Opinion
99 Cr. 1043 (RWS)
February 1, 2002
SENTENCING OPINION
On October 12, 1999, Raymond Yan Zhang ("Zhang") pled guilty to making cash payments to a United States Department of Agriculture produce inspector in order to influence the outcome of inspections of fresh fruits and vegetables in violation of 18 U.S.C. § 201(b)(1). Sentencing is scheduled for February 11, 2002 and this order is subject to modification at that time.
The Offense Conduct
In December 1996, the USDA's Office of Inspector General ("USDA OIG") received an anonymous complaint that produce inspectors were being bribed by a prominent Hunts Point wholesaler to "downgrade". produce inspection results, to the detriment of growers. The complainant refused to provide further assistance.
In early 1997, several more complaints were received, claiming that New York wholesalers requested inspections far more frequently than elsewhere. Based on the complaints, USDA OIG and the FBI initiated a joint corruption investigation.
In June 1997, Ernest Santucci, a USDA inspector employed at Hunts Point, contacted USDA OIG to report an attempted bribe by a Hunts Point wholesaler. Santucci agreed to assist in an undercover investigation. Santucci was instructed to perform inspections according to normal procedures, and not to alter his practices to induce a payment.
On several occasions when Zhang was present, $50 payments were made by Henry Wang, the general manager of Southeast Produce Ltd. USA ("Southeast"), the wholesale produce business of which Zhang was the foreman and part owner.
In September of 1997, Tony Morales, another Hunts Point USDA inspector, contacted USDA OIG to report an attempted bribe. Morales stated that Wang handed him a wad of cash after having completed an inspection. He also agreed to assist the investigation. Wang then made frequent payments to Morales and on one occasion, Zhang made the payment.
In May 1998, pursuant to a court order, the FBI installed a listening device and closed circuit camera in Wang's office. Two additional USDA officers were captured on video accepting payments from Wang. On October 7, 1998, Wang and Zhang were arrested on bribery charges.
Zhang's Cooperation
In October 1998, following their initial debriefings in which Wang and Zhang described having bribed numerous other USDA officers, they agreed to allow FBI agents to install video surveillance equipment to record their interactions with the USDA inspectors. They were instructed to continue requesting inspections and making payments to the same inspectors with whom they dealt prior to their arrest.
For the next eleven months, Wang and Zhang made dozens of videotaped cash payments to USDA inspectors. On the videotapes, many of the inspectors made highly incriminating statements which revealed their willingness to alter produce inspection results in exchange for cash.
As a result of their cooperation, fourteen Hunts Point wholesalers and eight of the fifteen Hunts Point inspectors were indicted on charges related to this corrupt scheme.
Adjustment for Acceptance of Responsibility
Zhang pled guilty to the offense conduct and stated that he "sincerely regret[s] these actions and take[s] full responsibility for them."
The Guidelines Offense Level
Under the November 2001 United States Sentencing Commission Guidelines Manual (the "Guidelines"), violations of 18 U.S.C. § 201(b)(1) are covered by § 2C1.1. The base offense level is ten pursuant to § 2C1.1(a).
Two levels are added since the offense involved more than one bribe pursuant to § 2C1.1(b)(1). Since Zhang paid a total of $19,250 in bribes to various USDA produce inspectors, pursuant to § 2C1.1(b)(2)(A) and § 2F1.1(b)(1)(D), four levels are added.
Based on Zhang's plea allocution, he has recognized responsibility for the offense. Pursuant to § 3E1.1(a) Zhang qualifies for a two-level reduction.
Adjusted Offense Level
Zhang's adjusted offense level is thus 13 under the Guidelines.
Criminal History Category
Zhang has no prior convictions, therefore, he has zero criminal history points and a Criminal History Category of I.
Applicable Guidelines Range
The Guidelines' range for an offender with a base offense level of 13 and a Criminal History Category of I is 12 to 18 months. The statute under which Zhang was convicted provides for a maximum sentence of 15 years.
The Sentence
This sentence is subject to modification at the February 11, 2002 sentencing hearing. The government has indicated that it intends to move for a downward departure pursuant to Section 5K1.1 of the Guidelines for Zhang's cooperation in the investigation.
In light of the foregoing and assuming the government makes a proper motion for downward departure based on Zhang's cooperation pursuant to Section 5K1.1 of the Guidelines, Zhang shall be sentenced to three years probation, a fine of $3,000 and a mandatory special assessment of $100, pursuant to 18 U.S.C. § 3013.
The following conditions of probation are mandatory: Zhang shall not (1) commit another federal, state or local crime; (2) illegally possess a controlled substance; (3) possess a firearm or other destructive device.
Zhang will also be subjected to the following supervised release conditions: (1) the standard conditions of supervision (1-13); (2) Zhang shall provide the probation officer with access to any requested financial information; (3) he will participate in a program approved by the Unites States Probation Office for substance abuse, which program may include testing and he will be required to contribute to the costs of services rendered in an amount to be determined by the probation officer, based on ability to pay or availability of third-party payment; (4) he is to be supervised by the district of residence; and (5) he is to pay to the United States a special assessment of $100, due immediately.
Finally, Zhang will be required to pay a fine of $3,000 to deter future criminal activity.