oberlton plea agreement

8/13/2019 Oberlton Plea Agreement

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GUILTY PLEA and PLEA AGREEMENTUnited States AttorneyNorthern District of Georgia

UNITED STATES DISTRICT COURTNORTHERN DISTRICT OF GEORGIA

ATLANTA DIVISIONCRIMINAL NO. 1:13-CR-221

The United States Attorney for the Northern District of Georgia (litheGovernment") and Defendant Jerome OberIton, enter into this plea agreement asset forth below in Part pursuant to Rule 11{c {1 {C of the Federal Rules ofCriminal Procedure. Jerome OberIton, Defendant, having received a copy of theabove-numbered Indictment and having been arraigned, hereby pleads GUILTYto Count 1.

I DMISSION OF GUILT1. The Defendant admits that he is pleading guilty because he is in fact guilty

of the crimes charged in Count 1.II. CKNOWLEDGMENT WAIVER OF RIGHTS

2. The Defendant understands that by pleading guilty, he is giving up theright to pleadnot guilty and the right to be tried by a jury. t a trial, theDefendant would have the right to an attorney, and i the Defendant could notafford an attorney, the Court would appoint one to represent the Defendant attrial and at every stage of the proceedings. During the trial, the Defendantwould be presumed innocent and the Government would have the burden ofproving him guilty beyond a reasonable doubt. The Defendant would have the

Case 1:13-cr-00221-TWT-JFK Document 69-1 Filed 01/08/14 Page 1 of 23


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right to confront and cross-examine the witnesses against him. f the Defendantwished, he could testify on his own behalf and present evidence in his defense,and he could subpoena witnesses to testify on his behalf. If, however, theDefendant did not wish to testify, that fact could not be used against him, andthe Government could not compel him to incriminate himself. f the Defendantwere found guilty after a trial, he would have the right to appeal the conviction.

3 The Defendant understands that by pleading guilty, he is giving up all ofthese rights and there will not be a trial of any kind.

4 By pleading guilty, Defendant also gives up any and all rights to pursueany affirmative defenses, Fourth mendment or Fifth Amendment claims, andother pretrial motions that have been filed or could have been filed.

5 The Defendant also understands that he ordinarily would have the right toappeal his sentence and, under some circumstances, to attack the conviction andsentence in post-conviction proceedings. By entering this Plea Agreement, theDefendant may be waiving some or all of those rights to appeal and tocollaterally attack his conviction and sentence, as specified below.

6 Finally, the Defendant understands that, to plead guilty, he may have toanswer, under oath, questions posed to him by the Court concerning the rightsthat he is giving up and the facts of this case, and the Defendant s answers, ifuntruthful, may later be used against him in a prosecution for perjury or falsestatements.

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III CKNOWLEDGMENT OF PENALTIES7. TheDefendantunderstandsthat,basedon hispleaofguilty,he willbe

subjecttothefollowingmaximum and mandatoryminimumpenalties:Asto ount1

a. Maximumtermofimprisonment:5years.b. Mandatoryminimum termofimprisonment:None.c. Termofsupervisedrelease:0to3years.d. Maximumfine:$250,000,due and payableimmediately.e. Fullrestitution,due and payableimmediately,toallvictimsofthe

offenseand relevantconduct.f. Mandatoryspecialassessment: $100,due and payableimmediately.g. Forfeitureofany and allproceedsfromthecommissionofthe

offense,anyand allpropertyused or intendedtobeused tofacilitatetheoffense,and anypropertyinvolvedintheoffense.

8. TheDefendantunderstandsthat,beforeimposingsentence in thiscase,the ourtwillberequiredtoconsider,amongotherfactors,theprovisionsoftheUnitedStatesSentencingGuidelinesand that,under certaincircumstances,the ourthas thediscretiontodepartfromthoseGuidelines.TheDefendantfurtherunderstandsthattheCourtmay imposeasentenceup toand includingthestatuorymaximum assetforthin thisparagraph and that noonecanpredicthisexactsentenceat thistime.

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IV PLEA GREEMENT9 The Defendant, his counsel, and the Government, subject to approval by

the Court, have agreed upon a negotiated plea in this case, the terms of which areas follows:

Binding Sentencing Recommendation to the Court10. This plea s entered under the specific provisions of Rule 11 c) 1) C) of the

. Federal Rules of Criminal Procedure Fed. R Cr. P.). As a product ofnegotiations between the parties and in exchange for the Government dismissingotherwise provable counts against the Defendant, the Defendant and theGovernment expressly recommend that the Court impose a sentence of 41months of imprisonment as the appropriate custodial sentence in this case.Under the provisions of Fed. R Cr. P 11 c) 1) C),this recommendationwouldbind the ourt to impose this particular custodial sentence if the ourt acceptsthis plea agreement. . The Defendant understands and acknowledges that the

ourt is not obligated to accept a binding plea in this case.Dismissal of Counts

11. The Government agrees that, upon the entry of the Judgment andCommitment Order, any and all remaining counts in the above-styled case stillpending against Defendant shall be dismissed pursuant to Standing Order No.07-04 of this ourt and to Rule 48 a) of the Federal Rules of Criminal Procedure.The Defendant understands that the Probation Office and the Court may stillconsider the conduct underlying such dismissed counts in determining relevant

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conduct under the Sentencing Guidelines and a reasonable sentence under Title18, United States Code, Section 3553(a).

Factual asis12. The parties agree that if this case went to trial, the Government would

prove by admissible evidence and beyond reasonable doubt the following facts:The Atlanta Public Schools (APS) is a public school district in the City of

Atlanta, located in the Northern District of Georgia, with over 50,000 studentsenrolled in approximately 100 different schools and an operating budget ofapproximately $574 million. APS regularly purchases technology relatedequipment and services from vendors for the benefit of its member schools. APSreceives, and did receive at all times relevant to this case, at least $10,000 inassistance from the United States government in loans, grants and other forms ofassistance.

The Defendant was APS' Chief Information Officer (CIO) from approximately2004 through August 2007 and had overall management responsibility for APS'information technology program. The Defendant supervised a staff ofemployees and contractors in his capacity as CIO. n January, 2007, theDefendant issued or caused to be issued a request for proposal RFP) for a datawarehousing (DW) project at APS. The DW project was intended to centralizethe school system s computer information so that it could be accessed easily byAPS employees .

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At the start of the DW project in January 2007, the Defendant influenced therequest for RFP process and, ultim.ately, caused the vendor who provided DWservices to APS to be selected in exchange for kickbacks from the vendor to theDefendant. Specifically, the Defendant and Mahendra Patel, in concert withunindicted co-conspirators A and B and their company, Company A, devised ascheme whereby Company A bid on the APS DW project using inflated hourlycosts for contractors working on the project. The Defendant, in his role as CIa,ensured that Company A was awarded the project by APS.

Once the project was awarded to Company A and it started to receive fundsfrom APS, the Defendant and Patel were paid a percentage of the DW project byCompany A in a side deal. Kickback payments from Company A to theDefendant were funneled through one of two corporations he controlled, GlobalTechnology Partners (GTP) and Global Technology Services (GTS), without APS'knowledge or consent.

t was part of the conspiracy that co-conspirators A and B and Company A,did corruptly give checks totaling approximately $60,000 to the Defendant andPatel. The Defendant understood these payments to be kickbacks paid inexchange for the award of the DW project. t was further part of the conspiracythat the Defendant and Patel corruptly conspired to accept and did accept checkstotaling approximately $60,000 from co-conspirators A and B and Company A

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The Defendant and Patel understood that these payments were kickbacksintended to influence the award of the DW project.

t was further part of the conspiracy that the Defendant and Patel didcorruptly provide influence, assistance and favorable treatment to coconspirators A and B and Company A, in conjunction with awarding the APSDW project and other APS work to Company A, in exchange for the bribes paidby co-conspirators A and B and Company A

t was further part of the conspiracy that the Defendant concealed from APShis ownership of GTP and GTS as well as his and Patel's acceptance of paymentsfrom co-conspirators A and B whose company Company A, conducted businesswith APS and was awarded over $750,000 in APS project work GTP and GTSwere wholly owned and controlled by the Defendant.

t was further part of the conspiracy that the Defendant, Patel, co-conspiratorsA and B and Company A, used themails.private carriers and wires in interstatecommerce to transfer funds and to communicate, including via the telephoneand the Internet, and caused funds to be transmitted by means of mail, privatecarrier and wire in interstate commerce.

n furtherance of the conspiracy, and in order to effect the purposes andobjects thereof, the Defendant, Patel, co-conspirators A and B and Company Aengaged in the following actions:

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a. On or about April 17, 2006, the Defendant and Patel traveled to Detroit,Michigan to meet with co-conspirators A and B.b. On or about January 20 2007 Oberlton issued or caused to be issued anRFP for DW services. Company A responded to the RFP, seeking theaward of the DW project with APS.c. Prior to the award of the DW project, Patel contacted co-conspirators Aand B and ompany A to inform them that they would need to paykickbacks to the Defendant and Patel in order to get the APS DW project.d. On or about January 28 2007, ompany A signed a consultingagreement with the Defendant's company, GTP, agreeing to pay GTP$390,000 in exchange for DW services. No consulting services were everprovided by GTP in relation to the DW project.e. n or about January 30, 2007, the Defendant sent a letter on APSletterhead to co-conspirators A and B at ompany A notifying them that

ompany A had been awarded the DW project.f. n or about February 14, 2007, Patel and ompany A entered into asales representative agreement whereby ompany A agreed to pay a 3.9percent commission to Patel based on revenue generated by the DWproject.g. n or about April 26 2007, the Defendant's company, GTS, andCompany A entered into a partnership agreement whereby the parties

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agreed to give the Defendant 30 percent of the profits from the APS-DWscheme.h. n or about July 20 2007, the Defendant resigned his position as APS'CIa His last day at APS was on or about August 22,2007.i On or about August 24 2007, GTS sent a $24,000 invoice for consultingservices to Company A for the DW project, which was subsequently paidby Company A. The Defendant had not provided any such consultingservices. The invoice was merely a cover for the kickbacks the Defendantexpected from the APS-DW project.j On or about September 16, 2007, Company A completed the DW projectat APS. Between March 2007 and December 2007, APS paid Computech$735,130 for DW and other IT work.k On or about September 28,2007, the Defendant sent a second invoice toCompany A for $55,000. Company A subsequently paid $9,000 to GTS onor about November 1, 2007. The Defendant had not provided any servicesunderlying this invoice. ,The invoice was merely a cover for the kickbacksthe Defendant expected from the APS-DW project.L n or about November 2 2007, the Defendant wrote a letter toCompany A complaining he had not been properly compensated.

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m. On or about March 7,2008, Company A issued a check to GIS for$21,660.24for the DW project pursuant to the third and final invoice fromGIS.n. On or about March 14, 2008, Company A paid the final salescommission to Patel for the DW project.o On or about April 7, 2008, Company A sent by Federal Express the final$21,660.24payment to the Defendant's company, GIS. Ihis payment wasintended as the final kickback payment on the APS-DW project.p. On or about April 10, 2008, the Defendant sent an email to coconspirators A and B at Company A telling them that the final paymenthad been received.q. On or about April 16, 2008, the $21,660.24check was deposited andposted to Company A's account after the Defendant deposited the checkinto the GIS bank account.

Sentencing uidelines Recommendations13 Based upon the evidence currently known to the Government, the

Government agrees to make the following recommendations and or to enter intothe following stipulations.

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Base Adjusted Offense Level14. The Government agrees to recommend and the Defendant agrees that:

(a) The applicable offense guideline is Section 2Cl.l.b) Under Section 2Cl.l a), the Base Offense Level is 14.c) Under Section 2Cl.l(b)(2), the Defendant will receive a six-level

enhancement to his offense level for a benefit to him as a public officialexceeding $30,000, but less than $70,000.(d) Under Section 2C.l.l(b)(3), the Defendant will receive a four-levelenhancement to his offense level for being a public official in a highlevel decision-making or sensitive position.

Acceptance o Responsibility15. The Government will recommend that the Defendant receive the two-level

adjus tment for acceptance of responsibility pursuant to Section 3El;1 of theSentencing Guidelines. However, the Government will not be required torecommend acceptance of responsibility if after entering this Plea Agreement,the Defendant engages in conduct inconsistent with accepting responsibility.Thus, by way of example only, shouldthe Defendant falsely deny or falselyattempt to minimize Defendant 's involvement in relevant offense conduct, give

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conflicting statements about Defendant's involvement, fail to pay the specialassessment, fail to meet any of the obligations set forth in the FinancialCooperation Provisions set forth below, or participate in additional criminalconduct, including unlawful personal use of a controlled substance, theGovernment will not be required to recommend acceptance of responsibility.

Right to Answer Questions Correct Misstatements,and Make Recommendations

16. The Government reserves the right to inform the Court and the ProbationOffice of all facts and circumstances regarding the Defendant and this case, andto respond to any questions from the Court and the Probation Office and to anymisstatements of fact or law. Except as expressly stated elsewhere in this PleaAgreement, the Government also reserves the right to make recommendationsregarding application of the Sentencing Guidelines.

Right to Modify Recommendations17. With regard to the Government's recommendation as to any specific

application of the Sentencing Guidelines as set forth elsewhere in this PleaAgreement, the Defendant understands and agrees that, should the Governmentobtain or receive additional evidence concerning the facts underlying any suchrecommendation, the Government will bring that evidence to the attention of theCourt and the Probation Office.

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ooperationGeneral Requirements

18. The Defendant agrees to cooperate truthfully nd completely with theGovernment, including being debriefed nd providing truthful testimony t nyproceeding resulting from or related to Defendant s cooperation. Defendantagrees to so cooperate in ny investigation or proceeding as requested by theGovernment. Defendant agrees th t Defendant s cooperation shall include, butnot be limited to:

a. producing all records, whether written, recorded, electronic, ormachine readable, in his actual or constructive possession, custody,or control, of evidentiary value or requested by attorneys nd agentsof the Government;

b. m king himself available for interviews, not t the expense of theGovernment i he is on bond, upon the request of attorneys ndagents of the Government;

c. responding fully nd truthfully to all inquiries of the Government inconnection with ny investigation or proceeding, without falselyimplicating ny person or intentionally withholding nyinformation, subject to the penalties of making false statements (18U.S.C. 1001), obstruction of justice (i8 U.s.C. 1503) nd relatedoffenses;

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d. when calledupon todosoby theGovernmentin connectionwithany investigationorproceeding,testifyingin grand jury,trial,andotherjudicialproceedings,fully,truthfully,and under oath,subjecttothepenaltiesofperjury18 U.s.C.1621),makingfalsestatementsor declarationsingrand juryorcourt proceedings18 U.s.C.1623),contempt18 U.s.C.401 402),obstructionofjustice18 U.S.C.1503),and relatedoffenses.

TheDefendantunderstandsthat theGovernmentalonewilldeterminewhatformsofcooperationtorequestfromtheDefendant,and theDefendantagreesthat Defendantwillnot engagein any investigationthat isnot specificallyauthorizedby theGovernment.Conditional Section5K/Rule35Motion

19.TheGovernmentagreestomake theextentofthe Defendant'scooperationknown tothesentencingcourt. n addition,ifthecooperationiscompletedbeforesentencingand theGovernmentdeterminesthat suchcooperationqualifiesasIIsubstantialassistancell pursuant toTitle18,UnitedStatesCode,Section3553(e)and/orSection5Kl.l ofthe SentencingGuidelines,theGovernmentwillfileamotionat sentencingrecommendingadownwarddeparturefromtheapplicableguidelinerange. f thecooperationiscompletedaftersentencingand theGovernmentdeterminesthat suchcooperationqualifiesas"substantialassistance"pursuant toRule35(b)ofthe FederalRulesofCriminalProcedure,theGovernmentwillfileamotionforreductionofsentence.

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In either casef the Defendant understands that the determination as to whetherDefendant has provided n substantial assistance rests solely with theGovernment. Good faith efforts by the Defendant that do not substantially assistin the investigation or prosecution of another person who has committed a crimewill not result in either a motion for downward departure or a Rule 35 motion.The Defendant also understands that, should the Government decide to file amotion pursuant to this paragraphf the Government may recommend anyspecific sentencef and the final decision as to what credit, i f anYf the Defendantshould receive for Defendant's cooperation will be determined by the Court. fthe Defendant fails to cooperate truthfully and completely, or if the Defendantengages in additional criminal conduct or other conduct inconsistent withcooperationf Defendant will not be entitled to any consideration whatsoeverpursuant to this paragraph.

ommunity Service20 The Defendant and the Government expressly recommend that the ourt

impose an obligation that the Defendant complete 1,000 hours of communityservice during his term of supervised release.

Restitution21 The Defendant agrees to pay $735,130 as restitution to the Clerk of ourt

for distribution to the following victims of the offense to which he is pleading

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guilty and all relevant conduct, including, but not limited to, any countsdismissed as a result of this Plea Agreement:

Atlanta Public Schools 735,130

Financial Cooperation ProvisionsSpecial Assessment

22. The Defendant understands that the Court will order him to pay a specialassessment in the amount of 100.FinefRestitution - Terms of Payment

23. The Defendant agrees to pay any fine and or restitution imposed by theCourt to the Clerk of Court for eventual disbursement to the appropriate accountand or victim(s). The Defendant also agrees that the full fine and or restitutionamount shall be considered due and payable immediately. f the Defendantcannot pay the full amount immediately and is placed in custody or under thesupervision of the Probation Office at any time, he agrees that the custodialagency and the Probation Office will have the authority to establish paymentschedules to ensure payment of the fine and or restitution. The Defendantunderstands that this payment schedule represents a minimum obligation andthat, should Defendant's financial situation establish that he is able to pay moretoward the fine and or restitution, the Government is entitled to pursue othersources of recovery of the fine and or restitution. The Defendant further agrees

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to cooperate fully in efforts to collect the fine and or restitution obligation byany legal means the Government deems appropriate. Finally, the Defendant andhis counsel agree that the Government may contact the Defendant regarding thecollection of any fine and or restitution without notifying and outside thepresence of his counsel.inancial Disclosure

24. The Defendantagrees that Defendant will not sell, hide, waste, encumber, .destroy, or otherwise devalue any such asset worth more than 1,000 beforesentencing, without the prior approval of the Government. The Defendantunderstands and agrees that Defendant's failure to comply with this provision ofthe Plea Agreement should result in Defendant receiving no credit for acceptanceof responsibility.

25. The Defendant agrees to cooperate fully in the investigation of the amountof restitution and fine; the identification of funds and assets in which he has anylegal or equitable interest to be applied toward restitution and or fine; and theprompt payment of restitution or a fine.

26. The Defendant's cooperation obligations include: A) fully and truthfullycompleting the Department of Justice's Financial Statement of Debtor form, andany addenda to said form deemed necessary by the Government, within ten daysof the change of plea hearing; B) submitt ing to a financial deposition orinterview (should the Government deem it necessary) prior to sentencing

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regarding the subject matter of said form; (C) providing any documentationwithin his possession or control requested by the Government regarding hisfinancial condition and that of his household; and (D) fully and truthfullyanswering all questions regarding his past and present financial condition andthat of his household in such interview(s); and (E) providing a waiver of hisprivacy protections to permit the Government to access his credit report and taxinformation held by the Internal Revenue Service.

27. So long as the Defendant is completely truthful, the Government agreesthat anything related by the Defendant during his financial interview ordeposition or in the financial forms described above cannot and will not be usedagainst him in the Government s criminal prosecution. However, theGovernment may use the Defendant1s statements toidentify and to execute uponassets to be applied to the fine andj or restitution in this case. Further, theGovernment is completely free to pursue any and all investigative leads derivedin any way from the interview(s)j deposition(s)jfinancial forms, which couldresult in the acquisition of evidence admissible against the Defendant insubsequent proceedings. the Defendant subsequently takes a position in anylegal proceeding that is inconsistent with theinterview s)jdeposition(s)jfinancial forms whether in pleadings, oral argument,witness testimony, documentary evidence, questioning of witnesses, or any othermanner the Government may use the Defendant s

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interview(s)j deposition(s)jfinancial forms, and all evidence obtained directly orindirectly therefrom, in any responsive pleading and argument and for crossexamination, impeachment, or rebuttal evidence. Further, the Government mayalso use the Defendant s interview(s) deposition(s) financial forms to respondto arguments made or issues raised sua sponte by the Magistrate or DistrictCourt.

Limited Waiver of Appeal28. LIMITED WAIVER OF APPEAL: To the maximum extent permitted by

federal law, the Defendant voluntarily and expressly waives the right to appealhis conviction and sentence and the right to collaterally attack his conviction andsentence in any post-conviction proceeding (including, but not limited to,motions filed pursuant to 28 U.S.C. 2255) on any ground except that theDefendant may file a direct appeal of an upward departure or variance above thesentencing guideline range as calculated by the district court. The Defendantunderstands that this Plea Agreement does not limit the Government s right toappeal, but i the Government initiates a direct appeal of the sentence imposed,the Defendant may file a cross-appeal of that same sentence.

Miscellaneous WaiversFOIAjPrivacy Act Waiver

29. The Defendant hereby waives all rights, whether asserted directly or by arepresentative, to request or receive from any department or agency of the

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United States any records pertaining to the investigation or prosecution of thiscase, including, without limitation, any records that may be sought under theFreedom of Information Act, Title 5, United States Code, Section 552, or thePrivacy Act of 1974, Title 5, United States Code, Section 552a.

o ther greements30. There are no other agreements, promises, representations, or

understandings between the Defendant and the Government.

n Open Court this 8t day of January, 2014.

SIGNATURE Attorney forDefendant)Nicole Kaplan Jerome Oberlton

Attorneys)Kurt E . e, Jill E Steinberg

idal)Gentry Shelnutt

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I have read the Indictment against me and have discussed it with myattorney. I understand the charges and the elements of each charge that theGovernment would have to prove to convict me at a trial. I have read the

. foregoing Plea Agreement and have carefully reviewed every part of t with myattorney. I understand the terms and conditions contained in the PleaAgreement, and I voluntarily agree to them. I also have discussed with myattorney the rights I may have to appeal or challenge my conviction andsentence, and I understand that the appeal waiver contained in the PleaAgreement will prevent me, with the narrow exceptions stated, from appealingy conviction and sentence or challenging my conviction and sentence in any

post-conviction proceeding. No one has threatened or forced me to plead guilty,and no promises or inducements have been made to me other than thosediscussed in the Plea Agreement. The discussions between my attorney and theGovernment toward reaching a negotiated plea in this case took place with mypermission. I am fully satisfied with the representation provided to me by myattorney in this case.

SIG TURE (Defendant) DATEJerome Oberl ton

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I am Jerome Oberlton's lawyer. I have carefully reviewed the charges and thePlea Agreement with my client. To my knowledge, my client is making aninformed and voluntary decision to plead guilty and to enter into the PleaAgreement.aA -SIGNATURE (Defense Attorney) DATENicole Kaplan

Filed inOpen CourtThis th day of January, 2 14 FILED IN OPEN COURTBy ________~ [ ~ r s ~ [ ~ C ~ ~ [ ~ a ~ l I a - - - -

J N 8 2 14JAMES N. HATTEN Clerk~ f o . v f 0 , p t y Ct rI< .

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U.S DEPARTMENTOF JUSTICEStatement ofSpecialAssessment Account

Thisstatement reflectsyour specialassessment only.There may be otherpenalties imposed at sentencing.

ACCOUNT INFORMATIONCRIMINALACTION NO.: 1:13-CR-221DEFENDANT'S NAME: JEROMEOBERLTONPAYTHIS AMOUNT: $100Instructions:

1. Payment must be made by certified check r money order payable to:Clerk of court, U.S.DistrictCourt

personal checks will not be accepted2. Payment must reach the clerk'sofficewithin 30days of the entry ofyourguiltyplea3. Payment should be sent or hand delivered to:

Clerk,U.s.DistrictCourt2211U.s.Courthouse75Spring Street,S.W.Atlanta,Georgia 30303(DoNot Send Cash)

4. Include defendant's name on certified check r mon y order.5. Enclosethis coupon to insure proper and prompt application of payment.6. Provide proof of payment to the above-signed AUSAwithin 30days oftheguiltyplea.

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oberlton plea agreement

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