Page 1 Case 3:05-cr-00089-RRB
Document 51
Filed 10/11/2006
Page 1 of 3
NELSON P. COHEN
United States Attorney
KAREN L. LOEFFLER
Assistant U.S. Attorney West Seventh Avenue, #9
Anchorage, Alaska 99513-7567
Phone: (907) 271-5071
Fax: (907) 271-1500
email: karen.loeffler@usdoj.gov
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ALASKA
UNITED STATES OF AMERICA,
Plaintiff,
vs.
ROBERT LERVAAG and
RONALD FRAZE,
Defendants.
)
)
)
)
)
)
)
)
)
)
Case No. 3:05-cr-00089-RRB
GOVERNMENT’S SENTENCING
MEMORANDUM AS TO RONALD
FRAZE
COMES NOW the United States of America, by and through counsel, and
submits its sentencing memorandum regarding defendant Ronald Fraze as follows:
I.
Factual Background
The government has set forth the factual background in its sentencing
memorandum as to defendant Lervaag and will not repeat it here. However, one
point that is addressed is the vast difference in the treatment of the two defendants
in this case. The reason for this difference is the very different roles played by thePage 2 Case 3:05-cr-00089-RRB
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Filed 10/11/2006
Page 2 of 3
two defendants in the scheme charged in the indictment. As noted in other
pleadings, Lervaag was the financial half of the owners of North Employment
Agency. It was Lervaag that apparently conceived of the scheme to falsify the
accounts receivable in order to fund Lervaag and Fraze’s various business ventures
and schemes. Lervaag was also the one who created the false reports and caused
them to be submitted to the bank.
Fraze benefitted from his partner’s actions and according to his own
testimony at the judgement debtor examination in state court, knew of Lervaag’s
actions. Thus, his conduct fits the elements of Misprision of Felony, but does not
necessarily rise to the level of aiding and abetting the bank fraud alleged. For this
reason the guideline difference in the two defendant’s behavior is appropriate.
I.
Guideline Issues
The government has no objections to the presentence report or its guideline
calculations. Mr. Fraze similarly has submitted no objections the PSR. Thus, there
appear to be no disputes to be resolved at sentencing as to Mr. Fraze.
II.
Government’s Recommendation
The government will recommend a probationary sentence for Mr. Fraze as
permitted by the applicable guidelines. While Mr. Fraze appears to have been
complicit in the actions funding his personal business ventures with Mr. Lervaag
with bank monies supplied by the joint venture, his role in the charged offense isPage 3 Case 3:05-cr-00089-RRB
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Filed 10/11/2006
Page 3 of 3
much lesser than that of Mr. Lervaag. The government will recommend that Mr.
Fraze be ordered to pay restitution jointly and severally with Mr. Lervaag in the
amount of $900,000 minus the amounts already paid on the civil judgment.
RESPECTFULLY SUBMITTED this 11th day of October, 2006, at
Anchorage, Alaska.
NELSON P. COHEN
United States Attorney
s/ Karen Loeffler
Assistant U.S. Attorney
Federal Building & U.S. Courthouse West Seventh Avenue, #9, Room 253
Anchorage, Alaska 99513-7567
Phone: (907) 271-5071
Fax: (907) 271-1500
E-mail: karen.loeffler@usdoj.gov
CERTIFICATE OF SERVICE
I hereby certify that on October 11, 2006
a copy of the foregoing was served electronically on:
Ronald Offret
s/ Karen LoefflerPage 4
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PlainSite Cover Page
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Case 3:05-cr-00089-RRB
Document 51
Filed 10/11/2006
Page 1 of 3
NELSON P. COHEN
United States Attorney
KAREN L. LOEFFLER
Assistant U.S. Attorney
222 West Seventh Avenue, #9
Anchorage, Alaska 99513-7567
Phone: (907) 271-5071
Fax: (907) 271-1500
email: karen.loeffler@usdoj.gov
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ALASKA
UNITED STATES OF AMERICA,
Plaintiff,
vs.
ROBERT LERVAAG and
RONALD FRAZE,
Defendants.
)
)
)
)
)
)
)
)
)
)
Case No. 3:05-cr-00089-RRB
GOVERNMENT’S SENTENCING
MEMORANDUM AS TO RONALD
FRAZE
COMES NOW the United States of America, by and through counsel, and
submits its sentencing memorandum regarding defendant Ronald Fraze as follows:
I.
Factual Background
The government has set forth the factual background in its sentencing
memorandum as to defendant Lervaag and will not repeat it here. However, one
point that is addressed is the vast difference in the treatment of the two defendants
in this case. The reason for this difference is the very different roles played by the
PDF Page 3
Case 3:05-cr-00089-RRB
Document 51
Filed 10/11/2006
Page 2 of 3
two defendants in the scheme charged in the indictment. As noted in other
pleadings, Lervaag was the financial half of the owners of North Employment
Agency. It was Lervaag that apparently conceived of the scheme to falsify the
accounts receivable in order to fund Lervaag and Fraze’s various business ventures
and schemes. Lervaag was also the one who created the false reports and caused
them to be submitted to the bank.
Fraze benefitted from his partner’s actions and according to his own
testimony at the judgement debtor examination in state court, knew of Lervaag’s
actions. Thus, his conduct fits the elements of Misprision of Felony, but does not
necessarily rise to the level of aiding and abetting the bank fraud alleged. For this
reason the guideline difference in the two defendant’s behavior is appropriate.
I.
Guideline Issues
The government has no objections to the presentence report or its guideline
calculations. Mr. Fraze similarly has submitted no objections the PSR. Thus, there
appear to be no disputes to be resolved at sentencing as to Mr. Fraze.
II.
Government’s Recommendation
The government will recommend a probationary sentence for Mr. Fraze as
permitted by the applicable guidelines. While Mr. Fraze appears to have been
complicit in the actions funding his personal business ventures with Mr. Lervaag
with bank monies supplied by the joint venture, his role in the charged offense is
PDF Page 4
Case 3:05-cr-00089-RRB
Document 51
Filed 10/11/2006
Page 3 of 3
much lesser than that of Mr. Lervaag. The government will recommend that Mr.
Fraze be ordered to pay restitution jointly and severally with Mr. Lervaag in the
amount of $900,000 minus the amounts already paid on the civil judgment.
RESPECTFULLY SUBMITTED this 11th day of October, 2006, at
Anchorage, Alaska.
NELSON P. COHEN
United States Attorney
s/ Karen Loeffler
Assistant U.S. Attorney
Federal Building & U.S. Courthouse
222 West Seventh Avenue, #9, Room 253
Anchorage, Alaska 99513-7567
Phone: (907) 271-5071
Fax: (907) 271-1500
E-mail: karen.loeffler@usdoj.gov
CERTIFICATE OF SERVICE
I hereby certify that on October 11, 2006
a copy of the foregoing was served electronically on:
Ronald Offret
s/ Karen Loeffler
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