Andreas Markus Bachmann plea agreement

Ex-Swiss banker's guilty plea could spell more trouble for his customers and Credit Suisse

Case Document 17 Filed 03/12/14 Page 1 of 12 Page|D# 113

IN THIS UNITED STATES COURT so' Fm
01-' VIRGINIA

Alexandria Division

UNITED STATES OF

.

v. CRIMINAL NO.

BACI-IMANN.
aflda "Andrew Baeltman"
a/kfa "Antly Baehman"

Defendant.
PLEA

Dana]. Boente, Acting United States Attorney for the liastern Distriet ot'Virginia:_ Mark
D. .-'tssistant United States Attornejt-': Assistant Attorney General; Tax
Division. U.S. Department o1'.lustiee, Mark F. Daly. Trial Attorney: the defendant, Andreas
Baehmann; and tile defendanfs counsel have entered into an agreement pursuant to Rule 1 1 of
the Federal Rules oi' Criminal Procedure. The terms ofthe agreement are follows:

1. Offense and Maximum Penalties

The defendant agrees to plead guilty to Count One ofthe superseding indictment
charging the defendant with eonspiraey to defraud the Llnited States for the purpose oi' impeding.
impairing. obstructing, and defeating the lawful government functions ofthe Internal Revenue
Service of the Treasury Department, in violation oFTitle 18. United States Code, Section 3?l.
'l'he masinntm penalties For this offense are: a ma:~timum term of five years of imprisonment, a
line full restitution. a special assessment. and three years of supervisecl release. The
defendant understands that this sttpervised release term is in addition to any prison term the
defendant Ina}-' receive, antl that a violatiott otia term release could result in the

defendant being returned to prison For the full term of supervised release.

Case Document 17 Filed 03/12/14 Page 2 of 12 Page|D# 114

2. Factual Basis for the Plea
The defendant will plead guilty because the defendant is in fact guilty of the charged
offense. The defendant admits the facts set forth in the statement of facts filed with this plea
agreement and agrees that those facts establish guilt of the offense charged beyond a reasonable
doubt. The statement of facts, which is hereby incorporated into this plea agreement, constitutes
a stipulation of facts for purposes of Section lBl.2(a) of the Sentencing Guidelines.
3. Assistance and Advice of Counsel
The defendant is satisfied that the defendant's attomey has rendered effective assistance.
The defendant understands that by entering into this agreement, defendant surrenders certain
rights as provided in this agreement. The defendant understands that the rights of criminal
defendants include the following:
a. the right to plead not guilty and to persist in that plea;
b. the right to ajury trial;
c. the right to be represented by counsel - and if necessary have the court
appoint counsel -- at trial and at every other stage of the proceedings; and
d. the right at trial to confront and cross-examine adverse witnesses, to be
protected from compelled self--incrimination, to testify and present
evidence, and to compel the attendance of witnesses.
4. Role of the Court and the Probation Office
The defendant understands that the Court hasjurisdiction and authority to impose any
sentence within the statutory maximum described above but that the Court will determine the
defendant's actual sentence in accordance with Title 18, United States Code, Section 3553(a).

The defendant understands that the Court has not yet determined a sentence and that any estimate

Case Document 17 Filed 03/12/14 Page 3 of 12 Page|D# 115

of the advisory sentencing range under the U.S. Sentencing Commission's Sentencing
Guidelines Manual the defendant may have received from the defendant's counsel, the United
States, or the Probation Office, is a prediction, not a promise, and is not binding on the United
States, the Probation Office, or the Court. Additionally, pursuant to the Supreme Court's
decision in United States v. Booker, 543 U.S. 220, 125 S. Ct. 738 (2005), the Court, after
considering the factors set forth in Title I8, United States Code, Section 3553(a), may impose a
sentence above or below the advisory sentencing range, subject only to review by higher courts
for reasonableness. The United States makes no promise or representation conceming what
sentence the defendant will receive, and the defendant cannot withdraw a guilty plea based upon
the actual sentence.

5. In accordance with Rule 1 of the Federal Rules of Criminal Procedure,
the United States and the defendant will recommend to the Court that the following provisions of
the Sentencing Guidelines apply:

a. The base offense level for this offense is 22 pursuant to U.S.S.G.
2T1 2T1.l; and 2T4. 1(1) because the tax loss amount is more than $1,000,000
but less than or equal to $2,500,000; and

b. The base offense level is increased by 2 levels because the offense
involved sophisticated means.

c. The parties agree that they are free to argue other provisions of the

U.S.S.G. not referenced herein.

The United States and the defendant agree that the defendant has assisted the government
in the investigation and prosecution of the defendant's own misconduct by timely notifying

authorities of the defendant's intention to enter a plea of guilty, thereby permitting the

Case Document 17 Filed 03/12/14 Page 4 of 12 Page|D# 116

govemment to avoid preparing for trial and permitting the govemment and the Court to allocate
their resources efficiently. If the defendant qualifies for a two-level decrease in offense level
pursuant to U.S.S.G. 3E1 and the offense level prior to the operation of that section is a
level 16 or greater, the government agrees to file, pursuant to U.S.S.G. a motion prior
to, or at the time of, sentencing for an additional one-level decrease in the defendant's offense
level.

6. Waiver of Appeal, FOIA and Privacy Act Rights

The defendant also understands that Title 18, United States Code, Section 3742 affords a
defendant the right to appeal the sentence imposed. Nonetheless, the defendant knowingly
waives the right to appeal the conviction and any sentence within the statutory maximum
described above (or the manner in which that sentence was determined) on the grounds set forth
in Title 18, United States Code, Section 3742 or on any ground whatsoever, in exchange for the
concessions made by the United States in this plea agreement. This agreement does not affect
the rights or obligations of the United States as set forth in Title 18, United States Code, Section
3742(b). The defendant also hereby waives all rights, whether asserted directly or by a
representative, to request or receive fi'om any department or agency of the United States any
records pertaining to the investigation or prosecution of this case, including without limitation
any records that may be sought under the Freedom of Information Act, Title 5, United States

Code, Section 552, or the Privacy Act, Title 5, United States Code, Section 552a.

Case Document 17 Filed 03/12/14 Page 5 of 12 Page|D# 117

7. Special Assessment

Before sentencing in this case, the defendant agrees to pay a mandatory special
assessment of one hundred dollars ($100.00) per count of conviction.

8. Payment of Monetary Penalties

The defendant understands and agrees that, pursuant to Title 18, United States Code,
Section 3613, whatever monetary penalties are imposed by the Court will be due immediately
and subject to immediate enforcement by the United States as provided for in Section 3613.
Furthermore, within 14 days of a request, the defendant agrees to provide all of the defendant's
financial information to the United States and the Probation Office and, if requested, to
participate in a pre-sentencing debtor's examination and/or complete a financial statement under
penalty of perjury. If the Court imposes a schedule of payments, the defendant understands that
the schedule of payments is merely a minimum schedule of payments and not the only method,
nor a limitation on the methods, available to the United States to enforce the judgment. If the
defendant is incarcerated, the defendant agrees to voluntarily participate in the Bureau of
Prisons' Inmate Financial Responsibility Program, regardless of whether the Court specifically
directs participation or imposes a schedule of payments.

9. Restitution

Defendant agrees that restitution is mandatory pursuant to 18 U.S.C. Defendant
agrees to the entry of a Restitution Order for the full amount of the victim's losses. Pursuant to
18 U.S.C. 3663A(c)(2), the defendant agrees that an offense listed in 3663A(c)(1) gave rise
to this plea agreement and as such, victims of the conduct described in the charging instrument,

statement of facts or any related or similar conduct shall be entitled to restitution. Without

Case Document 17 Filed 03/12/14 Page 6 of 12 Page|D# 118

limiting the amount of restitution that the Court must impose, the Govemment is currently aware

that the following victims have suffered the following losses:

Victim Name/Address Amount of Restitution

IRS -- RACS

Attn.: Mail Stop 6261, Restitution
333 West Pershing Avenue
Kansas City, MO 64108

The parties acknowledge that determination of the identities, addresses and loss amounts
for all victims in this matter is a complicated and time consuming process. To that end,
defendant agrees, pursuant to 18 U.S.C. 3664(d)(5), that the court may defer the imposition of
restitution until after the sentencing; however, defendant specifically waives the 90 day provision
found at 18 U.S.C. 3664(d)(S) and consents to the entry of any orders pertaining to restitution
after sentencing without limitation.

If the Court orders the defendant to pay restitution to the IRS for the failure to pay tax,
either directly as part ofthe sentence or as a condition of supervised release, the IRS will use the
restitution order as the basis for a civil assessment. See 26 U.S.C. ?6301(a)(4). The defendant
does not have the right to challenge the amount of this assessment. See 26 U.S.C.
Neither the existence of a restitution payment schedule nor the defendant's
timely payment of restitution according to that schedule will preclude the IRS from

administrative collection of the restitution-based assessment, including levy and distraint under

26 U.S.C. ?633l.

Case Document 17 Filed 03/12/14 Page 7 of 12 Page|D# 119

10. Immunity from Further Prosecution in this District

The United States will not further criminally prosecute the defendant in the Eastem
District of Virginia for the specific conduct described in the superseding indictment or statement
of facts.

11. Waiver of Protections of Proffer Agreement

Defendant agrees that all protections contained in the proffer agreement dated January 8,
2014 are hereby waived. Defendant further agrees that the government may use all statements
provided by him, without limitation, in any proceeding brought by the govemment, including the
Internal Revenue Service, against the defendant.

12. Defendant's Cooperation

The defendant agrees to cooperate fully and truthfully with the United States, and provide
all information known to the defendant regarding any criminal activity as requested by the
government. In that regard:

a. The defendant agrees to testify truthfully and completely at any grand
juries, trials or other proceedings.

b. The defendant agrees to be reasonably available for debriefing and pre-
trial conferences as the United States may require.

c. The defendant agrees to provide all documents, records, writings, or
materials of any kind in the defendant's possession or under the
defendant's care, custody, or control relating directly or indirectly to all
areas of inquiry and investigation.

d. The defendant agrees that, at the request of the United States, the

defendant will voluntarily submit to polygraph examinations, and that the

Case Document 17 Filed 03/12/14 Page 8 of 12 Page|D# 120

United States will choose the polygraph examiner and specify the
procedures for the examinations.

e. The defendant agrees that the Statement of Facts is limited to information
to support the plea. The defendant will provide more detailed facts
relating to this case during ensuing debriefings.

f. The defendant is hereby on notice that the defendant may not violate any
federal, state, or local criminal law while cooperating with the
government, and that the govemment will, in its discretion, consider any
such violation in evaluating whether to file a motion for a downward
departure or reduction of sentence.

g. Nothing in this agreement places any obligation on the government to seek
the defendant's cooperation or assistance.

13. Use of Information Provided by the Defendant Under This Agreement

The United States will not use any truthful information provided pursuant to this
agreement in any criminal prosecution against the defendant in the Eastern District of Virginia,
except in any prosecution for a crime of violence or conspiracy to commit, or aiding and
abetting, a crime of violence (as defined in Title 18, United States Code, Section 16). Pursuant
to U.S.S.G. section lBl.8, no truthful information that the defendant provides under this
agreement will be used in determining the applicable guideline range, except as provided in
section 1B1 Nothing in this plea agreement, however, restricts the Court's or Probation
Officer's access to information and records in the possession of the United States. Furthermore,
nothing in this agreement prevents the government in any way from prosecuting the defendant

should the defendant knowingly provide false, untruthful, or perj urious information or testimony,

Case Document 17 Filed 03/12/14 Page 9 of 12 Page|D# 121

or from using information provided by the defendant in furtherance of any forfeiture action,
whether criminal or civil, administrative orjudicial. The United States will bring this plea
agreement and the full extent of the defendant's cooperation to the attention of other prosecuting
offices if requested.

14. Defendant Must Provide Full, Complete and Truthful Cooperation

This plea agreement is not conditioned upon charges being brought against any other
individual. This plea agreement is not conditioned upon any outcome in any pending
investigation. This plea agreement is not conditioned upon any result in any future prosecution
which may occur because of the defendant's cooperation. This plea agreement is not
conditioned upon any result in any future grand jury presentation or trial involving charges
resulting from this investigation. This plea agreement is conditioned upon the defendant
providing full, complete and truthful cooperation.

15. Motion for a Downward Departure

The parties agree that the United States reserves the right to seek any departure from the
applicable sentencing guidelines, pursuant to Section 5Kl.1 of the Sentencing Guidelines and
Policy Statements, or any reduction of sentence pursuant to Rule 35(b) of the Federal Rules of
Criminal Procedure, if, in its sole discretion, the United States determines that such a departure
or reduction of sentence is appropriate.

16. Breach of the Plea Agreement and Remedies

This agreement is effective when signed by the defendant, the defendant's attorney, and
an attomey for the United States. The defendant agrees to entry of this plea agreement at the
date and time scheduled with the Court by the United States (in consultation with the defendant's

attomey). If the defendant withdraws from this agreement, or commits or attempts to commit

Case Document 17 Filed 03/12/14 Page 10 of 12 Page|D# 122

any additional federal, state or local crimes, or intentionally gives materially false, incomplete, or

misleading testimony or information, or otherwise violates any provision of this agreement, then:

a!

The United States will be released from its obligations under this
agreement, including any obligation to seek a downward departure or a
reduction in sentence. The defendant, however, may not withdraw the
guilty plea entered pursuant to this agreement;

The defendant will be subject to prosecution for any federal criminal
violation, including, but not limited to, perjury and obstruction of justice,
that is not time-barred by the applicable statute of limitations on the date
this agreement is signed. Notwithstanding the subsequent expiration of
the statute of limitations, in any such prosecution, the defendant agrees to
waive any statute-of-limitations defense; and

Any prosecution, including the prosecution that is the subject of this
agreement, may be premised upon any information provided, or
statements made, by the defendant, and all such information, statements,
and leads derived therefrom may be used against the defendant. The
defendant waives any right to claim that statements made before or after
the date of this agreement, including the statement of facts accompanying
this agreement or adopted by the defendant and any other statements made
pursuant to this or any other agreement with the United States, should be
excluded or suppressed under Fed. R. Evid. 410, Fed. R. Crim. P. ll(i),
the Sentencing Guidelines or any other provision of the Constitution or

federal law.

10

Case Document 17 Filed 03/12/14 Page 11 of 12 Page|D# 123

Any alleged breach of this agreement by either party shall be determined by the Court in
an appropriate proceeding at which the disclosures and documentary evidence shall
be admissible and at which the moving pt1t'l}' shall be required to establish a breach of the plea
agreement by a preponderance ofthe The proceeding established bf.' this paragraph
does not apply, Itowever, to the decision ot'the United States tvhether to tile a motion based on
"substantial assistance" as that phrase is used in Rule 35(b) ofthe Federal Rules of Criminal
Procedure and Section 5Kl.l of the Sentencing Guidelines and Policy Statements. The
defendant agrees that the decision vvhether to tile such a motion rests in the sole discretion of the
United States.

17. Nature of the Agreement and Modifications

This written agreement constitutes the complete plea agreement between the United
States, the defendant, and the del'endant's counsel. The defendant and the tlefendanfs attorney
acknowledge that no threats, promises, or representations have been made. nor agreements
reached, other than those set forth in writing in this plea agreement, to cause the defendant to
plead guilty. Any modification ofthis plea agreement shall be valid only as set forth in writing

in a supplemental or revised plea agreement signed by all parties.

Dana Boente Katitrgm Keneall}-'
Acting United States Attorney Assistant Attorney General
Tax Division

By:

Mark D. L_vtle Mark F. I)al;v

Assistant United States Attorney Senior Litigation Counsel
Nanette L. Davis
Assistant Section Chief - NC ES

By:

Case Document 17 Filed 03/12/14 Page 12 of 12 Page|D# 124

Sianature: I hereby agree that I have eonsulted with my attorney and fully
understand all rights with respect to the pending criminal superseding indictment. I-"urther, I
fully understand all rights with respect to Title 18. United States Code. Section 3553 and the
provisions ol'the Sentencing Guidelines Manna] that may apply in my ease. I have read this plea
agreement and carefully reviewed every part ofit with my attorney. I understand this agreement

and voluntarily agree to it.

Date: /ilk

Mr. Andreas Marcus Baehmann
Deleitdtitit

Defense Counsel Sianature: I am counsel [er the defendant in this ease. I have fully
explained to the defendant the del'endant's rights with respect to the pending superseding
indiettnent. Further, I have Title 18. United States Code, Section 3553 and the
Sentencing (iuidelines Manual. and I have fully explained to the Lleientlant the provisions that
may apply in this case. I haste carefully' every part of this plea agreement with the
defendant. To my k11owletlg_e_. the defendant's decision to enter into this agreement is an

informed and voluntary one.

Date: 3/if/lLl

A.
Ben A. O'Neil
Counsel [or the Defendant