Eastern District of Virginia - (Norfolk)
CRIMINAL DOCKET FOR CASE #: 2:05-cr-00074-JBF -JEB-1,2

Case title: USA v. Air Power Enterprises, Inc. et al

Date Filed: 06/09/2005
Date Terminated: 04/03/2006

Assigned to: District Judge Jerome B. Friedman
Referred to: Magistrate Judge James E. Bradberry

Defendant (1)
Air Power Enterprises, Inc.
TERMINATED: 04/03/2006
represented byPatrick Hugh O'Donnell
Kaufman & Canoles PC
150 W Main St
PO Box 3037
Norfolk, VA 23510
(757) 624-3305
Fax: (757) 624-3169
Email: phodonnell@kaufcan.com
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Retained

Ashley Nicole Bailey
Crowell & Moring LLP (DC)
1001 Pennsylvania Ave NW
Washington, DC 20004
(202) 624-2500
Fax: (202) 628-5116
ATTORNEY TO BE NOTICED

Philip Thomas Inglima
Crowell & Moring LLP
1001 Pennsylvania Ave NW
Washington, DC 20004
**NA*
(202) 624-2500
Fax: (202) 628-5116
ATTORNEY TO BE NOTICED

Pending Counts

Disposition
T.18:371 - Conspiracy to defraud the United States by obstructing the lawful & legitimate functions of the Environmental Protection Agency
(1)
Five (5) years probation; $400.00 special assessment; $500,000.00 fine

Highest Offense Level (Opening)
Felony

Terminated Counts

Disposition
None

Highest Offense Level (Terminated)
None

Complaints

Disposition
None

Assigned to: District Judge Jerome B. Friedman
Referred to: Magistrate Judge James E. Bradberry

Defendant (2)
ACS Environmental, Inc.
TERMINATED: 04/03/2006
represented byJeffrey H. Gray
Troutman Sanders LLP
222 Central Park Ave
Suite 2000
Virginia Beach, VA 23462
(757) 687-7519
Fax: (757) 687-1554
Email: jeffrey.gray@troutmansanders.com
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Retained

Ashley Nicole Bailey
Crowell & Moring LLP (DC)
1001 Pennsylvania Ave NW
Washington, DC 20004
(202) 624-2500
Fax: (202) 628-5116
ATTORNEY TO BE NOTICED

Philip Thomas Inglima
Crowell & Moring LLP
1001 Pennsylvania Ave NW
Washington, DC 20004
**NA*
(202) 624-2500
Fax: (202) 628-5116
ATTORNEY TO BE NOTICED

Pending Counts

Disposition
T.18:371 - Conspiracy to defraud the United States by obstructing the lawful & legitimate functions of the Environmental Protection Agency
(1)
Five (5) years probation; $400.00 special assessment

Highest Offense Level (Opening)
Felony

Terminated Counts

Disposition
None

Highest Offense Level (Terminated)
None

Complaints

Disposition
None


Plaintiff
USA represented byMichael Smythers
United States Attorney's Office
101 W Main St
Suite 8000
Norfolk, VA 23510
(757) 441-6331
Fax: (757) 441-6889
LEAD ATTORNEY
ATTORNEY TO BE NOTICED

Noreen McCarthy
US Department of Justice
601 D St NW
Room 6550
Washington, DC 20004
(202) 305-0349
Fax: (202) 514-8865
LEAD ATTORNEY
ATTORNEY TO BE NOTICED

Date Filed #Docket Text
06/09/2005CRIMINAL INFORMATION as to Air Power Enterprises, Inc. (1) count 1, ACS Environmental, Inc. (2) count 1, James Schaubach (3) count 1, Nicanor Lotuaco (4) count 1. (mnew, ) (Entered: 06/10/2005)
06/22/2005  Set/Reset Hearings as to ACS Environmental, Inc., James Schaubach: Plea Agreement Hearing set for 6/28/2005 at 2:30 p.m. before Honorable District Jerome B. Friedman (mnew, ) (Entered: 06/23/2005)
06/23/2005  Set/Reset Hearings as to Air Power Enterprises, Inc., Nicanor Lotuaco: Plea Agreement Hearing set for 6/28/2005 at 3:30 PM before Honorable District Jerome B. Friedman. (mnew, ) (Entered: 06/23/2005)
06/28/2005  Minute Entry for proceedings held before Judge Jerome B. Friedman : (Sue Ash, OCR) Noreen McCarthy, USDOJ, present; Preston Burton present for deft Nicanor Lotuaco; Patrick O'Donnell present for deft Air Power; deft Nicanor Lotuaco present.Initial Appearance as to Air Power Enterprises, Inc. and Nicanor Lotuaco held on 6/28/2005. (sche) (Entered: 06/29/2005)
06/28/200510 WAIVER OF INDICTMENT by Air Power Enterprises, Inc. (sche) (Entered: 06/29/2005)
06/28/2005  Minute Entry for proceedings held before Judge Jerome B. Friedman : (Sue Ash, OCR)Plea Agreement Hearing as to Air Power Enterprises, Inc., Nicanor Lotuaco held on 6/28/2005. Plea entered by Nicanor Lotuaco (4), Guilty: Count 1 and Air Power Enterprises, Inc. (1), Guilty: Count 1. Court explained to deft that by pleading guilty right of appeal was waived, pursuant to plea agreement. Court deferred decision about acceptance or rejection of plea agreement until court considers PSR. Sentencing set for 10/12/2005 04:00 PM before Honorable District Jerome B. Friedman. $50,000.00 PR bond set for deft Nicanor Lotuaco with conditions. (sche) (Entered: 06/29/2005)
06/28/200514 Unanimous Written Consent of the Board of Directors of Air Power Enterprises, Inc. (sche) (Entered: 06/29/2005)
06/28/200515 PLEA AGREEMENT as to Air Power Enterprises, Inc. (sche) (Entered: 06/29/2005)
06/28/200516 Statement of Facts as to Air Power Enterprises, Inc. (sche) (Entered: 06/29/2005)
06/28/200517 Sentencing Procedures Order as to Air Power Enterprises, Inc. . Signed by Judge Jerome B. Friedman on 6/28/2005. Copies dist. to counsel on 6/28/2005. (sche) (Entered: 06/29/2005)
06/28/2005  Minute Entry for proceedings held before Judge Jerome B. Friedman : (Sue Ash, OCR) Noreen McCarthy, USDOJ, present; Jeffrey Gray present for deft ACS Environmental; Philip T. Inglima present for deft James Schaubach; deft James Schaubach present.Initial Appearance as to ACS Environmental, Inc., James Schaubach held on 6/28/2005. (sche) (Entered: 06/29/2005)
06/28/200519 WAIVER OF INDICTMENT by ACS Environmental, Inc. (sche) (Entered: 06/29/2005)
06/28/2005  Minute Entry for proceedings held before Judge Jerome B. Friedman : (Sue Ash, OCR)Plea Agreement Hearing as to ACS Environmental, Inc., James Schaubach held on 6/28/2005. Plea entered by James Schaubach (3), Guilty: Count 1 and ACS Environmental, Inc. (2), Guilty: Count 1. Court explained that by pleading guilty right of appeal was waived pursuant to plea agreement. Court defers decision about acceptance/rejection of plea agreement until court considers PSR. Sentencing set for 10/12/2005 02:30 PM before Honorable District Jerome B. Friedman. $50,000.00 PR bond set for deft James Schaubach with conditions. (sche) (Entered: 06/29/2005)
06/28/200523 Record of Action in Writing by the Board of Directors of ACS Environmental, Inc. (sche) (Entered: 06/29/2005)
06/28/200524 PLEA AGREEMENT as to ACS Environmental, Inc. (sche) (Entered: 06/29/2005)
06/28/200525 Statement of Facts as to ACS Environmental, Inc. (sche) (Entered: 06/29/2005)
06/28/200526 Sentencing Procedures Order as to ACS Environmental, Inc. . Signed by Judge Jerome B. Friedman on 6/28/2005. Copies dist. to counsel 6/28/2005. (sche) (Entered: 06/29/2005)
09/20/2005  Set/Reset Hearings as to ACS Environmental, Inc., James Schaubach: Sentencing reset for 12/16/2005 at 9:30 a.m. before Honorable District Jerome B. Friedman. (mnew, ) (Entered: 09/20/2005)
09/20/2005  Set/Reset Hearings as to Air Power Enterprises, Inc., Nicanor Lotuaco: Sentencing reset for 12/16/2005 at 2:30 p.m. before Honorable District Jerome B. Friedman. (mnew, ) (Entered: 09/20/2005)
12/08/200538 NOTICE OF ATTORNEY APPEARANCE: Jeffrey H. Gray appearing for ACS Environmental, Inc. (mnew, ) (Entered: 12/09/2005)
12/09/200541 NOTICE OF ATTORNEY APPEARANCE: Philip Thomas Inglima appearing for ACS Environmental, Inc. as co-counsel (mnew, ) (Entered: 12/12/2005)
12/09/200542 NOTICE OF ATTORNEY APPEARANCE: Ashley Nicole Bailey appearing for ACS Environmental, Inc. as co-counsel (mnew, ) (Entered: 12/12/2005)
12/09/200543 Position with Respect to Sentencing Factors by ACS Environmental, Inc. (mnew, ) (Entered: 12/12/2005)
12/09/200546 NOTICE OF ATTORNEY APPEARANCE: Philip Thomas Inglima appearing for Air Power Enterprises, Inc. as co-counsel (mnew, ) (Entered: 12/12/2005)
12/09/200547 NOTICE OF ATTORNEY APPEARANCE: Ashley Nicole Bailey appearing for Air Power Enterprises, Inc. as co-counsel (mnew, ) (Entered: 12/12/2005)
12/09/200548 Position with Respect to Sentencing Factors by Air Power Enterprises, Inc. (mnew, ) (Entered: 12/12/2005)
12/14/200550 SEALED SUPPLEMENTAL Memorandum Regarding Sentencing by USA as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach & Nicanor Lotuaco (mnew, ) Modified on 12/16/2005 to place under seal(mnew, ). (Entered: 12/14/2005)
12/16/2005  Terminated Sentencing Hearing set for 12/16/05 as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach, Nicanor Lotuaco - to be rescheduled (mnew, ) (Entered: 12/16/2005)
12/16/200551 ORDER directing the parties to submit a status report to the court on or before January 6, 2006 as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach, Nicanor Lotuaco (Signed by Judge Jerome B. Friedman on 12/16/05) & filed on 12/16/05. cc to All counsel (mnew, ) (Entered: 12/16/2005)
12/16/2005  Set/Reset Deadlines as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach, Nicanor Lotuaco: Status Report due by 1/6/2006. (mnew, ) (Entered: 12/16/2005)
01/06/200652 STATUS REPORT by Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach (mnew, ) (Entered: 01/09/2006)
01/13/200655 SEALED RESPONSE by James Schaubach, ACS Environmental, Inc. & Air Power Enterprises, Inc. to Government's 50 Supplemental Memorandum Regarding Sentencing (mnew, ) (Entered: 01/18/2006)
01/19/200656 SEALED NOTICE of Errata by Air Power Enterprises, Inc., ACS Environmental, Inc., & James Schaubach re 55 Sealed Response (ptom, ) (Entered: 01/20/2006)
01/20/200657 Sealed Memorandum by USA as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach, Nicanor Lotuaco, received (arou) (Entered: 01/23/2006)
01/27/2006  Set/Reset Hearings as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach: Sentencing reset for 3/15/2006 at 9:30 AM before District Judge Jerome B. Friedman. (mnew, ) (Entered: 01/27/2006)
02/28/2006  Terminated 3/15/06 sentencing Hearing as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach (mnew, ) (Entered: 02/28/2006)
02/28/2006  Set/Reset Hearings as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach: Sentencing reset for 3/30/2006 at 9:30 AM before District Judge Jerome B. Friedman. (mnew, ) (Entered: 02/28/2006)
02/28/2006  TELEPHONE CONFERENCE proceedings held before Judge Jerome B. Friedman :Telephone Conference as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach held on 2/28/2006. Present on phone: Noreen McCarthy, Mark Exley, Patrick O'Donnell, Jeff Gray, and Philip Inglima. (Court Reporter Gloria Smith, OCR.) (sche) (Entered: 02/28/2006)
03/21/200662 MOTION to Quash and Stay Compliance with Rule 17(C) Subpoenas by Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach. (mnew, ) (Entered: 03/22/2006)
03/21/200663 Memorandum of Points & Authorities in Support by Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach re 62 MOTION to Quash and Stay Compliance with Rule 17(C) Subpoenas (mnew, ) (Entered: 03/22/2006)
03/24/200664 TRANSCRIPT of Proceedings (Telephone Conference Call) as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach, Nicanor Lotuaco held on February 28, 2006, before Judge Jerome B. Friedman. Court Reporter: Gloria S. Smith, OCR. (kgri, ) (Entered: 03/24/2006)
03/24/200665 United States' Response to 62 Motion of Defendants Air Power Enterprises, Inc., ACS Environmental, Inc., and James Schaubach to Quash and Stay Compliance with Rule 17(c) Subpoena FILED UNDER SEAL. (kgri, ) Modified on 4/3/2006 to add sealed notation (mnew,). (Entered: 03/24/2006)
03/27/2006  SEALED EXHIBIT LIST by USA as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach (ptom, ) (Entered: 03/27/2006)
03/27/200666 STATUS REPORT by USA as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach. (kgri, ) (Entered: 03/27/2006)
03/28/200667 Defendants Air Power Enterprises, Inc., ACS Environmental, Inc., and James Schaubach's Second Status Report. (kgri, ) (Entered: 03/28/2006)
03/29/200668 DESIGNATION OF HEARING EXHIBITS by Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach (mnew, ) (Entered: 03/29/2006)
03/30/2006  SENTENCING proceedings held before Judge Jerome B. Friedman : Sue Ash, OCR. Noreen McCarthy, USDOJ, and Mark Exley, AUSA, present on behalf of USA; Philip Inglima, Ashley Bailey, Patrick O'Donnell, and Jeffrey Gray present on behalf of defendant Schaubach and defendant corporations. Court accepts plea agreement on behalf of deft Schaubach and defendant corporations. Court heard arguments on motion for downward departure from criminal history category filed on behalf of deft Schaubach and denied the motion.Sentencing held on 3/30/2006 for Air Power Enterprises, Inc. (1) - Count 1: Five (5) years probation with conditions; $400.00 special assessment; $500,000.00 fine; ACS Environmental, Inc. (2) - Count 1: Five (5) years probation with conditions; $400.00 special assessment; James Schaubach (3)- Count 1: Twenty-One (21) months imprisonment, deft to surrender for service of sentence at 2:00 p.m. on 4/28/2006; Three (3) years supervised release with conditions; $100.00 special assessment; $1,500,000.00 fine. Defendant and Defendant Corporations notified of right of appeal. Defendant Schaubach continued on bond until surrender date. Court adjourned. (sche) (Entered: 03/31/2006)
03/30/200669 DISCLOSURE STATEMENT by Air Power Enterprises, Inc., filed in open court. (sche ) (Entered: 03/31/2006)
04/03/200670 JUDGMENT as to Air Power Enterprises, Inc. (1), Count 1, Five (5) years Probation; $400.00 Special Assessment; $500,000.00 Fine (Signed by Judge Jerome B. Friedman on 4/3/06) & filed on 4/3/06. Copies mailed (mnew, ) (Entered: 04/04/2006)
04/03/200671 JUDGMENT as to ACS Environmental, Inc. (2), Count 1, Five (5) years Probation; $400.00 Special Assessment (Signed by Judge Jerome B. Friedman on 4/3/06) & filed on 4/3/06. Copies mailed (mnew, ) (Entered: 04/04/2006)
06/06/200674 Waiver of Hearing to modify conditions of probation - modified as follows: "As directed by the probation officer, the defendant corporation shall pay the fine in the amount of $50,000 per month until paid in full. The payments will be due by the 30th of each month, beginning in June of 2006" as to Air Power Enterprises, Inc. 3 cc P.O., 1 cc AUSA & Counsel for dft. (mnew, ) (Entered: 06/06/2006)
09/11/200675 Waiver of Hearing to modify conditions of probation as to Air Power Enterprises, Inc. - modified as follows: "As directed by the probation officer, the defendant corporation shall pay the fine in the amount of $10,000.00 per month until paid in full. The payments will be due by the 30th of each month, beginning in September of 2006". (signed by Judge Jerome B. Friedman on 9/11/06) & filed on 9/11/06. Copies mailed. (mnew) (Entered: 09/12/2006)
10/03/200676 TRANSCRIPT of Telephonic Proceedings (Status Conference) held on 12/15/05 In Chambers before Judge Jerome B. Friedman as to Air Power Enterprises, Inc., ACS Environmental, Inc., James Schaubach, Nicanor Lotuaco. Court Reporter: Paul L. McManus, OCR. (mnew) (Entered: 10/04/2006)
10/04/200677 TRANSCRIPT of Sentencing Proceedings held on March 30, 2006 before Judge Jerome B. Friedman as to Air Power Enterprises, Inc., ACS Environmental, Inc. & James Schaubach. Court Reporter: Susanne V. Ash, OCR. (mnew) (Entered: 10/04/2006)
03/21/200879 REPORT AND ORDER Terminating Probation Prior to Original Expiration Date as to ACS Environmental, Inc. (Signed by Judge District Judge Jerome B. Friedman on 3/20/08) & filed on 3/21/08. Copies distributed. (mnew) (Entered: 03/21/2008)
05/09/200880 REPORT AND ORDER Terminating Probation Prior to Original Expiration Date as to Air Power Enterprises, Inc. (Signed by District Judge Jerome B. Friedman on 5/9/08) & filed on 5/9/08. Copies to P.O. & AUSA. (mnew) (Entered: 05/09/2008)