imputación contra m. lustgarten
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8/18/2019 Imputación contra M. Lustgarten
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IN THE UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
MIAMI DIVISION
CASE NO.: 15-MJ-2465-MCALILEY
UNI TED STATES OF AMERI CA, ))
Pl ai nt i f f , ) ( Cor r ect ed case no. )v. )
) Apr i l 13, 2015MARTI N LUSTGARTEN ACHERMAN, )
)
Def endant . ) Pages 1 - 29 ________________________________)
DETENTI ON HEARI NGBEFORE THE HONORABLE EDWI N G. TORRES
UNI TED STATES MAGI STRATE J UDGE
APPEARANCES:
For t he Pl ai nt i f f : UNI TED STATES DEPARTMENT OF J USTI CECr i mi nal Di vi si on
950 Pennsyl vani a Avenue, NWWashi ngt on, DC 20530BY: J OSEPH PALAZZO, AUSA
8/18/2019 Imputación contra M. Lustgarten
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CONTI NUED APPEARANCES:
For t he Def endant : NATHAN P. DI AMOND, P. A.888 Bi scayne Boul evardSui t e 501,Mi ami , FL 33132BY: NATHAN P. DI AMOND, ESQ.
Transcr i bed By: Bonni e J oy Lewi s, R. P. R.
7001 SW 13 St r eet Pembroke Pi nes, FL 33023 954- 985- 8875
casel awr pt g@gmai l . com
8/18/2019 Imputación contra M. Lustgarten
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I N D E X
THE WI TNESS: PAGE:
SPECI AL AGENT PHI LI P LAVOI E
Cr oss Exami nat i on by Mr . Di amond: 9
Redi r ect Exami nat i on by Mr . Pal azzo: - -
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( Ther eupon, t he f ol l owi ng pr oceedi ng was hel d: )
THE COURTROOM DEPUTY: Cal l i ng t he case of t he Uni t ed
St ates versus Mart i n Lust gart en Acher man; Case Number 15- 2465, J udge
McAl i l ey.
THE COURT: Pr epared t o proceed?
MR. DI AMOND: Yes.
THE COURT: How about t he Government ?
MR. PALAZZO: Good mor ni ng, Your Honor .
J oseph Pal azzo f r om t he Cr i mi nal Di vi si on, Depar t ment of
J ust i ce i n Washi ngt on, D. C.
I t ' s ni ce t o meet you.
And t he Government t oday i s movi ng f or detent i on.
THE COURT: Thank you. Good morni ng.
And f or t he Def endant ?
MR. DI AMOND: Good mor ni ng.
May i t pl ease t he Cour t . Nathan Di amond on behal f of Mr .
Lust gart en who st ands besi de me.
THE COURT: Good mor ni ng.
Okay. Do you wi sh t o pr oceed or do you want t o wai ve t hese
hear i ngs f or - - ar e t hese char ges up i n Massachuset t s, i s t hat i t ?
MR. DI AMOND: Yes, but I t hi nk i t i s ver y i mpor t ant t hat we
move f or war d her e because I t hi nk t her e ar e cer t ai n al l egat i ons t hat
ar e put f or t h t hat mer i t hi s bei ng gi ven a suret y. And goi ng up
t here and bei ng abl e to work wi t h me t hr oughout and dur i ng t hi s
per i od of t i me.
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THE COURT: Now, t hi s i s a f i r st supersedi ng. Was he ever
i ni t i al l ed?
MR. DI AMOND: I f ound t hat most unusual . I saw t he same
t hi ng. I t says f i r st super sedi ng.
THE COURT: Di d he ever have an i ni t i al up i n
Massachuset t s?
MR. DI AMOND: No, Your Honor .
THE COURT: Okay.
MR. DI AMOND: As f ar as I coul d t el l af t er l ooki ng at PACER
t her e was no i ni t i al i ndi ctment . I saw f i r st super sedi ng and - -
THE COURT: Di d you wi sh t o cont est r emoval , or det ent i on,
or bot h?
MR. DI AMOND: Det ent i on.
THE COURT: You are wai vi ng r emoval ? Wai vi ng i dent i t y?
MR. DI AMOND: Yes.
THE COURT: Government , r eady t o proceed on t he det ent i on
hear i ng f or Mr . Acher man?
MR. PALAZZO: Yes, Your Honor .
THE COURT: I s i t Acherman or Aker man?
THE DEFENDANT: Lust gar t en Acherman.
THE COURT: Lust gar t en.
Okay. Go ahead.
MR. PALAZZO: Your Honor, I amunf ami l i ar wi t h t he cust oms
down her e.
I am appear i ng wi t h AUSA J ohn Byrne wi t h t he U. S.
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At t or ney' s Of f i ce up her e i n Fl or i da. The Gover nment i s pr epar ed t o
pr of f er evi dence i n suppor t of i t s mot i on. And Speci al Agent Phi l i p
Lavoi e f r om Homel and Secur i t y I nvest i gat i ons i s al so her e - -
THE COURT: Okay.
MR. PALAZZO: - - t o gi ve t est i mony and suppor t .
THE COURT: Okay. I wi l l accept your prof f er .
MR. PALAZZO: Your Honor , t he Gover nment moves f or
det ent i on t oday because no condi t i ons or ser i es of condi t i ons - -
THE COURT: Move t he mi cr ophone a l i t t l e cl oser .
MR. PALAZZO: Sure.
THE COURT: I want t o make sure we pi ck you up.
MR. PALAZZO: How i s t hat , Your Honor?
THE COURT: That ' s bet t er .
MR. PALAZZO: Your Honor , no condi t i ons or ser i es of
condi t i ons wi l l r easonabl y assur e Mr . Lust gar t en' s appear ance i n
Bost on t o f ace these char ges.
There are f our mai n f act or s t hat t he Government woul d l i ke
t he Cour t t o consi der . The f i r st i s t he ser i ousness of t he cr i mes
f or whi ch Mr . Lust gar t en i s char ged. And by my cal cul at i ons, t he
Sent enci ng Gui del i nes, I have hi m at 42 i f he i s convi cted of al l
t hr ee count s, whi ch ar e l aunder i ng, dr ug pr oceeds, obst r uct i on of
j ust i ce and a conspi r acy count .
And accor di ng t o the Sent enci ng Gui del i nes, t he upper end
of t hat woul d be a l i f e sent ence. He i s st at ut or i l y capped out at
20 year s, but t he sever i t y of t hat sent ence i s somet hi ng t hat t he
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Gover nment woul d l i ke t he Cour t t o consi der .
The Government ' s case i s al so very st r ong. Mr .
Lust gar t en' s arr est l ast week was t he cul mi nat i on of sever al year s
of i nvest i gat i on by a j oi nt t ask f or ce i n t he Di st r i ct of
Massachuset t s. That i ncl uded agent s f r omt he DEA, Homel and Secur i t y
and other agenci es.
Wi r et aps, extensi ve wi r et aps wer e conduct ed i n the Uni t ed
St ates and i n Col ombi a and sever al search warr ant s were executed on
Mr . Lust gar t en' s e- mai l s. So t her e i s pl ent y of document ar y
evi dence suppor t i ng t he char ges as wel l .
The second f act or i s Mr . Lust gar t en' s si gni f i cant f i nanci al
r esour ces. Ther e i s evi dence i n t he case t hat i n t he past sever al
year s over hundr ed mi l l i on dol l ar s passed t hr ough account s
cont r ol l ed by Mr . Lust gar t en i n at l east f i ve di f f er ent count r i es i n
t hr ee di f f er ent cont i nent s around t he wor l d.
Your Honor , Mr . Lust gar t en al so has ext ensi ve f orei gn t i es.
He i s i n t he Uni t ed St at es. Al t hough, he owns a home her e, he i s i n
t he Uni t ed St at es on a B- 2 t our i st vi sa. He i s a ci t i zen, as f ar as
we know at l east , of Aust r i a and Venezuel a and he i s a r esi dent of
Panama.
More than t hat , Your Honor -
THE COURT: Does he have any t i es t o Massachuset t s, do you
know?
MR. PALAZZO: I bel i eve a chi l d - -
MR. DI AMOND: He has a daughter t hat goes t o school t here.
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THE COURT: A daughter .
MR. DI AMOND: And he l i ves here i n Mi ami .
THE COURT: Okay.
MR. PALAZZO: Your Honor - -
THE COURT: What i s t he cr ux of t he evi dence t hat are f ound
on t he wi r etaps?
MR. PALAZZO: Essent i al l y, t hat Mr . Lust gar t en
quart er backed an i nt er nat i onal scheme to move U. S. dol l ars ar ound on
behal f of - - i n t he amount of at l east 40 mi l l i on dol l ar s on behal f
of dr ug car t el s and r evol ut i onar y par ami l i t ar y or gani zat i ons i n
Col ombi a.
Essent i al l y, t he Gover nment has evi dence that Mr .
Lust gar t en pur por t s t o r un a so- cal l ed pur chase or der f i nanci ng
company based i n mul t i pl e count r i es t hat wi l l l oan i ndi vi dual s money
f or t he f i nanci ng of goods i n i nt er nat i onal t r ade.
The Government has evi dence on wi r et aps and el sewher e t hat
t hi s i s a f al se, t hat he i s not i n t he pur chase or f i nance busi ness.
He i s s i mpl y usi ng t hat as a cover t o l aunder money f or dr ug car t el s
and ot her s.
He t akes advant age of a uni que si t uat i on i n Venezuel a, hi s
home count r y, wher e t her e i s a si gni f i cant r est r i ct i on - - I am not
sur e i f t he Cour t i s awar e, but on U. S. cur r ency i n t he count r y. So
t her e i s a par al l el or a bl ack mar ket , as i t i s known down t her e.
And so Mr . Lust gart en has made a busi ness of gatheri ng U. S.
dol l ar s and maki ng t hem avai l abl e i n pl aces wher e t hey ar e har d t o
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come by, such as Venezuel a. And t he si gni f i cance of t hat i s t he
sour ce of t hose dol l ar s, Mr . Lust gar t en i s wel l awar e t hat at l east
f or t y mi l l i on and possi bl y a hundr ed mi l l i on comes f r om dr ug car t el s
or par ami l i t ar y or gani zat i ons.
On t op of t hat , Your Honor , you wi l l see i n t he i ndi ct ment
t hat Mr . Lust gar t en al so st ands char ged wi t h t wo count s i nvol vi ng
t he obst r uct i on of a j udi ci al pr oceedi ng.
And t hat , essent i al l y, i s because Mr . Lust gar t en i s
basi cal l y a pr of essi onal l i ar t hat has been l yi ng t o t he DEA and t o
Homel and Secur i t y and t o the U. S. At t or ney' s Of f i ce i n Bost on f or
sever al year s.
There i s not hi ng he i s not wi l l i ng t o l i e about . He wi l l
l i e t o t hi s Cour t . And he cer t ai nl y wi l l not appear i n Bost on i f
r el eased under any ser i es of condi t i ons, Your Honor .
And f or t hose r easons, Your Honor , t he Government moves f or
det ent i on.
THE COURT: I n ot her words, he t est i f i ed bef ore a grand
j ury proceedi ng? I s t hat t he i dea?
MR. PALAZZO: No, he di d not .
He had sever al i nt er vi ews t hat t he Cour t coul d hear
t est i mony about f r omSpeci al Agent Lavoi e where he made st atement s
about hi s busi ness t hat wer e mat er i al l y f al se.
Par t of hi s scheme was al so t o go ar ound and t o br ag t o
pot ent i al cl i ent s t hat he was cooper at i ng wi t h DEA and t hat he had
some sor t of speci al per mi ssi on t o move i l l i ci t f unds wi t h t he
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knowl edge of t he Gover nment . That i s mat er i al l y f al se and t hat i s
part and parcel wi t h hi s scheme.
THE COURT: Do you wi sh t o exami ne t he agent ?
MR. DI AMOND: Yes, absol ut el y.
THE COURT: Go ahead and cal l t he agent .
MR. DI AMOND: J ust so I coul d - -
THE COURT: J ust cal l t he agent .
MR. DI AMOND: Okay.
( Wi t ness swor n. )
THE COURTROOM DEPUTY: Pl ease st at e your name, f or t he
r ecor d, spel l i ng your f i r st and l ast name.
THE WI TNESS: Phi l i p, P- H- I - L- I - P; l ast name, Lavoi e,
L- A- V- O- I - E.
SPECI AL AGENT LAVOI E, GOVERNMENT' S WI TNESS SWORN
CROSS EXAMI NATI ON
BY MR. DI AMOND:
Q. Mr . Lavoi e, you ar e an agent t hat i s f r om t he Bost on Di vi si on
of t hi s case, cor r ect ?
A. That ' s cor rect .
THE COURT: Whi ch agency? I ' m sor r y.
THE WI TNESS: I am wi t h Homel and Secur i t y I nvest i gat i ons.
BY MR. DI AMOND:
Q. And t her e wer e ot her agent s i nvol ved i n t hi s i nvest i gat i on,
correct?
A. Yes.
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Q. And i n other j ur i sdi ct i ons, cor rect?
A. Yes.
Q. I ncl udi ng t he Sout hern Di str i ct of Fl or i da, corr ect ?
A. That i s cor rect .
Q. Wer e you i nvol ved wi t h t he Rosemount account s - -
A. Not di r ect l y.
Q. - - i n 2009?
A. Not di r ect l y, no.
Q. That was a sei zur e, was i t not , i n Bost on, cor r ect?
A. That i s cor rect .
Q. And i n f act , t hose f unds wer e sei zed f r om numer ous compani es
and wer e put t oget her , I t hi nk, i n t hi s case.
You have a name f or i t . Al t hough i t ' s got about f i ve i nches of
document s t hat deal wi t h t he af f i davi t s and al l .
But Rosemount was par t of a gi ant gr oup of corporat i ons t hat
you had under i nvest i gat i on, you, meani ng the U. S. Gover nment ,
correct?
A. As I under stand t hat i nvesti gat i on, t hat i s corr ect . I was not
di r ect l y i nvol ved i n i t i n any way.
Q. And par t of t hat i nvest i gat i on i nvol ved t hr ee compani es t hat
Mr . Lust gar t en was i nvol ved i n?
A. I ' m not sur e of t he exact number of compani es.
Q. I ' m sor r y. Two compani es.
And t hose moni es t hat were sei zed wer e ul t i mat el y retur ned t o
Mr . Lust gar t en i n t hat l i t i gat i on, cor r ect ?
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A. I t ' s my under st andi ng t hat at l east a por t i on of t he pr oceeds
wer e r et ur ned t o hi m. I ' m not - - I ' m not awar e of t he t ot al
number s.
Q. About 90 per cent of i t . So he woul d not have t o pay t he
at t or ney, I gat her , cor r ect?
A. (No audi bl e response. )
Q. So t he l i t i gat i on woul dn' t cont i nue t he at t or ney' s f ees. I t
was more of a set t l ement f or conveni ence, corr ect?
A. I cannot answer that . I don' t know.
Q. You di dn' t r evi ew t he document s?
A. Not regardi ng t hat case.
Q. You di dn' t r evi ew t he paper s and t he moni es t hat wer e gi ven
back t o Mr . Lust gar t en?
A. I n that case not al l of them.
Q. And i n f act , t hat ' s a par t of what t hi s i ndi ct ment i s about , i s
i t not ?
A. I t i s.
Q. I t i s the l i t i gat i on i n Rosemount , cor r ect ?
A. That ' s cor rect .
Q. So i t ' s your upset of gi vi ng back 90 per cent of t he moni es
sei zed f r om Mr . Lust gar t en t hat cont i nued on wi t h t hi s f r om 2009 t o
t he pr esent , cor r ect ?
A. That ' s not cor r ect .
Q. Mr . Lust gar t en has a company cal l ed Henl ux, cor r ect ?
A. Yes.
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Q. And Henl ux i s a f i nanci ng company, cor r ect ?
A. I bel i eve i t ' s purchase order f i nanci ng.
Q. Purchase order f i nanci ng.
And that i s what t he pr osecut or spoke to when he got up here i n
maki ng hi s pr of f er .
And t hat i s i f you ar e doi ng busi ness i n a f or ei gn count r y, you
can' t get pai d r i ght away, cor r ect ?
A. Not i n al l f or ei gn count r i es.
Q. Venezuel a, par t i cul ar l y?
A. Par t i cul ar l y, yes, there i s cur r ency cont rol s .
Q. I f you ar e sendi ng goods t o Venezuel a, you can' t get pai d by
t he i mport er i mmedi atel y, can you?
A. As I unders tand i t , that ' s cor rect .
Q. So i t has t o be f i nanced, cor r ect? I f you need f i nanci ng,
correct?
A. You woul d need t o do so on t he bl ack mar ket .
Q. So i f I ' m an Amer i can and I ' m sendi ng goods t o Venezuel a and I
want t o get pai d f or t hose goods, I woul d go t o somebody who can do
f i nanci ng, cor r ect ?
A. (No audi bl e response. )
Q. That ' s cal l ed t r ade f i nanci ng?
A. Yes.
Q. And i n f act , t hat ' s what Mr . Lustgar t en' s busi ness i s i n
Venezuel a and i n ot her pl aces, cor r ect ?
A. He procl ai med i t to be.
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Q. And i n f act, we have t o deal wi t h l ot s of document s, cor r ect?
Fi nanci al document s, cor r ect ?
A. Gener al l y.
Q. I n t hi s case?
A. Yes.
Q. And i n t hi s case, t her e ar e l ot s of f i nanci al document s,
correct?
A. That i s cor rect .
Q. And t hey deal wi t h ar e numer ous cor por at i ons, cor r ect ?
A. That ' s cor rect .
Q. And numer ous i ndi vi dual s, cor r ect?
A. That ' s cor rect .
Q. And t her e i s a gent l eman by t he name of Bendayan, cor r ect ?
A. Yes.
Q. And he i s somebody who you have your si ght s on, cor r ect ?
A. That ' s cor rect .
Q. And he was r unni ng a bi g gr oup of peopl e, cor r ect ?
A. He was i nvol ved t he conspi r acy.
Q. And you got sear ch war r ant s - - or excuse me - - Ti t l e 3s, t he
wi r et ap or der s f or Mr . Bendayan, cor r ect ?
A. I was not t he af f i ant .
Q. You, meani ng, your gr oup, your agency, cor r ect ?
A. That ' s cor rect .
Q. And you got i t agai nst ot her peopl e, di d you not ?
A. Yes, si r .
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Q. You never got one f or any phones t hat deal wi t h Mr . Lust gar t en,
correct?
A. I don' t bel i eve so.
Q. You don' t bel i eve you di d, di d you?
A. I don' t bel i eve so.
Q. Okay. And you di d over hear cer t ai n conver sat i ons, t hough,
between t hi s Bendayan and Mr . Lust gart en, corr ect ?
A. That ' s cor rect .
Q. And one of t hose conver sat i ons, i n f act, you put bef or e t he
gr and j ur y, cor r ect ?
A. That ' s cor rect .
Q. Now, you say you don' t speak Spani sh; i s t hat cor r ect ?
A. That i s cor rect .
Q. Numer ous of t hose cal l s wer e i n Spani sh, cor r ect ?
A. That ' s cor rect .
Q. Some wer e i n Hebr ew, cor r ect ?
A. That ' s cor rect .
Q. Do you under st and what Kosher means?
A. I under st and i t t o be good, or r el at i vel y speaki ng, okay.
Q. I t i s a di et ar y l aw, cor r ect ?
A. I bel i eve so.
Q. Okay. And when somebody i s doi ng somet hi ng Kosher , t hey ar e
doi ng i t pr oper l y, cor r ect l y accor di ng t o l aw, cor r ect ?
A. Yes.
Q. And i n f act , you hear d t hat conver sat i on bet ween Mr . Lust gar t en
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Dej oy and Mr . Lust gart en - -
A. Yes.
Q. - - under t hese f i nanci al t ransact i ons?
A. Yes.
THE COURT: So i s t hat what t he obst r uct i on charge i s based
upon that he was pr ovi di ng i nf ormat i on t hat t he Gover nment bel i eves
was f al se?
THE WI TNESS: Yes, t hat ' s cor r ect .
BY MR. DI AMOND:
Q. And t her e wer e ot her occasi ons when he wor ked wi t h Mr . Dej oy
t hat r el at ed t o anot her t r ansact i on t hat you saw hi m - - di d you see
hi m i n Col ombi a?
A. That ' s cor r ect . I di d.
Q. Okay. And at t hat t i me, Mr . Lust gar t en was wi t h a gr oup of
peopl e, cor r ect ?
A. That ' s cor rect .
Q. And t hat was, what , Sept ember of l ast year ?
A. Yes.
Q. And t hen, he saw you and he cal l ed you out ?
A. Yes.
Q. And that he knew you because he had been wi t h you and Mr . Dej oy
bef or e, cor r ect ?
A. That ' s cor rect .
Q. And he came and, t hen, when he cal l ed you out you went out si de
and di scussed t hi ngs wi t h hi m?
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A. That ' s cor rect .
Q. And t hese i nf or mant t hi ngs bet ween agent s are somewhat t ouchy
ar e t hey not?
A. (No audi bl e response. )
Q. I f you have a CS and someone el se has a CS, you do not nor mal l y
st ep on t he ot her guy' s CS, cor r ect ?
A. That ' s cor rect .
Q. I nf or mat i on i s not pr ovi ded bet ween agent s, necessar i l y, except
on a need- t o- know basi s, cor r ect ?
A. That ' s cor rect .
Q. Okay. That ' s why you ar e cal l ed a cont r ol agent and Mr . Dej oy
woul d be cal l ed a cont r ol agent , cor r ect ?
A. That ' s cor rect .
Q. And Mr . Dej oy was a cont r ol agent as i t r el at ed t o Mr .
Lust gar t en, cor r ect ?
A. I knew t hat Mr . Dej oy was t he pr i mar y cont act f or Mr .
Lust gar t en.
Q. And when you saw Mr . Lust gar t en at a hot el i n Col ombi a, he
cal l ed you out and you spoke, cor r ect ?
A. That ' s cor rect .
Q. And he t hought t hat t her e was somet hi ng wr ong wi t h t hat
t r ansacti on, cor r ect?
A. What do you mean?
Q. The t r ansact i on he was i n Col ombi a t o deal wi t h?
A. I ' m not c l ear on your quest i on.
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Q. I n your r epor t - -
A. Yes.
Q. He i ndi cat ed t hat he t ol d you - - excuse me - - I t hi nk you even
t est i f i ed t o i t i n t he gr and j ur y.
That he t ol d you he woul d be cont act i ng you because he di dn' t
l i ke t hi s par t i cul ar t r ansact i on, cor r ect?
A. He sai d t hat at t hat poi nt i n t i me, he was goi ng t o be - - he
was meet i ng wi t h t hese peopl e.
And that what we had j ust seen that he was openi ng bags, but he
was goi ng t o af t er - t he- f act , even t hough he had opened an account ,
he woul d r each out t o Br i an Dej oy.
Q. Because i t was not Kosher or a hundr ed per cent by t he book,
correct?
A. Meani ng, he sai d he was goi ng t o r el ay t he i nf or mat i on. I ' m
not awar e of i t .
MR. DI AMOND: I f I coul d j ust have one moment , pl ease.
I don' t have anyt hi ng f ur t her wi t h t hi s wi t ness.
THE COURT: Any quest i ons f r om t he Government ?
MR. PALAZZO: No, Your Honor .
THE COURT: Thank you very much, Agent Lavoi e.
Anythi ng el se f r omt he Gover nment ?
MR. PALAZZO: Yes, Your Honor . I j ust want t o make t wo
poi nt s.
The f i r st , I j ust want t o r emi nd t he Cour t t hat t he r eason
t hat Mr . Lust gar t en i s her e t oday i s because t he Di st r i ct Cour t i n
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Bost on f ound pr obabl e cause on al l or - - sorr y - - t he gr and j ur y
si t t i ng i n t he Di st r i ct of Massachuset t s f ound t her e t o be pr obabl e
cause t o br i ng t hese char ges, al l t hr ee.
And i n addi t i on, I t hi nk I may have mi sspoken ear l i er when
I sai d t hat t he Government bel i eves t hat some of t he st atement s t hat
Mr . Lust gar t en made t o DEA t hat we bel i eved t hey were f al se, t he
Government knows t hose st atement s t o be f al se.
Mr . Lust gar t en was t el l i ng pot ent i al cl i ent s t hat he had
t he bl essi ngs of DEA t o do al l ki nds of f i nanci al t r ansact i ons t hat
he di d not have permi ssi on t o do.
THE COURT: Okay.
MR. DI AMOND: I t hi nk t hat probabl y woul d come best f r om my
cl i ent , but what I am goi ng t o ask the Cour t t o do i s t o accept t he
r ecommendat i on of Pr et r i al Ser vi ces i n t hei r r epor t .
I have bef or e t he Cour t , i f t he Cour t want s t o hear i t at
t hi s t i me, i n r egar ds t o t i es t o t he communi t y. I have pr esent i n
t he cour t r oom numerous peopl e who st and behi nd Mr . Lust gart en.
THE COURT: What al t ernat i ve do I have t o det ent i on as i t
r el at es t o hi m?
MR. DI AMOND: I t hi nk t he Cour t shoul d f ol l ow t he
r ecommendat i on of t he Pr et r i al Ser vi ces r epor t and t hat i s a
percent age bond i s r espect f ul l y recommended wi t h t he f ol l owi ng
speci al condi t i ons.
And I t hi nk t hat t her e ar e condi t i ons, i ncl udi ng t he
el ect r oni c moni t or i ng, whi ch i s not ment i oned her e. I t i s j ust t hi s
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i s a compl ex case, as t he Cour t can see. Ther e ar e subst ant i al t i es
between r el at i ves and f r i ends, besi des t he home that he owns and has
owned f or a subst ant i al per i od of t i me.
So I woul d ask t he Cour t t o set a bond, a r easonabl e bond
wi t h such condi t i ons as t he Cour t deems necessary as i ndi cated by
Pr et r i al Ser vi ces Repor t as di r ect ed. Sur r ender t r avel document s.
They have al r eady been surr ender ed.
Not vi si t i ng any t r anspor t at i on est abl i shment s. That ' s not
a pr obl em at al l . And r esi de at t he r esi dence wi t h a cur f ew, but at
l east gi ve me the oppor t uni t y t o wor k wi t h hi m f or a def ense of a
ver y compl ex case.
I t was j ust di f f i cul t enough i n t he l ast coupl e of days f or
me t o go t hrough document s wi t h hi m because of t he manner i n whi ch
he i s bei ng housed. And t hat t r avel be ext ended si mpl y between t he
Sout her n Di st r i ct of Fl or i da and Massachuset t s and nowher e el se.
THE COURT: And what about hi s i mmi grat i on st at us and t he
f act t hat he has Venezuel an ci t i zenshi p.
MR. DI AMOND: We are pr epared t o deal wi t h, i f he post s
bond her e, t o deal wi t h i t at Kr ome wi t h an i mmi gr at i on j udge. I ' ve
done t hi s i n t he past .
THE COURT: What about hi s Venezuel an ci t i zenshi p? Doesn' t
t hat pose a pr obl em f or ext r adi t i on?
MR. DI AMOND: Absol utel y not .
He has a vi sa and t hey wi l l ext r adi t e i n a hear t beat .
Par t i cul ar l y i n a case l i ke t hi s . Par t i cul ar l y i n a case l i ke t hi s
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Col ombi a.
Theref or e, t hi s i s not a man t hat comes bef ore t he Cour t
very of t en. He has t r emendous f i nanci al means and he has a net work
of cont act s al l ar ound t he wor l d t hat wi l l i mmedi at el y hel p hi m
abscond f r om t he Uni t ed St at es i f he i s not det ai ned.
THE COURT: Oh, I t hi nk I may have asked you. What t i es
does he have t o t he Di st r i ct of Massachuset t s?
MR. DI AMOND: He has a daughter t hat goes t o school t here.
THE COURT: What do you mean goes t o school t her e?
MR. DI AMOND: Bost on Uni ver si t y.
THE COURT: Any ot her asset s or does he have peopl e l i vi ng
t her e?
MR. DI AMOND: Asset s her e, no.
THE COURT: Okay.
MR. DI AMOND: Hi s asset s are her e; a home.
Hi s f at her - i n- l aw i s her e and i s wi l l i ng t o si gn. Ther e
ar e pl ent y of co- sur et i es t hat ar e her e and t her e i s an out pour i ng
of peopl e who have come her e. I t hi nk every one of t hem i s pr epared
t o si gn.
MR. PALAZZO: Your Honor, hi s assets ar e not j ust here i n
Sout h Fl or i da or i n t he Uni t ed St at es.
He has asset s i n at l east t hr ee cont i nent s t hat we know of ,
at t hi s poi nt . He has access t o mi l l i ons of dol l ar s. Ther e i s no
amount of money - - he i s f aci ng 20 year s i n pr i son. Ther e i s no
amount of money t hat he woul d not be wi l l i ng to gi ve up i n or der t o
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busi ness t hat was desi gned t o get around Venezuel an money, curr ency
l aws.
MR. PALAZZO: Wel l , Your Honor , t hat i s an i nt er est i ng
t heor y, but I don' t know of any t r ack recor d i n r ecent year s of any
ext r adi t ees f r om Venezuel a.
And par t and parcel wi t h the scheme t hat t he Gover nment has
evi dence on i s t hat Mr . Lust gar t en i s wor ki ng wi t h par ami l i t ar y
or gani zat i ons and car t el s t hat cont r ol par t s of Venezuel a and
Col ombi a.
As t he Cour t i s wel l aware, t he Government of Col ombi a and
Venezuel a don' t necessar i l y gover n al l t er r i t or i es t her e. And i n
f act , some of t he moni es t hat he i s accused of l aunder i ng f ur t her s
t hese endeavor s out si de t he bi g ci t i es i n Venezuel a.
MR. DI AMOND: I di d not hear any of t hat f r om t he agent i f
t hey had t hat .
To me i t i s j ust t ot al f ant asy. To me i t i s t hrow what ever
you can at a Cour t t o keep a per son who i s accused. To keep a
per son who i s not gui l t y, as he st ands bef or e t hi s Cour t , t o keep
hi m l ocked up and put as much pressure as you can on hi m.
I t hi nk i t ' s l aughabl e t hat t he agent ' s t est i mony i s t hat
i t i s not even dr ug money. That i t i s money t hat was par t of a
t r ade si t uat i on. And t hat ' s what t hey t al k about i n t hei r - - I j ust
got some of t he paperwork.
There i s ki t chen equi pment bei ng sol d t o Venezuel a. I t was
t hat t ype of t hi ng. I t was heavy dut y equi pment . That t ype of
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t hi ng and I amj ust goi ng t hr ough i t . I mean, dr ug money comes i nt o
i t because i t i s an easy thi ng t o say and i t i s an easy thi ng t o get
a Cour t upset over , but t here has been no showi ng of t hat . None.
MR. PALAZZO: Your Honor , t her e has been a showi ng of
pr obabl e cause i n Massachuset t s t hat he was l aunderi ng t ens of
mi l l i ons of dol l ar s f or dr ug car t el s.
THE COURT: Okay. The quest i on f or me i s r eal l y, as I si t
her e on behal f of t he Di st r i ct of Massachuset t s, i s whet her or not
t her e i s suf f i ci ent t i es or means of secur i ng t he Def endant ' s
appearance i n Massachuset t s because t hat i s where the i ndi ct ment i s
based out of .
Rat her t he gr and j ur y, t he Di st r i ct of Massachuset t s has
accused hi m of pr ovi di ng f al se i nf or mat i on i n t hat di st r i ct but i n
addi t i on, di st r i but i ng money, l aunder i ng pr oceeds i n connect i on wi t h
dr ug t r af f i cki ng acti vi t i es i n vi ol at i on of f eder al l aw.
Now, gi ven t he f act t hat he has no cr i mi nal hi st or y, even
i n a money l aunder i ng case of t en a bond i s grant ed i n a case.
Al t hough, t hi s case i nvol ves a subst ant i al amount of money, f ar mor e
t han I have ever seen, number one.
Mor e i mpor t ant l y t han t hat , t her e ar e si gni f i cant f or ei gn
t i es t hat t he Def endant has i ncl udi ng t o - - al t hough, I hear what
Mr . Di amond has t o say about i t , but t her e i s never t hel ess a concer n
t hat i f he wer e t o f l ee, he woul d not be ext r adi t abl e gi ven t he
gover nment al si t uat i on i n Venezuel a.
So at t hi s poi nt , what I am goi ng t o do, I am goi ng t o - - I
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coul d see t hough, where a cour t coul d f ashi on by maybe t here i s some
way t o house hi m i n Massachuset t s pendi ng t he dur at i on of t he bond
wher e t he cour t i n Massachuset t s may deci de t hat t hey can come up
wi t h an al t er nat i ve t o det ent i on i f he i s adequat el y secur ed up
t her e. I t i s possi bl e i f t hat i s t he case i n a money l aunder i ng
case. I don' t know.
So j ust based upon t he i nf ormat i on that has been pr esent ed
t o me, gi ven t he extensi ve f or ei gn t i es and t he nat ur e of t he
pr oceedi ngs, I t hi nk ther e i s a suf f i ci ent basi s t o hol d hi m
st r i ct l y as a r i sk of f l i ght .
And al so, gi ven t he amount of money i nvol ved f or whi ch
$100, 000 cor por at e suret y bond woul d not be suf f i ci ent .
MR. DI AMOND: Wel l , I can' t - -
THE COURT: So I wi l l grant t he Government ' s mot i on f or
det ent i on based on r i sk of f l i ght at t hi s poi nt i n t i me.
You have a r i ght t o appeal t hat deci si on, Mr . Lust gar t en,
i n Massachuset t s. And t he cour t i n Massachuset t s coul d cer t ai nl y
l ook at your case and deci de t hat i t i s not deservi ng of det ent i on.
Especi al l y, i f i n t he i nt er i m per i od you ar e abl e t o
pr esent evi dence t hat under mi nes the gr and j ur y' s i ndi ct ment . Al l I
have i s what i s i n f r ont of me and t he al l egat i on of t he Gover nment
and t he gr and j ur y t hat i s i n f r ont of me.
So i f t he cour t i n Massachuset t s want s t o change my or der,
t hey cer t ai nl y have t hat r i ght and j ur i sdi ct i on t o do so, but i n t he
meant i me, I amgoi ng t o gr ant t he Government ' s mot i on.
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MR. DI AMOND: What I was goi ng t o suggest was, t hen, mor e
t han $100, 0000 t hat t he Cour t has t al ked about .
He has hi s whol e f ami l y her e al l wi l l i ng t o si gn. He i s
never goi ng t o do t hat t o hi s f ami l y. He i s goi ng t o see t hi s t hi ng
t hr ough. Par t i cul ar l y when you see t he af f i davi t s and t he document s
and t he paperwork. I t makes no sense. He want s t o see i t t hr ough.
He saw i t t hr ough i n 2009.
THE COURT: I hear you, but I t hi nk a suf f i ci ent case has
been made and I t hi nk t hat you shoul d pr esent t hat argument t o t he
Di st r i ct of Massachuset t s, okay.
MR. DI AMOND: Thank you, Your Honor .
THE COURT: Si gn t he wai ver . Mr . Di amond i s havi ng hi m
si gn t he wai ver .
Are we done? Okay.
( Ther eupon, t he pr oceedi ngs concl uded. )
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CERTI FI CATE
I her eby cer t i f y t hat t he f or egoi ng t r anscr i pt i s
an accur at e t r anscr i pt of t he audi o recor ded pr oceedi ngs i n t he
above- ent i t l ed mat t er .
04/ 24/ 15 Bonni e J oy Lewi s ,Regi st er ed Pr of essi onal Repor t er CASE LAW REPORTI NG, I NC. 7001 Sout hwest 13 St r eet , Pembr oke Pi nes, Fl or i da 33023 954- 985- 8875