Case 3:17-cr-00239-HZ Document 10 Filed 07/12/17 Page 1 of 6

PORTLAND MAIN OFFICE EUGENE BRANCH

l 000 SW Third Avenue, Suite 600 405 E 8th Avenue, Suite 2400
Portland, Oregon 97204 Eugene, Oregon 97401
(503) 727-1000 (541) 465-6771
www.usdoj.gov!usao/or

Scott E. Bradford U.S. DEPARTMENT OF JUSTICE MEDFORD BRANCH

Assistant U.S. Attorney United States Attorney's Office 310 West Sixth Street
Scott.Bradford@usdoj.gov District of Oregon Medford, Oregon 97501
(503) 727-1000 Billy J. Williams, United States Attorney . (541) 776-3564
Reply to Portland Office

June 16, 2017

Andrew Coit
Coit & Payment, P.C.
800 Willamette St, Suite 700
Eugene, Oregon 97 40 I

Re: United States v. Bradley Carter

Plea Agreement Letter

Dear Counsel:

1. Parties/Scope: This plea agreement is between this United States Attorney's Office
(USAO) and defendant, and thus does not bind any other federal, state, or local prosecuting,
administrative, or regulatory authority. This agreement does not apply to any charges other than
those specifically mentioned herein.

2. Charges: Defendant agrees to plead guilty to Count One of the Information in which
defendant is charged with fraud and related activity in connection with computers in violation of
18 U.S.C. 1030(a)(2), (c)(2)(B)(i), and (c)(2)(B)(ii).

3. Penalties: The maximum sentence for Count One is five years of imprisonment, a
$250,000 fine, three years of supervised release, and a $I 00 fee assessment. Defendant agrees to
pay the fee assessment by the time of entry of guilty plea or to explain to the Court why this
cannot be done.

4. Elements:

First, defendant intentionally accessed a computer without authorization; and

Second, by accessing a computer without authorization, defendant obtained information

from a computer that was used in or affected interstate or foreign commerce

5. Conduct: The parties agree that the following facts are true, can be proved beyond a
reasonable doubt, and are sufficient to support defendant's guilty plea to Count One of the
Information in the above-captioned case.
 Case 3:17-cr-00239-HZ Document 10 Filed 07/12/17 Page 2 of 6

Andrew Coit
Page2
June 12, 2017

On March 24, 27, and 28, 2016, defendant without authorization logged into the system
of a third party vender for Safeway that stored customer information, including personal
identifying information ("PII");

Defendant does not work for Safeway or Safeway's third party vendor;

Defendant obtained customers' PII from the third party vendor's system;

Impersonating a Safeway employee, defendant used that PII to make harassing phone
calls to Safeway customers;

Defendant recorded the harassing phone calls and posted them to various online forums,
including Y ouTube; and

Defendant committed the offense to help drive traffic to his YouTube channels, obtain
additional subscribers and page views, and secure additional advertising revenue. Thus,
he committed the crime for purposes of a commercial advantage and private financial
gain.

In addition, defendant committed the offense with the purpose of intruding upon Safeway
customers' private affairs and concerns in a way that would be offensive to a reasonable
person and also with the intent to use customer information that he stole to conduct
harassing phone calls, record them, and publicly post them to inflict severe emotional
distress on those individuals. Hence, defendant committed the offense in furtherance of
tortious acts in violation of the laws of Oregon, specifically, invasion of privacy and
intentional infliction of emotional distress.

6. No Prosecution: The USAO further agrees not to bring additional charges against
defendant in the District of Oregon arising out of this investigation, known to the USAO at the
time of this agreement.

7. Sentencing Factors: The parties agree that the Court must first determine the applicable
advisory guideline range, then determine a reasonable sentence considering that range and the
factors listed in 18 U.S.C. 3553(a). Where the parties agree that sentencing factors apply, such
agreement constitutes sufficient proof to satisfy the applicable evidentiary standard.

8. Relevant Conduct: The parties agree the loss associated with defendant's illegal
conduct is approximately $19,600.

9. Restitution: Pursuant to 18 U.S.C. 3663A, defendant agrees to pay $19,600 in

restitution to Safeway.
 Case 3:17-cr-00239-HZ Document 10 Filed 07/12/17 Page 3 of 6

Andrew Coit
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June 12, 2017

I 0. Sentencing Enhancements and Departures: The parties agree the following United
States Sentencing Guidelines ("Guidelines") provisions apply:

a. Section 2B 1. l(a)(2) - defendant's base offense level is 6;

b. Section 2B 1.1 (b)(I )(C) - because the loss is more than $15,000 but less than
$40,000, a 4-level increase is warranted;

c. Section 2B 1.1 (b )(2)(A)(i) because the offense involved more than I 0 victims, a
2-level increase applies: and

d. Section 2B 1.1 (b )( 17) - because defendant was convicted for an offense under 18
U.S.C. I 030 and the offense involved and intent to obtain personal information,
a 2-level increase applies.

11. Acceptance of Responsibility: Defendant must demonstrate to the Court that defendant
fully admits and accepts responsibility under U.S.S.G. 3E1.1 for defendant's unlawful conduct
in this case. If defendant does so, the USAO will recommend a three-level reduction in
defendant's offense level (two levels if defendant's offense level is less than 16). The USAO
reserves the right to change this recommendation if defendant, between plea and sentencing,
commits any criminal offense, obstructs or attempts to obstruct justice as explained in U.S.S.G.
3C1.1, or acts inconsistently with acceptance ofresponsibility as explained in U.S.S.G. 3El .1.

12. Additional Departures, Adjustments, or Variances: The USAO agrees not to seek any
upward departures, adjustments, or variances to the advisory sentencing guideline range, or to
seek a sentence in excess of that range, except as specified in this agreement. Defendant agrees
not to seek any downward depmiures, adjustments, or variances to the advisory sentencing
guideline range under the sentencing guidelines provisions, except as specified in this agreement.
Defendant reserves the right to argue for any sentence defendant feels appropriate under the
factors set forth in 18 U.S.C. 3553, and the USAO reserves the right to oppose any sentence
defendant requests. Defendant further agrees that defendant will provide the government with
notice of: (1) the factual basis for any such sentence; (2) any evidence defendant intends to
introduce or rely upon at the sentencing hearing; and (3) any witnesses, including expert
witnesses, defendant intends to call or rely upon at the sentencing hearing. Such notice must be
provided to the government no later than the Wednesday prior to the week during which the
sentencing hearing is scheduled. Defendant agrees that if defendant fails to comply with this
notice requirement, defendant will not oppose a government motion for a postponement of the
sentencing hearing.

13. Early Resolution: If the defendant accepts this offer and enters a guilty plea by July 15,
2017, and foregoes all pretrial litigation, the government will recommend an additional 1-level
 Case 3:17-cr-00239-HZ Document 10 Filed 07/12/17 Page 4 of 6

Andrew Coit
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June 12, 2017

decrease in the offense level to recognize defendant's early resolution and to achieve a
reasonable sentence under the factors listed in 18 U.S.C. 3553(a).

14. Low End Range: The USAO will recommend the low end of the applicable guideline
range as long as defendant demonstrates an acceptance of responsibility as explained above.

15. Waiver of Appeal/Post-Conviction Relief: So long as the Court does not sentence
defendant to a term of incarceration which exceeds the statutory maximum, he agrees to waive
all rights he would otherwise have to appeal his convictions or sentence on any ground
whatsoever. Defendant also agrees not to file a habeas petition under 28 U.S.C. 2255, or any
other similar post-conviction petition or motion, on any ground, except for ineffective assistance
of counsel or retroactive amendments to the Guidelines. Should defendant seek an appeal,
despite this waiver, the USAO may take any position on any issue on appeal.

16. Disclosure of Financial Information: Defendant agrees fully to disclose all assets in
which defendant has any interest or over which defendant exercises control, directly or
indirectly, including those held by a spouse, nominee or third party. Defendant agrees to
truthfully complete the Financial Disclosure Statement provided herein by the earlier of 14 days
from defendant's signature on this plea agreement or the date of defendant's entry of a guilty
plea, sign it under penalty of perjury and provide it to both the United States Attorney's Office
and the United States Probation Office. Defendant agrees to provide updates with any material
changes in circumstances, as described in 18 U.S.C. 3664(k), within seven days of the event
giving rise to the changed circumstances.

Defendant expressly authorizes the U.S. Attorney's Office to obtain a credit report on defendant.
Defendant agrees to provide waivers, consents, or releases requested by the U.S. Attorney's
Office to access records to verify the financial information. Defendant also authorizes the U.S.
Attorney's Office to inspect and copy all financial documents and information held by the U.S.
Probation Office.

The parties agree that defendant's failure to timely and accurately complete and sign the
Financial Disclosure Statement, and any update thereto, may, in addition to any other penalty or
remedy, constitute defendant's failure to accept responsibility under U.S.S.G 3El .1.

17. Transfer of Assets: Defendant agrees to notify the Financial Litigation Unit of the
United States Attorney's Office before defendant transfers any interest in property with a value
exceeding $1,000 owned directly or indirectly, individually, or jointly, by defendant, including
any interest held or owned under any name, including trusts, partnerships and corporations.

18. Restitution Delineated: The Court shall order restitution to each victim in the full
amount of each victim's losses as determined by the Comt. Defendant agrees to pay restitution
 Case 3:17-cr-00239-HZ Document 10 Filed 07/12/17 Page 5 of 6

Andrew Coit
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June 12, 2017

for all losses caused by defendant's conduct, regardless of whether counts of the indictment or
information dealing with such losses will be dismissed as part of this plea agreement.

Defendant understands and agrees that the total amount of any monetary judgment that the Court
orders defendant to pay will be due and payable immediately. Defendant further understands
and agrees that pursuant to 18 U.S.C. 3614, defendant may be resentenced to any sentence
which might have originally been imposed if the Court determines that defendant has knowingly
and willfully refused to pay a fine or restitution as ordered or has failed to make sufficient bona
fide efforts to pay a fine or restitution. Additionally, defendant understands and agrees that the
government may enforce collection of any fine or restitution imposed in this case pursuant to 18
U.S.C. 3572, 3613, and 3664(m), notwithstanding any initial or subsequently modified
payment schedule set by the Court. Defendant understands that any monetary debt defendant
owes related to this matter may be included in the Treasury Offset Program (TOP) to potentially
offset defendant's federal retirement benefits, tax refunds, and other federal benefits.

Pursuant to 18 U.S.C. 3612(b)(F), defendant understands and agrees that until a fine or
restitution order is paid in full, defendant must notify the United States Attorney's Office of any
change in the mailing address or residence address within 30 days of the change. Further,
pursuant to 18 U.S.C. 3664(k), defendant shall notify the Court and the U.S. Attorney's Office
immediately of any material change in defendant's economic circumstances that might affect
defendant's ability to pay restitution, including, but not limited to, new or changed employment,
increases in income, inheritances, monetary gifts, or any other acquisition of assets or money.

19. Life of Agreement: Defendant understands and agrees that the financial reporting
obligation agreed to herein will be in effect through any period of probation or supervised
release, and shall continue until such time as any fine or restitution ordered by the Court is paid
in full.

20. No Limitation on Collections: Defendant agrees that ifthe Court imposes a schedule of
payments, defendant understands that the schedule of payments is merely a minimum schedule
of payments and not the only method, nor a limitation on the methods, available to the United
States

21. Court Not Bound: The Court is not bound by the recommendations of the parties or of
the presentence report (PSR) writer. Because this agreement is made under Rule 11 (c )( 1)(B) of
the Federal Rules of Criminal Procedure, defendant may not withdraw any guilty plea or rescind
this plea agreement if the Comi does not follow the agreements or recommendations of the
parties.

22. Full Disclosure/Reservation of Rights: The USAO will fully inform the PSR writer
and the Comi of the facts and law related to defendant's case. Except as set forth in this
agreement, the parties reserve all other rights to make sentencing recommendations and to
respond to motions and arguments by the opposition.
 Case 3:17-cr-00239-HZ Document 10 Filed 07/12/17 Page 6 of 6

Andrew Coit
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June 12, 2017

23 . Breach of Plea Agreement: If defendant breaches the terms of this agreement, or

commits any new criminal offenses between signing this agreement and sentencing, the USAO is
relieved of its obligations under this agreement, but defendant may not withdraw any guilty plea.

24. Memorialization of Agreement: No promises, agreements or conditions other than

those set forth in this agreement will be effective unless memorialized in writing and signed by
all parties listed below or confirmed on the record before the Court. If defendant accepts this
offer, please sign and attach the original of this letter to the Petition to Enter Plea.

25. Deadline: The USAO may revoke this plea at any time prior to entry of defendant's
guilty plea, and it expires if not accepted by June 23, 2017, at 12 p.m.

Sincerely,

BILLY J. WILLIAMS
United States Attorney

I have carefully reviewed every part of this agreement with my attorney. I understand and
voluntarily agree to its terms. I expressly waive my rights to appeal as outlined in this
agreement. I wish to plead guilty because, in fact, I am guilty.

~zi[11
Date Defendant

I represent the defendant as legal couns I. I have carefully reviewed every part of this agreement
with defendant. To my knowledge, de ndant' s decisions to make this agreement and to plead
guilty are informed and voluntary ones
 Case 3:17-cr-00239-HZ Document 1 Filed 06/23/17 Page 1 of 3

BILLY J. WILLIAMS, OSB #901366

United States Attorney
District of Oregon
SCOTT E. BRADFORD, OSB #062824
Assistant United States Attorney
Scott.Bradford@usdoj.gov
1000 SW Third Ave., Suite 600
Portland, OR 97204-2902
Telephone: (503) 727-1000
Attorneys for United States of America

UNITED STATES DISTRICT COURT

DISTRICT OF OREGON

UNITED STATES OF AMERICA 3:17-CR- .Z..39- /-12..

v. INFORMATION

BRADLEY CARTER, 18 U.S.C. 1030(a)(2), (c)(2)(B)(i), and

(c)(2)(B)(ii)
Defendant.

THE UNITED STATES ATTORNEY CHARGES:

INTRODUCTORY ALLEGATIONS

At all times relevant to this information:

1. Bradley Carter, hereinafter referred to as defendant, was a resident of Albany,

Oregon.

2. Defendant founded Phone Losers of America, an American Phreaking group, in

the 1990s and operated a Y ouTube Channel by the same name. 1

1
Phreaking is the action of hacking into telecommunications systems, especially to obtain free
calls
 Case 3:17-cr-00239-HZ Document 1 Filed 06/23/17 Page 2 of 3

COUNT 1
(Fraud and Related Activity in Connection with Computers)
(18 U.S.C. 1030(a)(2), (c)(2)(B)(i), and (c)(2)(B)(ii))

3. On or about March 24, 27, and 28, 2016, within the District of Oregon, the

defendant intentionally accessed a computer without authorization and thereby obtained

information from a protected computer, as defined in 18 U.S.C. 1030(e)(2)(B), and the offense

was committed for purposes of commercial advantage and private financial gain and was

committed in furtherance of criminal and tortious acts in violation of the laws of Oregon,

specifically, invasion of privacy and intentional infliction of emotional distress, in violation of

1030(a)(2), (c)(2)(B)(i), and (c)(2)(B)(ii).

FIRST FORFEITURE ALLEGATION

(18 U.S.C. 982(a)(2)(B) and 1030(i))

4. The allegations contained in Count 1 of this Information are hereby realleged and

incorporated by reference for the purpose of alleging forfeiture pursuant to 18 U.S.C.

982(b)(l) and 1030(i)(l).

5. Upon conviction of Count 1 of this Information, a computer fraud offense in

violation of 18 U.S.C. 1030(a)(2), defendant shall forfeit to the United States of America any

property, real or personal, constituting, or derived from, proceeds obtained directly or indirectly

as a result of such offense and any personal property that was used or intended to be used to

commit or to facilitate the commission of such offense, including a sum of money equal to the

proceeds derived from or obtained as a result of such offense.

6. If the above-described property, as a result of any act or omission of defendant:

a. cannot be located upon the exercise of due diligence;

b. has been transferred or sold to, or deposited with, a third party;

INFORMATION Page 2
 Case 3:17-cr-00239-HZ Document 1 Filed 06/23/17 Page 3 of 3

c. has been placed beyond the jurisdiction of the court;

d. has been substantially diminished in value; or

e. has been commingled with other property which cannot be divided

without difficulty,

the United States of America shall be entitled to forfeiture of substitute property pursuant to 21

U.S.C. 853(p), as incorporated by 18 U.S.C. 982(b)(l) and 1030(i)(l).

Dated this~aay of June 2017.

Respectfully submitted,

BILLY J. WILLIAMS
United States Attorney

INFORMATION Page3
Case 3:17-cr-00239-HZ As of 07/20/2017 01:21 PM PDT Page 1 of 2 Page ID#: <pageID>
FORF
U.S. District Court
District of Oregon (Portland (3))
CRIMINAL DOCKET FOR CASE # 3:17cr00239HZ All Defendants

Case title: USA v. Carter Date Filed: 06/23/2017

Assigned to: Judge Marco A.

Hernandez

Defendant (1)
Bradley Carter represented by Andrew D. Coit
COIT & PAYMENT, P.C.
800 Willamette Street
Suite 700
Eugene, OR 97401
(541) 6851288
Fax: (541) 6538224
Email: andrew@lawfirmeugene.com
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Retained

Pending Counts Disposition

18:1030(a)(2), (c)(2)(B)(i), and
(c)(2)(B)(ii) Fraud and Related
Activity in Connection with
Computers
(1)

Highest Offense Level

(Opening)
Felony

Terminated Counts Disposition

None

Highest Offense Level

(Terminated)
None

Complaints Disposition
None

Plaintiff
USA represented by Scott E. Bradford
United States Attorney's Office
1000 S.W. Third Avenue
Suite 600
Portland, OR 97204
5037271040
Fax: 5037271117
Email: scott.bradford@usdoj.gov
LEAD ATTORNEY
Case 3:17-cr-00239-HZ As of 07/20/2017 01:21 PM PDT Page 2 of 2 Page ID#: <pageID>
ATTORNEY TO BE NOTICED
Designation: Retained

Date Filed # Docket Text

06/23/2017 1 Information as to Bradley Carter (1) count(s) 1 Fraud and Related Activity in
Connection with Computers. (Forfeiture Allegation.) (sss) (Entered: 06/23/2017)
06/23/2017 2 Defendant Information Relative to a Criminal Case Sheet as to Defendant Bradley
Carter. (In accordance with Fed. R. Crim. P. 49.1 this form document containing
personal data identifiers is filed under seal). (sss) (Entered: 06/23/2017)
06/23/2017 3 Notice of Case Assignment to Judge Marco A. Hernandez. (sss) (Entered: 06/23/2017)
06/27/2017 4 Scheduling Order by Judge Marco A. Hernandez as to Bradley Carter (Out of
Custody). At the request of the parties, a First Appearance, Arraignment and Change
of Plea Hearing is set for 7/12/2017 at 10:00AM in Portland Courtroom 14B before
Judge Marco A. Hernandez. (jp) (Entered: 06/27/2017)
07/11/2017 5 Notice of Attorney Appearance Chelsea B. Payment appearing for Bradley Carter
(Payment, Chelsea) (Entered: 07/11/2017)
07/12/2017 6 Minutes of Proceedings: First Appearance, Arraignment and Plea Hearing held
before Judge Marco A. Hernandez for Defendant Bradley Carter (Out of Custody).
Defendant's waiver of indictment is accepted by the Court. Arraignment held for
Defendant Bradley Carter regarding Bradley Carter (1) Count 1 of the single count
Information. Defendant advised of rights. Plea Petition (after Court's amendments) and
Plea Agreement signed and accepted by the Court. Government summarized charges
and terms of plea agreement. The Court finds Defendant capable and competent to
enter plea. Guilty plea entered to Count 1 of the Information. The Court finds guilty
plea to be knowing and voluntary and accepts defendant's plea. ORDER Presentence
Report to be prepared by U.S. Probation. Defendant shall remain on release on
conditions pending sentencing. Sentencing is set for 10/16/2017 at 11:00AM in
Portland Courtroom 14B before Judge Marco A. Hernandez.

The Court will assume 30 minutes is sufficient for sentencing unless the parties notify
the Court two weeks in advance that the sentencing will (1) be evidentiary or (2)
otherwise require more time. Simultaneously filed Sentencing Memos are due no
later than WEDNESDAY of week before sentencing by NOON (and by end of day
deliver a hard copy to Clerk's Office Attn: Jennifer Paget, Courtroom Deputy). If
the Sentencing Memos are not received on time, or the Court is not advised that none
will be filed, the sentencing may be rescheduled. Defendant is granted leave to file
sentencing memorandum and accompanying documents under seal without further
motion or order, if same contains confidential information. Counsel Present for
Plaintiff: Scott E. Bradford. Counsel Present for Defendant: Andrew Coit and Chelsea
Payment.(Court Reporter Bonita Shumway) (jp) (Entered: 07/12/2017)
07/12/2017 7 Order Setting Conditions of Release as to Defendant Bradley Carter. Signed on July
12, 2017 by Judge Marco A. Hernandez. (mimc). (Entered: 07/12/2017)
07/12/2017 8 Waiver of Indictment by Bradley Carter (jp) (Entered: 07/14/2017)
07/12/2017 9 Plea Petition and Order Entering Plea as to Defendant Bradley Carter signed by Judge
Marco A. Hernandez. (jp) (Entered: 07/14/2017)
07/12/2017 10 Plea Agreement as to Bradley Carter (jp) (Entered: 07/14/2017)