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IN THE UNITED STATES DISTRICT COURTFOR TH E W ESTERN DISTRICT OF VIRGINIA

ABINGDON DIVISION

UNITED STATES OF AM ERICA

V. case No. J ? l .F1 e l I m o f

M ICHAEL CLARK

PLEA AGREEM ENT

1 have agreed to enter into a plea agreem ent with the United States of Am erica,pursuant to Rule 1 1 of the Federal Rules of Crim inal Procedure. The terms andconditions of this agreement are as follows:

A. CHARGEIS) TO W HICH I AM PLEADING GUILTY AND W AW ER OFRIGHTS

1. The Charees and Potential Punishm ent

My attorney has informed me of the nature of the chargets) and the elements ofthe chargets) that must be proved by the United States beyond a reasonable doubt beforeI could be found guilty as charged.

l agree to plead guilty to an Inform ation, which is a charge brought by the UnitedStates Attorney as opposed to one returned by a Grand Jury. I am waiving and giving upmy right to be charged by lndictment and have a Grand Jury vote on my probable guilt.

I will enter a plea of guilty to Count 1 of the lnformation.

Count 1 charges me with engaging in a conspiracy to defraud the lnternal RevenueService, in violation of 18 U.S.C. j 371. The maximum statutory penalty is a fine of upto $250,000 and/or imprisonment for a term of five years, plus a term of supervisedrelease up to three years.

l understand restitution may be ordered, my assets may be subject to forfeiture,and fees may be imposed to pay for incarceration and supervised release. ln addition, a

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$100 special assessment, pursuant to 18 U.S.C. j 3013, will be imposed per felony countof conviction. I further understand my supervised release may be revoked if l violate itsterm s and conditions. I understand a violation of supervised release increases thepossible period of incarceration.

l am pleading guilty as described above because 1 am in fact guilty and because 1believe it is in m y best interest to do so and not because of any threats or promises. Therehas been no prom ise made whatsoever by any agent or employee of the United States tome as to what the final disposition of this matter will be.

2. W aiver of Constitutional Rizhts Upon a Plea of Guiltv

1 acknowledge l have had al1 of my rights explained to me and l expresslyrecognize 1 have the following constitutional rights and, by voluntarily pleading guilty, Iknowingly waive and give up these valuable constitutional rights:

a. The right to plead not guilty and persist in that plea;

b. The right to a syeedy and public jury trial;c. The right to asslstance of counsel at that trial and in any subsequent appeal;d. The right to rem ain silent at trial;e. The right to testify at trial;f. The right to confront and cross-examine witnesses called by the government;g. The right to present evidence and w itnesses in my own behalf;h. The right to compulsory process of the court;i. The right to compel the attendance of witnesses at trial;j. The right to be presumed innocent;k. The right to a unanim ous guilty verdict; and1. The right to appeal a guilty verdict.

B. SENTENCING PROVISIONS

1. General M atters

I understand the determination of what sentence should be imposed, within theconfines of any applicable statutory minim um s and maximum s, is in the sole discretion of

the Court subject to its consideration of the United States Sentencing Guidelines(ûçguidelines'' or ç$U.S.S.G'') and the factors set forth at 18 U.S.C. j 3553(*. 1 understandl will have an opportunity to review a copy of my presentence report in advance of mysentencing hearing and may file objections, as appropriate. l will have an opportunity atmy sentencing hearing to present evidence, bring witnesses, cross-examine any witnesses

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the government calls to testify, and argue to the Court whatshould be.

an appropriate sentence

l understand 1 will not be eligible for parole during any term of imprisonm entimposed. 1 have discussed sentencing issues with my attom ey and realize there is asubstantial likelihood I will be incarcerated.

l understand the Court is not bound by any recommendation or stipulation andmay sentence me up to the statutory maximum . I understand I will not be allowed towithdraw my plea of guilty if the Court disregards the stipulations and/orrecom mendations set forth in the plea agreement. I understand the governm ent will

object to any sentence below the guideline range.

2. Sentencine Guidelines

I stipulate and agree that all matters pertaining to any of the counts of the chargingdocumentts), including any dismissed counts, are relevant conduct for pumoses ofsentencing.

The parties agree the 2014 edition of the United States Sentencing GuidelinesManual applies to my offenses. I stipulate that the following guideline sectionts) areapplicable to my conduct:

2T4.1(D) 12 Offense involved more than $12,500 in tax loss

The United States stipulates that the guideline sectionts) set forth in this sectionshould apply to my conduct.

l understand other guideline sections may be applicable to my case and the UnitedStates and l will be free to argue whether these sections should or should not apply; to theextent the arguments are not inconsistent with the stipulations, recomm endations andtel'm s set forth in this plea agreem ent.

The United States agrees to recommend a sentence within the applicable guideline

range.

1 agree to accept responsibility for my conduct. lf l comply with my obligationsunder this plea agreement and accept responslbility for my conduct, the United States willrecommend the Court grant me a two-level reduction in my offense level, pursuant to

U.S.S.G. j 3E1.1(a) and, if applicable, at sentencing, will move that l receive a one-level

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reduction in my offense level, pursuant to U.S.S.G. j 3E1.1(b). However, l stipulate thatif I fail to accept responsibility for my conduct or fail to comply with any provision ofthis plea agreement, l should not receive credit for acceptance of responsibility. ln

addition, I understand and agree the United States will have a continuing objection to mereceiving credit for acceptance of responsibility until I have testified truthfully at mysentencing hearing, if called upon to testify. I agree the United States will not be required

to make any other notice of its objection on this basis.

3. Substantial Assistance

1 understand the United States retains a1l of its rights pursuant to Fed. R. Crim . P.

35(b), U.S.S.G. j5K1. 1 and 18 U.S.C. j 3553(e). l understand even if l fully cooperatewith Iaw enforcement, the United States is under no obligation to make a m otion for thereduction of my sentence. l understand if the United States m akes a motion for areduction in my sentence, the Court, after hearing the evidence, will determine how muchof a departure, if any, l should be given.

4. M onetary Obligations

a. Special Assessm ents. Fines and Restitution

I understand persons convicted of crimes are required to pay a mandatoryassessment of $100.00 per felony count of conviction. 1 agree l will submit to the U.S.Clerk's Office, a certified check, money order, or attorney's trust check, made payable tothe llclerk, U.S. District Court'' for the total amount due for mandatory assessments priorto entering my plea of guilty.

l agree to pay restitution for the entire scope of my crim inal conduct, including,but not limited to, a11 matters included as relevant conduct. I agree to pay restitution toBristol Virginia Utilities Authority in an am ount of $110,065.00. ln addition, I agreeto pay any restitution required by law, including, but not limited to, am ounts due pursuantto 18 USC jj 2259, 3663, and/or 3663A. 1 understand and agree a requirement l payrestitution for a1l of the above-stated matters will be imposed upon me as part of any final

judgment in this matter.

l further agree to make good faith efforts toward payment of all mandatoryassessments, restitution and fines, with whatever means I have at my disposal. l agreefailure to do so will constitute a violation of this agreement. l will execute anydocuments necessary to release the funds l have in any repository, bank, investm ent,other financial institution, or any other location in order to make partial or total payment

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toward the m andatory assessm ents, restitution and fines imposed in my case.

1 fully understand restitution and forfeiture are separate financial obligationswhich m ay be imposed upon a criminal defendant. l further understand there is a processwithin the Department of Justice whereby, in certain circumstances, forfeited funds maybe applied to restitution obligations. I understand no one has made any promises to methat such a process will result in a decrease in my restitution obligations in this case.

l understand and agree, pursuant to 18 U.S.C. jj 36 13 and 3664(m), whatevermonetary penalties are imposed by the Court will be due immediately and subject toimm ediate enforcement by the United States as provided for by statute. I understand ifthe Court imposes a schedule of payments, that schedule is only a m inimum schedule ofpaym ents and not the only method, nor a limitation on the methods, available to the

United States to enforce the judgment.

l agree to grant the United States a wage assignment, liquidate assets, or completeany other tasks which will result in immediate payment in full, or payment in the shortesttime in which full payment can be reasonably made as required under 18 U.S.C. j35724d).

l agree the following provisions, or words of similar effect, should be included asconditions of probation and/or supervised release: (1) çs-l-he defendant shall notify theFinancial Litigation Unit, United States Attorney's Office, in writing, of any interest inproperty obtained, directly or indirectly, including any interest obtained under any othernam e, or entity, including a trust, partnership or corporation aher the execution of this

agreement until all fines, restitution, money judgments and monetary assessments arepaid in full'' and (2) iv-f'he Defendant shall notify the Financial Litigation Unit, UnitedStates Attorney's Office, in writing, at least 30 days prior to transfening any interest inproperty owned directly or indirectly by Defendant, including any interest held or ownedunder any other name or entity, including trusts, partnership and/or corporations until allfines, restitution, money judgments and monetary assessments are paid in 111.'5

The parties will also jointly recommend that as a condition of probation orsupervised release, Defendant will notify the Financial Litigation Unit, United StatesAttorney's Office, before Defendant transfers any interest in property owned directly orindirectly by Defendant, including any interest held or owned under any other name orentity, including trusts, partnership and/or corporations. See 18 U.S.C. j 3664411), (n).

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Regardless of whether or not the Court specificalll directs participation orimposes a schedule of payments, 1 agree to fully participate in lnmate employment underany available or recommended program s operated by the Bureau of Prisons.

1 agree any payments made by me shall be applied fully to the non-joint andseveral portion of my outstanding restitution balance until the non-joint and severalportion of restitution is paid in full, unless the Court determines that to do so would cause

a hardship to a victim of the offensets).

b. Duty to M ake Financial Disclosures

1 understand in this case there is a gossibility substantial fines and/or restitutionmay be imposed. ln order to assist the Unlted States as to any recommendation and inany necessary collection of those sum s, I agree, if requested by the United States, toprovide a complete and truthful financial statement to the United States Attorney's Oftice,

within 30 days of the request or 3 days grior to sentencing, whichever is earlier, detailingall incom e, expenditures, assets, liabilitles, gifts and conveyances by myself, my spouseand my dependent children and any corporation, partnership or other entity in which Ihold or have held an interest, for the period starting on January 1st of the year prior to theyear my offense began and continuing through the date of the statement. This financialstatem ent shall be submitted in a form acceptable to the United States Attom ey's office.

From the time of the signing of this agreement or the date I sign the financialstatement, whichever is earlier, I agree not to convey anything of value to any personwithout the authorization of the United States Attorney's Office. l agree to take and passa polygraph examination conducted by a qualified law enforcement examiner selected bythe United States Attorney's Office, if requested to do so, concerning the accuracy of myfinancial statem ent.

c. Understandin: of Collection M atters

I understand:

as part of the judgment in this case I will be ordered to pay one or moremonetary obligations;

2. paym ent should be made as ordered by the Court;3. l must mail payments, by cashier's check or money order, payable to the

''Clerk, U.S. District Court'' to: 210 Franklin Road, S.W . Room 540, Roanoke,Virginia 24006; and include my nam e and court num ber on the check ormoney order;

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4. interest (unless waived by the Court) and penalties must be imposed for late ormissed payments;

5. the United States may file liens on my real and personal property that willremain in place until monetary obligations are paid in full, or until liens expire(the later of 20 years from date of sentencing or release from incarceration);

6. if l retain counsel to represent m e regarding the United States' efforts to collectany of my monetary obligations, l will imm ediately notify the United StatesAttorney's OfGce, ATTN: Financial Litigation Unit, P.O. Box 1709, Roanoke,Virginia 24008-1709, in writing, of the fact of m y legal representation; and

1, or my attorney if an attorney will represent me regarding collection ofmonetary obligatlons, can contact the U.S. Attorney's Office's FinancialLitigation Unit at 540/857-2259.

C. ADDITIONAL M ATTERS

1. W aiver of Presence of Counsel

l understand my attorney may be present at any contact with any governmentpersonnel. However, by my signature below, I expressly waive the presence of counselduring such contacts and agree government personnel may contact me without the priorapproval of m y attorney. At any tim e during such contacts with government personnel, lmay request the presence of my attorney and the contact will be suspended until myattorney anives or indicates that the contact may continue.

2. W aiver of Riaht to Appeal

Knowing that l have a right of direct appeal of my sentence under 18 U.S.C. j3742(a) and the grounds listed therein, l exgressly waive the right to appeal my sentenceon those grounds or on any ground, In addltion, I hereby waive my right of appeal as toany and all other issues in this m atter and agree l will not file a notice of appeal, 1 amknowingly and voluntarily waiving any right to appeal. By signing this agreement, I amexplicitly and irrevocably directing my attorney not to file a notice of appeal.Notwithstanding any other Ianguage to the contrary, I am not waiving my right to

apqeal or to have my attorney .#/e a notice of appeal, as to any issue which cannot bewatved, by Iaw. l understand the United States expressly reserves al1 of its rights toappeal. l agree and understand if I flle any court document (except for an appealbased on an issue that cannot be waived, by Iaw, or a collateral attack based onineffective assistance of counsel) seelting to disturb, in any way, any order imposedin my case such action shall constitute a failure to com ply with a provision of this

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agreem ent.

3. W aiver of Riaht to Collaterallv Attack

l waive any right l may have to collaterally attack, in any future proceeding, anyorder issued in this matter, unless such attack is based on ineffective assistance ofcounsel, and agree l will not file any document which seeks to disturb any such order,unless such filing is based on ineffective assistance of counsel. I agree and understand

that if I flle any court document (except for an appeal based on an issue nototherwise waived in this agreem ent; an appeal based on an issue that cannot be

waived, by Iaw; or a collateral attack based on ineffective assistance of counsel)seelting to disturb, in any way, any order im posed in my case, such action shallconstitute a failure to com ply with a provision of this agreem ent.

4. Information Access W aiver

I knowingly and voluntarily agree to waive a1l rights, whether asserted directly orby a representative, to request or receive from any department or agency of the UnltedStates any records pertaining to the investigation or prosecution of this case, includingwithout lim itation any records that may be sought under the Freedom of lnformation Act,5 U.S.C. j552, or the Privacy Act of 1974, 5 U.S.C. j552a.

5. W aiver of W itness Fee

l agree to waive aIl rights, claim s or interest in any witness fee I may be eligible toreceive pursuant to 28 U.S.C. j 182 1, for my appearance at any Grand Jury, witnessCfmference Or Coul't Proceeding.

6. Abandonmqpt of Seized Item s

By signing this plea agreement, I hereby abandon my interest in, and consent tothe official use, destruction or other disposition of each item obtained by any lawenforcement agency during the course of the investigation, unless such item isspecifically provided for in another provision of this plea agreement. l further waive anyand a1l notice of any proceeding to implement the offcial use, destrudion, abandonment,or other disposition of such item s.

Deportation

l understand that, if I am not a citizen of the United States, l may be subject to

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dejortation from the United Stateswhlch 1 am pleading guilty.

as a result of my conviction for the offensets) to

8. Denial of Federal Bqpeflts

At the discretion of the court, l understand l may also be denied any or all federal

benefits, as that term is defined in 2 1 U.S.C. j 862, (a) for up to tlve years if this is myfirst conviction of a federal or state offense consisting of the distribution of controlledsubstances, or up to one year if this is my first conviction of a federal or state offenseinvolving the possession of a controlled substance; or (b) for up to ten years if this is mysecond conviction of a federal or state offense consisting of the distribution of controlledsubstances, or up to 5ve years if this is my second or more conviction of a federal or stateoffense involving the possession of a controlled substance. lf this is my third or moreconviction of a federal or state offense consisting of the distribution of controlledsubstances, l understand 1 could be permanently ineligible for a11 federal benefits, as that

term is defined in 21 U.S.C. j 862(d).

9. Admissibilitv of Statem ents

I understand any statements l make (ipcluding this plea agreement, and myadmission of guilt) during or in preparation for any guilty plea hearing, sentencinghearing, or other hearing and any statements l make or have made to law enforcementagents, in any setting (including during a proffer), may be used against me in this or anyother proceeding. I knowingly waive any right l m ay have under the Constitution, anystatute, rule or other source of 1aw to have such statements, or evidence derived fromsuch statements, suppressed or excluded from being admitted into evidence and stipulatethat such statem ents can be admitted into evidence.

lo.Additional O blieations

l agree to cooperate fully with law enforcem ent agents and will disclose to them ,at any time requested by them , my knowledge of any crim inal activity. I agree 1 willtestify truthfully. I hereby waive any right I may have to refuse to answer any questions.I agree to be debriefed by 1aw enforcement agents concerning any matter. l agree if theUnited States has any doubts concerning my truthfulness, 1 w ill take and pass a polygraphexam ination administered by an examiner chosen by the United States Attorney's Officeas to any matters alleged in the charging documentts) and/or anything discussed in thedebriesngs. l understand it is a felony offense to make false statements to lawenforcem ent agents or to testify falsely.

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l agree not to comm it any of the following acts:

* attempt to withdraw my guilty plea;* deny l committed any crime to which l have pled guilty;

* make or adopt any arguments or objections to the presentence report thatare inconsistent wlth this plea agreement;

* obstructjustice;* fail to comply with any provision of this plea agreement;* commit any other crim e;* m ake a false statement; or* fail to enter my plea of guilty when scheduled to do so, unless a

continuance is agreed to by the United States Attorney's Office and grantedby the Court.

D. REM EDIES AVAILABLE TO TH E UNITED STATES

l hereby stipulate and agree that the United States Attorney's office may, at itselection, pursue any or all of the following remedies if I fail to comply with any provisionof this agreement: (a) declare this plea agreement void; (b) refuse to dismiss any charges;(c) reinstate any dismissed charges; (d) file new charges; (e) withdraw any substantialassistance motion m ade, regardless of whether substantial assistance has been performed;(9 refuse to abide by any provision, stipulations, and/or recommendations contained inthis plea agreement; or (g) take any other action provided for under this agreement or bystatute, regulation or court rule.

ln addition, l agree if, for any reason, my conviction is set aside, or l fail tocomply with any obligation under the plea agreement, the United States may file, byindictment or information, any charges against m e which were filed and/or could havebeen filed concerning the m atters involved in the instant investigation. I hereby waivemy right under Federal Rule of Criminal Procedure 7 to be proceeded against byindictment and consent to the filing of an information against me concerning any suchcharges. I also hereby waive any statute of lim itations defense as to any such charges.

The remedies set forth above are cumulative and not mutually exclusive. TheUnited States' election of any of these remedies, other than declaring this plea agreem entvoid, does not, in any way, terminate my obligation to comply with the terms of the pleaagreem ent. The use of çsif'' in this section does not mean Siif, and only if.''

E. GENEM L PROVISIONS

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1. Limitation of Aereem ent

This agreement only binds the United States Attorney's Office for the W esternDistrict of Virginia. lt does not bind any state or local prosecutor, other United StatesAttorney's Office or other office or agency of the United States Govem m ent, including,but not limited to, the Tax Division of the United States Departm ent of Justice, or thelnternal Revenue Service of the United States Department of the Treasury. Theseindividuals and agencies remain free to prosecute me for any offensets) committed withintheir respectivejurisdictions.

2. Effect of M v Sienature

1 understand my signature on this agreem ent constitutes a binding offer by me toenter into this agreement. l understand the United States has not accepted my offer untilit signs the agreement.

3. .Effective Representation

l have discussed the terms of the foregoing plea agreem ent and all m atterspertaining to the charges against me with my attorney and am fully satisfied with myattorney and my attom ey's advice. At this time, 1 have no dissatisfaction or complaintwith my attorney's representation. l agree to make known to the Court no later than atthe tim e of sentencing any dissatisfaction or complaint l may have with my attorney'srepresentation.

4. W aiver of Claim s

l agree to make known to the Court no later than at the time of sentencing anyclaim of m isconduct or claim of an ethical, civil or criminal violation by any governmentattorney, agent, employee, or contractor. l hereby waive my right to make any suchclaim I fail to bring to the Court's attention prior to sentencing.

5. Final M atters

1 understand the Court is not bound by any recomm endations or stipulationscontained in this agreement and may sentence me up to the maximum provided by law .

l understand if the sentence is more severe than I expected, l will have no right tow ithdraw m y guilty plea.

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I understand a thorough presentence investigation will be conducted andsentencing recommendations independent of the United States Attorney's Oftsce will bemade by the presentence preparer, which the Court may adopt or take into consideration.l understand any calculation regarding the guidelines by the United States Attorney'sOffice or by my attorney is speculative and is not binding upon the Court, the ProbationOffice or the United States Attorney's Office. No guarantee has been made by the UnitedStates Attom ey's Office regarding the effect of the guidelines on my case.

l understand the prosecution will be free to allocute or describe the nature of thisoffense and the evidence in this case and, in a11 likelihood, will recommend l receive asubstantial sentence.

l understand the United States retains the right, notwithstanding any provision inthis plea agreem ent, to infonn the Probation Ofsce and the Court of all relevant facts, toaddress the Court with respect to the nature and seriousness of the offensets), to respondto any questions raised by the Court, to correct any inaccuracies or inadequacies in thepresentence report and to respond to any statements made to the Court by or on behalf ofthe defendant.

I willingly stipulate there is a sufficient factual basis to support each and everymaterial factual allegation contained within the charging documentts) to which I ampleading guilty.

1 understand this agreem ent does not apply to any crimes or charges not addressedin this agreement. I understand if l should testify falsely in this or in a related proceedingI may be prosecuted for perjury and statements l may have given authorities pursuant tothis agreem ent may be used against me in such a proceeding.

l understand my attorney will be free to argue any mitigating factors on my behalf;to the extent they are not inconsistent with the term s of this agreement. l understand 1will have an opportunity to personally address the Court prior to sentence being imposed.

This writing sets forth the entire understanding between the parties and constitutesthe complete plea agreem ent between the United States Attorney for the W estern Districtof Virginia and m e, and no other additional term s or agreements shall be entered exceptand unless those other terms or agreem ents are in writing and signed by the parties. Thisplea agreement supersedes a11 prior understandings, promises, agreements, or conditions,if any, between the United States and me.

1 have consulted with my attorney and fully understand all my rights. I have read

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this plea agreement and carefully reviewed every part of it with my attorney. 1understand this agreement and l voluntarily agree to it. I have not been coerced,threatened, or prom ised anything other than the terms of this plea agreement, describedabove, in exchange for my plea of guilty. Being aware of a1l of the possibleconsequences of my plea, 1 have independently decided to enter this plea of my own freewill, and am affirming that agreem ent on this date and by my signature below.

oate: 3/J5 /J>p s' #M ichael Clark, Defendant

l have fully çxplained all rights available to my client with respect to the offenseslisted in the pendlng charging documentts). l have carefully reviewed every part of thisplea agreement with my client. To my knowledge, my client's decision to enter into thisagreem ent is an informed and voluntary one.

I understand l m ay be present at any contact with my client by any governm entpersonnel. However, by my signature below, I expressly consent to direct contact withmy client, without my prior approval, by government personnel, including but not limitedto, in regard to the collection of monetary am ounts owed in this and all related matters.At any time during such contacts with govem ment personnel, my client may request mypresence and the contact will be suspended until I anive or indicate that the contact maycontinue.

lf I will continue to represent my client regarding the United States' efforts tocollect any monetary obligations, I will notify the United States Attorney's Office,ATTN : Financial Litigation Unit, P.O. Box 1709, Roanoke, Virginia 24008-1709, inwriting, of the fact of my continued legal representation within 10 days of the entry ofjudgment in this case.

'</zT/J/ wIlate: %.- (.) /Tim Hudson, sq.Counsel for Defendant

Zacha T. LeeAssist nt United States AttorneyVirg' ia State Bar No. 47087

F aC ?<-Date:

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