Securities and Exchange Commission v. Bhardwaj et al

Filing 100

FINAL JUDGMENT AS TO DEFENDANT DHIRENKUMAR PATEL. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange At of 1934 (the &qu ot;Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities excha nge, in connection with the purchase or sale of any security: (a) to employ any device, scheme, or artifice to defraud; (b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading and as further set forth in this Judgment. IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u (d)(2)], Defendant is prohibited, for seven years and six months following the date of entry of this Final Judgment, from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchan ge Act [15 U.S.C. § 78l] or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)]. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $423,07 4, representing his ill-gotten gains as a result of the conduct alleged in the Complaint, together with prejudgment interest in the amount of $19,318, for a total of $442,392. The obligation to pay this amount of disgorgement and prejudgm ent interest is deemed satisfied by entry of the order of forfeiture against Defendant in the related criminal case, United States v. Patel, 22 Cr. 369 (VSB) (S.D.N.Y.) (Dkt. No. 35). IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court sh all retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. (Signed by Judge Andrew L. Carter, Jr on 9/24/24) (yv)

UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
-againstAMIT BHARDWAJ, DHIRENKUMAR
PATEL, SRINIVASA KAKKERA,
ABBAS SAEEDI, and RAMESH CHITOR,
1:22-cv-06277 (ALC)

Defendants.

[PROPOSED] FINAL JUDGMENT AS TO DEFENDANT DHIRENKUMAR PATEL
The Securities and Exchange Commission having filed a Complaint and Defendant
Dhirenkumar Patel (“Defendant”) having entered a general appearance; consented to the Court’s
jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final
Judgment; waived findings of fact and conclusions of law; and waived any right to appeal from
this Final Judgment:
I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the
Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5
promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of

1

interstate commerce, or of the mails, or of any facility of any national securities exchange, in
connection with the purchase or sale of any security:
(a)

to employ any device, scheme, or artifice to defraud;

(b)

to make any untrue statement of a material fact or to omit to state a material fact
necessary in order to make the statements made, in the light of the circumstances
under which they were made, not misleading; or

(c)

to engage in any act, practice, or course of business which operates or would
operate as a fraud or deceit upon any person.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s
officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or
participation with Defendant or with anyone described in (a).
II.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, pursuant to Section
21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)], Defendant is prohibited, for seven years
and six months following the date of entry of this Final Judgment, from acting as an officer or
director of any issuer that has a class of securities registered pursuant to Section 12 of the
Exchange Act [15 U.S.C. § 78l] or that is required to file reports pursuant to Section 15(d) of the
Exchange Act [15 U.S.C. § 78o(d)].
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is liable for disgorgement of $423,074, representing his ill-gotten gains as a result of the conduct

2

alleged in the Complaint, together with prejudgment interest in the amount of $19,318, for a total
of $442,392. The obligation to pay this amount of disgorgement and prejudgment interest is
deemed satisfied by entry of the order of forfeiture against Defendant in the related criminal
case, United States v. Patel, 22 Cr. 369 (VSB) (S.D.N.Y.) (Dkt. No. 35).
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is
incorporated herein with the same force and effect as if fully set forth herein, and that Defendant
shall comply with all of the undertakings and agreements set forth therein.
V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, for purposes of
exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, the
allegations in the complaint are true and admitted by Defendant, and further, any debt for
disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this
Final Judgment or any other judgment, order, consent order, decree or settlement agreement
entered in connection with this proceeding, is a debt for the violation by Defendant of the federal
securities laws or any regulation or order issued under such laws, as set forth in Section
523(a)(19) of the Bankruptcy Code, 11 U.S.C. § 523(a)(19).
VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.

3

VII.
There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil
Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.

September 24
Dated: ______________,
2024
____________________________________
UNITED STATES DISTRICT JUDGE
Andrew L. Carter, Jr.

4

EXHIBIT A

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2

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
------------------------------x
UNITED STATES OF AMERICA

3
v.

22 CR 369 (VSB)

4
DHIRENKUMAR PATEL
5
6

Defendant
------------------------------x

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New York, N.Y.
July 7, 2022
10:10 a.m.

8
9
Before:
10
11

HON. VERNON S. BRODERICK
District Judge

12
APPEARANCES
13
14
15
16
17
18

DAMIAN WILLIAMS
United States Attorney for the
Southern District of New York
NOAH SOLOWIEJCZYK
RICHARD A. COOPER
Assistant United States Attorney
KRIEGER KIM & LEWIN LLP
Attorneys for Defendant
VARUN GUMASTE
EDWARD KIM

19
20
21

ALSO PRESENT: JORDAN AVERY, FBI
VIOSANNY HARRISON, USPTO (SDNY)
MADELINE KAPLAN, Analyst (Krieger Kim Lewin)

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23
24
25
SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

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1

(In open court)

2

THE COURT:

If I could ask counsel to please identify

3

themselves for the record.

4

MR. SOLOWIEJCZYK:

Good morning, your Honor.

Noah

5

Solowiejczyk and Richard Cooper on behalf of the government.

6

We're joined at counsel's table by Special Agent Jordan Avery

7

of the FBI and by the pretrial officer whose name I don't know.

8

Apologies.
THE COURT:

9
10

That's okay.

Officer Harrison; is that

correct?

11

MS. HARRISON:

Yes.

12

THE COURT:

13

For the defense.

14

MR. GUMASTE:

Good morning.

Good morning.

Good morning, your Honor.

15

and Edward Kim on behalf of Mr. Patel.

16

table by one of our analysts, Madeline Kaplan.

17

THE COURT:

18

MR. GUMASTE:

19

THE COURT:

20

Varun Gumaste

We're joined at counsel

Good morning.
Good morning.

You know, let me just clarify something.

With regard to -- this is Mr. Patel's first appearance?

21

MR. SOLOWIEJCZYK:

22

THE COURT:

Yes, it is, your Honor.

All right.

Now, Mr. Patel, my name is

23

Judge Broderick, as you've heard.

The purpose of this

24

proceeding is to inform you of your rights.

25

throughout the pendency of the Rule 5 hearing and the waiver of

In fact,

SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

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indictment, arraignment and then guilty plea, there is no need

2

to stand.

3

that we can make sure we have an accurate record.

I just ask that you speak into the microphone so

4

As I mentioned, the purpose of this proceeding is to

5

inform you of certain rights that you have, inform you of the

6

charges against you, consider whether counsel should be

7

appointed and decide the conditions under which you should be

8

released.
Now, you have the right to remain silent, and you're

9
10

not required to make any statements.

11

statements already to the authorities, there is no need to make

12

any further statements.

13

you.

14

or unconditionally, pending trial unless I find there are no

15

conditions that would reasonably assure your presence in court.

Anything you say can be used against

You have the right to be released, either conditionally

Now, as I understand it, you are represented by

16
17

So even if you've made

counsel.

Is that correct?

18

THE DEFENDANT:

Yes, your Honor.

19

THE COURT:

20

that Mr. Gumaste and Mr. Kim?

21

MR. GUMASTE:

22

THE COURT:

And counsel is sitting next to you, so is

Yes, your Honor.

Now, you should understand that if you

23

could not afford an attorney, one could be obtained for you

24

free of charge to you.

25

THE DEFENDANT:

Do you understand that?
Yes, your Honor.

SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

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2

THE COURT:

Let me ask, Mr. Kim, Mr. Gumaste, are you

retained or CJA?

3

MR. GUMASTE:

We're retained, your Honor.

4

THE COURT:

5

So let me ask, have you seen a copy of the sealed

6

information containing the charges against you, Mr. Patel?

All right.

7

THE DEFENDANT:

8

THE COURT:

9

Yes, sir, your Honor.

And I take it, Mr. Kim and Mr. Gumaste,

you've both seen a copy of this sealed information?

10

MR. GUMASTE:

11

THE COURT:

12

MR. GUMASTE:

13

THE COURT:

14

Thank you.

Yes, we have, your Honor.

Have you reviewed it with your client?
Yes, we have.

Do you waive its public reading or,

Mr. Patel, would you like me to read it to you?

15

THE DEFENDANT:

16

THE COURT:

Your Honor, I waive a public reading.

Thank you.

17

a citizen of the United States?

18

THE DEFENDANT:

19

THE COURT:

Let me ask, Mr. Patel, are you

Yes, your Honor.

All right.

I think it makes sense that I

20

handle the bail issue after I do the rest of the proceedings.

21

Does that make sense to the government?

22

MR. SOLOWIEJCZYK:

23

THE COURT:

24

MR. GUMASTE:

25

THE COURT:

Yes, your Honor.

To the defense?
Yes, your Honor.

Thank you.

SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

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Mr. Patel, you've received a copy of the information.

1
2

Is that correct?

3

THE DEFENDANT:

4

THE COURT:

5

Am I correct that you waive its public

reading?

6

THE DEFENDANT:

7

THE COURT:

8

Yes, your Honor.

Yes, your Honor.

Have you had an opportunity to go over

with your attorneys the charges contained in that information?
THE DEFENDANT:

9

THE COURT:

10

Yes, your Honor.

Now, those charges include conspiracy to

11

commit securities fraud in Count One, conspiracy to commit

12

securities fraud and wire fraud in Count Two, securities fraud

13

in Count Three, and conspiracy to obstruct justice in Count

14

Four.

Is that correct?

15

THE DEFENDANT:

16

THE COURT:

17

THE DEFENDANT:

18

THE COURT:

19

As I understand it, you have a copy of the

20

information.

21

indictment form?

Yes, your Honor.

Let me ask initially, how do you plead?
Not guilty, your Honor.

All right.

Thank you.

Earlier today, did you sign a waiver of

22

THE DEFENDANT:

23

THE COURT:

Yes, your Honor.

Do you have a copy of it in front of you?

24

If not, Ms. Rodriguez, if you could show a copy of the waiver

25

of indictment form to Mr. Patel.
SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

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Let me ask, Mr. Patel, if you could look at that

1
2

document, does your signature appear at the bottom of that

3

document?

4

THE DEFENDANT:

Yes, your Honor.

5

THE COURT:

6

presence of your attorneys?

Did you sign that earlier today in the

7

THE DEFENDANT:

8

THE COURT:

9

THE DEFENDANT:

Yes, your Honor.

And did they explain it to you?
Yes, your Honor.

10

THE COURT:

Ms. Rodriguez, you can take the form back.

11

Mr. Patel, you should understand that you are under no

12

obligation to waive indictment.

13

THE DEFENDANT:

14

THE COURT:

Do you understand that?

Yes, your Honor.

And do you understand that if you were not

15

to waive indictment and the government wanted to prosecute you,

16

it would have to present your case to the grand jury, which may

17

or may not indict you.

18

THE DEFENDANT:

19

THE COURT:

Do you understand that?
Yes, your Honor.

Do you understand that by waiving

20

indictment, you're giving up your right to have this case

21

presented to a grand jury?

22

THE DEFENDANT:

23

THE COURT:

24
25

Yes, your Honor.

And do you understand what a grand jury

is?
THE DEFENDANT:

Yes, your Honor.

SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

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THE COURT:

1

Now, let me ask, does either counsel know

2

of any reason I should not find that Mr. Patel has knowingly

3

and voluntarily waived his right to be indicted by a grand

4

jury?

5

MR. SOLOWIEJCZYK:

6

THE COURT:

7

MR. GUMASTE:

8

THE COURT:

9
10
11

No, your Honor.

All right.
No, your Honor.

Okay.

Thank you.

We'll take care of

getting the waiver of indictment form signed -- excuse me -witnessed by my deputy clerk and filed.
Now, I find, Mr. Patel, that you're knowingly and

12

voluntarily waiving your right to be indicted by a grand jury,

13

so I'm going to authorize the filing of the sealed information.

14

Now, before I accept your plea, Mr. Patel, I'm going

15

to ask you certain questions so that I can establish to my

16

satisfaction that you wish to plead guilty because you are in

17

fact guilty and not for some other reason and to establish that

18

you know the rights you'll be giving up by pleading guilty.

19

If you don't understand any of my questions or if you

20

want some additional time to speak with your attorneys, just

21

let me know, and I'll either try and answer your question or

22

I'll give you as much time as you need to speak with your

23

attorneys in private.

Okay?

24

THE DEFENDANT:

25

THE COURT:

Okay, your Honor.

All right.

Ms. Rodriguez, if I could ask

SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

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1

you to please swear Mr. Patel in.

2

(Defendant sworn)

3

THE COURT:

Mr. Patel, you're now under oath, which

4

means if you answer any of my questions falsely, you may be

5

prosecuted for the separate crime of perjury.

6

understand that?

7

THE DEFENDANT:

8

THE COURT:

9

THE DEFENDANT:

10
11
12

Yes, your Honor.

Now, what is your full name?
My full name is Dhirenkumar

Jaikrishnabhai Patel.
THE COURT:

Could I ask you to spell your name for the

court reporter?

13

THE DEFENDANT:

14

H-I-R-E-N as in Nancy K-U-M-A-R.

15

J-A-I-K-R-I-S-H-N-A-B-H-A-I.

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THE COURT:

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THE DEFENDANT:

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THE COURT:

19

THE DEFENDANT:

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THE COURT:

21

Dhirenkumar, D as in David
Jaikrishnabhai,

Patel, P-A-T-E-L.
Thank you.

How old are you?

50 years old, your Honor.

How far did you go in school?
I have master's degree.

All right.

Have you ever been

hospitalized or treated for any mental illness?
THE DEFENDANT:

23

THE COURT:

25

Yes.

Great.

22

24

Do you

No, your Honor.

Are you now or have you recently been

under the care of a doctor or psychiatrist?
THE DEFENDANT:

No, your Honor.

SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

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THE COURT:

1
2

Have you ever been treated or hospitalized

for any type of addiction, including drug or alcohol addiction?

3

THE DEFENDANT:

4

THE COURT:

5

Have you taken any drugs, medicine or

pills or drunk any alcoholic beverages in the past 24 hours?

6

THE DEFENDANT:

7

THE COURT:

8

THE DEFENDANT:

9

THE COURT:

No, your Honor.

Is your mind clear today?
Yes, your Honor.

Do you understand what is happening today?

10

THE DEFENDANT:

11

THE COURT:

12

No, your Honor.

Yes, your Honor.

Now, let me ask, Mr. Gumaste, have you

discussed this matter with your client?

13

MR. GUMASTE:

14

THE COURT:

Yes, your Honor.

And does he understand the rights -- from

15

your perspective, does he understand the rights he'll be

16

waiving by pleading guilty?

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MR. GUMASTE:

18

THE COURT:

19

I believe he does.

And, similarly, from your perspective, is

he capable of understanding the nature of these proceedings?

20

MR. GUMASTE:

21

THE COURT:

Yes, your Honor.

Let me ask, does either counsel have any

22

doubt as to Mr. Patel's competence to plead guilty at this

23

time?

The government.

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MR. SOLOWIEJCZYK:

25

THE COURT:

No, your Honor.

The defense.

SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

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MR. GUMASTE:

2

THE COURT:

No, your Honor.

Now, on the basis of your responses to me,

3

Mr. Patel, here in court, my observations of you; in other

4

words, your demeanor, and the representations of counsel, I

5

find that you're fully competent to enter an informed plea of

6

guilty at this time.

7

Now, I know this is somewhat repetitive, but,

8

Mr. Patel, you've received a copy of the sealed information.

9

Is that correct?

10

THE DEFENDANT:

11

THE COURT:

12

THE DEFENDANT:

13

THE COURT:

14

Yes, your Honor.

And did you read it?
Yes, your Honor.

And I take it you waive its public reading

in connection with your guilty plea?

15

THE DEFENDANT:

16

THE COURT:

Yes, your Honor.

Now, have you had enough of a chance to

17

discuss with your attorneys the charges to which you intend to

18

plead guilty and any possible defenses to those charges?

19

THE DEFENDANT:

20

THE COURT:

21

Now, have your attorneys explained to you

the consequences of entering a guilty plea?

22

THE DEFENDANT:

23

THE COURT:

24
25

Yes, your Honor.

Yes, your Honor.

And are you satisfied with your attorneys'

representations?
THE DEFENDANT:

Yes, your Honor.

SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

11
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THE COURT:

1

Now, I'm going to explain to you certain

2

constitutional rights that you have.

3

are going to be giving up by pleading guilty.

4

mentioned earlier, listen carefully to what I'm about to say

5

and the questions I'm about to ask; and, again, if you don't

6

understand something, just stop me, and I'll try and explain it

7

to you more fully or I'll give you the time to speak with your

8

attorneys that you need.
THE DEFENDANT:

9

THE COURT:

10

These are rights that you
So, as I

Okay?
Okay, your Honor.

All right.

Now, under the Constitution

11

and laws of the United States, you have the right to plead not

12

guilty to the charges in the information.

13

that?

14

THE DEFENDANT:

15

THE COURT:

Do you understand

Yes, your Honor.

And if you were to plead not guilty, you'd

16

be entitled to a speedy and public trial by a jury on the

17

charges contained in the information.

18

THE DEFENDANT:

19

THE COURT:

Do you understand that?

Yes, your Honor.

Now, at a trial, you'd be presumed

20

innocent, and the government would be required to prove you

21

guilty by competent evidence beyond a reasonable doubt before

22

you could be found guilty.

23

THE DEFENDANT:

24

THE COURT:

25

Do you understand that?

Yes, your Honor.

A jury of 12 people would have to agree

unanimously that you were guilty, and you would not have to
SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

12
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1

prove that you were innocent if you were to go to trial.

2

you understand that?

3

THE DEFENDANT:

4

THE COURT:

Do

Yes, your Honor.

At a trial and at every stage of your

5

case, you're entitled to have an attorney.

6

unable to afford an attorney, one would be appointed to

7

represent you at public expense; in other words, free of cost

8

to you to represent you.
THE DEFENDANT:

9

THE COURT:

10

And if you were

Do you understand that?
Yes, your Honor.

Now, during a trial, the witnesses for the

11

government would have to come to court and testify in your

12

presence.

13

witnesses for the government, object to evidence offered by the

14

government, and offer evidence in your own behalf if you so

15

desired.

16

process issued to compel witnesses to come testify in your

17

defense.

Mr. Gumaste and Mr. Kim could cross-examine the

You'd also have the right to have subpoenas or other

Do you understand that?

18

THE DEFENDANT:

19

THE COURT:

Yes, your Honor.

Now, at a trial, although you'd have the

20

right to testify if you chose to, you would also have the right

21

not to testify.

22

including the jury, could draw any inference of guilt from the

23

fact you did not testify.

And if you decided not to testify, no one,

24

THE DEFENDANT:

25

THE COURT:

Do you understand that?

Yes, your Honor.

Have you had a full opportunity to discuss

SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

13
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1

with your attorneys whether there's a basis to seek suppression

2

of some or all of the evidence against you on the grounds that

3

your constitutional rights were violated?

4

keep all the evidence out against you, do you understand by

5

pleading guilty you're giving up that right?

6

that?

7

THE DEFENDANT:

8

THE COURT:

9

Do you understand

Yes, your Honor.

So have you had an opportunity to talk

with your attorneys about those rights?

10

THE DEFENDANT:

11

THE COURT:

12

In other words, to

Yes, your Honor.

Now, if you were convicted at trial, you'd

have a right to appeal that verdict.

13

THE DEFENDANT:

14

THE COURT:

Do you understand that?

Yes, your Honor.

So even now as you're entering your guilty

15

plea, you have a right to change your mind and to go to trial

16

on the charges in the sealed information.

17

that?

18

THE DEFENDANT:

19

THE COURT:

Do you understand

Yes, your Honor.

Now, if you plead guilty and I accept your

20

plea, you're going to be giving up your right to trial and the

21

other rights I've just discussed, other than the right to a

22

lawyer which you have regardless -- excuse me -- regardless to

23

whether or not you plead guilty.

24

and I will enter a judgment of guilty and sentence on the basis

25

of your plea after I've considered a presentence report and

But there will be no trial,

SOUTHERN DISTRICT REPORTERS, P.C.
[phone]

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whatever submissions I get from your attorneys and from the

2

government.

3

the government could use the evidence that it has against you

4

or with respect to whether you did or did not commit these

5

crimes.

There will be no appeal with respect to whether

Do you understand that?

6

THE DEFENDANT:

7

THE COURT:

Yes, your Honor.

Now, if you plead guilty, you'll also have

8

to give up your right not to incriminate yourself because in a

9

moment I'm going to ask you questions about what it is that you

10

did that makes you believe that you're guilty of the charges

11

contained in the information.

12

THE DEFENDANT:

13

THE COURT:

14

I've just discussed with you?

Yes, your Honor.

Do you understand each of the rights that

15

THE DEFENDANT:

16

THE COURT:

17

Do you understand that?

Yes, your Honor.

And are you willing to give up your right

to trial and the other rights that I've just discussed?

18

THE DEFENDANT:

19

THE COURT:

Yes, your Honor.

Now, do you understand that you're charged

20

with conspiracy to commit securities fraud, conspiracy to

21

commit securities fraud and wire fraud, securities fraud, and

22

finally conspiracy to obstruct justice.

23

you're charged with that?

24

THE DEFENDANT:

25

THE COURT:

Do you understand that

Yes, your Honor.

If I could ask the government to please

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state the elements of each of the offenses in question.

2

MR. SOLOWIEJCZYK:

Yes, your Honor.

3

With respect to Count One, which is conspiracy to

4

commit Title 15 securities fraud, the government would have to

5

prove the following elements beyond a reasonable doubt:

6

First, that the charged conspiracy existed.

7

Second, that the defendant intentionally joined and

8

participated in the conspiracy during the applicable time

9

period.
And, third, that at least one of the co-conspirators

10
11

committed an overt act in furtherance of the conspiracy.

12

The object of the conspiracy charged in Count One is

13

securities fraud in violation of Title 15, United States Code

14

Section 78j(b) and 78ff, Title 17 Code of Federal Regulations

15

Sections 240.10b-5, and that offense has the following

16

elements:
First, that in connection with the purchase or sale of

17
18

securities, in this instance securities of Coherent, the

19

defendant employed a device, scheme, or artifice to defraud or

20

engage in an act, practice, or course of business that

21

operated, or would operate, as fraud or deceit upon a purchaser

22

or seller of the specified security.
Second, that when he engaged in this scheme, the

23
24

defendant acted knowingly, willfully, and with an intent to

25

defraud.
SOUTHERN DISTRICT REPORTERS, P.C.
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And, third, that in furtherance of the scheme, there

1
2

occurred at least one use of any means or instrument of

3

transportation or communication in interstate commerce or the

4

use of the mails or the use of any facility of any national

5

securities exchange.

6

That's Count One, your Honor.

7

With respect to Count Two, Count Two charges a

8

conspiracy in violation of Title 18 united States Code, Section

9

1349 with two objects:

10

second object being wire fraud.
With respect to Count Two, the government would have

11
12

One object being securities fraud;

to prove the following elements beyond a reasonable doubt:

13

First that the charged conspiracy existed.

14

And, second, that the defendant intentionally joined

15

and participated in the conspiracy during the applicable time

16

period.

17

As I mentioned, the conspiracy has two objects.

With

18

respect to the first object, Title 18 United States Code,

19

Section 1348 securities fraud, that offense has the following

20

elements:

21

First, that the defendant executed a scheme to defraud

22

a person or to obtain money or property by materially false and

23

fraudulent pretenses, representations or promises.

24
25

And, second, that the defendant participated in the
scheme knowingly, willfully, and with an intent to defraud.
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And, third, that the scheme to defraud was connected

1
2

to the purchase or sale of stock in a company whose securities

3

were registered under Section 12 of the Securities Exchange Act

4

of 1934 or is otherwise required to file reports under that

5

act.
The second object of the conspiracy is wire fraud in

6
7

violation of Title 18 United States Code, Section 1343.

8

offense has the following elements:

That

First, that there was a scheme or artifice to defraud

9
10

or to obtain money or property by materially false and

11

fraudulent pretenses, representations or promises.
Second, that the defendant knowingly and willfully

12
13

participated in the scheme or artifice to defraud with

14

knowledge of its fraudulent nature and with specific intent to

15

defraud.
And, third, that in the execution of that scheme, the

16
17

defendant used or caused the use of interstate or international

18

wires.

19

The third count in the information charges securities

20

fraud in violation of Title 15 United States Code, Section

21

78j(b) and 78ff, 17 CFR 240.10b-5; and to satisfy its burden,

22

the government would have to prove beyond a reasonable doubt

23

the elements I previously described as to securities fraud, the

24

object of the conspiracy charged in Count One.

25

going to go over those again, your Honor.

So I'm not

SOUTHERN DISTRICT REPORTERS, P.C.
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THE COURT:

Okay.

2

MR. SOLOWIEJCZYK:

And then, finally, with respect to

3

Count Four, the government would have to prove conspiracy in

4

violation of Title 18 United States Code, Section 371, and we'd

5

have to prove the following elements beyond a reasonable doubt:

6

First, that the charged conspiracy existed.

7

Second, that the defendant intentionally joined and

8

participated in the conspiracy during the applicable time

9

period.

10
11
12

And, third, that at least one of the co-conspirators
committed an overt act in furtherance of said conspiracy.
The object of that conspiracy, your Honor, is

13

obstruction of justice in violation of Title 18 United States

14

Code, Section 1503, and that offense has the following

15

elements:

16

First, that on or about the dates set forth in the

17

indictment -- I'm sorry -- in the information, your Honor,

18

there was a proceeding pending before a federal grand jury.

19

Second, that the defendant knew of the proceeding.

20

And, third, that the defendant corruptly acted to

21

obstruct or impede or endeavor to obstruct or impede those

22

proceedings.

23

And then, finally, your Honor, the government would

24

have to prove venue in the Southern District of New York by a

25

preponderance of the evidence as to all four counts.
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1
2

THE COURT:

Okay.

Now, Mr. Patel, did you hear what

the prosecutor just said?

3

THE DEFENDANT:

4

THE COURT:

Yes, your Honor.

Do you understand that if you were to go

5

to trial, the government would have to prove each of the

6

elements of the offenses that the prosecutor just mentioned

7

beyond a reasonable doubt with the exception of venue.

8

understand that?

9
10

THE DEFENDANT:
THE COURT:

Do you

Yes, your Honor.

All right.

Now, Mr. Patel, I'm going to

11

tell you what the possible maximum penalties are that could be

12

imposed for these crimes.

13

what you will necessarily receive, but you have to understand

14

that by pleading guilty, you're subjecting yourself to the

15

possibility of punishments up to the maximum I'm about to

16

describe.

Now, that doesn't mean that that is

Okay?

17

THE DEFENDANT:

18

THE COURT:

Okay, your Honor.

First, with regard to restrictions on your

19

liberty, the maximum term of imprisonment for the crime charged

20

in Count One of the information is five years' imprisonment,

21

and you face a maximum of three years of supervised release.

22

With regard to Count Two of the information, you face

23

a maximum term of imprisonment of 20 years' imprisonment, and

24

you face a maximum term of supervised release on that charge of

25

three years.
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With regard to Count Three of the information, you

1
2

face a maximum term of imprisonment on that count also of 20

3

years' imprisonment and a maximum term of supervised release of

4

three years.

5

With regard to Count Four of the information, you face

6

a maximum term of imprisonment of five years and a maximum term

7

of supervised release of three years.
Now, you've heard me mention supervised release a few

8
9

times.

What that means is you'll be subject to the supervision

10

of the probation department.

11

supervised release that you'll have to follow, and if you

12

violate those rules, you could be returned to prison, without a

13

jury trial, to serve additional time with no credit for the

14

time you served in prison as a result of your offense and no

15

credit for the time you spent on post release supervision.

16

you understand that?

17

THE DEFENDANT:

18

THE COURT:

There are going to be rules of

Do

Yes, your Honor.

You should also understand that there's no

19

parole in the federal system, and that if you're sentenced to a

20

term of imprisonment, you won't be released early on parole.

21

Now, there is an opportunity for you to earn credit

22

for good behavior, but you'll have to serve at least 85 percent

23

of the time to which you're sentenced.

24

THE DEFENDANT:

25

THE COURT:

Do you understand that?

Yes, your Honor.

Now, sir, do you understand that the

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maximum term of incarceration for the four counts to which you

2

intend to plead guilty in the information is 50 years?

3

understand that?

4

THE DEFENDANT:

5

THE COURT:

Do you

Yes, your Honor.

Now, second, in addition to restrictions

6

on your liberty, there's certain maximum financial penalties

7

that you face.
Now, with regard to Counts One, Two and Four, you face

8
9

the possible maximum financial penalty of $250,000, or twice

10

the gross gain derived from the offense or twice the gross loss

11

to persons other than yourself.

12

Now, with regard to Count Three, the maximum fine is

13

$5 million, or twice the gross gain derived from the offense,

14

or twice the gross loss to persons other than yourself.

15

Now, do you understand that?

16

THE DEFENDANT:

17

THE COURT:

Yes, your Honor.

I'm also required to order restitution,

18

which I understand as part of your plea agreement, you've

19

agreed to restitution.

20

THE DEFENDANT:

21

THE COURT:

Is that correct?
Yes, your Honor.

Now, I can also order that you forfeit

22

property derived from the offense or used to facilitate the

23

offense.

24

you agree to admit to the forfeiture allegation as it relates

25

to Counts One through Four of the information.

And I notice, again, as part of your plea agreement,

Is that

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1

correct?

2

THE DEFENDANT:

3

THE COURT:

Yes, your Honor.

Now, finally, you must also pay a

4

mandatory special assessment of $100 on each count, for a total

5

of $400, and that special assessment would be due at

6

sentencing.

Do you understand that?

7

THE DEFENDANT:

8

THE COURT:

Yes, your Honor.

So do you understand that these are the

9

maximum penalties that you face?

10

THE DEFENDANT:

11

THE COURT:

Yes, your Honor.

And, Mr. Patel, I know I asked you this

12

earlier, but I need to ask you again, you are a United States

13

citizen.

Is that correct?

14

THE DEFENDANT:

15

THE COURT:

Yes, your Honor.

Now, do you understand that you will not

16

have a right to withdraw your guilty plea based upon any actual

17

perceived immigration consequence.

18

THE DEFENDANT:

19

THE COURT:

Do you understand that?

Yes, your Honor.

Do you understand that as a result of your

20

guilty plea, you may lose certain valuable civil rights that

21

you have, to the extent you have them or could otherwise obtain

22

them, such as the right to vote, the right to hold public

23

office, the right to serve on a jury and the right to possess

24

any kind of firearm.

25

Do you understand that?

THE DEFENDANT:

Yes, your Honor.

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THE COURT:

1

Now, let me ask, Mr. Patel, are you

2

currently serving any other sentence, whether state or federal,

3

or are you being prosecuted by the state for any crime?

4

THE DEFENDANT:

5

THE COURT:

No, your Honor.

But my understanding is that there is a

6

parallel, is it an investigation by the Securities and Exchange

7

Commission.

Is that correct?

8

THE DEFENDANT:

9

THE COURT:

Yes, your Honor.

Mr. Patel, are you currently on parole?

10

THE DEFENDANT:

11

THE COURT:

No, your Honor.

All right.

Now, do you understand that if

12

anybody has attempted to predict for you, whether it's your

13

attorneys or the government's attorney, what your sentence will

14

be, that their prediction could be wrong.

15

that?

16

THE DEFENDANT:

17

THE COURT:

Do you understand

Yes, your Honor.

Now, no one -- not your lawyer, not the

18

government's lawyers, no one -- can give you any assurance

19

concerning what your sentence will be because I'm going to

20

wait, as I mentioned, until I receive a report from the

21

probation department, your presentence report.

22

Once I receive that, I'm going to do my own

23

independent calculation of the guidelines range that applies in

24

your case, consider that range and any possible departures from

25

it, consider any submissions I get from your attorneys and from
SOUTHERN DISTRICT REPORTERS, P.C.
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1

the government's attorneys, and also ultimately to determine

2

what a reasonable sentence is for you based only the sentencing

3

factors contained in United States Code, Section 3553(a).

4

you understand that?

5

THE DEFENDANT:

6

THE COURT:

7

Do

Yes, your Honor.

Have you discussed these issues with your

attorneys?

8

THE DEFENDANT:

9

THE COURT:

Yes, your Honor.

So what that means is even if your

10

sentence is different from what you think it should be or your

11

attorneys have told you or the government's attorneys have

12

said, you're still going to be bound by your guilty plea, and I

13

won't allow you to withdraw your guilty plea.

14

understand that?

15

THE DEFENDANT:

16

THE COURT:

Do you

Yes, your Honor.

Now, I do have a copy of a plea agreement

17

which is dated July 6 of this year, 2022, to your attorneys.

18

Do you have a copy of that in front of you?

19

THE DEFENDANT:

20

THE COURT:

Yes, your Honor.

And is that an originally signed copy?

21

other words, if you could turn to the last page, does your

22

signature appear on that page?

23

THE DEFENDANT:

24

THE COURT:

25

presence of your attorneys?

In

Yes, your Honor.

And did you sign that earlier today in the

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THE DEFENDANT:

2

THE COURT:

3

THE DEFENDANT:

4

THE COURT:

5

And did you read it before you signed it?
Yes, your Honor.

And did you discuss it with your attorneys

before you signed it?

6

THE DEFENDANT:

7

THE COURT:

8

Yes, your Honor.

Yes, your Honor.

So did you fully understand it before you

signed it?
THE DEFENDANT:

9

THE COURT:

10

Yes, your Honor.

Now, you should understand that that

11

agreement is binding on yourself, it's binding on your

12

attorneys, and it's binding on the government's attorneys and

13

the government, but it's not binding on me.
So, as I mentioned, I have my own obligation to

14
15

determine what the correct guideline range is in your case and

16

ultimately to determine what an appropriate sentence is for

17

you.

18

document letter, dated July 6, 2022, that that is not binding

19

on me?

Do you understand that, that your plea agreement, this

20

THE DEFENDANT:

21

THE COURT:

Yes, your Honor.

Do you understand also as part of your

22

plea agreement -- let me ask the government, I apologize,

23

because I wasn't -- hold on one second.

24

(Pause)

25

THE COURT:

Let me ask, do you understand that you've

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1

agreed that in addition to the charges contained in the

2

information, that you are also agreeing that your false

3

statements to special agents of the Federal Bureau of

4

Investigation in or about March 2022, that that counts as

5

relevant conduct in connection with the crimes to which you're

6

pleading guilty?

Do you understand that?

7

THE DEFENDANT:

8

THE COURT:

9

Yes, your Honor.

Do you understand that your plea agreement

is a particular type of plea agreement; in other words, that

10

you've agreed to cooperate with the government and any agencies

11

that they direct that you cooperate with.

12

that?

13

THE DEFENDANT:

14

THE COURT:

Do you understand

Yes, your Honor.

That includes meeting with them, providing

15

them with documents, answering all of their questions, and

16

answering any questions of the authorities that they ask you to

17

answer.

Do you understand that?

18

THE DEFENDANT:

19

THE COURT:

20

Yes, your Honor.

Have you discussed the cooperation and the

requirements of cooperation with your attorneys?

21

THE DEFENDANT:

22

THE COURT:

Yes, your Honor, I have, your Honor.

Okay.

Now, do you understand, in

23

particular, that if you comply with all of the terms of the

24

agreement, that letter dated July 6, including providing

25

substantial assistance to the government, that the government
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1

will make a motion on your behalf pursuant to 5K1.1 of the

2

Sentencing Guidelines and Section 3553(e) of Title 18

3

requesting that I sentence you in light of the factors

4

contained in Section 5K1.1 of the Sentencing Guidelines.

5

you understand that that's part of your agreement?

6

THE DEFENDANT:

7

THE COURT:

Do

Yes, your Honor.

However, do you understand if the

8

government determines in its sole discretion that you've not

9

complied with the terms of your agreement, that it is then

10

relieved of the requirement to make a motion on your behalf,

11

but if they don't make that motion, you're still bound by your

12

guilty plea.

Do you understand that?

13

THE DEFENDANT:

14

THE COURT:

Yes, your Honor.

Now, do you understand that if the

15

government does not file a motion, that I cannot then make a

16

determination that you provided substantial assistance.

17

understand that?

18

THE DEFENDANT:

19

THE COURT:

Do you

Yes, your Honor.

Do you understand that even if that motion

20

is filed, that the sentence to be imposed remains in my sole

21

discretion.

Do you understand that?

22

THE DEFENDANT:

23

THE COURT:

24
25

Yes, your Honor.

So that means that I'm going to determine

your sentence and not somebody else.
THE DEFENDANT:

Do you understand that?

Yes, your Honor.

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THE COURT:

1

Now, does the plea agreement, the letter

2

dated July 6 of 2022, constitute your complete and total

3

understanding of your agreement between yourself and the

4

government?

5

THE DEFENDANT:

6

THE COURT:

7

THE DEFENDANT:

8

THE COURT:

9

Yes, your Honor.

Has anything been left out?
No, your Honor.

Now, other than what's written in the

agreement, has anyone made you any promise or offered you

10

anything of value, any inducement, in order to plead guilty or

11

sign the agreement?

12

THE DEFENDANT:

13

THE COURT:

14

Has anyone threatened you or forced you to

plead guilty or sign the agreement?

15

THE DEFENDANT:

16

THE COURT:

17

No, your Honor.

No, your Honor.

Has anyone promised you what your sentence

will be?

18

THE DEFENDANT:

19

THE COURT:

No, your Honor.

Now, Mr. Patel, I'm asking you now, after

20

going through the issues relating to your guilty plea, how do

21

you plead?

22

THE DEFENDANT:

23

THE COURT:

I plead guilty, your Honor.

Now, Mr. Patel, we've reached the point in

24

the proceeding when I'm going to ask you to tell me what it is

25

that you did with regard to the four counts to which you intend
SOUTHERN DISTRICT REPORTERS, P.C.
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1

to plead guilty.

So go ahead.

2

THE DEFENDANT:

3

THE COURT:

4

Do you have a statement there?

Yes, I have, your Honor.

Is that a statement that you have reviewed

with your lawyers?

5

THE DEFENDANT:

6

THE COURT:

Yes, I have, your Honor.

And it's a statement that basically you

7

reviewed with your lawyers, and that you agree that this

8

describes in general terms your conduct with regard to each of

9

the counts?

10

THE DEFENDANT:

11

THE COURT:

12

THE DEFENDANT:

13

THE COURT:

14

THE DEFENDANT:

15

Okay, go ahead.

Okay.

From November 2020 to

September 2021, I engaged in a scheme with Amit Bhardwaj -THE COURT:

17

THE DEFENDANT:

19

From November 2020 to September 2021--

Take your time.

16

18

Yes, your Honor.

Could you spell that for us?
Yes, your Honor.

Amit, A-M-I-T.

Bhardwaj, B-H-A-R-D-W-A-J.
-- to commit insider trading.

I knew at the time that

20

Mr. Bhardwaj was the chief information security officer of

21

Lumentum.

22

Mr. Bhardwaj and I agreed that I would trade in shares

23

of Coherent based on information Mr. Bhardwaj provided

24

regarding Lumentum's planned acquisition of Coherent, and share

25

profits of that trading with Mr. Bhardwaj.
SOUTHERN DISTRICT REPORTERS, P.C.
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I knew that this information was not public and that

1
2

Mr. Bhardwaj should not have disclosed it to me.
I did in fact make timely, profitable trades based on

3
4

this information.

I subsequently conveyed a share of the

5

profits to a third party, as Mr. Bhardwaj directed.

6

I executed these via an online trading platform.

7

On March 29, 2022, I was interviewed by FBI agents who

8

also gave me a grand jury subpoena issued by the Southern

9

District of New York in connection with an investigation into

10

the insider trading scheme.

11

After receiving the subpoena in about March 2022 to

12

April 2022, I met with Mr. Bhardwaj and others and agreed to

13

falsify records to obstruct the investigation.
We also discussed providing false information and

14
15

destroying evidence.
What I did was wrong, and I deeply regret my actions.

16
17

As I stand before you today, I have tremendous remorse and am

18

truly sorry for what I have done.
THE COURT:

19

Okay.

Thank you.

Let me ask, when you

20

say you knew it was wrong, you knew it was illegal to do

21

insider trading and to agree with other people to do insider

22

trading?

23

THE DEFENDANT:

24

THE COURT:

25

Can you repeat that, your Honor?

Sure.

Did you know it was illegal to

commit insider trading?
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1

THE DEFENDANT:

2

THE COURT:

3

Yes, your Honor.

And you knew it was illegal to agree with

other folks to commit insider trading?

4

THE DEFENDANT:

5

THE COURT:

Yes, your Honor.

And that it was illegal to take

6

information from someone who had inside information because of

7

their job and use it to trade?

8

THE DEFENDANT:

9

THE COURT:

You knew that was illegal?

Yes, your Honor.

And then after the FBI gave you the grand

10

jury subpoena, were you asked certain questions?

11

you questions when they met with you?

12

THE DEFENDANT:

13

THE COURT:

14

17
18

And did you tell them the truth or did you

THE DEFENDANT:

THE COURT:

I'm not saying about everything, but you

lied about certain things.
THE DEFENDANT:

20

THE COURT:

22
23
24
25

During the interview, I lied to the

agents.

19

21

Yes, your Honor.

lie?

15
16

Did they ask

Is that correct?

Yes, your Honor.

Let me ask, what is the government's

evidence with regard to venue?
MR. SOLOWIEJCZYK:

Sure, your Honor.

We have a

proffer on venue we're happy to provide.
So with respect to Counts One through Three, we would
prove venue, among other ways, by a preponderance of the
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evidence based on the fact that the relevant security that

2

Mr. Patel was trading in Coherent is traded on the NASDAQ, and

3

NASDAQ is headquartered in the Southern District of New York.

4

We'd also show that certain executing brokers for

5

certain of the relevant stock transactions in Coherent stock by

6

the defendant, that those brokers are based in Manhattan.

7

And we'd also show that DTCC, which I believe is

8

Depository Trust Clearing Corporation, they're based in

9

Manhattan, and they cleared many of the relevant transactions.

10

As to the obstruction conspiracy, we would prove

11

venue, among other means, by the fact that the defendant was

12

aware that he was obstructing an S.D.N.Y-based grand jury

13

investigation.

14

THE COURT:

Mr. Patel, you were aware that when you

15

were handed the subpoena, that was from the folks in the U.S.

16

Attorney's Office in the Southern District of New York, you

17

knew that?

18

THE DEFENDANT:

19

THE COURT:

Yes, sir, your Honor.

All right.

Let me ask, Mr. Gumaste and

20

Mr. Kim, do you know of any valid defense that would prevail at

21

trial or do you know of any reason I should not allow your

22

client to be permitted to plead guilty at this time?

23

MR. GUMASTE:

24

THE COURT:

25

No, your Honor.

Let me ask the government, are there any

additional questions I should ask?

Is there anything that I

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1
2

have missed?
MR. SOLOWIEJCZYK:

Your Honor, you may have covered

3

this already, so I apologize.

4

he was satisfied with his attorneys' representations.

5

have asked that and I missed it.

6

THE COURT:

I'm not sure I heard you ask if

Yes, it doesn't matter.

Let me ask,

7

Mr. Patel, are you satisfied with your attorneys'

8

representation?

9

THE DEFENDANT:

Yes, your Honor.

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THE COURT:

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MR. SOLOWIEJCZYK:

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THE COURT:

Okay.

Anything else?
No, your Honor.

If I could ask if the government could

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please summarize what the evidence would have been had

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Mr. Patel proceeded to trial.

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You may

THE DEFENDANT:

Your Honor, the evidence would have

16

consisted, among other things -- it would consist of, among

17

other things, trading records showing the timely nature of the

18

trades, phone records showing timely phone contact between

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Mr. Patel and the source of the insider information, and then,

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among other things, it would also consist of records that were

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obtained pursuant to judicially authorized search warrants of

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both Mr. Patel's devices, as well as his electronic -- or

23

electronic accounts of others that participated in the

24

conspiracy.

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THE COURT:

Mr. Patel, did you hear what the

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prosecutor just said?

2

THE DEFENDANT:

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THE COURT:

Yes, your Honor.

Do you understand that by pleading guilty,

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you're giving up your right to challenge all of the evidence

5

the prosecutor just mentioned?

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THE DEFENDANT:

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THE COURT:

Yes, your Honor.

Let me ask, do counsel agree there's a

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sufficient factual predicate for the guilty plea.

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government.

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MR. SOLOWIEJCZYK:

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THE COURT:

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MR. GUMASTE:

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THE COURT:

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The

Yes, your Honor.

The defense.
Yes, your Honor.

Does either counsel know of any reason I

should not accept Mr. Patel's plea of guilty?

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MR. SOLOWIEJCZYK:

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MR. GUMASTE:

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THE COURT:

No, your Honor.

No, your Honor.

Mr. Patel, because you acknowledge that

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you are in fact guilty of the counts charged in the information

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Counts One, Two, Three and Four, because I'm satisfied that you

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know your rights, including your right to go to trial, and that

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you're aware of the consequences of your plea, including the

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sentence which may be imposed, and because I'm finding that

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you're knowingly and voluntarily pleading guilty, I'm going to

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accept your plea of guilty and enter a judgment of guilty on

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Counts One, Two, Three and Four of the information.
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Now, when it gets time closer to the time of your

2

sentencing, the probation department is going to want to

3

interview you, and I take it counsel for defense will want to

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be there?

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MR. GUMASTE:

6

THE COURT:

Yes, your Honor.

Now, that interview won't take place

7

unless your attorneys are there, and it won't take place

8

immediately because of the nature of your plea.

9

to ask you that when you do speak to probation, that everything

But I'm going

10

that you tell them should be truthful, and that when you do

11

receive a copy of the report, that you go over it with your

12

attorneys to make sure it's accurate because I'm going to rely

13

on that report in connection with determining what an

14

appropriate sentence is for you.

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THE DEFENDANT:

16

THE COURT:

Okay?

Okay, your Honor.

All right.

So I think it makes sense to

17

set a control date approximately six months out.

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work for the government?

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MR. SOLOWIEJCZYK:

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THE COURT:

21

date six months from today.

Does that

Yes, your Honor.

Ms. Rodriguez, if we could have a control

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DEPUTY CLERK:

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THE COURT:

January 6, 2023.

January 6, 2023.

That's just a control

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date, Mr. Patel, so it's not a date unless all of your

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cooperation is done and the government has indicated that to
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me, and your attorneys have indicated that to me, and your

2

presentence report is done.

3

In all likelihood, that won't be in six months, so you

4

won't be sentenced on that date, but your attorneys and the

5

government will be required to communicate with me to let me

6

know the status of your case.

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THE DEFENDANT:

8

THE COURT:

9

Okay?

Okay, your Honor.

Now in light of the nature of the

agreement, the government's obligation to provide a factual

10

statement to probation is going to be held in abeyance, as will

11

any interview of you in connection with the preparation of a

12

presentence report.

13

When it does come time for sentencing, I think it also

14

makes sense it will be inverted because typically defense

15

counsel waits until the government makes a decision on the

16

issue of a 5K letter.

17

approximately two weeks in advance, and the defense, their

18

submission approximately one week in advance.

19

So the government will supply that to me

Let me ask, is there anything other than -- well, let

20

me say, I've been handed a sealed affirmation and application

21

relating to the certain of materials that we've discussed

22

today, as well as the transcript and also a sealing order.

23

I'm dating the sealing order today, and I'm signing it so the

24

government can -- so that materials relevant today outlined in

25

the sealing order can remain under seal and can be disclosed
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consistent with the order as indicated.
With regard to the transcript, the parties here can

2
3

obtain a copy of the transcript, but it will otherwise remain

4

sealed until further notification by the parties that it should

5

be unsealed.
MR. SOLOWIEJCZYK:

6

And, your Honor, the application

7

also includes delayed docket entries.

8

but I'm just noting it for the record.
THE COURT:

9

Sure.

I know it's in there,

So that the materials will not be

10

docketed until such time as the case is unsealed, and there

11

will be delayed docketing here.
Now, any other issues with regard to the guilty plea?

12
13

I was going to proceed to the bail issue.
MR. SOLOWIEJCZYK:

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15

Not from the government, your

Honor.

16

MR. GUMASTE:

Not from defense.

17

THE COURT:

18

So I have a copy of the pretrial services report.

All right.

Thank you.
Let

19

me ask, in connection with today's proceeding, has Mr. Patel

20

been processed, first, by the arresting agency and then by the

21

United States Marshals?

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AGENT AVERY:

23

THE COURT:

24

AGENT AVERY:

25

THE COURT:

Yes, your Honor.

But by the marshals also?
Yes, sir.

Fantastic.

So I have the pretrial

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services report which recommends pretrial service supervision

2

as directed, surrender of travel documents, and to make no new

3

applications, and that travel be restricted to the Southern

4

District and Eastern Districts of New York and the Northern

5

District of California and points in between.

6

would be points in between utilizing air travel, or does it

7

matter one way or the other?

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includes all --

9

MR. SOLOWIEJCZYK:

I take it that

In other words, because that

Your Honor, yes, it would be air,

10

so sort of where you take off and where you land, and we

11

actually have some very modest proposed modifications to the

12

districts that would be permissible for him to travel.

13

THE COURT:

Why don't you go ahead.

14

MR. SOLOWIEJCZYK:

In addition to Northern District of

15

California, Eastern District of New York and Southern District

16

of New York, the parties would jointly propose that the

17

districts include -- that he can travel to would include

18

District of New Jersey, at times he flies in and out of Newark,

19

and then also the Eastern District of California because our

20

understanding is that Mr. Patel actually lives very close to

21

the border of the Northern District of California and the

22

Eastern District of California.

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25

THE COURT:

So is that consistent with the defense's

understanding?
MR. GUMASTE:

It is, your Honor.

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We'll add the district of New Jersey and

2

the Eastern District of California to the points to which

3

travel is restricted, including the others that I've mentioned.

4

Now, is there agreement to the terms otherwise -- so

5

the other condition that pretrial services recommends is that

6

Mr. Patel be released on a bond cosigned by two financially

7

responsible persons and then with the conditions I just

8

mentioned.

Is that consistent with the parties' understanding?

MR. SOLOWIEJCZYK:

9

Yes, your Honor.

We have a jointly

10

proposed package for your Honor, which is largely consistent

11

with what pretrial has recommended.

12

THE COURT:

13

MR. SOLOWIEJCZYK:

14

$175,000 personal recognizance bond.

15

two financially responsible persons, and it would be secured by

16

$17,500.

17

documents and make no new applications.

18

Okay.
The package would consist of a
It would be cosigned by

Defendant would surrender his passport and travel

Pretrial services has directed, and I believe we

19

already covered the travel restrictions.

In terms of the

20

timing, the defendant would have one week to post the $17,500

21

security, and then the defendant would be given 30 days to

22

locate two financially responsible persons to cosign the bond.

23

That's the proposal from the parties, your Honor.

24

THE COURT:

25

Just to be clear, $175,000 personal

recognizance bond cosigned by two financially responsible
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people.

The bond will be secured by $17,500.

That will be

2

due, that condition must be met within a week from today.
Defendant is to surrender his passport and travel

3
4

documents and the pretrial services as directed, as well as the

5

restrictions on travel that I mentioned:

6

Northern District of California, District of New Jersey, and

7

Eastern District of California, pretrial services supervision

8

as directed.

9

responsible individuals, 30 days in order to meet that

10

MR. SOLOWIEJCZYK:

That's right, your Honor, and the

defendant could be released today on his own signature.
THE COURT:

13
14

And then with regard to the two financially

requirement.

11
12

S.D.N.Y., E.D.N.Y.,

All right.

Is that consistent with the

defense's understanding?

15

MR. GUMASTE:

16

THE COURT:

It is, your Honor.

I believe that based upon the nature and

17

circumstances of this case, and Mr. Patel's ongoing

18

cooperation, that this is an appropriate bail package that has

19

to be met, and that Mr. Patel can be released today on his own

20

signature of the bond.
Let me ask, is there anything else that we need to

21
22

take care of today?
MR. SOLOWIEJCZYK:

23
24
25

Not from the government, your

Honor.
THE COURT:

All right.

From the defense?

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MR. GUMASTE:

2

THE COURT:

3

No, your Honor.

All right.

Thank you very much.

We'll

stand adjourned.
Does the government need the originally signed, this

4
5

copy of the cooperation agreement?

6

MR. SOLOWIEJCZYK:

We have our own copy if your Honor

7

wants to keep it, or we can take it back, whatever your Honor

8

prefers.
THE COURT:

9

I'd probably like a copy to put in our

10

electronic file for this case.

11

make a copy and then shred the original, all right?

12

MR. SOLOWIEJCZYK:

13

THE COURT:

14

So what we'll do is we will

Thank you, your Honor.

And we'll take care of filing the other

paperwork in the case.
MR. SOLOWIEJCZYK:

15

Your Honor, would it be possible to

16

have your Honor sign a second copy of the sealing order that we

17

could keep for our records?

18

can pass it up.
THE COURT:

19

I have an extra copy right here I

That would be fine.

I probably misspoke

20

when I said we'll take care of filing things.

21

to get filed.

22

MR. SOLOWIEJCZYK:

23

THE COURT:

24
25

Nothing is going

Understood, your Honor.

So let me just ask off the record for a

moment?
(Discussion off the record)
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THE COURT:

Although we're not going to file anything,

2

we will be able to get a docket number, so it will be 22 CR

3

whatever the number is.

4

MR. SOLOWIEJCZYK:

5

THE COURT:

6

MR. SOLOWIEJCZYK:

7

THE COURT:

8

MR. GUMASTE:

9

THE COURT:

10

(Adjourned)

Understood.

Anything else?
No.

Thank you, your Honor.

Anything else from the defense?
No, your Honor.

Thank you.

Thank you.

We'll stand adjourned.

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