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UNITED STATES OF AMERICA EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION UNITED STATES OF AMERICA, Plaintiff,
v. Case No. 12-20030 Hon. Nancy G. Edmunds GEORGE STANTON,
Defendant. /
DEFENDANT GEORGE STANTON’S SENTENCING MEMORANDUM
Introduction
George Stanton will appear before this Court for sentencing on
October 1,
2015 having pled guilty to Acceptance of Bribes in violation of
18 U.S. §
666(a)(1)(B), pursuant to a Rule 11 plea agreement. Under the
Rule 11 plea
agreement the parties stipulated that the guideline range is
24-30 months.
Probation agrees with the stipulated guideline range.
The government, however, will be filing a Motion for Downward
Departure
based on Defendant’s substantial assistance. Upon information
and belief,
defendant anticipates that the government will recommend a 50%
reduction from
the agreed upon guideline range. Of course, this Court is free
to accept or reject
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the government’s recommendation and is also free, in light of
United States v.
Booker, 543 U.S. 220, 125 S.Ct. 738 (2005), to impose a sentence
outside the
guidelines, even absent the government’s motion.
Given Mr. Stanton’s critical and extensive cooperation and the
various other
factors set forth in 18 U.S.C. § 3553(a), Mr. Stanton
respectfully suggests that this
Court, in the informed exercise of its discretion, should impose
a sentence of
straight probation, or alternatively a sentence of probation
coupled with a term of
home confinement. As more fully explained below, the proposed
sentenced is
consistent with the sentence imposed on others who have
cooperated in
investigations of corrupt City of Detroit officials. Such a
sentence is entirely
consistent with the Supreme Court’s admonition that a sentence
be “sufficient, but
not greater than necessary, to comply with” the purposes of 18
U.S.C. § 3553(a).
The factors set forth in 18 U.S.C. § 3553(a) that guide a judge
in
determining the appropriate sentence since the Supreme Court’s
landmark decision
in United States v. Booker, 543 U.S. 220 (2005) are certainly
well known to Court,
as is the requirement that the Court “impose a sentence
sufficient, but not greater
than necessary, to comply with” the factors set forth in 18
U.S.C. § 3553(a)(2).
Familiar, too, is the Supreme Court’s admonition in Gall v.
United States, 522 U.S.
38 (2007), that in applying these factors, a sentencing judge
“must make an
individualized assessment based on the facts presented.”
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Although the promulgation of the Guidelines was an attempt by
Congress to
promote uniformity in sentencing, Booker and its progeny, as
well as the factors set
forth in 18 U.S.C. § 3553(a) make clear that sentencing involves
more than a
formulaic response to crime and punishment, and requires the
sentencing court to
consider offender characteristics that go beyond the simple
issue of criminal
history, the only Guideline factor that speaks to the offender.
Indeed, in United
States v. Gall, 522 U.S. 38, 128 S.Ct. 586, 596 (2007), the
Supreme Court
specifically stated that a formulaic approach to sentencing is
inappropriate:
On the other side of the equation, the mathematical approach
assumes the existence of some ascertainable method of assigning
percentages to various justifications. Does withdrawal from a
conspiracy justify more or less than, say, a 30% reduction? Does it
matter that the withdrawal occurred several years ago? Is it
relevant that the withdrawal was motivated by a decision to
discontinue the use of drugs and to lead a better life? What
percentage, if any, should be assigned to evidence that a defendant
poses no future threat to society, or to evidence that innocent
third parties are dependent on him? The formula is a classic
example of attempting to measure an inventory of apples by counting
oranges.
The Supreme Court also made clear that in applying the § 3353(a)
factors, a
sentencing judge “must make an individualized assessment based
on the facts
presented” by the case, without giving presumptive weight to the
Guidelines
sentencing range:
[A] district court should begin all sentencing proceedings by
correctly calculating the applicable Guidelines range. As a matter
of
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administration and to secure nationwide consistency, the
Guidelines should be the starting point and the initial benchmark.
The Guidelines are not the only consideration, however.
Accordingly, after giving both parties an opportunity to argue for
whatever sentence they deem appropriate, the district judge should
then consider all of the § 3553(a) factors to determine whether
they support the sentence requested by a party. In so doing, he may
not presume that the Guidelines range is reasonable. He must make
an individualized assessment based on the facts presented.
Id at 596-597.
Such an approach which gives individualized consideration to all
of the
sentencing factors identified by the statute is not only
commanded by the Booker
holding, but is logical as well, in view of the degree to which
the Guidelines are
driven principally by the nature of the offense conduct, and
only minimally by the
characteristics of the particular offender and his or her life
and character. As the
Supreme Court noted in Gall, quoting its earlier opinion in Koon
v. United States,
518 U.S. 81, 113 (1996), “It has been uniform and constant in
the federal judicial
tradition for the sentencing judge to consider every convicted
person as an
individual and every case as a unique study in the human
failings that sometimes
mitigate, sometimes magnify, the crime and the punishment to
ensue.” Id at 598.
Mr. Thadeus Dean of the United States Probation Department has
prepared a
presentence report and counsel sees no need to reiterate what is
contained in the
report. Nevertheless, undersigned counsel believes it
appropriate to emphasize
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some of the information contained in the report and supplement
it with some
additional information.
Mr. Stanton has taken responsibility for his conduct. Thus, the
question to
be answered is what sentence is “sufficient, but not greater
than necessary, to
comply with the purposes set forth in § 3553(a).” Under §
3553(a) the Court, in
addition to the Guideline range, should consider the following
factors:
(1) the nature and circumstances of the offense and the history
and characteristics of the defendant;
(2) the need for the sentence imposed--
(A) to reflect the seriousness of the offense, to promote
respect for the law, and to provide just punishment for the
offense;
(B) to afford adequate deterrence to criminal conduct;
(C) to protect the public from further crimes of the defendant;
and
(D) to provide the defendant with needed educational or
vocational training, medical care, or other correctional treatment
in the most effective manner;
(3) the kinds of sentences available;
* * *
(6) the need to avoid unwarranted sentence disparities among
defendants with similar records who have been found guilty of
similar conduct;
(7) the need to provide restitution to any victims of the
offense.
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1. The nature and circumstances of the offense and the history
and
characteristics of the defendant
A. The nature and circumstances of the offense
At the time of the offense, Mr. Stanton was employed as Detroit
city
Council woman Alberta Tinsley-Talabi’s chief of staff. In 2007,
when the offense
occurred, Ms. Tinsley-Talabi, based in her position as a city
Councilwoman, also
served on the Board of Trustees of the Police and Fire
Retirement system (PFRS).
The Board of Trustees of the police and fire retirement system
is responsible for
managing the funds in the PFRS. As part of their duties, the
Board of Trustees
votes on various investments funded by the PFRS. As Ms.
Tinsley-Talabi’s Chief
of Staff, Mr. Stanton would advise Ms. Tinsley-Talabi on the
various investments
presented to the Board of Trustees.
Co–defendant Roy Dixon was an investment advisor and owner of
Onyx
Capital Advisors, L.L.C. Mr. Dixon also operated a private
equity fund, Onyx
Capital Advisor Fund I (OCAF). During the relevant time period,
OCAF, acting on
behalf of PR Investments Group, Ltd., sought a multimillion
dollar investment
from the PFRS for a project in the Turks and Caicos Islands. Mr.
Dixon paid Mr.
Stanton $15,000 in return for his help in securing the funds
from the PFRS for the
aforementioned investment.
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In May of 2012, the agents came to Mr. Stanton’s house and he
made an
initial statement. The agents then requested that he come to the
United States
Attorney’s Office for a more in-depth interview which he agreed
to do. While
being interviewed at the U.S. Attorney’s Office, it became
apparent to Mr. Stanton
that he was more than a mere witness and contacted undersigned
counsel.
After conferring with counsel, he immediately agreed to
cooperate and was
fully debriefed. Moreover, at the meeting, Mr. Stanton agreed to
cooperate
pro-actively by agreeing to contact Ms. Tinsley-Talabi, Paul
Stewart, and James
Moore and record conversations. During these conversations,
however, the
participants were very circumspect and did not make any damaging
admissions.
Mr. Stanton has met with the agents on approximately 10
occasions and also
testified at trial. According to the government, Mr. Stanton
provided credible and
important testimony.
B. The history and characteristics of the defendant.
The experience of living in this world teaches us that human
beings, and
human lives, are multifaceted, and that a person cannot be
fairly judged on the
basis of only one aspect of his or her life. When the entire
picture of Mr. Stanton’s
life and circumstances, coupled with his decision to cooperate
is put into
perspective, there are ample reasons to impose a non-custodial
sentence.
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To amplify and expand the picture of Mr. Stanton which may be
available
for the Court’s consideration, counsel for Mr. Stanton has
attached to this
submission letters from people close to Mr. Stanton.1 The
letters portray Mr.
Stanton as one who was dedicated to improving the City of
Detroit, understands
the important role that family, religion, and community service
play in one’s life.
They describe a man who takes great pleasure in lending a
helping hand to those
less fortunate. The letters also make clear his heartfelt and
sincere remorse.
Finally, the letters also emphasize that Mr. Stanton’s
involvement in this crime
does not stem from one who is inherently venal or corrupt.
His wife, Marquitta Stanton, whom he met with while working
for
Councilwoman Tinsley-Talabi, who currently works as an
investigator for the
Board of Police Commissioners writes of his dedication to the
City of Detroit:
[George and I] were married in June 2014, after knowing each
other for nearly twenty years. It happens that we met and became
friends while we both were on the staff of City Councilwoman
Alberta Tinsely-Talabi. I mention this because, not only do I know
him now as the wonderful man who has committed to love and cherish
me for life, but I have also witnessed him in a professional
capacity, where I saw for myself his sincerity for advancing and
proposing good public policy for the citizens of Detroit. His
vision and drive for a better Detroit led him to propose the
establishment of the city’s Show Cause Hearings Division that is
still functioning today as an indispensable tool to bolster the
city’s fight against blight. When local small
1 The letters are attached collectively as exhibit A.
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business owners lamented about the endless red tape involved in
establishing and operating their businesses, securing inspections
and business licenses, etc., George formulated a plan to establish
the Office of Targeted Business Development. These are just two of
the many substantial, lasting monuments of his public policy
efforts. Being a public servant to George was his profession, but
it was not something into which he merely stumbled as he searched
for purpose in life. He chose a career in public service for the
same reason most non-elected public servants do – because life does
not seem fulfilling for dedicated public servants if they are not
helping improve the quality of life for others for the majority of
their day – everyday. As a City Council staffer George took much
personal pride in his work, but he never sought or had expectations
of receiving accolades for his public policy initiatives. He was
content with not being in the spotlight while he worked behind the
scenes, and I have always admired that part of him.
Mr. Stanton’s mother, Roxie Banks, echoes his wife’s
comments:
But [George’s] work for the City Council was especially
meaningful to him and extremely rewarding for George. It was his
way of giving back to the community on a large scale.
George often worked 60-hour weeks. He was always so passionate
about how the city could provide better services and always had so
many good ideas for how they could do it. I was especially proud of
George because he continued to dedicate himself to his work even
though he did not receive accolades, appreciation or support from
his boss. He would complain to us about the horrible lack of
professionalism he had to endure in his office on a daily basis.
But he found a way to stay because of the rewarding work that he
was doing and because he was able to take time from work as needed
for his only son.
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Ms. LaKisha Barclift Jones, an attorney and Legal Analyst for
the Detroit
City Council, who has known Mr. Stanton for over 25 years also
speaks of his
dedication to improving the City of Detroit:
Additionally, George and I also knew each other in a
professional capacity. We worked together for seven years serving
the City of Detroit. In his capacity as Director of Public Policy,
he worked diligently to improve City operations, to give back to
the community and to improve the quality of life for Detroit
residents. Notably, he led the process to develop a regulatory
process used to close businesses that repeatedly violate City
ordinances and create nuisances in the community. Additionally, he
drafted an ordinance that requires the City to conduct a toxic
assessment test on all property before purchasing and accepting it
so that the City would not be caught unaware of deleterious
conditions that would later create a burden.
His former college roommate and longtime friend, Randall
Washington,
writes that Mr. Stanton’s passion for public service began in
college and continued
during his service as Ms. Tinsley-Talabi’s Chief of Staff:
George has always shown his passion for improving the community.
George left a lasting impression on me during our freshman year at
MSU when he ran for a spot on one of our residence hall’s
leadership councils, the Case Hall Black Caucus. When George, the
public policy major, saw a bias in how student workers were being
assigned duties in our cafeteria, he made it his platform when he
ran for the position. As a member of the caucus, he and the group
presented their issues to the food service administration who
agreed to rotate student assignments. I’ve always admired how he
seeks out ways to make life better for those around him.
* * * George’s work in public service was more than a job for
him. He saw it as an opportunity to have a meaningful impact on the
lives of the people of Detroit and to help increase the quality of
life in the
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community. He found fulfillment in his work. I know because he
never stopped talking about it. George worked long hours every week
maintaining a high level of output to make up for the staff’s
dispassionate efforts. He was trying to lead the staff by example
despite having to endure an unprofessional and demoralizing work
environment. Every Sunday I knew exactly where he would be – in the
office reading reports and writing detailed talking points for the
councilwoman who always struck me as somewhat inept and detached
from the minutia of the day to day legislative process.
The letters also speak to the important role that family plays
in Mr. Stanton’s
life. His wife writes:
I knew [George] was the man for me, in large part, because he is
a good son to his mother. George calls his mother regularly,
considers her needs when he and I are out running typical errands,
advises her in her business affairs, etc. Being one of the few men
in the family who live in the area, George is also always attentive
to his aunties. He’s always there for them in the same ways he is
there for his mother. In return, they have been a great help to
George during this difficult time in his life. They’ve offered
encouraging words and even volunteered to assist him financially.
George and his living sister, Linda, are very close, talk regularly
and have supported each other emotionally and financially over the
years.
Mr. Stanton’ sister, Linda Stanton-Thomas, who is employed as
a
transportation officer for the Michigan Department of
Corrections also writes of
the important role that family plays in Mr. Stanton’s life:
George and I have been very close all of our lives; we are only
11 months apart in age and I am the oldest. Throughout our lives
George’s always been very loving and supportive. . . There isn’t a
moment in my life I have celebrated, cried, loved, achieved or
failed without him being right by my side.
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As a child he was typical little brother always in the way
wanting to help with everything you were doing. . . I can remember
him crying at times he could not be a part of what ever are other
sister and I were doing. He would help us finish our chores so the
three of us could play together. . . Not only has he been a great
support to me, he is always been a loving and respectful son to our
mother may very dedicated and hands-on father.
* * * What I admire most about my brother is his love and
dedication to his son, Geordie. Fatherhood means everything to
George. He is committed to being the best father he can be to his
son. George has joint custody of his son. He and his first wife
divorced when Geordie was two, he will celebrate his 17th birthday
May 11. George is always taken them to doctor appointments, he
attends all school and sport events, parent/teacher conference, he
cooks, cares for him when he is sick. He does all the things a
loving, connected, and devoted father would do for his child. What
makes all of this so special is that George has never experienced
this kind of love and devotion from his own father, yet is able to
give all of this so freely to his son.
His pastor, Martina M. Orange, also writes of Mr. Stanton’s
dedication to his
family:
When his first marriage ended in divorce, George insisted on
joint custody of his then 2-year-old son. It has been heartwarming
to hear family stories of how becoming a full time parent was a
life style change for George, but one he was committed to and
cherished. We have talked about taking time off from work when his
son was sick and being proud of his ability to figure out why his
son was crying. There were the times when he would go to his son's
child care for a parent event and couldn't go back to work because
his son had messed up his work clothes or because his son was
making a huge fuss about not being able to leave with his dad.
* * *
From videotaping his son's first day at school, going to movies
together, playing video games, all the sports practices he attended
to countless hours of helping with, and checking, homework, being
a
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father has always been George's priority. He taught his son the
value of working hard, being respectful and honesty. His son is now
a senior in high school with a 3.6 GPA and looking forward to
college . . . George is showing the same level of love and support
to his stepdaughter who was diagnosed with major depression. I was
particularly moved to find out how George spent a considerable
amount of time researching and educating himself about the disorder
so that he can support and assist her in the best possible way.
George has always been close to his mom as well as his aunts.
They are all at an age now where getting around is not always easy.
George will call to check on them and does not hesitate to offer
his assistance to make their lives easier. This could entail work
around the house, taking them to a doctor's appointment or going to
the grocery store to pick up items for them. Recently, one of his
aunts' called George because her refrigerator was not working
properly. After confirming that she needed to call the repairman,
George drove across town to help her move food to her freezer to
keep from spoiling. His aunt didn't ask him to but he knew it would
be a big help to her.
Finally, his father-in-law, Harrison Tolliver III, talks about
how Mr. Stanton
never hesitates to lend a helping hand:
Over the years George has volunteered to help me with everything
from heavy-lifting chores like cleaning out the basement and yard
work, to taking the time to put me and other family and friends in
touch with the right people to help with our concerns about city
services. He even helped me with identifying the owner of the
vacant property near my elderly mother’s home to get him to clean
and board it up. I will admit George may have done all of that to
campaign for my daughter’s hand in marriage, but I honestly had
been trying to steer my daughter toward him anyway even before they
began dating because I always saw George as a good, honest,
hard-working, and stable man who would be good for her.
Both his minister, Reverend Martina L. Orange, and his mother,
Roxie
Banks also write about Mr. Stanton’s involvement in charitable
church activities:
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George has also given of himself to support various charitable
& outreach programs of our church. Over the years, he has been
instrumental in helping the church secure turkeys and other food
for our homeless meals program. He has worked with the church to
clean & mow vacant lots, remove dead trees and bulk trash as
well as delivering meals to elderly church members who are
sick.
Reverend Orange
George doesn't hesitate to clear snow from the homes of his long
retired neighbors who are not able to do so. He volunteers at the
church for food basket giveaways and community cleanups.
Mother, Roxie Banks
It is well established that a defendant’s charitable good works
can support a
variance. See e.g. United States v Tomko, 562 F.3d 558, 571 (3rd
Cir. 2009)
(“District court did not abuse its discretion in sentencing
defendant to probation
with a year of home detention, community service, restitution,
and fine for tax
evasion, rather than to term of imprisonment based on “his
negligible criminal
history, his employment record, his community ties, and his
extensive charitable
works. . .”).
It seems clear that Mr. Stanton’s actions in this case stand in
stark contrast to
his devotion to the family and the community. One naturally asks
the question
what motivated him to commit this crime. His wife in her letter
gives some insight
on why such a decent man made such a serious error in
judgment:
After serving on [Council Woman Tinsley-Talabi’s] staff for over
ten years, George began to seek other public service opportunities.
He soon told me of how the councilwoman had been discouraging
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potential employers from hiring him. George doesn’t wear his
heart on his sleeve and he’s always emotionally composed, so I
didn’t know then how deeply that rattled him. So much so that, in
hindsight, I can see that he panicked, which led to him making a
rash decision out of fear. George decided he would have to strike
out on his own since the councilwoman was thwarting his efforts to
separate from her. He incorporated a business consulting firm. I
encouraged him and knew he would be an outstanding consultant
because of his experience, creativity, can-do attitude and the
numerous professional contacts he had made over the years. In
George’s effort to hasten his departure from the councilwoman’s
office and develop a client base, however, he made an impulsive and
egregious error in judgment by accepting the bribe.
Mr. Stanton’s post-arrest conduct his been nothing less than
exemplary. He
fully cooperated with the government’s investigation and has
fully complied with
the terms of his pretrial release.
2. The “need for the sentence” to comport with the traditional
purposes of
punishment.2
A. Retribution.
The first of the statutory factors - that the sentence imposed
should “reflect
the seriousness of the offense, . . .promote respect for the
law, and . . .provide just
punishment for the offense,” echoes the traditional concept of
“retribution.” Such
2 The “traditional purposes of punishment . . . include
retribution, rehabilitation, prevention of further crimes by the
defendant, and deterrence of the defendant and others who might
contemplate committing similar crimes. Hobbs v. County of
Westchester, 397 F.3d 133, 158 (2d Cir. 2005) (citing 1 W. LaFave,
Substantive Criminal Law § 1.5(a)(2d ed.2003).
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measurements are of course difficult to draw with precision.
While undersigned
counsel certainly recognizes that punishment is a factor in the
sentencing calculus,
undersigned counsel respectfully submits that it is not
necessary to impose a term
of imprisonment. Undersigned counsel respectfully suggests that
a non-custodial
sentence would be ample punishment when balanced against his
cooperation and
the other 3553(a) factors.
B. Deterrence - General and Special
The two species of deterrence call for two kinds of analysis. As
for general
deterrence - the need to fashion a punishment which will deter
the public at large
from taking the same course of action as did the defendant - it
seems reasonable to
conclude that a sentence which results in Mr. Stanton having a
felony conviction,
after having provided a significant amount of cooperation would
serve as a
sufficient disincentive to others who might otherwise be tempted
to similar
conduct. Moreover, the recent spate of prosecutions and
sentences meted out to
City of Detroit officials involved in public corruption has been
well publicized and
certainly should serve as disincentive to others who might be
tempted to engage in
such misconduct.
With respect to special deterrence - the need to dissuade the
defendant
himself from future illegal conduct - the question seems far
simpler. The letters
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submitted on Mr. Stanton’s behalf leave no doubt that Mr.
Stanton is extremely
remorseful and has taken full responsibility for the conduct
which has brought him
before this Court and there is simply no reason whatsoever to
believe that Mr.
Stanton will ever again engage in criminal conduct. Indeed, the
letters from family
members and friends make clear that Mr. Stanton is genuinely
remorseful: “In our
family meetings and conversations with Geordie and Kendall about
this situation,
George has always made it clear that there is never a good
reason for violating the
public trust. He has repeatedly expressed his regret, but he
makes it clear that he
does not consider himself a victim in this situation. He has
definitely taken
ownership for his poor judgment on this.” (Marquitta
Stanton-wife); “George has
expressed to me many times his regret and remorse for taking
that money. He is
embarrassed and deeply ashamed of the foolish mistake he made.
(Linda
Stanton-Thomas-Sister); “George has told me time and again how
he wishes he
would not have accepted that money. . .He puts on a brave face
for me, but I know
him. I can tell he’s deeply ashamed and remorseful.” (Roxie
Banks-Mother);
“[George] fully accepts the seriousness of his violation.”
(Harrison B. Tolliver
III-Father-in-law); “George accepts full responsibility for his
actions.”(Martina L.
Orange-Minister); Mr. Stanton has certainly gotten the message
and a prison
sentence will have absolutely no effect on Mr. Stanton’s future
conduct.
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C. Incapacitation.
“The rationale for incapacitation is to allow society to
‘protect itself from
persons deemed dangerous because of their past criminal
history.’” Allen v.
Woodford, 395 F.3d 979, 1009 (9th Cir. 2004) (citing 1 W. LaFave
& A. Scott,
Substantive Criminal Law 38 § 1.5 (2003)). As stated above,
counsel submits that
there is simply no reason for the Court to believe that there is
any reason to protect
society from Mr. Stanton.
D. Rehabilitation. There is little doubt based on Mr. Stanton’s
post-arrest conduct that Mr.
Stanton has been fully rehabilitated. Moreover, his decision to
cooperate is also a
sign of his rehabilitation. As recognized by Judge Motley, in
United States v.
Motley, 807 F.Supp. 1063, 1067-168 (S.D. N. Y. 1992),
“cooperation with the
Government...signals a step forward in rehabilitation.”
3. The kinds of sentences available.
In the wake of Booker, this Court is free to impose any kind of
sentence
which it deems appropriate, from straight probation to
imprisonment.
4. The need to avoid unwarranted sentencing disparity.
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The key word here, of course, is unwarranted. United States v.
Newsom, 428
F.3d 685, 689 (7th Cir. 2005) (“we begin with the observation
that § 3553(a) does
not ban all disparities; its concern is only with unwarranted
disparities.”). In the
case at bar, to impose a non-custodial sentence would certainly
not constitute an
unwarranted sentencing disparity when compared to the
dispositions and sentences
of other persons involved in public corruption cases related to
the City of Detroit.
Anthony Suave, the owner of Waste Management, who provided
former
mayor Kwame Kilpatrick, “with gifts such as 20 free round-trips
on his private jet,
a shopping spree in New York City, and a pair of 10,000 NBA
finals tickets”,
received complete immunity in return for his cooperation despite
the fact that one
of his companies was awarded a $50 million contract.
http://archive.freep.com/article/20121206/NEWS0102/121206075/Kwame-Kilpatri
ck-Bobby-Ferguson-public-corruption-trial-Anthony-Soave, as
viewed January 12,
2015.
Similarly, Rachmale Avinish, the CEO of Lakeshore Engineering,
received
complete immunity in exchange for his cooperation despite the
fact that Lakeshore
engineering paid one of Bobby Ferguson’s companies, $1.7 million
for no work
and Lakeshore Engineering received contracts with over $15
million.
http://www.freep.com/article/20121116/NEWS0102/121116045, as
viewed
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September 16, 2015. Thomas Hardiman, the then vice president of
Lakeshore
Engineering, also was not prosecuted in exchange for his
testimony.
http://www.clickondetroit.com/news/Kilpatrick-Trial-Contractor-Thomas-Hardima
n-testifies-Bobby-Ferguson-told-him-these-are-my-streets/17400478,
as viewed
September 16, 2015.
This Court did not impose prison sentences on several former
associates of
former mayor Kwame Kilpatrick who were charged and cooperated in
the
investigation of Mr. Kilpatrick and Mr. Ferguson despite being
intimately involved
in Mr. Kilpatrick’s corruption. Emma Bell, who, from 2003-2008,
worked as a
fundraiser for Kilpatrick for Mayor, the Kilpatrick Inaugural
Committee, and the
Kilpatrick Civic Fund received two years probation. The
government’s sentencing
memorandum described her conduct as follows:
Ms. Bell was paid a commission from the funds she
raised--usually between 10-15%. Kwame Kilpatrick required her to
kick back half of the money in cash when her commission checks
reached $5,000 or more. Ms. Bell dutifully complied with Mr.
Kilpatrick’s directive; however, she failed to report her
commissions on her federal tax returns. As a result, she owes the
Internal Revenue Service restitution in the amount of $334,236.00,
which represents the additional tax due and owing from her
unreported income for tax years 2003 through 2008.
* * * She concealed her commissions by not depositing them into
her bank accounts and by turning her commission checks into cash
and cashier’s checks.
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Government Sentencing Memorandum, RE 11, Page ID # 2-3.
Derrick Miller, who served as the city’s chief administrative
officer from
2000 to 2005, received a sentence of one day imprisonment and
three years of
supervised release with the first year of supervised release to
be served in a
Residential Re-entry Center. Mr. Miller pleaded guilty to
violating 18 U.S.C.
666(a), accepting money in exchange for official acts or
influence and violating 26
U.S.C. 7206(1) for making false statements on his income tax
return. In its
sentencing memorandum the government described Mr. Miler’s
conduct as
follows:
Miller served as the city’s chief administrative officer from
2002 to 2005. In this position, he acted as the mayor’s liaison
with other local, state and federal government agencies, and
handled special projects crossing city department lines. From 2006
to 2007, Miller served as the city’s chief information officer. He
left city government in October 2007 to start his own government
consulting firm. In 2011, Miller pleaded guilty to violating Title
18, United States Code, Section 666(a), which prohibits local
public officials from accepting money in exchange for official acts
or influence. Miller admitted that from 2005 to 2007, he accepted
$115,000 in cash kickbacks from a real estate broker in connection
with the lease or sale of city properties. Miller gave half of
these kickbacks to Kilpatrick. At the time of the payments,
Kilpatrick and Miller had authority and influence over the lease
and sale of city properties.
Miller also pleaded guilty to violating Title 26, United States
Code, Section 7206(1), which prohibits taxpayers from making false
statements on their income tax returns. Miller failed to report on
his 2007 tax returns $46,725 of the cash kickbacks he received from
the
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real estate broker. Miller also failed to report a $568,000
consulting fee he received shortly after leaving city government
from a company called Inheritance Capital Group (ICG) in part for
introductions Miller made while a city official to General Motors
executives and city pension trustees in connection with ICG’s
purchase and leaseback of a portfolio of GM properties.
In the relevant conduct portion of his plea agreement, Miller
admitted to engaging in other misconduct while serving in public
office. In 2003 and 2004, while he was the city’s chief
administrative officer, he twice received $10,000 in cash from Karl
Kado, owner of Metro Services Organization (MSO), for Miller’s
assistance to MSO in obtaining and keeping contracts for electrical
and cleaning services at Cobo Civic Center. At Kilpatrick’s
direction, Miller also delivered between $10,000 and $20,000 cash
from Kado to Kilpatrick.
In 20 and 2007, while Miller was the city’s chief information
officer, he authorized public funds to be paid to a company set up
by businessman Andrew Park to install security cameras and
television screens throughout the city to detect and alert the
public about potential threats of harm. Miller steered the money to
a company Park incorporated specifically for the purpose of
receiving those funds called Security Communications Alert Network
(SCAN). Miller later received more than $10,000 from Park in part
because of Miller’s assistance in obtaining the funding. At
Kilpatrick’s direction, Miller obtained an additional $10,000 cash
from Park, which Miller gave to Kilpatrick in a restaurant
bathroom.
Miller failed to monitor SCAN’s work to ensure that the public
funding Miller continued to authorize for SCAN was appropriate and
justified. In late 2006, Miller learned that SCAN had improperly
diverted a portion of the public funds (in actuality a total of
$750,000) to Park’s unrelated Asian Village restaurant development.
In an attempt to alleviate Park’s financial problems and get the
diverted funds back to SCAN, Miller put in a good word for Asian
Village with Kilpatrick’s representatives on the city pension
board, Jeffrey
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Beasley and DeDan Milton, who helped Asian Village secure a
$2.75 million loan from the city’s general retirement system in May
2007.
Miller had discussions with Park and his business partner about
joining their restaurant and security businesses after Miller left
city employment. These proposals did not come to fruition, however,
so Miller ultimately did not personally profit from the public
funding of SCAN, other than the kickbacks he received. But Miller
continued to approve funding to SCAN---despite knowing of its
financial problems and its failure to complete its work---in part
because he had been compromised by his improper financial dealings
with Park. SCAN eventually failed to deliver any security system to
the city, resulting in $4.4 million in losses to the city and the
federal government. Park’s other company, Asian Village, also
defaulted on its loan repayment obligations to the city pension
fund.
Government Sentencing Memorandum, RE 555, Page ID #
16767-16769
The government recommended that Mr. Miller receive a sentence of
40
months. Based on his cooperation, Mr. Miller, however was not
sentenced to
prison and instead was placed in a Residential Re-entry for a
period of one year.
It is beyond debate that Mr. Miller’s corrupt acts were far more
extensive than that
of Mr. Stanton’s.
Carl Kado, who pleaded guilty to tax offenses, but was
admittedly involved
in bribery, was sentenced to 36 months probation. Mr. Kado, who
owned a sundry
store in Cobo Hall, failed to report cash proceeds from the
sales at the store and
used the unreported cash to bribe former Cobo Civic Center
Director E. Louis
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Pavledes and former city administrative director Derek Miller.
In return for these
bribes, Mr. Kado received lucrative contracts at Cobo Hall for
electrical, janitorial,
and food contracts. Government Sentencing Memorandum, RE 11,
Page ID #53.
A sentence of probation or alternatively, a sentence of
probation coupled
with a period of home confinement would certainly not constitute
an unwarranted
sentencing disparity when viewed against the sentences of Mr.
Kilpatrick’s
co-defendants who did not cooperate. Mr. Victor Mercado, the
director of the
Detroit Water and Sewage Department from June of 2002-June of
2008, who
pleaded guilty two months into his trial, received a sentence of
1 day imprisonment
and 3 years of supervised release with the first 8 months of
supervised release to be
served in a Residential Re-entry Center. Admittedly, Mr. Mercado
did not profit
over and above his salary from his illegal acts.3 Nevertheless,
Mr. Mercado played
an instrumental role in furthering the corruption that permeated
the Kilpatrick
administration. In its sentencing memorandum, the government
described his
conduct and motive for participating in the corruption as
follows:
As the director of DWSD, Mercado was responsible for
administering contracts with private companies wanting to do
business with the City
3 Mr. Mercado was, however, the highest paid employee in the
Kilpatrick administration earning $240,000 per year.
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of Detroit. At the direction of Mayor Kwame Kilpatrick, Mercado
took numerous steps to ensure that the mayor’s close friend Bobby
W. Ferguson received substantial portions of contracts or
subcontracts awarded by DWSD. Mercado made sure that Ferguson
received these lucrative contracts by: 1) manipulating the
procurement process to Ferguson’s advantage; 2) disqualifying
Ferguson’s competitors on contracts; 3) directing winning bidders
to include Ferguson on contracts or risk having their contracts
held up; 4) steering contracts to Ferguson or the contractors
Ferguson teamed with; and 5) pressuring contractors and city
employees to pay Ferguson for substandard or improperly documented
work. In short, Mercado served as an indispensable part of
Kilpatrick and Ferguson’s illegal partnership. (Emphasis
added).
Government Sentencing Memorandum, RE 551, Page ID #
16721-16722.
The government’s sentencing memorandum identified six specific
projects
where Mr. Mercado played a critical role in steering tens of
millions of dollars in
work to Bobby Ferguson. According to the government, Mr. Mercado
was
instrumental in Mr. Ferguson receiving $3 million in
reconstruction work
associated with a massive sinkhole on 15 Mile Road in Sterling
Heights.
Moreover, Mr. Ferguson submitted inflated invoices on this
project without
supporting documentation. According to the government, some of
these invoices
were patently fraudulent. Mr. Mercado, however, personally
intervened on
Ferguson’s behalf so that the invoices would be paid. Id at
16725-16727.
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The second project involved Mr. Mercado’s involvement in
cancelling a $10
million contract awarded to Lakeshore Engineering after
Lakeshore declined to
give Mr. Ferguson 25% of the work. Mr. Mercado then awarded the
contract to
another company. Id at 16727-16728.
The third instance involved Mr. Mercado helping to steer a $4.8
million
contract to Mr. Ferguson in connection with a downtown water
main project.
Despite the fact that another company ranked above Mr.
Ferguson’s in the bidding
process, Mr. Mercado in conjunction with Mr. Kilpatrick and Mr.
Ferguson,
awarded the contract to Mr. Ferguson. Mr. Ferguson’s bid for the
same work
was 160% higher. Id at 16728-16732.
The fourth instance involved Mr. Mercado and Mr. Kilpatrick
rigging a
citywide water main project so Mr. Ferguson’s company would be
awarded the
contract. It was Mr. Ferguson’s plan to partner with Lakeshore
Engineering on this
contract. DWSD received seven bids and Lakeshore engineering was
not among
the top two bidders. Mr. Mercado then told one of his
subordinates that he wanted
to find another method to score the bids so that Lakeshore and
Ferguson would get
the contract. Despite the fact that the method that was then
used did not apply to
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this type of a contract, Mr. Mercado instructed his subordinates
to utilize the new
evaluation process. As a result, Lakeshore and Mr. Ferguson’s
company were
awarded the contract. Id at 16732-16736
The fifth instance involved Mr. Mercado, along with Mr.
Kilpatrick and
Mr. Ferguson, pressuring Waldbridge Aldinger Company to pay Mr.
Ferguson’s
companies more than $4.6 million to construct a facility near
the Rouge River.
Although Waldbridge had prepared a bid without Ferguson’s
involvement in the
project. Subsequently, however, signed a handwritten agreement
with Ferguson
promising him that if Waldbridge was awarded the contract, Mr.
Ferguson would
receive $12.73 million of the work. One week after Walbridge
agreed to sign this
side agreement, Mr. Mercado recommended Walbridge for the
contract. Id at
16736-16738.
The final area identified by the government involved Mr.
Mercado
pressuring Walbridge to partner with Mr. Ferguson on the Oakwood
pump station
contract. In an effort to steer city work to Mr. Ferguson, Mr.
Mercado
inappropriately inserted himself in a contract dispute between
Mr. Ferguson and
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Walbridge. This project involved the $140,000,000 million
contract to repair the
Oakwood pump station. Id at 16738-16739.
Finally, Mr. Bernard Kilpatrick, Mayor Kilpatrick’s father, who
did not
cooperate and was convicted of Subscribing a False Tax Return
received a
sentence of 15 months imprisonment followed by one year of
supervised release.
Mr. Stanton’s requested sentence would also not constitute an
unwarranted
sentencing disparity when compared to fraud sentences
nationwide. According to
the United States Sentencing Commission’s 2014 Sourcebook of
Federal
Sentencing Statistics, just under 30% (28.8%) of all defendants
convicted of
bribery offenses received a probationary sentence.4
http://www.ussc.gov/research-and-publications/annual-reports-sourcebooks/2014/s
ourcebook-2014 (Table12), as viewed September 18, 2015.
Moreover, where the government filed a §5K1.1 motion, the
national median
percentage decrease from the guideline minimum for bribery
offenses was 70%
and national median sentence was 6 months where a §5K1.1 motion
was
4 15.4% of the defendants received straight probation and 13.3%
received probation coupled with some type of confinement
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filed.http://www.ussc.gov/research-and-publications/annual-reports-sourcebooks/2
014/sourcebook-2014 (Table 30), as viewed September 18,
2015.
If the Court were to follow the national percentage decrease
where the
government filed a Motion for Downward Departure based on
substantial
assistance, Mr. Stanton’s minimum under the guideline range
would be 7 months,
which would put him in a Zone B which specifically authorizes a
sentence of
probation.
In light of Mr. Stanton’s cooperation, his lack of a prior
criminal record and
the sentences imposed in cases related to City of Detroit Public
Corruption, a
sentence of straight probation, or alternatively a sentence of
probation coupled
with a term of home confinement would certainly not constitute
an unwarranted
sentencing disparity.
CONCLUSION
A review of all the letters leaves no doubt that despite the
conduct that led to
his plea in the case at bar, George Stanton is, at his core, a
decent, caring, and
compassionate human being who deeply cares about his family and
the
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community. His work with his church predates his indictment in
the case at bar,
and reflects a true commitment to others rather than an eleventh
hour attempt to
cast himself in a favorable light prior to sentencing.
His efforts to make amends for his conduct have been sincere and
earnest
and there is no doubt that Mr. Stanton fully understands that
what he did was
wrong. His poor judgment was a product of his desire to strike
out on his own and
his misguided desire to have a financial cushion while he
attempted to develop a
client base. The proposed sentence “is sufficient but not
greater than necessary to
achieve the purposes set forth in 18 U.S.C. § 3553(a).
Respectfully submitted, s/ Mark J. Kriger Attorney for Defendant
Stanton 645 Griswold, Suite 1717 Detroit, MI 48226 313-967-0100
[email protected] Michigan Bar No. 30298
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CERTIFICATE OF SERVICE
I hereby certify that on January 20, 2015, I electronically
filed the foregoing
paper with the Clerk of the Court using the ECF system, which
will send
notification of such filing to all counsel of record.
mailto:[email protected] I also certify that on January
20, 2015, I will
provide a courtesy copy to the chambers of the Hon. George Caram
Steeh and Lara
M. Catrell, United States Probation.
s/ Mark J. Kriger Attorney for Defendant Stanton 645 Griswold,
Suite 1717 Detroit, MI 48226 313-967-0100 [email protected]
Michigan Bar No. 30298
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8554