monserrate indictment

8/8/2019 Monserrate Indictment

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UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA

- v . -

HIRAM MONSERRATE,

Defendan t .

- - - - - x

- - - - - - - - - - - - - - - - - - - - x

COUNT ONE

SEALED INDICTMENT

10 C r.

1

(Mai l F r a u d Consp i racy )

The Grand J u r y c h a r g e s :

Th e D e f e n d a n t

1 . From i n o r a b o u t 2002 t h r o u g h i n o r a b o u t 2008,

HIRAM MONSERRATE, t h e d e f e n d a n t , was a member o f t h e New York

C i t y C o u n c i l ( the "Counc i l ll ) , r e p r e s e n t i n g t h e 2 1 s t C o u n c i l

D i s t r i c t , which i n c l u d e s v a r i o u s ne ighborhoods i n Queens , New

York . As a member o f t h e C o u n c i l , MONSERRATE's o f f i c i a l d u t i e s

i n c l u d e d v o t i n g on l e g i s l a t i o n , r e p r e s e n t i n g and a d v o c a t i n g f o r

t h e i n t e r e s t s o f h i s c o n s t i t u e n t s , and a l l o c a t i n g New York C i t y

( t h e "Ci ty l l ) funds t o n o n - p r o f i t o r g a n i z a t i o n s .

2 . A t a l l t i m e s r e l e v a n t t o t h i s I n d i c t m e n t , t h e New

York C i t y C h a r t e r ( the " C h a r t e r ll ) p r o v i d e d t h a t : "No p u b l i c

s e r v a n t s h a l l u s e o r a t t e m p t t o u s e h i s o r h e r p o s i t i o n a s a

p u b l i c s e r v a n t t o o b t a i n an y f i n a n c i a l g a i n , c o n t r a c t , l i c e n s e ,

p r i v i l e g e o r o t h e r p r i v a t e o r p e r s o n a l advan tage , d i r e c t o r

65



i n d i r e c t r f o r t h e p u b l i c s e r v a n t o r any p e r s o n o r f i rm a s s o c i a t e d

w i t h t h e p u b l i c s e r v a n t . 1I

3 . I n o r a b o u t 2005, HIRAM MONSERRATE, t h e d e f e n d a n t ,

was r e e l e c t e d t o t h e Counc i l i n an u n c o n t e s t e d g e n e r a l e l e c t i o n

f o l l o w i n g a v i c t o r y o v e r two c h a l l e n g e r s i n t h e p r i m a r y e l e c t i o n

( t h e "2005 Counc i l Campaign") .

4 . I n o r a b o u t 2 0 0 6r whi le he wa s a member o f t h e

C ~ u n c i l ,HIRAM MONSERRATE, t h e d e f e n d a n t , mounted a n u n s u c c e s s f u l

p r i m a r y e l e c t i o n campaign f o r t h e Democra t i c P a r t y ' s nomina t ion

t o ru n f o r a New York S e n a t e ( t h e "Sena te" ) s e a t a g a i n s t an

i ncumben t ( the "2006 S e n a t e Campaign") . I n o r a b o u t 2008,

MONSERRATE was e l e c t e d t o t h e S e n a t e .

Counc i l D i s c r e t i o n a r y Funding

5 . At a l l t i m e s r e l e v a n t t o t h i s I n d i c t m e n t , t h e

Counc i l a l l o c a t e d m i l l i o n s o f d o l l a r s a n n u a l l y t o n o n - p r o f i t

o r g a n i z a t i o n s . These funds , which a r e commonly known a s

" d i s c r e t i o n a r y f u n d s , " were t y p i c a l l y a l l o c a t e d by t h e C o u n c i l a s

a whole i n c o n n e c t i o n w i t h s p e c i f i c Counc i l i n i t i a t i v e s .

A d d i t i o n a l l y, each Counc i l member was a s s i g n e d a c e r t a i n amount

o f d i s c r e t i o n a r y funds , a n n u a l l y, t o be d i s t r i b u t e d t o community-

b a s e d n o n - p r o f i t o r g a n i z a t i o n s f o r s o - c a l l e d l o c a l i n i t i a t i v e s ;

t h e Counc i l member i d e n t i f i e d n o n - p r o f i t o r g a n i z a t i o n s t o which

he o r she d e s i r e d t o d i r e c t funds , a s w e l l a s t h e amount o f t h e

funds he o r she wanted e a c h n o n - p r o f i t t o r e c e i v e ; assuming t h e

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C o u n c i l , i n c l u d i n g t h e Finance D i v i s i o n o f t h e C o u n c i l , d i d n o t

o b j e c t t o p r o v i d i n g f u n d s t o a p a r t i c u l a r n o n - p r o f i t o r g a n i z a t i o n

i d e n t i f i e d by a Counc i l member, t h e n o n - p r o f i t o r g a n i z a t i o n

e n t e r e d i n t o a c o n t r a c t w i t h an i n t e r m e d i a r y, t y p i c a l l y a New

York C i t y agency, which was r e s p o n s i b l e b o t h f o r t h e a c t u a l

d i s b u r s e m e n t o f t h e d i s c r e t i o n a r y funds a s w e l l a s o v e r s i g h t o f

t h e wa y i n which t h e n o n - p r o f i t o r g a n i z a t i o n s p e n t t h e f u n d s .

The i n t e r m e d i a r y / C i t y agency t y p i c a l l y d i d n o t d i s b u r s e t h e

e n t i r e t y o f t h e d i s c r e t i o n a r y funds a t t h e b e g i n n i n g o f t h e

c o n t r a c t , b u t r a t h e r d i s b u r s e d t h e a l l o c a t e d f u n d s o v e r t h e

c o u r s e o f a f i s c a l y e a r a f t e r r e c e i v i n g e x p e n s e r e p o r t s from t h e

n o n - p r o f i t o r g a n i z a t i o n . I f t h e n o n - p r o f i t o r g a n i z a t i o n f a i l e d

t o a b i d e by t h e t e rms o f i t s c o n t r a c t , f a i l e d t o p r o v i d e adequa te

s e r v i c e s , o r o t h e r w i s e f a i l e d t o a c c o u n t p r o p e r l y f o r i t s

e x p e n d i t u r e s , t h e i n t e r m e d i a r y / C i t y agency c o u l d d e c l i n e t o

d i s b u r s e funds t o t h e n o n - p r o f i t o r g a n i z a t i o n and c o u l d even

t e r m i n a t e t h e c o n t r a c t .

6. At a l l t i m e s r e l e v a n t t o t h i s I n d i c t m e n t , t h e New

York C i t y Procuremen t P o l i c y Board Rules ( the "Procuremen t

Rules" ) a p p l i e d t o p r o c u r e m e n t s funded w i t h C o u n c i l d i s c r e t i o n a r y

f u n d s . The Procuremen t Ru les p r o v i d e d t h a t : " P u b l i c employees

r e s p o n s i b l e f o r t h e e x p e n d i t u r e o f t a x p a y e r d o l l a r s have a

r e s p o n s i b i l i t y t o e n s u r e t h a t t h e i r c o n d u c t w i l l n o t v i o l a t e t h e

p u b l i c t r u s t p l a c e d i n them. They must make c e r t a i n t h a t t h e i r

- 3 -



c o n d u c t does n o t r a i s e s u s p i c i o n o r g i v e t h e a p p e a r a n c e t h a t t h e y

a r e i n v i o l a t io n o f t h e i r p u b l i c t r u s t . " The Procuremen t Ru les

f u r t h e r p r o v i d e d t h a t : " [ P ] u b l i c employees and e l e c t e d o f f i c i a l s

h a v i n g r e s p o n s i b i l i t y f o r c o n t r a c t i n g a t a l l l e v e l s s h a l l .

r e p o r t c o r r u p t i o n and u n e t h i c a l p r a c t i c e s , w h e r e v e r and whenever

d i s c o v e r e d , t o t h e a p p r o p r i a t e o f f i c i a l , a n d / o r t a k e such o t h e r

a c t i o n a s i s w a r r a n t e d by t h e s i t u a t i o n . "

Th e La t ino I n i t i a t i v e f o r B e t t e r Resources and Empowerment, I n c .

7. At a l l t i m e s r e l e v a n t t o t h i s I n d i c t m e n t , t h e

L a t i n o I n i t i a t i v e f o r B e t t e r R e s o u r c e s and Empowerment, I n c .

("LIBREl1) was a t a x - e x e m p t n o n - p r o f i t o r g a n i z a t i o n i n c o r p o r a t e d

i n o r a b o u t J u l y 2003. LIBRE h as d e s c r i b e d i t s m i s s i o n t o

i n c l u d e , among o t h e r t h i n g s , work ing w i t h " c h u r c h e s , c i v i l r i g h t s

o r g a n i z a t i o n s , communi ty o r g a n i z a t i o n s i n o r d e r t o deve lop a

u n i f i e d workab le program t o s e c u r e t h o s e r i g h t s g u a r a n t e e d by t h e

F e d e r a l and S t a t e c o n s t i t u t i o n s , t o c o u n s e l and a s s i s t

i n d i v i d u a l s t o s e c u r e t h e i r l e g a l r i g h t s u n d e r e x i s t i n g l aws ,

[and] t o e s t a b l i s h a c l e a r i n g house o f i n f o r m a t i o n on communi ty

economic deve lopmen t . " At a l l t i m e s r e l e v a n t t o t h i s I n d i c t m e n t ,

HIRAM MONSERRATE, t h e d e f e n d a n t , p l a y e d an i m p o r t a n t r o l e i n

s e l e c t i n g LIBRE's s t a f f and t h e members o f i t s b o a r d o f

d i r e c t o r s . MONSERRATE r e c r u i t e d t h e p e r s o n who s e r v e d a s t h e

c h a i r o f LIBRE's b o a r d o f d i r e c t o r s from i n o r a b o u t 2005 t h r o u g h

i n o r a b o u t 2007. MONSERRATE a l s o r e f e r r e d t o LIBRE t h e p e r s o n

- 4 -



who se rved a s LIBRE's i n t e r i m e x e c u t i v e d i r e c t o r i n o r abou t 2005

and t h e pe r son who se rved a s LIBRE's e x e c u t i v e d i r e c t o r from i n

o r a b o u t l a t e 2005 t h rough i n o r ab o u t e a r l y 2007.

Overv i ew o f t h e F r a u d u l e n t Scheme

8 . For f i s c a l y e a r s 2006 and 2007, t h e Coun c i l , a t

t h e r e q u e s t o f HIRAM MONSERRATE, t h e de fendan t , a l l o c a t e d '

app rox ima te ly $300,000 o f d i s c r e t i o n a r y funds t o LIBRE.

MONSERRATE was t h e s o l e member o f t h e C o unc i l who r e q u e s t e d t h a t

t h e s e d i s c r e t i o n a r y funds be a l l o c a t e d t o LIBRE, and t h e v a s t

m a j o r i t y o f LIBRE's funding c o n s i s t e d o f t h e s e d i s c r e t i o n a r y

f unds . Th e Counc i l a l l o c a t e d t h e s e d i s c r e t i o n a r y funds t o LIBRE

a t MONSERRATE's r e q u e s t p u r p o r t e d l y f o r programs t h a t would

b e n e f i t t h e community. I n t r u t h and i n f a c t , a f t e r t h e Counci l

had a l l o c a t e d t h e s e d i s c r e t i o n a r y funds t o LIBRE, MONSERRATE

d i r e c t e d LIBRE t o prov ide s e r v i c e s i n s u p p o r t o f t h e 2006 S en a t e

Campaign, and LIBRE spen t ove r $100,000 i n suppor t o f t h i s

campaign. As MONSERRATE w e l l knew, i n r e q u e s t i n g t h e C o u n c i l t o

a l l o c a t e d i s c r e t i o n a r y funds t o LIBRE, he had c l a imed t h a t LIBRE

would use t h e s e funds t o prov ide s e r v i c e s t o b e n e f i t t h e

community, and L I B R E ' ~c o n t r a c t s wi th a C i t y agency d i d n o t

p rov ide t h a t LIBRE's funds would be used f o r p a r t i s a n p o l i t i c a l

a c t i v i t i e s . Moreover, as MONSERRATE w e l l knew, t h e s e p a r t i s a n

p o l i t i c a l a c t i v i t i e s were i n c o n s i s t e n t w i t h LIBRE's s t a t u s as a

t ax-exempt n o n - p r o f i t o r g a n i z a t i o n .

- 5 -



9. Between i n o r a b o u t 2005 an d i n o r abou t 2007,

HIRAM MONSERRATE, t h e d e f e n d a n t , and o t h e r s made s p e c i f i c

m a t e r i a l m i s r e p r e s e n t a t i o n s and m a t e r i a l omiss ions t o t h e C i t y

and t o t h e Counc i l so t h a t LIBRE would r e c e i v e fund ing f o r

s e r v i c e s i t p r o v i d e d i n s u p p o r t o f t h e 2006 Sena te Campaign.

Among o t h e r t h i n g s , MONSERRATE r e q u e s t e d t h e C o u n c i l t o i n c r e a s e

LIBRE's d i s c r e t i o n a r y award i n o r abou t June 2006 u n d e r a

c o n t r a c t LIBRE had a l r e a d y used t o s u p p o r t t h e 2006 S e n a t e

Campaign, and MONSERRATE f a i l e d t o d i s c l o s e t h e f a c t t h a t LIBRE

wa s u s i n g Counc i l d i s c r e t i o n a r y funds f o r p a r t i s a n p o l i t i c a l

a c t i v i t i e s , even though t h e Procuremen t Rules r e q u i r e d him t o

r e p o r t any such c o r r u p t i o n a t LIBRE. A d d i t i o n a l l y, two

i n d i v i d u a l s who s e r v e d ( a t d i f f e r e n t t imes ) a s LIBRE's e x e c u t i v e

d i r e c t o r s u b m i t t e d expense r e p o r t s t o a C i t y agency i n which t h e y

f a i l e d t o d i s c l o s e t h a t LIBRE had s p e n t t e n s o f t housands o f

d o l l a r s i n C o u n c i l d i s c r e t i o n a r y funds t o s u p p o r t MONSERRATE's

p o l i t i c a l campaign.

LIBRE's Canvass ing fo r t h e 2005 Counc i l Campaign

10 . I n 2005, when HIRAM MONSERRATE, t h e d e f e n d a n t , r a n

f o r r e e l e c t i o n t o t h e Counc i l , t h e p r i m a r y b a l l o t was c e r t i f i e d

on o r a b o u t August 8 , 2005, f o r t h e p r i m a r y e l e c t i o n t h a t t ook

p l a c e on o r abou t September 13 , 2005, i n which MONSERRATE

d e f e a t e d two c h a l l e n g e r s . Between on o r a b o u t August 6, 2005,

and on o r a b o u t September 13 , 2005, LIBRE, a t MONSERRATE's

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d i r e c t i o n l p a i d worke r s t h o u s a n d s o f d o l l a r s t o c a n v a s s r e s i d e n t s

o f t h e 2 1 s t C o u n c i l D i s t r i c t i n Queens l New York and do o t h e r

work on b e h a l f o f MONSERRATE/s r e e l e c t i o n campaign. At t h e t i me l

LIBRE d i d n o t have Counc i l d i s c r e t i o n a r y funds a v a i l a b l e t o i t .

LIBRE p a i d t h e s e campaign worke r s w i t h p r i v a t e c o n t r i b u t i o n s .

MONSERRATE had r a i s e d l a t l e a s t i n p a r t l f o r LIBRE. LIBRE s p e n t

a p p r o x i m a t e l y $5 / 000 on t h e s e c a n v a s s i n g e f f o r t s .

LIBRE's Vo t e r - R e g i s t r a t i o n E f f o r t s

1 1 . I n o r d e r t o v o t e i n t h e 2006 p r i m a r y e l e c t i o n i n

which HIRAM MONSERRATE I t h e d e f e n d a n t s o u g h t t h e Democra t i c

P a r t y / s n o m i n a t i o n t o r u n f o r a S e n a t e s e a t l i n d i v i d u a l s were

r e q u i r e d t o r e g i s t e r t o v o t e i n p e r s o n o r submi t a v o t e r

r e g i s t r a t i o n a p p l i c a t i o n by maLl by on o r a b o u t Augus t 18 1 2 006 .

1 2 . I n o r a b o u t 2006 1 LIBRE c o n d u c t e d a v o t e r

r e g i s t r a t i o n d r i v e us-ing -Council d i s c r e t i o n a r y funds a l l o c a t e d t o

i t by HIRAM MONSERRATE I t h e d e f e n d a n t . LIBRE u s e d t h e s e funds t o

p a y w o r k e r s t o go d o o r - t o - d o o r and r e g i s t e r v o t e r s f o c u s i n g l a t

MONSERRATE/s d i r e c t i o n l on t h e e l e c t o r a l d i s t r i c t i n which

MONSERRATE r a n f o r S e n a t e i n 2006. These LIBRE worker s k e p t t h e

comple ted v o t e r - r e g i s t r a t i o n a p p l i c a t i o n s and t o l d t h e

i n d i v i d u a l s t h a t LIBRE i t s e l f would submi t t h e a p p l i c a t i o n s t o

t h e New York C i t y Board o f E l e c t i o n s . MONSERRATE u s e d LIBRE/s

v o t e r - r e g i s t r a t i o n a c t i v i t i e s t o h i s p e r s o n a l p o l i t i c a l advan tage

i n t h e 2006 S e n a t e Campaign. S p e c i f i c a l l Y I MONSERRATE d i r e c t e d

- 7 -



by a w i t n e s s who a ff i rmed t h a t e ach o f t h e s i g n a t o r i e s on t h e

p e t i t i o n s igned t h e p e t i t i o n i n t h e w i t n e s s ' s p r e s e n c e .

1 4 . From i n o r abou t June 2006 th rough i n o r a b o u t

J u l y 2006, a t t h e d i r e c t i o n o f HIRAM MONSERRATE, t h e de fendan t ,

LIBRE used d i s c r e t i o n a r y funds t h e C o u n c i l had a l l o c a t e d t o i t a t

MONSERRATE's r e q u e s t t o pay workers t o g a t h e r s i g n a t u r e s of

r e g i s t e r e d v o t e r s on p e t i t i o n s d e s i g n a t i n g MONSERRATE a s a

c a n d i d a t e of t h e Democra t ic P a r t y t o run f o r S e na t e from t h e 13 th

Sena t e D i s t r i c t and t o s i g n t h o s e d e s i g n a t i n g p e t i t i o n s as

w i t n e s s e s . T h e r e a f t e r , from i n o r abo u t J u l y 2006 t h rough on o r

a b o u t September 12 , 2006, LIBRE used d i s c r e t i o n a r y funds t h e

Counc i l ha d a l l o c a t e d t o i t a t MONSERRATE's r e q u e s t t o pay

workers t o canvas s r e s i d e n t s o f t h e 13 th Sena te D i s t r i c t on

MONSERRATE's b e h a l f . LIBRE s p e n t approximate ly $30,000 on t h e s e

p e t i t i o n i n g and canvas s ing e f f o r t s .

Payments t o LIBRE Employees

15 . From i n o r a b o u t June 2006 t h roug h i n o r a b o u t

September 2006, whi l e HIRAM MONSERRATE, t h e de fendan t , was

seek ing t h e nomina t ion o f t h e Democra t ic P a r t y t o ru n f o r Sen a t e

from t h e 1 3 t h Sena t e D i s t r i c t , LIBRE employees were p a i d

t h o u sa n d s of d o l l a r s by LIBRE from d i s c r e t i o n a r y funds t h e

Counc i l h ad a l l o c a t e d t o i t a t MONSERRATE's r e q u e s t t o pe r fo r m

work on b e h a l f o f MONSERRATE's p o l i t i c a l campaign, and per formed

no s u b s t a n t i a l i ndependen t work f o r LIBRE dur ing t h i s p e r i o d o f

- 9 -



t i m e . LIBRE p a i d t h e s e employees app ro x im a te ly $48,000 f o r work

pe r f o r me d d u r ing t h e 2006 Sena t e Campaign.

S t a t u t o r y A l l e g a t i o n

1 6 . From i n o r a b o u t 2005 t h rou g h i n o r a b o u t 2007, i n

t h e S o u t he rn D i s t r i c t o f New York and e l s e w he r e , HIRAM

MONSERRATE, t h e de fendan t , t o g e t h e r wi th o t h e r s known and

unknown, u n l a w f u l l y , w i l f u l l y and knowingly would an d d i d

combine, c o n s p i r e , c o n f e d e r a t e and ag ree t o g e t h e r an d w i t h e a c h

o t h e r t o v i o l a t e T i t l e 18 , Uni t ed S t a t e s Code, S e c t i o n 1341.

17 . I t was a p a r t and an o b j e c t o f t h e c o n s p i r a c y

t h a t HIRAM MONSERRATE, t h e d e f e n d a n t , and h i s c o - c o n s p i r a t o r s ,

u n l a w f u l l y, w i l f u l l y and knowing ly, having d e v i s e d an d i n t e n d i n g

t o d e v i s e a scheme and a r t i f i c e t o d e f r a u d , and f o r o b t a i n i n g

money and p r o p e r t y by means o f f a l s e and f r a u d u l e n t p r e t e n s e s ,

r e p r e s e n t a t i o n s and p romise s , f o r t h e p u r p o s e o f execu t ing : such

scheme and a r t i f i c e and a t t e m p t i n g so t o do, would and d i d p l a c e

i n a p o s t o f f i c e and a u t h o r i z e d d e p o s i t o r y f o r m a i l m a t t e r a

m a t t e r and t h i n g t o be s e n t and d e l i v e r e d by t h e P o s t a l S e r v i c e ,

and t ook and r e c e i v e d t h e r e f r o m such m a t t e r and t h i n g , and

knowing ly c a u s e d t o be d e l i v e r e d by m a i l a c c o r d i n g t o t h e

d i r e c t i o n t h e r e o n , and a t t h e p l a c e a t which i t was d i r e c t e d t o

be d e l i v e r e d by t h e p e r s o n t o whom i t wa s a d d r e s s e d , s u c h m a t t e r

an d t h i n g , t o w i t , i n v i o l a t i o n o f T i t l e 18, Un i t e d S t a t e s Code,

S e c t i o n 1341.

- 1 0 -



t h a t LIBRE had p a i d numerous i n d i v i d u a l s f o r " s t i p e n d " work , when

t h e s e i n d i v i d u a l s h ad a c t u a l l y p a r t i c i p a t e d i n LIBRE's v o t e r

r e g i s t r a t i o n , p e t i t i o n - g a t h e r i n g , and c a n v a s s i n g a c t i v i t i e s .

( T i t l e 1 8 , U n i t e d S t a t e s Code, S e c t i o n s 1341 a nd 1349 . )

COUNT TWO

(Mail Fraud)

Th e Grand J u r y f u r t h e r c h a r g e s :

1 9 . The a l l e g a t i o n s c o n t a i n e d i n p a r a g r a p h s one

t h r o u g h 15 o f t h i s I n d i c t m e n t a r e r e p e a t e d and r e a l l e g e d a s

t hough s e t f o r t h f u l l y h e r e i n .

20. From i n o r a b o u t 2005 t h r o u g h i n o r a b o u t 2007, i n

t h e S o u t h e r n D i s t r i c t o f New York and e l s e w h e r e , HIRAM

MONSERRATE, t h e d e f e n d a n t , u n l a w f u l l y , w i l f u l l y , and knowing ly,

h a v i n g d e v i s e d and i n t e n d i n g t o d e v i s e a scheme and a r t i f i c e t o

d e f r a u d , and f o r o b t a i n i n g money and p r o p e r t y by means o f f a l s e

and f r a u d u l e n t p r e t e n s e s , r e p r e s e n t a t i o n s , and p r o m i s e s , f o r t h e

p u r p o s e o f e x e c u t i n g such scheme and a r t i f i c e and a t t e m p t i n g so

t o do, d i d p l a c e i n a p o s t o f f i c e and a u t h o r i z e d d e p o s i t o r y f o r

m a i l m a t t e r a m a t t e r and t h i n g t o b e s e n t and d e l i v e r e d by t h e

P o s t a l S e r v i c e , and t o o k and r e c e i v e d t h e r e f r o m such m a t t e r and

t h i n g , and knowing ly caused t o be d e l i v e r e d by m a i l a c c o r d i n g t o

t h e d i r e c t i o n t h e r e o n , and a t t h e p l a c e a t which i t was d i r e c t e d

t o be d e l i v e r e d by t h e p e r s o n t o whom i t was a d d r e s s e d , s u c h

- 1 2 -



m a t t e r and t h i n g , t o w i t , MONSERRATE and CC-1 c a u s e d c h e c k s t o b e

s e n t by U n i t e d S t a t e s m a i l a f t e r MONSERRATE had r e q u e s t e d t h e

C o u n c i l t o a l l o c a t e d i s c r e t i o n a r y funds t o LIBRE f o r c i v i c

e d u c a t i o n , c u l t u r a l a w a r e n e s s , and o t h e r n o n - p a r t i s a n programs ,

b u t i n s t e a d u s e d t h e funds i n c o n n e c t i o n w i t h t h e 2006 S e n a t e

Campaign.

( T i t l e 18, U n i t e d S t a t e s Code, S e c t i o n s 1341 and 2 . )

FORFEITURE ALLEGATION

21 . As t h e r e s u l t o f c o m m i t t i n g t h e o f f e n s e s c h a rg e di n Counts One an d Two o f t h i s I n d i c t m e n t , i n v i o l a t i o n o f T i t l e

1 8 , U n i t e d S t a t e s Code, S e c t i o n s 1341 and 1349, HIRAM MONSERRATE,

t h e d e f e n d a n t , s h a l l f o r f e i t t o t h e u n i t e d S t a t e s , p u r s u a n t t o

T i t l e 18 , U n i t e d S t a t e s Code, S e c t i o n 981(a) (1 ) (C) and T i t l e 28,

U n i t e d S t a t e s Code, S e c t i o n 2461, a l l p r o p e r t y, r e a l and

p e r s o n a l , t h a t c o n s t i t u t e s o r i s d e r i v e d from p r o c e e d s t r a c e a b l e

t o t h e commiss ion o f t h e o f f e n s e s a l l e g e d i n Counts One and Two.

S u b s t i t u t e A s s e t P r o v i s i o n

22. I f any o f t h e a b o v e - d e s c r i b e d f o r f e i t a b l e

p r o p e r t y, a s a r e s u l t o f any a c t o r o m i s s i o n o f t h e d e f e n d a n t :

(1 ) c a n n o t be l o c a t e d upon t h e e x e r c i s e o f due

d i l i g e n c e ;

(2) h a s been t r a n s f e r r e d o r s o l d t o , o r d e p o s i t e d w i t h ,

a t h i r d p e r s o n ;

- 1 3 -



(3 ) h a s b e e n p l a c e d beyond t h e j u r i s d i c t i o n o f t h e

C o u r t ;

(4 ) h a s b e e n s u b s t a n t i a l l y d i m i n i s h e d i n v a l u e ; o r

(5) h as b e e n commingled w i t h o t h e r p r o p e r t y which

c a n n o t be s u b d i v i d e d w i t h o u t d i f f i c u l t y ;

i t i s t h e i n t e n t o f t h e U n i t e d S t a t e s , p u r s u a n t t o 21 U . S . C .

§ 8 5 3 ( p } , t o seek f o r f e i t u r e o f any o t h e r p r o p e r t y o f s a i d

d e f e n d a n t up t o t h e v a l u e o f t h e above f o r f e i t a b l e p r o p e r t y .

( T i t l e 18 , U n i t e d S t a t e s Code, S e c t i o n 981(a) (1 ) (C),T i t l e 21, U n i t e d S t a t e s Code, S e c t i o n 853(p} i

d S t a t e s Code, S e c t i o n 2461.}

PREET BHARARA

U n i t e d S t a t e s A t t o r n e y

- 1 4 -



UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA

- v . -

HIRAM MONSERRATE,

D e f e n d a n t .

SEALED INDICTMENT

10 C r.

(1 8 U . S . C . § § 1 3 4 1 , 1 3 4 9 , & 2)

monserrate indictment

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