United States District Court, W.D. Washington, Seattle
S. Mahler, WSBA #23913 FOSTER PEPPER PLLC Attorneys for
[PROPOSED] ORDER GRANTING
DEFENDANT LOBSANG DARGEY'S UNOPPOSED MOTION TO AMEND THE
JUDGMENT AND ORDER OF RESTITUTION
S. LASNIK, UNITED STATES DISTRICT JUDGE
CAUSE came before the Court on Defendant, Lobsang
Dargey's, Unopposed Motion to Amend the Judgment and
Order of Restitution. The Court having considered the Motion,
finds as follows:
Pursuant to a plea agreement, on January 4, 2017 Defendant
pleaded guilty to one count of conspiracy to commit wire
fraud and one count of engaging in a scheme to conceal
information from the United States, in violation of Title 18
U.S.C. §§ 371 and 1001(a)(1), respectively.
plea agreement provided, among other things:
Restitution. Defendant shall make restitution to the victims
of his offense in the amount of $24, 242, 220. This amount,
which reflects the loss to the victims of Defendant's
conduct, includes $111, 552-220 -in unauthorized commission
payments and syndication costs and $12, 690, 000 in
administrative fees paid by the immigrant investors.
Thirty-five (35) of the Tower investors were previously
refunded the full amount of their capital contribution, and
therefore, are entitled to $45, 000 each. representing their
administrative fees. The remaining 247 investors shall each
be entitled to receive total restitution of $91, 770, which
consists of (a) $46, 770 for commissions and syndication
costs, and (b) $45, 000 for administrative fees. This amount
shall be due and payable immediately and shall be paid in
accordance with a schedule of payments as proposed by the
United States Probation Office and ordered by the Court.
In the event that any investor is repaid an amount greater
than $453, 230 of the principal amount of Ms or her capital
contribution through returns on the investment or money
distributed by the Receiver, the $46, 770 portion of the
restitution obligation to that investor will be reduced by
the amount he or she received in excess of $453, 230, such
that an investor who is repaid his or her full $500, 000
capital contribution shall not be entitled to any restitution
for commissions and syndication costs. In addition, to the
extent any portion of the $45, 00.0 administrative fee is
returned to any investor, the $45, 000 portion of the
restitution obligation for that investor will be reduced
Plea Agreement at 11-12 (emphasis added).
Court's Order of Restitution incorporated this provision
of the Plea Agreement and specifically provided that
"[t]o the extent any portion of the $45, 000
administrative fee Is returned to any investor, the $45, 000
portion of the restitution obligation for that investor, and
the overall Administrative Fee obligation, is reduced
accordingly." Order of Restitution at 2 (Dkt.
25). Ten investors were known at the time to have received
refunds of their administrative fees and were, therefore.,
not entitled to receive additional restitution for those
fees. Id. The resulting total of restitution owed
for repayment of administrative fees came to $12, 195, 000.
addition, Defendant was ordered to repay $46, 770 to each of
247 investors in relation to the use of portions of their
capital contributions for payments of commissions and
syndication costs. This resulted in an additional amount of
restitution owing of $11, 552, 190. Id. at 6. These
repayments too, however, are subject to offsets in the event
any investor receives a return of their capital in excess of
the amount he or she is owed in restitution. Id. at
2. Because "[i]t is anticipated that it will take a
significant period of time for investors to receive
investment returns," id. at 2, the Court
ordered that "any payments the Defendant makes pursuant
to this Order [of Restitution] shall be used first to make
payments to investors to satisfy the Administrative Fee
Obligation” Id. at 3.
total amount of restitution due came to $23, 747, 190.
Id. at 1.
Court entered judgment accordingly and ordered Defendant to
pay restitution in the total amount of $23, 747, 190.
Judgment at 5, 6 (Dkt 26), 7. Subsequent to the
entry of Judgment and the Court's Order of Restitution,
counsel confirmed that six additional investors received full
refunds of their $45, 000 administrative fees. The refunds to
these investors results in an additional restitution offset
of $270, 000. This offset reduces the amount of
restitution owed for repayment of administrative fees from
$12 195, 000 to $11, 925, 000 and the total amount of
restitution from $23, 747, 190 to $23, 477, 190.
addition, subsequent to the entry of Judgment and the
Court's Order of Restitution, counsel discovered an error
in the amounts owed to two investors, LM and YY. The amounts
owed these investors were ...