United States v. Mallory

337 F. Supp. 3d 621
CourtDistrict Court, E.D. Virginia
DecidedSeptember 27, 2018
DocketCriminal No. 1:17-CR-154
StatusPublished
Cited by1 cases

This text of 337 F. Supp. 3d 621 (United States v. Mallory) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Mallory, 337 F. Supp. 3d 621 (E.D. Va. 2018).

Opinion

MEMORANDUM OPINION

T.S. Ellis, III, United States District Judge *625Following a four-day trial, a jury convicted defendant of the following four counts of the indictment:

Count 1: conspiracy to gather or deliver defense information to aid a foreign government in violation of 18 U.S.C. § 794(c) ;
Count 2: delivery of defense information to aid a foreign government in violation of 18 U.S.C. § 794(a) ;
Count 3: attempted delivery of defense information to aid a foreign government in violation of 18 U.S.C. § 794(a) ; and
Count 4: making material false statements in violation of 18 U.S.C. § 1001(a)(2).

Post-trial, defendant moved for judgment of acquittal with respect to Counts 2 and 3 on the ground that the government had failed to prove venue. The jury was not instructed on venue, nor did it render any verdict on venue. Following briefing, Counts 2 and 3 were dismissed by Memorandum Opinion ("the Memorandum Opinion") and Order dated July 26, 2018. United States v. Mallory , 337 F. Supp. 3d 621, 2018 WL 4658680 (E.D. Va. 2018) ; United States v. Mallory , No. 1:17-cr-00154-TSE-1, Order, ECF No. 202 (Jul. 26, 2018). The government has now filed a motion seeking reconsideration of this ruling. Because the government's motion discloses no clear error of law in the Memorandum Opinion, the government's Motion for Reconsideration must be denied.

I.

The pertinent facts are fully set out in the Memorandum Opinion. See United States v. Mallory , 337 F.Supp. 3d 621, ----, 2018 WL 4658680 (E.D. Va. 2018). The facts relevant to resolving the government's motion are briefly recited here.

In February 2017, defendant, a former CIA and Defense Intelligence Agency operative and contractor, made contact via Skype with Michael Yang, a citizen of the People's Republic of China ("the PRC") who defendant believed was an intelligence officer for the PRC intelligence service. Defendant learned that Yang was interested in obtaining information on various subjects involving National Defense Information ("NDI"), including the United States' THAAD missile defense system, the South China Sea, currency manipulation by the PRC, and public-private partnerships. Following this Skype conversation, defendant and Yang arranged for defendant to travel to the PRC in March and April 2017 to meet in person. During the April 2017 trip, Yang provided defendant with a Samsung Galaxy Note 4 smartphone, which defendant described as a covert communications device ("CovCom device"). This CovCom device included a custom application that allowed defendant to send encrypted communications to Yang through WeChat, a program that was loaded on the CovCom device.

On April 25, 2017, defendant visited a FedEx store at a location near his home in Leesburg, Virginia. During this trip, defendant handed a FedEx clerk nine stacks of documents, some of which contained NDI, to be scanned onto an SD card, a digital storage device. After the scan was complete, defendant directed the FedEx clerk to shred the documents. Defendant then returned to his home in Leesburg and hid the SD card in a junk drawer in his closet.

Shortly before midnight on May 1, 2017 and just after midnight on May 2, 2017, defendant completed all the steps necessary to transmit documents containing NDI to Yang in the PRC via the CovCom *626device. Yang acknowledged that he had successfully received the documents. A few days later, on May 5, 2017 defendant completed the steps on the CovCom device necessary to transmit two additional documents containing NDI to Yang in the PRC. The evidence does not disclose whether Yang received the documents defendant attempted to send on May 5.

After these transmissions and attempted transmissions, defendant met with the CIA and FBI agents in Virginia on May 12, 2017 and May 24, 2017, respectively. Defendant scheduled the meetings on these dates to accommodate his shoulder surgery, which occurred in early May. In these meetings, defendant described some of his contacts with Yang and showed the CovCom device to FBI agents and demonstrated its operation. On June 22, 2017, defendant was arrested in the Eastern District of Virginia.

In its motion for reconsideration, the government maintains that these facts are sufficient to establish venue in the Eastern District of Virginia for Counts 2 and 3.1 Specifically, the government argues that the evidence warrants the inference that defendant transmitted and attempted to transmit the NDI from his home in the Eastern District of Virginia. Alternatively, the government argues, for the first time here, that venue is proper under 18 U.S.C. § 3238 because the evidence shows that the successful transmission of NDI occurred in the PRC, establishing venue for Count 2 in the Eastern District of Virginia, where defendant was arrested. Finally, the government argues, as it did in its original motion, that defendant's trip to the FedEx store in the Eastern District of Virginia constituted a substantial step, establishing proper venue for Count 3. Each of these arguments is addressed below.

II.

As an initial matter, the government's motion failed to address the standard that must be met to warrant the filing of a motion for reconsideration. When a party in a criminal case moves for reconsideration, it is within the sole discretion of the district court to determine whether it is appropriate to grant the motion. United States v. Dickerson , 971 F.Supp. 1023, 1024 (E.D. Va. 1997) (citing Boryan v. United States , 884 F.2d 767, 771 (4th Cir. 1989) ). Because there is no provision in the

Related

United States v. Mallory
343 F. Supp. 3d 570 (E.D. Virginia, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
337 F. Supp. 3d 621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-mallory-vaed-2018.