United States v. Reed Document 10: Motion for Departure

Massachusetts District Court
Case No. 1:03-cr-10399-WGY
Filed February 5, 2007

MOTION for Downward Departure And Sentencing Recommendation as to Diane C. Reedby USA. (Ortiz, Carmen)

BackBack to United States v. Reed

Tags No tags have been applied so far. Sign in to add some.

  Formatted Text Tab Overlap Raw Text Right End
Page 1 Case 1:03-cr-10399-WGY
Document
Filed 02/05/
Page 1 of
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
UNITED STATES OF AMERICA
v.
DIANE C. REED
Defendant
)
)
)
)
)
)
)
)
CRIMINAL NO. 03-10399-WGY
GOVERNMENT’S MOTION FOR A DOWNWARD DEPARTURE
AND SENTENCING RECOMMENDATION
The United States respectfully moves, pursuant to Section
5K1.1 of the United States Sentencing Guidelines, that the Court
impose a sentence below the level otherwise established by the
Federal Sentencing Guidelines in this case, so as to reflect the
defendant Diane Reed’s substantial assistance in the investigation
and prosecution of another person who committed criminal offenses.
For reasons noted below, the government submits that the defendant
has provided substantial assistance warranting a downward departure
from her applicable, advisory guidelines sentencing range of 4 to
10 months under the Federal Sentencing Guidelines.
The government
recommends, based on the defendant's substantial assistance and in
accordance with the plea agreement signed by the parties, that the
defendant be sentenced to a period of unsupervised probation for
one year and a $200 mandatory special assessment fee.
This is a
one level departure from the applicable guidelines range, and it is
appropriate and reasonable given the extent, value and timeliness
of the defendant’s substantial assistance.
Page 2 Case 1:03-cr-10399-WGY
Document
Filed 02/05/
Page 2 of
In support of this recommendation, the government submits that
Mrs. Reed substantially assisted law enforcement authorities when
she was first approached by Special Agents of the Internal Revenue
Service (“IRS”), voluntarily agreeing to an interview and then
assisting in the investigation.
During her first meeting with
government authorities, Mrs. Reed gave a complete and truthful
proffer to the government, admitting her criminal conduct, and
providing incriminating evidence against the mastermind of an
extensive tax evasion scheme, George Schussel (“Schussel”), her
former employer and owner of Digital Consulting, Inc. (“DCI”).During the proffer session, Mrs. Reed, who had been the controller
at DCI, provided credible and crucial evidence against Schussel
regarding his diversion of millions of dollars to an account he
controlled in Bermuda to avoid paying taxes.
After the first
proffer session, Mrs. Reed met several times with investigators to
review voluminous documents and to assist in the investigation.
In
addition
to
meeting
with
the
government
on
numerous
occasions, Mrs. Reed testified under oath, in two proceedings prior
to trial, including an evidentiary hearing relating to motions to
suppress
evidence
allegedly
protected
by
the
attorney-client

After a jury trial, Schussel was convicted on January 25,
2007 of conspiracy and tax evasion.
Mrs. Reed also provided incriminating evidence against
Ronald Gomes, the former President of DCI, who also cooperated in
the investigation of Schussel and has since pled guilty before
Judge Nancy Gertner.
Page 3 Case 1:03-cr-10399-WGY
privilege.
Document
Filed 02/05/
Page 3 of
Mrs. Reed assisted the government in establishing the
crime-fraud exception regarding documents that were the subject of
motions to suppress.
trial of Schussel.
These documents were instrumental at the
More importantly, Mrs. Reed testified at the
trial for four days.
Prior to her testimony, she met with the
government to prepare and review numerous documents that were
introduced into evidence at trial.
Her testimony was essential to
the government’s case given that as the former controller for DCI
and Schussel’s right hand person for 18 years, she was able to
establish his tax evasion scheme and continued efforts by Schussel
to conceal the scheme throughout the conspiracy which lasted from
1988 through 1998.
Mrs. Reed’s truthful, accurate, and complete
testimony at trial was crucial in obtaining the guilty verdict
against Schussel.
Throughout the investigation and at various stages during
which she testified, Mrs. Reed was always forthcoming, accepting of
her role in the offense conduct, and genuinely remorseful for what
she had done.
Despite the millions of dollars that Schussel had
diverted to Bermuda to avoid paying both corporate and personal
taxes, Mrs. Reed did not receive any portion of the money diverted
to Bermuda.
The amount of unreported income which she received,
which caused a tax loss of approximately $18,066.00, has since been
completely paid to the IRS, including interest and penalties.
The quantum of departure that the government recommends is not
Page 4 Case 1:03-cr-10399-WGY
substantial
but
allows
Document
for
a
Filed 02/05/
probationary
Page 4 of
sentence.
This
recommendation reflects the government’s assessment of the quantity
and quality of Mrs. Reed’s assistance.
It takes into account the
fact that her cooperation resulted in the government’s successful
prosecution of Schussel, a sophisticated and successful businessman
who avoided paying millions of dollars to the IRS.
Additionally,
it is important to note that in comparison to the criminal conduct
of the other defendants in related cases (Schussel and Gomes), Mrs.
Reed’s financial benefit was significantly less. In all, Mrs. Reed
accepted
responsibility
throughout,
and
she
early
played
a
on,
was
critical
extremely
role
in
cooperative
bringing
the
prosecution of Schussel to a successful conclusion.
For all of the foregoing reasons, the government respectfully
requests this Court to allow the government’s motion for a downward
departure and to adopt the recommended sentence.
Respectfully submitted,
MICHAEL J. SULLIVAN
UNITED STATES ATTORNEY
By:
/s/ Carmen M. Ortiz
CARMEN M. ORTIZ
Assistant U.S. Attorney
Date: February 5,
Space
Issues Laws Cases Pro Articles Firms Entities
Issues Laws Cases Pro Articles Firms Entities
 
PlainSite
Sign Up
Need Password Help?