federal information filing and federal criminal plea agreement

8/2/2019 Federal information filing and Federal criminal plea agreement

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3:12-cr-00271-JFA Date Filed 03/29/12 Entry Number 2 , Page 1 of 3'. I

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IN THE UNITED STATES DISTRICT COURTFOR THE DISTRICT OF SOUTH CAROLINACOLUMBIA DIVISION

UNITED STATES OF AMERICAv.

RACHEL DUNCAN

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CRIM. NO. 3 : 12-27126 U.S,.C. 7206(1)18 U.S.C. 1343

INFORMATIONTHE UNITED STATES ATTORNEY CHARGES:

COUNT 11. RACHEL DUNCAN was employed by the South Carolina Hospitality Association

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(The Association) from May 2001 until February 2012, working as the Director of'i '.,', . I:

Accounting and Membership services.2. From 2006 to 2012, RACHEL DUNCAN embezzled funds from The Association and itsaffiliate organizations by writing checks to herself, which she deposited into her personal bankaccount. RACHEL DUNCAN also embezzled funds by using The Association's point of sale creditcard terminal to refund the money to her own debit card after association members paid dues or fees.In total, RACHEL DUNCAN embezzled approximately $480,944, which she used primarily foronline gambling in offshore entities.3. Additionally, RACHEL DUNCAN acquired a NetSpend prepaid Visa card. RACHELDUNCAN transferred stolen funds from her own account to her NetSpend Visa card by usingWestern Union and MoneyGram. RACHEL D u N C A N ~ ' u s e d the NetSpend card to deposit fundsinto her online gambling account, which she previously did by using her own bank account.4. RACHEL DUNCAN electronically transferred funds from her own bank account at SouthCarolina State Credit Union to various shell companies around the world which served as paymentprocessors for an Austrqlian online casino.


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3:12-cr-00271-JFA Date Filed 03/29/12 Entry Number 2 Page 2 of 3

5. For ax: years 2006 to 2011, RACHEL DUNCAN electronically filed herown federal incometax return from her computer located in South Carolina. RACHEL DUNCAN filed each tax: return

by fraudulently failing to report all ofher illegal income to the IRS, namely the funds she stole fromThe Association. Each federal tax: return was filed under. penalty ofperjury.

j .. " Ii, \ r"6. In the tax year of2010, in the District of South Carolina, RACHEL DUNCAN did willfullymake and subscribe a Tax: Return Form 1040, which was verified by a written declaration that it wasmade under the penaities ofperjury and filed with the Internal Revenue Service, which Tax: ReturnForm 1040 she did not believe to be true and correct as to every material matter in that the TaxReturn Form 1040 reported her taxable income as $41,339, whereas she then and there well knewand believed, her taxable income was substantially more than $41,339;

All in violation ofTitle 26, United States Code, Section 7206(1)

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COUNT 2THE UNITED STATES ATTORNEY FURTHER CHARGES:1. Paragraphs 1 through 5 of Count 1 are incorporated herein by r e f e r e n c e ~ ,2. On or about January 28,2011, in the DistriCt of South Carolina and, elsewhere, thedefendant, RACHEL DUNCAN, for the purpose of executing the a b o v e ~ d e s c r i b e d schemeand artifice to defraud, and to obtain money and property by means of false and fraudulentpretenses, representations and promises, did cause to be transmitted in interstate commerce,by means of a wire communication from a South Carolina State Credit-Union Account, inSouth Carolina, to .. www.icpcard.com . in Stockholm, Sweden, a company used to processinternational wire transfers, in order to buy credit at an online casino located in Australia;

In violation ofTitIe 18, United States Code, Sections 1343.

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IN THE DISTRICT cOURT'bF\TBE UNITED STATESFOR THE DISTRICT OF SOUTH CAROLINA

COLUMBIA DIVISION

UNITED STATES OF AMERICAv.

RACHEL DUNCAN

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Criminal No: 3: 12-271

PLEA AGREEMENT

General ProvisionsThis PLEA AGREEMENT is made this Z11!:: dayof- ' - i -_ -=-_- - -> 2012, between

the United States of America, as represented by United States Attorney WILLIAM N. NET'ILES,Assistant United States Attorney Winston D. Holliday, Jr.,; the Defendant, RACHEL DUNCAN,and Defendant's Attorney, Gregory P. Harris, E ~ q r e , . ' ; : ". f:. ;(';; r..

IN CONSIDERATION of the mutual prdm:lses'made herein, the parties hereto agree asfollows:1. The Defendant, RACHEL DUNCAN, agrees to waive Indictnient and arraignment, and

plead guilty to an Information charging Filing a False Tax Return, in violation of Title 26,United States CQde, 7206(1), and Wire Fraud, in violation ofTitle 18, United States Code, 1343.In order to sustain it's burden of proof as to Filing a False Tax Return, the Government is

required to prove the following:On or about April 15,2011, corresponding to the tax year 2010, in the District of South

Carolina, the Defendant(A) made, or caused to: be made, arid' : s i ~ i ~ d a tax return for the year in question

containing a written declaration;(B) that the tax return was made under the penalties of perjury;


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: ,I ;.1 :! \',' ...(C) that the defendant did not believe the return to be true and correct as to every materialmatter; and(D) that the defendant acted willfully.Possible Penalties for 26 U.S.C. 7206(1)Three years imprisonment; $100,000 fine; two years supervised release; $100 specialassessmentIn order to sustain it's burden of proof as to Wire Fraud, the Government is required to

prove the following:On or about January 28, 2011, in the District of South Carolina,ONE:

TWO:

THREE:

The defendant knowingly devised or knowingly participated in a schemeor artifice to defraud or to obtain money or property by means of false orfraudulent pretenses, r e p r ~ s e n t a t i o n s , or promises as detailed in theindictment; , ". I'In advancing, or furthering, or' carrying out this scheme to defraud or toobtain property by means of false or fraudulent pretenses, representations,or promises, the defendant used the a wire transmission in interstatecommerce or caused such a wire to be used; andThe defendant acted with intent to defraud.

Possible Penalties for 18 U.S.C. 1343Twenty years imprisonment; $250,000 fme; three years supervised release; $100 specialassessment2. The Defendant agrees to provide detailed fmancial information to the United States

Probation Office prior to sentencing. The Defendant understands and agrees that monetarypenalties [i.e., special assessments, restitution, fines and other payments required under thesentence] imposed by the Court are due:iin..tilediately and subject to enforcement by theUnited States as civil judgments, pursuant to:' 18 U.S.C. 3613. The Defendant alsounderstands that payments made in accordance with installment schedules set by the Court

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3:12-cr-00271-JFA Date Filed 03/29/12 Entry Number 5 Page 3 of 10..

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are minimum payments only and do not preclude the government from seeking to enforcethe judgment against other assets of he defendant at any time, as provided in 18 U.S.C. 3612, 3613 and 3664(m).The Defendant further agrees to enter into the Bureau of Prisons Inmate Financial

Responsibility Program if sentenced to a term of ncarceration with an unsatisfied monetary penalty.The Defendant further understands that any monetary penalty imposed is not dischargeable inbankrUptcy.

(A) Special Assessment: Pursuant to 18 U.S.C. 3013, the Defendant must pay a specialassessment of$100.00 for each felony'countfor which she is convicted. This special, : . ' i','J:. lassessment must be paid at or before t . h ~ ,time of he guilty plea hearing

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(B) Restitution: The Defendant agrees to make full restitution under 18 U.S.C. 3556in an amount to be determined by the court at the time of sentencing, which amountis not limited to the count(s) to which the Defendant pled guilty, but will includerestitution to each and every identifiable victim who may have been harmed by herschemeorpattemofcriminalactivity,pursuantto 18U.S.C. 3663. TheDefendantagrees to cooperate fully with the government in identifying all victims.

(C) Fines: The Defendant understands that the Court may impose a fine pursuant to 18U.S.C. 3571 and 3572.

3. The Defendant understands that the matter 0f sentencing is within the sole discretion of he. ' \ : ;Court and that the sentence applicable to Defendant's case will be imposed after the Courtconsiders as advisory the United States Sentencing Commission Guidelines, ApplicationNotes and Policy Statements, as well as the factors set forth in Title 18, United States Code,

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3:12-cr-00271-JFA Date Filed 03/29112: ,:Entry Number 5 Page 4 of 10

Section 3553(a). The Defendant also understands that Defendant 's sentence has not yet beendetermined by the court, and that any estimate of a probable sentencing range Defendant mayhave, received from Defendant's attorney, the Government or the United States ProbationOffice is only a prediction, not a promise, and is not binding on the Government, theProbation Office or the Court. The Defendant further understands that the Governmentretains the right to inform the Court of any relevant facts, to address the Court with respectto the nature of the offense, to respond to questions raised by the Court, to correct anyinaccuracies or inadequacies in the presentence report, to respond to any statements made to

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the Court by or on behalfof the Defendant and to summarize all evidence which would have: i I: , .been presented at trial to establish a factual basis for the plea.

4. The Defendant agrees that all facts that determine his offense level under the Guidelines andpursuant to any mandatory minimum (including facts that support any specific offensecharacteristic or other enhancement or adjustment) can be found by the court at sentencingby a preponderance of the evidence standard and the court may consider any reliableevidence, including hearsay. By executing this Agreement, the Defendant understands thathe waives any argument that facts that determine his offense level under the Guidelines andpursuant to any mandatory minimum should be alleged in an indictment and found by ajurybeyond a reasonable doubt. \',1

5. The Defendant understands that the 0 1 : H i g a ~ 6 n s of the Government within the PleaAgreement are expressly contingent upon the Defendant 's abiding by federal and state lawsand complying with the terms and conditions of any bond executed in this case.

6. In the event that the Defendant fails to comply with any of he provisions of his Agreement,

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}' , l .:! ' i fI 111 .3:12-cr-00271-JFA Date Filed 03/29/1:2'" Entry Number 5 Page 5 of 10

either expressed or implied, it is understood that the Government will have the right, at itssole election, to void all of its obligations under this Agreement and the Defendant will nothave any right to withdraw his plea of guilty to the offense(s) enumerated herein.

Cooperation and Forfeiture7. The Defendant agrees to be fully truthful and forthright with federal, state and local law

enforcement agencies by providing full, complete and truthful information about all criminalactivities about which she has knowledge. The Defendant must provide full, complete andtruthful debriefmgs about these unlawful: activities and must fully disclose and providetruthful information to the Government including any books, papers, or documents or anyother items of evidentiary value to the investigation. The Defendant must also testify fullyand truthfully before any grand juries and at any trials or other proceedings if called upon todo so by the Government, subject to prosecutionfor perjury for not testifying truthfully. Thefailure of the Defendant to be fully truthful and forthright at any stage will, at the soleelection of he Government, cause the obligations ofthe Government within this Agreementto become null and void. Further, it is expressly agreed that if the obligations of theGovernment within this Agreement become null and void due to the lack oftruthfulness onthe part of the Defendant, the Defendant undetstands that:(A) the Defendant will not be permittecltdMithdraw her plea of guilty to the offenses

described above;(B) all additional charges known to the Government may be filed in the appropriatedistrict;(C) the Government will argue for a maximum sentence for the offense to which the

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Defendant has pleaded guilty; and(D) the Government will use any and all information and testimony provided by the

Defendant in the prosecution of the Defendant of all charges.8. The Defendant agrees to submit to such polygraph examinations as may be requested by the

Government and agrees that any such examinations shall be performed by a polygraphexaminer selected by the Government. D ( ' l f e n d ~ t further agrees thafhis refusal to take orher failure to pass any such p o l y g r a p h e : i c E j n i ~ n ; a 1 ; i o n to the Government's satisfaction willresult, at the Government's sole discretion, in the obligations of he Government within theAgreement becoming null and void.

9. The Government agrees that any self-incriminating information provided by the Defendantas a result of he cooperation required by the terms of his Agreement, although available tothe Court, will not be used against the Defendant.in determining the Defendant's applicableguideline range for sentencing pursuant to theU.S. Sentencing Commission Guidelines. Theprovisions of this paragraph shall not be applied to restrict any such information:(A)' known to the Government prior to the date of this Agreement;(B) concerning the existence ofprior cdnvli'ctions and sentences;(C) in a prosecution for perjury or givmg. 'a'false statement; or(D) in the event the Defendant breaches any of the terms of the Plea Agreement.

10. Provided the Defendant cooperates pursuant to the provisions of this Plea Agreement, and

that cooperation is deemed by the Government as providing substantial assistance in theinvestigation or prosecution of another person who has committed an offense, theGovernment agrees to move the Court for a downward departure or reduction of sentence

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pursuant to United States Sentencing Guidelines 5K1.1, Title 18, United States Code, 3553(e) or Federal Rule of Criminal Procedure 35(b). The Defendant further understandsthat any such motion by the Government is not binding upon the Court, and should the Courtsentence the Defendant within the Guidelines, to the maximum penalty prescribed by law orrefuse to reduce the sentence imposed, the Defendant will have no rightto withdraw her plea.

11. The Defendant agrees to voluntarily sttrlendet;fu, and not to contest the forfeiture by, theUnited States of America of any and all assets and property, or portions thereof, owned orpurchased by the Defendant which are subject to the forfeiture pursuant to any provision oflaw and which are in the possession or control of the Defendant or Defendant's nominees.The Defendant further agrees to prevent the disbursement, relocation or encumbrance ofanysuch assets and agrees to fully assist the government in the recovery and return to the UnitedStates of any assets, or portions thereof, as described above, wherever located. TheDefendant further agrees to make a full and complete disclosure of all assets over whichDefendant exercises control and those which are held or controlled by nominees. TheDefendant further agrees to submit to apolygiiaph examination on the issue of assets if it isdeemed necessary by the Urlited States," t !! ' ': ; ~ ; \ ' \ The Defendant agrees to forfeit all interests in the properties as described above and to take

whatever steps are necessary to pass clear title to the United States. These steps include, but are notlimited to, the surrender of title and the signing ofany other documents necessary to effectuate suchtransfers. The Defendant agrees not to object to any civil forfeiture proceedings brought againstthese properties pursuant to any provision oflaw and the Defendant further understands that any suchcivil proceedings may properly be brought at any time before or after acceptance of Defendant's

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guilty plea in this matter and agrees to waive any double jeopardy claims she may have as a resultof the forfeiture of these properties as provided for by this Agreement.

Merger and Other Provisions. ::1 ', '

12. The Attorneys for the Government s t i p u l a t e , ~ d agree to the following for purposes ofcalculating the Defendant's sentence pursuant to the United States Sentencing CommissionGuidelines:(A) The government agrees not to oppose a one-level downward variance for the

defendant based upon early information she provided regarding the fraud and loss, as well as theonline gambling entities with which she dealt;

The Defendant understands that this stipulation is not binding upon the Court or the UnitedStates Probation Office, and that the Defendant has no right to withdraw her pleas should thisstipulation is not accepted. Further, the Defendant understands and acknowledges that thisstipulation is binding on the Government only .in theievent the Defendant complies with ALL theterms ofthis Agreement and does not contest the above: stipulation or any readily provable relevant!, ; 1conduct.13. The parties agree that if the Court determines the Defendant has readily demonstrated

acceptance of responsibility for her offenses, that USSG 3E1.1(a) applies, therebyproviding for a decrease of two (2) levels. In addition, if the Defendant qualifies for adecrease under 3E1.1 (a), the Government will move that she receive the one level decreaseset forth in 3E1.1 (b), and requests that this provision be considered as that request.

14. The parties hereby agree that this Plea Agreement contains the entire agreement of theparties; that this Agreement supersedes all prior promises, representations and statements of

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the parties; that this Agreement shall not be binding on any party until the Defendant tendersa plea ofguilty to the court having j u r i s ~ c t i o n over this matter; that this Agreement may bemodified only in writing :signedby a l l p i i t i ~ ~ ; and that any and all other promises,representations and statements, whether made prior to, contemporaneous with or after thisAgreement, are null and void.

. H isAttorney for the Defendant

dant

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Winston D. Holliday, Jr.,Assistant U. S. Attorney

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U. 80 DEPARTMENT OF JUSTICEStatement of Sp.ecial Ass.essment AmountThis statement reflects your special assessment only. There maybe other penalties imposed at sentencing. This SpecialAssessment is due and payable at the time of the execution of theplea agreement.

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MAKE CHECK OR MONEY ORDER PAYABLE TO:CLERK, U.S. DISTRICTCOURTPAYMENT SHOULD BE SENT TO:Clerk, U.S. District Court[Address in Columbia, Greenville, Charleston or Florence]OR HAND DELIVERED TO:Clerk's Office[Address in Columbia, Greenville, Charleston or Florence] (Mon - Fri 9-5). .INCLUDE DEFENDANT'S NAME ONCHECK OR MONEY ORDER miNot send cash)ENCLOSE THIS COUPON TO INSURE PROPER and PROMPTAPPLICATION OF PAYMENT

federal information filing and federal criminal plea agreement

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