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Case 1:16-cr-00776-VEC Document 914 Filed 11/19/18 Page 1 of 50
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Case 1:16-cr-00776-VEC Document 914-1 Filed 11/19/18 Page 1 of 48
EXHIBIT 1
Exhibit Contents
1 Index
2 Paula Kaloyeros
3 Nicholas Kaloyeros
4 Alexander Kaloyeros
5 Eugene and Julia Woller
6 Eddy Kaloyeros
7 Mary Graham
8 Genevieve Kane
9 Bushra Alam
10 Karl Barth
11 Spyridon Galis
12 Olga Bogdanova
13 Pradeep Haldar
14 Barry Arkles
15 Chris Wessell
16 Leah Slocum
17 Jessica Decker
18 Beverly Bardequez
19 Alyson Willsie
20 Brian Corrigan
21 Pierre Torch
22 John Cavalier
23 Archie Blais
24 Juliano Caprara
25 Ron Campano
26 Zach Wheeler
27 Wayne Flores
28 Ron Goldblatt
29 Ottavio Nicotina
30 Joseph Valenti
31 Gary Lee
32 Alex Van Cott
33 Fred Dicker
34 Lawrence Kotlow
35 Larry Davis
36 John Scheib
37 Donald Wilcock
38 David Pirri
39 David Catalfamo
40 Danielle King
41 Tom Louis
42 Katarzyna Topol
43 Kevin Ryan
44 Robert Gretschel
45 Nicole Otty
46 Carl J. Kempf
47 Tush Nikollaj
48 Scottpatrick Sellito
49 Rutkoske Transcript
50 Graham Transcript
51 Excerpts from Tanner Transcript
EXHIBIT 2
EXHIBIT 3
Nick Kaloyeros
November 7, 2018
Honorable Valerie E. Caproni

United States District Judge
South District of New York
40 Foley Square
New York, NY 10007
Your honor, my name is Nick Kaloyeros, I’m a Senior Designer for a videogame studio
by the name of PUBG Corp. located in Saratoga Springs, NY and I’m also Dr. Alain
Kaloyeros’ eldest son. I’ve spent the last twenty five years watching my father grow from
a humble immigrant, to an established physics professor and then to a man known
throughout the Capital Region. To me he’s only ever been known as “Dad”.
If you ask people about my father, they’ll tell you how he famously worked late nights to
build industry in a region starving for it. What they can’t tell you is that despite those late
nights, he never missed a day of driving my brother and I to grade school as far back as
I can remember. My father’s coworkers will talk about how intelligent and
knowledgeable he is in so many areas. However, they can’t tell you how many times he
would spend the night helping us with our math or science homework. His friends might
tell you about his infectious personality or his flamboyant sense of humor, but you won’t
hear the stories of how he could make his sons laugh and forget their worries after a
rough day.
I also believe my dad is a hero. Not because he’s smart and has accomplished many
things over his career, but because of what he’s had to overcome. This is a man who
escaped capture and torture in Lebanon and came to the US without a penny to his
name. This is a man who despite having a rough childhood void of fatherly guidance
managed to raise a family as a supportive father. My dad has lived through the some of
the worst scenarios life can offer and managed to write his own success story on the
back of his hard work and determination. If you ask me, that’s his true legacy. It is a
legacy that I strive to live up to in my own personal and professional life. I can only
hope to have made a fraction of the positive impact he’s had on our world when I am his
age. He makes me immensely proud.
Starting when we were young, my dad taught us the importance of effort and
responsibility. He raised us to respect the rules and appreciate how fortunate we were.
During weeknights when he wasn’t working or sleeping, he would always take the time
to walk Alex and I through our homework if we ran into problems, no matter how long it
took. He often stressed the importance of guiding us through solutions to problems and
not immediately giving us the answers. To him, it was imperative we were the architects
of our own success and didn’t seek shortcuts.
In addition to being a great leader and mentor, my father was also very caring and
generous towards us as kids. I fondly remember when he would get up early every
Sunday and make us pancakes. A good report card would often mean a trip to the mall
and a reward for good progress. He would make an effort to make it home in time for
dinner with us, despite his busy job, and we frequently went out for movies or Hibachi,
two of our favorite things to do as a family. Around the holidays, my dad would gleefully
lead our family in observing the traditions of the country he called home. There was
always a large meal at Thanksgiving and lights in the yard during Christmas. My dad
made it clear to us that we always came first for him.
As we got older, my father was very supportive of my brother Alex and I professionally.
The passion and enthusiasm he shows for our different career pursuits drives us. He is
the first person that I call for advice about things like business and career development.
I also greatly enjoy watching him mentor my brother Alex who is following in my father’s
footsteps by also entering the nanotechnology field. Watching him get “back to basics”
with my brother, gives me a glimpse of what my dad was probably like as a young kid in
Lebanon learning physics for the first time. You can just see the excitement and
passion he has for what he does and the joy he gets sharing it with his sons. He is an
amazing mentor and role model to both of us.
The last two years have taken a heavy toll on my dad but throughout all the pain and
uncertainty he has never stopped being who he has always been. Someone whose
mission is to provide Alex and me with everything he never had and push us to be our
best. Someone who makes it his mission to give Alex and me a strong support system
regardless of what life throws at us. Whether a small question or a huge crisis, I can go
to him for guidance and always walk away feeling better.
If there has been one comfort throughout the emotional nightmare these years have
been for my family and me, it has been the outpouring of support that we have received
from the many people who truly know my father. People have told me how he has
touched their lives and how much of a caring, hardworking and dedicated man he is.
Alain Kaloyeros has been an irreplaceable asset to his friends and family. He is a man
of unshakable dedication and he will never stop trying to build a better life for everyone
around him. He turned down countless more financially lucrative job offers because he
believes in New York and its potential.
Your honor, in writing this letter, I am pleading for leniency on behalf of my father.
Losing Dad is not a scenario my family can afford. He has given so much to so many
over his life, and I know if given the chance he will do amazing things again. Please do
not allow this case to be the end of my dad’s journey.
Sincerely,
Nick Kaloyeros
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6

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EXHIBIT 11
Spyridon Galis, Ph.D.
September 6, 2018
Re: Alain E. Kaloyeros
Dear Judge Caproni,
I was a Ph.D. student at University at Albany, SUNY under the advisory of Dr. Alain
Kaloyeros from 2001 - 2006. He had a unique approach to advising and guiding students. Dr.
Kaloyeros had set up a network that allowed his students to receive significant exposure to
semiconductor industrial environment through internships prior to graduation. Besides being truly
privileged to have him as my advisor and mentor, I learned a lot from his vision. I could not have
achieved as many of my professional and scientific goals (e.g. several refereed research articles in
top-notch journals, internship and job offer at IBM Semiconductor Research) if it had not been
for his support and clear advising.
Dr. Kaloyeros empowered me to be proactive, even in defining my own research directions.

In parallel, I was encouraged to work with other group members to fulfill my scientific and
personal goals, while also learning relevant and valuable skills needed to pursue a career in
academia and the semiconductor industry. Dr. Kaloyeros fostered professionalism in his students,
as they were expected to adhere to appropriate codes of conduct in working relations and business
dealings.
Another characteristic, equally weighted in his advising model and character, was the fact
that he was devoted to improving his students’ communication skills. He views the ability to
communicate as a critical skill, useful in presenting and delivering scientific findings with
relevance and concision. Accordingly, I was required to give oral presentations in front of my
colleagues and faculty members at a weekly Saturday meeting.
It was not only his uniqueness in providing me with succinct explanations and clear
guidance, but also his belief in me that made him even more special as an advisor. To this end,
when everything in my world seemed to be falling apart, Dr. Kaloyeros supported and guided me
to move forward with my graduate studies. This was so impactful to me that I included it in the
Acknowledgements Section in my dissertation.
Dr. Kaloyeros’ advising model, based on cooperation with industry, traditional learning
experiences, and exposure to the modern industrial environment was unequaled and exceptional.
The triptych of scientific, advising, and communication excellence is not often found in a single
person and speaks for Dr. Kaloyeros unique vision and character.
Sincerely,
Spyridon Galis, Ph.D.

EXHIBIT 12
September 19, 2018
Dear Judge Caproni:
I am writing this letter to provide you with a little more information about Dr. Alain Kaloyeros’s
character.
I’ve known Dr. Kaloyeros since approximately 2014. We first met due to our mutual interest in
technology innovation and finding ways to create better a climate for film productions in New York
State. Our initial meeting led to a lasting friendship. Having worked in the field of Information
Technology for years, I have always found it fascinating to hear Dr. Kaloyers talk about how
research innovation can transform the Capital District and New York State and bring it front and
center of the global arena of scientific breakthroughs.
I remember how, during the tour of Zero Energy Nanotechnology (ZEN) building at SUNY
Polytechnic Institute, he was speaking with such excitement and passion about the ways science
and innovation can help the community we all live in by providing better education, better job
opportunities, and benefiting everyone by increasing the quality of life. This is what I always found
amazing about Dr. Kaloyeros – his unparalleled passion towards promoting innovation and
leveraging amazing scientific discoveries to change the future for the better. It made me feel that
we, as the citizens of the Capital District, were extremely lucky to have history-making scientific
discoveries happening right here, all thanks to the vision that Dr. Kaloyeros has had for many years
and worked so hard to achieve.
Never once have I heard Dr. Kaloyeros speak about needing a break or wanting to go away on
vacation – for as long as I knew him, he has always seemed to be completely immersed in his work
and dedicated to it 100% of his time, no matter the day of the week, no matter the hour. No man is
an island, and Dr. Kaloyeros of course had an outstanding team that he could rely on in turning
CNSE into a beacon in higher education, scientific discoveries, and technology companies, but I truly
believe that it was his vision that was the driver behind all those achievements.
I have also seen how deeply Dr. Kaloyeros cares about his colleagues, family, and friends on a
personal level. He has always been so proud of his sons’ achievements – like any parent would. I
have often heard him mentioning, in passing, his sons and what they’ve been up to one could think
that it was a casual small talk, but anyone could see that Dr. Kaloyeros couldn’t be prouder of his
kids. In addition to being a loving father, Dr. Kaloyeros was also aware of and personally involved in
his friends’ and colleagues’ life milestones: from boasting when his friend had his first child, to
Judge Caproni
September 12, 2018
Page 2
being a father-like supportive and wise figure for a friend when she was going through tough times
at home.
I have witnessed Dr. Kaloyeros’s kindness and support first-hand on multiple occasions. For
example, recently my friends were going through a very tough time trying to collect funds for their
young daughter’s In effort to help them out, I set up a Go Fund me campaign
and was reaching out to everyone I knew to share the campaign on social media and to donate at
least a little. With most of the people, no matter how well I knew them, I had to exchange
numerous messages before they even shared the campaign. I was very disheartened by the
response, seeing how our society is fast to give “likes” to pictures of celebrities or share silly vide os,
but when this little child’s life was at stake, I ended up needing to reach out to everyone multiple
times before they even would share the campaign page once. That is why dealing with Dr. Kaloyeros
on this topic has really been like a breath of fresh air for me. As soon as I reached out to him with
the original message, he immediately supported the campaign and generously donated to help to
save this little girl’s life. No questions asked, no additional information needed, no unnecessary
delays. He saw someone in need and took action.
And this is how, in my experience, Dr. Kaloyeros treats everyone around him who needs any sort of
help – with kindness, care, and understanding. He can always come up with a kind-hearted joke to
lift a friend’s spirits, or offer advice when somebody is at a crossroads. I feel like Dr. Kaloyeros’s
passion for his work is translating into how he treats everyone and everything around him – I’ve
never once seen Dr. Kaloyeros show indifference when someone needed help or assistance.
Your Honor, I hope this letter offers you a little more insight into what kind of person Dr. A lain
Kaloyeros is. He is smart, driven, kind, and caring towards those around him. He deeply and
sincerely cares about his community and has dedicated his life’s work to making sure that scientific
discoveries don’t stay locked inside the labs, but rather benefit the community that made them
possible - by attracting needed resources and creating opportunities for all.
Sincerely,
Olga N. Bogdanova
EXHIBIT 13
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EXHIBIT 15
EXHIBIT 16
EXHIBIT 17

October 29, 2018

Dear Judge Caproni,

I am delighted to have the opportunity to write in support of my friend Alain Kaloyeros. I work at Miami
Sun, which is a tanning salon in Albany, NY. Alain is a long‐time client but more importantly has become
a very close friend since we met 13 years ago.

Living in Albany, you must know that Alain is a pillar of our community. His hard work doesn’t go
unnoticed starting as a professor at SUNY and eventually founding SUNY Polytechnic Institute. His work
continues to bring economic growth and jobs to the Albany area.

On a more personal level, Alain brings kindness and warmth to everyone he knows. I wanted to touch on
a few experiences that I thought really shows my relationship with Alain. I once mentioned to him that I
was about to take one of my first flights on a plane and that I was quite nervous. Part of this was, due to
Alain listened to my concerns patiently
and re‐assured me. At the end of the conversation, Alain told me to upgrade to first class on him

This is the
kind hearted person he is, he would do anything for anyone. He is one of the longest friendships I have
had in my life and I am honored to call him my friend.

Alain has also helped my family out. When my sister was diagnosed with
Alain was always there to provide emotional
support, and our experience got him interested in the He now makes
a generous annual donation at the every year.

Besides Alain’s generosity he has a great sense of humor which goes along with his outgoing personality.
Not only does Alain brighten up my day he always makes me laugh on a daily basis. I hope Alain knows
how much his friendship means to me.

I could go on and on about all the nice things Alain has done for me and my whole family but I want to
emphasize who he is as a person and he is a great one. I can always count on Alain to be in my corner
which is why I will always be in his.

Please do not hesitate to contact me if you would like to discuss this letter further.

Sincerely,
Jessica Decker

EXHIBIT 18
September 4, 2018
Dear Judge Caproni,

Allow me to introduce myself on behalf of Dr. Alain Kaloyeros.
My name is Beverly A. Bardequez, a 3rd generation African American woman living in the
historic Rapp Road District of Albany, New York's Pine Bush. I currently serve as President of
the Rapp Road Historical Association which is a non-profit organization working to preserve and
restore this historical African American Community.
The community was established in May,1930 by a minister and tenant farmers who migrated
from Shubuta, Mississippi during the Great Migration era (1930-1960 ’s). A period in history
when hundreds of thousands Negroes left the south escaping racism, oppression, poor
educational opportunities, unfair employment practices and lynchings. Twenty-three families
settled in the Pine Bush area of Albany and recreated the rural southern life they had left
behind. Today fifteen of the twenty-three buildings remain with 2nd, 3rd, 4th and 5th generation
residents residing in some of the homes. Rapp Road was placed on the NYS Historic Registry
in 2002 and the National Historic Registry in 2003. In May, 2006 the Rapp Road Historic District
was granted a charter by New York State Department of Education. The Association was
granted non-profit status in 2015 for the purpose of applying for grants and fundraising to
preserve its history and restore some of the buildings.
In November, 2015 I contacted Dr. Alain Kaloyeros’ office at SUNY Polytechnic Institute with the
hope of receiving some type of financial support from the college. Dr. Kaloyeros agreed to meet
with me to determine how the college might assist our Association. Much to my surprise he
offered to do a fundraiser gala for us. He was genuinely interested in the history of the Rapp
Road Historic District and arranged for me to meet with staff to set the wheels in motion. The
fundraiser was held in April, 2016 at SUNY Polytechnic Institute’s beautifully restored Kiernan
Plaza Building in downtown Albany. The gala was quite elegant and a huge success due in
large part to Dr. Kaloyeros’ input. There were an estimated three hundred guests in attendance.
The Rapp Road Historical Association raised over thirteen thousand dollars ($13,000).
What impresses me most regarding Dr. Kaloyeros was his commitment and interest in
supporting the Capital Region Area in and around Albany, New York. His willingness to assist
the Rapp Road Historic District in preserving its history is an illustrastive example. The time and
effort he afforded this community demonstrates he is an individual who cares about community.
Dr. Alain Kaloyeros has made many great contributions to New York State. A man whose worth
should be measured for his innovative vision. It is my sincere hope that he will be granted
leniency with the court.
Respectfully,
Beverly Bardequez
EXHIBIT 19
EXHIBIT 20

November 15, 2018

Dear Judge Caproni,

I write to give you my perspective on Alain Kaloyeros’s contributions to my region. Everyone
has their passions in life, and mine is growing the video gaming cluster here in Upstate New
York by creating jobs for local engineers and college graduates. I helped found Agora Games in
Troy which later became part of Warner Brothers, and in 2012 I spent every dollar I had to start
my own small game studio, MadGlory Interactive, located in Saratoga.

Early on we identified a major challenge for our region; while the number of game studios was
growing steadily, our High Schools and Colleges didn’t have programs to create students with
the kind of talents we needed. Along with other local game companies my team at MadGlory
started reaching out to educational institutions about the problem and we quickly became
disillusioned at the disconnect between academia and the realities of our industry. It was
about that time in 2016 that we met Dr. Alain Kaloyeros at SUNY Poly.

When we spoke to Dr. Kaloyeros for the first time we were surprised to find someone that
cared so much not only about his institution and his students, but about our state and the
Capital Region as well. When he spoke about institutional changes he spoke about timelines
that spanned months instead of years. He introduced us to the team at SUNY IT and told us
that they had dreams of creating just the type of program we were looking for. Soon after we
met excited students, professors, and even started working together to design a lab where
students could work on solving real world problems in the industry. It was exciting and quite
touching to meet someone who worked so hard and cared so much about inspiring change.

Outside of the relationship we formed over curriculum development, Dr. Kaloyeros kindly
offered his advice anytime I needed it to help keep my company afloat as well; no strings
attached. I’m not sure how he had time to answer phone calls from me in addition to his role
at SUNY Poly, but he always did. Over the years I found his advice and guidance to be
invaluable. I eventually hired his son, Nicholas, who has proven to be equally adept at solving
our problems. I’m proud to say that MadGlory grew up and in 2018 joined forces with a large
game company based in Seoul, South Korea. In fact, we’re the very first studio in New York to
provide such a direct link to the gaming industry in Asia. These days we’re in the process of
creating even more gaming jobs here in Upstate and we’re still pushing hard to find new and
innovative ways to work with our Colleges and Universities. I credit Alain’s patience, guidance
and support in part to our success.

In my relationship with Alain I have experienced an individual who is brilliant, kind and
dedicated to our region and our state. He has been an invaluable resource to me and my team,
and a selfless advocate for our industry.

Please do not hesitate to contact me if you should require any further information.
Kind Regards,
Brian Corrigan
Studio Director – PUBG MadGlory LLC.
EXHIBIT 21
EXHIBIT 22
November 2, 2018
Honorable Valerie E. Caproni

United States District Court
Dear Judge Caproni:
I am writing on behalf of Dr. Alain Kaloyeros to give you my perspective on his personality and
accomplishments.
I believe that I am uniquely situated to judge his success. I served as the President of Atari, the
videogame and computer company. I went on to become an early employee at Apple, and was
personally hired by Steve Jobs. I became the VP & General Manager of Apple’s personal
computer business and Apple International. My work since has focused on other technology
companies, private equity, and nonprofit boards.
I first met Dr. Kaloyeros in 2007 when he reached out to me, asking if I would consider joining
the Board of Directors of Fuller Road Management Corporation. He told me that my experience
in the technology industry could be useful to the organization. I met with him, and he explained
what he and his team were developing at FRMC and CNSE. I found it exciting and agreed to
help, finally serving between 2007 and 2015.
During my time on the Board, I worked closely with Dr. Kaloyeros and other Board members as
his team developed advanced semiconductor technology. The new chips were a quantum leap
over the existing versions because they were more reliable and resulted in enormous cost savings.
Dr. Kaloyeros was able to forge a partnership between Intel, IBM, Samsung, and Global
Foundries to commercialize the new technology. This was the first time, to my knowledge, that
all of these competitive companies cooperated. The partnership brought millions of dollars into
CNSE and created around two thousand jobs. It also had a permanent impact on the
semiconductor industry.
I found Dr. Kaloyeros to be very transparent when dealing with the FRMC Board. He solicited
the Board’s input on the opportunities and issues that FRMC was dealing with and showed the
utmost integrity during the Board’s discussions. He clearly valued the Board members’ input.
Dr. Kaloyeros was also deeply involved in supporting the Tech Valley High School, which I co-
founded. The school specialized in STEM and drew interested students from several districts in
the Capital region. Dr. Kaloyeros helped us to design the curriculum, worked closely with our
administrators and teachers, and made sure that students had the opportunity to take advanced
college-level courses at SUNY Poly. He spent hours with the students to educate them on how
important STEM education could be for the future. He even set aside space on his modern tech
campus for the high school to relocate—a rare chance which gave the school a permanent home.
Having watched him talk to the students at TVHS, I know that he cared deeply about their
futures and saw each of them as a potential scientist.
I ask that your sentence consider not only the facts in the trial, but also Dr. Kaloyeros’s
commitment to New York State, the semiconductor industry, and the students at TVHS and
SUNY Poly.
Thank you,
John Cavalier
EXHIBIT 23
Archie M. Blais
September 4, 2018
Dear Judge Caproni,
I'm writing this letter in support of my Friend Alain Kaloyeros, a man who I've known
for 30 years.
I first met Alain back in 1988 while I was in charge of the SUNY Albany Electrical
Department and he was a physics professor. I would interface with the professors while
laying out electrical engineering projects and researching the special needs for the
equipment in the labs and classrooms.
This was Alain's first lab, and it contained some of the most sophisticated systems I've
seen. I was requested by Alain to design and build a gas monitoring cabinet that would
shut down the entire system if there was a leak. Alain was adamant about installing
redundancy in this gas monitoring cabinet and also adamant about safety. I assured him
it would work as designed, but I’ll never forget what he said to me: “the parents of these
students entrust me with their sons and daughters’ well-being, that trust is paramount to
anything I do!”
In his early days at SUNY, Alain was like the Pied Piper: he had students following him
everywhere and he very often missed lunch helping them. He went on to help many,
many students achieve their goals, and many of his past students now hold high
positions in the nanotech world's biggest companies. I used to put in long hours
working at SUNY, but my hours and efforts paled in comparison to his.
Alain and I worked together on many labs and projects over the next ten plus years until
SUNY expanded across Fuller Road and CESTM (Center for Environmental Sciences
and Technology Management) was born. The CESTM building was about 30%
complete when the Construction/Project manager quit. I received a phone call from my
boss at SUNY asking if I'd be able to fill in for the Construction Manager, and I jumped
at the chance to work with Alain again. Everyone on our team put in long hours but
again, Alain would be on site every morning before I got there and he was usually the
last to leave at night.
Alain was the architect for something that was revolutionary at the time, bringing the
University, New York State and private companies under one roof to work in concert
designing and building what we call wafers (Micro-Chips). It seemed like every month,
there was a new breakthrough in nanotechnology, all because of this guy we knew as the
“Nano-Geek”!
After the CESTM building was completed, I returned back to my position at SUNY. I
was proud of the work I did helping to bring the CESTM building to life, but that
opportunity would have never happened if it weren't for Alain Kaloyeros.
As I left CESTM, Alain said, “I'll be seeing you around.”
In early 2001, I received a phone call asking, “are you busy?”, it was Alain's CFO
wanting to know if I could meet with Alain, I got excited because I knew there was more
to be done on the CESTM site and I was honored that Alain might be thinking about
bringing me on, I was right and within a few weeks I permanently made the transition
from SUNY to CNSE.
Alain worked as hard as ever to build the “Nano-Fab North” Building (NFN), housing
companies such as IBM, Sematech, Tokyo Electron just to name a few. He went on to
build NFS, NFC, NFE, NFX and the ZEN buildings, employing thousands of people,
providing them with good salaries, benefits and a reason to get up every morning. All
this probably wouldn't have happened if it weren't for hard work and dedication of Alain
Kaloyeros!
While at CNSE, I saw Alain close-up as he would annually welcome hundreds of middle
and high school students from all over the state get a feel for the nanotechnology future
that awaited them. Alain had the best of his in-house scientists show these students
everything from Clean-room Protocol to operating photovolalic powered vehicles
through the halls.
Judge Caproni, Alain Kaloyeros is a very good friend and a brilliant person, who has, as
long as I've known him, been interested in bettering mankind, I know that sounds corny
but it’s true and our society would be better served having Alain teaching and exploring
new ways to make our lives better than being sent away.
I thank you for hearing me out.
Sincerely yours,
Archie Blais
EXHIBIT 24
November 9, 2018
To whom it may concern,
I've known Dr. Alain Kaloyeros for almost 4 years now, and I can say with confidence that he's kind,
thoughtful, genuine, and hard-working. My friendship with Alain began as a business relationship at
a health club, Sportime, with me as his personal trainer and him as my client. Over time, our
relationship turned into a friendship that I treasure dearly.
In November of 2015, I was approached by a friend who knew Alain and said that he was looking to
get himself in shape, and thought that I'd be the best person for the job. Alain and I met a week
later for evaluation and to set up some fitness appointments. My first impression of him was that
he was very professional and excited for a new challenge. As our training began and we got to know
each other, I noticed something about him that made him stand out from every other client that I
had worked with. Alain never took a training session for granted, and made the absolute most out
of every single appointment. In one of our earliest appointments, he appeared nauseated due to
exercise, and I had told him that we should take a break, to which he replied, "I'm here to be
pushed." He proceeded to complete the entire exercise set, when virtually anyone else would have
quit.
As the months went on, I was dumbfounded to see that he was progressing rapidly and faster than
my other clients who were athletes, and less than half his age. His work ethic is incredible. As a
trainer, at best, you get a client who will do about 80% of what you ask of them, and they progress
very well. Alain has focus like I've never seen. He completed 100% of what I asked of him and
more. He instantly changed his diet and would always push his body further than what it wanted to
go. I was impressed by how motivated he was, that he could work all day, and attend various
meetings, then muster the strength for an exhausting workout, and then head back to work.
I trained Alain while I was finishing up my last year in university. One instance that always stood out
to me occurred at the end of one of our training sessions. I was taking a physics course and was
having trouble with a concept. I knew he was busy and had to get back to work, but I was hoping he
could give me a brief explanation. Instead he sat me down, took out a pen and paper and began
teaching. I felt bad keeping him, and told him that I understood the concept so that he could leave.
Somehow, he called my bluff and proceeded to write out multiple practice problems and said that
he would not leave until they were completed. I was amazed and couldn't believe that a guy as busy
as him would put his day aside to help me understand a complex principle. Aside from training him
a few times a week, I played a relatively small role in his life, yet, he put his busy day aside to help
me.
As time went on, our friendship grew and soon, we'd attend dinner outings with friends and he
even attended my son's birthday parties. He knew my son's birthday and has always had a gift for
the occasion.
Alain has been a very good friend to me and knowing him has changed my life. He's taught me so
much about work ethic, discipline, and being there for people who need you. As I graduated
university and went on to a job in the corporate world, Alain has been there as a support system
and has offered many different words of advice to guide me through tough situations at work.
When I made the transition into the corporate work environment, I was filled with anxiety and
wasn't sure I'd be able to thrive. Alain filled me with confidence and assured me that I could handle
it. When I'd have issues managing time and work, he'd give me advice and walk me through the
process. I recently took a promotion into management, and I can easily attribute that to the support
and professional advice that Alain has given me.
Although my time spent with Alain began as a basic business relationship, we've developed an
amazing friendship and bond. He's been a great friend to me, the Sportime fitness community, and
to my family. He's a man of caring, integrity, and discipline, and I know our friendship will continue
for many years.
Sincerely,
C'~`
ùliano Caprara
EXHIBIT 25
EXHIBIT 26
Zach Wheeler
September 18, 2018
Dear Judge Caproni,
In early 2015, I first met Dr. Kaloyeros when I was invited to SUNY Polytechnic
Institute to tour the facility. After touring the facility and meeting Dr. Kaloyeros, I knew that this
was something I wanted to be a part of. While in such a great role of leadership and
responsibility, Dr. Kaloyeros took the time to talk to me about SUNY Polytechnic while showing
me the latest innovations and developments on campus as if I were family. Through this
conversation I could see how passionate he was about his work and how proud he was of the
accomplishments made by SUNY Poly. I was most impressed with the fact that he greeted every
employee by name throughout the tour. For a large facility it was a very welcoming
environment.
After returning back to Florida following my visit to SUNY Poly, I remained in contact
with Dr. Kaloyeros. Nearing completion of college, I decided to send Dr. Kaloyeros my resume
and apply for an open position online. Weeks later I was contacted by human resources for a
position at SUNY Poly. After accepting the job offer, I relocated from Florida to New York
where I began my career. Throughout my career at SUNY Poly, I quickly learned how involved
Dr. Kaloyeros was with the work being done. While challenging at times, I have never worked
for anyone like Dr. Kaloyeros. He pushed not only me, but others to do better. He strove for
greatness. There were no excuses and he knew what we were all capable of. Dr. Kaloyeros was
not only CEO but he was a mentor. Day or night, whenever there was a question he was there to
help.
Through working closely with Dr. Kaloyeros on several projects at the Albany campus I
recognized his kindness and support to others. I was tasked with a project to help with the
relocation of SUNY Poly’s Children’s Museum (CMOST) to the Albany campus. Dr. Kaloyeros
was as detailed oriented and thoughtful throughout the project as if his own children would
attend the program. He wanted to create the ultimate experience for the children. From the first
day of the project, the interest and experience of the children and community was the number
one goal in mind. He wanted visitors and people from all around the world to learn about the
semiconductor industry and show the research and advances we were making on campus.
Another example which encompasses Dr. Kaloyeros’s personality would be the event that
he created “Community Day” at SUNY Poly. At this event, SUNY Poly opened the campus to
the community and created an interactive experience throughout the site so the community could
learn the inner workings of SUNY Poly. From tours showing the cleanrooms, hands on
experiments where anyone could participate, entertainment, interactive games for children, it was
the ultimate experience which was his vision. While this was not something we had to do as an
establishment, it demonstrated what kind of a leader Dr. Kaloyeros was in that he wanted to
support the community while teaching the core values of SUNY Polytechnic Institute.
While I’m sure this is one of many letters written on behalf of Dr. Kaloyeros, it is my
intent that his kindness and generosity depict his character. Dr. Kaloyeros is a brilliant mind that
society has, and will continue to, benefit from. What many believed to be unimaginable, Dr.
Kaloyeros made a reality. Dr. Kaloyeros put Albany on the map for being innovators and
brought thousands of jobs to New York State, myself included. I could not have asked for a
better mentor to help guide me through the beginning of my professional journey.
Warmest Regards,
Zach Wheeler

EXHIBIT 27
EXHIBIT 28
Ronald D. Goldblatt, PhD
November 15, 2018
Judge Valerie Caproni

U.S. District Court
Dear Judge Caproni:
I write on behalf of Alain Kaloyeros, a colleague and friend, to describe Alain’s many good
qualities and ask you to show leniency at sentencing.
I am currently the President and CEO of G3 Technical Services, an executive consulting agency.
I am responsible for all day-to-day management decisions and for the implementation of the
firm’s long and short-term plans. As part of my duties I serve as subject matter expert in all
aspects of semiconductor science and microelectronics during the Washington, DC round table
meetings of the Stanford Research Institute, which was commissioned by the Department of
Defense to conduct a study relating to Government Trusted and Assured Semiconductor
Manufacturing.
I first met Alain over a decade ago when I was working for IBM. I was assigned to IBM’s
efforts to expand in Albany, and we worked together to create and establish the new
semiconductor manufacturing facilities at the University of Albany/CNSE. Dr. Kaloyeros
impressed me with his ability to understand the business goals of academic studies, and to
translate between industry and academia. His involvement was critical to our success in building
the facilities.
I also collaborated with Alain to vie for SUNY Poly and SEMATECH’s designation as a
“Trusted Foundry.” The Department of Defense started the Trusted Foundry program out of
concern that foreign microelectronics suppliers were a security risk for the military. The Chinese
government and Chinese nationals are extensively involved in all levels of the supply chain for
microprocessors, and up to a quarter of all military computer systems rely on Chinese-produced
components. These concerns recently came to a head when Bloomberg reported that the Chinese
military hid espionage chips on computing hardware destined for U.S. military and intelligence
agencies. Although SUNY Poly’s effort to become a Trusted Foundry faltered in the wake of
Alain’s arrest, it is representative of how Alain’s work benefitted Americans.
On a personal level, I have known and worked with Alain for over a decade. Our interaction was
always professional and respectful and I believe that he is a man of integrity. Although he is a
very demanding man, he demands the most of himself. I believe that he was committed, above
all, to the idea that Upstate New York could host its own technology industry.
November 15, 2018

Page 2
Thank you for your consideration.
Sincerely,
Ronald D.Goldblatt
Ronald D. Goldblatt, Ph.D.
President and CEO
G3 Technical Services, LLC
2
EXHIBIT 29
NICOTINA & ASSOCIATES LLC
Accounting – Taxes – Business Consultants

September 5, 2018

To The Honorable Judge Valerie Caproni

RE: Character Reference for Alain Kaloyeros.

Your Honor,

I have had the distinct pleasure and honor of knowing Alain Kaloyeros for more than 10 years, and I
regard him as a loyal and personal friend.
Dr. Kaloyeros possesses a deep‐rooted devotion toward his family and friends. His love and devotion for
his family also extends, selflessly, in his service to the community in which he resides and to the Greater
Capital Region. As a competent, intelligent and well‐educated scientist, Alain has always envisioned and
strived for a better community. His hard work, dedication, vision, ingenuity and commitment have
always served him well. Those attributes have also helped make SUNY Polytechnic Institute a greatly
admired, well‐respected and world‐renowned academic institution. His work attracted the very finest
and largest private high‐tech companies to the Capital District for research and development, resulting
in an surge of community pride, job creation, growth, and increased tax revenue. I believe, and many
others would agree, that few, if any, individuals have helped advance higher education, research and
development in our community more than Dr. Kaloyeros. I know from many of our conversations that
his love for our community and his many, many students is what motivated him to continue to pursue
the amazing work he has done.
Alain has expressed his deepest regrets about the impact his case has had on his family, his friends and
for the community, at large. I verily believe that both he and our community will be much better served
by his being allowed to remain in the community. Dr. Kaloyeros possesses the requisite attributes and
values to both assume responsibility and to “make good” on his actions. His life and the life of his family
has already been turned upside down. He lost the job that he loved and his reputation will be forever
impacted. I urge that you consider a sentence that allows Dr. Kaloyeros to stay in our community; a
community which he cherishes and which has greatly benefitted from his care, concern, commitment,
involvement and tireless efforts. Alain is a valuable member of our community. We need him, again, in
our community.
I respectfully hope that, with its sentencing, the Court allows Alain to remain a valuable member of our
community. Alain is a devoted family man, a loyal friend and a good human being. All of his past good
deeds and efforts are positive proof that a lenient sentence will much better serve the long‐term and
best interests, the general welfare and the future well‐being of our community.
It is my sincere hope that the Court takes this letter into consideration at the time of sentencing.
Thank you for your time, attention and consideration.
Respectfully,
Ottavio Nicotina
Ottavio Nicotina
EXHIBIT 30
August 28th, 2018
Dear Judge Caproni:
My name is Joseph Valenti, I am a good friend of Dr. Alain Kaloyeros,

and I would like to share with you some important information about my dear friend Alain. I first met Dr.
Kaloyeros in the Summer of 2010 at a local Starbucks Coffee Shop located in Stuyvesant Plaza, Albany,
New York.
I remember the day quite clearly as I was sitting at a table and silently thinking, there is that guy, the one
who is always on the local news and described as the Professor of Nanoscience, the Vice President and
Chief Executive Officer for CNSE at University at Albany. There he was standing in line at a local Starbucks
Coffee Shop in a pair of faded jeans and a button-down shirt flipping through a newspaper. He ordered
his coffee and then sat down at a table close to where I was sitting.
At the time, I was conversing with an older gentleman sitting next to me who quietly whispered “he is the
nicest man you will ever meet”. I found it interesting how that man knew exactly what I was thinking. I
spent the next few hours with the older gentleman discussing cars as I was in the market to purchase a
new one. During our conversation, I noticed that customers of all ages were making a conscious effort to
stop and speak with Alain. As I watched, I observed his interaction with people, and how he appeared to
be very kind, polite and gracious, but most of all, I noticed his unique sense of humor, which obviously
caught the attention of others. I found this behavior extremely odd, especially coming from someone
in such a high-powered position as most are usually distant and detached when in public places. Not this
guy. He was different, and very much a people person, down to earth just like the rest of us sitting in that
coffee shop.
A while later Mr. Kaloyeros stood up and started to walk towards us. He shook my friend’s hand, looked
at me and introduced himself as Alain Kaloyeros. I said very nice to meet you Mr. Kaloyeros, and he
replied, “My name is Alain, please call me Alain”. I remember thinking what a very nice man he is indeed.
Mr. Kaloyeros walked out of the store and back to his car. A few days later, I visited the same coffee shop
and was enjoying my morning coffee and paper when Alain walked into the store. He ordered his coffee
and sat at the table close to me even though there were plenty of empty tables nearby. We chatted for
quite some time about everything and anything. It was as if we had known each other for many years,
and never once did he mention his title or position with SUNY. During our chat, I noticed that he always
made the effort to say hello to the person sitting next to him or to an acquaintance that just walked into
the store. That is the type of man Mr. Kaloyeros is – a true genuine human being with a great admiration
for people. From that day forward, meeting Alain at the local coffee shop became a regular routine and
within the past few years, the coffee routine turned into a biweekly dinner routine for several of us who
now consider Alain a very good friend.
Judge Caproni, I can say it with total confidence that few men have a sincere, compassionate and genuine
heart and few men have contributed to society in a way that Mr. Kaloyeros has. Mr. Kaloyeros is an
exceptional and valuable member of our community, and he has so much to offer the Capital District.
People are naturally drawn to his incredible outgoing personality. He is exceptionally bright and his talent
is unmeasurable.
It has been my pleasure to know Alain for over eight years. I have always found him to be very honest,
kind, hard-working, gracious, very generous, respectful and loyal and most of all incredibly funny. Alain’s
heart is bigger than life, and to know him is to love him.
Thank you in advance for taking the time to read this lengthy letter describing this individual who I am
happy to call ‘my friend’. If I can provide any additional information, please feel free to contact me
Thank you
Joseph Valenti
EXHIBIT 31

September 20, 2018

Dear Judge Caproni,
My name is Gary Lee. I have been in law enforcement for 34 years and I recently retired
as a sergeant in the Guilderland Police Department. In the Fall of 2016, I only knew Alain
Kaloyeros by reputation. But after following the press about SUNY Poly and seeing him get
indicted, I felt compelled to send him a message wishing him the best with his case. Dr.
Kaloyeros responded graciously and a few weeks later we met for coffee.
Prior to our meeting, my family and I had watched the SUNY Poly complex grow for
many years and were so impressed by what he had done for our community. Alain’s
contribution to this area is without question. In Albany alone, he has created countless jobs
and a new University, which has world‐wide recognition for its research. I thought of Dr.
Kaloyeros as this “larger than life” local celebrity that was responsible for it all. It was kind of
surreal to be sitting and talking with him. While I was expecting the “big” personality that is
often portrayed in the media, Dr. Kaloyeros was warm, personable, and easy to talk to. The
conversation was casual and we talked about our families, our interests and hobbies. We also
talked about how mutual interest in tennis. From our conversation, I could see what made him
successful. He has an ability to relate to a broad range of people in a genuine and empowering
way. We parted ways with a promise to get together again for some tennis.
A few weeks later, we got together to play. He won, though I was sure to joke with him
that he really wasn’t that good. We followed up this match and others with visits to a local
restaurant. Each time, I was struck by the fact people would come up to him and wish him well.
One time, it was a guy who works at SUNY Poly. Another time, it was a former student who
was very happy to see him. It was clear to me from these interactions that Alain is someone
who cares deeply for people and has impacted many, many lives.
With over 30 years in law enforcement I have complete respect for our Judicial Process.
I respectfully ask that you consider these points in your decision making:
 Alain has no prior record that I know of. His “story”, from the Streets of Lebanon
training and fighting with the Israeli Army as a teenager to Upstate New York to create
the World’s premiere Nanotech Institute, to Manhattan Federal Court is remarkable

 Alain has so much to offer with the knowledge he carries every day. I know that society
would benefit immensely from him both as an educator and as the good person that I
have come to know.

Respectfully submitted,
__/s/____
Gary Lee
EXHIBIT 32
November 15, 2018
Dear Judge Caproni,
I have been Dr. Kaloyeros’ tennis coach for approximately 2 years. During that time, we
have developed a close relationship and I cannot say enough about the kind, respectful, fun-to-
be-around, and high character individual that he is. I wish more people could see the side of him
that I have gotten to know, because he is truly one of a kind. For one thing, as busy as he is, he
always takes time out of his day to listen to and support people. I know I have benefited greatly
from the wisdom he has imparted to me over the years. Not a birthday or holiday goes by
without Dr. Kaloyeros sending a note or a small gift to express his appreciation for my help with
his tennis game.
As far as his effect on the community, words cannot adequately describe it. Everyone
who knows him locally sees him as an extremely intelligent and determined individual who
brought so much business to the area and helped the local economy exponentially. He really has
had a positive lasting impact on our community.
My hope is that by reading this, you will have a better understanding of the man that Dr.
Kaloyeros is and the impact he has had on so many lives, including my own.
Sincerely,
Alex Van Cott

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dŚŽŵĂƐt͘>ŽƵŝƐͬƐͬ
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November 13, 2018
Dear Judge Caproni,
I have known Dr. Alain Kaloyeros since 2001, when I joined University at Albany as
an intern. I was lucky to be part of The Center for Environmental Sciences and Technology
Management (CESTM) led by Dr. Kaloyeros from the very beginning. As a student from
different country, speaking a foreign language, starting this internship - I didn’t know what
to expect and I wasn’t sure if I would make it ok. I have to admit that I was overwhelmed by
the size and scale of projects and companies that this institution was working with. I think
that Dr. Kaloyeros saw that. He helped me right away. As my advisor he told me that this is
only in my head, that all truly depends on me and that it was my choice what I would do
and how I would do it. I made a good choice. I’ve stayed and used that time wisely. I’ve
since learned about real meaning of this decision, about the impact of this place not only on
me, but on the whole University, City, State and Region.
What surprised me the most was the atmosphere at CESTM. It was a combination of
professionalism and creativity, engagement and joy of discovering the world, support and
spirit of progression. On the one hand I was a student gaining knowledge as other students
in other Universities; on the other hand I knew that I was part of something meaningful,
something big. I was proud. Simply and honestly proud that I was part of it and that I was
playing a tiny part in this new, life changing nanotechnology world. Knowing the projects
and scientific goals behind them, I knew that our work was important and that it would
impact many people in the future. I felt it at that time and I feel and know this today.
The person that stood behind all this was Dr. Kaloyeros. He had always this visionary
way of combining development, education and business. During my whole life, I haven’t
met any other person that would be able to do that with such amazing and fast progressing
results. He had the determination and clear will to develop this place and the whole region.
I don’t know how many students, during all of those years of Dr. Kaloyeros’s
leadership, graduated and had a chance to start great jobs. I don’t know how many people
were hired simply to build, construct and create all of these facilities. I don’t know how
many scientists and faculty had a chance to start better lives by getting jobs in this region.
Finally I don’t know how many life changing projects, cutting edge developments, products
and innovations were discovered, created, or originated from this place. But in each case I
am sure that it is more than I could imagine. And I am 100% sure that the whole education-
business center that was created by Dr. Kaloyeros has had a lasting global impact on health,
technology, the military, education and many more. I also know that this is thanks to Dr.
Kaloyeros’s intense commitment to the school and to us students individually.
I was and I still am proud that I was part of this amazing institution led by Dr. Alain
Kaloyeros. These 3 years had the greatest impact on my life, not only due to the University
education I’ve gained there, but mostly because of life changing experiences. I’ve learned
that one person can achieve a lot if only has enough faith that it make sense. I’ve learned that
the easiest ways are not always the best ones and that accomplishments require sacrifices.
I’ve learned that it is not a shame to admit that one doesn’t know something and that it’s ok
to make mistakes. I’ve learned all of this from Dr. Kaloyeros.
I am very thankful to Dr. Kaloyeros that he gave me a chance to experience all of this.
It was a honor to be part of it.
Katarzyna Topol
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/ĐĂŶ͛ƚƌĞĐĂůůƚŚĞĞǆĂĐƚǇĞĂƌǁĞĨŝƌƐƚŵĞƚ͕ďƵƚ/ĞƐƚŝŵĂƚĞƚŚĂƚŝƚǁĂƐŝŶĂƵƚƵŵŶŽƌůĂƚĞǁŝŶƚĞƌĂƌŽƵŶĚŶŝŶĞŽƌƚĞŶ
ǇĞĂƌƐĂŐŽ͘/ƌĞŵĞŵďĞƌƚŚĞĚĂǇ͘/ǁĂƐŽƵƚŝŶůďĂŶǇǀŝƐŝƚŝŶŐƐŽŵĞĨƌŝĞŶĚƐĂŶĚǁĂůŬŝŶŐĚŽǁŶƚŽǁŶǁŚĞŶ/ƐƉŽƚƚĞĚ
ĂŶŽƚŚĞƌĨƌŝĞŶĚŽĨŵŝŶĞƚŚƌŽƵŐŚƚŚĞǁŝŶĚŽǁĂƚĂ^ƵƐŚŝƌĞƐƚĂƵƌĂŶƚ͘,ĞǁĂǀĞĚŵĞŽǀĞƌĂŶĚƐŚŽƌƚůǇ/ĞŶĚĞĚƵƉƐŝƚƚŝŶŐ
ĚŽǁŶĂƚĂƚĂďůĞǁŚĞŶƚŚĞŝƌĚŝŶŶĞƌǁĂƐǁƌĂƉƉŝŶŐƵƉ͕ĂĐƌŽƐƐĨƌŽŵůĂŝŶ<ĂůŽǇĞƌŽƐĂŶĚƐŽŵĞŽƚŚĞƌĨŽůŬƐ͘/ǁĂƐ
ŝŶƚƌŽĚƵĐĞĚƚŽĞǀĞƌǇŽŶĞŝŶĐůƵĚŝŶŐůĂŝŶ͕ďƵƚĂƐĂĨŽůůŽǁĞƌŽĨƚŚĞŶĞǁƐ͕/ĂůƌĞĂĚǇŬŶĞǁǁŚŽŚĞǁĂƐ͘
/ďĞĐĂŵĞĐŽŵĨŽƌƚĂďůĞĂŶĚŚĂĚĂĚƌŝŶŬŽƌƚǁŽǁŝƚŚƚŚĞŐƌŽƵƉ͕ĞƐƐĞŶƚŝĂůůǇĐƌĂƐŚŝŶŐƚŚĞŝƌĚŝŶŶĞƌƉĂƌƚǇ͘DǇŶĞǁ
ĨƌŝĞŶĚĚŝĚŶ͛ƚƐĞĞŵƚŽŵŝŶĚĂƚĂůů͘tĞƚĂůŬĞĚ͕ũŽŬĞĚĂŶĚŐŽƚĂůŽŶŐǁĞůů͕ĂůƚŚŽƵŐŚ/ǁĂƐƐƚŝůůƐŽŵĞǁŚĂƚŶĞƌǀŽƵƐ͘
,ĂǀŝŶŐƐĞĞŶŚŝŵƌĞŐƵůĂƌůǇŝŶƚŚĞŶĞǁƐĨŽƌĂůůŽĨƚŚĞĂŵĂǌŝŶŐǁŽƌŬŚĞĚŝĚŝŶůďĂŶǇ͕/ǁĂƐĂůŝƚƚůĞďŝƚƐƚĂƌƐƚƌƵĐŬ͘dŚŝƐ
ŝƐƐŽŵĞŽŶĞƚŚĂƚ/ŶĂƚƵƌĂůůǇůŽŽŬĞĚƵƉƚŽ͕ƌŝŐŚƚĂǁĂǇ͘
ƚŽŶĞƉŽŝŶƚ/ĂƐŬĞĚŚŽǁ/ƐŚŽƵůĚƌĞĨĞƌƚŽŚŝŵ͙͘͞ƌ͘<ĂůŽǇĞƌŽƐ͙ůĂŝŶ͙ĚŝĚ/ƐĂǇǇŽƵƌĨŝƌƐƚŶĂŵĞĐŽƌƌĞĐƚůǇ͍͟,Ğ
ƐĂŝĚ͕͞ĂůůŵĞǁŚĂƚĞǀĞƌǇŽƵǁĂŶƚ͘͟/ƌĞƐƉŽŶĚĞĚ͕͞KŬĂǇŝƚ͛ƐŐŽŝŶŐƚŽďĞ͚ŝŐů͛ƚŚĞŶ͕͊͟ĂŶĚŚŽŶĞƐƚůǇƚŚĂƚŶĂŵĞŚĂƐ
ƐŽƌƚŽĨƐƚƵĐŬ͕ĂƚůĞĂƐƚǁŝƚŚŵĞ͘/ƚŚŝŶŬŚĞ͛ƐĂŵƵƐĞĚďǇƚŚĞŝƌƌĞǀĞƌĞŶƚŶĂƚƵƌĞŽĨƚŚĞŶŝĐŬŶĂŵĞ͘dŚĞŶŝŐŚƚĞŶĚĞĚǁŝƚŚ
ůĂŝŶƌĞũĞĐƚŝŶŐŵǇŚĂŶĚƐŚĂŬĞŝŶĨĂǀŽƌŽĨĂŚƵŐ͘
&ƌŽŵƚŚĞŶŽŶ͕ůĂŝŶǁĂƐĂůŽǇĂůĨƌŝĞŶĚ͘ǀĞŶƚŚŽƵŐŚůĂŝŶǁĂƐĂŶĞǆƚƌĞŵĞůǇďƵƐǇĂŶĚŝŵƉŽƌƚĂŶƚŵĂŶŝŶƚŚĞŵŝĚĚůĞ
ŽĨďƵŝůĚŝŶŐ^hEzWŽůǇ͕ŚĞŵĂĚĞƚŝŵĞĨŽƌŵĞ͘EĞǀĞƌĚŝĚĂŵĞƐƐĂŐĞŐŽƵŶĂŶƐǁĞƌĞĚ͘ƚŽŶĞƉŽŝŶƚŚĞůĞƚŵĞŐŝǀĞŚŝƐ
ĞŵĂŝůĂĚĚƌĞƐƐƚŽĂƌĞůĂƚŝǀĞǁŚŽǁĂƐĂƚƚĞŶĚŝŶŐ^hEzWŽůǇĂƚƚŚĞhƚŝĐĂͬZŽŵĞůŽĐĂƚŝŽŶ͘,ĞŐĞŶƵŝŶĞůǇǁĂŶƚĞĚŚĞƌ
ĨĞĞĚďĂĐŬŽŶŚŽǁƐƚƵĚĞŶƚůŝĨĞǁĂƐĂŶĚ/ĨĞůƚŐƌĞĂƚƚŚĂƚ/ĐŽƵůĚďĞƚŚĞŽŶĞƚŽĨĂĐŝůŝƚĂƚĞƚŚĂƚĨŽƌŚĞƌ͘^ŚĞǁĂƐƐŽ
ĞǆĐŝƚĞĚ͊
ůƚŚŽƵŐŚŚĞƉŽůŝƚĞůǇĚĞĐůŝŶĞĚǁŚĞŶ/ƚƌŝĞĚƚŽƚĂůŬŚŝŵŝŶƚŽƌĂĐŝŶŐŵĞŽŶŵǇŵŽƚŽƌĐǇĐůĞĂƚƚŚĞĚƌĂŐƌĂĐŝŶŐƚƌĂĐŬ͕
ůĂŝŶŚĂƐĂůǁĂǇƐďĞĞŶĚĞǀŽƚĞĚƚŽŚĞůƉŝŶŐŵĞƉƵƌƐƵĞŵǇƉĂƐƐŝŽŶƐ͘tŚĞŶ/ŚĂĚĂŶŝĚĞĂƚŚĂƚ/ǁĂŶƚĞĚƚŽƉĂƚĞŶƚ͕
ůĂŝŶǁĂƐŵǇĨŝƌƐƚĐĂůůĂŶĚǁĞŐŽƚƚŽŐĞƚŚĞƌƌŝŐŚƚĂǁĂǇ͘tĞŵĞƚĂƚ^ƚĂƌďƵĐŬ͛ƐĂŶĚƚĂůŬĞĚĂďŽƵƚŝĚĞĂƐĂŶĚƐŽůƵƚŝŽŶƐ
ƚŽƚŚĞǁŽƌůĚ͛ƐƉƌŽďůĞŵƐ͕ƚŚĞŶĂďŽƵƚŚŽǁƚŽĂĚǀĂŶĐĞƚŚĞŵ͘,ĞƐƉĞŶƚĐŽŶƐŝĚĞƌĂďůĞƚŝŵĞǁŝƚŚŵĞĞǆƉůĂŝŶŝŶŐŚŽǁƚŽ
ƉĞƌĨŽƌŵƌĞƐĞĂƌĐŚĂŶĚĐŽŶƐƚƌƵĐƚĂƉĂƚĞŶƚĂƉƉůŝĐĂƚŝŽŶŝŶƐƵĐŚĂǁĂǇƚŚĂƚŝƚĐŽƵůĚƉĂƐƐh^WĂƚĞŶƚĂŶĚdƌĂĚĞŵĂƌŬ
KĨĨŝĐĞĞǀĂůƵĂƚŝŽŶ͘ĨƚĞƌĂůů͕ŚĞŚĂƐŐŽŶĞƚŚƌŽƵŐŚƚŚĞƉƌŽĐĞƐƐŽǀĞƌĂĚŽǌĞŶƚŝŵĞƐƐƵĐĐĞƐƐĨƵůůǇ͘/ŶƐŚŽƌƚ͕ůĂŝŶ
ĂůǁĂǇƐǁĂŶƚƐƚŽŚĞůƉƉĞŽƉůĞƐƵĐĐĞĞĚ͘
ĞƐƉŝƚĞƚŚĞĐŽŶƐŝĚĞƌĂďůĞĚŝƐƚĂŶĐĞďĞƚǁĞĞŶŽƵƌŚŽŵĞƐ͕ůĂŝŶƌĂƌĞůǇŵŝƐƐĞƐĂƐƉĞĐŝĂůŽĐĐĂƐŝŽŶĂƚŵǇŚŽƵƐĞ͘tŚŝůĞ/
ŚĂǀĞůŝĨĞůŽŶŐĨƌŝĞŶĚƐǁŚŽǁŽŶ͛ƚƚƌĂǀĞůŚĂůĨƚŚĂƚĚŝƐƚĂŶĐĞ͕ůĂŝŶŝƐĐŽŶƐŝƐƚĞŶƚůǇƚŚĞƌĞƚŽƐƵƉƉŽƌƚŵĞŝŶŐŽŽĚƚŝŵĞƐ
ĂŶĚďĂĚ͘
:ƵĚŐĞsĂůĞƌŝĞ͘ĂƉƌŽŶŝ
^ĞƉƚĞŵďĞƌϭϬ͕ϮϬϭϴ
WĂŐĞϮ
/ŬŶŽǁƚŚĂƚǇŽƵƌƌŽůĞĂƐĂ:ƵĚŐĞŵĞĂŶƐƚŚĂƚĂƚƚŝŵĞƐǇŽƵƚƌǇƚŽĞǀĂůƵĂƚĞĂƉĞƌƐŽŶĐŽŵƉůĞƚĞůǇ͘EŽƚƐŝŵƉůǇŝŶĂŶ
ŝƐŽůĂƚĞĚƐŝƚƵĂƚŝŽŶ͕ďƵƚƚŚĞŝƌůŝĨĞŝŶĞŶƚŝƌĞƚǇ͘tŝƚŚŽƵƚĂĚŽƵďƚǇŽƵŬŶŽǁŽĨĂůůŽĨƚŚĞĂĐĐŽŵƉůŝƐŚŵĞŶƚƐĂŶĚůŝǀĞƐƚŚĂƚ
ůĂŝŶŚĂƐƚŽƵĐŚĞĚĂŶĚĐŚĂŶŐĞĚĨŽƌƚŚĞďĞƚƚĞƌ͕ŚŽǁŵĂŶǇĐĂƌĞĞƌƐŚĞŚĂƐŚĞůƉĞĚůĂƵŶĐŚĂŶĚƚŚĞǀĂƐƚŶƵŵďĞƌŽĨ
ĞǆƚƌĞŵĞůǇƉƌŽĚƵĐƚŝǀĞŵĞŵďĞƌƐŽĨƐŽĐŝĞƚǇŚĞŚĂƐŚĞůƉĞĚƚŽŵŽůĚ͘
/ǁŽƵůĚĂůƐŽůŝŬĞǇŽƵƚŽĐŽŶƐŝĚĞƌƚŚĞƐƚŽƌǇŽĨƐŽŵĞŽŶĞǁŚŽĨŽƵŶĚĂƚƌƵůǇŐĞŶƵŝŶĞĂŶĚĚĞĚŝĐĂƚĞĚĨƌŝĞŶĚƐŚŝƉĨƌŽŵĂ
ƉĞƌƐŽŶǁŚŽǁĂƐǁŝůĚůǇƐƵĐĐĞƐƐĨƵů͕ďƵƐǇĂŶĚƐŽƵŐŚƚĂĨƚĞƌ͕ďƵƚƐƚŝůůŚĂĚƚŝŵĞĨŽƌĂƌĞŐƵůĂƌŐƵǇ͘/ŬŶŽǁƚŚĂƚ/ĂŵŶŽƚ
ŽŶŚŝƐůĞǀĞůŝŶĂůŽƚŽĨǁĂǇƐďƵƚƚŚĂƚĚŽĞƐŶ͛ƚŵĂƚƚĞƌƚŽŵǇĚĞĂƌĨƌŝĞŶĚ͘,ĞǀĂůƵĞƐŵĞĂŶĚƚƌĞĂƚƐŵĞůŝŬĞĂŶĞƋƵĂů͘
dŚĂƚŝƐƌĞĂů͕ĂŶĚŝƚŝƐƌĂƌĞ͘ůĂŝŶ<ĂůŽǇĞƌŽƐŝƐƚŚĞƚǇƉĞŽĨƉĞƌƐŽŶƚŚĂƚƚŚĞǁŽƌůĚŶĞĞĚƐŵŽƌĞŽĨ͘

^ŝŶĐĞƌĞůǇ͕

<ĞǀŝŶZǇĂŶ

(;+,%,7
(;+,%,7
EŝĐŽůůĞKƚƚǇ

EŽǀĞŵďĞƌϭϱ͕ϮϬϭϴ

,ŽŶ͘sĂůĞƌŝĞ͘ĂƉƌŽŶŝ
hŶŝƚĞĚ^ƚĂƚĞƐŝƐƚƌŝĐƚ:ƵĚŐĞ
dŚƵƌŐŽŽĚDĂƌƐŚĂůů
hŶŝƚĞĚ^ƚĂƚĞƐŽƵƌƚŚŽƵƐĞ
ϰϬ&ŽůĞǇ^ƋƵĂƌĞ
EĞǁzŽƌŬ͕EzϭϬϬϬϳ

ZĞ͗ ƌ͘ůĂŝŶ<ĂůŽǇĞƌŽƐ

ĞĂƌ:ƵĚŐĞĂƉƌŽŶŝ͕

/ǁĂƐƉƌŝǀŝůĞŐĞĚƚŽŵĞĞƚƌ͘<ĂůŽǇĞƌŽƐŝŶDĂƌĐŚ͕ϮϬϬϲ͕ǁŚĞŶ/ďĞŐĂŶǁŽƌŬŝŶŐĨŽƌŚŝƐŽĨĨŝĐĞĂƚƚŚĞ
ŽůůĞŐĞŽĨEĂŶŽƐĐĂůĞ^ĐŝĞŶĐĞĂŶĚŶŐŝŶĞĞƌŝŶŐ͘/ǁŽƌŬĞĚĂƐƉĂƌƚŽĨƌ͘<ĂůŽǇĞƌŽƐ͛ƐƚĞĂŵĨŽƌŶĞĂƌůǇĨŝǀĞ
ǇĞĂƌƐƉƌŝŽƌƚŽĂĐĐĞƉƚŝŶŐĂŶŽƚŚĞƌŽƉƉŽƌƚƵŶŝƚǇǁŝƚŚĂƚĞŶĂŶƚĐŽŵƉĂŶǇŽŶƚŚĞE^ĐĂŵƉƵƐ͘/ǁĂƐĂďůĞƚŽ
ǁŽƌŬ ǁŝƚŚ ĂŶĚ ĨŽƌŵ Ă ĨƌŝĞŶĚƐŚŝƉ ǁŝƚŚ ƌ͘ <ĂůŽǇĞƌŽƐ ŽǀĞƌ ƚŚĞ ĐŽƵƌƐĞ ŽĨ ƚŚĂƚ ĞŝŐŚƚ ǇĞĂƌƐ ǁŚŝĐŚ ŚĂƐ
ĐŽŶƚŝŶƵĞĚƚŚƌŽƵŐŚƚŽĚĂǇ͘
,ĂĚƚŚĞĂƉŝƚĂůZĞŐŝŽŶŶŽƚůƵĐŬĞĚŽƵƚǁŝƚŚŐĂŝŶŝŶŐƌ͘<ĂůŽǇĞƌŽƐĂƐĂƉƌŽĨĞƐƐŽƌĂƚhŶŝǀĞƌƐŝƚǇĂƚ
ůďĂŶǇĂůůƚŚŽƐĞǇĞĂƌƐĂŐŽ͕ŽƵƌƌĞŐŝŽŶǁŽƵůĚŶŽƚŚĂǀĞƚŚĞƚŚƌŝǀŝŶŐĂŶĚĚŝǀĞƌƐĞĐĂŵƉƵƐƚŚĂƚŝƚŚĂƐƚŽĚĂǇ͘
E^ ĞŵƉůŽǇƐ Ă ƵŶŝƋƵĞ ďƵƐŝŶĞƐƐ ŵŽĚĞů ŽĨ ƌĞƐĞĂƌĐŚ ĂŶĚ ĚĞǀĞůŽƉŵĞŶƚ ƉĂƌƚŶĞƌĞĚ ǁŝƚŚ ŽŶͲĐĂŵƉƵƐ
ƉƌŝǀĂƚĞĐŽŵƉĂŶǇƉĂƌƚŶĞƌƚĞŶĂŶƚƐǁŚŽƉƌŽǀŝĚĞŝŶƚĞƌŶƐŚŝƉƐĂŶĚũŽďƐƚŽE^ƐƚƵĚĞŶƚƐ͘dŚŝƐƉĂƌƚŶĞƌƐŚŝƉŝƐ
ĚƵĞŝŶƉĂƌƚƚŽƌ͘<͛ƐŚŝƐǀŝƐŝŽŶ͕ŝŶŶŽǀĂƚŝŽŶ͕ƚĞŶĂĐŝƚǇ͕ĂŶĚĚĞĚŝĐĂƚŝŽŶƚŽŚŝƐĐŽŵŵƵŶŝƚǇ͘tŚĞŶ/ƌĞĨůĞĐƚŽŶ
ŵǇƉƌĞǀŝŽƵƐĞŵƉůŽǇŵĞŶƚĞǆƉĞƌŝĞŶĐĞ͕/ĂůǁĂǇƐƌĞƚƵƌŶƚŽŵǇƚĞŶƵƌĞĂƚE^ĂƐŵǇĨĂǀŽƌŝƚĞĨŽƌĂǀĂƌŝĞƚǇ
ŽĨƌĞĂƐŽŶƐ͕ŵĂŶǇŽĨǁŚŝĐŚŝŶǀŽůǀĞĚƌ͘<͘ƌ͘<ǁĂƐĂůǁĂǇƐĂǀĂŝůĂďůĞƚŽŽĨĨĞƌŐƵŝĚĂŶĐĞĂŶĚĂĚǀŝĐĞ͘,ŝƐ
ƐĞŶƐĞŽĨŚƵŵŽƌ͕ƋƵŝĐŬǁŝƚ͕ĂŶĚŐĞŶĞƌŽƐŝƚǇŚĞůƉĞĚďƌĞĂŬƵƉƚŚĞŵŽŶŽƚŽŶǇŽĨĂŶŽƚŚĞƌǁŝƐĞŽƌĚŝŶĂƌǇĚĂǇ͘
/ƚǁĂƐĞǀŝĚĞŶƚƚŽĂŶǇŽŶĞǁŚŽĞŶƚĞƌĞĚƌ͘<͛ƐŽĨĨŝĐĞƚŚĂƚŚĞǁĂƐĨŝƌƐƚĂŶĚĨŽƌĞŵŽƐƚĂŶĂĐĂĚĞŵŝĐ
ŵĞŶƚŽƌĂŶĚĂĚǀŽĐĂƚĞĨŽƌŚŝƐƐƚƵĚĞŶƚƐ͕ĂƐƐƚƵĚĞŶƚƐŚĞĂĚǀŝƐĞĚǁĞƌĞŽĨƚĞŶŝŶŚŝƐƉƌĞƐĞŶĐĞ͘,ŝƐĚĞĚŝĐĂƚŝŽŶ
ƚŽŚŝƐƐƚƵĚĞŶƚƐĂŶĚƚŚĞƐƚĂĨĨĂƚE^ǁĂƐĐĞƌƚĂŝŶůǇĞǀŝĚĞŶƚĂĐƌŽƐƐƚŚĞĐĂŵƉƵƐƚŚƌŽƵŐŚƚŚĞƌĞƐƉĞĐƚĂŶĚ
ƌĞǀĞƌĞŶĐĞĞǆŚŝďŝƚĞĚƚŽǁĂƌĚƐŚŝŵ͘,ĞƉůĂǇĞĚĂƉĞƌƐŽŶĂůůǇŝŶƐƚƌƵŵĞŶƚĂůƌŽůĞŝŶƐƵƉƉŽƌƚŝŶŐŵǇĐŽŶƚŝŶƵŝŶŐ
ĞĚƵĐĂƚŝŽŶƚŚƌŽƵŐŚŚŝƐĞŶĐŽƵƌĂŐĞŵĞŶƚ͘
Ɛ Ă ĨƌŝĞŶĚ͕ ƐŽŵĞ ŽĨ ƚŚĞ ƚŚŝŶŐƐ / ŶŽƚŝĐĞĚ ŽǀĞƌ ƚŚĞ ǇĞĂƌƐ ƚŚĂƚ ƉƌŽǀĞĚ ŚŝƐ ĚĞĞƉ ĐĂƌŝŶŐ ĂŶĚ
ĐŽŶƐŝĚĞƌĂƚŝŽŶĨŽƌŽƚŚĞƌƐǁĂƐŚŝƐŬĞĞŶŽďƐĞƌǀĂƚŝŽŶƐŬŝůůƐ͖ƌ͘<ǁŽƵůĚĂůǁĂǇƐƌĞĐŽŐŶŝǌĞŵŝůĞƐƚŽŶĞƐƐƵĐŚ
ĂƐ ĂǁĂƌĚƐ͕ ƌĞĐŽŐŶŝƚŝŽŶƐ͕ ĐĞůĞďƌĂƚŝŽŶƐ͘ /Ĩ ǇŽƵ ǁĞƌĞ ŶŽƚ ŚĂǀŝŶŐ ƚŚĞ ďĞƐƚ ĚĂǇ͕ ŚĞ ǁŽƵůĚ ĂůƐŽ ŶŽƚŝĐĞ ĂŶĚ
ĐĂƌĞĚĞŶŽƵŐŚƚŽĂƐŬŚŽǁŚĞĐŽƵůĚŚĞůƉ͘/ĨƚŚĞƌĞǁĂƐĂǁĂǇŚĞĐŽƵůĚŚĞůƉ͕ŚĞĚŝĚƐŽǁŝƚŚŽƵƚŚĞƐŝƚĂƚŝŽŶ͘
/ƚǁĂƐĞǆŚŝůĂƌĂƚŝŶŐƚŽďĞĂƉĂƌƚŽĨƚŚĞĞǆƉĂŶƐŝŽŶŽĨ^hEzWŽůǇĂŶĚǁŝƚŶĞƐƐƚŚĞĐŽŶƐƚĂŶƚŐƌŽǁƚŚ
ĂŶĚŝŶŶŽǀĂƚŝŽŶƐ͘/ŚĂǀĞĂĐŽƵƐŝŶǁŚŽŝƐĂƚƚĞŶĚŝŶŐƚŚĞdĞĐŚsĂůůĞǇ,ŝŐŚ^ĐŚŽŽů͘/ǁĂƐĂďůĞƚŽƉĂƌƚŝĐŝƉĂƚĞ
ŝŶ ŵĂŶǇ ŽĨ ƚŚĞ ĞĂƌůǇ ĐŽŵŵƵŶŝƚǇ ŽƵƚƌĞĂĐŚ ƉƌŽŐƌĂŵƐ ƚŚĂƚ ďƌŽƵŐŚƚ <ͲϭϮ ƐĐŚŽŽůƐ ŽŶƚŽ ƚŚĞ ĐĂŵƉƵƐ ĨŽƌ
ŚĂŶĚƐͲŽŶ ^dD ĞǆƉĞƌŝŵĞŶƚƐ͘ / ŽĨƚĞŶ ǁŽŶĚĞƌ ŚŽǁ ŵĂŶǇ ŽĨ ƚŚĞ ƐƚƵĚĞŶƚƐ ǁĞƌĞ ĂďůĞ ƚŽ ƌĞĐŽŐŶŝǌĞ Ă
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ƉƌŽŐƌĂŵƐĂŶĚƚŚĞŽƉƉŽƌƚƵŶŝƚŝĞƐŝƚĂĨĨŽƌĚĞĚƚŽƐŽŵĂŶǇƌĞƐŝĚĞŶƚƐŽĨEĞǁzŽƌŬ͘
ƌ͘<ƌĞĐŽŐŶŝǌĞĚĂŶĞĞĚĂŶĚŚĂĚƚŚĞŝŶŶŽǀĂƚŝǀĞŝĚĞĂƐƚŽĨŝůůƚŚĞŶĞĞĚďƵƚŵŽƌĞƚŚĂŶƚŚĂƚ͕ŚĞŚĂĚ
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ƉƌŽǀŝĚŝŶŐĨŽƌƚŚĞĐŽŵŵƵŶŝƚǇ͘
ƐĂůŝĨĞůŽŶŐƌĞƐŝĚĞŶƚŽĨƚŚĞĂƌĞĂ/ĨĞĞůĂďƵŶĚĂŶƚůǇĐŽŶĨŝĚĞŶƚƚŚĂƚůĂŝŶ<ĂůŽǇĞƌŽƐďƌŽƵŐŚƚŵŽƌĞ
ŽƉƉŽƌƚƵŶŝƚǇ ĂŶĚ ĞǆƉĞƌƚŝƐĞ ƚŽ ŽƵƌ ĐŽŵŵƵŶŝƚǇ ƚŚĂŶ ĐŽƵůĚ ŚĂǀĞ ďĞĞŶ ŝŵĂŐŝŶĞĚ ĂŶĚ ǁĞ ĂƌĞ ďĞƚƚĞƌ ŽĨĨ
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ĐŽŶƚŝŶƵĞ ƚŽ ĞǆŝƐƚ ĂƐ Ă ƌĞƐƵůƚ ŽĨ ŚŝƐ ĚĞĚŝĐĂƚŝŽŶ͘ / ŚŽƉĞ ǇŽƵ ǁŝůů ƚĂŬĞ ŝŶƚŽ ĐŽŶƐŝĚĞƌĂƚŝŽŶ ƌ͘ <͛Ɛ
ĐŽŵŵŝƚŵĞŶƚƚŽƐƚƵĚĞŶƚƐĂŶĚŚŝƐĐŽŵŵƵŶŝƚǇĚƵƌŝŶŐŚŝƐƐĞŶƚĞŶĐŝŶŐ͘
/ŶĐŽŶĐůƵƐŝŽŶ͕ƚŚĂŶŬǇŽƵĨŽƌǇŽƵƌƚŝŵĞĂŶĚĐŽŶƐŝĚĞƌĂƚŝŽŶŝŶƚŚŝƐŵĂƚƚĞƌ͘
^ŝŶĐĞƌĞůǇ͕
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Carl J. Kempf III
November 15, 2018
Hon Valerie E. Caproni

Thurgood Marshall
United States Courthouse
40 Foley Square
New York, NY 10007
Re: Alain E. Kaloyeros
Dear Judge Caproni:
I currently serve as the County Attorney for the County of Rensselaer, and I have
known Alain E. Kaloyeros since February of 2009, when I began my employment at SUNY
Polytechnic Institute (“SUNY Poly”), then known as The College of Nanoscale Science and
Engineering (“CNSE”).
From February 2009 through September 2016, and particularly from February
2014 through September 2016 during which time I served as General Counsel, Vice
President, and Special Legal Advisor at SUNY Poly, I worked side-by-side with Alain and
witnessed first-hand his passion, deep dedication, and tireless efforts as a public servant
for envisioning, establishing, and delivering big science research and development
programs at CNSE and it successor SUNY Poly to create jobs and economic opportunity for
thousands of individuals and their families.
Alain’s work toward providing jobs and economic opportunity often attracted much
public attention; Alain’s charitable contributions to the community, however, most
unfortunately often went unnoticed. I am aware that a jury found Alain guilty on two
counts of wire fraud and one count of wire fraud conspiracy, and I am writing to you to
highlight Alain’s charitable work and to strongly urge you to take his charitable work into
consideration as part of sentencing.
Hon Valerie E. Caproni
November 15, 2018
Page 2 of 2
a leading nonprofit organization

committed to
The Foundation is widely recognized for its innovative
and effective approach in partnering with
In 2010, honored
Alain, CNSE, and Celebration. Alain and CNSE
were recognized for commitment to advancing healthcare through pioneering education
and leading-edge research and development in nanobioscience, as well as contributions to
the economic and educational growth of the Albany, New York region and New York State.
Due to the participation by Alain and CNSE, the raised

thousands of dollars for the Foundation to use for
That evening, the noted that the efforts of CNSE under Aliain’s
leadership in the area of nanobioscience will shape the future of healthcare and that such
developments in healthcare
During my time at CNSE and SUNY Poly, I personally witnessed Alain’s great efforts
resulting in truly transformational and amazing economic opportunity for thousands of
people and their families.
Thank you for your consideration and, again, I strongly urge you to take Alain’s
community charitable contributions into account as part of sentencing.
Most respectfully yours,
Carl J. Kempf III

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ƵƉƐƚĂƚĞEĞǁzŽƌŬƐĞƌŝŽƵƐůǇ͘

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^ĐŽƚƚƉĂƚƌŝĐŬ:^ĞůůŝƚƚŽ
ŝŐŝƚĂůůǇƐŝŐŶĞĚ
EXHIBIT 49
EXHIBIT 50
Case 1:1 Case 1:16-cr-00776-VEC
-cr-004S7-NGG DocumentDocument 914-5
224-2 Filed Filed 11/19/18
04/11/18 Page 112Page
of 3802 PagelD
of 75 #: 4674
1
1 UNITED STATES DISTRICT COURT
2 DISTRICT OF CONNECTICUT
3
UNITED STATES OF AMERICA ,
4 Plaintiff I NO : 3 : 06CR137(CFD)
5 vs .
April 30 , 2009
6 ROBERT D. GRAHAM ,
Defendants .
7
8 450 Main Street

Hartford , Connecticut
9
10 SENTENCING
11 B E FOR E :
THE HONORABLE CHRISTOPHER F . DRONEY , U . S . D. J ,
12
13 A P PEA RAN C E S :
14
For the Plaintiffs ERIC J . GLOVER , AU SA
15 U. S . Attorney ' s Office
157 Church Street , 23rd Floor
16 New Haven , CT 06510
17 RAYMOND E . PATRICCO , AUSA

U. S . Attorney ' s Office
18 2100 Jamieson Avenue
Alexandria , VA 22314
19
20
Court Reporter Martha C . Marshall , RMR , CRR
21
22
23
24
25 Proceedings recorded by mechanical stenography , transcript

produced by computer .
-cr-00457-NGG DocumentDocument 914-5
224-2 Filed Filed 11/19/18
04/11/18 Page 113Page
of 3803 PagelD
of 75 #: 4675
2
1
A P PEA RAN C E S :
2 (Continued)
4 For the Defendant , ALAN M. VINEGRAD , ESQUIRE

Robert D. Graham DOUGLAS BLOOM , ESQUIRE
5 PAM CARTER , ESQUIRE
Covington & Burling
6 1330 Avenue of the Americas
New York , NY 10019
7
WILLIAM F . DOW , III , ESQUIRE
8 Jacobs , Grudberg , Belt , Dow &
Katz , p. e .
9 350 Orange Street
New Haven , CT 06503 .
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1 THE COURT : Good morning . This is the case of the
2 United States of America versus Robert Graham . It ' s our
3 criminal number 3 : 06CR137 .
4 If I could have the appearances of counsel for the
5 record , please .
6 MR . PATRICCQ : Good morning , your Honor . Ray
7 Patricco and Eric Glover on b ehalf of the United States .
8 MR . VINEGRAD : Good morning , your Honor . Alan
9 Vinegrad on behalf of Rob Graham . With me is Doug Bloom ,
10 Willie Dow , and Pam Carter .
11 THE COURT : Thank you .
12 The record should also reflec t that Senior Un i ted

13 States Probation Officer Brian Topor is present with us i n
14 the courtroom .
15 On February 25 , 2008 , Mr . Graham was convicted by
16 a jury on Counts One through Si x teen of the Superseding
17 Indictment which charged him with conspiracy , securities
18 fraud , false statements to the SEC , and mail fraud .

19 A Presentence Report was prepared for the court by
20 the United States Probation Office . And I have reviewed
21 that report dated June 12th , 2008 , and its addenda of August
22 7th , 2008 and November 10th , 2008 in consultation with their
23 principal author , Senior United States Probation Officer Ray

24 Lopez as well as Mr . Topor .
25 Additionally , I ' ve reviewed the defendant ' s

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1 sentencing memos dated September 5 , 2008 and November 25 --
2 I ' m sorry , November 21 , 2008 , as well as the Government ' s
3 memos of September 5 , 2008 and September 19 , 2008 . I ' ve
4 also reviewed the letters of July 22 , 2008 and August 4th ,
5 2008 from Attorney Vinegrad , and we ' ll deal with the
6 objections to particular paragraphs of the Presentence
7 Report later that are set forth in those letters .
8 I have reviewed the materials submitted by the

9 parties concerning loss calculation , number of victims , and
10 restitution and issued my opinion on those matters
11 pLeviously .
12 I ' ve also reviewed the many letters submitted

13 concerning the sentencing of Mr . Graham . The defendant has
14 objected to certain aspects of the Presentence Report and is
15 seeking a role adjustment , a downward departure , and a
16 non - guidelines sentence , as we Ill discuss more fully later
17 in this sentencing .
18 Mr . Vinegrad , is what l Ive just summarized an
19 accurate assessment of the current state of the record with
20 respect to this sentencing?
21 MR . VINEGRAD : Yes , your Honor .
22 THE COURT : Have you reviewed the PSR in this
23 case?
24 MR . VINEGRAD : Yes , I have .
25 THE COURT : Do you have any additional objections

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1 to it?
2 MR . VINEGRAD : No , I do not .
3 THE COURT : Mr . Graham , have you reviewed the
4 Presentence Report in your case?
5 THE DEFENDANT : Yes , your Honor .
6 THE COURT : Have you gone over it with
7 Mr . Vinegrad?
9 THE COURT : Mr . Patricco , you ' re going to be
10 speaking for the Government today , is that right?
11 MR . PATRICCO : Yes I yOUL HonoI' .
12 THE COURT : Do you have any additional objections

13 to the Presentence Report?
14 MR . PATRICCO : No , your Honor .
15 THE COURT : Let me start with a list of topics and
16 we ' ll see if you have any others before we hear your general
17 sentencing comments .
18 First , is there any additional comments on the
19 issue of loss calculation , number of victims , and
20 restitution other than an argument for a downward departure
21 or a non - guideline sentence? Does the Government want to
22 add anything?
24 THE COURT : How about you , Mr . Vinegrad?
25 MR VINEGRAD : No , your Honor .

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1 THE COURT : Then I ' ll incorporate my opinion of
2 October 31 , 2008 as rulings on those issues today . And in
3 accordance with that ruling , 30 levels will be added for the
4 Court ' s finding on amount of loss , and 6 levels will be
5 added for the Court ' s finding of more than 250 victims .
6 And I know you preserve your objections to that ,
7 Mr . Vinegrad .
8 MR . VINEGRAD : Thank you .
9 THE COURT : The second is the defendant objected
10 to the Presentence Report ' s application of the abuse of a

11 posiLion of lrusL enlidIlcemenL pULsuanL Lo UniLed SLates
12 Sentencing Guidelines Section 3B1 . 3 . And it appears that
13 the Government agrees that an enhancement should not apply
14 for abuse of position of trust , but it argues that an
15 enhancement should apply under that section for use of
16 special skill . Is that fair to say?
17 MR . PATRICCO : That ' s correct , your Honor .
18 THE COURT : And do you object to that , Mr .
19 Vinegrad?
20 MR . VINEGRAD : We did not take issue with that .
21 Instead , we argued that if that enhancement were applied it
22 would further support our motion for a downward departure on
23 the ground that the offense level overstates the

24 seriousness of the offense .

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1 The next is the defendant argues that he should
2 receive a four - level reduction for a minimal role pursuant

3 to 381 . 2 (al . And the Government objects to that , disagrees
4 with it . And I ' ll address that issue later in the
5 sentencing and give a chance to comment on it , Mr . Vinegrad
6 and Mr . Patricco .
7 The defendant previously objected to the PSR ' s
8 finding that the Mandatory -- this was the finding of the
9 PSR -- that the Mandatory Victims Restitution Act , 18 U. S .
10 Code Section 3663A , is applicable in this cases . As
11 explained in Illy OcLober 31 , 2008 ruling , because the CourL
12 finds that an order of restitution is inappropriate under 18
13 U. S . Code Section 3663A(c) (3) , it is unnecessary to address
14 the defendant 1 s objection that the offenses charged are not
15 encompassed by the MVRA .
16 Next , in your letter of July 22 , 2008 , Mr .
17 Vinegrad , you had certain objections to certain inaccuracies
18 in the Presentence Report , but I think those have all been
19 corrected . Are you satisfied with that?
20 MR . VINEGRAD : Yes , I am .
21 THE COURT : And then the Government objected to
22 the PSR s finding that the loss cannot be reasonably

1
23 determined but I , in my opinion of October 31 , 2008 , ruled

24 on it , that issue .
25 You re satisfied with that resolution , is that

1
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1 right , Mr . Patricco?
2 MR . PATRICCO : Yes , we are , your Honor .
3 THE COURT : Let ' s see . There should be certain
4 statutory -- corrections to the statutory penalties for some
5 of the counts in the PSR , especially securities fraud and
6 false statements to the SEC or , namely , those two areas . On
7 July 30 , 2002 , 15 U. S . Code Section 77f£ was amended to
8 increase the maximum penalty from 10 years imprisonment and
9 a one million dollar fine to 20 years imprisonment and a

10 five million dollar fine . Counts Two , Three , Four , Five ,
11 Six , Seven , EighL , dnd Eleven were charged [or conduct on
12 dates prior to July 30th , 2002 , and therefore the maximum
13 penalties on each of those counts are 10 years imprisonment
14 and a one million dollar fine . Counts Nine , Ten , Twelve ,
15 and Thirteen were charged for conduct on dates after July
16 30th , 2002 , and therefore the maximum penalties on each of
17 those counts are 20 years imprisonment and a five million
18 dollar fine .
19 And additionally , I think that pursuant to the
20 Uni ted States Sentencing Guidelines Section 5El . 2 (c) (3) - (4) ,
21 the PSR should reflect that the correct guideline fine range
22 is $25 , 000 to 5 million dollars .
23 Do you agree with all that , Mr . Vinegrad?
24 MR . VINEGRAD : Yes , I do .
25 THE COURT : And you , too , Mr . Patricco?

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1 MR . PATRICCO : Yes , your Honor .
2 THE COURT : We ' ll order those changes then .

3 Role in the offense . You want to be heard on that
4 now , Mr . Vinegrad?
5 MR . VINEGRAD : I have nothing further to add in
6 addition to what we said in our papers .

7 THE COURT : How about you , Mr . Patricco ?
8 MR . PATRICCO : Same as we addressed in our

9 papers .
10 THE COURT : So r ' ll rule on role in the offense at
11 lhis lime .
12 Mr . Graham argues t ha t a four - level downward

13 adjustment is warranted under United States Sentencing
14 Guidelines Section 381 . 2(a) for a minimal role in the
15 offense or a two - level adjustment for minor role . And the

16 Government disagrees .
17 That section of the guidelines provides a range of
18 adjustments for a defendant who plays a part in committing
19 the offense that makes him substantially less culpable than
20 the average participant . And that ' s a quote from
21 Application Note 3 (A) .
22 The Sentencing Guidelines Section 3Bl . 2(a)
23 provides for a four - level downward adjustment " if the

24 defendant was a minimal participant in any criminal
25 activity . " More specifically , the minimal participant role

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1 adjustment " is intended to cover defendants who are plainly
2 among the least culpable of those involved in the conduct of

3 a group . The defendant ' s lack of knowledge or understanding
4 of the scope and structure of the enterprise and of the
5 activities of others is indicative of a role as minimal
6 participant ." The Application Note also explains that the
7 Commission " intended that the downward adjustment for a
8 minimal participant will be used infrequently ." And that ' s
9 from Application Note 4 .
10 Additionally , United States Sentencing Guidelines
11 Seclion 3Bl . 2Ib) provides [or a lwo level downward
12 adjustment " if the defendant was a minor participant in any
13 criminal activity ." In United States v . Lopez , the Second
14 Circuit explained that the minor participant adjustment
15 "applies to a defendant who is less culpable than most other
16 participants , but whose role could not be described as
17 minimal ."
18 A reduction is not available under Section 3Bl . 2
19 "simply because the defendant played a lesser role than his
20 co - conspirators ; to be eligible for a reduction , the
21 defendant ' s conduct must be minor or minimal as compared to
22 the average participant in such a crime ." And that ' s a
23 quote from the Rahman case from the Second Circuit , 189 F . 3d
24 88 , page 159 , a per curiam decision in 1999 . Further ,
25 " under United States Sentencing Guidelines Section 3Bl . 2 ,

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1 the District Court is required to gauge the appellant ' s
2 culpability relative to the elements of the offense of

3 conviction as well as in relation to the co - conspirators . "
4 And that ' s a quote from the Neils decision from the Second
5 Circuit in 1998 . In evaluating a defendant ' s role , we look
6 to factors such as " the nature of the defendant ' s
7 relationship to other participants , the importance of the
8 defendant ' s actions to the success of the venture , and the
9 defendant ' s awareness of the nature and scope of the
10 criminal enterprise ." That ' s a quote from the Garcia
11 decision [rom the Secoud CircuiL in 1990 .
12 Having considered t he factors identified in the
13 guidelines and the case law , I find that Mr . Graham ' s role
14 in the offense does not warrant a downward adjustment under
15 3B1 . 2 .
16 Mr . Graham was involved in this transaction from
17 November 2000 through at least May 2001 , and was important
18 to its success . Specifically , he prepared the contract that
19 completed the paper trail of the LPT fraud , and he reviewed
20 and offered advice to his co - conspirators about the contents
21 of the fake offer letter .
22 Mr . Graham also knew about and understood the
23 scope and structure of the LPT fraud . Although Mr . Graham

24 argues that no one told him the underlying contracts were
25 already reinsured , his knowledge of the fraudulent nature of

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1 the LPT can be inferred from other evidence . First , Mr .
2 Graham participated in the November 20 , 2000 meeting with

3 Monrad , Garand , Napier , and Milton in which Monrad told
4 Milton that Gen Re would deposit account for the
5 transaction . Following that meeting , Mr . Graham sent an
6 e-mail to Napier , Garand , and Monrad in which he explained
7 the benefit of using a non - U. S . entity so that reviewers
8 would not be able to "connect the dots to CRD and beyond ."
9 Mr . Graham also revealed his knowledge of the true nature of
10 the deal when he expressed his concern about it to
11 ML' . NapieL' following the NovembeL' 20Lh meeLlng . Next , on
12 December 22 , 2000 , Mr . Graham updated Gen Re ' s General
13 Counsel , Timothy McCaffrey , about the transaction , telling
14 him that "our group will book the transaction as a deposit ,
15 but how AIG books it is between them , their accountants , and
16 God ; there is no undertaking by them to have the transaction
17 reviewed by their regulators ." Finally , in a March 7 , 2001
18 phone call , Mr . Graham discussed how AIG ' s approach to
19 compliance issues was different than Gen Re ' s , and said that
20 he was "pretty comfortable that our own skirts are clean ,
21 but that they have issues ."
22 Because the Court finds that Mr . Graham was aware
23 of the nature and scope of the LPT and played a significant

24 role in its success , he is not substantially less culpable
25 than the average participant , and will not receive a

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1 mitigating role adjustment .
2 And so I ' ve completed my finding on that issue .
3 I ' ve dealt with the use of special skill and will apply
4 that . And I ' ll make the following finding about that .
5 That adjustment under 381 . 3 applies when a
6 defendant used a special skill in a manner that
7 significantly facilitated the commission or concealment of
8 the offense . Application Note 4 defines special skill to be
9 " a skill not possessed by members of the general public and
10 usually requiring substantial education , training or
11 licensing ," and ::;pecifically includes lawyers as an examIJle

12 of those possessing special skill . Here , Mr . Graham ' s
13 special skill as a lawyer significantly facilitated the
14 commission and concealment of the LPT fraud . Mr . Graham

15 used his skill and experience to draft the contract and
16 review and suggest edits to the fake offer letter , and to
17 otherwise provide legal counsel on the transaction .
18 Why don ' t we turn to downward departures at this
19 time , Mr . Vinegrad . I ' m going to list what I understand to
20 be your bases for a downward departure and I ' m going to ask
21 you whether you agree with me .
22 The first is the offense level substantially
23 overstates the seriousness of the offense under 2B1 . 1 of the

24 Guidelines , Application Note 19(C) ;
25 The second is the cumulative effect of

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1 substantially overlapping enhancements results in a

2 significant increase in the sentencing range minimum not
3 adequately considered by the Sentencing Commission ;
4 The third is Mr . Graham ' s conduct represented
5 aberrant behavior ;
6 The fourth , Mr . Graham was not motivated by

7 personal gain ;
8 Fifth , Mr . Graham ' s extraordinary civic and
9 charitable works ;
10 Sixth would be the unique and significant
11 collaleral con::;equences lhal Mr . Graham has [aced and will
12 face from his prosecution and conviction :

13 Seventh is a combination of those factors under
14 the Rioux case from the Second Circuit and the Koon case
15 from the United States Supreme Court ; and
16 Lastly , the Sixth Amendment to the U. S .
17 Constitution would require a jury determination as to the

18 amount of loss and number of victims .
19 And the Government objects to those , Mr . Patricco ,
20 right?
21 MR . PATRICCO : Correct , your Honor .
22 THE COURT : Is that a fair statement of your
23 arguments?
25 THE COURT : And you ' re seeking a non - guidelines

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1 sentence also based on those reasons , but also the
2 application of the other factors under 18 U. S . Code Section

3 3553 (ai , right?
5 THE COURT : And the Government objects to it .
6 Does the Government object to a non-guidelines
7 sentence or the extent of the non - guidelines sentence , Mr .
8 Patricco?
9 MR . PATRICCO : To the extent of the non - guidelines
10 sentence .
11 THE COURT : The CourL adopLs the [acLual
12 statements in the PSR as to which there are no objections .
13 I direct the Official Court Reporter to make a written
14 record of the colloquy today on these matters . I Also
15 direct the Clerk and the U. S . Probation Office to append a
16 copy of this written record to any copy of the Presentence
17 Report that is hereafter made available to the U. S . Bureau
18 of Prisons .
19 Next , what I ' d like to do is to state what I
20 believe the Sentencing Guidelines calculations are following
21 my decisions on those issues .
22 The adjusted offense level would be 47 ;
23 Criminal History Category for Mr . Graham is I ;

24 The imprisonment range is life under the
25 guidelines ;
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1 Supervised release range is two to three years ;

2 Probation would not be available , absent a
3 downward departure or a non-guidelines sentence ;
4 A fine of $25 , 000 to 5 million dollars is called
5 for .
6 And lastly , the special assessment of $1600 .
7 Do you agree with those , Mr . Topor?
8 MR . TOPOR : I do , your Honor .
9 THE COURT : Mr . Patricco , you too?
11 THE COURT : Mr. Vinegrad , I know LhaL you objecL
12 to the guidelines , but do you agree to the math at least

13 that I ' ve gone through?
14 MR . VINEGRAD : Yes , I do .
15 THE COURT : Would the Government care to address
16 the court about an appropriate sentence in this case?
18 Your Honor , to put Mr . Graham ' s crime into its
19 proper perspective , you must begin with his personal history
20 and characteristics .
21 Mr . Graham was a lawyer -- is a lawyer who twice ,
22 in both Connecticut and Delaware , took a solemn oath to
23 uphold the law in all circumstances . He ' s a former criminal
24 public defender in Delaware . At Gen Re he was the company ' s
25 expert on reinsurance regulations and accounting rules .
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1 Indeed , he was an industry industry expert . Back in 2004 ,
2 he testified under oath in a lawsuit involving Gen Re t hat

3 " I ' ve served as the principal draftsman of most of the
4 reinsurance related model laws and regulations and
5 accounting rules since 1986 ."
6 In addition , when Gen Re was a public company , Mr .
7 Graham was responsible for preparing its 10 -K reports and
8 its other financial filings with the SEC . And perhaps most
9 importantly for purposes here , bac k in 1997 , he gave a legal
10 opinion in an e - mail on the very issue that is at the heart
11 of lhis case . In an e - mail enlilled " Side Lellers " h e
12 advised Chris Garand and ot hers in no uncertain terms that
13 they should put oral side understandings in writing and
14 state explicitly to auditors and regulators that these are
15 non - enforceable or else you might have " fraud and RI CO
16 problems " and " go to jail ." He e xplained that this is
17 because oral side understandings might "eliminate the
18 reasonable possibility of significant risk of loss to the
19 reinsurer which is one of the conditions to reinsurance
20 accounting under both GAAP and SAP ."
21 It ' s no over - statement to say that no one involved
22 in the LPT was more sensitized to what was at stake and what
23 the potential repercussions were than Mr . Graham . So in

24 November of 2000 , when he was presented with the prospect of
25 this deal , there should have been no equivocation . There

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1 should have been no gray areas . Rob Graham should have been
2 as blunt with his bosses on this deal as he apparently was

3 with them on others . He should have told them, no , this is
4 wrong , I ' m not getting involved , and neither should you .
5 Because that is the duty of in - house corporate counsel , to
6 protect business people from themselves . And the facts i n
7 this case have made clear he completely failed in that duty .
8 Now , what is also clear as to Mr . Graham is that
9 he didn ' t just put his head in the sand in this case and
10 fail to act , he became an active participant in the LPT
11 deal .
12 First , as t he cour t no t ed just before , he appl i ed
13 his vast knowledge of reinsurance and accounting
14 regulations , and advised his co - conspirators to structure
15 the LPT in a way that might conceal it from auditors and
16 regulators .
17 Secondly , he drafted and edited the fraudulent
18 documents in this case that , in case regulators and auditors
19 did ever look at this transaction , they would be misled as
20 to its true nature .

21 The court recalls , and I ' ll be brief on this ,
22 Government ' s Exhibit 43 , Mr . Graham ' s e - mail to Ms . Monrad ,
23 Mr . Garand , and Mr . Napier after the November 20th

24 conference call wherein he suggested that AIG use an
25 offshore entity as the contracting party for the deal

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1 because " the benefit of this approach would be that since
2 the AIG U. S . entities would report the AIG non - U. S . entity

3 as cedants on Schedules F and P, any review of AIG U. S .
4 entity statements wouldn ' t be able to connect the dots to
5 CRD and beyond ."
6 The court also recalls Government ' s Exhibit 57
7 which is an e - mail from Rick Napier to Rob Graham and
8 others . That e - mail forwarded the November 17th e - mail that
9 contained the secret side deal in this case about the one
10 percent fee and the two percent rebate , along with the draft
11 slip lhal made aclually no wenlion of lhem . Mr . Graham ' s
12 response was not to ques t ion this fee rebate and omission
13 from the slip contract , but only to advise that " since the
14 fee rebate will be coming from the CCA Commission , we should
15 be careful with inter - company transfers . If they are
16 reportable under the Holding Company Act , a curious outside
17 party could deduce that there is a link between the
18 transactions . "
19 He also , your Honor , went so far later in the
20 conspiracy , as your Honor noted , to advise John Houldsworth
21 point blank on tape , on Government ' s Exhibit 137 , that AIG ' s
22 "organizational approach to compliance issues has always
23 been pay the speeding ticket which is different from our

24 organizational approach . So I ' m pretty comfortable that our
25 own skirts are clean , but that they , AIG , have issues ."
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1 Together , your Honor , Rob Graham ' s advice had the
2 effect of galvanizing this conspiracy . That ' s because when

3 a lawyer advises you how to conceal a transaction , it gives
4 you comfort that you won ' t get caught . And even if you do
5 get caught , you know that his involvement in the transaction
6 will provide you with some cover , especially when he tells
7 you that it ' s the other company ' s problem , not yours . So
8 even as Mr . Graham claims that his overall participation in
9 the LPT deal took only a few hours of his time , those were
10 some of the most crucial hours of this conspiracy , given who
11 Rob GL'aham wa::; , whaL he L'epL'esenLed Lo Lhe oLher
12 co - conspirators in this case , and what he said and did .
13 Now , in his papers , your Honor , Mr . Graham claims
14 that he tried to do the right thing by raising his concerns
15 about the LPT in an e - mail to his boss , Tim McCaffrey . But
16 any objective reading of Government ' s Exhibit Number 84
17 reveals a much less noble purpose .
18 As the court recalls , Mr . Graham wrote : Our group
19 will book the transaction as a deposit . How AIG books it is
20 between them , their accountants , and God . Ron , et al have
21 been advised of and have accepted the potential reputational
22 risk that U. S . regulators , insurance and securities , may
23 attack the transaction and our part in it .

24 No where in this e-mail does Mr . Graham say that
25 he ' s concerned about the transaction . No where does he say

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1 he ' s uncomfortable . And nowhere does he suggest that
2 Mr . McCaffrey talked to Mr . Ferguson about the wisdom of

3 going forward with this transaction . This e - mail , in an
4 objective reading , is nothing more than someone seeking
5 cover from their boss by copying them on an e - mail they
6 received . The simple message to Mr . McCaffrey is that the
7 ship has sailed on this transaction and that he shouldn ' t
8 interfere with it . So far from trying to do the right thing
9 in this case , the e - mail assured that this deal would go
10 forward unimpeded by the general counsel of Gen Re .
11 And whaL ' s Lruly perplex ing abouL Mr . Graham ' s
12 statement that he t ried t o do t he right thing is that over
13 the years since the LPT , he had many opportunities to have a
14 crisis of conscience about the deal and to do something
15 about it . In the wake of the PNC and AIG , Brightpoint cases
16 and the Enron cases , he was repeatedly warned point blank
17 about the dangers of improper documentation and side
18 agreements and aiding and abetting unscrupulous clients .
19 But every time he had the chance to do the right thing and
20 raise his voice about the LPT deal and try to reverse it , he
21 apparently did nothing and remained silent . I ' ll point to a
22 couple of e - mails and notes taht he received through the
23 years , your Honor , very briefly .

24 In March of 2002 , Mr . McCaffrey sent him an e - mail
25 entitled " Finite Risk Contracts " that summarized a

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1 conversation in an executive committee meeting that
2 Mr . Brandon had with Mr . McCaffrey and others . In that Mr .

3 McCaffrey and Mr . Brandon also says that all provisions and
4 understandings of financial reinsurance contracts need to be
5 recorded and contained in a single document . No side
6 letters , no use of multiple contracts .
7 Later in 2002 , in July , Mr . Brandon sent an e - mail
8 entitled "SEC Findings on PNC/AIG Transactions ," where he
9 wrote to Mr . Graham and others : Below is the SEC findings
10 on PNC financial transactions with AIG that were designed to
11 L'emove non - performing asseLs from PNC ' s balance sheet and
12 income statement . Lots of parallels to some financial
13 reinsurance transactions . Avoiding reputational risk in all
14 of our transactions , traditional or non - traditional , is
15 paramount .
16 In 2003 , in the summer , Mr . Brandon attached a

17 note from Warren Buffett and a New York Times editorial
18 regarding Citigroup and J . P . Morgan aiding and abetting
19 Enron in committing a fraud . In that note , Mr . Brandon
20 warned , " simply put , we cannot enter into any transaction
21 that helps a client deceive , mislead investors or
22 regulators . If anyone has a question about a particular
23 transaction , please discuss it with either Tad or me . "

24 And two months later , the last one , your Honor , in
25 October of ' 03 , Mr . Brandon sent him another note from

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1 Mr . Buffett and news about the PNC/Brightpoint/AIG
2 settlement . He attached an article called " Son of Enron "

3 that discussed companies cooking their books through finite
4 insurance policies and attached an IBNR Weekly article that
5 said : " The recent SEC settlement with AIG highlighted in a
6 very public forum the practice of side letters written to
7 supersede the formal reinsurance contract . In the AIG
8 example , the agreements were meant to eliminate any risk
9 transfer in the original agreement shown to auditors ." And
10 then on the cover note Mr . Brandon stated this is another
11 L'emindeL' we cannoL enLeL' inLo any LL'ansacLion LliaL helIJs a

12 client deceive or mislead inves t ors or regulators .
13 Your Honor , despite all these red flags over the
14 years from Mr . Brandon that other companies were engaging in
15 being investigated into similar conduct as the LPT, Rob
16 Graham apparently did nothing to suggest reversing this deal
17 to his bosses or to anyone else . Now , of course , we
18 recognize that it would have taken some courage for him to
19 do this especially since the evidence in this case showed
20 that Mr . Brandon and Mr . McCaffrey were involved in the LPT ,
21 but that is what is expected of in - house corporate counsel .
22 That was his job and apparently he did not do it . Simply
23 put , your Honor , Mr . Graham had many chances to take

24 responsibility for this crime before he got caught and he
25 failed in those chances . So in light of those missed

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1 opportunities , any expressions of responsibility or remorse

2 here today by Mr . Graham should be met with some skepticism .
3 Especially since , as your Honor noted , Mr . Graham was
4 drafting contracts well through -- into the year 2001 .
5 Mr . Graham also seeks leniency in his papers
6 because he claims unique collateral consequences as a result
7 of him being a lawyer . Specifically , he claims to lose his
8 law license and will be unable to pursue a post Gen Re
9 career as a reinsurance arbitrator . Even putting aside the
10 fact that the loss of his law license as a result of his
11 convicLion in ConnecLicuL is by no means a sure Ul.i.ng , and I
12 presume his arbitration practice would be based here in

13 Connecticut , his argument should carry little weight with
14 the court for another reason . That ' s because Rob Graham
15 voluntarily allowed his Connecticut law license to lapse
16 even before this trial began . According to the Connecticut
17 Bar ' s website , on May 22 , 2007 , seven months before this
18 trial began and well before any finding of guilt , Mr .
19 Graham ' s bar license was administratively suspended by the
20 Bar due to his failure to pay the mandatory client security
21 fund fee , which this court wells knows is a fund set up by
22 the bar to reimburse innocent clients with their attorneys
23 steal from them . In addition , according to the website ,
24 your Honor , he ' s not provided a new forwarding address to
25 the Bar since he ' s left Gen Re . I say this because I find
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1 it curious that Mr . Graham would now claim that his law
2 license is so important to him and that he ' ll suffer

3 disproportionate punishment as a result of potentially
4 losing it . And even if he does eventually lose his bar
5 license and his ability to practice law , as your Honor
6 knows , the Second Circuit in Cutler held that this is a
7 consequence that every lawyer who engaged in fraud
8 engages in fraud should expect .
9 In conclusion , your Honor , I ' d like to just
10 briefly address general deterrence . As I ' ve said in other
11 senlencing hearings ill lhis case , In enacllng Sec lIon 3553 ,
12 Congress was very much concerned with deterrence of
13 white - collar criminals . As a subset of white-collar
14 criminals , deterring lawyers from crime is particularly
15 important . That ' s because , as I alluded to earlier , lawyers
16 who participate in white - collar crimes legitimize the crimes
17 in the minds of other would be white-collar criminals and
18 can galvanize a conspiracy in ways that most layman cannot .
19 And if I could just quote from a 1964 Second Circuit case ,
20 United States v . Benjamin , another securities case involving
21 a defendant lawyer , Judge Friendly wrote : " In our complex
22 society , the accountant ' s certificate and the lawyer ' s
23 opinion can be instruments for inflicting pecuniary loss

24 more potent than the chisel or the crowbar ."
25 As this Court is well aware and has found , Rob

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1 Graham and his co - conspirators inflicted a tremendous
2 pecuniary loss in this case , at least 544 million dollars to

3 AIG shareholders . I would submit to your Honor that at some
4 level Rob Graham always knew that this result was coming .
5 That ' s why he wrote back in 2000 that securities regulators
6 may attack this transaction and our part in it . But that
7 revelation did not deter him from participating in the LPT
8 transaction , nor did the fact that he was a regulatory
9 reinsurance accounting and regulator expert , nor did the
10 fact that he once prepared financial statements for a
11 publicly - lraded company , nor did the [acl lhal he once gave
12 advice that you could go t o jail for oral side
13 understandings .
14 I ' d submit , your Honor , if an otherwise
15 well - intentioned lawyer like Mr . Graham , armed with this
16 knowledge and experience , cannot be deterred , the only way
17 to deter other lawyers who are similarly situated and
18 perhaps less scrupulous , is to send them a message with an
19 appropriate prison sentence for Mr . Graham . In addition to
20 deterrence , such a sentence would promote respect for the
21 law and would be just punishment for what Mr . Graham did and
22 what he failed to do .
23 THE COURT : Thank you , Mr . Patricco .

24 Do you know of any victims who care to address the
25 Court today , Mr . Patricco?

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1 MR . PATRICCO : I ' m sorry .
2 THE COURT : Do you know of any victims?

3 MR . PATRICCO : I do not .
5 Mr . Vinegrad .
6 MR . VINEGRAD : This is a tragic day . A man with
7 an impeccable reputation in his profession , 35 years , a man
8 who has spent his entire adult life doing extraordinary
9 things for other people in both his professional and
10 personal life sits in a federal courtroom convicted of
11 seLious cLime::; willi his pLofessional fuLuL'e and livelihood
12 destroyed because of his actions in this case . I think
13 that ' s tragic .
14 And what I ' d like to do , your Honor , this morning
15 is talk to you for a few minutes about why the same
16 discretion , the same leniency that your Honor has displayed
17 in the prior sentencings in this case , and I ' m referring
18 specifically to the sentencings of the other so-called Gen
19 Re defendants , because Mr . Graham is a member of that group ,
20 why Mr . Graham deserves that same measure of discretion of
21 leniency and , in fact , for reasons that I ' ll explain why , I
22 submit to you , he is deserving of the greatest degree
23 leniency of anyone .
24 Now , your Honor , I am mindful of what your Honor
25 has done and said at the prior four sentencings in this

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1 case . And I think your Honor already has spelled out on the
2 records of those proceedings the factors that support

3 Mr . Graham deserving , at a minimum , an equal measure of
4 leniency .
5 First , Mr . Graham did not gain anything directly
6 or personally as a result of this transaction , nor was that
7 his motive , nor was that his intent .
8 Secondly , he has lived a life of e x traordinary
9 works , both with respect to his civic service , his
10 charitable service , his public service , as well as a
11 mullilude of ael::; of a more disereLe , of a mo r e personal
12 nature throughou t his lifet ime , is well documented to the
13 letters that have been submitted to this court .
14 Third , he has led an extraordinary professiona l
15 life , an exemplary and , until this case , unblemished career ,
16 not just representing people diligently and faithfully as
17 was his obligation as a lawyer , but in helping others , in
18 teaching others , in mentoring others . And I ' m not just
19 talking about friends and I ' m not just talking about
20 colleagues . I ' m talking about regulators , I ' m talking about
21 competitors , and even people that he had never met before in
22 his life before he taught them and helped them and mentored
23 them . And that ' s special .

24 Fourth , he is like the other defendants , a
25 first - time offender who , I submit to the court , presents no

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1 risk of recidivism .
2 And finally , and in this respect I think he is
3 more comparable to Mr . Garand than he is to Mr . Ferguson or
4 Ms . Monrad , was his level or his role , his place in the
5 so- called corporate ladder .
6 As your Honor has already found during the
7 sentencing , I believe , of Mr . Ferguson , your Honor descr i bed
8 people who were involved in this case , and Mr . Graham I
9 think fits squarely within this description , as underlings
10 who were papering the deal , who were lower level people
11 documenling the lrdnsdclion al the dlrecllon , uIlder t he
12 supervision , and a t t he behes t of t heir superiors . So
13 unlike Mr . Ferguson , the CEO , who initiated , oversaw ,
14 supervised , and directed the transaction virtually from
15 beginning to end , and who had the ultimate decision to make
16 about whether this transaction should proceed , unlike
17 Ms . Monrad , the CFO who your Honor recently found had a
18 managerial and supervisory role in this transaction , who
19 supervised the activities of others , including Mr . Graham ,
20 not saying that what he did was not important , but I think
21 it bears recognition , and the Second Circuit case law
22 supports this , in discerning the relative levels of
23 culpability that what he did was at the behest and at the

24 direction of others . And under those principles , the Cavera
25 case , for example , that talks about the wide variability in

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1 culpability , even in significant fraud cases with large
2 losses , that the court has the discretion to draw those

3 distinctions . And I submit to you , if you look at the
4 evidence in this case and you look at that so - called
5 corporate ladder , Rob Graham , even as a lawyer , was at that
6 lower level that your Honor identified earlier , doing what
7 he did at the behest and at the direction of others .
8 But beyond that , Judge , I submit to your Honor , as
9 I said earlier , that there are certain aspects of this case
10 that are unique to Rob Graham that make him deserving of
11 even gL'ealeL' leniency llian your Honor has demonslraled lhus

12 far in this case .
13 Why do I think that ' s so?
14 First , and I ' ll say it , and I believe it , and I
15 believe it as much now as I did ten minutes ago , or as I did
16 a year ago , and I ' ll believe it until the day that I die , he
17 tried , in his own way , in his unsuccessful way , but he tried
18 in good faith to do the right thing and to share his
19 concerns and put a stop to this transaction . Some of their
20 own evidence shows that .
21 I ' m not here to argue Mr . Graham ' s guilt . That
22 was last year . You can accept everything the Government
23 says about what he did during the course of this

24 transaction , but it remains undeniable , I submit , that he
25 tried , he tried to put a stop to it . He raised his concerns

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1 with Mr . Napier , and that was the word that Mr . Napier used
2 on that witness stand , not the characterization that Mr .

3 Patricco used a moment ago . He said Mr . Graham was
4 concerned . He shared his concerns with Mr . Garand . He
5 shared his concerns with Ms . Monrad . Your Honor may recall
6 from that e - mail to Mr . McCaffrey that Mr . Graham wrote that
7 Ron , et al had been advised of the risk of the transaction
8 and what might happen . And during his interview with the
9 Government back in 2005 , and I don ' t think the Government
10 takes issue with this , Mr . Graham explained that his
11 L'efeL'ence Lo ti eL dl " was Mr . Napier and Mr . Garand and

12 Ms . Monrad . And he shared his concerns with Mr . McCaffrey .
13 Let me just pause on Mr . McCaffrey . He was the

14 General Counsel . My client was not . He had ultimate
15 responsibility within Gen Re for this transaction and
16 whether it went forward . He was the man that the Government
17 argued at trial was up to his eyeballs in criminality just
18 like everybody else in the courtroom . The man who at the
19 other end of that e-mail that the Government viewed as so
20 essential to their case against everybody . Rob Graham
21 shared his concerns with his boss . And I say concerns ,
22 Judge , and it was in good faith . And Mr . Patricco stood up
23 here ten minutes ago and tried to give it a different

24 characterization . So I ' d like to take your Honor back to
25 what was said at the trial .

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1 What was said at the trial about that exhibit ,
2 about that e - mail was it was an exhibit which was about " Mr .
3 Graham expressing his concern over the transaction ." That ' s
4 the words that were used by Mr . Patricco . And he may have
5 done it in colorful language , invoking God and reputational
6 risk and all the rest of it , but any fair reading of that
7 document to any General Counsel reading it in his in-box
8 would know that Rob Graham had serious and genuine concerns
9 about this transaction and was raising them up the chain of
10 command , just as he was supposed to . So far up the chain of
11 cOllulland lhal a::; LhdL e - mail LeflecLs LhaL ML . FeLguson
12 himself , the CEO , number one in the company , was aware of
13 Mr . Graham ' s concerns . And he knew it . He went to the top .
14 And he failed . No doubt about it , that ' s why we ' re here .
15 And he took actions that formed the basis of the verdict
16 against him . That ' s why we ' re here . But he tried . And now
17 that we ' re here to talk about punishment and not guilt , that
18 should matter Judge , that should matter for something . That
19 he took concrete , identifiable , specific steps to go up the
20 chain of command , five different executives , all the way to
21 the top , including the Chief Legal Officer , to warn them . I
22 think in your Honor determining what just punishment is in
23 this case that factor has to be taken into account .

24 Secondly , and I think this also makes Rob Graham
25 unique amongst the five defendants in this case , is remorse .

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1 At every single sentencing in this case before today , every
2 one of the four of them , the Government has gotten up and

3 made a strong point to your Honor about why serious terms of
4 imprisonment are necessary because , among other things , the
5 defendants showed absolutely no remorse , not a bit of
6 remorse , not an ounce of remorse . The words changed but the
7 point was clear . They didn ' t do that today . And I commend
8 them for not doing that today . And there ' s a reason they
9 didn ' t do that today . Is because he is different and he has
10 shown remorse . And I ' m not just talking about the concerns
11 and the doubL::; LhaL he had back in the day when Ulis
12 transaction was being pu t t oget her . I ' m talking about
13 throughout the course of the investigation and trial that
14 followed . Not just today . But way back then , the spring of
15 2005 , when Mr . Graham went in and was interviewed by ten
16 different government agents for two full days , being
17 interviewed about this transaction , and it was candid and it
18 was forthcoming , it was remorseful . It ' s hard to recreate
19 it , Judge , but I was there . I was sitting by his side . And
20 the remorse and the regret that this man felt was palpabl e .
21 They can contradict me if they can . I don ' t think they can .
22 Because there was genuine remorse before he was indicted .
23 We ' ve acknowledged it in writing . We ' ve acknowledged how he

24 failed . The Government had a very stinging statement in
25 their brief about how he had failed his family and failed
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1 his friends and failed his colleagues . And we came right
2 back and agreed .

3 And throughout the course of this long case , over
4 four years , throughout the entire time that I have
5 represented this extraordinary and exceptional man , not
6 once , not once , has he displayed anything , anything other
7 than the absolute utmost respect for this Court and for the
8 criminal justice process that brings him here today . There
9 were no post - verdict interviews from lawyers denouncing the

10 jury , denouncing the system . There was no post - verdict
11 inleL'view [rom Mr . Graham , on the L' eco L' d inLe r v.iews blam.ing
12 the j ury , blaming t he sys t em , blaming his lawyers for hi s

13 plight . There was no effort to transfer assets out of his
14 name to avoid potential monetary obligations . There was
15 none of that . None of that . And for anybody who knows Rob
16 Graham , and for any of the 95 people who wrote on his
17 behalf , the notion that he would do any of those things , or
18 even think about it , is unfathomable . The letters , the
19 people who described how extraordinarily out of character
20 this episode is for Rob Graham when contrasted with the
21 extraordinary works of his life , and the personal torment
22 this he has put himself through , put himself through , for
23 years , not just the last six weeks , but for years as a
24 result of this case .
25 So , your Honor , I submit to you there is genuine

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1 remorse . Long standing remorse . And just as the Government
2 said at the prior sentencings that the lack of remorse

3 should matter , I stand here before you today and argue that
4 the existence of genuine remorse should matter for Mr .
5 Graham .
6 And thirdly , are there collateral consequences .
7 He is licensed in Delaware . He ' s authorized to practice law
8 in Delaware . He ' s going to lose that license . And not only
9 that license , he ' s going to lose his ability to practice or
10 work in this industry . It ' s not just a matter about
11 dL'afLing conLracL::; . I mean , leL ' s be Leal . He ' s out . He ' s
12 out of the only profession he ' s ever known . He ' s out of the
13 only industry he ' s ever known . Any notion of working as an
14 umpire or an arbitrator or whatever else was being planned
15 is gone and it ' s gone forever . Unlike Mr . Ferguson who had
16 retired long ago , unlike Mr . Garand who had retired long
17 ago , unlike Ms . Monrad or Mr . Milton who continued to work
18 during the course of this case , even after they were
19 indicted , were gainfully employed during the course of these
20 proceedings . So the collateral consequences to Mr . Graham
21 are unique and they are devastating . He has not worked a
22 day in three and a half years . At a profession , that I hope
23 this came clear in the submissions to the court , a

24 profession that was not just his job , it was his life . It
25 was his persona . It was the essence of his being . And I ' m
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1 not just talking , just to be very clear , Judge , I ' m not
2 talking about the loss of income , although it is very

3 substantial , and if you do the math it ' s a very substantial
4 percentage of what his net worth is , but I ' m not here making
5 a plea of poverty . I ' m talking about the loss of his
6 identity . I ' m talking about the inability to have the
7 dignity and the self - worth to do good , hard work at what you
8 know and what you are trained to do best . That ' s a loss
9 that is painful . That is a loss that is immeasurable and , I
10 submit , more significant to this man than the diminishing
11 balarlce of hi~ bank accounL .

12 And if you add t ha t up , if you add all those
13 considerations up , I submit to you there are many compelling
14 reasons why Rob Graham is particularly deserving of your
15 Honor ' s discretion and leniency . More so than anyone who
16 has come before the Court in this case for sentencing . And
17 that level of discretion , I submit , is born out and
18 supported by what courts have done in other cases , other
19 sentencings that are described in our brief , in our November
20 21st brief , cases involving lawyers convicted of frauds ,
21 serious frauds , after trial , some of whom did not commit it
22 for personal gain , some who did . Cases in which judges have
23 seen fit in recognition of the extraordinary consequences of

24 those convictions and the lack of gain and other factors
25 similar to those that we ' ve presented to the court . How

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1 judges in those cases have seen fit to fashion sentences
2 like the one we propose today that does not require , as an

3 element , a term of incarceration .
4 Whatever message needs to be sent in this case has
5 been sent . And I ' m not just talking about the prosecutor ' s
6 press release when the conviction took place last February
7 where they basically sent a strong message was sent simply
8 by virtue of the convictions , but everything else that has
9 happened to this man and everything else that will continue
10 to happen to this man for the rest of his days . Any lawyer ,
11 any L'alional lawyer , would have lo be nuls lo do what
12 happened in this case and t o risk suffering the consequences
13 that Rob Graham has suffered already and will continue to
14 suffer as a result of this case .

15 And so , your Honor , my plea is this :
16 My plea is to require Rob Graham to serve the
17 additional harsh sanction and punishment of a prison term is
18 truly not necessary . And that ' s the word that your Honor
19 knows is the bellwether under Section 3553(a) for
20 determining just punishment .
21 Everyone in this courtroom knows , Judge , that you
22 can impose such a sentence if you want to . That ' s obvious .
23 But you don ' t have to . And the Supreme Court of the United
24 States and the Second Circuit Court of Appeals have made
25 abundantly clear that for reasons similar to the ones we

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1 have presented to the court today , your Honor has the
2 discretion not to impose such a sentence . And so I ask your

3 Honor , force him to serve his community , if your Honor
4 thinks such a sanction is appropriate , and have him give
5 back and help members of society who are truly in need of
6 his help . Make him a prisoner of his own home , if your
7 Honor feels that that substantial deprivation of his liberty
8 is necessary as a further component of his sentence . But I
9 beseech your Honor to give Mr . Graham the opportunity to
10 begin now to try to put the pieces of his life back together
11 and Lo s LarL anew wi Ul wha L Lemains o[ .i L.
12 I thank your Honor for listening to me this
13 morning . And with your Honor ' s permission , I would like to
14 call a total of four speakers who would like to speak today
15 on Mr . Graham ' s behalf .
16 THE COURT : Certainly .
17 MR . VINEGRAD : The first speaker is Donna Lee , two
18 words , LEE , Williams .
19 THE COURT : You want to come up to the podium .
20 MS . WILLIAMS : Thank you , your Honor .
21 Good morning , your Honor . My name is Donna Lee
22 Williams and I ' ve been a member of the Delaware Bar since
23 1984 . From 1993 to 2005 , I served as Delaware ' s Insurance

24 Commissioner , and I ' ve known Rob Graham for well over 20
25 years .
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1 I never in a million years would have expected
2 that I would have been here this morning to talk to you .

3 And I hope this morning that I can give you some sense of
4 how completely out of character this situation is , about how
5 well Rob is regarded by the insurance industry and by the
6 regulatory community , and how very much Rob Graham means to
7 me _
8 I first met Rob in 1987 . I joined a firm that Rob
9 Graham had left , the Bayard firm in Delaware , and began
10 doing insurance regulatory work and General Re Insurance was
11 a clienl of the firm and Rob was my primary conLacL .
12 I ' ll never forget the first time that I heard Rob

13 Graham speak in public . It was March 1988 , in Santa Fe , New
14 Mexico , at a meeting of the regulators , National Association
15 of Insurance Commissioners meets quarterly . I remember
16 thinking at the time that this man was like E . F . Hutton .
17 You member the E . F . Hutton commercials , when E . F . Hutton
18 talks , people listen . Rob Graham spoke , people listened .
19 I found Rob to be smart , he was eloquent , he was
20 articulate , self - confident , but very respectful . And one of
21 the things I noticed most about Rob was that , unlike many
22 lawyers that I had seen , Rob wasn ' t the kind of guy who
23 would just throw everything out there and hope that

24 something would stick . Rob t s arguments were always very
25 well - reasoned and very well -- very credible .

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1 Time went on and I became Insurance Commissioner
2 and Rob was so well regarded by both me and other regulators

3 and by the industry itself , that he was part of a small
4 group of folks that , folks like me , regulators called upon
5 to actually educate novice regulators about what reinsurance
6 is all about . We trusted him . I still trust him .
7 I was never more professionally proud of Rob
8 Graham than I was immediately after the circumstances of
9 9/11 . At that time I was still Delaware Insurance
10 Commissioner and I was asked by the President of the
11 NaLional As:::;ociaLion of InSULance CouunissioneLs Lo chair a
12 committee on terrorism risk . And one of the first things
13 that I did was to hold a public hearing . Regulators were
14 very concerned about what was going to happen , were claims
15 going to be paid , how were we going to deal with this risk
16 going forward . And Rob was one of the first people to
17 speak . And he stepped up to the podium and you could hear a
18 pin drop in that room , because everyone was waiting to hear
19 what would the industry ' s response be . And Rob spoke with
20 great compassion and with focus and with purpose , and he
21 told me and all of the regulators and all of the people who
22 were gathered in that room to learn what would happen next ,
23 that even though not a penny in premium had never been

24 collected , the industry would pay because it was the right
25 thing to do . And there were lots of things that we had to

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1 deal with going forward in order to be able to plan now for
2 this risk . But that General Re Insurance and Rob Graham , in

3 particular , would be there every step of the way to help us
4 to find that solution .

5 So I ' ve told you a little bit about Rob ' s
6 reputation in the industry and Rob ' s reputation with
7 regulators , it was unparalleled . There ' s no one that I know
8 of that is as well - respected by regulators as Rob .
9 Let me tell you a little bit about what Rob Graham
10 has meant to me personally .
11 I wa::; a very young lawyer when I [lrsL meL him and

12 he was my client , but he very quickly became more than a
13 client . He became a mentor and a very , very dear friend . I
14 will tell you without question that apart from my husband ,
15 Rob has always been my most trusted friend and advisor . And
16 I ' ve talked with Rob about some of the most difficult
17 decisions that I have ever made . I consulted with him in
18 1992 , as a 31 year old lawyer , trying to figure out what I
19 wanted to do next . There were folks in my party who were
20 encouraging me to run for Insurance Commissioner . Boy , that
21 was an awful big risk . I was running against a fellow who
22 was the President of the State Chamber of Commerce . What
23 could this little girl from Dover , Delaware bring . But he

24 had a lot of faith in me and helped me to find a lot of
25 faith in myself .
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1 During the many years that I served as Insurance
2 Commissioner , I talked with Rob about so many different

3 things . I talked to him about negotiating through the NElC
4 and the various processes that go on . The NEIC sometimes
5 means no action immediately contemplated . And Rob helped me
6 to figure out , okay , if that t s what you want to do , here are
7 some of the things you need to do to get that done .
8 I talked to him when the Medicare HMO ' s all pulled
9 out of Delaware and there were thousands of angry senior
10 citizens who no longer had health care . And I talked to him
11 abouL how Lo do a public ouLLeach pLogLam , how Lo helIJ Lhe
12 people in my community .
13 I talked to Rob when the med mal crisis came
14 about . We were suddenly struck with a situation of having
15 no med mal coverage for the only trauma center in the state .
16 I talked with Rob about all sorts of procedural
17 and regulatory issues that I was facing , questions of first
18 impression in dealing with possible changes of control or
19 other transactions involving the state t s Blue Cross and Blue
20 Shield organization , because it was very uniquely organized
21 under the law .
22 During all this time , your Honor , Rob Graham has
23 been a very , very trusted advisor and friend . And I want

24 you to know that not once , not ever , did Rob Graham ever ask
25 anything of me . He never asked for any favors . He never

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1 asked for any special consideration for his company , for
2 fellow insurance industry representatives who attended NEIC

3 meetings , or for himself . He never ever asked for anything .
4 This conviction means that the career that he has
5 known and loved is over . He is crushed , as I am . Being a
6 lawyer meant everything to him . Your Honor , I hope that you
7 know that this -- this is a lone transgression . This is a
8 man who has always comported himself with utmost respect for
9 process and for integrity and for purpose . And for me and
10 many , many others , this does not destroy the faith and
11 confidence llial we have in him .
12 NOw , I hope that you will give him the opportunity
13 to do things to continue to serve in some way . Thank you ,
14 your Honor .
15 THE COURT : Thank you _
16 MR . VINEGRAD : Your Honor , the next speaker is
17 Frank Parisi , PAR I S I .
18 THE COURT : Thank you _
19 MR . PARISI : Good morning .
20 THE COURT : Good morning .
21 MR . PARISI : Your Honor , my name is Frank Parisi .
22 I ' m the director of Strategic Partnerships for the City of
23 Minneapolis , Minnesota .
24 I ' ve live in Minneapolis and I ' ve known Rob Graham
25 personally for about 30 years . I appreciate the opportunity

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1 you ' ve provided to allow me to tell you about the Rob that I
2 know .
3 I met Rob and his wife , Evelyn , when my wife and I
4 moved next door to them in Wilmington , Delaware . We ' ve been
5 connected as friends ever since .
6 Simply stated , Rob has been the kind of person one
7 can only hope to have as a friend . He ' s always been steady
8 and reliable and a positive force in our lives and the lives
9 of our children virtually since the day we met . Like most
10 people , our family has experienced its share of challenges .
11 We ' ve counled Rob dHlOIlg our supporLers dUL'.ing the hap{JiesL
12 days , like the births of our children , and during the most
13 difficult days when we experienced illness , despair , and
14 loss . During those most difficult times Rob has , without
15 exception , delivered as one of the rare constants in our
16 lives . He has always been there when we ' ve needed help or
17 assistance of any kind . He was a valuable supporter when my
18 wife was diagnosed with ovarian cancer , and he and his wife
19 stood with us during the entire nine years of her illness
20 right up to and through the day she died . But their
21 involvement during that period was far beyond the scope of a
22 friend ' s sympathy . As we encountered milestones , surgeries ,
23 and chemotherapy treatments , for example , Rob would

24 regularly show up in Minneapolis , even in the dead of
25 winter . Even if he was only able to come for an hour or two

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1 and visit us at the hospital , he would come . As somebody
2 who frequently traveled in his work , I suspect that the very

3 last thing he looked forward to doing at the end of a busy
4 week was the prospect of going back to the airport for one
5 more time and another flight from New York to Minneapolis
6 but he came , nonetheless , at his expense , and during his

7 very limited free time .
8 He was also the kind -- he is also the kind of a
9 friend that we could rely on for advice and counsel .
10 Some years ago my stepson entered a long and dark
11 peL'iod o[ dL'ug and alcohol addicLion LhaL [or a Lime
12 absolutely dominated our lives , sometimes even overshadowing

13 my wife ' s battle against cancer . We received a great deal
14 of support and assistance from friends , not the least of
15 which came from Rob Graham .
16 I submit to your Honor that the true measure of an
17 individual ' s character is how and what that person does
18 during difficult , challenging times . During my family ' s
19 darkest days over the last 30 years , Rob Graham has always
20 been there and always supported us .
21 Over these years , I have never worked with Rob
22 Graham and I don ' t pretend to fully understand the details
23 and intricacies in this case , but what I do know is that Rob

24 is a good person who has unselfishly supported others in
25 need over the last 30 years . I hope that kind of admirable

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1 behavior over such a long period of time will be considered
2 and taken into account as you make your determination about

3 Rob ' s future .
4 I ' ve heard a poet observe that people may forget
5 what you ' ve said and they may forget what you do , but
6 they ' ll never forget the way you make them feel . I ' m here
7 to tell your Honor that as one person whose encountered Rob
8 Graham over 30 years , he has always made me and my family
9 feel supported because he could always be counted on to be
10 standing right beside us .
11 Thank you .
13 MR . VINEGRAD : Your Honor , the next speaker is
14 Mary Lanning , LAN N I N G.
15 MS . LANNING : Good morning , your Honor .
16 THE COURT : Good morning .
17 MS . LANNING : Thank you for allowing me to speak
18 today on behalf of my friend Rob Graham . I work in the
19 financial services sector as a compliance professional and
20 occasionally as a lobbyist . I ' m a principal of my own
21 company , MLNG Associates . MLNG provides assistance to
22 insurance businesses and their attorneys in regulated
23 transactions such as acquisitions and expansions . I met Rob

24 many years ago in the course of this work . Both of us
25 contributed regularly to the law- making process in state ,

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1 national , and international discussions .
2 I also am a nun , with nearly 53 years of helping
3 people and communities get beyond failures and go forward ,
4 giving their own help to others along the way . In that
5 capacity , I am president of a not - for - profit corporation
6 called Yes Solutions , an organization dedicated to helping
7 women , men , and children who live on the margins , children
8 of incarcerated parents , immigrant families unable to find
9 employment , widowed elders , the displaced poor , the sick ,
10 the dying , and those who care for them . These are my
11 cOllulluni l Y .
12 Most of t hem fall bet ween t he cracks of publ i c and
13 private assistance or not yet able to keep their footing on
14 their own . We support ourselves by our own labors and
15 generosity of others . We help as many as we can .
16 Everything we do is accomplished by volunteers , by bringi ng
17 people who need relief and encouragement together with those
18 who once needed it themselves and are willing to give it .
19 I have one purpose , your Honor , and one only for
20 asking you to hear me today . My people need the kind of
21 dedicated time and professional know - how that Rob Graham
22 could bring to us on a consistent basis for a period of
23 time . I ask your Honor to consider what it would mean to a

24 small community like Yes Solutions to be the place where Rob
25 Graham might provide a concentrated period of community

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1 service , where everyday of his sentence could directly help
2 someone else to leave a broken past behind , to learn new

3 skills , and to build a few life . Let Rob work with us
4 one - on - one in teaching work habits and language usage and
5 personal financial management to men whose lives until now
6 have not managed to put these pieces together in any
7 functional way . Let him work side by side with these men to
8 give them work experience that can open the door to paying
9 jobs for them . Let him help them get those jobs . Let Rob
10 teach them how to build the shelves that are needed in our
11 childL'ens cla::;::;roows aud playrooms aL Abraham House which is

12 our center for families whose lives have been affected by
13 the criminal justice system . Let him teach these men , many
14 of whom have never been employed , how to use hand tools to
15 measure and count , to add and divide , to trust their eyes
16 and their judgment , and to care about the end product . Let
17 him spend extra time with some of them to teach them a
18 technical vocabulary and business concepts , writing skills ,
19 things that would translate into vastly different job
20 opportunities than are on their horizons now . Let Rob spend
21 time with a dozen of our teenage boys this year who are only
22 beginning to think that a college education is a real
23 possibility . Let him supervise and train our teenage summer

24 interns in their community service as they learn to
25 recognize the needs of elders and diabled people around

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1 them , and to make their own choices to move obstacles and
2 make a kinder world .

3 Rob Graham was respected for good reason , your
4 Honor . The core of his reputation was his integrity and his
5 fairness , but he was just as well regarded for his work and
6 his leadership , and certainly for his written and oral
7 presentation skills . He was always a generous team worker .
8 I am privileged to have worked with him on national advisory
9 committees and task forces and to have shared the tiring
10 tasks of teaching and leading .
11 I know from personal professional experience whaL
12 it could mean to have Rob Graham on the Yes Solutions team .
13 In a nutshell , Rob would attract more financial support and
14 resources to Yes Solutions . We provide hot home cooked
15 meals to almost 10 , 000 homeless people each year , on the
16 sidewalk , on the three lonely holidays , Thanksgiving ,
17 Christmas and Valentine ' s . Rob has been there with us . We
18 provide essential school supplies , back packs , shoes ,
19 sneakers , warm coats , books , to almost five hundred children
20 each fall . All of this is paid for out of our own earnings
21 and what donations we can encourage others to give us . We
22 help support dozen of children in alternative residential
23 facilities and college prep programs . We provide respite

24 care for dozens of elders and end of life care to many more .
25 I truly believe that Rob Graham could lead more of

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1 our industry colleagues to give some of their time and
2 resources to these services that touch so many lives .

3 Please consider letting him help me recruit and develop new
4 volunteers and new donors who will discover for themselves
5 how very far one person ' s moments of kindness can carry
6 someone else .
7 Last year I sat in your Honor ' s courtroom for all
8 but the first few days of this trial . I was moved deeply by
9 the dignity , the poise , and the equanimity with which Rob
10 carried himself as the trial proceeded . He was everything I
11 expecLed him Lo be . Dozens of his peeL'S , OUI fL'iends and
12 colleagues , made the journey to Hartford from all around the
13 United States on a self - initiated rotation to show him our
14 support . We all went home strengthened by his strength . He
15 still is held in the highest esteem by regulators and their
16 technical staff , by lawyers and public officials with whom I
17 work every day , who write to each other and to me every week
18 to inquire whether there ' s anything we might be doing to
19 help him . If Rob were working with Yes Solutions , I am
20 confident that many more of our colleagues and mutual
21 friends would rally around to help make anything he touches
22 a success .
23 Your Honor , Yes Solutions has worked with the

24 courts in New York and New Jersey before in providing
25 alternative sentences . We would seize the opportunity to

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1 work with someone of Rob ' s caliber and competence .
2 Judge Droney , your judgment calIon Rob ' s sentence

3 could change not only Rob ' s life , it could affect the lives
4 of hundreds of others now and for at least another
5 generation . You could open possibilities in my community
6 that are nowhere in reach today . You could bring real
7 beneficiaries into the balance . Please consider giving the
8 Yes Solutions community this opportunity at a time when the
9 economic pressures on us are incrementally greater than on
10 many other segments of society .
11 Thank you [or hearing me , your Honor .
12 THE COURT : Thank you for coming .
13 MR . VINEGRAD : The next speaker is Evelyn , EVE L
14 Y N, Graham .
15 MRS . GRAHAM : I am Evelyn Graham , and I thank you
16 for the opportunity to speak to you about my husband , Rob
17 Graham .
18 This man who appears before you today is the man I
19 have chosen to share my life with for 37 years . I not only
20 love Rob with all my heart , I deeply respect and admire him .
21 Rob and I met in college . It was the late ' 60 ' s .
22 Like many idealistic students of the time , we were going to
23 change the world . And , clearly , we didn ' t do that , but Rob
24 did change the lives of many people he met over the years
25 for the better .

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1 From the moment I met Rob , I felt his commitment
2 and passion , and I witnessed his integrity and leadership .

3 I watched with pride as he served as President of the
4 Student Government Association , demonstrating remarkable
5 skill in walking a tight rope between students and faculty
6 during the 60 ' s , a time of considerable unrest . Rob ' s duty
7 was to his fellow students , but he knew he could only serve
8 them by doing what was right . He owed his success , in no
9 small measure , to the tremendous respect that he earned , not
10 just from the students , but from the faculty and the
11 adminislralion . Like me , your Honor , lhey admired Rob ' s
12 honesty , his integrity , and his willingness to speak his
13 mind .
14 As it turns out , these qualities were and are the
15 essence of Rob ' s life , whether taking a stand against the
16 Attorney General of Delaware for the unfair treatment of his
17 staff , or helping to revitalize our inner city Delaware
18 community , or serving as an elected official to protect and
19 promote our small Connecticut town , or fighting on behalf of
20 the industry he loves to this day , Rob approached each of
21 these responsibilities with honesty and integrity , never
22 setting aside his principles to serve his own needs . To the
23 contrary , Rob has always put the needs of others ahead of

24 his own , volunteering to spend late nights working at Meals
25 on Wheels , hosting a fundraiser to help a friend with

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1 Parkinson ' s disease , being by a friend ' s side after a
2 devastating car accident , giving guidance to a young col l ege

3 graduate that he ' d never met , or going out of his way to
4 make sure that his mother wasn ' t alone on holidays . Rob
5 always looked out for others first and foremost .
6 Your Honor , even when it wasn ' t easy or popular , I
7 know that Rob committed to doing the right thing .
8 Obviously , I ' m not privy to everything that transpired
9 between Rob and his clients , but over the years I saw and
10 heard enough to make it clear to me that Rob didn ' t win many
11 popularily conle::;l::; al his company because o[ his ins i slence
12 that rules and principles had t o be followed regardless of
13 the economic consequences . I can ' t imagine Rob being any
14 other way . He ' s a man whose worked hard his whole life ,
15 never seeking glory or personal acclaim .
16 For the past 37 years , Rob and I have stood
17 together . We ' ve lived together , laughed together , cried
18 together , fought together , and endured together . Through
19 the good times and bad , I have always wanted this man by my
20 side . Of course , I can ' t claim our marriage is perfect .
21 Truth be told , these past few years have been the toughest
22 of our lives . Ironically , though , they ' ve proven to be some
23 of the most meaningful . Through all of the uncertainty and

24 soul searching , I ' ve gotten to see the true character of
25 this man . I ' ve watched with admiration as he ' s carried

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1 himself with strength and dignity through these devastating
2 events .
3 I remember the day , October 26 , 2005 , Rob met with
4 his lawyer and learned that the Government intended to
5 charge him with a crime . He was devastated . He cried . And
6 quickly seemed to shrink before my eyes . But , your Honor ,
7 just as quickly , I saw him put aside his own pain to comfort
8 and to protect me . Despite all that swirls around him , Rob
9 continues to put my needs and those of his friends and
10 family before his own , and he never blames others for his
11 CULTenl prediclion dUlounl . Rob cerlai.nly has hi.s faults ,
12 but I know now more than ever , that the core of this man ,
13 the fundamental traits that I fell in love with and still
14 love to this day remain strong . But I also know that
15 despite his stoicism , Rob suffers tremendously .
16 Your Honor , while Rob is devoted to family and
17 friends , he was passionate about being a lawyer . Even
18 before I met him , Rob knew what he wanted to do , and for 35
19 years he lived and loved being a lawyer . For 35 years he
20 worked hard to build an impeccable reputation for serving
21 his clients with honesty and integrity . For Rob being a
22 lawyer wasn ' t just a job , it defined him as much as any job
23 can define a person . Rob knows those days are gone forever .
24 He ' s not only lost his career , but his reputation is
25 shattered . No matter how many people come forward to remind

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1 Rob of the man they know him to be , no matter how many
2 friends and colleagues stood by his side during the trial ,

3 no matter how much I remind him of all of the good that he ' s
4 done and accomplished , all Rob sees is his role in the
5 events that bring him here today . Every day , for the three
6 and a half years of this ordeal , Rob has relived his role in
7 this one transaction . He will never stop thinking about it
8 and nothing will ever make his anguish , torment , and regret
9 go away . Those feelings haunt Rob from morning till night ,
10 and they will continue to do so for the rest of his life .
11 Your Honor , in senLencing my husband , I beg you Lo
12 take the full measure of this man , the many good deeds he ' s
13 done , his service to his friends , family and community , and
14 the devastation he suffered and will continue to suffer for
15 the rest of his life .
16 Your Honor , I beg for mercy and compassion .
17 Thank you .
19 Mr . Vinegrad , does Mr . Graham care to address the
20 Court?
21 MR . VINEGRAD : Yes , he does .
22 THE DEFENDANT : Your Honor , over the last four
23 years I ' ve been sustained by the tremendous love and support

24 that I ' ve received from family and from friends . In
25 addition to those who have already spoken , some of those

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1 friends are in the courtroom today . I ' m grateful for their
2 support , but I ' m also very embarrassed and ashamed that the
3 reason they ' re here is because I stand before you to be
4 sentenced after conviction of some very serious crimes .
5 I ' m old- fashioned . Concepts like honor and shame ,
6 service and duty , integrity and truth , are important to me .
7 I ' ve always tried to help people and to do the right thing
8 in all of my dealings , personal and professional . The
9 jury ' s verdict says that I ' ve failed that standard
10 profoundly , and I ' ve suffered severe consequences as a
11 L'esull of llial PL'OfOUIld failuL'e .

12 From a very young age , I always wanted to be a
13 lawyer . I was privileged to become one , and for more than
14 30 years to work for and with some very good lawyers in a
15 variety of settings , in government , in private practice , and
16 in - house at a reinsurance company . In a very real sense , I
17 always defined myself by the way I practiced my profession
18 and the way I did my job as a lawyer . Over time I developed
19 a good reputation in the legal profession and in the
20 insurance and reinsurance business . Being known as an
21 honest and reputable lawyer meant everything to me . It gave
22 me peace of mind to know that I had the respect of my
23 colleagues and clients , and a reputation among them for

24 always doing the right thing . That ' s all gone now .
25 Instead of my career and reputation as a lawyer

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1 serving as a good example to others , as a disgraced and
2 disbarred lawyer they will serve only as a cautionary tale .

3 I ' ll never been able to practice the profession I love
4 again , I ' ll never be able to work in the insurance and
5 reinsurance business again .
6 As for peace of mind , for the past four years

7 there hasn ' t been a waking hour of any day that I haven ' t
8 thought about the AIG transaction and my role in it and what
9 I could or should have done differently . I suspect that
10 will be true for the rest of my life .
11 I realize Lhere are no do - overs in life . Noth.ing
12 I can say or do now would change wha t has happened or i ts

13 impact on the lives of others or on me . Your Honor , I
14 regret that more than words can adequately express .
15 Thank you .
16 THE COURT : Thank you , Mr . Graham .
17 Anything else you had , Mr . Vinegrad?
18 MR . VINEGRAD : No , your Honor .
19 THE COURT : We ' ll take a short recess at this
20 time .
21 (Recess . )
22
23
24
25
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1 THE COURT : We are now ready to turn to the
2 imposition of the sentence .

3 Before we begin , l td like to state the factors
4 that a District Court must take into consideration in

5 determining a particular sentence to be imposed under the
6 federal sentencing statute , which is 18 U. S . Code Section
7 3553 (al _
8 And those factors are :
9 The nature and circumstances of the offense and

10 the history and characteristics of the defendant :
11 The need [or Lhe senLence imposed Lo serve t he
12 various purposes of a criminal sen t ence , which I t ll rev i ew
13 in a moment ;
14 The kinds of sentences available ;

15 The kinds of sentence and the sentencing range
16 established for the applicable category of offense committed
17 by the applicable category of defendant as set forth by the
18 Sentencing Guidelines I ' m to consider today , as well as any
19 pertinent policy statement in those guidelines ; and
20 The need to avoid unwarranted sentence disparities
21 among defendants with similar records who have been found
22 guilty of similar contact ; and
23 Lastly , the need to provide restitution to any

24 victims .
25 Also , I must consider the U. S . Sentencing

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1 Guidelines and their policy statements in determining
2 Mr . Graham ' s sentence . However , I ' m not bound by those

3 guidelines . In other words , I may give him a sentence
4 within a guidelines range or outside of that range . I 'm
5 also mindful of the guidance the U. S . Court of Appeals has
6 given the District Courts in United States v . Cavera
7 concerning our consideration of the U. S . Sentencing
8 Guidelines as well as the factors under 18 U. S . Code Section
9 3553 (al _
10 I must also take into account the following
11 [acloL's in arriving al the senlence [or ML' . GL'aliam . In
12 determining whether to impose a fine , and the amount of the
13 fine and how it would be paid , that is , as a lump sum or in
14 installments , as part of this particular sentence , I must
15 consider the factors set forth at 18 U. S . Code Sections
16 3553(a) and 3572 . In determining whether to impose a term
17 of probation , its length and its particular conditions , I
18 must consider the factors set forth at 18 U. S . Code Section

19 3562 and 3553(a) . In determining whether to impose
20 restitution and how it would be paid as part of a particular
21 sentence , I must consider the factors set forth at three
22 statutes , 18 U. S . Code Section 3663 , 3663A and 3664 . And in
23 determining whether to impose a term of supervised release

24 following any period of incarceration , including its
25 particular length and its particular conditions , I must

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1 consider the factors set forth at 18 U. S . Code Sections
2 3553 (al and 3583 .
3 And while I have taken into account all those
4 factors , I ' ll explain more particularly how I ' ve reached a
5 decision as to the appropriate sentence for Mr . Graham .
6 First of all , I have reviewed the the Presentence
7 Report and its addenda prepared by the Probation Office .
8 I ' ve considered counsel ' s memos , their remarks ,
9 the letters that I have received , the defendants remarks ,
10 and the other peoples remarks that I heard in this hearing
11 Loday .
12 I ' ve also t aken in t o accoun t the need for t hi s
13 sentence to serve the various purposes of a criminal
14 sanction . Under 18 U. S . Code Section 3553 , I am required to
15 impose a sentence sufficient , but not greater than
16 necessary , to comply with the purposes of sentencing for
17 which I will review now . First and foremost among those
18 purposes is to provide just punishment . Part of the meaning
19 of a just punishment is that it not be unduly different from
20 sentences received by defendants with similar records who
21 have been convicted of similar conduct . A criminal sentence
22 also could protect the public by immobilizing an offender
23 and isolating him from society , thus , absolutely protect i ng

24 society during the period of incarceration . Another
25 function of a sentence is specific deterrence . Namely , to

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1 make sure that Mr . Graham will not again commit a crime
2 after he completes his sentence here . Another purpose is

3 general deterrence . And that is to promote respect for the
4 law and to warn others who might be tempted to act as Mr .
5 Graham did , that the community , represented by the law
6 enforcement authorities and by the courts , treats these

7 offenses seriously and will punish others who behave as he
8 did . And finally , I have thought about the goal of

9 rehabilitation for Mr . Graham as well .
10 Now , as to departures from the guidelines , I
11 L'ecognize LhaL I have Lhe auLhoL'iLy Lo depaL'L downwaL'u

12 because of Mr . Graham ' s personal history and
13 characteristics . I ' ve chosen , however , to address these
14 characteristics in the context of a non - guidelines sentence .
15 I also have the authority to depart on the basis
16 that the offense level substantially overstates the
17 seriousness of the offense . Again , I have , however , chosen
18 to address this in the context of a non - guidelines sentence .
19 As to the request concerning the cumulative
20 affects of substantially overlapping enhancements , the
21 Second Circuit in United States v . Lauersen held that
22 district courts may depart when substantially overlapping
23 enhancements result in a significant increase in the

24 sentencing range to an extent not adequately considered by
25 the Sentencing Commission . There is no basis for a

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1 departure on those grounds in this case . The Commission
2 certainly contemplated the combination of levels for loss ,

3 in this case 30 , and the 6 level enhancement for more than
4 250 victims . The combination of the base offense level with
5 those two factors alone results in an offense level of 43
6 and a guideline sentence of life imprisonment . The addition
7 of two levels for sophisticated means and two levels for use
8 of a special skill have no effect on Mr . Graham ' s guideline
9 sentence range . Of course , I still will consider this
10 argument in the context of considering and applying the
11 [aclors under 18 U. S . Code Seclion 3553(a) .
12 NOw , as to aberrant behavior , Section 5K2 . 20 of
13 the Sentencing Guidelines gives the court the discretion to
14 depart in an extraordinary case where the defendant ' s
15 criminal conduct constituted aberrant behavior . The Court
16 may exercise this discretion to depart for aberrant behavior
17 only where the offense is a single criminal occurrence or
18 single criminal transaction that (A) was committed without
19 significant planning ; (8) was of limited duration ; and (e)
20 represents a marked deviation by the defendant from an
21 otherwise law- abiding life .
22 Mr . Graham argues that he spent only a few hours
23 on the LPT , and merely filled in a boilerplate contract and

24 reviewed a letter drafted by others . In reality , however ,
25 Mr . Graham worked on several stages of the LPT deal over a

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1 period of at least six months . His behavior was not
2 aberrant , and therefore this departure is inapplicable .

3 Of course , the Court will consider this
4 information in the context of a non - guidelines sentence ,
5 though .
6 As to his claim that he was not motivated by
7 personal gain , the Court has chosen to address this argument
8 in the context of a non - guidelines sentence .
9 As to the argument concerning collateral
10 consequences , the Court finds that a departure is not
11 WdLTanled becau::;e of the polenlial collaleLal consequences
12 of Mr . Graham ' s loss of his law license and the signifi cant
13 financial and other regulatory penalties he may face , as
14 well as the other personal consequences . Of course , the
15 Court will consider this information also in the context of
16 a non - guidelines sentence .
17 As to the argument the Sixth Amendment requires a
18 jury determination as to the amount of loss and the number
19 of victims , I do not read Booker or Rita to require under
20 the Sixth Amendment a jury determination as to the amount of
21 loss or the number of victims .
22 Although I recognize that I have the authority to
23 depart on other bases not identified by counsel , I choose

24 not to do so as the facts do not warrant it here .
25 However , after considering the application of the

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1 United States Sentencing Guidelines as well as the factors
2 set forth in 18 U. S . Code Section 3553(a) , I have decided to

3 give Mr . Graham a non - guidelines sentence .
4 An important factor here that is different from so
5 many other corporate fraud prosecutions is that Mr . Graham
6 did not personally gain in a direct way from his criminal
7 conduct , and his motivation was not one of obtaining direct
8 personal gain . Mr . Graham ' s lack of direct personal gain
9 and his motivation for this criminal enterprise certainly
10 does not excuse his conduct and perhaps does not warrant a
11 depaL'lure from the offense level under the Senlenc.i.ng
12 Guidelines . But , surely , i t is relevant under the federal
13 sentencing statute .
14 There was substantial loss caused to AIG
15 stockholders here , over 500 million dollars . And Mr . Graham
16 was aware of how harmful his conduct could be to the
17 integrity of the market . His intent , though , was different
18 from the typical fraud defendant , which is to make money
19 personally and directly from the illegal conduct . Mr .
20 Graham ' s intent satisfied the criminal offenses here . He
21 knew that the 500 million dollar loss portfolio deal was
22 important to AIG as well as to Gen Re and , if discovered ,
23 would have a substantial negative effect on AIG as well as

24 Gen Re . He also had a substantial role in creating the
25 phony documents supporting the LPT . But , there is a

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1 difference in the conduct here and Mr . Graham ' s motivation

2 should be relevant under the federal sentencing statute .
3 The Court is also mindful of the Second Circuit ' s
4 recent guidance in United States v . Cutler , which held that
5 District Courts should not conflate an evaluation of the
6 defendant ' s role in the defense with an evaluation of
7 whether the amount of loss substantially overstates the
8 seriousness of the offense when the actual gain by the
9 defendant was minimal in relation to the loss . Surely , Mr .
10 Graham played an important role in the fraud here . However ,
11 unlike Culler , Roberl Graham ' s molive heL'e was rlol diL'ecL ,
12 immediate personal gain , and he did not directly gain from
13 the fraud in an immediate fashion . As the Second Circuit

14 more recently acknowledged in the U. S . v . Cavera case , even
15 when an offense caused a large financial impact , there still
16 may be a wide variety of culpability amongst defendants that
17 counsels different sentences based on the factors identified

18 in 3553 (al .
19 Mr . Graham ' s participation in this fraud was
20 important to its success , however . He served as the only
21 lawyer creating and reviewing the legal documents which
22 would be examined by auditors of Gen Re and ArG . He
23 approved the fake offer letter which made it look like Gen
24 Re proposed the transaction to ArG . He suggested the method
25 of structuring the transaction to help conceal it , and he

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1 drafted the actual sham contracts . Mr . Graham knew no
2 outside counsel would review his work , and agreed with his
3 co- conspirators to limit the number of people involved in
4 the LPT so as to keep its fraudulent nature hidden . He knew
5 full well that AIG , a public company , would misrepresent the
6 fraudulent nature of the LPT , and his legal work was
7 important to that concealment . He didn ' t want others to
8 connect the dots here , knew that regulators would attack the
9 deal if they found out about its true nature , knew there was
10 no real risk transfer , knew that AIG had issues with
11 L'egulaLors reviewing Lhe LPT , and Lold his general counsel
12 at Gen Re that how AIG books the LPT is between them , their
13 accountants , and God . This was hardly the kind of conduct
14 or ethics a lawyer should follow .
15 Like with the other defendants in this case ,
16 though , this is also a sad day and a tragedy for Mr . Graham .
17 By all accounts , he had a strong reputation as an honest ,
18 ethical lawyer . So many of his colleagues , both at the bar
19 and in business , spoke and wrote of his integrity and
20 fairness , his counseling of junior lawyers and executives ,
21 and at times he would stand up for what is right . He also
22 has already suffered a great deal , not only in his
23 reputation among his family and friends , but also because of

24 the end of what otherwise was a fine legal career and the
25 loss of a hard earned profession .

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1 Mr . Graham also has a fine record of service to
2 his community , serving , by all accounts , as a distinguished

3 member of the Westport Planning and Zoning Commission and
4 its Board of Finance . He has devoted considerable time to

5 the Delaware Avenue Commission Association , Meals on Wheels ,
6 and as a teacher of reinsurance law to professional and
7 business associations . Mr . Graham has also been a good ,
8 loyal and helpful friend and neighbor to so many . I have
9 received numerous letters detailing his help to others in
10 need without looking for any public recognition .
11 In addi Lion , al Lhough I have cone I uded Ula t Mr .
12 Graham does not meri t a role adjus t ment here , his
13 participation in the LPT was not as deep as some others . He
14 was important to its success , but in comparing him to some
15 of its other participants , he did not have as active and as
16 central a role .
17 Some of the other factors in the federal
18 sentencing statute also support a non - guidelines sentence ,
19 including the goal of specific deterrence . The sentence of
20 life imprisonment or any sentence near that is far too great
21 for that purpose . There ' s no question that general
22 deterrence is also an important consideration for this
23 sentence , but the sentence called for by the Guidelines i s

24 excessive for that purpose as well . A message must be sent
25 to the business community , including those lawyers who

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1 counsel that community , that this kind of conduct will not
2 be tolerated and will be punished severly , but the

3 Guidelines sentence called for here is too severe to address
4 that goal . I believe the sentence I will impose today
5 satisfies those elements of specific and general deterrence
6 as it constitutes a significant deprivation of freedom for
7 Mr . Graham and sends the appropriate message to those
8 similarly situated to him .
9 It must also be stated that Mr . Graham is not

10 responsible for the difficulties AIG has faced within the
11 lasl year or ::;0 . Il would be unfair Lo hold him accounlable
12 for all the recent bad news about AIG . This criminal
13 conduct was much before those events , but we expect and
14 require much more from our business leaders , and Mr . Graham
15 fell far short of discharging his responsibilities to the
16 investing public .
17 In arriving at a particular sentence here , the
18 Court has consulted many similar cases for guidance . In
19 many ways , though , this case is different . Such sentencings
20 in cases like Enron , Adelphia , Worldcom , Cendant , Adelson ,
21 Parris , including the cases referred to in Parris , Bennett ,
22 Surgent , Earls , Olis , Cushing , Grabske , Reyes , Salinger and
23 Argo provide some points of reference for arriving at a

24 sentence that satisfies the federal sentencing statute .
25 However , there are distinguishing characteristics , as I have

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1 mentioned . I have arrived at a particular sentence in
2 consideration of all that , but I ' ve also given due

3 consideration to particular aspects of this case , Mr .
4 Graham ' s participation in it , and the individualized
5 application of factors under the federal sentencing
6 statute .
7 The Supreme Court in Gall v . United States
8 instructed District Courts that they must give sufficient
9 justification for a major departure from suggested
10 guidelines sentencing ranges . I will impose a sentence
11 which is such a ::;ignificanL deviaLion fLom the Lange heLe ,
12 but the Court has consul t ed all t he decisions mentioned

13 previously and , in applying the factors of 18 U. S . Code
14 Section 3553(a) , arrived at the sentence I will now impose .
15 Mr . Graham , would you please stand at this time .
16 Mr . Graham , I hereby sentence you to the
17 following :
18 As to incarceration , to the custody of the United
19 States Bureau of Prisons for a period of 12 months and one
20 day on each count of conviction , all sentences of
21 incarceration to be concurrent .
22 I ' m also sentencing you to a term of supervised
23 release of two years on each count of conviction , also to be

24 concurrent .
25 As conditions of supervised release , I order the

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1 following :
2 The mandatory conditions at Guideline Section

3 5D1.3 ( a)(1) , (2) , (5 ) , (6 ) and (8) ;
4 The standard conditions of supervised release set
5 forth in the Policy Statement at Guideline Section SDI . 3(c) ,
6 except for condition (13) ; and

7 The special condition of supervised release wh ich
8 prohibits you from possessing a firearm or other dangerous
9 weapon .
10 If you violate any of these conditions during your
11 peL'iod of supeL'vised L'elease , Lhe COULL will be fLee to
12 sentence you to addi t ional t ime in prison of as much as two

13 years .
14 As to a fine , 1 1m imposing a fine of $100 , 000 .
15 The court hereby directs that the Probation Office
16 provide Mr . Graham with a written statement that sets forth
17 all of the conditions of his supervised release . And that
18 statement should be sufficiently clear and specific so that
19 it may serve as a guide for his conduct .
20 As to forfeiture , the Court ordered a final order
21 of forfeiture as to all the defendants on December 31 , 2008 .
22 Mr . Graham shall pay the mandatory special
23 assessment of $1600 which is due and payable immediately for

24 his counts of conviction .
25 And is there a request for a recommendation to the

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1 Bureau of Prisons , Mr . Vinegrad?
2 MR . VINEGRAD : The Otisville Minimum Security

3 Facility .
4 THE COURT : Is there any objection to that , Mr .
5 Patricco?

7 THE COURT : I ' ll make that recommendation .
8 MR . VINEGRAD : Thank you .
9 THE COURT : The judgment of the court will be
10 prepared for my signature by the Clerk ' s Office in
11 consullalion wilh U. S . Probalion Office .
12 Mr . Graham , I need to advise you of your appeal

13 rights . I inform you that you or Government have the right
14 to appeal within ten days the convictions and sentence that
15 I ' ve just imposed . If you cannot afford to pay for the cost
16 of an appeal , you have the right to apply for leave to
17 appeal in forma pauperis . That is , the court will allow you
18 to appeal and to use the services of an attorney at no cost
19 to you if you cannot afford to pay for one yourself .
20 Do you understand that , Mr . Graham?
22 THE COURT : Is there a request for voluntary
23 surrender in this case , Mr . Vinegrad?

24 MR . VINEGRAD : Yes , there is .
25 THE COURT : How has he done during the course of

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1 his presentence release , Mr . Topor?
2 MR . TOPER : There has been no issues , your

3 Honor .
4 THE COURT : How does the Government feel about
5 that?
6 MR . PATRICCO : No objection , your Honor .
7 THE COURT : I hereby find that release pending the
8 execution of the sentence is appropriate in this case
9 pursuant to 18 U_S _ Code Section 3143(a) _
10 Accordingly , the application for voluntary
11 sULTender is granLed .
12 Mr . Graham , I hereby order that on June 3 , 2009 ,
13 you are to surrender yourself to the federal correctional
14 facility designated by the United States Bureau of Prisons
15 or as such other place as the United States Marshal Service
16 may direct . If you fail to surrender for service of your
17 sentence , you face an additional ten year term of
18 imprisonment to be served consecutively to the sentence I ' ve
19 just ordered or an additional fine or both sanctions . Do
20 you understand that too?
22 THE COURT : Is there a request for release pending
23 appeal?
24 MR . VINEGRAD : Yes , there is . My understanding ,
25 based on prior discussions , is the Government does not

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1 object .
2 THE COURT : Is that correct?

3 MR . PATRICCO : That ' s correct , your Honor . We do
4 not object .
5 THE COURT : I ' ll grant that request as well .
6 I also order that a corrected of the PSR be

7 provided to the U. s . Bureau of Prisons and the u . s .
8 Sentencing Commission , that other copies of the PSR remain
9 confidential , and that if an appeal is taken , counsel be
10 permitted access to the PSR . Under Local Rule 32(j) , a copy
11 of lhe PSR al::;o ::;lIall be made paLL of llie COULL reconJ , bul
12 shall be placed under seal . If a notice of appeal is not

13 filed , the Clerk ' s Office shall return the report to the
14 Probation Office .
15 Is there anything else to take up concerning Mr .
16 Graham today , Mr . Patricco?
18 THE COURT : Or Mr . Vinegrad?
19 MR . VINEGRAD : No , your Honor .
20 THE COURT : We ' ll be in recess .
21 (Recess . )
22
23
24
25
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1 C E R T I F I e ATE
2
3 I f Martha C . Marshall , RMR , eRR , hereby certify
4 that the foregoing pages are a complete and accurate
5 transcription of my original stenotype notes taken in the
6 matter of UNITED STATES V. ROBERT GRAHAM , which was held

7 before the Honorable Christopher F . Droney , U. S . D. J , at 450
8 Main Street , Hartford , Connecticut , on April 30 , 2009 .
10
11
12 /5/
Mar·tCh~a~C'.-'M"a~r~sCh~a'l'l-,~RM""'R',~C~R"Ro
13 Official Court Reporter
14
15
16
17
18
19
20
21
22
23
24
25
EXHIBIT 51
Case 1:16-cr-00776-VEC Document 914-6 Filed 11/19/18 Page 2 of 11 1
iau2tanS kjc
1 UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK
2 ------------------------------x
3 UNITED STATES OF AMERICA, New York, N.Y.
4 v. 17 Cr. 61(LAP)
5 GARY TANNER
6 ANDREW DAVENPORT,
7 Defendants.
8 ------------------------------x Sentence
9
October 30, 2018
10 10:05 a.m.
11
Before:
12
HON. LORETTA A. PRESKA,
13
District Judge
14
15
16
APPEARANCES
17
GEOFFREY S. BERMAN
18 United States Attorney for the
Southern District of New York
19 BY: RICHARD A. COOPER
AMANDA K. KRAMER
20 Assistant United States Attorneys
21
22 WILMER CUTLER PICKERING HALE & DORR, LLP

Attorneys for Defendant Tanner
23 BY: BRENDAN R. McGUIRE
HOWARD M. SHAPIRO
24 MATTHEW R. GALEOTTI
CLAIRE GUEHENNO
25
SOUTHERN DISTRICT REPORTERS, P.C.

(212) 805-0300
iau2tanS kjc
1 APPEARANCES
(continued)
2
3 KOSTELANETZ & FINK, LLP

Attorney for Defendant Davenport
4 BY: SHARON L. McCARTHY
5 - and -
6 POLSINELLI PC
Attorneys for Defendant Davenport
7 BY: MARY CLARE BONACCORSI
10 ALSO PRESENT:
11 SHAPIRO ARATO, LLP

Appellate Counsel for Defendant Davenport
12 BY: ALEXANDRA A. E. SHAPIRO
13
COVINGTON & BURLING LLP
14 Attorneys for Valeant
BY: NANCY L. KESTENBAUM
15
16 SPECIAL AGENT MICHAEL PREIS, F.B.I.
17
18
19
20
21
22
23
24
25

(212) 805-0300
iau2tanS kjc
1 (Case called)
2 THE COURT: United States v. Gary Tanner and Andrew
3 Davenport.
4 Is the government ready?
5 MR. COOPER: Yes. Good morning, your Honor. Richard
6 Cooper and Amanda Kramer for the government. With us at
7 counsel table, F.B.I. Special Agent Michael Preis.
8 THE COURT: Good morning.
9 MS. KRAMER: Good morning, your Honor.
10 THE COURT: Counsel for defendant Tanner.
11 MR. McGUIRE: Good morning, your Honor. Brendan
12 McGuire, Howard Shapiro, Matthew Galeotti, and Claire Guehenno
13 on behalf of Mr. Tanner. Mr. Tanner is here with us, as well.
14 THE COURT: Yes, sir. Good morning.
15 Counsel for Mr. Davenport.
16 MS. McCARTHY: Good morning, your Honor. Sharon
17 McCarthy. I am here with Mary Clare Bonaccorsi and also
18 Mr. Davenport.
19 THE COURT: Yes, ma'am. Thank you.
20 Mr. McGuire, have you and your client had adequate
21 time to review the presentence report?
22 MR. McGUIRE: We have, your Honor.
23 THE COURT: Is there any reason it should not be made
24 a part of the record?
25 MR. McGUIRE: No, your Honor.

(212) 805-0300
iau2tanS kjc
1 THE COURT: Are there any objections to the report?
2 MR. McGUIRE: None other than were previously included
3 in our prior written submissions to the court, your Honor.
4 THE COURT: Do you folks want to discuss loss amount
5 at this point? Obviously you have all put in materials on it,
6 and I think the question is whether or not, under 2B4.1, we are
7 taken back to the 2B1.1 guidelines and thus the 20 points.
8 That's the question.
9 Ms. McCarthy.
10 MS. McCARTHY: Your Honor, we certainly put in our
11 submissions that we don't believe that there is a loss here;
12 that we have proven in fact that Valeant earned quite a lot of
13 money off of the work that Philidor did; that in fact the
14 purchase price for Philidor was below its purchase price value
15 and was bought at a bargain by Valeant.
16 So we are not contesting that there was a verdict here
17 against our clients --
18 THE COURT: But here is the question. I am focusing
19 on the bribery, commercial bribery guideline, which
20 specifically talks about the value of the bribe --
21 MS. McCARTHY: Yes, we understand.
22 THE COURT: -- and doesn't that take us to the 9.7,
23 which then takes us to the 2B1.1 guideline, which gives us the
24 20 points?
25 MS. McCARTHY: That is correct, your Honor.

(212) 805-0300
iau2tanS kjc
1 is that essentially this was a victimless crime. But that is
2 not true.
3 Valeant was harmed by the defendants' conduct.
4 Valeant was harmed financially, which is why the company is
5 seeking restitution, but not just financially. The defendants'
6 betrayed Valeant's trust, which means that the defendants
7 betrayed the trust of the company, the trust of its management,
8 of its shareholders and, perhaps most importantly, betrayed the
9 trust of the company's other employees, employees who also work
10 hard for the company but who don't steal from it just because
11 they think they deserve it.
12 As Mr. Cooper just said, in this way, this case is
13 just like every other honest services case, and we ask that the
14 court take this into account in fashioning an appropriate
15 sentences here.
16 Thank you.
17 THE COURT: Yes, ma'am. Thank you.
18 Are there any other victims who wish to be heard?
19 Does anyone wish to add anything?
20 Thank you, counsel. Thank you, counsel, particularly
21 for your excellent submissions and for your oral presentations
22 today.
23 Counsel, some things I am going to say will apply to
24 both defendants and I think it will be clear which do and which
25 are specific to one defendant.

(212) 805-0300
iau2tanS kjc
1 In general, with respect to the nature and
2 circumstances of the offense, certainly you have heard that I
3 have calculated the guidelines and take them into account.
4 Here, however, I agree with Judge Sullivan, where he said in
5 United States v. Newman, No. 12 Cr. 121 (RJS) (S.D.N.Y. May 2,
6 2013), "There is a lot of talk about the sentencing guidelines
7 these days, particularly in fraud cases, a lot of suggestion
8 that the guidelines are overly mechanical, and that they are
9 out of whack in many cases, and I think that's probably true.
10 I think in many cases, if left to themselves, if that were the
11 only thing, then the guidelines can lead to sometimes absurd
12 and certainly unjust results."
13 They certainly would have in United States v. Joseph
14 Collins, 07 Cr. 1170, where the proposed guidelines sentence
15 was four levels below life. The guidelines are an especially
16 imperfect proxy in a case of private sector honest services
17 fraud like this one. The crime here, as counsel have
18 discussed, is the employee's deprivation from his employer of
19 its intangible right to the employee's honest services. That
20 crime is untethered to any financial loss or harm to the
21 employer. The amount of money that changes hands is not
22 necessarily an accurate measure of the deprivation of the
23 intangible right to honest services.
24 While financial loss played no role at trial in the
25 determination of culpability, under the sentencing guidelines,

(212) 805-0300
iau2tanS kjc
1 it becomes the single most important consideration in
2 sentencing. Such approach is patently unfair. As we know,
3 both the probation department and the government have
4 recognized that, and I note that the probation department, as
5 to each defendant, has noted that, without minimizing the
6 seriousness of the offense, given the defendants' familial ties
7 and responsibility and their compliance with the bail
8 conditions, probation believes that a seriously
9 below-guidelines sentence is appropriate. I agree.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

(212) 805-0300
iau2tanS kjc
8 So in considering the history and characteristics of
9 these defendants, I take into account all of these facts.
10 With respect to the paragraph 2 factors, there is a
11 need for a serious sentence here to reflect the seriousness of
12 the offense and to provide respect for the law. As we have
13 heard at length from the government, there is a need here to
14 protect companies' right to the honest services of their
15 employees.
16 With respect to paragraph B, I am convinced that there
17 is no need for extensive incarceration to deter either of these
18 individuals.
19 With respect to general deterrence, I agree with
20 Judge Rakoff, who says there is "considerable evidence that
21 even relatively short sentences can have a strong deterrent
22 effect on prospective 'white-collar' offenders." United States
23 v. Adelson, 441 F.Supp.2d 506, 514 (S.D.N.Y. 2006) (citing
24 Richard Frase, Punishment Purposes, 58 Stan. L. Rev. 67, 80
25 (2005) and Elizabeth Szockyj, Imprisoning White Collar

(212) 805-0300
iau2tanS kjc
1 Criminals?, 23 S. Ill. U. L. J. 485, 492 (1998)); see also
2 United States v. Tomko, 562 F.3d 558, 573 (3d Cir. 2009)
3 (rejecting government's argument that district court's
4 probation-only sentence in complex securities fraud case would
5 harm general deterrence).
6 In this instance, as we have heard at great length,
7 particularly from the individuals speaking on behalf of these
8 defendants, even a relatively short sentence has a very
9 devastating effect on defendants and certainly has a strong
10 deterrent effect in general.
11 In considering the paragraph D factors, I have taken
12 into account Mr. Davenport's medical situation, which is indeed
13 a difficult situation which requires monitoring.
14 I have in mind the paragraph 3, 4, and 5 factors.
15 With respect to paragraph 6, the need to avoid
16 unwarranted sentencing disparities, of course I am aware that
17 it is my job to take into account nationwide sentences,
18 nationwide cases, not just these cases; however, as I noted
19 with respect to the fraud guidelines, they are truly out of
20 whack at the higher ends, and that is where we find ourselves
21 today. So to the extent that there is any perceived disparity,
22 it is because of the unworkability of the fraud guidelines at
23 the far end.
24 With respect to paragraph 7, the need to provide
25 restitution, I note that both defendants of course are looking

(212) 805-0300
iau2tanS kjc
1 at enormous financial penalties, and thus a very lengthy
2 sentence will deter from their ability to make restitution and
3 thus that argues against requiring a lengthy prison term.
4 Mr. Tanner, counsel, taking all of those factors into
5 account, it is my intention to impose a sentence of a year and
6 a day on Mr. Tanner, followed by a period of two years of
7 supervised release on each count to run concurrently.
8 It is not my intention to impose a fine, in light of
9 the other financial penalties that Mr. Tanner is facing.
10 It is my intention to impose the restitution amount
11 set out in the proposed order of restitution, which is
12 $9,703,995.33.
13 Forfeiture, as we have discussed, will be determined
14 later.
15 MR. COOPER: Your Honor, I'm sorry to interrupt.
16 THE COURT: Forgive me. You are right. Forfeiture is
17 in the amount I noted. Restitution is to be determined later.
18 It is my intention to impose the special assessment of
19 $400.
20 It is my intention to provide the payment schedule
21 that is set forth at pages 31 to 32, which talks about period
22 of incarceration and monthly installments at 20 percent of
23 Mr. Tanner's gross monthly income.
24 It is my intention to impose the recommended special
25 conditions of access to financial information and no lines of

(212) 805-0300

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Case 1:16-cr-00776-VEC Document 914 Filed 11/19/18 Page 1 of 50

Faller Grp., Inc. v. Jaffe

Kimbrough v. United States

Nelson v. United States

Pepper v. United States

Smirlock v. United States

United States v. Adelson

United States v. Andersen

United States v. Bazazpour

United States v. Block

United States v. Butler

United States v. Canova

United States v. Carmona-Rodriguez

United States v. Carrington

United States v. Cavera

United States v. Collins

United States v. Coppola

United States v. Corsey

United States v. Cuti

United States v. Deutsch

United States v. Dickler

United States v. Emmenegger

United States v. Faibish

United States v. Ferguson

United States v. Foster

United States v. Galante

United States v. Gennuso

United States v. Getto

United States v. Ghavami

United States v. Graham

United States v. Gupta

United States v. Haddock

United States v. Harris

United States v. Hernandez

United States v. Jamieson

United States v. Kang

United States v. Khandrius

United States v. Khedr

United States v. Kilbride

United States v. Kipnis

United States v. Korfhage

United States v. Lumiere

United States v. Martin

United States v. Maurello

United States v. Mitrow

United States v. Morales

United States v. Near

United States v. Nesbeth

United States v. Parris

United States v. Preacely

United States v. Prosperi

United States v. Ranum

United States v. Rigo

United States v. Romano

United States v. Ruiz

United States v. Rutkoske

United States v. Rutkoske

United States v. Schneider

United States v. Slatten

United States v. Stewart

United States v. Tanner

United States v. Tomko

United States v. Walters

$0LWFKHOO3ROLQVN\DQG6WHYHQ6KDYHOOOn the Disutility and Discounting of

Faller Grp., Inc. v. Jaffe

Kimbrough v. United States

Nelson v. United States

Pepper v. United States

Smirlock v. United States

United States v. Adelson

United States v. Andersen

United States v. Bazazpour

United States v. Block

United States v. Butler

United States v. Canova

United States v. Carmona-Rodriguez

United States v. Carrington

United States v. Cavera

United States v. Collins

United States v. Coppola

United States v. Corsey

United States v. Cuti

United States v. Deutsch

United States v. Dickler

United States v. Emmenegger

United States v. Faibish

United States v. Ferguson

United States v. Foster

United States v. Galante

United States v. Gennuso

United States v. Getto

United States v. Ghavami

United States v. Graham

United States v. Gupta

United States v. Haddock

United States v. Harris

United States v. Hernandez

United States v. Jamieson

United States v. Kang

United States v. Khandrius

United States v. Khedr

United States v. Kilbride

United States v. Kipnis

United States v. Korfhage

United States v. Lumiere

United States v. Martin

United States v. Maurello

United States v. Mitrow

United States v. Morales

United States v. Near

United States v. Nesbeth

United States v. Parris

United States v. Preacely

United States v. Prosperi

United States v. Ranum

United States v. Rigo

United States v. Romano

United States v. Ruiz

United States v. Rutkoske

United States v. Rutkoske

United States v. Schneider

United States v. Slatten

United States v. Stewart

United States v. Tanner

United States v. Tomko

United States v. Walters

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