Case 2:15-cr-00155-WHW Document 83 Filed 08/24/15 Page 1 of 65 PageID: 1194 UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY UNITED STATES OF AMERICA ) ) No. 2:15-cr-155 v. ) Hon. William H. Walls ) ROBERT MENENDEZ and ) SALOMON MELGEN, ) ) Defendants. ) __________________________________________) UNITED STATES’ CONSOLIDATED OPPOSITION TO DEFENDANTS’ MOTIONS TO DISMISS ALLEGING MISCONDUCT (Mot. Nos. 3, 5, & 6; Dkt. Nos. 50, 52, & 53) RAYMOND HULSER CHIEF Peter Koski Deputy Chief J.P. Cooney Deputy Chief Monique Abrishami Trial Attorney Public Integrity Section Criminal Division United States Department of Justice Attorneys for the United States of America Case 2:15-cr-00155-WHW Document 83 Filed 08/24/15 Page 2 of 65 PageID: 1195 TABLE OF CONTENTS TABLE OF AUTHORITIES ......................................................................................................... iii TABLE OF EXHIBITS .................................................................................................................. v INTRODUCTION .......................................................................................................................... 1 I. THE DEFENDANTS’ CORRUPTION CHARGES ARE NOT TAINTED BY UNPROVEN ALLEGATIONS THEY SOLICITED UNDERAGE PROSTITUTES. (Mot. No. 6, Dkt. No. 53.) ..................................................................... 4 II. EVIDENCE CONCERNING DEFENDANT MELGEN’S LAVISH GIFTS TO DEFENDANT MENENDEZ, AND TESTIMONY BY THE FEMALE BENEFICIARIES OF THE DEFENDANTS’ CORRUPT RELATIONSHIP, IS RELEVANT TO THIS BRIBERY CASE. (Mot. No. 3, Dkt. No. 50; Mot. No. 6, Dkt. No. 53.) .......................................................... 8 III. THE DEFENDANTS PROVIDE NO EVIDENCE THAT THE GRAND JURY THAT INDICTED THEM WAS BIASED, AND THEY HAVE NO CONSTITUTIONAL RIGHT TO AN “EXTENSIVELY SCREENED” GRAND JURY. (Mot. No. 5, Dkt. No. 52.) ............................................. 11 IV. THE GOVERNMENT ELICITED TRUTHFUL TESTIMONY FROM AGENT SHEEHY THAT IS CORROBORATED BY UNIMPEACHABLE WITNESS STATEMENTS AND CONTEMPORANEOUS RECORDS. (Mot. No. 3, Dkt. No. 50.) ................................. 15 A. Defendant Menendez Advocated on Behalf of Defendant Melgen to HHS Officials. .................................................................................................. 17 B. The Defendants’ Predicate an Allegation of Perjury on a Typographical Error. ............................................................................................. 21 C. The Defendants Concede that Agent Sheehy’s Testimony about the Defendants’ Meeting with Senator Harkin is Truthful. ........................................ 22 V. SUMMARY TESTIMONY AND HEARSAY ARE PERMITTED IN THE GRAND JURY. (Mot. No. 3, Dkt. No. 50.) ........................................................... 23 VI. THE DEFENDANTS MISCHARACTERIZE LAWFUL AND ORDINARY INVESTIGATIVE STEPS AS INTIMIDATION, COERCION, AND ABUSE. (Mot. No. 6, Dkt. No. 53.) ................................................ 29 VII. THE GOVERNMENT ACCURATELY SUMMARIZED THE LAW REGARDING DEFENDANT MELGEN’S IMPROPER BILLING PRACTICES. (Mot. No. 3, Dkt. No. 50.) ........................................................................ 34 Case 2:15-cr-00155-WHW Document 83 Filed 08/24/15 Page 3 of 65 PageID: 1196 VIII. THE GOVERNMENT PROPERLY ELICITED INCRIMINATING EVIDENCE, WHICH IS DISTINCT FROM IMPROPERLY COMMENTING ON THE EVIDENCE. (Mot. No. 3, Dkt. No. 50; Mot. No. 6, Dkt. No. 53.) .......................................................................................................... 37 IX. THE DEFENDANTS’ MISCELLANEOUS ALLEGATIONS OF MISCONDUCT OMIT MATERIAL FACTS AND ARE CONTRAVENED BY THE GOVERNMENT’S CONSCIENTIOUS SAFEGUARDING OF THEIR PRESUMPTION OF INNOCENCE. (Mot. No. 3, Dkt. No. 50; Mot. No. 6, Dkt. No. 53.) ........................................................ 43 X. THE GOVERNMENT CONSCIENTIOUSLY PREVENTED THE LEAK OF INVESTIGATIVE INFORMATION. (Mot. No. 6, Dkt. No. 53.) ............................ 48 CONCLUSION ............................................................................................................................. 56 ii Case 2:15-cr-00155-WHW Document 83 Filed 08/24/15 Page 4 of 65 PageID: 1197 TABLE OF AUTHORITIES Cases Ballard v. United States, 329 U.S. 187 (1946) ............................................................................. 13 Branzburg v. Hayes, 408 U.S. 665 (1972) ...................................................................................... 9 Costello v. United States, 350 U.S. 359 (1956) ................................................................ 13, 24, 41 In re Grand Jury (Robert Menendez), 608 F. App’x 99 (3d Cir. 2015) (No. 14- 4678) ......................................................................................................................... 2, 3, 27 In re Grand Jury Investigation of Frank P. Balistrieri, 503 F. Supp. 1112 (E.D. Wis. 1980) ......................................................................................................................... 12 Schwartz v. U.S. Dep’t of Justice, 494 F. Supp. 1268 (E.D. Pa 1980) ......................................... 12 U.S. ex rel. Dessus v. Pennsylvania, 316 F. Supp. 411 (E.D. Pa 1970)........................................ 12 United States v. Breslin, 916 F. Supp. 438 (E.D. Pa. 1996) ......................................................... 40 United States v. Brito, 907 F.2d 392 (2d Cir. 1990) ............................................................... 25, 26 United States v. Calandra, 414 U.S. 338 (1974) ............................................................ 5, 7, 24, 41 United States v. Hogan, 712 F.2d 757 (2d Cir. 1983) .................................................................. 41 United States v. Kahaner, 204 F. Supp. 921 (S.D.N.Y. 1962) ..................................................... 54 United States v. Morton Salt Co., 338 U.S. 632 (1950) .................................................................. 5 United States v. R. Enterprises, Inc., 498 U.S. 292 (1991) .......................................... 9, 12, 24, 41 United States v. Samango, 607 F.2d 877 (9th Cir. 1979) ............................................................. 38 United States v. Stone, 429 F.2d 138 (2d Cir. 1970) ...................................................................... 9 United States v. Sweig, 316 F. Supp. 1148 (S.D.N.Y. 1970) ........................................................ 54 United States v. Weiss, 752 F.2d 777 (2d Cir. 1985) .................................................................... 26 United States v. Williams, 705 F.2d 603 (2d Cir. 1983) ............................................................... 11 Vazquez v. Hillery, 474 U.S. 254 (1986) ...................................................................................... 13 Vitreo Retinal Consultants of the Palm Beaches, P.A. v. U.S. Department of Health and Human Services et al, No. 13-22782, 2015 WL 1608458 (S.D. Fl. Apr. 10, 2015) .............................................................................................................. 35 iii Case 2:15-cr-00155-WHW Document 83 Filed 08/24/15 Page 5 of 65 PageID: 1198 Statutes 18 U.S.C. § 1591 ............................................................................................................................. 5 18 U.S.C. § 1952 ............................................................................................................................. 5 18 U.S.C. § 2421 ............................................................................................................................. 5 Other Authorities BENCHBOOK FOR U.S. DISTRICT COURT JUDGES, Federal Judicial Center (5th ed. 2007) ................................................................................................................................. 24 iv Case 2:15-cr-00155-WHW Document 83 Filed 08/24/15 Page 6 of 65 PageID: 1199 TABLE OF EXHIBITS Exhibit Description 1 Letter from Abbe Lowell to Peter Koski, re: New Jersey Grand Jury Investigation, March 9, 2015 2 FD-302 Report of FBI Interview with Ramon Macroon, September 19, 2013 (Under Seal) 3 FD-302 Report of FBI Interview with Jorge de Castro Font, May 14, 2013 (Under Seal) 4 FD-302 Report of FBI Interview with Ashley Howell, April 29, 2013 (Under Seal) 5 Checks from Vitreo-Retinal Consultants Paid to the Order of Ashley Howell and Brianna Fernandes, April 13, 2011, and Flight Report for Defendant Melgen’s Private Jet, April 14 through April 18, 2011 6 Grand Jury Testimony of Mohammed Butt, March 7, 2013 (Under Seal) 7 FD-302 Report of FBI Interview with Kathleen Sebelius, April 15, 2013 (Under Seal) 8 FD-302 Report of FBI Interview with Marilyn Tavenner, February 13, 2013 (Under Seal) 9 FD-302 Report of FBI Interview with Jonathan Blum, February 13, 2013 (Under Seal) 10 FD-302 Report of FBI Interview with Harry Reid, April 28, 2014 (Under Seal) 11 Grand Jury Testimony of FBI Agent Gregory Sheehy, May 7, 2014 (Under Seal) 12 Email Exchange Between Robert Menendez and Daniel O’Brien, re: Multiple, July 13, 2012 13 Corrected Page 59, Grand Jury Testimony of FBI Agent Gregory Sheehy, May 7, 2014 (Under Seal) 14 FD-302 Report of FBI Interview with Tom Harkin, May 1, 2014 (Under Seal) 15 Defendant’s Report in Compliance, November 15, 2014 16 Email Exchange Between Daniel O’Brien and Michael Barnard, re: Melgan [sic], April 6, 2012 v Case 2:15-cr-00155-WHW Document 83 Filed 08/24/15 Page 7 of 65 PageID: 1200 17 Calendar Entries for Robert Menendez, June