UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
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UNITED STATES OF AMERICA,
v.
NORMAN STOERR,
Defendant.
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Criminal No.
Filed:
Violations:
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08-cr-00521-JAG
7/23/08
15 U.S.C. § 1
18 U.S.C. § 371
26 U.S.C. § 7206(2)
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Plea Agreement
The United States of America and the defendant, Norman Stoerr, hereby
enter into the following Plea Agreement ("Agreement") pursuant to Rule
11(c)(1)(B) of the Federal Rules of Criminal Procedure ("Fed. R. Crim.
P.").
AGREEMENT TO PLEAD GUILTY AND WAIVE CERTAIN
RIGHTS
- Norman Stoerr ("Stoerr") will waive indictment pursuant
to Fed. R. Crim. P. 7(b) and plead guilty in the United States District
Court of New Jersey to a three-count Information, in the form attached,
in which he is charged with: (a) one count of violating 15 U.S.C.
§ 1 in connection with a conspiracy to rig bids and allocate
certain sub-contracts from approximately October 2002 to approximately
October 2003 to provide wastewater treatment supplies and services
to a prime contractor ("P-C") of the United States Environmental Protection
Agency ("EPA") at the Federal Creosote Superfund Site ("Federal Creosote")
in Manville, New Jersey; (b) one count of violating 18 U.S.C. §
371 for conspiring from approximately the Fall of 2000 until approximately
the Spring of 2004, with the objectives of (1) defrauding the EPA
and committing offenses against the United States by soliciting and
attempting to solicit kickbacks and accepting and attempting to accept
kickbacks from certain sub-contractors of P-C at Federal Creosote,
and causing certain sub-contractors to include the amount of the kickbacks
in the sub-contract prices charged by the prime contractor to the
United States, in violation of 41 U.S.C. §§ 53(2) and (3);
and (2) defrauding the EPA and Tierra Solutions, Inc. through the
use of the United States mails at Federal Creosote and at the Diamond
Alkali Superfund Site ("Diamond Alkali") in Newark, New Jersey, in
violation of 18 U.S.C. § 1341; and (c) one count of violating
26 U.S.C. § 7206(2) by aiding and assisting in, and procuring,
counseling, and advising the preparation and presentation to the Internal
Revenue Service of an Income Tax Return of another for the calendar
year 2003 which was false and fraudulent as to a material matter,
in that the return falsely claimed kickback payments made to Stoerr
as legitimate business expenses.
DEFENDANT'S COOPERATION
- Stoerr will cooperate fully and truthfully with the United States
in the prosecution of this case, the conduct of the current federal
investigation of violations of federal antitrust and related criminal
laws involving the award of sub-contracts to provide environmental
services at Federal Creosote and the purchase of supplies and services
at Diamond Alkali, as well as any other federal investigation resulting
therefrom, and any litigation or other proceedings arising or resulting
from any such investigation to which the United States is a party
(collectively referred to herein as "Federal Proceeding"). The ongoing,
full, and truthful cooperation of Stoerr shall include, but not be
limited to:
- producing to the United States all documents, information, and
other materials, including claimed personal documents, in the
possession, custody, or control of Stoerr that may be requested
by the United States in connection with any Federal Proceeding;
- making himself available for interviews with the attorneys and
agents of the United States, not at the expense of the United
States, at the New York Office of the Antitrust Division, or at
other mutually-agreed upon locations, upon the request of attorneys
and/or agents of the United States;
- bringing to the attention of the United States all crimes which
he has committed, and all administrative, civil, and/or criminal
proceedings, investigations, or prosecutions in which he, to his
knowledge, is or has been a subject, target, party, or witness;
- responding fully and truthfully to all inquiries of the United
States in connection with any Federal Proceeding, without falsely
implicating any person or intentionally withholding any information,
subject to the penalties of making false statements (18 U.S.C.
§ 1001) and obstruction of justice (18 U.S.C. § 1503,
et seq.);
- otherwise voluntarily providing to the United States any materials
or information, not requested in (a)-(c) of this paragraph, that
he may have that is related to any Federal Proceeding;
- when called upon to do so by the United States in connection
with any Federal Proceeding, testifying in grand jury, trial,
and other judicial proceedings fully, truthfully and under oath,
subject to the penalties of perjury (18 U.S.C. § 1621), making
false statements or declarations in grand jury or court proceedings
(18 U.S.C. § 1623), contempt (18 U.S.C. §§ 401-402),
and obstruction of justice (18 U.S.C. § 1503, et seq.);
and
- agreeing to commit no further crimes whatsoever.
- Stoerr agrees that prior to the date of sentencing, he shall file
accurate amended tax returns on behalf of Environmental Consulting
Services, Inc. (United States Income Tax Returns for a Subchapter
S Corporation, Forms 1120S), and himself (United States Individual
Tax Returns, Forms 1040), for the tax years 2002, 2003, and 2004 and
will pay, or will enter into an agreement to pay, past taxes due and
owing by him to the Internal Revenue Service, including interest and
applicable civil fraud penalties, on such terms and conditions as
will be agreed on by the Internal Revenue Service and him. In addition,
Stoerr will not contest the applicability of civil fraud penalties
and agrees not to file any claims for refund of taxes, penalties or
interest for amounts attributable to the returns filed incident to
this Agreement.
GOVERNMENT'S AGREEMENT
- Subject to the full, truthful, and continuing cooperation of the
defendant, as described in Paragraph 2 of this Agreement and upon
the Court's acceptance of the guilty plea called for by this Plea
Agreement, the Antitrust Division and Tax Division will not bring
further criminal charges against Stoerr for any act or offense committed
prior to the date of this Agreement that was in furtherance of: (a)
any agreement to rig bids or allocate certain sub-contracts for wastewater
treatment supplies and services at Federal Creosote; (b) soliciting
and accepting kickbacks from certain vendors awarded sub-contracts
at Federal Creosote and at Diamond Alkali; and (c) aiding and assisting
another in the preparation and presentation to the Internal Revenue
Service a false Income Tax Return of another for the calendar year
2003. The nonprosecution terms of this paragraph do not apply to civil
matters of any kind, to any violation of the federal securities laws,
or to any crime of violence.
- It is understood that this Agreement does not bind any other federal
agency or local prosecuting authority or administrative agency other
than the Antitrust Division of the United States Department of Justice
and, to the extent set forth above, the Tax Division of the Department
of Justice. However, if requested, the Antitrust Division will bring
the fact, manner and extent of the cooperation of Stoerr to the attention
of other prosecuting, administrative, and other agencies as a matter
for such agencies to consider as appropriate.
POSSIBLE MAXIMUM PENALTIES
- Stoerr understands that the statutory maximum penalty which may
be imposed against him upon conviction for a violation of 15 U.S.C.
§ 1 is:
- a term of imprisonment for three (3) years;
- a fine in an amount equal to the greatest of (1) $350,000, (2)
twice the gross pecuniary gain the conspirators derived from the
crime, or (3) twice the gross pecuniary loss caused to the victims
of the crime by the conspirators (15 U.S.C. § 1; 18 U.S.C.
§ 3571(b) and (d)); and
- a term of supervised release of one (1) year following any
term of imprisonment. If the defendant violates any condition
of supervised release, the defendant could be imprisoned for the
entire period of the supervised release (18 U.S.C. §
3559(a)(5); 18 U.S.C. § 3583(b)(3) and (e)(3); and U.S.S.G.
§5D1.2(a)(3)).
- In addition, Stoerr understands that:
- pursuant to U.S.S.G. § 5E1.1 or 18 U.S.C. § 3583(d),
the Court may impose an order of restitution to the victims of
the offense; and
- pursuant to 18 U.S.C. § 3013(a)(2)(A), the Court is required
to order the defendant to pay a $100.00 special assessment upon
conviction for the charged crime.
- Stoerr understands that the statutory maximum penalty which may
be imposed against him upon conviction for a violation of 18 U.S.C.
§ 371 is:
- a term of imprisonment of not more than five (5) years;
- a fine of not more than the greater of $250,000, or the greater
of twice his gross pecuniary gain from the offense or twice the
victim's gross pecuniary loss from the offense; or
- both such sentences; and
- a term of supervised release of no more than three (3) years
following any term of imprisonment pursuant to 18 U.S.C. §
3583(b)(2) and U.S.S.G. § 5D1.2(a)(2). Pursuant to 18 U.S.C.
§ 3583(e)(3), if the defendant violates any condition of
supervised release, he could be imprisoned up to two years.
- Stoerr also understands that:
- the Court shall impose an order of restitution, pursuant to
18 U.S.C. § 3663A and U.S.S.G. § 5E1.1; and
- pursuant to 18 U.S.C. § 3013(a)(2)(A), the Court is required
to order the defendant to pay a $100.00 special assessment upon
conviction for the charged crime.
- Stoerr also understands that the statutory maximum penalty which
may be imposed against him upon conviction for a violation of 26 U.S.C.
§ 7206(2), is:
- a term of imprisonment of not more than three (3) years; or
- a fine of not more than $100,000;
- or both such sentences; together with
- the costs of prosecution.
- Stoerr also understands that:
- pursuant to U.S.S.G. § 5E1.1 or 18 U.S.C. § 3583(d),
the Court may impose an order of restitution to the victim of
the offense;
- the Court may also impose a term of supervised release of no
more than one year, pursuant to 18 U.S.C. § 3583(b)(3) and
U.S.S.G. § 5D1.2(a)(3). If the defendant violates any condition
of supervised release, the defendant could be imprisoned for the
entire period of the supervised release (18 U.S.C. §
3559(a)(5); 18 U.S.C. § 3583(b)(3) and (e)(3); and U.S.S.G.
§5D1.2(a)(3)); and
- pursuant to 18 U.S.C. § 3013(a)(2)(A), the Court is required
to order the defendant to pay a $100.00 special assessment upon
conviction for the charged crime.
SENTENCING GUIDELINES
- Stoerr understands that the United States Sentencing Guidelines
("Sentencing Guidelines") are advisory, not mandatory, but that the
Court must consider the Sentencing Guidelines, along with the other
factors set forth in 18 U.S.C. § 3553(a) in determining and imposing
a sentence. Stoerr understands that the Sentencing Guidelines determinations
will be made by the Court by a preponderance of the evidence standard.
Stoerr understands that although the Court is not ultimately bound
to impose a sentence within the applicable Sentencing Guidelines range,
its sentence must be reasonable based upon considerations of all relevant
sentencing factors set forth in 18 U.S.C. § 3553(a). Pursuant
to U.S.S.G. §1B1.8, the United States agrees that self-incriminating
information that the defendant provides to the United States pursuant
to this Plea Agreement will not be used in determining the defendant's
applicable Guidelines range, except to the extent provided in U.S.S.G.
§1B1.8(b).
- The United States and Stoerr agree and stipulate that pursuant to
U.S.S.G. § 1B.11(b)(1), the November 2003 Guidelines, the version
in effect at the time of the offense, should be applied because the
application of a later version (now the November 2007 edition) would
lead to a higher adjusted offense level.
SENTENCING AGREEMENT
- Stoerr understands that the sentence to be imposed on him is within
the sole discretion of the sentencing judge. It is understood that
the Sentencing Guidelines are not binding on the Court. Stoerr acknowledges
that his entry of the guilty plea to the charged offenses authorizes
the sentencing court to impose any sentence up to and including the
statutory maximum sentence. The United States cannot and does not
make any promises or representations as to what sentence Stoerr will
receive. The defendant understands that, as provided in Fed. R. Crim.
P. 11(c)(3)(B), if the Court does not impose a sentence consistent
with either party's sentencing recommendation, the defendant nevertheless
has no right to withdraw his plea of guilty. The United States will
inform the Probation Office and the Court of (a) this Agreement; (b)
the nature and extent of Stoerr's activities with respect to this
case, and all other activities of Stoerr which the United States deems
relevant to sentencing; and (c) the timeliness, nature, extent and
significance of Stoerr's cooperation with the United States. In so
doing, the United States may use any information it deems relevant,
including information provided by Stoerr both prior and subsequent
to the signing of this Agreement. The United States reserves the right
to make any statement to the Court or the Probation Office concerning
the nature of the offenses charged in the attached Information, the
participation of Stoerr therein, and any other facts or circumstances
that it deems relevant. The United States also reserves the right
to comment on or to correct any representation made by or on behalf
of Stoerr, and to supply any other information that the Court may
require.
- If the United States determines that Stoerr has provided substantial
assistance in any Federal Proceeding, and has otherwise fully complied
with all of the terms of this Agreement, it will file a motion, pursuant
to U.S.S.G. § 5K1.1, advising the sentencing judge of all relevant
facts pertaining to that determination and requesting the Court to
sentence Stoerr in light of the factors set forth in U.S.S.G. §
5K1.1(a)(1)-(5), and thus impose, in the Court's discretion, a sentence
below the applicable Sentencing Guidelines ranges for incarceration
and fine. The United States and Stoerr are free to recommend or argue
for any specific sentence to the Court.
- Stoerr understands that this Agreement does not in any way affect
or limit the right of the United States to respond to and take positions
on post-sentencing motions or requests for information that relate
to reduction or modification of sentence.
- Stoerr acknowledges that the decision whether he has provided substantial
assistance in any Federal Proceeding is within the sole discretion
of the United States. It is understood that should the United States
determine that Stoerr has not provided substantial assistance in any
Federal Proceeding, such a determination will release the United States
from any obligation to file a motion pursuant to U.S.S.G. § 5K1.1,
but will not entitle Stoerr to withdraw his guilty plea once it has
been entered. Stoerr further understands that whether or not the United
States files its motion pursuant to U.S.S.G. § 5K1.1, the sentence
to be imposed on him remains within the sole discretion of the sentencing
judge.
REPRESENTATION BY COUNSEL
- Stoerr has reviewed all legal and factual aspects of this case
with his attorney and is fully satisfied with his attorney's legal
representation. Stoerr has thoroughly reviewed this Agreement with
his attorney, and has received satisfactory explanations from his
attorney concerning each paragraph of this Agreement and alternatives
available to Stoerr other than entering into this Agreement. After
conferring with his attorney and considering all available alternatives,
Stoerr has made a knowing and voluntary decision to enter into this
Agreement.
VOLUNTARY PLEA
- Stoerr's decision to enter into this Agreement and to tender a
plea of guilty is freely and voluntarily made and is not the result
of force, threats, assurances, promises, or representations other
than the representations contained in this Agreement. The United States
has made no promises or representations to Stoerr as to whether the
Court will accept or reject the recommendations contained within this
Agreement.
VIOLATION OF PLEA AGREEMENT
- Stoerr agrees that should the United States determine in good faith
that he has given false, misleading, or incomplete information or
testimony, or that Stoerr has otherwise failed to fulfill any of the
obligations set out in this Agreement, the United States shall notify
counsel for Stoerr in writing by personal or overnight delivery or
facsimile transmission of its intention to void any of its obligations
under this Agreement (except its obligations under this paragraph),
and Stoerr will be subject to prosecution for any federal criminal
violation of which the United States has knowledge, including but
not limited to the substantive offenses relating to the investigation
resulting in this Agreement. It is the intent of this Agreement to
waive all defenses based on the statute of limitations with respect
to any prosecution that is not time-barred on the date that this Agreement
is signed.
- Stoerr understands and agrees that in any further prosecution of
him resulting from the release of the United States from its obligations
under this Agreement based on the defendant's violation of the Agreement,
any documents, statements, information, testimony, or evidence provided
by him to attorneys or agents of the United States, federal grand
juries, or courts, and any leads derived therefrom, may be used against
him in any such further prosecution. In addition, the defendant unconditionally
waives his right to challenge the use of such evidence in any such
further prosecution, notwithstanding the protections of Fed. R. Evid.
410.
ENTIRETY OF AGREEMENT
- This Agreement constitutes the entire agreement between the United
States and Stoerr concerning the disposition of the criminal charges
contained in this case. This Plea Agreement cannot be modified except
in writing, signed by the United States and Stoerr.
- The undersigned attorneys for the United States have been authorized
by the Attorney General of the United States to enter this Agreement
on behalf of the United States.
Dated: 7/23/08
_______________/s/________________
NORMAN STOERR
_______________/s/________________
DANIEL J. HENRY, JR. ESQ.
Counsel for NORMAN STOERR |
_______________/s/________________
JEFFREY D. MARTINO
_______________/s/________________
ELIZABETH B. PREWITT
_______________/s/________________
HELEN CHRISTODOULOU
Attorneys, Antitrust Division
U.S. Department of Justice
26 Federal Plaza, Room 3630
New York, New York 10278
(212) 264-0653 |
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