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U.S. Department of Justice

United States AttorneyDistrict of MarylandNorthern Division

Rod J. Rosenstein 36 South Charles Street DIRECT: 410-209-4917United States Attorney Fourth Floor MAIN: 410-209-4800 Baltimore, Maryland 21201 FAX: 410-962-3091Paul E. Budlow TTY/TDD: 410-962-4462Assistant United States Attorney Paul.Budlow@usdoj.gov

May 6, 2010

Gary S. Bernstein, P.A.Suite 70029 W. Susquehanna AvenueTowson, MD 21204

RE: William Madonna

Dear Mr. Bernstein:

This letter, together with the Sealed Supplement, confirms the plea agreement which hasbeen offered to the Defendant by the United States Attorney's Office for the District of Maryland("this Office"). If the Defendant accepts this offer, please have him execute it in the spacesprovided below. If this offer has not been accepted by May 15, 2010, it will be deemedwithdrawn. The terms of the agreement are as follows:

Offense of Conviction

1. The Defendant agrees to waive indictment and all defenses based on the statuteof limitations and plead guilty to a Criminal Information which will charge him with StructuringCurrency Transactions, in violation of 31 U.S.C. §5324(a)(3) and (c) and 31 C.F.R. §103.22. The Defendant admits that he is, in fact, guilty of that offense and will so advise the Court.

Elements of the Offense

2. The elements of the offense to which the Defendant has agreed to plead guilty,and which this Office would prove if the case went to trial, are as follows:

a. First, that the defendant knew that a financial institution was legallyobligated to report currency transactions in excess of $10,000.

b. Second, that the defendant structured or assisted in structuring atransaction with a domestic financial institution; and

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c. Third, that the defendant did so with the purpose of evading the reportingrequirements of federal law affecting the transactions.

Penalties

3. The maximum sentence provided by statute for the offense to which theDefendant is pleading guilty is as follows: imprisonment for five years, a term of supervisedrelease of one year and a fine of $250,000. In addition, the Defendant must pay $100.00 as aspecial assessment pursuant to 18 U.S.C. § 3013, which will be due and should be paid at orbefore the time of sentencing. This Court may also order him to make restitution pursuant to 18U.S.C. §§ 3663, 3663A, and 3664. If a fine or restitution is imposed, it shall be payableimmediately, unless, pursuant to 18 U.S.C. § 3572(d), the Court orders otherwise. TheDefendant understands that if he serves a term of imprisonment, is released on supervisedrelease, and then violates the conditions of his supervised release, his supervised release could berevoked - even on the last day of the term - and the Defendant could be returned to custody toserve another period of incarceration and a new term of supervised release. The Defendantunderstands that the Bureau of Prisons has sole discretion in designating the institution at whichthe Defendant will serve any term of imprisonment imposed.

Waiver of Rights

4. The Defendant understands that by entering into this agreement, he surrenderscertain rights as outlined below:

a.. If the Defendant had persisted in his plea of not guilty, he would have hadthe right to a speedy jury trial with the close assistance of competent counsel. That trial could beconducted by a judge, without a jury, if the Defendant, this Office, and the Court all agreed.

b. The Defendant has the right to have his case presented to a Grand Jury,which would decide whether there is probable cause to return an indictment against him. Byagreeing to proceed by way of Information, he is giving up that right, and understands that thecharges will be filed by the United States Attorney without the Grand Jury.

c. If the Defendant elected a jury trial, the jury would be composed of twelveindividuals selected from the community. Counsel and the Defendant would have theopportunity to challenge prospective jurors who demonstrated bias or who were otherwiseunqualified, and would have the opportunity to strike a certain number of jurors peremptorily. All twelve jurors would have to agree unanimously before the Defendant could be found guiltyof any count. The jury would be instructed that the Defendant was presumed to be innocent, andthat presumption could be overcome only by proof beyond a reasonable doubt.

d. If the Defendant went to trial, the government would have the burden ofproving the Defendant guilty beyond a reasonable doubt. The Defendant would have the right toconfront and cross-examine the government's witnesses. The Defendant would not have to

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present any defense witnesses or evidence whatsoever. If the Defendant wanted to call witnessesin his defense, however, he would have the subpoena power of the Court to compel the witnessesto attend.

e. The Defendant would have the right to testify in his own defense if he sochose, and he would have the right to refuse to testify. If he chose not to testify, the Court couldinstruct the jury that they could not draw any adverse inference from his decision not to testify.

f. If the Defendant were found guilty after a trial, he would have the right toappeal the verdict and the Court's pretrial and trial decisions on the admissibility of evidence tosee if any errors were committed which would require a new trial or dismissal of the chargesagainst him. By pleading guilty, the Defendant knowingly gives up the right to appeal theverdict and the Court's decisions.

g. By pleading guilty, the Defendant will be giving up all of these rights,except the right, under the limited circumstances set forth in the "Waiver of Appeal" paragraphbelow, to appeal the sentence. By pleading guilty, the Defendant understands that he may haveto answer the Court's questions both about the rights he is giving up and about the facts of hiscase. Any statements the Defendant makes during such a hearing would not be admissibleagainst him during a trial except in a criminal proceeding for perjury or false statement.

h. If the Court accepts the Defendant's plea of guilty, there will be no furthertrial or proceeding of any kind, and the Court will find him guilty.

i. By pleading guilty, the Defendant will also be giving up certain valuablecivil rights and may be subject to deportation or other loss of immigration status.

Advisory Sentencing Guidelines Apply

5. The Defendant understands that the Court will determine a sentencing guidelinesrange for this case (henceforth the "advisory guidelines range") pursuant to the SentencingReform Act of 1984 at 18 U.S.C. §§ 3551-3742 (excepting 18 U.S.C. §§ 3553(b)(1) and 3742(e))and 28 U.S.C. §§ 991 through 998. The Defendant further understands that the Court willimpose a sentence pursuant to the Sentencing Reform Act, as excised, and must take into accountthe advisory guidelines range in establishing a reasonable sentence.

Factual and Advisory Guidelines Stipulation

6. This Office and the Defendant understand, agree and stipulate to the Statement ofFacts set forth in Attachment A hereto which this Office would prove beyond a reasonabledoubt, and to the following applicable sentencing guidelines factors:

a. Pursuant to U.S.S.G. § 2S1.3, the base offense level is 6 plus the numberof offense levels from the table in §2B1.1 (Theft, Property Destruction, and Fraud)

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corresponding to the value of the funds. The value of the funds structured was more than$120,000 and less than $200,000, warranting an increase of 10 levels. (SUBTOTAL = 16).

b. Because the defendant did not act with reckless disregard of the source ofthe funds, the funds were the proceeds of lawful activity; and the funds were to be used for alawful purpose, the offense level is decreased to level 6. (SUBTOTAL = 6).

c. Pursuant to U.S.S.G. § 1B1.3, an offense level must also be determinedfor the uncharged relevant conduct in this case. In this case, the defendant failed to timely filehis personal income tax return for tax year 2003. Since the offense involved failure to file a taxreturn, the tax loss is the amount of tax that the taxpayer owed and did not pay. In this case, thatamount is $8,837.00 and the base offense level is 8. (SUBTOTAL = 8).

d. Because the defendant committed both Structuring Currency Transactionsand Failure to Timely his Personal Income Tax Return, the offense level should be increased by2 offense levels pursuant to U.S.S.G. § 3D1.4. (SUBTOTAL = 10).

e. This Office does not oppose a two-level reduction in the Defendant'sadjusted offense level, based upon the Defendant's apparent prompt recognition and affirmativeacceptance of personal responsibility for his criminal conduct. This Office may oppose anyadjustment for acceptance of responsibility if the Defendant (a) fails to admit each and everyitem in the factual stipulation; (b) denies involvement in the offense; (c) gives conflictingstatements about his involvement in the offense; (d) is untruthful with the Court, this Office, orthe United States Probation Office; (e) obstructs or attempts to obstruct justice prior tosentencing; (f) engages in any criminal conduct between the date of this agreement and the dateof sentencing; or (g) attempts to withdraw his plea of guilty.

f. Thus, the adjusted offense level is 8.

7. The Defendant understands that there is no agreement as to his criminal history orcriminal history category, and that his criminal history could alter his offense level if he is acareer offender or if the instant offense was a part of a pattern of criminal conduct from which hederived a substantial portion of his income.

8. This Office and the Defendant agree that with respect to the calculation of theadvisory guidelines range, no other offense characteristics, sentencing guidelines factors,potential departures or adjustments set forth in the United States Sentencing Guidelines will beraised or are in dispute.

Obligations of the United States Attorney's Office

9. At the time of sentencing, this Office will recommend a sentence within theguidelines range as determined by the Court.

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10. The parties reserve the right to bring to the Court's attention at the time ofsentencing, and the Court will be entitled to consider, all relevant information concerning theDefendant's background, character and conduct.

Waiver of Appeal

11. In exchange for the concessions made by this Office and the Defendant in thisplea agreement, this Office and the Defendant waive their rights to appeal as follows:

a) The Defendant knowingly waives all right, pursuant to 28 U.S.C. § 1291or otherwise, to appeal the Defendant's conviction;

b) The Defendant and this Office knowingly waive all right, pursuant to 18U.S.C. § 3742 or otherwise, to appeal whatever sentence is imposed (including the right toappeal any issues that relate to the establishment of the advisory guidelines range, thedetermination of the defendant's criminal history, the weighing of the sentencing factors, and thedecision whether to impose and the calculation of any term of imprisonment, fine, order offorfeiture, order of restitution, and term or condition of supervised release).

c) Nothing in this agreement shall be construed to prevent the Defendant orthis Office from invoking the provisions of Federal Rule of Criminal Procedure 35(a), or fromappealing from any decision thereunder, should a sentence be imposed that resulted fromarithmetical, technical, or other clear error.

d) The Defendant waives any and all rights under the Freedom ofInformation Act relating to the investigation and prosecution of the above-captioned matter andagrees not to file any request for documents from this Office or any investigating agency.

Obstruction or Other Violations of Law

12. The Defendant agrees that he will not commit any offense in violation of federal,state or local law between the date of this agreement and his sentencing in this case. In the eventthat the Defendant (i) engages in conduct after the date of this agreement which would justify afinding of obstruction of justice under U.S.S.G. § 3C1.1, or (ii) fails to accept personalresponsibility for his conduct by failing to acknowledge his guilt to the probation officer whoprepares the Presentence Report, or (iii) commits any offense in violation of federal, state orlocal law, then this Office will be relieved of its obligations to the Defendant as reflected in thisagreement. Specifically, this Office will be free to argue sentencing guidelines factors other thanthose stipulated in this agreement, and it will also be free to make sentencing recommendationsother than those set out in this agreement. As with any alleged breach of this agreement, thisOffice will bear the burden of convincing the Court of the Defendant's obstructive or unlawfulbehavior and/or failure to acknowledge personal responsibility by a preponderance of theevidence. The Defendant acknowledges that he may not withdraw his guilty plea because thisOffice is relieved of its obligations under the agreement pursuant to this paragraph.

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Court Not a Party

13. The Defendant expressly understands that the Court is not a party to thisagreement. In the federal system, the sentence to be imposed is within the sole discretion of theCourt. In particular, the Defendant understands that neither the United States Probation Officenor the Court is bound by the stipulation set forth above, and that the Court will, with the aid ofthe Presentence Report, determine the facts relevant to sentencing. The Defendant understandsthat the Court cannot rely exclusively upon the stipulation in ascertaining the factors relevant tothe determination of sentence. Rather, in determining the factual basis for the sentence, theCourt will consider the stipulation, together with the results of the presentence investigation, andany other relevant information. The Defendant understands that the Court is under no obligationto accept this Office's recommendations, and the Court has the power to impose a sentence up toand including the statutory maximum stated above. The Defendant understands that if the Courtascertains factors different from those contained in the stipulation set forth above, or if the Courtshould impose any sentence up to the maximum established by statute, the Defendant cannot, forthat reason alone, withdraw his guilty plea, and will remain bound to fulfill all of his obligationsunder this agreement. The Defendant understands that neither the prosecutor, his counsel, northe Court can make a binding prediction, promise, or representation as to what guidelines rangeor sentence the Defendant will receive. The Defendant agrees that no one has made such abinding prediction or promise.

Entire Agreement

14. This letter supersedes any prior understandings, promises, or conditions betweenthis Office and the Defendant and, together with the Sealed Supplement, constitutes the completeplea agreement in this case. The Defendant acknowledges that there are no other agreements,promises, undertakings or understandings between the Defendant and this Office other thanthose set forth in this letter and the Sealed Supplement and none will be entered into unless inwriting and signed by all parties.

If the Defendant fully accepts each and every term and condition of this agreement,please sign and have the Defendant sign the original and return it to me promptly.

Very truly yours,

Rod J. RosensteinUnited States Attorney

By:____________________________________ Paul E. Budlow

Assistant United States Attorney

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I have read this agreement, including the Sealed Supplement, and carefully reviewedevery part of it with my attorney. I understand it, and I voluntarily agree to it. Specifically, Ihave reviewed the Factual and Advisory Guidelines Stipulation with my attorney, and I do notwish to change any part of it. I am completely satisfied with the representation of my attorney.

________________ ____________________________Date William Madonna

I am William Madonna’s attorney. I have carefully reviewed every part of thisagreement, including the Sealed Supplement, with him. He advises me that he understands andaccepts its terms. To my knowledge, his decision to enter into this agreement is an informed andvoluntary one.

_________________ ____________________________Date Gary Bernstein

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Attachment A

The undersigned parties stipulate and agree that if this case had proceeded to trial, theGovernment would have proven the following facts beyond a reasonable doubt. Theundersigned parties also stipulate and agree that the following facts do not encompass all of theevidence that would have been presented had this matter proceeded to trial.

WILLIAM MADONNA, age 58, was a resident of Maryland and a salaried employeeof Amera-Funding from 2003 through 2005. Nicholas Baccala and Gary W. Toroni owned andoperated Amera-Funding. Both Baccala and Toroni were indicted and subsequently convicted ofa scheme to defraud various Fraternal Orders of Police of charitable contributions.

During the course of the investigation into Amera-Funding, MADONNA wasinterviewed several times by the Federal Bureau of Investigation pursuant to a profferagreement. In the course of those interviews, MADONNA made false statements and materialomissions on several material matters including his knowledge of Toroni’s participation in, andknowledge of, the scheme to defraud the Fraternal Orders of Police.

In addition, investigators learned that MADONNA knowingly failed to timely file hispersonal income tax return for the tax year 2003 despite having earned a salary from Amera-Funding. After investigators learned of the omission, MADONNA filed a tax return in which hereported income of $35,075.00 and taxes due and owing to the IRS of $8,837.00.

Further, investigators analyzed several bank accounts in connection with the scheme todefraud the Fraternal Orders of Police. One of those accounts was in the name of Gary W.Toroni and was a personal checking account at First Mariner Bank (hereinafter “ToroniAccount”), a domestic financial institution. An analysis of the account revealed numeroussuspicious currency transactions in and out of the Toroni Account. The source of some of themoney was from the Amera-Funding scheme to defraud the Fraternal Orders of Police. Anothersource of the money came from an individual with the initials WR. WR was a former businessassociate of MADONNA. Investigators learned that in or about October 8, 2003, WR sold abusiness in Baltimore, Maryland. With the proceeds of the sale, WR subsequently made a loanto WILLIAM MADONNA, through Gary Toroni. MADONNA caused WR to withdraw cashfrom WR’s personal bank account at a domestic financial institution in varying amounts under$10,000, and purchase cashier’s checks in those amounts. The cashier’s checks were thendeposited into the Toroni Account. Checks for the benefit of WILLIAM MADONNA werethen drawn from the Toroni Account, in varying amounts under $10,000, and converted to cash.

WILLIAM MADONNA knew of domestic financial institutions' legal obligation toreport transactions in excess of $10,000. Between on or about October 8, 2003, and in or aboutNovember 2004, defendant WILLIAM MADONNA aided and abetting the structuring ofcurrency transactions from WR’s account, to the Toroni Account, and ultimately to WILLIAMMADONNA, in amounts less than $10,000 to avoid triggering the reporting requirements ofvarious domestic financial institutions under Title 31, United States Code, Section 5313(a) andthe regulations promulgated thereunder. During this time, defendant caused the deposit and

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withdrawals of approximately $142,000 in currency.

Thus, between on or about October 8, 2003, and in or about November 2004, thedefendant, WILLIAM MADONNA, knowingly and for the purpose of evading the reportingrequirements of Title 31, United States Code, Section 5313(a) and the regulations prescribedthereunder, did structure, assist in structuring, and attempt to structure and assist in structuring,transactions with various domestic financial institutions.

I have reviewed the foregoing statement of facts with my attorney, understand it, agreewith it, and do not wish to change any part of it. I further understand that it is included as part ofmy plea agreement with the government in this case.

__________________________William Madonna

I am Mr. Madonna’s attorney. I have carefully reviewed the statement of facts with hin.

__________________________Gary Bernstein, EsqireCounsel for William Madonna