Securities and Exchange Commission v. Bhardwaj et al
Filing
101
FINAL JUDGMENT AS TO DEFENDANT RAMESH CHITOR. 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 Excha nge 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 exchange, in connec tion 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)], Defen dant 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)]. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $1,244,801, represent ing his ill-gotten gains as a result of the conduct alleged in the Complaint, together with prejudgment interest in the amount of $24,941, for a total of $1,269,742. The obligation to pay this amount of disgorgement and prejudgment inter est is deemed satisfied by entry of the order of forfeiture against Defendant in the related criminal case, United States v. Chitor, 22 Cr. 370 (LGS) (S.D.N.Y.) (Dkt. No. 22). IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retai n 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 RAMESH CHITOR
The Securities and Exchange Commission having filed a Complaint and Defendant
Ramesh Chitor (“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 $1,244,801, representing his ill-gotten gains as a result of the
2
conduct alleged in the Complaint, together with prejudgment interest in the amount of $24,941,
for a total of $1,269,742. 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. Chitor, 22 Cr. 370 (LGS) (S.D.N.Y.) (Dkt. No. 22).
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 2024
Dated: ______________,
____________________________________
UNITED STATES DISTRICT JUDGE
Andrew L. Carter, Jr.
4
EXHIBIT A
1
M771CHIP
2
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
------------------------------x
3
UNITED STATES OF AMERICA,
1
4
v.
5
RAMESH CHITOR,
6
Defendant.
------------------------------x
7
July 7, 2022
3:37 p.m.
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Plea (Remote)
Before:
HON. LORNA G. SCHOFIELD,
District Judge
APPEARANCES
DAMIAN WILLIAMS
United States Attorney for the
Southern District of New York
BY: RICHARD A. COOPER, ESQ.
Assistant United States Attorney
TILEM & ASSOCIATES PC
Attorneys for Defendant
BY: PETER H. TILEM, ESQ.
ROBERT M. SCHECHTER, ESQ.
ALSO PRESENT: VIOSANNY HARRISON, Pretrial Services Officer
ALSO PRESENT: JORDAN AVERY, Special Agent, FBI
22
23
24
25
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
2
M771CHIP
1
(Case called)
2
THE DEPUTY CLERK:
3
Would counsel please state your
name for the record.
4
MR. COOPER:
Yes. Good afternoon, your Honor.
5
Richard Cooper for the government. Also on the line is Special
6
Agent Jordan Avery from the FBI.
7
THE COURT:
8
MR. TILEM:
All right. Good afternoon.
Good afternoon, your Honor. On behalf of
9
Mr. Chitor, Peter Tilem, T-I-L-E-M, Tilem & Associates, and
10
with me in the room but not on the screen is my associate
11
Robert Schechter.
12
THE COURT:
13
MR. TILEM:
14
MS. HARRISON:
All right. Good afternoon.
Good afternoon.
Good afternoon, your Honor. Pretrial
15
officer Viosanny Harrison from pretrial on the line, your
16
Honor.
17
THE COURT:
18
THE DEFENDANT:
19
Okay. Thank you for joining us.
Good afternoon, your Honor. Ramesh
Chitor.
20
THE COURT:
21
So Mr. Tilem, I understand you have an application
22
Okay. Good afternoon, Mr. Chitor.
today?
23
MR. TILEM:
24
THE COURT:
25
MR. TILEM:
I do, your Honor.
And what is it?
My application is to change -- my client
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
3
M771CHIP
1
has agreed to actually proceed by information and he wishes to
2
enter a plea of guilty today to an information that's before
3
the Court.
4
THE COURT:
All right. So before we do that,
5
Mr. Chitor, there are a few preliminary things I need to deal
6
with.
7
First, obviously, we're proceeding by videoconference,
8
and I myself am outside the district. So I want to be sure
9
that you can see and hear me. Can you?
10
THE DEFENDANT:
11
THE COURT:
I can see and hear you. Thank you.
All right. If at any point in the
12
proceedings you're unable to see or hear me or anyone else who
13
you should be able to see, would you please let us know right
14
away so that we can fix that.
15
THE DEFENDANT:
16
THE COURT:
Will do, and thank you again.
Okay. You have the right to be physically
17
present for this proceeding. I have an email from your lawyer
18
requesting that we proceed remotely. I want to confirm with
19
you that you waive your right to be physically present and that
20
you'd like us to proceed in this way.
21
THE DEFENDANT:
22
THE COURT:
Yes, ma'am.
I find that the proceeding cannot be
23
further delayed without serious harm to the interests of
24
justice because Mr. Chitor is located in California. I think
25
that's right. Are you in California?
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
4
M771CHIP
1
THE DEFENDANT:
2
THE COURT:
Yes, ma'am, that is correct.
All right. And he and the government wish
3
for him to proceed with his guilty plea expeditiously so that
4
he can take responsibility and move on with the next chapter of
5
his life, and we're still in the midst of a coronavirus
6
pandemic, which makes travel challenging. So we'll proceed
7
here by videoconference.
8
Mr. Chitor, I understand from your lawyer that you
9
wish to waive indictment and plead guilty to an information,
10
which contains four counts; is that right?
11
THE DEFENDANT:
12
THE COURT:
That is correct, your Honor.
Before I do that, I'm going to ask you
13
some questions, and it's important that you answer the
14
questions honestly and completely. The purpose of the
15
questions is to make sure you understand your rights and that
16
you are waiving indictment and pleading guilty of your own free
17
will, and I also want to be sure that you're pleading guilty
18
because you are guilty and that you fully understand what will
19
happen as a result of your plea. Also, it's important that you
20
understand every question before you answer it, so please tell
21
me if there's anything you don't understand and either I or
22
your lawyer will explain it to you.
23
24
25
Before we do that, I'd like Mr. Street, my deputy
clerk, to administer the oath to the defendant.
(Defendant sworn)
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
5
M771CHIP
1
THE COURT:
Okay. Mr. Chitor, do you understand that
2
you're now under oath and that if you answer my questions
3
falsely, your untrue answers may be used against you later in
4
another proceeding, for example, a prosecution for perjury or
5
for making false statements?
6
THE DEFENDANT:
7
THE COURT:
8
All right. So first of all, please tell
me your full name.
9
THE DEFENDANT:
10
THE COURT:
11
THE DEFENDANT:
12
THE COURT:
13
THE DEFENDANT:
14
THE COURT:
15
Ramesh Venkat Chitor.
How old are you?
I am 45 years and two months old.
How far did you go in school?
A master's in business.
And where did you get your master's
degree?
16
17
I understand, your Honor.
THE DEFENDANT:
California State University, Hayward,
East Bay.
18
THE COURT:
19
THE DEFENDANT:
20
THE COURT:
And how long ago was that?
That was in the year 2005.
Mr. Chitor, are you now or have you
21
recently been under the care or treatment of a doctor or a
22
psychiatrist?
23
THE DEFENDANT:
24
THE COURT:
25
No, your Honor.
And have you ever been treated or
hospitalized for any mental illness or any type of addiction,
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
6
M771CHIP
1
including drug or alcohol addiction?
2
THE DEFENDANT:
3
THE COURT:
4
No, your Honor.
In the past 24 hours have you taken any
drugs or medicine or pills or drunk any alcohol?
5
THE DEFENDANT:
6
THE COURT:
7
THE DEFENDANT:
8
THE COURT:
9
THE DEFENDANT:
10
THE COURT:
No, your Honor.
And is your mind clear today?
Yes, your Honor.
Do you understand what we're doing?
Yes, your Honor.
Okay. Let me ask Mr. Tilem first, do you
11
have any doubt as to Mr. Chitor's competence to enter a plea
12
today?
13
MR. TILEM:
14
THE COURT:
15
MR. COOPER:
16
I do not, your Honor.
Mr. Cooper, do you?
I do not. Although one procedural point,
your Honor.
17
THE COURT:
18
MR. COOPER:
Yes.
This is Mr. Chitor's first judicial
19
appearance, so I wasn't sure the order that the Court was going
20
to proceed, but it may also make sense to provide Mr. Chitor
21
with the Rule 5 cautions before proceeding further, including
22
his right not to make a statement and any statement may be used
23
against him.
24
25
THE COURT:
Okay. Give me a second. I'm just going
to excuse myself for a minute and get another piece of paper or
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
7
M771CHIP
1
another thing on my screen and I'll join you in just one sec,
2
okay?
3
MR. COOPER:
4
(Pause)
5
THE COURT:
6
Thank you, your Honor.
All right. So I want to be sure you can
hear me. I'm not sure if you can see me. Can you hear me?
7
THE DEFENDANT:
8
THE COURT:
I can hear and see you, your Honor.
All right. So since this is your first
9
appearance in court, one of the things I need to do is inform
10
you of certain rights you have, and the first is -- I'll tell
11
you all of them, make sure you understand. You have the right
12
to remain silent, and you're not required to make any
13
statements; second, even if you have made any statements to the
14
authorities, you need not make any further statements; and
15
finally, anything you say can be used against you. Do you
16
understand that those are your rights?
17
THE DEFENDANT:
18
THE COURT:
19
THE DEFENDANT:
20
THE COURT:
I do, your Honor.
Okay. Do you still want to proceed today?
Yes, your Honor.
All right. And I understand you have your
21
counsel here for you, Mr. Tilem. Are you satisfied with his
22
representation of you?
23
THE DEFENDANT:
24
THE COURT:
25
Very satisfied, yes. Thank you.
All right. And one of the other things I
need to do is inform you of the charges against you. We'll
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
8
M771CHIP
1
actually discuss them in a greater amount of detail, but you
2
understand that you are charged in a document called an
3
information and that there are four separate charges in that
4
document? Do you understand that?
5
THE DEFENDANT:
6
THE COURT:
I do, your Honor.
All right. So why don't we then proceed
7
and let me make my finding that on the basis of Mr. Chitor's
8
responses to my questions and my observations of his demeanor,
9
I find that he's fully competent to participate in our
10
proceedings today.
11
So the first matter that I'd like to deal with, now
12
that we have covered the preliminary matters, is the waiver of
13
indictment. I want to explain to you certain rights that
14
you'll be giving up if you decide to proceed by information—in
15
other words, this document that has been produced by the
16
prosecutor with charges—instead of proceeding by an indictment,
17
which is returned by a grand jury. So what I'm going to do now
18
is explain to you various rights, and if at any point you don't
19
understand, just stop me and I'll explain, okay?
20
You have a constitutional right to be charged by
21
indictment, presented by a grand jury, but you can waive that
22
right and consent to being charged by a document called an
23
information returned by the prosecutor. Instead of an
24
indictment, the charge against you in the information has been
25
brought by the prosecutor in the document called the
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
9
M771CHIP
1
information. Have you had a chance to look at the information?
2
THE DEFENDANT:
3
THE COURT:
Yes, your Honor.
Unless you waive indictment, you may not
4
be charged with a felony unless a grand jury finds that there
5
was probable cause to believe that a crime has been committed
6
and that you committed it. If you do not waive indictment, the
7
government may present the case to a grand jury and ask the
8
grand jury to indict you. A grand jury consists of at least 16
9
and not more than 23 people, and at least 12 grand jurors must
10
find that there is probable cause to believe that you committed
11
the crime with which you're charged before you may be indicted.
12
And the grand jury might or might not indict you. But if you
13
waive indictment by the grand jury, the case will proceed
14
against you on the prosecutor's information just as though you
15
had been indicted. Do you understand all that I just told you?
16
17
THE DEFENDANT:
Thank you, your Honor.
18
19
THE COURT:
And have you discussed waiving your right
to indictment by the grand jury with your lawyer?
20
THE DEFENDANT:
21
THE COURT:
22
Yes, your Honor.
Have any threats or promises been made to
you to induce you to waive your right to indictment?
23
THE DEFENDANT:
24
THE COURT:
25
I do. I do, and I appreciate it.
Absolutely none.
And do you wish to waive indictment by a
grand jury?
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
10
M771CHIP
1
THE DEFENDANT:
2
THE COURT:
Yes, your Honor.
And let me ask Mr. Tilem, is there any
3
reason that Mr. Chitor should not be permitted to waive
4
indictment?
5
MR. TILEM:
6
THE COURT:
None that I'm aware of, your Honor.
And are you satisfied that his waiver is
7
knowing, voluntary, and intelligent?
8
MR. TILEM:
9
THE COURT:
I am, your Honor.
All right. And I've been given a waiver
10
of indictment form that appears to have been signed by you,
11
Mr. Chitor. Did you sign a waiver of indictment form?
12
THE DEFENDANT:
13
THE COURT:
14
Yes, your Honor.
And did you read the document before you
signed it?
15
THE DEFENDANT:
16
THE COURT:
Yes, your Honor.
Based on everything you've said to me, I
17
find that you, Mr. Chitor, are fully competent and aware of the
18
nature of your right to require the government to proceed by
19
way of an indictment, I find that your waiver of indictment is
20
freely, intelligently, and voluntarily made, and therefore the
21
waiver is accepted and so ordered.
22
So with that finished, I would now like to turn to the
23
issue of a guilty plea. And similarly, I'm going to explain
24
some rights to you. You'll be giving up those rights if you
25
decide to plead guilty. Again, please stop me if there's
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
11
M771CHIP
1
anything you don't understand, or if you want to ask about it.
2
If you pleaded not guilty, you would be entitled to a
3
speedy and public trial before a jury of 12 people. Do you
4
understand that?
5
THE DEFENDANT:
6
THE COURT:
I do, your Honor.
And if there were a trial, you would be
7
presumed innocent and the government would be required to prove
8
your guilt by competent evidence beyond a reasonable doubt.
9
You would not have to prove that you were innocent if you went
10
to trial.
11
If there were a jury trial, you could not be convicted
12
unless a jury of 12 people all agreed that you were guilty
13
beyond a reasonable doubt.
14
You'd have the right to be represented by an attorney
15
throughout all the proceedings, including trial, if there is
16
one, and if you could not afford an attorney, one would be
17
provided for you free of cost.
18
If there were a trial, you would have the right to see
19
and hear all of the witnesses against you, and your attorney
20
could cross-examine them. You'd have the right to have your
21
attorney object to the government's evidence and to offer
22
evidence on your own behalf if you wanted. And you'd have the
23
right to have subpoenas issued or other process used to compel
24
witnesses to come to court and testify in your defense.
25
If there were a trial, you would have the right to
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
12
M771CHIP
1
testify if you wanted, but no one could force you to testify if
2
you did not want to, and no inference or suggestion of guilt
3
could be drawn if you chose not to testify at trial. But if
4
you do plead guilty and I accept your plea, you'll be giving up
5
your right to trial and all the other related rights that I
6
just explained. If you plead guilty, there will be no trial,
7
and I will enter a judgment of guilty and sentence you on
8
another day.
9
Finally, if you plead guilty, you'll be giving up your
10
right not to incriminate yourself and I'll ask you questions
11
today about what you did in order to satisfy myself that you're
12
guilty as charged.
13
14
Do you understand the rights that I've just explained
to you?
15
THE DEFENDANT:
16
THE COURT:
I do, your Honor.
And even now you have the right to change
17
your mind; you're entitled to plead not guilty and go to trial.
18
Do you understand that?
19
THE DEFENDANT:
20
THE COURT:
21
22
23
Yes, your Honor.
Okay. So now I'd like to review the
charges and penalties.
You told me that you had received a copy of the
information. Did you read it and review it with your lawyer?
24
THE DEFENDANT:
25
THE COURT:
Yes, your Honor, I did.
Do you understand that you're charged with
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
13
M771CHIP
1
four counts—one for conspiracy to commit securities fraud; two,
2
conspiracy to commit securities fraud and wire fraud; three,
3
securities fraud; and four, making false statements?
4
THE DEFENDANT:
5
THE COURT:
Yes, your Honor.
Okay. So now I'm going to ask Mr. Cooper,
6
and why don't we take each charge separately, unless you have
7
prepared yourself in a different way. So let's begin with
8
Count One. Could you explain to us what the elements of that
9
offense are.
10
MR. COOPER:
Yes, your Honor. Count One charges
11
conspiracy to commit securities fraud, in violation of Title 18
12
U.S. Code Section 371. There are three elements to that
13
charge:
14
First, that the charged conspiracy existed;
15
Second, that the defendant intentionally joined and
16
participated in the conspiracy during the applicable time
17
period; and
18
19
20
Third, that at least one of the co-conspirators
committed an overt act in furtherance of the conspiracy.
The object of the conspiracy in Count One is
21
securities fraud, in violation of Title 15 U.S. Code Sections
22
78j(b) and 78ff, and Title 17 of the Code of Federal
23
Regulations, Section 240.10b-5. That offense has the following
24
three elements:
25
First, that in connection with a purchase or sale of
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
14
M771CHIP
1
securities, the defendant employed a device, scheme, or
2
artifice to defraud, or engaged in an act, practice, or course
3
of business that operated or would operate as fraud or deceit
4
upon a purchaser or seller of the specified security;
5
Second, that when he engaged in this scheme, the
6
defendant acted knowingly, wilfully, and with an intent to
7
defraud; and
8
Third, that in furtherance of the scheme, there
9
occurred at least one use of any means or instrument of
10
transportation or communication in interstate commerce, or the
11
use of the mails, or the use of any facility of any national
12
securities exchange.
13
THE COURT:
Okay. So do you understand that if you
14
did not plead guilty to Count One, the government would have to
15
prove each and every element of the charge beyond a reasonable
16
doubt at trial?
17
THE DEFENDANT:
18
THE COURT:
I do understand, your Honor.
And I want to be sure that you understand
19
the maximum penalty for Count One, which is five years'
20
imprisonment, a maximum term of supervised release of three
21
years, a maximum fine of the greater of $250,000, twice the
22
gross pecuniary gain derived from the offense, or twice the
23
gross pecuniary loss to a person other than yourself as a
24
result of the offense, plus a $100 mandatory special
25
assessment. Do you understand that's the maximum penalty for
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
15
M771CHIP
1
Count One?
2
THE DEFENDANT:
3
THE COURT:
4
I do, your Honor.
Okay. Let's turn to Count Two.
Mr. Cooper, could you tell us the elements for that count.
5
THE DEFENDANT:
6
Count Two charges conspiracy to commit securities
Yes, your Honor.
7
fraud and wire fraud, in violation of 18 U.S. Code
8
Section 1349. That offense has two elements:
9
First, that the charged conspiracy existed; and
10
Second, that the defendant intentionally joined and
11
participated in the conspiracy during the applicable time
12
period.
13
There are two objects of this conspiracy charged in
14
Count Two. First is securities fraud, in violation of 18 U.S.
15
Code Section 1348. That offense has the following three
16
elements:
17
First, that the defendant executed a scheme to defraud
18
a person or to obtain money or property by materially false or
19
fraudulent pretenses, representations, or promises;
20
21
22
Second, that the defendant participated in the scheme
knowingly, wilfully, and with an intent to defraud; and
Third, that the scheme to defraud was connected to the
23
purchase or sale of stock in a company whose securities were
24
registered under Section 12 of the Securities Exchange Act of
25
1934 or was otherwise required to file reports under that act.
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
16
M771CHIP
1
The second object of the conspiracy charged in Count
2
Two was wire fraud, in violation of 18 U.S. Code Section 1343.
3
There are three elements to that offense:
4
First, that there was a scheme or artifice to defraud
5
or to obtain money or property by materially false and
6
fraudulent pretenses, representations, or promises;
7
Second, that the defendant knowingly and wilfully
8
participated in the scheme or artifice to defraud, with
9
knowledge of its fraudulent nature and with specific intent to
10
defraud; and
11
12
13
Third, that in execution of that scheme, the defendant
used or caused the use of interstate or international wires.
THE COURT:
All right. And again, Mr. Chitor, do you
14
understand that if you did not plead guilty, the government
15
would have to prove each of those elements beyond a reasonable
16
doubt at trial?
17
THE DEFENDANT:
18
THE COURT:
I do understand, your Honor.
Okay. And let me explain the maximum
19
penalty for Count Two, which we've just heard about, and that
20
is 20 years' imprisonment, a maximum term of supervised release
21
of three years, a maximum fine of the greatest of $250,000 or
22
twice the gross pecuniary gain derived from the offense or
23
twice the gross pecuniary loss to someone other than yourself
24
as a result of the offense, plus there's a $100 mandatory
25
special assessment.
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
17
M771CHIP
1
Let's turn to Count Three. Mr. Cooper?
2
MR. COOPER:
Yes. Count Three charges securities
3
fraud, in violation of 15 U.S. Code Section 78j(b) and 78ff and
4
17 Code of Federal Regulations Section 240.10b-5. This charge
5
has the same elements as the object of the securities fraud
6
conspiracy charged in Count One that I described a few moments
7
ago. Would the Court like me to repeat those?
8
THE COURT:
I don't think it's necessary. Let me just
9
make sure that Mr. Chitor is comfortable having heard them
10
already.
11
THE DEFENDANT:
12
THE COURT:
13
14
I am, your Honor. I am comfortable.
All right. So you don't have to repeat
them, Mr. Cooper.
So again, you understand that if you didn't plead
15
guilty, the government would have to prove those elements with
16
respect to Counts Three at trial?
17
THE DEFENDANT:
18
THE COURT:
I do, your Honor.
So the maximum penalty for Count Three is
19
20 years' imprisonment, a maximum term of supervised release of
20
three years, a maximum fine of the greatest of $5 million or
21
twice the gross pecuniary gain derived from the offense or
22
twice the gross pecuniary loss to someone other than yourself
23
from the offense, plus there's a $100 mandatory special
24
assessment.
25
Mr. Cooper, finally, can you tell us the elements of
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
18
M771CHIP
1
Count Four.
2
MR. COOPER:
Yes. Count Four charges false
3
statements, in violation of Title 18 U.S. Code Section 1001.
4
The elements are as follows:
5
6
First, the defendant made a statement or
representation;
7
8
Second, the statement was false, fictitious, or
fraudulent;
9
Third, the statement or representation was material;
10
Fourth, the defendant acted knowingly and wilfully;
11
and
12
Fifth, the statement pertained to a matter within the
13
jurisdiction of the Executive Branch of the United States
14
government.
15
THE COURT:
Okay. And you understand, Mr. Chitor,
16
that with respect to that count, like all the other ones, if
17
you did not plead guilty to it, the government would have to
18
prove each of those elements beyond a reasonable doubt at
19
trial?
20
THE DEFENDANT:
21
THE COURT:
I do, your Honor.
Okay. So the maximum penalty for Count
22
Four is five years' imprisonment, a maximum term of supervised
23
release of three years, a maximum fine of the greatest of
24
$250,000 or twice the gross pecuniary gain derived from the
25
offense or twice the gross pecuniary loss to someone other than
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
19
M771CHIP
1
yourself as a result of the offense, plus for this count as
2
well, there's a $100 mandatory special assessment.
3
So just to recap, in terms of the maximum penalty, you
4
would be pleading to four different counts of the information,
5
and you should understand that I will impose a separate
6
sentence on each count. Is that clear to you?
7
THE DEFENDANT:
8
THE COURT:
Yes, your Honor.
You should also understand that I may
9
order you to serve the sentence either concurrently, meaning
10
all the sentences at the same time, or consecutively, meaning
11
one after another, and that if I imposed consecutive sentences,
12
your maximum total sentence could be as much as 50 years. Do
13
you understand that?
14
THE DEFENDANT:
15
THE COURT:
16
So let me explain a little bit about supervised
I do, your Honor.
Okay. Now give me just a minute here.
17
release. And there is a maximum term of supervised release for
18
each of those counts of three years, and I would impose those
19
concurrently, and during that period you'd be subject to
20
monitoring after you're released from any term of imprisonment,
21
and there are rules that you'd have to follow, and if you
22
violated those rules, you could be sent to prison or returned
23
to prison without a jury trial to serve additional time even
24
beyond your original sentence, and if that happened, you would
25
not be given credit for time served in prison on any original
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
20
M771CHIP
1
sentence and no credit for any time spent on supervised
2
release. Do you understand that?
3
THE DEFENDANT:
4
THE COURT:
I do, your Honor.
So being on supervised release is a little
5
bit like being on parole, only it comes after any prison
6
sentence and there's no possibility of being released early.
7
In fact, you should understand that parole has been abolished
8
in the federal system and that if you were sentenced to prison,
9
you would not be released early on parole. Do you understand
10
that?
11
THE DEFENDANT:
12
THE COURT:
13
I do, your Honor.
And I understand, Mr. Chitor, that you are
a United States citizen; is that right?
14
THE DEFENDANT:
15
THE COURT:
That is correct, your Honor.
All right. So I won't discuss with you
16
the various immigration consequences that could occur as a
17
result of your pleading guilty. You should just know that if
18
you were not a citizen, that there would certainly be
19
consequences.
20
Your plea agreement also provides that you will make
21
restitution to any person injured as a result of your criminal
22
conduct in an amount to be specified by the Court. Do you
23
understand that?
24
THE DEFENDANT:
25
THE COURT:
I do, your Honor.
And your plea agreement also provides that
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
21
M771CHIP
1
you admit the forfeiture allegation for Counts One through
2
Three of the information and that you agree to forfeit to the
3
United States an amount of money equal to the proceeds
4
traceable to the offenses in Counts One, Two, and Three. Do
5
you understand that?
6
THE DEFENDANT:
7
THE COURT:
I do, your Honor.
And do you also understand that the
8
forfeiture amount that you would be required to pay is separate
9
from any fine or separate from any restitution order?
10
THE DEFENDANT:
11
THE COURT:
12
You should also understand that since you're a
I do, your Honor.
Okay. Give me just a second here.
13
citizen, you have various civil rights, but if I accept your
14
guilty plea and I adjudge you guilty, that may deprive you of
15
valuable civil rights, like the right to vote, the right to
16
hold public office, the right to serve on a jury, the right to
17
possess any kind of firearm, and the right to hold certain
18
professional licenses. Do you understand that?
19
THE DEFENDANT:
20
THE COURT:
I understand that, your Honor.
And have you talked to your lawyer about
21
the federal sentencing guidelines and how they apply to your
22
case?
23
THE DEFENDANT:
24
THE COURT:
25
In imposing sentence, I'm required to consider the
Yes, your Honor, at length.
Okay. Let me review some of that.
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
22
M771CHIP
1
recommendations of the sentencing guidelines. They're a set of
2
rules for determining an appropriate sentence. And I also have
3
to determine whether there should be any upward or downward
4
departure from the recommended guideline range. I must pay
5
attention to the guidelines in determining sentence, but in the
6
end, I'm required to impose a sentence that I believe has
7
satisfied the purposes of the criminal law based on various
8
factors that are set forth in a statute, even if the sentence
9
is higher or lower than what the guidelines recommend. Do you
10
understand that?
11
THE DEFENDANT:
12
THE COURT:
I do, your Honor.
And I won't be able to determine how the
13
guidelines apply to your case until much later, until after a
14
presentence report has been prepared by the probation office
15
and you and the government have had a chance to comment on it
16
or challenge it and after you have had a chance to do anything
17
else you intend to do in connection with the government. Do
18
you understand that?
19
THE DEFENDANT:
20
THE COURT:
I do, your Honor. I do.
So do you also understand that if
21
Mr. Tilem or anyone else has attempted to predict what your
22
sentence would be, they could be wrong?
23
THE DEFENDANT:
24
THE COURT:
25
I do. I do, your Honor.
And the reason I'm telling you this is
because you need to understand that no one can be sure right
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
23
M771CHIP
1
now what your sentence will be. Even I don't know what your
2
sentence will be. It will be my job to decide that, and I'm
3
not in a position to do it now. As I said before, I'll wait
4
until I get much more information, both from the lawyers as
5
well as the probation department in preparing the presentence
6
report. I'll also have to calculate the guidelines
7
recommendation, I'll have to consider whether there are any
8
grounds to depart from the range, consider all the factors in
9
the statute that I'm required to consider, so please understand
10
that no one can predict what your sentence will be. Do you
11
understand that?
12
THE DEFENDANT:
13
THE COURT:
I do, your Honor. I really do.
Okay. Do you also understand that even if
14
your sentence is different from what your attorney or anyone
15
else told you it might be, or if it's different from what you
16
expect it to be, do you understand that once you plead guilty,
17
you will not be allowed to withdraw your plea?
18
THE DEFENDANT:
19
THE COURT:
Yes, I do, your Honor. I do.
Has anyone threatened or coerced you in
20
any way or tried to force you to plead guilty?
21
THE DEFENDANT:
22
THE COURT:
No, your Honor, no.
And has anyone, other than the government
23
in the plea agreement, promised you or offered you anything in
24
order to get you to plead guilty?
25
THE DEFENDANT:
No, your Honor. No.
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
24
M771CHIP
1
THE COURT:
So I have a copy of the plea agreement.
2
It's a letter dated June 29, 2022, from the prosecutor to your
3
attorney, and it will be marked as a Court exhibit. Did you
4
sign the plea agreement?
5
THE DEFENDANT:
6
THE COURT:
7
THE DEFENDANT:
8
THE COURT:
9
And did you read it before signing it?
you signed it?
THE DEFENDANT:
11
THE COURT:
12
THE DEFENDANT:
13
THE COURT:
Yes, your Honor.
And did you discuss every aspect of it?
Yes, your Honor.
And do you understand the agreement now
and did you understand it when you signed it?
15
THE DEFENDANT:
16
THE COURT:
17
Yes, your Honor.
Did you discuss it with your lawyer before
10
14
Yes, your Honor.
Both, yes, your Honor.
Okay. Is the plea agreement the entire
agreement between you and the government?
18
THE DEFENDANT:
19
THE COURT:
No. There's more to that.
Okay. I actually don't think so. I think
20
that the plea agreement is the entire agreement between you and
21
the government at this point. But let me ask Mr. Cooper.
22
MR. COOPER:
Your Honor, the plea agreement is the
23
entire agreement between the government and Mr. Chitor, but
24
perhaps the Court can also confirm that with Mr. Tilem and
25
Mr. Chitor.
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
25
M771CHIP
1
THE COURT:
2
MR. COOPER:
3
THE COURT:
I will, of course.
Thank you.
Okay. It may be that there is some
4
misunderstanding on Mr. Chitor's part, so --
5
THE DEFENDANT:
Thank you. I can defer to Mr. Tilem.
6
I was thinking about the other agreement as well, but it's just
7
the plea. It's the same plea agreement. I defer to my defense
8
counsel.
9
THE COURT:
You're right. There is a bail agreement
10
and there is I believe a sealing agreement, but let me just ask
11
Mr. Tilem.
12
MR. TILEM:
Your Honor, it is my understanding that
13
this is the only agreement, that the plea agreement is the only
14
agreement between the government and Mr. Chitor, and the
15
agreement, the plea agreement that was signed by me and -- both
16
Mr. Chitor and myself indicates that it's the only agreement
17
between the parties.
18
THE COURT:
All right. So Mr. Chitor, I want to be
19
sure you understand now that the plea agreement is the only
20
agreement between you and the government. Is that clear?
21
22
23
24
25
THE DEFENDANT:
It is clear, your Honor. Thank you
for that. I really appreciate it.
THE COURT:
Sure. Has anyone threatened or coerced
you or forced you to enter into the plea agreement?
THE DEFENDANT:
No, your Honor, not at all.
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
26
M771CHIP
1
THE COURT:
And other than what is contained in the
2
plea agreement, has anyone promised you anything or offered you
3
any inducement to plead guilty or to enter into the plea
4
agreement?
5
THE DEFENDANT:
6
THE COURT:
7
No, your Honor. It's all --
And has anyone made a promise to you as to
what your sentence would be?
8
THE DEFENDANT:
9
THE COURT:
No, your Honor.
Okay. Now do you also understand that the
10
government could make a motion before your sentencing, called a
11
5K motion, that could influence me to give you a lower sentence
12
in light of your cooperation with the government? Do you
13
understand that that's a possibility?
14
THE DEFENDANT:
15
THE COURT:
I do understand, your Honor.
And do you also understand that it's up to
16
the government and not to me to decide whether your cooperation
17
has been good enough and productive enough to warrant the
18
government making that motion?
19
THE DEFENDANT:
20
THE COURT:
I do understand, your Honor.
And do you also understand that even if
21
the government decides to make the motion, it is still up to me
22
to decide whether to give you any credit for your cooperation
23
and how much?
24
THE DEFENDANT:
25
THE COURT:
I do understand, your Honor.
Do you also understand that under certain
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
27
M771CHIP
1
circumstances both you and the government have the right to
2
appeal any sentence that I might impose, subject to the terms
3
of the plea agreement?
4
THE DEFENDANT:
5
THE COURT:
I do understand, your Honor.
So in recap, have you clearly understood
6
everything so far that has happened today?
7
THE DEFENDANT:
8
THE COURT:
Yes, your Honor. Thank you.
And now that you've been advised of the
9
charges against you, the possible penalties you face, and the
10
rights you're giving up, is it still your wish to plead guilty
11
to Counts One, Two, Three, and Four of the information?
12
THE DEFENDANT:
13
THE COURT:
Yes, your Honor.
So I'd like to ask Mr. Cooper what the
14
government would expect to prove in this case if it went to
15
trial.
16
MR. COOPER:
17
If this case were to go to trial, the government would
Yes, your Honor.
18
produce evidence, including materials obtained pursuant to a
19
judicially authorized search warrant on Mr. Chitor's telephone,
20
as well as electronic devices and electronic communications
21
accounts of co-conspirators, as well as trading records,
22
records of communications, and records of cell site locations
23
for Mr. Chitor and others.
24
THE COURT:
25
And in addition to telling me the types of
evidence, could you summarize for me what that evidence would
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
28
M771CHIP
1
2
show.
MR. COOPER:
Yes, your Honor. The evidence would show
3
that Mr. Chitor participated in an insider trading conspiracy
4
pursuant to which he received material nonpublic information
5
about a planned acquisition of a company named NeoPhotonics by
6
another company named Lumentum; that at the time Mr. Chitor
7
understood that the information was material nonpublic
8
information, and that he provided a benefit to the source of
9
that information—namely, a promise to share in the proceeds of
10
insider trading.
11
In addition, the evidence would show that the FBI
12
conducted an interview of Mr. Chitor in or about March 2022 and
13
that Mr. Chitor also participated in meetings with the FBI and
14
representatives of the United States government, the United
15
States Attorney's Office, in or about April 2022, and that
16
during those meetings, on certain occasions, and about certain
17
issues, Mr. Chitor provided materially false information.
18
THE COURT:
Okay. So Mr. Chitor, you understand,
19
we've been through all four counts, you've heard what the
20
government has said. First of all, let me ask you, with
21
respect to what the government just said that you did, is that
22
in substance true?
23
THE DEFENDANT:
24
THE COURT:
25
It is true, your Honor.
Okay. So I'd like you to tell me in your
own words what you did that makes you believe that you're
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
29
M771CHIP
1
guilty of the four crimes to which you're pleading guilty.
2
THE DEFENDANT:
3
In October of last year, October of 2021, an
Yes, your Honor.
4
acquaintance of mine, Mr. Amit Bhardwaj, who had a very high
5
position in this publicly traded company called Lumentum,
6
proposed that I buy stock of this company called NeoPhotonics
7
in my account based upon inside information that he had that
8
Lumentum was about to acquire this company NeoPhotonics.
9
Mr. Bhardwaj also proposed that we split the profits 50/50, in
10
exchange for using my account and him providing the
11
information.
12
I then bought stock and also exchanged traded call
13
options in NeoPhotonics with the intent of making a large
14
profit after the acquisition would be announced.
15
In November 2021, the following month, immediately
16
after the Lumentum acquisition of NeoPhotonics, I sold my
17
position, making a large profit. I then arranged for money to
18
be given to a relative of Mr. Bhardwaj in India as his share of
19
the profits. We both downloaded the Signal messaging app so
20
that we could communicate about the trading and profit-sharing
21
and so that our activities would be harder to detect.
22
In March and April of this year, 2022, I was
23
questioned about these activities by the FBI, the U.S.
24
Attorney's Office, and others. I made materially false
25
statements to law enforcement in an attempt to cover up the
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
30
M771CHIP
1
full extent of my activities in regard to these trades and the
2
sharing of these profits.
3
I knew this was wrong and that this was illegal.
4
THE COURT:
5
Did anyone threaten or coerce or force you to do these
6
Okay. Thank you.
things?
7
THE DEFENDANT:
8
THE COURT:
9
10
11
No, your Honor.
Okay. Mr. Cooper, are there any
additional questions that you want me to ask?
MR. COOPER:
There are not, your Honor, although if
it's all right, I can make a proffer on venue for the Court.
12
THE COURT:
13
MR. COOPER:
Okay. Go ahead.
With respect to venue, if this case
14
proceeded to trial, government would establish venue by a
15
preponderance of the evidence. With respect to Counts One,
16
Two, and Three, the government would demonstrate that certain
17
executing brokers for certain of the stock purchases that the
18
defendant made in NeoPhotonics were based in the Southern
19
District of New York; and second, that the entity that provided
20
the clearing services for most of the transactions at issue was
21
located in part in the Southern District of New York.
22
With respect to the false statements charge, Count
23
Four, we would prove venue by the fact that the defendant was
24
aware that the investigation was being conducted out of the
25
Southern District of New York and that certain of the false
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
31
M771CHIP
1
statements were made while the defendant was physically present
2
in the Southern District of New York.
3
THE COURT:
4
And Mr. Cooper, do you believe there is a sufficient
5
Okay. Thank you.
factual predicate for a guilty plea?
6
MR. COOPER:
7
THE COURT:
8
MR. TILEM:
9
THE COURT:
10
Yes, your Honor.
And Mr. Tilem, do you agree?
I do agree.
And Mr. Tilem, are there any additional
questions that you would like me to ask of your client?
11
MR. TILEM:
12
THE COURT:
No, your Honor.
Do you know of any valid defense that
13
would prevail at trial or any reason why your client should not
14
be permitted to plead guilty?
15
MR. TILEM:
16
THE COURT:
I do not, your Honor.
So Mr. Chitor, I will take your plea now.
17
How do you plead to the charge in Count One of the information,
18
guilty or not guilty?
19
THE DEFENDANT:
20
THE COURT:
21
THE DEFENDANT:
22
THE COURT:
23
THE DEFENDANT:
24
THE COURT:
25
THE DEFENDANT:
Guilty, your Honor.
And in Count Two, guilty or not guilty?
Guilty, your Honor.
Count Three, guilty or not guilty?
Guilty, your Honor.
And Count Four, guilty or not guilty?
I plead guilty, your Honor.
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
32
M771CHIP
1
2
THE COURT:
And are you in fact guilty of all of those
charges?
3
THE DEFENDANT:
4
THE COURT:
5
Yes, I am, your Honor.
Are you pleading guilty voluntarily and of
your own free will?
6
THE DEFENDANT:
7
THE COURT:
Voluntarily, yes, your Honor.
Do you admit the forfeiture allegations in
8
the information which require you to forfeit property
9
representing the proceeds traceable to the commission of the
10
crimes charged in Counts One through Three?
11
THE DEFENDANT:
12
THE COURT:
13
THE DEFENDANT:
14
THE COURT:
Yes, your Honor.
Was that a yes?
Yes. Yes, your Honor.
So Mr. Chitor, on the basis of your
15
responses to my questions and my observations of your demeanor,
16
I am satisfied that you understand your rights and that you're
17
waiving them knowingly, voluntarily, with an understanding of
18
the consequences of your plea, including potential sentences
19
that might be imposed, that you're voluntarily pleading guilty,
20
that you've admitted you're guilty as charged in Counts One
21
through Four of the information, that your plea is supported by
22
an independent factual basis as to each and every element, and
23
accordingly, I accept your guilty plea and adjudge you guilty
24
on the charges in Counts One, Two, Three, and Four.
25
Mr. Cooper, what would you like to do about a
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
33
M771CHIP
1
2
sentencing date and the presentence report?
MR. COOPER:
Your Honor, with respect to the
3
presentencing report, we'd request that the Court defer that,
4
and when it comes time, when the defendant's cooperation
5
attempt has completed, we can advise the Court and request that
6
the Court order a PSR at that time.
7
With respect to a sentencing date, our suggestion is
8
that the Court set a control date for six months out, at which
9
time the government will advise the Court as to the status of
10
the defendant's cooperation and whether a further adjournment
11
is necessary.
12
THE COURT:
13
MR. TILEM:
14
15
Mr. Tilem, is that acceptable to you?
Yes, your Honor. I join in both of those
applications.
THE COURT:
All right. Well, let's do this instead.
16
What I will do is order a letter just prior to our control date
17
so that we know whether we're proceeding then rather than
18
having a conference, and I will require the letter -- why don't
19
I just put that in a written order, but I'll require the letter
20
sufficiently before the six-month date so there is time for --
21
well, actually, let's not do that at all. Why don't we do
22
this: In six months, which would be January 7th, if you could
23
give me a letter by January 7th updating me on the status. If
24
Mr. Chitor's cooperation is complete at that time, I'll set a
25
schedule for the preparation of the presentence report and for
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
34
M771CHIP
1
the parties' submissions, and I will also set a sentencing
2
date.
3
Mr. Street informs me that the date should be
4
January 9th, because January 7th is a Saturday, so I'll amend
5
my direction to ask for a letter on January 9th, or by
6
January 9th. Does that work for everyone? Mr. Tilem first.
7
MR. TILEM:
8
THE COURT:
9
MR. COOPER:
10
THE COURT:
11
I received a letter from the government yesterday
Yes, it does, your Honor.
And Mr. Cooper?
Yes, your Honor.
So let's turn to the question of bail now.
12
explaining that the parties are jointly proposing certain bail
13
conditions. And the letter from the government -- let me just
14
confirm with Mr. Tilem that that is the case and that the
15
letter was accurate.
16
17
18
MR. TILEM:
It is the case, your Honor, and the letter
is accurate.
THE COURT:
So based on my review of the information,
19
the pretrial services report, the government's letter,
20
Mr. Tilem's concurrence, I will accept the recommendation. I
21
am satisfied that the proposed conditions will reasonably
22
assure Mr. Chitor's appearance and the safety of others in the
23
community, and that these are the least restrictive conditions
24
that will satisfy these purposes.
25
So Mr. Chitor, I'm releasing you subject to the
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
35
M771CHIP
1
following conditions of release, which are the proposed
2
conditions:
3
4
5
6
7
First, a $250,000 personal recognizance bond signed by
you and secured by $40,000 in cash;
A second requirement is that the bond be signed or
cosigned by two financially responsible persons;
Third condition is that travel be limited to the
8
Continental United States—in other words, you can't travel
9
outside the Continental United States;
10
Fourth, you must surrender all passports and travel
11
documents and not apply for any new ones in any country or to
12
any country; and
13
Finally, I will impose regular pretrial supervision.
14
Do you understand that if you fail to return to court
15
for sentencing on the date and time that will be set, there are
16
various consequences, none of them good? And I'll explain them
17
in a minute, but you understand that you have a legal
18
obligation to come back to court for your sentencing?
19
THE DEFENDANT:
20
THE COURT:
I do, your Honor.
So if you fail to return for sentencing:
21
first, a warrant could be issued for your arrest; second, you
22
would be guilty of a separate crime called bail jumping for
23
which you could be sentenced to imprisonment and a fine
24
separate and apart from and in addition to whatever sentence
25
you might receive for the crimes to which you've just pleaded
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
36
M771CHIP
1
guilty; and third, in addition, anyone who signed the bond with
2
you would be responsible for paying the full amount or the full
3
unsecured amount, and that is 210,000.
4
In addition, if you commit any offense while you're
5
released, you could be sentenced on that additional offense, in
6
addition to whatever sentence would normally be imposed, to an
7
additional term of imprisonment of not more than ten years if
8
it is a felony and not more than one year if it is a
9
misdemeanor. And that would follow, as I said, any other
10
sentence of imprisonment. Do you understand that?
11
THE DEFENDANT:
12
THE COURT:
13
I do, your Honor.
Okay. That concludes everything I have on
my agenda. Is there anything else, Mr. Cooper?
14
MR. COOPER:
15
One is, with respect to bail -- and I apologize, I did
Yes, your Honor, two brief things.
16
not include this in the letter -- we would request that the
17
defendant be provided with one week to post the cash security
18
and also be given 30 days to obtain the two co-signers.
19
20
21
22
23
24
25
THE COURT:
Okay. Mr. Tilem, any objection to those
courses of action?
MR. TILEM:
I thought we had discussed two weeks to
post the cash bail.
MR. COOPER:
No, that's right. And I apologize, your
Honor. I couldn't read my handwriting. Mr. Tilem is correct.
THE COURT:
All right. So any objection, Mr. Tilem,
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
37
M771CHIP
1
to two weeks to provide the cash security and 30 days to obtain
2
co-signers?
3
MR. TILEM:
4
THE COURT:
5
And Mr. Cooper, you had another item?
6
MR. COOPER:
No objection, your Honor.
So I'll add those additional conditions.
Yes, your Honor. We had submitted to the
7
Court a sealed application to seal the various documents with
8
respect to today's proceeding, including the transcript, and
9
also to provide for delayed docketing of this case, with
10
certain exceptions to the sealing. I'm happy to discuss that
11
if the Court has any questions.
12
THE COURT:
13
MR. TILEM:
14
15
16
17
18
Any objections, Mr. Tilem?
No, your Honor. In fact, I would join in
that application.
THE COURT:
All right. I have reviewed the
application and I will grant the application.
Could I make one request of you. Could I ask one of
you to order the transcript and have it sent to us.
19
MR. COOPER:
20
THE COURT:
21
MR. TILEM:
22
Yes, your Honor.
Okay. Is there anything else, Mr. Tilem?
Not on behalf of the defendant, your
Honor. Thank you.
23
THE COURT:
24
MR. COOPER:
25
THE COURT:
Sure. Mr. Cooper, anything else?
No. Thank you very much, your Honor.
All right. Mr. Chitor, best of luck to
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
38
M771CHIP
1
you, and I will see you again at the time of sentencing, if not
2
before.
3
THE DEFENDANT:
4
THE COURT:
5
MR. TILEM:
6
Thank you, your Honor.
We're adjourned.
Thank you.
o0o
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
SOUTHERN DISTRICT REPORTERS, P.C.
(212) 805-0300
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?