United States v. Boustani

356 F. Supp. 3d 246
CourtDistrict Court, E.D. New York
DecidedFebruary 4, 2019
Docket18-CR-681 (WFK)
StatusPublished
Cited by2 cases

This text of 356 F. Supp. 3d 246 (United States v. Boustani) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Boustani, 356 F. Supp. 3d 246 (E.D.N.Y. 2019).

Opinion

WILLIAM F. KUNTZ, II United States District Judge

On January 8, 2019, the defendant Jean Boustani ("Defendant") filed a motion for appeal of Magistrate Judge Peggy Kuo's Order of Detention filed on January 2, 2019. Magistrate Judge Kuo, finding Defendant failed to present credible sureties to ensure his appearance and the safety of the community, ordered detention and granted leave to renew the bail application. This Court held oral argument on the motion on January 22, 2019. For the reasons stated below, Defendant's appeal is DENIED.

BACKGROUND

On December 19, 2018, the United States of America (the "Government") filed a four-count indictment (the "Indictment") charging Defendant and others in connection with a $ 2 billion fraud, bribery, and money laundering scheme. The Indictment charges Defendant with the following crimes: (1) conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349 ; (2) conspiracy to commit securities fraud in violation of 18 U.S.C.§ 371 ; and (3) conspiracy to commit money laundering in violation of 18 U.S.C. § 1956(h). See Indictment, ECF No. 1. The Government alleges Defendant "was a central organizing figure in a $ 2 billion fraud, bribery and money laundering scheme that resulted in the payment of at least S200 million in bribes and kickbacks to government officials in Mozambique and to investment bankers." Gov.'s's Opp'n to Def.'s Renewed Appl. for Bail ("Gov.'s Opp'n") at 1, ECF No. 27.

Defendant is, at 40 years of age, a wealthy international businessman. He is a citizen of Lebanon, Antigua, and Barbuda and has no ties to the United States. On January 2, 2019, Defendant, while en route to the Dominican Republic with his wife, was arrested by Dominican authorities and transferred to the United States, pursuant to the Indictment. He was arraigned later that day before Magistrate Judge Kuo and presented a bail application consisting of $ 2 million dollars cash and a dollar amount on the bond to be determined by the Court. January 2, 2019 Minute Entry, ECF No. 15. The Government opposed Defendant's bail application based on risk of flight. Id. After hearing argument from both parties, Magistrate Judge Kuo ordered detention and granted Defendant leave to renew his bail application. See id. ; Order of Detention, ECF No. 16.

*250In a letter dated January 8, 2019, Defendant filed a motion appealing this detention order to the district court. Def.'s Renewed Appl. for Bail ("Def.'s Appeal"), ECF No. 21. The Government filed its opposition brief on January 16, 2019. See Gov.'s Opp'n. Defendant filed its reply brief on January 18, 2019. See Def.'s Reply in Support of Renewed Appl. for Bail ("Def.'s Reply"), ECF No. 29. This Court then heard oral argument on the application on January 22, 2019. The Court further directed the parties to submit proposed findings of fact and conclusions of law.

The defense now proposes the following bail conditions:

• A $ 20 million personal recognizance bond, secured by $ 1 million cash
• Travel restricted to the Eastern and Southern Districts of New York;
• Surrender of all travel documents with no new applications1 ;
• Surrender of all travel documents of Defendant's wife to the FBI, with no new applications;
• Strict supervision by Pretrial Services;
• Home confinement with GPS monitoring to be secured by security company Guidepost Solutions2 , along with additional restrictions:
? 24-hour armed former or off-duty law enforcement officers;
? Two officers per shift;
? One supervisory security professional overseeing and scheduling the security detail, who shall take directions from, and reports to, the Government and Pretrial Services;
? Surveillance and security technology3 throughout the residence;
? Visitors limited to Defendant's attorneys and his immediate family except upon application to Pretrial Services and the Government;
? Travel limited to Court appearances and to counsel's office, except upon application to Pretrial Services and the Government, with two officers to accompany Defendant during all such travel;
? A security vehicle and driver for travels to Court or to counsel's office, when needed;
? Security personnel posted at the residence whenever Defendant leaves the unit; and
? Communication between Guidepost and Pretrial Services, the Court and/or the U.S. Attorney's Office, if required by the Court. Def.'s Proposed Findings of Fact and Conclusions of Law ("Def.'s Mem.") Ex. A ¶ 5, ECF No 36-1.

Defendant also signed a declaration consenting to any and all actions taken by Guidepost, including the use of force, and *251waiving his right to bring any action against Guidepost, the Court, the United States Government, and/or any other party in connection with any risks or dangers associated with his release. See Def.'s Mem. Ex. 4.

In support of its bail proposal, the defense argues: "Given the proposed bail conditions render it impossible for [Defendant] to flee, there is no lawful basis for his continued detention." Def.'s Appeal at 15.

The Government opposes pre-trial release, arguing: "the defendant is a flight risk with access to significant financial resources and no ties to the United States, and no condition or combination of conditions of release can reasonably assure the appearance of the defendant." Gov.'s Proposed Findings of Fact and Conclusions of Law ("Gov.'s Mem.") at 1, ECF No. 35.

LEGAL STANDARDS

The Eighth Amendment to the United States Constitution provides that "[e]xcessive bail shall not be required." U.S. Const. amend. VIII. It does not create a right to bail; rather, it prohibits excessive bail. See United States v. Salerno , 481 U.S. 739, 754-55, 107 S.Ct. 2095

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Related

United States v. Zhang
55 F.4th 141 (Second Circuit, 2022)
United States v. Boustani
932 F.3d 79 (Second Circuit, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
356 F. Supp. 3d 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-boustani-nyed-2019.