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US Attorney for the District of Columbia
Plea agreement with and statement of offense by
Michael Wayne Martin in the
Washington Teachers Union case

March 27, 2003




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Plea agreement Statement of offense

U.S. Department of Justice
United States Attorney
District of Columbia

Judiciary Center
555 Fourth St. N.W.
Washington, D. C. 20530

March 27, 2003


Vandy L. Jamison Jr., Esq.
729 8th Street S.E.
Suite 350
Washington, D.C. 20003

Re: Michael Martin

Dear Mr. Jamison:

This letter sets forth the full and complete plea offer to your client, Mr. Michael Martin. This offer is binding only upon the Criminal Division of the United States Attorney's Office for the District of Columbia (sometimes referred to hereinafter as "the United States," "the government," or "this Office"). This plea offer will expire today. Upon receipt, the executed letter will itself become the plea agreement. The terms of the offer are as follows:

Charges: Mr. Martin agrees to waive indictment and to plead guilty to a one-count information changing conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). It is understood that the guilty plea will be based on a factual admission of guilt to the offense charged to be made before the Court by Mr. Martin and will be entered in accordance with Rule I 11(c)(1)(B) of the Federal Rules of Criminal Procedure. Mr. Martin agrees that the attached "Statement of the Offense" fairly and accurately describes Mr. Martin's actions and involvement in the conspiracy. It is anticipated that during the Rule 11 plea hearing, Mr. Martin will adopt and sign the Statement of the Offense as a written proffer of evidence.

1. Potential penalties, assessments, and on: Mr. Martin understands that the maximum sentence that can be imposed is 20 years imprisonment, a fine of $500,000, or a fine of twice the pecuniary gain or loss pursuant to 18 U. S. C. § 3571(d), a $100 special assessment, a 3-year term of supervised release, an order of restitution, and an obligation to pay any applicable interest or penalties on fines or restitution not timely made. Notwithstanding the maximum sentence, Mr. Martin understands that the sentence to be imposed in this case will be determined in accordance with the guidelines and policies promulgated by the United States Sentencing Guidelines
Commission, 'defines Manual (2001) (hereinafter "Sentencing Guidelines"). Mr. Martin understands that this sentence, including the applicable sentencing guideline range, will be determined solely by the Court, and the government cannot and. does not make any promises, representations or predictions regarding what sentence the Court will impose. Mr. Martin further understands that if the Court imposes a sentence greater than that provided in the. Sentencing Guidelines range as determined by the Court, ox which is in any other way unsatisfactory to ham, he cannot withdraw his guilty plea.

2. Federal Sentencing Guidelines: The parties agree that the following Guideline calculations apply:

 §§2S1.1(a)(1) & 2B1.1

(a) Base Offense Level, 6
(b) Specific Offense Characteristics, Loss over $1 million, +16
(c) Conviction under §1956 (§2S1.1(b)(2)(B)), +2


Acceptance of Responsibility, -3


Your client agrees not to seek any departures or downward adjustments from the Sentencing' Guidelines calculation agreed to in this paragraph. In the event that this plea offer is either not accepted or is accepted and subsequently withdrawn, the parties will not be bound by the proposed interpretations of applicable Sentencing Guidelines provisions contained. herein.

3. Financial Arrangements: Mr. Martin agrees that prior to or at the time of the sentencing, he will deliver to the Clerk's Office, United States District Court, a certified check in the amount of $100.00, to cover the special assessment, as required in Title 18, United States Code, Section 3013. Mr. Marten also agrees to provide a full and complete accounting of all assets, real or tangible; held by him or in any other name for his benefit, anal, to that cad, to submit a standard Form. 500 (Financial Statement of Debtor).

4. Cooperation: Mr. Martin agrees to cooperate completely, candidly, and truthfully in the investigation by this Office and federal, state, and local law enforcement agencies. Specifically, Mr. Martin agrees:

a. to provide complete, truthful, aced candid disclosure of information and all records, writings, tangible objects, or other requested materials of any kind or description that he has which relate directly or indirectly to the subject of this investigation;

b. to answer completely, truthfully, and candidly all question put to him by attorneys and law enforcement officials during the course of this investigation;

c. to make himself available for interviews by attorneys and law enforcement officers of the government upon request and reasonable notice;

d. not to attempt to protect any person or entity through false information or omission, nor falsely to implicate any person or entity;

e. not to disclose the fact of or details regarding his cooperation with lacer enforcement to any person or entity;

f. to comply with any and all reasonable requests from federal government authorities with respect to the specific assistance that he shall provide;

g. to answer, at trial, before the grand jury, or at any hearing arising out of this investigation, all questions put to him by the Court or by the attorney for any party completely; truthfully, and candidly;

h. to provide a full and complete accounting of all assets, real or tangible, held by him or in any other name for his benefit, and, to that end, to submit a standard form 500 (Financial Statement of Debtor).

5. Government Concessions: It exchange for his guilty plea, the government agrees not to oppose Mr. Martin's release pending sentencing; agrees not to oppose a -3-level adjustment for acceptance of responsibility pursuant to Sentencing Guidelines, Section 3E1. I (b), agrees not to seek upward adjustments or departures from, the Sentencing Guidelines calculation set forth in Paragraph 2 above, agrees not to oppose Mr. Martin's voluntary surrender to commence serving any sentence which is imposed, provided that Mr. Martin continues to show his acceptance of responsibility by: (a) cooperating with the presentence report writer (including answering all, material questions truthfully and providing all financial information requested); (b) cooperating fully and truthfully with the court in any proceeding arising from this matter; (c) complying with the other provisions of this agreement; and (d) abiding by the conditions set for his. release by the Court. Also, subject to other paragraphs in this agreement, the United States will not bring any additional criminal charges against Mr. Martin in the United States District Court in the District of Columbia or the Superior Court of the District of Columbia for the fraud and corruption outlined in the Information.? this agreement not to prosecute Mr. Martin does not extend to federal or local crimes of violence as those terms are defined in 1$ U.S.C. § 1, 6. and D.C. § 23-1331(4). It is understood that the United States has no evidence, as of the date of this agreement, of any crimes of violence involving Mr. Martin.

6. Departure Committee: At the time of Mr. Martin's sentencing, the United States will advise the sentencing judge and the probation office of the full nature, extent, and 'value of the cooperation provided by Mr. Martin to the United States. In addition, before sentencing, the United States will inform the Departure Committee of the United States Attorney's Office for the District of Columbia of the full nature, extent and value of the cooperation provided by Mr. Martin to the United States. If the Departure Committee determines that Mr. Martin. has provided substantial assistance in the investigation or prosecution of another person or entity that has committed any offense, then this Office will file a motion pursuant to $ 5K1.1 of the sentencing guidelines. Mr. Martin understands that the determination of whither he has provided "substantial assistance" is within. the sole discretion of the United States Attorney for the District of Columbia. Mr. Martin, further understands that the failure of this Office to file a "substantial assistance" departure motion is not a ground for him to move to withdraw his plea of guilty in this case.

7. Court is not bound: Mr. Martin understands that the Court is not obligated to follow any recommendation of the government at the time of sentencing arid that the final decision regarding his bond status. or detention will be made by the Court at the time of his plea of guilty. The Court's decision in these regards are tot grounds for withdrawal from this agreement.

8. Reservation of Allocution: The United States reserves allocution, including, among other things, the right: to inform the presentence report writer of any relevant facts; to dispute factual inaccuracies in the presentence report and to contest any matters not provided for in this plea agreement; to set forth at sentencing and at any proceedings before the Bureau of Prisons all of its evidence with respect to all of Mr. Martin's criminal activities, subject to the provisions of tile following paragraph.

9. The United States and Mr. Martin hereby agree that since Mr. Martin has agreed to cooperate with the United States, information provided by Mr. Martin shall not be held against him for purposes of calculating his sentence (See Sentencing Guidelines Section 1B1.8), and will not otherwise be used against him, except as follows:

a. information that was known to the United States prior to the date this plea agreement was agreed to by Mr. Martin may be used directly and indirectly against Mr. Martin in any criminal proceeding;

b. in a prosecution for perjury or giving a false statement pursuant to this agreement, statements made by Mr. Martin as part ofhis cooperation maybe used directly and indirectly against him; aid,

c. if there is a breach of this agreement by Mr. Martin, as determined under the provisions of this agreement. In the event of such a breach, as set forth in Paragraph l l below, the United States retains the right to use any information provided by Mr. Martin directly and indirectly at any subsequent proceeding.

10. 1f in this plea agreement the Government has agreed to recommend or refrain from recommending to the sentencing judge a particular resolution of any sentencing issue, the Government reserves the right to full allocution in any post-sentence litigation in order to defend the sentencing judge's ultimate decision on such issues.

11. Breach of Agreement: If Mr. Martin fails to make a. complete, truthful, and candid disclosure of information to federal law enforcement officers government attorneys; and grand juries conducting this investigation, or to the Court, and/or if he commits any further crimes, or attempts to withdraw the plea, the United States will have the right to characterize such conduct as a breach of this plea agreement. If during this investigation or prosecution Mr. Martin should commit perjury, knowingly give any false statement, commit any act of contempt, or obstruct justice, the United States may prosecute him for these offenses to the fullest extent provided bylaw. In. the event of a breach, (a) the United States will be free from its obligations under the agreement and may take whatever position it believes appropriate as to the sentence and the conditions of Mr. Martin's release (for example, should your client commit any conduct after the agreement that would form the basis for an use in your client's offense level or justify an upward departure -- examples of which include but are not limited to, obstruction of justice, failure to appear for a court proceeding, criminal conduct while pending sentencing, and false statements to law agents, the probation officer or Court -- the Government is free under this agreement to seek an increase an increase in the offense level based that post-agreement conduct); (b) Mr. Martin will not have the right to withdraw the guilty plea; (c) Mr. Martin shall be fully subject to criminal prosecution for any other crimes which he has committed or might commit, if any, including perjury and obstruction of justice; and (d) the United States will be free to use against Mr. Martin, directly and indirectly, in any criminal or civil proceeding any of the information or materials provided by him pursuant to this cooperation agreement. Any such prosecutions of the defendant not time-barred by the applicable statute of limitations on the date of the signing of this agreement may be commenced against the defendant in accordance with this paragraph, notwithstanding the running of the applicable statute of limitations before the commencement of such prosecutions. Mr. Martin knowingly and voluntarily agrees to waive any and all defenses based on the statute of limitations for any prosecutions commenced pursuant to the provisions of this paragraph.

12. Ins the event of a dispute as to whether Mr. Martin has knowingly given materially false, incomplete or misleading information in fulfilling the terms of his cooperation agreement or whether Mr. Martin has knowingly committed any other material breach of this agreement, and if the United States wants to exercise its rights under this agreement, and if Mr. Martin so requests, the matter shall be submitted to the Court and shall be determined by the Court in an appropriate proceeding at which Mr. Martin's disclosures and documents shall be admissible and at which time the United States shall have the burden to establish the same by a preponderance of the evidence.

13. Presence of Counsel: At all briefing and interviewing sessions conducted by investigators and/or attorneys for the government, Mr. Martin shall be entitled to the presence, advice, and assistance of counsel, unless waived.

14. USAO's Criminal Division: Mr. Martin understands that this agreement is binding only upon the Criminal Division of the United States Attorney's Office for the District of Columbia. This does not bind the Civil Division of this Office or any other United States Attorney's Office. Nor does it bind any other state, local, or federal prosecutor. It also does not bar or compromise any civil, tax, or administrative claim pending or that maybe made against Mr. Martin.

15. Waiver of Appeal: Mr. Martinis aware that federal law, specifically 18 U.S.C. § 3742, . affords him the right to appeal his sentence. Mr. Martin is aware that the parties' calculation of the sentencing range under the Sentencing Guidelines is not a promise of the sentence to be imposed on him and is not binding on the Judge. Knowing that, Mr. Martin waives the right to appeal his sentence or the manner in which it was determined pursuant to 18 U.S.C. § 3742, except to the extent that (a) the Court sentences Mr. Martin. to a period of imprisonment longer than the statutory maximum or (b) the Court departs upward from, the applicable Sentencing Guideline range pursuant to the provisions of U.S.S.G. §§ 5K2. Further, Mr. Martin reserves his right to make a collateral attack upon his sentence pursuant to 28 U.S.C. § 2255 if new and currently unavailable information becomes mown to him. In agreeing to this Waiver, Mr. Martin is aware that his sentence has not yet been, determined by the Judge. Realizing the uncertainty in estimating what sentence the Judge will ultimately impose, Mr. Martin knowingly and willingly waives his right to appeal the sentence, to the extent noted above, in exchange for the concessions made by the United States in this agreement. See In re Sealed Case, 283 F.3d 349,355 (D.C. Cir.), cert. denied. 123 S. Ct. 158 (2002).

16. Complete Agreement: No other agreements, promises, understandings or representations have been made by the parties or their counsel than those contained in writing herein, nor will. any such agreements, promises, understandings, or representations be made unless committed to writing and signed by Mr. Martin, Mr. Martin's counsel and an Assistant United States Attoney for the Distract of Columbia.

If the foregoing terms and conditions are satisfactory, Mr. Martin may indicate his assent by signing the agreement in the space indicated below and returning the original to us once it has been signed by Mr. Martin and his counsel.

Sincerely yours,

Assistant United States Attorney

Assistant United States Attorney

I have read this plea agreement and have discussed it with my attorney, Vandy L. Jamison, Jr., Esquire. I fully understand this agreement and agree to it without reservation. I do this voluntarily and of my own free will, intending to be legally bound. No threats have been made to ante nor am I under, the influence of anything that could impede my ability to understand this agreement fully. I am pleading guilty because I am in fact guilty of the offenses) identified in paragraph one.

I reaffirm that absolutely no promises, agreements, understandings, or conditions have been made or entered into in connection with my decision to plead guilty except those set forth in this plea agreement. I am satisfied with the legal services provided by my attorney in connection with this plea agreement and matters related to it.

Date: 03-27-03

Michael Martin

I have read each of the pages constituting this plea agreement, reviewed them with my client, and discussed the provisions of the agreement with my client, fully. These pages accurately and completely sets forth the entire plea agreement. I concur in my client's desire to plead guilty as set forth in this agreement.

Date: 03-27-03

Vandy L. Jamison, Jr., Esquire
Attorney for the Defendant

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United States v. Michael, Martin

The Washington Teachers' Union ("WTU") was a labor organization within the meaning of the Labor Management Reporting and Disclosure Act of 1959 and, as such, is regulated by the United States Department of Labor ("DOL"). During all relevant times, WTU was required annually to submit reports of its financial condition ("Forms LM-2") to DOL. Forms LM-2 required disclosure of, among other things, disbursements to officers and employees, including, but not limited to, payments of salary and other remuneration, as well as payments to officers and employees for business expenditures. DOL maintained these Forms LM-2 for inspection by union members, who were entitled to rely on the accuracy of the information disclosed.

WTU was an affiliate of the American Federation of Teachers, AFL-CIO ("AFT"). WTU derived its funds from dues paid by its approximately 5,000 members, including teachers and retirees of the District of Columbia Public School system and private sector employees of the National Child Day Care Association, now known as "Nation's Capital Child and Family Development." WTU was the collective bargaining agent for District of Columbia public school teachers and professionals.

WTU was governed by a constitution and by that required WTU's operations, finances, and expenditures to be overseen by an executive board consisting of, among other persons, the persons occupying the offices of WTU President, WW General Vice-President, and WTU Treasurer. For all periods relevant to the conspiracy described herein, the persons occupying these offices did not change.

WTU President was a full-time, salaried official of WTU. WTU Treasurer was at various times a full-time, salaried ofcial of WTU. WTU President was assisted in his/her job by WTU Executive Assistant. WTU checks were required to be signed by two of the three persons occupying positions of Vice President, WTU General Vice President, and WTU Treasurer. WTU President also delegated to WTU Executive Assistant authority to affix a stamp of his/her signature to WTU checks. WTU Executive Assistant did, in fact, write many WTU checks, affix WTU President's signature stamp, and obtain WTU Treasurer's actual signature for checks. WTU Treasurer at times signed blank checks.

Defendant, Michael Martin, was the son-in-law of WTU Executive Assistant. Commencing sometime in or about June of 1999, defendant, Michael Martin, along with a ("`Business Partner"), caused a depository account in the name of a fictitious company known as "Expressions Unlimited" to be opened at Bank of America in the District of Columbia. They opened this account at the request of WTU President and WTU Executive Assistant for the express purpose of using the account to deposit checks written from WTU accounts and, in turn, to write checks out of the Expressions Unlimited account back to WTU President and WTU Executive Assistant and withdraw cash from the account for WTU President and WTU Executive Assistant. These Expressions Unlimited checks and cash given to WTU President and WTU Executive Assistant were then to be used for their personal purposes. In order to make it appear that the relationship between Expressions Unlimited and WTU was legitimate, and to avoid the appearance that WTU funds were being paid to WTU Executive Assistant's son-in-law, defendant, Michael Martin, and WTU Executive Assistant agreed that defendant, Michael Martin, would not be the legal signatory on the Expressions Unlimited account. Instead, "Business" Partner was the only authorized signatory. Defendant, Michael Martin, learned from WTU President and WTU Executive Assistant that, at least in part, the WTU funds paid into the Expressions Unlimited account and then paid back to them would be used to make it appear that WTU President was reimbursing WTU for personal expenditures previously charged to WTU. Expressions Unlimited in fact performed no services and provided no goods to WTU.

Thereafter, WTU President and WTU Executive Assistant caused defendant, Michael Martin, to receive over $480,000 in WTU checks signed by WTU President and WTU Treasurer, which defendant, Michael Martin, and "Business" Partner caused to be deposited into the Expressions Unlimited account at Bank of America. These funds constituted more than 98% of the checks deposited into this account. Of these funds, at the direction of WTU President and/or WTU Executive Assistant, defendant, Michael Martin, and "Business" Partner withdrew cash from the Expressions Unlimited account and gave a substantial portion of it to WTU President (generally by depositing it directly into WTU President's bank account) and WTU Executive Assistant or wrote Expressions Unlimited checks to WTU President and WTU Executive Assistant.

Defendant, Michael Martin, benefitted personally from this conspiracy because lie and his wife were permitted to use portions of the WTU funds deposited into the Expressions Unlimited account. Among other things, they used the cash for personal items and tuition for their children at a private school. In addition, WTU Executive Assistant permitted defendant, Michael Martin, and his wife to charge on. his/her WTU American Express card (and, alternatively, himself/herself used the card to pay on behalf of the Martins), among other things, furniture, a vacation, repairs and maintenance on their personal vehicles, parties in the Martin home, limousine service to Washington Redskins games, and Washington Redskins tickets purchased by WTU.

An example of the working of the scheme is as follows: On or about August 26, 2000, defendant, Michael Martin, deposited, or caused to be deposited, a WTU check signed by WTU President and WTU Treasurer in the amount of $60,000 into the Bank of .America Expressions Unlimited account. On or about September 5, 2000, defendant, Michael Martin, caused "Business" Partner to obtain a $55,000 cashier's check drawn against funds in the Expressions Unlimited account, payable to WTU President in his/her personal capacity. These funds were then deposited into WTU President's personal account. On or about September 13, 2000, WTU President wrote a personal check payable to the WTU credit card account in the amount of $60,000.

In addition to the WTU funds deposited into the Expressions Unlimited account, WTU paid defendant, Michael Martin, in his personal capacity, at least $20,000, through checks written directly to him and signed by WTU President and WTU Treasurer. Defendant, Michael Martin, perforated few union-related services in exchange for these funds. In October 2002, in an effort to establish a legitimate reason for receiving WTU funds, defendant, Michael Martin created several "invoices," which purported to justify "services" he had provided to WTU President. In fact, defendant, Michael Martin, occasionally styled WTU President's hair and occasionally took WTU President shopping (or shopped for him/her). These "invoices," for services such as "image consulting" for WTU President, were not for legitimate WTU expenses.

For the Government:



For the Defendant:

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