United Stateson all
15 ||property and rights to property I may possess upon entry of judgment and continues for the later of 20
16 from the entry of judgment or 20 years after release from imprisonment or until the debt is paid in
17 full. I further understand the government will record a notice of the lien in any county where I reside or
18 have property . I further understand that this order of restitution cannot be discharged in bankruptcy and
19 that if I default on the payment of a fine or restitution , the Court may revoke probation or a term of
20 supervised release ,modify the terms or conditions of probation or supervised release, resentence me,
21 ||hold mein contemptof court, order the sale ofproperty, enteror adjust a payment schedule, or take any
22 || action necessary to obtain compliance.23 At leastsixty days prior to sentencing, Iagree to complete , under penalty of perjury , a financial
24 statement provided by the U.S. Attorney's Office and to update that statementwith material changes
25 within seven days of the change. I understandthat I mustidentify allassets and financial interests valued
26 atmore than $ 1,000. I further understand that these assets and financial interests include all assets and
27 financial interests in which I have an interest, direct or indirect, whether held in my own name or in the
28 nameof another, in any property, realor personal.
PLEA AGREEMENT 6
1 I agree to surrender assets I obtained asa result ofmy crimes, and release funds and property
2 | undermy control in order to pay any fine or restitution. I further agree to notify the Financial Litigation
3 United States Attorney's Office ( FLU ) before transferring any interest in property owned
4 directly or indirectly byme, including any interestheld or owned under any other nameor entity ,
5 including trusts , partnerships, and or corporations. I also agree to notify the FLU of any interest in
6 property I may obtain , directly indirectly, including any interest obtained under any other name,or
7 | entity, including a trust, partnership, or corporation, afterthe execution of this Agreement until the
8 || or restitution ispaid in full.
9 I agreethatany fine or restitution imposed by the Courtagainstmewill be due immediately and
10 subject to immediate enforcementby government as authorized by 18 U.S.C. 3613. I further
11||understand that the governmentmay seek immediate collection of the entire fine or restitution from any
12 assets without regard to any schedule of payments imposed bythe Court orestablished by the Probation
13 Office and that monetary penalties imposed by the Court will be submitted to the Treasury Offset
14 Program so that any federalpaymentor transfer of returned property I receive maybeoffsetand applied
15 to federal debts.
16 11. I agree to cooperate with the U.S.Attorney's Office before and after I am sentenced .My
17 ||cooperation will include, butwill notbe limited to , the following:
a . I will meet with the government when requested ;
19 b
20
.
21
d
22
I will respond truthfully and completely to any and all questions put to me, whether ininterviews, before a grand jury, or at any trialor other proceeding;
I will provide documents and othermaterial asked for by the government;
I will testify truthfully at any grand jury , court, or other proceeding as requestedby thegovernment;
I will surrender any and all assetsacquired or obtained directly or indirectly as a result ofmy illegal conduct;
I will requestcontinuances of mysentencing date, as necessary,untilmycooperation iscompleted;
23 e
24
f .
25
26 12 I agree thatthe government's decision whether to file a motion pursuantto U.S.S.G.
27 || 5K1.1 or 18 U.S.C. 3553(e ) , as described in the government promises section below , is based on its
28 sole and exclusive decision of whether I have provided substantial assistance and that decision will be
PLEA AGREEMENT 7
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
1
2
3
4
5
6
7
8
9
PLEA AGREEMENT 8
binding on me. I understand that the government’s decision whether to file such a motion, or the extent
of the departure recommended by any motion, will not depend on whether convictions are obtained in
any case. I also understand that the Court will not be bound by any recommendation made by the
government.
13. I agree not to commit or attempt to commit any crimes before sentence is imposed or
before I surrender to serve my sentence. I also agree not to violate the terms of my pretrial release; not to
intentionally provide false information to the Court, the Probation Office, Pretrial Services, or the
government; and not to fail to comply with any of the other promises I have made in this Agreement. I
agree that if I fail to comply with any promises I have made in this Agreement, then the government will
be released from all of its promises in this Agreement, including those set forth in the Government’s
Promises Section below, but Iwill not be released from my guilty plea[s].
14. If I am prosecuted after failing to comply with any promises I made in this Agreement,
then (a)I agree that any statements I made to any law enforcement or other government agency or in
Court, whether or not made pursuant to the cooperation provisions of this Agreement, may be used in
any way; (b) I waive any and all claims under the United States Constitution, Rule 11(f) of the Federal
Rules of Criminal Procedure, Rule 410 of the Federal Rules of Evidence, or any other federal statute or
rule, to suppress or restrict the use of my statements, or any leads derived from those statements; and (c)
I waive any defense to any prosecution that it is barred by a statute of limitations, if the limitations
period has run between the date of this Agreement and the date I am indicted.
15. I agree that this Agreement contains all of the promises and agreements between the
government and me, that this Agreement supersedes all previous agreements that I had with the
government (including any “proffer” agreement), and I will not claim otherwise in the future. No
modification of this Agreement shall be effective unless it is in writing and signed by all parties.
16. I agree that the Agreement binds the U.S. Attorney’s Office for the Northern District of
California only, and does not bind any other federal, state, or local agency.
The Government’s Promises
17. The government agrees not to file any additional charges against the defendant that could
be filed as a result of the investigation that led to the captioned Information, so long as the defendant has
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
1
2
3
4
5
6
7
8
9
PLEA AGREEMENT 9
fully disclosed such conduct to the government and otherwise complied fully with this Agreement.
18. If, in its sole and exclusive judgment, the government decides that the defendant has
cooperated fully and truthfully, provided substantial assistance to law enforcement authorities within the
meaning of U.S.S.G. § 5K1.1, and otherwise complied fully with this Agreement, it will file with the
Court a motion under § 5K1.1 and/or 18 U.S.C. § 3553 that explains the nature and extent of the
defendant’s cooperation and recommends a downward departure.
The Defendant’s Affirmations
19. I confirm that I have had adequate time to discuss this case, the evidence, and the
Agreement with my attorney and that my attorney has provided me with all the legal advice that I
requested.
20. I confirm that while I considered signing this Agreement, and at the time I signed it, I
was not under the influence of any alcohol, drug, or medicine that would impair my ability to understand
the Agreement.
21. I confirm that my decision to enter a guilty plea is made knowing the charges that have
been brought against me, any possible defense, and the benefits and possible detriments of proceeding to
trial. I also confirm that my decision to plead guilty is made voluntarily, and no one coerced or
threatened me to enter into this Agreement.
Dated:
JACKABRAMOFF
Defendant
Dated:
LLOYD FARNHAM
ANDREW F.DAWSON
Assistant United States Attorneys
DAVIDL. ANDERSON
UnitedStatesAttorney
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
1
2
3
4
5
6
7
8
9
PLEA AGREEMENT 10
22. I have fully explained to my client all the rights that a criminal defendant has and all the
terms of this Agreement. Inmy opinion, my client understands all the terms of this Agreement and all
the rights my client is giving up by pleading guilty, and, based on the information now known to me, my
client’s decision to plead guilty is knowing and voluntary.
Dated:
ABBE D.LOWELL
ERIC M. MEIRING
Attorneys for Defendant
