United States v. Patterson, Case No. 1:19-cr-00230-DAD-BAM-1
| Decision Date | 21 October 2020 |
| Docket Number | Case No. 1:19-cr-00230-DAD-BAM-1 |
| Court | U.S. District Court — Eastern District of California |
| Parties | UNITED STATES OF AMERICA, Plaintiff, v. KENNETH SHANE PATTERSON, Defendant. |
On October 31, 2019, an indictment was filed charging Kenneth Shane Patterson ("Defendant") with six counts of fraud by wire, radio, or television in violation of 18 U.S.C. § 1343; one count of bank fraud in violation of 18 U.S.C. § 1344; one count of attempt to evade or defeat tax in violation of 26 U.S.C. § 7201; and seeking criminal forfeiture under 18 U.S.C. §§ 981(a)(1)(C), 982(a)(2)(A) and 28 U.S.C. § 2461(c). (ECF No. 1.)
Defendant made an initial appearance in custody on November 1, 2019 and pled not guilty. (ECF No. 4.) A detention hearing was held and Defendant was ordered released on his own recognizance into the custody of third party custodian, Emily Baxter. (Id.)
On September 28, 2020, a pretrial release violation petition was filed with an initial appearance on the petition set for October 2, 2020; and Defendant was to reside at the residence of the third party custodian and not be absent more than twenty-four hours without prior approval of the pretrial services officer and travel was restricted to the Eastern District of California unless prior approval was obtained from pretrial services. (ECF No. 6.)
On November 8, 2019, at the stipulation of the parties, the conditions of release were modified and travel was restricted to the State of California unless otherwise approved in advance by the pretrial services officer; and he was not to obtain any new employment where he is engaged in or provided access to private financial or tax information. (ECF No. 10.)
On January 13, 2020, the first status conference was held and Defendant was not present. (ECF No. 13.) Counsel stated that there was a miscommunication and a stipulation was to have been filed to continue the hearing, Defendant's presence was waived for the hearing. (Id.)
Defendant filed a motion to modify his conditions of release and a hearing was held on February 26, 2020. (ECF Nos. 15, 18.) Defendant sought to be allowed to travel to Mexico for surgery and be relieved from the requirement of drug testing. (ECF No. 15.) The motion was denied. (ECF No. 18.)
On March 2, 2020, the Government filed a motion to revoke the order of release contending that Defendant had violated his conditions of release by obtaining and receiving a client's tax and other financial information. (ECF No. 19.) The matter was continued several times at the stipulation of the parties, and a hearing was held on June 22, 2020 before the undersigned. (ECF No. 37.) At the hearing, Defendant admitted to having violated special condition 7(l), which required him not to engage in any business providing access to private financial or tax information. (Id.) Defendant was ordered to be released on the additional condition that he was not to engage in any business that provides access to tax information or personal financial information. (Id.)
On September 28, 2020, a pretrial release violation petition was filed alleging that on September 20, 2020, Defendant was cited by the Pismo Beach Police Department for violations of California Vehicle Code section 20002(a), misdemeanor hit and run. On October 5, 2020, Defendant filed a brief addressing a possible detention order at the initial appearance regarding the alleged violation of pretrial release. (ECF No. 49.) On October 10, 2020 the Governmentfiled a motion to modify conditions of release seeking to revoke Defendant's conditions of release and have him remanded to custody. (ECF No. 59.)
On October 13, 2020, Defendant filed a medical report regarding treatment and both parties filed a notice of request to seal documents. (ECF Nos. 60, 61, 62.) On October 14, 2020, the requests to seal documents were granted in part, and the Government filed a supplemental memorandum in support of the request revoke release and Defendant filed a redacted exhibit. (ECF No. 63, 66-68.) The unredacted and sealed documents relating to the motion to modify conditions of release and revoke release were filed on October 15, 2020. (ECF Nos. 69, 70.)
Defendant made an initial appearance on the supervised release violation and entered a denial on October 16, 2020, and Defendant was ordered to remain out of custody with the following additional conditions: home detention. (ECF No. 74.) On this same date, Defendant filed a supplemental brief. (ECF No. 73.) The Government filed a supplemental brief and a notice of request to seal an exhibit on October 19, 2020. (ECF Nos. 75, 76.) The Government's request to seal was granted. (ECF No. 78.)
A contested hearing on the pretrial release petition was held on October 21, 2020. Counsel Vincente Tennereilli and Alex Dempsey appeared by video for the Government, and counsel Kevin Rooney appeared by video with the Defendant. Pretrial Services Officer Jessica McConville testified during the evidentiary hearing. The government's exhibits 1, 2, 3, 4, 5, 6, 7, 8, 9, 12, and 13 and Defendant's exhibits A, B, C, D, E, F, G, H, I, J, K, and L were admitted into evidence.
1. On October 31, 2019, an indictment was filed charging Defendant with six counts of fraud by wire, radio, or television in violation of 18 U.S.C. § 1343; one count of bank fraud in violation of 18 U.S.C. § 1344; one count of attempt to evade or defeat tax in violation of 26 U.S.C. § 7201; and seeking criminal forfeiture under 18 U.S.C. §§ 981(a)(1)(C), 982(a)(2)(A) and 28 U.S.C. § 2461(c). (ECF No. 1.)
2. Defendant made an initial appearance on November 1, 2019, and entered a notguilty plea. A detention hearing was held and Defendant was released on the following conditions: (1) must not violate federal, state, or local law while on release; (2) cooperate in the collection of a DNA sample; (3) advise the court or pretrial services in writing before making any change of address or phone number; and (4) appear in court as required. (ECF Nos. 4, 6.) The following additional conditions were imposed: (6) reside with third party custodian Emily Baxter; and (7) (a) report on a regular basis to Pretrial Services and comply with their rules and regulations; (b) report in person to the Pretrial Services Agency on the first working day following release from custody; (c) reside at a location approved by the PSO, and not move or be absent from this residence for more than 24 hrs. without prior approval of PSO with travel restricted to Eastern District of California, unless otherwise approved in advance by PSO; (d) cooperate in the collection of a DNA sample; (e) report any contact with law enforcement to his PSO within 24 hours; (f) not possess, have in his residence, or have access to a firearm/ammunition, destructive device, or other dangerous weapon; (g) submit to drug and/or alcohol testing as approved by the PSO; (h) refrain from excessive use of alcohol, or any use of a narcotic drug or other controlled substance without a prescription by a licensed medical practitioner; (i) not apply for or obtain a passport or any other traveling documents during the pendency of this case; (j) not solicit any person for investments; (k) not open any bank account, in his name or the name of any business, without approval of Pretrial Services; (l) not engage in any business providing access to private financial or tax information; (m) not open any bank account, in his name or the name of any business, without approval of Pretrial Services; (o) not make any fraudulent transfer of property; and (p) have no communication with Helen Quan, Geoff Steinbach, Jay Steinbach, Abdulafed Ali, Josemar Mercado, and Marlene Robertson. (ECF No. 6.)
3. On November 8, 2019, Defendant's conditions of release were modified as follows: (c) travel was restricted to the State of California; and (l) Defendant was not to obtain any new employment where he was engaging in or provided access to private financial or tax information and he was to refer all clients and customers to Matt Peterson without obtaining those customers' financial or tax information. (ECF No. 10.)
4. On January 24, 2020, Defendant made arrangements to have a surgery in Mexico and purchased a one way ticket to fly to San Diego on March 3, 2020. (Def. Exh. K.)
5. On February 24, 2020, Defendant filed a motion to modify the conditions of his pretrial release because he had scheduled a surgery in Mexico and had purchased an airline ticket. (ECF No. 15.)
6. On February 26, 2020, Magistrate Judge Grosjean held a hearing and denied Defendant's motion to modify conditions of release. (ECF No. 18.) Judge Grosjean found that Defendant was not taking his conditions of release seriously. (Transcript of Mot. to Modify Release Conditions, 13:19-14:8, ECF No. 54.)
7. On June 22, 2020, Defendant admitted to violating his conditions of release by obtaining private financial information for a client. (ECF No. 37.) Defendant's conditions of release were modified as follows: (7) Defendant "(a) may not engage in ANY business that provides access to tax information or personal financial information[.]" (Id. at 2.)
8. On September 16, 2020, Kenneth Atkins, a friend of Defendant's, was killed in an automobile accident.
9. On September 19, 2020, after drinking a couple beers, Defendant drove with his friend to get some ice. (Interview Body Cam, 16:00-16:10, Gov. Exh. 7.)
10. At approximately 11:58 p.m., Defendant was driving and lost control of his vehicle colliding with a parked vehicle causing severe damage to the vehicle he was driving, severe damage to the front and rear end of the parked vehicle, and minor...
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