paul dunham plea deal

8/10/2019 Paul Dunham plea deal

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U.S. Department of Justice

United States Attorney

District of Maryland

Southern Division

David I. Salem Mailing Address: Office Location: DIRECT: 301-344-4237

Assistant United States Attorney 6500 Cherrywood Lane, Suite 200 6406 Ivy Lane, 8thFloor MAIN: 301-344-4433

[email protected] Greenbelt, MD 20770-1249 Greenbelt, MD 20770-1249 FAX: 301-344-4516

December 5, 2014

Gary E. Proctor, Esq.Law Offices of Gary E. Proctor LLCEight E. Mulberry StreetBaltimore, Md. 21202

Re: United States v. Paul Dunham, et al.,Criminal No. PWG-11-0661

Dear Mr. Proctor:

This letter, together with the Sealed Supplement, confirms the plea agreement which hasbeen offered to the Defendant by the United States Attorneys Office for the District of Maryland(this Office). If the Defendant accepts this offer, please have him execute it in the spacesprovided below. This plea agreement is expressly conditioned on co-defendant SandraDunham executing the written plea agreement extended to her by this Office no later than

5:00 p.m. on December 5, 2014, and thereafter promptly entering her guilty plea with the

Court. If this offer has not been accepted by 5:00 p.m. on December 5, 2014, it will be deemedwithdrawn. The terms of the agreement are as follows:

Offenses of Conviction

1. The Defendant agrees to plead guilty to Counts One and Ten of the Indictmentnow pending against him, which charge him in Count One with Conspiracy to Commit WireFraud, in violation of 18 U.S.C. 1349, and in Count Ten with Money Laundering, in violationof 18 U.S.C. 1956(a)(2)(A). The Defendant admits that he is, in fact, guilty of those offensesand will so advise the Court.

Elements of the Offenses

2. The elements of the offenses to which the Defendant has agreed to plead guilty,and which this Office would prove if the case went to trial, are as follows:

a. Conspiracy to Commit Wire Fraud: (1) two or more personsentered into the unlawful agreement charged in the Indictment; and (2) the Defendant knowinglyand willfully became a member of the conspiracy.


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b. Money Laundering: (1) the defendant transported (or attempted totransport) a monetary instrument or funds to a place in the United States from or through a placeoutside the United States; and, (2) the Defendant did so with the intent to promote the carryingon of specified unlawful activity, in this case, wire fraud, in violation of 18 U.S.C. 1343.

Penalties

3. The maximum sentence provided by statute for the offenses to which theDefendant is pleading guilty is as follows:

a. Count One (Conspiracy to Commit Wire Fraud): 20 yearsincarceration, followed by a term of supervised release not to exceed three years, and a fine of$250,000 or twice the gross gain or loss, pursuant to 18 U.S.C. 3571(d).

b. Count Ten (Money Laundering):20 years incarceration, followedby a term of supervised release of not more than three years, and a fine of $500,000, or twice the

value of the monetary instrument or funds, pursuant to 18 U.S.C. 3571(d).

In addition, the Defendant must pay $200 as a special assessment pursuant to 18 U.S.C. 3013, which will be due and should be paid at or before the time of sentencing. If a fine orrestitution is imposed, it shallbe payable immediately, unless, pursuant to 18 U.S.C. 3572(d),the Court orders otherwise.1 The Defendant understands that if he serves a term ofimprisonment, is released on supervised release, and then violates the conditions of hissupervised release, his supervised release could be revoked - even on the last day of the term -and the Defendant could be returned to custody to serve another period of incarceration and anew term of supervised release.

4. The Defendant understands that the Bureau of Prisons has sole discretion indesignating the institution at which the Defendant will serve any term of imprisonment imposed.

Waiver of Rights

5. The Defendant understands that by entering into this agreement, he surrenderscertain rights as outlined below:

a. If the Defendant had persisted in his plea of not guilty, he would have hadthe right to a speedy jury trial with the close assistance of competent counsel. That trial could beconducted by a judge, without a jury, if the Defendant, this Office, and the Court all agreed.

b. If the Defendant elected a jury trial, the jury would be composed of twelveindividuals selected from the community. Counsel and the Defendant would have theopportunity to challenge prospective jurors who demonstrated bias or who were otherwiseunqualified, and would have the opportunity to strike a certain number of jurors peremptorily.

1 Pursuant to 18 U.S.C. 3612, if the Court imposes a fine in excess of $2,500 that remainsunpaid 15 days after it is imposed, the Defendant shall be charged interest on that fine, unless theCourt modifies the interest payment in accordance with 18 U.S.C. 3612(f)(3).


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All twelve jurors would have to agree unanimously before the Defendant could be found guiltyof any count. The jury would be instructed that the Defendant was presumed to be innocent, andthat presumption could be overcome only by proof beyond a reasonable doubt.

c. If the Defendant went to trial, the government would have the burden of

proving the Defendant guilty beyond a reasonable doubt. The Defendant would have the right toconfront and cross-examine the governments witnesses. The Defendant would not have topresent any defense witnesses or evidence whatsoever. If the Defendant wanted to call witnessesin his defense, however, he would have the subpoena power of the Court to compel the witnessesto attend.

d. The Defendant would have the right to testify in his own defense if he sochose, and he would have the right to refuse to testify. If he chose not to testify, the Court couldinstruct the jury that they could not draw any adverse inference from his decision not to testify.

e. If the Defendant were found guilty after a trial, he would have the right to

appeal the verdict and the Courts pretrial and trial decisions on the admissibility of evidence tosee if any errors were committed which would require a new trial or dismissal of the chargesagainst him. By pleading guilty, the Defendant knowingly gives up the right to appeal theverdict and the Courts decisions.

f. By pleading guilty, the Defendant will be giving up all of these rights,except the right, under the limited circumstances set forth in the Waiver of Appeal paragraphbelow, to appeal the sentence. By pleading guilty, the Defendant understands that he may haveto answer the Courts questions both about the rights he is giving up and about the facts of hiscase. Any statements the Defendant makes during such a hearing would not be admissibleagainst him during a trial except in a criminal proceeding for perjury or false statement.

g. If the Court accepts the Defendants plea of guilty, there will be no furthertrial or proceeding of any kind, and the Court will find him guilty.

h. By pleading guilty, the Defendant will also be giving up certain valuablecivil rights and may be subject to deportation or other loss of immigration status. The Defendantrecognizes that if he is not a citizen of the United States, pleading guilty may have consequenceswith respect to his immigration status. Under federal law, conviction for a broad range of crimescan lead to adverse immigration consequences, including automatic removal from the UnitedStates. Removal and other immigration consequences are the subject of a separate proceeding,however, and the Defendant understands that no one, including his attorney or the Court, canpredict with certainty the effect of a conviction on immigration status. Defendant neverthelessaffirms that he wants to plead guilty regardless of any potential immigration consequences.


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Advisory Sentencing Guidelines Apply

6. The Defendant understands that the Court will determine a sentencing guidelinesrange for this case (henceforth the advisory guidelines range) pursuant to the SentencingReform Act of 1984 at 18 U.S.C. 3551-3742 (excepting 18 U.S.C. 3553(b)(l) and 3742(e))

and 28 U.S.C. 991 through 998.

Factual and Advisory Guidelines Stipulation

7. This Office and the Defendant understand, agree and stipulate to the Statement ofFacts set forth in Attachment A hereto, which this Office would prove beyond a reasonabledoubt, and to the following applicable sentencing guidelines factors:

Count One: (Conspiracy to Commit Wire Fraud)

a. The base offense level is 7pursuant to U.S.S.G. 2B1.1(a)(1).

b. The parties agree that the base offense level should be increased 14levels,pursuant to 2B1.1(b)(1)(G) and 2B1.1(b)(1)(H), because the loss attributable to the Defendantis at least $400,000, but not greater than $1,000,000.

c. A 2-level increase applies because a substantial part of the fraudulentscheme was committed from outside the United States, pursuant to U.S.S.G. 2B1.1(b)(10)(B).

d. The Government believes that a 2-level increase applies, because theDefendant was an organizer, leader, manager or supervisor of criminal activity, pursuant toU.S.S.G. 3B1.1(c).

e. The Government believes that a 2-level increase applies, because theDefendant abused a position of trust with his employer in the commission of the scheme,pursuant to U.S.S.G. 3B1.3.

f. The Defendant reserves the right to argue that the enhancements for roleand abuse of positon of trust in paragraphs 7(d) and 7(e) are duplicative and that only one ofthese enhancements should apply.

g. The adjusted offense level for Count One thus is 27 (the Governmentsposition) or25 (the Defendants position).

Count Ten: (Money Laundering)

h. The base offense level is 27 (the Governments position) or 25 (theDefendants position), because the offense level is determined by looking at the offense level forthe underlying offense from which the laundered funds were derived, pursuant to 2S1.1(a)(1).


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i. Pursuant to U.S.S.G. 2S1.1(b)(2)(B), a 2-level enhancement applies,because the Defendant was convicted under 18 U.S.C. 1956. The adjusted offense level forCount Ten is 29(the Governments position) or 27 (the Defendants position).

j. Grouping: Because the offense levels for Counts One and Ten are

determined largely on the basis of the total amount of harm or loss, these counts group, pursuantto U.S.S.G. 3D1.1, 3D1.2(d), and 3D1.3. The total offense level thus is 29 (the Governmentsposition) or 27 (the Defendants position).

k. This Office does not oppose a two-level reduction in the Defendantsadjusted offense level, based upon the Defendants apparent prompt recognition and affirmativeacceptance of personal responsibility for his criminal conduct. This Office may oppose anyadjustment for acceptance of responsibility if the Defendant (a) fails to admit each and everyitem in the factual stipulation; (b) denies involvement in the offense; (c) gives conflictingstatements about his involvement in the offense; (d) is untruthful with the Court, this Office, orthe United States Probation Office; (e) obstructs or attempts to obstruct justice prior tosentencing; (f) engages in any criminal conduct between the date of this agreement and the dateof sentencing; or (g) attempts to withdraw his plea of guilty. The final adjusted offense level is27(the Governments position) or 25 (the Defendants position).

8. The Defendant understands that there is no agreement as to his criminal history orcriminal history category, and that his criminal history could alter his offense level if he is acareer offender or if the instant offense was a part of a pattern of criminal conduct from which hederived a substantial portion of his income.

9. This Office and the Defendant agree that with respect to the calculation of theadvisory guidelines range, no other offense characteristics, sentencing guidelines factors,potential departures or adjustments set forth in the United States Sentencing Guidelines will beraised or are in dispute.

Obligations of this Office and the Defendant

10. At the time of sentencing, this Office will recommend a sentence within theadvisory Guidelines range determined by the Court for Counts One and Ten. At the time ofsentencing, this Office will move to dismiss any open counts against the Defendant.

11. The Defendant may apply to serve a portion of his sentence in the UnitedKingdom, pursuant to the International Prisoner Transfer Program, 18 U.S.C. 4100 et seq. Ifthe Defendant is eligible and applies to transfer his sentence pursuant to the InternationalPrisoner Transfer Program, this Office agrees to not oppose the Defendants transfer application.The Defendant acknowledges and understands, however, that the transfer decision rests in thesole discretion of the Office of Enforcement Operations (OEO) of the Criminal Division of theUnited States Department of Justice and that the position of this Office is neither binding nordeterminative of the positions of other federal agencies or on the final transfer decision of OEO.The Defendant further understands that in addition to OEO, federal law and the underlyingtransfer treaties require that the foreign government must also approve the transfer.


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12. The parties reserve the right to bring to the Courts attention at the time ofsentencing, and the Court will be entitled to consider, all relevant information concerning theDefendants background, character and conduct.

Restitution

13. The Defendant agrees to the entry of a Restitution Order in the amount of$1,000,000, which represents the full amount of the victims losses. The Defendant agrees that,pursuant to 18 U.S.C. 3663 and 3663Aand 3563(b)(2) and 3583(d), the Court may orderrestitution of the full amount of the actual, total loss caused by the offense conduct set forth inAttachment A. The Defendant agrees to waive any challenge to the restitution amount. Anyrestitution imposed shall be payable immediately, unless, pursuant to 18 U.S.C. 3572(d), theCourt orders otherwise.

14. The Defendant further agrees that he will fully disclose to the probation officerand to the Court, subject to the penalty of perjury, all information, including but not limited to

copies of all relevant bank and financial records, regarding the current location and priordisposition of funds obtained as a result of the criminal conduct set forth in the factual stipulationas well as any funds that may be available as substitute assets for the purpose of restitution. TheDefendant further agrees to take all reasonable steps to retrieve or repatriate any such funds andto make them available for restitution. If the Defendant does not fulfill this provision, it will beconsidered a material breach of this plea agreement, and this Office may seek to be relieved of itsobligations under this agreement.

Forfeiture

15. The Defendant agrees that as part of his acceptance of responsibility and pursuantto 18 U.S.C. 981(a)(1)(C) and 28 U.S.C. 2461, he will consent to the entry of a forfeituremoney judgment in the amount of $1,000,000 (the Forfeiture Money Judgment). TheDefendant acknowledges that this amount is subject to forfeiture as property, real or personal,that constitutes or is derived from proceeds traceable to a violation of 18 U.S.C. 1343 and1349, which constitutes specified unlawful activity within the meaning of 18 U.S.C. 981(a)(1)(C).

16. The Defendant agrees to consent to the entry of orders of forfeiture for theForfeiture Money Judgment and waives the requirements of Rules 32.2 and 43(a) of the FederalRules of Criminal Procedure regarding notice of the forfeiture in the charging instrument,announcement of the forfeiture at sentencing, and incorporation of the forfeiture in the judgment.The Defendant understands that the forfeiture of the Forfeiture Money Judgment is part of thesentence that may be imposed in this case and waives any failure by the court to advise him ofthis pursuant to Rule 11 (b)(l)(1) of the Federal Rules of Criminal Procedure at the guilty pleaproceeding.


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Assisting the Government with Regard to the Forfeiture

17. The Defendant agrees to assist fully in the forfeiture of the foregoing assets. TheDefendant agrees to disclose all of his assets and sources of income to the United States, and totake all steps necessary to pass clear title to the forfeited assets to the United States, including but

not limited to executing any and all documents necessary to transfer such title, assisting inbringing any assets located outside of the United States within the jurisdiction of the UnitedStates, and taking whatever steps are necessary to ensure that assets subject to forfeiture are notsold, disbursed, wasted, hidden or otherwise made unavailable for forfeiture. The Defendantfurther agrees that he will not assist any third party in asserting a claim to the forfeited assets inan ancillary proceeding and that he will testify truthfully in any such proceeding.

Waiver of Further Review of Forfeiture

18. The Defendant agrees to waive all constitutional, legal and equitable challenges(including direct appeal, habeas corpus, or any other means) to any forfeiture carried out in

accordance with this Plea Agreement on any grounds, including that the forfeiture constitutes anexcessive fine or punishment or otherwise violates the Eighth Amendment. The Defendant alsoagrees not to challenge or seek review of any civil or administrative forfeiture of any propertysubject to forfeiture under this agreement, and will not assist any third party with regard to suchchallenge or review or with regard to the filing of a petition for remission of forfeiture.

Waiver of Appeal

19. In exchange for the concessions made by this Office and the Defendant in thisplea agreement, this Office and the Defendant waive their rights to appeal as follows:

a. The Defendant knowingly waives all right, pursuant to 28 U.S.C. 1291or otherwise, to appeal the Defendant=s conviction;

b. The Defendant and this Office knowingly waive all right, pursuant to 18U.S.C. 3742 or otherwise, to appeal whatever sentence is imposed (including the right toappeal any issues that relate to the establishment of the advisory guidelines range, thedetermination of the defendant=s criminal history, the weighing of the sentencing factors, and thedecision whether to impose and the calculation of any term of imprisonment, fine, order offorfeiture, order of restitution, and term or condition of supervised release), except as follows: (i)the Defendant reserves the right to appeal any aggregate term of imprisonment to the extent thatit exceeds the guidelines range associated with an offense level of 27 as to Counts One and Ten;(ii) and this Office reserves the right to appeal any term of imprisonment to the extent that it isbelow the guidelines range associated with an offense level of 25 as to Counts One and Ten.

c. The Defendant and this Office also waive any right to challenge therestitution amount determined by the Court.

d. Nothing in this agreement shall be construed to prevent the Defendant orthis Office from invoking the provisions of Federal Rule of Criminal Procedure 35(a), or from


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appealing from any decision thereunder, should a sentence be imposed that resulted fromarithmetical, technical, or other clear error.

e. The Defendant waives any and all rights under the Freedom ofInformation Act relating to the investigation and prosecution of the above-captioned

matter and agrees not to file any request for documents from this Office or anyinvestigating agency.

Obstruction or Other Violations of Law

20. The Defendant agrees that he will not commit any offense in violation of federal,state or local law between the date of this agreement and his sentencing in this case. In the eventthat the Defendant (i) engages inconduct after the date of this agreement which would justify afinding of obstruction of justice under U.S.S.G. 3C1.1, or (ii) fails to accept personalresponsibility for his conduct by failing to acknowledge his guilt to the probation officer whoprepares the Presentence Report, or (iii) commits any offense in violation of federal, state or

local law, then this Office will be relieved of its obligations to the Defendant as reflected in thisagreement. Specifically, this Office will be free to argue sentencing guidelines factors other thanthose stipulated in this agreement, and it will also be free to make sentencing recommendationsother than those set out in this agreement. As with any alleged breach of this agreement, thisOffice will bear the burden of convincing the Court of the Defendants obstructive or unlawfulbehavior and/or failure to acknowledge personal responsibility by a preponderance of theevidence. The Defendant acknowledges that he may not withdraw his guilty plea because thisOffice is relieved of its obligations under the agreement pursuant to this paragraph.

Entire Agreement

21. This letter supersedes any prior understandings, promises, or conditions betweenthis Office and the Defendant and, together with the Sealed Supplement, constitutes the completeplea agreement in this case. The Defendant acknowledges that there are no other agreements,promises, undertakings or understandings between the Defendant and this Office other than thoseset forth in this letter and the Sealed Supplement and none will be entered into unless in writingand signed by all parties.


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If the Defendant fully accepts each and every term and condition of this agreement,please sign and have the Defendant sign the original and return it to me promptly.

Respectfully submitted,

Rod J. RosensteinUnited States Attorney

By: ____________________________David I. SalemLeah J. BressackAssistant United States AttorneysUnited States Attorneys Office

I have read this agreement and carefully reviewed every part of it with my attorney. Iunderstand it, and I voluntarily agree to it. Specifically, I have reviewed the Factual andAdvisory Guidelines Stipulation with my attorney, and I do not wish to change any part of it. Iam completely satisfied with the representation of my attorney.

Date Paul Dunham

I am Paul Dunhams attorney. I have carefully reviewed every part of this agreementwith him. He advises me that he understands and accepts its terms. To my knowledge, hisdecision to enter into this agreement is an informed and voluntary one.

Date Gary Proctor, Esq.


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ATTACHMENT A:

STIPULATED FACTS - UNITED STATES v. PAUL DUNHAM

The parties hereby stipulate and agree that if this case proceeded to trial, the government

would have proven the following facts beyond a reasonable doubt. The parties agree that the

following facts do not encompass all of the facts that would have been proven had this matterproceeded to trial.

PAUL DUNHAM is a citizen of the United Kingdom. On or about August 3, 1987,PAUL DUNHAM was hired by Pace Europe Ltd. Pace Europe Ltd. was a United Kingdomsubsidiary of its parent company, Pace USA, which was located at various times in Marylandand North Carolina (collectively Pace). Pace produced for the military and others parts for therepair and reworking of electronics.

From in or around 1987 through in or around 2009, PAUL DUNHAM held a number ofexecutive-level positions at Pace, including President and Chief Operating Officer of Pace.

PAULDUNHAMs wife, Sandra Dunham, was hired on or about December 2, 1987, to workfor Pace Europe Ltd., and eventually became the Director of Sales and Marketing for Pace USA.Both PAUL DUNHAM and Sandra Dunhamrelocated from the United Kingdom to the UnitedStates as part of their job responsibilities for Pace.

As part of their routine business arrangements with Pace, PAUL DUNHAM obtainedseveral corporate credit cards, including Pace Europe HSBC Mastercards xxxx-xxxx-xxxx-1961;xxxx-xxxx-xxxx-3649; xxxx-xxxx-xxxx-0823; and xxxx-xxxx-xxxx-2673; Pace EuropeAmerican Express card number xxxx-xxxxxx-92000; and Pace USA Visa card number xxxx-xxxx-xxxx-1955. Sandra Dunham also obtained several corporate credit cards, including PaceEurope HSBC Mastercard number xxxx-xxxx-xxxx-9226, and Pace USA Visa card numberxxxx-xxxx-xxxx-7238. At no time did PAUL DUNHAM or Sandra Dunhams employmentcontracts or other agreements with Pace permit them to use their business credit cards for purelypersonal expenses.

PAUL DUNHAMand Sandra Dunhamoften submitted reimbursement vouchers to thePace Europe Ltd.s offices in the United Kingdom, either in person or by facsimile from theUnited States, for expenses they incurred in both the United States and the United Kingdom,which they represented to their personal secretary were legitimate business expenses. PAULDUNHAM and Sandra Dunham caused their secretary to submit formal companyreimbursement forms to Pace requesting that Pace reimburse PAUL DUNHAM and SandraDunham. Pace then reimbursed PAUL DUNHAM and Sandra Dunham for such expenses,typically by making wire transfers from the Pace account at HSBC Bank in the United Kingdomto PAUL DUNHAM and Sandra Dunhams personal bank accounts, both in the UnitedKingdom and in the United States, including a joint Bank of America account ending in 0840,which PAUL DUNHAM and Sandra Dunhamhad opened in Maryland on or about October12, 2005.

Between in or about 2002 and in or about 2009, in the District of Maryland and


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elsewhere, PAUL DUNHAM did knowingly combine, conspire, confederate and agree withSandra Dunham to knowingly devise a scheme and artifice to defraud Pace and to obtainmoney and property from Pace by means of materially false and fraudulent pretenses,representations, and promises, and material omissions (Athe scheme to defraud@), and for thepurpose of executing and attempting to execute the scheme to defraud, to transmit and cause to

be transmitted by means of wire and radio communication in interstate and foreign commerce,writings, signs, signals, pictures and sounds, in violation of 18 U.S.C. 1343.

Beginning in about 2002, PAUL DUNHAM agreed with Sandra Dunham to chargepersonal expenses on their business credit cards. To avoid detection, PAUL DUNHAM andSandra Dunham deliberately mischaracterized personal expenses as business expenses. Forexample, on August 11, 2005, PAUL DUNHAM faxed a reimbursement request to Pace Europe,indicating that approximately $3,007 had been spent on miscellaneous USA expenses formeals at various restaurants during business meetings in North Carolina, when in fact theexpense invoices attached to the request were actually for luxury bedding and linens from anupscale bedding boutique in North Carolina. These bedding and linen purchases were intended

for delivery to PAUL DUNHAM and Sandra Dunhams upscale North Carolina residence.

Similarly, on or about December 20, 2004, Sandra Dunham submitted forreimbursement a claim for approximately $8,397.39, which had been charged to a personalAMEX account ending in 62007 held in the name of Paul Dunham. The reimbursement claimthat Sandra Dunham submitted to Pace consisted of a copy of the AMEX statement for theperiod of November 13 through December 4, 2004, on which Sandra Dunham had placed starsnext to specific charges and written claim due to cancelled holiday due to business meeting.At the time of its submission, Sandra Dunham knew that the charges for which she was seekingreimbursement from Pace were not related to a cancelled vacation, but were in fact mortgagepayments she and PAUL DUNHAM had made on two separate time share units PAULDUNHAM and Sandra Dunham had purchased in Barbados.

In addition, a substantial portion of the scheme was committed from outside the UnitedStates and involved PAUL DUNHAM managing and directing others in the execution of thescheme. Moreover, as part of the conspiracy, PAUL DUNHAM resorted to forgery. Forexample, on or about October 3, 2007, PAUL DUNHAMrequested that his secretary in the UKprepare and submit to the Pace accounting office in the UK a claim for reimbursement ofapproximately $3,943 in legal fees. To support this claim, PAUL DUNHAM provided hissecretary in the UK with a fraudulent invoice dated September 19, 2007, which PAULDUNHAM had doctored to appear as if the legal charges were Pace-related legal expenses, andPAUL DUNHAM noted on the invoice: Please pay this amount as I have already paid thisinvoice. At the time of its submission, PAUL DUNHAM knew that he was falselyrepresenting the nature of the legal expenses, because the legal expenses for which he soughtreimbursement were actually fees PAUL DUNHAM hadpaid to an attorney for personallitigation unrelated to Pace.

Similarly, PAUL DUNHAM doctored an invoice from a North Carolina business relatedto his purchase of home furnishings in order to make the invoice appear as if PAUL DUNHAMhad purchased trade show display tables on behalf of Pace, when in fact the real invoice showed


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that the items PAUL DUNHAM had purchased consisted of expensive furniture delivered toPAUL DUNHAM and Sandra Dunhams North Carolina residence.

With the intent to promote the wire fraud scheme, PAUL DUNHAM also caused to betransported and transmitted funds from or through a place outside the United States to a place in

the United States. For example, on or about February 12, 2007, PAUL DUNHAM caused Paceto transmit funds in the amount of $3,279.49 from a Pace account at HSBC Bank in the UK tothe joint BOA account in Maryland. That reimbursement amount included $1,270.03, whichPAUL DUNHAM had charged on his personal American Express credit card ending in 41001for the purchase of Frontgate furniture, including a domed pet residence and dog sofa that hadnothing to do with Pace business. As part of the scheme, PAUL DUNHAM had coded thoseFrontgate purchases as shows [sic], representing to Pace that the items were related tocompany industrial trade shows when they were not.

In addition, PAUL DUNHAM and Sandra Dunham defrauded Pace by double-dipping, i.e., charging a particular expense business or otherwise to a Pace USA credit card

and then seeking separate reimbursement from Pace Europe Ltd. for the same expense. Forexample, on or about January 12, 2009, Sandra Dunham sought and obtained reimbursementfrom Pace Europe in the amount of approximately $1,230.31, for the purchase of European airtravel, which was originally charged to PAUL DUNHAMs Pace USA Visa card no. xxxx1955and paid by Pace USA.

In conducting the scheme as an executive of Pace, PAUL DUNHAM abused a privateposition of trust. Based upon the length of the conspiracy, and information provided by otherindividuals, $1,000,000 in actual loss was reasonably foreseeable and within the scope of PAULDUNHAMs agreement.

I have read this statement of facts and carefully reviewed it with my attorney. Iacknowledge that it is true and correct.

Date Paul Dunham

I am the attorney for Paul Dunham. I have carefully reviewed the statement of facts withhim.

Date Gary Proctor, Esq.

paul dunham plea deal

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