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UN ITED STATES DISTRICT C OU RT
SO U TH ERN DISTR IC T OF FLO RIDA
C aseN o. 13-20025-C R-LENA RD
UN ITED STATES O F AM ERICA
VS.
FSD G RO UP,LLC,
D efendant.
/
PLEA A GR EEM EN T
TheUnited StatesAttorney'sOfficeforthe Southern DistrictofFlorida(hereinafterthe
ddunited States''ordtgovernmenf')and FSD Group,LLC,(hereinafter thettdefendant''or(TSD
Group'')enterinto the following pleaagreementptlrsuantto Rule 11of theFederalRulesof
Crim inalProcedure.
Guilty Plea
The defendantagreesto plead guilty to the one-countInform ation filed againstit.
Count l of the Inform ation charges the defendant w ith violating Title 18,United States Code,
Section 545, for know ingly receiving, buying, selling, and in any m anner facilitating the
transportation,concealm ent,and sale ofm erchandise afterim portation,know ing the sam e to have
been im ported or brought into the United States contrary to law ,thatis:approxim ately 65,592
kilogramsofHCFC-22withanapproximatefairm arketvalueof$733,096.00,whichthedefendant
knew hadbeen imported andbroughtinto theU nited Statescontrary to theClean A irA ct,Title42,
UnitedStatesCode,Sections7413(c)(1)and7671d,and-fitle40,CodeofFederalRegulations,Part
82.
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The defendantagreesto w aive Indictm entby aGrand Jury and agreesto adm itthat
itisin factguilty ofthefelony offense charged in theInform ation and thattheattached JointFactual
Statem entdated this sam e day isan accurate statem entofitsconduct.
11.
Com orateAuthorization and O rganizationalChanges
The defendantwillprovide to the United Stateswritten evidence in the fonn ofa
notarized resolution ofthe Board ofD irectorsw ith both notary and corporate seals,certifying that
FSD Group is authorized to plead guilty to the felony offense setforth in the Inform ation,and to
enterinto and com ply with allprovisionsofthispleaagreem ent.Theresolution shallfurthercertify
thatitsM anagerisauthorized to takethese actionsand thatal1corporate form alities,including but
notlim ited to,approvalby FSD Group'sBoard ofDirectors,required forsuch authorization,have
been observed.ThedefendantagreesthattheM anagerofthecom pany shallappearon behalfofthe
com pany to enter the guilty plea and forim position ofthe sentence in the United States District
Courtforthe Southern D istrictofFlorida.
B.
In consideration oftheundertaldngsherein,FSD Group expresslyagrees thatitshall
not,through a businesstransaction of any type,including butnotlim ited to,a change ofnam e,
businessreorganization,sale orpurchase ofassets,divestiture ofassets,orany sim ilaraction,seek
to avoid the obligations and conditions set forth in this plea agreem ent. This plea agreem ent,
togetherwithal1oftheobligationsandtermsthereotlshallinuretothebenefitofandbindassignees,
successors-in-interest,ortransfereesofthe defendant.
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111.
Sentencing Guidelinesand Penalties
The defendant is aw are that the sentence will be im posed by the court after
considering theFederalSentencing Guidelinesand Policy Statements(hereinaftertdsentencing
Guidelines'').Thedefendantacknowledgesandunderstandsthatthecourtwillcomputeanadvisory
sentenceundertheSentencing Guidelinesand thattheapplicableguidelineswillbedetenuinedby
thecourtrelyinginpartontheresultsofaPre-sentencelnvestigationbythecourt'sprobation office,
w hich investigation willcom m ence afterthe guilty plea hasbeen éntered. The defendantis also
aw arethat,undercertain circum stances,thecourtm aydepartfrom theadvisorysentencingguideline
range thatithas com puted,and m ay raise or low er thatadvisoly sentence under the Sentencing
Guidelines.Thedefendantisf'
urtherawareandunderstandsthatthecourtisrequired to considerthe
advisory guidelinerange determ ined underthe Sentencing Guidelines,butisnotbound to im pose
that sentence'
, the court is permitted to tailor the ultim ate sentence in light of other statm ory
concerns, and such sentence m ay be either m ore severe or less severe than the Sentencing
Guidelines'advisory sentence. Know ing thesefacts,thedefendantunderstandsand acknowledges
thatthe courthas the authority to im pose any sentence w ithin and up to the statutoly m axim um
authorizedby 1aw fortheoffenses identifiedin Section 1.A andthatthedefendantm aynotw ithdraw
theplea solely asa resultofthe sentence im posed.
B.
The parties ag'ee and understand that the United States Sentencing Guidelines
relatingto thesentencingoforganizations(ChapterEight)applyhere.ThePartiesagreethatthe
statutory m axim um am ountofthe finesto be im posed underthe statute charged in Count1 isthe
greatestof: $500,000,Title 18,United StatesCode,Section 3571(c)(3),ortwicethe gross
pecuniary gain orgrosslossresulting from the offense,pursuantto Title l8,United StatesCode,
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Section3571(d).lnaddition,thedefendantunderstandsandagreesthatitmaybesubjecttoaterm
ofprobation ofnotm ore than tive years with respectto Count 1. Title 18,U nited States Code,
Section3561(c)(1).
Thedefendantfurtherunderstandsandacknow ledgesthat,in additiontoanysentence
imposedtmderthisagreement,aspecialassessmentintheamountof$400 percountofconviction
w illbe im posed on the defendant,payable to the içclerk,United States Court''atthe tim e of
sentencing.Title18,UnitedStatesCode,Section3013(a)(2)(B).
D.
The defendantisawarethatthe sentence hasnotyetbeen determ ined by the court.
Thedefendantalso isaware thatany estim ateofthe probablesentencing rangeorsentence thatthe
defendantm ay receive,is aprediction,nota prom ise,and isnotbinding on the United States,the
probation officeorthe court. Thedefendantf'urtherunderstandsthatany recom m endation thatthe
United States m akes to the courtas to sentencing,w hether pursuant to this plea agreem entor
otherwise,isnotbindingon thecourtandthecourtm aydisregardtherecom m endationinitsentirety.
Thedefendanttm derstandsand acknow ledges,aspreviously acknowledged in Section HI.A .above,
that the defendantm ay not w ithdraw its plea based upon the court's decision notto accept a
sentencing recom m endation m ade by the defendant,theUnited States,ora recom m endation m ade
jointlybyboththedefendantandtheUnitedStates.
The U nited Statesreservesthe rightto inform the courtand the probation oftk e of
allfacts pertinent to the sentencing process,including a1lrelevant inform ation concerning the
offensescom m itted,w hetherchargedornot,asw ellasconcerningthedefendantandthedefendant's
background.Subjectonlytotheexpresstermsofanyagreed-upon sentencingrecommendations
contained in this plea agreem ent, the United States ftzrther resen'es the right to m ake any
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recom m endationsasto thequality and quantity ofpunishm ent.
SentenceRecom m endation
TheUnited Statesandthedefendantagreethat,although notbinding on theprobation office
orthecourt,theywilljointlyrecommendtothecoul'
tthatundertheadvisorySentencingGuidelines
thefollow ing findingsand conclusionsw ould convctlyrepresentthecalculation ofareasonable and
appropriate sentence. Further,neither palty shall adoptnor argue any position w ith respect to
sentencing in thism attercontrary to thefollowing recom m endations:
A.
The parties agree to recom m end thatthe defendantbe placed on organizational
probation fora period ofthree years;
B.
The parties ap ee to recom m end as a special condition of probation that the
defendantw illestablish,im plem ent,and enforcean Environm entalCom plianceand
Training Plan (hereinafterreferred to asthe (IECP'')consistentwith Sentencing
Guidelines Section 8B2.1. The defendant also agrees that it shallnot seek early
term ination ofprobation untilsuch tim easa11obligationsofthispleaagreem entare
satisfied and theECP,furtherdescribed in Section V,hasbeen fullyandsuccessfully
implem ented for a continuous two-year period com m encing at such tim e as the
defendantcertifiesthatthc ECP isfirstfully implem ented;
Thepartiesagree thatpursuantto Title 18,U nited StatesCode,Section 3571,and in
consideration ofthe factors enum erated in Title 18,United States Code,Section
3572,impositionofacriminalfineof$100,000,payabletotheSkclerk,UnitedStates
DistrictCourt,''isappropriatcundertherelevantcircum stancesofthiscase. The
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partiesagreetorequestthatthejudgeorderthefinebepaidaccordingtoareasonable
paym entschedule and to bepaid in fullpriorto the end ofthe tenn ofprobation.
D.
The defendant agrees, as a special condition of probation, to pay the sum of
$16,696.22to theUnited StatesCustom sandBorderProtectiontobepaid infullat
thetim eofsentencing.Thisam ountisin fullaccord and satisfaction ofany custom s
dutiesowed,including interestand penalties,asthe resultof incon-ectly classified
m erchandise im ported into the U nited States between January 9,2007 and the
present.
E.
The defendant agrees to voluntarily forfeit to the United States, the sum of
$180,051.00,whichrepresentsproceedsorproperty constituting,orderived from ,
proceedsthedefendantreceived directly orindirectly asthe resultofthe offense,to
bepayableto tdl-lom eland Security Investigations''in fullatthe tim e ofsentencing.
F.
Thepartiesagreetojointlyrecommendthatthesentencebeimposedaccordingtothe
tennsofthisagreem entwithouttheneed forapre-sentenceInvestigation andReport.
Thedefendanthereby specificallywaivesitsrighttoapre-sentenceInvestigation and
Report,including therightto review such a reportin advance ofsentencing,so that
sentencem ay beim posed im m ediately follow ing defendantentering itsguiltyplea.
Environm entalCom pliance
The parties agzee to recom m end,as a special condition of probation,thatthe defendant
establish,implem ent,and enforcean ECP consistentw ith U .S.S.G .882.1includingbutnotlim ited
to the follow ing:
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A.
W ithin sixty days of sentencing,the defendantwillsubm itits written ECP to the
District CourtJudge assigned to this case,the Probation Office in the Southern
DistrictofFlorida,the United StatesA ttom ey'sO ffice for the Southern Districtof
Florida,theEnvironm entalProtection Agency,Crim inallnvestigation
Division - M iam i Field O ffice, and the D epartm ent of Hom eland Security,
Im m igration & Custom s Enforcem ent,H om eland Security Investigations -M iam i
Field O ffice.
B.
The ECP w ill include provisions ad/ essing com pliance w ith the applicable
environm entaland custom slaw sand regulationsgoverning theim portation,receipt,
handling,transportation,purchase andsaleofozone-depleting substances,including
butnotlim ited to H CFC-22,and addressing the training of em ployees regarding
environmentalandsafetymatters.TheECP shallbesubjecttoapprovalbytheCourt
and the U nited States. In particular,the ECP m ustprovide for the developm ent,
im plem entation,and enforcem entofappropriatem r agem entpractices,includingbut
notlim ited to:
Each em ployeewillreceivetraining on environm entalcom pliance,and FSD
Group will m aintain a record of the type of training provided to each
em ployee and the frequency ofsuch training;
The defendant w ill establish em ployee com pliance with environm ental
policiesand law sasapositive factorin allpersorm elevaluationsand failure
to com ply w ith such policies and law sasanegative factor'
,
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The defendant w ill designate a Vice-president or equivalent supervisory
em ployee responsible forenvironm entalm atters and forim plem cnting and
overseeing theECP;
TheECP shallrem ain underthe supervision ofthe Courtfortheduration of
the term ofprobation. Both parties to this agreem entm ay seek a hearing
before the Courtwithin 90 days ofreceiptofthe w ritten ECP in the event
they areunable to reach agreem enton the contentofthe ECP;
The defendant agrees to assum e al1 reasonable costs associated with the
im plem entation,m aintenance, and Court oversight of the ECP and this
specialcondition ofprobation.
V 1.
AdditionalLiabilitv
TheUnited Statesagreesthatin return forthe defendant'srepresentationsand undertakings
inthisagreem ent,theUnitedStatesw illnotfileadditionalcrim inalchargesagainstitintheSouthern
District of Florida for violations associated w ith im proper com m ercial transactions involving
illegally im ported H CFC-22 in the Southel'
n DistrictofFlorida,disclosed and known to theUnited
States,asofthe dateofthesigning ofthisplea agreem ent.Thisplea agreem entdoesnotprovideor
prom iseanyw aiverofany othercrim inal,civil,oradm inistrative actionsthatm ay apply,including
butnotlim ited to:fines,penalties,claim sfordam agestonaturalresolzrces,suspension,debarm ent,
listing,licensing,injunctiverelief,orremedialaction tocomply with anyapplicableregulatory
requirem ent.
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ExpressW aiverofRightto AppealGuilty Plea and Sentence
ThedefendantisawarethatTitle 18,United StatesCode,Section 3742 affordsthedefendant
the rightto appealthe sentence im posed in this case. A cu ow ledging this,in exchange for the
undertakingsm adebytheunited Statesinthispleaagreem ent,thedefendantherebyw aivesallrights
conferred by Section 3742 to appealany sentence im posed,including any restitution order,orto
appealthe m annerin which the sentencewasim posed,tm lessthe sentence exceedsthe m axim um
perm itted by statute oristhe resultofan upward departure and/or a variance from the guideline
rangethatthecourtestablishesatsentencing.The defendantfurtherunderstandsthatnothing in this
agreem entshallaffecttheUnited States'srightand/orduty to appealassetforth in Title 18,United
StatesCode,Section 3742(19. However,iftheUnited Statesappealsthe defendant'ssentence
pursuantto Section 3742(b),thcdefendantshallbereleased from theabovewaiverofappellate
rights. By signing thisagreem ent,thedsfendantacknowledgesthatithas discussed the appeal
w aiversetforth in this agreem entw ith itsattonzey.The defendantf'urtheragrees,togetherw ith the
United States,to requestthattheD istrictCourtentera specificfinding thatthe defendant'sw aiver
ofitsrightto appealthe sentenceto be im posed in this case w asknowing and voltmtary.
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Bindin: FinalA greem ent
Thisistheentireagreem entandunderstandingbetweentheU nited Statesand thedefendant.
There are no otheragreem ents,prom ises,representations,orunderstandings.
Respectfully subm itted,
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